HOUSEHOLDS that stick to lockdown saving habits could save more than £8,000 by the end of the year, new research has found.

According to money.co.uk, 71 per cent of families have saved money during the 13 weeks of quarantine, with an average of £2,879, or £221.50 each week.

⚠️ Read our coronavirus live blog for the latest news updates

Of course, many families have also experienced an income shock, with job losses on the rise and millions unable to work due to lockdown restrictions.

But others have not experienced a drop in wages and may have even been able to save up extra cash.

Money.co.uk has created a online saving calculator which shows how households can continue to save even as the UK returns to normal, helping you to makeover your finances.

It asks questions such as how much you spent on new clothes, cigarettes, dining out and cosmetics each month both before and during lockdown.

It also asks the difference in your monthly spending on essentials such as car costs, bills and regular payments such as gym memberships.

It then asks whether you plan to go back to spending what you were spending before on all the items, or to work out how much you might want to cut back.

The calculator then gives you an idea of how much you might be able to save – so if you wanted to save £8,000 by the end of December, you’d have to continue to put aside the same average amount of £221.50 each week for the rest of the year.

Don’t miss the latest news and figures – and essential advice for you and your family.

To receive The Sun’s Coronavirus newsletter in your inbox every tea time, sign up here.

To follow us on Facebook, simply ‘Like’ our Coronavirus page.

Get Britain’s best-selling newspaper delivered to your smartphone or tablet each day – find out more.

Salman Haqqi, personal finance expert at money.co.uk, said: “During lockdown, many people have cut back on their spending on non-essential items. 

“The savings have been largely made by households cutting back on the amount of cash they spend on items like alcohol, cigarettes, clothes, make-up, cosmetics and grooming products, meals out, haircuts and beauty treatments, plus shop bought lunches and takeaway coffees.

“They’ve also spent less because many are not having to use their car to travel to work and have also cut back on other outgoings like sports and gym memberships.”

According to money.co.uk, spending has varied slightly depending on where you live in the UK.

Londoners have saved the most on alcohol and clothes during the lockdown with an average saving of £39 per week on booze and an average saving of £44 on buying clothes during the last 13 weeks.

Outside London, the Welsh have saved most on cosmetics, perfume and male grooming products during lockdown – an average of £21.46 per week.

Those living in the West Midlands have saved the most on eating out during lockdown – with an average saving of £36.38 per week.

And those living in the North East have saved most on not running their cars during lockdown – an average saving of £37.69 per week.

If you are looking to save money over the next few weeks there are plenty of tools which might be able to help you.

Some people’s energy bills have risen as a result of having to spend more time at home, and it is always worth checking to see if you can get a better deal.

You can check comparison sites such as Uswitch or use an automatic switching service like Switchcraft to find a cheaper tariff.

It is also worth taking simple steps such checking through your direct debits in case you are paying for something that you no longer use.

The Money Advice Service and MoneySavingExpert both have good guides on how you can set up your own budget.

And check that you are receiving all the benefits you are entitled to.

You could be missing out on thousands of pounds, as we revealed in our guide to the best tools to check. 

A separate study of 2,000 adults found one third have been putting extra money aside – an average of £459 – since lockdown began.

Meanwhile, this new money-saving app promises to save you up to £1,500 a year by giving personalised saving ideas.

And here are some tips to get on top of your utility bills.

So you’ve been trying to think of passive income ideas. And why not? It’s practically the American dream. We all want to lie in a hammock and make money without actually doing anything.

Unfortunately, unless you come into an inheritance or grow up with a trust fund, you’re probably going to have to do something to generate a regular paycheck.

[See: 35 Ways to Save Money.]

Still, if you’re industrious and innovative, you may be able to come up with some strategies that allow you to make money when you aren’t actually working. To see what we mean, take a look at these ideas for creating passive income streams.

— Rent out a room.

— Affiliate marketing.

— Create an online course.

— Rent your old home.

— Write a book.

— Start an e-commerce business.

— Become a business partner.

— Design T-shirts.

— Invest in your retirement.

— Create YouTube videos.

Rent Out a Room

“A large percentage of Americans are finding themselves in financial straits and out of work amid the pandemic,” says Wendi Burkhardt, CEO of Silvernest.com, a home-sharing website. “However, many own a home that they can leverage as an asset to generate passive income by renting out spare rooms to long-term housemates.”

She adds that a lot of empty nesters and retirees have “spare rooms gathering dust. Estimates show that they can earn an average of $10,000 a year to put toward mortgage payments, living expenses and retirement savings.”

Burkhardt cautions, though, that if you’re going to share your home with a boarder these days, you’ll need to do it carefully. Obviously, you wouldn’t want to bring into your home somebody who eschews mask-wearing in public and isn’t taking the virus seriously.

Affiliate Marketing

Hamna Amjad is an outreach consultant at Smith Thompson, a company based in Plano, Texas, that specializes in home security and home automation.

But in Amjad’s spare time, she has built a blog that can be found at Disruptionltd.com, where she promotes products and services of other companies, “known as affiliates,” Amjad says. “When someone uses my affiliate link to purchase a product or sign up for a service, I get paid. The best thing about it is that you can have any type of website and find affiliates in your niche. You don’t even need to have a website to earn via affiliate marketing — you can do it using social media, podcasts and other platforms as well.”

