5 Luxuries You Can Do Without (And Not Miss)

Image via WikipediaThink back to when you were a kid. What did you have? What didn’t you have? Now, think about what you have now. What do you have that, in reality, you don’t need? As technology has progressed, we have found more and more luxuries become necessities. But is that necessarily true? Do we need everything we think we do? What can you cut out of your budget and never even miss? 

Well, here are five luxuries you can do without. Best of all, you won’t even miss them!

1. Cable television –Everyone has a computer. And I’m not saying it is a luxury (though, in a way, it is). But since you have a computer, why are you paying for cable television? Everything you watch on TV can be found online, and for a lot cheaper. Weather you subscribe to Hulu Plus or Netflix, you can have streaming TV come to you. Best of all, no more commercials. Want to cut down even further? Well, a lot of TV stations now have the latest episodes of their shows on their website- for free! If you already own a flat screen TV, chances are that it can be hooked up to the internet. There are many ways to do that, from being info directly from your computer to inexpensive set-top boxes. Whatever the case is, you’ll save hundreds of dollars a year just cutting the cord.

2. SUV –Do you still have an SUV? What do you need it for? It’s doubtful you are dragging around more than three kids at a time, and that tank is sucking up gas like a camel in the desert. If there is no real, concrete reason for you to have an SUV; get rid of it! And don’t give me any guff about needing to haul stuff. Cars now come with foldable back seats and roomy trunks- big enough for the Christmas tree to ride comfortable. Get yourself a car with good gas mileage and save thousands.

3. Smart phone – Do you have a computer? Sure you do! So, why do you need a smart phone too? Remember the days when having a phone meant you stood next to the wall in the kitchen to talk? Or had a machine to answer when you weren’t home? Remember when you were not available twenty-four hours a day and didn’t check your email every five minutes? Get some peace and quiet back in your life and save money too. Switch your cell to a regular, everyday variety. No internet. No touch screen. Just voice and text. Think about it; do you really need, or want, to be online twenty-four/seven?

4. Bottled water –Not only are you being environmentally irresponsible when you buy bottled water, but you are being financially irresponsible as well. Think about this: over 80% of bottled water comes from tap water. That means what comes out of your sink goes into a plastic bottle and you pay extra for it. Don’t waste your money. If you have an issue with plain tap water, or live somewhere where the water’s not so great, buy a filter and stainless steel bottles. You’ll save money and room in landfills.

5. Coffee– Do you really need that four dollar cup of coffee every morning? I think we all know the answer to that question. If you can’t live without your caffeine fix, buy a travel mug and make your own. Coffee makers can be timed and ready for you every morning. If you crave your Starbucks, buy a bag at the grocery store. You’ll save money, time, and your waistline. Oh, what does your weight have to do with it? Just think about what you add to your coffee and you’ll understand. When you make it for yourself, you are virtually guaranteed to drink healthier.


There are many more luxuries out there, and you know what they are. Take a second look at your checkbook and see if you can’t cut a few things out. Most of the time, you won’t even miss them.

Author Bio:-

This is a guest post by Coleen Torres from phone internet. You can find more about her at her profile.

Older Workers Spend Less and Save More

Image via WikipediaIsn't it great when something you know is true is proved in a survey. On AARP.org there is a great article about how older workers spend less on lunches and coffee than their younger co-workers. Older workers not only spend less money on lunches but they spend a lot less.

The survey taken by recruiting and staffing firm Accounting Principles shows younger workers ages 18 - 34 spend almost twice as much on coffee than workers 45 years and older. According to the Workonomix Survey, they also spend about 40 percent more on lunches. Even though older workers are earning more money they actually spend less than their younger coworkers.

The average U.S. employee spends nearly $3,000 a year on coffee and lunches at their job. This statistic should be an eye opener to what's going on in your daily spending. Even if you just cut that number in half you would have so much more money to save toward your retirement fund.

