Hawaii isn’t known as a cheap destination, but if you’re set on visiting the Aloha state, choosing the right island can make a big difference in the cost of your trip. If you’re looking to save on a trip to Hawaii, head to the island of Oahu.
Of the four main Hawaiian islands for tourism — Oahu, Maui, Kauai and the Big Island — Oahu is the cheapest Hawaiian island to visit by multiple metrics. Oahu has the lowest daily average hotel room rate of the islands and the lowest average daily spending per tourist, according to May 2024 data from the Hawai‘i Tourism Authority.
The cost of hotel rooms on Oahu
Though the average room rate in May 2024 across all of Hawaii was $342, Oahu hotel rooms average about 21% less, coming in at $272. That translates to about $70 per night less than the average.
In a breakdown of average daily room rates in May 2024 by island, Oahu shines.
One reason for Oahu’s lowest average room rate? The island also has the biggest supply. In fact, Oahu had more than double the number of hotel room nights than Maui, the next closest contender.
Even when broken down by hotel class, Oahu still has the most affordable room rates across every level, from economy and midscale to luxury options.
Midscale and economy rooms in Oahu cost $151 per night on average. That’s 30% less than the average price for the same class of room across the entire state. And if you have a penchant for the finer things in life, you’ll save on Oahu, too. In fact, you could save about $223 per night by choosing to vacation at a luxury hotel in Oahu versus Maui.
Oahu, like other islands, offers opportunities to book stays using hotel points and credit card rewards. For example, Oahu is the only island with a Hampton Inn & Suites outpost, a midscale brand where you can redeem Hilton Honors points — and avoid pesky resort fees on award bookings.
One of Oahu’s most famous luxury hotels, the historic Moana Surfrider, a Westin Resort & Spa, Waikiki Beach, can be booked using Marriott Bonvoy points. Those can be earned through Marriott credit cards as well as general travel credit cards that accrue points that transfer to Marriott.
On the other side of the island sits another famous property, Turtle Bay Resort. The luxury hotel will soon become a Marriott property when it’s rebranded as The Ritz-Carlton O‘ahu, Turtle Bay in August 2024.
The cost of activities on Oahu
More goes into a vacation budget than just a hotel. There’s food, tours, ground transportation and souvenirs. And once again, travelers arriving by air spend less per day on Oahu than any other island.
Across all trip expenditures (including lodging), Oahu is the best bargain in average daily spending per person in May 2024, according to a separate study by the Hawai’i Tourism Authority.
So why is spending on Oahu lower than on other islands? Not only are there more hotels, but also more restaurants and other types of businesses. According to the latest U.S. Census Bureau data, Honolulu County in Oahu had more than 21,000 businesses in 2020, while Maui County in Maui had fewer than 5,000. The increased competition lowers prices for consumers.
There’s also just a lot of free and cheap stuff to do on Oahu. Many of the top activities — including visiting the Pearl Harbor National Memorial, lounging on Waikiki Beach and hiking the Makapuʻu Point Lighthouse Trail — are free. It costs just $5 per person to enter Diamond Head State Monument (though it’s an additional $10 for parking).
And because of Honolulu’s robust bus network and walkability, it’s easy to get around Honolulu without a rental car. For places more difficult to get to, it’s possible to rent a car for just a day or rely on rideshare services like Uber or Lyft.
There are plenty of ways to save on a Hawaiian vacation. Start by finding affordable flights to Hawaii’s cheapest island, Oahu. The higher concentration of hotels and businesses means more affordable options.
Inside: These are the absolute best life hacks to saving money. This list of frugal living tips with a big impact with greatly improve your budget and finances.
There are many ways to save money. Today, we are going to focus on frugal living tips with a big impact.
Those money saving tips that will save you the most money in the shortest amount of time.
These are the big impact ones of the all of the frugal living tips out there.
If you are a frugal living beginner or desire to save money, this is what you need to start with.
For many households, you are busy and want to find the life hacks that will make the biggest impact in the shortest amount of time. Saving money is important to you. You have bigger and better aspirations in life.
For us personally, we choose to implement these frugal living tips with a big impact because we want to increase our savings percentage each and every year. We have financial independence – all thanks to the Money Bliss Steps to Financial Freedom.
You should check them out. You might be surprised how your perspective will change.
For now, we are going to stick with the frugal living tips that will save you the most money with the least amount of work. Does that sound like a good deal? You want real life hacks – not just clickbait titles. Right?
I thought so… Let’s dig in to the frugal living tips with a BIG impact!
How to Stay Frugal
The better question is why do you want to stay frugal? What are your personal reasons for being frugal?
In this particular case, we are talking about saving money.
In all honesty, staying frugal means that you are constantly wanting to save more money. You have bigger plans in your life and don’t want to be a slave to your money. You desire to make a plan for your money and that is of utmost importance for your household.
Learning how to stay frugal will turn into a frugal lifestyle. Then, for many, it will morph into a thrifty lifestyle.
It is easy to learn how to stay frugal when you have dreams and plans in your life.
In order to fund those dreams, you need to stop living paycheck to paycheck and begin to give purpose to how you spend and save your money.
If you don’t believe me, then check out this case on why being frugal leads to a millionaire’s success story.
Top 10 Frugal Living Tips with a Big Impact
Like it was stated before, there are hundreds of frugal living tips that you can implement right now to start saving money.
However, for too many people, the list is too long and they want to see immediate progress right now.
These are the TOP 10 frugal living tips that will change how you think about money, spend money, and ultimately save money.
If you want to enjoy life and money (and maybe one day reach financial freedom), this is where you want to start. With this list. Right now. Make these easy lifestyle changes and begin a new relationship with money.
1. Wait 24 Hours to Buy
This is the simplest tip to help improve your money management.
Wait at least 24 hours before you buy something.
During that time, you will figure out whether or not you actually want or need the item. If you still want it, then you can purchase it. However, many times you realize that you didn’t need it or it wasn’t exactly what you wanted. So, you end up saving some money.
Obviously, the wait 24-hour rule applies to anything outside the realms of housing, food, gas, and utilities.
One of the smallest wins is to save $50 a week using this rule because over a year, you will save $2600!
Say what!?!?
That is a big chunk of cash that you probably even didn’t realize you were spending. Now, you are one step closer to reaching financial independence.
2. Make a Plan for Your Money
How do you want to spend your money? Have you ever considered where you want to spend your money before you spend it? Don’t worry if you said no. Most people don’t make a plan for their money.
What does it look like to make a plan for your money?
Before you are paid, you decide how and where you plan to save and spend your money. Did you catch the first part? It is the biggest hint I have for you – decide where you plan to save money first. Then second, how you plan to spend the rest.
Many people call this a budget.
The key is knowing where your priorities lie before putting in all of your variable expenses. You must plan to reach your money goals first. Then, figure out how to live on the rest.
That is called making a plan for your money.
3. Say No to Debt
There is nothing frugal about taking out debt.
Around here, we call debt – the cash flow killer.
It is extremely hard to move forward when debt (specifically the debt payment) is holding you back. It is like taking two steps forward only to be taken back a step now and three steps back in the future.
How to get around not going into debt?
You save up for big purchases, and then, you can pay in cash.
Side note… For this discussion, we are not talking about mortgage debt. In many cases, mortgage debt can be considered a “better” debt because purchasing a home may have a lower mortgage payment than current rents in the area.
4. Understand Where You want to Spend Money
Spending money isn’t a bad thing… IF you are spending money in areas that are important to you.
However, too many times we are blindly spending money and not realizing where our money went at the end of the month.
Is that what you set off to do?
Probably not, but for now, you feel like you are a slave to your bills and not being able to enjoy the fruits of your labor. The time is now to figure out where your priorities lie and the area you want to spend money.
To make this process simpler, it is easier to decide where you don’t want to spend money. For us, a no spend challenge helped us visually see where we wanted to spend money and where we actually spent money. The experience was eye-opening and very valuable.
Now, we know where we want to spend money and that has made a big impact for our finances. What could it do for you?
Just to Note… There are times where you want to spend money isn’t possible because you are barely managing to pay your basic bills. This frugal living tips with a big impact is to help you understand where your goals to spend money lie and what is unnecessary spending.
5. Know Your Reason to Live Frugally
Let’s be honest… living frugally doesn’t come with a lot of materialistic perks. You are sacrificing spending money in order to save money. It is hard to watch people mismanage their money only to get bailed out again and again.
To stick with frugal living and a desire to implement saving money hacks, then you must know your reason to live frugally.
Your answer will vary from everyone else’s answer. That is okay because we all have different money goals.
Have you thought about your reason for living frugally?
Our reason to live frugally is to travel. We don’t want to wait until we retire and the kids are grown to travel. We want to travel now and explore as much as possible while we can. Over time, that has morphed into our desire to reach financial freedom and not be a slave to our jobs. (Don’t worry… I love what I do here and don’t plan to change anything.)
What is your reason to live frugally?
6. Keep your Grocery Budget Trim
This is one of the biggest frugal living areas that will have the most immense impact – how you eat food.
Food is one of the basic expenses that you need to survive. However, how you choose to fuel your body will make a difference in your budget as well as how you choose to shop.
By becoming cognizant of grocery spending, you will learn to save money on groceries, which will make a huge impact over time.
Let’s take this example… You can save $200 a month on your grocery spending. That equates to $2,400 in one year. Almost $5000 in two years. At the end of 10 years, you saved $24,000!!
That is no small chunk of change. While spending an extra $200 a month doesn’t seem like much, over time it adds up to a greater amount. That is when you realize that implementing grocery money saving tips will have a bigger impact than you realized.
Overcoming your grocery budget is a learned trait; here are the best items on your grocery budget list.
7. DIY First
I’ll be the first to admit that making something yourself can be overwhelming when you don’t have a clue where to start.
Thankfully, there are plenty of tutorials to get you started with a simple Google search.
Frugal living tips with a big impact is knowing how to do it yourself first.
Here is one that has saved us over $10,000 in the past 10 years… I learned how to cut everyone’s hair in the house. The reason we started cutting our hair was because we were looking for ways to get out of debt faster.
The worst case scenario with DIY… if it doesn’t work out how you expected then you can always call for professional help. The best case is you just saved yourself a lot of money.
Especially if you own a home, you must learn to DIY first. Many of the skills that you would hire a handyman to do used to be taught by the generation before. Too bad that this isn’t still the case. However, thanks to YouTube, you have plenty of opportunities to learn how to do it yourself.
Another option is to trade services with a friend.
8. Find a Cheaper Alternative
One of the traits of a frugal person is searching for cheaper alternatives. This is a simple money saving hack.
This could be as simple as searching for a better price online and price matching. Or even waiting for a sale or clearance.
Finding cheaper alternatives is a great way to save money. Some options include:
Buying in bulk
Buying generic
Buy less items
Finding items that have dual purposes over single use. (like instant pot / air fryer combo)
You need to open up your eyes to finding cheaper versions or figuring out how to buy what you need at a lower price.
Another alternative is to buy used. This especially holds true for new cars since they lose most of their value within the first 5 years.
Just to Note: A cheaper alternative doesn’t always mean the quality is the same. A thrifty person would want an item that will last longer than the knockoffs.
9. Choose FREE First
Oh my! This hack is one of the best frugal living tips with a big impact.
Why choose FREE first?
Then, you don’t have to spend your hard-earned income on something that is used for a short period of time.
