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Fresh Life Advice aims to aid you in taking control of your money by increasing your savings and reducing your spending. FLA will encourage you and help you along your journey to financial independence. I am not a licensed financial advisor. More importantly, FLA does not condone in investing something you do not understand. My goal is give readers a better understanding of his or her own personal finances.

Steps to Financial Independence for Young Adults

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Steps to Financial Independence for Young Adults

Financial independence is the ultimate goal for most people. It’s critical to start saving as early as you can for most young adults to prepare for the future.

Welcome to the 10th FLA Guest Blog Post! Today, we provide some steps to financial independence for young adults. Thank you to Chelsea from Business POP for sharing this helpful article.

Chelsea is an experienced Marketing and Advertising professional with a demonstrated history of working in the media industry. Chelsea is especially skilled in Digital Media advertising, Events, Search Engine Optimization (SEO), Search Engine Marketing (SEM), Microsoft Suite, Data Analytics, Adobe products, and Marketing Strategy.

The digital age has unquestionably arrived. Incorporating new technologies into business procedures will be critical for owners who want to grow their businesses.

Business POP will show you how to grow your business through innovation. It is aimed at small and medium-sized business owners and will offer advice on what digital enhancements to consider and how such changes can help them grow.

Embarking on the journey of adulthood is a thrilling adventure, filled with novel experiences and responsibilities. One of the most crucial tasks young adults face is navigating the complex world of personal finance. This article, courtesy of the Fresh Life Advice blog, aims to equip you with the necessary tools and knowledge to steer your financial ship confidently. 

From budgeting basics and savvy shopping tips to smart education investments and emergency fund essentials, this comprehensive guide is your roadmap to financial security and independence.

You Need a Budget

The first step toward financial independence begins with a well-planned budget, the cornerstone of sound financial management. Starting out, identify all your income sources and list your monthly expenses. This list should include everything from rent and utilities to groceries and transportation. 

Once you’ve accounted for these essentials, allocate funds for savings and discretionary spending. Remember, a budget is more than just tracking your bills. It’s about understanding your financial habits and planning for both short-term and long-term goals.

Your Budget Will Change

Your financial situation can change over time due to income fluctuations, lifestyle changes, or unexpected expenses. Therefore, it’s crucial to review and adjust your budget regularly to reflect these changes. 

Thankfully, there are numerous budgeting apps and online tools available to simplify this process. These platforms can help you track your spending, identify areas for improvement, and ensure you stick to your financial plan. With a solid budget, you’re well on your way to navigating the complexities of personal finance with confidence.

Higher Education Is an Investment in Your Future

Boosting your earnings often requires a strategic investment in your education. The long-term impact of going back to school can be substantial, leading to higher-paying job opportunities and greater financial stability. However, the thought of returning to school may seem challenging due to the perceived time commitment or cost. 

This is where online degree programs can be a boon. These programs offer huge time savings and reduced financial burden, allowing you to learn at your own pace, eliminating commuting time, and often lower tuition costs compared to on-campus learning. 

By furthering your education, you not only gain new skills and knowledge but also enhance your value in the job market. Whether it’s a new degree, a certification, or a skill development course, the time and effort you put into your education can pay off significantly in the long run by boosting your earning potential.

Steps to Financial Independence for Young Adults FLA
Image Source: Foto Sushi via Unsplash

Learn to Embrace Cooking at Home

For many young adults, dining out can become a frequent indulgence. However, this habit can quickly put a serious dent in your budget. Conversely, cooking at home emerges as a cost-effective and rewarding alternative. Not only does it help you save money, but it also offers you complete control over the ingredients you use, making it a healthier choice overall. By swapping a few restaurant meals with home-cooked ones each week, you can significantly cut down on your food expenses.

Dive Into New Culinary Adventures

Starting your culinary journey doesn’t have to be complicated or intimidating. Begin with simple recipes that require a few ingredients and basic cooking techniques. As you gain confidence, gradually expand your culinary repertoire by trying out more complex dishes. 

Investing in essential kitchen appliances and pantry staples is key to making this transition smoother, and often you can find affordable deals through sites like eBay or Facebook Marketplace. Before you know it, you’ll be preparing meals that not only rival those of your favorite restaurants but are kinder to your wallet as well.

Tamp Down Impulse Buying, Shop for Deals

Impulse purchases can quickly derail your budget. To avoid them, adopt a mindful shopping approach. Ask yourself if you truly need the item or if you’re simply attracted to the novelty or sale price.

Implement a waiting period for significant purchases. Giving yourself 24 hours to think it over can help you distinguish between wants and needs, preventing unnecessary spending.

Shop Mindfully

When it comes to shopping, especially for big-ticket items, never settle for the first price you see. This is where savvy shopping comes into play. It’s all about doing your research, comparing prices from different sellers, and hunting for the best deals. Sales and discounts are a great way to stretch your dollars further. In addition, many stores offer loyalty programs that can give you access to exclusive deals and rewards.

In recent years, online shopping has become increasingly popular due to its convenience. You can compare prices, read product reviews, and even score better deals all from the comfort of your home. However, it’s important to be vigilant when shopping online. Always ensure you’re buying from reputable websites, check product reviews from other customers, and ensure secure payment options to protect yourself from online scams.

Avoid Overspending with Credit Cards

While credit cards can be beneficial for building credit history, they can also lead to overspending. If you choose to use a credit card, ensure you pay off the balance in full each month to avoid interest charges.

Consider using cash or a debit card for everyday purchases. This method helps you stay within your budget since you can only spend what you have.

Avoid Payday Loans, Build an Emergency Fund

At first glance, payday loans might seem like a quick fix during a cash crunch. They offer immediate access to funds when you’re in a bind and can’t wait until your next paycheck. However, these short-term loans often come with high-interest rates and fees that can quickly add up. If not managed properly, they can trap you in a cycle of debt, where you’re constantly borrowing to pay off previous loans.

Grow an Emergency Fund

Instead of relying on payday loans, focus on building an emergency fund for unexpected expenses. Start by setting a goal to save at least three to six months’ worth of living expenses. This might seem daunting, but even small, regular contributions can add up over time. 

Having an emergency fund provides a financial independence safety net, giving you peace of mind and reducing the need to resort to costly payday loans. By prioritizing savings, you’re investing in your future financial stability.

Conclusion

Achieving financial independence as a young adult involves proactive planning, informed decision-making, and disciplined spending. With these tips in mind, you’re well on your way to protecting yourself and your wallet.

Remember, the financial habits you form now will set the tone for your financial health in the future.

Disclosure: Fresh Life Advice is an opinion-based website. I am not a financial advisor, and the opinions on this site should not be considered financial advice.

Personal Capital: The Ultimate Tool to track your Net Worth, Budget and more.

What are your thoughts on recessions? Let me know in the comments below.