Don’t expect to get rich off this, but any extra money should help. And Amjad, who currently makes around $100 to $150 a month but made much less early on, suggests not making your website, whether it’s a blog or a website that specializes in reviews and recommendations, too promotional. Because if readers sense that your website is all about making you rich, that isn’t much incentive for people to stick around for long.

[SEE: 10 Best Apps for Saving Money.]

Create an Online Course

This is Amjad’s next goal.

“It takes a lot of effort to develop a valuable course, but once you have done it, you’ll earn money whenever there is a sale,” she says. “Besides an online course, you can work on e-books, online instruction guides or any other digital products. Whatever product you choose, it should solve a problem or provide a service. Once you create it, you can sell it over and over and build a continuous revenue stream.”

Rent Your Old Home

Yes, buying an apartment or rental home requires a significant down payment, but if you can buy a property — or move into a new house and rent your old one instead of selling it — that can be a very solid passive income.

Alex Willen is an entrepreneur in San Diego, though for many years he was a product manager for several companies. But now he has a lot of passive income streams. He owns a few apartments in the San Francisco area, and he says that because he employs a full-time property manager, “those are almost entirely passive. … I only get involved if there’s a major expense or issue, and thankfully those are rare. The income fluctuates a bit depending on when recurring expenses come in, but the revenue is reliable every month.”

He says that he has taken a slight hit in that passive income, though, due to a tenant not being able to pay in full lately due to the coronavirus.

And, of course, the great thing about having some passive income streams is that the money allows you to make money in other passive ways.

Write a Book

Willen has written a couple of short books and self-published them on Amazon. One of those books, for instance, is called “Buying Small Apartment Buildings: Become a Successful Real Estate Investor by Owning Duplexes, Triplexes and Quads.”

Obviously, that’s a topic he knows something about.

“In total they bring in about $150 to 200 a month, and I spend $20 to $30 in Amazon ads,” Willen says of the two books. “They’re truly passive; I do nothing whatsoever with either.”

Create a Product

Again, like buying an apartment or writing a book, this isn’t a simple task that you’ll want to attempt tonight after dinner. But it is a classic example of a passive income stream. In fact, Willen recently started a frozen dog treat business called Cooper’s Treats.

“I’m currently in the early phase of doing all the production and logistics myself because sales numbers are still relatively small, but they’re ramping up quickly,” Willen says. “Soon I should be able to move production and logistics to a third-party manufacturer and a third-party logistics company. Once those are taken care of, I’ll hire a (virtual assistant) to handle customer support and basic marketing — mostly updating social media — and from there it should be almost entirely passive.”

Become a Business Partner

If you have money to invest, you could invest it in a business. This really only works if things happen to line up well, but just to put the idea in your head — do you have any friends or family members who you believe are extremely competent and ambitious and who happen to be looking to start a business? And maybe they don’t have much money, but you do?

You could consider going into business with them — but you’d be the one with the deep pockets, and your partner would be the one exerting all or most of the energy and time to run the business.

You could come up with an equitable and fair way to split the profits, and as long as the business is a success, you’d have a passive income.

[READ: A Guide to Launching Your Side Business.]

Design T-shirts

If art is your thing, there are a lot of companies out there that will help you sell your T-shirt designs. Spreadshirt, Designhill, Zazzle and Cafepress are a handful. Some websites charge fees to sell your designs; most don’t. Generally, these companies take care of the marketing and shipping of T-shirts; if your design is bought, you’ll receive a commission, usually around 10% to 15%. It may not make you a fortune, but once you’ve uploaded your design, anything you make from a sale is a passive income stream.

Invest in Your Retirement

If you’re starting to get discouraged because you don’t have any great ideas for frozen dog treats and don’t exactly have the money to start a business or buy an apartment, keep in mind that every time you put money into your retirement portfolio, you’re hopefully passively making money.

A lot of investors will tell you to put your money into dividend-producing stocks versus, say, a certificate of deposit or an interest-bearing savings account, since the interest is likely to be so low. But you may want to stick with an IRA or a 401(k). The point is, while investing in your retirement accounts may not help you pay the bills right now, it will help you pay the bills in the future.

Create YouTube Videos

The nice thing about this idea is that even if you make next to nothing, you’ll probably have fun doing it. Meanwhile, your friends and family will probably enjoy watching them.

Ryan Scribner, a resident of Saratoga Springs, New York, is a good example of what you could become — but probably not representative of what most YouTubers make.

He started a YouTube channel in 2017 and between that and a personal finance blog, “Investing Simple,” that he co-owns, he says he makes around $50,000 a month. He now has writers who create content for the blog, and he uploads a video a week. He estimates he works 15 hours a week, and in 2019, he made a little over half a million dollars.

All of that said, Scribner says, “It took a lot of work to get this up and running. In the first few months of operating this channel, I earned less than $40. In fact, I actually calculated my hourly rate and it was around 17 cents per hour.”

So, these aren’t get-rich-quick ideas, but more along the lines of get-rich-slowly ideas. But better slow than never, and so now might be as good a time as any to buy a hammock and start thinking of passive income ideas and ways to get rich while (mostly) not working.

