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Money Management

Sick of Being Told to Budget? Try This Easy Method Instead

By Money Management No Comments

Not a fan of budgeting? There may be a better way to meet your savings goals. Read on to learn more. 

Image source: Getty Images

“Stick to a budget if you want to meet your savings goals.” It’s advice we hear all the time, and it’s well-intentioned.

The reality is that following a budget could do a lot for your finances. It could help you limit your spending, make the most of each paycheck, and get you closer to your savings goals, whether they entail building an emergency fund or boosting your IRA balance so you have enough money to retire with. There are even a host of budgeting apps you can use to make the process easier on yourself.

But let’s face it. For some people, budgeting just isn’t appealing. Not only do you have to take the time to set one up, but you also have to review your spending month after month to make sure you’re sticking to your budget. And you have to continuously update your budget as your expenses change, such as if your rent or cable bill goes up.

If you’re really not into budgeting, it doesn’t mean you’re doomed to never meet your savings goals. Rather, there may be another approach you can take.

Put the process on autopilot

The whole purpose of budgeting is to make sure you’re not spending more than you earn, and also, to allow you to carve out room for your savings. But if you automate your savings, you might manage to achieve a similar goal.

Let’s say you tried following a budget with the hopes of sticking $300 a month into your savings account at the end of each month. If budgeting doesn’t work for you, you could instead set up an automatic transfer from your checking account to your savings that will allow that money to land in the latter account before you’ve gotten a chance to spend it.

Is that the same thing as budgeting? Not exactly. But does it help you get to the same end goal? Yes. And so it’s a tactic worth utilizing if you’re just not into budgeting and don’t expect to change your ways anytime soon.

Keep in mind that it’s not just your regular savings you can automate. Many IRAs allow for automatic transfers, too. So if you’re all set on emergency savings and are looking to focus on building long-term savings for retirement, you can arrange for money to leave your checking account each month and land in your IRA instead.

You don’t absolutely have to budget

Budgeting can actually be a fairly simple, seamless process once you get used to it. And your initial time investment to set up a budget may not be as major as you’d think.

Plus, it’s a good thing to have a handle on your spending. A survey taken a few years back by Intuit found that 65% of Americans didn’t know how much money they’d spent the previous month.

But if the idea of having to budget constantly doesn’t sit well with you, there is another way to meet your savings goals. And the good thing about automating your savings is that it’s something you can set up once and walk away from for the rest of the year.

Granted, you may want to change the amount of money you’re sending into your savings account or IRA as your income increases over time. But you can, for the most part, set up those automatic transfers and not have to do much work in the months that follow.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Maurie Backman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Intuit. The Motley Fool has a disclosure policy.

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Here’s How Having a Larger Emergency Fund Helps Me Be a Better Investor

By Money Management No Comments

A writer says that her emergency fund makes it possible to take more risk (and potentially earn greater rewards) in investing. Read on to see why. 

Image source: Getty Images

A recent SecureSave survey found that 67% of Americans don’t have enough emergency cash reserves to cover an unplanned $400 expense. If you’re in a similar boat, then it’s imperative that you do what you can to build up a more robust savings account balance.

In fact, a good rule of thumb is to sock away enough money in an emergency fund to cover three to six months’ worth of bills. The logic there is that if you were to lose your job, you’d have money to tide yourself over for a bit of time. Your emergency savings could also come in very handy in the event of an unplanned bill like a large home or car repair.

Now I happen to have a little more than a year’s worth of bills tucked away in my savings account. And some people might argue that that’s an excessive amount of cash to have in the bank.

But I like having a larger emergency fund because it gives me peace of mind. And so it’s worth it to me to keep that extra cash in the bank, even if it means not getting to invest it and giving up what could potentially be a much higher return.

In fact, I feel that my larger emergency fund actually helps me be a better investor and make the most of the money I am putting to work. Here’s why.

It’s all about options and minimizing losses

Recently, a relative of mine had to sell some stocks in their brokerage account at a loss because they needed money and didn’t have it in savings. Because I have a larger emergency fund, that’s something I’ve never had to do.

When my air conditioning system gave out on me a while back and I had to come up with $7,000 on the spot, I didn’t have to sell off stocks to scrounge up the money. Instead, I took the money out of the bank. Had I not had that option, I might’ve been looking at losses in my portfolio.

Also, having more money in emergency savings gives me the flexibility to put my money into riskier assets. The way I see it, if I’m covered for unplanned bills, I won’t really ever be pressured to liquidate those more speculative assets at a moment’s notice. That means I can ride out periods when their value declines.