A Guide to Dollar Cost Averaging

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A Guide to Dollar Cost Averaging

There are several strategies towards investing. This post will serve as a guide to dollar cost averaging.

Welcome to the 9th FLA Guest Blog Post! Today, we explore how not only to dollar cost average but also understand what dollar cost averaging is. Thank you to Andrew from Gauss Money for sharing this helpful article.

Andrew helped develop a fintech app for paying off debt. He thought my readers might be interested to hear more about how to use Chat GPT for their personal finances. Recently, Gauss Money purchased the rights for their GPT tool that is 100% free to users, and has been created with the inputs needed to support even the most complex financial questions. They call it ChatPF (personal finance).

They’ve gained a lot interest from users dropping in all of their debts to create an optimized budget and payoff plan. They can answer which debts to pay off first and what strategies are the best for your specific budgets, goals, and debt amounts.

Gauss improves your credit score in most cases. Gauss prevents late payments and reduces the amount of debt on your cards, reducing their utilization, which has a great positive effect on your credit score. You can improve the score further by paying on time to Gauss. No fees are charged if you’re late with your repayments to Gauss, but your credit score will be negatively affected.

Dollar Cost Averaging (DCA) is an investment strategy that involves dividing one’s total amount to be invested across periodic purchases of a particular asset. This strategy seeks to reduce the impact of volatility on the overall purchase. It is typically used in buying shares of a mutual fund or an exchange-traded fund (ETF).

To put it simply, instead of buying all at once, an investor using DCA will spread out their total investment across many points in time. The goal is to reduce the risk of incurring a substantial loss resulting from investing an entire “lump sum” just before a market downturn. By spreading the purchases out, the investor also potentially reduces his or her exposure to price volatility.

Dollar Cost Averaging is especially beneficial for beginners and those who are not comfortable with investing a large amount of money at one time. It helps to instill discipline in investing by committing to a regular investment schedule, regardless of the asset’s price.

The Principle Behind Dollar Cost Averaging

The principle of Dollar Cost Averaging aims to avoid making the mistake of making one-off investments at the wrong time. By spreading the purchases, the investor can avoid buying high. This is because the purchases may occur at different price points and the average cost per share (or other asset) over time can be lower than the average price.

The principle of DCA is based on the notion that it’s impossible to time the market. By spreading out investments, you’re not as susceptible to short-term swings in price. If an investor purchases more when prices are low and less when prices are high, it can result in a lower average cost per share than if they were to buy a fixed number of shares at each period.

It’s important to note that Dollar Cost Averaging does not guarantee a profit or protect against a loss. However, it does provide a systematic way for investors to participate in the market, potentially reducing the impact of price volatility on their investments.

Benefits of Dollar Cost Averaging

One of the primary benefits of Dollar Cost Averaging is that it provides protection against market volatility. Because investments are spread out over time, investors are less likely to experience a significant impact from a sharp decline in asset prices.

Another benefit of Dollar Cost Averaging is that it removes the emotional aspect of investing. It can be stressful to decide when to buy into the market, especially when prices are volatile. With DCA, investors set up a regular schedule and stick to it, eliminating the need to constantly monitor market conditions and make decisions based on short-term price movements.

Lastly, Dollar Cost Averaging is an accessible strategy for beginners and those with limited funds. Because it involves making smaller, regular investments over time, it can be a more manageable and less intimidating way to start investing.

How to Implement Dollar Cost Averaging

Implementing Dollar Cost Averaging involves setting up a regular schedule for investing. This could be weekly, monthly, or quarterly, depending on the investor’s preference and financial situation. The key is consistency; the same amount is invested at each interval.

Once the schedule is set, the investor should stick to it. This means making investments regardless of what the market is doing. It may be tempting to skip a purchase when prices are high, but remember the principle behind Dollar Cost Averaging: it’s about reducing the impact of volatility, not trying to time the market.

It’s also important to review the plan regularly. Although the schedule should be adhered to, the amount invested can be adjusted as necessary. This could be in response to a change in financial circumstances or a shift in investment goals.

Real-World Examples of Dollar Cost Averaging

Consider this example: an investor decides to invest $12,000 in a particular fund. Instead of investing the entire amount at once, they use a Dollar Cost Averaging strategy and invest $1,000 each month for 12 months.

In another scenario, suppose the same investor decides to invest the same $12,000, but this time in a volatile market. If they invest all at once, they run the risk of buying at the market peak. However, by using DCA, the investor reduces this risk by spreading out their purchases and buying at different price points over the year.

These real-world examples show how Dollar Cost Averaging can help investors reduce risk and potentially improve their investment outcomes.

Dollar Cost Average Investment Strategy
Image Source: eamesBot by Shuttershock

Tips for Successful Dollar Cost Averaging

For successful DCA, consistency is key. It’s important to stick to the schedule and invest the same amount at each interval. This could be difficult in volatile markets, but remember the principle behind DCA: it’s about reducing the impact of volatility, not trying to time the market.

Another tip is to review the plan regularly. Although the schedule should be adhered to, the amount invested can be adjusted as necessary. This could be in response to a change in financial circumstances or a shift in investment goals.

Finally, patience is crucial. Remember that this is a long-term strategy, and it can take time to see results. However, the end result can be worth it, as DCA can help reduce risk and potentially improve investment outcomes.

Risks and Considerations in Dollar Cost Averaging

While Dollar Cost Averaging has its benefits, it’s not without risks. For one, it’s not guaranteed to result in a profit or protect against a loss. The market could continue to decline long after you’ve started your DCA strategy, leading to potential losses.

Another risk is that if the market rises rapidly, a DCA strategy may result in a higher average purchase price than a lump-sum investment. That’s because the lump-sum investment would have been made at a lower price.

Finally, a DCA strategy doesn’t work if you don’t stick to it. It requires discipline to continue making the investments, even when the market is down.

Dollar Cost Averaging vs. Lump Sum Investing

Dollar Cost Averaging and lump sum investing are two different strategies, each with its pros and cons. With lump sum investing, you invest the entire amount at once. The advantage is that if the market rises shortly after you invest, you’ll benefit from the upswing. However, the downside is that if the market falls shortly after you invest, you could suffer losses.

On the other hand, DCA reduces the risk of investing a large amount in a down market. It also removes the stress of trying to time the market. However, if the market rises rapidly, a DCA strategy could result in a higher average purchase price than a lump-sum investment.

Expert Advice on Dollar Cost Averaging

Experts generally agree that Dollar Cost Averaging is a sound strategy, especially for new investors. It’s a good way to get started with investing, as it doesn’t require a large initial outlay and it reduces the risk of market volatility.

However, experts also caution that DCA isn’t foolproof. It requires discipline and patience, and it’s not guaranteed to result in a profit. As with any investment strategy, it’s important to review your plan regularly and adjust as necessary.