This could be for everything you spend money on.
Find free things to do with no money.
Source items you need in Buy Nothing Facebook groups or Nextdoor.
Choose the library over buying the actual books.
Ultimately, you’re looking at how to get things and do things for free first. This doesn’t make you cheap at all. It makes you frugal. Plus it gives you the chance to spend that money on something else that aligns with your reason to be frugal.
10. Think Long Term
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Too many times, we are so focused on living paycheck to paycheck that we don’t stop to make plans on what we want the next year to be like. Or the next 3 years? 5 years? Even 20 years away?
If you are ready to make a big impact in your life today, start by dreaming and thinking long term financial goals for all of your spending and saving.
Frugal Family Tips
Really quick, we are going to spend a little time discussing frugal family tips for your household.
Why?
Well, kids are expensive and it can be hard not to want the best for your family. And it can be easy to spend money to make that happen.
But first, why should you implement frugal family tips for your household?
Hint: so you can raise financially savvy children who make smart and wise decisions with money as adults. More is caught than today.
Kids learn by example.
So, why not be the best example for your kids with money?
The above list of the top frugal living tips with a big impact is solid money management tips that will build a solid foundation of success.
There isn’t a specific list of frugal family tips. It is taking the above life hacks and talking with your family about why you are making these money decisions. Have conversations about spending money and saving money.
In the long term, teaching frugal family tips will open the door to many opportunities.
That right there, my dear friend, is the gift that will keep on giving.
Tips for Living with Very Little Money
Typically, there are two types of people who are living with very little money and they are on opposite ends of the spectrum.
First of all, don’t compare yourself to others. That slippery slope of comparison is a trap; one which will cause you great harm, stress, and financial strain.
You are looking for tips for living with very little money.
If you are struggling living paycheck to paycheck, then you are in a tough spot right now. Remember, I said right now. You can always change your financial situation. It starts with your money mindset first.
The other person is that extremely frugal person who is consciously choosing to live with very little money. That means you are prioritizing the saving percentage you save each month.
In addition to all of the tips above, you must become EXTREMELY cognizant of your plans to spend money.
You know how and where you plan to spend every single penny that you earn before the money is in your hands.
Consistently, you are finding ways to spend less money and save more money.
A no spend challenge becomes a normal way of living for you. The key is you can’t hold a grudge on your choice of extreme frugality.
Just remember, you can lead a fabulous life with very little money. Money won’t buy your happiness. Finding contentment with your life is the target.
Which Frugal Living Tips with a Big Impact will You Try First?
Okay, so in all honesty, most of these frugal living tips are great money management tips that will completely turn your life in a completely different direction.
You are here because you want to save money with simple life hacks.
This list of the top 10 frugal living tips with a big impact will flip your life upside down for the better.
You need to make a big impact on your finances. Now, you need to embrace these saving money tips and have them become natural habits.
Regardless of income, you are capable of saving your first $10k, then saving $100,000 and ultimately being a millionaire. All it takes is thinking long-term and deciding what is most important for your family and your household.
You hold the keys to a brighter financial future. Grab them and begin to open up doors to more opportunities.
In case you want more frugality in your household, in this post, we outline over 175 + of the best frugal living tips, which are great once you master the money saving tips that will have a longer lasting impact.
For now, what frugal living tips with a big impact will you try first? Comment below and let us know!
You can become the next millionaire with no money!
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.
Hello! Today, I have a great article to share about how to become an Amazon Vine Reviewer from a reader, Nicole Nicolet. She is a member of the Amazon Vine program and she has received over 100 free products from Amazon and has saved over $4,500 in the last 6 months. If you want to…
Hello! Today, I have a great article to share about how to become an Amazon Vine Reviewerfrom a reader, Nicole Nicolet. She is a member of the Amazon Vine program and she has received over 100 free products from Amazon and has saved over $4,500 in the last 6 months. If you want to learn how to get free products from Amazon, this is a very helpful read!
Did you know that you can get hundreds of free products, worth thousands of dollars every year from the Amazon Vine Program?
It’s surprisingly easy to join, and once you are a member you have access to thousands of everyday items that you can use, gift to friends and family, and even make money from.
Though there are certain rules that you will need to follow to maintain good standing with the program, it is worth all the effort.
So, if you’re looking to save, and maybe even make a little bit of money, the Amazon Vine Program may be a good fit for you.
How To Become An Amazon Vine Reviewer
Below is what you need to know if you want to become an Amazon Vine Reviewer.
Recommended reading: 7 Ways To Get Paid For Amazon Reviews
Here’s a screenshot from Amazon showing how much free stuff I’ve received so far.
How I’ve saved thousands with Amazon Vine
I have been a member of the Amazon Vine Program since November 2023. During this time I have received over 100 products from clothing to home decor, to health and beauty products, and even some electronics.
Just the other day I got a pretty awesome projector that looks and works amazingly! And, I also got a pretty sick electric guitar too!
Because the Vine program allows you to request 3-8 items per day, I have been able to find gifts for friends and family, start new hobbies (like making sourdough bread!), and even find nearly all of the decor I need for my wedding.
Over the past 6 months, the total value of all the items I have requested comes out to a little over $4500.
So, as you can see how easy it is to save money as a Vine Voice.
What is Amazon Vine?
Amazon Vine is a program that Amazon offers to its stores and businesses to help them get product reviews for their products sooner than they would have otherwise.
This helps businesses make more sales since most customers read reviews before they decide to buy.
When a business or store decides to put some of its products into the Vine program, Vine Voices (like myself) will test out the product and leave an honest review.
As a Vine Voice, you get these products for free. However, there are some legal requirements that may affect your taxes, depending on your tax situation. More on this in a moment.
So, who does Amazon choose to become Vine reviewers?
The Amazon Vine program is an exclusive program where they will hand-select people to join the program. These people will need to have written consistent ‘helpful’ and insightful reviews from their previous Amazon purchases.
You may be eligible to be an Amazon Vine Voice Reviewer if:
You have written consistent reviews of your previous Amazon purchases
Your reviews are considered ‘helpful’ to other customers
Your reviews are honest and trustworthy
https://www.amazon.com/vine/about
How do you join Amazon Vine?
If you are eligible to join the program and Amazon has decided they want you to become a Vine Voice, you will receive an exclusive invitation by email.
Once you join the Amazon Vine program, you will have access to the Vine Voice dashboard where you will find thousands of products from houseware to beauty products and more.
All Vine reviewers start in the Silver member status and have the ability to upgrade to Gold member status (that’s where I’m at now!)
Tips to increase the likelihood of receiving a Vine Voice invitation:
Go back into your previous purchases and write a thorough review
Include pictures or videos in reviews of your previous purchases
Provide helpful insight into your reviews (include both pros and cons)
Include tips on how you use the product in your reviews
When Amazon has decided they would like you to join their Vine review program, they will send you an invite through your email. So, keep an eye out for whichever email account you have connected to Amazon.
Check your spam folder if you think you missed the invitation.
Here’s a screenshot of some of my reviews.
How to become a Vine Voice (how to become an Amazon Vine Reviewer)
You can become a Vine Voice once Amazon has decided you provide trustworthy reviews. This is important because they only want members who provide honest, relevant, and insightful feedback.
Anyone is eligible to join the program as long as they have left enough reviews that other customers have rated as ‘helpful’.
So, unfortunately, there is no exact or magic number that I can give you as this varies by the quality and quantity of your reviews, as well as the number of visits those products may get.
However, when I was invited, I had just caught up on about a half dozen reviews and received the invite in my inbox about 2-3 weeks later.
Does it cost anything to be a Vine Voice?
No, there is no membership fee, or one-time fee to join the program. However… it is important that you know that taxes are involved in the process.
While you are never charged for the products themselves, Amazon is required by law to account for the value of products as ‘self-employed’ income. If you have requested products for a total amount over $600, Amazon is required to send you a 1099 form.
You can check in your Vine account dashboard to keep track of your total running amount.
How much are you taxed for the products?
Each product will have an ‘estimated tax value’ that Amazon has to report. This value is totaled up on your 1099 tax form.
However, as for what percentage you are taxed all depends on your specific financial situation. The percentage you are taxed will vary by state and your tax income bracket.
One tip though, to avoid higher taxes, is to request more health-related items that have no estimated tax value. Or, otherwise try to keep your total value down so that you pay less in taxes.
Unfortunately, this can be difficult when you become a Gold Member as the items can be any priced value and are usually better quality. Plus, some products are hard to turn down. Like that projector screen I mentioned earlier.
Here are some of the items I’ve received for free through Amazon Vine.
What are some of the best products you’ve received from Amazon Vine?
Well, for one, a projector that works great for indoor and outdoor entertainment.
But, here’s a list of some other really neat products I’ve gotten from Vine.
3 shade lamp ($90 value)
Shoe rack bench with a cushion ($60 value)
That cool projector I keep talking about ($160 value)
Gorgeous blue electric guitar ($140 value)
Camping gear ($100 +)
Wedding decor and gear ($500 +)
Leather car seat covers ($173 value)
Wing shaped book ends ($40 value) (P.S. these look super cool!)
Brand new silverware
21-piece knifeset ($199 value)
Stationary ($100 +)
Gifts for friends and family ($400 +)
Clothing ($100 +)
Automated pet feeder ($60) (My cat’s an absolute unit, so he eats through his food quickly)
Rainfall showerhead ($55 value)
Christmas projector lights ($60 value)
I could keep going with this list, and I will keep adding to this list as long as I am still a member of Vine. But, needless to say, there are some great finds on here that will save you money on many household items, gifts, and more.
And, if you’re a parent, I will mention that I have seen tons of baby items and things for kids. So, if you’re looking to save money on your kids, becoming a Vine member can be a great way to save some money.
When I searched for “baby”, almost 2,000 items popped up.
How to get free products from Amazon Vine
Requesting free products through the Vine program is both fun and easy. You can select from a list of thousands of products in just about any category.
After becoming a member, you can follow these steps to request products.
Log in to your Vine account, navigate to your dashboard and locate the “Recommended for You”, “Available for all”, and “Additional Items” tabs.
The ‘recommended for you’ items are based on your previous Vine searches. And, if I’m not mistaken, may also be partially based on your regular Amazon purchases and searches.
There was one time that I looked for, and eventually purchased a specific lamp on Amazon. And, not one week later that same exact product showed up on Vine. You win some you lose some, right?
You can also search for a specific product using the search bar. But, if you don’t find what you’re looking for, try broadening your search or using a different but related keyword.
Sometimes a product is ranked under different keywords than you might expect.
Once you have found the item you want, you can look into further detail by clicking through to that link, or by reading the details when selecting the “see details” button. Then, once the product pops up, hit the “request product” button.
Now you just wait for the product to ship to you!
You will find the shipping information in your item orders on your Amazon account or Amazon App. There is no special place for just for shipping information of Vine products. It’s all on your regular Amazon account.
Do you get paid with Amazon Vine?
You do not get paid in cash as a Vine Voice. You do, however, receive free products that you can later sell if you choose.
There are some restrictions as to when you can get rid of the products you have requested.
Amazon requires you to keep the products you request for at least 6 months before you get rid of the product you’ve requested. This means you are not supposed to gift, give away, sell or otherwise toss the product for 6 months.
How Amazon can track this, I don’t know. How strictly do they monitor this, I don’t know.
But, what I do know is that you definitely shouldn’t sell any of your Vine products online within the minimum time frame if you want to remain in good standing as a member of the program.
