Lazy Man and Money

The Lazy Guide to Budgeting – 7 Ways to Make It Easier to Stick With

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The following is a guest post by Fanny Seto. She is the creator of Living Richly Budget Printables, a 20-page printable bundle and budgeting system that makes it 20-seconds easier to stick to a budget. She is also the Editor-in-Chief of Living Richly on a Budget, a personal finance blog. I met Fanny when I was living in San Francisco and she’s a smart, smart woman. I realize that printable budgets aren’t for everyone, but if you are going to go that route, I’d recommend picking these up. They are gorgeous.

Many people start budgets but they don’t seem to stick with them. Why is that? Because they’re lazy?

I think it’s because they don’t have clearly defined goals. Are you trying to pay off debt, save up for a house, or build a college fund for the kids? What is the exact amount of your goal?

Once you set your goals, then make it easier to follow through with budgeting.

Have you heard of the 20-second rule? It’s a principle from on the book “The Happiness Advantage.”

The idea is in order to make it easier to form a new habit, you make it more convenient for yourself by placing the tools you need within reach. Make something 20 seconds faster to get to and you’re more likely to do it.

For example, to make tracking expenses easier, you use a worksheet that has budget categories and the date already filled out so that all you have to do is fill in a number. Then you place it on the wall next to your desk or wherever it’s convenient for you to fill it out.

Use the 20-second rule for managing money so that you’re more likely to do it. Some of these are obvious but they’re good reminders on how to make budgeting and saving automatic.

Once your systems are set up, you can be lazy and not feel guilty about it.

1. Set up autopay for recurring bills and debt payments.

This is a no brainer. If a utility or other business offers autopay, do it! Not only will you not have to think about paying those bills every month, but you also save on checks and postage.

2. Automate savings from your paycheck.

Set up savings to be automatically be deposited from your paycheck, before you spend it. Otherwise you’re likely to spend that amount on something else.

3. Use a budget with categories filled out for you.

I like low-tech when it comes to budgeting. I use Living Richly Budget Printables, a budgeting system that I created. to stay on budget. With a printable budget, I can post this on the wall or fridge to remind myself to stay on target.

Even though everything is online nowadays, I don’t always have time to turn on the computer with my toddler running around. Having a worksheet on my desk, makes it 20 seconds easier for me to fill out and keep up with.

4. Track expenses with pre-filled expenses and date.

I used to use Mint. However, I found that since it’s done for you, when I check my expenses, it’s a little too late. What’s spent is spent.

What I mean is that when I actively write down my expenses, I tend to spend less. Since I know I have to record my spending, I am more conscious about spending. It’s a guilt trip thing that works.

Again, I like to do this on a worksheet, the Daily Spending Log (part of Living Richly Budget Printables) since it’s easier to access without having to turn on a computer. And the categories correspond to my budget so after the month is done, it’s easy to transfer the numbers to the monthly budget.

5. Keep a list of monthly and non-monthly bills and when they’re due.

Ideally, most of your bills will be set up on autopay already. It’s also a good idea to have them listed on one sheet with the day of the month they’re due. This way you can be prepared for them and you won’t have to dig through a pile of bills to figure out the due date.

6. Store credit card and bank logins in one place.

Managing multiple credit cards and bank accounts can be overwhelming at times. Put all of your login info in a secure place so that when you need to pay bills or check balances, it’s 20 seconds easier to get to.

7. Use cash.

There are some things I use cash for to really adhere to a tight budget. Groceries and eating out and get out of hand. With cash, you’re limited to what you have. Once it’s spent, it’s spent.

Other things I will use a credit card to pay for like gas. This way more convenient especially if you have kids.

The Rise of Fast Casual Dining

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The following is a guest post from reader Dave Clark. I’m getting interested in the franchise business space (though not likely food) and this article seemed appropriate. Personally, I love Chipotle. The wife is more a Panera person.