Conclusion: Is Dollar Cost Averaging Right for You?

In conclusion, Dollar Cost Averaging can be a helpful strategy for beginners or those who are not comfortable with investing a large amount of money at once. It’s a way to mitigate risk and reduce the emotional stress of investing. However, it’s not right for everyone.

For those who have a large sum that they wish to invest, and are confident in their ability to time the market, lump-sum investing may be a better option. Similarly, for those who prefer to actively manage their investments, DCA may be too passive a strategy.

In the end, whether Dollar Cost Averaging is right for you depends on your personal situation, your risk tolerance, and your investment goals. As always, it’s best to consult with a financial advisor before making any major investment decisions.

Do you have unpaid credit cards?

Gauss money can help pay off your credit cards easily. Pay off any credit card balance using a low-interest credit line from Gauss. You’ll save with a lower APR and you can pay off balances faster. Gauss offers no annual fees, no origination fees, and no fees of any kind. Check out Gauss for a lower APR today to maximize your credit cards.

Additionally, use tools like the credit card payoff calculator to visualize your progress overtime, and get insights into how much you should put towards your debt to achieve your debt free date. Gauss’ debt payoff calculator and debt tracker is 100% free to use via Gauss’ website or mobile app.

Disclosure: Fresh Life Advice is an opinion-based website. I am not a financial advisor, and the opinions on this site should not be considered financial advice.

Personal Capital: The Ultimate Tool to track your Net Worth, Budget and more.

What are your thoughts on building a good credit score? Let me know in the comments below.

What Is a Good Credit Score?

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What Is A Good Credit Score

Your credit score is a vital indicator of your financial health. A good credit score opens doors to countless opportunities, such as securing low-interest loans, qualifying for favorable insurance rates, and even enhancing your employment prospects.

Welcome to the 8th FLA Guest Blog Post! Today, we explore how not only get a good credit score but also understand what a good credit score is. Thank you to Andrew from Gauss Money for sharing this helpful article.

Andrew helped develop a fintech app for paying off debt. He thought my readers might be interested to hear more about how to use Chat GPT for their personal finances. Just this past week, Gauss Money purchased the rights for their GPT tool that is 100% free to users, and has been created with the inputs needed to support even the most complex financial questions. They call it ChatPF (personal finance).

They’ve gained a lot interest from users dropping in all of their debts to create an optimized budget and payoff plan. They can answer which debts to pay off first and what strategies are the best for your specific budgets, goals, and debt amounts.

Gauss improves your credit score in most cases. Gauss prevents late payments and reduces the amount of debt on your cards, reducing their utilization, which has a great positive effect on your credit score. You can improve the score further by paying on time to Gauss. No fees are charged if you’re late with your repayments to Gauss, but your credit score will be negatively affected.

While building and maintaining a strong credit score requires consistent effort and responsible financial behavior, the rewards are well worth it. In this blog post, we will delve into actionable steps you can take to improve and maintain a good credit score.

What would be considered a satisfactory credit rating according to the FICO scoring system?

The FICO website states that a good score is between 670 and 739.

Scores ranging from 580 to 669 are considered fair, and scores between 740 and 799 are labeled as “very good”.

Any score above 800 is considered “exceptional”.

The average credit score in the United States, according to FICO, was 716 in August 2022, which is in the “good” category.

FICO is the name of the company that created the first credit scoring system, which utilizes information from TransUnion, Equifax and Experian, the three major credit bureaus.

What is considered to be a favorable VantageScore?

An alternative to FICO, VantageScore, uses the same data from the three credit bureaus to generate its score.

NerdWallet gives individuals the opportunity to obtain a free credit score through VantageScore coupled with the TransUnion credit report.

Scores ranging from 661 to 780 are considered ‘prime’, while those between 780 and 850 are known as ‘superprime’.

‘Near prime’ is indicated by scores ranging from 601 to 660 and anything below 600 is classified as ‘subprime’. According to the second quarter of 2021, the average VantageScore 3.0 was 695.

The advantages of having an excellent credit rating

Having a good credit record is significant because it decides if you can obtain a loan and the amount you will need to pay in interest. A good credit rating can help you get: an unsecured credit card with a reasonable interest rate, a suitable car loan or lease, a mortgage with a reasonable interest rate, the capability to open fresh credit for costs in a crisis if you do not have an emergency fund or it is used up.

A good credit score also can be advantageous in other ways: in numerous states, people with higher credit scores pay less for automobile insurance. Furthermore, some landlords use credit scores to screen out tenants. Therefore, having a good credit score is advantageous even if you do not plan to apply for credit.

Some frequently asked questions include:

What is a good credit score to buy a car?

If your credit score is under about 700, you should be prepared for questions about negative items on your credit file when purchasing a car. Individuals with major stains on their credit are routinely approved for car loans, but you may not qualify for a low rate.

What is a good credit score to buy a house?

You don’t have to have perfect credit to get a mortgage. In some cases, credit scores can be in the 500s. However, credit scores estimate the risk that you won’t pay as agreed, so lenders do offer lower rates for higher scores.

What is a good credit score for renting an apartment?

Landlords or property managers generally aren’t looking for perfect scores. They are more interested in your credit record.

What figure do loan providers consider to be an acceptable credit score?

Financial institutions like credit card companies and lenders of mortgages may each establish their own criteria for what makes someone a good credit risk. In the end, however, a “good credit score” is one that gets you access to credit when you need it, or qualifies you for the most favorable interest rate on a mortgage.

What elements have an impact on your credit rating?

When it comes to what impacts your credit score, two points stand out: whether you pay on time (payment history), and the amount of your credit limits you are using (credit utilization). The other elements play a part, but are not as significant: the duration of time you have had credit, the diversity of credit types you have, and how often and recently you have applied for credit.

Good Credit Score
Image Source: iStock by Getty Images

Ways to attain a strong credit ranking

Establishing good credit habits on a consistent basis will help increase your credit score. To do this, you should pay your bills on time as this is the most influential factor in your score. A skipped or late payment can damage your score and stay on your credit report for as many as seven years.

Try to keep your credit card balances below the limit, with utilization at around 30% or lower. High utilization will lower your score, but the damage can be reduced by reducing your balance and showing lower utilization on your credit reports. Whenever possible, keep credit accounts open, as this will raise your average age of accounts, which has a minor effect on your score.

Additionally, closing an account will reduce your overall credit limit, raising your utilization. Be careful not to make too many credit applications in a short period of time, as this can cause a short-lived dip in your score.

Make sure to check your credit reports and dispute information that you think is incorrect or too old (most negative information drops off after seven years). If you want to know what is powering your credit, sign up for a free credit score and get personalized insights with weekly updates to track your progress.