What countries have this program?
The Amazon Vine program is available in the US and a few other countries.
Unfortunately, the products that are available are only the products that ship within that country or may be stored in local distribution centers.
Some larger items may also only be shipped very locally to where they are stored.
So, if you live outside the U.S. you may still be able to join the program but may be much more limited on what products you have access to request.
Process of reviewing Amazon Vine products
In your Amazon Vine dashboard, you will be able to find products recommended specifically to you, products for all Vine reviewers, and any other product that is available to request for all members.
It’s best to check back frequently for any items you want as this changes daily, and sometimes hourly.
There have been times when I’ve found an item I wanted several weeks or even a month or two later than when I first checked. Give it time and most likely what you want will become available.
Once you find the items you want, go ahead and request the products. Most products will be shipped to you in a couple of days, or within a month.
Being an Amazon Prime member does not change how quickly something is shipped to you though. But, there are tons of other great benefits as a Prime Member other than free 2-day shipping.
Step-by-step process to review Vine products:
Request the product you want
Test the product within a thorough, but timely period
Write a complete and honest review of the product (include pictures, video, and/or other information you feel is ample for that product). Real reviews are great, they aren’t just looking for positive reviews
Submit the review and wait for it to be approved (usually a few days to a week)
Update the review if you feel this is necessary
If you struggle to find the products you want to review, try using different keywords. Rather than looking up “bridal shower gifts” try just looking up “bridal” or “wedding”.
This will greatly broaden your search as some items may be ranked under a certain keyword, but not another.
If this does not work, try also using another term for the product.
For example, when I type in ‘tumbler’, I see an insulated thermos, and I also see some stickers that go on thermoses. When I type in ‘cup’ I see thermoses again.
Contrary, when I type in ‘bookends’ with no space, I find a dozen products. But when I type in ‘book ends’ with a space, I only get one product. This is because of how businesses add their products to Amazon when using keywords.
What is required to maintain Amazon Vine membership?
To be in good standing with the Amazon Vine program you will need to write reviews in a timely manner. For some products, a thorough review may require several weeks of testing, whereas other products can be reviewed almost right away.
Some products I really try and include an image of. Things like electronics, clothing, and other things that are difficult to see in scale from a product image alone. Real life images work best for buyers to make an informed decision.
As a Silver Status Member, you will be able to request up to 3 items per day and up to $100 value each. You will need to review at least 80 items, and 90% of your items by or before the end of your evaluation period. After your evaluation period, you can get upgraded into the Gold Status.
As a Gold Status Member, you will be able to request up to 8 items per day with any price value. The review requirements are the same with at least 90% of 80 products reviewed by the end of the evaluation period.
You will need to have at least 60% of your products reviewed at any time to stay in good standing. However, this will take some time while you are getting enough products to review, so don’t worry too much about this in the beginning.
If you do not keep up with your reviews, your account may be placed under review (no pun intended here). I had this happen to me at one point around last Christmas when I became too busy for a while to write any reviews.
But, I got caught back up and was able to return to good standing status as a member. And, I was still able to request items during this period, just in case you were wondering.
I have noticed there is some confusion among many Vine Voice members as to when you get upgraded to Gold Status. At one point I thought if I reached the minimum requirement of 80 products with 90% of reviews I would be upgraded.
But, you will not be upgraded until the end of your evaluation period, unless you are somehow an exception to this rule.
I recommend catching up on your reviews about once a week. Or, more often if you would like. This helps you to avoid getting behind.
How to make money from Amazon Vine
According to the rules of the program, you cannot sell, gift, or otherwise give away your Vine products for a 6-month period. After this period, you may do with the items as you wish.
At this point, you may turn or flip the products and sell them for profit. However, if you decide to make some extra cash with this, please do not sell a product for more than it is valued on Amazon.
This is wrong, deceitful, and may cause bad blood among those involved. So, it is best to sell the items for less than the original value.
You may also use any products you get in your business if you wish. They are still just products, so if you use a Vine product in your business to make money, then more power to you.
Example: One item I had requested was an off-brand KitchenAid mixer attachment. I could easily use this to make money from baking.
When can you sell the products you get?
There is a required 6-month waiting period before you get rid of any products by any means. It is best to wait this period before you decide to gift or sell any product.
If you decide to gift or sell any products sooner than this period, you can and may be removed from the program. So, if you are concerned about this, make sure to date the products you receive so you don’t forget.
You can also look in your account to check on those dates.
It’s best to not sell any products for more than the taxable value. You also should not market any products as any brand other than what they actually are.
So, when I mentioned I got an off-brand KitchenAid attachment, it would be wrong and deceitful for me to market it as an ‘official’ brand attachment.
Can you gift the products you get?
Yes. After the 6-month waiting period required by Amazon. If gifting an item is necessary for a thorough review, however, and the product is within your family, in most cases this should not be too much of an issue.
But, this does not guarantee that you aren’t breaking the program rules. So, do this at your own risk.
Can you be both an Amazon Affiliate and a Vine Voice?
As a blogger, I am also a member of the Amazon Affiliate program, and I am also a member of the Amazon Voice program.
As of June 2024, I am not aware of or have been informed of any restrictions that an Amazon Affiliate can’t also be a Vine Voice. Nor, have I found any information that states otherwise.
So, I say the more the merrier!
Final thoughts on how to become an Amazon Vine Reviewer
The Amazon Vine program is a great program for companies, customers, and Vine Voices alike. It’s actually a fairly easy program to join and can be a great way to save and even make money.
While there are some important requirements you’ll have to follow as a Vine Voice, the benefits far outweigh any negatives.
So, if you’re looking to save some money this year, start reviewing your previous Amazon purchases to increase your chances of becoming a Vine Reviewer, and keep an eye out for that email!
Did you know that there was a way to get free stuff from Amazon?
Author bio:
Hey there! My name is Nicole Nicolet and I am a blogger at Let’s Make Life Great. When I first learned that blogging could make you money full-time I was skeptical, but decided to give it a try as a way to make passive income on the side. So, after taking Michelle’s free blogging course, I jumped in!
I started writing and researching different ways to save money, make money, and budget better. I also tried different side hustles like making digital printables, online courses, and more. Even though I’m still learning and growing, I enjoy writing posts about my blogging journey to help me document the tricks and tips I’ve learned since I started.
I aim to help my audience make more money, grow a business, and reach their financial goals through the content I create. And I even have a free resource page on my site, because who doesn’t love free stuff?
So, one day, when I stumbled upon the Amazon Vine program I decided to try it and see if I was eligible. And, sure enough, I was.
I’m inspired to share my journey with you in hopes that you too can learn different ways to save thousands each year as an Amazon Vine Member.
Making Sense of Cents Note: I hope you enjoyed this article on how to become an Amazon Vine Reviewer. This invitation-only program looks for high-quality reviews to help improve a product’s visitibility. This can be a great way to get free stuff from Amazon and save some money! I’ve read that there are around 5,000 to 10,000 Amazon Vine reviewers currently, and it looks like they are still accepting many new product reviewers.
This post may contain affiliate links, which helps us to continue providing relevant content and we receive a small commission at no cost to you. As an Amazon Associate, I earn from qualifying purchases. Please read the full disclosure here.
The thrill of Christmas is right around the corner.
This is the year you made a fresh decision to start living by a budget. You have been diligent in tracking your spending and set limits designed to help them save more and spend less.
You are desperate for a debt free Christmas because you can’t afford anything more.
I like to shop for Christmas throughout the year. But, not every year can I find steeply discounted gifts for everyone on my list. That is when I have to get serious and start using my Christmas budget worksheet.
However, a Christmas budget template will keep you on track and enjoying a merry holiday season.
You can get fancy and put your Christmas list in Excel spreadsheet or google sheets. Or you can print off a copy and write the old-fashion way. Completely personal preference and either one will get the job done.
This year, you are more determined than ever to make sure you stick to your Christmas budget and be debt free for the holidays.
And that starts with a Christmas budget template.
Why Use a Christmas Budget Template?
Just like with any advantages of budgeting, you want to make a plan for your money.
Then, you won’t be caught overspending and you can avoid the debt hangover in January.
If you want to keep your money goals, then you need to diligent in each of the holiday buying decisions you make.
Did you know most millionaires use a budget?
Now, you have a choice. Do you want a debt free Christmas by using some simple Christmas budget worksheet?
Before we drive into all of the fun and cute Christmas budget templates, you need to learn the critical areas to avoid and make sure you don’t blow your holiday budget.
Christmas Budget Categories
Christmas is a time of celebration, giving, and joy.
However, there are many expenses that come with the holiday season.
The most obvious expense to think about is probably gifts for friends and family members.
If you’re planning on buying a present for someone who’s hard to buy for, make sure they know what it is before purchasing it!
Another important factor in your Christmas budget plan should be your own personal spending habits – do not put all of your money into one category!
~ HUGE TIP ~ List your Christmas spending priorities, with #1 being the HIGHEST priority probably gifts.
Gifts
Christmas gifts are a lot more expensive this year, so you’ll want to be sure to have an idea of what people may need.
Make a list early on of who you’re buying for and try not to get carried away with the amount of money you spend.
You can also give homemade presents that are cheaper and more meaningful than store-bought ones.
Holiday Fun & Entertainment
Holiday fun and entertainment should be budgeted for.
Christmas plays and concerts, donuts and hot chocolate on Christmas Eve, visiting Santa are all things that can be budgeted to help make the holidays more enjoyable.
These activities tend to make you go over budget at Christmas because it is too hard to say no. So, set aside money for holiday fun and entertainment.
Holiday Food
Some of the budget categories to consider if you’re planning a Christmas dinner include appetizers, holiday food, and dessert.
And don’t forget the #1 priority of the gingerbread house!
Everyone entertains and hosts with their own style. Just make sure to budget for holiday food.
Planning for Holiday Decorations
If you want to get a head start on your holiday decorations, try buying them the week after Christmas. This is the best time to buy because you can find great deals and there are fewer out-of-stock items in stores.
Here are some tips for getting more affordable holiday decorations:
Make your own decorations!
Swap ornaments with friends!
Buy pre-made decorations from Amazon
Shop at thrift shops
Put up three strands of lights instead of one
Look through clearance racks
Ask in Buy Nothing groups
Planning to Send Christmas Cards
The cost of sending Christmas cards is getting more and more expensive. Most families plan to spend over $100 on this alone.
Here are ideas to cut down on the cost:
Take family pictures yourself for no cost
Trim your Christmas card list
Find a cheaper place to have Christmas cards made
Save on prints and stamps if you’re planning to email pictures.
Budgeting for Hosting Christmas Party
Hosting may include drinks, appetizers, main courses, desserts, prizes for games, party favors, and gifts.
Pitching in by bringing a side dish, dessert, or their favorite beverage. All are great ideas to help lower your cost.
Tips on saving when going to a party
While we all love to show off, you can easily find ways to save money.
Pick a dish to share that is budget-friendly and still a hit (beans based dishes and casseroles are cheap to make).
For gifts, look at re-gifting before buying new ones. No one else will know that you never used that gift before.
Budgeting for Holiday Travel
Planning ahead for holiday travel can help you avoid unnecessary costs.
Make sure to set aside enough money for lodging, car rentals, and airfare so that your budget will be on track all season long.
If you cannot afford to travel this year, then don’t stretch yourself.