A new trend for eating out is emerging and beginning to attract the attention of consumers and investors alike. A shift can be clearly seen away from traditional restaurants and towards restaurants offering a fast casual dining experience. According to industry expert and NPD restaurant industry analyst Bonnie Briggs “Fast casual concepts are capturing market traffic share by meeting consumers’ expectations, while midscale places continue to lose share.” Openly acknowledging how fast casual food is gaining success at the expense of other dining experiences.

It is not just traditional dining experiences which are under threat from fast casual however; fast food is also suffering as a result. Over the last few years fast food has been suffering from something of a PR crisis anyway, the association of fast food with unhealthy food is leading companies to attempt to rebrand themselves as “Quick Service” establishments, although whether the public will catch on is doubtful. This rise in fast casual dining can only worsen the situation for fast food, as this is a new trend coming in with none of the bad associations. The growth of two of the US market leaders – Chipotle and Panera Bread – has outperformed that of McDonald’s. The growth of these two leaders’ top-line revenue has been 133% and 75% respectively over the last five years compared to McDonald’s 22%. This gives an indication of the increasing trend towards fast casual, while showing fast food is not growing as quick.

The reason why many people are increasingly going to fast casual dining establishments is that it is seen as the best of worlds. With better service than fast food and the lack of association with un-healthiness, it is also seen as a more affordable option than standard dining. This may be why in America visits to fast casual dining restaurants rose by 8% in 2013, while the year also saw an impressive 10% increase in spending when measured next to the 2012 financial year. There is also solid growth in the sector as shown by a 6% US increase in the number of fast casual units in 2013, it is clear that if business’ were struggling there would be cut backs, whereas this growth only indicates the promise which has been seen. This trend is also seen in the UK with two restaurants chains, The Giggling Squid and Wahaca, opening multiple locations across the south of the country; as well as companies such as McCain launching products especially for the casual dining sector.

With these factors in mind it looks like 2014 will see a continued increase in the size of the fast casual sector, with both the traditional and fast food restaurants suffering. While other factors may lead to this changing over the next year, indicators suggest that this will be a big year for the industry.

Factors To Consider When Making Money Working Overseas

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The following is an article by Justin Grossbard from 457VisaCompared. I invited him to discuss the financials involved with looking abroad to work and moving overseas. A few years ago I read from a personal finance blogger (I forget who) that you can make a lot of money overseas.

Many of the world’s great entrepreneurs and successful business people are those who not only find opportunity domestically but also abroad. While it’s common for multinational companies to send individuals overseas for temporary posting, another growing trend has been professionals moving to countries on skilled visas such as the UK’s HSMP visa or Australia’s 457 visa. When considering making such a move, it’s important to weight up the key elements which are discussed below.

Ease Of Receiving The Working Visa In The Host Country

Surprisingly worldwide immigration even for skilled individuals is very limited with many countries remaining virtually closed to prospective employees. While a visa such as the HSMP UK will allow an individual to move to the UK and then find a job, other schemes such as the 457 visa in Australia require you to find an eligible job first. Some countries migration scheme’s will also favor prospective workers from one area compared to another, so it’s important to first understand if you can get an actual visa first before researching further.

Ease Of Getting A job In The Country Chosen

A common mistake is individuals who move to a country only to find out that either they can’t find a job or that they are earning relatively less than in their home country. Going to the international labor organization website can be helpful to understand wage levels combined with local job sites. It’s critical to also factor in the cost of living as well naturally. Additionally, the unemployment rate and the demand for jobs in the area you are skilled in must be factored in as most countries will pay no unemployment benefits while you are looking for a job.

Hidden Immigration Costs

It’s critical to understand the true cost of becoming a working visa holder in a host country. An example is health insurance with 457 visa compared highlighting that for a family in Australia has to pay up to $300USD. Migrants also are not necessarily going to receive the same entitlements as locals such as school fees with cost skilled migrants $4,000 per child in Western Australia.

