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In polite society, money is a taboo topic. You don’t ask friends how much they pay for rent, and you’re not supposed to discuss how much you earn. However, in recent years, more people are arguing that politeness comes at a cost: namely, we’re all really terrible at money because we’re afraid to talk about it.

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If you’re into personal finance, what you’re about to read may not sit well. In fact, it’s tough to even type it. But here goes: it may not always be smart to take full advantage of your employer’s 401(k) match. Yes, it’s like free money. However, you still have to fork over cash to get it, and if you truly can’t afford it, that can cause problems.

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Let’s get one thing out of the way: Working from home or online doesn’t mean you’ll end up making millions while sitting around in your underwear and barely lifting a finger. While it definitely is possible to make a living using some of the following tactics, they each require a certain amount of effort. However, unlike your average hourly job in which you get paid the same regardless of how much (or how little) effort you put into it, the best part about working online is you’ll be rewarded based on your willingness to commit to a specific task, and are free to create your own destiny. Here are some ways you can make money online.

1. Website Testing

Sites like UserTesting give you the opportunity to review new and upcoming websites, giving the creators feedback as you explore them. It’s possible to make a pretty decent hourly rate testing and reviewing websites, as a single task usually takes less than a half hour and pays around $10 per gig. However, sites like UserTesting often have a large pool of candidates, and you’ll only be asked to review sites that fit your interests, so the workload may not be steady enough to create a consistent cashflow.

2. Data Entry

If your keyboarding skills are up to snuff, you might want to consider signing up for websites such as VirtualBee, which connects typists with clients in need of data entry transfers. After signing up, you’ll be given an aptitude test to determine your eligibility. It’s possible to make up to $20 an hour on gigs, but, like website testing, the work is sporadic and may not be enough for a full-time income.

3. Completing Surveys

You’ve probably seen sites advertising surveys for cash, and blown them off as a pipe dream. While many of them are full of empty promises, some sites actually do follow through with their pledges. Sites like iPoll and MySurvey make it possible to earn some side cash while you relax on the couch watching TV. Some websites even offer signup bonuses that will result with quick cash just for logging in. You probably won’t make a killing completing surveys online, but it is possible.

4. Tutoring

Regardless of whether or not you’re a certified teacher, you can find ways to make money online by tutoring high school and college students in need of test prep. TruePrep is a site dedicated to connecting tutors with high school students who need help studying for the SATs. After completing an aptitude test and going through an audition, you’ll be able to set your own hours and rate of pay. Some tutors make around $50 per Skype session.

5. Proofreading

If you love poring over newspapers, magazines, and books looking for typographical and grammatical errors, you should look into getting paid to do it. While sites like Fiverr and Elance exist to connect proofreaders with clients, you’ll often end up underselling yourself due to the sheer volume of workers advertising their skills. Take a look at Proofread Anywhere, a site offering a course not only on how to become an expert proofreader, but how to find clients that pay well and will consistently need your assistance. Caitlin Pyle, the founder of Proofread Anywhere, makes a full-time income proofreading for less than 30 hours a week.

6. Create a personalized online store

This is perhaps the most involved entry on the list, but it also has the most potential to end up becoming a full-time gig. An entry on Bitcatcha’s blog fully details the best methods for creating an online store in which you can sell your personal crafts, creations, or services. Again, this is in no way meant to be a get rich quick scheme. However, creating a business that operates almost exclusively online is the best way to ensure your fledgling company reaches a variety of audiences across the globe.

Featured photo credit: Paying attention to detail / Nic McPhee via farm1.staticflickr.com

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People in the United States pay more for home Internet service than people in most other places around the world. Factors such as outdated equipment and monopolized markets contribute to continued rising costs. But it is possible for you to save money and still enjoy the Internet you rely on. These five tactics will help you take control of your Internet service costs and put more money in your wallet every month.

1. Scale Back

Evaluate the Internet usage in your home and determine what kinds of broadband speeds you really need. (Oftentimes, you’re actually paying for a faster Internet speed you don’t even need!) There are online tools to help you gauge what speed best matches your usage. Once you know what speed you really need, it’s easier to change to a smaller, less expensive package.

