Every month, Americans spend between $150 and $200 on gas. There are many factors that contribute to this, including the state, lifestyle, and driving habits. Gas still accounts for almost 2.24% of American families’ monthly income, or about $5,000 per year.

However, those figures are higher.

As of this writing, the price of oil hit over $93 a barrel — the highest price of the year. That means that the national average gas price is $3.875

Gas prices typically drop after Labor Day when driving season ends. Instead, Saudi Arabia and Russia’s aggressive supply cuts have boosted oil prices this year. So, we could expect to see even more pain at the pump.

You can, however, reduce your fuel consumption and save money on gas by doing a number of things.

1. Download a gas station app.

“If you’re just looking at the price from the street, you’re leaving money on the table,” Patrick De Haan, senior petroleum analyst at GasBuddy, told Consumer Reports.

The easiest way to shop around for the best prices? Take advantage of the many smartphone apps available, such as those from GasBuddy, AAA, and Gas Guru. Both Apple and Android devices are supported — usually for free. Fuel grades can be filtered, distance and price can be sorted, and GPS directions can be provided.

In addition to providing real-time traffic alerts and driving directions, the Google Maps and Waze apps also provide gas prices.

AAA manager Michael Calkins adds that you may be able to get a better deal at stations that are not located near major highways. Sometimes, though, it is not worth taking a big detour to save money.

2. Decide which rewards program or credit card is right for you.

In order to choose the right rewards program or credit card, you should consider your spending habits and what rewards are important to you. For example, rewards credit cards offer points back when you use them at participating gas stations. Or membership stores, such as Costco, Sam’s Club, and Walmart Plus, that sell gas at reduced prices.

Here are a few things to consider:

• Annual fee. Annual fees can quickly deplete savings. It may be worth it, however, if it offers savings elsewhere.
• Reward caps. Gas savings may be capped every quarter or every year. Check the rewards cap for your card and determine what you spend.
• Redemption value. Cash or miles can be redeemed for points. It is important to understand the value of each reward point. Some are even less than a penny.
• Pump or gas station. Gas rewards from some credit cards can be used on anything bought at a filling station, while others only apply to purchases made at the pump.
• Membership requirements. Is joining a hassle or are there membership fees?

You may want to consider the following rewards programs and credit cards:

• Cash-back rewards. A cash-back credit card can offer you a simple and straightforward rewards program. You can redeem your cash rewards for anything you like. You’ll earn a percentage of your spending back in cash.
• Travel rewards. The best way to save money on flights, hotels, and other travel expenses is to use a credit card that offers travel rewards. As you spend, you’ll earn points or miles that can be redeemed for free travel or discounts on travel.
• Store-specific rewards programs. You may want to sign up for a rewards program if you frequent a particular store or chain. Whenever you spend, you’ll earn points or rewards that can be redeemed for future discounts.

The Costco Anywhere Visa card from Citi is a solid rewards card exclusive to Costco members, for example. Spending $7,000 or more on eligible gasoline earns you 4% cash back at Costco (paid as Costco store credit). Please note that if you are using a credit card you must pay off the entire balance or else the interest will wipe out all the savings you have made.

Bonus point: Gas stations such as Shell, BP, Exxon, Murphy USA and Speedway have rewards programs that can help you save on gas. It is usually free to join. The majority of reward programs offer a discount at the pump, while others award points that can be redeemed for discounts.

3. Reduce driving by modifying your commute.

You are more likely to break your wallet, as well as damage the environment, if you drive to work alone. This is especially true in crowded business districts where parking is limited and expensive.

Try to find a more cost-effective way to commute instead. Different options exist depending on your physical fitness, where you live, and how much time you have in the morning.

• Carpool with co-workers near you and swap driving responsibilities on a daily or weekly basis.
• Share rides through Uber and Lyft with others and split the cost.
• Reduce your travel costs with public transportation, such as a bus or train with a monthly pass.
• Getting to work by bike.

4. Fill up with regular fuel.

It is not necessary to buy premium gas unless the car manufacturer specifically states that premium gas is required or required only (not just “preferred”). In most cases, the engine won’t be damaged by running the car with regular gas. All top-tier gasoline contains detergent additives that keep engines clean, according to automakers.

In general, gasoline grade price differences have increased since 2006. As of 2022, average national prices for midgrade gasoline were 49 cents higher than for regular-grade gasoline, and for premium-grade gasoline were 79 cents higher than for regular grade.

5. Prepare a fill-up plan.

You should pay attention to when you buy gas. According to GasBuddy studies, Thursday is the worst day to fill up your tank due to weekend travelers’ demand, followed by Wednesday. Mondays and Sundays are usually the cheapest days to buy gas.

By being strategic rather than waiting until your tank is almost empty, you can save money on gas.

6. Determine the most efficient route to your destination.

Fuel is used more when a car accelerates than when it coasts or cruises. In other words, the shortest route to your destination may not necessarily be the most fuel-efficient. A more fuel-efficient route is the one with:

• Fewer stoplights.
• Less congestion.
• Lower traffic volumes.
• Better traffic flow generally.

In short, it’s the one with the least acceleration and deceleration. According to FuelEconomy.gov, these basic defensive driving techniques can cut fuel consumption by up to 40% in stop-and-go traffic, and up to 30% on highways.

To make this easier, you can also take advantage of navigation apps that incorporate real-time traffic data, such as Waze. Apple Maps or Google Maps can display stoplights and other traffic control measures.

7. Combine your errands.

When possible, consolidate errands around town to reduce your mileage.

Consider, for instance, dedicating one day of the week to do all the grocery shopping, home improvement, and post office shopping at once, rather than doing them one after the other. You can grab milk and cereal on your way home from work if you need them for the kids.

Overall, you’ll pay less in gas if you make fewer trips out.

8. Get rid of your roof rack or carrier.

Long after the ski trip is over, carriers often remain atop because because they look cool. The thing is, both increase the weight of the car and reduce aerodynamics.

To demonstrate this, the Consumer Reports panel fitted pods and racks to a Nissan Altima and Toyota RAV4 that were going 65 mph. With a rack, the Altima drops 11% to 48 mpg (to 39 mpg) and 19% (to 40 mpg) with an integrated rack and carrier. In other words, if you drive 1,000 non-vacation miles on the highway, you will have to pay an extra $20.

Permanent, factory-installed roof rails, which run from front to back, do not significantly reduce drag.

9. Pay with cash.

In some stations, you can pay with cash instead of using a credit card for a lower price. Usually, the difference between cash and credit prices is between 5 and 15 cents per gallon. Also, using a debit card may give you the same discounted rate as using cash.

In addition, if you pay with cash inside a gas station, you will avoid the skimmers that thieves sometimes install on the credit card readers at gas stations.

10. Follow the speed limit.

According to FuelEconomy.gov, vehicles optimize fuel consumption at different speeds, but above 50 mph fuel efficiency rapidly declines.

For every 5 mph increase above that threshold, add $0.25 to $0.50 per gallon burned — assuming $3.50 per gallon.

Obviously, driving 50 mph on the highway isn’t safe or practical. Your best bet is to drive in the slowest lane at the speed of traffic. On the open highway, that usually means obeying the posted speed limit, which can be 75 or 80 miles per hour.

Regardless, try to stay within the limit to avoid wasting fuel.

11. Use cruise control at the right times.

You can conserve fuel by maintaining a steady speed on flat terrain, such as highways, using cruise control. On the flip side, as your vehicle accelerates up steep inclines on hilly or mountainous roads, cruise control causes it to burn too much gas.

Whenever you go up a hill, let your speed decrease slightly before slowly accelerating when you come down to save gas and money. As a result, you will not have to work your engine too hard, and you will be able to fill up your gas tank less frequently.

12. Clean out your trunk.

There is a 2% reduction in fuel economy when you add 100 pounds. So, take a couple of minutes and find ways to reduce the amount of weight in your vehicle. I’m talking about your summer beach gear or the items you plan to donate.

13. Hypermile even further.

The goal of hypermiling is to maximize fuel efficiency as much as possible. Choosing routes that need less braking and acceleration is one example. Another is cleaning out your trunk so your vehicle weighs less. Other rules include timing lights and minimizing idling.

In the summer, hypermilers can park in the shade when it’s hot to reduce cooling costs and face the sun when it’s cold to save on defrosting.

14. Make use of toll passes.

It can be fuel-inefficient to stop to pay tolls — especially on busy highways. Generally, drivers barely have to slow down when there is a toll tag on their windshield. A study conducted by the New Jersey Turnpike Authority found that 1.2 million gallons of fuel were saved in the first year with the use of the E-Z Pass.

15. Purchase discounted gas cards from resellers.

Users can sell and buy unused Chevron, Shell, BP, Texaco, and other gas gift cards through Raise and Gift Card Granny.

In addition to gift cards at retail rates, both sites sell gift cards at a discount, and Gift Card Granny also sells rewards cards.

16. Don’t search for the perfect parking spot.

A study by Inrix found that American motorists waste about $345 in fuel looking for parking each year – though some doubt those numbers.

Regardless of the exact figure, parking farther from your destination will reduce fuel waste. Don’t drive around the block yet again looking for the perfect spot, but head a few blocks away to a less crowded area and take a walk.

17. Keep your car’s recommended maintenance schedule in mind.

By maintaining a vehicle properly, fuel economy is improved and harmful emissions are reduced. Maintaining your vehicle’s oxygen sensor in good working order is of particular importance. According to FuelEconomy.gov, faulty sensors can reduce fuel economy by up to 40%.

Your engine can burn gas more efficiently if you periodically replace your air filter and spark plugs — either on your own or during a routine auto checkup.

It’s also possible to improve fuel economy by 4% by maintaining your engine tuned – one of the key components of manufacturer-recommended scheduled maintenance.

18. Ensure that your tires are correctly inflated.

Compared to properly inflated tires, under-inflated tires burn one cent more fuel per mile than properly inflated tires. To put that another way, a full tank of gas will take you about 350 miles, which means that you’re wasting $3.50 per fill-up. When it comes to fuel efficiency, don’t ignore those pesky tire-pressure indicators.

19. Check the seal on your gas cap.

Gas cap seals can weaken over time and allow oxygen to leak into the gas tank, resulting in more gas being burned. However, if you drive an older vehicle, you might not be notified by a warning light. If you notice a decline in gas mileage, you may only suspect the problem.

There are a lot of places to buy cheap gas caps, such as major retailers or even Amazon. In many cars, gas cap sensors cannot detect replacements that aren’t made by the original manufacturer.

The dealer must replace your fuel cap if you don’t want it to remain illuminated perpetually. According to Repair Pal, you’ll pay between $98 and $103 for that.

20. Invest in a hybrid or all-electric vehicle.

Consider buying a hybrid-electric, plug-in hybrid-electric, or all-electric vehicle when purchasing a new or used vehicle. Toyota RAV4, Hyundai Sonata, and Volvo XC90 are just a few of the popular cars and SUVs that are available in hybrid form.

In addition to these models, there are hybrid and electric-only models like Toyota Prius, Honda Clarity, and Chevrolet Bolt, as well as totally electric cars like Tesla.

The federal government may offer tax credits as large as $7,500 to consumers who buy plug-in hybrids and all-electric vehicles, lowering their net costs significantly. There is a comprehensive list of currently eligible vehicles and the exact credit amount on FuelEconomy.gov.

FAQs

What are some common myths about saving money on gas?

The following myths about gas savings are common:

• Myth: It’s better to fill up your tank in the morning to save gas.
• Fact: Your car’s fuel economy is not affected by the temperature of the ground.
• Myth: Rolling down your windows saves gas.
• Fact: Open windows can reduce fuel economy by up to 10%.
• Myth: Premium gasoline can save you money.
• Fact: Premium gasoline is not necessary for most cars. Fuel economy will not be improved by using premium gasoline, and may even be reduced.

How much money can I save on gas?

Based on your driving habits and the type of vehicle you drive, you will be able to save on gas. You can save a great deal on gas if you follow the tips above.

As an example, you could save $1,000 per year if you drove 10,000 miles per year and saved 10 cents per gallon on gas.

What are some ways to save money on gas on long trips?

On long trips, you can save money by doing the following:

• Plan your route carefully. Avoid unnecessary detours by mapping out your route.
• Pack light. Having less weight on your bike will improve your gas mileage.
• Use cruise control. When you use cruise control, you can save gas by maintaining a consistent speed.
• Take breaks. Every few hours, take a break from driving and stretch your legs. By doing so, you’ll be able to keep alert and avoid fatigue, which can make you more likely to make mistakes.
• Fill up at the cheapest gas station. When it comes to gas prices, it pays to shop around to find the lowest price using an app like GasBuddy.

What are some ways to save money on gas when buying a car?

If you’re buying a car, here are some ways to save money on gas:

• Choose a fuel-efficient car. Whenever you’re shopping for a car, pay attention to the fuel economy rating. A car with a higher rating will be more fuel-efficient.
• Consider buying a hybrid or electric car. Compared to traditional gasoline-powered cars, hybrids and electric cars get better gas mileage.
• Buy a used car. It is often cheaper to buy a used car than to buy a new car, and they can still get good gas mileage when properly maintained.

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How you allocate your assets between equity and debt is one of the most important decisions you’ll make when investing. In addition to being riskier, equity investments, such as stocks, offer higher returns. Compared to equity investments, bonds offer a lower return but a lower level of risk.

What’s the ideal equity-to-debt allocation for you? Depending on your personal circumstances and risk tolerance, that will differ. However, you can make an informed decision following some general guidelines.

Equity 101

An equity investment is a form of ownership in a specific company. In essence, you are buying a small piece of the company when you purchase a stock.

If the company does well, your stock value will rise. As such, you can sell it at a profit. In the event that the company performs poorly, though, the value of your stock might decline. Consequently, you might lose money.

Over the long term, equity investments can provide higher returns than debt investments. However, they are also more risky. It is always possible to lose money when you invest in stocks due to their short-term volatility.

Pros:

• Over time, higher returns are possible.
• Potential for long-term growth.
• Capital appreciation potential.
• Dividends and interest income are potential sources of income.

Cons:

• Investing in equity is more risky than investing in debt.
• It is possible for prices to fluctuate more volatilely.
• Illiquidity.
• It is possible to lose money.

Debt 101

A debt investment is a loan you give to a company or government. Bonds, for instance, are essentially loans between buyers and sellers. Over a set period of time, the issuer will repay the principal and interest on the bond.

The most common examples of these fixed-income investments are treasury bills, commercial papers, certificates of deposit, corporate bonds, and government bonds.

While debt investments are less risky than equity investments, they offer lower returns. Stocks are more volatile than bonds, so you have a lower risk of losing money if you invest in them.

Pros:

• Investing in bonds is less risky than investing in equity.
• There is less volatility in prices.
• In most cases, the principal is repaid.
• Income stability.
• Liquidity.

Cons:

• A lower potential return.
• There is less potential for growth.
• Capital appreciation is less likely.
• Dividends and interest are not possible.
• There is an interest rate risk.

How to Choose the Right Allocation

When it comes to allocating your assets between equity and debt, there is no one-size-fits-all solution. Generally, your risk tolerance and individual circumstances will determine the ideal allocation for you.

In making your decision, you should consider the following factors:

• Age. Younger investors can afford to take on more risk because they have more time to ride out market volatility. Due to less recovery time from losses, older investors may choose less risky assets.
• Income. Taking on more risk may be easier if you earn a high income. On the other hand, low-income investors may want to invest in assets with less risk.
• Risk tolerance. What is your comfort level with risk? In the case of risk-averse investors, conservative assets might be a better choice. However, investing in more aggressive assets may be a good idea if you are more comfortable with risk.

Equity-Debt-Allocation Based on the “100 Minus Age” Rule

In asset allocation, your investments are divided among different asset classes, such as stocks, bonds, and cash. To determine the percentage of your portfolio that should be allocated to stocks, subtract your age from 100. For example, a 30-year-old should allocate 70% to stocks and 30% to bonds.

What is the rationale behind 100 minus age? The younger the investor, the more time they have to recover from losses. Therefore, the younger investor can afford a bigger risk. By allocating more of their portfolio to bonds as they age, investors can reduce their risk exposure and recover from losses faster.

You could follow these general guidelines:

• Young investors. 70% equity, 30% debt
• Middle-aged investors. 60% equity, 40% debt
• Older investors. 50% equity, 50% debt

It is important to keep in mind that the 100 minus age rule is only a guideline. You may need to adjust your asset allocation based on your individual circumstances.

For instance, you may feel comfortable with a higher stock allocation if you have a high-paying job and won’t retire for many years. On the flip side, if you plan to retire early from a low-paying job, you may want to increase your bond allocation.

As part of an investment strategy, asset allocation is just one component. Investing decisions should also take into account your risk tolerance, time horizon, and financial goals.

Among the pros and cons of the 100-minus-age rule are:

Pros:

• It is simple and easy to remember.
• Assists in determining asset allocation.
• Adaptable to individual needs.

Cons:

• Investors’ risk tolerance and financial goals are not taken into account.
• Not suitable for all investors.
• Some investors may find it too simplistic.

In addition to these asset allocation guidelines, you may wish to consider the following:

• The rule of 110. According to this rule, you should allocate stocks a percentage of your portfolio based on your age subtracted from 110.
• Asset allocation is based on age. Using this approach, your portfolio is allocated according to your age and risk tolerance. The portfolio of a 30-year-old investor with a high-risk tolerance might contain 80% stocks and 20% bonds.
• The target-date fund. In this type of mutual fund, assets are automatically allocated as you get closer to retirement.

It is important to note that these are just general guidelines. Financial advisors can assist you in determining your right allocation.

How to Rebalance Your Portfolio

You may drift away from your target asset allocation over time. You may experience this due to market fluctuations or a change in your circumstances. To ensure your portfolio remains aligned with your goals, you should rebalance it periodically.

Investing in assets that underperformed can be rebalanced by selling those that outperformed. By doing so, you will be able to keep your portfolio balanced and reduce your risk.

To rebalance your portfolio, follow these steps:

• Determine your asset allocation. Ideally, your portfolio should include a mix of stocks, bonds, and cash. Investing goals and risk tolerance will determine your asset allocation.
• Track your portfolio’s asset allocation. You may find that your portfolio’s asset allocation drifts away from your target asset allocation over time. The reason for this is that individual investment prices fluctuate.
• Rebalance your portfolio when it gets out of balance. Rebalancing your portfolio can be done in two ways:
  • Sell high-performing investments and buy low-performing investments. As a result, you will achieve your target asset allocation for your portfolio.
  • Contribute new money to your portfolio in a strategic way. It may be a good idea to devote all your new money to your underweighted asset classes until you have a more balanced portfolio.
• Regularly rebalance your portfolio. Keeping track of your risk tolerance and asset allocation will help you remain on track.

The following tips will help you rebalance your portfolio:

• Set a rebalancing schedule and stick to it. Maintaining discipline and avoiding emotional investment decisions will help you avoid making poor investments.
• Use a target-date fund or other automated rebalancing service. You can easily and conveniently rebalance your portfolio this way.
• Don’t be afraid to sell winners. When investments are performing well, it can be tempting to hold onto them. But, it may be time to rebalance your portfolio if these investments have taken up too much of your portfolio.
• Consider using tax-advantaged accounts for rebalancing. You may have to pay capital gains taxes if you sell investments in a taxable account. A tax-advantaged account, such as an IRA or 401(k), can help you avoid this problem.
• Rebalance your portfolio after large investments or withdrawals. You will be able to maintain an asset allocation that is aligned with your investment goals and risk tolerance.
• Rebalance gradually. Your portfolio doesn’t need to be rebalanced all at once. It is possible to gradually rebalance your portfolio by selling some overweight assets and buying some underweight assets.

To achieve long-term success, it is important to rebalance your portfolio periodically. This helps you stay on track with your investment goals and risk tolerance.

Conclusion

A well-diversified portfolio should include both equity and debt. Based on your personal circumstances and risk tolerance, you will need to determine the ideal equity-to-debt allocation for you. When allocating your assets, you should carefully consider these factors.

Additionally, asset allocation is not a static strategy. Your asset allocation may need to be adjusted as your financial goals and risk tolerance change.

Finally, you can develop an asset allocation strategy that’s right for you by working with a financial advisor. You can work with an advisor to determine your investment time horizon, risk tolerance, and financial goals. In addition, they can guide you in choosing the right mix of equity and debt investments.

FAQs

What is equity?

Investing in equity means owning a part of the company. In other words, the stock you buy represents a portion of the company. An equity investment can yield higher returns than a debt investment but is also more risky.

What is debt?

A loan that must be repaid with interest is called a debt. By investing in debt, you are lending money to companies or governments. Debt investments are less risky than equity investments, but their returns tend to be lower.

How do equity and debt allocations differ?

Investing in equity securities, such as stocks, is a percentage of your overall portfolio. An investment portfolio‘s debt allocation refers to its percentage allocated to debt securities, such as bonds.

How do you decide how much to allocate to equity and debt?

In response to this question, there is no one-size-fits-all solution. Your investment goals, risk tolerance, and age will determine the best equity and debt allocation for you.

What are some factors to consider when making an equity vs. debt allocation decision?