If you are starting now in your 50's and 60's to save $3,000, at the end of ten years you would end up with a tidy sum in your IRA. Using the AARP lunch saving calculator at the end of 10 years with an 8 percent rate of return you would have $12,690. The big payoff goes to the younger worker who starts to save this way now. 

Try AARP's lunch savings calculator to see how much you could save by bringing your lunch from home.

Check out: Study: Older Workers Spend Less. And You? at AARP.org

Rebuilding Your Financial Plan After Recession

Image by 401K via Flickr

The last recession has caused a reset to the spending and saving habits of most people. It has been a wakeup call not only for the folks nearing retirement but also the those still in their accumulation years.

If you're already in your retirement years you probably are already in balance with your income. Out of necessity your living expenses are in sync with your social security and pension fund benefits. Thankfully, Social Security benefits will rise 3.6 percent in 2012 and also many inflation linked pensions will rise also. Between 2007 and 2011 median household income for people 65 and up increased by 5.5 percent per year, while income for every other age group declined. In 2010, 9 percent of people 65 plus years old live in poverty compared to 13.5 percent for those 18 - 64.

Those with the most financial problems is the 50-plus group. Their investments took a big hit but are slowly recovering. Many lost their jobs and used up their savings just to make it through. An AARP survey found that 25 percent of the 50-plus adults used up their savings between 2007 and 2010. This group is the hardest hit because they have no retirement savings. Some are working hard to recover but sadly many never will.

What can you do?

Debt and high expenses are the curse the 50-plus group has to overcome. Many families still have children in college which diverts money away from retirement. The costs of a larger home, than would be necessary in retirement, only adds to the problem. So creating a plan is critical.

Housing is one of your most expensive costs. Having a plan to reduce costs should be at the top of your list. Downsizing is the quickest way to do this. Many real estate professionals say by the end of 2012 the bulk of the housing markets will be stabilized and start to see improved prices. Prepare for the rise in home prices by planning to sell in 2 - 3 years. Start today to prepare your home by painting and remodeling. Though you can't predict where we will be in 3 years, you still have to stay in budget, keep saving and investing at the same time.

Saving for retirement is still important and really the only way to get a decent return on your money. In a world of less than 1 percent savings instruments at your bank, an 8 percent return is possible with equities and bonds. A diversified portfolio and patience will take you to where you need to be. With stocks and their dividends providing a return of 5.3 percent a year for the past 15 years, it's important to not ignore equities.

Time of transition.

Most people were effected by the recession. But there were many who weren't. Why. They were prepared. They had a plan and a way of life where they are only slightly felt the effects of recession. We need to take a lesson from them. They lived with spending less than they made and saving the rest. They stayed away from debt and were ready for the storm. They were prepared.

5 Problems With Mixing Business and Friendship

Image via WikipediaIn our lives we find so many ways to mess up with our money. With mistakes in judgment we are able to lose large amounts of money and with the money sometimes we can lose our friends. The way we lose both is when we go into financial relationships with friends or relatives. It may be a spur of the moment idea or a well thought out plan. Either way things can go wrong and they usually do. I have listed 5 ways they usually go very wrong.

Co-Signing for a loan.
The reasons for co-signing a loan for a friend or relative are many. It all starts when out of the blue you are asked to take part on a loan because the person can not be approved for the loan on their own. So you are asked to co-sign to help out the person. All kinds of promises are made about how it will be no problem for the friend to pay the loan back. They make plenty of money, but their credit is bad, so a little help is needed. You feel a little pressured because if you don't help your friend, they will not be able to get the loan.

For the friend, the deal is a no-brainer. It's all good because they will be able to get the loan and whatever they need to purchase. For the co-signer it may not be so good because they are on the hook for the full loan amount if the friend doesn't pay. If the friend doesn't pay, you can be sued for the loan balance and your credit will be effected greatly. Remember, the loan company did not give credit to the friend, because according to a credit report the friend does not have the ability to pay the loan back. Sure there are instances when all will go well and the loan will be paid back on time. But the loan may not be paid back sometimes, too.

