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Should You Ever Use A Car Dealer’s In-House Financing?

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Dealerships that offer in-house financing – also called “buy-here, pay-here” dealers – may seem like an attractive option. They let you handle your vehicle purchase and financing at a single place, often dealing with just one or two people along the way. But are they actually a good solution? Or is a car dealer’s in-house financing always a bad deal? If you’re asking questions like that, here’s what you need to know.

Pros and Cons of Buy-Here, Pay-Here Car Financing

The Benefits of Car Dealer In-House Financing

In-house financing at a car dealership does come with some benefits. First, it’s incredibly convenient, allowing you to handle all of your purchase needs in one location. Along with squaring away your financing, the dealer can bundle in the rest of the transaction, ensuring the car price, trade-in, and all other factors are part of one straightforward equation.

Second, in-house financing can usually let you handle everything in a single day. There typically aren’t many steps between you and driving away in a new-to-you vehicle. If you need a car fast, that could make this option more attractive.

Finally, you may have an easier time qualifying for in-house financing if you don’t have good credit. Many of these arrangements are designed with those with lower credit scores in mind. Since that’s the case, it may be a more viable approach if you’re in poor credit territory.

The Drawbacks of Car Dealer In-House Financing

While car dealer in-house financing does come with some benefits, there are plenty of drawbacks, too. The biggest one is usually the interest rate, which may be far higher than you would get if you worked with a bank, credit union, or another traditional lender. As a result, you could effectively overpay for the car, which isn’t ideal.

Another drawback is that the loan terms are typically pretty strict. Missing a payment by even just one day may trigger penalty interest rates or repossession, depending on the nature of the lending agreement.

Finally, many car dealerships that offer in-house financing sell strictly older cars, many of which may not be in great repair. There are laws protecting you from serious safety defects, failures to disclose major accidents, major breakdowns beyond a reasonable level, and similar issues. However, there isn’t protection against faster-than-expected wear and tear issues or similar problems that may lead to repair costs. As a result, the car may end up costing you a lot more than you planned right away.

Should You Ever Use a Car Dealer’s In-House Financing?

Generally speaking, the drawbacks of in-house financing outweigh the potential benefits. If you have access to traditional financing, you’ll typically end up paying less in interest by going that route. Plus, the terms may be a bit more flexible, allowing you to avoid costly penalty interest rates or repossessions if you make a minor misstep.

However, if your credit is poor enough that you can’t qualify for anything else, it is a pathway to a vehicle. Just be aware of the contract terms and ensure you make timely payments. Otherwise, you may trigger penalties or repossession.

Additionally, if you’re looking at older used cars, assume that you’ll have some repair bills on the horizon. If possible, have the vehicle inspected by a reputable repair shop before purchasing. That way, you can estimate what you might need to spend in the coming weeks or months. Then, you can use that information to ensure you have enough set aside or can take it to the dealer to potentially negotiate in some repairs or get a lower price.

Do you think it’s ever a good idea to use a car dealer’s in-house financing? Have you used in-house financing and want to tell others about your experience? Share your thoughts in the comments below.

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Is This The Right Time to Do A Cash-Out Refi?

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refi vs. home equity loan

 

With mortgage rates starting to rise, those who didn’t refinance their mortgage in the last few years may worry they’ve missed the boat. However, there are situations where doing a cash-out refi now may not be the worst choice. If you’re trying to decide whether moving forward is wise, here’s what you need to know.

Is This the Right Time to Do a Cash-Out Refi?

The Benefits of Doing a Cash-Out Refi Now

In many cases, the main goal of a cash-out refi is to secure funds for another purpose. For example, you might want to tackle some home improvements, consolidate debt, or handle a large purchase without needing to turn to personal loans.

By doing a cash-out refine now, you’re able to achieve your broader goals. That alone could make now a decent time to move forward.

Additionally, while interest rates are rising, many homeowners have rates above what they could secure today. If you’ve got a rate above 6 percent and your credit is far stronger than it was when you first secured a mortgage, you might be able to capture a lower rate when you refi.

In some cases, a cash-out refi now could lead to a lower monthly payment. If you secure a lower interest rate and reset your repayment term to 30 years, you may find yourself paying less each month than you otherwise would. If your budget is tight, that could be beneficial.

The Drawbacks of Doing a Cash-Out Refi Now

By moving forward with a cash-out refi now, you’re not necessarily getting the best rate. If your current mortgage is below 5 percent, securing a rate below that might be challenging, if not impossible, in the current market. Since that’s the case, you may be better off looking at alternatives if your rate is below what you could get today.