Speed probably isn’t the only thing you’re paying for. Go through your bill with a fine-tooth comb and review every fee and charge. If anything looks suspicious or confusing, call your Internet Service Provider and ask about it. Ask which fees can be lowered or removed altogether. You may be surprised what they can do for you.

2. Bundle Services

A la carte services tend to come with a heftier price tag. If you pay for Internet, phone, and television, you can usually save quite a bit by bundling those services together from one provider. Contact your service provider to find out what discounts or packages they offer for combining services. Many service packages come with contracts, so be sure you understand the fine print before signing up.

3. Ask for a Price Match

When you notice an ISP’s competitor offering a better deal, give your provider a call and talk to them about the possibility of price matching. Companies value customer loyalty, which makes them more willing to negotiate. If you originally signed up for a special rate that’s about to expire, look around at what other companies are offering. Before your bill goes up, call your internet service provider and see if they will match or beat the deal you could get if you left them for a different provider.

4. Get Help

You don’t have to fight a hefty Internet bill on your own. Companies like BillCutterz review your current bill and negotiate with your provider on your behalf. This is a great option for those who don’t want the hassle of switching plans or providers. There is a cost for using BillCutterz, but it’s based on the amount they save you. If they end up reducing your monthly bill by $50, they’ll get $25 per month and you’ll pocket the rest.

5. Jump Ship

If your ISP won’t budge, it might be time to switch providers or cancel your Internet altogether. This seems drastic, we know, but depending on your Internet needs you may be able to get away with sticking to free local Wi-Fi spots instead of having home service.

If a connection at home is a must, don’t be afraid to take your business elsewhere. Many companies provide introductory offers for new customers and some even offer incentives to switch. Contact all of the ISPs in your area and see which can give you the best deal. Make sure you’re not in a contract with your current provider before signing up with someone else so you can avoid getting hit with a fee for breaking your contract.

If these five strategies inspired you to start fighting for a lower Internet bill, don’t stop here. Keep looking for other ways to cut costs and reduce your monthly Internet bill. The more you save, the better you’ll feel.

The post 5 Ways to Save Big on Your Next Internet Bill appeared first on Lifehack.

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The last decade has proven to be volatile and filled with uncertainty. Unemployment rates remain high while federal, state and local support services diminish. It’s no wonder people of all ages are seeking to become entrepreneurs and solopreneurs. In some cases, it’s the only option available. Small business owners enjoy a genuine sense of accomplishment and contentment. Operating a business necessitates having entrepreneurial spirit, initiative, persistence, tenacity and business insight.

Here are 21 Wisdom Nuggets for Launching Your Own Successful Small Business. They’re some of the fundamental steps for living the life of your dreams.

1. Identify Your Small Business and Products or Services

Select an emerging market niche where demand exceeds supply, one that exhibits long-term growth and strong profit margins. Offer a new problem solver venture, something innovative; secure your trade secrets. Perform your due diligence, and validate that the products and services you have chosen are what people need, want, and are willing to pay for. Determine what it costs to make your product or service, and then set a price. Be certain the business will contend robustly with your competitors. Maintain a competitive edge. Pick a relevant, definitive business name, and follow local procedures to assure it’s available (not trademarked or already popular).

2. Access Your Clients / Customers

Determine who your customers are, how you will locate them, and what their motivations for purchasing your products and/or services will be. Ascertain how you will reach out to them and scrutinize their business needs. Thoroughly inquire of their problems and perceived solutions. Display a genuine interest in them and their successfulness. Make well thought out offers to service their needs at reasonable prices. More than meet client expectations. Keep abreast of new technologies, techniques and standards. Share them with your staff, your partners and with your clients. If you keep your promises and perform with excellence, they’ll be around for a long time.

3. Determine Your Start-up Resources

Use Small Business Development Centers or Women’s Business Centers for business assistance, free training and counseling services, especially if you don’t have a business coach. Check out local, state and federal programs that assist new business startups. Save money by utilizing government surplus items from the Small Business Association (SBA), such as commercial real estate, vehicles, furniture, computers and office equipment. Utilize as much of your own money as possible. Obtain business licenses, permits and certifications as required for your specific business industry. An Employer Identification Number (EIN) may be needed.

4. Determine the Legal Structure of Your Business

The business structure you select affects your business identity, income tax filing status, tax liability, funding status, and even your client’s receptiveness.