For instance, pay off high interest debt to lower your utilization. Utilize tools like credit card payoff calculators to make a plan you can stick to. Also consider using other financial tools to lower the APR on your credit card debt for faster payoffs like balance transfer cards or low interest credit lines designed for credit card debt. 

Can a credit score of 700 be considered satisfactory?

Above all, a credit score of 700 is viewed positively. If you have a good credit score, you’re more likely to be approved for additional credit (although lenders may take into account other things besides your score). It is also more likely that you’ll get more desirable terms such as a lower rate of interest.

What is considered a high credit rating?

Credit ratings between 720 and 850 are deemed to be excellent. If your rating is above 800, you can receive the most favorable borrowing conditions.

What is the ideal credit rating, and how many individuals possess it?

The most popular credit scoring system is the FICO score, which ranges from 300 to 850. Based on a study completed by Experian, a credit bureau, 1.3% of the FICO scores in the third quarter of 2021 were the highest score of 850. Unfortunately, credit scores are variable and maintaining an 850 is not likely to happen continuously.

What is the acceptable level of creditworthiness?

An acceptable credit score is estimated between 630 and 689. In other words, it may be more challenging to qualify for financing or obtain the terms you are after.

A bad credit score is a numerical representation of an individual’s creditworthiness, which reflects their financial history, and is used to assess the risk of lending money to them.

Credit scores less than 630 are considered to be bad. Utilize the advice provided above to support your credit profile.

Sources of information used by the NerdWallet writers include peer-reviewed studies, government websites, academic research, and discussions with specialists in the field. Content is carefully examined for truthfulness, timeliness, and pertinence.

If you would like to learn more about the high standards of journalism followed by NerdWallet, you can refer to the editorial guidelines. Bev O’Shea, a former credit writer for NerdWallet, has written for the New York Times, Washington Post, MarketWatch, and other publications.

Comprehending one’s credit rating

The most general credit score is between 300 and 850, with a score of 690 being considered good. Moving the dot to your present score can help you to understand more, like how you can raise it.

In fact, if you don’t know what level your rating is at, you can get a free credit score from NerdWallet.

The upper limit of good credit is 719. Pick the score that is most similar to yours to learn what your credit score can do for you, such as: 690, 695, 700, 705, 710, 715, or if you reach 720 you have achieved excellent credit.

Conclusion

A good credit score opens doors to financial opportunities and empowers you to achieve your goals. By understanding the key factors that influence your credit score and adopting responsible financial behaviors, you can steadily improve your creditworthiness. Remember, building a good credit score requires patience, consistency, and discipline, but the long-term benefits are well worth the effort. Start today, and pave the way for a brighter financial future.

Disclosure: Fresh Life Advice is an opinion-based website. I am not a financial advisor, and the opinions on this site should not be considered financial advice.

Personal Capital: The Ultimate Tool to track your Net Worth, Budget and more.

What are your thoughts on building a good credit score? Let me know in the comments below.

The Ultimate Guide to Thriving in a Recession: Practical Tips for Your Finances and Business

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The Ultimate Guide to Thriving in a Recession_ Practical Tips for Your Finances and Business

The thought of a recession can be overwhelming and stressful, especially for those who are not prepared. It’s important to remember that a recession is not the end of the road. With the right mindset and actions, there are ways to come out victorious during tough economic times.

Welcome to the 7th FLA Guest Blog Post! Today, we explore how not only survive but also thrive through a recession. Thank you to Chelsea from Business POP for sharing this helpful article.

Chelsea is an experienced Marketing and Advertising professional with a demonstrated history of working in the media industry. Chelsea is especially skilled in Digital Media advertising, Events, Search Engine Optimization (SEO), Search Engine Marketing (SEM), Microsoft Suite, Data Analytics, Adobe products, and Marketing Strategy.

The digital age has unquestionably arrived. Incorporating new technologies into business procedures will be critical for owners who want to grow their businesses.

Business POP will show you how to grow your business through innovation. It is aimed at small and medium-sized business owners and will offer advice on what digital enhancements to consider and how such changes can help them grow.

The economy can be a rollercoaster ride, and with the recent pandemic, the unpredictability has only increased.

In this article, Fresh Life Advice will discuss important strategies such as cutting expenses, wisely investing, and finding alternative sources of income to help you become recession-proof and potentially emerge even stronger from the experience.

Keeping Your Household Budget Under Control During a Recession

Managing your household budget is a key strategy for surviving a recession. This involves sticking to a budget, spending only on necessary expenses, and finding practical ways to save money. Start with creating a budget, which includes an inventory of your expenses and income.

It’s important to review your expenses and see where you can make changes. This could include cutting subscriptions you don’t use, shopping around for insurance, dining out less often, and focusing on buying what is absolutely essential.

There are also multiple resources out there that can help you save money. Consider becoming a member of a local credit union to take advantage of lower interest rates and additional services.

Paying Off High-Interest Debt

During a recession, paying off high-interest debt is crucial for financial planning. It’s often difficult to pay off debt because high-interest rates can add up quickly, making your overall debt much harder to manage. For instance, if you have credit card debt with an interest rate of over 20%, paying down the principal can feel like an impossible task.

Consolidating your debt with a lower interest rate may be the solution. A credit counseling agency can help you assess your finances and identify your options to manage your debt.

Alternatively, consider negotiating lower interest rates by refinancing or taking out a personal loan. By doing so, you can reduce your debt and gain more control over your finances during a recession.

Recession Investing in a Home Warranty

Homeownership can come with unexpected expenses, but having a home warranty can help to alleviate the stress and financial burden associated with surprise repairs. For individuals who are interested in avoiding the high costs of home system and appliance repairs during a recession, it’s essential to consider this option.

A good home warranty generally covers a range of systems and appliances, such as plumbing, electrical, heating, and cooling systems, and large appliances, including refrigerators, water heaters, and ovens, providing peace of mind that in case anything goes wrong, you are covered.

Consequently, investing in a warranty can be an incredibly wise choice for those seeking to manage their monthly expenses while safeguarding their financial security.

Earning Extra Income on the Side

During a recession, relying on a single source of income can be a risky move. This is why diversifying your income is critical to ensuring financial stability.

The first step to diversifying your income is to evaluate your skills and see if there are any opportunities to monetize them. For example, you can offer your services as a freelancer, tutor, or gig worker for ride-sharing services. You could even consider starting a small business or selling items you no longer need online.

Referral programs are another option for generating additional income with minimal effort. By referring new clients to businesses, you can earn extra cash without investing too much time or resources. Overall, diversifying your income is essential to surviving a recession and ensuring financial security in the long run.

Effectively Diversifying Your Portfolio

To weather the storm of an economic downturn, it is crucial to diversify your investments and avoid putting all your financial resources into a single avenue. By spreading your investment portfolio across different types of assets such as stocks, bonds, and commodities, you minimize the impact of market fluctuations on your wealth.

