Simple Ways to Lower Your Energy Bill

chartThe average monthly power bill for a household in the United States was $110.14 in 2011. When you multiply that by 12, you get $1,321.68 per year. That’s quite a bit of money when you think about it. With energy costs being what they are, it’s no wonder people are starting to get serious when it comes to conserving energy and reducing their power bill. But there are some surprisingly simple ways to cut back on your energy consumption without having to install solar panels or replace all your appliances. Here are a few ideas…

1. Install a programmable thermostat if you don’t already have one. If you have one, make sure you’re using it properly. Set it so it uses less energy during the time you’re not at home. For instance, if you leave your house at 7:30 am to go to work, and you won’t return until 5:00 pm, set your thermostat to use less heat/AC during those hours that you’re gone.

2. Use your television’s energy saver mode. Don’t know if your television has one? If it’s a modern television, it probably does. You may have to consult your manual or search through the on-screen menu to find it, but most of today’s sets have it. By setting it to energy saving mode, it will use less power to brighten the screen. You may notice that the color looks slightly different or the contrast is a little lower, but the picture should still be just as clear.

3. Use natural light whenever possible. If you’re home during the day, don’t use electric lights if at all possible. Open your blinds and windows and let the sunshine in. Natural light is great because it doesn’t cost anything to use, it helps make your home look more attractive, and some health experts say that sunlight actually can have emotional health benefits, even helping treat depression and anxiety.

4. Don’t run your dishwasher or clothes washer unless it’s full. Why waste the water and power to heat the water on a load that’s only half-full? Wait until you’ve got a complete load and you’ll be doing less work, using less energy and saving water – all at the same time!

5. Practice energy efficient computer use. The United States Department of Energy suggests turning off your monitor if you’re not going to use your PC for more than 20 minutes. They also suggest turning off both the CPU and monitor if you’re not going to use the system for more than 2 hours. You should also make sure your monitor, printer and other accessories are plugged into a power strip/surge protector. When these systems are not in use for long periods of time, turn the power strip off to prevent the electronics from drawing power even when they are turned off.

Got any other suggestions for saving on your power bill? Let me know in the comments!

3 Great Products That Help Save On Your Grocery Bill

Groceries in trunk of car.According to the U.S. Bureau of Labor and Statistics, in 2011, the average American family spent $6,458 on food. More than half of that amount went to food purchased from the grocery store. With food prices rising annually, it’s no wonder more people are trying to find creative ways to cut back on grocery store spending. In addition to clipping coupons and avoiding impulse buys, a great way to reduce your grocery bill is to invest in some money-saving products for your home. Here are three that I think might be worth considering:

1. A Food Saver
Food savers are great little machines that preserve your food by vacuum sealing it to keep it fresh longer. This is great for people who often have leftovers or like to buy in bulk. There are several models of food savers out there, ranging anywhere from around $50-$200. Here’s one I found on Walmart’s website for $139.93. It’s not the cheapest out there, but it’s not the most expensive, either. At the time of this writing, the product had 4.5 out of 5 stars review.

2. Window Sill Herb Garden
Fresh herbs are great for cooking, but can be very expensive in the stores. Why not grow your own? Not only will you save money, you’ll add a little green space to your kitchen! Take a look at this one I found on Amazon for only $16.37.

If you want to save even more money, then forget the kit and just make your own! Grab a few small clay pots from the dollar store, fill them with soil and plant some herb seeds. Herbs are notoriously easy to grow, so they require little attention.

3. Deep Freezer
If you’ve got the extra space, owning a deep freezer can be a great investment, as it allows you to store a lot of frozen food. By keeping a large stash of frozen meats, veggies and other food items, you can reduce or eliminate the amount of food you throw away due to it going bad. And even if you don’t have a lot of space to spare, you can find chest freezers that are suited for smaller areas. Here’s one from Home Depot that got fantastic reviews.

Do you have any tried-and-true products that have helped reduce your grocery spending? Feel free to share!

Free or Cheap Ways to Feed Your Crafting Addiction

It can seem inexpensive to make things yourself but a leisurely trip to the craft or fabric store will reveal how pricey these hobbies can be! Thankfully, there are a number of ideas you can use to keep your crafting urges satisfied without having to spend a small fortune.

1. Repurpose material found around the house.

brightly colored pillowcases

Repurposing scrap material can help you save on your crafting costs.

