First date etiquette: How much should you spend? Who should pay? And can you talk about money?
By Emily Mee, Money team
Money isn’t the sexiest topic on a first date.
No one would say the best part was when their date leaned over, looked into their eyes and said: “Shall we split the bill?”
So if you want to save awkward vibe killer conversations, it might be worth thinking about money before you even set out for your date.
Can you talk about money?
TV presenter and dating coach Anna Williamson told the Money blog: “Typically as Brits we’re brought up to not talk about money – but I think there is a real sweet spot around being open and transparent in a respectful way around finances.”
If money is tight, she suggests the best way to make sure you’re not caught out is to take hold of arrangements, casually suggesting something low cost such as coffee, a museum, or a walk.
Just don’t get into this situation
Sexual health and relationships educator Lalala Letmeexplain agrees, and says low-cost first-dates avoid situations like this…
“I went for a first date with someone I’d never seen or met before and we booked in for a three-course meal. Right from the starter I knew that I didn’t fancy him and it was such an awful situation to be in because I was like, ‘Shit, we’ve got to get through the main and dessert’.”
Who should pay – the do’s and don’ts
As much as society has moved on, the old-fashioned view that, on heterosexual dates, the man should pay lingers on. A 2019 survey conducted by online dating site Elite Singles found 63% of men believed they should be the ones to pay on the first date – and 46% of women surveyed agreed.
If you’re not expecting a second date, Lalala says it’s often considered fair to split the bill – but if you’ve “got a bit of a vibe going on” and want a second date, you might want to suggest paying.
She adds that although there is no “hard and fast rule”, she would take a man’s offer to pay as a hint he is interested.
“If he’d paid for me the first date, I’d be more than happy to pay the next time,” she adds.
But while it can be flattering for someone to splash out on you, those who pay shouldn’t create a situation where “the other person feels that they are indebted or that they owe them something”.
“If someone spent £200 on the first date and you didn’t ask them to and it’s completely their choice, are you then put a position where you feel like you have to sleep with this guy or see him again because he’s gone all out?” she says.
“Be honest – don’t let somebody splash out on you if you know you don’t want to see them again.”
There is no objective answer here
Lalala says the question of how much you should spend on a first date depends on who you’re talking to.
“I think you have some people who feel like, ‘if you’re going to take me out on a date, I want to see you’re invested in that – that you’re buying me dinner or whatever’ – and then there are other people who are like, ‘You really don’t need to spend a penny and I’m absolutely happy to just go for a walk’.”
According to a Sky News poll for the Money blog, the majority of people (40%) believe it’s reasonable to spend roughly £20-50 between two people on a first date.
Another 39% say it’s reasonable for people to spend £50 to £100 (the total cost for both parties)…
Inside: Explore the right ways to quit a job without notice. Learn the best excuses, how to resign gracefully with a sample resignation letter, and tactics for maintaining professionalism when quitting.
Resigning from a job without notice can be a highly discomforting experience, as it breaks the standard professional protocol and can leave an employer in a difficult position.
Such an abrupt departure might lead to awkward conversations with superiors or colleagues who may be blindsided by the sudden lack of manpower and the hastiness of the exit.
This is something you know must be done.
I know the embarrassment stems from the awareness that this action could tarnish my professional reputation and relationships within the industry. Moreover, exiting without notice may invoke anxiety about the possibility of negative references or the implications it could have on future job prospects.
Yes indeed, this uncomfortable decision carries with it a heavy weight of potential judgment and professional repercussions.
So, what do you need to do when it’s time to quit?
How do you politely resign without notice?
To resign without notice politely, it’s essential to write a succinct and professional letter to your direct supervisor or HR manager, stating your immediate departure.
Express regret for any inconvenience caused and, if feasible, offer to assist in transitioning your duties. Deliver the letter personally if possible, or via email if necessary, maintaining a courteous and composed demeanor throughout the process.
It’s crucial to keep communications respectful and to retain professionalism to ensure a positive lasting impression.
Quitting Without Burning Bridges
Resigning from a job is a significant decision, and it’s generally expected that employees provide notice, traditionally two weeks, when they decide to leave.
However, in certain situations, giving notice may not be feasible, and you may need to resign immediately. Even so, it is possible to part ways amicably and without causing undue tension.
Make sure you do the following items:
1. Formalize the Resignation
Submit a formal resignation letter and discuss with HR any final procedures you may need to follow, such as filling out exit paperwork or partaking in an exit interview.
This is the first step that must be taken care of with kindness.
2. Making Sure to Tie up Loose Ends
Leaving a job without notice certainly poses challenges, but it’s critical to make sure you tie up as many loose ends as possible. Doing so demonstrates your professionalism and reduces the potential for negative repercussions.
It is super helpful if you can document your work to show your current responsibilities and projects. Include deadlines, key contacts, and any necessary instructions to help the next person take over your tasks.
3. Offer Assistance with Transition
Be willing to help the company prepare for your departure. This can involve creating thorough handover notes, compiling a list of important contacts, or outlining the status of ongoing projects.
If possible, offer to train a replacement or the person taking over your responsibilities. This may not be feasible if you’re leaving immediately, but you could suggest remaining available for a set period to answer questions via phone or email.
4. Return Company Property
Ensure you return any company property, such as laptops, mobile devices, keycards, or other equipment or materials. Do this before your departure to avoid any misunderstandings or trust issues.
Best Excuse to Quit a Job without Notice
As you know, multiple factors may prompt a professional to resign abruptly and it is never easy. It is rarely taken lightly and often stems from compelling, unavoidable circumstances.
Here are some of the most common reasons.
#1 – Personal or Family Emergency as a Valid Excuse
Personal or family emergencies stand as one of the most understandable and widely accepted reasons for quitting a job without notice. When hardship strikes, employers often recognize the need for immediate attention and the impossibility of predicting these crises.
Here’s why a family emergency can be a valid family emergency excuse:
Unpredictable Nature: Emergencies, almost by definition, are sudden and unexpected, leaving little room for the luxury of planning.
Moral and Social Norms: There’s a broad acknowledgment in society of the priority of family and personal well-being over occupational obligations.
Legal Considerations: Some jurisdictions have laws that protect employees who must leave work due to family emergencies.
Human Understanding: Colleagues and superiors are often sympathetic to family emergencies since such situations can happen to anyone, at any time, fostering an environment of understanding.
The gravity of a family emergency that might compel one to quit abruptly could range from a serious illness or accident to a sudden need for care for a family member.
#2 – Sudden Health Issues that Require Immediate Attention
When an individual’s health or life is at stake, it invariably takes precedence over job responsibilities. However, many people should opt for short-term disability to keep their health coverage as well as a smaller paycheck.
Recovery from a health crisis isn’t always quick and can necessitate an extended period away from work that cannot be predicted at the outset.
Physical and Mental Limitations: Health issues might limit the physical or mental capacity to perform job duties effectively or safely.
Quality of Life: Severe health problems can drastically alter one’s quality of life, making job concerns secondary to finding a path to wellness.
Workplace Accommodations: Sometimes, current workplace accommodations may not be sufficient to support an employee’s health needs.
Legal Protections: In many regions, employment law provides protections for workers who must leave their jobs due to health concerns.
It’s worth noting that particulars around personal health are private, and sharing details is at the discretion of the individual. Moreover, a discussion with human resources may provide options such as a leave of absence or disability leave, which could offer an alternative to resigning.
#3 – An Irresistible Job Offer That Can’t Be Delayed
At times, a career opportunity arises that is so compelling it warrants immediate action, with a start date that doesn’t accommodate a notice period.
In such cases, the opportunity cost of staying may be too high to ignore. Especially if you can make over $10k a month.
Unique Opportunities: The offer might represent a unique or rare advancement in one’s career that is unlikely to come around again, making it a now-or-never decision.
Significant Benefits: An offer that significantly improves financial standing, work-life balance, benefits, or professional growth can merit a swift transition.
While quitting a job without notice is far from ideal, certain career moves justify this approach. In these situations, one must weigh the professional norms against the career-defining potential of the new opportunity.
#4 – Immediate Relocation Due to Spouse or Partner’s Job
Unfortunately, relocations are often dictated by the partner’s employer or business needs, leaving little choice or room for negotiation regarding timelines.
Tackling this conversation as soon as possible allows your employer to start considering replacements and preparing for the transition, while also demonstrating your goodwill and integrity despite the abrupt notice.
If possible, see if you can transition to a remote position and keep your job.
#5 – Encountering a Toxic Work Environment for Mental Health
A toxic work environment can significantly impact an employee’s mental health.
When these negative aspects of the workplace become overwhelming, resigning without notice can be a necessary step to preserve well-being. This could be from unreasonable pressure, harassment or bullying, excessive workload, or a persistently high-stress environment that can all contribute to an unhealthy workplace.
Document the Environment: Keep records of incidents that contribute to the toxic environment, especially if they are egregious or repetitive, as these may be necessary for explaining your abrupt departure if questioned by future employers or legal entities.
Consult with HR: Ideally, concerns should be reported to human resources or appropriate management before deciding to leave, but if the situation does not improve or worsens, this may reinforce your decision to resign.
In such environments, taking immediate steps to leave may be the best course of action for personal health.
#6 – Safety Concerns in the Workplace Demanding Prompt Exit
When an employee feels that their physical well-being is at risk, it becomes necessary to prioritize personal safety over professional obligations.
Here’s why safety concerns justify a prompt exit:
Legitimate Fear: If the work environment poses a genuine risk to physical health or life — due to hazardous conditions or failing to meet safety regulations — immediate resignation is warranted.
Unresolved Issues: Continued employment might not be tenable if you’ve reported safety concerns and they have not been addressed in a timely or effective manner by management.
Legal Compliance: Employers are legally obliged to provide a safe working environment. Non-compliance with this fundamental requirement creates a justifiable reason for employees to leave without notice.
When resigning due to safety concerns, clearly explain that your primary reason for leaving is the need to ensure personal safety. It’s important to have a record of safety concerns reported to the appropriate parties within the organization, even if those concerns were not adequately addressed.
#7 – Legal Issues That Hinder Continuation of Employment
Legal issues can be sensitive and complex, thus it is important to maintain confidentiality and professionalism throughout the resignation process. When legal constraints interfere with employment, here’s why they necessitate an urgent departure:
Binding Legal Obligations: Court orders, such as those related to family or criminal law matters, may impose restrictions on an individual’s movements or activities that are incompatible with their current employment.
Visa or Work Authorization Changes: For employees working in a country under specific visas or work authorizations, any changes or revocations in legal status can demand an immediate resignation.
Conflict of Interest: Discoveries of conflict of interest that might have legal repercussions for the employee or employer can justify instant resignation to prevent further complications.
Mandated Reporting: Certain legal issues could force an employee to stop working immediately, such as those involving mandated reporting of unethical or illegal activities.
