7 Things to Do After College Besides Work

Numerous college students have a trajectory in mind for navigating life after college. For some, getting a job is their top goal. But, are there other things to do after college besides work?

Beyond looking for a traditional entry-level job, there are alternative choices for new grads—including internships, volunteering, grad school, spending time abroad, or serving in Americorps.

Naturally, the options available will differ depending on each person’s situation, as not all alternatives to work come with a paycheck attached.

Here’s a look at these seven things to do after college besides work.

1. Pursuing Internships

One popular alternative to working right after college is finding an internship. Generally, internships are temporary work opportunities, which are sometimes, but not always, paid.

Internships may give recent grads a chance to build up hands-on experience in a field or industry they believe they’re interested in working in full time. For some people, it could help determine whether the reality of working in a given sector meets their expectations.

Whatever grads learn during an internship, having on-the-job experience (even for those who opt to pursue a different career path) could make a job seeker stand out afterwards. Internships can help beef up a resume, especially for recent grads who don’t have much formal job experience.

A potential perk of internships is the chance to further grow your professional network—building relationships with more experienced workers in a particular department or job. Some interns may even be able to turn their short-term internship roles into a full-time position at the same company.

Starting out in an internship can be a great way for graduates to enter the workforce, “road testing” a specific job role or company.

2. Serving with AmeriCorps

Some graduates want to spend their time after college contributing to the greater good of American society. One possible option here is the Americorps program—supported by the US Federal Government.

So, what exactly is Americorps? Americorps is a national service program dedicated to improving lives and fostering civic engagement. There are three main programs that graduates can join in AmeriCorps: AmeriCorps NCCC, AmeriCorps State and National, and AmeriCorps Vista.

There’s a wide variety of options in AmeriCorps, when it comes to how you can serve. Graduates can work in emergency management, help fight poverty, or work in a classroom.

However graduates decide to serve through AmeriCorps, it may provide them with a rewarding professional experience and insights into a potential career.

Practically, Americorps members may also qualify for benefits such as student loan deferment, a living allowance, education awards (upon finishing their service), and skills training.

It may sound a bit dramatic, but AmeriCorps’ slogan is “Be the greater good.” Giving back to society could be a powerful way to spend some time after graduating—supporting organizations in need, while also establishing new professional connections.

3. Attending Grad School

When entering the workforce, graduates may encounter job postings with detailed employment requirements.

Some jobs require just a Bachelor’s degree, while others require a Master’s–think, for instance, of being a lawyer or medical doctor. Depending on their field of study and career goals, some students may opt to go right to graduate school after receiving their undergraduate degrees.

The number of jobs that expect graduate degrees is increasing in the US. Graduates might want to research their desired career fields and see if it’s common for people in these roles to need a master’s or terminal degree.

Some students may wish to take a break in between undergrad and grad school, while others find it easier to go straight through. This choice will vary from student to student, depending on the energy they have to continue school as well as their financial ability to attend graduate school.

Graduate school will be a commitment of time, energy and money. So, it’s advisable that students feel confident that a graduate degree is necessary for the line of work they’d like to end up in before they apply or enroll.

4. Volunteering for a Cause

Volunteering could be a great way for graduates to gain some extra skills before applying for a full-time job. Doing volunteer work may help graduates polish some essential soft skills, like interpersonal communication, interacting with clients or service recipients, and time management.

Another potential benefit to volunteering is the ability to network and forge new connections outside of college. The people-to-people connections made while volunteering could lead to mentorship and job offers.

Volunteering is something graduates can do after college besides work, while still fleshing out their resume or skills.

New grads may want to volunteer at an institution or organization that syncs with their values or, perhaps, pursue opportunities in sectors of the economy where they’d like to work later on (i.e., at a hospital).

On top of all these potential plus sides, volunteering just feels good. It makes people feel happier. And, after all of the stress that accompanies finishing up college, volunteering afterward could be the perfect way to recharge.

5. Serving Abroad

Similar to the last option, volunteering abroad can be attractive to some graduates. It may help grads gain similar skills they’d learn volunteering here at home, while also giving them the opportunity to learn how to interact with people from different cultures, try to learn a new language, and see new perspectives on solving problems.

Though it can be beneficial to the volunteers, volunteering abroad isn’t always as ethical as it seems. And, not all volunteering opportunities always benefit the local community.

It could take research to find organizations that are doing ethically responsible work abroad. One key thing to look for is organizations that put the locals first and have them directly involved in the work.

6. Taking a Gap Year

According to the Gap Year Association , a gap year is “a semester or year of experiential learning, typically taken after high school and prior to career or post-secondary education, in order to deepen one’s practical, professional, and personal awareness.”

While a gap year is generally taken after high school or after college, one common purpose of the gap year is to take the time to learn more about oneself and the world at large—which can be beneficial after graduating from college and trying to figure out what to do next.