More from U.S. News

6 Ways to Treat Yourself on a Budget

10 Steps to Achieve Financial Freedom

25 Ways to Fix Your Finances Fast

10 Ways to Build a Passive Income Stream originally appeared on usnews.com

An acronym for You Need a Budget, the YNAB app will automatically sync to your accounts if you wish or—for folks suspicious of sharing financial information—you can provide the current total of your bank account for an unlinked option (this method requires manual entry of income and expenses). The app works by prompting users to follow four rules:

Give every dollar a job, meaning to assign every dollar to a specific category when you receive it instead of after spending it.

Embrace your true expenses, which encourages users to put money aside for non-monthly expenses, like property taxes or holiday gifts.

Roll with the punches. This rule for emergency savings prompts you to move money from less essential categories, like a vacation, to fund emergency expenses, like a car repair.

Age your money. Instead of spending your entire monthly income, set some aside for next month’s bills so that you can begin to get ahead in your expenditures.

YNAB costs $11.99 monthly or $83.99 yearly (at $6.99 per month) with the first month free. Sounds pricy but the app claims to help users save up to $600 in their first two months!

istockphoto.com

Chicagoland, July 13, 2020 (GLOBE NEWSWIRE) — Billinero, an app-based savings account, was recently launched to motivate Americans to develop good savings habits because it includes an added incentive of winning cash prizes. The app, which makes saving quick and convenient, has awarded $51,000 to its users since launching last summer.

“We’ve presented checks to a healthcare worker, a frontline healthcare worker, a U.S. Marine Veteran, a newlywed couple who never got to take a honeymoon, and small business owners, to name a few,” explained Chris Campbell, Executive Vice President of Billinero. “It’s been rewarding to see people’s lives change as a result of using their Billinero accounts to save for the chance to win cash prizes.”

In addition to its winners, Billinero has also helped many Americans build a nest egg they may not have had otherwise, by enticing them to save for the chance to win cash. Joe Rado, Billinero’s most recent $10,000 winner, said he began using Billinero as a savings account for his 5-year-old son. 

“I’m saving around $100 a month for my son’s future and I’m not even missing it,” Rado explained. “By saving $25 a week—the equivalent of one or two lunches or a to-go cup of coffee—I’ll be able to save about $1,300 a year. I’m slowly building a savings account and earning chances to win cash.”

The app, powered by Centier Bank, an FDIC-insured financial institution in the Midwest, was designed with the idea that a little bit of savings can add up quickly. But, unlike traditional savings accounts, Billinero awards $1,000 and at least $10,000 in monthly and quarterly drawings, respectively.

Billinero users earn a chance to win cash with each qualifying deposit into their Billinero account which creates an entry into the cash drawings.

“Users are seeing how quickly small deposits add up—saving upwards of hundreds of dollars in a given month by creating the habit of saving,” Campbell said. “Much like lifestyle apps that help you lose weight or stay active, Billinero is designed to help users hit their financial goals.”

Billinero’s next $1,000 monthly drawing is happening on Aug. 1, 2020, and its next quarterly drawing of at least $10,000 is happening on Oct. 1, 2020. Users can start making qualifying deposits into their accounts as soon as the account is open in order to gain entries into the drawings.

For more information about Billinero, including Official Rules, go to billinero.com/.

###

About Billinero™
Billinero™ is a mobile application that was launched in August 2019 by Centier Bank. The digital-only, prize-linked savings account has a game-like approach, offering savings account customers the opportunity to win cash prizes of $1,000 monthly and at least $10,000 quarterly at no fee while also increasing their financial savings. The application is currently available to users who reside in Arkansas, Connecticut, Illinois, Indiana, Kansas, Michigan, Minnesota, Missouri, Nebraska, Oregon, South Carolina, or Virginia. For more information on Billinero™, including Official Rules, go to billinero.com. Member FDIC.

Attachment

• Billinero_Savings_App_Cash_Prizes_Download

Jessica Cantarelli
Billinero
219-755-6140 x 1840
pr@billinero.com

Millions of students around the country are getting ready to head back to college this fall.

For some, that means opening up Zoom or Google Meet again. And for others, it means returning back to the campus they abruptly left in the spring due to COVID-19 closures.

Regardless, it’s a different world than we knew before. Unfortunately, millions of Americans’ have lost their jobs as a result of the pandemic, putting many families in a dramatically different financial situation than before.

This unexpected hardship is causing many families to reconsider their higher education options as college costs are becoming increasingly hard to afford.

If you are facing financial difficulties and struggling with returning to school, here are eight ways to help get the situation back under control.

1. Appeal your FAFSA application

The FAFSA application reflects your family’s financial situation from the tax year two years prior, so the aid you were originally awarded might not fit your current financial situation. If that’s the case, you will likely want to appeal your application to have your aid adjusted.

To do this, make sure you update your FAFSA application to accurately reflect your current financial situation. After that, you will need to contact the school you plan to attend to further discuss the special circumstances that are affecting your family’s ability to pay.

This may require writing an appeal letter and providing documentation to support your appeal. This could be a letter of unemployment or a medical bill. Ultimately, the decision is up to your school and cannot be appealed to the Education Department.