Ensuring clarity and integrity in communication can help in maintaining a positive relationship with former employers and colleagues.
#8 – Ethical Conflicts
Ethical conflicts at work, such as being asked to engage in dishonesty or illegal activities, justify resigning immediately to preserve one’s integrity and avoid potential personal and professional repercussions.
Professionals who feel their personal values strongly clash with the practices or culture of the company may decide that an immediate exit is the only course of action that aligns with their integrity.
For many, this is a valid excuse to leave a job. One of the main reasons for working hard to become financially independent is important.
#9 – Significant Lifestyle Changes
Major life changes, such as getting married, having a child, or needing to care for a loved one, can result in the need for immediate resignation.
Also, choosing to further one’s education is a compelling reason to quit a job without notice, as enrollment opportunities and class schedules often necessitate quick transitions that may not align with traditional notice periods.
Regardless of the significant change happening in your life, you do not have to share all of the details with your employer. You just have to state the bare minimum information.
#10 – Lack of Job Security
Rumors of downsizing or concerns about job stability might provoke an employee to preemptively quit and seek a more secure position elsewhere.
This is not something that should be overlooked. Having a stable job is one of the foundations of being financially sound.
This can serve as a solid justification for resigning without notice. This decision underscores the importance of ensuring your financial and professional security in an unpredictable job market.
What are the best excuses to quit a job you just started without notice?
Quitting a job shortly after starting can be challenging, but certain circumstances can serve as valid reasons for making such a decision.
Here are some of the best excuses for leaving a new job without notice:
Misrepresented Job Role: Discovering that the actual job significantly differs from what was described during the interview process can be grounds for immediate resignation.
Unexpected Life Changes: Sudden personal changes, such as a family emergency or a significant other’s job relocation, may necessitate a quick move that isn’t conducive to employment continuation.
Health Concerns: Onset or discovery of a health condition that precludes one from fulfilling job duties is a compelling reason to leave abruptly.
Hostile Work Environment: Encountering a toxic or hostile work culture, if intense enough, is reason enough to depart without protracted notice.
Superseding Job Offers: Sometimes, a more fitting job offer with immediate start requirements might present itself unexpectedly after beginning a new position.
Ethical or Moral Discomfort: If the organization’s practices conflict with your personal ethics or beliefs to an unresolvable degree, this may justify the quick termination of the employment.
Choosing to quit a job without notice is significant, but when necessary, the above reasons coupled with a tactful approach can mitigate the potential negative impact on your career.
This is something my husband had to decide when a second offer came in after he accepted another position.
Template and Guidelines for Your no Notice Resignation Letter
A no-notice resignation letter should remain professional and succinct, addressing the essential points with respect and clarity. Here are the key components a letter of this nature should include:
Subject Line: If the resignation letter is sent by email, include a clear subject line, such as “Immediate Resignation – [Your Full Name].”
Salutation: Begin the letter with a polite greeting directed at your manager or the appropriate party, like “Dear [Manager’s Name].”
Statement of Resignation: Convey the intent to resign clearly and assertively, stating your position and last day, which will be immediate or as soon as possible.
Reason for Immediate Departure: Briefly explain the reason for leaving without notice. The language should be direct but need not go into personal detail.
Expression of Thanks: Thank the employer for the opportunity to work at the company, and acknowledge the experience and skills gained, regardless of the length of employment.
Offer to Assist: If viable, offer assistance in wrapping up your duties or helping with the transition. Proposals can include preparing handover notes or availing yourself of follow-up queries after departure.
Contact Information: Provide your personal contact details for any future correspondence, including your phone number and personal email address.
Closing and Signature: Close the letter with a professional sign-off, such as “Sincerely,” followed by your typed name and handwritten signature for a printed letter.
Drafting a no-notice resignation letter with these elements allows you to articulate your need to leave promptly while maintaining professionalism and respect toward your employer and colleagues. The objective is to facilitate the transition with as much grace and tact as the circumstances allow.
Sample Resignation Letters for Different Scenarios
Here are sample resignation letters for different scenarios that call for leaving without notice.
Due to Personal or Family Emergency:
Subject: Immediate Resignation – [Your Name]
Dear [Manager’s Name],
I am writing to inform you of my immediate resignation from my position as [Your Position] at [Company Name] due to an unforeseen personal/family emergency that requires my full attention. Please accept my regret that I cannot provide a traditional notice period, and I sincerely apologize for the abrupt timing.
I would like to express my gratitude for the opportunities and support provided to me during my time at [Company Name]. I have learned a great deal and have valued working alongside my colleagues.
Please now, I am available to assist in any way possible to ensure a smooth transition. Let me know if there are specific matters you would like me to address before my departure.
Thank you for your understanding during this difficult time.
It is with regret that I must submit my immediate resignation from my role as [Your Position] at [Company Name], effective [Today’s Date]. Unfortunately, due to recent and unexpected health issues that require urgent and extensive attention, I am unable to continue my duties and provide adequate notice.
I have genuinely enjoyed working at [Company Name], and I am very grateful for the supportive work environment and the professional development I have received.
I will do everything within my ability to assist in the handover process. Please inform me of any priorities that need to be addressed.
Thank you for your consideration, and I hope to remain in touch in the future.
Please accept this letter as formal notification of my resignation from [Company Name] as a [Your Position], effective immediately.
I have recently received a job offer that presents a substantial career opportunity for me and requires an immediate start. After careful consideration, I have decided to accept this offer. I understand that my sudden resignation may cause inconvenience, and for that, I deeply apologize.
I am grateful for the valuable experience and the professional growth provided to me at [Company Name]. It has been an honor to work with such a talented team and contribute to the company’s goals.
To assist in the transition, I am prepared to provide concise documentation and notes on current projects. Please inform me if you require any additional help.
Thank you for your understanding. I wish [Company Name] and my colleagues continued success.
These templates should be adapted to fit your particular situation and to reflect the tone and professional relationship you have with your employer.
Is it OK to resign effective immediately?
Resigning with immediate effect is generally not the preferred protocol and can be a challenging decision to make due to its potential impact on your employer, your team, and your professional reputation.
The common practice is to give your employer two weeks’ notice.
However, it is acceptable under certain circumstances, especially when continuing to work is not possible due to pressing personal reasons, safety concerns, health issues, or other severe conditions.
In the end, while resigning with immediate effect can be OK, it should be regarded as a last resort, utilized when circumstances are such that other options are not feasible.
Now, make sure you have other ways to make money to pay your bills.
If not, check out this list of low stress jobs that pay well!
Know someone else that needs this, too? Then, please share!!
Did the post resonate with you?
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.
Inside: Learn what 11 an hour is how much a year, month, and day. Plus tips to budget your money. Don’t miss the ways to increase your income.
We are going to under the cover and discover $11 an hour is how much per year.
For most Americans, this is hovering near minimum wage.
Let’s get this straight… This is not a livable wage.
If you are in high school or college and have support from your parents, then this is great spending money for you.
However, if you are making it on your own, $11 per hour will not make ends meet each month.
For most people, being at minimum wage is common and the goal is to make your way up the payscale and quickly!
In this post, we’re going to detail exactly what $11 an hour is how much a year. Also, we are going to break it down to know how much is made per month, bi-weekly, per week, and daily.
That will help you immensely with how you spend your money. Because too many times the hard-earned cash is brought home, but there is no actual plan for how to spend that money.
When living close to minimum wage, you must know how to manage money wisely.
More than likely, you are living paycheck to paycheck and struggling to survive to the next paycheck. Take a deep breath and make this minimum wage just a season.
The ultimate goal is to make the most of your hourly wage with inspirations to make more money.
If that is something you want to do, then keep reading. You are in the right place.
$11 an Hour is How Much a Year?
When we ran all of our numbers to figure out how much is $11 per hour is as annual salary, we used the average working day of 40 hours a week.
40 hours x 52 weeks x $11 = $22,880
$22,880 is the gross annual salary with a $11 per hour wage.
As of June 2023, the average hourly wage is $33.58 (source).
This you are making WAY LESS than the average wage.
Let’s breakdown how that number is calculated
Typically, the average work week is 40 hours and you can work 52 weeks a year. Take 40 hours times 52 weeks and that equals 2,080 working hours. Then, multiply the hourly salary of $11 times 2,080 working hours and the result is $22,880.
That number is the gross income before taxes, insurance, 401K, or anything else is taken out. Net income is how much you deposit into your bank account.
Work Part Time?
But you may think, oh wait, I’m only working part time. So if you’re working part time, the assumption is working 20 hours a week at $11 an hour.
Only 20 hours per week. Then, take 20 hours times 52 weeks and that equals 1,040 working hours. Then, multiply the hourly salary of $11 times 1,040 working hours and the result is $11,440.
How Much is $11 Per Month?
On average, the monthly amount would average $1,907.
Annual Amount of $22,880 ÷ 12 months = $1,907 per month
Since some months have more days and fewer days like February, you can expect months with more days to have a bigger paycheck. Also, this can be heavily influenced by how often you are paid on and on which days you get paid.
Work Part Time?
Only 20 hours per week. Then, the monthly amount would average $953.
How Much is $11 per Hour Per Week
This is a great number to know! How much do I make each week? When I roll out of bed and do my job, what can I expect to make at the end of the week?
Once again, the assumption is 40 hours worked.
40 hours x $11 = $440 per week.
Work Part Time?
Only 20 hours per week. Then, the weekly amount would be $220.
How Much is $11 per Hour Bi-Weekly
For this calculation, take the average weekly pay of $440 and double it.
$440 per week x 2 = $880
Also, the other way to calculate this is:
40 hours x 2 weeks x $11 an hour = $880
Work Part Time?
Only 20 hours per week. Then, the bi-weekly amount would be $440.
How Much is $11 Per Hour Per Day
This depends on how many hours you work in a day. For this example, we are going to use an eight hour work day.
8 hours x $11 per hour = $88 per day.
If you work 10 hours a day for four days, then you would make $110 per day. (10 hours x $11 per hour)
Work Part Time?
Only 4 hours per day. Then, the daily amount would be $44.
$11 Per Hour is…
$11 per Hour – Full Time
Total Income
Yearly (52 weeks)
$22,880
Yearly (50 weeks)
$22,000
Monthly (173 hours)
$1,907
Weekly (40 Hours)
$440
Bi-Weekly (80 Hours)
$880
Daily Wage (8 Hours)
$88
Net Estimated Monthly Income
$1,455
**These are assumptions based on simple scenarios.
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Paid Time Off Earning 11 Dollars an Hour
Does your employer offer paid time off?
As an hourly, close to minimum wage employee, more than likely you will not get paid time off.
So, here are the scenarios for both cases.
For general purposes, we are going to assume you work 40 hours per week over the course of the year.