Not only might a gap year help grads build insights into what they’d like to do with their later careers, it may also help them home in on a greater purpose in life or build connections that could lead to future job opportunities.

Graduates might want to spend a gap year doing a variety of activities—including:

•   trying out seasonal jobs
•   volunteering
•   interning
•   teaching or tutoring
•   traveling

A gap year can be whatever the graduate thinks will be most beneficial for them.

7. Traveling Before Working

Going on a trip after graduation is a popular choice for graduates that can afford to travel after college. Traveling can be expensive, so graduates may want to budget in advance (if they want to have this experience post-graduation.

On top of just being really fun, travel can have beneficial impacts for an individual’s stress levels and mental health. Research from Cornell University published in 2014 suggests that the anticipation of planning a trip might have the potential to increase happiness.

Traveling after graduation is a convenient time to start ticking locations off that bucket list, because graduates won’t be held back by a limited vacation time. Going abroad before working can give students more time and flexibility to travel as much as they’d like (and can afford to!).

With proper research, graduates can find more affordable ways to travel—such as a multi-country rail pass, etc. It doesn’t have to be all luxury all the time. Budget travel is possible especially when making conscious decisions, like staying in hostels and using public transportation.

If graduates are determined to travel before working, they can accomplish this by saving money and budgeting well.

Navigating Post Graduation Decisions

Whether a recent grad opt to start their careers off right away or to pursue one of the above-mentioned things to do after college besides work, student loans are something that millions of university students have taken out.

After graduating (or if you’ve dropped below half-time enrollment or left school), the reality of paying back student loans sets in. The exact moment that grads will have to begin paying off their student loans will vary by the type of loan.

For federal loans, there are a couple of different times that repayment begins. Students who took out a Direct Subsidized, Direct Unsubsidized, or Federal Family Education Loan, will all have a six month grace period before they’re required to make payments. Students who took out a Perkins loan will have a nine month grace period.

When it comes to the PLUS loan, it depends on the type of student that’s taken one out. Undergraduates will be required to start repayment as soon as the loan is paid out. Graduate and professional students with PLUS loans will be on automatic deferment while they’re in school and up to six months after graduating.

Some graduates opt to refinance their student loans. What does that mean? Well, refinancing student loans is when a lender pays off the existing loan with another loan that has a new interest rate. Refinancing can potentially lower monthly loan repayments or reduce the amount spent on interest over the life of the loan.

Both US federal and private student loans can be refinanced, but when federal student loans are refinanced by a private lender, the borrower forfeits guaranteed federal benefits—including loan forgiveness, deferment and forbearance, and income-driven repayment options.

Refinancing student loans may reduce money paid to interest. For graduates who have secured well-paying jobs and have improved their credit score since taking out their student loan, refinancing could come with a competitive interest rate and different repayment terms.

Graduating from college means officially entering the realm of adulthood, but that transition can take many forms. There are various financial tips that recent graduates may opt to look into.

Thinking about refinancing your student loans? With SoFi, you could get prequalified in just two minutes.



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Hilton confirms top luxury property redemption rates going up by 25%, but could it spread? – The Points Guy


Hilton confirms top luxury property redemption rates going up by 25%, but could it spread? – The Points Guy


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Micro Wedding Is Sign of the Times

Micro weddings have become ultrachic in the time of coronavirus. These smaller weddings allow you and your future spouse to exchange your vows, enter into a legal relationship and get access to each other’s health insurance all while living through these socially-distanced times.

What Are Micro Weddings?

A micro wedding is generally a wedding with less than 50 guests. In the before times, micro weddings were often a cost-cutting measure as the most effective way to cut your budget is to cut your guest list.

When you cut your guest list, you’re cutting down on the amount of space you’ll need at the venue. Simultaneously, you’re cutting down on the costs of food, alcohol and favors.

During the time of Coronavirus, micro weddings are helpful to your health as well as your wallet. You may even want or be required to cut your guest list further than the normal standard of 50 guests.

Planning a Micro Wedding

When you’re planning a micro wedding the first thing you’ll want to start with is your guest list. You may only want your closest friends and family there for your big day. Or, in this time of pandemic, you may only want it to be the two of you and the officiant. In some states, you can even eliminate the officiant via a self-uniting marriage.

Whether you have a handful of guests or just the couple at your micro wedding, venues and vendors across the wedding industry have many ways to help you share your big day while saving money.

Get Creative with the Venue

Because you have a smaller guest list, your venue doesn’t need to be nearly as large. Your favorite art gallery might be renting out space, or you might be able to book a private room at your favorite restaurant. If a venue had a minimum guest count prior to 2020, those minimums have likely been reduced or eliminated altogether.

If you are absolutely set on having a larger wedding despite the pandemic, you could book your local park or another outdoor venue to make the event safer. Be sure to remind your guests that they still need to wear masks and observe the 6-foot rule even though the event will be taking place outside.