An equity vs. debt allocation decision needs to take into account the following factors:

• Age. To reduce your risk, you may want to allocate more of your portfolio to debt than equity as you age.
• Risk tolerance. For risk-averse investors, debt may be better than equity in their portfolio.
• Investment goals. You may want to allocate more of your portfolio to equity to achieve higher long-term returns.
• Current economic climate. The current economic climate also influences equity vs. debt allocation decisions. For instance, allocating more of your investment portfolio to equity may be a good idea if the economy is doing well.

How often should you rebalance your equity vs. debt allocation?

Investing in equity and debt should be rebalanced regularly, once or twice a year. By doing so, your portfolio will remain aligned with your risk tolerance and investment objectives.

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You’ve worked hard your whole life. And if you’re like many people, you dream of the day you can start your carefree retirement. But to have a carefree retirement, you need careful planning. If you’re currently in that planning stage, it may be worth taking a look at a lifestyle that’s gaining in popularity: comfortable retirement abroad in a foreign country.

Not all countries make equally great retirement destinations. But if you investigate your options, you’ll find a country where you can enjoy financial security while exploring a whole new world.

Choose Your Future: Finding the Right Retirement Destination

The first step in turning retiring abroad into a reality is choosing your destination. But when faced with a (literal) world of opportunity, choosing one country can be challenging.

Don’t just go with whatever country is currently the most popular destination. You’ll need to take your own preferences and priorities into account:

• Climate: What type of weather do you prefer?
• Culture: Do your values align with the nation’s culture?
• Language: Do you know the local language? If not, are you willing to learn it?
• Healthcare: Does the country’s healthcare system meet your needs?

Once you’ve found a few promising locations, take the time to visit each if you can. There’s no substitute for actually spending time in a country.

Retirement experts also recommend renting a home before purchasing one to ensure you’re comfortable staying in the country year-round.

Top Retirement Destinations Around the World

If you aren’t sure where you want to live after retirement, check out these popular destinations:

Portugal

Portugal is both scenic and affordable — its cost of living is roughly 29% lower than that of the U.S. In recent years, the Portuguese government has also taken steps to attract retirees: Many new residents are eligible for ten years of tax benefits!

Residency requirements are less strict than they used to be, though you will need to submit a valid passport, proof of health insurance, and proof of income. You also will need to pass a criminal background check.

Healthcare in Portugal is accessible, although there is a downside. EU residents get access to free healthcare immediately, but Americans must live in the country for five years and become permanent residents beforehand. However, you can purchase health insurance in Portugal, and it’s significantly less expensive than U.S. health insurance.

Portuguese culture is laid-back, and the country as a whole has a deep appreciation for music and the arts. It’s also a mecca of winemaking. Many of its citizens’ cultural values center around the importance of family.

Costa Rica

Retiring to a tropical paradise is a dream for many, and you can achieve that dream in Costa Rica. However, becoming a permanent resident can be difficult.

There are three different programs you can take advantage of when applying. The Pensionado visa is designed for retirees with at least $1,000 in monthly retirement income. The Rentista visa is an option with less strict income requirements.

And if you have the capital to invest in Costa Rican infrastructure, you can take advantage of the Inversionista program. This residency visa requires you to invest at least $200,000 in a qualifying business.

These paths don’t give you permanent residency status immediately; you must renew your residency every two years. You can apply to be a permanent resident after three renewals in a row (six years total).

If you retire here, you’ll find plenty of activities to keep you busy. You can enjoy visiting pristine beaches, hiking through jungles, and taking traditional Costa Rican cooking classes. Costa Ricans are friendly and welcoming, and the country is a vibrant mixture of Spanish, Indigenous, Jamaican, and even Chinese cultures.

Ireland

Ireland is ideal if you want to retire in a country with breathtaking beauty and a rich cultural heritage. However, it’s more expensive than some popular destinations; living in Ireland costs almost as much as living in the U.S.

Additionally, Ireland has stringent requirements for getting a visa and becoming a resident. To take advantage of its unique program for retirees, you first need to prove that you have a yearly income of at least €50,000 per person. You also need to have an emergency expense fund of roughly $250,000.

Once you get a visa, you must renew it yearly for five years. After that, you can apply for a five-year visa. You can then apply to be a permanent resident after 10 years has passed.

Healthcare in Ireland is relatively affordable, even if you pay out of pocket. You can also access both public and private health insurance.

Irish culture is known for being especially friendly, and you can easily meet locals and expats in the country’s many pubs. Because Ireland is so close to the rest of Europe, it also offers excellent travel opportunities.

Financial Considerations

Make sure you understand how moving to another country can impact your finances. Here are some things to think about:

Taxes Can Be Complicated

No one wants to pay double taxes. But if you’re a U.S. citizen living in another country, the IRS still requires you to file a tax return.

The good news is that most retirees in foreign countries don’t end up paying income taxes (unless it’s on retirement account distributions — more on that below).

Federal taxes aren’t the only thing you need to worry about. Some states will consider you a resident and require you to pay taxes if you retain significant ties to the state, such as if:

• You have a valid state driver’s license
• You have a U.S. bank account
• Your immediate family lives in the state
• You own a car registered in the state
• You’re registered to vote
• You own a house or other property in the state
• You still have a state mailing address

Taxes in foreign countries can be hard to navigate. These countries also might require you to pay more than you’re comfortable with. If minimizing tax liability is important to you, consider these tax-free retirement destinations:

• United Arab Emirates
• Qatar
• Bahrain
• The Bahamas
• Monaco
• The Cayman Islands
• Oman

A tax professional will take a look at your finances and help you understand the tax implications of your move.

Currency Exchange

The U.S. dollar usually has more purchasing power in foreign countries. But to avoid surprises before you move, ensure you understand the exchange rate.

Some countries (including El Salvador and Ecuador) use the U.S. dollar. If you’re moving to a country that doesn’t, decide where to exchange your currency. Some locations (like airports) charge hefty fees. Your best bet is to visit your local bank before you travel.

Cost of Healthcare

Chances are good that your current healthcare policy won’t cover you if you move abroad. The U.S. has some of the most expensive healthcare in the world, so medical care is likely to be more affordable wherever you move. However, before moving, look closely at the country’s healthcare programs and determine what type of coverage you will qualify for.

Retirement Income Options

If you live in a foreign country, you can still receive distributions from your retirement plan. Unfortunately, many of those distributions are still subject to taxation:

• 401(k): All withdrawals are subject to taxation
• Social Security: Tax guidelines are typically similar to those for U.S. residents, although you won’t be taxed if you live in certain countries
• Traditional IRA: Withdrawals are taxed like income
• Roth IRA: All qualified withdrawals are tax-free

Notably, you cannot receive Social Security retirement benefits if you live in a few specific countries. These include the following:

• North Korea
• Cuba
• Belarus
• Azerbaijan
• Kazakhstan
• Moldova
• Kyrgyzstan
• Turkmenistan
• Tajikistan
• Uzbekistan

The situation around retirement income and relevant taxes is more complex than you might think. Before planning your move, consult with a tax professional who can help you better understand your options and limitations.

Preparing for the Move

Living abroad during retirement can give you a new sense of freedom. But, like all significant steps in life, it takes some degree of planning. Here are some tips to help you get ready for the move:

• Make a Healthcare Plan: Health insurance benefits vary greatly from country to country — before you move, make sure you have options for accessing and paying for medical care
• Consider Transportation Options: Try to understand the country’s transportation infrastructure — researching flights to and from the U.S. and deciding whether you need to own a car are two great places to start
• Gather Documents: Before applying for a visa or moving, make sure documents like your passport, Social Security card, birth certificate, medical and dental records, driver’s license, and marriage certificate are at hand
• Look Into Banking: See if your bank has a branch in your new country; if it doesn’t, ask how you can make sure you’ll have access to your funds
• See If You Need Additional Immunizations: You might need another vaccine or two before you travel
• Consider Pet Transportation: Some countries restrict what types of pets you can have, and they might require animals to quarantine

The logistics of moving to a foreign country can be challenging to navigate. In many cases, it’s worthwhile to consult with an immigration professional to make sure you have everything in order.

Real-Life Experiences

One example of a successful overseas retirement is Christina and Amon Browning, a couple who moved from the San Francisco Bay Area to Portugal to retire early.

Thanks to the high cost of living in the Bay Area, the couple realized that retiring there would be nearly impossible. They tried to earn and save as much as possible, and they could retire in Portugal when Christina was 41 and Amon was 39.

Dave and Marcia Murray are another great example. They could retire in Grecia, Costa Rica, when they were 66 and 69, respectively. Both had lived and worked in Michigan. They opted to take early retirement packages and sell their home to buy land in Grecia. Using those funds, they built both a home and a guest house.

Marcia also noted that she and her husband found another benefit to living overseas: Thanks to the large population of expats in Costa Rica, the couple can socialize more than they ever did in the U.S. Because of Costa Rica’s low cost of living, they have been able to live off of their savings while enjoying a great quality of life.

Is Retiring Abroad Right for You?

Life doesn’t have to be boring after retirement. Retiring abroad opens the door to a wealth of new and exciting experiences — all while enjoying financial security.

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Every year, millions of students enter college in hopes of having a better future, complete with the promise of a well-paying job and financial security. While pursuing higher education is a noble goal, it is essential to consider the fact that college is an investment. Students pay a substantial amount upfront in the form of tuition, fees, and time spent studying, expecting that these investments will pay off in the future through a reliable annual salary and a fulfilling career.

With the prevalence of student loans and the impending fear of a student loan crisis in the United States, it has become all the more critical to educate young adults on the potential return they can expect from their investments in education. This article delves into the top 10 worst paying college majors and provides insights on how to make the right choices when considering a college major or a career path.

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Top 10 Worst Paying College Majors

Theology and Religion

Median Salary: $36,000

While this major offers a deep understanding of religious history and beliefs, it often leads to low-paying careers within religious organizations. Those passionate about theology and religion should consider if the material gains are more or less important than their spiritual fulfillment.

Family and Consumer Sciences

Median Salary: $37,000

This major focuses on the management of resources for homes and families, such as food, clothing, and housing. While a critical field for society, the median salary is generally lower compared to other majors.

Social Services

Median Salary: $37,000

Social service majors often work in crucial but under-appreciated sectors, such as public health, child protective services, and rehabilitation counseling. While the jobs are rewarding, they often come with relatively low salaries.

Psychology

Median Salary: $37,400

An essential field for understanding human behavior, psychology is an increasingly popular major. However, a bachelor’s degree in psychology may not guarantee a high-paying job, and advanced degrees may be necessary to obtain more lucrative positions.

Leisure and Hospitality

Median Salary: $38,000

Training in the leisure and hospitality sector can lead to careers in travel, tourism, and planning. However, these jobs can have irregular hours and often come with a lower median salary than other sectors.

Performing Arts

Median Salary: $39,000

While many people dream of a career in acting, dancing, or music, the reality often involves low incomes and gig-to-gig employment. For those passionate about the arts, it is essential to weigh their love for their craft against the potential financial rewards.

Mass Communication

Median Salary: $40,000

Journalism, advertising, broadcasting, and public relations all fall under mass communication. While some individuals in this field may achieve exceptional lucrative careers, the median salary remains lower than other industries.

Biology

Median Salary: $40,000

A surprising entry on the list, biology majors can face lower earnings in entry-level positions, such as lab technicians and research assistants. However, those who continue onto graduate education may find more lucrative career opportunities.

Early Childhood, Elementary, and Special Education

Median Salary: $40,000

Teachers are invaluable to society, but their salaries do not always reflect their importance. Early childhood, elementary, and special education majors may face low-paying starting positions, although opportunities for growth do exist with experience and additional credentials.

Liberal Arts

Median Salary: $40,000

A broad category encompassing subjects like history, English, and philosophy, a liberal arts degree offers diverse knowledge but often lacks specific job prospects. Liberal arts majors may need to pursue further education or develop specialized skills to enhance their career prospects.

FAQ Section:

Q1: What factors should I consider when choosing a college major?

A: When choosing a college major, it’s important to consider your interests, skills, and passion for the subject. Additionally, it’s advisable to research the potential career prospects and earning potential associated with different majors to make an informed decision.

Q2: Why is it important to be aware of the worst paying college majors?

A: Being aware of the worst paying college majors can help you manage your expectations and make realistic decisions about your educational investment. It allows you to consider the potential financial implications and weigh them against other factors that may be important to you, such as personal fulfillment or societal impact.

Q3: Should I solely focus on earning potential when choosing a major?

A: While earning potential is an important factor to consider, it shouldn’t be the only criterion for choosing a major. It’s crucial to pursue a field that aligns with your interests and strengths. Balancing your passion and the potential for financial stability can lead to a more fulfilling career in the long run.

Q4: Are there opportunities for growth and higher salaries within low-paying majors?

A: Yes, there can be opportunities for growth and higher salaries within low-paying majors. Some fields may require further education, specialization, or experience to access more lucrative positions. It’s important to research the career paths within the chosen major and identify ways to enhance your skills and qualifications.

Q5: How can I mitigate the costs of education?

A: There are several ways to mitigate the costs of education. Consider attending state schools or universities that offer lower tuition fees compared to private institutions. Look for scholarships, grants, or work-study programs that can provide financial assistance. Additionally, explore part-time employment or internships to earn income while studying.

Q6: Can I switch majors if I realize my chosen field has a low earning potential?

A: Switching majors is a possibility, although it may have implications on your academic progress and time to graduation. If you discover that your chosen major has a low earning potential and it doesn’t align with your long-term goals, it may be worth considering a switch. Consult with academic advisors and career counselors to explore alternative majors that better suit your interests and aspirations.

Q7: Does a low-paying major mean I will have a low income throughout my career?

A: Not necessarily. A low-paying major doesn’t dictate your income throughout your career. With experience, additional education, and skill development, you may be able to advance within your field or transition to higher-paying positions. It’s important to continuously seek opportunities for growth and stay updated on industry trends.

Q8: Is it advisable to pursue a minor or double major to enhance job prospects?

A: Pursuing a minor or double major can be beneficial in enhancing job prospects, especially if the additional field of study complements your primary major and expands your skill set. It can make you a more well-rounded candidate and open up opportunities in related or interdisciplinary fields.

Q9: Should I solely focus on earning potential and overlook my passions?

A: It’s not advisable to solely focus on earning potential and overlook your passions. While financial stability is important, finding a balance between your interests and income potential is crucial for long-term career satisfaction. Consider exploring ways to merge your passions with practical career paths or seek opportunities to pursue your passions outside of your main profession.

Q10: How can I make an informed decision about my college major?

A: To make an informed decision about your college major, conduct thorough research on potential career paths, earning potential, and job market trends for different majors. Seek advice from academic advisors, professionals in the field, and individuals working in careers you’re interested in. Additionally, consider internships, job shadowing, or informational interviews to gain firsthand insights into the industry you’re considering.

Conclusion: Invest in Education Wisely and Reap the Rewards

Although money should not be the sole determining factor when choosing a college major, young adults must understand the potential returns on their education investment. By gaining knowledge about expected earnings relative to their chosen field, students can make informed decisions and seek ways to mitigate costs, such as attending state schools rather than private institutions.

By understanding the financial implications of their chosen major and making informed decisions, college students can prepare for a future where they can reap the rewards of their educational investment without drowning in student loan debt. This balance will enable them to embark on fulfilling careers that contribute to a better, more equitable society.

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Part of retirement means re-evaluating your needs and transitioning to a new chapter of life. This downsizing process can be emotional as well as beautiful. Evaluating what you need out of your home can be one of the most freeing and stressful tasks.

When you first buy a home, you plan for a family and a vibrant career. You looked for rooms for your children, maybe a backyard for a dog (or even some chickens). If you’re lucky, maybe you invested in a home office or studio for your side projects.

You bought a car for errands and trips to visit the grandkids, and you keep it in the garage with all the materials you need to tend to your home and hobbies.

These things served concrete purposes at one point in your life, but their importance might start to fade in retirement. Perhaps many begin to become a drain on your time and money.

Whether you downsize, sell your things, move to a more straightforward home, or “rightsize” to find a home that works better for your new lifestyle, there are many factors to consider. From where you want to live to how to decide what to get rid of, downsizing can seem daunting, but let’s take it one step at a time.

The Benefits of Downsizing and Rightsizing

Downsizing can save you money and free up space for new adventures. Extra space and extra items are not only wasteful, but they can cost you more money and prevent you from pursuing your goals.

Heating Bills

Downsizing can save you from costly home repairs and unnecessary bills. For example, the average cost of heating a home in America comes close to $1,452 per year, according to the U.S. Energy Information Administration. And, if you have extra rooms, you could end up paying extra to heat the space even if you keep the thermostat low. This means that if you have space you are not using, you’re basically burning money. Extra rooms could also lead to water leaks or termites going unnoticed and causing long-term damage that costs you dearly.

Rental Income

Downsizing doesn’t just save you money; it can make you money to pursue new goals. If you own your home, you stand to gain a lot from selling or renting your property if you’re not quite ready. Perhaps you want some cash to help you travel the world, or you need an investment to start a new business; either way, your home could finance your next chapter.

Changing Needs

Of course, life is not all about the money. Rightsizing helps you align your lifestyle with your values and goals in retirement. Yes, needs change over time. While owning a home made sense at one point that property might be holding you back. Moving to a smaller apartment closer to family or moving into a retirement community could help you form more meaningful connections.

Moving closer to the mountains could help you get more fresh air and keep your body moving. If you’re a free spirit, retirement might be the time to get rid of all your possessions and travel the world.

Considerations Before Downsizing or Rightsizing

Before you start trying to sell your home and start your next chapter, you must evaluate your values and goals to help you decide what will be right for you. Sit down with a journal, a friend or your partner and talk seriously about what the next years of your life might look like. You can ask yourself: How much time will you spend at home? Who do you want to spend time with? What do you want to spend your days doing?

Once you know what changes you need to make, determine when you might be ready to make them. For instance, you might not feel prepared to let go of your family home, but you do feel ready to start a new hobby or business endeavor.

In this case, you might choose to rent out one of your rooms. With limited housing availability, rental prices are rising in cities across the U.S. If you rent out a room or rent your entire home, you could make a decent amount of money and even make some new connections.

If renting to strangers doesn’t sound like your ideal retirement situation, you could also buy some time with a reverse mortgage or sell your house to your kids and rent it from them.

Practical Tips for Decluttering

Regardless of which situation makes the most sense for you, decluttering your space will be an essential first step. Start with the parts of your home that you use the least. Maybe your garage is full of projects you never quite finished, or your attic still has all of your sweaters from high school; you can begin by taking an afternoon off and start sorting things into piles.

Start Small

If those spaces feel too daunting, one closet or one drawer might be enough to get you started. When a task feels too hard and emotionally draining, we tend to avoid it. However, psychologists have found that we can trick our minds into doing the big tasks if we break it up into small chunks and attack the task bit by bit.

Ask the Experts

Expert strategies can also help with decluttering. In addition to classics like Marie Kondo’s KonMari, you could use a “four-box method” — one for trash, one to donate, one to keep, and one to relocate. If you want to start small, but hit every room, you could try the “five-item-rule” and pick five items from every room to donate or throw away.

Take Your Time

Decluttering does not have to happen overnight. If you start preparing early, you can take time to see what items you really use. To help decide what clothing to get rid of, turn all your hangers backward and only turn them the right way around once you’ve used the clothing. If you haven’t worn something after a year, consider donating it.

Finally, remember that decluttering not only benefits you, but it can benefit others. While the chairs in your living room sit gathering dust most of the time, they could be in a child’s bedroom, acting as their very first desk chair. Giving things away gives them a second life.

Navigating Home Sales

Once you’ve decluttered your life, you might be ready for your new space. While the housing market will always be complicated, it can be even more complex in retirement and require some extra work.

If you’ve owned your home for over a decade, some of the wonderful, modern features you loved might be outdated. Putting in some additional work upfront could help get you a better price in the long run. You may want to look at the other listings in your neighborhood to get a feel for the potential price range and the competing houses before you get too excited about moving out.

While you may think it’s smart to save the 5-6% realtor fee and sell your home yourself, finding a realtor will likely make you more money in the end and save you headaches. Realtors can help avoid emotional sales, screen unqualified buyers, protect against legal risks, and access larger networks of customers.

Selecting Your New Home

When thinking about downsizing and where to move, you can start with the fun questions like what type of community do you want to be a part of? Americans are lonelier than ever and opting into more intentional communities can bring you joy as well as extend your life, given that loneliness can increase mortality by 26%.

Once you know what type of home you’d like to live in, you may need to consider your budget and your financing options. If you can plan ahead, you should consider investing in your retirement home before you retire.

You’re more likely to be approved for a mortgage while working full-time. If you can afford to pay off a second mortgage, you could save yourself a headache down the line. On the other hand, renting a place gives you more flexibility and should come with less maintenance.

Finally, you should consider long-term care. How accessible is the space? The older you get, the fewer stairs you will want to climb. Do you live near others who can take care of you if you get hurt? What is medical care like in your area?

Do you live somewhere with good options for nursing homes or more long-term care when the time comes? While these things may not be fun to consider, they will help reduce the number of times you need to move.

Adjusting to a Smaller Living Space

Having a smaller home might not be all sunshine and rainbows, especially if you live with a partner, or a pet or you have a lot of things you couldn’t quite give away. Once you know exactly how much space you have and how much stuff you need to put into it, you must get organized.

