My wife and I began thinking about the possibility of paying off our mortgage in 5 years after we heard of other people doing it. I know in my immediate family, no one managed to pay off their mortgage when they were young, but did that mean we couldn’t do it?

Was Paying Off Our Mortgage Actually Possible?

When we first started thinking about it, we had a traditional 30-year mortgage, and the monthly mortgage payment was reasonable. We really had no trouble making the mortgage payment, but we certainly didn’t have a ton of extra money lying around.

I was big into finance years ago, and I read about how much money you could save if you were to refinance your mortgage to a 15 year fixed rate. That would mean our mortgage would go up to possibly more than we would like to pay, but much more money would be going to principal rather than interest.

Well, about five years ago we did just that. We refinanced to a 15-year fixed-rate mortgage and decided we would do everything in our power to pay off our mortgage in 5 years or less. We decided to take on this lofty goal and eliminate our mortgage to pay for things that added value to our lives – like more vacations!

We Did It! We Paid Off Our Home!

I’m proud to say that just before our five year refinance anniversary, we were able to pay our house off at 36 years old! We did this as a family of five on a single income. We were able to do it by living a frugal lifestyle, buying used instead of new, and keeping our mortgage payoff in the front of our minds.

In this article, I will give you some tips on how we were able to achieve this goal, and how you can also!

Should I Pay Off My Mortgage Early? Pros And Cons

Many financial planners have clients that ask, “Should I focus on paying off my mortgage early?” The reason many people hang on to their mortgage and make the monthly payment for thirty years is they think they need the mortgage interest deduction as a write off (unfortunately, these tax writeoffs are no longer beneficial – check out this related article).

The other reason they give is that they cannot possibly squeeze another dime out of their budget to pay it off early, even if they wanted to. If you think about it, these “reasons” are actually excuses. Mathematically, wouldn’t you be better off with no mortgage rather than a tax write-off of the interest-only? The more years you pay, the less interest there is, so the smaller your deduction.

Also, EVERYONE, including me, can squeeze a few extra dollars out of their budget, and every little bit helps.

Deciding If It’s Right For You

When my wife and I sat down and discussed if we should try to pay off our mortgage early, the answer was a resounding “YES!” First, the more debt we have, the more risk we have.

Suppose you lost your job. You would first worry you could not pay the mortgage, right? If you had no mortgage, you would be in a much better position for years to come.

Second, a 30-year mortgage is just depressing. We didn’t like the thought of making significant payments to a lender for most of our adult life.

Suppose you purchased a home the day after you graduated from high school, and you took out a 30-year mortgage. You pay the bill dutifully for the length of the loan. You would be nearly 50 years old when you make the last payment.

That is a LOT of years in between!

Why You Should Pay Off Your Mortgage Last

Although we wanted to focus on paying our mortgage off early, we also realized we should start paying down our mortgage after everything else was paid off. Luckily, we started our debt-free journey years ago and were able to move on to our mortgage goal.

If you are like most Americans, you may have credit card debt, student loan debt, and car debt. You should pay these off before you begin throwing extra money at your mortgage.

Suppose you do the opposite – start paying more on your mortgage, every extra cent you can find. Then you have some type of emergency that causes you to be out of work for eight weeks. Your income is radically cut in the short term, and even though you will be back to work in two months, how will you pay your bills in the meantime?

Do This Before You Pay Extra

After you have an emergency fund, begin by paying off your non-mortgage debts, so you will have your income “freed up” to apply to your mortgage.

Suppose you have paid all of your debts except your mortgage. Time to throw every dollar that way, right? Not so fast. You should also be investing money for retirement at a rate of 18% of your income. You do not want to get to retirement age years down the road and have a paid-off house but no nest egg on which to live.

So, after you begin investing at a rate of 18% of your income into retirement accounts, THEN start throwing every extra dollar at the mortgage.

Why You Mathematically Should NOT Pay Off Your Mortgage Early

Mathematically, it doesn’t make sense to pay off your mortgage early. With historically low interest rates (hovering around 3%), it seems almost foolish to spend extra money to pay off your home early.

Think about it – you could invest your money in an S&P Index Fund in the stock market and make an average of 8% each year. That’s a 5% difference between spending the money to get rid of a 3% interest rate on a mortgage versus investing it and making 8%.

Figuring In Financial Independence And Financial Security

However, the above scenario focuses entirely on a mathematical perspective. The calculations make sense mathematically if you ignore the curveballs life throws at us. If you invest your extra money but lose your job and can no longer afford your mortgage, the mathematical formula goes out the window.

My wife and I chose financial security rather than increasing our net worth. We did this by maxing out our retirement fund first and then spending every extra cent on paying off the mortgage.

I would never advise you to pay off your mortgage before investing for retirement.

By going this route, we wasted five years of extra returns – but now we have no mortgage and can delegate even more money into investments.

To top it off, if I suddenly lost my job, I could get a minimum wage job and still not have to worry about moving or affording our house payment. To us, this financial security is worth its weight in gold.

Understand Your “Why” And What A Mortgage-Free Life Would Look Like

Dream for a minute. What would your life look like if you were not making a mortgage payment every month for the next several years or decades? A mortgage is typically the most substantial bill in anyone’s budget, and it can be difficult to imagine what life would be like if you kept that extra money rather than sending it to a mortgage lender.

But think for a minute: What could you and your family DO with all that money? List as many things as you can think of. I bet that list would be a mile long.

Now, which of those things are most important to you? Giving generously to others? Leaving a financial legacy to your grandchildren? Retiring early? Traveling the world with your spouse?

Select two or three of the possibilities that are the most meaningful things for which you would sacrifice. These are your “why.” If, for example, being able to travel whenever you wanted and leaving enough money for grandchildren to have a “jump-start” in adulthood, that is the WHY – your reason for eliminating your mortgage so you can build wealth quickly.

How To Pay Off Your Mortgage In 5 Years (or less!)

Simple Ways To Pay Off Your Mortgage In 5 Years Or Less!

Suppose that in your mail today, you received an invitation to a class reunion. It is three months from now and you would love to go. But one of your first thoughts is: I really need to lose 15 pounds before then. So, what do you do?

You set a goal. You select a date (3 months from now) as your “finish line” for reaching your goal.

The same is true for anything that you want to do financially, such as paying off your mortgage early, years in advance. Set a date for five years in the future and display that date prominently – on your bathroom mirror or your refrigerator door, somewhere you will see if every day. This will help you stay focused on the goal and motivated to reach it.

As you know, merely setting a goal and being motivated doesn’t ensure you reach it. Below you will find 17 actionable ways to pay off your mortgage in record time!

17 ways to pay off a mortgage in 5 years infographics

1. Create A Monthly Budget

Do you have too much month at the end of your money? Do you ever look into your wallet and wonder where that money has gone? We have all had this experience at some time or another, and we don’t ever want to again!

The best way to ensure that you know where your money is going is to create a budget. Most people think of the word “budget” as a restriction – someplace to list all of your debts and bills that have to be paid with no regard for having a life.

It helps instead to view a budget as a spending plan. In a spending plan, you PLAN how you will allocate your take-home pay. Do you HAVE to spend $200 per month on ballroom dancing lessons? If the answer is yes, put that in your budget and find other places to trim down if you need to.

Creating a thoughtful, complete spending plan allows you to know exactly where your money is going each month so you can tackle that mortgage faster.

2. Purchase A Home You Can Afford

Suppose that you decide to buy a home. You cleverly go to a mortgage company to obtain pre-approval for a mortgage, so that you know the “ballpark” you can spend. You are absolutely amazed when the mortgage broker comes to you with a number approximately double what you expected.

“What?” you think, “I can buy a $450,000 house with an income of $40,000?” It shouldn’t be surprising that mortgage lenders will provide you with a very large pre-approval amount in the hope that you will take out a $450,000 loan with them rather than a $200,000 loan. That’s how they make their money!

While I suggest using a real estate agent for property purchases, realize that their commission is tied directly to the final price you pay for the home.

Although we would ALL love to have a giant house on the lake, it simply is not realistic to think that we can all afford it.

So how much house CAN you afford?

First, consider your take-home pay. If your mortgage took up half of that amount, how would you pay for other essential things like food, clothing, and keeping gasoline in the car? A good rule of thumb to help you get a “ballpark” idea of how much you can spend on a mortgage is to look for one in which the monthly payment is no more than 25% of your take-home pay.

So, let’s say that your take-home pay is $3,600 per month. One-fourth (25%) of that amount is $900. So, for your finances to remain manageable, you should purchase a house for which the mortgage is no more than $900 per month. That way, you can still afford to eat, go on a vacation from time to time, and purchase braces for your youngest child.

3. Put Down A Large Down Payment

large payment

Some mortgage companies draw people in by promising mortgage approval with a very low down payment, sometimes as low as 3-5% of the purchase price of the residence.

Although this may seem attractive initially (and allow you to get much more house – see the warning above!), it really is a poor financial decision to obtain a mortgage in which you put down a small amount. In reality, you should scrape together as much as you possibly can to make the payments smaller and get you closer to paying off your home faster.

If you were to offer a 20% down payment, you can avoid PMI – private mortgage insurance. PMI is a type of insurance that protects the mortgage lender if a homeowner defaults on the mortgage. So, with PMI, a portion of your mortgage payment goes towards an insurance premium that is put aside to give the beneficiary (the lender) protection if you should default on your loan.

If you put down 20%, you avoid PMI altogether, which results in major savings for you. You could use that PMI amount to pay down your mortgage even faster.

4. Downsize To A Smaller Home

Save up for a new home!

We have talked about the lure of buying a large home. It isn’t unusual to see an empty-nester couple in a 3,500 square foot home or singles in a 2,200 square foot townhome. It is human nature to want to buy a larger home than we need; either we want “room to spread out,” or we want to “keep up with the Joneses.”

However, one of the challenges we often fail to consider is the added expenses we incur with larger homes. For example, how much do you think it costs those empty-nesters in the large house to heat and cool such a big space? If they have a large yard and need to have landscaping done regularly, that is also a significant expense that adds to their housing cost.

In reality, if they could manage to live in a home half the size, they could save significantly by downsizing. There are many positives to downsizing, including being able to minimize the large number of items that we have collected through the years, in addition to the savings we could realize by living in a smaller home.

5. Pay Off Your Other Debts First

The main key to paying off your mortgage quickly is to make big payments on it. Have you ever looked at your credit card statement and noticed that if you simply pay the minimum and don’t charge anything else to add to the balance, it will take you approximately 17 years to pay it off?

Just like a credit card, if you simply make the minimum payment on your mortgage, you will be paying on loan for many years, if not decades.

To be able to make hefty principal payments on your mortgage, you should eliminate all of your other debt first. Can you imagine how much you would be able to throw at your mortgage if you had no credit card debt? No student loan debt? No car loan? If you are like most Americans, the amounts of those other debts will allow you to pay off your mortgage faster than you thought possible.

So get busy paying off your other debt. Noted financial guru Dave Ramsey suggests listing your debts smallest to largest and paying extra on the smallest one until it is done. Then take the money you were paying on the smallest one and add that amount to what you are paying on the next smallest one.

This “snowball” approach allows you to keep constant momentum. As you attack the larger debts, you have a larger amount to pay toward it.

6. Live Off Less Than You Make (live on 50% of income)

The biggest personal finance challenges that we face tend to be attitudes characterized by two acronyms: YOLO and FOMO (Fear Of Missing Out). YOLO, or “You Only Live Once,” allows us to permit ourselves to be a little reckless with our finances. Do you want to buy that Porsche? Well, go for it! You only live once!

FOMO, the “Fear of Missing Out” is similar. All your friends are going on a cruise for your bestie’s 50th birthday? Well, you HAVE to go – you don’t want to miss out!

Unfortunately, although these feelings are human nature, they certainly do not help our financial situation. We may think that we work hard, and we deserve to spend all the money that we have left after the bills are paid.

However, if your goal is to pay off your mortgage in five years, you may need to make some choices that allow you to live off less than you earn. WAY less than you make – for a short amount of time. The best-case scenario is to live on 50% of what you bring home. Then you could use the other 50% for the extra principal.

You could either be “super broke” for a short amount of time to pay off your mortgage, or you could just be plain “broke” for the rest of your life. It certainly won’t be painless, but you can live off much less than you think.

7. Decide If A Refinance Is Right For You

decide refinance

Many owners opted for a 30-year mortgage when they purchased their home. However, if you calculate the monthly payments on a 15-year-mortgage, you may find that it is do-able for you.

Refinancing can make sense if you can get a lower mortgage interest rate. When that happens, more of your payment is applied to the principal, and you pay thousands and thousands less interest over the life of the loan. You might consider refinancing to a 15-year, fixed-rate mortgage to cut the length of your loan in half like my wife and I did.

Historically Low Interest Rates

With historically low interest rates, refinancing to a lower interest rate and shorter term may be the perfect scenario for you. Depending on your current interest rate, you may be able to cut your loan term down to 15 years without noticing a change in payment.

This means your full monthly payment will put more towards the principal and less towards interest. Keep in mind that refinancing comes with additional fees so be sure to add in the extra fees to see if it makes sense mathematically.

8. Pretend You Refinanced Without Actually Refinancing

You may decide that doing a formal refinance is not appropriate for you. However, that doesn’t mean that you can’t ACT like you refinanced. Simply pretend that your monthly mortgage bill has increased and pay more toward the loan’s principal.

For example, suppose your monthly payment is $1000. Pretend that you refinanced and your payment is now $1400. Applying that extra $400 each month to principal reduction is equivalent to making several more mortgage payments each year.

Because this cash is applied directly to the principal, you are taking big chunks out of the amount that interest is based on.

Pro tip: Make sure that extra $400 goes towards principal and is not counted as an additional payment towards interest and principal.

Understanding Principal Balance

By making extra mortgage payments or by paying extra, this amount is applied to your principal balance. By lowering the principal balance (total payoff amount owed), you in turn lower the amount of interest you will pay over the life of the loan.

Before you start making extra principal payments, contact your lender and identify the terms of your loan. There are a few mortgage companies that will not allow you to pay extra towards the principal whenever you want.

Avoid Prepayment Penalties

Some contracts only allow you to make extra payments at a specific interval. If you make the extra payment outside of the allowed times, you may be charged a prepayment penalty. Be sure your lender will accept extra payments before you write that check.

9. Round-Up Your Mortgage Payments

If refinancing is not an option and pretending you refinanced is not an option because you just can’t squeeze that must out of your budget, simply “round up” and apply that amount to the loan principal. So, if your mortgage is $1135, round up to the next hundred ($1200) and pay that extra $65 each month to the loan’s principal.

You may need to contact your mortgage lender to determine whether you need to make that “round up” payment separately to ensure that it is applied as extra toward the principal and not as a pre-payment of the next month’s interest.

10. Embrace A Frugal Lifestyle (until the home is paid off)

You may be thinking, “Oh sure! I’ll just find an extra grand in my budget each month to pay more on my house! NO PROBLEM.”

For most of us, it actually IS a problem to come up with hundreds of dollars to apply to our mortgage. But it CAN be done if you think of ways to be more frugal. Consider the “round up” example above. If you wanted to round up $65 each month, what could you do to be a little more frugal and “find” that amount of money?