Currently, the U.S. The Department of Education has suspended all federal student loan payments until Sept. 30, 2020 under the CARES Act. Additionally, the deadline for federal FAFSA applications for the 2020-2021 school year has been extended until June 30, 2021. However, deadlines vary between states and colleges.

2. Ask your college for a tuition reduction 

The Wall Street Journal recently reported that the easiest way to get a tuition reduction is to just ask.

It may sound too good to be true, but given the current situation with COVID-19 forcing many classes to move online, students have more leverage than ever before when it comes to negotiating tuition.

In fact, nearly 60 colleges and counting have been hit with lawsuits from students who are demanding tuition refunds, according to Newsweek. The argument is that students did not receive the in-person college experience that they had signed on for, therefore the value of the education was not worth the original agreement.

Some universities have listened and have since offered partial reimbursement. Going into the new school year, however, there is still a lot of uncertainty and controversy around tuition. For instance, Harvard recently announced that it would be adopting virtual learning for the 2020-2021 school year without a tuition reduction. Meanwhile, the University of Michigan and Cornell actually increased its tuition, angering many students and their families. However, there are some schools, like Williams College, that will offer reduced tuition and other schools are offering the option to defer payment for a year, like Davidson College in North Carolina.

Moral of the story: You never know until you ask.

3. Apply for late-deadline scholarships

Typically, scholarships have already come and gone at this point in the summer. However, the 2020 situation is much different than years past and many students have been met with new financial situations in just a few short months — leading many organizations to extend scholarship deadlines.

“Don’t think of the scholarship search time as being over,” James W. Lewis, President of the National Society of High School Scholars told U.S. News. “In my mind, the scholarship search has just begun. The old norm was that scholarships are over by now, but this is a new reality, and institutions are having to rethink everything. Part of that is financial aid and scholarships.”

A good place to start is by searching the U.S. Department of Labor’s free scholarship search tool. Experts also suggest looking for local scholarship opportunities as these are often less competitive than the national ones.

4. Look into community colleges

Currently, 9 percent of colleges in the U.S. are planning for an online school year and 24 percent are proposing a hybrid model according to a survey by the Chronicle of Higher Education. However, many of these schools are also planning to keep the tuition rate the same despite the major differences in online versus traditional instruction.

This is forcing many students and their families to make the tough decision of whether or not it’s worth it to go back to school in the fall.  Not only is safety a concern, but there’s also clearly a difference in the type of learning and experiences one gets from virtual learning.

If you’re someone who’s finding the idea of staying home to study more and more appealing, you may want to consider taking courses at your community college. This could be a great money-saving option for those who have general education courses to get out of the way. Before making any decision, however, be sure to double-check that the credit will transfer.

5. Apply for a credit card to help pay for needs 

Credit cards can be very helpful in tough situations like this when managed responsibly. If you are struggling coming up with money for the necessities like books and food, a credit card could really help out.

There are two types of credit cards that you’ll want to consider. The first is a cash back card that will reward you for your spending and put a little extra cash in your pocket. However, you will not receive that cash back until you pay the bill, so if that’s not possible, then this isn’t a good idea for you.

The second option would be to look for a card that offers an introductory zero percent APR. A zero interest card can help you avoid paying sky-high interest rates on purchases and balance transfers, for up to a year or even longer. It can also help you avoid applying for a loan that may carry a high interest. This gives you a nice cushion to pay off the debt, while also allowing you to still pursue your education. A word of caution, however, is that once this introductory period is over, APRs can easily run over 20 percent. Therefore, it’s very important to manage your balance carefully. Otherwise, you may end up paying more in interest than you would have on a loan.

Note that you may not have the credit score eligible for a card like this, which means you may want to ask your parents if they can apply and add you as an authorized user.

6. Look for a part-time job or side hustle

A part-time job or side hustle can help you pay for everyday expenses or if you’re good there, you can put it towards your tuition and books.

Many colleges offer work-study programs as a form of financial aid, but it largely depends on when you apply, your level of financial need and your school’s funding level. Typically, students are paid directly, however, you can also request that your paycheck go directly towards tuition.

If you do not qualify for a work-study program, look locally to see if you can find something else that allows you enough flexibility to keep up with your schoolwork.

Some other ideas to consider are tutoring (especially if you have expertise in a subject), gig work, selling artwork online if you’re a creative type or maybe you have clothes and furniture you don’t have a need for that you could sell.

7. Check for tax deductions

Before you file your taxes this year, double check that you’ve filed for education-related tax credits and deductions. One option is the American Opportunity Tax Credit (AOTC), which allows individuals to claim up to $2,500 in tax credit on expenses related to tuition and fees for up to four years.

In order to qualify, you must:

• Have $2,000 of eligible spend on tuition, books, equipment and school fees.
• Be an undergraduate student.

The amount will also vary depending on you or your parents adjusted gross income. For example, if your parents claim you as a dependent and made $80,000 or less ($160,000 or less when filed jointly) then you will get the full credit. Anything more than that and you will only receive partial credit.

Another tax credit to look into is the Lifetime Learning Credit (LLC), which allows you to claim 20 percent of the first $10,000 paid towards tuition and fees for a maximum of $2,000.