Newly weds get married as hot air balloons are released all around them on top of a mountain.
Getty Images

Destination Weddings

You may have a bit of pent up wanderlust, dreaming of a destination wedding. Destination weddings are usually micro weddings. Because you or your guests will have to pay for extra expenses like hotel rooms and travel costs, the number of people who can attend usually becomes inherently smaller.

There are certainly some Caribbean destinations that are allowing Americans to visit during the pandemic, and some of the resorts are offering great deals. But despite more and more Americans getting vaccinated, many people are still avoiding air travel. Be prepared for some guests to decline your invitation if air travel is involved.

Instead of air travel, you can either commit to a long road trip through locales where the infection rate is low, or pick a venue within convenient driving distance. Traveling in your car with other members of your bubble is a far safer way to get from point A to point B.

Remember that even if you’re fully vaccinated, there is still potential for you to spread the virus to your guests, your hosts and anyone else you may come into contact with. The more the virus spreads, the more likely it is to harm the unvaccinated, even if those unvaccinated people aren’t in your immediate circle.

Allowing the virus to spread like this also provides it with increased opportunities to mutate into vaccine-resistant variants, which could force us all into lockdown again until boosters for new strains are available.

Invest in Quality Videography

Maybe you never dreamt of having a micro wedding. You might even be upset that you can’t have a huge party with your family and friends.

One way to help soften the blow of having a micro wedding during the pandemic is to share your big day with quality videography. You can either livestream your ceremony or hire a videographer to document the celebration.

Because business has been slower and videography has new importance during the pandemic, some venues and videographers are offering discounts on these services.

Curbside Tastings

The mere fact that you’re feeding less people at your micro wedding means you can spend less on your wedding cake and any catering your micro wedding may require.

During the pandemic, some bakeries, restaurants and caterers are offering curbside tastings to ensure everyone’s safety.

Drive-By Wedding Visits

Maybe in normal times, your sister would have been your matron of honor, but she has a disabled child who is high-risk. Even though you are both vaccinated, her child is not. She can’t risk exposing herself to even asymptomatic cases of the virus as she could unknowingly pass them on to her child.

You still want her to be a part of your big day. If she lives within driving distance, you could schedule a drive-by visit prior to the micro wedding ceremony. Either she and hers could drive by your place, where you’d be on display in your gown or tux, or you could drive by her place, stepping just outside the car to show her how good you look while keeping a masked distance of well over six feet.

It’s not the same. It’s still incredibly sad that she can’t be there, and you might even want to consider postponing your wedding until she can attend. But if the show must go on, these drive-by visits can still provide you both with a special memory from your special day.

Include Remote Readings

If you’re having a Zoom micro wedding, even those who cannot attend can participate in your ceremony. In the case of your sister, she may perform a reading or conduct a prayer through the screen. You can customize your ceremony any way you see fit, using your creativity and the power of the internet to make your micro wedding all that much bigger.

Micro Wedding Ideas for a Smaller Guest List

When planning a micro wedding, you may find that you have a bit of a budget surplus because of these cut costs. Both the budget surplus and the fact that you’ll have far fewer guests at your wedding allow you to get creative and a little more personal with the finer details of micro wedding planning.

Hand sanitizer and face masks are set out for guests to use during a wedding reception.
Getty Images

Wedding Favors

The following are a few favor ideas you might consider for your micro wedding, depending on your budget and your wedding’s theme. The dollar signs are meant to show you the relative expense but the exact dollar amount of each is based on your own budget.

  • Masks. ($-$$) Masks can be custom-printed with names and wedding date, nodding to the extraordinary times we’re all living in while giving your guests a functional gift they’ll be able to use in their day-to-day lives. You may even want to make these favors available to guests upon arrival rather than at the end of the celebration. That way if anyone forgot to bring their mask, they’ll literally be covered.
  • Hand sanitizer. ($) You can find plenty of beautiful yet affordable options for custom-printed hand sanitizer right now. Instead of the “Germ-X” label, your label will include your names, the wedding date and perhaps some adorable quote about love. This is another good favor to make available to your guests upon arrival.
  • Fauci-approved smooches. ($) Want to DIY your micro wedding favors? One cute idea is to get a glass jar, fill it with Hershey Kisses, and affix a label that reads “Social Distance Kisses.”
  • Flip flops. ($-$$) If you plan on driving to the beach for your destination wedding, flip flops can make a great wedding favor. If guests forget about the sand and wear fancy shoes to your celebration, they’ll appreciate the option to switch to beach-friendly attire upon arrival. Because your guest count is small, you can ask each guest for their shoe size beforehand so everyone is accurately accounted for. You can also go the extra mile and order custom flip flops with your names and wedding date printed on them.
  • Custom luggage tags. ($$$) This option is a little more expensive, but if you find yourself with extra padding in your wedding budget you may decide they’re worth it. Luggage tags can serve as a token of hope that life will go back to normal soon and we won’t have to stress as heavily should we have to get on a plane and traipse through the airport.

