Have you recently had your driver’s license revoked or suspended and you’re wondering how to go about getting it back?
One of the steps to getting your driving privileges reinstated is to obtain what’s known as an SR-22. This is required to show that you’re being backed up by a legitimate insurance company while on the road despite your past traffic offenses.
Can you remember the first day you worked and earned money? It might have been babysitting for your neighbor’s kids or a retail job at the local mall. As a kid, you might have imagined your parents going to work as something that just happened. You didn’t think of the financial ramifications or why going to work was important.
The older you got, the more likely you were to start seeing the value of money. Want to go to the movie with your friends? Want to purchase a new video game? All those things cost money.
So, you got a job and chances are, you weren’t the best saver. Money was for activities and fun.
But now that you’re entering the real workforce, there are lots of other things your money is going to such as rent, groceries, utilities, and retirement.
Retirement? But you just started working!
Even though you might be 40+ years from retiring, it’s never too early to start thinking about the day when you hang it up. Below, we have some tips and questions you should be asking yourself and those around you when it comes to your retirement.
While a pension was the norm for your grandparents and maybe even your parents, roughly just 54% of businesses these days offer pension plans for their employees. While that may seem like a solid number, the financial crisis of 2009 put a real dent in those numbers and they have been slow to recover.
While your work may not offer a pension, they may offer other benefits like a 401(k) or a 401(a). 401(a) plans are typically offered by government or nonprofit institutions and participation in these plans is often mandatory. Contributions are determined by the employer and can be either pre or post-tax.
401(k) plans are the opposite. They are more popular in the private sector, don’t have a contribution limit, and participation is not mandatory (although it might be).
Contribution is pretty simple, that you take X amount of money out of your paycheck and put it towards these plans each month. Money accrues and grows over time.
Let’s say you need the money, can you take it? Of course, it’s your money but it comes at a cost. The IRS will take a 20% as a penalty for early withdrawal. There are certain stipulations to withdraw money without the penalty, but they are never guaranteed.
Hopefully, you aren’t living paycheck to paycheck and you’re putting away a certain amount of money each month. That could be saved for an emergency or saving up to make a big purchase.
It’s important to set up a personal savings plan because that money could be put into an individual retirement account (more on that later).
Budgeting is boring but highly necessary. Whatever you’re putting away each month should be treated like your 401(a) or 401(k). It should be untouchable. Make sure to take a certain percentage of your savings and plan to put that towards your retirement.
You might have seen this written as IRA and they are pretty common. The idea is that you yourself put money into a non-Roth or Roth IRA each year (up to $5,500 maximum) and that money is invested.
Many people seek out the advice of financial planners to help them plan a strategy for their IRA. The biggest difference between the two lies within the taxes.
Traditional IRAs mean your contributions are taxed in the year they are made. With a Roth IRA, you’re not going to be taxed when you start making withdrawals.
It’s important to note that not everyone is eligible to contribute to a Roth IRA and access can be restricted if you are using a 401(k).
The best thing to do is to meet with a financial planner and discuss your options. Ask your parents or others who might have a contact they can set you up with. They can help you do much more than just manage your retirement, but help manage your entire portfolio as well and give tips on sound money management policies.
Even though it may seem silly, it’s never too early to start thinking about your retirement.
Image source: Flickr.
Student loan debt is becoming a common financial crisis in the United States. A majority of students are graduating with huge amounts of debt and feeling crushed by the financial burden. More and more graduates are searching for ways to pay off student loans quickly so they can experience financial freedom before making other financial investments.
It’s unfair that an entire generation of young Americans have to wait even longer than older generations to purchase a home or start saving for retirement simply because they wanted to get an education. Therefore, if you have student loan debt it’s a good idea to employ every strategy that you can to pay it off quickly.
This article will go over a few general tips and strategies for how you could quickly pay down your student loan balances, so you can become financially independent once more!
When making your monthly budget, whether you are single and just out of school or budgeting for a family, always take your student debt into account. Budget in your student loan debt, credit card debt, title loan debt, mortgage, and any other debt you may have. Make sure you include your debts into your budgets as they should always be the main priority. Try to allocate more money toward your debt than what is required.
If you are going to make extra payments on your student loans over the minimum, then put that extra cash towards higher interest loans. The interest rates are constantly growing your debt load and paying off those loans with the highest rates first will save you money in the long run. And when paying more than your minimum, tell your servicer to apply that overage to your current balance and not simply to next month’s payment.
When trying to decide whether refinancing is a good idea or not, it is not a clear black and white determination. It completely depends upon the situation; whether your loans are federal or private, whether you have good credit and a good job, whether your loans are subsidized or unsubsidized. Research your options, calculate how you might save or lose money, and make the decision that is best for you.
Make sure that you never miss a payment or get charged a late fee by signing up for autopay. Enrolling in autopay can even get you a minor interest rate discount with federal servicers. Along with the discount, you will be able to set up multiple payments and ensure you pay your loans as a priority.