Unlike the AOTC, the LLC is available for undergraduates, graduates and non-degree or vocational students. Additionally, there’s no limit on the number of years you can claim it.

You are eligible for the credit if you or your parents made less than $58,000 ($116,000 when filed jointly) in the last year. If your income was between $58,000 and $68,000 ($116,000 and $136,000 combined) then you can get a reduced credit. However, you can not get a credit if your income was above $68,000 ($136,000 when filed jointly).

One caveat, however, is that you cannot claim both the AOTC and the LLC in the same year.

8. Apply for a student loan

If you are a dependent undergraduate and cannot afford full tuition, your parents can apply for a Direct PLUS loan. Applicants can borrow up to the full cost of attendance, less other financial aid, and the interest rate for 2020–21 is 5.3 percent.

However, if your parents are not willing to do that and you’ve maxed out your federal loans and financial aid still doesn’t cover your tuition, you may have to consider a private student loan. However, before borrowing from a private lender, it’s important to understand what you’re getting into. 

Like everything else, there are pros and cons to private loans. One of the biggest perks is that private lenders typically lend larger amounts, which could be good news for you. However, these loans are not eligible for any sort of government loan forgiveness or repayment plan.

Bottom line: If you need to borrow money and have maximized your federal student loans, then private loans can help you get through school. Just be sure to do your research and shop around.

Learn more:

• The ultimate guide to private student loans
• 8 ways to go to college for free
• 6 financial moves students should make before heading to college

Featured photo by Tom Werner of Getty Images.

Who is your biggest competitor? This is a question I ask when a business comes to me seeking assistance in improving their performance. The most common answer I hear is a little counter-intuitive. Often the main competitor is not another company, but a mindset: people thinking they can do it on their own.  

How many times does a plumber, electrician, carpenter or roofer get called in to fix something because someone thought they could do it on their own — but ended up making the problem worse? I often share stories of some of my own “cost-saving” ideas that ended up costing a lot of money!

►How service recovery can turn dissatisfied customers into raving fans

► Is stress negatively affecting your ability to lead?

► We’re all responsible for our own inspiration

For 15 years as founder of Studer Group, I met with executives of hospitals, medical groups and so forth who wanted to be better at providing a good patient experience, employee engagement, physician engagement, accountability, etc. They realized that the lack of performance in the areas in question was costing the organization in lawsuits, overtime, reputation and loss of talent, including physicians. When we covered what we learned and gave recommendations, which often included getting outside help, at least one person in the meeting would say (or at least imply with their questions and comments), “We can do this on our own.” Many times, the president then would interject, “If we can do this ourselves, then why have we not been doing it?”

The current economic climate has caused organizations to slash budgets, freeze hiring and look for opportunities to reduce costs as they weather the COVID-19 recession. As an HR leader, you have an important role to serve in these cost-reduction measures.

You must not only consider the short-term gain, but also the long-term impact of the decisions you and other leaders are making today. For example, reducing headcount may help reduce costs in the short term. But it can also leave the remaining employees demotivated and worried for their own positions, in turn lowering productivity and competitiveness. Layoffs may also reflect negatively on the company from a customer perspective.

In other words, it’s important to think through what the right HR cost reduction ideas are for your organization’s particular situation. Here are a few to consider.

1. Pause large software projects. Both HR and IT can freeze large software projects, such as a new HCM system, until IT can perform an assessment to determine if there’s sufficient value and funds to continue the project.

2. Explore software license renewals. Many cloud-based HR systems are licensed based on monthly or annual employee headcount. It is important to understand how the vendor invoices the organization and ensure that the correct headcount is being used. For example, if the organization is billed based on monthly headcount and the organization reduces the workforce, someone within the organization will need to ensure that the next invoice reflects the smaller headcount. If the annual renewal is coming due, someone should confirm the headcount and adjust the contract accordingly. Someone in HR or IT can also talk to the vendor about discounts they may be offering during the economic downturn.

3. Hiring freeze. This is a common practice and one that is often implemented quickly when the economy goes into a downturn. While a full freeze may be required at certain times, it will be important to reevaluate all the open positions and identify those you and other leaders deem as key roles within the organization so that those roles can be reopened and filled in a timely manner.

4. Reduce dependence on third parties. Where possible, you and other leaders can consider bringing the work done by third parties in-house. This is especially important when internal resources have the required skillset and time available to take on the additional work. Your team can also support the organization as they determine if they can also use their internal employees for these new responsibilities.

5. Outsource nonessential work. If your organization has work that is nonessential to your day-to-day operations, you might want to consider outsourcing it to a third party. While this option may lead to headcount reductions within your organization, it may help your company survive the downturn and reduce costs in the long term.

6. Cancel outsourcing contracts and bring the work in-house. Your organization may be paying a premium for the flexibility offered by a third party. If you have the bandwidth to do the work with internal resources, it could be a win-win since you’d be able to save money and retain your employees. It is important to consider any contractual obligations you may have with the third party before canceling the contract. For example, there may be a fee to break the contract, which would have to be factored into your decision.

7. Redistribute work internally. As projects are canceled or delayed, the demands on the HR team may change. To avoid layoffs and hiring in different areas, you may be able to redistribute work within the HR team. For example, if recruiting slows to only critical roles, you may be able to use the recruiters’ time in other areas of HR.