Guest Book

Similarly, because micro weddings have so few people in attendance, you can use creative ideas for a non-traditional guest book. Your guest book can then be integrated in your day-to-day married life.

Here are some ideas that can be customized to any micro wedding budget:

  • Picture frame. ($-$$$) When you get your wedding pictures back from the photographer, there’s likely to be one photo that just blows you away. Before the wedding, purchase a frame where you can display that much-anticipated picture. Buy a frame with a removable mat. Then, you can have your guests sign the mat in lieu of a guestbook on your wedding day. Their well-wishes can be displayed in your home alongside your favorite wedding photo.
  • Ornaments. ($-$$$) Have you ever known someone who has a tradition of picking up a Christmas ornament on every vacation? Their tree then reminds them of all the journeys they’ve enjoyed. You can do a similar thing for your wedding day — especially if you have a small guest list. Instead of a guestbook, provide ornaments and paint pens coordinated with your wedding colors. Each guest will sign one. Every year, you can display your wedding-day memories on your tree, remembering those who were there with you.
  • Tiles or stepping stones. ($-$$$) Are you and your soon-to-be spouse remodeling? Or doing some landscaping work? If so, you can integrate your wedding day into your design plans. For instance, if you’re doing interior repairs and plan to lay tile, you can put out some tiles at your micro wedding in lieu of a guest book. Each guest would then sign one, and you could integrate your guest book into your home. If you’re doing outside work, you could have each guest sign a wet stepping stone, even adding their handprint if they want to. You can then integrate these stepping stones into your garden.

Stationary

Things are a lot more hopeful right now with somewhat improved vaccine distribution, but there are still so many unknowns. As you plan your micro wedding during uncertain times, you might want to familiarize yourself with some Corona-era additions to the wedding stationary world:

  • Change-the-date announcements. Change-the-date cards are now incredibly common for wedding postponements. Just like wedding invitations, these cards range from cute and witty all the way to incredibly formal. You can look for a template that matches the tone of your wedding day.
  • Virtual wedding invitations. Maybe you’re doing your part by giving the virus as few opportunities to mutate as possible. That’s why you’re doing a Zoom micro wedding with just the two of you plus your officiant. Paper invitations to your wedding are still a beautiful touch, but the most convenient way to invite your guests to livestream the event is through a virtual invitation. With virtual invitations, your guests will have access to a clickable link where they can participate in your ceremony live.
  • Elopement announcements. Whether you elope or simply choose not to announce to anyone but your micro wedding guests that you’re getting married, after-the-fact wedding announcements are a good way to include family and friends. Prior to the pandemic, these were commonly used for elopements, so you can find plenty of templates online even if they predate 2020. But you can also find pandemic-specific announcements whether you eloped or did, indeed, plan and have a few guests. Ideally, this announcement will contain a link to a wedding website where friends and family can view either pictures or video of your celebration after the fact.

It can be hard to break it to family or friends that they are either not invited or are uninvited to your wedding. But you are not the only one going through this situation. The silver lining is that because so many couples have faced the same circumstances, there are plenty of templates online and professionals who have worded the same sentiment for numerous clients. You don’t have to stress about the wording on your own.

Brynne Conroy is a contributor to The Penny Hoarder. She blogs at Femme Frugality.

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Source: thepennyhoarder.com

Paying taxes as a freelancer

The information provided on this website does not, and is not intended to, act as legal, financial or credit advice. See Lexington Law’s editorial disclosure for more information.

Paying taxes as a freelancer can be a bit more involved—and expensive—than paying taxes as a W-2 employee. When you’re a freelancer, you’re the boss. That’s great if you want some flexibility, but it also means you’re self-employed, so you are responsible for both the employer and employee parts of employment taxes.

When you work for someone else, your paycheck amount is your pay minus all appropriate deductions. That includes deductions for federal and state income taxes as well as Medicare and Social Security contributions.

But what you might not realize is that your employer covers part of the Medicare and Social Security amounts. As a self-employed individual, you have to pay the total amount yourself. That’s 12.4 percent for Social Security and 2.9 percent for Medicare—a total of 15.3 percent of your taxable earnings, not including federal and other income taxes.

When Do I Have to Start Paying Taxes as a Freelancer?

According to the Internal Revenue Service, if you earn $400 or more in a year via self-employment or contract work, you must claim the income and pay taxes on it. The threshold is even lower if you earn the money for church work. If you earn more than $108.28 as a church employee and the church employer doesn’t withhold and pay employment taxes, you must do so.

What Tax Forms Should I Know About?

Freelancers report their income to the IRS using a Form 1040, but they may need to include a variety of Schedule attachments, including:

  • Schedule A, which lists itemized deductions
  • Schedule C, which reports profits or losses from their freelancer business
  • Schedule SE, which calculates self-employment tax

These are only some of the forms that might be relevant to a freelancer filing federal taxes. Freelancers must also file a tax form for the state in which they live as well as with any local governments that require income tax payments.

