Living in a major metro is tons of fun, but it can definitely cost you (while making it really hard to build up your emergency fund). From paying sky-high rent prices to feeling pressured to attend expensive events, it’s way too easy to spend your hard-earned cash without even realizing it. Love living in a happening place? We feel you! Here are 10 ways to save money while fully enjoying your urban lifestyle.
1. Make and stick to a budget. Before you can start to save money, you’ll need to have a clear picture of what you earn and how much you hope to save. To strike it right, make note of your monthly salary (after taxes), any recurring costs (like rent, utilities, and transportation), and your savings goals. Then, budget how much money you can allocate toward the things you love to do, such as shopping, dining out, and drinks. Though apps like Mint (iOS, free) can help you with this, we’re big fans of this handy spreadsheet — it’ll force you to keep track of absolutely everything.
2. Be wise about your wardrobe. You might be tempted to spend on the latest trends, but you can save a solid amount of cash by wisely designing your wardrobe. Rather than shopping for pieces you’ll wear once or twice, fill up your drawers with core staples that’ll last you for years to come — think neutral sweaters, tailored pants, flattering dresses, and a crisp, versatile coat. Though your initial shopping costs may be higher, the cost per wear for each item will be significantly less and save you money in the long run.
To incorporate a few standout pieces every now and then, consider a service like Rent the Runway unlimited — a fixed monthly fee will let you rotate new looks in and out, whenever you want. Living in the city also means you have access to heaps of thrift shops, unique boutiques, and sample sales, so scour these places for lesser-priced trend finds.
3. Buy in bulk — online. It’s hard to stock up if you don’t have a car (and stopping at the drugstore for one-off items adds up), so do your best to shop for the things you always need in bulk online. To save even more, look for discount codes that’ll score you even greater savings, such as weekly savings with Target’s Cartwheel app (iOS, free).
4. Reconsider your transportation options. Hailing an Uber when you’re rushing can save you time, but it’ll cost you hard-earned cash. Instead of spending extra money when you don’t really need to, make time to take public transit or a cheaper ride-sharing option, like Uber Express Pool or Lyft Line. Is it possible to walk to your destination? Go for it! You’ll sneak in some extra steps and score some time outside. If you have a car, remember that paying to park can cost more than a bus or metro ride — in addition to being a bigger expense, it can also be a huge hassle.
5. Bring your own coffee. Buying $3 cups of coffee and $5 lattes might not seem like they cost much at the moment, but add up how much you spend on all things mocha at the end of the month, and you’ll see exactly how much you can save by bringing your own wherever you go. Well-known spots like Peet’s and Starbucks also offer lower-priced refills, so be sure to ask for one if you’d like a bit more bang for your buck before you go. Last, use loyalty apps whenever you can to earn points, stars, and rewards for each dollar you spend. Did you know that you can use a Starbucks reward on a meal, rather than just a cup of coffee? It’s true.
6. Look for fun, free events. One of the best things about living in the city is the awesome, free events that happen all the time. From admission-free days at your favorite museums to gallery openings, pop-up shop experiences, parades, festivals, and more, make it a point to actively look for local things do to. Nothing on the calendar? Heading to your favorite park with your friends costs literally nothing.
7. Hit up happy hour. Dining out can cause your wallet to take a legit hit, so make it a point to look for local deals and happy hours where you can have fun with your S.O. or BFFs while dropping less cash than you normally would. Both Groupon and Gilt City are great places to search for dining deals. Do you order in often with your roomies or neighbors? Consider a service like Postmates Unlimited to slash delivery fees on orders that meet a certain minimum. Boom.
9. Yes, bring the party home! You heard us, girl — go ahead and bring the party home. Host a potluck girls’ night, game night, or another fun get together; rather than spending heaps of money on cocktails or pricey entrees, you’ll enjoy taste testing and sipping on whatever each of your guests brings.
10. Cut fitness costs. A gym membership or subscription to Classpass is a worthy expense, but you might be able to cut your costs by downgrading your plan and squeezing in a few free, outdoor workouts. Do you live in a city with hills, like San Francisco? Head out for some urban hiking. Are you based near the water? Make the most of warm weather by paddle boarding, kayaking, and swimming. If all else fails, treat yourself to a long walk. It all counts.
How do you save money while living in the city? Tell us your tips on Twitter @BritandCo.
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(Photo via Getty)
Welcome to Selfmade Finance School, our new money series with Block Advisors to help small business owners with their tax, bookkeeping, and payroll needs year-round. This week, we explore the tax implications of bringing family members into your business.