Case # 1 – With Paid Time Off
Most hourly employees get two weeks of paid time off, equivalent to 2 weeks of paid time off.
In this case, you would make $22,800 per year.
This is the same as the example above for annual salary making $11 per hour.
Case #2 – No Paid Time Off
Unfortunately, not all employers offer paid time off to their hourly employees. While that is unfortunate, it is best to plan for less income.
Life happens. There will be times you need to take time off for numerous reasons – sick time, handling an emergency, or even vacation.
So, let’s assume you take 2 weeks off without paid time off.
That means you would only work 50 weeks of the year instead of all 52 weeks. Take 40 hours times 50 weeks and that equals 2,000 working hours. Then, multiply the hourly salary of $11 times 2,000 working hours, and the result is $22,000.
40 hours x 50 weeks x $11 = $22,000
You would average $88 per working day and nothing when you don’t work.
$11 an Hour is How Much a year After Taxes
Let’s be honest… Taxes can take up a big chunk of your paycheck. Thus, you need to know how taxes can affect your hourly wage.
This is why you always wondering why your take-home pay is so much less.
Also, every single person’s tax situation is different.
On the basic level, let’s assume a 12% federal tax rate and a 4% state rate. Plus a percentage is taken out for Social Security and Medicare (FICA) of 7.65%.
Gross Annual Salary: $22,880
Federal Taxes of 12%: $2,746
State Taxes of 4%: $915
Social Security and Medicare of 7.65%: $1,750
$11 an Hour per Year after Taxes: $17,469
This would be your net annual salary after taxes.
To turn that back into an hourly wage, the assumption is working 2,080 hours.
$17469 ÷ 2080 hours = $8.40 per hour
After estimated taxes and FICA, you are netting $8.40 an hour. That is $2.60 an hour less than what you planned.
This is a very highlighted example and can vary greatly depending on your personal situation. Therefore, here is a great tool to help you figure out how much your net paycheck would be.
$11 an Hour Budget – Example
You are probably wondering can I live on my own making 11 dollars an hour? How much rent can you afford at 11 an hour?
Using our Cents Plan Formula, this is the best case scenario on how to budget your $11 per hour paycheck.
When using these percentages, it is best to use net income because taxes must be paid.
In this example, we calculated $11 an hour was $8.40 after taxes. That would average $1455 per month.
According to the Cents Plan Formula, here is the high level view of a $11 per hour budget:
Basic Expenses of 50% = $728
Save Money of 20% = $291
Give Money of 10% = $146
Fun Spending of 20% = $291
Debt of 0% = $0
Obviously, that is not doable when living so close to minimum wage. So, you have to be strategic on ways to decrease your basic expenses and debt. Then, it will allow you more money to save and fun spending.
To further break down an example budget of $11 per hour, then using the ideal household percentages is extremely helpful.
recommended budget percentages based on $11 per hour wage:
Category
Ideal Percentages
Sample Monthly Budget
Giving
10%
$76
Savings
15-25%
$114
Housing
20-30%
$572
Utilities
4-7%
$114
Groceries
5-12%
$153
Clothing
1-4%
$19
Transportation
4-10%
$114
Medical
5-12%
$191
Life Insurance
1%
$16
Education
1-4%
$10
Personal
2-7%
$29
Recreation / Entertainment
3-8%
$48
Debts
0% – Goal
$0
Government Tax (including Income Taxes, Social Security & Medicare)
15-25%
$451
Total Gross Income
$1,907
**In this budget, prioritization was given to basic expenses. Thus, some categories like giving and saving were less.
Living on $11 Per Hour
Living close to minimum wage can be a very difficult situation.
Is it doable? Probably not for long.
You just have to be wiser (or frugal) with your money and how you spend the hard-earned cash you have been blessed with.
A lot of times when people are making under the minimum wage mark, they feel like they are in this constant cycle that they can never keep up (which completely makes sense it is hard!).
When your thoughts are constantly focused on how you are struggling to keep up with bills and expenses, that is all you focus on.
You need to do is change your money mindset.
This is what you say to yourself… Okay, I am making near minimum wage for now. I have aspirations and goals to increase how much I make. For now, I am going to make sure that I am able to live on my 11 dollars per hour. I’m going to try and avoid debt and payday loans at all costs.
Other Tips to Help You:
Check your minimum wage for your state and city. You might find a higher minimum wage in a nearby city.
Look to living in a lower cost of living area to stretch your money.
Find ways to minimize your basic expenses.
Thrive with a minimalist lifestyle.
Decide if a roommate or moving back with your parents would help.
Bike or walk to work.
In the next section, we will dig into ways to increase your income, but for now, you must focus on living on $11 an hour.
5 Ways to Increase Your Hourly Wage
This right here is the most important section of this post.
You need to figure out ways to increase your hourly income because I’m going to tell you…you deserve more. You do a good job and your value is higher than what your employers pay you.
Even an increase of 50 cents to $11.50 will add up over the year. Even better $12 an hour!
1. Ask for a Raise
The first thing to do is ask for a raise. Walk right in and ask for a raise because you never know what the answer will be until you ask.
If you want the best tips on how specifically to ask for a raise and what the average wage is for somebody doing your job, then check out this book. In this book, the author gives you the exact way to increase your income. The purchase is worth it or go down to the library and check that book out.
2. Look for A New Job
Another way to increase your hourly wage is to look for a new job. Maybe a completely new industry.
It might be a total change for you, but many times, if you want to change your financial situation, then that starts with a career change. Maybe you’re stressed out at work. Making $11 an hour is too much for you and you’re not able to enjoy life, maybe changing jobs and finding another job may increase your pay, but it will also increase your quality of life.
3. Find a New Career
Because of student loans, too many employees feel like they are stuck in the career field they chose. They feel sucked into the job that they don’t like or have the potential they thought it would.
For many years, I was in the same situation until I decided to do a complete career change. I am glad I did. I have the flexibility that I needed in my life to do what I wanted when I needed to do it. Plus I am able to enjoy my entrepreneurial spirit.
4. Find Alternative Ways to Make Money
In today’s society, you need to find ways to make more money. Period.
There is no way to get around it. You need to find additional income outside a traditional nine-to-five position or typical 40 hour a week job. You will reach a point where you are maxed on what you can make in your current position or title. There may be some advancement to move forward, but in many cases, there just is not much room for growth.
So, you need to find a side hustle – another way to make money.
Do something that you enjoy, turn your hobby into a way to make money, turn something that you naturally do, and help others into a service business. In today’s society, the sky is the limit on how you can earn a freelancing income.
5. Earn Passive Income
The last way to increase your hourly wage is to start earning passive income.
This can be from a variety of ways including the stock market, real estate, online courses, book sales, etc. This is where the differentiation between struggling financially and being financially sound happens.
By earning money passively, you are able to do the things that you enjoy doing and not be loaded down, with having a job that you need to work, and a place that you have to go to. And you still make money doing nothing.
Here is an example:
You can start a brokerage account and start trading stocks for $50. You need to learn and take the one and only investing class I recommend. Learn how the market works, watch videos, and practice in a simulator before you start using your own money.
One gentleman started with $5,000 in his trading account and now has well over $36,000 in a year. Just from practice and being consistent, he has learned that passive income is the way for him to increase his income and also not be a slave to his job.
Tips to Live on $11 an Hour
In this last section, grasp these tips on how to live on $11 an hour. On our site, you can find lots of money saving tips to help stretch your income further.
Here are the most important tips to live on $11 an hour. Highlight these!
1. Spend Less Than You Make
First, you must learn to spend less than you make.
If not you will be caught in the debt cycle and that is not where you want to be. You will be consistently living paycheck to paycheck.
In order to break that dreadful cycle, it means your expenses must be less than your income.
And when I say income, it’s not the $11 an hour. As we talked about earlier in the post, there are taxes. The amount of taxes taken out of your paycheck is called your net income which is $11 an hour minus all the taxes, FICA, Social Security, and Medicare is taken out. That is your net income.
So, your net income has to be less than your net income.
2. Living Below Your Means
You need to be happy. And living on less can actually make you happier. Studies prove that less is better.
Finding contentment in life is one thing that is a struggle for most.
We are driven to want the new shiny toy, the thing next door, the stuff your friend or family member got. Our society has trained you that you need these things as well.
Have you ever taken a step back and looked at what you really need?
Once you are able to find contentment with life, then you are going to be set for the long term with your finances.
Here is our story on owning less stuff. We have been happier since.
3. Make Saving Money Fun
You need to make saving money fun. Period.
It could be participating in a no spend challenge for the month.
Check out the 200 envelope challenge (which is doable on your income)
It could be challenging your friends not to go to Target for a week.
Maybe changing your habits and not picking up takeout and planning meals.
Whatever it is challenge yourself.
Find new ways of saving money and have fun with it.
Even better, get your family and kids involved in the challenge to save money. Tell them the reason why you are saving money and this is what you are doing.
Here are 101 things to do with no money. Free activities without costing you a dime. That is an amazing resource for you and you will never be bored.
And you will learn a lot of things in life you can do for free. Personally, some of the best ones are getting outside and enjoying some fresh air.
4. Make More Money
If you want if you do not settle for less, then find ways to make more money. If you want more out of life, then increase your income.
You need to be an advocate for yourself.
Find ways to make more money.
It could be a side hustle, a second job, asking for a raise, going to school to change careers, or picking up extra hours.
Whatever path you take, that’s fine. Just find ways to make more money. Period.
5. No State Taxes
Paying taxes is one option to increase what you take home in each paycheck.
These are the states that don’t pay state income taxes on wages:
Alaska
Florida
Nevada
New Hampshire
South Dakota
Tennessee
Texas
Washington
Wyoming
It is very interesting if you take into account the amount of state taxes paid compared to a state with income taxes.
Also, if you live in one of the higher taxed states, then you may want to reconsider moving to a lower cost of living area. The higher taxes income tax states include California, Hawaii, New Jersey, Oregon, Minnesota, the District of Columbia, New York, Vermont, Iowa, and Wisconsin. These states tax income somewhere between 7.65% – 13.3%.
6. Stick to a Budget
You need to learn how to start a budget. We have tons of budgeting resources for you.
While creating a budget is great, you need to learn how to use one.
You do not have to budget down to every last penny.
You need to make sure your expenses are less than your income and that you are creating sinking funds for those irregular expenses.
Budget Help:
7. Pay Off Debt Quickly
The amount that you pay interest on debt is absolutely absurd.
Unfortunately, that is how many of these companies make their money from the interest you pay on debt.
If you are paying 5% to even 20-21% or higher, you need to find ways to lower that debt quickly.
Here’s a debt calculator to help you. Figure out your debt free date.
Paying off debt fast is your target and main focus. I can tell you from personal experience, that it was not until we paid off our debt that we finally rounded the corner financially. Once our debt was paid off, we could finally be able to save money. Set money aside in separate bank accounts and pay for cash for things.