Instead of just paying once a month, you can trick yourself into paying way more and cutting down your repayment schedule drastically by simply making two payments a month instead. This doesn’t even mean you have to pay double a month, but just twice. That will still make a difference.
Persistence and hard work will take care of your student loan debt once and for all. Just stick with it and follow these suggestions and before you know it, you’ll see that the diligence was so worth it.
For more reading, consider checking out this article from Nerdwallet on how to pay off your student loans fast.
Image source: Pexels.com
This year, Americans will spend more on taxes than on housing, clothes, and food COMBINED.
In fact, on average, every dollar Americans earn until April 15 will end up going to taxes.
You’re well underway in the house-hunting process and you’ve reached the point where it is time to crunch those numbers. When it comes to how to calculate your mortgage, there are a few key considerations to keep in mind.
Financial risk managers are some of the most important people in the industry.
When people think of a risk manager, they often think of someone that manages risk. A financial risk manager does exactly that but with finances. They’re essentially the reason why businesses can succeed and grow.
Only 75 percent of the businesses started in the United States annually will ever reach the two-year mark. One of the main reasons failed business owners give for the demise of their venture is money problems. Instead of waiting until money issues bankrupt your small business, you need to take proactive measures to prevent this disastrous situation.
If you’re interested in college, you probably already know that it’s likely going to be very expensive. Although it’s possible to find scholarships and even get grants for housing, transportation, and food, it’s not guaranteed, and it’s rare to get out of college with no debt at all. That means many college students end up living paycheck to paycheck, which can be a pretty significant burden. If you want to learn more about how college might impact your finances, you might want to ask one simple question: How much money do students tend to have in their bank accounts?
Most Students Have Less Than $2,000 Right Now
When it comes to the basic numbers, 57.1% of respondents indicated that they had less than $2,000 in their bank accounts. As asked by OneClass, this question regarded both checking and savings accounts, which means that these students had less than $2,000 in available funds overall.
That’s an extremely low number — it’s definitely less than the suggested “emergency fund” of 3-6 months’ worth of bills. In some areas, it might be as small as one months’ worth of bills. Because the survey covered 82 schools, it’s impossible to say how dire these students’ situations are, but regardless of the area, it’s an unfortunate response.
A Substantial Amount of Students Have Less Than $500
Though it may come as a surprise that over half of all students have less than $2,000, the numbers get even more dire when you break them down further. 13.5% of respondents indicated that they had $0-$50, and 22.8% responded $51-$500.
That’s 36.3% of students surveyed — over one third — who indicated that they had less than $500. $500 is barely enough to cover an emergency car repair, and that’s cause for alarm. And when juxtaposed with the students who indicated having $2,000 or less, it’s even more telling. $500 is 25% of $2,000, but in fact, 63.6% of that body actually indicated having $500 or less.
Mathematics and Business Majors Tend to Be More Well-Off
In a result that probably won’t surprise you, Mathematics and Business majors reported the highest average amount when compared to other majors. Both majors most commonly reported having $2,001-$5,000.
When it comes to the median amount, the results are even more drastic, as Mathematics majors jump to $10,000 or more and Business majors move up to $5,001-$10,000. Because Mathematics and Business majors have a reputation for being more expensive, it may be that more well-off people move into those majors, causing those majors to report better finances.
Third-Year Students Are the Worst Off Overall
Overall, people’s finances tend to worsen as they continue college. First-year students most commonly reported having $2,001-$5,000, while second and third-year students both most commonly reported having $51-$500.
When moving to the median responses, second-year and first-year actually switched places — second-year respondents indicated a median amount of $1,001-$2,000, and first-year students replied with a median of $501-$1,000. But third-year students actually had a worse median response, with a median response of $0-$50.
Conclusion
You can’t draw any super definitive conclusions from just these numbers. There are of course plenty of extenuating factors that might play into these numbers. Maybe a student just received a grant, or maybe they just paid bills. But the truth is, when you look at the overarching picture, it’s much easier to see the wealth disparity.
Of the 399 students who responded, less than 100 had more than $5,000 available, which is likely the amount that one should have in case of emergencies. That’s a big deal. Whether you’re planning on going into college, you’re in college right now, or you just want to keep an eye on overarching financial trends, these are numbers you should definitely pay attention to.
Debt is a part of modern life. In fact, according to the National Audit Office, around 8.3 million people in the UK struggle to pay off their debts or household bills.
There are lots of reasons people find themselves in debt in the first place─bad spending habits, relying on credit cards or simply living beyond their means. Some reasons are beyond our control like sudden unemployment, divorce and medical fees. [Read more…]
It’s estimated that about 36 percent of the American workforce is doing freelance work, and that number is expected to grow to 50 percent over the next 8 years.
There’s a reason workers are choosing freelance over in-house work. They can create their own schedule and have the flexibility to work wherever they want in the world. But the one downside of freelance work is the income can be a lot more volatile.