Your emergency fund should take priority

You may not want to keep a full year’s worth of bills in savings for emergency fund purposes. And for many people, a smaller emergency fund will absolutely suffice in providing great protection. But if you don’t yet have enough money in your emergency fund to cover three full months of living expenses, then your best bet is to take any incoming cash you get your hands on and put it in the bank rather than invest it.

Investing is a great way to grow your money into a larger sum. But it’s important to make sure your emergency fund is fully loaded before you start to invest.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
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These Are the Best Dining Deals at the Magic Kingdom

By Money Management No Comments

Eating at Disney doesn’t have to be expensive. Check out these great deals to find affordable fare that the whole family will love. 

Image source: Getty Images

A Disney vacation is not known for being cheap. In fact, when you visit the Magic Kingdom, you may even see people walking around with novelty tee-shirts proclaiming their visit the “Most Expensive Day Ever.”

But, when you visit the land of Mickey Mouse, you actually can find some bargains on food so you can give your credit cards a break. In fact, here are four dining deals at the Magic Kingdom that won’t do too much damage to your bank account balance.

1. Columbia Harbor House

Columbia Harbor House is a counter-service restaurant at the Magic Kingdom that offers some unbeatable prices on dining deals.

A bowl of New England clam chowder for just $6.79 is a pleasing option, or if you’d prefer a bigger portion, a trio platter allows you to get fried shrimp, chicken strips, battered fish, hush puppies, and a choice of side for only $14.29.

This is almost large enough to split, especially if you add a bowl of soup on the side, which means a meal for two could come in at just about $10 per person.

2. Sleepy Hollow

Located in Liberty Square, this cute brick cottage by Cinderella’s Castle offers great deals for breakfast, lunch, and dinner. An adorable Mickey Waffle would set you back just $6.49 and is a great way to start your day.

If you’d prefer something a little more filling in the afternoon, a hand-dipped corn dog for $11.29 is a delicious option — albeit not the healthiest choice in the park. You can also opt for a $12.49 turkey leg that’s also large enough for two, putting your meal cost at only $6.25 for an evening meal.

3. Spring Roll Cart in AdventureLand

If you are visiting AdventureLand, you can pop by the Spring Roll Cart, also known as the Eggroll Wagon, to pick up one of several affordable and filling treats that will quickly satisfy your craving for a good meal.

You have a choice of multiple meals from the wagon, including two house-made cheeseburger spring rolls for $9.50, two buffalo chicken spring rolls for the same price, or an egg roll combo that offers one of each for that cost as well.

The spring rolls are not only delicious, but they are filling enough to serve as an under-$10 meal by themselves.

4. The Friar’s Nook

The Friar’s Nook is a Robin Hood-inspired eatery with neat theming that is located in Fantasyland in Magic Kingdom. This Quick Service restaurant also offers affordable meal options to enjoy throughout the day.

A side of sausage and gravy tots for only $5.75 is more than enough to serve as a hearty breakfast to get you ready for a day of fun — or you can opt for a breakfast sandwich with bacon, egg, and cheese for only $8.99. Later in the day, a bowl of creamy bacon macaroni and cheese or an all-beef hotdog can be had for only $10.49 or $10.29 respectively.

Each of these meals will allow you to spend your money on more fun things at the Magic Kingdom rather than expensive dining. And you’ll still be plenty full and fueled with enough energy to hit the rides.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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These Are the 7 Best Hondas to Drive Forever