Other Christmas expenses
Holiday expenses can add up, so it’s important to budget for them. Here are six tips on how to have a more adorable holiday season:
– Field trips: going out in the city with family and friends after dark is one of the most fun parts of Christmas!
– Gift wrapping: this is an investment that will pay off in the long run. It’ll give you time to be creative, and you’ll end up with beautiful gifts at the end of it!
– Photos with Santa: maybe not everyone has a photo session during Christmas, but if someone does need a quick photo op, snapping a picture outside somewhere might be worth it.
– Keep Track of Previous Year’s Expenses: Your family is likely to have holiday expenses that vary. So, write them down to include in next year’s Christmas budget.
How To Not Blow Your Budget This Christmas
Maybe you are weary of actually making a Christmas budget because you have struggled with your budgeting process before. Don’t worry, you are completely normal and will get the hang of how to budget.
More often than not, new budget-conscious families create ambitious financial plans with lofty goals of paying off debt. They split their family income up into budgeting categories and were doing just great. That is until the holiday season came along.
That is when you realized you weren’t as diligent as you thought about setting aside Christmas money into a sinking fund. The agreed-upon gift budget categories from earlier in the years just won’t cut it.
That is where a Christmas budget worksheet becomes so helpful!
You must make decisions about your holiday plans. What did you want more? Expensive Christmas gifts with a ballooned credit card balance or a Christmas you can truly afford?
Now, let’s dive into some simple secrets to keeping a budget during the holidays.
1. Post-Christmas Situation
Before you start spending Christmas money, you need a clear vision of your priorities.
Remind yourself and your entire family about the reasons you had for getting on a budget in the first place. During our journey to becoming debt free, we were completely honest with our kids that we had greater priorities than spending money on the small stuff.
Once the excitement of Christmas passes, do you want to have regrets or a little more money in the bank?
2. Prioritize your Christmas List
Our Christmas budget worksheet will help to make this step much easier.
Start making a complete gift shopping list. Think of everyone on your list. Next, review it and prioritize the list according to your relationship with that person. Just like with personal finances, take care of immediate family first. Then, decide if you have enough in your Christmas budget for extended family, friends, neighbors, and co-workers.
Start at the bottom and eliminate any names that absolutely don’t need to be there. If you want to spend more money, then assign a portion of your budget to each of the remaining names.
It is okay to keep the gift-giving to those you are closest too! Your friends may be relieved they don’t need to reciprocate too!
3. Become Creative with Gift Giving
The first rule of thumb… gifts don’t have to be materialistic items.
You can become creative and don’t need to make 101 DIY Pinterest perfect gifts.
Think outside the box.
Experiences can make some of the best gifts ever! Find gifts that are experiences. Plus you get to spend some quality time together.
4. Stop Trying to Keep up With the Joneses’
The surest path to a blown budget is to start comparing what you’re doing with what someone else is doing. Remember, they’ll likely be crying come January.
You are going after a debt free Christmas.
One of the most slippery slopes when it comes to personal finances is trying to cover up your situation and keep the appearance of a lavish life. This lifestyle creep will destroy your values and the things you care the most about.
Make this Christmas simple and something you can afford and treasure for many years to come!
Related reading: How to Spend ZERO at Christmas in a Materialistic Society
5. Know When to Stop Shopping
If you are a thrifty person, then you probably start shopping for gifts year-round.
Those are great ways to be frugal and find terrific gifts for a fraction of the price.
However, you must be able to stop buying and put blinders on for the cheap things to pick up.
If you have spent your entire holiday budget before Thanksgiving and know you are a smart cookie to get it all out of the way, you must be able to avoid more shopping. Those Christmas sales will be tempting, but don’t get in the trap of thinking I can spend just a little bit more can’t I?
Bonus Rule – No impulse buying
Honestly, impulse buying will ruin your budget throughout the year. Around the holidays, it will become more pronounced because you want to make the season magical.
If someone gives you an unexpected gift, it doesn’t mean you have to run out and buy them something as well. A simple Thank you note will suffice.
One of the best money rules is to wait 24 hours before you buy it. The same applies to Christmas.
Free Christmas Budget Template
Here is your free Christmas Budget template.
It is very easy to use. More importantly, it will help you to make sure everything is accounted for.
Get your PDF copy of the Christmas budget worksheet by subscribing to our email list and gaining access to our FREE printables area.
Christmas budget spreadsheet google sheets
For those who want to save everything electronically, then here you go.
This Christmas budget spreadsheet google sheets can be edited to suit your style. Plus you will be able to take your spending year to year!
In our free printables area, you can download all of our budget spreadsheet version that works for you – Excel, Google Sheets, or Pages.
Time to Make Your Christmas gift template
Throughout this post, we have given you the framework to make sure you have a debt free Christmas. Now, it is time to put everything together.
Download your gift template and Christmas budget from the email form below.
Take time and reflect on what gifts you want to give. More importantly, make sure it is a Christmas that you can afford.
By keeping your goals in mind, you can survive the holidays within your budget (and maybe even under).
Enjoy our Christmas Budget Template!
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.
This post may contain affiliate links, which helps us to continue providing relevant content and we receive a small commission at no cost to you. As an Amazon Associate, I earn from qualifying purchases. Please read the full disclosure here.
In today’s world, getting ready for Christmas is an undertaking.
For some, it is months worth of planning. For others, they are flying by the seat of their pants at the very last moment possible. For me personally, I fall into between these two groups depending on the year.
The amount of Christmas money each year that is spent. You need a few tips and tricks up your sleeve to make sure you stay debt free!
To help you out, this post is created so you have all of the best money saving tips for Christmas. That way you can continue to build the life of your dreams.
You need to bookmark this page to come back and reference!
A budget means you are making a plan for your money.
It isn’t supposed to be limiting or feel restrictive. A budget takes account of what you have available to spend and make sure you are a good steward of your money.
With a Christmas budget, you are making sure you are allocating the money you have to spend on gifts, decorations, parties, food, and decor!
Nothing will be forgotten and you will stay debt free!
This is where the Christmas magic starts.
You need this Christmas worksheet to help you plan a holiday you can afford.
Download your copy and start planning a magical Christmas season!
Don’t skip this section!
You need to know these simple tips to make sure you are successful with your Christmas Budget.
Did you know… If you use a budget at Christmas, then you will find success all year around.
Frugality is one of the traits of those who reach financial independence or saving that first $1M first.
You don’t need to spend a ton of money to have an epic Christmas.
Learn these 10 money saving tricks for a frugal Christmas (and don’t forget the best part… no one will know you spend little or no money)!
Saving money for Christmas helps you spread out the financial cost hitting you at once. One of the best ways to do this is with sinking funds.
A debt free Christmas is what you truly desire!
Start saving today with one of these Christmas money saving challenge. Plus find great ways to save and keep the spirit in Christmas.
This is where you learn to save with a Christmas saving account. Money set aside for one purpose and one thing only – spending at Christmas time.
Plus find fabulous saving money tips on additional ways you can save each and every day!
Every penny saved adds up for your other money goals.
Have you ever experiences a debt free Christmas! Let me tell you… it is fabulous to not have the financial hangover come January.
Learn the tricks and secrets for a debt free Christmas.
Plus you can implement these money tips to use all year around.
In this post, you will find specific money saving challenges for Christmas!
These 52 week money saving challenges are super popular!
Choose from nine different amounts to start saving for today.
In all honesty, most of the amounts are higher than the average Christmas. But you can always save money for another purpose like retirement or vacation.
Prefer to save money on a monthly basis.
Then, check out one of these money saving challenges. Pay yourself first and stress less.
An income gives you the money for your expenses. However, there are times that you need extra cash for the fun things in life.
Christmas is one place where an extra $500-1000 will make a huge difference.
Learn how to make money for Christmas fast!
You don’t want to miss this money making ideas!
These are tested and proven ways to make money fast.
An extra $100-500 will help your Christmas budget extensively.
Plus many are super easy and don’t take much of your time. (Hint: many are ways you shop online anyway!)
Learn how to make 300 dollars fast and earn extra cash- just in time for Christmas.
This guide will cover the 35 ways of earning extra money in your free time, at home, or online.
Are you looking for ways how to make 500 dollars fast before Christmas?
If so, you’ve come to the right place. In this guide, you’ll learn how to earn money quickly and easily by doing things by simple tasks.
Learn how to turn 100 into 1000 through a series of easy steps.
This is exactly what you need to do to have money for Christmas gifts.
These simple, yet powerful steps will help you make more money and live a better life.
This is the FUN PART! Time to figure out where to start shopping and buy the perfect Christmas gift.
But, wait, before you head out and start your shopping, you need these Christmas spending tips.
They will probably change or at least re-think how you plan to spend money this season.
I have seen and heard from many of you that you are interested in saving money and spending less.
So, today, we are going to look ahead to how you can celebrate the holidays with less money, but still as festive.
This idea of a no gift Christmas may not be a fan favorite with everyone but you will save money and enjoy the holidays.
Whether you’re looking to switch things up or keep your budget real, you’ll find something here!
I’ll be honest. Christmas in America is quite excessive with the amount of time, money, and energy is spent. In addition, most people are stressed to the max making the Pinterest perfect holiday.
In this post, Money Bliss will cover how it is okay to SAY NO and spend ZERO this year.
You will end up with different Christmas traditions. That is okay because it will help you stay focused on your long term aspirations.
Hint: Expensive gifts are necessary. Gifts from the heart and made from love are priceless.
We live in a spending society. It is hard to be cross-culture when everyone around you spends like they have a rich sugar daddy (too many times, it is actually credit card debt).
In this post, learn the smart and savvy ways to spend less at Christmas and still give real gifts.
Photo Credit:
moneybliss.org
Don’t start Christmas shopping until you read this post.
You will be shocked to learn how simple these money saving tips are. But, we normally are looking through the rearview mirror at our spending habits.
Be prepared with these tips and you list BEFORE you start shopping!
This is the culmination of all of your efforts in planning, saving, and budgeting. Maybe you need a few last-minute gifts that won’t break the bank. Either way, Money Bliss has you covered.
Can you give the presents that your heart truly desires?
Here are the best Christmas gift ideas:
Looking for the perfect gift? Check out our list of the best consumable gifts!
This is a gift that can be used up one way or another.
Find ideas from clothing and home goods to drinks and food, we’ve got you covered.
Money gift ideas are perfect for any occasion!
Learn how to wrap money as a gift.
These are cute ideas for giving money. Always a huge hit!
Too many times, we are under the false assumption that material gifts are the only types of gifts to give.
This post will teach you why giving gift experiences are a great idea for gift giving.
Change your perspective and enjoy the season.
Honestly, it will change your whole concept of spending money year around and then you can truly consider what you want from life and how you spend your time.
You never want to utter the words… “I’m broke.”
It is embarrassing that you don’t have the money to spend on gifts (especially for the ones you love).
The good news alert here… You don’t have to spend a fortune on some really awesome gifts!
We want to give gifts that are thoughtful, stylish, and affordable.
These cheap Christmas gifts offer ideas plus are inexpensive to buy.
More Christmas ideas than you can imagine! Plus delivered straight to your doorstep or the recipient!
The holidays are coming up, which means it’s time to start thinking about what gifts you’re going to give your coworkers. But with a tight budget and limited resources, finding the perfect gift that won’t break the bank can be tough.
To help, we’ve put together an extensive list of 25 inexpensive gifts that your coworkers will actually like!