Practical Tips for Your Finances and Business
Image Source: Anna Tarazevich via Pexels

Beyond this, it is essential to remain aware of the different industries and sectors in which you invest. Some sectors like tourism or hospitality are especially vulnerable to recessions and downturns. Therefore, diversifying across industries further can help you mitigate the risk of losses during a financial crisis.

So, remember to diversify both the type of investments and the industries in which you invest to secure a more robust and resilient portfolio.

Tackling Financial Anxiety and Stress

During a recession, the impact on emotional health should not be underestimated. Financial strain, job insecurity, and overall uncertainty can lead to feelings of frustration, fear, and anxiety.

It is crucial to recognize the early signs of mental health issues and seek appropriate help to manage them effectively. Maintaining a healthy lifestyle with regular exercise, taking care of nutrition, and getting enough sleep can help reduce stress levels.

Additionally, seeking support from a trusted network and confiding in someone about your financial concerns can provide much-needed reassurance and support. Mental and emotional health should be a top priority during a recession as it can significantly affect your overall quality of life. It’s important to remember that taking care of yourself is not a selfish act but rather an act of self-care that can benefit you and those around you.

Surviving a Recession

In conclusion, the prospect of surviving a recession can be daunting, but it is not impossible. By taking steps to manage your household budget, you can ease your financial burdens and put yourself on a path toward stability. An impactful way to accomplish this is by investing in a home warranty, which can protect you against unforeseeable expenses that could put a severe strain on your finances.

It is important to remember that experiencing anxiety related to financial worries is normal, but there are several strategies available to help manage your stress levels. With dedication and persistence, you can not only survive but also thrive during a recession, emerging from this experience stronger and more resilient than ever before.

Disclosure: Fresh Life Advice is an opinion-based website. I am not a financial advisor, and the opinions on this site should not be considered financial advice.

Personal Capital: The Ultimate Tool to track your Net Worth, Budget and more.

What are your thoughts on recessions? Let me know in the comments below.

The Paradox of Alter Ego and Financial Independence

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The Paradox of Alter Ego and Financial Independence

In the past few years, I’ve seen a lot of discussion in business circles about the benefits of adopting an “alter ego” to enhance performance.

The idea is that when we adopt an alternate persona, we distance our true selves from the task at hand and can therefore navigate high-pressure and challenging situations more effectively.

The conversation has even popped up in the financial independence community as people map F.I. (financial independence) into their identity and work towards a goal that many think is impossible.

They launch blogs, YouTube channels, Twitter, and Instagram accounts, selectively disclosing scattered details about their lives.

Often fragmented, defaulting back to the same language others have used before. They hide, sometimes visible, and others invisible.

The concept is not new.

In 2008, Beyoncé created her alter ego, “Sasha Fierce,” to boost her confidence on stage. A few years later, Adele did the same.

In 2016, researchers coined the term “the Batman Effect” to describe how adopting an alter ego (such as a superhero like Batman) helped young children complete tasks, even when given the option to do other, more exciting things.

Batman Effect
Image Source: SchoolPRPro via Pixabay

In 2019, performance coach Todd Herman wrote The Alter Ego Effect, which explores how elite athletes, entrepreneurs, executives, and historical figures have all used alter egos to unleash their “heroic self.”

Evidence shows that distancing yourself emotionally and psychologically from your authentic self can improve your performance on something stressful, unappealing, or difficult.

But as I look at the world around me, especially as I spend time online as a content creator, entrepreneur, and observer, I can’t help but wonder: what alter egos are we adopting in our lives that we may not even realize?

When do alter egos empower us and when do they erase us?

The temptation to pretend to be someone we’re not lurks in basically every corner of our personal and professional lives.

The media loves to point to social media as a villain, and there is plenty of evidence about how social media negatively affects our mental health and self-esteem.

Readers of my blog know that I use social media sparingly for this reason. To me, the benefits are rarely worth the tradeoffs necessary to achieve them.

Even colleagues and friends of mine who have been successful using social media have confessed to me how constantly being online and performing for an audience they barely know negatively impacts their mental health.

Even if you’re not on social media, you likely adopt alter egos in some areas of your life.

We’ve long been told to “fake it till you make it” in our careers or to keep our emotions in check at work because if we don’t, people will assume we’re weak or incompetent.

While Covid-19 relaxed a lot of the formality around what is considered professional and appropriate, we still hold ourselves to different standards of appearance, behavior, and speech at work than we do any other time of day.

We adopt these alter egos because we think we need them to succeed. When in reality, we’re just making ourselves sicker.

Studies show that faking positive emotions at work leads us to feel emotionally depleted and energetically drained, and people who behave inauthentically at work—consciously or not–are less effective, less engaged, and generally less pleasant and competent than those who show up as their true selves.

In other words, wearing a mask or pretending to be something you’re not doesn’t just make you less successful in the long term; it also makes you miserable.

When we set aside artifice and embrace vulnerability, we connect more with ourselves and others.

Humans derive meaning from connection. Connection makes us more fulfilled and more successful. Authenticity breeds connection and connection breeds loyalty.

When I first started Fresh Life Advice, one of the main things that differentiated me from other money bloggers was that I held nothing back.

I was open and vulnerable with my audience about who I am, what I’ve learned, and what mistakes I’ve made. In fact, I was open about my faults and my doubts and my fears and my desires. And finally, I was open about what I believed and didn’t believe.

This was–and still is–rare in the business and personal finance world, where many creators are often focused on showing off how much they know, selling a product, or courting brand partnerships.

But, because it made me different, this vulnerability helped me grow Fresh Life Advice way bigger than any venture I had started before. And I did it without pretending to be someone I’m not.

I’d take this idea a step further to argue that we must not only disassociate with our alter egos (the inauthentic versions of ourselves we present to the world), but also our egos.

Our egos represent the people we believe ourselves to be–the stories we tell ourselves about who we are and what defines our identity.

In his book Atomic Habits, James Clear argues that “your identity emerges out of your habits” and “every action is a vote for the type of person you wish to become.” In other words, who we are is defined by what we do.

I disagree.

Your actions do not define who you are because you are more than your choices. Your identity can easily become a mask, a crutch, or a label you get stuck in.

When we over-identify with a particular aspect of ourselves–a habit, a belief system, a job, an affiliation–we risk becoming trapped by it. I see this in others all the time. People invest so much into trying to become someone they don’t want to be. Or that they’re not.

We may also forget that we are, above all else, all human and lose the ability to connect with others beyond the most superficial version of ourselves.

This is the paradox of ego.

I see the paradox of ego a lot within the FIRE movement. Financial freedom is supposed to be just that–freedom. By achieving a certain level of wealth, you liberate yourself from the financial considerations that most people have to weigh when deciding what to do with their lives.

Financial freedom is supposed to enable life freedom. And, yet, nine times out of ten, whenever I talk to someone who says they have reached financial independence, all they want to talk about is their investments or how they reached FI.