Decide methodically which legal configuration best suits your small business: sole proprietorship, partnership, limited liability company (LLC), corporation, S corporation, nonprofit, etc. However, don’t turn the decision process into a major project. As your business grows, change will occur. As your company evolves, so will your legal structure.

5. Prepare a Business Plan

The recommended business plan is simple, realistic, adjustable, and manageable. It provides focus, direction, clear financial objectives, data for loan requirements and it navigates your business success. It helps you to get well-acquainted with your profit numbers, determine projected start-up costs and marketing strategies.

A formal business plan is needed to incorporate your business or to operate as a partnership. Components for a good business plan include: cash flow projection, break-even analysis, budget, profit & loss forecast; business objectives; marketing plan; description of your target audience (customer-clients).

6. Ascertain Your Business Location

Decide where you want to locate your office, i.e., at home, in a shared office facility, a private office, or a retail area. (Home office space MUST be used solely and frequently for your business activities.)

Establish where you will meet with your client-customers. Be sure your office site complements the type of business you will be conducting. Choose a customer-friendly location, properly equipped, set-up and in compliance with zone restrictions. Retail office space should be in a good area accessible by major streets and public transportation.

7. Register Your Business Name and Domain Name

If you decided to operate as a sole proprietor, register your business name with either your state or county clerk. If you chose an LLC or corporation as your legal business structure, registering your business name when the formation paperwork is filed is generally acceptable.

Pick a domain name reflective of your company name, product and/or service. Register both your business name and your domain name with the state government. Apply for tax identification numbers as required by the Internal Revenue Service and your state revenue organization.

8. Protect Yourself and Your Business

Purchase small business insurance (fire, liability, business interruption, automobile and theft insurance, etc.) to shield yourself as well as your company against adversity and lawsuits. With a sole proprietorship or partnership, your personal assets can be confiscated by creditors, lien holders, and plaintiffs for settlements of claims and remunerations. Consider forming an LLC or corporation for greater personal asset protection; otherwise, creditors could take your vehicle, home, investments, etc. If a client or customer falls or gets hurt otherwise on your property, he can sue and cause you to lose everything.

Another key to self-protection is that you learn from your inevitable mistakes. Your success depends on it.

9. Create an Accounting System

This task is best delegated to a certified public accountant.

Nevertheless, for the health and survival of your business, maintain an excellent understanding of your accounting system. Remain well-informed, constantly aware of how your small business is operating. The accounting system is the structure for financial statements, performance reporting, cash flow transactions, capital expenditure plans, budget variances, the establishment of fees and rates, and income tax preparations. Open up a bank account in your business name. Keep all of your documents well organized.

10. Monitor Your Finances Often

Watch the business funds – your company’s life-blood – frequently and consistently. Control your cash flow expertly and resourcefully. Review company bank statements and invoices. Put checks and balances in place; have audits conducted. Communicate with your vendors and creditors; keep a good rapport with them. As you prepare your initial budget, try to build in enough savings to cover six to twelve months of business operations, as well as an emergency fund. Exercise prudence and double-audit each expenditure. It is wise for you to share in your company’s money management.

11. Preserve Your Good Credit

Make it a point to pay your obligations on time, preferably early. This includes income taxes and especially payroll taxes from employee paycheck withholdings. Preclude being held personally responsible for paying back payroll taxes. The Internal Revenue Service is known for issuing harsh fines and penalties. Timely bill payments stimulate good business relationships and trust. Keeping a positive credit profile supplies a built-in safety net for meeting challenges and attaining financial backing when needed. Good credit is essential for profitable business transactions and sustainable cash flow.

12. Start Small

Endeavor not to over spend or spread yourself too thinly, limiting both your effectiveness and productivity. Try to do one or two tasks flawlessly.

Beth Laurence, J.D. in her article, Ten Tips for New Small Businesses, says, “Think small. Don’t rent premises if you can work somewhere else, and don’t hire employees until you can keep them busy. People who start their small business on the cheap …and create their first goods or services with more sweat than cash, have the luxury of making their inevitable rookie mistakes on a small scale. And precisely because their early screw-ups don’t bury them in debt, they are usually able to learn and recover from them. (Plus, running your business from home can save you tax dollars, too.)”