Kids love to receive gifts at Christmas!
This list will make sure you spend your hard-earned money on practical gift ideas that the toddlers, children, preteens, and teens will love.
Looking for the perfect gift for a young person who has everything?
Check out our list of 35 cool gifts for kids who have everything! These creative gifts include unique toys and non-toy ideas.
From toys to clothing to experiences, there’s something for everyone on this list.
Have you noticed a trend while reading this ultimate guide to spending less at Christmas? There are so many ways to save money and you need that when it comes to kids.
These gift ideas focus on hands-on learning – no screen time needed.
Oh, this list is totally KID APPROVED!
Made with love by my kids!
Parents, forward this to your family who loves to spoil your kids!
I wish I had the courage and strength to say something when my kids were younger. Instead, I have memories of trying to manage and clean up too many toys than they ever needed.
These are great ideas that will create memories for children, parents, and the gift-giver too!
How will You Spend Your Christmas Money Saved?
Instead of worrying about how much money is appropriate for a Christmas gift, you learned you to spend your Christmas money that you set aside.
Don’t let the spirit of Christmas ruin your personal finances!
This is the time of year to prove to yourself that you can implement a few money management tricks and be very successful.
Just like with personal finances, by making a plan for your Christmas money ends with better results than living paycheck to paycheck.
Enjoy the season knowing you can stay debt free and keep reaching your money goals!
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: The answer is so obvious! Stop the assumptions with the 3 percent or 4 percent rule of retirement. Learn how much money to save for retirement today.
We all know that saving money for retirement is something we should do.
Maybe you are contributing the minimum to your 401K through work to get the match. Possibly saving money in a Roth IRA.
But, are you truly saving enough for retirement?
More than likely not.
Don’t feel like you are alone. According to a new study, only half of households actually have money saved in retirement accounts. The good news for those who have saved is the dollar amount saved for retirement has been increasing in the past 10 years.
Here is the real reason you don’t save for retirement… you have absolutely no clue how much money you need to be saved to retire.
You have tried to use all of the online retirement calculators from all of the big companies. Your results are millions of dollars different. You have no clue where to start, or what to believe.
And then you just get unmotivated because you’re like there’s absolutely no way I can make that dollar amount work.
So, What is Our Retirement Number
Personally, I completely get it this is a conversation. My husband and I have had it for years.
What is our retirement number?
What amount do we need to retire with?
And honestly, even can I actually save that much before I am too old to work?
It is all a complete unknown, it is a best-guess scenario.
There is absolutely no way for you to truly understand how much you need because there are so many things that go into it, including inflation, your savings rate, your withdrawal rate, and your anticipated expenses. So there’s a lot of variables and that’s when the variables get too confusing you don’t know which way to start.
One Guaranteed Truth…
The financial advisors believe they are the know-all-be-all with their calculations while charging you an asset management fee that is putting a drag on your overall portfolio.
And then October 27, 2020, Bill Bengen announced that instead of using the 4% rule is outdated, and now you can use a 5% rule. (Bill Bengan is a financial advisor who made the 4% rule of thumb famous 25 years ago.) So, this latest information just throws a curveball into everything that has previously been used for the past 25 years, and now you’re left wondering…
Well, I have no idea what is the proper amount I need to save for retirement.
Do you know what the amount that you need to save for retirement is?
So, let’s dig in for a little bit and we’re gonna talk about the three different percentages that are talked about the most. It’s the 3% rule, the 4% rule, and the 5% rule is one better than another. We’ll debate that and shortly.
How does Withdrawal Rate work?
But first of all, you have to realize that not everything works the way you want, so let’s show some examples before we dig into the specifics of the different rules.
Basically, the whole concept is if you save $1 million and you start withdrawing either 3%, 4%, or 5%. That withdrawal amount is the amount of income that you would live on each and every year, while the rest of your portfolio is continuing to grow and increase in value.
The ultimate, perfect-scenario goal is that you would withdraw as much as you possibly could without depleting the portfolio.
Withdrawal Rate Example:
Here are the assumptions:
Plan to spend $50,000 a year
7% rate of return on your money
Age doesn’t matter and not accounting for taxes or inflation (we want to keep this simple)
The amount you would need to save based on each of the withdrawal rates:
3 percent rule, you would need: $1,666,667
4 percent rule, you would need: $1,250,000
5 percent rule, you would need: $1,000,000
This post may contain affiliate links, which helps us to continue providing relevant content and we receive a small commission at no cost to you. As an Amazon Associate, I earn from qualifying purchases. Please read the full disclosure here.
The Withdrawal Rate Confusion
In our example, we used simple calculations that don’t account for age, taxes, or inflation and the amount you need to save for retirement is $666,667 different.
The numbers are too much for the average person to understand and have faith in.
This is why the confusion on how much to save for retirement and what model and which retirement calculator is the best.
Shortly, we are going to give you the simple answer of how much to save for retirement. But, first, a little background on the various percent rules for retirement.
3 Percent Rule
The 3% rule has gotten very popular with the FIRE movement.
The FIRE movement is Financial Independence Retire Early.
Because most of these people aren’t looking at retiring in the normal typical retirement age of 60s, they’re looking to retire in their 30s or 40s. They feel like they need to be super conservative because they are trying to estimate how much they need each month to live off their money for possibly the next 50 years.
That’s a lot of variables that you have to take into account.
The good news is you can always learn and figure out ways to make money in retirement so it’s not a complete waste, you can always go back to work because you are younger, and have youth on your side. So, is 3% a safe withdrawal rate?
The golden advice is you want to plan for the worst but hope for the best. The goal is that 3% would cover all of your necessities and basic expenses.
4 Percent Rule
Is the 4 percent rule viable?
The 4 percent rule of retirement was made famous by Bill Bengen 25 years ago (and just recently he said that number is outdated.)
The assumptions were if you withdraw 4% of your investment account every year, you will still have enough to live on throughout retirement.
This was based on what has happened in the markets, accounted for inflation, and the age you want to retire. He conducted many possible case scenarios and concluded that by only withdrawing 4 percent will make sure your money lasts. That is why it has been what is called a golden rule for retirement.
How long will my money last using the 4% rule? If you do all the calculations, it should last for at least 30 years. Obviously, you are looking at many variables of the stock market doing well and your living expenses staying low. Once again, the other big factor is what inflation will do in the future.
So, is the 4% rule that much better?
5 Percent Rule
And then, October 2020 rolls in. The breaking news is that Bill Bengen announced the 4 percent rule for retirement is too conservative and now you can actually use 5%.
So, that leaves the average person going… Okay. My head is spinning. I’m not sure how much I need to save for retirement. What is a good number?
Can I safely withdraw 5% of my investment accounts and still have enough money? That means I need less money to retire.
This is where people quit investing and saving for retirement becomes too hard.
Real truth from real people
Can you Overcome Why Most People don’t save for Retirement?
There are too many variables, there are too many unknowns, and they don’t understand how it all works.
That is the real reason people don’t save for retirement.
I get it. I’m there with you. I feel it. I hear it from readers. But, we are going to break down some of the key items so that way you know how much you need for retirement.
And just remember, even if you messed up your numbers, the market went down, or you want to spend more in retirement than you are, then you could always go back to work. Even better, learn how to make money online for beginners, pick up a side hustle, make a little bit of extra money, and actually do something that you truly enjoy doing.
Learn how much money should I have saved by 30.
How Much do I need to Retire?
The simple answer… aim for $1,000,000 in investment accounts.
You may be able to aim lower depending on some variables which we cover shortly.
Investment accounts can include any of the following:
401K
Roth IRA
IRA
HSA (health saving account)
Brokerage Accounts
High-interest bank accounts
Real estate
You want accounts with liquidity. Things that can be bought and sold for cash. Those are the assets we are counting on how much to retire with.
Don’t use equity in your house because you need a place to live. If you want to use equity, that is fine, but your calculations just become slightly more difficult. We want simplicity.
Right now, your money goal is to reach $1,000,000 in investment accounts. Specifically in liquid net worth.
(Of course, this number may be lower if you live in a low cost of living area, plan to move with overall lower costs or another country, or have good options with lower health care costs. There have been plenty of people who retired with less and love life.)
Based on these variables, you may just need $500,000 to retire. Or somewhere in that range.
Realistic Retirement Savings for Motivation
We shared what a realistic retirement savings amount of $1 million dollars is. Is your first reaction – yikes, there is absolutely no way I can reach that amount.
However, you can!
Just break it down into smaller chunks.
For instance, make your next goal to save $100,000. You do that 10 times and you hit that realistic retirement savings amount.
If that seems like a stretch, then break it down even further. To stay motivated you can strive to save $50K or even $20K.
Break it into bite-sized manageable pieces to help you save for retirement and stay on track.
Learn what happens if you don’t save for retirement.
Best Ways to Save for Retirement
This is the basics to start saving for retirement.
You already know much should you really save for retirement. Now, you just to need to do it.
Here is the safest way to save for retirement. First, open up one or all of these accounts (pending where you are on your money journey). Then, look at investing in S&P 500 Index funds. The most highly recommended index fund for beginners is VTSAX.
1. Contribute to 401K
This is the simplest way to start saving.
Make sure you are contributing at least the minimum to your employer’s 401K.
Every year you can contribute up to a maximum amount. In 2023, an employee can contribute $22,500 to their 401k (the employer is eligible to contribute as well for a combined amount not to exceed $66,000 or 100% of your compensation, whichever is less). For the latest contribution limits, check out the IRS site.
Each year, increase your percentage by 1%. A simple way to reach maxing out your 401K.
Pro Tip: Check if your employer offers a ROTH IRA option. These are becoming more and more popular with companies. A Roth 401K will let your money grow tax-free because you pay taxes when you contribute money. If they don’t offer one, pester the human resources department.
2. Open Roth IRA
The next best option is the ROTH IRA. You want to contribute to a Roth IRA because you pay taxes upfront rather than at withdrawal like a traditional IRA.
Since ROTH IRAs have tax advantages, there are also contribution limits set by the IRS. The contribution amounts have remained the same for a couple of years now. The annual contribution limit is $6,000 per year, or $7,000 if you’re age 50 or older.
The downside to Roth IRAs… the amount you can contribute may be limited based on your income and filing status. However, for the average American, you should be able to max out the amount you can save each year.
Learn if can you have multiple Roth IRAs as it may be a smart financial move.
Pro Tip: Even if one spouse is a stay-at-home parent, you can still contribute to a Roth IRA for the non-working spouse.
3. Health Savings Account
Say what? Yes, a health savings account is on the list as a way to save for retirement. It is a great way to grow your money tax-free going in and on withdrawals.
You must have a High Deductible Health Insurance Plan to open a health savings account.
This is something you want to do and contribute the maximum amount each year. For 2023, you can contribute $3,850 for individuals and $7,750 for family coverage. Typically, the limits go up $50 each year, which helps you save more every year.
Pro Tip: This account will stay with you even when you leave your current employer and insurance. Plus you can use the HSA funds forever – even to pay Medicaid premiums. (Hopefully, nothing changes on these tax-advantaged accounts).
4. Traditional Brokerage Account
The last avenue has no tax benefits, but you are still saving money to be used later. That is what really matters.
Since there are no tax advantages to these basic brokerage amounts, there also are no limits on how much you can contribute.
This is where you would save the remaining money after you exhausted all the other methods listed above.