Freedom
Image Source: Jill Wellington via Pixabay

They’ve become so used to spending their precious time and energy focused on their money that they’ve lost sight of why they started this pursuit in the first place.

They have become so focused on the goal of financial independence that they aren’t taking advantage of the freedom they’ve already accumulated.

To achieve financial freedom, you have to adopt some pretty specific and sometimes strict habits. But these habits should never be more than a means to an end. They are not you.

You are a human being, not a habit.

I encourage you to pay attention to the identities you’ve adopted and see if you can separate yourself from them.

Ask yourself how your goals and actions allow you to be who you are without defining who you are.

This is the space of freedom.

 

Disclosure: Fresh Life Advice is an opinion-based website. I am not a financial advisor, and the opinions on this site should not be considered financial advice.

Personal Capital: The Ultimate Tool to track your Net Worth, Budget and more.

What are your thoughts on alter ego and financial independence? Let me know in the comments below.

Early Retirement

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Retiring Early

Welcome to the 6th FLA Guest Blog Post! Today, we explore how to retire early. Thank you to Rachel from Annuity.org for sharing this helpful article.

Rachel Christian is a professional journalist who has covered business, local government and education since 2014. She is a Certified Educator in Personal Finance with FinCert, a division of the Institute for Financial Literacy.

Rachel is also a member of the Association for Financial Counseling & Planning Education and a past member of the American Finance Association. She holds a bachelor’s degree in journalism from the University of Southern Indiana. Her leadership role at her college newspaper led to a professional career writing public service-style pieces about taxation proposals and government audits to inform everyday citizens.

Rachel strives to communicate important, complex topics including finance and investments to help readers understand and apply valuable knowledge to their lives. Rachel also contributed to Evansville Business, which covered major financial developments and economic opportunities in Indiana’s third largest city.

Early Retirement

Retiring early is a dream for many, and it is possible to make it a reality. With careful planning, dedication, and a bit of luck, you can retire early and enjoy the rest of your life. Here are some tips to help you retire early and live the life you have always wanted.

The first step to retiring early is to create a budget and stick to it. This will help you determine how much money you need to save each month in order to reach your retirement goals. It is important to consider all of your expenses, including taxes, insurance, and other costs. Once you have a budget in place, you can begin to save money each month.

The second step to retiring early is to invest wisely. Investing your money in stocks, bonds, and mutual funds can help you grow your retirement savings. You should also consider investing in real estate, which can provide steady income and tax benefits. With careful planning and research, you can make wise investments that will help you reach your retirement goals.

Finally, you should make sure to take advantage of any retirement savings plans offered by your employer. Many employers offer 401(k) plans, which allow you to save money for retirement on a tax-deferred basis. You should also look into other retirement savings plans, such as IRAs and Roth IRAs.

Retiring early is a great way to enjoy the rest of your life. With careful planning and dedication, you can make it a reality. With a budget in place, wise investments, and the right retirement savings plans, you can retire early and live the life you have always wanted.

How to Retire Early

Retiring early is an exciting prospect for many people, and it is certainly possible to do so with the right planning and dedication. To retire early, start by creating a budget and tracking your spending. Make sure to put away money into a retirement account each month, and consider investing in stocks and bonds to increase your savings. Additionally, try to reduce your debt as much as possible, as this will make it easier to save for retirement. Finally, consider working a side job or freelancing to increase your income and save more money. With the right strategy, you can retire early and enjoy the freedom and flexibility that comes with it.

Investing and Saving for Early Retirement

It is a wonderful idea to invest and save for early retirement. Doing so can help ensure financial security and provide peace of mind. Investing and saving for retirement early can help to maximize the potential of your money, allowing you to have a comfortable retirement.

It is important to research different investment options and to be mindful of the risks associated with investing. Additionally, it is important to save regularly and to consider the potential tax implications of your retirement savings. Overall, investing and saving for early retirement is a wise decision that can help to secure your financial future.

Depending on your priorities, your portfolio will contain various asset types that strike the appropriate balance to help you achieve your goals. The 60/40 investing strategy, for instance, may be used in your portfolio. This strategy invests 60 percent of the investor’s assets in stocks and 40 percent in lower-risk bonds.

However, you may want to think about reallocating your assets if economic conditions have a negative impact on the rate of return of this mix, as they seem likely to over the next ten years. Purchasing an annuity to act as a low-risk asset buffer may be successful and has the added benefits of tax deferral, lifetime income, and a death benefit for your heirs.

Image Source: Pixabay via Pexels

Social Security and Early Retirement

I am in favor of Social Security and Early Retirement. It is a great way to ensure that people can enjoy their later years in life without having to worry about financial insecurity. Social Security provides a much needed safety net for those who have worked hard throughout their lives and need a little extra help in retirement. Early retirement can also be beneficial for those who are able to take advantage of it, as it allows them to enjoy their retirement years earlier than they would have otherwise.

Obstacles to Early Retirement

It is admirable that you are considering early retirement. It is a great goal to set and can be a rewarding experience. However, there are some obstacles to consider before taking the plunge. These can include having enough money saved to live comfortably, having a plan for health insurance, and having a plan for how to spend your time.

Additionally, it is important to consider the impact that early retirement may have on your Social Security benefits. All of these factors should be carefully weighed before making the decision to retire early.

Health Care Costs

Is important to analyze the increasing attention being given to health care costs. In recent years, the cost of health care has been on the rise, making it difficult for many people to access the care they need. This is why it is so important to focus on reducing health care costs.

By implementing cost-saving measures, such as reducing administrative costs, increasing the use of generic medications, and improving access to preventive care, we can make health care more affordable and accessible for everyone.

Health Care Options for Early Retirees

It is a great decision for early retirees to explore their health care options. There are a variety of plans available to suit different needs and budgets. These plans can provide coverage for essential medical services and help to protect individuals from unexpected medical costs.

It is important to research the different options available and compare them to find the best plan for an individual’s specific needs. It’s highly recommended for early retirees to take the time to explore their health care options and make an informed decision that best suits their needs.

Some options are:

  • Employer-sponsored retiree health plans
  • Public exchanges established by the Affordable Care Act (ACA or ‘Obamacare’)
  • Private insurance exchanges
  • A spouse’s health plan

IRAs, 401(k)s and Early Retirement

401(k)s and Early Retirement, are all excellent options for individuals to consider when planning for their financial future. IRAs, or Individual Retirement Accounts, are a great way for individuals to save for retirement in a tax-advantaged manner. 401(k)s are employer-sponsored retirement plans that allow individuals to save pre-tax dollars for retirement.

Early Retirement is a great option for those who are able to retire before the traditional retirement age. All of these options can help individuals to plan for a secure financial future.

Why Guest Post With Us?