When you move forward with a cash-out refinance, you typically have to pay a range of fees, too. Along with loan origination fees, you may encounter appraisal fees, closing costs, and more. In some cases, those fees over set or exceed any potential interest savings. Plus, for those you can’t roll into the loan, you may need to come up with a decent amount of cash to cover them, which may not be easy.

A cash-out refinance also comes with a few other drawbacks. Any hard pull on your credit report could lead to a short-term score dip. Additionally, a refi will reduce the average age of your accounts, as you’re replacing an existing loan with a fresh one. However, depending on your credit history, the impact may only be minor.

How to Decide Whether a Cash-Out Refi Is Right for You

Whether doing a cash-out refi now is the right choice depends on your situation. If your interest rate is above 6 percent and your credit score has improved, you may still get a reduced rate now, even with interest rates increasing. In fact, by not waiting, you could hop in before rates go up further, giving you the best chance to save.

A cash-out refi may allow you to avoid higher-cost financing, too, like personal loans or credit card debt. In that case, it’s certainly worth considering as long as your interest rate on your mortgage won’t rise.

However, if your interest rate is below 5 percent currently, you’re likely better off leaving your current mortgage in place. That way, you can maintain a low rate on what can be an expensive loan. Plus, alternatives like a home equity loan or line of credit could still allow you to tap equity and get a competitive rate, all without a full-blown refinance.

Do you think now is the right time to do a cash-out refi ? When it comes to refinance vs. home equity loan, which do you think is the best move today? Share your thoughts in the comments below.

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Apply For These Jobs To Secure Your Financial Future

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Most people want a solid financial future. Often, the best way to go about it is to pursue a career that offers high wages and ample job security. The problem is that not everyone knows which fields or professions bring that to the table. If you’re trying to figure out which jobs provide you with a reliable, comfortable financial future, here’s what you need to know.

What Is Job Security?

Before digging into the jobs that are financially strong, it’s important to understand what job security entails. Generally speaking, careers that offer job security ensure you have little worry when it comes to accessing opportunities or getting “cut” after being hired. Typically, as long as you meet or exceed performance expectations, the odds that you won’t be able to find reliable, long-term employment are incredibly slim.

Job security typically means choosing careers that do well on two fronts. First, you want to concentrate on positions that are in demand today. Second, you need to narrow down your options by focusing on fields where the number of opportunities is expected to rise over time, not decline.

In most cases, if you follow those two tenets, you’ll identify roles that offer job security. After that, it’s choosing an option that provides solid wages and key benefits, such as retirement plans. That way, you can ensure your financial future.

Careers That Offer Job and Financial Security

Nursing

Nursing positions at practically any level offer ample job security today. There simply aren’t enough nurses to go around, making it easy for those with the right credentials to find opportunities.

Plus, nurse salaries are typically competitive, and those working full-time often have access to generous benefits packages. Since that’s the case, this career brings financial security to the table, too.

One benefit of this career is that you can often choose to keep moving forward into higher-level positions. While you may need additional education, the boost to earnings often makes it worthwhile. Plus, some employers offer tuition assistance to employees, allowing you to move up without dealing with cumbersome student loans.

Information Technology

There are several information technology (IT) positions that offer solid job and financial security. Demand for software developers has long been on the rise. The same goes for artificial intelligence (AI) and machine learning specialists, cloud administrators, data analysts, cybersecurity specialists, and many more.

Additionally, IT managers are also widely sought. Since that’s the case, those working in these careers not only do well as individual contributors, but they can typically work their way up into management.

Engineering

When it comes to stable jobs with solid wages and room for growth, engineering professions are typically on that list. There are plenty of specialties within the broader field with potential, including mechanical, chemical, robotics, biomedical, electrical, mining, alternative energy, and civil engineering. Plus, it’s possible to find jobs in a range of sectors, giving you more access to opportunities.

Since competition for skilled engineers is fierce, pay rates are mainly rising. Additionally, a comprehensive benefits package is usually part of the equation, giving you more financial security.

Accounting and Finance

For anyone that wants job security, a strong financial future, and the skills needed to make wise money decisions throughout a lifetime, a career in accounting or finance could be a solid choice. Generally speaking, demand for these skills is trending upward. Plus, it’s a set of capabilities that will stand the test of time, limiting future risk.