Could you bring your lunch to work once a week rather than eating out every day?

Could you do a family movie night at home each week rather than taking the entire family out to the theater? Could you evaluate your TV package to see if there is any way to free up some money there?

Frugality does not mean that you deny yourself every single thing that pleases you. What it DOES mean is that you have to critically consider what things in your life are needs and what things are wants. Are all of your desires really needed, or could you limit some of those so that you could pay off your house years earlier?

How badly you want to be mortgage-free will determine how drastic you are willing to go.

11. Make A Mortgage Payment Every Two Weeks

Most people pay their mortgage bills once a month. However, a strategy that allows you to apply more money towards the principal each month, save on the interest that accrues, and lessen the term of your mortgage loan is to make biweekly payments that are half the size of your monthly mortgage.

Suppose your mortgage is $1000 per month. With biweekly payments, you would pay $500 every two weeks. What difference does it make to make a half-payment every two weeks rather than one large one? By paying once a month, you make 12 payments a year. By splitting it up every two weeks, you make 13 payments a year.

That often reduces your loan by approximately five years.

12. Put Your Tax Refund Towards Your Principal

put your tax refund towards your mortgage

While many people face tax season with dread, some people anticipate it excitedly, as they are expecting a tax refund. That refund feels like “found money,” doesn’t it? Many people either use it as “fun money” or to fund a vacation or to go on a shopping spree.

However, applying your tax refund towards the principal of your mortgage loan would be one way to make a long-term and significant difference in paying down your mortgage faster.

13. Pick Up A Side Hustle To Increase Income

Thousands of Americans supplement their income with a side hustle. Although we often think of an extra job as dull and something to dread, it can actually be rewarding, and in many cases, very lucrative. The very best side hustles involve the intersection of two things: they fill a need, and they are something that you enjoy.

Do you have a hobby or skill that you are really good at and that you could use to bring in more money? Do you make jewelry? Open an Etsy store and sell your creations online. Are you a long-time golfer? Teach beginning golf skills through the local recreation department. Are you a math whiz? Tutor kids who are struggling with math in school.

You could even tutor virtually, as there are lots of tutoring websites. Working as a tutor can easily net you $20-$30 an hour or more. Not a bad side hustle to supplement your cash flow.

14. Commit To Make An Extra Loan Payment Each Quarter

If your budget is too tight to “round up” each mortgage payment or to pretend that you refinanced and pay a considerably higher amount each time, commit to making an extra payment each quarter.

That means that you should save a little each week so that at the end of every three months (for example, in March, June, September, and December), you can make an extra payment. So, in each quarter, you have approximately 12 weeks to find enough money either in your existing budget or through a side hustle to make an additional house payment.

15. Create Visual Motivators

When it comes to personal finance, we often navigate on “automatic pilot.” We have our bills automatically deducted from our checking account, and because it is so convenient, we don’t give it a second thought. However, if you take on that gigantic goal of paying off your mortgage in five years, you may need to keep that goal more “on the front burner” so that you remain motivated and aware of your progress.

One strategy is to use a marble jar. In the jar, put 1 marble for each $1,000 you owe on your home. For every $1,000 you pay off your mortgage, take a marble out of the jar. In this way, you can actually see the balance getting lower, rather than just looking at the numbers on a budget spreadsheet.

If you enjoy coloring, I have made free coloring pages to track your progress and mortgage payoff goals. Check them out here!.

16. Celebrate Your Wins And Milestones

The goal of paying off your mortgage early is a big, serious commitment, and one that you should stay focused on consistently. However, there will be times that you just don’t want to think about it one more minute.

In that case, take a short break from it. You still have to live your life in a way that is manageable and doesn’t drive you crazy, right? In addition, it is really difficult to stay motivated without any sort of “attaboys” or “attagirls” along the way.

Schedule a celebration (one for which you have budgeted) at different milestones along the way. Perhaps after you pay off $5,000 or $10,000 of principal, you will go out for a nice dinner at a favorite restaurant. Maybe after you have paid off $25,000 of the principal, you decide to take a long weekend away, an adventure in a place you have never been. Celebrate these wins, even when they are small ones because small wins add up to the BIG win later.

17. Use My Free Mortgage Payoff Calculator

Head over to my free mortgage payoff calculator and enter your current loan information. The mortgage calculator will show you how many years you have left to pay off your mortgage, and how it changes if you adjust your payment.

In addition to analyzing extra payments, my early payoff calculator will also allow you to adjust the different payment schedules between a 15-year and 30-year loan.

Understanding Your Amortization Schedule

An amortization schedule shows your payment scheule for your current loan. It will show how much money is going towards principal and how much is going towards interest at each given payment.

You may be surprised to see how much of your hard-earned money goes towards interest at the beginning of your loan. My early mortgage payoff calculator will also break down your amortization schedule to make these payments painfully obvious.

Reaching Financial Independence Through Compound Interest

Now that we have paid off our loan, the bankers and brokers are no longer profiting off me through compound interest on my home loan. By freeing up my monthly mortgage payment, I’m now able to grow my wealth much faster with the help of compound interest working for me rather than against me.

My wife and I are now chasing financial independence. This means we are focusing on creating passive streams of income that will replace my full-time job.

Our next goal is to purchase a rental property so we can begin to diversify our retirement portfolio with real estate.

Wrapping It Up

Homeownership is the American dream and owning a home adds to your net worth considerably, so the quicker you can pay off your mortgage and own your home outright, the better. After all, the longer that you have a mortgage, the more you pay in interest to the bank, and can’t you think of other things you would rather do with all that money? Retire early? Start a new business?

Owning your home provides financial security for you and your family; it is an appreciating asset and will be worth more and more as time goes on.

All you need to do to change your financial future by paying off your mortgage early is to decide that you are going to do it and commit to it. Anyone can do THAT, right? Make small changes and find ways to squirrel away a little extra money here and there so that you can make additional payments toward your mortgage.

Think of the tortoise and the hare – be the tortoise! Consistent, steady, small steps get you to the finish line, and it won’t take you 30 years to get there! So are you ready to pay your mortgage off in 5 years or less?

This post originally appeared on Arrest Your Debt.

The sad fact is the average American is severely in debt. Our debt culture embraces debt and believes it is a necessary tool to live our lives. Our debt to income ratio is rarely scrutinized unless we apply for a mortgage. We go into debt when we get our first car, we use credit cards when we want to buy the things we don’t have the money for, and we believe we will be paying for our homes for the rest of our lives.

We basically use debt to lead our everyday lives.

Looking At Debt To Income Differently

But what if I told you there was a different way to live – and still enjoy life? While still in our 30’s, my wife and I recently paid off our home and refuse to make other people rich at our expense.

If you were to ask the average person how much debt they have, most are unable to tell you because it’s not something we like to acknowledge. Most people roughly know how much is left on their home and their car, but they pay more attention to how much their monthly payments are. The idea of paying things off doesn’t usually seem like a realistic goal.

Unfortunately, debt is not something that should be ignored. Not only does the amount and type of debt you have impact your credit score, but severe debt can also be a burden in your life.

Traditionally, parents and the education system fail to properly equip children with the financial knowledge needed to be financially successful later in life. Most people are not financially savvy because financial fitness is not something that is taught in school, so it comes down to each individual to teach themselves about how to change their financial future.

What Is Debt?

In the most simple terms, debt is anything that you owe. This could be a credit card payment, student loan payments, a mortgage payment, or a debt consolidation loan. You are indebted to the lender of your loan until you get the debt paid off.

Owing people money isn’t in itself bad, but the problem is attached to the amount of money you will pay in interest over the course of the loan. The amount of money you repay in the form of interest can be astronomical depending on how the loan is structured.

Breaking down the total interest we would owe on our home was one of the reasons my wife and I paid off our mortgage as soon as possible. Over the life of our mortgage, we were on course to pay the bank tens of thousands of dollars extra, just for borrowing the money in the first place.

Student loan debt is some of the most common debt in America. Apart from student loans, most people have car loans, and they also pay a mortgage for their home. Regardless of the type of debt that you have, if you are making monthly debt payments, you are not free.

Until you finish making your debt payments, you are owned, in a sense, by the entity that gave you the loan. Unfortunately, some people believe student loan debt and a mortgage will be with them for life so they do little to change this perception. In reality, you can get out from under this weight faster than you may realize.

What Is A Debt To Income Ratio?

If you are interested in purchasing a home, a car, or if you are looking to take out a loan for any other reason, your lender will scrutinize your debt to income ratio. To put it simply, your debt to income ratio is a calculation of your gross monthly income to the amount of recurring monthly debt that you have.

How To Calculate Your Debt To Income Ratio

Each person should be able to calculate their own debt to income ratio. To do this yourself, follow the following formula:

Debt To Income Formula

(Total of your monthly debt payments) / (Gross monthly income) = (Answer) x 100 = Debt to Income ratio percentage.

Here is a real world example of the formula in action:

Step 1: Calculate all monthly debt payments

Let’s say all of our monthly debt payments include our vehicle payment is $400 a month, $300 a month for minimum credit card payments, and $1,600 a month for our mortgage.

If this is all the monthly debt payments we make, we total these up and find that our total monthly debt is $2,300. ($400 + $300 + $1,600 = $2,300)

Step 2: Calculate your gross monthly income

Next, we identify our gross monthly income and put it into the equation. Our gross monthly income is how much money you earn each month before taxes are taken out.

For this scenario, let’s assume our monthly gross income is $5,000.

Step 3: Divide your totals

Divide your total monthly debt payments by your monthly gross income. In this scenario we would do the following: $2,300 (divided by) $5,000. This calculation equals = 0.46.

Step 4: Find your debt to income ratio percentage

For the final step, multiply your final calculation by 100. Here we would take 0.46 times 100. The end result is 46.0. In this scenario, our debt to income percentage is 46%.

What Does This Mean?

The higher your debt to income ratio is, the worse off you look to creditors. Having a high debt to income ratio could mean that you are living beyond your means. If your credit utilization ratio is high, you are quite possibly using credit to make the majority of your purchases, and without the credit, you would not be able to make ends meet.

A high debt to income ratio is a red flag for any lending company. If they see you have too many debts, the company is most likely not going to give you more credit. And if they do, they’re going to charge you a higher than normal interest rate.

To avoid overpaying with high interest rates, I’ll show you how to improve your Debt To Income (DTI) score.

What Is A Good Percentage Of Debt To Income Ratio?

Since your debt to income ratio can keep you from getting a loan with a reasonable interest rate, we need to examine how bad (or good!) your situation is before you apply for a loan. According to Investopedia, mortgage lenders use DTI in their calculations and believe the ideal debt to income ratio is 36% or lower and your mortgage loan should be no more than 28% of your total DTI. Some lenders like to see an even smaller amount.

If your DTI ratio is lower than that, you’re in a good position! If, like many Americans, your income ratio could be better, there are several ways to improve your situation with a debt management plan.

What Happens If My Debt To Income Ratio Is Too High?

If your debt to income ratio is too high, it is possible that you will not be able to get a car loan or mortgage. Lenders want to be able to see you can handle and responsibly repay your loans on time.

If you have a higher than normal DTI, lenders are less likely to trust your ability to pay them back. The result is a high-interest rate loan or an overall denial of your application.

What Is The Average Debt To Income Ratio In America?

Unfortunately, there is no solid data that shows the ability to uncover the average DTI ratio in America. We do know, however, that the median income in America is $61,372 while the average debt is $137,063.

By looking at the different income and debt statistics, we can estimate that the average DTI in American is between 37%-43%. If you have a good debt to income ratio, you are probably making savvy financial decisions and have trained yourself to be financially responsible. You are a person who pays off your debt on time, and you make paying down debt a priority.

If you have a high debt to income ratio, it does not mean that you are a terrible person. We all have financial circumstances that come up that we were not prepared for. You may also have a low total monthly income, and because of sickness or income loss, you may not be able to keep up with your monthly debt obligations. You may feel like there is no way to get out of credit card debt, and you may regret some of your past decisions. If you relate to the situations previously mentioned, know that it is in your power to improve your situation.

However, on the flip side, if you’re focused on living in the moment and are comfortable spending money you don’t have – I hate to say it, but you are the problem.

How Can I Lower My Debt To Income Ratio Quickly?

It will take effort, intentional spending, and saving to lower your debt to income ratio quickly. First and foremost, you need a monthly budget. You have to know how much money you are earning and how it compares to your spending.

Instead of your money leading the way, you have to give your money assigned tasks each month; this is what a budget does. You are going to need to start making large payments on your loans and your credit cards to lower their balances. Making the minimum monthly payments will leave you going nowhere fast.

If you find that you are not making enough to pay more than the minimum payments each month, you may need to increase your income or find ways to drastically reduce your spending. If you feel like it is impossible to improve your income, then it may be wise for you to look into debt consolidation options.

If your income to debt ratio is high, your debt is controlling your life, and you are the only one who can stop the cycle. Be sure to check your credit report for any other debts you may have forgotten about.

If you need guidance, check out my Debt Payoff Playbook.

Should I Pay Off My Credit Card Debt Before Applying For A Mortgage?

Before you get a mortgage, get out of debt. That means paying off your credit card companies, your car, and your student loans. A house is the largest purchase that you are going to make and by eliminating these other loans, you can all but guarantee you will be able to afford your mortgage mortgage payment for years to come.

The less debt you have and the more money that you make, the more likely you will get a low-interest rate on your mortgage which will save you tens out thousands of dollars.

Take Control Of Your Debt

Most people are convinced they will be in some form of financial debt for their entire life. However, I encourage you to think differently! My wife and I were able to pay off both of our vehicles, all our credit cards, and our mortgage on a single income – with a family of five! I’m telling you this so you realize living debt-free is possible and in your future – if you choose it.

By making savvy financial decisions, and by spending below your means, you can pay off your debt completely. It may sound impossible, and you won’t be keeping up with the Joneses, but you will have what you need to live an abundant life.

Money management skills can start at a young age.

Instead of buying the car of your dreams, save up while you are still living with your parents, and get a vehicle you can afford.

Instead of going to a prestigious college, go to a local college or trade school to avoid hefty student loans.

Instead of buying that house in a wealthy neighborhood, buy an affordable home you can pay off in 15 years or less.

Some people believe that making more money is the key to improving debt issues, but rich people have just as many debt issues as the poor. The key is balance and education. Once you take control of your finances, your debt will no longer be your boss. Eliminate your debt, and you will significantly improve your life.

This post originally appeared on Arrest Your Debt.

Buying a used car is the perfect way to set yourself up to be wealthy in the future. I know this is a powerful statement, but it’s true. Most of us love our vehicles and take pride in what we drive. The way our vehicle looks, the new car smell, the reliability of it – all of this comes into play when we decide what ride we want to use for transportation.

However, new cars lose their value like a sinking ship. I’m sure you have heard the rumors of how much less a vehicle is worth after it rolls off the lot. To combat this loss of value, insurance companies offer additional insurance known as “gap insurance” to supplement our already high insurance rates.

Speaking of insurance rates, check out Gabi Auto Insurance. I have been impressed with how cheap their rates are compared to mainstream companies.