13. Prepare Your Elevator Pitch

This tactical, 30-second speech is given to your prospective client-customers highlighting their needs. Always be ready to deliver it. Personalized as necessary, the elevator pitch simply vocalizes your identity, product or service and business objectives. In the first 15 seconds tell your client-customers who are you, what do you do, and what problems you can help them solve. Use the next 15 seconds to add details about your unique selling proposition, special skills and specific ways you can support them. This technique helps convince your targeted audience that you have the experience, astuteness and expertise to furnish what they need.

14. Get and Stay Connected

Do not wait for business perfection, begin networking and recruiting suitable clients. Get actively involved with community activities, associations and meet-ups relative to your client base. Attend town meetings, join civic groups and the local Chamber of Commerce. Network with like-minded individuals; persons with whom you share common interests and mutual business goals. This will help you develop into a sought after business expert. Make frequent contacts with everyone who is supporting, purchasing and promoting your product and/or service.

15. Market and Promote Your Small Business

Eric Holtzclaw in his article 10 Simple Marketing Tips for Small Businesses says, “Marketing doesn’t have to be hard or expensive. Sometimes the simplest ideas are the most effective…Start a podcast …and interview other business owners. People love to tell their story, and by highlighting them on a podcast you make an instant and meaningful connection.”

Place ads in your local newspaper, in trade magazines and publications. Send out brochures, flyers and postcards to prospective clienteles already motivated to purchase your product/service. Accept a leadership role in an organization, host an event, offer discounts, help with a good cause; support other small businesses. Request an interview on a local radio or talk show. Launch an email campaign.

16. Give Away Some Freebies

One of the greatest ways to attract customers, prove a genuine interest in them and add value to your business activities is to give away free stuff.

Your customers must see usefulness in it, however. For instance, offer sample products or free services like a webinar on how to attract and maintain customer loyalty, a free massage, or a free hour of consulting. Another great idea is to write a marketing book that tells your story and why the product or service you offer is the best resolution for their problems.

17. Get Every Commitment in Writing

Well-written and well-documented contracts make good business sense and are enforceable. They protect your health, your sanity and your business.

Although oral contractual agreements may be valid, they can be very difficult to validate and impose. They are indeed hazardous to the long-term survival of your small business. Make it a general business rule to give and receive receipts for all business transactions. Even if not legally required, get every contract, commitment, offer letter, purchase order, lease, agreement and procedure in writing.

18. Hire and Partner With the Right People

Employ like-minded professionals, workers with similar goals, personalities and complementary skill sets. Avoid business sabotage and frivolous lawsuits by interviewing potential employees and independent contractors conscientiously. Evaluate their capabilities, work ethic, employment history, credit (where appropriate) and referrals. Establish ground rules and expectations along with clear consequences for violations. Publish these guidelines and procedures in handbooks, and ensure they are read. Administer the rules fairly at all levels and without partiality.

19. Document the Legal Status of your Workers

When you hire workers as independent contractors, make sure they shouldn’t really be taxed as employees. The IRS can impose substantial penalties against you for not withholding and paying taxes for a worker who is really an employee. Preclude this problem by having the worker sign a written service contract, or independent contractor agreement. When hiring an at-will employee, have the employee sign an offer letter that makes it clear the employment relationship is at will.

20. Get adequate rest and relaxation

Small business isn’t for the faint of heart. It’s for the brave, the patient and the persistent. It’s for the overcomer. – Unknown

Operating a successful business can be tough and demanding at times. To remain alert, energized and cognizant, you need to exercise, get ample sleep and rest each day. Consume the proper diet and nutrition. It takes a lot to keep pressing ahead while maintaining realistic expectations all along the way. Time-out and tranquility are a must for triumph.

21. Know When to Close the Shop

Sometimes no matter how well qualified you are, or how diligently you work, your plans do not materialize as intended. In those cases, you need to cut your losses and move on without delay. Consider where the flaw occurred and how you might have responded differently. Retrieve the lessons learned, rise above the challenge and move on to your next endeavor much more experienced and astute.

When you have implemented these 21 Wisdom Nuggets for Launching Your Own Successful Small Business, you will have accomplished the essential business liftoff actions. Just remember that operating a thriving small business is an expedition, not a sprint. Efficiently manage your income producing, administrative and operational activities. Take great care of your employees and clients.