In many cases, jobs in these fields also come with robust benefits packages. However, accountants may also be able to freelance – particularly if they focus on tax preparation or small business bookkeeping, accounts payable, and accounts receivable. That could create more potential pathways for success, which is beneficial.

Can you think of any other jobs that can help people secure their financial futures with greater ease? Do you work in one of the careers above? What is job security for you? Share your thoughts in the comments below.

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Is A Master’s Degree Worth The Money?

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is a master's degree worth the money

It’s no secret that getting an education can come with a massive price tag. However, figuring out whether getting a Master’s degree is a wise investment or a waste of money is often surprisingly tricky. There are multiple factors you’ll need to consider. Otherwise, you may pursue a path that doesn’t lead to the financial boost or lifestyle you’re hoping to snag. If you’re wondering if a Master’s degree is worth the money, here’s what you need to know.

The Cost of a Master’s Degree

On average, a Master’s degree costs around $66,340. However, what an individual pays can vary dramatically. Some of the lowest cost options may run only $30,000, while the higher end may hit $120,000.

There are several reasons why the price can vary so dramatically. First, every university can set its own rates, so the college you choose plays a role. Generally, private schools cost more than public universities, with average prices sitting at $81,100 and $54,500, respectively. However, some colleges in both groups may break that mold.

Additionally, some majors come with higher price tags. On average, a Master’s in the Arts is more expensive than a Master’s in Science. However, individual majors can have unique price points.

Whether you’re an in-state or out-of-state student leads to cost variances. Typically, in-state students pay less than their out-of-state counterparts, causing the same educational experience to come with two different price tags.

Finally, program lengths differ depending on the course requirements, leading to further potential cost differences. Generally, a 30-credit-hour program costs less than a 60-hour program, mainly because college tuition prices are based on the number of credit hours taken.

Since there’s so much variation in cost, you’ll need to determine how much you’d need to pay for your preferred degree at the college you want to attend. Without that figure, it’s hard to decide on whether getting a Master’s degree is worthwhile in your situation.

Earning Potential Increase

Overall, Master’s degree holders earn approximately 20 percent more than Bachelor’s degree holders on average. That’s a notable jump, giving Master’s degree holders a median income of nearly $78,000 per year.

However, just as prices vary, so does earning potential. Some majors come with a far larger pay differential for those who choose to get an advanced degree.

For example, the differential between a Bachelor’s and Master’s in biology is a startling 86.5 percent. In that case, getting an advanced degree is worthwhile in nearly all cases. For those studying business administration, the Master’s comes with a differential of 51.4 percent, which is incredibly solid. The differential for information technology administration is similar, sitting at 46.9 percent.

But not all Master’s degrees perform as strongly. For instance, the differential between a Bachelor’s and Master’s in finance is just 15 percent. If you major in accounting, the differential is a mere 4 percent.

When determining if a Master’s degree is worth it, it’s wise to explore how much your earning potential increases if you have the extra education. By doing so, you can determine how it influences your long-term earning potential, making it easier to see if the financial value is ultimately there.

Unemployment Rate Differences

If you’re looking for job security above all else and wonder if having a Master’s degree makes a difference, it actually can have an impact.

Overall, the unemployment rate among Master’s degree holders in 2021 – a period where the pandemic was still influencing the market significantly – the unemployment rate was 2.6 percent. For Bachelor’s degree holders during that time, the rate was 3.5 percent. That’s a 0.9 percentage point difference.

Whether that’s enough to sway your decision may depend on your priorities or employment factors in your area. However, it’s worth factoring into the broader equation.

Long-Term Career Outlooks

Another financial factor to consider is the long-term career outlook associated with the roles relating to the Master’s degree. For instance, if a field is growing and there aren’t enough professionals to meet demand, then pay rates are likely to rise since companies are competing for talent. This can make a degree that seems costly today a wise move overall, as the associated earning potential will improve over time.

However, if a job is connected to a position or field in decline, the long-term earning potential may diminish. When the amount of available talent outpaces demand, employers don’t have to compete for strong candidates. As a result, they usually won’t need to increase wages to find a solid new hire. That harms the financial side of the equation from the beginning.

But if wages remain stagnant over the long-term but the availability of candidates remains high, the outlook gets worse. Inflation will ultimately diminish your purchasing power, and the company won’t necessarily have a reason to correct that.

That’s why it’s wise to examine the long-term career outlooks relating to the Master’s degree. That allows you to determine if the extra education may get more or less valuable over time, ensuring you can examine the big picture prior to making a decision.