Buying A Used Car May Be Your Secret Weapon

This post will give you everything you need to know about buying a used car. From how old is too old to which vehicles last the longest. Check out the table of contents to navigate this page.

I wrote earlier about only spending money on things that add considerable value to your life. You may be one of those people who absolutely love their car. You may still enjoy going out for a weekend drive, or rush hour may not actually be that bad in your air-conditioned leather seats.

Your vehicle makes you happy and adds value to your life, I get it. But at what cost was that value added?

What have you given up by financing that vehicle? $400, $500 a month? If you make $5,000 a month, $500 isn’t really that noticeable, is it?

5 Reasons Buying A Used Car Can Make You Rich

If we understand what is making us poor, and why it’s making us poor, we can better identify what we can do to build wealth.

1. New Cars Depreciate – Quickly!

When I spend my money, I like to spend it on things that add value and hold value in my life. The truth is, on average, that new car you financed will lose 20%-25% of its value in the first year. It will continue to lose approximately 10%-15% of its value each year after that until it is basically worthless.

If you financed a $25,000 vehicle with a $4,000 down payment at 3.5 % interest for 60 months, you would be paying about $2,000 extra for that vehicle by the time the loan was paid off. On average, after that 60 month time period, your $27,000 investment would be worth around $13,122 – if you’re lucky.

I know this may sound absurd, but why don’t you just buy a 3-5-year-old vehicle (with cash) and save a large chunk of change?

How much can you save? The amount may shock you.

2. Unexpected Repair Bills Are Never Expected

Since you’re already paying $400 a month for your vehicle, keep in mind that the air conditioner will go out – right after that factory warranty expires. Do you have a few hundred extra dollars lying around for that repair or will it go on the credit card?

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Oh wait, did you buy the extended warranty?

It would have been cheaper to decline the extra warranty coverage and to pay for the A/C with cash. Let’s do the math.

According to Consumer Reports, the average extended warranty is $1,214. Owners who actually use their warranty only claimed $837 in repairs on average. That’s not counting those who didn’t even use their warranty.

Also, remember you will need to pay for oil changes, routine maintenance to include new tires, brakes etc.

Let me guess, they threw in the oil changes for “free” didn’t they? Don’t be suckered into thinking anything they are giving you is actually free. You’re paying for it one way or another.

3. Finance Games You Will Always Lose

If you have ever financed a vehicle, you know what I’m talking about. The salesperson will throw a bunch of extras in if you use their financing. Hopefully, it’s obvious to you that they make more money off you if you finance rather than pay in cash.

The dealership does not stay in business by giving things away for free so rest assured, all those “extras” they are throwing in are being paid for by you.

Another game they like to play is to draw your attention away from the list price and have you focus on the monthly payment. They want you to ignore how much you are actually going to pay over those 60 months and instead focus on how much you are “only” going to pay each month.

Is that monthly payment too high? No problem! They now offer 72 and 84-month loans to drastically lower your monthly payment.

No, I’m not kidding, and some of you may even have these loans. If you are purchasing a vehicle, do not discuss monthly payments – discuss the total price.

4. Buying Used Cars Can Be Just As Reliable As New

Confession time – I hate my car, I really do. It has 200,289 miles on it.

The front driver window does not roll down and it doesn’t have cruise control. It was made in 2007. I didn’t know they made cars without cruise control in 2007 until I bought it. The seat is starting to tear and the front bumper doesn’t sit flush because my wife ran over a large object in the road years ago.

Secretly I’m hoping I can keep it for 25 years so I can get a historic plate for my Nissan Sentra, just to embarrass my wife even more.

I absolutely want a new car but I know I don’t want a new one enough to spend the money right now. I have other financial goals that are more important. My car gets me from A to B which is what it is supposed to do. It’s not fancy, but I promise you, no one (except my wife) cares what I drive.

5. Financing Cripples Your Retirement Goals

If you took that $400 a month and saved it for a period of 20 years rather than spend it on new vehicles, you would have saved $96,000. Over a 20 year period that may not seem like that much money.

Now if you had invested that money and made an average of 10%, your $400 a month investment could realistically grow to $302,412. By financing vehicles for a 20 year period, you are throwing away $206,412! This is not voodoo math my friends, this is the reality.

As I stated earlier, arresting your debt and building your financial future requires a complete shift in your mindset. While the rest of America will finance vehicles for the next 20 years, you could be ahead of them by hundreds of thousands of dollars by being content with a mediocre vehicle.

It all depends on where you want to be in the end.

How To Find The Best Used Vehicles

Buying a used car is a great idea unless you buy a lemon. Nothing is worse than buying a used vehicle that requires way more work and money than you have. This section will detail what you should look for when considering a new to you car.

– Find A Vehicle In Your Price Range

Before you ever consider shopping for a used vehicle, make a firm decision about how much money you are willing to spend. Promise yourself you will not spend more than this amount.

Failing to set a strict budget for a used vehicle that fits within your financial plan is like going to the grocery store while you’re hungry. More than likely you will come home and wonder how much you just spent while trying to not regret your decisions.

Set a price and stick to it.

– Vehicle History Reports Are Worth The Money

For $39.99 or less, you can get a complete vehicle history report that can reveal hidden issues with a vehicle. Sites such as CarFax can provide this information to you and often you can make the seller pay for the report.

CarFax reports include information about:

Past Accidents

Previous service histories such as oil changes or other major repairs

Mileage reports

Previous and current owners

– Consider Taking The Vehicle To A Mechanic

Many auto mechanics offer pre-purchase inspections for around $100. If you’re buying from a private individual, the individual should allow you to take the vehicle to a nearby mechanic to have this service completed. If the seller refuses, do not purchase the vehicle – this is a big red flag.

When I was younger I purchased a used vehicle and failed to have it inspected. I took the vehicle for a test drive and did a courtesy “look under the hood” which all looked normal to my untrained eye.

A month later after the car started stuttering and sputtering, I found there was a major oil leak into a gas line that had been there for some time. In the end, I had to replace the engine because it was unrepairable.

Save yourself the time, effort, and money by paying the $100 inspection fee to uncover any other hidden mechanical problems.

– An Ugly Car May Be The Perfect Fit

Here in Arizona, we had major hail storms a few years ago that left many vehicles damaged and dinged up. The exterior of the vehicles have all types of defects but the engines and interior parts are still in great shape.

Lucky for you, a hail damaged car is worth much less than a vehicle without the cosmetic damage. This can be a great way to purchase a relatively new vehicle for a great price – if you’re willing to drive it around with hail damage.

Not all damage is good damage. If the vehicle was involved in an accident but still runs, the frame and other safety components may be compromised. Don’t sacrifice safety to save a couple of bucks.

Key Takeaways

New vehicles lose their value faster than you can pay them off

Expect to spend money on repairs. If you’re living paycheck to paycheck, a new car is going to put you further into debt

Financing a truck or car makes other people rich

Used vehicles that are well maintained can last longer than you may think

Buy a used vehicle with cash

Check a vehicle history report and pay for a prepurchase vehicle inspection

It’s not what’s on the outside that matters – only the inside!

This post originally appeared on Arrest Your Debt.

If you have a lot of debt or different types of debt, then a debt consolidation loan might sound like a good idea. However, if you have low credit, you may not have many options.

The good news is, you can still get a debt consolidation loan, even with bad credit. In this article, you will learn about the ins and outs of a debt consolidation loan, the pros and cons of getting one, and what your alternatives are if you aren’t ready to get a debt consolidation loan.

What is a Debt Consolidation Loan?

A debt consolidation loan is a new loan that you take out to cover the balance of your other loans. A debt consolidation loan is a single, larger piece of debt, usually with better payoff terms than your original, smaller debts. When you receive a consolidation loan, your other loan balances are paid off. This allows you to make one monthly payment rather than multiple.

For example, if you had one student loan for each semester of your four-year college degree, then you’d have taken out eight loans. This can be cumbersome to manage, so you could take out a debt consolidation loan to pay off all your eight loans and only make one monthly payment instead.

Get A Debt Consolidation Loan with Bad or Average Credit

If you have poor or average credit, then it might be difficult for you to get approved for a consolidation loan or to get a loan with favorable terms. A bad or average credit score is typically anything under 670. You will need to take steps to get a debt consolidation loan for bad credit.

Step 1: Understand Your Credit Score

The first step toward getting a personal loan or a consolidation loan is to understand your financial standing. Your credit score is one of the main factors that a lender will evaluate when deciding to give you a debt consolidation loan. Therefore, take the time to look up your credit score and what events have caused your score. Sometimes, years of bad habits contribute to a low score.

Continue to monitor your score over time. You can learn what contributes to a good score as well as what causes your score to decline, and act accordingly.

Step 2: Shop Around for a Debt Consolidation Loan

If you have a poor credit score, you might be inclined to take the first loan offered to you. However, you may have multiple options for lenders to work with, so be sure to shop around for a good interest rate and term. You might want to investigate online lenders as well as brick and mortar lenders such as your local credit union.

Be sure to carefully review all the fees associated with taking out a personal loan. This might include an origination fee or a penalty for paying back your loan early. Understanding your fees can save you hundreds of dollars over the life of your loan.

Step 3: Consider a Secured Loan

Most personal loans used for debt consolidation are unsecured loans. This means that they do not require collateral. However, if you’re having a tough time getting approved for a loan, you might want to consider a secured loan.

Forms of collateral include a vehicle, home, or another asset. The collateral must be worth the amount of the loan if you default on the loan. Even if you can qualify for an unsecured loan, you may want to compare the interest rates of a secured loan to see if you can get a better rate.

Step 4: Improve Your Credit Score

Finally, if you can’t get a loan right away, you may want to take some time to evaluate your credit score and see where your areas of opportunity lie. If you have small glitches on your score that caused it to decrease significantly, then you might be able to raise your score quickly.

For example, one missed payment or forgotten bill can cause your score to plummet. If this is the case, you may be able to pay off that small bill and raise your credit score quickly.

How to Qualify for a Debt Consolidation Loan

To get a debt consolidation loan, you must be 18 years or older and a legal U.S. resident. You must also have a bank account and not be in bankruptcy or foreclosure. These are the basics of qualifying for a debt consolidation loan.

In addition to these basics, you’ll want to try to improve your financial standing as much as possible. Borrowers with good or excellent credit and a low debt-to-income ratio typically have no problem getting a debt consolidation loan. However, if you have bad credit, you will want to work to improve your credit score and decrease your debt-to-income ratio.

If you have bad credit and are considering a debt consolidation loan, you might already be in a financial rut. This can make it difficult to improve your financial standing. If this is the case, you can search for lenders that specialize in helping people with bad or average credit and be sure to shop around for the best rates and terms that you can get.

Personal Loans for Debt Consolidation

If you have poor credit and need a personal loan, you may want to check out these providers. They will offer high-interest loans to people with poor credit.

Fiona

Fiona is an online marketplace that connects potential borrowers with multiple lenders. Borrowers simply fill out a quick application, and they are matched with the lenders most likely to approve them. This saves time and money, as you can be matched with a lender without needing to visit a bunch of sites.

Fiona is ideal for borrowers with a 580 credit score or higher, and that doesn’t want to have to waste time filling out a bunch of applications. A nice feature of Fiona is their initial application requires just a soft credit check, so making a quick application won’t hurt your credit score.

Since Fiona is a marketplace and not a direct lender, the terms of offers and the number of offers borrowers receive may vary. Some borrowers report being bombarded with offers, which we feel is potentially a benefit as multiple offers help ensure you get the best deal.

LendingPoint

Lending Point will typically lend up to $25,000 with an interest rate of 15.89% to 35.99% APR and a 36-month term. You can check your rate for free on their website. If you qualify, you can receive your personal loan in as little as 24 hours. LendingPoint takes your credit score, job history, and income into consideration when you apply for a loan.

SoFi

SoFi will lend up to $100,000 with an interest rate of up to 17% on a 24-month term. There are no origination fees or early payment penalties and no overdraft fees. You can apply online for free and will typically receive your funds in a few days.

Upstart

Upstart will lend up to $50,000 with an interest rate of 7% to 35.99% on a 36 or 60-month term. Funds are provided as early as the day after approval, but they have a high origination fee of 8%.

OneMain Financial

OneMain will lend up to $20,000 with an interest rate of between 18% and 35.99% on a 24 to 60-month term. They do have small origination fees and late payment fees, but they typically range up to $30 per payment. You can apply for a loan online and have it funded as early as a day after you apply. The company also has almost 1,500 branches across the country for those who prefer to apply for a loan in-person.

Should I Get A Debt Consolidation Loan?

If you’re in a pinch and need to consolidate your loans to make them more manageable, then your best option may be to get a personal loan or a debt consolidation loan.

Pros

There are plenty of benefits of a debt consolidation loan. Some of them are:

Simplified finances. When you consolidate your debt, you will pay off multiple debts and only have one loan. This means you’ll make one monthly payment instead of multiple to keep track of.

Lower interest rates. If you have a bunch of credit cards or other high-interest debt, the interest rates might vary and be high. Personal loans typically have lower interest rates depending on your credit score, the loan amount, and term length.

Fixed repayment schedule. Instead of having multiple payments each month that vary by amount, interest rate, and term, you will have a fixed schedule each month.

Boost your credit. By eliminating the risk of forgetting to make payments or letting your loans get away from you, paying a set amount on a consolidated loan can help you to boost your credit score.

Cons

Debt consolidation isn’t for everyone. Be sure that you understand the risks you take on as well. Some of the things to watch out for include:

Upfront costs. Some personal loans have upfront fees, including an origination fee, closing costs, or annual fees. If you pay a lot of fees over time, it might not be beneficial to consolidate your loans.

Higher interest rates. If you have poor credit, you will not get a favorable interest rate on your consolidated loan. Therefore, you may have a higher interest rate on your consolidated loan than on your existing loans. If this is the case, it likely will not make sense to consolidate.

The Bottom Line

Having poor credit does not mean that you can’t get a debt consolidation loan. However, it might be more difficult for you to get a loan right away or to get one at a favorable rate. If you decide to apply for a debt consolidation loan, be sure to shop around for the best rates and do your best to improve your credit.

This post originally appeared on Your Money Geek.

Solo travel is a great way to not only learn about the world, but also discover who you are, and push the boundaries of your comfort zone. However, solo travel can get intimidating (there’s so much to do to prepare!) and expensive as you no longer have anyone to split costs with. Travel hacks can help.

This guide will help you figure out how to budget for a solo trip and save money, how to pack so that you’re efficient, and will go over some things you must do to be prepared. Also, we’ll cover some benefits of solo travel and why everyone should do this at least once. PLUS, tips for what you can do by yourself once you’ve arrived!

Let’s get started.

Choosing a Budget-Friendly Destination

There are plenty of budget-friendly destinations for traveling solo. Some examples include:

Almost anywhere in South or Central America

The Caribbean

SE Asia

The Pacific Islands, including the Philippines, Indonesia, and Malaysia

Eastern Europe

Parts of Africa

The downside to some of these is the length of the flight, which means the price of the flight may be expensive, but as we’ll go over below, there are ways to make it happen and not break the bank!

Other areas, including Western Europe, parts of Africa, Australia, and parts of Asia, maybe a little more expensive, however, if you budget for them and save ahead of time, they are doable as well.