As you select your smaller living space, think about your needs vs your wants. If you have a pet, maybe you need a small backyard or a pet-friendly apartment. However, if you like the sun, maybe you just want to make sure you live near a park with a bench. If you choose a communal living space, you could prioritize your bedroom and bathroom while spending meals and leisure time in the common areas with your friends.

Regardless of where you end up, New York City designers, tiny home builders, and practical furniture companies have all kinds of solutions for small spaces. Mirrors, windows, and natural light make a space feel bigger than it is.

Multi-use furniture, such as benches that flip open, and couches that turn into beds or tables where all the chairs slide neatly underneath, help to maximize storage space. If you need inspiration for a particularly tiny space, you might look to van life influencers that manage to fit an entire world into the back of a car.

New Chapter, New Space

This phase of your life will look different, which can be amazing. Imagine living in a dorm with all your best friends, where you spend your days playing games and discussing your favorite movies.

Or maybe you have a room in your daughter’s home, and you get to babysit your grandkids every weekend. Perhaps you live in a camper van and sell your paintings as you drive around the U.S.

Regardless of where you see yourself, you may need to let go of some things to get there. From decluttering your space to selling your home, you will need patience and good guidance to let go of the past and step into your future.

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Not to fearmonger. But, the U.S. could be headed for a recession in 2023 due to high inflation and an increase in interest rates by the Federal Reserve. Thankfully, by having some less-risky assets in your portfolio, you can help weather market volatility.

While lower risk exposure reduces investment returns over time, the tradeoff is lower returns. If you’re aiming to preserve capital and generate regular interest income, that might be fine.

However, what if your goal is long-term growth? Should you consider investment strategies that match those goals? Then you’re in luck. Stocks, for instance, can have segments (such as dividend stocks) that provide high long-term returns while reducing relative risk.

So let’s dive into the 10 best low-risk and high-return investments for 2023 and beyond.

1. High Yield Savings Account

To begin with, we need to cover the safest option first; high-yield savings accounts.

As you may already know, a high-yield savings account is an insured savings account under the federal government. There is a higher interest rate on these accounts than the national average — which makes them appealing to many people.

Most of these accounts earn between 0.40% and 0.50% annual percentage yield. The annual percentage yield paid by some banks is between and based on aggregate account balances. In comparison, Bankrate’s June 7 survey of institutions shows an average yield of 0.25 percent APY for savings accounts.

A high-yield savings account doesn’t offer all that much excitement, but it does offer a significant rate. On top of that, you won’t need to put in any extra effort to increase your balance Besides, you can easily open an account online with Chime, Marcus, Alliant, Discover, or Varo.

As an example, let’s say you are able to open an account at 0.50% APY. With $10,000 in your account, you can earn around $50 per year. Even if you don’t make billions with this account, it’s much better than the five dollars you’d make with a 0.25% APY

2. Certificate of Deposit

If you search hard enough, you will not find a more boring investment than a Certificate of Deposit. The purpose of a Certificate of Deposit (CD) is to deposit your money for a specific period of time — usually between 3 months and five years. If you exchange your money for a guaranteed return, you will get it regardless of any interest rate changes.

Make sure you buy your CD from an FDIC-insured financial institution (up to $250k is protected). In general, the longer the CD’s duration, the higher the interest rate.

The 11-month No Penalty CD from CIT Bank is a good choice for a quick low-risk turnaround with 4.15%.

3. Short-term Bonds

A short-term bond fund invests in securities that mature in a year to three years. Besides commercial papers and CDs, they invest in long-term securities and government bonds.

In addition to the government issuing short-term debt (bonds), investment corporations and companies rated below investment grade can also issue short-term debt (bonds). It is also possible to purchase bonds for dividends or growth.

Why are short-term bonds so popular? Bonds with a short maturity date have a lower interest rate risk than those with a long maturity date. This makes short-term bonds less sensitive to market fluctuations.

Additionally, they have higher yields than money market funds, ranging from 0.5% to 1.5%+.

Just be aware that investing in short-term bond funds can lead to the loss of principal for investors. Similarly, corporate bond funds aren’t government-insured.

4. Series I Savings Bonds

Unlike other savings bonds, Series I savings bonds are issued by the government and backed by it. Normally, they pay interest every month. Inflation-based interest rates are calculated twice a year and combine a fixed interest rate with a variable interest rate.

The interest rate is 4.30% until October 2023. Even though you can cash in savings bonds as early as one year after purchasing them, they continue to earn interest for 30 years. Cashing them in before their expiration date will incur an interest penalty of three months.

5. Dividend Stocks

A dividend stock is an investment in a company that pays its shareholders a regular dividend. Typically, a dividend is paid quarterly, but can also be paid semiannually or annually. A dividend yield is a ratio of the dividend amount to the price of the stock, expressed as a percentage.

Investing in dividend stocks may also enhance the stability of your portfolio since dividend-paying companies are likely to be well-established. As a result, they’re considered low-risk investments.

A good example is Texas Instruments, which made the calculator you used in high school. Most of the company’s revenue now comes from semiconductor manufacturing. In terms of analog chips, it is the world’s biggest manufacturer, notes Cory Mitchell in Forbes.

The Morningstar rating for TXN’s financial health is “A”. Over the next five years, it is expected to grow EPS by 10% a year. Over the last five years, the company has steadily increased its dividend amount by 14.9%.

6. Annuities

Some investors are concerned about annuities because they were over-marketed to them by shady financial advisors who didn’t understand what they were buying.

However, they do not have to be frightening. In fact, annuities are a good option for investors whose portfolios need long-term stabilization.

Be aware of the risks of annuities, however, and speak with a good financial advisor before making a decision.

Why? In addition to being complex financial instruments, annuities have a lot of catch-up clauses. So, the most important thing you need to know about your annuity is how it works.

Although there are several types of annuities, purchasing one is the same as negotiating with an insurance company. You are being charged a lump sum of money.

In exchange, they promise a stated return rate. Depending on your annuity, your return might be fixed (with a fixed annuity), variable (with a variable annuity), or equity-indexed (with an equity-indexed annuity).

The risk is greatly reduced if you’re getting a guaranteed return. You are not protected by the Federal government when you acquire an annuity. Instead, you are protected by the insurance company that holds the annuity (perhaps by another company that further insurers the annuity company). These complicated products are generally very safe for your money, however.

My recommendation is to purchase a fixed annuity, such as Due, where you’ll get 3% a month.

7. Real Estate

People tend to view investing in real estate as a high-risk venture. That’s fair enough. You must deal with tenants, handle repairs, manage payments, or learn by trial and error how to invest in real estate.

However, there are low-risk options as well. As an example, you can purchase Real Estate Investment Trusts through ETFs.

The one option I’ve loved over the years because it’s easy, simple, and has returned good money to me is Fundrise.

Fundrise is an online platform for crowdfunding Real Estate Investment Trusts. The Fundrise team takes care of your money while you sit back and watch it grow.

In addition, Fundrise lets you start a well-diversified portfolio of commercial, condos, single-family homes, and multi-family properties for as little as $10.

8. Money Market Funds

Money market accounts are mutual funds designed to protect your principal from losing value. In addition to paying interest, the fund tries to make parking your cash worthwhile by offering a little bit of return on investment as well. Generally, funds are aimed at maintaining a $1 per share Net Asset Value (NAV).

There’s no guarantee these funds will work. Nevertheless, they have a solid pedigree when it comes to protecting your money.

In rare cases, the NAV can fall below $1. In a money market fund, where can you park your cash? You can usually do this with a great broker like TD Ameritrade, Ally Invest, and E*T RADE or with the same banks that offer high-interest savings accounts.

You may not earn much interest on your investment, but you won’t lose much of it or worry about market fluctuations.

9. Treasury Inflation-Protected Securities (TIPS)

A TIPS bond, not a tip you would leave a waiter or waitress, is a type of U.S. Treasury bond specifically designed to protect investors from inflation. At Treasurydirect.gov, you can purchase them in $100 increments with a $100 minimum investment. TIPS can also be purchased through a great broker like Ally Invest or TD Ameritrade.

The growth of these bonds can be achieved in two ways. First, there’s a fixed interest rate that doesn’t change over the bond’s lifespan. The second is government-guaranteed inflation protection.

As an example, you may want to invest in TIPS today, which offers 0.35% interest rates. Compared to certificates of deposit and even basic online savings accounts, that’s a lot less.

Until you realize your investment value will grow with inflation over the term of the bond and give you a higher return, that doesn’t seem very appealing.

TIPS can be purchased individually or you can invest in a mutual fund that, in turn, invests in a basket of TIPS. The latter option makes managing your investments easier while the former gives you the ability to pick and choose with specific TIPS you want.

10. Yourself

Investing in yourself is another way for you to invest with low risk and high return.

The reason? There is no better way to get a high return with very little risk than to invest yourself. As a matter of fact, this is the best investment with the largest potential return.

It all starts with investing in your education and enhancing your experiences. By reading financial books, taking online courses, or talking to a financial planner, you can improve your financial literacy.

Additionally, it’s all about improving yourself mentally, emotionally, and spiritually, or whatever that looks like to you.

FAQs

What are low-risk investments?

Low-risk investments are those with little chance of losing money. In general, lower-risk investments offer lower returns. However, investors who are looking to protect their capital tend to consider these investments safer.

Are there any low-risk investments that offer high returns?

Investing in low-risk items can produce high returns. Among them are:

• High-yield savings accounts. Compared to traditional savings accounts, these accounts offer higher interest rates.
• Series I savings bonds. Besides offering a fixed interest rate, the bonds are indexed to inflation and are issued by the U.S. government.
• Short-term certificates of deposit (CDs). Short-term CDs offer higher interest rates than traditional savings accounts.
• Money market funds. A short-term debt fund, such as a Treasury bill or commercial paper, invests in bonds for a short term.
• Treasury bills, notes, bonds, and TIPS. In addition to offering a variety of maturities and interest rates, these securities are issued by the U.S. government.

What are the risks of low-risk investments?

While low-risk investments are relatively safe, there are still risks involved. A few of these risks are:

• Inflation. Your investment can lose purchasing power due to inflation.
• Interest rate risk. Investing at a time when interest rates are rising could result in a decline in your investment.
• Liquidity risk. If you need to access your money quickly, you may have difficulty selling your investment.

How do I choose the right low-risk or high-return investment?

Depending on your individual circumstances and risk tolerance, you may prefer a low-risk or high-return investment. In order to get personalized advice, it’s important to speak with a financial advisor.

To help you choose low-risk or high-return investments, here are a few tips:

• Set your financial goals. Are you saving for a specific purpose? An example could be a down payment on a house or retirement. When you know your goals, you can start looking for investments that can help you get there.
• Consider your risk tolerance. What is your comfort level with risk? Low-risk investments may be a good option for risk-averse investors. You may want to consider high-return investments if you are more comfortable with risk.
• Diversify your portfolio. Be careful not to place all your eggs in one basket. Reduce your risk by investing in a variety of investments.
• Do your research. You should always research any investment and understand the risks involved before you make a decision.

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Most of us understand the basics of loans already. You need a certain amount of money, so someone lends it to you, and you eventually pay them back with interest attached. However, the process of taking out, consolidating, and repaying loans is much more complicated.

In this article, we’ll review some of the essential information you should have as a young adult considering taking out a loan. We’ll focus on a type of loan you may have already taken out – a student loan – and loans you may need to take out in the future, like a home loan.

Key Takeaways

• Student loans can be subsidized or unsubsidized. The former means students don’t accrue interest on their loans while they’re in school and during a six-month grace period. The latter accrues interest throughout the entire life of the debt.
• The payment pause will come to an end this fall. At that point, students will have to resume making loan payments, unless they see their debt wiped out by Biden’s forgiveness policy before then.
• A secured loan – like a mortgage – carries collateral your lender can seize in the event you don’t make your monthly payments

Student Loan Basics

College tuition has become increasingly expensive over the years. Recent data has shown average tuition costs for four-year public universities climbing above $25,000 for out-of-state students. Because of this, taking out a student loan may be essential to your attending college.

Public Loans

There are two types of student loans you can take out: public or private. A public loan, also referred to as a federal student loan, is taken from the U.S. government, with interest rates set by Congress. Within this category are two additional categories of loans: subsidized and unsubsidized.

A subsidized loan allows you to take out money without owning interest while you’re in school and during a six-month grace period after graduating. An unsubsidized loan accrues interest throughout the borrower’s time in school. Though they can decide whether to pay it off during or after school, the borrower is fully responsible for the interest payments.

Note that only undergraduates qualify for subsidized student loans. If you’re a graduate student applying for a federal student loan, it will be unsubsidized. To apply for a federal student loan, you must complete a Free Application for Federal Student Aid (FAFSA).

When paying off your public student loan, there are a few things you can do to save money. You can pay off your debt immediately, pay more than the minimum monthly balance, and set up an automatic debit feature, which may marginally lower your interest rate.

Remember that the cost of your debt will continue to increase as long as interest is applying, so paying off your student loans faster translates to spending less money overall.

Private Loans

Private loans can be taken out in a similar way, but you’ll go through a private lender rather than the federal government. The private lender will consult your credit report when gauging how much they want to lend you. If you’re young and don’t have a robust credit report, the private lender may request a co-signer for your loan.

Taking out a public loan before a private one is generally advisable since interest rates tend to be lower than the former. However, every person’s situation is different, which may not be the case for you. Generally, people take out private loans when the amount of their public loan is insufficient to cover tuition costs.

Another benefit of public loans is extra flexibility in the repayment period. If you take out a public loan, there are often options for a graduated repayment plan, meaning the minimum monthly balance starts small and grows over time. Extended repayment is also an option, allowing you more time than the typical 10-year repayment period.

Public loans also have the potential for forgiveness, especially if you take a public-service job. Private loans may offer some of these features for repayment, though it’s less common. So if you’re considering refinancing your public loan (selling it to a private lender), consider that you’ll likely lose this flexibility.

Current Events Affecting Your Student Loan Repayment

Recently, many students and graduates have enjoyed not making student loan payments because of “forbearance,” the payment pause put into place during the pandemic. That interest-free period, though, will come to an end this fall.

Per the latest federal debt ceiling bill guidance, the payment pause will end 60 days after June 30, 2023. That means interest will resume on your accounts starting September 1, so payments will be due again in October of this year.

At the same time, President Biden’s federal student debt cancelation policy is being debated in the Supreme Court, with a verdict to be announced later in June or July of 2023. It’s possible your student loan debt will be canceled entirely because of this policy, but we’ll have to wait and see what the Supreme Court decides.

Personal Loan Basics

A type of loan you likely haven’t encountered yet but may sometime soon is a personal loan. This kind of loan can help you pay for a one-time, large purchase. Some people take out personal loans to pay for home repairs, a useful purchase since it will hopefully raise the value of your home.

Most personal loans are unsecured, meaning any collateral doesn’t guarantee them. A secured loan, like an auto loan or mortgage, includes collateral (your car title or house) that allows the lender to have more confidence you’ll pay them back. Unsecured loans are riskier for lenders and often carry higher APR rates as a result.

Repayment periods for unsecured loans can range from two to seven years – though some people may be offered a repayment plan of up to ten years.

Another type of personal loan you can take out is a debt consolidation loan. This type of loan allows you to bundle multiple unsecured debts into one and is useful if the new loan will give you a lower interest rate than those attached to your existing debts.

It’s generally not advisable to take out a personal loan to pay for a large, discretionary purchase like a vacation, or for emergency expenses. It’s often better to build an emergency fund that could cover up to six months’ worth of living expenses.

Home Loan Basics

When applying for a mortgage as a first-time homebuyer, you’ll need certain things ahead of time to be approved. First, you’ll need proof of income for a minimum of two years. Lenders will want to see if you can pay the mortgage amount. You’ll want to be able to make a down payment of at least 3.5% and have a credit score of 620 or higher.

As a first-time homebuyer, getting around one or more of these requirements is possible, though it’s generally better if you meet all three.

If you can qualify for a conventional home loan, that’s ideal. Conventional loans usually carry lower interest rates than loans backed by the government. However, you’ll need a higher credit score, lower debt-to-income ratio, and a more significant down payment to qualify.

Conventional loans can be divided into two categories: conforming and nonconforming. Conforming loans can be sold on the secondary market and meet specific requirements set by government-sponsored enterprises like Freddie Mac. Nonconforming loans have their guidelines set by the person underwriting the loan, and, therefore, can’t be sold on the secondary market.

The more common loan option for first-time homebuyers is a Federal Housing Administration (FHA) loan. An FHA loan allows for a lower down payment and also requires borrowers to pay a mortgage insurance premium.

Fixed- and Floating-Rate Mortgages

Another consideration you’ll have to make when getting a home loan is whether you want a fixed- or floating-rate mortgage. The former is a more safe option, as you’ll know how much you’ll pay toward the loan for the entirety of its existence. If you secure a fixed-rate home loan when rates are low, it will be locked in for the entirety of the loan’s lifetime.

A floating-rate mortgage is helpful to first-time homebuyers because they usually come with a lower introductory rate that slowly increases over time. If you expect your income to increase over time, this kind of mortgage may be right for you. However, they carry additional risk, since your loan’s interest rate may jump higher than a fixed-rate mortgage, depending on the market.

There are many considerations to consider when applying for a home loan. The critical thing to remember is that the more you’re ready to put into a down payment, and the higher your income, the greater your negotiating power with lenders.

Tackling Debt: Snowball vs. Avalanche Method

There are many ways you can approach repaying debt. Two popular methods are the snowball and avalanche methods. The snowball method involves paying extra toward your smallest debt first, then redirecting the money you put into that debt toward the next smallest debt. The avalanche method involves paying off debts with the highest interest rate first, then moving on to the debt with the next highest interest rate.

The method you choose will depend on the kind of debt you have. Consulting with a financial expert may be a good idea as your finances become more complicated.

The Bottom Line

Most of us will take out a loan at some point in our lives. Student loans can help you attend college, and may not carry interest for a time if you can secure subsidized loans. Personal loans are a good option for large, one-time purchases, allowing you to consolidate debt. There are many different types of home loans, and you’ll want to conduct extensive research before applying for one as a first-time homebuyer.

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According to the Employee Benefit Research Institute, only 33% of Americans feel confident about retiring comfortably. Many individuals and families struggle to secure their financial future, making it essential to be aware of the pitfalls and mistakes that can derail your retirement plans.

My story began when I was 25, fresh out of college, and eager to make my mark in the world. Like many young professionals, I was keen to start saving for my future and become financially independent as soon as possible. However, I made a critical financial mistake that would delay my early retirement dreams by a whopping seven years.

The mistake? Neglecting to prioritize high-interest debt repayment. I was so focused on saving and investing that I ignored the mounting debt I had accumulated, mainly in the form of credit card debt and student loans. Little did I know that the high-interest rates on these loans were eating away at my potential savings and investments, preventing me from reaching my financial goals sooner.

How Ignoring High-Interest Debt Can Cost You

To put things into perspective, let’s consider an example. Suppose you have $10,000 in credit card debt with an average annual interest rate of 20%. If you only make the minimum payment of 2% each month, it will take you a staggering 27 years to pay off the debt, and you’ll end up paying over $21,000 in interest alone.

Now, let’s say you also have $30,000 in student loans with an interest rate of 6% and a 10-year repayment term. Over the life of the loan, you’ll pay approximately $9,967 in interest. If you had tackled your high-interest debt before focusing on savings and investments, you would have had more money to invest earlier, allowing you to benefit from the power of compounding interest.

In my case, the extra seven years of debt repayment meant missing out on significant investment growth, which could have helped me achieve my early retirement goals sooner.

Why You’re Likely Making This Mistake Right Now

The problem with high-interest debt is that it’s incredibly easy to accumulate, especially when using credit cards for daily expenses, taking out loans to finance education or other big-ticket purchases. Many people fall into the trap of only paying the minimum monthly payment on their debt, not realizing how much money they’re losing in interest over time.

Furthermore, individuals often fall victim to the temptation of lifestyle inflation. As your income increases, it’s natural to want to upgrade your lifestyle, leading to increased spending and even more debt. However, keeping your expenses in check and maintaining a frugal lifestyle allows you to allocate more money towards debt repayment and investments, accelerating your journey toward financial independence.

To put it simply, the longer it takes to pay off high-interest debt, the more interest you’ll pay, and the less money you’ll have to invest in your future. The key is to identify and prioritize high-interest debt repayment as early as possible.

How to Tackle High-Interest Debt and Get on Track for Early Retirement

You can refer to the following steps to achieve your financial goals, retire early, and tackle high-interest debts efficiently.

Assess Your Debt And Prioritize High-Interest Debt

First, make a list of all your outstanding debts, noting the balance, interest rate, and minimum monthly payment for each. This will help you gain a clear understanding of your current financial situation and allow you to prioritize your debts effectively. According to a 2022 report, the average American had a personal debt of $101,915, including mortgage loans, credit cards, student loans, and other types of debts.

Knowing your total debt and interest rates will empower you to make informed decisions about your repayment strategy. Once you assess your debts, focus on paying off the debt with the highest interest rate first while still making minimum payments on your other debts. This is known as the “avalanche method” and can save you thousands of dollars in interest payments over time.

