Affordability Archives - MoneyWatch101

The Solution to Money Problems is Solved by Not Spending

What’s going all you great readers today we have a post that is going to challenge some of you and possibly motivate others to do a spend freeze, so strap on for the fun ride. The secret thats not really a secret in the personal finance world, is how much money is wasted from spending excessively by people who appear to be in control of their money. In reality they are far from controlling those elusive dollars, who appear to slip down the imaginary financial black hole. The solution to money problems is solved by not spending.

If you can control and manage the consumption of things, services, foods, resources, whatever it may be, you can become stress free with life’s finances. The concept is really not that hard, and closing up the purses and wallets might be a wonderful solution for many who currently experience money issues.

The real question I wanted an answer for today by writing this post, is to find out how much do we as Americans spend per day and what day of the week is the most spend thrift day? After finding the info I wanted to share it with all of you so you can compare and contrast dollar amounts.

The Data was found and It is hint, hint – Saturday as the most costly day for non necessities at – $76 dollars per person * Last Saturday I spent less than this amount for non necessities and that makes me content.

The Data about total consumer spending is a bit harder to find, but one website said that is around $94 Dollars is the average total per day. My average per day is less than this because I go on various spending freezes.

I came across this cool Time article that gives us a real time info graphic of how much is spent in America per second and after 100 seconds,it showed the unabashed way we spend millions per second. After seeing the figures below, Do you still think Amazon doesn’t make a profit? (I doubt it)

Every 100 Seconds we Spend – $900,000 Online – $9,200,000 Off Line = around $10 Million Dollars

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The Minimum Wage Debate

The minimum wage debate

Hey you do you think the minimum wage amount should be raised? If yes is your answer or no is your answer, let’s have the minimum wage debate today. The current minimum wage in my state is 8.25 cents an hour, or 330 dollars per week, or 1320 per month. This is the amount prior to taking out federal and state taxes. I don’t know about you but 330 dollars a week doesn’t go far to support anyone in 2015.

From my research the average rent in my area for a 1 bedroom apartment is 850 – 1200 dollars per month. Now can someone making 1320 per month successfully pay for shelter, including food, utilities, and transportation costs? Unfortunately it is impossible for many people who oppose raising the minimum wage to do a simple budget. Thanks to a coworker I got a flyer from the national low income housing coalition, and it states a housing wage should be 25.17 per hour as the minimum in order to afford a two bedroom fair market rent in NJ. I can add and subtract with ease, and if you take 25.17 -8.25 = 16.92. That is how much we are off per hour for someone making minimum wage to afford a two bedroom rent.

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Memorial Day Weekend Frugal Activities

Hello friends it’s memorial day weekend finally. This spring weather has been the worse that I have seen in a long time. It’s been rainy and cold all the way up until now in the Northeast area. How has it been in your neck of the woods? I am definitely looking forward to better weather going forward and why not since the beaches are now finally open.

I wanted to share with you guys a few Memorial day weekend frugal activities you can do this weekend and for the many other weekends going forward. Summer time should be a fun time for people to get out and connect with others, so put those cell phones down once in a while. I crack up when I go somewhere and people are sitting having lunch together and staring at their cell phones. I have also seen when I go to the park, two people walking side by side and they are both using cell phones. If they are not checking a love note from an old flame then I do not see the point. Hopefully you’re not one of those people.

Memorial Day Weekend Frugal Activities:

– Itching to see a movie- Hit up matinees
– Need some new clothes- Search online for 30-40% off retail deals.
– Footwear looking stale- Search for bogo deals in your area.
– Going on date- Have a picnic and Pack fruit with champagne.
– Feeling stressed- Go to Groupon, Google offers, Amazon offers for first time deals on Massages.
– Need more retail therapy- Search for old gift cards you can finally use.
– Feeling lonely- Call up some friends /family members and host a potluck dinner.
– Feeling tired of TV- Set aside 30 min everyday this weekend to run or workout.

These are a few fun frugal ideas you can do this weekend. Sometimes you can just have fun by spending under $50 bucks doing the activities above and avoid spending 200 dollars at a bar.

Comment on what you think of the Memorial Day Weekend Frugal Activities?

Rich Uncle EL

The Best States for Retirees

If you knew which were the best states for retirees, would that information sway you to live in one of those states? Recently such a list was released by CNN Money with some analytical help from the BankRate guys, they ran an article based on the 10 best states to retire. This list of states will give all the readers who wish to retire the best bang for their dollars. The criteria in the research was based on cost of living, (obviously) climate, crime rate, access to healthcare, and Taxes.

Now mind you some of these states are land locked and in extremely cold areas of the United States, but then have low crime rates. In contrast the states in warmer locals and near the beaches have high crime rates coupled with low taxes. The first poison you have to decide above all else is how the heck can you save enough to retire, then you can pick and choose all the dirty little things that you can live with and or without in these great states. Like being far away from the ocean, high crime, low freezing temperatures, and low taxes.

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Is it worth it to spend 90 dollars a month for Internet

This is what I am currently spending a month to access the internet now a days. It consists of two cell phones with data and home based internet usage. This gives me access to surf the web on my cell phones whenever I desire too, and at home on my computer.

The question I am proposing is, is it worth it to spend 90 dollars a month for internet?

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Cheapest Cities List

Recently CNN Money ran a article of the most Affordable cities for Americans to live in.(Cheapest Cities List) I always enjoy these articles because it gives great information as to median income, median home price, and an overall affordability score for each city. In my opinion I would only consider a few of them on the list as possible destinations to live at, but one of the most important factors that they mentioned in some but not all is the unemployment % for the cities. I believe that is one of the most important factors to consider when moving to a different state or area. They mention a few tidbits of employment related swings in some of the cities but come on CNN we need the actual facts not here say. See below for the cheapest mix of metro/suburban areas to live in.

Cheapest Cities List:

– Indianapolis, Indiana – 95.8 Affordability Score
– Dayton, Ohio – 8.2 Unemployment Rate
– Lakeland, Florida – 9.5% Unemployment Rate
– Modesto, CA – 17.4% Unemployment Rate
– Grand Rapids, Mich. – 100K Median Home Price
– Buffalo, NY – 66K Median Income
– Ogden, Utah – 91.1 % Affordability Score
– Syracuse, NY- 90.6 % Affordability Score
– Akron, Ohio – 96K Median Home Price
– Cincinnati, Ohio – 71K Median Income

There you have it, if you can transfer to any of these cities with an income of 60K or better you will have a ton of cash flow every month due to housing being so cheap. They even mention in one of the the descriptions that with a 20% down payment the average mortgage in one of the cities would be $400 dollars a month. Wow thats some cheap living right there. Due to taxes being so low and the affordability being so favorable you would live like a king if you have a good income. Doctors in these areas must be smiling all the way to the bank as they are one of the highest paid professions in any area.

I get the whole affordability aspect of all these cities mentioned, but in your eyes would affordability, a higher income, a bigger house would all of these make it worth while to move away from where you grew up and where most of your family is located? Its a tough trade off initially I would assume, but in the area I live in it is something I have considered more than once. High taxes, expensive housing, exorbitant cost of food, tough job market just to be near family and near the great city of NYC. Just reading this article and writing it has me thinking of a great dilemma I will face in the future in regards to establishing home ownership in a cost effective city.

The states I might consider in the future are: Ohio, Florida, North / South Carolina, Delaware.

Given the facts shown above would you move to any of these cities? What would sway you to move more than affordability?

Pic located in CNN article link provided above.