Ability To Gain Permanent Residency

While your move abroad may be purely financial, it’s important to think long-term as:

  • You may like the location you have moved to and want to live in the are permanently
  • Your pay may increase over your stay and it may be a financially poor move to relocate back to the country of origin

Working visa’s will vary in length with some allowing extensions while others will allow the visa holder to become a permanent resident. It’s really worth researching these areas as the last thing anyone wants is to move back home only because of a visa requirement. Employers may also be less willing to hire an applicant which can only work in their country for a set period.

Overall, any working professional should keep an eye on opportunity and consider relocating if the opportunity presents itself. Working overseas can be  a lucrative one and enjoyable but extensive research should always be done first to ensure its right for you and worthwhile.

8 Tips Everyone Should Know About Home Insurance

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[The following is a guest post by Annie Davis.]

So you’ve finally made your first huge purchase — a home. Congratulations! What’s the first thing you should do? Protect your property, of course. Purchasing home insurance is the best way to protect yourself against the elements and other disasters. There are a few things that everyone should know about it, though. Here are a few tips that everyone should know about home insurance.

Understand What it Covers

Photo by James Thompson

The very first thing you should do when looking at an insurance policy is find out what the insurance policy covers. The policy, of course, covers things such as fire, storms, theft, and more. If you’re displaced from your home, you’ll be covered. Did you know that your homeowner’s insurance can cover things outside of your house?

If something is stolen from your car, don’t depend on your auto insurance. Your home insurance policy will likely cover anything taken from your car.

At the same time, understand what your policy doesn’t cover. Most policies won’t cover flood or earthquake damage as a standard item if you live in a high risk area. These scenarios require policies that must be purchased separately. The same could apply for anything else, such as jewelry, furs or artwork.

Check to see if your insurance company offers these types of policies, and, if necessary, purchase them separate from your home insurance.

You Should Shop Around

Shopping around for your policy is important in finding the most coverage for the best price. If something were to happen, you’re going to need someone you can depend on, so make sure to go with an agent that comes highly recommended. There’s nothing worse than experiencing a tragedy and having an agent come out and tell you that you aren’t fully covered.

How to Reduce Your Premium

It’s important to maximize your discounts on your insurance premiums. Are you aware of all the different ways you can get a discount on your home insurance? If your property is gated, you can get a reduced premium. If you install other security measures, such as deadbolts, security cameras, alarms, or anything else, you can get a reduced premium. Adding an alarm that can directly communicate with the police and fire departments can earn you up to a 20 percent discount.

The less risks you have, the better. Do you have a pool? Put a fence around it. Little things around your house can lower your premium. Once you’ve installed all the security measures that you can think of, check out homeownersinsurance.com to compare rates and get quotes.

Don’t Wait to File a Claim

Examine the policies to determine the time limits to report any damages. The last thing you want is to wait too long and not be covered. Commit the time limit to memory. If you decide to report the problem after the date, you’re completely out of luck.

Note the Limitations

When signing up for a policy, it’s important to make note of how much the policy covers. You’ll be out a serious amount of money if the item lost or damaged exceeds the amount of money that the policy covers.

Keep Detailed Records

It’s extremely important to keep detailed records, including receipts, contracts and appraisals. If you have a smartphone, you can use an app to record phone calls. Keep digital copies if possible, they’re small and can be backed up remotely. The last thing you want is for a claim to not pay out based on your lousy records.

If you do decide to keep physical copies of everything, make physical backups of everything. Store them safely in fireproof cabinets or safes. In the event that something happens, you want them to be retrievable.

Bundle Your Policies

Consider bundling your policies. If you have multiple policies with one company, you could be eligible for a discount. If you hold these policies for three to five years, you could be eligible for a five percent discount, and if you hold the policies six years or longer, you could save up to ten percent on your premium.

Pay Attention to Inflation

It’s important to keep up with inflation. The same house that cost you $75,000 a decade ago may cost you $110,000 to replace today. Talk to your agent to determine whether the coverage amounts still apply, and add any improvements to the total.