You can find lots of good, quality material at a regular fabric shop or craft store, but if you’re trying to be thrifty, you can actually find a great supply of materials in your own home. Do you have some tablecloths, sheets or clothing that you’re not using anymore? Perhaps you could repurpose the material to create a special, one-of-a-kind blanket, quilt or pillowcase. Here’s one example I found online: A Repurposed T-shirt Quilt.

By the way, don’t limit yourself to only using fabrics for your thrifty crafting adventures. Think outside the box and try to find other materials or objects that could be put to a new use. Here are a few more ideas:

  • Do you collect matchbooks or those cardboard coasters found in bars/restaurants? Why not arrange them in a decorative frame and hang it up in your kitchen or game room, if you have one?
  • Have an old vintage picture frame that you’re not sure what to do with? If the glass is still intact, you can easily convert it to a serving tray or a vanity tray for your bathroom. Martha Stewart has a helpful video tutorial. If the glass is missing, cracked or just not in good shape, don’t worry! There are lots of cool things you can do with an old frame even if it doesn’t have the glass or backing. From a nifty jewelry organizer to a personalized wreath, the sky’s the limit when it comes to creative uses for picture frames.

2. Take advantage of free books, magazines or online resources.

Finding inspiration has never been easier with the widespread use of the Internet. You can find a ton of free tutorials and patterns online (Instructables.com is a favorite) and don’t forget about your local library! You can ask the librarian to help you locate books on just about any subject, from sewing to carpentry to paper crafts and more.

3. Organize a craft swap.

If you have friends, neighbors, co-workers or fellow church members that are as into crafting as you are, you should consider hosting a craft swap. Invite guests to bring some materials that they are willing to trade, be it yarn, paper, glue, paint, fabric or anything else related to crafting. This can be a really fun way to get ideas for projects as well as score some cool materials for practically nothing!

What are some other ideas for free or low cost ways to craft? I’d love to
hear from you!

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How to Use Everyday Items as Art

A Few Free Ways to Enjoy Spring

little girl drawing with sidewalk chalkWith the weather getting warmer and the days getting longer, you might be feeling that urge to get out of the house and play! Even grown ups want to be out and about in the fresh Spring air, even if it means fighting a little pollen and hay fever. But for those of us who are trying to watch our pennies, the temptation to spend money when leaving the house is enough to keep us hunkered down indoors, even though we’d rather be out enjoying the sunshine. The good news is there are a number of free or low cost ways to enjoy springtime.

1. Go to the park.
Public parks are free to enter and are perfect locations for walking, jogging, picnicking and playing. Kids and adults alike can take advantage of this admission-free attraction, enjoying anything from a few games of Frisbee to snapping a few pretty spring-theme photos – after all, this is the perfect time of year to see robins, bluebirds, azaleas, daffodils and lots of other flora and fauna.

2. Check out free festivals.
A lot of cities host annual spring festivals that are free to attend. Here in Wilmington, we have the annual NC Azalea Festival, which draws thousands of people from all over the country. A wildly popular weekend extravaganza, The NC Azalea Festival involves several different events (some of which do require admission fees) from concerts to pageants to home and garden shows and more. The street fair is a free family-friendly event that has arts and craft vendors, food, music and more. Check out what’s happening in your city and you’ll most likely find one or two festivals nearby that offer free events.

3. Host a pot luck barbecue.
Spring is a great time to cook outdoors. The weather’s not too cold, not too hot and the mosquitoes and other pesky insects aren’t coming out in full force just yet (especially if you live in the South). Organize a family barbecue or invite some friends and neighbors. Make it a pot luck dinner, so that everyone can help pitch in on the expense. It’ll not only be a lot of fun, it’ll be a whole lot cheaper than dining out!

4. Start an outdoor exercise routine.
ladies joggingWhether you’ve got a bicycle you haven’t used in a while or you just want to rely on your own two feet, getting outside is a great way to get motivated to exercise. When you’re biking, skating, walking or jogging outdoors, there are fewer distractions and therefore a higher probability that you’ll do the exercise longer. Find out if your city has running/walking trails or simply refer back to #1 and head to your local park. Here in Wilmington, we have a beautiful Cross City Trail that is popular among walkers and joggers. It runs throughout the city, taking you past several scenic areas.

Related Topics

Save Money With A Kitchen Garden
Benefits of Hosting a Clothing Swap

Budgeting Tips for Recent College Grads

Woman driving car

Graduating from college is truly one of life’s milestones. It is just unfortunate that so many young adults take this big step into adulthood without a financial plan. All too often, young grads are caught up in their career path and anticipated new earning power. Typically, instead of figuring out a strategy for the future, they are considering how to spend those first few paychecks. Of course, they should be able to splurge a bit on a few indulgences; after all, they worked hard for their money and deserve a little bit of fun spending. However, this reward syndrome can easily get way out of control.