Things to Consider When Planning Your Solo Trip

Figure out how much time off you have. This will help you quickly eliminate specific areas of the world that may require longer stays or take longer to get to.

Determine How Much Money You Have to Spend

Depending on how much time you have available, and what your travel budget is, you can narrow down vacation spots. For instance, destinations further away may have more expensive flights.

Also, consider using travel credit cards and travel points to pay for things (especially useful if you have time to get a new card and plan).

Look for Travel Deals

Another way to find a destination to fit your budget is to look up travel deals. Many airlines offer discount fares to different destinations. That is especially helpful if your travel dates are flexible.

See if your vacation time is in the offseason for any of those destinations, as traveling off-peak can save you a ton of cash on hotels and activities once you’re there.

How to Save Money on Your Trip

Saving money doesn’t have to end at airfare. Once you’re there, there are ways to ensure you continue keeping and sticking within your budget.

Choose Lodging Carefully

If you have a budget that allows for it, then I recommend a centrally located hotel, even if it costs you a little bit more. That is because the benefits include not having to pay for public transportation because you can potentially walk everywhere, and easy access to food options and tour operators. The best way to figure out central locations is to map out all the popular activities to do and then search for lodging in that area.

Alternative options include Air Bnb, VRBO, Hostels, House swap, or couch surfing (if you know people who live there). Again, if possible, central locations work best because of their convenience, and you save on other costs.

On the flip side, depending on your destination and how long you’ll be there, you can look for lodging closer to the airport or with airport shuttle access. For instance, if you’ve got only one or two nights in a city and are planning on doing a tour (and very little self-exploring), then this may be a good option. You’ll save time and money on transportation to and from the airport.

Avoid the Single Supplement

You may note when booking your lodging, that the rates are for “per person, double occupancy”. If you choose that room and say, there’s only one person staying, the price for you goes up significantly.

That is a penalty for solo travelers. However, there are ways to avoid it.

Some companies will match you with other solo travelers, or you can dig around find spots that don’t charge the supplement (often smaller boutique hotels don’t, or they have rooms made explicitly for solo travelers – this is the route I usually take)

Save on Transportation

Sometimes the highest public transportation cost is going to and from the airport. Look up ahead of time the best ways to do so; many cities in Europe, for instance, have great subway or metro systems. In Japan, there was a bus that took us into the city. From there we took a taxi to the hotel.

You can do the same research in regards to getting around when you reach your destination. In Vietnam, for example, some taxis are known to scam tourists. We found out about those ahead of time and made sure to avoid them.

Save on Food

Some hotels offer free breakfast. Take that into consideration when budgeting for your stay. Alternatively, if you end up getting an Airbnb or VRBO, then go grocery shopping and cook at least one of your meals at home.

Street food is also a great option. You’ll taste local cuisine AND save money as it’s some of the most affordable cuisine available.

Look up food spots ahead of time so you have an idea of how much your meals could cost you.

Save on Things to Do

Check out your destination’s tourism board. It will usually display events happening in your area, many of them free or discounted, or you purchase a day pass and get entry everywhere at a discount. For instance, in Paris, the Louvre, for part of the year, has free visits available the first Sunday of every month.

It takes a little digging and research, but the savings can be significant.

Packing Checklist for Solo Travel

I highly recommend you create a travel checklist so that you can keep track of everything. Also, try to limit your luggage to a carryon and backpack. You’ll save yourself time at the airport checking in and at the baggage claim, AND you’ll save on possible fees (some taxis will charge you for putting a suitcase in your trunk).

Plus, having only two, well-packed items will save you the headache of lugging something large and bulky with you everywhere you go (this is especially helpful with long multi-destination trips)

So, what should you be packing? The essentials. Plus, you should make sure that everything you pack is everything you will use while abroad.

Packing Tips for clothes and souvenirs

A capsule wardrobe ensures that everything you pack will match with each other, which increases the number of outfits you can get from a week’s worth of clothes. I’ll also add that you should pack items that can double up in usage. For instance, if you’re going somewhere warm and tropical, then pack dresses that will work as both daywear and also coverups.

Roll Your Clothes to Save Space

That actually will save you a lot of space.

Use Packing Cubes to Save Space and Stay Organized

Packing cubes are a great way to keep your essentials organized, and also separated, making it easier for you to find. I’d also recommend that you roll your clothes when you place them in the packing cubes.

Pack a Collapsible Duffel

A collapsible duffel is one that collapses and rolls and fits into itself. Take one with you and open it up on the way home to fit in all those newly bought souvenirs.

Must Have Emergency Kit Supplies for Solo Travel

Anything can happen while you’re abroad, and it can be scary when you’re by yourself. Being prepared with a small emergency kit has always gone a long way towards helping me feel better. Here are some things you should consider putting into yours:

First aid box with bandaids, bandages, and antibacterial ointment

Medications:

Antihistamines – Benadryl, Zyrtec, etc.

Pain killers -Tylenol, Ibuprofen, etc.

Sleep aids (helps with jet lag !)

Anti-diarrheals (like Immodium)

Antacids – Pepcid or Maalox chewable tablets

Cold medication – Dayquil, Nyquil tablets, Sudafed, cough drops

Motion sickness tablets – Dramamine

Lubricating eye drops

Hydrocortisone cream

Many of these are available in small travel packs that you can get at your local drug store. What do I do? I have many of these at home, so I’ll grab a few of each and stick them either in the same bottle to save space, or place them all in a single Ziploc bag and make it a “kit.”

Random Items That You Always Forget

Many people forget these next few items. But now, you’ll remember!

Sunglasses

Headphones (especially noise-canceling ones)

Sunscreen

Bug Spray

An alternative to bug spray: OFF wipes, easy to pack, use em and toss em

Refillable water bottle

Things You Must Have When Traveling, Solo or Otherwise

RFID wallet to protect your identity

Cash

Updated passport (+/– visa)

Personal and student I.D. (take your student I.D.s if you have them, you’ll get great discounts!)

Things You Must do before you travel abroad

Preparation is key. When you’re deciding on solo travel, it’s even more essential to take specific steps to ensure your safety before you go and to make your solo travel experience smoother.

Here are some things you MUST DO before you go:

Enroll in the STEP Program

That stands for the Smart Traveler Enrollment Program. How it works:

You sign up before you travel anywhere outside of the U.S.

Your information is saved with the State Department – which means the government knows where it’s citizens are at any given time.

If an issue arises in a country you are visiting, they will be able to communicate with you directly. For instance, you’ll get updates on travel information, flight availability, and safety concerns.

I have a colleague who got stuck abroad at the beginning of the COVID-19 pandemic lockdown, and she said this was the single most helpful thing in regards to knowing how to get home and when it would happen.

Enroll in TSA Precheck and Global Entry

Many travel credit cards include the cost of these. The transportation security administration (TSA) precheck and Global entry (customs and border patrol) each costs $100 for five years. That pays for your background check, and you must do an in-person interview for each. With Precheck, you will save time during check-in by skipping long security lines, and with Global entry, you will save time coming home by skipping customs lines.

The interviews can be done at any airport with a TSA/Global entry office. After you fill out your form online, you will receive a list of places where you could make your interview appointment, so rest assured you will not have to dig in and research where to go.

The time saved by having these two things is invaluable.

Double Check Your Destination Information

Check the State Department’s site on Travel Advisories, which details the safety level of your destination. That gets updated frequently, and if there’s a travel advisory, it will tell you what to look for OR what area of your destination country is affected. Often, local conflicts can make it more dangerous to travel to certain parts of the world. Knowing the status beforehand can help you with planning and making informed decisions about what parts of the country to visit, OR if you should go to that country, to begin with.

Also, double-check whether or not you need a visa for your destination. If you are a U.S. passport holder, you will be allowed to travel to most countries without a visa. However, some countries require a visa. Depending on the country, you may be able to get it beforehand and pay a fee. You can usually do this online. Sometimes you’ll have to send your passport into the embassy.d Or you can obtain and pay for the visa at the airport when you arrive. More information on that can be found here.

Note Down Important Numbers

In the era of cellphones and wifi, this information can either be stored on your phone or looked up online. HOWEVER, I have been in situations where I didn’t have either option because my phone was dead or the wifi wouldn’t connect (and in countries like Cuba, you never get wifi, to begin with).

So, a great back up is to write this information down and keep it with you at all times (or take a picture).

Hotel name, address, and phone number

U.S. Embassy address and phone number

Your parents or significant others’ cell phone numbers

Also, take a picture of your passport (and take a couple of hard copies). If anything gets stolen, your only ticket home is your passport, and the easiest way to get a new one is to show a picture or a copy of the original.

Tips on Safety During Solo Travel

There are several things to consider when traveling abroad by yourself (especially for female solo travelers). Even if your destination is known for being safe, you may still find yourself in unsafe situations. This section is meant to give you some friendly reminders about how to travel safely and smartly.

In addition to the safety measures I’ve mentioned already, consider these as well:

Stay Away from Known Crime Areas

Pretty obvious, however, do keep this in mind. Do some research before you go, and once you’re there, talk to your tour guides and ask them about different parts of the country/city you’re visiting. Get feedback from the locals about where to go and what to do. As always, trust your instincts no matter what anyone tells you, but this is a great starting point to get a lay of the land.

Once you know where NOT to go, DON’T GO. As a tourist, you will stand out, and you will just be asking for trouble. Plus, during solo travel situations, you will have no one to rely on or ask for help, so it is essential to be doubly safe.

Check In Regularly with Family and Friends

Let your people know where you are and how you’re regularly doing. If not via phone, then via email, shoot them regular updates. It’s an excellent way for them to keep track and makes it quicker for them to realize if something is wrong if/when you don’t check in on time. I’d also recommend you send them a copy of your itinerary so that they know where you’re supposed to be.

Keep Valuables with You at All Times

Even if you’re with a group tour and are just hopping to the bathroom, take your purse/wallet/valuables with you. I have heard horror stories of people “trusting” their groups, only to come back from a bathroom break to find their bags have been stolen, including passports, and now they’re stuck.

Don’t let that happen to you.

Also, whatever bag you carry: ensure it has a zipper, don’t keep your cellphones/wallets in your back pockets, and don’t wear fancy jewelry (once, in India, I saw a motorcyclist drive by and grab and yank a ladies’ gold chain off her neck – this stuff happens)

Don’t Get Lured into Private Areas

Salespeople will hound you and offer you great deals on designer this and designer that, OR offer you an opportunity to get some excellent locally made goods….you just have to follow them down an alley into some house.

Hard pass.

Do. Not. Follow. There is no deal, no object or good, worth going into an unknown by yourself. Turn around and walk the other way, or demand that they bring it to you. Of note, this is not something that happens everywhere, just something to keep in mind if you do happen to be somewhere where this occurs.

Consider Self-Protection

Solo travel can be scary in that you are alone and have no one to back you up. We are taught from childhood that there’s “safety in numbers”. Well, solo travel takes that safety net away.

Consider taking some Mace, or an equivalent, with you. Trust no one, of course, but also have a way to get yourself out of sticky situations. Mace is one option; another is to take a set of keys and put a key between each finger and make a metal claw of sorts. I do this when I feel something is off and always feel better for doing so.

Be careful with purchasing an actual claw because you can get stopped at the airport for having one (I have a friend who spent the night in airport jail for this, in the United States)

Dress Appropriately

In some parts of the world, this matters. Look up local customs so that you pack appropriately and can blend in once you arrive (again, this tends to affect solo female travelers disproportionately).

Tips on What to Do Once You’ve Arrived

You’ve budgeted, you’ve prepared, you know how to be safe, and now you’re at your destination!! Let the fun begin!

Here are some ideas for how you can spend your time abroad and get the most out of your solo travel experience.

Take Part in a Tour

This is an easy thing to do by yourself and a great way to get your feet wet, roaming around a new city or town. While it’s daunting climbing onto a tour bus and asking strangers if you can sit next to them, it’s also a great way to meet new people. Booking a tour on at least one day of your trip also allows you to get the lay of the land, and learn some history and background of your destination.

You can also use this opportunity to speak to your tour guide about recommendations and safe areas to explore. (pro tip: some companies offer solo travel tours specifically to help those who are by themselves meet other people!)

Go to a Bar/Out to Eat

Do not eat in your hotel room by yourself! Instead, use the recommendations you’ve been given to find a local restaurant, walk-in, and take a seat. No one is staring at you; no one is judging.

To make it easier, try going out for lunch where there’s outdoor seating. Choosing a less formal spot can make it less awkward, make it easier to speak with the waitstaff about local culture, and you can take a book or people-watch without issue.

Try Local/Authentic Cuisine

That goes hand-in-hand with the prior point. We tend to stay in our comfort zone, and so may gravitate towards food and restaurants that fit that zone. Instead, use this opportunity to branch out and experiment!

Researching ahead of time is helpful here in regards to what specialty foods are unique to each country and city, but the best restaurant recommendations, I think, come from the locals. Once there, ask your hotel concierge or your tour guides.

Try Your Hand at Bargain Shopping

If you’re in a place that allows you to haggle for the best price, then go for it! Try and see if you can get the best price for the item you want. This is a great way to immerse yourself in the local culture and practice the language!

Figure Yourself Out

One of the greatest benefits of solo travel is that you have time for yourself, your thoughts, and your ideas. So use it to figure yourself out, deal with your stressors, and regain perspective on your life and career trajectory. Don’t be afraid of your thoughts; be absorbed in them so that you make the most of this time to yourself.

The best solo trips include not just adventure and challenges, but also self-reflection and personal growth. You’ll go home a more confident, stronger, and content.

Solo Travel Experience Is a Must for Everyone

It’s scary to go somewhere by yourself if you never have before. However, there is no better way to learn about the world and yourself than by pushing your boundaries and taking that scary first step.

A tip for getting started for your first solo trip to make it a little easier: pick a country where there’s no language barrier. It can take a weight off your shoulders if you know that you speak the language and can ask for help without issue and make your first-time solo experience a bit less daunting.

In Summary

Figure out your budget first, then pick your destination

Pack lightly so that you save time and money

Enroll in STEP, TSA precheck & global entry

Double-check travel advisories

Make sure you know the VISA requirements

Pack all the necessities, including emergency kits, medications and contact information

Stay safe when you’re there

Most importantly: HAVE FUN and go for it with all the things you want to do!

Happy Travels!

This post originally appeared on Arrest Your Debt.

Saving money isn’t so much about not spending it, but rather it’s about intentionally spending your money on things that bring you value. How to save money was a foreign concept to me until I hit rock bottom and realized how much I was wasting.

This article will teach you several ways to optimize your income and reduce your monthly expenses – without giving up your life in the process.

How Can I Save Money With A Low Income?

A while back, I wrote a related article about how to get out of debt while living paycheck to paycheck. While that article focused on debt reduction, some of the strategies remain the same.

Developing smart money habits enables you to keep a successful budget. One of the best money-saving tips is spending intentionally – not when you “feel like it.” A good example is dining out once or twice a month as opposed to several times every week (I was guilty of this).

