It can be tough to manage your finances when you have a mental illness. The symptoms of mental illness can make it difficult to stick to a budget and make responsible spending decisions. [Read more…]
8 Ways to Cut Corners and Save Big Bucks
You can make a few small compromises and pay attention to how you spend your finances. You don’t have to buy or spend on what you don’t need. The cost of your insurance will vary depending on the property and the level of protection you want to purchase, typically costing around 0.5% of the home’s purchase price. According to The Wall Street Journal, only 11% of homeowners say they’re satisfied with their garage and wouldn’t want to improve it.
Go for Secondhand Products
There is nothing wrong with recycling your old clothes or buying items for a profit from someone else who has used them slightly. You might not want to wear someone else’s old clothes, but if you’re on a budget, it can be worth the risk.
Secondhand baby clothing is abundant when a parent doesn’t need it anymore as their child has grown up. It so happens when another person begins this phase of life. Used furniture is also an excellent bargain in most cases too.
Avoid Random Toy Purchases
It is way too tempting for every parent to buy toys for their children when they are out and about. Many have to bribe their kids with the dollar section at Target just so they will go along willingly. The problem, though, is that these dollars add up fast, especially because many of the items in the dollar section are now $3. One funny thing is that the kids forget all about these particular toys by the next day, and it seems like a waste of money on what’s not worthwhile.
Be Creative
There are a lot of items you can make yourself for a lower cost, such as bread, yogurt, granola, cleaning products, and more. Anything you can buy in the store is likely something that you can make yourself. And doing it yourself usually means being more cost-effective and simpler than expected! If these dollars add up from buying these items regularly, then why not save the money for something better?
Buy During the Off Season
Some items like hats and gloves are not seasonal and can be bought in the spring when stores are getting rid of their winter stock at a discounted price. During fall you can buy swim gear and camping equipment. Immediately after Christmas, cards and ornaments will be half-price. Almost all nonfood holiday items can be bought a year in advance for significant savings.
Stop Going Out to Eat
You don’t have the money, and buying cooked food is not worth the price. You can make healthier food and drinks at home for less money. Avoid buying drinks. You can drink water. It’s cheaper and better for your body in many ways, you just need a quality water refill bottle.
Stop Buying Disposables
You need to stop buying disposable products. Instead, you can buy non-paper towels, commonly known as ‘towels’ and reusable snack and meal containers might seem expensive, but you’ll save a lot of finances in the long run. Whenever you buy a disposable, you pay more for something that doesn’t last.
Shop in Bulk
Buying your staff at warehouse stores like Costco and BJ’s is a great way to save finances on all your shopping needs. You can also save even more with their coupons. You will realize that buying toilet paper in bulk will be worth it. If you have kids, they’ll love making crafts out of toilet paper rolls when there is bad weather outside.
You can now see that there are a million ways to cut corners and save your finances that you can use for better projects. Use your finances wisely on the things that matter.
Drop Your Passive Expenses
Over 20 million households own a timeshare. But how often is that timeshare being used? If you have a passive expense like such that hardly gets any use, it’s time to give it up. Expenses like that are more of a “money suck” than anything, and they can make you rack up loads of debt!
Need a Personal Loan? Here are Some Tips
If you are struggling under the weight of your obligations and need some finances, you are not alone. 43% of small businesses applied for a loan last year. Many people go to the bank when they need a substantial personal loan for help. Banks offer loans to people with good credit. However, sometimes the finances are not enough. The following are tips for choosing the right lending institution and what you should look out for when applying.
Determine the Amount You Need
First, figure out how much money you need to pay off your debts. Creating a detailed budgeting list of your monthly expenses is a great place to start and calculate their total cost per month. After adding up all your costs, you can subtract them from your monthly income. This will give you an idea of how much money you have available to you each month.
Decide on the Best Way to Get a Loan
Think about what kind of loan or loan product best suits your needs. Take a look at all the products that are accessible to you before deciding on one. For example, if your credit score is less than stellar, a personal unsecured loan may not be available to you through a bank or credit union. Another thing to consider is if you will take out a loan for an item or service that you will not use. Think about whether this would make sense and its effect on your ability to pay off your debts.