Degree-Related Job Requirements

Finally, when determining if a Master’s degree is worth it, you need to consider any degree-related job requirements. In some fields or roles, having an advanced degree isn’t a way to stand out; it’s an outright necessity.

For example, you typically can’t get licensed as a mental health counselor or psychologist without a Master’s degree. Upper-level human resources roles may consider an advanced degree a must. The same goes for many healthcare roles. Some areas even require that high school teachers have a Master’s, and nearly all aspiring college professors have to earn an advanced degree to qualify for the job.

If you have your sights set on a specific role and it requires a Master’s degree, then advanced education is essentially your only path toward your dream job. In this case, the satisfaction that comes with working in the field may override many of the financial considerations, making a Master’s degree worth it for intrinsic reasons.

Is a Master’s Degree worth the money to you? Are you a Master’s degree holder that feels it wasn’t worth the time or money? Why do you feel the way you do? Share your thoughts in the comments below.

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Is It Ever a Good Idea To Move Back In With Your Parents To Pay Off Debt?

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When you’re battling debt, finding a way out isn’t always easy. In some cases, that may make you wonder if heading back to your parent’s home is a smart move. After all, it’ll likely help you reduce your expenses dramatically. However, it can also create challenges. If you’re considering it, here’s a look at whether there’s ever a good reason to move back in with your parents to pay off debt.

The Benefits of Moving Back in with Your Parents to Pay Off Debt

Generally speaking, the benefits of moving back in with our parents to pay off debt are reasonably clear. First, you’ll usually get a chance to save money. Even if you’re paying rent, covering part of the utilities, and handling your own food and insurance, you’ll likely pay less than if you lived on your own. That gives you more cash to send to your debts.

Second, you may get some much-needed emotional support. That’s particularly true if you’re cutting out all extraneous spending to make debt repayment faster. By being with your parents, you’ll get opportunities to socialize. Plus, you may get a few perks – like access to entertainment – that you otherwise couldn’t afford, making a tough situation a bit easier to navigate.

Finally, it may give your parents a bit of a financial boost, too. For example, if you’re paying rent, they’re spending less on their housing costs. That could let them conquer some debt, set more money aside for the future, or otherwise get financial ahead.

The Drawbacks of Moving Back in with Your Parents to Pay Off Debt

When it comes to drawbacks, the strain it can put on your relationship is one of the biggest. While moving back in for a short time may be fine, an extended stay may lead to frustration. Your parents may have looked forward to an empty nest, or you may feel restricted by their rules. In either case, things can get uncomfortable quickly.

There’s also a chance they’ll feel taken advantage of, particularly if there’s any spending on your part that they find questionable. For instance, you might view a night out as a way to relax, while they think that money should go to your debt so that you can move out faster.

If you’re not paying rent or covering your expenses, moving in means you’re also placing a financial hardship on your parents potentially. Unless their income level is high, covering your costs could represent a significant strain on their budget. If so, that may lead to resentment, as well as long-term financial trouble for them.

Is It Ever a Good Idea to Move Back in with Your Parents to Pay Off Debt?

Generally speaking, there are good reasons to move back in with parents to pay off debts. However, you need to weigh the drawbacks, too. That way, you can ultimately make the best long-term choice.

Do you think there’s ever a good reason to move back in with your parents to pay off debt? Why or why not? Did you decide to move back in with your parents to conquer a debt issue? Do you feel that was the right choice in hindsight? Share your thoughts in the comments below.

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How Much Should You Be Paying for Rent?

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Many people have questions about their budget, particularly when it comes to how much they should spend in specific categories. Most people aren’t certain about whether they’re making wise choices. In some cases, they’re merely curious if they’re using the same approach as other households. In either case, you may find yourself asking, “How much should you be paying for rent?” If that’s the case, here’s what you need to know.

Standard Recommendations on How Much You Should Be Paying for Rent

The 30 Percent Rule

One of the classic pieces of personal finance advice when it comes to housing is the 30 percent rule. Essentially, this recommendation states that households shouldn’t dedicate more than 30 percent of their gross, or pre-tax, income to housing expenses.

For example, if you earned $3,000 per month, the 30 percent rule would mean spending no more than $900 per month on rent. If you brought home $5,000 instead, you could commit $1,500 per month on rent. If you worked full-time at federal minimum wage, leading to a monthly salary of about $, you’d theoretically be limited to $390 per month.