No matter if you’re a first time buyer or have owned multiple homes, these tips can help everyone. Utilize them and get the most out of your coverage for the best price.

Five Apps to Help Guide Your Retirement Savings

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Image via IntelFreePress
[The following is a guest post by Anne Davis. Since my smartphone of choice is still the Palm/HP/LG webOS and no one creates apps for it any more, I’ll take her word on these. All bets are off when the Nexus 5 gets released (likely this month).]

While planning for your retirement can be a daunting and time-consuming task, there’s no reason you have to tackle your financial planning on your own. With all the affordable programs and mobile applications on the market, there’s a nearly endless number of ways you can start crunching your financial numbers today. Here’s a list of the five most helpful apps to guide your retirement savings.

Retire Logix

One of the best apps for retirement planning is Retire Logix, available for free on Apple, Android, and Windows devices. It was named in Money Magazine’s “100 Best Money Moves,” and is only $1.99 for the app’s Pro Version.

Basically, Retire Logix is a financial calculator that shows how different types of income might cover your retirement expenses. By approximating your income, it creates easy-to-read charts that explain how ready you are for your future financial independence. Additionally, the app’s calculators automatically adjust for factors such as inflation, and the Pro Version comes with a built-in Education Planner for determining college expenses. This feature makes it an app perfectly suited to younger users, but older adults can benefit from its many features as well.

RetirePlan

RetirePlan is a retirement app for Apple devices, which can be downloaded for free in the iTunes store. It’s an application that’s truly geared for financial planning novices, and it can answer almost any question you have about your retirement. Want to know when you can finally retire? Need to decide how much money to save every year? If you want an app with everything short of a personal accountant, RetirePlan is for you.

The setup for RetirePlan is simple, requiring basic data such as your age, expected retirement age, and life expectancy. The app’s calculators then create spreadsheets showing your retirement figures, which you can have sent directly to your email inbox. Additionally, RetirePlan is customizable: you can adjust for having a spouse, for Social Security, and even for inflation and interest rates. Its slider bars also allow you to instantly tweak your plan, and you can even add in factors such as pensions, children’s college funds, and large upcoming expenses.

Stan

Stan is an app for those seeking help with Annuities. As one of the few pros and cons of annuities resources available for a smartphone, this app shines. With this app, you’ll be able to have important information at your fingertips whenever you need it. You can download Stan’s book within the app. The book describes the types of annuity products, how the products work, and how you can properly utilize annuities to achieve financial goals.

Retirement Planner (Adonis Apps LLC)

Better than many other apps of the same name, Adonis Apps’ Retirement Planner is one of the best apps available for planning your financial future. It works on almost all Android devices, and is completely free and ad-supported.

Retirement Planner can help you answer many of the same questions as RetirePlan, as well as many more. Are you trying to decide between a Traditional and Roth 401(k)? What about an IRA? Do you want to know how much you’re getting from your 401(k) employer contribution? Retirement Planner not only answers all the usual retirement questions, but can help you solve these more nuanced questions as well. It’s truly a must-have app for any Android user’s financial planning needs.

SmartMoney Retirement Planner

The SmartMoney Retirement Planner is another free app for Android, which was once voted App of the Month by the American Association of Individual Investors. It’s perhaps the most customizable retirement app on the market, allowing for inputs such as 401(k) employer contributions, pensions, one-time gains, and Social Security benefits.

Similar to some other apps, SmartMoney Retirement Planner projects your retirement based on your age, income, and retirement age. It also allows you to adjust for assets, tax rates, annual savings, and a host of other factors that will affect your retirement funds. After SmartMoney adjusts for your retirement spending (housing, transportation, medical, etc.), it creates graphs to show you whether you’ll have enough to retire at a certain age. If your money falls short, it also offers solutions to help you meet your retirement goals.

In today’s technological landscape, it makes little sense not to take advantage of the many programs and mobile apps available. If you’re thinking of planning for your retirement, these five apps are sure to get you started on the right foot.