If you’re planning to do your taxes on your own as a freelancer, it might be helpful to invest in DIY tax software. Look for options that cater specifically to home and business or self-employment situations. These software programs typically walk you through a series of questions designed to determine which forms you need to file and help you complete those forms correctly.

Six Tips for Doing Your Taxes as a Freelancer

As a freelancer, chances are you spend a lot of your time attending to clients and getting production work done. You may not have a lot of time for business organization tasks such as accounting. But a proactive approach to paying taxes as a freelancer can help you prepare to do your taxes and pay what can be a surprisingly big bill each year.

Here are six tips for handling taxes as a freelancer.

1. Keep Track of Your Income

Track your income so you know how much you may need to pay in taxes every year. Keeping track of your numbers also helps you understand whether your business is profitable and how you’re doing with income compared to past years.

You can track your income in a number of ways. Apps and software programs such as QuickBooks and Wave let you manage your freelance invoices and track income and expenses. Some also help you generate financial reports that might be helpful come tax time.

Alternatively, you can track your income in an Excel spreadsheet or even a notebook, as long as you’re consistent with writing everything down.

2. Set Money Aside in Advance

It’s tempting to count every dollar that comes in as money you can use. But it’s wiser to set money aside for taxes in advance. Depending on how much you earn as a freelancer, you could owe thousands in federal and state taxes by the end of the year, and if you didn’t plan ahead, you might not have the money to cover the tax bill.

That can lead to tax debt that comes with pretty stiff penalties and interest—and the potential for a tax lien if you can’t pay the bill.

3. Determine Your Business Structure

Make sure you know what your business structure is. Many freelancers operate as sole proprietorships. But you might be able to get a tax break if you operate as an LLC or a corporation. Talk to legal and tax professionals as you set up your business to find out about the pros and cons of each type of organization.

4. Know About Relevant Deductions

As a freelancer, you may be able to take certain federal tax deductions to save yourself some money. Tax deductions reduce how much of your income is considered taxable, which, in turn, reduces how much you owe in taxes. Here are a few common deductions that might be relevant to you as a freelancer.

Home Office

You can take the home office deduction if you’ve set aside a certain area of your home for use by the business. The IRS does have a couple of stipulations.

First, you have to regularly use the space for your business, and it can’t be something you use regularly for other purposes. For example, you can’t claim your dining room as a home office just because you sometimes work from that location.

Second, the home has to be your principal place of business, which means it’s where you do most business activity. You can’t claim the deduction if you normally work outside the home but sometimes answer work emails while you’re in the living room.

Equipment and Supplies

You can also deduct the cost of equipment and supplies that you buy for your business. That includes software purchases and relevant subscriptions, such as if you pay monthly for Microsoft 365 or annually for a domain name.

Make sure you have backup documentation for any business expenses you deduct. That means keeping receipts that show what you purchased so you can prove that the expenses were for business. You also have to be careful to keep business and personal expenses separate—art supplies for your child’s school project, for example, wouldn’t typically be considered valid business expenses.

Travel and Meals

Meals and travel expenses that are related to your business may be tax deductible. If you stay in a hotel, book a flight or incur other travel expenses that are necessary for the running of your business, you can claim them as a deduction. The same is true for 50 percent of the value of meals and beverages that you pay for as a necessity when doing business.

The IRS does set an “ordinary and necessary” rule here. For example, if you’re traveling to meet with a client and you need to eat lunch, that is likely to be considered necessary. But if you opt for a very lavish meal for no other purpose than to do so, it might not be allowed under the “ordinary” part of the rule.

Business Insurance

If you carry liability or similar insurance for your business, you can deduct it as a cost of doing business. You may also be able to deduct the cost of other insurance policies if they are necessary for your trade.

5. Estimate Your Taxes Quarterly

The IRS offers provisions for estimating your employment taxes on a quarterly basis. Self-employed individuals, including freelancers, can make these estimated tax payments, too. Paying as you go means you won’t owe a large sum every April, and if you overestimate, you may get a tax refund.

Quarterly payments are due in April, June, September and January. They can be mailed or made online. Depending on how much you earn, you may need to make quarterly estimated tax payments to avoid a penalty at the end of the year.

6. Consult a Tax Professional

As you can see just from the basic information and tips above, paying taxes as a freelancer can get complicated quickly. Consider talking to a tax professional to understand what all your obligations are and how best to reduce your tax burden using legal deductions. You might be missing a major deduction every year that could save you a lot of money.

And remember that as a freelancer, you’re running your own small business. That means paying attention to all your finances, including your credit report. If you ever want to take out a business loan or seek other funding to grow your business, you might need to rely on your good credit score.

Check your credit score, and if you find inaccurate negative information making an impact on your score, contact Lexington Law to find out how to get help disputing it.