For instance, if you have two debts – a credit card debt with a 20% interest rate and a student loan with a 6% interest rate – you’ll save more money by paying off the credit card debt first.

Create A Debt Repayment Plan

Develop a realistic plan to tackle your high-interest debt, including a timeline for repayment and specific strategies for cutting expenses and increasing your income. A study by the National Foundation for Credit Counseling found that individuals who had written debt management plans were more likely to succeed in their efforts. Thus, consider breaking your goals into smaller, manageable steps. For instance, reduce your credit card debt by 10% in the next six months. This may help you stay on track.

Increase Your Monthly Payments And Consider Debt Consolidation 

Whenever possible, pay more than the minimum monthly payment on your high-interest debt. This will not only reduce the amount of interest you pay over time but also help you pay off the debt faster. Statistics say that increasing your minimum monthly payment by just 1% could help you save significantly on interest. Besides, it may reduce your repayment term by almost two years. Make it a priority to allocate any extra income, such as bonuses or tax refunds, toward your high-interest debt repayment.

If you have multiple high-interest debts, consider consolidating them into a single loan with a lower interest rate. This can make your debt more manageable and save you money on interest payments. A recent study shows that borrowers who consolidated their credit card debt with a personal loan saved an average of $3000 in interest over the life of the loan.

Create An Emergency Fund

A report by the Federal Reserve found that 68% of Americans would struggle to cover an unexpected $400 expense. While focusing on debt repayment, it’s essential to build an emergency fund to cover unexpected expenses, including medical bills or job loss.

Aim to save at least three to six months’ worth of living expenses in a separate, easily accessible account. Having an emergency fund in place can help you avoid accumulating additional high-interest debt in times of crisis.

Reassess Your Budget

As you work on repaying your high-interest debt, review your budget regularly and adjust it as needed. Identify areas where you can cut back on expenses or increase your income to allocate more money towards debt repayment.

According to the Bureau of Labor Statistics, the average American household spends 50% of its income on housing and transportation costs. By reevaluating these expenses and making adjustments, such as downsizing your living space or using public transportation, you can free up more money for debt repayment.

Stay Disciplined And Educate Yourself 

Instead of taking the journey as a hasty dash, see it as a steady trek. Stay disciplined in your debt repayment efforts and focus on long-term financial goals. Besides, take the time to learn about personal finance and investing. Remember, a solid understanding of these topics can help you make informed decisions about your money. Read books, attend seminars, and seek advice from trusted financial professionals.

A recent report reveals that 15% of adults lost over $10,000 because of inadequate financial knowledge. Expanding your financial knowledge can help you make smarter decisions about debt repayment, saving, and investing.

Don’t Forget To Invest

While it’s essential to prioritize high-interest debt repayment, don’t forget to invest for your future. Once your high-interest debt is under control, start contributing to your retirement accounts, such as a 401(k) or IRA, and consider investing in low-cost index funds to grow your wealth over time.

An individual who invested $10,000 in the S&P 500 index in 1980 would have accumulated approximately $699,788 by the end of September 2021, assuming they reinvested all dividends. Even in small amounts, consistently investing can yield significant returns in the long run.

Monitor Your Progress

Regularly review your financial situation and track your progress toward your early retirement goals. This will help you stay motivated and make any necessary adjustments to your plan along the way. In a 2010 study, researchers found that those who had clear financial goals and monitored progress were more likely to achieve financial success. The study reported that people with well-defined goals and consistent monitoring were 20% more successful in accomplishing their financial objectives compared to those who did not follow these practices.

Besides monitoring your progress, try learning from others’ mistakes. Surround yourself with like-minded individuals who share similar or higher goals. Learn from their experiences to avoid making the same errors and to stay focused on your financial objectives.

According to a 2019 report, individuals that surround themselves with even more successful people who have better goals are more likely to succeed. Therefore, consider joining online forums, attending local meetups, or engaging with social media groups to connect with others on a similar or higher financial journey and learn from their experiences.

Conclusion

Prioritizing high-interest debt repayment is crucial to securing your financial future and achieving early retirement. Implementing the strategies outlined above may help you avoid the costly consequences of high-interest debt and set yourself up for retiring at your preferred age.

Once you avoid these interest traps, you can channel your money towards investments that can grow multi-fold in the next few years. Don’t let one bad financial mistake invade your retirement dreams and turn things hectic. Take control of your finances today and start paving the way toward a brighter tomorrow.

FAQs

1. What Is The Difference Between The Avalanche And The Snowball Method For Debt Repayment?

The avalanche method focuses on paying off debts with the highest interest rates first. Besides, it wants you to make minimum payments for other debates simultaneously. This approach can save you more money in interest payments over time. On the other hand, the snowball method prioritizes paying off the smallest debts first to build momentum and motivation, regardless of the interest rate. Both methods can be effective, but the avalanche method is generally more cost-effective in the long run.

2. How Can I Increase My Income To Pay Off High-Interest Debt Faster?

There are several ways to increase your income to tackle high-interest debt more quickly, including negotiating a raise at your current job, taking on freelance or part-time work, selling items you no longer need, or investing in your education to qualify for higher-paying job opportunities. Explore various options and choose the ones that work best for your schedule and skill set.

3. Can I Negotiate Lower Interest Rates With My Creditors?

Yes, you can try negotiating lower interest rates with your creditors. While there’s no guarantee that they will agree, it’s worth the effort. A reduced interest rate can save you a significant amount of money over time. To increase your chances of success, prepare a solid report highlighting your payment history, credit score, and any competing offers from other lenders.

4.  Is It Better To Pay Off High-Interest Debt Or Invest In My Retirement Accounts?

Prioritizing high-interest debt repayment is generally recommended, as the interest you save by paying off the debt is often higher than the returns you can expect from investments. However, if your employer offers a retirement plan with matching contributions, it’s a good idea to contribute  enough to receive the full match, as this is essentially “free money.” Once your high-interest debt is under control, focus on increasing your retirement savings and investments.

5. What Should I Do If I’m Struggling To Make Progress On My High-Interest Debt Repayment?

If you’re having difficulty making progress on your debt repayment, consider seeking professional help from a credit counselor or financial planner. These experts can help you create a personalized plan to tackle your debt and provide guidance on budgeting, saving, and investing. Additionally, consider exploring debt relief options, such as debt consolidation or debt settlement, to potentially lower your interest rates and monthly payments.

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College life brings you the freedom to make new friends, the privilege of exploring new ideas, and, of course, the liberty to earn money! If you hate stereotypical tags like ‘broke students,’ it’s time to realize your million-dollar dream. Moving away from your home and making big changes, you get closer to your financial freedom. How about strategizing a few business ideas and celebrating your independence?

While most students remain content with their thriftiness, your young years silently slip by. Given that you have already started earning during college, this is the best time to hone the commercial stance. Making money as a student shouldn’t be as difficult as you think. There’s a plethora of business avenues beyond food delivery, babysitting, or tutoring.

While the average age of millionaires in the US is 57, you wouldn’t like to prolong your journey until your retirement days, right? Do you know that the top 100 wealthiest people in the world earned their first million dollars at an average age of 37? This justifies the value of starting early. Whether you invest in cryptocurrency, crowd-fund real estate, or venture into entrepreneurship, make the best of your college years.

Low investment, moderate to zero risk, and less time intensive: students habitually love venturing into avenues that offer such perks. Prioritizing these three parameters, we have shortlisted ten business ideas you might find appealing.

Organize trips for travel agencies

Why not put your planning skills to use and travel during your weekends? College students often work as part-time trip planners while balancing their academics.

Travel agencies are always on the hunt for energetic individuals to carry out mundane tasks like flight bookings, hotel reservations, and chalking out itineraries. Walking in the shoes of a trip planner, you would love your lifestyle, traveling with groups.

Pair up with a local travel agency and start channeling your efforts. You may also consider planning trips to different cultural festivals or events.

Bonus tip: When you remain away for trips, why not rent your apartment on AirBnB since it would remain vacant? This way, you can make hundreds of dollars every month. As a part of your financial planning, consider putting a part of this away in a high-yielding savings account or investing in mutual funds.

Launch an event-planning start-up

Do you love socializing and partying a lot? Why not think commercially and transform your administrative efforts into a venture? Event management should be your forte if you love coordinating things, managing people, and collaborating with teams.

Event management is largely human resource-oriented, so there’s no big investment in this venture! Start with organizing small group meets or running projects in nightclubs. Loop in like-minded friends, and a well-organized event management start-up will fetch you profitable returns.

With tech-savvy minds and a few social media influencers, it won’t take long to spread the word. Everyone looks out for affordable event management partners for a variety of gatherings. Start with small parties, and with the right resources, you can scale it in the coming months.

Remember, when it comes to long-term financial planning, you’ve got to save! While you’re celebrating your new-found venture, living on something better than instant noodles, don’t go on a spending spree!

It’s all about being resourceful in your college years that build your financial stature. So, put aside a part of this hot money in IRAs. Yes, you can open an IRA as a college student. Most importantly, you’d be deferring taxes on your profits.

The earlier you start investing in an IRA, the better you can capitalize on the power of compound interest.

Start small with real estate investments

Well, real estate may not be the first thing you’d consider as you hunt for profitable ventures for college students. How about going for crowd-funded real estate investments, where you can start with just $500 or so? Both commercial and residential real estate crowd-funding can bring in lucrative returns.

If you’re interested in exploring available Airbnb for sale, it can be a great opportunity to expand your real estate portfolio and maximize your investment potential.

Real estate is no longer the domain reserved for affluent investors. With the inception of crowd-funding platforms, even college students can channel small investments to stream an alternate source of income. Look out for one of these platforms with reasonable fees to get started.

Once you start stacking up your returns in your CD or high-yielding savings account, think bigger. How about partnering with a few friends to purchase a multifamily home or a 4-room apartment? Simply rent out three rooms, keeping one for yourselves to stay. The rental returns would cover your mortgage payments and leave a sizable margin for each of you.

Do you know how crucial real estate is for your overall asset mix? Besides, long-term real estate investments can significantly grow your asset value. Robust retirement portfolios also have a substantial share of real estate investments. Considering the stability and growth prospect of real estate, it’s sensible to get started early.

Design print-on-demand goods and school stuff

One of the best privileges of being a college student is your connection to the academic circuit. From parents to students and staffers to alumni, you have a sizable customer base to craft on-demand goods. Simply track trends and maximize your creativity as you create customized hats, mugs, t-shirts, jewelry, and stationery.

As you start streaming in a consistent pay by printing on-demand goods, list your products and designs on eCommerce portals. Gradually, target on-campus events and online sites to sell your merchandise. Follow local organizations and groups and put your offerings on display.

College students make decent money selling t-shirt designs and other online products. As you consolidate your revenue, launch your own website, given that you already have a steady clientele. Now, launch a commission-earning program for your existing customers where you offer them a discount or coupon as they refer your site to others. You might also consider having affiliate networks to grow your venture.

Buy and sell textbooks

Some of you might already be salvaging a part of your semester course fees by selling your old textbooks. How about thinking a bit deeper and converting this into a profitable business?

With the basic approach, you can get back a part of your money spent on purchasing textbooks. Now, think of a strategy where you collect used textbooks from other students or your seniors. Grow your connections in the academic circuit and build a rapport so that you can source old books for free or minimum value.

Save these books for the next semester, and then approach students who would like to purchase them at a discounted price!

Or, think a level higher. How about renting out textbooks to students and retrieving them at the end of the semester? This way, you can earn several times more than the cost of the book.

Launch a jewelry business

Launching a jewelry business would be a great start-up idea for college students. If you are into making handicrafts, why not try out your hands on jewelry? After all, it’s simple and involves a low investment. Check out a few YouTube courses, and you will be all set! All you need is practice and precision to come up with low-cost jewelry.

Considering that you can list them up on Amazon or other popular eCommerce websites, profit margins are pretty high. Try partnering with social media influencers for a commission on sales they make.

Remember, regardless of the kind of side hustle you indulge in, you need to start saving early. When you graduate and find full-time employment, start saving for your future to boost your financial resilience.

Venture into dropshipping

College students with an entrepreneurial mindset habitually venture into dropshipping. This is a relatively new business model in the eCommerce space.

Through dropshipping, you can sell online merchandise to customers even without paying upfront for the products or managing your inventory. So, if you think your marketing skills are decent enough, try your hands at this business. Rather than how you source the product, prioritize how you market, curate, and position them.

In this business model, the product is manufactured, shipped, and even stored by third-party dropshippers. You simply have to own your online store to sell these products. The best advantage of dropshipping is that you never run the risk of overstocking or blocking your funds.

Start a baking business.

Do you admire the chef in yourself? Maybe you can try and come up with a few ground-breaking recipes that you can turn into a million-dollar business.

Selling baked food, cookies, and cakes isn’t new, but how about pairing up with eCommerce brands to sell your stuff? Maybe, you can also loop in a few food bloggers and influencers to market your recipes for a commission.

The best thing about the food business is the power of words. Satisfy a few customers, and they will go around spreading your word! There’s nothing as novel as exciting their taste buds.

Also, you will have on-demand orders coming in from your existing customers. How about taking your bike to go around the campus and selling your goodies to students?

Digital marketing business

Comfortable with writing gigs and blogs? Many of you may already earn a handsome income by contributing to freelancing platforms. Why not cultivate the creative strengths in you to launch a full-fledged digital marketing business?

Mastering SEO techniques wouldn’t take more than a few weeks. The best part is you need almost no investment in terms of equipment to get started.

To stream consistent and recurring income, go for affiliate marketing. This is one of the best avenues within the ambit of digital marketing. Try out niches like selling monthly newsletter subscriptions or other digital products. This warrants a long-term income since you would earn a commission each time your buyer renews the scheme! Digital marketing businesses can consolidate your finances over the years as you continue to earn passive income.

Sell your class notes

Look out for dozens of lazy students around the campus, who are reluctant enough not to take their class notes. We all have peers who’d spend time roaming around the campus or devise innovative excuses to ditch lectures. So, it’s time to hunt them out and sell them instant notes you had taken!

Being innovative with this business idea would help you carve out your niche market. You might be exceptionally good at taking notes and summarizing information to develop easily-readable study materials. Simply re-sell your notes or create instant study materials for your peers.

You may also come up with packages of notes based on semesters or modules. Start by selling individual notes before coming up with bundles.

Start now

With tons of side hustles available for college students, picking the productive ones turn out to be a challenge. Now you know how to engage in lucrative ventures while striving towards a financially resilient career.

While most of you might already be engaged with on-campus activities like newsletter distribution, tutoring, or taking video classes, none can translate to a long-term business venture. As you visualize your long-term millionaire goals, you need strategic planning and firm footing into investments.

Ultimately, being prudent about where you venture or invest defines your millionaire goals.

FAQ

Can college students start investing in the money market?

Yes, it would be a good idea for college students to start investing in shares and mutual funds. However, an educated decision would help them yield long-term returns. Rather than indulging in speculation, it’s wise to invest in quality stocks of established companies. Alternatively, investing in REITs can fetch you decent returns.

Should I do a part-time job or business as a college student?

As a student, you must learn to use your time best. Although most students indulge in some part-time job, consider whether this contributes to your experience or job profile. Venturing into business would be a better decision if you can stream in recurring income or create an additional source of income for the long term.

What is the fastest way to earn money as a student?

Investing in cryptocurrencies, starting a digital marketing business, investing in real estate, or designing on-demand goods can earn you quick hard cash. Simply scrutinize your preferences and risk profile before choosing where to invest.

How can a college student start a business?

In the first place, brainstorm probable business ideas and shortlist profitable ventures. Next, think about the market you would be catering to and the investments required in the process. Once done, choose your business’s name, and design your website’s logo if needed. Start marketing your business as you continue to cater to your customers.

How can I use my business profits to make long-term savings?

Consider stacking some funds into your CD or high-yielding savings account for long-term financial growth. Educate yourself on developing a well-balanced asset portfolio. When you have saved enough, diversify your investments into real estate, bonds, stocks, mutual funds, retirement savings accounts, and various annuities.

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If you have been using Amazon Web Services (AWS) for a while, you are probably familiar with AWS reserved pricing. The concept is well-liked because of EC2-reserved instances. However, it applies to other AWS services as well. This guide walks you through some fantastic tips to save money using EC2. In addition, there are a bunch of other attractive ways that allow you to save significantly on reserved capacity purchases in AWS. What’s more, you will find some live examples and calculations and a series of steps to follow to save some bucks in EC2. Read on.

Hack 1: Pay for EC2 Using Your Amazon Credit Card

If you are a frequent shopper on Amazon, you probably have heard about Amazon credit cards. This giant online retailer offers different types of credit cards, including Amazon Prime Rewards, Amazon Rewards Visa Signature, Amazon Store Card, and Amazon Prime Store Card. If you have an Amazon Prime Rewards Visa card, you are eligible for 5% cashback for all purchases made through Amazon.com.

In addition, this card entitles you to 2% cashback at restaurants, drug stores, and gas stations and 1% cashback on other purchases. For Prime members, the card doesn’t involve any annual fee. Moreover, it features a welcome bonus – leveraging this, you can earn a $200 Amazon gift card upon approval. The card also allows you to transfer your balance. The APR varies from 18.49-26.49%.

Offered through Chase, this credit card allows you to save a sizable amount on your EC2 purchases. If you don’t have a Prime membership, you can consider Amazon Rewards Visa Signature card. It also allows you to save significantly for every purchase made through Amazon, including EC2 hosting. You can expect to enjoy a generous 3% cashback.

In addition, you can enjoy benefits like zero foreign transaction fees, specific travel benefits, and 2% cashback at restaurants, gas stations, and drug stores.

Besides the two mentioned above, you can also check the Amazon Store and Prime Store Cards to enjoy lucrative savings on your purchases from Amazon.

Hack 2: Leverage Reserved Pricing

To amplify the benefits and price-saving opportunities offered by Amazon credit cards, you can leverage AWS reserved pricing. However, before you go ahead and follow the trick, let’s take you through a detailed technical analysis of the concept so that you can make the most out of your purchase.

What Does AWS Reserved Pricing Refer To?

Reserved pricing is a simple strategy. If you agree to a one-year or three-year commitment for a specific AWS resource type, you can save up to 75% more than the default pricing alternative. While it’s a fantastic saving vehicle, there are a number of considerations associated.

The reserved pricing concept is available with AWS services like RedShift, EMR, RDS, etc. Though there are no official statistics from AWS about EC2, several reports state that  EC2 is the highest-spent area of AWS. Thus, if you can cut the EC2 costs, you are expected to reduce your holistic AWS bill.

Understanding the Payment Alternatives and Terms

With reserved pricing, you can buy compute capacity in one-year or three-year terms. The payment options you can expect to come across include the following –

• All upfront: A lump sum payment for the entire one or three-year period.
• Partial: A partial payment for one or three years and then switching to monthly payments.
• No upfront: Zero upfront payment with regular monthly charges for one or three years.

The more upfront payment you make, the greater savings you bag. The following chart may help you understand the difference better.

Note that you are less likely to experience a huge difference between the three alternatives. However, the amount may depend on the cost of the service, which, in turn, may raise the percentage of difference. Ideally, before making any substantial payment, you should compare it thoroughly with the no-upfront alternative.

In some cases, the ‘no upfront option’ may enable you to save an equal amount of money as the upfront alternative. As an added benefit, you won’t have to make a big hole in your pocket when the reserved period starts.

Identifying the Scope

Before you proceed with a reserved alternative, it’s crucial to figure out the scope of the reservations. They usually include the following alternatives.

• Availability zone: Here, you can access a specific discount applied to different instances under one specific availability zone. Here you can expect a guaranteed EC2 capacity, but you won’t have the flexibility to update the instance size.

• Regional: This alternative allows you to access discounts on any EC2 instance of an applicable instance family and operating systems under any availability zone within the AWS region. This alternative doesn’t involve any reserved capacity. Therefore, it will prioritize other buyers who have paid for reserved capacity in case of hardware shortages.

The following example will help you understand both cases or scopes better:

Suppose you have decided to buy an m5.xlarge Amazon Linux, regional scope. In this scenario, you are permitted to launch two m5.large instances using Amazon Linux.

You can achieve significant cost savings over the long term by applying the reserved discount on both instances, regardless of the availability zone. However, if you purchase a reservation with a specific availability zone scope, such as m5.xlarge in US-east-1B, it cannot be applied to other instances outside that zone. However, you may launch a new instance in the same zone if EC2 capacity is low in that region.

To simplify, choosing a regional scope that prioritizes flexibility over capacity and does not affect the cost is recommended. Unless critical capacity requirements exist, sticking to a regional scope offers more flexibility and helps reduce costs.

Offering Classes

In AWS, you will typically encounter two offering classes, including the following.

• Standard: This less flexible alternative requires you to commit to a particular EC2 instance type. Once you are done with the commitment, you cannot change the instance family. While you can change the instance size, it’s possible only for regional reservations and Linux instances.

• Convertible: This alternative is way more flexible than the standard one. It allows you to try various families and sizes. However, the convertible offer class makes you less likely to save money.

The offering classes generally strive to help you manage risk. While the convertible alternative allows you to reduce a portion of the risk by offering flexibility, the standard one lacks this parameter. However, the standard offering class is much more affordable than the convertible. In addition, it allows you to sell reserved capacity in the reserved instance marketplace.