Side Note…
Yes, there are other ways to save for retirement. For this post and the average investor, the above-mentioned accounts are a great place to start. Once you become savvier and want to invest more money, then you can look at back door IRAs, 529s, or whole life insurance.
Saved $1 million for retirement, Now What?
Once you reach that 1 million dollars retirement mark, congratulations!!
That is a huge milestone that many people never reach. So, what is the next step?
Now, that you are closer to finally being able to live off your investments, you must start to look at the retirement calculators more seriously and factor in all of those variables (age, taxes, and inflation). It is much easier to predict the future once you have built a solid nest age and are closer to living off your investments.
Everyone started the financial independence journey at a different age and will reach their million-dollar mark at different times.
For the average person, you know learned how to save for retirement. You know what you need to do and where to start.
In this post, we took out all of the confusion on how much to save for retirement. Don’t worry about is the 4 percent rule is viable – or if it should be the 3 percent rule or the new 5% rule. The assumptions and variables will hold you back from starting. You know the dollar amount to start with, move on with that.
This simple advice for hitting your first milestone is the motivation to keep you going. Along the way, you will become savvier with finances and investing.
When it is time to move to the question of “can I retire” at such and such age, you have already taken out many of the variables, and the decision becomes more and more clear.
Take steps to reach that $1000000 mark today.
Get ahead now…
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.
Summer break is in full swing, and with it, back-to-school shopping season. According to a new NerdWallet survey, those who are parents of K-12 or college students and who plan to do back-to-school shopping this year will spend $541, on average, on school supplies and clothing for their kids’ upcoming school year.
The survey of over 2,000 U.S. adults — among whom 478 are parents of children in K-12 or college for the 2024-25 school year and who will do back-to-school shopping — was commissioned by NerdWallet and conducted online by the Harris Poll in May 2024. We asked these parents, referred to throughout this report as “back-to-school shoppers,” how they plan to pay for school supplies and clothes and how they’re saving money on these expenses.
Key findings
Debit and credit cards are the most popular payment methods for back-to-school shopping: The survey found that 3 in 5 back-to-school shoppers will use a debit card (60%) to pay, and 58% will use a credit card. Shoppers could choose more than one payment method option.
Few say they’ll take on debt for back-to-school shopping, but their payment methods suggest otherwise: Despite just 10% of back-to-school shoppers saying they’ll likely go into debt to pay for school supplies this year, 20% report that they’ll use “buy now, pay later” services to shop. That combined with the number of shoppers using a credit card suggests consumers may not view short-term borrowing as debt.
Some shoppers are setting budgets and discussing them with their kids: More than a third of back-to-school shoppers (35%) say they’ll set a firm budget for back-to-school shopping this year. Likewise, 31% have talked or will talk to their children about the budget for back-to-school shopping.
Still, some parents say they’d go into debt for their kids’ social lives: The survey found that 42% of parents of K-12 or college kids — a slightly broader survey group than back-to-school shoppers — say they’d go into debt to pay for back-to-school items that would help their children fit in at school. More than half of parents of school- or college-aged kids (53%) say they’d go into debt to pay for the extracurriculars their children want to participate in.
“Back to school is a hectic time for everyone. Kids are adjusting to new teachers and classmates, while parents are scrambling to get the necessary clothing and supplies,” says Sara Rathner, a NerdWallet personal finance expert. “The cost of setting up kids for the school year only adds to the stress.”
Most back-to-school shoppers using debit, credit cards
Back-to-school shoppers will primarily use a debit card (60%) or credit card (58%) to pay for their kids’ supplies, clothes and school-related items for the upcoming school year. And 1 in 5 back-to-school shoppers (20%) say they’ll use buy now, pay later services as a payment method.
Just 10% of back-to-school shoppers say they’ll likely go into debt to pay for school supplies this year. But 20% of shoppers plan to use buy now, pay later services, which are often short-term, interest-free borrowing, much like using a credit card and paying it off by the due date. Whether you use BNPL or a credit card, keep in mind that even if it’s not costing you in interest, it is money you owe. It’s a good idea to keep your borrowing in check so you don’t overextend yourself financially.
Savvy shopping tip: Avoid overextending yourself with short-term borrowing
Using a credit card or BNPL service to pay for back-to-school purchases may be the best option for you, but it could encourage overspending. According to the survey, 35% of back-to-school shoppers will set a firm budget for purchases this year, which can be a good idea to keep spending in check, no matter your payment method.
“Setting a budget and mapping out your spending for clothing, supplies, and even more expensive items like computers, can help you limit debt or avoid it entirely,” Rathner says. “You may be able to cut costs by planning ahead and shopping when items are discounted.”
Back-to-school spending can add up, but many shoppers are taking steps to lower their costs. More than half of back-to-school shoppers (52%) plan to shop during sales this year, and 32% plan to only purchase things required or requested by their child’s school in order to save money. Others plan to use coupons (32%), purchase some back-to-school clothes secondhand (23%) or seek out free options for this year’s school supplies (22%).
Some back-to-school shoppers are getting ready early. More than 2 in 5 shoppers (42%) say they’ll save ahead of time this year, and 21% have already started back-to-school shopping (as of the time of survey fielding in May 2024). Close to a third (31%) have talked or will talk to their children about the budget for back-to-school purchases this year, and 9% expect their children to contribute to some of the costs.
Savvy shopping tip: Take steps to save money on back-to-school buys
Getting your kids ready for the upcoming school year can be expensive, especially if you have multiple children or are struggling to afford everyday essentials. Shopping back-to-school sales or your state’s tax-free days are great ways to save money on supplies and clothing purchases. But if you’re looking to save more, there are other ways to keep spending in check.
Secondhand shopping for clothes and certain supplies, or even looking into free options can take the pressure off your back-to-school budget. Ask around to see if your local community — maybe your school district, religious organization or neighbors — facilitate backpack drives, supply swaps or something similar to help families who need assistance getting access to school supplies. Community support, financial and otherwise, can be a great asset for parents year-round.
“This year’s school supply list might not come out in time to take advantage of tax-free days where you live, but one tip I got from a fellow parent is to shop based on last year’s list,” Rathner says. “There may be some changes from year to year, but many supplies are timeless, like backpacks, pencils and scissors.”
Some parents would take on debt for kids’ social standing
Supply lists may dictate back-to-school shopping needs, but some parents say they’d go into debt in service of their kids’ social lives this upcoming school year. According to the survey, 42% of parents of children in K-12 or college say they’d go into debt to pay for back-to-school items that would help their child fit in at school. Likewise, more than half of parents of school- and college-aged children (53%) say they’d go into debt to pay for the extracurriculars their kids want to participate in.
Savvy shopping tip: Reconsider taking on debt for kids’ nonessentials
Parents generally want to provide a good life for their kids. But going into debt for nonessentials can put your family in a financially precarious position, which can be stressful for everyone, kids included.
A frank, age-appropriate conversation with your kids about what your family is willing to prioritize financially can be a good lesson in budgeting and making hard choices. Perhaps you can either do sports fees or the expensive sneakers they’ve had their eyes on, but not both. Let them decide what’s most important to them, a useful skill to hone as they enter adulthood.
“It’s natural to want to give your kids everything, but just like you make choices to buy or not buy things, your kids can use back-to-school shopping as a time to learn how to prioritize needs versus wants,” Rathner says. “Those budgeting lessons might be met with some eye rolls now, but they’ll pay off when your kids are out on their own making spending decisions.”
Methodology
This survey was conducted online within the United States by The Harris Poll on behalf of NerdWallet from May 7-9, 2024, among 2,098 U.S. adults ages 18 and older, among whom 507 are parents of kids in K-12/College, among which 478 will back-to-school shop this year. The sampling precision of Harris online polls is measured by using a Bayesian credible interval. For this study, the sample data is accurate to within +/- 2.5 percentage points using a 95% confidence level. This credible interval will be wider among subsets of the surveyed population of interest. For complete survey methodology, including weighting variables and subgroup sample sizes, please contact [email protected].
Disclaimer
NerdWallet disclaims, expressly and impliedly, all warranties of any kind, including those of merchantability and fitness for a particular purpose or whether the article’s information is accurate, reliable or free of errors. Use or reliance on this information is at your own risk, and its completeness and accuracy are not guaranteed. The contents in this article should not be relied upon or associated with the future performance of NerdWallet or any of its affiliates or subsidiaries. Statements that are not historical facts are forward-looking statements that involve risks and uncertainties as indicated by words such as “believes,” “expects,” “estimates,” “may,” “will,” “should” or “anticipates” or similar expressions. These forward-looking statements may materially differ from NerdWallet’s presentation of information to analysts and its actual operational and financial results.
This post may contain affiliate links, which helps us to continue providing relevant content and we receive a small commission at no cost to you. As an Amazon Associate, I earn from qualifying purchases. Please read the full disclosure here.
You want to learn how to be frugal but not cheap… then, you are in the right place.
Simply put… frugal living is saving money at it finest.
To be honest, though, learning how to be frugal can come with spending more money than you planned in the name of frugality. The truth can hurt. But, in order to be frugal, you must save what you would normally spend.
That means you are economical with money.
The list of 175+ frugal living tips seems like a great place to start when you are learning how to be frugal, right?
Wrong!
You need to focus on a few basic habits first. Set yourself up for success. And then, slowly incorporate more frugal ways to save money.
In this post, that is exactly what you will learn.
The frugal habits you need to be successful along with the best frugal life hacks to guarantee success.
Let’s dig in…
Can being Frugal make you Rich?
Absolutely yes!
The key is to save money from your frugal hacks.
Remember the age-old saying, “A penny saved is a penny earned.”
Every penny will slowly add up to the next money milestone.
If you don’t believe me, then check out this millionaire’s story of being frugal.
How Being Frugal can Cost You?
It can IF you are not careful.
Being frugal is about saving money. However, it is possible to spend more money in the name of frugality.
The first example would be being more than you need just because it is a good sale, deal, or clearance price that you don’t want to miss out on.
Next, in your search to find the cheapest option, you actually spend more over time replacing it because the quality isn’t quite the same.
There is a fine line between frugality, being cheap, and simply overspending on deals.
Just be weary of overspending money in the hunt of saving money.
How to be Frugal with Money
These are the habits you want to embrace to become a frugal person.
Personally, I like to think being frugal is being picky with my money.
I loathe my investment accounts going down, so why would I want to buy things that we don’t need or don’t matter in the long wrong. That is why I choose to be frugal with money.
Specifically, I choose to be economical with how we spend money.
Now, let’s dig in to understand how to be frugal with money.
1. Know Your Goals
First, you must know your goals. If you don’t have a goal, then you aren’t going to make any progress. Period.
In today’s society, it is SO easy to spend money without even realizing it. That is the point of business – they are out to market for your money (and they are good at it, too).
You must prioritize you first.
This is something we hear over and over. Prioritize your self-care before taking care of others. The same holds true for your money.
Action Step #1 – Sit down and write out your financial goals.
If this is something you haven’t done before, then check out our helpful guide to rocking your financial goals.
2. Understand your Spending Habits & Triggers
This one is HUGE!!
If you don’t know how and where you spend money without thinking, then you will never be able to stop the spending. You can’t slow the bleed.
First of all, I will admit that uncovering your spending habits is hard. It is introspective. It can be painful. Maybe even demoralizing.
But, until you let go of your previous financial failures, you won’t be able to move on.