Credit Check
During the application for a personal loan, you will most likely be asked to give your credit information to the lending institution. When applying for a personal loan, look at the type of loan you are using. Decide whether it will fit into this category. Do not apply for more than one type of loan at a time. Doing so may lead you down a road that is not what you wanted.
Debt-to-Income Ratio
To land a personal loan, it is best if your file contains information such as your credit score and debt-to-income ratio. This will help determine the kind of loan you are eligible for. Hard money lenders typically follow a 60% to 80% loan-to-value ratio (LTV). The ratio is calculated by dividing your total monthly household income by debt. This will give you an idea of how much of your income is used to pay debts. It also helps determine how much of it is for you and your family to live on.
Consider the Collateral Required
A personal loan is like a payday advance, except you can use it for any purpose. You can even use it for emergency finances or credit card debt consolidation. You can even take out a loan to pay off your bills when they come due. Today, the loan demand is going strong. An estimated 30 million Americans use pawnshops every year. Many use their property as collateral to secure loans. Collateral is a document that provides security for the value of an asset in case of default. The most common form of collateral is when a borrower pledges a property to secure a loan. Collateral can also be furniture, jewelry, stocks, or other securities. It can also be anything your lender will accept if they will not listen to your arguments.
Application Fees
When applying for a personal loan, you will almost certainly be asked to pay an application fee. Constantly, individual loan companies will keep their prices low to attract more people to apply for a loan. More options are available than ever before. The numbers speak for themselves. Make sure you choose your loan wisely. Apply for the loan that costs the least amount of money.
Most people rely on payday loans to make ends meet each month. It is best that when applying for a personal loan, you compare all possible lending institutions. Choose one with terms and fees that will work for your current financial situation and yours in the future.
Follow These Tips To Keep Your Credit Card Information Safe
Keeping your credit card information safe is essential. Otherwise, you may find yourself fighting fraudulent charges and dealing with other account issues, none of which is fun. Fortunately, some simple precautions make a big difference. Here are some tips to help you keep your credit card information safe.
Look for HTTPS or a Lock Icon Before Entering Card Details
Not all websites are secure. If the URL field doesn’t show a lock or the website address doesn’t begin with “https” then your transaction may not be encrypted, making any information you enter during checkout potentially accessible.
While it’s true that sophisticated hackers can potentially get the security certificates necessary for the lock and https to appear, sites without them are essentially always unsecure. However, if you’re at an unfamiliar site (or a familiar site that doesn’t seem quite right), do some extra vetting before you enter your card information, just to be safe.
Don’t Save Your Credit Card Numbers on Websites
While saving your credit card number on a website you shop at frequently is convenient, it isn’t the most secure approach. There’s always a chance a data breach will include that information, resulting in your card details being compromised.
Instead, enter your credit card details in manually whenever possible. That way, you reduce the odds that the information will be caught up in a data breach.
Only Use Secured Internet Connections
While shopping online using the free Wi-Fi at your favorite coffee shop may seem fun, it’s a risky move. Unsecured Wi-Fi can let hackers capture data from your device, including your credit card number if you enter it while connected. They could also tap into login details, send malware to your device, and more.
Ultimately, you should never enter your credit card or other personal information and credentials using public Wi-Fi. If you have no other choice, make sure you use a vpn for chrome, or a VPN for whatever provider you’re using, to protect your traffic. That way, you have a barrier between you and any hackers.
Find Out About Virtual Account Number Options
Some credit card issuers have a virtual account number service. With this, you can generate a one-time credit card number that connects to your account. Since that number is temporary, there’s no risk if it’s stolen at a later date. You never entered your real details, making it an ideal form of protection.
Just keep in mind that virtual account numbers aren’t widely available. As a result, this will only be an option for a relatively small number of credit card users. Additionally, it does require a bit of extra effort. However, if it’s available, it’s far better to be slightly inconvenienced getting a temporary number than by having your card number stolen.
Use Two-Factor Authentication
Ensuring hackers can’t access your credit card account is another critical part of the equation. Use two-factor authentication to reduce the odds of them getting in significantly. Even if they manage to get your login details, they won’t be able to access your account without a secondary step, such as a code from an email or text. That makes it harder to pretend that they’re you and take certain actions.