Reviewed by Cynthia Thaxton, Lexington Law Firm Attorney. Written by Lexington Law.

Cynthia Thaxton has been with Lexington Law Firm since 2014. She attended The College of William and Mary in Williamsburg, Virginia where she graduated summa cum laude with a degree in International Relations and a minor in Arabic. Cynthia then attended law school at George Mason University School of Law, where she served as Senior Articles Editor of the George Mason Law Review and graduated cum laude. Cynthia is licensed to practice law in Utah and North Carolina.

Note: Articles have only been reviewed by the indicated attorney, not written by them. The information provided on this website does not, and is not intended to, act as legal, financial or credit advice; instead, it is for general informational purposes only. Use of, and access to, this website or any of the links or resources contained within the site do not create an attorney-client or fiduciary relationship between the reader, user, or browser and website owner, authors, reviewers, contributors, contributing firms, or their respective agents or employers.

Source: lexingtonlaw.com

How to Make a Retirement Budget So You Don’t Outlive Your Savings

You’ve spent decades in the workforce earning a living, your schedule dictated by the demands of the job. All the while, you’ve been steadily adding to your savings so that one day you could get to this point. Retirement.

Now, there’s no alarm to wake you up in the mornings and no boss to answer to. You can finally get around to crossing items off your bucket list — or simply have the opportunity to catch a midweek matinee movie.

The world is your oyster.

Life may feel more relaxed and carefree, but that doesn’t mean you no longer have financial responsibilities. In fact, now’s the time you might need to be even more diligent about budgeting your money.

Living on What You Have Saved

When you say goodbye to your 9-to-5, you also say goodbye to your regular paycheck. You’ll rely on Social Security benefits, the money in your retirement accounts and any additional income, like a pension, to cover your expenses.

Sticking to a budget is vital so your retirement savings last. That money you’ve squirreled away in your working years has to stretch for decades. Remember, life on a fixed income means there are no bonuses, overtime or promotions to increase your cash flow.

How Much Should You Have Saved?

If you’re already retired or nearing retirement age, hopefully you’ve done the math to determine whether you’ll have enough money to keep you afloat.

One popular rule of thumb is to have 25 times your average annual expenses saved up. But how much money you need in retirement depends on many factors, like your age, where you live and the type of retirement you want to enjoy.

If you want to retire at 60, rent a highrise in New York City and travel every couple of months, you’ll need considerably more money than a retiree who leaves the workforce at 70, lives in a paid-off home in rural North Dakota and just stays home and knits.

There are also a lot of unknowns in retirement — like what medical conditions you could develop and exactly how many years you’ll need your money to stretch.

That’s why it’s important to have robust retirement savings and be cognizant of your spending in your golden years.

How to Make the Most of Your Nest Egg

To make your savings last, you’ve got to be prudent about how much you withdraw each year.

“The gold standard has always been 4%, but new research has revealed a different number,” said Chuck Czajka, a certified estate planner and owner of Macro Money Concepts in Stuart, Florida.

He said withdrawing 3% a year instead gives you a 90% success rate to last through a 25-year retirement.

Keep in mind, once you’ve determined how much you can withdraw per year, you’ll want to divide that amount by 12 to come up with how much to withdraw each month. Czajka recommends withdrawing money from your retirement accounts on a monthly basis rather than taking out all you’d need for a whole year.

Meeting with a financial adviser can help you come up with a personalized plan to fit your individual situation.

“As people approach retirement, they should work with a retirement professional to determine their expected retirement income,” said Lisa Bamburg, a registered investment adviser and owner of Insurance Advantage in Jacksonville, Arkansas.

Two grandmothers dress in funky classes and brightly colored shirts.
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Factoring in Income Beyond Your Savings

In addition to the money you’ve saved in your 401(k), individual retirement account (IRA) or other investment accounts, a portion of your retirement income will come from Social Security benefits.

You can start collecting Social Security benefits as early as age 62, but you’ll receive less money per month than if you waited until full retirement age — 66 or 67, depending on when you were born.

If you delay claiming Social Security benefits past your full retirement age, you’ll receive even more each month. However, there’s no additional increase once you’ve reached age 70.

Pro Tip

This calculator from the Social Security Administration gives you a rough idea of your retirement benefits. This retirement estimator is more accurate but requires plugging in your personal info.

In addition to Social Security, you might have other sources of retirement income, like money from a pension plan or an annuity.

A report from the National Institute on Retirement Security found that many retirees don’t have a great diversity in their retirement income, though more income sources provide for a more secure retirement.

The report found less than 7% of older Americans have retirement income that’s made up of a combination of Social Security, a pension plan and a retirement contribution plan like a 401(k). About 40% rely on Social Security alone.

“Social Security benefits typically are not the equivalent of what it takes for most people to maintain their standard of living,” Bamburg said.