What is your relationship to your friend worth? Will it end if the other party bails on the loan and you're stuck paying it back. No relationship can survive such a terrible blow. The best thing to do is say no to the loan. Your friend may be mad at you for a while, but the friendship will stay intact.

Renting to a Friend.
The scenario is you own a rental unit. The tenant is moving out. Your friend or relative needs a place to stay. Do you rent to them? Is it a good idea?

If you weren't renting to a friend and you just had a regular tenant you would make sure the potential tenant has a job, an ability to pay, you would have a proper lease and deposits. It would be all very business like. The tenant would know what's expected and the landlord would know what's expected. But what if you rent to a friend or relative? Would the same business like relationship occur. Renting is a business and has to be run like a business. The friend has to know they will be treated just like anyone else.

The problem with renting to friends is they sometimes think they can take a little advantage because of the friendship. They may be late on the rent or not pay a proper security deposit. They may not keep the place up as well as other tenants do. The possibility of misunderstanding is increased because of the blur of the friend/landlord line.

It is possible to have a good experience when you rent to a friend but the odds are, something will go wrong and you could suffer a falling out. Why take the risk?

Selling a used car to a friend.
This is an example of a disaster waiting to happen. You have a used car that you want to sell because you want to buy a new one. A friend or relative is need of a car. It's a perfect match. It's good for the seller because you are going to quickly sell the car. For the friend they have a car they know something about and may have already driven in the past. It's good for both parties, or is it?

Soon after the car is sold the transmission or brakes go out. What do you do now? If you sold it to a stranger you may get away with not paying for requested repairs. But with the friend, you are obligated out of friendship to make things right. If you don't the friendship could be destroyed.

What's the odds of a used car breaking down? I think the odds are pretty high something will break. Why take the chance of damaging a friendship. Sell the car to someone you don't know. If you do sell to a friend then be ready to make things right, just in case. The friendship is worth more than the cost of car repairs.

Going into business with a friend.
You and your best buddy have a incredible business idea. You decide to form a business. Good idea or bad? In a partnership, many expectations are formed by both parties. Also many questions need to be answered like who does what? Where does the money come from to operate? Who holds the check book?

This relationship is the hardest of all the examples listed. When things are going well in the business nobody complains. Difficulties arise when thing don't go so well. They may occur when one partner loses interest or thinks they are doing all the work. There are many ways for one or both partners to become disgruntled. This can ruin a business and destroy a friendship.

Sometimes partnerships work if all specifics are spelled out. But it can be almost impossible to keep each party happy. In this case everyone loses.

If you must be in business with a friend it's best to lay out all the details of the business and as much of the contingencies as possible. Having a 50/50 partnership doesn't have to be the way to proceed. It's better to make the stronger business person owner of the company and make the other person on a profit sharing plan or other agreed upon compensation plan. This way both parties are able to walk away from the company if they want. It's better this way because a friendship is worth more than any business.

Buying a vacation home together.
It usually starts with a couple of old friends going on vacation and discovering a great vacation home. Separately they can't afford the purchase but together they can. They purchase the home by either getting a mortgage together or using cash. Just like the business example, they are legally locked in together. It's like a marriage. And like a marriage it sometimes ends up in divorce. Suppose one of the friends doesn't use the home as much as the other or doesn't help in the maintenance or expense. These and many other reasons cause problems where one party wants out. It's difficult to divide the house in two and separate.

An alternative would be for one party to buy the house, if they can afford it. Then with the other party figure out some type of compensation for using the home. The stronger party with interest in the home should be the one to own the home. So when either party loses interest or the friendship breaks up no harm is done. The one that owns the house can sell and the other with no legal links to the home can just walk away.

With any joint venture all details must be worked out between the two parties. It's always better to make one partner the legal owner of the items in question and the other having a favorable compensation plan. Plan your business and plan to keep your relationships strong.