It took us working hard to pay off debt. We needed persistence and patience while we had setbacks in our debt free journey.
Here are resources now for you to pay off your debt:
Jobs that Pay $11 an Hour
You can always find jobs that pay $11 per hour. Polish up that smile, fill out the application and be prepared with your interview skills.
Job Search Hint: Always send a written follow-up thank you note for your interview. That will help you get noticed and remembered.
First, look at the cities that require a minimum wage in their cities. That is the best place to start to find jobs that are going to pay higher than the federal minimum wage rate. Many of the cities are moving towards this model so, target and look for jobs in those areas.
Possible Ideas:
Cashiers
Back of the house restaurant staff
Landscape Laborer
Retail jobs
Paraeducators at schools
Janitors
Farm help
Warehouse workers
$11 Per Hour Annual Salary
In this post, we detailed 11 an hour is how much a year. Plus all of the variables that can impact your net income. This is something that you can live off.
$22,800
In this post, we highlighted ways to increase your income as well as tips for living off your wage.
Use the sample budget as a starting point with your expenses.
You will have to be savvy and wise with your hard-earned income. But, with a plan, anything is possible!
Try one of these ways to make money quickly to help you in the interim.
Know someone else that needs this, too? Then, please share!!
Did the post resonate with you?
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.
One about Charlie Munger, one about Taylor Swift, and one about a NASA astronaut who also starred (no pun intended) on the Big Bang Theory.
Charlie Munger’s Deathbed Regret
A few weeks before he died, Charlie Munger was asked if he had any regrets in life.
Only one, he replied.
“I would have paid any amount to catch a 200 pound tuna when I was younger. I never caught one,” he said in an interview with CNBC’s Becky Quick.
But at age 99, he didn’t have the youthful strength and vitality of a 96-year-old, he said.
“I am so old and weak compared to when I was 96 that I no longer want to catch a 200 pound tuna. It’s just too goddamn much work to get it in. Takes too much physical strength … Now if you give me the opportunity, I would just decline going after [the fish]. There are things you give up with time.”
Lessons:
At the end of your life, you don’t think about your net worth. (Charlie’s is estimated at $2.6 billion.) You think about experiences. Don’t trade the opportunity to enjoy experiences for the sake of clutching onto your cash.
If you’re under 96, stop complaining that you’re too old. The future version of yourself will regard your current age as young.
There’s no alternative but to act now. Opportunities are fleeting.
Munger also described fishing as a metaphor for investing:
“I have a friend who says the first rule of fishing is to fish where the fish are,” Munger said when he was 93. “The second rule of fishing is to never forget the first rule. We’ve gotten good at fishing where the fish are.”
Taylor Swift’s Windfall at Age 18
From TIME’s Person of the Year profile on Taylor Swift:
But some months later, at Swift’s 18th birthday party, she saw [Kenny] Chesney’s promoter. He handed her a card from Chesney that read, as Swift recalls, “I’m sorry that you couldn’t come on the tour, so I wanted to make it up to you.”
With the note was a check. “It was for more money than I’d ever seen in my life,” Swift says. “I was able to pay my band bonuses. I was able to pay for my tour buses. I was able to fuel my dreams.”
Most people, at 18, would spend that cash on a more comfortable lifestyle, or pay for college, or make market investments (stocks, crypto).
Instead, she invested in her fledgling music career. Tour buses.
Lesson:
The best investment is the one that you make in yourself.
In expanding your business or side hustle. In building your skills and smarts. In honing your craft. In strengthening your relationships. And even — dare I say — in your appearance.
No, the ROI can’t always be measured. I doubt anyone has plugged the cost of those tour buses into a spreadsheet and amortized those across her 15-year career.
But *YOU* are the investment with the strongest upside potential.
The Astronaut Who Almost Didn’t Make It
In this special Afford Anything podcast episode, former NASA astronaut Mike Massimino explains how YOU can take your own moonshot.
We met at a video studio in Brooklyn and spoke for hours about tenacity, drive, determination — and about sending the first tweet from space.
He described getting mocked by Seth Meyers on Saturday Night Live, joining the cast of the Big Bang Theory 💥, and how astronauts fart in space.
And he shared lessons that anyone can apply to their own life, as they chase dreams that society says aren’t “realistic.”
Inside: Escape the cycle of being broke with insightful tactics. Learn to invest, save smartly, spot financial traps, and build secure money habits today.
You are desperate right now. You want to know why I am broke.
I get it. This is a situation I have been in before and just recently when I lost my main source of income.
The feelings of you can’t afford anything may send you down a steep spiral of depression.
So, how do we escape?
Here are the tips I used before and plan to use again.
Top Reasons for Why I am Broke
#1 – The Mindset Traps That Keep You Broke
A mindset that cultivates a sense of scarcity rather than abundance can be a massive roadblock to financial prosperity. When you’re shackled by thoughts like “I am always broke,” you unwittingly set the stage for a self-fulfilling prophecy.
The mental narrative that convinces you wealth is unattainable can keep you trapped in a loop of missed opportunities and poor financial decisions.
You may inadvertently sabotage your potential to earn more, save, or invest wisely by clinging to a defeatist paradigm.
Fixing a broken mindset is about shifting from a state of helplessness to one of deliberate, empowering action.
It starts with self-awareness and is further built through intentional positive affirmations and financial education.
Overcome By: Remember, the mind is powerful—it can be your greatest ally or your most formidable adversary. Change your money mindset.
#2 – Living Beyond Your Means: A Fast Track to Empty Pockets
Living beyond your means is akin to constantly filling a sieve with water, hoping it will someday retain more than it loses—a surefire way to financial drought. It’s a lifestyle where your outflow far exceeds your inflow, and every paycheck evaporates into the ether of consumerism.
With the advent of credit cards and buy-now-pay-later schemes, the temptation to spend money we don’t have has never been greater.
The façade of affluence conceals the grim reality of financial instability.
Acknowledging this trap is step one. Living within one’s means doesn’t imply sacrificing joy or reverting to asceticism; it’s about striking a harmonious balance between the lifestyle you desire and the one you can sensibly afford.
Overcome By: Making choices aligned with your financial reality, finding contentment in simplicity, and prioritizing financial health over transient pleasures.
#3 – Chronic Debt: Borrowing from Tomorrow for Today
Chronic debt is a pervasive issue, ensnaring individuals in a vicious cycle of borrowing today and worrying about repayment tomorrow. This pattern often stems from an urgency to fulfill immediate desires or needs without adequate financial resources.
Alarmingly, the trend of increasing consumer debt signals a culture obsessed with instant gratification as consumer debt is $16.84 trillion in Q2 2023, according to Experian. 1
Being in debt should not be normal.
The onus of breaking free from chronic debt lies in reevaluating your relationship with money. It means slowing down the urge to splurge, meticulously planning for future financial obligations, and carving a path towards debt repayment.
Overcome By: Find the discipline to not only stop accumulating debt but also to aggressively tackle existing debts through methods like debt snowball or debt avalanche strategies.
#4 – You Haven’t Learned to Plan and Budget for a Brighter Tomorrow
The lack of a strategic financial plan and a detailed budget is tantamount to navigating unknown terrain without a map. Without these critical tools, your finances are left to chance rather than choice, leaving you vulnerable to the whims of circumstance.
Budgeting is perhaps the most fundamental step toward taking ownership of your financial future. It gives you a clear snapshot of where your money is going, which is essential for making informed spending decisions.
However, many avoid the budgeting process, perceiving it as restrictive or complex. The truth is that budgeting liberates you from the anxiety that comes with uncertainty. It empowers you to align your spending with your financial goals and to find a balance between today’s necessities and tomorrow’s aspirations.
Overcome By: Choose a budgeting method whether it be the zero-based budget, the 50/30/20 rule, or the envelope system, the key is to find a method that resonates with your lifestyle and stick to it.
#5 – No Emergency Fund to Weather Financial Storms
An emergency fund is an essential bulwark against the financial tempests life invariably hurls your way. Without it, a single unforeseen event—a job loss, a medical emergency, or an urgent car repair—can capsize an already precarious financial ship. The lack of an emergency cushion extends an open invitation to debt and financial strain.
The data tells a stark tale:
A statement from the Consumer Financial Protection Bureau highlights that nearly a quarter of consumers (24%) don’t have an emergency savings account. 2
Additionally, 39% have less than a month’s worth of income saved for emergencies, setting the stage for potential financial disaster. 2
This precarious situation has become more pronounced with the increasing cost of living and high inflation rates witnessed in 2021-2023.
Overcome By: Structured, automatic savings transfers to facilitate the gradual growth of your emergency fund without it feeling like a financial blow. The goal is to build a reservoir robust enough to cover several months of living expenses, providing a comfortable buffer that can help you bounce back from setbacks without the need to borrow money at high-interest rates or liquidate precious assets at inopportune times.
#6 – Lack of Understanding of The Power of Investing
Understanding the power of investing is key to grasping the potential of a seed. A seed, given the right conditions, can grow into a flourishing tree. Similarly, investing allows your finances to grow beyond the confines of stagnant savings.
Yet, many people fail to harness this power due to a lack of understanding or fear of the unknown. This was me for many years until I decided to learn to trade stocks.
A common misconception surrounding investing is that it’s solely the playground for the rich or financially savvy. This myth steers many away from multiplying their wealth via investments, leaving them to rely solely on their primary source of income. Moreover, a lack of understanding often leads to panic during market volatility, resulting in ill-timed decisions to buy high and sell low—contrary to sound investment strategies.
Overcome By: Invest money consistently into a low-cost mutual fund or ETF that tracks the overall S&P. Then, continue your investing education on how to invest in stocks.
#7 – Wasteful Spending Habits
Wasteful spending habits are the quiet thieves of financial security. They nibble away at your earnings, leaving you wondering where your money has gone at the end of each month. This pattern often goes unnoticed, as it’s usually composed of small, seemingly insignificant purchases that accumulate over time.
The danger of wasteful spending is its subtlety.
It’s the daily coffee on the way to work, the meal out because cooking feels like too much of an effort, or the impulse buys during the sale season.
Individually, these do not seem like considerable expenses, but together, they can consume a substantial portion of your budget.
To curtail this financial leak begins with recognizing and acknowledging these habits. Tracking every penny spent can be an eye-opening experience, illustrating just how quickly the ‘little things’ can add up. With this awareness, one can then consciously decide where to cut back.
Overcome By: Adopting a minimalist approach, where value and purpose become the benchmarks for every expense, can help combat wasteful spending. Questions like, “Do I really need this?” or “Will this purchase add value to my life?” can serve as useful filters. Take up a no spend challenge to see your mindless consumption.