By Money Management No Comments

Image source: Getty Images
It’s no secret: Honda makes some of the most reliable vehicles on the road. But according to a recent study by iSeeCars, there are seven Hondas that seem to outlive the rest — and, no, the Civic isn’t in the top position.The study analyzed 2 million vehicles that were produced and sold between 2002 and 2012, then ranked each model by the highest potential mileage. Many of these vehicles were still driving on the road during the survey, meaning the potential mileage isn’t necessarily its lifetime mileage. But the potential mileage can give you an idea of which models might outlive the others.Which Honda models had the highest mileage? Let’s take a look at seven Hondas that were driving past 200,000 miles.1. RidgelinePotential mileage: 248,669Years of potential use: 18 yearsAverage retail price: $38,800 – $46,230Average price used: $28,857The Ridgeline had the second-longest mileage of trucks surveyed, with the Toyota Tundra taking the lead at 256,022. That gives you at least 18 years of potential use, assuming you drive the average 13,500 miles annually that Americans tend to put on their cars.2. PilotPotential mileage: 236,807Years of potential use: 17.5 yearsAverage retail price: $34,375 – $44,100Average price used: $25,857The Pilot had the longest potential lifespan for Honda SUVs, but it ranked No. 10 among other models. The Toyota Sequoia had the highest potential lifespan of SUVs surveyed at 296,509 miles, but the price for a new Sequoia is steep — $58,365 to $78,365. With its lower retail price, the Pilot might actually be the better deal: you’ll pay roughly $0.14 to $0.18 per mile on the Pilot, whereas the Sequoia would cost you about $0.19 to $0.26.
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3. OdysseyPotential mileage: 235,852Years of potential use: 17.4 yearsAverage retail price: $37,490 – $49,620Average price used: $22,729The Odyssey ranked second for potential lifetime mileage among minivans, firmly behind the Toyota Sienna (239,607). At 235,852 miles, you could drive between San Francisco and New York around 81 times — or back and forth between soccer practice around a few thousand times.4. AccordPotential mileage: 226,168Years of potential use: 16.8 yearsAverage retail price: $27,295 – $29,610Average price used: $20,918One of Honda’s most iconic cars, the Accord is also one of its most durable. With a potential lifespan of 226,168 miles, this car could last roughly 17 years. Combine that with the Accord’s decent economy — and affordable price — and this car certainly makes a strong case as one of the best midsize sedans on the market.5. CR-VPotential mileage: 215,930Years of potential use: 16 yearsAverage retail price: $28,410 – $35,760Average price used: $22,530If you’re looking for something more affordable than a Pilot — and with better fuel economy — the CR-V could be a good pick. The SUV has a potential mileage of 215,930, ranking it No. 17 among other SUVs.6. FitPotential mileage: 207,231Years of potential use: 15.3 yearsAverage retail price: $17,900 – $21,200Average price used: $14,480The Honda Fit ranks sixth among hatchbacks and sedans for potential lifetime mileage (207,231). But it was the most affordable hatchback on the list. At a list price of $17,900 to $21,200, you could pay roughly $0.08 to $0.10 per mile over the lifetime of the car, which is pretty dang cheap.7. CivicPotential mileage: 205,335Years of potential use: 15.2 yearsAverage retail price: $23,450 – $43,295Average price used: $19,480A Civic could last you about 205,335 miles, according to the iSeeCars survey. That puts Civics in the seventh ranking among hatchbacks and sedans — and last among Hondas. The Civic has decent fuel economy, which gives it a leg-up on the other Hondas listed here. But if you’re looking strictly at cost per mile, you’ll likely get a better bang for your buck with a Honda Fit or Accord.How to save money on your next HondaBuying a Honda is already a good economical decision. The company produces some of the most affordable and fuel-efficient hatchbacks and sedans on the road, some of which, as we’ve seen above, can last for more than 200,000 miles.To save even more, however, it’s also important to get the right auto loan for your Honda. These days, it’s fairly easy to compare loan terms and interest rates just by shopping online. Often, all it takes is filling out pre-approval applications, and you can compare loan terms from various lenders. And don’t worry — pre-approvals generally won’t hurt your credit score, as long as only a soft credit check is conducted.Just be sure you understand how much car you can truly afford. Your car payment shouldn’t take up more than 15% of your take home pay, while your loan should last no longer than 48 to 60 months. You might feel tempted to extend the loan term to buy a more expensive car, but trust me: Your Honda should last forever, but your loan shouldn’t.Our best car insurance companies for 2022Ready to shop for car insurance? Whether you’re focused on price, claims handling, or customer service, we’ve researched insurers nationwide to provide our best-in-class picks for car insurance coverage. Read our free expert review today to get started.We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. 

Image source: Getty Images

It’s no secret: Honda makes some of the most reliable vehicles on the road. But according to a recent study by iSeeCars, there are seven Hondas that seem to outlive the rest — and, no, the Civic isn’t in the top position.

The study analyzed 2 million vehicles that were produced and sold between 2002 and 2012, then ranked each model by the highest potential mileage. Many of these vehicles were still driving on the road during the survey, meaning the potential mileage isn’t necessarily its lifetime mileage. But the potential mileage can give you an idea of which models might outlive the others.

Which Honda models had the highest mileage? Let’s take a look at seven Hondas that were driving past 200,000 miles.