You can also work a side job to increase your income. Sometimes your debt problem may be an income problem. Mitigate your money issues by exploring additional avenues of revenue. There are many jobs you can do from home in your spare time, such as data entry, making crafts, and freelance writing.

Pay Yourself First

What if I told you the best way to save money was to make sure you pay yourself first before you pay your bills? Let me explain.

If money comes out of your paycheck each payday and goes into a savings account before you ever see it, you can condition yourself to live off the remaining. Instead of trusting yourself to save money at the end of the month, ensure you actually save something by hiding it from yourself at the beginning of the month.

Use a separate savings account to take full advantage of this strategy. My wife and I use 6 savings accounts to manage our money!

Earned Income Tax Credit

Depending on how low your income is, may qualify you for an Earned Income Tax Credit also known as an EITC. By using these credits to your advantage (by saving them and not spending them), you can catapult yourself towards your financial goals. Your tax refund may then be several hundred dollars or as high as a few thousand dollars.

Pay Your Future Self First

In a similar vein as paying your present self first, supercharge your future by saving for retirement on the front end.

Check with your employer to find out if they offer a 401K. By enrolling in your employer-sponsored retirement plan, some companies will match your retirement contributions up to a specific percentage. This is an excellent way to start saving money for your retirement while leveraging your company benefits.

How You Can Really Start To Save Money

Look at your monthly expenses, including credit card debt, food, a personal or car loan, electric bill, and cell phone bill. You can decrease your monthly bills by turning your thermostat up or down a few degrees, cutting out most nonessentials at the grocery store (create a shopping list!), switching to a different cell phone plan, and taking advantage of free entertainment.

Make Debt Your Enemy

Focus on paying off as much of your debt as possible. Make it a passion – an obsession. You are making other people rich by paying the extremely high-interest credit card charges.

Leveraging Credit Cards

If you are unable to pay off your credit cards immediately, it may make sense to transfer your balance to a credit card with a lower interest rate such as 0%. However, depending on your current situation, this may not be the best option. If you can’t pay off the balance before the 0% introductory rate expires, the interest rate will skyrocket.

In addition to ballooning interest rates, some credit cards will charge you a transfer fee if you move balances. Make sure you do the math to see if you’re actually going to save anything before you make the move.

Either way, if you have a problem with spending – cut up those credit cards and refuse to be a slave to debt.

If you have established a solid budget and are disciplined enough to use credit cards, there are several ways to leverage credit cards in order to make them work for you. As long as you can pay off your balance in full each month, look for cards that offer cash back. Cashback is a great incentive if you’re able to control your spending.

Pro tip: When you receive the cashback check in the mail – don’t spend it! Use it to pay off additional debt or put it into an investment fund.

Cash Is King

Use cash as opposed to credit whenever possible, to avoid paying interest. Even though I am disciplined with credit cards, I still find myself spending more with credit than when I use cash.

There’s just something about seeing that last $20 in your wallet that needs to last all week.

How You Can Save $1,000 Fast

You can save money fast by tracking your progress. When you set savings goals, putting money away for your future or a fully funded emergency fund becomes easier. Use a notebook or cell phone app to write down your daily purchases and expenses.

Your spending should fit the savings goals you established. Once you see everything in writing, you will be able to determine which costs you can decrease. You will also be consistently reminded of your goal. This means you will be less likely to spend additional money.

Give Yourself A Timeline

You need to determine your timeline for saving $1,000. Wanting to save money quickly is not enough. Decide if you want to save this amount in a week, a month, three months, etc. Meeting an abstract goal is nearly impossible. Make a positive statement, such as I will save $1,000 within the next month. You can figure out how much you need to save every day to meet your goal by dividing the desired amount by 30.

How Much Should I Save Each Month?

You should be saving as much as possible every month while still living life at the same time. In reality, you could save money every single day. We all spend money on things that don’t value and it’s up to us to stop these habits.

There is no specific amount I can tell you that you need to save. How much you can save is dependent on your expenses and income. However, there are particular rules you can use to guide your savings.

Look at how much you earn each month after taxes. Half of this amount (50%) should pay for your necessities. This includes housing, monthly bills, and food, including your loans and credit cards.

Another 30 percent can be spent on the things you want the most. This may include entertainment, clothing, or traveling. A want is something you desire, not something essential for your life.

The final 20 percent should go directly into your savings. Your savings can be an individual retirement account, an emergency savings, or for a downpayment to purchase a home. If your income does not permit these percentages, you can change them according to your specific situation.

If your needs require more than half of your income, you may need to decrease your wants to 10 or 15 percent. Even if you are unable to save 20 percent of your income, five or 10 percent will increase your savings every month. The more money you can save monthly, the sooner you will reach your goals.

What Is The 50 20 30 Budget Rule?

As described in the previous section, one of the best ways to set savings goals is with the 50/30/20 rule. The rule states 50 percent of your income should be used to cover your monthly necessities, including your mortgage or rent. Another 30 percent is for purchasing what you desire, like dining out or a new pair of shoes. The last 20 percent is for your savings account. This rule was created by Senator Elizabeth Warren when she was teaching classes as a bankruptcy professor.

For a more detailed step by step guide on how to implement the 50/30/20 rule, check out my related post here.

How Can I Live Cheaply?

You can live a lot less expensively when you simply spend less. You do not need to keep up with the proverbial Jones’s. There is no need to purchase anything expensive or luxurious to keep up with someone else or impress someone.

Seriously – nobody cares if your earrings are genuine diamonds or if your sneakers are a brand name. Purchasing a large home for a small family is not the key to happiness. You will be spending a lot more time and money on maintenance and cleaning.

Avoid Being “House Poor”

A large home will increase your expenses due to higher property taxes and insurance rates. This can make living cheaply nearly impossible. The point is – less can be more. When you have a smaller home and a cheaper car, you will not have to work as hard to pay your bills. You can put more money away for your future, decrease your level of stress, and live a more carefree and enjoyable life.

For a quick win – an excellent place to begin is by planning your meals.

Plan For Success

Planning what you need to purchase at the grocery store for each meal will prevent you from buying things you do not need. You can even set a price for each meal based on the number of people you are feeding. You can splurge on special occasions like birthdays or holidays, but keep your budget in mind for the majority of your meals.

When you know exactly what you need to buy, you will save time, money, and lower your stress levels. I wrote an article about how I save money each month with Kroger’s Click List.

More Money = More Time Doing What You Love

By changing your financial habits, you will find you have extra time to spend with your friends or family or participating in enjoyable activities such as reading or playing sports.

Buying Used – For The Win!

The best savings tips for living cheaply are usually simple. If your budget is exceptionally tight, save money by buying used items instead of new items. Look into used products at every opportunity. A good example is a new refrigerator. You can save a lot of money by purchasing a reconditioned unit instead of a brand new model.

Again, you’re the only one who will know you saved a ton of money by buying used.

Look into used cars, furniture, appliances, and electronics. Numerous reconditioned products come with some kind of warranty. If you are unable to find a good quality used product, to save money, consider purchasing something basic instead of including all of the bells and whistles. Basic products generally last longer because there are fewer features to break.

You can also purchase used products from online advertisements, garage sales, and thrift shops.

Many online stores and people have no idea what something is worth when they put it up for sale. This is an excellent opportunity to purchase something far below the actual worth. By doing this you can not only save money, but also engage in retail arbitrage for extra money!

When you decrease what you are paying for your purchases, you also lower your living expenses. Practice your negotiation skills before looking at all of the online listings. This will enable you to get an excellent price on a large variety of used merchandise.

Retail Arbitrage As A Side Hustle

If you have some extra cash, find clearance items for sale at rock bottom prices. You can resell these items online to make a nice profit. Your best option is the big-ticket items. You can earn hundreds of dollars fast just by reselling them. Your profit for lower priced items will be much smaller. If you need something for a relatively short time, consider renting.

Did you know you can rent a wedding dress instead of buying one? It’s true! Learn more in my article over here.

For instance, if you have someone coming to visit, you will be spending a fraction of the price to rent a bed to accommodate a visitor for a few days than to purchase a new bed.

Renting As A Frugal Hack?

One of the best examples is recreational vehicles. You may want to purchase your car, but if you do not use it frequently, you may regret the purchase and upkeep costs. You can rent jet skis, boats, kayaks, and all kinds of sporting equipment.

If you have a pilot’s license, consider renting a plane for a long weekend. If you are attending college, renting textbooks is a lot cheaper than purchasing them new. You can save a substantial amount of money by renting.

Look online for local rental stores offering power tools, construction equipment, storage units, party and wedding supplies, moving trucks, and more. When you want to watch a big game on television, you can save a tremendous amount of money by renting a large screen TV for the weekend.

Whether renting or purchasing is the better option will depend on what you need, how long you intend to use it, and the current rental rates. Taking the time to conduct a little research will pay off.

Save Money By Bartering

In the past, people saved a lot of money by bartering. Bartering is when you exchange something you have or your services to acquire something you want or need. If you need to have your lawn mowed, you may be able to watch the landscaper’s kids for a few hours to cover the service cost.

The idea is to locate someone who can offer what you need in exchange for your services. Bartering is a winning situation for both parties without having to exchange money. Think about the skills you can offer – your time and talents are worth more than you may think.

You may be able to bake delicious cakes, fix plumbing issues, help students with math, English, or science, provide transportation, or alter or mend clothing. Figure out what you are best at, then barter your skills. You may have a couple of lamps in your basement you never use but need a new coffee table. Your neighbor may have an extra coffee table and need lamps. You can always find something to barter with if you use your ingenuity.

Sometimes You Just Don’t Make Enough Money

If you have made all the cuts you can and you are still unable to pay your bills, you may need to downsize or increase your income.

There are two simple ways to increase your income:

Ask for a raise or work overtime

Work more than one job or side hustle

Side hustling is starting a business you can run during your spare time. Depending on what you choose, your side hustle may result in a lucrative income that will replace your current job as a full-time business.

If you are interested in growth potential, one of the most popular choices is becoming a virtual assistant. You can perform specific tasks for a wide variety of businesses. The term “virtual,” means you can work from your home as opposed to an office. If you have some of the following skills, you can become a virtual assistant:

• Editing and proofreading documents

• Screening emails

• Booking hotels and flights

• Customer service

• Creating and sending invoices

• Researching leads

• Processing online orders

• Bookkeeping skills

• Calendar management

• Transcribing voicemails

• Compiling reports

Leverage Your Skills To Save Money

There are a lot of projects at home you can do yourself as opposed to paying someone else. You can create an effective savings plan only by using your skills to save money.

Hiring someone to complete home renovation projects is extremely expensive. Yes, you do need professionals for specific tasks such as electrical or HVAC, but there is still a lot you can do yourself to decrease your expenses. You can find instructions for almost anything you want to do online.

YouTube offers an excellent selection of tutorials for numerous home improvements and repairs. One of the best ways to live cheaper is to spend less money around the home. You can also look for companies offering gift cards for specific purchases. You may be able to find what you need at just as good of a price, and earn a gift card. The next time you need to make a purchase, you can save money by using your gift card.

Get Serious About Saving Money

You can easily find these types of offers just by performing an online search. There are certain sites you can join for free to earn gift cards when your purchases total a specific amount. You can conduct your research during your free time. I’m a fan of using Rakuten to earn cashback whenever I need to buy something online.

Learn To Cook

You may be surprised how much money you can save simply by making your meals at home. You can enjoy delicious meals for much less than eating out at a restaurant. Even fast food can be expensive, especially if you indulge often.

Pack your lunch for work instead of going out or ordering in. When you are going to be away for home for a relatively long time, pack drinks, lunch, or snacks. You can save a lot of money on your vacations by packing the majority of your meals and snacks.

Avoid Fancy Resorts And Hotels

The next time you take a vacation, stay in an extended stay motel. You can pack enough food for your breakfast, lunch, and snacks. You will have the facilities to prepare your favorite meals.

You can go out to dinner at the local restaurants for something more unique. You will save money by drinking water instead of expensive soft drinks, fruit juices, and fancy beverages. Replace costly bottled water with tap water. If you do not like the taste of your water, you can purchase an inexpensive water purifier for your faucet.

Negotiate For Better Deals

You may not realize you can negotiate the rates for many of your expenses. Two excellent examples are your cell phone and cable television plans. I finally cut the cord and wrote a great post about how to cut the cord and still watch great television shows.

If you’re dead set on keeping cable, call the customer service department to find out if there are currently any promotions or exclusive deals available. If you call every once in a while, eventually, you may find something good. The rates and plans for numerous companies are always changing. Once you have been with a company for a long time, the current rates may be better than what you are paying. Take advantage of the best possible rates.

You can negotiate rates through a budgeting app. This includes many of your bills, such as the internet, medical expenses, cable, and phone. Work with your credit card providers to negotiate better rates. Cancel your subscriptions for magazines or anything you no longer use. The savings of everything combined will enable you to live cheaply.

Wrapping It Up

In reality, many of us make more money than we realize. The problem is we spend more money than we realize as well. Focus on being intentional with your money and spending only on things that bring value to your life.

There are many different ways to save money, it just depends on what you are willing to give up at this point of your life. Remember, personal finance is personal. It is not one size fits all. Commit to reducing your financial stress and make a plan to live the life you deserve.

This post originally appeared on Arrest Your Debt.

Most of us make way more money than we actually need to survive. Unfortunately, many of us get sucked into spending out of boredom, habit, or a lack of financial planning.

Fortunately, we have put together eight different ways to save $500 a month easily!

1. Automate Your Saving

To guarantee you save $500 a month, use the strategy of automatically paying yourself first. Most people do their best to limit their spending during the month and save whatever is leftover at the end of the month.

Unfortunately, this strategy usually ends with spending more than anticipated, and little to nothing left to save at the end of the month. If you’re using the cash envelope or other budget method, it can be hard to remain disciplined if you have extra money sitting around.

To pay yourself first, treat your saving goal as a bill to yourself. Your $500 saving goal could be split into a weekly saving bill, bi-weekly (if paid twice a month), or monthly bill. Pay this bill first, and move the money into separate savings.

To save $500 each month, split your bills into:

One large bill of $500

Two smaller bills of $250 twice a month

Four small bills of $125 each week

After paying your savings bill, pay all the remaining necessities before you leave the discretionary spending money in your account.

Paying yourself first will guarantee you save an extra $500 a month.

2. Cancel Your Gym Membership Due To Covid

If your gym is currently closed, are you positive you are not still paying for a membership?

During the pandemic, many gyms have been forced to close. However, many of the gyms that closed have also continued to charge monthly membership rates -unless the subscriber manually canceled the memberships.

If your gym is currently closed, make sure you are not still paying the monthly fee.

If your gym is open, are you using it enough to justify the ongoing fees? Many of the exercises you do at the gym can be performed at home by using cheap weights or your own body weight.

Canceling a gym membership can save you a significant amount of money each month towards your $500 goal.

3. Refinance your student loans

Restructuring a high-interest student loan can be a great way to save money each month. Many students obtain their student loans as young adults, which results in a higher than an average interest rate.

If you have obtained your degree and are a few years into paying down your loan, refinancing may help you lock in a historically low-interest rate. A low-interest rate can lower your monthly payments as well as save you money in interest paid to the bank over the term of the loan.