#8 – Fail to Recognize the Patterns That Lead to a Near-Empty Wallet
Failing to recognize the patterns that deplete your wallet is akin to ignoring the signs of a leaking roof until it caves in—it’s a disaster in the making. Often, it isn’t one significant financial blunder, but rather a series of small, recurring missteps that lead to the near-empty wallet syndrome.
For instance, routinely underestimating monthly expenses can lead to a perpetual state of surprise when the bills pile up.
Similarly, neglecting to keep tabs on bank account balances may result in overdraft fees that, over time, take a sizable bite out of your funds.
Disregarding the accumulative effects of late payment charges or routinely paying only the minimum on credit card balances can exacerbate financial distress.
Overcome By: To reverse this trend, one must become a detective in their own financial mystery. Start by scrutinizing bank statements and tracking expenses. Look for patterns, like repeated late-night online shopping sprees or habitual dining out, which contribute to the thinning of your wallet. Use budgeting apps or spreadsheets to flag these patterns visually, making it easier to identify and amend them.
#9 – How Fear and Denial Contribute to Ongoing Money Issues
Fear comes in several forms: fear of failure, fear of taking risks, and even fear of facing the truth about one’s financial situation. It can immobilize individuals, preventing them from making necessary financial changes or taking action that could otherwise mitigate or reverse money woes.
For instance, the fear of losing money might dissuade one from investing in potentially lucrative opportunities, leaving them stuck in the low-yield safety of a savings account.
Further, there’s the psychological phenomenon of denial—a defense mechanism that numbs the pain of reality. When faced with mounting debt or budgetary failure, denial kicks in, allowing individuals to live as if the problem doesn’t exist. Unfortunately, ignoring overdue notices or dodging calls from creditors doesn’t make debts disappear.
Denial only deepens the financial hole, often leading to larger, more complex problems.
Overcome By: To confront these challenges, it’s crucial to adopt a stance of brutal honesty with oneself. This means acknowledging fears and confronting financial shortcomings head-on. Professional help, such as financial counselors or advisors, can provide support and guidance to navigate these tricky emotional waters.
#10 – No Clear Financial Goals and Plans
The absence of clear financial goals and plans is like embarking on a voyage without a destination. It not only leads to aimless wandering but also ensures that you miss out on the focus and motivation that well-defined objectives provide.
When you lack clarity on what you’re saving for or what you wish to achieve, there is little impetus to resist the temptations of immediate gratification or to weather the short-term sacrifices that long-term gains often require.
Setting clear and measurable financial goals lays the groundwork for creating effective plans to reach them.
Overcome By: To break this cycle, begin by reflecting on what you value most and where you would like to be financially in the future. Whether it’s achieving debt freedom, owning a home, funding education, or planning for retirement, having specific goals in mind will define the purpose of your financial activities. Craft a plan that outlines the steps needed to accomplish them.
#11 – Laziness is your Game
When you approach your finances with a laissez-faire attitude, it’s akin to ignoring the health of a garden; without regular attention and effort, it’s bound to wither. Financial laziness can manifest in various ways, from failing to review bank statements and ignoring budgeting to neglecting opportunities to cut costs or boost income.
Each act of omission is a step closer to the financial doldrums.
Procrastination or avoidance might seem less painful at the moment, but they ultimately compound the problem. Contrary to what some might think, simple acts of financial diligence, such as cash management or regularly doing household chores, do not require Herculean effort.
Moreover, they set a foundation for sound financial habits that thwart needless spending.
Overcome By: Schedule time for financial management much like an important meeting.
#12 – Keeping up with Others is Breaking Your Bank
The urge to keep up with others—often termed the ‘Keeping up with the Joneses’ or ‘Keeping up with the Kardashians’ phenomenon—is a profound pressure that exerts an invisible, yet powerful, force on financial habits. This social comparison can lead to an insidious form of competition, one that disregards personal financial realities in favor of an illusory social standing.
It’s an impulse driven by comparison, where the benchmark of success is set not by personal satisfaction, but by the possessions and lifestyles of others.
The decision to upgrade to a luxury car, splurge on designer clothes, or redo a perfectly functional kitchen stems not from need, but from a desire to project an image that matches or surpasses those in your social sphere.
Financial guru Dave Ramsey encapsulates this philosophy with his common saying, “Live like no one else will now, so in the future, you can live like no one else can.” This means making money moves that are right for you, not those dictated by social pressures, which can sometimes involve humbler living now for a wealthier future.
Overcome By: Breaking free from the shackles of this social competition requires introspection and a bold reaffirmation of personal values. Adjusting focus towards personal financial goals and aspirations, rather than mirroring others’ spending decisions, is key.
#13 – Need Help Differentiating Needs from Wants
The blurring line between needs and wants is a common financial pitfall that can lead individuals deeper into the morass of money woes.
Needs are essentials, the non-negotiable items necessary for survival—food, shelter, healthcare, and basic utilities.
Wants, on the other hand, include anything that is not vital for basic survival but enhances comfort and enjoyment of life.
The difficulty in distinguishing between the two often stems from habituation. What starts as a luxury, like eating out at restaurants, getting a high-end smartphone, or subscribing to multiple streaming services, can quickly become perceived as essential. This is particularly difficult in a consumer-driven society, where advertising and social media constantly inflate our perception of what we ‘need’ to lead a fulfilling life.
The result? A budget that’s stretched thin on non-essentials, leaving little room for savings or investment.
Overcome By: Regularly reassess expenses and ask the hard questions about whether a purchase is genuinely essential or merely a desire dressed up as a need.
#14 – You Don’t Make Enough Money to Cover Your Expenses
When your income doesn’t cover expenses, the strain can be relentless. This financial imbalance is often the stark root of the “I am broke” refrain. In such cases, every dollar becomes precious, and the financial breathing room feels nonexistent.
The reason is straightforward: if what comes in is less than what goes out, deficits and debt are the inevitable outcomes.
Addressing this challenge requires a two-pronged approach—increasing income and/or reducing expenses. For many, reducing expenses is the immediate reflex, and while it’s an essential strategy, there’s only so much you can save, but no limit to how much you can earn.
Overcome By: Focus on making more money. This could mean asking for a raise, seeking better-paying job opportunities, pursuing a side hustle, making money online, or acquiring new skills that offer higher income potential.
Long-Term Solutions to Build a Secure Financial Future
Building a secure financial future is an aspirational goal for many, but achieving it requires a strategic approach characterized by foresight, discipline, and an understanding of personal finance.
Becoming financially independent doesn’t happen by magic chance; it’s the result of deliberate actions taken with consistency over time.
Here are the foundational blocks for constructing a sturdy financial edifice:
Invest in Financial Literacy: Knowledge is power, and this is especially true in the realm of finance. Educate yourself about budgeting, investing, insurance, taxes, and retirement planning. Reliable resources include books, online courses, podcasts, and workshops.
Set Clear Financial Goals: Define what financial success looks like for you, whether it’s being debt-free, owning a home, or achieving financial independence. Detailed goals provide direction and motivation for your financial plan.
Create a Robust Budget: A flexible budget isn’t a one-time exercise but a living document that should evolve with your financial situation. It should reflect your income, fixed and variable expenses, and financial goals.
Establish an Emergency Fund: This is the bedrock of financial security. Aim to save three to six months’ worth of living expenses to protect yourself from unforeseen circumstances without falling into debt.
Pay Off Debt: High-interest debt is a major impediment to financial growth. Utilize strategies like the debt snowball or avalanche methods to tackle debts efficiently. Once you’re debt-free, avoid accumulating new debt.
Diversify Income Streams: Relying on a single source of income is a risk. Look for opportunities to create additional streams of income, such as side businesses, freelance work, or passive income from investments.
Invest Wisely: Make your money work for you through smart investments. Consider diversified portfolios, retirement accounts, and tax-efficient investment strategies to grow your wealth over time.
Plan for Retirement: The future is closer than you think. Contribute regularly to retirement accounts like 401(k)s or IRAs. Take advantage of employer match programs if available, as they’re essentially free money.
Protect Yourself with Insurance: Ensure you have adequate insurance coverage for health, life, property, and potential liabilities. This helps to guard against catastrophic financial losses.
Breaking the Cycle of Being Broke
Just like becoming broke is often a gradual process—a few uncalculated loans, hasty investments, and numerous credit card swipes. Suddenly, financial stability seems like a far-off dream.
The same goes for breaking the cycle of being broke. It is about moving from living paycheck to paycheck with no savings, drowning in debt, and making questionable spending decisions to become financially stable.
Even though our society may see being broke as normal, it is possible to embrace financial prudence to defy such norms. It’s time to delve into the reasons behind the perpetuation of brokeness and unveil practical steps toward lasting financial freedom.
What do I do if I’m broke?
Finding yourself in a financial predicament where the end of your money arrives before your next paycheck is a stress-inducing scenario.
When faced with the stark reality of being broke, here’s a step-by-step guide to help you navigate through and set the stage for a more stable financial future:
Assess Your Situation: Take stock of all your available assets and resources. This includes checking account balances, any savings, and items you could potentially sell for quick cash. Understanding what you have can help you gauge your immediate next steps.
Prioritize Your Expenses: Sort your expenses by urgency and necessity. Essentials like rent, utilities, and groceries come first. Non-essentials or discretionary spending should be paused or significantly reduced until your financial situation improves.
Reduce Costs Immediately: Eliminate any non-essential expenses. Cancel or suspend subscriptions, memberships, or services that are not vital. Consider cheaper alternatives for necessary expenses, and utilize community resources, such as food pantries, if needed.
Negotiate with Creditors: If you’re struggling to pay your bills, proactively reach out to creditors to discuss payment options. Many are willing to work with you on a revised payment plan to avoid defaults.
Seek Additional Income Sources: Consider taking on a side job, selling unused items, freelancing, or offering your skills for short-term gigs. Even small amounts of additional income can make a significant difference when you’re broke.
Consider Assistance Programs: Look into local, state, and federal assistance programs. You may be eligible for temporary aid to help with food, housing, or utility bills.
Borrow with Caution: If borrowing is unavoidable, be cautious and choose the most cost-effective options such as loans from family or friends, a personal loan with a low-interest rate, or a hardship withdrawal from your retirement account (as a last resort).
Remember, being broke can happen to anyone, so there’s no shame in it.
The key is to take swift, decisive action to mitigate the immediate crisis while also planning longer-term strategies to prevent recurrence. By addressing the issue head-on and adjusting your financial habits, you can initiate the journey from being broke to becoming financially buoyant.
FAQ: Navigating Away from Being Broke
Finding yourself consistently broke at the end of each month is an indicator that there’s a disconnect between your income and your spending habits.
It’s often the result of several factors or behaviors that, when combined, result in a cycle of financial scarcity. Here are common reasons why this might be happening:
No Budget or Poor Budgeting
Overspending
Impulse Purchases
Lack of Emergency Savings
Failure to Track Expenses
Living paycheck to paycheck
High Debt Payments
Remember, understanding why you’re broke at the end of the month is the first step towards financial stability.