Do you have any other tips that can help someone keep their credit card information safe online? Have you used the strategies above and find that they’re effective, or do you wish there were other approaches available? Share your thoughts in the comments below.
Read More:
- How to Keep Online Transactions Safe and Secure
- Is It Safe to Throw Away Bank Statements?
- 7 Tips to Keep You Safe While Gambling Online
Tamila McDonald is a U.S. Army veteran with 20 years of service, including five years as a military financial advisor. After retiring from the Army, she spent eight years as an AFCPE-certified personal financial advisor for wounded warriors and their families. Now she writes about personal finance and benefits programs for numerous financial websites.
How Much Should You Be Paying for Rent?
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.
Read More:
- How Much Should You Spend on Grocery Each Month?
- Money-Saving Tricks for Online Shopping
- Try These 5 Apps If You Need Help With Your Budget
Tamila McDonald is a U.S. Army veteran with 20 years of service, including five years as a military financial advisor. After retiring from the Army, she spent eight years as an AFCPE-certified personal financial advisor for wounded warriors and their families. Now she writes about personal finance and benefits programs for numerous financial websites.
5 Money Management Tips You Should Know as a New Entrepreneur
Managing your business’s finances well is of the utmost importance. This ensures that your company can run smoothly, covering all its expenses as well as planning for future strategies and investments in the business’s future. Indeed, it is crucial that your company – regardless of the business focus and industry – is profitable, given that this can support a positive cash flow which, in turn, can help drive the business further.
But, no matter the size of your business and whether it is new or well-established with a long history, managing its finances is a crucial aspect. You must make sure that you do everything necessary to support this. Well-planned money management helps you achieve positive cash flow, meaning that such a plan enables you to keep track of and organise your revenue effectively. [Read more…]
Remodeling your Basement on a Budget
Whether you need an extra entertainment spot, a living space, or a playroom for your kids, basements will often be the ideal spot to look into, with a remodel allowing you to recoup as much as 70% of your home’s value. This may, however, come at a cost, with makeover costs running into the thousands. Fortunately, not all remodels cost a fortune. There are a few budget-friendly alternatives, with the following guide coming in handy.
Prioritize Your Walls, Floors, and Ceilings
The walls, floors, and ceilings will often be the primary focus in your basement, with these areas allowing you to customize your extra space as you wish. Make it a point to remodel your basement with your existing property themes for the best results. This makes for a seamless transition, helping you blend and complement your new space. This will also come in handy in reducing your finances for moving to a larger home, with basement remodels costing 80% less than buying a new property. With this, you can also rest assured of quality improvements t your home, with 304 stainless steel used in various parts of your remodel helping you utilize state-of-the-art products that can withstand temperatures of up to 1004of (540oc).
To start with, consider adding framing and wall installations for a more polished look. Carpet or tile flooring will also be ideal for your remodel, with these often requiring less time and expertise. Carpet tiles will often be readily available in local stores, with simple installation procedures allowing you to complete your flooring in minutes.
A fresh coat of paint will also come in handy for areas such as ducts, beams, and pipes. Acrylic paint will often be an ideal alternative for your walls, with multiple coats allowing you to achieve high finishes for concrete basements. Light colors will also be better suited for your space, with a combination of an accent wall enabling you to achieve a brighter and bigger space.
Install Lighting Fixtures
Lighting will be a crucial part of your basement, with wall light fixtures being an ideal option. Wall lamps allow light to bounce off your basement walls, unlike hanging chandeliers that make your space feel constricted. With this in mind, consider getting suitable sized fixtures, with the size and layout of your basement being ideal factors to consider. Ambient lighting is a good start for any new remodels, with recessed LED lighting helping you keep your finances to a minimum. String lights can also be another alternative, with this option working best when hanging on exposed beams.