1. Ridgeline

Potential mileage: 248,669Years of potential use: 18 yearsAverage retail price: $38,800 – $46,230Average price used: $28,857

The Ridgeline had the second-longest mileage of trucks surveyed, with the Toyota Tundra taking the lead at 256,022. That gives you at least 18 years of potential use, assuming you drive the average 13,500 miles annually that Americans tend to put on their cars.

2. Pilot

Potential mileage: 236,807Years of potential use: 17.5 yearsAverage retail price: $34,375 – $44,100Average price used: $25,857

The Pilot had the longest potential lifespan for Honda SUVs, but it ranked No. 10 among other models. The Toyota Sequoia had the highest potential lifespan of SUVs surveyed at 296,509 miles, but the price for a new Sequoia is steep — $58,365 to $78,365. With its lower retail price, the Pilot might actually be the better deal: you’ll pay roughly $0.14 to $0.18 per mile on the Pilot, whereas the Sequoia would cost you about $0.19 to $0.26.

3. Odyssey

Potential mileage: 235,852Years of potential use: 17.4 yearsAverage retail price: $37,490 – $49,620Average price used: $22,729

The Odyssey ranked second for potential lifetime mileage among minivans, firmly behind the Toyota Sienna (239,607). At 235,852 miles, you could drive between San Francisco and New York around 81 times — or back and forth between soccer practice around a few thousand times.

4. Accord

Potential mileage: 226,168Years of potential use: 16.8 yearsAverage retail price: $27,295 – $29,610Average price used: $20,918

One of Honda’s most iconic cars, the Accord is also one of its most durable. With a potential lifespan of 226,168 miles, this car could last roughly 17 years. Combine that with the Accord’s decent economy — and affordable price — and this car certainly makes a strong case as one of the best midsize sedans on the market.

5. CR-V

Potential mileage: 215,930Years of potential use: 16 yearsAverage retail price: $28,410 – $35,760Average price used: $22,530

If you’re looking for something more affordable than a Pilot — and with better fuel economy — the CR-V could be a good pick. The SUV has a potential mileage of 215,930, ranking it No. 17 among other SUVs.

6. Fit

Potential mileage: 207,231Years of potential use: 15.3 yearsAverage retail price: $17,900 – $21,200Average price used: $14,480

The Honda Fit ranks sixth among hatchbacks and sedans for potential lifetime mileage (207,231). But it was the most affordable hatchback on the list. At a list price of $17,900 to $21,200, you could pay roughly $0.08 to $0.10 per mile over the lifetime of the car, which is pretty dang cheap.

7. Civic

Potential mileage: 205,335Years of potential use: 15.2 yearsAverage retail price: $23,450 – $43,295Average price used: $19,480

A Civic could last you about 205,335 miles, according to the iSeeCars survey. That puts Civics in the seventh ranking among hatchbacks and sedans — and last among Hondas. The Civic has decent fuel economy, which gives it a leg-up on the other Hondas listed here. But if you’re looking strictly at cost per mile, you’ll likely get a better bang for your buck with a Honda Fit or Accord.

How to save money on your next Honda

Buying a Honda is already a good economical decision. The company produces some of the most affordable and fuel-efficient hatchbacks and sedans on the road, some of which, as we’ve seen above, can last for more than 200,000 miles.

To save even more, however, it’s also important to get the right auto loan for your Honda. These days, it’s fairly easy to compare loan terms and interest rates just by shopping online. Often, all it takes is filling out pre-approval applications, and you can compare loan terms from various lenders. And don’t worry — pre-approvals generally won’t hurt your credit score, as long as only a soft credit check is conducted.

Just be sure you understand how much car you can truly afford. Your car payment shouldn’t take up more than 15% of your take home pay, while your loan should last no longer than 48 to 60 months. You might feel tempted to extend the loan term to buy a more expensive car, but trust me: Your Honda should last forever, but your loan shouldn’t.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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Home Building Activity Rose in February. Will That Help Further Cool the Market?

By Money Management No Comments

Housing inventory is down. Read on to see if that’s about to change. 

Image source: Getty Images

One big reason 2023 has been such a tough time to buy a home is that the broad real estate market has continued to lack inventory. And any time there’s not enough inventory to go around, it has the potential to drive home prices up.

In fact, not only are home prices still elevated on a national scale, but mortgage rates are sitting at much higher levels than they were a year ago. That’s created a major affordability problem for buyers — especially first-time home buyers who don’t have equity in an existing home to tap.