Saving money when funds seem stretched to their limit is a challenge that requires creative strategy and discipline. Even with a tight budget, there are ways to eke out savings without significantly impacting your day-to-day life.
If saving a significant amount seems daunting, start by saving your change. Physically save coins or use apps that round up your purchases to the nearest dollar and save the difference. Check out my mini savings challenges.
Saving money when it seems there’s barely enough to cover the bills begins with a commitment to take whatever steps are necessary, however small they may initially seem. Every dollar saved is a step towards financial resilience and a buffer against future financial challenges.
Investing can be a powerful tool for building wealth over the long term, and it’s often considered a key component of achieving financial stability. However, for those who are currently struggling to make ends meet, the decision to invest should be approached with caution.
Investing typically involves committing money with the expectation of achieving a future financial return. It has the potential to outpace inflation and increase your wealth due to the power of compound interest. Nevertheless, it often carries the risk of losing the invested capital, a risk that those in financial distress may not be in the position to take.
Feeling Broke without Money – Time to Make A Change
Feeling broke is a stressful and demoralizing experience, but it’s also a clarion call for change. It signals that your financial health needs attention and that your money management strategies may require a significant overhaul.
However, the situation is not without hope; with determination and the right approach, it’s possible to transform your financial landscape.
The journey away from the precipice of being broke begins with honesty, introspection, and a willingness to adapt. It’s about confronting uncomfortable truths, devising a clear plan, and taking decisive action. From crafting and adhering to a precise budget, cutting unnecessary expenses, to seeking additional income streams—all these steps are essential in the path to financial stability.
Remember, feeling broke isn’t a permanent state. Mindset is everything.
It’s a challenge to be met, an opportunity for growth, and a chance to steer the course of your financial ship towards calmer and more abundant waters. Your future self will thank you for the changes you implement today, so take that first step now.
>>>It’s time to make a change—because you deserve the peace of mind that comes with financial security.
Source
Experian. “Experian Study: U.S. Consumer Debt Reaches $16.84 Trillion in Q2 2023.” https://www.experian.com/blogs/ask-experian/research/consumer-debt-study/. Accessed January 25, 2024.
Consumer Financial Protection Bureau. “Emergency Savings and Financial Security.” https://files.consumerfinance.gov/f/documents/cfpb_mem_emergency-savings-financial-security_report_2022-3.pdf. Accessed January 25, 2024.
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See what makes Cincinnati such a sweet spot to call home.
Welcome to Cincinnati, a hidden gem in the heartland of America. This article will act as your guide to understanding and enjoying everything that makes Cincinnati such a unique and enjoyable place to call home.
Whether you’re drawn by the allure of its historical significance, the plentiful employment opportunities, the many entertainment options or the outdoor splendor and downright delicious local dishes, Cincy has something for everyone. But what is Cincinnati known for, beyond the stereotypes? Let’s embark on a journey through the streets of this charming city, exploring the very essence of what makes Cincinnati, well, Cincinnati.
History
Situated on the banks of the Ohio River, the origins of Cincinnati trace back to 1788, making it one of the earliest settlements in the Midwest. Named after the Society of the Cincinnati, an organization honoring George Washington, the city initially flourished as a port town. The 19th century saw Cincinnati’s golden era, where it emerged as a center for commerce and industry, largely thanks to the Ohio and Erie canals.
As the 20th century dawned, Cincinnati continued to evolve, adapting to the changing times with remarkable resilience. Its architectural legend, seen in landmarks like the John A. Roebling Suspension Bridge, is a testament to its historical significance. In terms of innovation, Cincinnati was the birthplace of professional baseball with the Cincinnati Red Stockings in 1869, and later, the home of the first professional team, the Reds.
Cincy is also home to a ton of stellar educational institutions and a strong economy, anchored by sectors like healthcare, education and consumer goods. Today, Cincinnati is known for a lot. Above all, it’s a city where the past is not just remembered but celebrated and where a bowl of chili isn’t just a bowl of chili, it’s a plate of spaghetti too.
Employment
Beloved for its hard-working people and scenic riverfrontage, Cincinnati is equally notable for its employment opportunities. The healthcare industry is particularly strong, with major employers like Cincinnati Children’s Hospital Medical Center and UC Health leading the charge. These institutions are top healthcare providers and significant contributors to research and innovation in the medical field.
Education, another cornerstone of Cincinnati’s economy, is championed by esteemed institutions like the University of Cincinnati and Xavier University. These colleges are also major employers in the city, both fueling the intellectual and economic vitality of the region.
Cincinnati is also proud to host the headquarters of Procter & Gamble, a global giant in household and personal care products. This presence cements the city’s reputation as a hub for consumer goods innovation and business acumen.
Five of the largest employers in Cincinnati
The job scene in Cincy is also enriched by a burgeoning startup community, fueled by supportive initiatives like Cintrifuse and The Brandery, making the city a fertile ground for entrepreneurs and innovators. This blend of established corporations and emerging businesses creates a unique employment environment, where traditional industry expertise meets cutting-edge innovation, and everyone has an opportunity to snag a seat at the table.
The city’s strategic location along the Ohio River has historically made it a center for trade and logistics, a legacy that continues today with plenty of opportunities in transportation and warehousing. The diversity of Cincinnati’s employment opportunities, coupled with its commitment to innovation and growth, makes it an ideal place for career development and personal growth.
What is Cincinnati known for, in terms of entertainment?
Cincinnati offers more than a few entertainment options that cater to all interests. At the heart of its entertainment scene is the historic Over-the-Rhine district, a rejuvenated area where 19th-century architecture meets modern-day life. This district, famous for its beautifully restored buildings and lively streets, is home to Findlay Market, Ohio’s oldest continuously operated public market.
For music and theater enthusiasts, the Cincinnati Music Hall, an iconic venue known for its stunning architecture and world-class acoustics, puts on performances from the Cincinnati Symphony Orchestra, the Cincinnati Opera and a ton of other arts events. The city also prides itself on hosting the Cincinnati Art Museum and the Contemporary Arts Center, both renowned for their impressive collections and exhibitions.
Five of the best live performance venues in Cincinnati
For those seeking thrills and family fun, Cincinnati has options. The city is home to the famous Kings Island amusement park, just a short drive away, offering roller coasters and entertainment for all ages. Sports fans can enjoy the excitement at the Great American Ball Park, home of the Cincinnati Reds, America’s oldest professional baseball team, or catch a game at the Paul Brown Stadium, where the Cincinnati Bengals bring the big plays and the hard hits.
The Cincinnati Zoo & Botanical Garden, one of the oldest zoos in the United States, provides a captivating and educational experience for nature lovers. With its unique blend of historical allure and contemporary charm, Cincinnati’s entertainment scene offers a memorable experience that encapsulates the city’s spirit of innovation and tradition.
Outside
Celebrated for its striking riverfront and lush green spaces, Cincinnati offers a ton of things for outdoorsy types to do on a sunny day in the city. The crown jewel of Cincinnati’s outdoor portfolio is Smale Riverfront Park, a scenic expanse along the banks of the Ohio River, providing spectacular views and a variety of recreational activities. Another not-to-be-missed outdoor escape is the Cincinnati Nature Center, with miles of walking trails through picturesque forests and meadows, ideal for bird watching, hiking or simply soaking up the Cincy sunshine.
Five scenic state parks near Cincinnati
For the more adventurous spirits, the city’s proximity to the Ohio River opens up a world of water-based activities. Kayaking and paddle boating along the river provide a unique perspective of the city’s skyline, while also offering a peaceful retreat on the water. Little Miami Scenic Trail, a favorite among runners and bikers, provides a pathway through some of the most beautiful parts of Ohio.
Devou Park, situated in neighboring Covington, Kentucky, is still easily accessible from Cincinnati, and features breathtaking views of the city skyline, along with extensive trails and a challenging golf course. During the winter months, the nearby Perfect North Slopes resort in Lawrenceburg, Indiana, caters to skiers and snowboarders, offering snowy thrills just a short drive from the city.
Food
Cincinnati’s food scene is a delightful exploration of flavors and cultures that range from upscale to breakfast at the bar in a family-owned diner. A quintessential Cincinnati experience is tasting the city’s famous chili, uniquely served over spaghetti and topped with a mountain of shredded cheese – a dish that has become synonymous with the city’s soul.
Cincy also prides itself on its German heritage, evident in its love for sausages and goetta, a local breakfast specialty. Cincinnati also celebrates its brewing history, with a thriving craft beer scene that includes traditional breweries and trendy taprooms, each offering a distinct taste of the city’s rich brewing heritage.
Five of the best restaurants in Cincinnati
Helmed by creative chefs, Cincinnati is quickly transforming into a city that is a bonafide hub for gastronomic excellence. From fancy dining to cozy cafes, the variety caters to all palates. The Over-the-Rhine district buzzes with eclectic eateries and hip hangouts, providing a perfect blend of old-world charm and modern comfort.
Seasonal food festivals, like the Taste of Cincinnati and Oktoberfest Zinzinnati, offer opportunities to savor a range of dishes and celebrate the city at its finest. With a blend of historic flavors and contemporary flair, Cincinnati’s food scene offers a unique and memorable experience that is integral to the city’s identity.
See yourself in Cincinnati
After this brief exploration of one of the Midwest’s brightest stars, it’s easy to see that Cincinnati is not just a city; it’s a living, breathing entity full of history, innovation and community. Its robust employment landscape, coupled with its many entertainment options and outdoor activities, makes it a place of endless possibilities.
Whether you’re a resident discovering hidden gems or a visitor experiencing the city’s majesty for the first time, Cincinnati is a journey full of discovery and delight. From the rolling Ohio River to the bustling streets of Over-the-Rhine, every corner of Cincinnati tells a story, inviting you to be a part of its ongoing narrative. The only question now is, where will you settle down in the city?
Outfitting a new place with pictures and paintings can get expensive, but nowadays, there are plenty of cheap wall art options for your apartment that are inexpensive yet chic.
Once you’ve found the perfect apartment to rent, signed the lease and moved in, the fun part of decorating your new home can begin. If you’re wondering where to buy art for an apartment, we’ve put together a list of 25 places to find cheap wall art online. Browse these galleries or peruse in person and find cheap wall art for your apartment that’ll give it personality and color.
Where to buy art for your apartment
One day, you may be able to afford an original painting by your favorite artist, but until then, there are lots of places to find cheap wall art that’ll spice up your apartment without breaking the bank. Here are some places to consider when looking for art for your apartment.
1. Etsy
Etsy is an online marketplace where vendors can sell their arts, crafts and vintage supplies directly to buyers. While you’ll have to search and filter through lots of options, Etsy has a huge collection of art available and is a great place to browse when looking for cheap wall art.