Whether the 30 percent rule works for you largely depends on your income and rental rates in your area. If you have a moderate to high income and live in a low-cost community, you’re likely in excellent shape by using this approach. However, if you’re lower-income, live in a high-cost area, or both, you may have little choice but to spend more.

The 50/30/20 Rule

Another option for determining how much you should spend on rent is the 50/30/20 rule. With this strategy, you limit your “needs” spending to 50 percent of your monthly income. Thirty percent can go to “wants,” while 20 percent is dedicated to savings or debt payments beyond the minimums.

Generally, “needs” include housing, utilities, groceries, transportation, insurance, and minimum debt payments. As a result, you may be able to send more than 30 percent of your income toward housing if you don’t need those funds for other expenses in the category.

However, like the 30 percent rule, the 50/30/20 rule won’t necessarily work across the board. For example, if you’re in a lower-income household, you might have to dive into the “wants” or “savings” money to cover all of your needs, even if you’re reasonably frugal.

Figuring Out How Much You Should Spend on Rent

If you’re a moderate-income household, you may find that either the 30 percent rule or the 50/30/20 rule works well for you. However, if you’re in a lower-income or high-income household, those approaches might not make sense. For the former, you may find those strategies don’t let you allocate enough to housing. For the latter, you might feel that the recommending spending amount is far more than feels reasonable.

In any case, it’s best to treat the 30 percent rule and 50/30/20 rule as general guidelines and nothing more. That way, you won’t make choices based on those recommendations alone.

Instead, you need to look at all of the factors in your broader situation. Start by looking up average rent prices in your area, giving you an idea about the cost of living and what you can reasonably find. Then, go over your budget to learn more about your other expenses and review your bank statements to dig into your spending habits.

As you take a deep dive into your financial life, you can start to figure out where your money is going. Then, you can identify areas where you may need to make changes. For example, if you’re overspending on food or entertainment, you can make the decision to scale back. That way, you can create a functional budget that aligns with your needs and priorities.

As you do, you’ll start to get a solid idea of what you can afford. Compare that to rent averages in your area to see if what you can pay aligns with what’s normal in your immediate vicinity. If it is, you can move forward with additional confidence. If it isn’t, you’ll need to find ways to make housing more affordable.

For example, you may want to ask for a raise at work or get a second job. Alternatively, you could reduce other expenses if possible or consider getting a roommate to split housing costs.

If you’re low-income, look into assistance programs in your state, too. In some cases, you may find that you’re eligible for options that can reduce your expenses or help cover the cost of rent, giving you more room in your budget.

Do you think the numbers above are a solid reflection of how much people should spend on rent? Do you have any tips or insights that can help a household pick a number that’s comfortable? Share your thoughts in the comments below.

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How Much Should You Spend on Grocery Each Month?

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For many households, groceries are a big line item in their budgets. Overall, the average amount households spend on food at home came in at $4,942 in 2020, which is a substantial sum. That breaks down to about $411 per month or around $95 per week. However, that doesn’t mean it’s the amount a household should spend on groceries every month. In some cases, less may make sense. In others, it could take more. If you’re wondering how much you should spend on groceries each month, here’s what you need to know.

How Much Should You Spend on Groceries?

It’s critical to understand that there isn’t one figure that’ll work for everyone. Instead, you need to look at the situation in the context of your household. That way, you can find a reasonable approach that lets you handle your needs without breaking the bank.

Averages Aren’t Perfect for Everyone

Above all else, you need to know that average spending levels aren’t right for everyone. For some households, spending $411 a month is completely reasonable. However, dedicating that much to food could break the budget of lower-income households, while it may be far less than a large family might need to spend to maintain proper nutrition.

Using percentage-based averages isn’t necessarily better. For example, in 2020, consumers spent an average of 8.6 percent of their disposable income on food purchases. With that, you may assume that spending 8.6 percent of your budget on groceries could be a reasonable figure from an affordability perspective.

However, every household is different. For example, if you’re working full-time and earning minimum wage, that leads to an annual income of just $15,080, or around $1,256 before taxes and other withholdings. In that case, $411 per month is clearly unreasonable. However, 8.6 percent is only $108 a month, or around $25 per week, which might be far less than you need to spend.

Since that’s the case, it’s important to realize that averages alone aren’t a good indicator of what you should spend. Instead, you may want to try another approach.

Using USDA Food Plans as Guidelines

The US Department of Agriculture (USDA) created eating plans designed to meet health standards while respecting that households have different budgets. That can make them solid reference points when you’re trying to decide how much to spend. Plus, it can help you figure out what to buy to maintain good nutrition.