The Social Security Administration states its retirement benefits only replace about 40% of earnings for people with average wages — more for low-income workers and less for those in higher income brackets.

How to Create a Retirement Budget

Once you determine what your retirement income will be, it’s time to make your retirement budget.

If you’ve already been budgeting, you’re off to a great start, though your new budget will likely differ from that of your working days.

Take Stock of Your Essential Expenses

First you’ve got to get an overall look at your current spending. If you don’t already have a budget or track your spending, pull out the past several months of bank or credit card statements. Dig up old receipts if you tend to pay in cash.

Reviewing the past three months will help you find what you spend on average, but an even deeper dive — looking at the last six to 12 months — will give you a more accurate picture and will reveal things like your annual car insurance bill and holiday spending.

Group your spending into categories to get a good picture of where your money’s going. You’ll have fixed expenses, like your mortgage, where the cost stays the same each month. Other expenses, like groceries or utilities, will vary. For those, you should calculate your average monthly spend.

Account for Changes

After leaving the workforce, you’ll probably notice some differences in your spending. You’ll no longer have to pay for downtown parking near the office, dry cleaning your suits or pricey lunches with coworkers. Your monthly retirement contributions will be a thing of the past.

However, not everything will be budget cuts. You’ll have to account for new retirement expenses, like health care premiums your employer previously covered. If you’re 65, you can get health insurance through Medicare, but it’s likely you’ll have increased out-of-pocket medical costs as you age.

And of course, now that you have an influx in free time, you can pursue the things you’ve always wanted to do — which means more new expenses.

A group of retired women have fun.
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Make Room for Fun in Your Retirement Budget

A big part of retirement planning is determining what type of lifestyle you want to have when you’re no longer at work 40 hours a week.

Do you want to travel? Spend more time with your grandkids? Explore a new hobby? After you’ve covered your essential expenses, how you spend what’s left in your budget is totally up to you.

Don’t forget to include run-of-the-mill discretionary expenses, like cable, magazine subscriptions and dining out. It won’t all be cruise ships and Broadway plays.

If you’re married, be sure to share your vision for retirement with your partner, so you’re both on the same page about how you’ll spend your time and money.

Adjusting Expectations to Reality

As you create your monthly budget, you may discover you don’t have nearly as much money as you thought you’d have in retirement. That doesn’t mean you have to live out the rest of your life kicking yourself for not saving more. You have a few options to get by.

Take another look at your living expenses. Are there any ways you can cut costs? Slash your food spending with these tips to save money on groceries. Consider downsizing to a smaller home.

When it comes to your discretionary spending, look for ways to enjoy a more frugal retirement. Take advantage of senior discounts. Check out free activities at your local community center. Find ways to save money on traveling.

Although retirement means leaving your working days behind, you may find it necessary to pick up a side gig or part-time job to supplement your income. Seek out opportunities that match your interests so it doesn’t feel like work.

Don’t forget to enjoy this new stage of life. You worked hard — you deserve it.

Nicole Dow is a senior writer at The Penny Hoarder.

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Source: thepennyhoarder.com

Use Storytelling to Get Ahead at Work

Data, facts, and figures may convince people you have the right answer. But sometimes the real challenge is creating a connection that inspires someone to collaborate with or support you. Telling a great story at the right moment may be exactly the tool you need. Learn how to choose your moment and craft that winning story.

By

Rachel Cooke
May 3, 2021

Airbnb that I’ve always loved. When they first launched their home-renting service in 2008, they struggled to attract customers. In 2013, the co-founders decided what they needed was a story. They wanted to do more than win minds with logic, facts, and figures; they also wanted to win hearts. They needed prospective renters and property owners to feel something that would compel them to engage with the service.

Airbnb wanted to do more than win minds with logic, facts, and figures; they also wanted to win hearts.

The company shifted its focus from highlighting facts—like the practicality of renting rooms or homes instead of hotels—to telling stories about the power of belonging.

“Belong anywhere” became the official tagline of Airbnb and led to the creation of their new logo and brand story. Their focus now was on helping people to feel at home wherever they were. Customers began sharing their own stories of belonging. Suddenly, business was booming.

Telling great stories—investing in winning hearts as well as minds—isn’t just for brands. As this Inc. article claims, storytelling is one of the most critical business skills we all need today:

Stories help us understand the world, find our place in it, and even convince others to buy into our ideas and products. … Your stories make you relatable. They show people why something is important rather than telling them.

The two questions we all need to answer are:

  1. How do you choose the right moment for a story?
  2. How do you craft and deliver that story for impact? 

When do you tell a story?

As this Harvard Business Review piece explains:

The art of persuading by winning hearts is about connecting people emotionally to your idea or position.

Sometimes we do want to lead with rational logic and facts. Need to make a data-driven decision on which marketing campaign delivered the best results? Hard data is your friend. But in other moments when your objective is different, a story—a way to connect with someone’s emotions—may be just the thing.