2. Thrift shops
Your local thrift shop is a great place to start when looking for art for apartments. Because of the nature of thrift shops where products are constantly being donated, each time you go to the local thrift shop, you’ll find different art available for purchase at an inexpensive price point. Thrift shops will offer a wide range of art genres and you’ll never know what you’re going to find when you walk in. This makes it a fun place to check out frequently and see what you’ll stumble upon
3. Yard and estate sales
Like thrift shops, local yard and estate sales are great places to go and browse for cheap wall art. You don’t know what you’re going to find, but it is a fun surprise when you find something unexpected that you love.
4. Antique stores
Looking for something vintage and antique to decorate your apartment with? Antique stores can offer one-of-a-kind pieces of art that’ll make your apartment stand out from other homes. Antique art hunting requires patience, but when you find a fabulous piece of art, the hunt is worth it.
5. Society 6
Society 6 is a website for independent artists to showcase their work. Here, you’ll find a variety of art options — from paper prints to framed art to tapestries — to buy and decorate your apartment with.
6. Target
Who doesn’t love going on a Target run? Whether you’re looking for cheap wall art online or looking to wander the aisles, Target offers a variety of art that’ll work when decorating anything from a nursery to the living room in your apartment.
7. Bed Bath and Beyond
Bed Bath and Beyond is another big-box store that offers a little bit of everything, including cheap wall art. Here you can purchase framed art or canvas prints that’ll look high-quality hanging in your home but won’t cost the same as a gallery piece would.
8. Art.com
Art.com is a great place to start when you’re looking for art for your apartment. This website offers thousands of pieces — from classics artists like Van Gogh and Picasso to unknown artists selling flowers or signs — Art.com is a great place to browse as you’ll find almost anything your heart desires.
9. Rifle Paper Co.
Rifle Paper Co. is a brand that features whimsical designs and sweet florals on a variety of products. From paper prints to licensed products, check out Rifle Paper Co. offers a nice selection of art to hang in your apartment.
10. Wayfair
Wayfair is where to look when you’re searching for anything from furniture to art to match. If you don’t know what style of art you like, Wayfair is a great place to start because you can match it to your furniture style.
11. Artfinder.com
Do you like to support local artists from around the world? If so, Artfinder.com is a great place to find cheap wall art online. You can find styles that you like and feel good about supporting local artists at the same time. Also, lots of times you’ll find art on sale, which is always a perk.
12. Minted.com
Minted.com offers limited edition prints, meaning the prints won’t always be available for purchase. If you like unique art at a stellar price point, check out Minted.com when browsing for cheap wall art online.
13. Overstock
If you’re in the mood to browse online at endless options, Overstock.com is the place for you. This online gallery offers thousands of options and you’re bound to find a piece of art (or two) that are great for your new apartment.
14. Christmas Tree Shops
Christmas Tree Shops offers so much more than holiday art. If you’re looking for canvas art that’ll look upscale and elegant in your home, this is a great website or store to check out.
15. Circle Graphics
Circle Graphics is a digital printing company and art vendor that can help you decorate your home with art or photos. Looking for art? Great. Looking to print your own photos on canvas? You can do that, too!
16. Home Goods
Home Goods is another place to browse online and in-store to find both cheap wall art and decorative elements for your apartment.
17. Great Big Canvas
Great Big Canvas is another online art gallery that allows you to search by subject, color, size or room. This is a great way to filter your art options and find the perfect piece for every wall in your apartment.
18. Abstract Art Gallery
If you want an original piece of art but don’t want to spend thousands of dollars, Abstract Art Gallery is a great place to find abstract-style art for under $500. Check out this site if you’re looking for an original piece for your apartment.
19. Paper Source
Paper Source is a boutique paper store that sells print art and fine paper that can easily be styled into wall art. Find a piece of paper or pattern that you love, buy a frame to match and voila, you’ve got yourself a cheap piece of wall art. This is a great option because you can easily swap the art out seasonally and have new art regularly.
20. Urban Outfitters
Looking for something a little more hipster? Check out Urban Outfitters art and decor section and you’ll find a wide selection of posters, prints and frames to decorate your apartment with.
21. iCanvas
iCanvas offers people a large selection of options to find cheap wall art online. You can purchase prints that feature iconic movie and TV scenes, abstract art or classics.
22. Uprise Art
If you’re the type of person who wants to spend money on one beautiful piece of art that is a statement piece, Uprise Art is a great source to check out. With art for under $800, you can get a wonderful piece of art that’ll last you forever.
23. Vertical Gallery
Vertical Gallery is a digital art gallery where people can browse and see a variety of artists month over month. This is a fun way to purchase cheap wall art because the collections change and provide you with new options.
24. Big Lots
Big Lots offers art and home decor for inexpensive prices. This is a great place to start looking for art if you aren’t sure about your style and don’t want to invest in an expensive piece yet. You can purchase a few pieces of art, see what you like, and then commit to a more expensive piece down the road.
25. Dollar Tree
Last but not least is Dollar Tree. If you’re looking for cheap wall art, try Dollar Tree. You can get prints for literally one dollar and outfit the entire apartment wall-to-wall if you want.
Decorate your apartment with cheap wall art
Whether you’re looking for one statement piece of art or multiple pieces you can swap out seasonally, there are plenty of places to find cheap wall art. These 25 places are a great place to start when looking for places to buy art for your apartment.
Sage Singleton is a freelance writer with a passion for literature and words. She enjoys writing articles that will inspire, educate and influence readers. She loves that words have the power to create change and make a positive impact in the world. Some of her work has been featured on LendingTree, Venture Beat, Architectural Digest, Porch.com and Homes.com. In her free time, she loves traveling, reading and learning French.
In recent years, the real estate landscape has undergone a profound transformation, marked by the popularity of build-to-rent homes. This innovative housing model, conceived for rental purposes, has emerged as a trend that not only caught the eye of industry stakeholders but has also redefined the expectations of both landlords and tenants.
In this deep dive, we will unravel the foundation of build-to-rent homes, comb through its growth path from its inception, evaluate its current status and think about the potentially far-reaching impact it may exert on the rental market.
Understanding build-to-rent homes
Build-to-rent homes represent a departure from conventional real estate development, as they are residential properties designed and constructed with the sole purpose of being rented out rather than sold. These purpose-built developments often manifest as part of larger rental communities, strategically incorporating an array of amenities and services to elevate the overall living experience for tenants.
What characterizes build-to-rent homes?
The terms “build to rent,” “built to rent,” “BFR” and “B2R” are interchangeable, all denoting properties constructed explicitly for long-term rentals. Rather than being purchased from other owners, these homes are constructed by owners with the specific intent of catering to tenants.
These properties can be owned by individuals or managed by companies, particularly within build-to-rent communities. The variety of build-to-rent homes includes single-family dwellings on standard-sized lots, small lot homes with closer proximity, duplexes featuring two attached units, triplexes with three attached units and row homes and a series of side-by-side houses sharing a common wall.
The origins of the trend
The roots of the build-to-rent trend delve into the need to adapt to the changing dynamics of the housing market. Factors such as urbanization, a shifting preference for flexibility among millennials and young professionals and a heightened desire for a convenient and hassle-free lifestyle contributed to the initial emergence of this trend. Its early development stages can be traced back to the early 2010s, witnessing a significant surge in build-to-rent developments that were crafted in response to the needs of the housing market.
The evolution of build-to-rent
The evolution of build-to-rent homes is intertwined with the broader socioeconomic shifts shaping our cities and communities. As urbanization accelerated, there was a demand for housing solutions that catered to the dynamic lifestyles of individuals seeking convenience, flexibility and a sense of community. The traditional model of homeownership faced challenges in meeting these evolving needs, paving the way for the rise of build-to-rent homes.
These purpose-built developments were conceived as more than just housing units; they aimed to create entire communities tailored to the modern renter’s lifestyle. Developers, typically a property management company, envisioned amenities like those of apartment buildings like fitness centers, swimming pools, communal spaces, co-working areas and on-site services to foster a sense of belonging and convenience within these rental communities. The objective was not merely to provide shelter but to curate an enhanced living experience that rivaled traditional single-family rentals.
Current status and popularity
As we cross the threshold from 2023 into 2024, the build-to-rent trend continues to gain momentum, asserting itself as a prominent player in the real estate domain. Investors and developers, discerning the potential for stable returns in the rental sector, have propelled a surge in construction projects exclusively dedicated to build-to-rent properties. The demand for such homes spans a diverse demographic spectrum, encompassing young professionals, families and retirees, all of whom are drawn to the benefits that build-to-rent communities offer.
The surge in popularity is not only a result of demographic shifts but also indicative of changing attitudes towards homeownership. The younger generations, in particular, are increasingly valuing flexibility and experience over the long-term commitment of owning a home. The advantages of build-to-rent properties, such as communal living, shared amenities and hassle-free maintenance, align seamlessly with these changing preferences.
Impact on landlords
Build-to-rent homes have ushered a shift for landlords, presenting a host of advantages that extend beyond the traditional rental model. One of the most significant benefits is the higher renewal rate. Tenants, appreciating the convenience and plethora of amenities provided in these purpose-built communities, are more inclined to renew their leases. This not only ensures a stable income stream for landlords but also fosters a sense of community and stability within these rental developments.
The streamlined management of build-to-rent properties is another boon for landlords. Centralized management, often facilitated by professional property management companies, allows for more efficient operations. From maintenance and security to community events and amenities, the integrated approach reduces the burden on individual landlords, contributing to a smoother and more sustainable rental model.
Furthermore, the scalability of build-to-rent developments provides investors with the opportunity to diversify their portfolios. The ability to own and manage multiple units within a single community or across various locations enhances the potential for economies of scale and mitigates risks associated with individual property management.
Impact on tenants
Tenants, the primary beneficiaries of the build-to-rent paradigm, stand to gain numerous advantages from choosing these purpose-built homes. These properties are meticulously designed with tenant needs in mind, offering an array of amenities such as fitness centers, communal space and on-site maintenance services. The emphasis on privacy is a notable characteristic, often achieved through detached or well-insulated units, setting build-to-rent homes apart from traditional rental options and providing tenants with a more comfortable and private living experience.
The communal aspect of build-to-rent living is a significant draw for tenants: This living experience aligns with the social preferences of modern renters, particularly the younger demographic, who prioritize connections and experiences over isolated living. The flexible lease terms offered by build-to-rent developments also cater to the transient nature of contemporary lifestyles. With the option for shorter leases and the absence of the burdensome responsibilities associated with homeownership, tenants can embrace a lifestyle characterized by mobility and adaptability.
Looking ahead at the future of single-family homes
As we cast our gaze into the future, the build-to-rent trend is poised to continue shaping the housing landscape in profound ways. The flexibility, convenience and community-oriented features of these developments are likely to attract an even broader spectrum of renters.