The four categories available through the USDA food plans are thrifty, low-cost, moderate-cost, and liberal. When it comes to the costs of the thrifty plan and the other three plans, they’re broken down by age and sex, allowing families to estimate how much they’ll need to spend to support each household member’s nutritional needs.

By reviewing those figures, you can see how much it typically costs to create nutritious meals at home. Essentially, they can serve as baselines, allowing you to see how much you might need to spend based on household size.

The main problem is that the plans don’t factor in cost differences between locations, dietary restrictions, or similar issues that may harm the accuracy of the estimates. Since that’s the case, it’s best to consider them guidelines and not hard-and-fast rules.

However, if what the USDA lists is genuinely unaffordable, then it’s okay to make a budget that involves less spending. The trick is to ensure you can dedicate enough to address your nutritional needs reasonably well. Then, you can use other techniques to keep your costs down.

How to Stay on Budget

Apply for Benefits If You’re Eligible

First, if you qualify for any food-related assistance, such as SNAP or WIC, make sure you apply for those benefits. That’ll give you more money to direct toward your food budget, helping you spend less out-of-pocket.

Typically, the application process is reasonably simple. Additionally, using the benefits is straightforward. Just make sure you read the rules regarding qualifying products. That way, you can incorporate the right items into your food plan and grocery list.

Set a Spending Limit

Once you know how much you can get through food-related assistance, it’s time to set a target. Use the USDA guidelines and examine your other financial obligations. You need to determine how much is reasonable for you to potentially spend, effectively setting an upper limit that serves as a maximum. That way, you know that you need to aim below that number every month.

Use Sales, Coupons, and Rebate Apps

Once you set a budget for your groceries, you’ll want to use a range of strategies to remain on target. Use a combination of sale flyers, rebate apps, and coupons (either physical or through websites and shopping apps) to find exceptional deals. If you can couple a sale with a rebate or coupon, your total cost may go down dramatically.

Just make sure you calculate the per-unit cost to determine if it’s actually a deal, as not all discounts are created equal. Further, don’t let a coupon tempt you into getting anything you don’t actually need. It’s only a deal if it reduces what you’ll spend overall.

Once you dig into the sales and other discounts, use that information to create an official shopping list. Outline all of your meals based on the available discounts, recording the ingredients you’ll need to make those specific dishes. Then, when you shop, buy only those items.

If you have trouble with impulse shopping, you may want to try online grocery pickup instead of heading to stores. With that, you can focus on precisely what you need, potentially making it easier to resist impulse purchases.

For stores with loyalty programs, make sure you sign up. In many cases, you can earn points that can reduce your grocery bill directly by saving you a specific amount on your next purchase. In some cases, you can cash out points for free items, lowering your bills further.

Like sales, coupons, and rebates, you don’t want to buy anything you don’t need purely for the points. Instead, it should simply be part of a broader saving strategy.

Create a Meal Routine

Finally, it can be wise to create a routine when it comes to eating plans. If you rotate through the same breakfast, lunch, and dinner meals, you’ll have an easier time predicting your monthly grocery costs. While it may seem like this doesn’t work with a coupon, rebate, and sale strategy, it actually can if you’re brand flexible. You just choose the lowest cost version of the product you need.

Make Adjustments as You Learn

If you’re new to budgeting, it’s crucial to recognize that adjustments are often necessary. If you initially set a grocery spending target and determine it doesn’t reasonably meet your needs, change might be required.

Review your grocery spending patterns to determine if the budget isn’t working or if buying non-necessities is actually the issue. If it’s the former, look at your overall financial plan and see if you can adjust your budget to give you the room you need.

Initially, you might need to review your budget every month to make sure it’s working. That way, you can make changes until you find the proper target, allowing you to develop a spending plan that will work long-term.

How do you decide what to spend on groceries each month? Do you have a system that helps you stay on budget, or do you plan on the fly? Share your thoughts in the comments below.

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When It’s Better to Follow Your Dreams Than To Follow Your Salary

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follow your dreams not yur salary

When most people start a career, they hope they can earn a solid income while pursuing their passions. However, there are situations where a dream job simply doesn’t measure up financially to an alternative. In that case, professionals often have to decide whether they want to follow their dreams or a high salary. While there are pros and cons to both approaches, there are situations where doing the former is best. Here are some points to consider.