Utilize Open Spaces
Unlike other parts of your home that benefit from closed walls, open spaces will be essential for your new basement space. Rather than creating walls to get multiple rooms, consider using your basement as an open floor area. You can create multiple rooms, such as an office area and a guest bedroom. Different interior design styles can help you achieve a flawless transition, such as smaller carpets suited to each location. Differentiating your furniture styles can also help you achieve this, with modern styles working well with your office space and casual themes suited to your bedroom space.
Create Room for Storage
Unfinished basement spaces can often become a hazard in the long run, with numerous homeowners turning these into storage sheds. This will essentially be a result of inadequate storage spaces. To avoid this, ensure you have ample storage in your basement. Since many basements have enough vertical space for shelves, consider adding these to your area. Cabinets and closets will usually have enough space to store clothes, toys, and unwanted items that may lead to clutter in your basement.
Improve Your Space
Basements will often lack the basic amenities that other parts of the property come with. This will require you to install HVAC systems, with dehumidifiers also being essential components for keeping your humidity levels low. In addition to this, improving your space may also require you to add a bath, if the space is used as a living area, with a half bath being ideal for reducing the overall finances needed for remodeling.
Improvements such as these have been reported to reduce the environmental impact of new house constructions, with the Purdue University Department of Agriculture and Biological Engineering reporting an estimated 3500 dust explosions in the last 30 years. 2019 recorded the highest incidences, with remodels allowing homeowners to minimize dust explosions associated with the construction industry during the processing of materials.
Your basement remodel should not have to cost you more than you can afford, with the above guide breaking down areas where you can save up on costs. A few of these include customizing your walls, ceilings, and floors, with additional improvements in your storage and lighting fixtures helping you get essential upgrades in your basement.
Retirement Bill in Congress
Congress has a new retirement bill in the works. They’re calling it Secure 2.0 and it has a few transformational pieces to it that will change retirement saving and retirement income planning. Before we get too far into what this new bill looks like, let’s take a look at what the original Secure Act did.
Secure Act 1.0
The Secure Act was enacted on January 1, 2020, and was the largest retirement reform bill since the Pension Protection Act of 2006. The full title is Setting Every Community Up For Retirement Enhancement (SECURE). And it passed through Congress with a 417-3 vote.
The beginning age to which to start taking required minimum distributions (RMD) from retirement accounts (excluding Roth accounts) was moved from 70 ½ to 72.
People can make retirement contributions no matter what age, as long as they have earned income. The previous limit was 70 ½ when RMDs would begin.
Inherited IRAs (non-spouse beneficiaries) have to have the entire account withdrawn within 10 years of receiving it. This means that if someone passes away and their beneficiary is someone other than their spouse, that beneficiary needs to have the entire account withdrawn and closed within 10 years of receiving the inherited IRA. However, there are exceptions, including a surviving spouse, a minor child (the 10-year rule starts when a child reaches the age of majority), a disabled individual, a chronically ill individual, an individual who is not more than 10 years younger than the IRA owner.
Employees who work part-time, at least 500 hours per year, are now eligible to contribute to their employer-sponsored retirement plan.
Secure 2.0
What’s different with this new law?
For one, the vote passed 414-5. Not as lopsided as the previous one, but still an incredibly convincing tally. “Secure 2.0 is fundamentally designed to make it easier for people to save” – Susan Neely, American Council of Life Insurers President and CEO.
The catch-up contribution provision got a facelift. 401k account owners that are 50 and over are eligible to contribute up to $10,000 more than the maximum for those under 50.
The beginning age for required minimum distributions (RMD) also went up, from 72 to 75. The Yahoo Finance article noted that some reps took it a step further. “ My goal is to get rid of it completely.” – Representative Kevin Brady (R-TX).
The bill would also push employers to automatically enroll new employees into the company-sponsored retirement plan.
Small businesses that stare down the, sometimes, daunting expense of establishing and maintaining a company-sponsored retirement plan can receive assistance. They can receive credits for matching contributions.
One very progressive part of the bill that is sure to garner a lot of attention is the ability of people paying down student loans to save for retirement. The bill would allow employers to “match” a students’ loan payment as a retirement contribution. For example, if the student made a $100 student loan payment, the employer would contribute $100 to their retirement account on their behalf.
The bill introduces a SAVERS credit, which would give lower-income individuals a tax break if they save for retirement.