Guest posting allows you to gain access to our readers and serves as a way to promote your content. We do not charge for guest posting like many other blogs. We believe in the power of unique, valuable content and will not charge to promote it!

Disclosure: Fresh Life Advice is an opinion-based website. I am not a financial advisor, and the opinions on this site should not be considered financial advice.

Personal Capital: The Ultimate Tool to track your Net Worth, Budget and more.

What are your thoughts on retiring early? Let me know in the comments below.

How To Grow Your Side Hustle Into A Full-Time Business

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How To Grow Your Side Hustle Into A Full-Time Business

Welcome to the 5th FLA Guest Blog Post! Today, we explore how to grow your side hustle into a full-time business. Thank you to Kathryn from Cash for Kat for sharing this helpful article.

Kathryn Rucker is a business consultant and personal finance blogger who is passionate about helping individuals and businesses scale by improving their online presence. Kat started traveling the world in 2019 and currently runs her blog and business out of Phnom Penh, Cambodia.

Cash for Kat will show you how to make cash, save cash, and invest cash. Join her on her journey to financial independence. Every month, she shares her latest articles on a range of money topics, such as: starting a business, budget travel, my investments, creating side-hustles, and more!

Your side hustle is more than just an extra income stream. It’s a business that can help you reach financial freedom so that you can live a happy life!

The problem is, if you’re not ready to take the plunge, your side hustle might not grow as big and as fast as you would hope. Unfortunately, that’s what happened to me when I first started my side hustles.

Eventually, I was able to grow my side hustle into a full-time business… And I want to help you do the same. From psychological tips to practical methods you can implement, this article has it all.

Without further ado, here is everything I learned about how to grow your side hustle into a full-time business!

An Overview of How to Grow Your Side Hustle into a Full-time Business

Of course, there are many things that can help you grow your business. If you ask 100 people what worked best for them, I’m sure you’d get 100 different answers!

That being said, you will also find some similarities in those responses. There are some aspects of business that just make sense, and you will hear them coming up time and time again.

Here are 5 key areas you can focus on to grow your side hustle:

1. Find Your Motivation

It is not a secret that running a business is hard. The only thing harder than running a business is starting one in the first place! To help keep you going during the hard times, you will need to examine your motives.

Common sources of external motivation:

  • Family
  • Money
  • Work Flexibility

While these are excellent sources of inspiration, they are still what we would consider external motivators. You might be wondering, what other kinds of motivation are there?

The answer is this: intrinsic motivation. And it is even more powerful than external motivation! Intrinsic motivation is doing an activity for inherent satisfaction.

So not only should you identify what aspects of the business motivate you the most, but you should also try to minimize the activities you dislike.

Image Source: Gerd Altmann via Pexels

Common sources of intrinsic motivation:

  • The joy of learning a new skill
  • The feeling of accomplishment when you exceed your own expectations
  • The satisfaction of helping accomplish something

For intrinsic motivation, you will notice that what brings you joy is the feeling you get from doing the action itself. The focus is more on your own satisfaction and growth, rather than receiving external recognition (an award/money/etc.).

2. Implement the 80-20 Rule

The 80-20 rule is based on a simple premise: 80% of your results come from only 20% of your actions. 

To put it a different way… we waste a lot of time on other tasks when it is really only a few of our actions that truly move the needle. 

So how can you use the 80-20 rule to maximize your productivity? Identify the 20% that is driving the needle for you! Then do more of that and less of anything else.

For side hustles, you will often find that the 20% is related to gaining more business. In fact, this is true for most start-ups in general. The reason is that before you can have a perfect product or service… you need feedback! And the best way to get relevant feedback is from people who have used your product or service. 

While it seems counterintuitive, I would actually focus more on doing outreach and perfecting your “concept” of what you are selling. This is actually one of the key differences between entrepreneurship and freelancing. When you focus on selling, you will eventually have more business than you can fulfill yourself and will need to build a team.

3. Sign Up for Freelancing Platforms

Though it is possible to make money online without experience, you will still need a way to pay your bills. To help you make ends meet, you will likely need to spend some time doing one-off projects.

Beginner-friendly freelancing platforms are fantastic for helping you go from a side hustle to a full-time business. Some people you meet on freelancing platforms might become long-term clients for you! At the very least, it will help you build a portfolio and gain plenty of references.

You will also gain experience managing the expectations of your clients. This can be important because there are many moving parts in a business. Using a freelancing platform helps you focus less on obtaining new clients and more on fulfilling projects in an organized way.

4. Standardize Your Offerings

As you work on various projects, you will notice that there are certain vital things that people want time and time again. This is great because you can create a standardized offering that takes much guesswork about what kind of project you will be working on. 

You will also gain valuable business skills that are related to more specific aspects of your niche. This will help show your clients that you are an expert in this field, and they will trust your recommendations more.

An example of how standardizing your offerings helps you grow your side hustle into a full-time business:

When I first started side hustling, I would do freelance blog post writing. Over time I got better at this, and now I choose to sell blog content packages to my clients.

This is great because people usually pay me to write ten or more instead of writing one blog post. Another plus is that most people who want blog posts written will also need them promoted on social media. So I started to bundle this into my offerings too!

By paying attention to what people kept asking for, I created organized packages that would appeal to more than one client. This also made it easier for me to create a system to fulfill their orders faster.

5. Reflect and Improve

Every business goes through an ugly duckling phase. It is essential to focus on progress and not perfection when you are first starting your business. You do not want to face analysis paralysis that stops you from taking action.

With this in mind, create everything with the knowledge you will have to improve it at some point. Even things I thought I had done very well at the beginning of my business ultimately needed to be redone by year two.

This is because your brand identity might change, your products might change, or you get a better idea of your ideal client’s wants. In general, the business will most likely evolve from what you initially thought it was. You will also have more budget to hire professionals to help you with your logo, website, or social content.

Chances are you will not change everything in your business overnight. That is why it is important to reflect regularly and improve your various business processes.

How to Reflect and Improve to Grow Your Side Hustle into a Full-Time Business

I like to set a Focus for the month that change based on business needs. Of course, you will still have other tasks to focus on and accomplish aside from your focus task. That being said, setting the intention to knock out one big project can help prevent it from lingering in the background all year.

For example, for one month, I might focus on trying to knock out most of the social media content for the year and automating it. In another month, I plan on updating as much of the website as possible.

Keep laser-focused on the main projects that will actually help you move the needle when it comes to growth!

Final Thoughts

If you have side hustles and side projects running in the background, it can be quite easy to lose focus on what you’re actually trying to achieve. It becomes hard to tell where you want to go.

So, when you’re trying to decide whether to quit your job or stay and scale your business, I want to help you to see the bigger picture by following the tips above.

Why Guest Post With Us?