Money Can’t Buy Happiness

One of the biggest reasons to pursue a dream over a particular salary is that money isn’t a guaranteed path to happiness. For many professionals, their work is a major part of their identity. If you’re in that group, choosing a path simply for the paycheck isn’t going to lead to fulfillment on an intrinsic level.

There can be arguments against pursuing a dream job is it can’t sustain a reasonable lifestyle. For example, if following your passions leads to housing or food insecurity, an inability to access critical medical care, or similar issues, it’s wise to pause and consider those drawbacks. That’s particularly true if the period of time where that situation exists is long-term.

However, if the role you’re passionate about can meet your financial needs on a basic level, that may be sufficient for you. Many people can thrive even if they’ll never end up with an elevated lifestyle. Simply being able to keep a roof over their head, food on the table, and other core needs covered is effectively enough in their eyes. Ultimately, that’s a personal choice.

Raises Aren’t Guaranteed to Increase Fulfillment

Along a similar line, raises aren’t necessarily going to increase your level of fulfillment. It’s normal for a pay increase to give anyone a quick boost, particularly if they had any sort of financial struggle previously. However, that feeling may not last long if there is nothing else about the position they enjoy.

At times, professionals progress through high-paying career paths and never feel satisfied with their job simply because the work doesn’t align with their passions. When that happens, pay increases won’t necessarily prevent issues like burnout.

If you pursue your dream job instead, your odds of feeling fulfilled from the work you do are often higher. That can make you happier on the job and overall, which is a point that shouldn’t be ignored.

Long Journeys May Be Part of Both Equations

Even if you decide to follow the money, there’s no guarantee you’ll reach a high salary quickly. Additionally, roles where the pay rates are higher right from the beginning often require a significant financial investment, such as in education and training.

While that may be a non-issue if you can cover the cost of schooling without debt, that isn’t a reality for most. As a result, you still have a long road before you feel the benefits of the higher salary. If your duties aren’t fulfilling, trudging down that path may be particularly difficult.

With a dream job, the road may also be long. Additionally, it may require education and training and, therefore, debt. However, the journey may be easier to walk, simply because the work you do makes it feel worth it.

Being Miserable Hurts Your Career

When a person burns out, staying even moderately productive gets challenging. Resentment and frustration typically cause a person’s performance to drop. When that happens, any future opportunities to advance may effectively evaporate. As a result, they ultimately don’t reach the level of success they were hoping they’d hit.

By pursuing your dream job, your odds of staying focused and dedicated to the work increase. In turn, the quality of your work may remain higher. While you may not hit the same salary point that you could have in the other field, you could potentially still rise up the ranks, securing a solid salary that’ll leave you reasonably comfortable.

Not Everyone’s Motivated by Money

If you follow your salary, money needs to be a prime motivator for you. If that’s the case, you may be able to overlook some of the drawbacks of working in a field that doesn’t align with your other passions. The salary increases can simply serve as a driving force.

The issue is that most people aren’t motivated by money alone. While everyone may want to achieve a salary that lets them live comfortably and happily, they also want to find work that’s meaningful to them on another level. This could include jobs that support their communities or let them make a difference in a specific area. For these professionals, even if the salary that comes with a particular position is stellar, they won’t find their work rewarding.

Avoiding the “What If”

Generally speaking, not pursuing a dream job that was reasonably an option can leave people with regrets. They may wonder, “What if I had the career I actually wanted?” with surprising regularity.

While it’s true that people who pursue their passions – and those roles come with smaller salaries – may also think about what earning more money would be like, if their job is otherwise fulfilling, those moments may pass more quickly. However, if they’re earning high salaries but are miserable, thoughts back to the road not taken may be harder to shake.

Ultimately, whether you follow your dreams or a salary is a personal choice. For some, financial security will outweigh every other potential factor. If you’re in that group, that’s fine. Just make sure that you have other opportunities for fulfillment, such as a rewarding hobby or volunteer positions.

If pursuing your dreams means having a meaningful life, and you’re comfortable with the lower-earning potential, letting your passions guide you may be a better option. For this road, you want to develop a comprehensive financial plan. Along with a solid budget, outline any savings goals right away. That way, you can begin pursuing them immediately, too, increasing the odds you can live comfortably.

Are there other situations where you feel it’s best to follow your dreams instead of your salary? Are there times when going for the salary is the better option? Did you choose one path and want to tell others about your experience? Share your thoughts in the comments below.