The question for today is this: Does hiring your family members make sense for your business? Let me be clear. This is not a piece about whether hiring your family members makes sense for your relationships with those family members. As someone who is part of a family business, I could fill up a lot more than 600 words on my opinions about that. For today's purposes, we focus on whether it makes sense from an overall "good business and tax implication" perspective. As it turns out, there is a decent amount of tax nuance when it comes to employing your family. Let's break it down based on relationship to the employee:
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Spouses Who Are In Business Together
Personally, if I had to be in business with my husband, it would not go well. However, many couples build viable, strong businesses together and I say, good for them! Depending on how you have your business entity structured, it will make a big difference on the tax treatment of you and your spouse working as partners. Because a business jointly owned and operated by a married couple is generally treated as a partnership for Federal tax purposes, the spouses must comply with filing and record keeping requirements imposed on partnerships and their partners. The election to file two Schedule C (Form 1040) forms, (one for each spouse) permits certain married co-owners to avoid filing partnership returns, provided that each spouse separately reports a share of all the businesses' items of income, gain, loss, deduction, and credit. Under the election, both spouses will be subject to self-employment tax and on net earnings from self-employment and receive credit for Social Security earnings.
One Spouse Employs Another
If you have a dynamic where your spouse is an employee of your business, then your spouse's wages are subject to income tax withholding, Social Security and Medicare taxes. If you are self-employed (not a corporation or a partnership), your spouse's pay does not have to be included in your federal unemployment tax account (FUTA) contributions and payments. However, if your business is a corporation or a partnership you must include that spouse's pay in your unemployment tax contribution calculation.
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You Employ Your Child
First, let's be clear. I work in my family business, but I am an adult, so I am treated just like a normal employee. However, if you, for example, run a family restaurant and want to hire your children under 18 to work for you, there are some tax benefits. But first, you should check with your state for rules on how many hours minors can work (in non-agricultural jobs) and reference the Fair Labor Standards Act for information on limitations on the kinds of work children can perform.
"This is an often overlooked or under-utilized strategy. Paying your children for true services they provide in your business can be a powerful tax-saving tool," says Cathi Reed, Block Advisors Regional Director. "If you are a sole-proprietorship or single member LLC, and the child is less than 18 years of age, the business is not required to withhold FICA or payroll taxes. The child can use his or her standard deduction against income you pay."
You Hire Your Parent
Oh dear. If you are brave enough to do this, know that you will need to pay Social Security and Medicare taxes on your parent's wages and make the appropriate withholdings, but you don't have to pay unemployment taxes. Now all you have to do is convince your parent that you are the boss. Have fun with that!
Is Hiring Family Members Worth It For The Tax Benefits?
"There are some positive tax advantages to hiring family members. It's important to treat a family member like any other employee. Hiring your children can result in substantial savings for businesses. Make sure your child has real, age-appropriate work to do and a reasonable pay rate, comparable to other employees. Consult with a Block Advisors small business certified tax pro to ensure that you are complying with all requirements," advises Reed. "Block Advisors, a team within H&R Block, is dedicated to meeting the tax, bookkeeping and payroll needs of small business owners year-round. To start working with the tax experts at Block Advisors, visit blockadvisors.com."
In my opinion, you should not hire a family member solely because of the tax benefits. You should always hire based on whether that person is right for the job and keep in mind how this hire could materially impact your relationship with that person and others in your family. Finally, as I mentioned, make sure you have a tax professional on your team when making these determinations. As you can see, things can get a little tricky!
*All details were sourced from IRS.gov and blockadvisors.com
The opinions expressed in this commentary are those of the author and may not necessarily reflect those held by Kestra Investment Services, LLC or Kestra Advisory Services, LLC. This is for general information only and is not intended to provide specific investment advice or recommendations for any individual. It is suggested that you consult your financial professional, attorney, or tax advisor with regards to your individual situation. Comments concerning the past performance are not intended to be forward looking and should not be viewed as an indication of future results. Securities offered through Kestra Investment Services, LLC (Kestra IS), member FINRA/SIPC. Investment advisory services offered through Kestra Advisory Services, LLC (Kestra AS), an affiliate of Kestra IS. O'Keeffe Financial Partners and any other entity listed herein is not affiliated with Kestra IS or Kestra AS Investor Disclosures: https://bit.ly/KF-Disclosures