Be sure to factor in the fees associated with a restructure to ensure it makes sense to actually refinance.

4. Switch To A Streaming Service

Cable bills are notorious for slowly increasing your rates month over month until you are paying hundreds of dollars for channels you never watch. Rather than paying over $100 a month for a few select channels you actually view, ditch cable, and “cut the cord.”

Switching to an online streaming service that matches your needs, you can easily save a bunch of money each month while still enjoying the shows you love.

If you are a movie lover, Netflix is a great choice. If you enjoy newly released shows during prime time, Hulu is another great option.

With so many online streaming options that offer their service for less than $20 each month, you’re sure to find what you enjoy while saving money at the same time.

5. Have A Yard Sale

Last month we rounded up a bunch of stuff in our house in an attempt to “minimize” our junk. The initial intention was to get rid of a bunch of things we no longer use by donating it or throwing the items away.

At the last minute, I decided to draw up a few yard sale signs and tape them up around our neighborhood the night before. I didn’t take the time to label any of the items with prices and literally prepared the night before.

The next morning I sat outside and watched the traffic flow in. For each item, people asked how much I wanted for it and most averaged between the $1 – $3 range. After about three hours, it was getting hot, so I decided to end the sale.

After three hours of work, on my own time, which also helped me get a bunch of old stuff out of my house, I was able to bring in an extra $140! I then took the remaining items and donated them to get them out of the house.

Don’t underestimate the price someone is willing to pay for your old items such as clothes, furniture, books, and toys!

6. Rent Out Unused Space

While many people are familiar with how to rent to own, often we forget how much we can rent our unused space without giving up any ownership. If you have unused space at your home, you may be able to cash in by renting it out.

Rent Out A Bedroom

The traditional method is to rent out a spare bedroom to a roommate for extra cash. However, if you’re located in a tourist location, you may be able to rent a spare bedroom to vacationers through a site like AirBnB.

In addition to renting out spare bedrooms, there are other great ways to capitalize on unused space at your house.

Rent Out Garage Space

If you have an empty garage, you could demand a significant amount of money to rent it out as a storage unit. Keep in mind, the renter would need access to your garage to access their items.

Rent Out Your Backyard

People who live in areas with a homeowners association (HOA) routinely struggle to find places to park their recreational vehicles. If you have a large backyard without an HOA, you can rent out space in your yard for people to store their RVs and other expensive toys.

If you have beautiful landscaping or scenery, a backyard wedding may be the perfect venue for you to bring in extra money each month. With large wedding venues currently shut down, many people are going with non-traditional backyard settings.

Before you utilize any of these strategies, check with your homeowner’s insurance to see what additional coverage you may need to protect yourself and your property.

7. Embrace Meal Planning

Making dinner and lunches at home will usually save you a significant amount of money compared to dining out. Even with many dining establishments currently being closed for in-person dining, take out services such as Grub Hub are seeing an all-time high amount of customers.

Even though many restaurants offer free delivery, the price you pay for this food is easily twice, if not three times, the amount you would pay if you made the food at home on your own.

Many people who try to meal plan fail after about a week. Often, this is due to a lack of motivation or a real strategy to be successful. Utilizing grocery curbside pickup options can help you meal plan every week as long as you intentionally carve out time to prepare your meals.

A meal planning habit can be challenging to develop, but it can save you a significant amount of money each month if you’re able to stick with it.

8. Compare Auto And Home Insurance

Most of us have been with the same car and home insurance company for years. We either started with this company because our parents used them, or the company offered the lowest rates at the time. Often, many of us neglect to shop around every few years to guarantee we are still paying the lowest price possible.

To save money on insurance, do a quick online price quote for several well-known insurance providers. You may be surprised to find that your cheap plan has become much more expensive than other companies who are competing to get your business.

Keep your insurance company honest by shopping around every few years and calling to request a cheaper monthly rate.

Key Takeaways

There are many great ways to save $500 each month. These include:

Automate your savings by paying yourself first

Make sure your gym is not still charging you

Refinance your student loans

Switch to a streaming service

Declutter and have a yard sale

Rent out unused space

Take meal planning seriously

Compare or renegotiate your current insurance rates

Whatever option you choose, avoid being complacent with your bills and financial strategy. We all overspend in certain areas, and it’s up to us to identify this waste and stop it once and for all.

This post originally appeared on Arrest Your Debt.

It’s not uncommon to feel bored at work. Most of us fall into a routine where one day blends into the next. Whether you are working from home during this time or not, doing the same thing day after day can be boring after a while.

Studies have shown that boredom is an integral part of our daily lives and that it can actually be good for you. Idle time gives you and your brain a chance to rest. That can help boost productivity, improve problem-solving, encourage altruism, and allows you time to reflect and reexamine your goals or set new ones. It also gives you a chance to simply stop and smell the roses, as the saying goes.

On the other hand, being bored at work is a significant contributor to work-related stress. So it’s essential to pay attention and think about the real reason you are feeling bored.

If you’re just having a slow day, there are lots of little tasks you can do to pass the time.

But if you are easily bored most of the time, that could be indicative of a bigger problem. Like perhaps this isn’t the right job for you, or you are neglecting your mental health and wellbeing. In this case, ignoring what’s really causing your boredom and doing nothing about it could make things worse.

Being bored at work isn’t necessarily a bad thing, though. It can help keep us from becoming stagnant or trapped doing something we don’t want to be doing. Your boredom could be that push you need to make a change – no matter how big or small.

10 Productive Things To Do When You’re Bored at Work

1. Clean-Up & Organize

You probably already use some of your downtimes each day to tidy your workspace. But there’s more to cleaning up and organizing than just wiping down your computer and stacking your paperwork into a neat pile.

If you find yourself getting bored at work, try cleaning your workspace. Keeping a clean workspace helps to cut down on the chances of getting sick at work. Decluttering and getting yourself organized helps you do your job better and is beneficial to your overall mental health. So if you find yourself becoming bored, this is a great place to start.

Deep clean your keyboard, mouse, monitor, desk, and other surfaces.

With a few cleaning supplies and some elbow grease, spend time to really make the equipment and space around you shine. Germs, dust, and dirt can get everywhere, and could be making you sick without even realizing it.

Clean up your emails and digital files.

Delete the old emails from your inbox. Unsubscribe from the newsletters that you never read anyways. Create or better utilize folders. Run those updates. Clean up your desktop shortcuts, back up your work, and essential files.

Clean up your files and paperwork.

Even in a digital age, the paperwork can really start to pile up. Don’t just throw these documents into a filing cabinet where you may never look at them again. Take some time and sort through what you actually need to keep and come up with a filing system that makes it easy to find.

Rethink your set-up.

Is your workspace really set-up most efficiently and ergonomically possible?

Research shows that sitting can be just as bad for health as smoking. But standing for long periods can be detrimental to your health, too. No matter what set-up you have at work, take some time to assess your ergonomics and work-flow and improve what you can.

2. Review Your Employee Paperwork

When you first got hired, your boss likely bombarded you with the various new hire paperwork associated with your job. And chances are good you only skimmed a lot of it intending to take a better look at it once you settled in. Let’s face it, these documents can be uninteresting and can get boring, too. But if you never got around to it, now is a perfect time to. Or, if you have been with this employer for a while, now is the ideal time to review everything to make sure you aren’t missing out.

Read your employee handbook.

Your employee handbook should include all of the policies and procedures associated with your job, so you must familiarize yourself with it. It helps to ensure that management and staff members are on the same page, that established systems are being followed, and is a point of reference to use if there is any confusion.

Read your union’s collective bargaining agreement.

Most people only turn to their union when something is going wrong, and they need help navigating work-related issues or grievances. But they also ensure your rights are being met when it comes to things like pay, benefits, scheduling, leave policies, health and safety, and harassment and discrimination.

Unfortunately, there are managers out there that try to take advantage of their employees. That can happen even when there is a union agreement in place. How can you exercise your rights if you don’t know what they are?

Read your benefits, insurance & retirement options.

If you have benefits and retirement options at work, take full advantage of them! Ask questions if anything is unclear. It’s your money and your future, after all.

Research your 401k, RRSP, pension, or retirement plan to make sure you understand it and are maximizing any matching contributions. Are there any stock options or profit-sharing opportunities that you could be investing in?

Look into your insurance coverage and make sure it meets your needs. Adjust it if it doesn’t.

Familiarize yourself with everything your benefits cover, as well as the deductibles, co-pays, and other out-of-pocket costs. Most health insurance benefits will cover the basics, including prescriptions, dental and visual, but some include other work perks like gym memberships and massage therapy.

You may even discover extra benefits you didn’t know about, like childcare, education allowances, expense reimbursements, and employee discounts.

3. Research Your Industry

Staying up to date with your industry is a smart way to give yourself a competitive advantage.

It also can help you figure out if you want to continue down this career path or if it’s time for you to make a career change and move on to something else.

Bored at Work – Watch videos, read articles & listen to podcasts.

There is a lot of content out there to keep you entertained and prevent boredom. You have the internet and the resources available to you through your employer. You can watch training videos provided by your human resource department. Find an inspiring TedTalk or a podcast by an industry leader. Read relevant blogs and websites. Subscribe to newsletters that genuinely interest you. Find like-minded people to follow on social media.

Bored at Work – Research your competition.

It’s important to know what others in your industry are up to – locally, nationally, and globally. That is one of the best ways to keep on top of marketing trends. It will also tell you what’s happening in the job market.

Bored at Work – Research your job description & salary.

While you’re scoping out your competitors, head on over to their careers page, the chances are good that they have job roles similar to yours.

So how do they compare? Are other companies expecting more education or experience from their employees? Is your salary fair, or should you be negotiating for a raise?

4. Update your Credentials & Accomplishments

If you are considering applying for another job, your resume and professional profiles need to be up to date. But it certainly doesn’t hurt to keep them updated, even if you are happy with your current situation. You never know when a new, exciting opportunity will present itself.

Update your resume.

Try to treat your resume like a living document and not only something you scramble to update when you suddenly need it. It’s a lot easier to keep it polished if you revise it regularly.

List of all of your accomplishments.

If you haven’t been tracking your career accomplishments, you should start doing so now. It’s a great resource you can use to demonstrate your value for performance reviews, when negotiating for a raise, or to highlight during your next job search.

Be specific. Stay focused on where you delivered the best results and can assign particular numbers or percentages. Quantifying your accomplishments is probably easier to do when you are at work and have access to the information needed.

Refresh your profiles.

Look at the LinkedIn profiles, portfolios, and websites from other people within your field. This can help you spruce up your wording while also learning more about what your peers are doing at their jobs.

5. Network

Networking is an essential part of every career path. It gives you the chance to learn and share ideas, improve your confidence, and develop professional relationships. Sometimes it’s all about who you know and not what you know.

Getting out (or online) to do some networking is a great thing to do when you are bored at work.

Join a committee.

Being part of a committee is an excellent way to network, take on more responsibilities, develop professionally, and have your voice heard when it comes to future company decisions.

Meeting and working alongside people from other departments means you get to know more about them and what they do, while also giving them the chance to learn more about you and see your work in action.

It can give you the chance to utilize other skills and add some variety to your work so that you don’t become bored. It looks good on your resume, too.

Attend networking events.

Getting out of the office could be the change of pace you need when work gets boring. Are there any upcoming networking events such as presentations, seminars, and conferences that you could attend? Or professional associations you could join? Mentally stimulating new experiences can help revive your enthusiasm for your profession.

Connect with new people.

There are also networking opportunities that aren’t industry-specific where you can connect with new people and further expand your network. That could include young professional groups, chamber of commerce, women’s networking groups, and your college alumni associations.

Don’t overlook making connections online, either. You are not limited to only those that are geographically nearby.

Reconnect with existing contacts.

Keeping up to date with those already in your network is essential, too. Take some time to update your contacts. While doing so, set reminders in your calendar to connect with certain people throughout the year.

If you’re feeling lonely, touch base with anyone you haven’t heard from in a while with a quick email or phone call, or better yet, schedule a coffee or lunch date with them.

6. Do Your Job, But Better

Be honest. Are you bored, or is this really procrastination? Could you be doing anything more at your job? Are there tasks that you’ve been putting off? Or more responsibilities that you are interested in getting involved in?

One of the most productive things to do when you are bored at work is to do your job – but do it better.

Get ahead with your work.

Most jobs have busy and slow times of the year. Using the slow time to get ahead with your work is a great way to make that busy time a little more manageable. Think about what you can do now to better set yourself up for your future. Update your materials and resources. Set up your files or documents. Create your own templates or guides.

Take on more responsibilities.

People get bored at work because there simply isn’t enough work to do. Some employers do a poor job of keeping their employees engaged, or they are too busy to notice that their staff has a lot of free time.

Whether you find it on your own or ask your manager to assign you something to do, consider taking on more responsibilities at work if you’re getting bored. Taking on a new challenge or project not only makes you look good to your boss but also builds your experience and skillset.

Help someone else.

Helping someone else is a great way to take on more responsibilities at work without necessarily having to make any significant commitments. You could ask a coworker if they need help with something, volunteer to help with an upcoming project or event, go above and beyond for a client or customer, or become a mentor to a new employee or junior member.

7. Learn Something New

Most companies welcome the opportunity for you to grow your skills or learn new ones that will help you do your job better and provide some mental stimulation.

Professional development funds, tuition assistance, or free access to courses might even be part of your employee benefits. If not, don’t be afraid to ask your manager to help cover the costs, especially if you can clearly justify how it will benefit you and the company. It can’t hurt to ask, right?

Either way, there’s plenty of ways to expand your knowledge:

Take a relevant course or program

Sign up for a webinar

Watch a couple of TED Talks

Listen to lectures

Learn more about the programs and software you use by testing new things out

Practice

Study what the experts are doing

Job shadow

Work with a mentor

Try teaching someone else

Solve brain teasers or puzzles

These things may not be on the list for your job description. However, there are necessary transferable skills that are useful in any job, including customer service, communication, and time management.

Don’t overlook your personal development, either. Your hobbies can also help relieve boredom and make you happier so that you’re not bored at home, too.

8. Take a Break

Our brains need distractions from our monotonous, tedious tasks. Daydreaming and allowing our mind to wander can inspire creative ideas and reduce boredom. Taking a break could be just what you need to recharge and get back to work refreshed.

On a slow day, take a 15-minute break when you grow bored. Step away from your computer screen and smart-phone. Get up from your desk, stretch, go out, and get some fresh air. Or just sit, meditate or do nothing when your work starts getting boring. Taking breaks throughout your day is good for you. Don’t work through them!

If you start feeling a little burnt out or have a lot going on outside of work, use some (or all) of your vacation time. You could take a couple of days to catch up with the rest of your life, or take a couple of weeks and get away from it all.

If things are more serious, you might consider taking a leave of absence. You may have paid short term leave through your employer or insurance or qualify for sick leave. Unfortunately, not many employers offer paid leaves, so this may not be a feasible option.

9. Plan Your Future

It can be easy to let the monotony of our day jobs get the better of us. You may think that you’re no longer passionate about your work because you find it boring and that quitting and finding a new job is the only solution.

It is an option, of course, but’s it’s not your only one. Everything happens for a reason, if you are not feeling fulfilled in your current career its time to figure out what’s next.