This is an important step to make serious progress in your life. You may be amazed how this seemingly simple things will hold you back.
Action Step #2 – Review bank statements or credit card transactions. Look for things you bought without planning for them.
This will highlight your spending habits.
As for your triggers, watch your emotions and think what you automatically do when you are happy, sad, mad, and celebrating.
3. Save First
Oh my, pay yourself first.
This is something I focus on a lot at Money Bliss and for good reason. Saving money is the backbone to financial success.
If you don’t save money, then you are left scrambling when you need cash or stuck going into debt. This is a vicious hamster wheel that debt will overtake you.
Start by saving $10 a day. Many times you can find that money by uncovering your spending habits.
From there, look at increasing your saving percentage each month.
Action Step #3 – Figure out how much you save each week, each month, and your saving percentage. Brainstorm ways to increase how much you save.
To help our readers, you will find many spreadsheets and printables to help you figure out how much you save and track your savings progress. Once signed up on our email list, you will receive the password.
4. Spend Less Than You Make
Your expenses must be lower than your income. Period.
If you are currently spending more than you make, then you must look at ways to drastically cut expenses. Stop hoping that your situation will change and actually do something about it.
This seems like a very easy math concept. Yet, most people struggle with basic money management.
If you don’t believe that saving an extra $5 day, then think about having $1825 in your pocket.
Now, let’s flip it the other way, if you are overspending by $75 a week, then by the end of the year, you are in the hole $3900 plus interest if you took out debt.
Action Step #4 – Figure out your bare bones budget. Then, decide what fun spending items to keep to make sure you spend less than you make.
Here is a guide to help you figure out your bare bones budget. Also, you will find bare bones budget printable in our free library area.
5. Patience
Lastly, you must have patience.
Changing your money management won’t happen overnight. While you can have quick wins and successes, this is the race won by the turtle.
Patience comes with planning and that is one thrifty habit you should pick up.
When you become frugal with money, you plan how you spend your money and save your money. Many times, that means waiting for a sale to buy an item you need or accumulating money for another date.
Action Step #5 – Show self-restraint and try a no spend week or month.
By holding a no spend challenge, it will help you reshape your finances as well as help you prioritize what is important. As a reader, you have access to our no spend printables, too!
Frugal Life Hacks
These are the specific frugal hacks to save money.
These are the key areas you need to focus your energy on. Over time, they will become habits.
1. Pay Yourself First
Yep, this one again.
If you are frugal, then you pay yourself first.
You are focused on two things – how to save more money and how to make more money.
This pay yourself first concept will have you winning at money management – guaranteed!
2. Budget
A frugal person always has a plan on how they plan to spend their hard-earned money.
This makes sure that spending is always below income.
While many people hate the term “budget,” it doesn’t have to be constricting. We like to call it a “Cents Plan.” You make a plan for your money.
Just like you make a plan for your time on the weekend. Same concept.
The more you save now, the greater freedom you will have later.
3. Cook Meals at Home
Cooking food at home costs at least 25% of eating out. While the convenience of eating out is nice, it comes at a monetary and wellness cost.
You can make healthy meals under $10 for six servings. And not be a slave in the kitchen.
Shop the outer area of the grocery store. The expensive stuff is in the middle.
Hint: Try to incorporate a meatless meal 1-2 times per week. Plant based meals are cheaper to make.
4. Shop Less Often
This goes for general shopping, buying groceries, and adding items to your Amazon cart. The more often you go, the more likely you are to spend more money.
Decide ahead of time when you plan to shop (remember that patience concept from earlier).
For example, to get groceries for our house. I plan two pickups per month at the local grocery store and then have organic produce delivered on odd weeks with Misfits Market. Then, Costco run every month to 6 weeks. (Mind you… I have two children that are hitting the pre-teen phase.)
For me, I have shaved 30% off my grocery budget by implementing the strategy to shop less often.
5. Use Cash for Key Categories
If you are tempted to spend more than you should in certain areas, then you need to look at using cash.
When cash has been spent, you must wait until you full up that envelope again.
This helps so much with overspending.
You can do this with the cashless envelope system as well.
6. Own Less Stuff
The more items you have, the more it cost to buy and maintain.
So, by owning less stuff, you are accomplishing one of the most frugal life hacks to save money.
You don’t even need to become a minimalist. You just need to own what you need and that is it.
If you don’t believe me, look around and pack up anything you haven’t touched in the past 30 days.
7. Don’t Buy New
Buying new can be expensive. The best example of buying new is cars, trucks, and SUVs. The price instantly goes down the second you leave the dealership.
If at all possible, always look for used items that you can get at a discount or even for free.
With online forums and groups, it is much easier to find used items.
Of course, there is a caveat to this life hack; there are some things that are worth the investment and should be bought new. Just watch for sales or discounts.
8. Check your Receipts
It absolutely amazes me how many times I can be charged inccorectly. You would think with technology that this wouldn’t happen, but it does.
It takes a quick thirty seconds to scan your receipts and check for errors.
Sometimes, it may be the warranty you declined or double charged for apples. Other times, the sales price not have been rung up correctly.
Don’t hesitate to ask for the correct price!
9. Review Insurance and Ongoing Subscriptions
This may seem like a mundane task to do, but you could save yourself money.
This past summer, our homeowner’s and auto insurance went up again. We shopped around and ended up saving $1800. The same is true for cell phone and cable service.
You have to call and ask for discounts.
More often than not, these companies want you to continue as a customer and will lower your rate.
Insurance Options:
Automated Options to Save Money:
10. Switch to Reusable Products
When you throw something out, you have to buy new again.
This can fall into many categories. However, here are the main things you can reuse and ditch the waste.
This is what you want to look for:
11. Drink Water
Nothing is more frugal than drinking water.
The costs of various drinks can be a drain to any budget.
If you don’t like your tap water, then you can invest in a cheap filtration pitcher or even an under-mount filtration system. This is the one we installed and have been very happy with!
12. Watch Out for Fees
There are so many little pesky fees that can add up. Some examples include shipping, account maintenance, service fees, banking fees, etc.
While $2-8 may not seem like much, they will balloon over time. Look for promo codes or alternative ways to skip the fees.
13. Cut Cable or Unused Subscriptions
If you don’t use, then don’t spend money on it.
You can’t save money if you spend on things that don’t matter to you.
This is hard for many of us to do because we like conveniences and we don’t want to be seen as different.
Ways to Cut Cable:
The key when cutting cable is not to replace it with more subscriptions that end up costing more.
14. Collect Your Pennies
A true life hack to get you ahead financially is to know your money.
You know where you money goes. You know when you spend it. When you save it.
Also, you will never leave money on the table. If you see a penny, you pick it up and save spare change. If you lose a dollar, you want to get it back.
This means you are actively looking for ways to make more money. You want more pennies to collect that will add to your net worth over time.
15. Free Things to Do
The last frugal life hack is to always look for free things to do.
Here is a little secret… having fun doesn’t need to cost money!! We have been trained that having fun costs money. But, it is so not true!
Some of the best things in life are free.
For all of you, here is a guide of over 101 things to do without money.
Which Frugal Life Hack Will Save Money for You?
Being frugal is a lifelong habit. Yes, there are quick wins you can have here and there. But, in the long run, these frugal life hacks will have the biggest bank for your time.
Learning how to live frugally and be happy is about understanding your priorities and how you want to spend your money.
If you are serious about learning how to be frugal with money, then plan a time to examine your finances. In less than 30 minutes, you will uncover things to change the trajectory of your spending and saving habits.
Just remember… pennies do add up. So, watch your pennies and watch your net worth grow.
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.
Should I save or pay off debt? It’s a tough financial choice. Prioritizing debt repayment can help you pay off what you owe faster, freeing up more money in your budget for saving. It can also help you spend less on interest charges. But that approach can also backfire. If you delay saving and get hit with an unplanned expense, you can end up with even more high-interest debt.
Whether it makes sense to pay off debt or save depends largely on the specifics of your financial situation. The right decision might actually be to try to do both.
When You Should Consider Paying Down Debt First
In certain situations, it makes sense to prioritize paying off debt over putting money into savings. This could be the best path forward if:
• You have high-interest debts. High-interest debt, such as credit card debt, can quickly accumulate and become overwhelming. The longer it takes to pay off, the more interest you’ll accrue, making it harder to escape the debt cycle.
• Your debt is causing you significant stress or anxiety. If having debt hanging over you keeps you up at night and you want to clear your balances as quickly as possible, putting debt repayment ahead of saving might make sense, provided you have at least some money in the bank for emergencies.
• A large portion of your income is going toward monthly debt payments. Having a high debt-to-income ratio (DTI) not only limits your financial flexibility, but can also negatively impact your credit score. A lower score could make it hard to secure loans at low interest rates or even rent an apartment in the future.
Strategies to Pay Down Debt
Once you commit to paying down your debt, you’ll want to come up with a plan for how to do it. Here are some strategies to consider.
• Avalanche method: With this approach, you list your debts in order of interest rate. You then funnel any extra money toward the balance with the highest rate, while paying the minimums on the other debts. Once the highest-interest debt is paid off, you move to the next highest, and so on. This strategy minimizes the amount of interest you pay over time.
• Snowball method: With the snowball method, you list your debts in order of size, ignoring the interest rate. You then funnel extra money towards the smallest debt, while paying the minimum on the rest. When the smallest balance is paid off, you move on the next-smallest debt, and so on. This can provide psychological benefits by giving you quick wins and motivating you to continue.
• Debt consolidation loan: A debt consolidation loan is a type of unsecured personal loan with fixed interest rates and repayment terms. If you have multiple debts, consolidating them into a single loan with a lower interest rate can simplify payments and reduce the total interest paid.
• Balance transfer: For credit card debt, a balance transfer to a card with a low or 0% introductory rate can help you save money on interest and pay off your debt faster. Just be sure that you’ll be able to pay off the balance before the promotional rate ends. If not, you could end up paying more in interest than you are now. Also be aware of transfer fees.
• Automate your debt payments: Setting up automatic payments ensures you never miss a payment, which helps avoid late fees and keeps you on track with your debt repayment plan.
When You Should Consider Saving First
Aggressively paying off debt isn’t always the best first choice, however. You may want to prioritize saving money over paying down debt if:
• You have little to no emergency savings. Without a cushion of savings in the bank, an unplanned expense or loss of income could result in racking up even more debt, putting you further in the hole.
• You have low-interest debts. If you have debts with relatively low annual percentage rates (APRs) and don’t feel unduly burdened by them, it’s fine to focus on saving, while paying off your loans according to schedule.
• Your employer offers a 401(k) match. If your employer offers a retirement savings plan along with a company match, it’s a good idea to try to contribute at least enough to get the maximum employer match. This is essentially free money you could be missing out on.
Recommended: 10 Ways to Save Money Fast
Determining How Much to Save
How much you should be saving will depend on your age and situation, but here are some general guidelines to keep in mind.
• Emergency fund: Experts recommend building an emergency fund of three to six months’ worth of expenses and stashing it in a high-yield savings account. If you’re self-employed or work seasonally, you may want to aim closer to eight or even 12 months’ worth of expenses.
• Retirement savings: If your employer offers a 401(k) match, you’ll want to contribute at least enough to get the full match, then build from there. One rule of thumb is to work up to saving at least 15% of your pretax income each year, including employer contributions.