They will reciprocate to your delight.

Featured photo credit: Take the Plunge and Start Your Own Business – It’s Definitely Worth It! via google.com

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Nobody in their right mind would say that buying a home is inexpensive or cheap. In fact, it’s probably one of the most expensive purchases a person will make in their lifetime. In 2014, the average sale price of a home was $311,400. That’s no mere drop in the bucket for the majority of homeowners, yet, on average, new homebuyers spend $7,400 more in the first two years of ownership than existing homeowners.

The National Home Buyers Association (NAHB) has found that a home purchase has a ripple effect and makes most new homeowners spend more money on average. This begs the question: where are these hidden costs, and how can you avoid them?

1. Don’t Buy Furniture To Fill Up The Extra Space

A majority of new homeowners buy a house that has more space than where they were living previously. Of course, the natural inclination is to fill up that empty space with furniture. According to the Consumer Expenditure Survey from the Bureau of Labor Statistics and the NAHB, new homeowners spend $5,025 on average on new furnishings. That’s $3,364 more than people who are existing homeowners.

Much of this is spent on bedroom furnishings, specifically mattresses. New homeowners outspend existing homeowners six times when purchasing bedroom furniture. Spending a bit more money on bedroom furniture than an existing homeowner seems logical, though. Sometimes families purchase a new home because they’re adding a new family member and they need more room – with that new family member comes a new bed and new bedroom furniture.

However, another big-ticket item that new homeowners purchase is a couch, spending $746 more than what an existing homeowner spends. Remember, when you buy a home, don’t feel like you need to go out the next day to purchase brand new furniture. It’s OK to have some empty rooms and space in your new abode, especially if you don’t need to have a guest room or extra sofa right this minute.

2. Don’t Undertake Remodeling Projects Right Away

One of the bittersweet parts of moving to a home is you no longer have to worry about having a landlord, but it also means you’re responsible for the maintenance of your home — and there will be maintenance. Appliances will break down, systems will fail, and you’ll have to foot the bill every single time. According to US News, homeowners will spend between 1% and 4% of their home’s value on maintenance costs each year. However, according to the Bureau of Labor Statistics survey, new homeowners end up spending $4,642 if they purchased an existing home, which is $2,229 more than individuals who already own their home.

Where does this extra spending come from? For buyers who purchase brand new homes, the $4,275 they spend mostly goes toward remodeling projects (think patios, new driveways, or fences). If you’re looking to save money, don’t start remodeling within the first year of homeownership. If it’s a project you can live without, save up for it over the years.

For new homeowners who purchase existing homes, they spend a bit more than homeowners who have purchased new construction homes, but not by much (only $367 on average). Most of this is spent on repairs and replacements for old and worn-out systems and appliances.

To combat this extra expense, it might be a good idea to look into a home warranty. Home warranties will cover most systems and appliances in a home if they fail from normal wear and tear (not neglect). Prices for home warranties average between $300 and $600, depending on the level of coverage, with a $60 flat rate fee for a service request to complete the repairs or replacement. The average household opens 1.7 service requests in a year, according to Landmark Home Warranty’s data. That means a home warranty could reduce the amount of money spent on repairs and replacements by more than half.

3. Don’t Buy Brand New Appliances

Many times, homeowners get to their new homes and expect them to be just that: new. Instead, they find used fridges, washers, dryers, and dishwashers and realize that they want to start fresh — they want brand new appliances with their new house. Unfortunately, they spend an average of $2,665 on new appliances in their first year, which is over a thousand dollars more than existing homeowners tend to spend annually. This is ultimately surprising, since most homes come with installed appliances, but many homeowners just want their newer models. New homeowners typically spend the most on new televisions, fridges, washers, dryers, and computer systems.

Although it is really tempting to get new appliances when you buy a home, most of the time these older appliances work just fine, and can work quite efficiently with proper maintenance. By using the appliances that come with the home, new homeowners can save a lot of money in their first year of homeownership. Plus, if the homeowner has a home warranty, their plan will most likely cover the repairs and replacements on a well-maintained system or appliance when it fails.

Featured photo credit: Markevich Maria via shutterstock.com

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How can I make better decisions?

I browsed the web and ended up on Qoura reading the most popular answers. People often suggested, “just do it,” “ignore fear of failure,” and “never turn back.”