Figure out what’s next.

You can’t plan your future if you don’t know what direction you’re going. But how do you figure out what you should be doing with your life?

We are more productive at work when we feel valued, and our talents are getting utilized. If you don’t feel this way, you probably feel bored with your job instead.

Do you want to overcome this boredom and grow or advance within your role? Are there any opportunities for an internal promotion? Or is it time for you to move on?

Outside of work, what do you want next? Are you hoping to start a family or buy a house soon? Your life goals matter, too, and will influence what steps you take with your career.

Define your career goals.

Your short term and long term career goals act as a roadmap towards a successful future. It’s essential to define them, but you also need to develop and follow a strategy to achieve them. Doing so helps to keep you motivated and engaged, focused on your priorities, and makes sure you are following the right steps to achieve your goals.

If you’ve previously set career goals, check-in on your progress to see if you are still on track. Check to see if they align with your values and what’s important to you.

Set new, challenging goals for yourself.

Bored workers often feel unchallenged, disengaged, and depressed. If your work becomes too easy or too repetitive, you are not going to feel so fulfilled or interested in it anymore. Setting new, challenging goals for yourself is one way to make things more fun and exciting.

So get out of your comfort zone and start moving towards whatever it is you want to accomplish.

10. Find a New Job

Being bored at work is one of the top reasons people quit. We feel underutilized and capable of doing more. Or our interests and priorities change, so the job is no longer right for us.

It’s okay if you decide the best way to deal with a job you find boring is to find work elsewhere.

It might be tempting to look and apply for other jobs while at work if you’re seriously bored, but it’s risky and not recommended. Doing so could cost you your current job. But there are a lot of other things already mentioned that you can safely do that supports your job search, such as researching your industry, updating your credentials, networking, and learning something new.

It might also be tempting to quit right away, but this, too is risky and not recommended. Finding a new job takes time. You don’t want to be stuck accepting a new tedious task out of desperation where you’ll just be bored again. Take the time to find something better where you can have a meaningful and rewarding career.

Everyone becomes bored at work from time to time. Choosing how to cope when your job becomes boring is up to you.

This post originally appeared on Arrest Your Debt.

Do you like ordering pizza and clothes online? Are you one of the many individuals who love to save money while shopping on your couch? I am definitely one of those people. The Honey app promises to help people save money by automatically finding coupon codes. If it works, it would be a huge time saver. Because I frequently use and apply coupon codes when ordering online, I wanted to detail our experience with the Honey app in this Honey Review.

I wanted to give Honey a chance because searching for coupons and promo codes during checkout is a pain. Multiple times I have realized that I missed a great coupon after the purchase was complete. This failure to save money can become frustrating. I began to look through popular browser extension apps to find one that would automatically enter coupon code for my purchases.

I found the free browser extension from Honey. Honey’s primary goal is to save you money while shopping online. I wondered if this free browser extension was worth my time. I decided it was worth the effort to at least try the app. The following article answers some of the fundamental questions that I wanted to solve.

What Is Honey?

For most of us, it’s difficult to turn down a great deal. I realize the retail world is becoming more competitive, and I know shopping online will continue to offer more ways for us to save money. Honey is one of those apps focused on trying to save customers money by doing the hard work for them.

The Founders Of Honey

Honey was founded in Los Angeles, California, in 2012 by Ryan Hudson and George Ruan.

The idea for Honey was sparked when co-founder Ryan Hudson was trying to find an online coupon for a pizza order he was making for his kids. After he struggled to find an online coupon, he started designing his own browser extension that would do the hard work for him.

Ryan later partnered with George Ruan to make his dream a reality. Five years after starting the business, the company boasted over 5 million downloads and $40 million in revenue.

Understanding The Honey Browser Extension

Honey is a browser extension. The term browser extension may be somewhat new to people – so let me explain. A browser extension is similar to an app on a cellphone. However, instead of attaching to your phone, this app connects to your internet browser. The Honey browser extension is compatible with Chrome, Firefox, Safari, Edge, and Opera browsers.

For this Honey review, I used the Chrome add-on browser extension. With this extension, Honey automatically searches for and then applies coupon codes at the checkout when I make purchases from my favorite online stores. These codes are useful in thousands of online stores. Honey has been around since 2013 and continues to grow its base.

After a thorough review, this free extension is one of the top ways I discovered to save money. I always tend to forget about coupon codes until after I have placed my order. The Honey app automatically applies the most valuable coupon without me having to do anything.

This app also notified me of a price drop on one of my items from a different online store. It also compared my basket items from one seller on Amazon to all of the other sellers who offered the same item.

The Honey app also offers a rewards program called Honey Gold. This program rewarded me with “gold” with every online purchase I made. This Gold can be used later to get gift cards from online stores. I will explain this process in detail later in this article.

How To Use Honey [My Experience]

The overall process of signing up and using Honey on my laptop was much easier than I anticipated. With just a couple of clicks, I was able to sign up with my Google account and add the extension to my Google Chrome search bar.

Step 1: Head Over To

From this point, I quickly found the call to action button in the middle of my browser. From there, after clicking the link to start the signup process, I was given the choice to join honey with several convenient account options.

Join with Google

Join with Facebook

Join with PayPal

Join with Apple

I personally use Google for all my accounts due to the easy signup and login process.

After clicking the Google account button, my account with Honey was created. No adding my address, phone number, mother’s maiden name, or any other annoying questions!

Step 2: Download The Browser Extension

After signing in with my Google account, I was redirected to the download page to add the Chrome extension to my web browser.

download honey google chrome extension

From the above image, you can see I already installed the extension on my computer. Something else to pay attention to is the amount of users and the reviews it has.

Over 10 million users and 156,133 reviews! The extension also averages a five-star review rating. I don’t know that I’ve seen any other app with that type of positive rating.

Using The Honey App

I stated that the browser extension Honey will save you money, especially if you are on a tight budget. This Honey review will show you how it works and how much it actually saved me. When you use Google Chrome, Safari, Microsoft Edge, or any other browser, you install this extension, and it is supposed to find savings automatically.

As stated before, a browser extension is an app for your browser. I prefer to use Google Chrome when deciding on a browser extension because it has a massive marketplace full of a wide variety of attachments.

Each of these extensions has a rating associated with how well other users liked or disliked the app. Honey was an extension that had a higher rating than most of the others. So, my first step was downloading the Honey extension.

When I researched the app, I found that the average savings was $32 a month for those customers who frequently shop online. I wanted to save this amount each month. I started by using it with my Amazon account. I will explain how to do this later in the article.

Using Honey With My Amazon Account

While shopping on Amazon, I realized Honey was saving me money, but I was not convinced that it was $32 a month, even though I made multiple purchases. I decided that this average saving was probably not the best place to focus on.

Shopping Through The Honey Account

I changed my mind and decided to pick one product and see if Honey could find the product at a reduced price or use coupon codes to get the best deal. I started this process by opening my Honey account and searching for the product.

As a starting place, I found a frame I wanted to purchase which was listed at Walmart for $34.99. When I searched the Honey app, it found the same frame from Target for $29.99. Honey found me a lower price, but could I do better with coupon codes?

I left the Honey app to see if Honey working in the background could find a coupon code for my frame. I used my Google Chrome browser and typed in the name and size of the frame I wanted to purchase. I found it at Kmart and Sears for the $29.99.

Unfortunately, Honey could not find any coupon codes to save me any more money. When I went through the checkout process for Kmart, the Honey app’s only suggestion was to use Chase reward points for the frame’s purchase. I found the frame at a discounted price, but I was a little disappointed about the lack of coupon codes.

While Honey didn’t deliver on the coupon code for this purchase, it did initially show me where I could find the item cheaper.

What I Liked About Honey

After experimenting with the Honey app, I still had a variety of questions I wanted to be answered. The thing that I liked most about Honey was the iPhone app. I downloaded this app after using my Google Chrome extension.

The average discount using the app was also one of my favorite features. The extension featured over 40,000 websites where I could save money. With the app, I was able to shop over 100 stores that contained exclusive bonuses and coupons. The Honey app was eerily similar to the Rakuten app. I wrote a detailed review of my experience with the Rauten extension over here.

Powerful In-App Platform

The search bar at the top of the app is extremely convenient when searching for a particular item. I love to purchase books for my family members. On the Honey app, I appreciated that I could click on Barnes and Noble and see all of the available coupons and discounts.

Honey And Coupon Codes

I hate finding coupon codes online by using a search engine, so I like that Honey automatically finds the best deals for me. It not only saved me money, but it also saved me time and effort.

Monitoring Price Drops

I also really liked the price drop feature of the app. I was able to put a few of my favorite items in my watch list area, and the price drop would send me a notification when the price of these items dropped. The Honey Gold notifications were also beneficial when trying to earn gift cards.

Routine Monthly Purchases

On the app, I was able to view my order history. I purchase a few medical and hygiene items every month when I get paid. My order history makes it easy to find these items and then find better deals than anywhere else.

I can also store emails in the app, making it easy to contact the previous retailers I have used. I can even personalize the Honey app to match my preferences. I can change notifications and add payment methods without issues.

Click here to get started with Honey for FREE!

What Do I Dislike About Honey?

As I was using the Honey app, I decided that overall I liked the user-friendly aspects of the program. However, I did find items that I did not like as well. I usually use my phone for all personal shopping and other confidential communication.

I use my laptop primarily for work. I registered for Honey utilizing the app. When I finally made it to a desktop to use Honey, I realized that the app only allows you to access a small percentage of the stores that are part of their team.

This fact was frustrating because when I searched for a particular item on a desktop, I found more results than in my app. When I explored on the desktop, it gave me stores I typically do not shop. I do not know if I used the desktop more often if this would change.

I know that I would prefer the stores I frequently shop to be at the top of the list. I can save particular stores in my droplist, but until I have them saved, it takes me a minute to find them while using a desktop.

App Availability

I started using Honey on my iPhone (Apple). When I explained to another friend about Honey, we decided to download the app onto her phone. She does not have an iPhone. Unfortunately, she was unable to download it because she has an Android and the app is still in development.

I was disappointed with this issue, so I researched why it would not work with her phone. It turns out that the app is relatively new, and it is only available for Apple users. According to the Google Play Store, the Android-based app will be released soon. However, it was not available when I published this article.

What Are The Advantages Of Using Honey?

I believe that everyone can benefit from downloading this particular app. It can provide you with the best possible deal available while shopping online. However, as with all things, the Honey app has a variety of advantages as well as a wide array of disadvantages.

One of the best features of the Honey app is it is easy to download. I have tried similar apps in the past, and you have to create a login. It can take a while to go through all of the steps. With the Honey app, I was able to use my Google email account to log in. It took me a few seconds to start scrolling through the app.

Honey Is Free. Completely.

Another advantage of the Honey browser extension is that it is entirely free. You never have to pay for anything associated with using the benefits of the app or browser extension. My new Honey account immediately started saving me time.

Honey automatically searches every store I visit, so this process saves me a ton of time. I use to search for applicable and working coupon codes before I started shopping. I sometimes forgot that I had a coupon code for an item until after it was already purchased.

Honey makes sure I use the available discount codes automatically. Another advantage to Honey is you can access a large variety of online stores and products. Honey continues to add travel, shopping, and other outlets daily.

The best feature of the Honey extension is you save money without doing anything – like literally nothing. No extra steps – nada. I was able to start saving on my very first purchase using the app. The promo codes for my first purchase saved me around $1.03 off the lowest price available.

What Are The Disadvantages Of Using Honey?

I did some online research to reveal the common complaints users have. The first area of concern for most individuals is the inconsistency of Honey’s customer service department. Some people have experienced some frustration when trying to find an answer to a quick question. Since the beginning, I have not needed customer service, so I do not have any personal experience with this department.

Even though Honey’s primary goal is to find the best deal available, sometimes, the suggested coupon codes are expired. This fact can be annoying when you are trying to find an item quickly. Some of the discount codes do not provide details.

The lack of details means you have to apply the code before you know what it entails. This process can be time-consuming if you have to apply and remove multiple codes. Working coupon codes are great. However, Honey cannot always find coupons for every product.

App Crashes While Shopping

As I was using the app on my iPhone, the system crashed. I was concerned, so I followed this issue up with some research. I found that many users believe that the app is prone to crashing. Sometimes it will even boot you out of a shopping site.

When you are booted out of the shopping website, sometimes your cart is also emptied. After finding a few items, an empty shopping cart can be frustrating, but it can cause you to walk away from a purchase. I guess that saves you money – in a weird, frustrating, irritating kind of way.

As with everything, Honey has disadvantages as well as the above advantages. Despite the above difficulties, most of the Honey browser extension reviews state the benefits greatly outweigh the cons. I agree with these reviews.

I probably will not continue to use the Honey phone app but I totally love the browser extension on my computer. It has continued to work flawless for me.

Is Honey A Safe App?

In general, most browser extensions similar to Honey are safe. However, every one of these extensions has the potential for abuse. When downloading the extension, it is possible also to download hidden malware. Sometimes, these extensions also collect your private information for a variety of purposes.

Be sure to download any apps from the official website of the company. Third-party websites are much more likely to have malware or viruses attached to their downloads.

Honey Tracks Your Shopping And Spending Habits

When investigating the safety of the Honey app, overall, it seems to be simillar to other well-known companies. When you shop online using Honey, it is collecting data about your spending habits. This information is sent back to the servers at Honey. Even though this information may contain sensitive data, Honey guarantees they do not sell or give this data to third parties.

According to their privacy policy, Honey states they gather these shopping habits and web browsing data to ensure it appears only on particular pages. The company says this information is only sent back to the services as a way to verify purchases. They confirm the purchases to allow you to benefit from the Honey Gold program.

The best advice I can give you about using any website, app, extension that collects and uses private information is to read the security and privacy policy. You should always read these two documents before using the app.

Honey is free money in your wallet, so it is natural to question the app’s safety. The same risks that apply to everything you download apply to Honey. However, Honey seems to do an excellent job of protecting you from malware attached to its program.

Nothing in life is free, so how do they make money? Hint: I answer this down below.

How I Saved The Most With Honey

I get free money every time I use the Honey app. This money comes in a variety of forms. The Honey app automatically finds me the best deal available, but I have found three excellent tips to save even more money.

Tip #1: Use the Honey App

Most of the time, I usually go to my favorite store and find whatever I need. When I do this, I am hoping that the store will offer a working coupon code. However, I have found it is more useful to go to the Honey app before shopping.

With the Honey app, I can see if there are any available coupons for my favorite store. This process gives me a chance to decide if I want to shop at that particular store or look for an alternative store with a better deal.

Tip #2: Discount Codes

Sometimes I already have coupon codes that I did not get from Honey. These codes can be used with Honey’s discounts to give me an even more significant discount. I did this by going to the Honey extension and using the ‘share a code‘ box to submit the discount code.

Tip #3: Check Prices

When I shop on Amazon, a badge next to a particular item tells me if I see the best price possible. I also check this badge before adding any product to my order. This badge has helped prevent me from paying too much for a variety of items.

What Is Honey Gold?