This is another transformative retirement bill. I’m very pleased society is taking steps to encourage individuals to plan and save for the future.
Related reading:
Ensuring Financial Security Throughout Retirement
5 Solutions for Managing Your Money After Retirement
401k Withdrawal Taxes and Penalties
Disclaimer:
**Securities offered through Securities America, Inc., Member FINRA/SIPC. Advisory services offered through Securities America Advisors, Inc. Securities America and its representatives do not provide tax or legal advice; therefore, it is important to coordinate with your tax or legal advisor regarding your specific situation. Please see the website for full disclosures: www.crgfinancialservices.com
My name is Jacob Sensiba and I am a Financial Advisor. My areas of expertise include, but are not limited to, retirement planning, budgets, and wealth management. Please feel free to contact me at: jacob@crgfinancialservices.com
How to Write a Will
Taking care of your finances includes ensuring that you have a will in place. About 55% of people in the U.S die without an estate plan or a will in place. About 34% of those that pass away without a will thought about it but got no further than talking to friends or family about it. Writing a will is a simple way to ensure that your finances are managed the way you want them to be after you are no longer here.
A Will Not Only Distributes Your Estate
For many people thinking about a will conjures up thoughts about their finances. While it is true a will has a lot to do with the future of your finances, that is not the only reason you need to have a will in place. A will can be used to designate things like who will get guardianship of your minor children, how your personal effects will be divided among your beneficiaries, and even who will raise your cat if you have one.
Your last will and testament provides direction to your beneficiaries about your final wishes and can contain a wide range of actions that you wished carried out on your behalf after you are gone. It can contain as much or as little detail as you want it to contain. For example, if you are married and you want your spouse to inherit everything, there are forms that allow you to designate how much each of your beneficiaries will receive. You simply state you want 100% of your estate to go to your spouse.
Having a will in place ensures that there is no confusion in how you want your estate handled after your death. Additionally, a well structured will can help to keep your beneficiaries from having to deal with court action and long probates.
Follow the Rules
Before you sit down to write your will check out the laws in your state when it comes to wills and maintaining validity. For example, scribbling out your wishes and tucking it away in a draw may not be sufficient. You may have to have one or two witnesses to the instrument to ensure that your will is considered a valid instrument. Do a little research to make sure you are following the rules.
Decide Who Will Oversee Your Will
You can choose the person that will ensure your finances are managed as you see fit by naming an executor in your will. The executor is the person responsible for carrying out your wishes, paying off debts, taking inventory of your goods, and ensuring your beneficiaries are taken care of as outlined in your will.
Name Your Beneficiaries
As you write your will be sure to consider who you want to benefit from your finances and personal property after you are gone. You can bequest gifts to your favorite charities in your will. You have the power to name anyone that you want to name in your will. If you want to share some of your finances with your hairdresser, your Alma Mater, whomever or whatever, that is entirely up to you.
Gather a List of Your Assets
Make a list of all of your real property. Don’t forget to include things like your car, your home, your boat, and other real property. You may want to leave your grandfathers watch that was handed down to you to a specific beneficiary, list that as well. Anything that you want to have a say in who gets it after you are gone should be included in your will.
Should You Have an Attorney Draw Up Your Will>?
There will come a point in the process where you may ask yourself if you need an attorney to manage writing a will and to help with estate planning. The fact is it all depends on the size of your estate and the complexities of the estate as to whether you should consider hiring an attorney to manage your documents. One of the reasons that people choose to hire an attorney for estate planning is to keep tax responsibility down for their beneficiaries. The IRS collected roughly $3.4 trillion in 2011 alone, many people feel like they do not want to “donate” more tax money after they are gone.
If writing a will seems daunting, contact an attorney that can help you arrange your finances, save on some estate tax for your family, and take the stress out of the process. In any case, get your will done.
The Typical Credit Card Processor Fees You Should Know
Credit card processors are integral for businesses in this digital age. More shoppers prefer to use credit cards over cash, and businesses that don’t accept them can lose potential sales. Credit card processors make it possible for businesses to take advantage of this trend by allowing them to process credit card payments quickly and securely. [Read more…]
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