8. Hire a temporary workforce. Temporary employees or consultants may be a viable option to control costs since they may not be entitled to all the benefits received by permanent employees, such as health benefits and bonuses. You can also control the length of the agreement, so that you are only committed for a short period of time or specific projects.

9. Monitor and limit overtime and shift premiums. Both your core HR team and payroll can play an important role in helping the organization analyze hourly rates by reviewing scheduling practices to reduce overtime and shift premiums where possible. There may also be features the HR team can enable in their HR software that will flag overtime when an employee is scheduled for too many hours in a pay period, providing a proactive approach to reducing costs.

10. Freeze nonessential HR initiatives. The HR team may have programs underway that rely on the expertise of outside organizations. Examples of these types of projects include developing e-learning courses, workforce planning and total rewards. These are also the types projects you could consider having internal teams tackle.

11. Streamline processes. By reviewing your current HR processes, you may be able to identify areas where efficiencies can be found, freeing up employees to work on other tasks that would otherwise require additional staff. You may also identify work that can be temporarily stopped or eliminated altogether if it’s no longer needed.

12. Make temporary workforce reductions. HR can help the organization plan and execute a strategy to temporarily reduce the organizations employee-related costs by introducing job-sharing programs, reducing employee hours, furloughing employees or implementing temporary layoffs.

13. Identify and apply for government programs. Governments in multiple countries have offered incentives for companies to avoid layoffs, offered special tax rebates and other programs that an organization can use. HR is well positioned to partner with members of other departments, such as finance, to identify the programs that apply to the organization and implement them.

14. Review total compensation programs. Your organization may offer programs that are expensive for your company to administer and provide, yet have very little interest from your employee base. Therefore, they may provide a potential cost saving without upsetting all employees. For example, your company may offer $5,000 per year in tuition assistance, yet most employees do not take advantage of the program. While eliminating it altogether will save money and only impact a small number of employees in the short term, you may be able to simply reduce the annual amount, and therefore find a balance between focusing on cost reduction at the expense of losing a benefit that might help attract and retain top talent.

15. Control spending on nonessential items. Launching an organization-wide freeze or implementing approvals for nonessential spending may lead to significant savings. For example, you might be able to wait on purchasing new computer equipment, rearranging desks in an office space or purchasing new office furniture. By implementing more stringent approvals, your organization will be able to ensure that essential items move forward.

16. Eliminate or reduce external training. Training is important for organizations and employees, since it can build new skills, help with retention and provide the organization with new ideas. If you don’t have the budget for external training, perhaps you have subject matter experts within your company who can run training sessions to fill the gap. For your top talent, you may want to consider reducing the number of external training sessions taken in the given year, but not stop them all together.

17. Encourage employees to use banked leave time. Having employees use banked leave time, such as vacation time, will reduce the organization’s debt. While this doesn’t provide a cash benefit, it does improve the organization’s balance sheet.

18. Deal with underperforming employees. As a last resort, if you have employees who are not meeting expectations, this may be the right time to terminate their employment. While never easy, at a time when the organization requires cost savings, it is an added reason to focus on your higher-performing employees.

While all recessions have some degree of uncertainty, the COVID-19 recession presents unique challenges. Companies have experienced hardship in past recessions, but few could have predicted the near shutdown of the economy around the globe.

HR cost reduction — as well as cost reduction throughout the organization — is a game of lightning speed adaptation. As the COVID-19 spikes and retreats, leaders must respond to marketplace conditions, supply chain challenges and ramifications of social distancing in the workplace.

When you’re building your savings, it is important to choose the best account for your situation. You want an account with a competitive interest rate that will grow your savings, but also one that will give you the right amount of accessibility to your money if you need it.

Money market accounts and certificates of deposit (CDs) each provide a boost to your savings by offering competitive rates. However, CDs and money market accounts differ in terms of the liquidity available to you while your money is deposited. That’s why it’s important to understand the differences between the two types of savings vehicles before making a choice. Let’s take a closer look.

How money market accounts work

A money market account is a safe place to stash your money at federally insured financial institutions. These accounts can pay you competitive interest rates that can boost your overall savings. Money market accounts typically pay variable interest rates, which means the rate can rise and fall depending on market conditions. In general, these funds are accessible and make it relatively easy for you to tap your savings a few times each month.

There are generally limits to the number of times you can move money out of this type of account on a monthly basis. Typically, it’s six monthly withdrawals. So, you’ll still have the option to use these funds several times each month and potentially more as the rules have relaxed in the midst of the coronavirus pandemic. Contact your bank directly to confirm its withdrawal and transfer rules.

A money market account can come with a debit card or a box of checks. With those tools, as well as the ability to transfer money deposited in your money market account to different accounts you hold at your bank, you can access your money whenever the need arises.

Overall, a money market account can give you a boost to your savings. Plus, you’ll be able to spend the funds whenever you need to.