Moreover, advancements in sustainable and smart building technologies hold the promise of further enhancing the appeal of build-to-rent homes, making them a sustainable and forward-thinking choice for both landlords and tenants.
The integration of green building practices, energy-efficient technologies, and smart home solutions align with the growing emphasis on sustainability in the real estate sector. These innovations not only contribute to environmental conservation but also offer cost-saving benefits for both landlords and tenants. As society becomes more conscious of its ecological footprint, the incorporation of sustainable practices in build-to-rent developments positions it as a responsible and future-ready housing solution.
The confluence of these trends is not merely a fad; rather, it signifies a redefinition of how we conceptualize and experience rental housing. The integration of these elements is set to leave an major mark on the housing market, influencing its trajectory for years to come.
Looking for a place to rent, whether build-to-rent or something different. Check out our available apartments and houses for rent here.
Let’s discuss the proper way to account for inflation in retirement and FIRE planning.
I lurk in some online personal finance forums, and what I see scares me. I see “the blind leading the blind” discussing how to account for inflation as part of your retirement or financial independence plan.
These mistakes can be gut-wrenching. If you double-count inflation, you’ll assume a worse-than-real future and mistakenly believe retirement is impossible. But if you improperly discount inflation, you’ll assume a better-than-real future and torpedo your retirement with false hopes.
We’re going to fix that today.
What’s the Problem in the First Place?
The problem is that it’s challenging to understand if/when/how to apply inflation. It’s entirely understandable. Inflation is a weird phenomenon and the math isn’t intuitive.
Should you inflate your current salary into the future? What about your current spending? What about investment returns? You’ve probably heard of the 4% Rule; but how does inflation affect its usage?
All great questions. We’ll answer them all today.
The True World vs. The Convenient World
I’ve heard intelligent people tackle this concept before. It’s tough. Lots of numbers are involved. There are mysterious rules about when to apply those numbers and when not to. My friends Cody Garrett and Brad Barrett expertly tackled this topic on a recent episode of ChooseFI. :
As I listened to Cody and Brad, I thought: a few visual aids and analogies might help here.
My preferred analogy is what I call “The True World” vs. “The Convenient World.”
“The True World” involves numbers as they actuallyexist in our society and economy.
“The Convenient World” involves shortcuts that financial experts frequently use.
I’ll explain both worlds below.
Good news: you can do math in either world and get correct answers for your life. Hooray! This is wonderful. It shows the power of smart mathematics.
Bad news: you cannot flip-flop between worlds. You must do all your math in “The True World” or do all your math in “The Convenient World.”
The problems I see every week arise when DIYers flip-flop between worlds. So I say again: you cannot flip-flop between worlds!
Let’s describe these worlds.
The True World
Let’s talk about The True World a.k.a. our actual society and economy.
Inflation: inflation exists in the True World, typically varying between 2% and 4% per year. We don’t know what future inflation will look like. But it’s reasonable to use a benchmark like 3% per year.
Stock returns: stock returns vary in the True World and can do so by significant amounts. Still, a pattern emerges when we zoom out to large time scales (20+ years). On average, a diversified stock portfolio has returned ~10% per year over long periods. It’s reasonable to use that 10% benchmark for the future. $100 this year turns into $110 next year.
Bond returns: bond returns also vary in the True World, though typically by smaller amounts than stocks. Over the past 100 years, intermediate-term, high-grade bonds have returned ~5% per year. It’s reasonable to use that 5% benchmark for the future. $100 this year turns into $105 next year.
In the three bullets above, I made an interesting assumption: that the future will closely resemble the past. You’re allowed to disagree with me and say, for example, that you want to assume inflation will be 4% ongoing and stock returns will be 8% ongoing. That’s fine.
The critical point is that all your numbers occur here in the True World. Inflation is above zero. Stocks and bond returns are measured using the actual amount of dollars. When we combine these factors, we conclude:
Your future income will be higher than your current one, increasing with inflation.
Your future raises will be greater than current, increasing with inflation
Your future spending will be higher than current, increasing with inflation.
Your future annual savings will be higher than current, increasing with inflation.
Your future nest egg will grow by some mix of true-world return percentages (assuming you build a diversified portfolio).
Keep those four components in mind: income, raises, savings & spending, and investment growth.
If you do all of your future planning using “True World” numbers, your analysis results will show reality as it is. That’s the goal.
The Convenient World
In the True World, as we’ve seen, it seems everything gets adjusted up by inflation. Lame! And also a bit tedious. Can’t we just do a mathematical trick to remove inflation from the equation entirely?
Yes. That’s exactly right. Some intelligent people wanted to make The True World more convenient for us. We’re here today (discussing a confusing financial planning topic) because of that desire for convenience.
…which, in my opinion, is a great idea! Unfortunately, those good intentions paved the road to our present confusing situation. Those intelligent people said,
“Three of our four main components (income, raises, spending & saving) are adjusted by annual inflation. To make the math easier, let’s remove inflation. No more adjustments! But to even out all facets of the equation, we must also decrease the investment growth by the inflation rate.”
The Convenient World contains no inflation! Here in the Convenient World, our four components are:
Your future income will equal your current income (assuming no merit-based raises).
There are no raises (at least, no “cost of living” or “COLA” raises)
Your future annual spending & saving will equal your current values.
Your investments will grow by a mix of true-world return percentages minus the annual inflation rate.
There’s no inflation in any of the four factors. While we’ve decreased our future spending needs, we also decrease the amount we save in the future and the rate at which our investments grow. Everything is a bit muted in The Convenient World.
But because we’ve discounted inflation in both positive ways (less future spending) and negative ways (less investment growth), you can do future planning using these “Convenient World” numbers and your results will show reality as it is.
Don’t Believe Me?
“But Jesse! How can the math work if we remove inflation in retirement and FIRE planning?! We’re ignoring a very real phenomenon!”
Trust me. Trust the math. Take a look at this simple spreadsheet.
The True World tab uses true world data. The Convenient World tab removes inflation entirely as I’ve described above.
Both tabs yield the same exact retirement savings results (Column I).
What About “The 4% Rule?”
The famous 4% rule throws an important question at us.
As my 4% rule explainer article details, the 4% rule builds inflation into its math. The creators of the 4% rule told us, “Hey future retiree – don’t you worry about inflation in retirement, we’ve already built it into our mathematical construct. All you need to worry about is hitting your 4% or 25x nest egg goal at your retirement date.”
What’s that sound like? What world washes inflation away? The Convenient World!
Now, the 4% Rule applies starting Day 1 of Retirement and extends until the day you meet Charlie Munger (RIP). That stretch of time is covered by the 4% rule (or whatever retirement rule/simulation you choose to utilize).
How should you get from today to Day 1 of Retirement? I recommend continuing to do all of your math in The Convenient World. Remove inflation from your numbers altogether.
Can you mix and match? While dangerous, the answer is technically yes!
To get from Today to Your Retirement Date, you can either:
Do all your math in The Convenient World, where both your future annual spending AND your future nest egg need will be muted values, but the ratio of those two will be 4% or 25x.
Do all your math in The True World, where both your future annual spending AND your future nest egg will reflect reality, and the ratio of those two will be 4% or 25x.
You can technically use True World math to get from Today to Your Retirement Date, and then let the 4% Rule (which is Convenient World math) take over from there.
But you CANNOT mix-and-match True World and Convenient World math when determining how to get from Today to Your Retirement Date.
In this example, both True and Convenient math get us to a place we can start using the 4% Rule.
But – Those Future Nest Egg Amounts Are Different?!
We’re sitting here in 2024. The True World tells us we’ll need $3.75M to retire in 2040. The Convenient World tells us we’ll need $1.875M. Those two numbers are vastly different…so which one is right?
The way to think about that is:
We’ll need $1.875M to retire as measured in 2024 dollars
We’ll need $3.75M to retire as measured in 2040 dollars
Either way, the most important takeaway from these types of planning analyses is to understand what we need to do right nowin 2024 to hit these future goals. Then we can revisit in 2025, 2026, etc.
Thankfully, both True and Convenient math will inform us precisely what we need to do here in 2024. Both methods would tell us, for example, “You need to save $30,000 in 2024 to stay on track for your retirement goal.”
What About “Real” vs. “Nominal” Returns
You might have heard of “real returns” and “nominal returns” before. I use those terms regularly here on The Best Interest, but I’ve intentionally excluded them so far in our discussion of inflation in retirement and FIRE planning.
The reason is that “real returns” confuses my analogy of “The True World.” Ugh.
Investment professionals use the term “nominal returns” to describe the actual dollar amounts that investments are increasing/decreasing by. If $100 turns into $110, the nominal return is 10%. In other words, nominal returns exist in The True World.
Investment pros use “real returns” to describe whether investments increase your purchasing power. In other words, have the investments outperformed inflation? If $100 turns into $110 but there was also 4% inflation, the real return is ~5.77%. “Real returns” exist in The Convenient World.
Yes, it’s confusing. You’ve been warned. Good luck.
Lessons and Takeaways
What have we learned?
Inflation in retirement and FIRE planning is a touchy topic. It’s not intuitive or easy. In fact, it requires great attention to detail.
You can use True World numbers and get all the answers you need.
You can use Convenient World math that excludes inflation, and you’ll also get the answers you need.
I recommend against mixing and matching. That said, if you’re very comfortable with the math, you can mix-and-match and end up fine.
You don’t want to mess this up. Misapplying inflation (a ~3% annual mistake) compounded over decades will lead you to a dark place.
Talk to an expert if you need to. CFP financial planners know how to handle this. Modern financial planning software takes care of the math for you.
Go get ’em!
PS: Here’s a straightforward financial independence and 4% rule calculator where you can input your own data.
PPS – you’ll notice my calculator does all its math in The Convenient World!
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-Jesse
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Not surprisingly, the American Dialect Society voted “subprime” the word of the year for 2007.
At a voting session in Chicago on January 4, the group said the word was chosen because it provided a rare example from the banking sector that has become a part of everyday conversation.
“When you have investment companies losing billions of dollars over something like bundled subprime loans, then you have to consider whether it’s important,” said American Dialect Society spokesman Wayne Glowka, in a statement.
“You probably also want to think about paying off that third mortgage.”
It beat out competition from terms such as Facebook, green, water-boarding, and Googleganger.
Among related citations, the term “Ninja“, which means no income, no job, no assets, (no-doc loan) was also highlighted.
Other real estate terms nominated included “scratch and dent loan”, “exploding ARM“, and “liar’s loan“.
In 2006, the word of the year was “plutoed”, in reference to the planet losing its classification, preceded by the word “truthiness” in 2005, as made popular on the Colbert Report.
Founded in 1889, the American Dialect Society includes academics, amateurs, teachers and writers who study the English language in North America.