I thought it over and really considered it. If I simply ignored the “fear of failure” and just “did it”, would that really be making a decision? Absolutely not!

“Just doing it” results in even more failures and even more regrets. Imagine if general George Patton just ignored his “fear of failure” and recklessly charged straight into enemy lines without a plan! Image if you, or your family and loved ones ignored all risk and “just did it” instead of taking the time to make a well informed decision.

Imagine if we applied those same results for:

– Buying a house

– Quitting your job

– Having kids

– Investing in a new business venture

– Getting Married

– Having a vasectomy

– Plastic surgery

It probably wouldn’t end up so well!

Instead of flipping a coin, using your magic 8 ball, or “just doing it”, here are 5 techniques to make better decisions.

1. “I cannot decide on what I do not know!”

Hal wanted to quit his job. After his workday was over, he sat down with a pen and paper and came up with a massive list of pros and cons. He wrote out everything he wanted to do and how he was going to make money. He imagined over and over the freedom and excitement that he would gain after leaving. The next day Hal walked into work and quit.

This may sound great to some but, the problem with Hal was that he did not know enough to make a good decision yet! He rushed what he actually had plenty of time to do.

Everything that he imagined and dreamed about was blurry. All the “facts” that Hal used to make his decision were NOT verified facts, but rather bits and pieces that he heard from his friends or picked up on from the far corners of the internet. Hal is extremely jaded.

Hal then replayed the same facts over and over in his head (thinking they were real). No new information was being added to the equation to allow him to make a better decision.

We often jump to conclusions when making difficult decisions that require serious thought and planning. We must first gather more information because:

You do not know what you do not know!

You cannot decide on what you do not know!

If I asked you to solve the following equation A + B + 2Z – 10X = P could you do it?

Not right away because there are too many unknowns! You could guess or use trial and error but that takes too much time and a great deal of effort in real life. We need to go out and collect more information to make a better decision.

We do not have all the answers

2. “Maybe you can help me?”

The quickest way to gathering more information to make that tough decision is to go out and ask other people. However, there is a trick. Ask the people who have already done it! Stay away from the people that don’t have any experience but seem to know everything.

This year, while I complete graduate school, I wanted to participate in applied clinical research. More specifically, I wanted to design and develop medical devices from a clinical need.

Instead of “just doing it,” I decided to reach out to a respected faculty member to see if it was a good idea. I went to him and poured my heart out. He looked at me like I had 2 heads and shunned me away!

I took the advice to heart and sulked a bit. Instead of just quitting, I decide to gather even more information! But this time, I reached out to other schools including MIT, Stanford, UMN, and Johns Hopkins. The information and feedback I got was amazing.

Why? Because all these schools were actually DOING IT! That had already developed over a hundred medical devices in the same fashion I wanted to do. Not only that, they had specific programs to help people like me who wanted to do that kind of research and design.

On the other hand, my school was not doing it and the professor I reached out to wasn’t either.

-Ask the people who are doing it or have already done it to get more information.

3. Seek the Devil’s Advocate.

As human beings, we are self-confirming. We naturally seek out information that we already agree with and tend to ignore information that we disagree with. Skepticism and denial can be good in some instances, but these characteristics must not be confused with being hard-headed.

Imagine 2 documents sitting right in front of you, one with information you agree with, and the second with information you disagree with. Whether you are right or wrong, or whether the information is right or wrong, you will pick the document that you agree with first and consider that information more seriously. Obviously, whether you are right or wrong, you will pick the document containing information you agree with first and take that more seriously.

Let’s go back to the “should I quit my job” example. You probably already REALLY want to quit your job and have already made up your mind. Now, instead of making a decision, you are just confirming your existing desire to quit, by collected confirming evidence. This confirmation bias blinds us from the obvious and has lead to some of the worst business decision ever made (for example, Quaker Oats‘ aquisition of Snapple).

To counteract this, reach out and collect information that opposes your existing viewpoints.

Good businesses use this process all the time. When Fortune 500 companies make big time investments (like acquiring another company, investing in new ventures, downsizing, re-sizing, etc.), they hire a completely separate team to investigate the opposing viewpoint, and then seriously consider the opposite.

Remember, “De-Nile isn’t just a river in Egypt.”