How CDs work

A certificate of deposit, or CD, is another type of federally insured savings account that you can find at banks and credit unions. CDs pay a fixed interest rate. Longer-term CDs, such as 5-year CDs, tend to pay higher rates than shorter-term CDs, like 6-month CDs and 1-year CDs. But unlike a money market account, you will not have access to your funds for a specific period of time. The bank or credit union tend to pay higher interest rates because you have agreed to lock up your money for a specific period of time, typically ranging from three months to five years.

In most cases, the CD will offer a guaranteed rate of return for the funds you place in the account. If you open a long-term CD, expect to receive a higher yield. If you open a short-term CD, then you’ll likely receive a lower interest rate.

No matter what term you choose, you’ll know exactly how much interest you’ll earn over the length of the CD when you sign up.

When money market accounts are a better fit

A money market account is a good way to grow your savings, but it is not the best fit for everyone. Here’s when it might make sense:

You want easy access to your funds

A money market account will allow you to spend or access the funds a few times each month or statement period. Although there are some monthly transaction limits (six withdrawals is often the max), you’ll be able to work within those guidelines to cover any emergency expenses.

If you’re considering stashing your emergency fund in one of these accounts, then the money market account is a better option than a CD because you can get at your money penalty-free if you need it.

You want these funds to grow

Money market accounts can have competitive interest rates. A higher APY can go a long way as you work to build your savings. A money market account, for example, can provide you with a better return than a traditional savings account.

If you have a short-term savings goal, then this extra boost is helpful — and you’ll still have access to your funds. For example, saving for an upcoming vacation in a money market account could be a good choice. The reason?  You’ll be able to grow your savings more quickly without risking any of your principal, and you’ll also have the ability to pull the cash out when you’re ready to jet off on your adventure.

When CDs are a better fit

CDs can be a better fit in some cases. Here’s when it might be a good option for you:

You have a long-term plan for these funds

When you open a CD, you are choosing to lock your funds away for a specified period of time. Depending on the term you choose, it might range from a few months to several years. If you have a specific plan for these funds — and won’t need to tap the funds in an emergency —  then a CD might be a great fit.

For example, if you have plans to buy a house in five years, then a CD could be the right place to store your down payment. You’d be able to take advantage of the most competitive interest rates and have access to the funds when you are ready to purchase your home. Plus, you won’t have to worry about losing money like you would if you invested in stocks or other types of non-guaranteed investments if the market tanks.

You want these savings locked away

Saving money can be difficult. If you struggle to keep from spending your savings account, then a CD could be a good choice. You won’t be able to touch the funds for the entire term, unless you’re willing to pay an early withdrawal penalty. That should keep your savings protected from a last-minute sale at your favorite store. Plus, your savings will be growing through the term.

The bottom line

Whether you choose to open a money market account or a CD, it’s important to shop around for the best rate. It is a good idea to put your money to work in one of these low-risk options if you can’t risk losing any money. But make sure to consider your goals before moving forward with either savings choice.

Featured image by ProStockStudio of Shutterstock. 

Learn more:

• 5 ways to get the best money market account rate
• Best CD rates
• Savings strategies for different goals

While living with parents or family is nice, it can get old after a while. People need their independence; however, living on your own can be daunting especially if you’re young and don’t have much money. In this case, here are some of the best ways to save money while on your own. You’ll become more responsible with your money with these slight changes in your life.

Create a Savings Account

The first step to saving like an adult is to create a savings account. Assuming you have a steady income, savings accounts store money and earn interest. These are federally insured accounts, so if the bank fails it can cover up to $250,000. Savings accounts can help you grow your money. Strong annual percentage yields (APYs) typically offer low initial deposit requirements and low monthly maintenance fees while paying back your money with slight interest. Importantly, savings accounts are not quick cash deposits like checking accounts. You have limited accessibility for emergencies or large expenses.

Use Credit Cards Wisely

Of course, just because you have money in the bank doesn’t mean you should spend it frivolously. Use bank cards responsibly, especially if it’s a credit card. Credit cards are risky because, when used improperly, they can rack up long-term debt. Banks use credit cards as a trust-system in which the bank pays for the card statement with the trust that you’ll pay back the debt in a monthly or circulatory billing cycle. While many people can do this responsibly, you must know your limits. Extreme credit card debt can ruin your credit which affects your mortgage, housing, and even your job.

Buy Used

Likewise, buy used items whenever possible. One of the best ways to save money while on your own is through used goods. Most people scoff at the idea of buying someone else’s belongings, but many stores have made it easier to do so. These stores offer high-end products at a fraction of their original cost. Similarly, consider used goods for first-time major purchases too. Specifically, consider used appliances (if they’re still functional), used electronics (slightly outdated ones work fine), and used cars. Your first car on your own doesn’t need to be a luxury vehicle. In fact, look around and negotiate until you find the right used car for your budget and lifestyle; if you need pointers, follow these handy tips for buying your first car.

Prioritize Needs Over Wants

Finally, prioritize your needs over wants. While it’s healthy to treat yourself to a nice meal or fun activity, save these for special occasions. When saving money, you need to consider all necessary and unnecessary expenses. Monthly rent and utilities naturally fall under necessary expenses. However, you can reduce weekly nights out or buying new entertainment to save more money. That’s not to say you must eliminate these from your life completely; just be smarter about how often you afford these small luxuries.