The price differences between the convertible and standard alternatives typically start at around 10% or higher.

Why Is It Crucial to Choose the Appropriate AWS Region?

The amount of savings for EC2 reserved instances may vary depending on the AWS region you choose. Thus, you should exercise a little caution when executing the task. When choosing the region, you may consider the following factors.

Latency: Low network latency can substantially enhance the user experience. Therefore, always choose an AWS region close to the user base location.  This way, you may increase communication quality as the network packets need to travel through fewer exchange points.

Features: While every AWS region tends to have the same service level agreement, you can expect larger regions to launch newer features and services more frequently.

Compliance: If your data is bound by local regulations, you should check for regional compliance when choosing your AWS region.

Cost: AWS services feature different prices for different regions. Some regions have lower costs than others. Therefore, check thoroughly to enjoy a reduced cost for the same deployment.

You may find it complicated to evaluate all the said factors. However, it’s important for making an informed decision. Ideally, you need to allow your business priorities to influence your decision.

Does Reserved Pricing Pose Any Risk?

While the best-case scenarios with reserved pricing expose you to massive savings, there are trade-offs. The cost or benefit consideration associated with reserved pricing may include the following.

Inappropriate Provisioning 

You can alter your applications’ commute capacity and instance type when you walk with the default payment alternative for your EC2 instances. If your business adapts to any changes and you don’t find your current EC2 capacity adequate, you can add more instances or cut some of them. This provisioning is, however, not available with reserved pricing.

Therefore, you should always analyze system metrics before investing in reserved instances. This will help you choose the right instance type for your workload. Furthermore, you can consider the regional scope and increase the capacity gradually.

Cash Flow

For application owners, it’s crucial to understand how their applications relate to their business. Indeed, you will always find it lucrative to save up to 75% on your EC2 spending lucrative, but it’s important to note that a reserved purchase can make you spend thousands of dollars upfront. If you find this huge expenditure rational and value-generating because of tax or accounting reasons, go ahead!

On the other hand, if you have just started and are yet to develop solid finance, you may probably use your money on other essential areas like product development, testing, advertising, hiring, etc. As such, you should devise a perfect calculation before proceeding with the investment.

More Affordable Generations of EC2

EC2 keeps on introducing newer and better versions. However, you cannot switch to those upgraded versions if you have already committed to a one- or three-year reserved purchase. Moreover, you can miss the modified cost benefits. For example, the latest c5.large instance is 15% more affordable than its previous generation. However, those already invested in reserved purchases can’t leverage these cost benefits.

Considering this possibility, choosing a one-year reservation over a three-year reserved term is wise. Besides, if you find holding a particular reserved capacity useless, sell it out in the reserved instance marketplace. This alternative is available only with the standard offering class. Moreover, you must hold a US-based bank account to sell a reserved capacity in the reserved instance marketplace.

3 Vital Metrics to Consider When Committing to Reserved Purchases

Before you go ahead to commit a reserved purchase, it’s crucial to consider the following metrics.

The Recovery Span

This is a crucial metric to evaluate when committing to a reserved purchase. It lets you know how long you will have to wait before you enjoy seeing the savings you have grabbed by dodging the default pricing. In most cases, the span ranges from 8-12 months. However, it may vary depending on the payment alternative, your EC2 instance type, and the AWS region you have chosen.

Comparing On-Demand and Savings

You should always figure out the percentage and the amount you could save by investing in reserved purchases. You should compare the alternative with the default one to calculate the benefits.

Savings vs. Upfront Fee

The upfront payments for reserved purchases may have various degrees, including everything upfront, no upfront, or partial upfront. Before investing, you should carefully analyze which alternative will help you save the most in the long run.

Steps to Save With EC2

Now that you know the primary components and savings fundamentals of EC2, let’s help you figure out the ultimate strategy to save with EC2. All you need to do is follow the steps given below.

Step 1: Start With Relevant Data Collection

The entire saving methodology is dependent on this important pillar. Committing long-term to an EC2 instance type involves numerous variables. Therefore, you won’t be able to make the right decision without analyzing adequate data. The said data may include the following.

• System metrics: You can analyze and gather system metrics by executing detailed load tests. These tests will help you determine how your applications are expected to perform when they go live.
• Billing data: You can configure usage reports and AWS costs by scrutinizing the billing data. To execute the job, you can leverage the dedicated AWS cost explorer. Your calculation should include two primary considerations – how much you pay for EC2 every year and what EC2 instance type allows you to justify the cost.

Besides the above-mentioned metrics, you should also check the network usage, disc i-o, and throughput to ensure data relevance.

Step 2: Performance Optimization 

Here, you should configure auto-scaling to compute your baseline capacity. Autoscaling allows you to configure a fleet of EC2 instances, which may increase performance and reduce costs later. Once you are done with the autoscaling, you should monitor the system and customer experience metrics to ensure that you are not under/over-utilizing the EC2 instances.

Step 3: Calculation

This is the final step in the decision-making pyramid. Once you are sure your application has the right number, size, and family of EC2 instances, you can calculate the baseline cost and determine if you are investing in the right instances. Besides, figuring out the instance size and calculating the number of instances will enable you to choose the right scope, payment alternative, offering class, and duration. This way, you can make a rational decision that helps you save significantly.

To Sum Up

To save on Amazon EC2 hosting, you must be calculative and rational. You should start with getting the system and billing data and then move forward to analyzing the gathered data. Once done, you can apply performance optimization and verify if you have chosen the right EC2 instance type and number. Finally, you can calculate the baseline instance and choose the right EC2 alternative. This way, you may enjoy saving thousands on your Amazon EC2 hosting.

FAQs

Can you save money on Amazon EC2 hostings?

Amazon EC2 costs are variable, and you can enjoy saving significantly by implementing the right strategy. You can refer to AWS saving plans. Besides, you can switch to EC2 versions with updated pricing. Moreover, you can rightsize your workloads with the right instances to enjoy big savings. Finally, you can enjoy cashbacks on your purchase by paying using Amazon credit cards.

What is the downside of Amazon EC2?

EC2 comes with a default resource limit. This may vary from one AWS region to another. You can launch a specific number of instances per area. In such cases, you can miss out on hardware-level changes or upgrades, leading to poor performance.

How much does EC2 cost?

EC2 instances are available in different sizes and different pricing options. The sizes include micro, small, and medium. On the other hand, there is on-demand and reserved pricing. For detailed cost breakup, you can refer to the official website of AWS.

Will you lose data if you stop your EC2 instance?

Once you stop your EC2 instance, all information on the local hard drive will be lost. However, the data you store on your EBS volume will still be available. In fact, it will continue to persist in its availability zone.

How to schedule EC2 to save money?

AWS instance scheduler manages AWS EC2 scheduling. It usually works with the idea that you use only what you need and when you need it. The technology allows you to set a time of operation for a specific AWS EC2 instance which automatically spins up once the time expires. This helps you use EC2 in a cost-efficient manner.

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Over the last few years, many absurd investing success stories about cryptocurrency have popped up. You may have heard about folks who got rich from meme coins and random coins they invested in for fun.

Then, in 2022, the cryptocurrency market crashed. Luna was completely eliminated, and many altcoins went to being worth almost nothing with shocking losses.

Despite the recent losses in cryptocurrency, many still believe cryptocurrency is the future. Many Dogecoin fans are still attempting to prop up this meme coin. Also, we’re seeing cryptocurrencies like Bitcoin rebound slightly in 2023.

We will look at the cryptocurrency space to see what’s happening with Dogecoin, Polygon, and other coins.

Key Takeaways

• The cryptocurrency market suffered greatly in 2022, with many coins down over 70%.
• We looked through expert analysis to see the predictions for the prices of Dogecoin and Polygon—and the numbers are all over the place.
• Dogecoin continues to have the support of Elon Musk and a strong community of enthusiasts.

How’s Dogecoin Doing?

Only a few people will remember that Dogecoin started as a joke in 2013 by folks who didn’t believe cryptocurrency was the way of the future. The Dogecoin cryptocurrency was created purely as a parody, taking its name from the viral meme of the Shiba Inu dog. Unlike other forms of cryptocurrency, Dogecoin was never intended to have any real-world applicable utility.

Then the community surrounding the cryptocurrency created clever memes and pumped the coin up until others started to notice. Elon Musk came into the picture and became associated with the coin. Musk referred to Dogecoin as the “people’s crypto,” and he went as far as to announce at one point that Tesla would accept Dogecoin as payment.

For some reason, this coin has many dedicated fans who continue to hype it up. They’ve garnered a significant amount of positive press, largely thanks to public stunts associated with the coin, like sponsoring the Jamaican bobsled team at the 2014 Winter Olympics. Elon Musk mentioned the coin on SNL in 2021.

One issue with Dogecoin is there’s no limit on how many coins can be created, so this crypto could lose its value easily as the supply goes up.

Dogecoin is currently listed at $0.079, with an all-time high of roughly $0.70 in May 2021. As of April 25, 2023, Dogecoin is down 49.43% for the year. Dogecoin is currently ranked 8th of all cryptocurrencies based on market cap.

How’s MATIC Doing?

MATIC is the name of the native coin on the Polygon network, which lives on top of the Ethereum blockchain instead of using its own blockchain. As Ethereum became more popular, it became more expensive and slower to use. Polygon is a layer 2 solution, meaning it stays on top of another blockchain (Ethereum in this case).

MATIC suffered in 2022 because some experts felt that with the Ethereum merge, there wouldn’t be much use for a layer 2 project.

The goal of the Polygon network is to enable you to have many of the same features as the Ethereum network with a fraction of the fees. Even with Ethereum switching to the proof-of-stake mechanism in 2022, it looks like the fees on that network have yet to decrease to the levels of Polygon.

Ethereum enthusiasts were hopeful that the transaction fees would eventually come down. Polygon supporters, on the other hand, continued to argue the speed of Ethereum hadn’t changed. Many still rely on Polygon for scaling.

MATIC is currently listed at $0.98, with an all-time high of $2.92 on December 27, 2021. As of April 25, 2023, MATIC is down 27.81% year-over-year. MATIC is currently ranked 9th in the cryptocurrency space based on market cap.

What Are Current Price Predictions for Dogecoin and Polygon?

We looked through various analyst reports to see what experts are predicting for the future prices of Dogecoin and Polygon. The major difference between cryptocurrency and the stock market is that there aren’t as many mainstream analysts in the cryptocurrency space. It’s also difficult to find experts with a proven track record in the crypto arena.

What are the price predictions for Dogecoin?

The team at Coin Journal feels that Dogecoin could go above $1 in “the near future” if there’s enough bullish momentum in the coming months. They believe the coin could hit between $2 and $3 in 2030 if more merchants accept it as a form of payment and if a bull market were to kick it up a few notches.

Digital Coin Price predicts that Dogecoin could reach a maximum price of $0.18 in 2023. It also predicts a minimum price of $0.0711 for this year. By 2031, Digital Coin Price predicts Dogecoin will reach $1.

What are the price predictions for MATIC?

The team at Coin Journal published its price prediction that MATIC would reach $3.42 during 2023. They believe MATIC will reach $4.39 by 2024 and $34.74 by 2040.

Crypto Ticket published in 2022 that they believed the price of MATIC could reach $1 if the higher scalability with Ethereum led to more applications being moved over to the Polygon network. Indeed, the crypto did cross the $1 threshold several times in 2022. Recently, the price has been decreasing and has dropped 5.66% in the last month.

Digital Coin Price predicts that MATIC could reach a maximum price of $2.20 this year and a minimum price of $0.90. By 2025, Digital Coin Price predicts MATIC will reach a maximum price of $3.65 and a maximum of $10.48 by 2030.

The predictions for MATIC and Dogecoin vary quite a bit. It’s difficult to tell if there will be another bull market in the near future where the price of all cryptocurrencies goes up in tandem.

What You Need to Know About Cryptocurrency Price Predictions

It’s important to note that it’s challenging enough to predict the price of any cryptocurrency a week down the line, let alone years into the future. Price predictions from earlier in 2022 were much different than predictions at the end of the year, as the entire market dropped drastically.

Also, as we looked at cryptocurrency price predictions, we found many caveats and contingencies. There are many other factors at play here, including mass adoption, the global economy, and governmental regulation. We also can’t forget about the importance of another bull run.

Here’s what you need to know about the price of any type of cryptocurrency:

• Cryptocurrency isn’t independent of the overall macroeconomic situation. When the Fed raises rates, the stock market drops—and so does the crypto market.
• Many experts are just guessing. It’s rare to find an expert in this space with a decent track record.
• Nobody knows for sure what’s going to happen in the cryptocurrency space. This asset is so volatile and unpredictable that it’s a fool’s errand to try to make a prediction.

How Are The Key Altcoins Doing?

When looking at the cryptocurrency market, it’s only fair that we break down some of the key altcoins. These are all prices as of April 25, 2023, on CoinDesk.

Solana (SOL)

The price of Solana is currently $21.72, with an all-time high of $259.96 in November of 2021. SOL is down 78.51% for the year.

Avalanche (AVAX) 

The price of Avalanche is currently $17.72, with an all-time high of $144.96 in November of 2021. AVAX is down 75.56% for the year.

XRP (XRP)

The price of XRP is currently $0.47, with an all-time high of $3.40. XRP is down 32.42% for the year.

Polkadot (DOT)

The price of Polkadot is currently $5.99, with an all-time high of $54.35 in November 2021. DOT is down 66.91% for the year.

Binance Coin (BNB)

The price of Binance Coin is currently $336.68, with an all-time high of $686.31 in May 2021. BNB is down 17.04% for the year.

From some of the prices in this article, it should be clear many cryptos aren’t having a profitable year. While some hope this is the bottom, there’s no way to know. Many coins are down over 70% for the year.

However, you should also note the month-to-month price movements are slightly more optimistic. Avalanche, for example, is down about 75% for the year but has increased 7.63% in the past month. Similarly, Bitcoin is down approximately 30% year-over-year at the moment but up about 40% over the past six months.

How Should You Be Investing?

While investing in digital assets has become more popular over the last few years, it’s important to remember that these are still risky investments with extreme volatility. The cryptocurrency market is open 24 hours worldwide, so you never know when there will be some sort of a pump or a crash.

We’re living in a time of high inflation and lowered consumer spending. If you’re interested in investing in speculative assets like cryptocurrencies, you should be prepared to lose any money you invest. There’s no guarantee about anything these days.

The Bottom Line

It’s fair to say that waiting for a crypto pump is a bad financial move you can make, as there’s so much volatility in the space. As always, we suggest you only invest money you can afford to lose in risky assets because you don’t want to watch the money you worked hard for disappear.

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Whenever an ecommerce team wants to spark intentional, targeted revenue growth, they must choose between two distinct paths: broadening their target audience or deepening their investment in their current customers.

Each of these has its pros and cons, and often circumstantial factors can help a team decide which one to pursue. If your company is debating between investing in breadth versus depth with your ecommerce brand, here are a few thoughts to help guide your decision.

Focusing on a niche

The first way to grow your ecommerce revenue streams is by doubling down on what you already do well. If a company has found an eager audience that is loyal to its vision, message, and products, the simplest way to grow is to continue working with that same consumer base.

How to deepen offerings for existing customers

How do you cater to the same audience in ways that can grow revenue? If you answered “more products and services,” you’re part way there. But you can’t just create more things to sell in your online store. You must ensure your new offerings provide more value for your customers.

This requires an open mind, an innovative mindset, and plenty of research. For instance, you can discover new ways to generate value for existing customers by:

• Studying your competitors: This is one of the best ways to grow a business. Consider your competitor’s offerings and services. Look for key features and benefits. Read reviews, too, and consider which unique value propositions resonate with their customers.
• Ask for feedback: Your own customers are an excellent source of inspiration, too. They can provide insights not just on how to improve existing offerings. They can also shed light on how you can meet other needs.
• Engage with customers: Along with asking for direct feedback, you can also interact with customers in their own environments. Creating branded online communities, like a social media group, can help you learn about customers in an organic setting.

As you discover more needs from your existing customer base, you can begin to develop solutions. This requires more investment in R&D. It can also take time.

If you’re addressing a stubborn problem, you may have to come up with a never-seen-before solution. If you’re catering to a common issue, chances are there will be well-established competition.

When that’s the case, you need to go beyond mere solutions and ensure your product or service has a unique element that makes it superior to alternative options. You might offer a higher-quality version of a product or include a never-seen-before feature. You could also ensure a better customer experience or utilize bulk prices if your existing customers lump new offerings in with pre-existing purchases.

Case study: Dungarees hones in on its customers

Dungarees is a good example of this “depth” approach to revenue growth. The online and brick-and-mortar retailer sells work gear and operates with a single-minded mission: to exceed customer expectations at every point of the customer journey through impeccable service and genuine expertise.

Two entrepreneurial brothers built the Dungarees brand after working as contractors and realizing the limited selection of quality work gear. In response, the young men launched their own retail brand, beginning by reselling their favorite work apparel: Carhartt.

Being the first company to take the Carhartt brand to ecommerce, the Dungarees team emphasized the digital customer experience. They hired employees with hands-on knowledge of wearing and comparing work gear. This gave its customer service team targeted insights that could help customers make informed purchase decisions. The company also maintained competitive pricing and timely delivery.

To spark growth, the Dungarees team pushed deeper into their service to existing customers by expanding their brand selection. Over time, they added more high-quality household names to their ecommerce portfolio, including Timberland PRO, CAT, Ariat, and Wolverine Boots & Gear. The brand has added each of these products to its catalog with existing customer needs in mind.

Since its founding in 1999, Dungarees has become a brand that knows its target market inside and out. It specializes in meeting the needs of a very specific audience (those in need of premier workwear) and has focused every revenue expansion effort on improving its value with pre-established customers. The result is a base of loyal patrons that remain happy well past the point of sale and continue returning for more.

Expanding your audience

The other way to grow your ecommerce revenue streams is by finding more customers. In this case, you need to put less effort into expanding your product selection and more emphasis on market research and customer acquisition strategies.

As already mentioned above, acquiring more customers can be more expensive up-front. But cost isn’t the only deciding factor. If you’ve optimized current customer value, the best path to viable growth is through new customers. When that’s the case, investing in new markets and defining a larger target audience can pay off — if done well.

How to broaden revenue through new customers

Finding new customers starts with introspection. Consider your current product offerings. What are their features and benefits? Which problems do they address? What consumer pain points do they answer?

Now, consider what groups have these same or similar concerns or problems outside of your current customer base. You can do this in a few different ways, such as:

• Using competitor research: Once again, look to your competitors. This time, don’t focus on their offerings so much as their audience. Who are they catering to? How are they different from your existing customers?
• Working with influencers: Influencers come with a loyal crowd of followers. If they don’t overlap with your existing customer base, influencers can help you discover and reach new audiences that don’t yet realize you have a solution to their problems.

Expanding your audience doesn’t necessarily mean you won’t need to grow your offerings. On the contrary, as your customer demographics expand, you may find complementary products or entirely new services that you can offer.

However, if you want to expand the breadth of your customer base, you need to start with, well, the customer.

Case study: Amazon broadens from books to everything

The best example of the concept of expanding an ecommerce store via broadening the target market comes from the top of the online retailer pyramid. When Amazon started way back in July of 1994, the company only sold books. It even sported the slogan “Earth’s biggest bookstore” right on its logo.

At that early stage, the company was an unusual entity in a brick-and-mortar world with an owner that dreamed bigger. When it came to growing revenue, it didn’t take long before the future mega-ecommerce brand opted to look beyond its core audience.

By the late 1990s, the company was selling hundreds of millions of dollars every year in books. It had clearly maxed out its original audience, and owner Jeff Bezos began looking for other consumer needs that he could meet through his innovative online company. The company began using its book-selling infrastructure to ship everything from shoes to kitchen items to electronics and much more.

The company didn’t stop its revenue expansions with diversifying physical product offerings, either. In the early 2000s, the development team realized they could cash in on the technology it had built over the past half-decade by turning it into a web service, as well.

The rest of the story is common knowledge. Amazon remains the most diversified ecommerce seller to this day, with incredible revenue streams coming from Amazon sales as well as those selling on the platform or using its web services.

Breadth versus depth: which is right for your brand?

Both focusing on a niche and increasing the size of an audience can lead to impressive revenue growth. In either case, the essential element is choosing which one makes sense for your company at the moment and then implementing it with a strategy in place.

Take a look at your brand’s current offerings. Then consider your customer base. Does it make more sense to push into your area of expertise by expanding your products or services for your existing loyal customers? Or have you maximized the low-hanging fruit with your existing target market, and aiming to expand makes more sense?

Invest in making that first decision wisely. It will dictate where your time, energy, and resources go for a long time to come as you seek to build on your existing success by growing your ecommerce revenue streams.

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Procrastination and stress are the results of a messy financial life. Your financial security, independence, and peace of mind can increase when you simplify your finances.

In order to spend more time and energy on what truly matters in life, here are 26 tips for simplifying your financial life.

Like frosted tips and Beanie Babies, paper bills should be relegated to the 1990s.