Learning how to manage their finances is something that young adults must put into practice. It will set them up for a more stable financial future and in these uncertain times that is essential. Considering that so many college grads begin the new chapter of their lives in debt is another reason that developing “financial smarts” is a necessity. A January 2013 report from Forbes.com revealed that the average graduate’s student loan debt was $27,253. That reflects a 58% increase from 2005, when it was $17,233. In light of the saying, “people don’t plan to fail – they fail to plan,” here are some budgeting tips for those new sheepskin recipients:

Establish a Budget
Review your entire situation and your goals for the future. That is, record your salary after taxes and deduct all of your fixed and unfixed expenses, such as rent, insurance, car payments, loan payments, gym memberships, and utilities. Don’t forget to include estimates for groceries, transportation, clothing, entertainment, charitable, and church donations. Finally, after you have an idea of what is left over, if you don’t already have one, open a savings account and start a retirement fund. Do not despair if you can only put a few dollars in each-something is always better than nothing and your salary stands to increase over the years. If you need help getting started, there are several excellent online sites such as budgettracker.com and budgetsimple.com. Just look around for one that appeals to you.

Pay Cash
College grads receive a barrage of “Pre-Approved” unsolicited credit cards in the mail. Don’t let this bombardment of free credit flatter you; relying on credit will put you in dire financial straits in no time. Especially avoid store credit cards. Never fall for the line, “Well, did you know you could save 20% on your total purchase today if you sign up for our store’s credit card?” The fine print on these plans usually uncovers a laundry list of stipulations and steep fees for not paying off the monthly balance in full. You’ve been warned – it’s just not worth it.

Purchase with Care
Before plunking down $125 for that cute purse or snazzy jacket, reflect on how many hours you’d have to put in at work to earn that money. Perhaps it’s not really worth all that, hm? Look for sales and don’t turn your nose up at buying items second hand. Whatever it is, never buy it unless you absolutely love it.

Learn to Cook
A 2012 article in the “Christian Science Monitor” noted the following:

“The average American spends $232 per month eating meals prepared outside the home. With 18.2 meals eaten outside the home in an average month, these meals outside the home costs a person $12.75.”

For many young adults, this figure may be even higher.

Planning menus, buying groceries, preparing your own meals, and brown bagging it for lunch can save the average American close to $3,000 a year! Bet you can think of better ways to spend three grand rather than on soggy fries and a greasy burger!

Learning to cook for yourself has never been easier, thanks to the popularity of TV cooking shows and instructional videos online. The library is another excellent resource and has so many helpful choices for beginning cooks to choose from, such as “The Cook’s Illustrated” series and the “5 Ingredients or Less” cookbooks.

Save on Entertainment
The cost of an average date night looks like this:

$20 – 2 movie tickets
$40 to $80 – dinner for 2-hope no one wants popcorn and a drink, because that will tack on another $20!

Learn to make savvy entertainment choices that will help you stay on your budget. Consider free activities, matinees, and discount coupons. How about a walk on the beach, DVD from the library, and a picnic in the park or home cooked meal? Aren’t the “best things in life” free anyway?

Perhaps the most important thing for new college graduates to realize is that their former academic advisers will not be replaced by a team of consultants ready to lead them into life in the “real world.” Getting on the road to financial freedom is 100% up to them!

Vegetable Gardening on a Budget

boy planting in gardenPlanting a summer vegetable garden is a rewarding project that gives back ten-fold. It’s a great way to improve your diet and get a little exercise in the process. If you’re short on garden space, no worries – container gardening on a porch, deck or patio is even easier. Don’t be fooled into thinking that you’ll have to drop a bale of cash at the local garden center. Although it will no doubt be a frequent stop, there are other more affordable ways to plant a thriving vegetable garden.

Second Hand Tools
Before going into debt for a collection of shiny new tools, take a look around the second hand shops. Consider also that yard sales, craigslist, and Freecycle, are excellent places to find gently used rakes, trowels, pruning shears, hoes, and maybe even a fetching garden hat.

Read Up Before You Buy
Avoid the temptation of purchasing those cute little starter pots of tomatoes, peppers, and zucchini. First, make a list of what you’d like to grow and then read up on what it takes. Check into which zone you are in, how much sun, water, and attention each variety demands, and if there are any native pests, including Bambi and Thumper. Next, revise your list.