Here, HBR continues, are some of the moments best suited to heart versus mind-winning:

  • Introducing a new idea and trying to pique interest
  • Gaining support for a decision that’s already been made
  • Raising the bar on performance or commitment
  • Leading a team that is struggling with discord or conflict
  • Aligning with creative colleagues, like those in design or marketing

The common thread pulling through these examples is the need for support, allyship, or buy-in. When you need someone to want to do the thing, that’s when a story comes in handy.

When you need someone to want to do the thing, that’s when a story comes in handy.

So I’d like you to take a look at your calendar. What’s upcoming for you? Do you have a pitch meeting with a client? Are you grabbing virtual coffee with a mentor? Will you need support or collaboration from a colleague in a different department?

Have your facts ready. But find a spot for telling a great story. And then follow these steps to craft one.

How do you tell a story?

1. Be a story collector

Telling great stories begins with having great stories on hand. 

When I’m talking to a new client, I have to prove myself. They want to see my track record of success, and I have the stats and metrics to show it. But I also need them to want to work with me. I’m not a vendor, I’m a partner, and I need to build trust and connection. 

So in early meetings, I lean into my arsenal of stories, mostly about my kids. I keep a collection of those on hand for a few reasons. 

First, kids are relatable. Many of my clients have their own. If not, they have nieces, nephews, cousins, and siblings, which helps my stories resonate.

Second, kid stories let me be authentic. I love my kids, and that shows through in my stories, which makes me seem more real.

Third, kid stories are a safe way for me to be vulnerable; to show moments in which I’ve screwed up and can laugh at myself.

Being able to laugh at myself is one thing, but I don’t want to try to impress a client by talking about a professional failure. That’s being a little too vulnerable. Instead, I’ll highlight a mistake that taught me a valuable lesson that ultimately made me better at what I do.

So now it’s your turn. Where will you start to dig for stories that show a softer side of you? Maybe it’s sports, or travel, or cars. Just pick a lane and start building your collection.

2. Establish a story structure

Once you have your source content, it’s time to start crafting the story.

The stories you tell will help others connect with you and want to be part of your success.

While there’s no one right way to tell a story, this  Forbes piece offers a simple outline of the key elements to focus on:

  • Clear moral or purpose. What’s the reason you’re telling this story, to this audience, at this time?
  • Personal connection. Does the story involve you, or someone you feel connected to?
  • Detailed characters and imagery. Does the story have enough visual description that we can see what you’re seeing?
  • Conflict, vulnerability, or achievement. Can we see what you’re learning or how you’re growing?

Play around with these elements, and then try to craft a narrative that brings them all to life. The stories you tell will help others connect with you and want to be part of your success.

3. Practice your story

A skilled storyteller makes it look incredibly easy and natural. But have you ever been caught in someone’s story during this moment?

“So, it was last Wednesday. No, actually, I think it was Thursday. No, wait! It was Wednesday because I remember it was raining. But hold on—first I have to tell you what happened on Monday or this won’t make sense.”

Listening to disjointed stories like these can be painful. Does it matter whether it was Wednesday or Thursday? Nope. Are we going to be able to make sense of—and, more importantly, connect with—a story where the teller has to repeatedly backtrack to fill in gaps? Probably not.

You want to practice and refine your stories so that you subject your listeners only to the details that matter and that move the narrative forward.

You want to practice and refine your stories so that you subject your listeners only to the details that matter and that move the narrative forward. Scrub the rest.

Tell your stories to people you trust and watch their reactions. Where do they laugh or gasp or nod? Which moments tend to make their eyes glaze over?

As Ira Glass, a master storyteller and host of the This American Life podcast, once famously said:

Good storytelling includes, among other things, having the courage to cut the crap. Not enough gets said about the importance of abandoning crap.

Pay attention and refine your technique as you go.

4. Connect your story to a purpose

A well-crafted and delivered story can be charming. Good stories create connection and inspire support. But all-charm-and-no-purpose will leave your audience confused and frustrated.

So once your story has reached its conclusion, be sure your point is abundantly clear so you don’t leave your audience thinking “So what?”

Your story’s conclusion has to deliver an insight that links to the moment.

When I tell a story about one of my daughters there is always some levity, something the audience can relate to. But ultimately, its conclusion has to deliver an insight that links to the moment. 

I tell one story about the headache-inducing outfits my older daughter used to wear to preschool every day. I describe the cornucopia of neons and zippers and feathers, and I see people visualizing the hilarious horror right along with me.

It always wins a laugh. But then I get to the point: It’s important, in business and in life, to find safe spaces in which to test and experiment and learn by trying. I want clients to know this is part of my mindset, that I encourage experimentation in safe spaces, and facilitate learning as we go. The story, when I make that connection clear, helps position me as a partner who also knows how to laugh.

So now it’s your turn. Go try this out, and when you see that first spark of connection, tell me the story of how it went.