By going paperless with your bills, you can reduce clutter around the house — and even save some trees All the companies that you do business with make it easy for you to opt for electronic billing. This includes banks, credit card companies, cable TV providers, cellphone companies, and insurance companies. As a result, they sometimes offer bonuses, gift certificates, sweepstakes prizes, and other incentives to customers who opt for paperless billing to save money on stationery and postage.

On the other hand, some companies charge you for paper statements. If you receive bills via snail mail, you could be paying between $2 and $10 for the unnecessary privilege.

If you would like to opt out of receiving paper statements, you can log into your online account and go to the settings menu. Instead of receiving paper bills, enter an email address where you’d like to receive e-bills. That’s all it takes, and if you ever need a hard copy, just print it out.

2. Automate your bills.

When possible, set up auto payments to simplify your finances. All of your monthly bills, from credit cards to utilities to insurance to loans, mortgages, and even rent, can be put on autopilot.

Moreover, late fees and late payments won’t be an issue. That might seem like a priority. However, late fees typically range between $25 and $50. In addition to increasing account balances, late fees can negatively affect consumers’ credit scores as well.

By entering your bank account information on the website of the service provider, you can often set up automatic payments for your bills.

What happens if a business does not offer automatic payments? In your checking account or via your bank’s mobile app, you can set up recurring payments.

3. Bank and retirement accounts should be consolidated.

Having one checking account and one savings account is sufficient for most people. It is a good idea to consolidate your various accounts into one checking account and one savings account if you have more. After all, do you really need 2 savings, 3 checking, and 4 separate retirement accounts? Your banking will be simplified without sacrificing service levels.

Similarly, retirement accounts are subject to the same rules. As a result of previous jobs with 401(k) plans, you may have several 401(k) plans you would like to roll over into a self-directed IRA account. Besides reducing paperwork, this will also eliminate account fees, and make managing your retirement assets more convenient.

4. Create a 50/30/20 budget.

The purpose of a budget is to show how you can spend your money from month to month. Creating a budget will help you keep your finances in check every month. You can also save money with a budget for your goals or emergency expenses.

Thankfully, you don’t have to create an overly complicated budget. Case in point, the 50/30/20 budget.

This simple budget rule, popularized by Senator Elizabeth Warren, is a great place to start for those just beginning to learn how to budget. The plan appeals to everyone who wants to pay their current bills, pay down debt, and start saving for the future at the same time.

Simply divide your income into these categories;

• 50% is spent on necessities
• 30% for wants
• 20% goes to debt repayment and savings

Another benefit? It’s flexible enough to allow you to use different variations to meet your specific needs. The 80/20 rule, for instance, can be tweaked for a stripped-down version. 80% of your income goes toward essentials and luxuries, while 20% is saved.

5. Redefine “enough.”

Do you have everything you need or want? Does your life have “enough”? As a society, we are taught to believe that we deserve more because we are socially persuaded that we need it. In order to keep a possession current, relevant, and functional, you need to upgrade or update it regularly.

It’s assumed that the more you spend, the more comfortable you are. But are you really comfortable? Is it enough for you?

You can keep yourself sane by defining enough for yourself on a financial, physical, psychological, and moral level. Forget what everyone else thinks is “enough.” Stop keeping up with the Kardashians.

Repeat after me. You are enough.

6. Combine your insurance.

A single insurance company can provide you with both home and auto insurance, which can save you time and money.

“It’s easier to review your policies with one insurer and see at a glance if your limits and deductibles are appropriate for your needs,” Penny Gusner, consumer analyst at Insurance.com, told Kiplinger. Esurance, Progressive, and Safeco, for example, impose only one deductible for claims involving both your car and home if a storm results in a tree falling and damaging both.

According to Insurance.com, customers save 11.4% off the auto premium when they bundle their auto and home insurance together (9.6% if they bundle their auto and condo insurance, and 5% if they bundle their auto and renters insurance). There is usually a split between the two policies when it comes to the overall discount.

Bundling two or more policies, like life insurance or coverage for an RV, motorcycle, or boat, can result in a bigger discount. Insurers may partner with one another to offer bundled discounts and coverage they don’t underwrite. It’s important to keep in mind that bundling doesn’t always result in savings, so you should look for policies separately as well as bundled.

7. Maintain a one-in-one-out policy.

When you follow this policy, you will be able to control your spending, borrow (if possible) before you buy, and put an emphasis on experiences rather than possessions.

As an example, you need to get rid of one shirt when you purchase a new shirt. If you want to control your consumption habits, this rule of thumb is helpful. You should donate your old jacket if you purchase a new one. Try borrowing an occasional or seasonal tool instead of buying it if you need to buy a new one.

8. Knock down debt.

Eliminating high-interest debt is one of the best ways to reduce financial stress.

If you pay off even one large credit card or loan, it can ease your worries, as well as reduce your monthly financial obligations. Furthermore, you can use the money you would otherwise spend on debt to pay off additional debt or take that dream vacation.

Paying off debt can be accomplished by using a debt snowball or debt avalanche strategy.

By using the debt snowball method, you list your debts by size and then pay the minimum on any debt with the smallest balance while paying extra on the rest. You start with the smallest debt, then move on to the next. Your life can become simpler, and you may feel accomplished if you are able to pay off your debts in full.

In the debt avalanche method, you prioritize debts by interest rate, then pay extra money for the debt with the highest interest rate first, after which you pay the minimum on the remaining debts. As soon as that debt is paid off, you put extra money toward the next-highest debt. Using this method may take more time, but over time you will pay less interest on your loans.

9.  Reduce your credit card usage to just one.

Credit cards are one of the best ways to earn rewards and take advantage of zero-interest rate promotions. As soon as the rewards and zero interest disappear, though, the cards are worthless.

Focus on one credit card for credit scoring purposes, but keep them open for other purposes. Put away the rest of them and choose the one that offers you the most benefits. A single credit card makes managing spending and payments much easier than five or ten.

10.  Expenses should be paid annually or semiannually.

While some bills are recurring, you can eliminate some by paying them annually or semiannually.

Paying bills such as car and homeowner’s insurance every six months or once a year is an option. It is likely that you will qualify for a discount for setting up this kind of payment method.

With just two bills, you will have two fewer monthly payments to worry about.

It is likely that you will have to adjust your monthly and annual budgets in order to accomplish this. Even so, it’s always a good idea to review and adjust your budget.

Additionally, if you pay in advance for your home and car insurance, you will receive a discount. Most insurance companies offer discounts that range from 6% to 14% if you pay in full instead of breaking your bill up into monthly payments. By spreading out your payments, you will also avoid paying a monthly finance or service fee that some companies charge.

11. You can reclaim your time by unplugging.

As you know, getting rid of cable and your landline will save you money. In response, a growing number of people are streaming TV shows directly from television networks online and subscribing to more affordable services like Hulu or Netflix.

When you watch only a few shows anyway, or want to cut down on TV time, this is the way to go. In addition, landlines are becoming increasingly irrelevant as people use their smartphones to communicate and entertain themselves.

Consider this question: Which services aren’t necessary? By cutting the cord, you’ll be able to reclaim your time, while saving some money.

12. Hide your emergency fund.

Savings and checking accounts are typically held at the same bank. This may work for rotating savings goals like that expensive smartphone you’ve been eyeing or your vacation. However, it won’t help your emergency fund.

Emergency funds should not be easily accessible. Whenever you log into your online banking, you don’t want to see that large sum tempting you to use it “just once” for a non-emergency.

Don’t put it at your bank; put it elsewhere. An online bank or taxable brokerage account may offer money market accounts or high-interest savings accounts. In an ideal world, it would earn maximum interest while being available whenever needed.

Despite the rule that you should consolidate your accounts, your emergency fund is the exception. Don’t forget it, but keep it out of sight and mind.

13. Put your savings on autopilot.

Saving money can be highly effective when you set it and forget it. It’s convenient because you never have to remember to transfer money from your checking account to your savings account. In addition, you won’t have a chance to spend the money before it disappears from your checking account.

Setting up a recurring transfer from your checking account to your savings account each month — perhaps the day after your paycheck clears — is the easiest way to automate savings in just a few minutes.

It can be worth automating this task even if you are only able to handle a small amount each month. Regardless of what happens, your savings will accumulate over time since you will save every month.

14. Instead of investing in individual stocks, invest in funds

You can get rich investing in individual stocks, but it’s complicated too. Each stock in your portfolio needs research, purchase, tracking, and selling. In fact, the more you own, the more this resembles a part-time job.

If you invest in mutual funds or exchange-traded funds, you will avoid all that hassle. Actively managed funds rarely outperform index funds since they are very rarely diversified across asset classes. The tax return process for funds is also much simpler. It can also be costly to prepare taxes for individual stocks, since they require a lot of tax-related documentation.

15. Don’t spend money you don’t have.

This might sound harsh. Buying now, paying later and 12-month financing are scams. As The Motley Fool points out, BNPL can lead to overspending on items people could not afford otherwise if they had to pay upfront.

For some people, this can lead to excessive debt. Close to a third of BNPL users had difficulty making payments, resulting in them skipping a bill to avoid defaulting on their plans, according to the Consumer Financial Protection Bureau (CFPB). One in four Americans (22%) who use BNPL regrets their decision immediately and wishes they hadn’t signed up, as a result.

What’s the best way to get something you can’t afford right now? Save.

As you save and wait, you can research all of your purchasing options and find the best deal. As a result, I either discover a better alternative or realize that I don’t actually need the item.

16. Go used.

Don’t be afraid to buy used cars. New, fancy cars are often associated with prosperity, so this is a tough one for many people. Getting rid of your car as an object of status is a very liberating experience.

In addition to the money you’ll save on monthly payments, you’ll also save money on the cost of premium gas, repair and maintenance parts, and insurance premiums.

17. Streamline lifestyle practices.

What is the origin of your food? Do you gag at the smell of commercial cleaning products? Are you reusing and repurposing items, or do you toss them out?

Life should be made easier by convenience. The result is that you end up wasting money and damaging the environment as well as your own health by replacing products frequently. Get back to life basics by growing your own food and making your own cleaning products, for instance. In the end, you’ll be able to provide for your family in a way that’s rewarding and fulfilling, and it won’t take you much time.

18. Spend only with cash or debit cards.

Whether you’re looking for cash back or travel rewards, credit cards have tons of perks to offer. At the same time, credit cards provide plenty of temptation to overspend. According to USA Today, over 60% of credit card holders experience this issue. As a result, these cardholders are unable to pay off their credit card debt on time with their normal income, which leads to interest charges and increasing balances.

Putting your credit cards away in a drawer and spending only the money you have is the best way to pay off your credit card debt each month. For spending and budgeting, you could use the envelope system. Alternatively, you could set up a checking account for discretionary spending and use your debit card only.

19. Set fewer goals.

Having financial goals can be a great thing. Most of us plan to buy a home, pay for our children’s college, and retire. When you set too many goals at once, you can lose focus, and you won’t make any progress.

Focusing on just a few objectives at a time can be more effective. In order to achieve your retirement goals, you should start saving early. The sooner you start saving, the easier it will be.

Saving for a down payment on a house, paying off your credit card debt, or putting money aside to help pay for your children’s college may also be goals.

Your best chance of making progress may come from focusing your attention on just one or two specific goals. Best of all? After you achieve your first goal, you’ll likely be inspired to set and accomplish new ones.

20. Focus on what brings in the most income.

Multiple streams of income sound great in theory. But pursuing too many income streams can actually complicate matters. To me, having one primary and one secondary source at the same time is the best strategy.

As an example, let’s say you work a demanding full-time job, run a blog, dabble with freelancing, and drive for Lyft on the weekends. Decide which of these side hustles best fits your lifestyle, and focus on it. It is likely that you will achieve more success if you simplify your financial life.

21. Reduce the number of subscriptions.

There’s no denying the popularity of subscription boxes right now. The monthly subscription is like receiving a present every month, and who doesn’t like receiving gifts?

But, here’s the catch. This is an impulse purchase disguised as a box. Most people don’t return the items, so they make it easy for you to do so.

Keeping something you don’t need is easier than sending it back. So, while it may seem like a small amount, that $12 here and $25 there quickly adds up to an entire closet full of stuff we don’t actually need.

Don’t stop there, though. If you rarely use any subscription or service, cancel it. This could be a streaming service you never watch or that gym membership you never use. By removing them, you’ll simplify your life and save money. And, it is easier to manage your finances if you have fewer payments to make.

Thanks to tools like Trim, Rocket Money, and the Bobby App can can these subscriptions for you.

22. Don’t go big, go small.

Relocate or downsize if housing expenses are causing financial stress for you. After all, it might be possible to improve your financial situation by taking a similar job in a less expensive area. In general, if your total housing expenses, including rent or mortgage, insurance, taxes, maintenance, and utilities, exceed 40 percent of your income, then you may be in financial hardship.

Also, it’s easy to overbuy a house with credit if we leverage it to purchase a home. Buying a larger home means paying a higher mortgage, insurance, utility, and maintenance costs. Moreover, you’ll have to fill it with more junk.

Take a look at a smaller vehicle as another example.

Even though this is a big move, you may not need something that big if you own a large car or SUV. Besides being more expensive, it uses more gas, is harder to maintain, and is more difficult to park.

If you have a family, you don’t need to go tiny. But try to find the smallest car that your family can comfortably fit in.

23. Invest automatically.

In the process of paying off your high-interest debt, you might start thinking more about investing to build wealth. But what should you invest in?

Getting help from friends and family might not be as easy as you think. It is possible that they will tell you to invest in stocks or real estate, but not how to choose a fund or allocate your assets.

If you’re willing to accept algorithmic advice, anyone can now get free investment advice as well as automated investments and portfolio rebalancing. A robo-advisor may seem scary to novice investors, but the fact is that robo-advisors know more about investing than you do.

You should find a robo-advisor that fits your budget and wealth. Many offer free options, and all automate your investments.

24. Start a fitness plan.

Don’t mistake me for saying you need to join a gym. Exercise builds up over time. So, each step you take, every walk you take, every sit-up you do contributes to your overall well-being.

Furthermore, physical health contributes to financial health. With a clearer, more mindful outlook, you’ll make better decisions, stay healthier (with fewer medical bills), and make better decisions.

“One study showed that medical reasons may account for two-thirds of bankruptcies in the U.S. Even if that stat is skewed, we all know that medical costs can be really tough for the average family to handle,” Kate Underwood wrote in a previous Due article. “Keeping yourself healthy can prevent a ton of extra costs.”

25. Pay someone else.

Making money sometimes requires spending money. You can save a lot of money in the long run by hiring a professional in a few areas of life. In the case of real estate or a side business, or if you have a lot of assets, a good accountant is invaluable. Ultimately, a good financial planner can help you create a budget, an investing plan, and a plan to deal with your student loans.

You might consider hiring an electrician, plumber, or professional organizer to assist you with home repairs and decluttering, depending on your situation.

26. Say no sometimes.

Whenever someone asks you to do something that is not in line with your values, priorities, or time constraints, say no! Ultimately, it’s up to you how you spend your time and money.

However, if you say no to something, it doesn’t necessarily mean it’s for life. It could simply mean ‘not today.’ Keep in mind that every time you say ‘yes’ to one thing, you’re also saying ‘no’ to another. Think about what’s most important to you at the moment.

FAQs

Why simplify your financial life?

Being intentional with your money begins with decluttering and simplifying. You should also be more mindful of what you consume.

When you declutter and simplify your home, you’re likely to be motivated to buy fewer items. This will help you maintain a clutter-free home. The more you buy, the more money you save, the more debt you pay off, and the more money you spend on purpose.

You can also keep track of what you have and find things more easily when you clear the clutter. If you avoid buying duplicate items or replacing things you cannot locate, you will save money.

As you simplify, you are able to spend your money more wisely. It also reduces financial stress by giving you a greater sense of control over your finances.

What are the benefits of clear financial life goals?

Oftentimes, people feel rudderless when their financial life goals are unclear, which leads to feelings of insecurity, anxiety, and scattered thinking, especially when planning for retirement.

Changing your mind through goal-setting is proven to change your brain. Furthermore, when highly motivated to achieve something, you begin to perceive obstacles as less important. The science also suggests you’re more likely to succeed if you keep regular track of your progress.

Are you ever done saving?

Simply put, no.

Expenses such as home maintenance, vacations, and special occasions gifts should be easily covered by your savings account from time to time, but not unexpectedly.

As well as regular savings, you need to pay off debt and replace your car’s tires in case of an emergency. Despite knowing these things will happen at some point, you should still prepare for them even though they may not happen at the right time.

What is the best way to evolve your financial strategy as your needs change?

There is no guarantee that everything will go according to plan, even with the best planning. It is natural for your life stage, preferences, and needs to change. Your financial plan should change when they do.

At one moment, you prepare to launch your children into adulthood at another. Then you’re taking care of your aging parents. As your journey evolves, your financial plan must adapt as well.

In order to avoid decisions that would jeopardize your most important previous or new goals, you can repeat scenarios that you conducted early in your planning. The best financial plans and processes adapt to you, not the other way around.

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You didn’t start your company to lose money. However, you don’t want just to break even, either. Ideally, you want the healthiest possible profit margin. And that one way to do that is by growing your revenue streams.

As a refresher, revenue is the cash coming into the business. Typically indicated at the top of your organization’s income statement, revenue is highly variable. Some years it might be up; some years, it might be down. Ideally, you want your revenue to be as strong as possible to offset variable expenses.

Of course, boosting your revenue usually doesn’t happen without a little tinkering. Sure, you might get lucky and enjoy an unexpected spike now and then. But you can’t bank on luck. Instead, you need to put some measures in place to nudge your revenue higher and higher.

1. Reignite former customers.

Chances are good that you have information on your past customers. These were people you spent money to acquire and who spent money on your brand. Rather than accepting that they’re gone for good, why not take steps to reignite their interest?

For instance, think about all the customers who have come back, filled a digital shopping cart, and left. According to Retention.com, seven out of 10 buyers fall into this category. Your objective should be to use the data you already have about them to encourage them to reconsider. You might send texts, emails, or even DMs as reminders. Or, you could try a retargeting campaign.

Although you won’t recapture everyone who leaves, you’ll bring some back into the fold. As a result, your revenue will be stronger than it would have been. Plus, you’ll have the chance to renew your relationship with these “boomerang” buyers.

2. Increase your line of products or services.

Many companies striving for a revenue bump invest in the expansion of their products or services. The trick to making this work is to be sure that the new offerings are relevant. For example, an e-store selling winter recreational merchandise to adult consumers wouldn’t want to add wedding gowns to its lineup. The disconnect would be too vast.

On the other hand, that same company might want to consider adding pet outdoor winter gear and supplies. Many people take their dogs (and some cats) with them on hikes, trails, and other excursions. Consequently, offering customers the chance to keep their four-legged companions comfortable could make sense.

Be certain to conduct research, and don’t just follow your gut instincts if you take this revenue-upping route. You’ll be spending money upfront, after all, and you want to lower your risk as much as possible. The easiest way to do that is to do your homework and expand deliberately.

3. Reduce sales friction points.

A typical sales funnel is inverted for a reason. As leads move deeper down the funnel, some start to trickle out. This is natural, normal, and expected. Nevertheless, it’s not giving your revenue much of a jumpstart.

Sit down with your team and walk through all the customer journeys that make up your sales funnel. Cross-reference those journeys with data. Where do you see areas of major lead drop-off? Those are gaps — and if you fix them, you should see a corresponding spike in bottom-of-funnel conversions.

If you’re not sure how to correct a friction point, consider working with a marketing expert. It’s worth spending money to do things the right way the first time. If you’d rather do everything in-house, make small changes that can be tested in real-time. Don’t attempt to remedy all your gaps at once, because you might not know which strategy is serving up results.

4. Work harder on cross-sells and upsells.

Consumers who have had a good experience statistically spend 140% more in purchases than their dissatisfied counterparts. They won’t automatically know what else to consider buying from your online store or catalog, though. You have to help them by introducing them to items through cross-selling and upselling techniques.

A cross-sell is the sale of something compatible with what a customer’s buying. For instance, a consumer who buys a sofa may want a chair, an ottoman, a side table, or a floor lamp. An upsell is the sale of something more expensive than the customer originally selected. Adding extra cheese or sautéed mushrooms to a burger for a fee is an example of an upsell.

The good news is that there’s a lot of software available to help you automate cross-selling and upselling. The software — usually augmented by predictive AI and ML technologies — can “fetch” cross-sell and upsell options. When done well, cross-selling and upselling can significantly impact your revenue rates.

5. Consider a subscription model.

Another way to give your company a bit of dependable income is through subscriptions. Just about any product or service could have a subscription element. That’s why the average person pays $200+ in monthly subscriptions. The key is making sure that your subscription holds enough value for consumers to keep paying.

Part of the reason that subscriptions produce profits is that most consumers set them and forget them. People rarely use their subscriptions the way they think they will. That’s why no one cancels their gym memberships in February even though they’ve stopped going since mid-January!

You can get as creative as you want with your subscription. Anything goes. Who would have assumed that clothing into a subscriber’s delight? Or that people would want to have men’s grooming products delivered? StitchFix and Harry’s Razors, that’s who. Therefore, be open to trying something out of the ordinary.

6. Explore a different audience.

Chances are strong that you haven’t fully tapped into all the audiences who might be interested in your brand. These could be niche offshoots of your regular audience or a completely different audience than you’ve sold to before. Being able to conquer yet another target market can give new life to your revenue.