Start Small with Seeds
It is much more economical to begin your garden with seeds rather than plants. If you start the process early enough, you can save quite a bit of money. Seeds are usually planted indoors to keep them out of harsh winter weather. All you need is some potting mix and something small to sprout them in. Old take out containers and egg cartons work really well.

Plot Preparation
Instead of buying several cubic feet of bagged soil from the garden center, explore other options. Individuals often have “fill dirt” for sale at a fraction of the cost that can be mixed with compost and peat moss. Have you been composting? Here’s the chance to put it to work! Before creating your own soil blend, read up and confirm that your ingredients will be beneficial to your veggies, that is-check for nitrogen and drainage requirements.

Divide and Conquer Creatively
Whether you are planting in raised beds or rows, there are all sorts of creative ways to divide up the plot. For example, look for second hand treated timber, old window frames, used bricks, and ladders. A wonderful resource book for inspiration is; “Square Foot Gardening” by Mel Bartholomew.

Another way to have a stress free garden is with the new “Topsy Turvy” containers. These cool hanging planters keep peppers, tomatoes, and strawberries in the sun and away from plant fungi and pests.

Community Gardens
A new trend that has really taken off is that of community gardens. Many towns throughout the U.S. have recognized the many benefits of gardening and are making it accessible to those who don’t have the space or know how for a home plot of their own. Often, land is donated, a water source is designated, and participants pay a small fee for the plot preparation and plantings. Typically, spots are assigned to individuals and they are then responsible for the upkeep of their little garden space. It is a very pleasant way to get started and provides a wonderful social outlet. Plus, novice gardeners are bound to benefit from seasoned green thumbs! Your local Agricultural Extension Service should have information on any such activities.

Window Sill Gardens
If this all sounds like too much too soon – no worries! A window sill herb garden is small on care, but big on return. Imagine…potatoes with parsley, pasta with pesto, grilled salmon with dill, lemon balm tea, fresh mint for Mojitos, rosemary focaccia….yum!

The Return of the Local Barter System

local barter system

At the monthly Port City Swappers meetings, attendees can “bid” for homegrown, homemade or foraged items.

Before the days of paper bills and metal coins, civilized people relied on a barter system to obtain goods and services. It usually started out with people who specialized in a certain trade offering their surplus items in exchange for the goods or services they needed. A shepherd, for example, might have taken his surplus wool to market in the hopes that he could trade it for something like produce, meat or raw materials.

Today, the world is a very different place. Having a common currency allows a lot more freedom for consumers to purchase the goods and services they want without having to produce something to exchange. However, a small revival of the barter system seems to be taking place – at least on the local level. Neighborhood “swaps” have become popular again, allowing locals the chance to trade their homemade goods among one another. These swaps seem to have sprung up around the “green” movement, which has made eco-friendly and organic gardening en vogue. But these swaps don’t strictly stick to fruits and veggies. In some swaps, you can find anything from homemade soaps to fresh baked cookies. These local swaps seem to be more about nurturing community spirit and discouraging reliance on the big chain stores, rather than focusing on a particular type of goods.

One noteworthy swap organization located in Wilmington, N.C., is Port City Swappers. They organize a local swap meet every month and invite people of the community to bring their homemade goods to trade with others. According to their information page on Facebook, “swaps allow direct trades to take place between attendees, e.g. a loaf of bread for a jar of pickles or a half-dozen backyard eggs.”

As with most local swaps, there are a few rules. For Port City Swappers, the goods must be homemade, home grown or foraged. Also, participants in the swaps adhere to an honor system in which the swappers are expected to bring goods that have been grown, handled and prepared in safe and hygienic manner. Naturally, there’s no way to prove that swappers have taken the necessary food safety precautions, so swappers must go with the understanding that they swap at their own risk.

Port City SwappersWith the Port City Swappers, no cash is exchanged and no goods are sold. Attendees are allowed to bring as much or as little as they want. The swaps last about 2 hours with the first half hour devoted to signing in and setting up. Swappers then fill out name tags and their “swap sheets,” which are sheets of paper for each item to be traded. On these sheets, other swappers write down what they would offer in exchange the item, much like a silent auction. The final half hour of the swap is when the trading actually takes place. The attendees go back to their original swap sheets and look at the offers. They then find the person they want to swap with and go from there.

Wilmington’s not the only place these neighborhood swaps are happening. Communities across the country are becoming more interested in local trading, and not just with food. Some swaps encourage people to bring gently used clothing, furniture, even arts and crafts supplies. These swaps can be great for finding useful items, delicious food and a whole lot more. Not to mention they can also help you save money!