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Try These 5 Apps If You Need Help With Your Budget

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5 budgeting apps

Keeping your finances on track isn’t always easy. Even if you have the best of intentions and proceed strategically, coming up with a functional budget often involves some trial and error. However, you can simplify and speed up the process by turning to technology. Many amazing apps can make budgeting a breeze, allowing you to account for your bills, spending habits, and more, often with just a few taps on a screen. If you need help, here are five budget apps that can help.

1. Mint

When it comes to budgeting apps, Mint has long been a leader. It’s incredibly user-friendly, making it a solid choice for the tech-savvy and those who aren’t as comfortable with technology. Plus, it can sync with a variety of accounts. You can easily monitor your current bank account, credit card, loan, investment, and bill details, all from a single interface.

After you sync your accounts, you have a variety of budgeting tools at your disposal. Some of your spending is automatically categorized, reducing your workload. However, you can also make adjustments as you see fit.

Within the app, you have the ability to set category spending limits. Plus, you can sign up for alerts relating to the limits, ensuring you know when you’re getting close to the line. Then, you can adjust your spending accordingly.

Mint also makes it easier to achieve your goals. You can choose a target and monitor your progress, which may keep you motivated. You can also track your credit score and net worth, giving you more tools to put you on the path toward financial wellness.

Ultimately, Mint is a free app with a ton of features. Plus, it’s largely hands-off, making it a solid choice for anyone who wants to create and follow a budget without much legwork.

2. YNAB

If you prefer something a bit more hands-on, YNAB could be a better choice. This app uses a zero-based approach, ensuring you plan for every dollar of income every month.

When you get paid, you tell the app exactly where you want your money to go. Along with covering bills and expenses, you can direct money to savings and various goals. Essentially, YNAB aims to make sure you think about your finances regularly, increasing awareness and leading to more conscious spending decisions.

With YNAB, you do get the ability to connect various accounts to the app. This can simplify income and debt tracking, allowing you to allocate your money more efficiently. Plus, there is a slew of educational resources available, ensuring you have access to tips and helpful details that can improve your money management skills.

It is important to note that the learning curve is a bit steeper with YNAB. However, the time necessary to get everything set up can be a benefit. It ensures you take a close look at your financial picture, increasing the odds that you’ll make wise decisions about your money and are fully aware of your spending habits.

3. PocketGuard

If overspending is an issue for you, PocketGuard may be your best bet. The app isn’t as feature-rich as some others, aiming more for a simplified approach to money management. However, it does go the extra mile when it comes to curbing bad spending habits.

With PocketGuard, you can connect various financial accounts to make tracking your income and expenses easier. Then, the app helps you allocate how much you need to send to expenses, debts, and financial goals. Once it finishes those calculations, it factors in your spending habits and lets you know how much you have left over to spend.

Making the most of PocketGuard does mean you need to have an active plan for achieving various financial goals, such as saving for large expenses or paying down debt. That way, you can ensure they’re factored into the broader equation when the app determines what you have available to spend.

4. Goodbudget

Another hands-on option for budgeting, Goodbudget relies on a strategy that’s similar to the classic envelope system. It’s more planning-focused instead of tracking-oriented, too.

Overall, Goodbudget is far more manual. You actively portion out your income into various categories, allowing you to choose how much you want to allocate. Additionally, you’ll enter in each of your expenses and debts, as it doesn’t connect directly to your accounts.

While some may worry that the degree of work makes Goodbudget cumbersome, there are benefits to the hands-on approach. Since you’re logging every expense manually, it encourages you to think about every spending decision you make and lets you see its impact on your finances. For some, that can lead to smart financial decisions.

Additionally, for the security-minded, Goodbudget doesn’t require any connections to your other accounts. While such links are typically low-risk, having none is technically the safest option available.

5. Zeta

For couples, Zeta is a budgeting app that makes it easier for both partners to get insights into joint financial responsibilities while maintaining separation in areas they prefer to keep private. As a result, it’s a solid choice for couples in any stage of a relationship that share some expenses or bills but don’t have fully entwined financial lives.

You can reveal or hide financial data from your partner, ensuring they see what’s relevant without giving them full access to all of your information. That allows this app to work well for couples who bank separately but want to make sure that household expenses are properly covered.

Plus, you can set up joint financial goals, allowing you to work toward mutually beneficial targets together. The app will even send you reminders to have “money dates,” ensuring you sit down together regularly to discuss your financial picture, make necessary changes, and otherwise keep the lines of communication open.

Have you tried any of the apps above and want to tell others about your experience? Have you used a different budgeting app to help you get a grip on your finances and think it could help others? Share your thoughts in the comments below.

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