Unsure how to come up with new-to-you audiences? Conducting some social listening can be a good way to start. Find out what your customers are saying about your product online. Then, find out what they’re saying about your competitors’ products. You may unearth some hidden audiences that you’ve never marketed to.

Lucky Charms experienced this when the brand realized it wasn’t marketing to a huge segment of buyers. It turns out, adults like the fun marshmallows almost as much as kids do! This is why Lucky Charms has been making its ads more adult-friendly for a decade. No doubt its revenue reflects its sweet revelation.

7. Improve your brand presence.

People can’t give you their hard-earned money if they don’t know you exist. Putting a push on your outbound content marketing and publicity messaging can put your company name in front of consumers. The more common your brand becomes, the more synonymous it will be with the products or services you offer.

A rapid way to establish your brand presence and reputation is through social media. Staying active on the social media sites preferred by your target buyers should give you a little steam. You’ll just need to make sure you’re posting and commenting regularly. Social media is about engagement, not just sales. The more give and take you provide, the more buzz you’ll build.

You can amplify your social media presence through influencer marketing and paid advertising. Used in tandem with organic content deployment, influencer marketing, and ads will strengthen your credibility. Ultimately, you’ll get a nice lift that should carry over into your sales.

8. Adjust your pricing.

Your price points will affect your revenue. Even if you’re wary about moving your price up or down, take it into consideration. Never assume that you’ll lose customers if you move the needle up, either. Many customers who like what you offer won’t have a problem paying a little more. As noted by The New York Times, consumers rarely jump ship as long as your price raise doesn’t go overboard.

One caveat, however: Be careful about raising prices without warning, especially if you have regular customers. A customer who buys from you once a week or month will notice a price hike faster than one who buys occasionally. Giving notice that your prices will go up shows customers you’re thinking of their needs. Additionally, it makes them feel like you’re not trying to pull a fast one.

Still, feeling uncomfortable at going higher? Give your best shoppers a chance to continue buying at the same low rate for a limited time. Or, keep prices the same for items that are purchased in multiple quantities.

Your company’s revenue is a line item that you have more control over than you may have thought. If you want to see it rise, take action now. With some changes, you could be revenue rich and more profitable than you thought possible.

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Many people are more mobile and moving today thanks to the benefits of technology and working remotely. People nearing retirement age are also looking for new places to call home. A recent study by Blacktower Financial Management Group analyzed the best and worst states for retirees. This article will break down these states one by one.

The Best and Worst States To Retire In

If you’re planning to retire now or in the near future, there are many factors to consider. For example, you should pay off big expenses, take stock of your investments to update your retirement plan, and educate yourself about Medicare and social security benefits. You may also want to move to a new place and need to work on repairing your credit before purchasing a home you can live in during retirement.

Blacktower Financial Management Group’s recent study generated an index of all 50 states and shared the results on the best and worst states to live in to simplify the retirement process. To calculate the index, they normalized different data categories individually from 0 to 1 and then summed the results. The study looked at crime, cost of living, % of the population over 65, property prices, and life expectancy.

Now that you know how the study was generated, let’s jump into the 10 best and 10 worst states for retirees!

10 Best States to Retire In

1. Florida

The Sunshine State takes the top spot as the best place for retirees. Approximately 25.6% of Florida’s population is over the age of 65, which means that retirees won’t find themselves crowded out by younger groups. Florida’s low cost of living, average home price of $252,309, and higher life expectancy are also what bring it to the top of the list.

Additionally, Florida is perfect for working retirees or those running a business on the side, with its low effective tax rate and leading position in business innovation and growth.

2. Minnesota

The Midwestern state of Minnesota arrived at number two on the list. The state has low crime, a low cost of living, and a high life expectancy. Lower living costs can make it easier to create your retirement plan and stick to it.

3. Iowa

Iowa’s cost of living index came in at 91.9, and the crime index was almost comparable to Minnesota’s at 293.4. What makes Iowa so desirable for retirees is the low cost of living and an average home price of $154,727. Furthermore, Iowa’s life expectancy is higher than Florida’s, with an average age of 79.7.

4. Ohio

Ohio boasts a low crime index, a low cost of living, and a comparable percentage of the population over the age of 65 at 22.3%. Ohio’s home prices were also similar to Iowa’s, with an average home costing only $153,593 and an average cost of homeowners insurance of $1265 per year, 5% less than the national average. Ohio’s driving costs, like car insurance, are also 33% less than the national average, making Ohio a very affordable place to retire.

5. Texas

Of the top 10 states, Texas had the lowest percentage of the population in their retirement age, with only 16.8% being over 65. Texas’ average home prices split the difference between more expensive states in the top 10, like Florida, and less expensive states, like Iowa and Ohio. However, Texas homes are among the largest in the country.

6. Wisconsin

Wisconsin boasted a life expectancy of 80 years, comparable home prices to other top 10 contenders, and a low cost of living index of 96.4 points. Wisconsin also demonstrated a high percentage of the population over 65 at 22.0%.

7. Nebraska

Nebraska’s low cost of living and average home price ($178,938) were key to the state making the top ten. Nebraska also had a low crime index of 305.9. Finally, Nebraska’s life expectancy came quite close to Wisconsin’s at 79.8.

8. Pennsylvania

Pennsylvania demonstrated above-average marks across the board but was notable for having a fairly low average cost for homes at $178,938. Pennsylvania also had a slightly higher-than-average crime and cost of living index. Finally, the percentage of the population over 65 was 23.7%.

9. Illinois

Illinois had the highest crime rate index of any top 10 states at 438.8. However, Illinois home prices resembled others in the top 10 at $204,839. Illinois was similarly situated compared to other states in the top 10.

10. Idaho

Rounding out the top 10 best states to retire to is Idaho. Idaho was a popular destination during the Covid-19 pandemic because of its low cost of living. It remains a great place for retirees because of its low crime and average life expectancy.

10 Worst States To Retire In

1. Alaska

The worst state to retire in was Alaska. Alaska’s crime index was 829, and only 15.8% of its population was over 65. Alaska also had a high average home cost of $300,073.

2. Hawaii

Although the average life expectancy was 81.3, Hawaii’s average home cost of $642,526 and a high cost of living index (191.8) make it one of the worst states to live in after retiring.

3. Nevada

Nevada faced a high crime index of 555.9, a high average home price of $309.730, and a lower life expectancy of 78.1. Although the state has a favorable tax climate, higher home costs can make it harder to save for retirement and make those savings last.

4. New Mexico

Facing similar crime index problems as Alaska, New Mexico had a crime index of 783.5, a cost of living index of 88.2, and a below-average life expectancy of 78.4.

5. Tennessee

Tennessee also displayed a higher crime index of 651.5. Another issue the state faced was a low life expectancy of 76.3. Although it was near the bottom of the list, Tennessee home prices were fair, averaging $192,630.

6. Alabama

Alabama faced a low life expectancy of 75.4 and a higher crime index (524.2). One promising aspect of Alabama was its low average cost of a home at $143,072. If you’re concerned about life expectancy and want to make sure your spouse and children are provided for in the event of the worst happening, consider whether a life insurance plan for couples is right for you and your family.

7. Louisiana

Louisiana faced a similar high crime index as the other top 10 worst places to live. It also had a low average life expectancy of 75.7. Additionally, only 20.1% of its population is over 65, so it’s more suitable for younger generations.

8. Maryland

Maryland’s high crime index is one of the reasons it’s placed at #8 of the worst states to retire in. It also had a low life expectancy of 78.8 and a high cost of living index at 127.6

9. Arkansas

Arkansas had a lower-than-average life expectancy of 76.0 and a higher crime index of 554.9. However, low housing costs and a lower cost of living helped keep it from the absolute bottom.

10. Montana

Montana displayed similar problems to others in the top ten worst places to live. It had a higher crime index, a higher cost of living than Nevada and Hawaii, and a higher average home cost of $288,867.

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Biden has always pretended to pay attention to rebuilding the lop-sided economy of the United States. He has always stuck to the idea of redesigning economic practices to make them worthy for ordinary Americans. Instead of developing a top-down economy pyramid, Biden claims to turn it bottom-up and middle-out, which reflects in the new budget. According to the President, if the middle class does well, the poor will have a ladder up, and the rich will be able to uplift their financial flourishment.

Biden also says that the economy of the United States could be grown healthily by creating well-paying jobs and lowering costs by promoting workers and investing in people.  The President also claims that he wants to reform the tax code to reward work instead of wealth.

However, from the point of reality, Is Biden’s new budget and wage-class welfare truly working? Will they cater to the middle class, or is it another hit on the pocket? How should you prepare for the newly proposed policies? This post answers everything involved!

Prelude

Biden’s first trial to achieve a noteworthy economic victory was the American Rescue Plan Act (2021). This $1.9 trillion coronavirus rescue package aimed to drive the United States to recover from the post-pandemic economic and health turbulence. It’s said to be a part of his Build Back Better Plan, including the American Families Plan and American Jobs Plan. However, the plans couldn’t pass Congress, and some were covered by the Inflation Reduction Act (2022).

Presently, the United States is combating the pandemic and Ukraine war-induced inflation. Though the reported record high in inflation (2022) has declined significantly, high-priced goods and services are still squeezing the wellness of the country’s economy.

Joe Biden’s Updated Policy Goals

The Biden government has proposed to:

• Increase the minimum hourly wage to $15
• Release Covid-19 relief
• Forgive student loan debt and offer free college education for people earning less than $1,25,000/year.
• Design Affordable Care Act and offer 97% of US citizens health insurance coverage.
• Increase the tax revenue (up to an additional amount of $4 trillion) by raising the top tax rate to 39.6%. The capital gains will be taxed at regular rates while the corporate tax rate will rise to 28%.

Understanding the American Rescue Plan and Its Effect on Middle Class

This Covid-19 stimulus plan was introduced on 14th January 2021 and came into effect on 11th March 2021. The plan promised a $1400 stimulus check, a vaccine rollout, extended unemployment benefits, etc. The plan features several primary elements. They include the following.

1. Taxes

The American Rescue Plan proposed to raise approximately $4 trillion in additional revenue over ten years. Households making over $1,70,000 will bear most of the proposed tax increment burden. In contrast, the top 1% will bear a significant tax load in the next quarters.

The changes that kicked in include but are not limited to the following:

• An increased top income rate of 39.6% (2.6% high than the previous rate)
• A closure in the step-up-in-basis loophole
• An elevated corporate tax income of 28%
• Implementation of Social Security Payroll tax for people earning more than $400k a year
• A 15% tax implementation on the record income of giant organizations

2. Direct Aid

This part of ARP is worth $1 trillion. It proposes to include $1400 checks sent to individuals earning less than $75,000 (separate filers – single or married) and $1,50,000 (joint filers). These checks were designed to supplement the previously mailed-out $600 checks.

Furthermore, the direct aid part included additional funding for eviction, emergency rent, emergency assistance for homeless people, mortgage assistance, etc. However, presently the evictions and foreclosures have expired. The rental and mortgage payments are still available. In addition, under direct aid, there is a childcare and food program.

3. Cyber Security Updation

When modifying the economy, Biden realized the importance of safeguarding digital assets and data. Thus, he proposed allocating $9 billion to modernize and secure Federal Information Technology. However, Congress approved around $2 billion.

4. Health Insurance

Biden’s healthcare initiatives proposed the expansion of Obama Care to insure 97% of Americans. The total cost will be $750 billion in the next ten years. Biden wanted to launch a public health insurance alternative like Medicare which doesn’t require any premium, and people who don’t have Medicaid can also access it.

5. Student Loan

Biden wanted to make education free for everyone earning less than $125,000. He wanted to fund this plan by repealing the high-income tax cut in the Coronavirus Aid Relief and Economic Security Act (Cares). In addition, Biden also proposed to forgive all student loans from 1st January 2021 to 31st December 2025.

6. Improve America’s Manufacturing and Technological Strength

Though this is not a technical element of ARP, Biden proposed a $700 billion plan in 2020 to elevate America’s manufacturing and technological strength. This included spending $400 billion on US goods and services and $300 billion on research and development.

7. Rural America

To help rural communities that account for 20% of the US population, Biden proposed an investment of $20 billion. The areas include agricultural research, rural broadband infrastructure, farming, health services, medical training programs, etc.

8. Local Community Support

Biden’s plan aims to help governments with revenue shortfalls by keeping frontline public workers on the job. In addition, it will have small business grants and loans. Besides, $20 billion will be allocated to public transit agencies.

9. Infrastructure and Climate

Biden has planned to spend $1.3 trillion for infrastructural development over the next ten years. This will include road repairs, highway and bridge modifications, clean energy research and innovation, electric car battery technology advancement, and transit projects to serve high-poverty areas.

The 2023 Biden Budget

After ARP, the Biden government came up with the 2023 budget. The Biden administration released the budget request on 28th March, which called for $5.8 trillion in federal spending and a $1.2 trillion deficit. In addition, it includes $1.6 trillion in discretionary spending. The key takeaways of the new budget include the following.

1. Deficit Reduction

The Biden administration has appealed to moderate democrats in response to their negotiation on broader social spending. It has proposed to reduce deficit spending by $1 trillion in the next 10 years.

2. Climate Initiatives

The climate initiative proposal of the 2023 federal budget proposed to back $6.5 billion in loans to rural electricity providers. This initiative aims to promote clean energy, support energy storage, and increase the department’s funding for renewable energy development by 150%. In addition, there is a proposal to allocate $5 million for climate adaptation.

3. Health Proposals

The budget has requested a grant of $5 billion. The amount will include investment in cancer and other breakthrough treatment research. Besides, it has proposed an investment of $3.5 billion in mental health treatment.

The Biden administration has proposed to expand enforcement of existing laws requiring insurers to grant equal coverage for mental care as they do for physical care. The government has also asked the US Department of Education to employ more mental health professionals in academic institutions.

4. Domestic Manufacturing

The budget request features an allocation of $372 million for the National Institute of Standards and Technology’s (NIST) manufacturing programs. This initiative is expected to expand domestic manufacturing and remove supply chain issues. However, the budget proposal does not include new funding for the Ukraine war or Covid 19. It features a deficit-neutral reserve fund that will pay for upcoming fiscal plans, though.

How Biden’s Budget Is Expected to Affect the American Middle Class?

Biden’s campaign’s cornerstone was making the middle class racially inclusive. He says that America hasn’t been built by CEOs, Wall Street bankers, or hedge fund managers. The American middle class developed the country’s economy and society. Research suggests that in 2018, 52% of American adults fell in the middle-income group. Their annual household income was 2/3rds to double the national median ($48,500 – $1,45,500).

Compared with other advanced economies, America houses a proportionally smaller middle class. However, despite the Biden administration’s efforts, the country’s middle-class population has failed to find relief. The income disparity in the different middle-class groups is gradually increasing. Only 20% of the middle-income group in the country has managed to recover from the recession, while the remaining 80% is still struggling to achieve financial freedom.

1. Questionable Credits

While the wage class of the United States was expecting the new budget to help cut down poverty and increase disposable income, the true picture conveys an opposite message. Biden claimed credit for the COVID-19 vaccine and the post-pandemic employment surge, but both were largely attributable to former President Trump’s policies. Biden’s plans couldn’t bring any significant positive changes for the middle-class people. They still need to struggle to secure their financial future.

2. Unfulfilled Commitments

The proposed budget claims that more jobs will be created with the expansion in the manufacturing sector. This will further boost worker employment. In addition, they will be entitled to justified pay and conditions. While Biden expects the initiative to cover the job losses after the pandemic, there are wrenching disconnects in his promises and actions. Using clever wordplay, the Biden administration has expanded the definition of “infrastructure” to encompass many areas.

However, in Washington, “infrastructure” has long been synonymous with “pork,” referring to funds dispersed without a clear definition for political gain. These funds often create temporary, low-skilled jobs, as the Biden administration has emphasized in their push for overall employment numbers.

Typically, local construction firms benefit from this type of spending. What sets the Biden initiative apart is its inclusion of “electric and electronic pork,” which essentially benefits his allies in the tech and alternative energy industries by building networks and energy systems to support their businesses. As a result, even social media giants may reap the benefits and become part of the “middle-class family.”

3. Adverse Effects of Elevated Taxes

Raising taxes to the levels proposed by Biden has previously reduced federal revenues and destroyed private-sector jobs. With many small businesses struggling after the pandemic, these tax increases could severely blow the American job market.

Moreover, the considerable expenditure he envisages will likely propel America’s debt beyond 100% of total GDP, a historical high that may create room for defaulting on American debt. The exponential rise in inflation due to this mounting debt will not permit a stimulus package with zero interest rates similar to that of the Obama era.

Consequently, it would necessitate a substantial hike in interest rates, potentially leading to a market collapse and surging unemployment.

How Middle Class Should Prepare to Adapt to the Biden Budget

Overall, Biden’s spending plans are highly perilous. They appear to be an unrestrained shopping spree throughout the progressive marketplace, which is expected to have a disastrous outcome. The much-touted “Biden Boom” could transform into the “Biden Bust.” There are no chunks of relief on taxes or cost of living, which can elevate the financial burden of the middle class.

Given this scenario, the wage class of the United States should start planning their finances wisely. To manage a shift in the proportion of expenses, it’s important to have a more adaptable investment portfolio. The investments should have the potential to be liquidated to pay off a loan, fund a part of the education cost, or be used as collateral for a low-interest loan.

Furthermore, middle-class households should start optimizing the use of physical assets, which include cars and jewelry, and everything acquired through income. This way, they can equip themselves with an anti-inflation shield, which, in turn, may help the wage class adapt to the proposed Biden Budget.

Frequently Asked Questions

Here are answers to some frequently asked questions about Biden’s approach to combat recession and inflation.

1. What is in the US government budget for 2023?

The United States Federal Budget for 2023 includes several key elements. They include $5.8 trillion in federal spending, a $1.2 trillion deficit, and discretionary spending of $1.6 trillion.  In addition, the budget focuses on job creation and infrastructure progress.

2. What does America spend the most money on?

The US federal budget usually spends on social security, healthcare, income security, education, and training. Besides, the economy invests in employment, veteran benefits, social services, and defense. On the other hand, the primary revenue sources include payroll and income taxes.

3. How much is the federal government’s support for health programs and services?

The federal government’s provision of support for health programs and services comes in the form of direct spending on programs and services and tax expenditures. In fiscal year (FY) 2023, the federal government allocated $1.9 trillion out of $6.4 trillion in net federal outlays for domestic and global health programs and services, which represents approximately 29% of the total amount,

4. How is the congressional budget set?

Usually, Congress leverages a ‘budget allocation’ to decide how much money the government should spend and collect in taxes.  This plan may also have special instructions called “reconciliation instructions.” The instructions can make budget alteration easier.

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Featured Image Credit: Photo by Karolina Grabowska; Pexels; Thank you!

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Natural gas is a commonly used energy source around the world. Thousands of people are employed in its supply chain, helping with drilling and extracting natural gas, treating it, and transporting it to commercial and industrial consumers.

In this article, we’ll discuss what natural gas is, explore its supply chain in greater detail, and cover some current events and recent discussions related to it. We’ll also offer tips for people interested in investing in this sector.

Key takeaways:

• Natural gas is produced over millions of years by the slow breakdown of organic matter as its pressed and heated under sand and sediment.
• Natural gas is primarily composed of methane, though it often needs to be processed when it’s first drilled from underground due to the presence of non-hydrocarbon compounds like sulfur and helium.
• The future performance of natural gas companies will be affected by socio-political events like war, government sanctions, and green energy initiatives.

What is Natural Gas, and How Do We Get It?

Formation

Natural gas is a non-renewable resource that consumers can burn to generate heat, electricity, or cook food. Formed by the anaerobic decomposition of organic matter, methane is the primary component of natural gas, but it also contains small amounts of carbon dioxide, nitrogen, and various other gases.

Imagine marine plants and animals dying millions of years ago and being buried on the ocean floor. Over time, the build-up of sand and silt pushes their remains deeper into the Earth, exposing them to higher temperatures and increased pressure. This combination eventually breaks down carbon bonds in organic matter, producing thermogenic methane (natural gas).

Extraction

Natural gas is found underground in formations like sandstone beds and coal seams. Like petroleum, natural gas can flow freely to wells because of natural underground pressures pushing the gas through rock. Petroleum reservoirs often contain natural gas too, and drillers often find the gas (because it’s lighter) on top of the oil.

The extraction process for natural gas involves pumping into a well bore to bring oil and gas to the surface. Drillers intentionally try to fracture rock to facilitate gas flow through the reservoir.

Studies from the last ten years have shown 75% of the world’s natural gas deposits are in the Middle East, Europe, and the former U.S.S.R. That leaves a relatively small amount of natural gas in the United States, but it is still a significant industry and employs thousands of Americans yearly.

Processing

Natural gas companies typically transport their product through pipelines. These pipelines carry natural gas to processing plants where water vapor and nonhydrocarbon elements are separated from methane. It doesn’t always need to be processed if the natural gas harvested is not especially “wet” (mixed with elements besides methane).