Guest posting allows you to gain access to our readers and serves as a way to promote your content. We do not charge for guest posting like many other blogs. We believe in the power of unique, valuable content and will not charge to promote it!

Disclosure: Fresh Life Advice is an opinion-based website. I am not a financial advisor, and the opinions on this site should not be considered financial advice.

Personal Capital: The Ultimate Tool to track your Net Worth, Budget and more.

What are your thoughts on solar panels and solar energy? Let me know in the comments below.

How Solar Panels Can Help the Environment and Your Wallet

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How Solar Panels Can Help The Environment And Your Wallet

The world is slowly but surely transitioning to solar energy. Will you embrace and adapt with the change?

Welcome to the 4th FLA Guest Blog Post! Today, we explore how solar panels can help the environment and your wallet. Thank you to Chelsea from Business POP for sharing this helpful article.

Chelsea is an experienced Marketing and Advertising professional with a demonstrated history of working in the media industry. Chelsea is especially skilled in Digital Media advertising, Events, Search Engine Optimization (SEO), Search Engine Marketing (SEM), Microsoft Suite, Data Analytics, Adobe products, and Marketing Strategy.

The digital age has unquestionably arrived. Incorporating new technologies into business procedures will be critical for owners who want to grow their businesses.

Business POP will show you how to grow your business through innovation. It is aimed at small and medium-sized business owners and will offer advice on what digital enhancements to consider and how such changes can help them grow.

There has been a lot of talk about how we can help the planet and reduce the risks of climate change, and it can be a daunting topic to think about. Luckily, there are many ways that every person can do their part to reduce energy dependence and create a cleaner environment. Installing solar panels is one of those solutions. By using this alternative form of energy, you can help the planet while saving money. The process is easy and straightforward. Here, the Fresh Life Advice blog highlights the many benefits of solar, discusses if it’s the right option for you, and offers some simple tips on getting started.

Help the Environment

When it comes to doing our part to help the environment, going solar in your home or workplace can make a big impact. According to the U.S. Energy Information Administration, solar panels produce clean energy that does not produce harmful air pollution or greenhouse gasses. This is especially important for large factories that use hundreds of panels instead of standard electricity, but on an individual residence, it can also make a positive impact.

Solar panels also reduce the wasteful resources necessary to create the electricity that powers our homes. Solar panels are a type of renewable energy source that can help reduce the use of fossil fuels and water. Massive amounts of fossil fuels and thousands of gallons of water are required to generate regular electricity. Meanwhile, solar panels rely on sunlight to generate electricity, and they can be used to power homes, businesses, and even automobiles.

In addition to being renewable, solar energy is also very efficient. Solar panels can produce up to 50 times more electricity than traditional fossil fuel-powered generators. And because they don’t rely on water to operate, solar panels can help reduce the strain on our water resources. In many parts of the world, solar panels are already playing a vital role in reducing the use of fossil fuels and water. As more people turn to solar energy, we can expect these benefits to increase.

As mentioned, the way to really make an impact on our environment is to band together to help, and with solar panels, you are essentially creating an advertisement out of your home. Neighbors will be inclined to ask about the benefits of having panels installed and they may decide to buy them as well, so you are doing your part to spread the message and the environment will be better because of it.

Cost Savings

While some people may be satisfied by just knowing that they are making a positive impact on the world, the cost savings associated with solar panels is the cherry on the cake. Electric bills can be one of the most costly utilities, especially during the hottest and coldest months. According to Move.org, the average electricity bill is over $110. Luckily, solar panels can reduce that cost.

According to 2021 estimates, solar panels can save the average homeowner about $1,500 per year in energy costs, depending on your location, the amount of sun on your roof, and how much electricity you use daily. Keep in mind that you may still get a monthly bill from the electric company to keep you on the grid in case of an emergency, but it will likely be minimal.

The cost for a solar panel can vary, and the average home needs about 16 panels, so you can expect to pay anywhere from $105 to $1,500 per panel. Bear in mind the cost of the panel is based on the number of watts per panel.

Solar Panel House
Image Source: Vivint Solar on Unsplash

If you are interested in installing panels, you can get a great start by looking into the Energy Efficient Mortgage Loan program, which helps families lower their utility bills when they implement energy efficiency into their homes, which includes solar panels. This is a great program for brand-new homes or existing properties as the cost of these improvements is incorporated into your mortgage and it translates to great savings.

You can also use Renewable Energy Credits (RECs) to make your home 100% renewably powered, solar included. RECs are certificates that represent the environmental benefits of renewable energy generation. By selling RECs, solar panel owners can receive payments for the environmental benefits their solar panels provide. In addition, some utility companies offer rebates or other incentives for solar panel owners who sell RECs. As a result, taking advantage of RECs can be a great way to reduce the cost of solar panels and encourage more people to switch to renewable energy. And, of course, it’s a great way to contribute to the earth’s well-being as it reduces your greenhouse gas emissions and carbon footprint.

The Process

Keep in mind that your home may need to meet certain requirements in order to qualify for solar. For instance, your roof will need to be in good condition as the panels are heavy and need solid support. You’ll also need enough space as the average size of the collection of panels on a roof measures about 400 to 600 square feet. Finally, the best roofs are covered with standard shingles. Slate roofs tend to break, so consider that as well.

If all conditions are met, then the initial installation process is a snap and should only take a few hours. After the panels are installed, a representative from the power company will come out to inspect the system and provide a unique meter. You should see solar power generated for your home within a month from there.

Maintenance

Most solar panels come with a 20- to 25-year warranty, but that doesn’t mean they’ll last that long without proper maintenance. In order to keep your panels running at peak efficiency, it’s important to have them inspected regularly by a qualified technician. While you can do some basic cleaning and troubleshooting yourself, it’s best to leave the more technical aspects of panel maintenance to the professionals.

So, how do you go about getting your solar panels inspected by the power company? The first step is to contact your local utility company and ask if they offer this service. If not, there are a number of private companies that specialize in solar panel maintenance. Once you’ve found a company you’re comfortable with, schedule an appointment for them to come out and take a look at your panels. Be sure to give them a thorough cleaning before they arrive so they can get an accurate reading of your system’s performance. With a little bit of care and attention, your solar panels will continue to provide clean, renewable energy for years to come.

With most kinks worked out and the benefits and cost of installation now clear, this is the best time to invest in solar panels. Consider the tips and perks above and you’ll be on your way to clean energy.

Why Guest Post With Us?

Guest posting allows you to gain access to our readers and serves as a way to promote your content. We do not charge for guest posting like many other blogs. We believe in the power of unique, valuable content and will not charge to promote it!

Disclosure: Fresh Life Advice is an opinion-based website. I am not a financial advisor, and the opinions on this site should not be considered financial advice.

Personal Capital: The Ultimate Tool to track your Net Worth, Budget and more.

What are your thoughts on solar panels and solar energy? Let me know in the comments below.