4. Beware of the sham options.

Everything seems great in comparison with something crappy.

The other day I was watching HGTV’s Home Hunters Abroad. A couple was shopping for a beautiful island home in Caruso. They required two things: it had to be less than $400,000, and it had to be rent-able.

The couple contacted a real estate, who I now realized was skilled in the art of sales. He lined up 3 beautiful houses. House number 1 cost $399,000 and was perched on top of a hill overlooking a magnificent clear blue bay. The couple fell in love with the view and was seriously considering buying the house until they found out the new construction would get in the way of their ocean view.

After seeing how the couple reacted to the ocean view, the real estate agent quickly changed his sales tactics. He showed them house #2, which had a stunning ocean view and a white sand beach a few steps from their back door.

The only problem was the house was $489,000 – a full $89,000 over budget. The couple was so angry at the real estate agent that they considered replacing him.

Finally the last on the list, house #3, had no view, was not rent-able and was $10,000 under budget.

Which house did they chose?

The couple went with house #2 that was $89,000 over budget! They made a poor decision and broke the bank because they were not aware of the sales trap the real estate agent set.

House #2 seemed like the best option in that context, compared to the shame option of house #3. In a different context, going an extra $89,000 over budget is a bad idea.

What they should have done was not buy anything and waited until something else showed up. However, when you are in the middle of a difficult decision, sometimes it’s hard to gain that kind of perspective.

5. Factor in the opportunity cost

How could the previous couple in the home buying example snap out of the mental trap set by the real estate agent?

The couple needed a change in perspective. When dealing with big number numbers like $400,000 and $486,000 the difference might not seem that much, but let’s take another look and consider the opportunity costs.

What is another to $89,000 to you? Well it’s another 2 years of saving every single cent of your paycheck (assuming you make ~$60,000 before taxes). Which means you cannot eat, buy gas, go out, or do anything for 2 entire years. You must save every single penny of your paycheck to afford the difference!

Here are more examples of what they could have bought with the amount the went over budget by:

A Porche 911 special edition

400 pairs of Air Jordan retro edition shoes ($215 each)

4,000 hours of work, assuming you make $60,000 before taxes

22,879 gallons of milk ($3.89 per gallon)

89 pounds of gold ($1,124.75 per oz)

Conclusion

Next time instead of jumping to conclusions and “just doing it”:

Take some time to gather more information. You don’t know what you don’t know.

Get more information people who have already done it, not the people who are trying to sell it.

Seek the devils advocate and seriously consider what they have to say. You might be just confirming yourself!

Beware of the shame option. All other options seem great in context to a crappy one.

Gain a greater perspective by considering the opportunity costs.

Featured photo credit: thinker / Dan Mckay via flickr.com

The post 5 Techniques To Make Better Decisions appeared first on Lifehack.

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Turning 30 is a big milestone because you finally feel like a real adult instead of playing one in your early 20s. Here are some things you probably have accomplished in your 20s:

Eyeliner and mascara that doesn't smudge.

A bad relationship that will make you treasure the good ones.

The experience of negotiating a raise or asking for a promotion. Because you deserve it.

A love for yourself - flaws and all.

A good mattress.

Enough self-respect to not put up with an unhealthy relationship and friendship.

A home that looks lived in and not like a rental. Which includes a piece of furniture you splurged on that's not from Ikea and an original piece of art you love.

One international trip experience that took you to another continent.

Wild stories of past shenanigans that you love reminiscing over with your friends. And zero urge to relive it all.

A résumé and LinkedIn profile that you had to struggle to shrink.

Six months of living expenses in your emergency fund and a robust 401(k).

A friend that makes you laugh, lends an understanding ear when you need a shoulder to cry on, and tells you things you need (and not want) to hear.

Forgiveness and letting go of past hurts and grudges. Life's too short for that.

And the realization that forgiving doesn't mean accepting that it was OK. Forgiving means accepting the fact it happened.

Go-to recipes for key occasions, from a fancy dinner party to leftovers night.

A backup system for your important documents and photos.

Something you can take care of, be it a plant or a pet (or maybe even a baby!).

The ability to enjoy things alone, whether it be a trip, a dinner out, or a show.

A coffee machine so you stop wasting your money at Starbucks.

A good skin care routine, which includes applying sunscreen.