• Other savings goals: For other savings goals, such as a vacation, large purchase, or down payment for a house, you’ll want to set a timeline and break down the total amount into manageable monthly savings targets. For savings goals that are five-plus years away, like paying for a child’s education, consider contributing to investment accounts that can potentially yield higher returns over time.
Recommended: How to Set and Reach Your Savings Goals
Tips on Balancing Paying Debt and Saving
If you have high-interest debt under control and already have some cash in the bank to cover a minor emergency (like a car or home repair), consider saving and paying down debt at the same time. Here are some tips to help you manage both.
• Create a budget: A basic budget can help you track your income, expenses, and savings. The key is to allocate specific amounts for debt repayment and savings to ensure both are addressed every month.
• Automate saving: Once you have target monthly savings amounts, it’s a good idea to set up automatic transfers to your savings accounts. This ensures consistent saving without the temptation to spend the money.
• Increase income: You might want to explore ways to boost your income, such as taking on a side gig, freelancing, or asking for a raise. You can then use the additional income to pay down debt faster and/or boost your savings.
• Cut unnecessary expenses: Review your expenses and identify areas where you can cut back. Redirect these funds toward debt repayment and saving.
• Use windfalls wisely: If you receive a bonus, tax refund, or any unexpected sum of money, consider using it to pay down debt or boost your savings rather than going on a shopping spree.
The Takeaway
Saving and paying down debt is a balancing act. Which is more important? There’s no one-size-fits all answer. Generally speaking, you’ll want to fund your emergency savings account and take advantage of an employer match on retirement savings before you aggressively focus on debt payoff. After that, you can focus on saving and knocking down debt at the same time.
Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.
Better banking is here with SoFi, NerdWallet’s 2024 winner for Best Checking Account Overall.* Enjoy up to 4.60% APY on SoFi Checking and Savings.
FAQ
Is it better to pay off debt or have money saved?
You may want to prioritize saving over debt payoff if you don’t have an emergency fund, aren’t taking advantage of an employer’s 401(k) match, and/or have low-interest debts. If, on the other hand, you have a solid emergency savings fund, high-interest debts (like credit card debt), and no employer retirement match, you may be better off focusing your efforts on paying down debt over saving.
How much money should I save before paying down debt?
Before aggressively paying down debt, it’s a good idea to save three to six months’ worth of living expenses in an emergency fund in a high-yield savings account. If you don’t have any savings to draw on to cover an unexpected expense or event, you may have to rely on high-interest credit cards to get by, which would compound your debt.
What bills should I pay down first?
You generally want to prioritize paying down high-interest debt first, such as credit card balances and payday loans, as they accrue interest rapidly. Next, focus on any other unsecured debts, like personal loans, followed by secured debts (like car loans and mortgages), which tend to have lower interest rates.
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SoFi members with direct deposit activity can earn 4.60% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Direct Deposit”) via the Automated Clearing House (“ACH”) Network during a 30-day Evaluation Period (as defined below). Deposits that are not from an employer or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Direct Deposit activity. There is no minimum Direct Deposit amount required to qualify for the stated interest rate.
As an alternative to direct deposit, SoFi members with Qualifying Deposits can earn 4.60% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Qualifying Deposits means one or more deposits that, in the aggregate, are equal to or greater than $5,000 to an account holder’s SoFi Checking and Savings account (“Qualifying Deposits”) during a 30-day Evaluation Period (as defined below). Qualifying Deposits only include those deposits from the following eligible sources: (i) ACH transfers, (ii) inbound wire transfers, (iii) peer-to-peer transfers (i.e., external transfers from PayPal, Venmo, etc. and internal peer-to-peer transfers from a SoFi account belonging to another account holder), (iv) check deposits, (v) instant funding to your SoFi Bank Debit Card, (vi) push payments to your SoFi Bank Debit Card, and (vii) cash deposits. Qualifying Deposits do not include: (i) transfers between an account holder’s Checking account, Savings account, and/or Vaults; (ii) interest payments; (iii) bonuses issued by SoFi Bank or its affiliates; or (iv) credits, reversals, and refunds from SoFi Bank, N.A. (“SoFi Bank”) or from a merchant.
SoFi Bank shall, in its sole discretion, assess each account holder’s Direct Deposit activity and Qualifying Deposits throughout each 30-Day Evaluation Period to determine the applicability of rates and may request additional documentation for verification of eligibility. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the “30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Upon receiving a Direct Deposit or $5,000 in Qualifying Deposits to your account, you will begin earning 4.60% APY on savings balances (including Vaults) and 0.50% on checking balances on or before the following calendar day. You will continue to earn these APYs for (i) the remainder of the current 30-Day Evaluation Period and through the end of the subsequent 30-Day Evaluation Period and (ii) any following 30-day Evaluation Periods during which SoFi Bank determines you to have Direct Deposit activity or $5,000 in Qualifying Deposits without interruption.
SoFi Bank reserves the right to grant a grace period to account holders following a change in Direct Deposit activity or Qualifying Deposits activity before adjusting rates. If SoFi Bank grants you a grace period, the dates for such grace period will be reflected on the APY Details page of your account. If SoFi Bank determines that you did not have Direct Deposit activity or $5,000 in Qualifying Deposits during the current 30-day Evaluation Period and, if applicable, the grace period, then you will begin earning the rates earned by account holders without either Direct Deposit or Qualifying Deposits until you have Direct Deposit activity or $5,000 in Qualifying Deposits in a subsequent 30-Day Evaluation Period. For the avoidance of doubt, an account holder with both Direct Deposit activity and Qualifying Deposits will earn the rates earned by account holders with Direct Deposit.
Members without either Direct Deposit activity or Qualifying Deposits, as determined by SoFi Bank, during a 30-Day Evaluation Period and, if applicable, the grace period, will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances.
Interest rates are variable and subject to change at any time. These rates are current as of 10/24/2023. There is no minimum balance requirement. Additional information can be found at https://www.sofi.com/legal/banking-rate-sheet.
The SoFi Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.
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Every traveler has big dreams about going around the world and touring famous destinations. While this is nice, we have to admit it; it will cost us a lot. Even just going to a different country for a simple vacation can cost you time, effort, and money for only a few days.
You might be one of those people who save up a year prior, but there will always be unexpected expenses we’ll face regularly, and our budget might get affected or, worst, disappear.
However, you can do a lot of things to save up money for your next trip.
Probably the only thing that would be a struggle is discipline and commitment. That is the #1 reason people struggle to save money for anything and why debt is rampant.
Let’s admit it, saving money is easy, but completely committing to it and disciplining yourself is hard. But if you’re keen on these two factors, then saving money will be a breeze.
That said, here are some things you can do to save money for your next trip.
Plus you will learn how to start a vacation fund! All for one purpose to start traveling and enjoying many trips.
How to Save Money For Travel
You might think that budgeting is the key to all this, and you think that it will be complicated because, after all, planning for your next vacation is a big endeavor. Luckily for you, though, these tips are simple and easy enough to do that you can save up money as easily as you breathe.
Plus you will learn how to start a vacation fund.
1. Keep Track of Your Spending
If you’re one of those people who has difficulty keeping track of their expenses, don’t worry, there are plenty of us in this world who have the same problem. So, you might be thinking, what can I do?
The solution for this is simple.
Firstly, go through all of your accounts and see how much you’re spending every day down to the last penny. Knowing your expenses is the most important thing if you want to track how you spend your money.
You might hear this all the time, but a financially responsible person is one who keeps track of their expenses.
It’s cliché, but it’s true.
After seeing your accounts, write all of the info down and categorize them into several categories like food, utilities, bills, entertainment, etc. You might be surprised at how you spend your money on things.
If you have someone you trust with your finances and would prefer someone else to keep track of them, then, of course, feel free to ask them to do it for you.
2. Buy Secondhand or Use Coupons
If you’re planning to buy new stuff for your travels, it’s best if you opt for second hand things such as clothes, shoes, bags, etc.
Buying brand new things will cost you more and will likely cause you to go over your budget.
If you don’t know where to buy them, you can start looking at charity shops and other bargain sales. You might even be surprised to see things that are still good as new but for half the price.
It’s all about finding that bargain, and there are many out there.
In terms of coupons, there are many sites online that offer discount coupons that will let you in on a great deal. Not only that but if you’re struggling with the lodging, there are sites out there that can reduce the price of your hotel with a coupon or a promotion for said hotel. Or if you’re looking to buy a souvenir, you can also find coupons for them. Even your local supermarket will have discounts, special offers etc.
So, just keep an eye out for them. Once you start looking for special offers/coupons, you’ll wonder why you didn’t notice them before.
A great place to start is with the Entertainment Book or Groupon deals.
3. Buy in Bulk
Of course, buying in bulk is not the best option all the time, but if you want to save a few bucks on things you usually use outside of the house like toilet paper or soap, you can buy them in bulk.
It’s the best way to save a few dollars.
Not only that, there are online shops that offer discounts for travel expenses if you buy a lot of stuff from them. If you don’t want to personally go to the store and go back home with a lot of things in tow, you can have them be shipped to your doorstep.
4. Open Up a Vacation Fund
If you’re one of those people who constantly go over your budget and spend the money that is supposed to be for other things, then opening up a savings account might cure you of this disease.
A dedicated account just for your vacation fund.
Yes, of course, this is an obvious tip, but you would be surprised at how many people don’t want to be bothered to open up a new account for savings. Let’s admit it; money can easily be sucked into your everyday life, and having your savings within reach is a bad idea.
After opening up a travel savings account, try to put money into it every day, no matter how small it is.
You didn’t buy your regular coffee from Starbucks today? Put the money in the vacation fund jar. You didn’t eat out today? Put the money in your savings account. Did you manage to save money on your weekly grocery shopping? Put the money in the vacation fund box.
This way, you won’t accidentally use your money for other things.
5. How to Budget for Travel
Making a budget is easy. Sticking to it and making it work is hard.
That said, estimating how much your trip will cost you is a good place to start.
The first thing you should do is estimate how much you will be spending every day and how many people will be traveling with you.
Let’s be generous and say you have a budget of $50 daily per person. However, you have to think of other factors like where you want to travel and how thrifty you should be in your travels.
Do you plan on eating out every day?
Do you plan to visit attractions that cost money?
How do you plan to get from A to B?
These are all things that you should consider when beginning your budget to travel.
Remember how you can find discounts on things you want to buy for travel? You can do that with your accommodation too. There are hotels out there that offer discounts and promotions based on a given circumstance or condition.
For example, some hotels offer discounts for first-timers or if it’s a holiday. If you can find hotels like that, you can incorporate them into your budget. However, you have to consider when the promotions will end. And if you’re planning to incorporate an RV into your trip, you can get help for RV financing with My Financing USA so your budget wouldn’t be strained too much.
Ready to Save Money in Your Vacation Fund?
Saving money for your travels is easy, but completely committing to it and making it work when the time comes can be a struggle. It is like most things in life, it takes time and effort. Make sure that you’re always prepared for emergencies, especially financially.
Remember, if you want to save money, you have to be clever and resourceful, and you have to take advantage of every opportunity to save.
More Ways to Save Money:
The time to start is now.
I hope you have found my tips helpful and I wish you all the best in your travel saving goals. You can do it.
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Author Bio
Lauren Cordell is a freelancer who writes for various financing and business websites. Aside from finance and business, she also writes book and movie reviews. If she’s not writing, you will see her sitting at the corner of a coffee shop reading books.
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