Are there any local swaps in your area? Let us know in the comments!

Low Cost Health Food

grandfather and kids making saladThe obesity crisis in America not only drains the health care system, it also prevents millions of individuals from experiencing the highest quality of life possible. A Gallup poll in 2012 revealed that more than one in four Americans is classified as obese. This problem encompasses all ages, races, sexes, and socio-economic groups. It is no secret that the combination of a poor diet and lack of exercise are the root causes of this epidemic. Even for those not suffering from a weight problem, dining on healthy fare should be a goal, because it is simply the right thing to do. Take it from the “Father of Medicine” – Hippocrates: “Let food be thy medicine and medicine be thy food.”
Many often make the excuse that eating healthy is just too expensive. Here are some suggestions that dispel that rumor!

Affordable Organic
No this is not an oxymoron. Now more than ever, it is easier to find locally grown and organic produce. It is still taking some time for supply to keep up with the demand, however, taking the time to seek out produce that is both local and organic should yield some positive results.

Choose Carefully
The idea of a more plant-based diet has really taken off in the past few years with bestsellers like, “Food Matters” and “Forks Over Knives.” Incorporating more fruits, vegetables and whole grains into the diet is always going to be beneficial. If those products are organic – great; however, if that is not a cost-effective option, don’t worry. It is still far better to include them in your diet, organic or not. The annually updated food lists from the Environmental Working Group, known as the “Dirty Dozen” and the “Clean Fifteen,” are helpful resources for making wise choices.

Buy Bulk
The whole foods healthy basics are super cheap, especially when you buy in bulk. Be aware that many of these items keep longer in the refrigerator or freezer, so free up some space. Healthy bulk item suggestions are: brown rice, oatmeal, steel cut oats, quinoa, dry beans, raw nuts and seeds, stone ground grits, cornmeal, flours, dried fruits, and even pasta.

Skip Soft Drinks
Despite the fact that soda has been linked to obesity, diabetes, dental health problems and other health risks, Americans continue to consume sugary carbonated beverages. A recent Gallup poll revealed that 48% of Americans drink soda on a daily basis. A March 2013 article in the Huffington Post reported that sugary drinks are associated with 180,000 deaths around the world:

“As many as 180,000 deaths around the world are linked with sugary drink consumption, according to new research presented at a meeting of the American Heart Association.

Specifically, sugar-sweetened drinks — including sodas, sports drinks and fruit drinks — are linked with 133,000 deaths from diabetes, 6,000 deaths from cancer, and 44,000 deaths from heart disease.”

Why then would anyone pursuing a healthy lifestyle waste money on this liquid poison? Make your own soda with real fruit juice and seltzer water. It’s healthy, natural, fizzy, tastes incredibly better than the artificial stuff, and beats soda every time in terms of a common sense alternative!

Join a Farmer’s Cooperative
In many communities, farmers’ cooperatives exist. They provide the chance for members to buy direct and sell weekly or monthly food boxes of a combination of in-season items. Some may even offer baked goods, dairy products, eggs, seafood and meats. They are all independent and operate differently. That is, some may require a small start up fee in the winter to pay for seeds and plants; others may ask that you pick up, while some may deliver. Your local Agricultural Extension Service should be able to direct you to such an organization.

Grow Your Own-Make Your Own
The rewards of growing your own fruits, veggies, and herbs are priceless. Not only is it an excellent learning opportunity, it gets you outside and is a productive and healthy way to spend a little time. Of course not everyone has a sunny spot for a home garden, which is why growing herbs inside is a nice option.

Learning to make your own food products is another step on the path to maintaining a healthy diet on a budget. Cookbooks from the library and millions of YouTube videos will amp up your cooking skills in no time! Freezing, canning, and using inexpensive appliances such as a slow cooker and dehydrator, allow a home cook to save hundreds of dollars each year – think soups, stews, kale chips, jerky, dog treats, power bars, and so on. Additionally, your end product will be free of bad ingredients and tailor made to suit the tastes of your family!

Here’s a fun idea: With summer fast approaching, why not try making your own popsicles? Read the ingredients in the ones at the super market in case you need a little incentive! Invest in some sturdy molds and blend up some fresh fruit choices like mango orange, pineapple banana, watermelon lime, cinnamon peach, coconut, and homemade fudgesicles – a definite favorite!