The confidence to go without makeup, wear a bikini, and have an opinion.

A sewing kit and a set of tools that you've actually used.

A reliable dry cleaner and a tailor.

A chic outfit that you can transition from work to play - not to mention, a high-quality bag or purse to bring to work every day.

A safe place for you to relieve your stress and recharge - be it your reading nook or yoga studio.

The resolve and discipline to kick at least one bad habit. Bye-bye, soda and Cheetos.

The satisfaction with what you have and not worrying about if you're missing out on something better and newer.

An exercise routine beyond cleaning your home or commuting to work.

A credit card that you pay off in full every month.

The realization that life just gets better.

- Additional reporting by Annie Gabillet

#financial #money tips #advice

#financial #money tips #advice

Cutting back on electricity can save you some cash, but the savings vary. For example, unplugging an idle phone charge will save you a whopping $6 a year , if that. On the other hand, using a space heater rather can save you up to a thousand bucks a year. This chart tells you how much you’ll actually save using a handful of different strategies.

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Budgeting your money is a good, healthy, terribly guilt-inducing habit. If you get to a point where you’re saving money, spending reasonably, and have a plan, however, you don’t need to feel guilty for every single purchase.

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What better way to learn than from those who have been there and done that? A Reddit thread recently had people chiming in on things they regret doing (or not doing) in their 30s. Whether you are about to embark on the exciting journey of your 30s or nearing the tail end, learn from those in the know.

1. The shoulds

You'll feel societal pressures in your 30s more than ever before, but don't let the shoulds hold you back. You may constantly worry about how you should own a home, you should have kids, you should be married, or you should have a steady career. Drop all those expectations, and live life the way that makes you the happiest. Don't feel like a failure just because your life happens to deviate from the norm - you've got one life to live, so live it your way.

2. Not spending time with parents

One common regret that many people in their 30s have is not spending time with their parents while they are young enough to actively participate. Simple pleasures like taking a walk, traveling, or even having a conversation may be harder to come by once your parents age.

3. Putting work first

Something to keep in your mind in your 30s: if you put work first, you're going to regret it. Spend time with people you love, because those are precious moments that money and moving up the ladder can't beat.

4. Spending time on negativity

And you thought those negative people would disappear from your life in your 30s. Nope, there may be some hanging around, so don't waste time on them. Watch out for people who don't make you feel good about yourself, and reevaluate your relationships with them. Be careful of spending time on negative thoughts and issues that you have no control over. Just. Let. It. Go.

5. Thinking your 30s was old

"I'm too old for this!" may be a common phrase you use in your 30s. You know what? You're not. And I bet people in their 50s and 60s will agree. The world was your oyster in your 20s, and it still is. Take a chance, live, and enjoy life as the young'un you are, and never lose that child in you.

6. Not putting yourself first

Maybe you're putting everyone else first in your life but you. Snap out of it! Know that once you put yourself first, everything else can fall into place. Putting your needs first will make you a happy camper, which will result in better relationships - a win-win. When you take care of yourself, you'll have fewer regrets in your 30s. The partner your life revolved around? You probably won't regret that as much if you had focused on your needs and chased your dreams as well.

7. Not taking better care of your body

It's quite the paradox - you say you're too old for something, and yet you still keep the junk-food-fueled and antiexercise habits of the younger you. Those habits are harder to drop, but treat your body right early, or it'll catch up with you before you know it.

8. Not taking chances

Maybe you're overly cautious at this age and perhaps it's the shoulds we mentioned earlier that are holding you back. Don't play it safe, and live a little.

9. Not saving and investing enough

This seems to be a huge, huge regret that a lot of 30-year-olds carry. If you start saving earlier, you'll be reaping bigger rewards by the time you retire. And if you don't put off saving and investing in your 30s, you'll be more likely to retire at the age you want.

10. Not traveling enough

The world is at your fingertips, so take off on a travel adventure! Don't keep procrastinating and putting this off - it'll be harder to make time for travel as you get older. Get inspired by this list of the 10 most beautiful travel adventures.

11. Caring too much about what others think

It seems we're guilty of this at every age. Don't waste more time on this useless habit in your 30s. Stop investing time and energy into caring about what people who don't care about you think. The ones who do care for you will accept you as you are.

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