As I use the extension, Honey allows me to earn rewards. These rewards are offered through the Honey Gold program. This rewards program is completely free when you shop over 4000 sites while using the Honey app or extension. While shopping using Honey, you are earning a specific percentage back in Gold.

Earning Honey Gold

The reward points are based on the subtotal of my purchases. It does not allow me to include shipping, taxes, or any other additional fees. The one annoying thing about Honey Gold is the reward amount is random and varies from one site to the next. The reward amount seems to be pure luck.

While Honey Gold is offered at a wide array of the available sites, it is not provided at all of them. Amazon is one of my favorite websites to shop. Honey offers a variety of coupons at Amazon but does not provide Honey Gold rewards – insert angry face.

Using Honey Gold For Gift Cards

An icon next to the name of the website lets me know if Honey Gold is offered. I have to click apply coupons when I am checking out to make Honey Gold automatically. After my purchase is complete, Honey Gold shows as pending in the Account Overview section between two to 14 days.

The merchant must confirm my purchase, so it stayed pending for around 60 days. If I return a product or ask for a refund, I do not receive Honey Gold. When I reached 1,000 Gold, I was able to ask for a $10 gift card at a variety of different shopping sites, which included Amazon, Target, eBay, and Walmart.

I was able to earn Honey Gold as soon as I joined the Honey program. The program offers a welcome bonus to United States members. This offer is time-sensitive, so I had to purchase within a designate time. The amount of the prize is tied directly to the shopping site.

After this initial welcome bonus, other bonuses can be earned as I shop. An orange box appears if the shopping site gives a Honey Gold Bonus. This box can be found on the right side of the window. When I clicked it, a pop-up explained the bonus requirements.

How Does Honey Make Money?

After using the Honey app for a while, I realized it is entirely free. I was waiting for the popup or the “subscribe for more discounts” section, but it never came. This fact made me start to wonder how does Honey make money to stay in business. I was curious if there were hidden charges that I did not notice. I also wondered if they added fees when I checked out.

My retirement account is full of

[

hidden fees

](https://arrestyourdebt.com/the-hidden-fees-in-my-employer-sponsored-retirement-plan/)

so I’m always skeptical about deals that seem too good to be true.

Neither of these two ideas was correct. After reading more of their disclosure pages, I found Honey makes money from commissions. I know it sounds crazy, but Honey’s merchant partners pay the company a commission while providing you additional savings. This commission is activated when a Honey member uses the app or extension to find the best deal using available coupons.

I love win-win scenarios!

It is also activated when I use the Honey Gold rewards program. They use a system similar to the Honey Gold program confirmation of the purchase process. This system verifies your purchases, so the merchants know how much to give Honey as a kick-back. Once your purchase is confirmed, the company pays Honey an unknown agreed-upon amount of commission.

These commissions are typically a percentage of the amount of the Honey member’s transaction. The rate is sometimes between 5% and 10%. However, the actual commission varies according to the merchant.

One of the best benefits associated with Honey is passing some of these earnings back to the customer. The Honey Gold program is used to take some of this commission and give it back to Honey’s members. I like this win-win situation when using the Honey extension or app.

Does Honey Steal My Information?

One of my most significant concerns when downloading the Honey extension was were they going to steal my information or just plain sell it to other people. This fear led me to read the privacy and security policy associated with the Honey program.

I also read a few letters written by the founders of the app and extension. It was stated in both places that Honey does not sell or steal personal data for any reason. The primary goal of the Honey program is to find its members the best deals.

Everything I read inferred that Honey receives money from the website when a member makes a purchase using a Honey coupon, offer, or promo code. Honey earns enough money from these fees, so they do not need to sell your data to third parties.

“Steal” Is A Strong Word

However, all of this does not mean that Honey does not collect information. They collect some data from the online shop to find the best coupon codes or promo codes for the product. Honey also admits that they do take a limited amount of shopping data. Of course, you have to read the fine print to find out what exactly they collect.

This data is used to support what the company calls the Honey Community. The Honey community can benefit from this real-time information which is the reason it is collected. This information includes deals, products, and prices, which other members may need to save money and time.

This information can alert me to which promo codes work. It also helps to inform me when a product is on sale. When other community members use the app or extension, it sends updates to them about the best possible deals.

Honey seems to be pretty transparent about the exact information they collect. They also explain the purpose of gathering that particular information. I do not believe that they steal data, so my suggestion would be to decide for yourself if you believe it.

Is Honey Really Free To Use?

As stated earlier, there isn’t a blaring area asking for money but perhaps I am unknowingly paying for the service some other way?

Honey Savings Finder

I realized that Honey has various tools to use. One of these tools is the savings finder, which is the main feature of the extension. This tool is what automatically finds me the best deal on a particular product. It searches thousands of shops.

Honey Gold Program

Another tool or feature is the Honey Gold program, which pays me money to use it. I can earn Gold by shopping at particular online stores. Once I have accumulated 1,000 Honey Gold, I can then trade it in for a $10 gift card.

Honey Price History Tool And Droplist

Honey shows price history – even on Amazon!

The price history tool allows me to track a product’s price. This tool shows me past trends to help me decide when to purchase. Another excellent tool associated with Honey is the droplist. When I add items to the droplist, Honey will send me a notification when the price drops.

Price history for the bike I was shopping for

When shopping on Amazon, Amazon’s best price tool helps me compare my product’s price to the cost of others selling the same product. The price finder also works well when I shop on Amazon. All of the above tools were designed to save me time and money.

What’s The Catch?

After learning about these fantastic tools, I wondered when I would figure out the catch. I was incredibly cautious about the cost of this browser extension with all of these tremendous benefits. However, I have completed extensive research and can say with certainty that Honey is 100% free.

In fact, when I signed up for Honey Gold, I begin to make money. Honey definitely saves me money, but with Honey Gold, I can make money from multiple purchases.

Does Honey Work With Amazon?

For the most part, Amazon does not offer site-wide coupons. This fact may make you think Honey cannot work with Amazon. However, Honey has a variety of tools I discussed previously. These tools helped me find savings while shopping on the Amazon website.

Honey Best-Price Detection With Amazon

I know that various options are available in the marketplace when I find a specific product on Amazon. However, the lowest price is not always the default setting when using Amazon. With the Amazon best price feature activated, Honey searches for a better price automatically.

The tool only finds the same size, features, and color item that I want. When Honey does this search, they take shipping delays, Amazon Prime benefits, and shipping costs when determining the best price. This feature also lets me know when I have already found the most affordable product.

Honey Price History With Amazon

The price history feature allows me to see the changes in prices for a variety of items. This history can be in the last 30, 60, 90, or 120 days. I can use this tool to see a detailed page about the item’s price history, even when using Amazon.

Honey Droplist With Amazon

I love this feature. I can place an item in the droplist, and it will let me know when the price drops. I can use this feature with Amazon to ensure I get Amazon’s best price available. I can even use all of these features on Amazon Smile to benefit a charity.

How To Uninstall Honey

If you decide that Honey is not right for you or do not see the benefit of the app, you can easily uninstall it. The first step to uninstall Honey is to delete your account. To delete an account, you must follow two steps:

Step 1:

When removing your account, you must first go to the account setting page. While on this page, you will find a delete account link. This link is located towards the bottom of the page.

Step 2:

When you click this link, a unique code will be displayed. You must enter this code when prompted. After the code is entered, you will click delete forever. Once you click this link, your account is entirely removed from the Honey system. It also removes all of your data from their system.

Remove The Honey App From Your Device And Browser

Once you have deleted your account, you can remove the app from your phone the same way you would delete any other app. However, if you are using the browser extension, you will need to follow a few steps.

These steps are different depending on the browser you are using. You can find the individual steps for each of the browsers by visiting the Honey website. The website provides detailed instructions on how to remove the extension.

I would suggest providing Honey with feedback about why you are uninstalling the app or extension. This information will make their product better.

Is Honey Worth Using?

Overall, I would say that the Honey app is worth using. However, before using the app, you should read the privacy policy. If anything in the privacy policy bothers you, you should not use the app.

Honey is an easy app to start using and making money. Honey is one of the best programs with the ability to find you the best deals available online. In exchange for these fantastic deals, you share access to your web browsing data and online shopping information.

Some people are uncomfortable with this exchange of information. I find the rewards are well worth sharing my information. I particularly like the Honey Gold program and have already earned multiple gift cards utilizing this free service.

Refer Friends For Even More Honey Gold

Referring friends is one way to get the most out of the Honey Gold program. When I looked at the monetary benefits of using the Honey extension, it is definitely worth it. I began this process with some reluctance because it sounds too good to be true.

Sometimes when I am shopping, Honey cannot offer me a working coupon code, which is disappointing. However, the app and extension are entirely free, so I do not lose anything when the program cannot find a lower price.

However, when the program does find a lower price or promo code, I am not only saving money, but sometimes I am earning it. I only see a financial gain and no financial harm from using Honey.

Would I Recommend Using Honey?

Absolutely. Honey was easy to set up and sometimes I forget I installed it on my browser. To this day it is still located in my browser bar and when I go to make a purchase online, Honey alerts me if there are any coupon codes or cheaper prices elsewhere during the checkout process.

It runs in the background and doesn’t require any additional work. It really is worth it in my opinion.

This post originally appeared on Arrest Your Debt.

Believe it or not, companies are eager to earn your business and are willing to send you free samples by mail in hopes of establishing you as a client. However, there are many time-wasting scams out there that will end up costing you money with the lure of a “free sample.”

This guide will provide you with the best places and companies to contact to get free product samples – without any strings attached.

Costco is no longer the only goto for free food samples. You can get all types of free baby formula and product coupons online with minimal effort. If you love to receive free samples as much as I do, keep reading!

Avoid testing new products by putting them on your credit card. Instead, leverage the power of marketing and free product testing to save you serious cash.

Get Companies To Send You Free Samples by Mail

There are several techniques you can use to get a company’s attention if you want to stand out from the crowd.

Free Samples by Mail via Snail Mail

When was the last time you wrote a letter and sent it through the post office? If you’re like me, you probably can’t remember the last time you sent one.

The infrequency of physical letters will help you stand out. Most companies have a customer satisfaction department that will send samples, coupons, or both to loyal customers.

Write a letter to one of your favorite companies and let them know why you enjoy their products. A “thank you letter” can go a long way. In this letter, it is appropriate to ask if they have any new free samples or manufacture coupons you can use.

Pro Tip: be sure to include your return address, so they know where to send your free stuff!

In addition, most samples come right to your home with free shipping.

Try Your Luck With Email

Sending an email to the customer service department is still effective but not always guaranteed as a handwritten letter. Companies receive hundreds of emails daily, so it can be challenging to make yourself heard through all of the noise.

To secure free products or coupons by contacting the company via email, make the tone of your email police and thankful. Remember the old saying, “you get more flies with honey than with vinegar?”

Thank the company for their products and ask if they have any samples or manufacture coupons they can send you. Again, be sure to include your mailing address.

Apply To Promotional Emails

Most companies are willing to jump through hoops to get your email address. By signing up for their promotional emails, companies will often reward you with coupons and exclusive offers not found anywhere else.

With all of the spam email today, this can be a risky option, but remember to unsubscribe from anything that doesn’t bring you value. Daily email alerts can be filled with sweet free stuff, but they can also be filled with junk.

Leverage Social Media

Companies are quickly trying to adapt and reach out to younger generations. In their efforts, they have stepped up their social media presence and now have full teams to manage their social media accounts. You may be surprised to learn that you can send a private message to a social media account and actually get a response!

Social media can be a great way to reach out to a company on a personal level, and social media marketers can show their bosses the value of investing in social media. Many companies will be happy to send you free items and coupons after you contact them through social media.

Companies That Send Free Samples by Mail

Now that you know the preferred tactics to contact a company, it’s time to start reaching out. Luckily, you don’t have to blind contact a bunch of businesses to see if they are willing to send you completely free product samples. We have compiled a list of verified companies who will send you everything from free beauty samples and other sweet free stuff.

SampleSource.com

The idea behind this company is to let potential customers try out products before they make a purchase. Sample Source makes scoring new free samples extremely easy.

Browse their list of free samples available, and when they have new samples available, you will receive an email to alert you. Creating a free account is easy and will allow you to browse through products you would like to try.

Quality Health

Quality Health focuses on health-related products and samples. Take advantage of their offers, fill out a quick health survey and registration to gain access to their free stuff.

Some of the best free items include cookbooks, wristbands, lotions, and other great products.

Smiley360

Smiley360 is a community of over more than one million members who are sent products to try in exchange for a review.

The site boasts they have hundreds of brands and new freebies to try if you are willing to provide feedback in the form of product reviews.

Parent Tested Parent Approved

Parent Tested Parent Approved (PTPA) focuses on products that are geared specifically for families with children.

PTPA has several options for free stuff. You can get products to review and test, be rewarded for your opinions, and entered into frequent drawings!

Samples Avenue

Samples Avenue allows you to sign up to become an official tester of cosmetic products, lip gloss, skincare items, dog food, new food items, and baby supplies!

By subscribing to their newsletter and signing up, you can access many samples by providing your opinion of the product after your test.

PinchMe

PinchMe develops a personal profile for you and your family to offer products specifically tailored to your likes.

Once you have tried the free product, you are requested to fill out a short feedback survey to provide your opinion back to the brands.

BzzAgent

BzzAgent is similar to the other product testing sites and has partnered with some of these well-known brands:

Loreal

Gillette

Hershey’s

Rimmel

Nestle

Purina

Danone

Unilever

P&G

Samsonite

To get started, BzzAgent will ask you about your interests. After developing a profile, you will be invited to try products tailored just to you. When you’re done, share your experience with the product across your social media accounts.

Friends & Neighbors

This website is a consumer perception program, and they are willing to reward you with products in exchange for your opinion.

Friends and Neighbors involve a host of mediums to help brands and consumers connect to make the best products possible. These studies include:

Product Testing

Online Shopper Survey

Online Discussion Groups and Forums

Focus Groups

Consumer Panels

Sensory Panel

Some of the rewards you may receive are free products and prepaid Visa cards.

Homeschool.com

Do you currently home school your children – or are you thinking about it? Homeschool.com is made up of an entire community focused around providing only the best home school resources. Before any new product is released, Homeschool.com runs the product by a series of product testers (you!).

Moms Meet

Moms Meet is a co-op group that works together to review products, win prizes, and earn rewards based on providing opinions. There are two free memberships available for product testers:

Mom Ambassador

News & Information on Healthy Living

Earn Points & Rewards

Access to Community Forums

Win Prizes

Share Your Opinions

Influence Brands & Industries

Sample Products with Family & Friends

Blog Ambassador

News & Information on Healthy Living

Earn Points & Rewards

Access to Community Forums

Win Prizes

Share your Opinions

Influence Brands & Industries

Sample Products with Family & Friends

Review Products on Your Blog

Gain Exposure & Readership

Ready For Your Free Stuff?

If you’re in the market for getting free stuff just because, or you like to offer your opinion to make things better, this comprehensive list is the perfect place to get you started. Do you enjoy a specific product or brand? Be sure to reach out to them individually for coupons and free samples.

Are you more of the spontaneous type? Sign up for one of the product tester websites above and make the most out of getting free samples by mail!

This post originally appeared on Arrest Your Debt.