Processed natural gas (which usually contains trace amounts of other elements) is called “dry natural gas” and can be delivered through pipelines to underground storage fields or distribution companies before being sent to consumers. Natural gas is naturally odorless, so chemicals called odorants are added to natural gas so consumers and workers can detect leaks.

Transportation

Liquefied natural gas (LNG) is natural gas that has been cooled to -260 degrees Fahrenheit to reach a liquid state. Because liquids are more compact than gases, LNG takes up only 1/600 of the space it does as a gas. This allows for easy transportation around the globe to places without access to natural gas pipelines.

Once LNG has arrived at its destination, regasification facilities will heat the gas until it returns to a gaseous state. The company can then deliver the gas to consumers’ homes through local pipelines.

Unlike other fossil fuels, natural gas burns cleanly and produces less toxic air pollutants and carbon dioxide. Carbon dioxide emissions from natural gas (per unit of energy produced) are roughly 40% lower than coal and 20% lower than oil. This gives natural gas a reputation as a relatively safe and efficient energy source.

However, there’s disagreement over the benefits of using natural gas and whether they’re outweighed by methane released into the atmosphere during processing and transportation.

Flaring

Flaring is the process of burning natural gas and is a common by-product of oil extraction. Many oil and gas value chain workers defend flaring as necessary for safety and economic reasons. Drilling creates pressure and gas build-ups which flaring helps offset. It’s also not profitable for companies to bring as much natural gas as possible to market.

However, many others criticize the process of flaring as polluting and wasteful. Viable markets are necessary for companies to invest in capturing and processing excess natural gas. Until then, flaring remains a controversial step in many oil and gas operations.

Whereas flaring involves burning natural gas at a production well, venting is another process drillers use to eliminate excess natural gas. Venting involves the direct release of natural gas into the atmosphere, and though it’s typically in small amounts, it’s still considered damaging to the environment.

American Natural Gas Market

Natural gas now accounts for roughly a quarter of global electricity generation. In the U.S. in 2023, analysts measured the natural gas industry’s market size (by revenue) to be over $200 billion. Natural gas represents a potential investment for many people. Because it is slightly more environmentally friendly than other thermal energy sources like coal, climate change legislation passed in the coming years may affect natural gas less.

Because natural gas is an energy source used by so many people, regardless of the state of the economy, it’s a relatively stable sector during a recession. Whereas increased interest rates and decreased spending power can chip away significantly at something like an entertainment company’s revenue, an energy company will usually not see profits fall by too much in an inflationary environment.

If you’re interested in exposing your portfolio to natural gas companies, you can invest in an exchange-traded fund (ETF), buy a futures contract, or invest in individual natural gas companies on an exchange. Major oil and gas stocks typically offer investors high dividends, making these stocks even more attractive to potential investors.

Socio-political Events Affecting Natural Gas

Like all other energy sectors, current socio-political events can significantly impact companies’ performances. It’s not just climate change legislation affecting the outlook of energy companies.

The Nord Stream Incident

In September 2022, a series of bombings and subsequent gas leaks occurred on the Nord Stream 1 and 2 pipelines. The pipelines were designed to transport natural gas from Russia to Germany across the Baltic Sea.

Before the bombings, the Nord Stream pipelines had been filled with natural gas — but were not operational due to disagreements between Russia and the European Union. In 2021, Europe relied on Russia for over 40% of its gas, and the sudden choke in the supply chain caused energy prices to skyrocket.

In the background of this event were Russia’s invasion of Ukraine and the U.S. threatening sanctions on any country that helped Russia finish the construction of the Nord Stream pipelines. Though it remains unknown who was responsible for the attacks on the pipelines, the event shows the effect current events can have on natural gas prices.

The U.S. tied Qatar in 2022 as the world’s largest LNG exporter. The incident benefited companies specializing in solar, hydroelectric, wind, and biomass energy sources.

U.S. Investment in Natural Gas

Another effect of the Ukraine War and the increase in LNG prices was further investment in home energy sources. The U.S. plans to build some liquefied natural gas terminals along the Gulf Coast;  this would mangify the number of exports the U.S. could make.

While this news is not necessarily good for those worried about the U.S. meeting certain fossil fuel emissions thresholds, it suggests the landscape of the American natural gas industry may change significantly in future years.

The Future of the Industry

It’s challenging to know what direction the natural gas sector will go. People may consider switching energy sources if there’s an extended energy crisis. As climate change legislation targets thermal energy sources with more sizable carbon footprints, natural gas demand may continue to grow in the coming years since people still want reliable energy sources to heat their homes and cook with.

The Inflation Reduction Act, signed into law by President Biden this August of 2022, allocated $369 billion towards fighting climate change by creating and developing green energy. We’ll have to wait to see how companies specializing in green energy respond to increased funding and good press. If demand continues to grow, there’s a chance their market share will cut into that of natural gas companies. Only time will tell.

Final words

When you say natural gas, most people immediately think of the small blue flames on their gas burners in the kitchen. Natural gas is a non-renewable energy source made over millions of years through the breakdown of organic material. The process of harvesting and processing it is complex and involves a certain amount of environmental harm through the release of methane.

As the energy world changes around us — with factors ranging from energy crises abroad to green energy initiatives here in the U.S. — demand for natural gas will likely continue to grow in the coming decades. As an investor, you may be interested in companies that either process LNG or ship it globally.

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When prices surge across various sectors of the economy, you’ll start hearing analysts talk about inflation. Inflation is the devaluation of currency over time, meaning as goods and services become more expensive, the buying power of your money decreases.

People will often first notice inflation by realizing that something they buy regularly is more expensive than usual—maybe your grocery store or gas pump receipt is higher than expected. But not all prices rise at the same rate, and some consumers may find they aren’t spending any more than they were a year ago.

This begs the question: how is inflation measured? While it seems like a straightforward question, calculating inflation is complicated. The economy is vast and complex; not everyone is interested in the same goods and services.

To understand how inflation is measured, we must closely understand the consumer price index.

Key takeaways

• Inflation refers to an overall increase in the price of goods and services within the economy.
• Changes in a price index, such as the CPI, measure inflation.
• Other price indices, such as the PCE and core inflation, help address some of the shortfalls of relying solely on the CPI.

What is Inflation?

Inflation is a reflection of the overall change in prices throughout the economy. Inflation refers to a general price increase, while deflation is a general price decrease.

Don’t mix these terms up with stagflation, which refers to a specific scenario in which both inflation and unemployment are high. Stagflation is tricky for the Fed since raising interest rates to combat inflation may lead to further unemployment.

Analysts calculate inflation by observing the price changes in a basket of goods and services. This basket usually contains a large number of items that most Americans buy in their daily lives, such as gas, groceries, and medical supplies. Data collectors record the prices of these items every month to determine whether they have fallen or risen overall.

Typically, inflation reports are released each month. Inflation figures can be volatile from one month to the next, particularly if you hone in on an individual good or service. Thus, these reports show 12-month changes as well to give a more complete picture of the overall price trends.

Measures of Inflation

While the U.S. Consumer Price Index (CPI) is the most well-known measure of inflation, several other measures attempt to capture price changes. Each of these measures can be useful for different consumers and businesses.

Consumer Price Index

The Bureau of Labor Statistics (BLS) is responsible for the CPI. The CPI captures the price change consumers pay for goods and services over time.

The CPI figure most consumers hear in the news reflects the entire basket of goods and services. However, indices are also available by geographic area and for specific verticals of goods and services.

The CPI weighs each item in its basket according to how much the average American spends on said item. In other words, goods and services that make up a lower percentage of Americans’ spending have a more negligible impact on the CPI. The BLS uses the Consumer Expenditure Surveys (CE) program to revise each item’s importance within the basket of goods and services.

Items enter the CPI sample through a process called initiation. A CPI data collector goes to a store and selects an item from a pre-selected category. For example, they may choose a box of cereal available in two sizes. Data must be collected on how many people buy each size to determine their purchase probability. Then, the data collector will randomly choose one of the sizes and track its price every month.

Items naturally rotate out of the CPI basket every four years. The BLS records the prices of roughly 80,000 items each month, divided between eight groups, including:

• Food and beverages
• Housing
• Apparel
• Transportation
• Medical Care
• Recreation
• Education and communication
• Other goods and services

Personal Consumption Expenditures Price Index

Another popular inflation measure is the Personal Consumption Expenditures (PCE) price index. While not as widely known as the CPI, the core PCE (meaning it excludes food and energy) price index is important because the Federal Reserve uses it when setting monetary policy. The Bureau of Economic Analysis develops this measure.

Like the CPI, the PCE price index comprises a basket of goods and services, but the relative weights of different categories are very different in some cases. Here are some of the critical differences.

CPI reports from 2022 gave shelter a “relative importance” (the percentage of money dedicated by consumers to this category) of roughly 34%. In comparison, the PCE weighed shelter during the same period at around 16%. Similarly, in 2015, the BEA reported that it weighed the importance of medical costs at 22%, while the CPI gave it a relative importance of 8.4%.

According to the Brookings Institute, one reason for the difference in weights for medical costs is that the PCE price index includes all consumption items. For healthcare, the PCE captures costs like premiums and deductibles in addition to expenses covered by employer-sponsored health insurance and Medicare. The CPI, on the other hand, only captures direct costs to consumers.

The result of these different weights is that they affect their indices differently. For instance, changes in healthcare costs will significantly impact the PCE, while changes in housing prices will affect the CPI more.

Plenty of articles argue whether CPI or PCE is the better index. The PCE has a reputation for being less volatile than the CPI. But others prefer the CPI as they think it better represents inflation’s impact on consumer spending.

Core Inflation

Core inflation can use any number of indices, such as the CPI or PCE, as its base. It then omits certain items every month, such as gasoline and food prices; these items can be volatile and are only sometimes representative of overall price trends.

As expected, removing the most volatile items from the inflation measure does present a more consistent picture of inflation. However, core inflation can still be skewed in some cases.

To help understand why, we can compare core CPI to the Cleveland Fed’s trimmed-mean CPI. While the core CPI excludes the same items every time it is measured, the trimmed-mean CPI removes whichever goods and services are the most volatile in a given month.

One can surmise why the trimmed-mean CPI’s approach would lead to more predictable results. For instance, one-off events such as natural disasters could cause a sudden and unexpected surge in the price of ordinarily stable items. Adjusting for those events every month means the trimmed-mean CPI will represent the overall price trends more.

Why are There so Many Ways to Measure Inflation?

When we hear news reports about inflation figures, we usually hear CPI data from the BLS. But as should be clear to you now, the CPI is not perfect. In reality, no measure of inflation is entirely accurate, and focusing solely on the CPI does not give us the whole story.

At the same time, different people will care more about price changes in different parts of the economy. For example, railroad companies will be less concerned about the price of a gallon of milk and more about the cost of diesel fuel.

Likewise, consumers living in Chicago will be more concerned about inflation numbers for their city than about inflation in Los Angeles. These nuances mean multiple indices are needed to paint a complete picture of inflation.

Limitations of the CPI

The Consumer Price Index is limited in what it can tell us and its accuracy. When looking at the CPI, remember that it isn’t telling you the actual prices of items around the country. You won’t be able to look at the report and determine whether eggs are cheaper in Montana or Oklahoma, only where the price of eggs increased faster.

The CPI is also not applicable to all population groups. The CPI-U, for example, records prices for items sold in urban populations. The elderly buy different things than teenagers, so a rising overall inflation rate may not reflect a price increase for items you’re buying.

The CPI should not be used to determine living costs around the country. The BLS calls the CPI a “conditional cost-of-living measure” because it does not reflect expenses taken on through different social and environmental factors (including taxes).

There will always be sampling errors and non-sampling errors related to data collection. Consider looking through more than one index to understand general price trends in the U.S.

Final Words

Inflation represents a general increase in prices for goods and services across an economy. Analysts measure inflation by looking at price fluctuations within an index. The most well-known price index is the CPI, which the BLS releases as a monthly report. There are other measures of inflation, such as the PCE price index and core inflation. These measures help address issues with the CPI. For instance, they sometimes remove highly volatile items or weigh swing-prone items differently.

Measuring inflation is a complicated task, meaning a single measure of inflation can be skewed or fail to represent certain regions or industries. Having multiple measures of inflation helps paint a complete picture and addresses the nuances of a complex national economy.

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Jim Cramer’s approach has always been practical and positive about financial freedom after retirement. He runs the CNBC investing club, which helps people make worthy investment decisions to amplify their money. In addition, Cramer is the co-founder and chairperson of TheStreet.

Born to creative parents, Cramer has always been appreciated for his unique ability to provide logical financial suggestions. Do you know what Cramer says about early retirement? This post unveils the secret – keep reading and learn the mysteries involved!

Cramer’s Take on Early Retirement

Jim Cramer published a book called ‘Real Money’ in 2005. On page number 66 of the said book, Cramer said — “the age-specific investment approach is your best option.” These lines reflect how crucial it was for Cramer to save for retirement. He believes everyone should start saving for retirement as early as possible.
Cramer started his career with the Tallasahi Democrat. In 1977, he got his first steady paycheck. However, when he left Talasahi, he passed through tough times. He was living in his car when he used to work as a reporter in Los Angeles. Impressively, dodging that adverse financial situation, Cramer managed to put $1500 away for his retirement.

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Software developer pay spans a notoriously wide range, but few would argue that U.S.-based development costs are “cheap.”

According to a U.S. News & World Report analysis, the median U.S. software developer earned $120,730 in 2021. Experienced devs can easily command $200,000 per year in cash compensation alone, with incentive pay and company benefits adding significantly to that total.

You most likely know this already. You also most likely know that complex software development projects take months and involve multiple developers and engineers. “Cost spiral” doesn’t begin to describe the situation.

You don’t need to be reminded how important it is to cut DevOps costs wherever possible. Your bosses and shareholders (perhaps one and the same) remind you enough.

Fortunately, emerging technologies and tools are making it easier than ever to reduce software development expenses without compromising output, efficiency, or quality. It’s no exaggeration to say that these new capabilities are revolutionizing software development and helping DevOps teams save money across the board.

Let’s take a closer look at four types of emerging capabilities: next-generation project management tools, cloud computing services, task automation tools, and ephemeral development environments. Each offers potentially game-changing opportunities for teams looking to work faster, smarter, and more efficiently.

Using next-generation project management tools to drive software development efficiency and collaboration

Signs of bad project management include missed deadlines, poor quality control, and infighting within teams that need to collaborate closely. These and other direct results of poor project management are harmful to the broader organization (and to the careers of those responsible for them).

Yet poor project management has a direct financial cost as well. This goes back to what we’ve already discussed: the high cost of labor in a product development environment and, specifically, the very high cost of labor in a software development context. Every day that passes without an anticipated deliverable is a day that brings unanticipated costs. And while every project budget has some built-in wiggle room, said costs eventually become unacceptable.

The good news is that software development teams can turn to an already-existing library of scalable, easy-to-use project management tools that easily map to DevOps use cases. Your team may already use some basic project management tools to manage workflows and keep track of deliverables, timeframes, and responsibilities. Still, if you haven’t surveyed the landscape and assessed individual tools’ capabilities relative to your team’s needs, you’re likely not maximizing their potential.

Look for project management tools with the following capabilities:

• Use cases specifically designed for your specific development framework. For example, Jira’s project management tool is specifically tailored to Agile development teams.
• Relevant integrations with third-party apps, from general-purpose tools like Google Docs (where your spreadsheets likely live already) to DevOps, cloud storage, and even CRM software.
• Sophisticated calendar views that enable visual-oriented team members to “see” their project responsibilities at a glance.
• Powerful developer APIs that allow you to customize the project management interface to your needs and produce efficiency-oriented outputs.

Ideally, your team relies on one core project management tool to manage everything it’s working on together, with individual developers free to use additional tools to manage their personal workflows.

That may require you to cut out a less optimal tool (or several) and disrupt legacy use cases, but it’s better to rip off the Band-Aid now before a bona fide productivity crisis hits. Further down the road, untangling competing and deeply entrenched workflows will surely prove more costly and more disruptive.

Leveraging cloud computing services for projects with multiple stakeholders

Like project management software, cloud computing services no longer count as revolutionary. If your team is small, it might use GSuite for cloud-based storage and collaboration. If it’s larger, it might use Microsoft Azure or Amazon Web Services (whose incomprehensible value only underscores the critical importance of cloud computing).

And so you’re already aware that cloud computing services make development more efficient by enhancing collaboration, reducing duplication of effort, and sharply cutting reliance on onsite database hosting, file storage, and data processing.

Your team can and should use cloud computing services in additional ways that even more directly improve DevOps efficiency and cost control:

• Containerization: Containerization enables software deployment on any computing infrastructure. Bundling app code and file libraries in a self-contained, platform-agnostic unit eliminate the need to match platform-specific software packages (i.e., Windows-compatible) with the correct machines. Containerized deployment is more portable, more scalable, and more resilient — and it’s only possible in the cloud.
• Microservices (vs. monolithic architecture): Microservices break up the development architecture into many small, agile units that communicate via API. Rather than an inflexible “monolith” that needs to be reworked as it scales, microservices can be scaled internally (or new ones created) as needs arise. Like containerization, it’s a much more flexible, agile, and ultimately low-cost way to manage complex DevOps workflows.

Automating repetitive tasks throughout the development lifecycle

Task and workflow automation tools are improving at an incredible clip, and the advantages of next-generation automation are particularly impressive for DevOps teams. As just one example, telecom giant Ericsson drove significant cost savings by automating key aspects of their software development pipeline and transitioning to a continuous deployment model, according to a study published in Empirical Software Engineering.

Transitioning to continuous deployment is a time- and cost-intensive process that may not be practical for smaller teams, at least not in the near term. But your team can leverage task automation in many other ways.

Testing automation deserves special mention here. Automated testing and QA solutions like Robot Framework and Zephyr (respectively) reduce the need for repetitive, labor-intensive poking and prodding by human devs whose efforts are better spent elsewhere. By finding bugs and quality issues earlier in the development workflow, they also reduce the need for costly and time-consuming fixes further along in the process.

Increasingly, code generation itself is automated, thanks to tools like Eclipse. These generative tools will only improve as processing power increases and training sets expand. Consequently, this sets the stage for a near-future scenario where devs will need to manually write far less code. That, in turn, will allow DevOps teams to stretch dev resources further. Additionally, it will free up person-hours for more creative or problem-focused work.

Utilizing ephemeral environments to improve development speed and quality

Finally, software development teams can achieve efficiency and cost improvements at virtually any scale by utilizing ephemeral environments. These are temporary staging environments that can be created at will, generally for a single-purpose feature test or bug fix, and then eliminated when no longer needed to keep costs low.

Ephemeral environments offer clear advantages for development teams. They reduce pull request backlogs, a notorious sticking point (and cost driver) for larger teams. They’re isolated, which reduces the risk of bug-inducing branch conflicts. They’re fully automated, which frees up engineers to deal with more important matters. And because they enable more targeted, granular testing, they speed up the development process overall. They also reduce the risk of an unacceptable issue breaching the main code branch. Repairs on the main code branch are much more time-consuming and costly.

The result is a faster, more efficient workflow that scales with your team in response to demand. For example, Uffizzi’s on-demand ephemeral environment tool helped Spotify add 20% more features to every release of its popular Backstage developer portal platform. Backstage grew rapidly after initial open-sourcing in 2020 and now averages some 400 active pull requests per month. The transition to ephemeral environments slashed average pull request completion times across the platform.

Ephemeral environments can also help smaller development teams achieve the same economies of scale as larger teams. For example, moving to a continuous deployment model might seem out of reach for small teams under the old “bottlenecked” shared environment framework. Start by streamlining this process and freeing up department resources for longer-term strategic work. Ephemeral environments (and other process automation tools) make such shifts possible.

It’s no accident that Uffizzi’s out-of-the-box ephemeral environment solution supercharges the continuous integration/delivery process.

Opportunities abound now, with more to come

Change is already here for software teams accustomed to the old way of doing things. These four emerging or expanding technologies and tools —

• Next-generation project management software
• Expansive and flexible cloud computing services
• Increasingly intelligent and capable task automation tools
• Scalable, on-demand ephemeral environments for better testing and QA

— are making life easier and development faster for DevOps departments around the world. Their capabilities and use cases will only expand as time goes on.

These four technologies aren’t the only emerging opportunities for software developers and the companies that employ them, however. Around-the-bend and over-the-horizon capabilities could change the tech industry in even more fundamental ways:

• AI-driven platforms for developers, like TensorFlow, that promise to dramatically speed up development timeframes and allow teams to do much more with much less
• Infrastructure as Code (IaC) capabilities that break down silos between DevOps teams and the rest of an organization and create trusted, reliable code frameworks that ultimately reduce developer and maintainer workloads
• Low- and no-code application development, which — while possibly overhyped in the short term — could further break down barriers and enable faster, more collaborative action
• Augmented reality tools and apps, whose potential impact remains speculative but which will likely play an increasingly important role in software and product development over the next decade

Final Thoughts

In the coming years, odds are you’ll integrate all four of these capabilities into your DevOps workflows by then. You’ll most likely take advantage of other emerging technologies and tools in the near future too. These may even include some we don’t yet know about. As the pace of innovation accelerates, staying one step ahead of the competition — and doing right by your firm’s stakeholders, financially and otherwise — means watching closely for new tech that can speed up your development timelines and reduce overall DevOps costs.

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