TikTok is replete with how-to videos, everything from baking the best bread to learning the hot new dance to saving (and even making) money. This last is right in my wheelhouse, and I’ll admit I’ve learned a few things I didn’t know before. However, I’ve also encountered many videos that seemed dubious at best. I selected a handful of them and investigated the advice myself, eager to see if the information presented was both legitimate and useful. Here’s what I found out.

The promise: Fly first-class on the cheap

Enlarge Image

TikTok user @Brian__Chung promised the secret of “cheap first-class airline tickets every time” — and revealed it in all of 10 seconds. His trick: Head to AwardHacker, a site I hadn’t heard of before, and plug in your travel details. Specify the mileage-reward programs you use (including airline or credit-card), then choose first-class cabin.

After a minute, the site generates a list of the airlines that offer your route and the number of miles or points it’ll cost you to score a first-class seat, with the lowest listed first.

The reality: AwardHacker is definitely a handy tool for locating award flights, economy and first-class alike. However, it’s only showing you the lowest available “point cost” for those flights; you still have to have those points to redeem. So billing this as “cheap first-class airline tickets” is pretty misleading.

Get all the latest deals delivered to your inbox. It’s FREE!

The promise: Cheaper airfare when you use a VPN

Need yet another reason to use a VPN? How about airfare discounts? Catarina Mello, aka @professionaltraveler, says that if you use a VPN to make it look like you’re booking from a different country (even for flights that aren’t in that country), you can save a bundle. (Never mind that airfare is already insanely cheap compared with before the pandemic.)

Read more: What’s the best cheap VPN? We found three  

Using Google Flights, I looked at nonstop New York to Los Angeles and found several options at $237 and lots more at $297. Then I signed into my VPN, chose Romania as my country, opened an incognito window and checked the same flights. After figuring out how to get Google back to English and the prices back to US dollars, I found the prices were exactly the same. To the penny.

The reality: It’s always a good idea to use your browser’s incognito mode when checking airfares, but I didn’t see any benefit to using a VPN as well.

The promise: Save ‘huge money’ on Amazon

Enlarge Image

An Amazon hack? I’m listening. TikTokker @danback90 shared the following: When you’re looking at a product you want to buy, either now or in the future, scroll down the listing page and find its ASIN number. Copy it, then head to Keepa and run a search on that number. You’ll get a graph showing its price history, which lets you know whether there’s ever been a lower price. If there has, there’s a good chance it’ll be lower again.

The reality: Great advice, and very familiar — I’ve been sharing that same tip for as long as I can remember, but CamelCamelCamel has always been my price-history research tool of choice. Keepa is good, too, and in fact it offers quite a bit more data — so much, in fact, that for certain products it can be hard to parse. You can also set up alerts to get notified of price drops, same as with Camel.

Read more: This Amazon shopping hack can save you over 70% each time you use it

The promise: ‘Google will pay you $1 every 20 seconds’

TikTok user @hustleabove offers a free and easy way to make money: Install the Google Opinion Rewards app (available for both Android and iOS) and take surveys, for which Google will “pay you $1 for 20 seconds.” Sounds great, right? If you spent just 10 minutes per day taking surveys, you’d potentially make $30.

This is two truths and a lie. Yes, there is such an app, and, yes, it will pay you for taking surveys. However, the rate is up to $1 per survey, and not all of them can be completed in 20 seconds; some take longer. What’s more, Google doesn’t offer an endless supply of surveys for you to take so you can rack up big bucks. In fact, after I installed the app, I found myself staring at this message: “No survey at this time. We’ll notify you when a new survey is available.” Eventually I received one; it took about a minute to complete, and I received exactly 30 cents for my time.

The reality: This very misleading Google hack was really @hustleabove’s way of getting TikTok users to click his “How to make money on Amazon” link. Speaking of which, read on.

The promise: ‘I made $735,000 selling on Amazon’

Many on TikTok love to show Amazon dashboards indicating hundreds of thousands of dollars in product sales — very often the result of setting up a store and selling inexpensive items like T-shirts and mugs.

But, wait, if a video teaches you to do likewise, won’t that just create considerably more competition that cuts into the poster’s own sales? The end game here, at least for some TikTokkers, is to sell you on selling: These posts tease you with the promise of massive profits, then ask you to buy their “How to make money on Amazon” guide. (See above.)

User Michael Soltis (@michaelsoltiss), for example, introduces his “simple four-step framework” for finding the most profitable items to sell on Amazon. The advice is too rudimentary to be of any real value, and Soltis ends by steering you to the link in his bio — where you can buy an Amazon FBA (“Fulfilled by Amazon”) course for… wait for it… $497.

The reality: There’s no such thing as easy money. There are free (and cheap) courses that will teach you to sell products on Amazon, but making any real money that way takes real work.

Have you found any TikTok videos offering legitimate, practical money-saving advice? Hit the comments and share what you learned!

---

CNET’s Cheapskate scours the web for great deals on tech products and much more. For the latest deals and updates, follow the Cheapskate on Facebook and Twitter. Find more great buys on the CNET Deals page and check out our CNET Coupons page for the latest promo codes from Best Buy, Walmart, Amazon and more. Questions about the Cheapskate blog? Find the answers on our FAQ page.