How to Save on Your Media Addictions

woman-on-laptopAre you someone who likes to keep up with the latest in music, sports, fashion, and film? Regardless of your interests, chances are that from time to time you invest in CDs, DVDs, books, and magazines that extend your enjoyment of those favorites. When it’s all said and done, it is very easy to spend a small fortune on any one of those types of items. Then for some reason we hang on to them longer than necessary, because, come on, “We paid good money for those.” In the ongoing quest to save and use “good cents,” let’s examine a few ways to cut way back on media purchases.

The Swap Shop
You can get your friends and neighbors together and swap just about anything! The idea is to bring your gently used mags, CDs, DVDs, etc. and swap them one on one. So, the more you bring, the more new to you things you can take home. And let’s face it, how many times do you really want to watch that samurai movie, or “Pretty in Pink”? It is possible to do a genre themed swap as well. For example, children’s books and DVDs, mystery paperbacks, home improvement magazines, jazz music-really, the sky is the limit.

There are community swaps in some towns and cities that take place monthly. Keep an eye out on activity calendar message boards and places like craigslist for details on these types of exchanges.

The Library
Hands down, that library card is worth its weight in diamond-encrusted platinum! Where else can you have access to thousands of books, magazines, DVDs, and CDs? Nowhere! Try burning a CD to your I-tunes account and returning it to the music store! Lots of libraries also allow patrons to check out magazines that are one month old and many now have mp3 players pre-loaded with audio books. You just supply a AAA battery and your headphones. Wonder what would Andrew Carnegie think about all of that?
Library sales are another excellent way to save hundreds and support a great institution.

Second Hand
Poking around second hand shops, used book stores, and yard sales is ideal for finding some wonderful music, gently used books and DVDs. For those vinyl collectors out there, finding the perfect used venue is equivalent to finding buried treasure. Sellers also advertise these items on eBay and craigslist for very reasonable prices.

Cyber-Space
Yes! There are sites that allow the legal download of some things for free! The Huffington Post has the list of 35 of those sites here.

There are numerous sites that allow users to download audio books for free. A quick Internet search is all you need to get started.

If you take the time to peruse the iTunes Store, you’d be surprised how many free and deeply discounted songs, movies, TV shows, and podcasts there are. Often, there are free previews to stream prior to a release, along with season passes on some premium cable network shows.

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Can You Save Money by Living in a Hotel?

Today’s post is from Good Cents Savings guest blogger, Steph Medeiros

hotel signAs the nation continues to work toward economic stability, more and more people are finding unique ways to save money. From “extreme couponing” to “dumpster diving,” people seem to be finding some pretty interesting money-saving strategies. One of the latest financially-conscious trends to gain popularity is hotel residency, where a person gives up traditional housing to live in a hotel full-time.

For some folks, the idea of living in a hotel sounds crazy. For others, it’s a great way to enjoy lots of cool amenities, free yourself from the burdens of home ownership and, perhaps most importantly, save money. But are the savings really worth it? After all, hotel rates aren’t cheap, and, like renting, living in a hotel provides no long-term financial gain. There’s no way to build equity, you can’t sell the property and there’s no interest to deduct from your taxes. But hotel living does offer other financial benefits. Depending on your personal situation, it could be worth looking into.

The biggest draw to hotel life isn’t so much the long term financial benefit, but the low-maintenance lifestyle and all-inclusive bill. Here’s how it usually works: A hotel manager/owner agrees to allow a guest to stay in the property full-time, usually for a steeply discounted nightly rate. Because hotels base their revenue on occupancy, having a guaranteed occupied room every night of the year can be beneficial. For the occupant, the rate they pay usually includes all their needed utilities like cable, WiFi, phone, electricity, water – basically anything that the hotel would typically offer a nightly guest. Additionally, their rate includes access to other services and amenities offered through the hotel such as housekeeping, 24-hr. maintenance, breakfast and more.

There are also tax benefits associated with this type of lifestyle. Once you establish official residency at a hotel, you may no longer be required to pay the associated hotel taxes on your nightly rate. So if your nightly rate is $50, that’s the price you pay. Of course, this might not apply in all states and there may still be other fees or taxes associated with your rate, but it never hurts to crunch the numbers to see if the option will work for you.

Let’s use some numbers as an example:

Several years ago, I worked in a fairly upscale hotel that specialized in long-term stays. During my time there, we had two guests that chose to live there full-time, one of which stayed with us for more than three years. Their nightly rate (which was negotiated with the hotel manager) was around $35. Our usual rates varied anywhere between $129 and $189 per night, so this was a very sharp discount.

[Read more...]

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