In February, though, housing starts rose by 9.8% compared to where they sat in January, according to data from the Census Bureau. Housing starts represent new construction, and these days, the more of it we have, the better things start to look for buyers.

But while housing starts picked up nicely in February compared to a month prior, they were still down 18.4% from February 2022. Also, while an uptick in housing starts is a positive thing, we may not see an actual impact on the housing market until later this year or even 2024.

A delayed benefit

The U.S. housing market could use further cooling, especially since it’s gotten so expensive to take out a mortgage. And what’s really needed to make that happen is additional real estate inventory.

As of the end of February, there were only 980,000 available housing units for sale on a national level, according to the National Association of Realtors. That represents a mere 2.6-month supply of homes.

However, it commonly takes a minimum of a 4-month supply of homes to equalize the housing market. And in many cases, it really isn’t until we get to a 6-month supply where there’s enough inventory to fully meet buyer demand.

An uptick in February housing starts might provide eventual relief for home buyers. But let’s remember that it takes time — often a lot of it — for a home to get completed once construction begins.

There are permits to obtain, inspections to schedule, and materials (some of which might still be in short supply) to order. So even though there may have been an uptick in new construction in February, that doesn’t mean there was an increase in finished construction. And until we get to the point where there are more move-in ready homes on the market, buyers might continue to have a difficult time.

Should you delay your home purchase?

Between low supply, higher home prices, and stubbornly elevated mortgage rates, you may decide that 2023 just isn’t an optimal time to navigate the housing market. The good news is that home price gains have been dropping steadily and the market has been cooling. But buying a home today is still an expensive prospect. Between that and the fact that you might really struggle to find a home that checks off all the right boxes, waiting to buy isn’t necessarily a poor choice.

Of course, there’s a good chance that mortgage rates will remain at or around their current level in 2024. But if housing inventory increases by then, it could lead to a drop in home prices. And that way, buyers should get at least some relief.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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Almost 7 in 10 Job Applicants Feel Discriminated Against Because of Appearance

By Money Management No Comments

Do your looks play a role in your ability to get hired? Read on to see what job applicants seem to think. 

Image source: Getty Images

The U.S. labor market is loaded with jobs these days, despite news of layoffs. And so if you’ve been thinking about getting a new job, now’s a decent time to be looking.

A new job could do a lot of good things for you. First of all, if you’re struggling with credit card debt or are having a hard time keeping up with your bills, a new job could mean a higher salary. And a boosted income could work wonders for your finances, allowing you to get ahead of your expenses and even build some savings.

But you might face certain challenges when applying for a new job. For one thing, you’re probably not the only person looking, so you might have stiff competition. However, if you make a point to produce a solid resume and brush up on your interviewing skills, you might boost your chances of getting hired.

You might, however, also want to consider a makeover. Well, not really. But if you think your appearance won’t play a role in your ability to get hired, you may, unfortunately, be incorrect.

When looks factor into the hiring process

In a recent survey by Zety, 69% of respondents believe they’ve been discriminated against during the recruitment process because of their appearance. Not only is that unfortunate, but it’s generally illegal.

Employers cannot discriminate against job candidates based on factors such as age, gender, and race. And appearance ties directly into these factors.

But what’s to stop an employer from passing on you when you have solid skills only to give a job to someone they consider more attractive? Unfortunately, not much, since it can be very hard to prove that employers are violating the law in the hiring process.

Let’s say you’re overweight and an employer decides not to hire you because of that. Unless they’re stupid enough to come out and say that, which they probably aren’t, they can easily make an excuse for not giving you the job, such as they found someone with more appropriate skills or they felt your personality wouldn’t mesh well with others on the team.

What to do if you feel you’ve been denied a job because of looks

You can always try to consult an employment lawyer if you feel you’ve been discriminated against because of your appearance during the hiring process. But you should know that proving your case may be very hard.

It’s one thing to argue that an employee is being discriminated against in the workplace due to factors like age, race, or gender, because at that point, it’s possible to establish and document a pattern. But when your only interaction with a potential employer is a 30-minute interview, it’s harder to prove you didn’t get hired because of how you look.

That said, one thing a prospective employer might hold against you is if you show up to an interview not looking professionally dressed. If you’re applying to work at a corporate office and you arrive at your job interview wearing jeans, you might come across as someone who isn’t taking the opportunity seriously. So your best bet is to make a point to put on an interview suit, or something comparable, so your clothing doesn’t spell the difference between getting a job offer or not.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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