“Buying a home is a big step in life, we all want a place we can call our home. Whether you’re in the process of buying a house or already have a few years left on your mortgage, it’s worth considering mortgage life insurance. [Read more…]
How Technology Is Enhancing Sports Betting
Success in betting depends on your strategy. You have to gather accurate information about your preferred match and analyze it in order to make a winning bet. In the past, getting essential data for betting was quite challenging. Bettors wasted valuable time sourcing and evaluating the information manually. With this approach, the margin of error was high and most gamblers ended up making the wrong bets.
However, things have greatly changed now that many players are using technology such as this Soccer Predictions website, for analyzing and predicting how the outcome of any event is likely to be. Unlike before, the probability of success in sports betting has increased tremendously. In this article, we will look into the ways technology is enhancing the sports betting industry.
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What the Solar Manufacturing Process Actually Looks Like in Practice
A survey back in 2022 shows that 69% of American adults favor prioritizing the development of renewable energy sources. In the same study, about 67% think the US should combine fossil fuels and renewable energy like solar.
If you’re one of these forward-thinking people, you might be wondering what goes into the solar manufacturing process. Why would someone invest in that technology? Where does this technology come from?
You don’t have to wonder anymore! We’re here to bust some of the myths that may still be in your head while showing you how the process works. [Read more…]
Just Lost Your Job? Here’s 10 Things Not to Do With Your Severance Pay
In some cases, companies offer severance pay to laid-off employees. If you’re someone receiving severance pay or want to ensure you’re prepared should a layoff and severance pay come later, it’s wise to have a plan for the money. Otherwise, it may not last as long as you’d expect. As you create a strategy, here are ten things not to do with your severance pay.
1. Big Purchases
Generally, you shouldn’t use severance pay for a big purchase. Primarily, that’s because the money is meant to substitute for your income until you find a new opportunity.
Unless the big purchase is essential for living, such as replacing a broken down refrigerator that isn’t repairable with a reasonably-priced model, it’s better not to treat the cash as a windfall that you can use for luxuries. That attitude can cause you to splurge far more often than you may realize, causing your severance pay to run out fast.
However, if you’re talking about a genuine essential, you could potentially make a big purchase as long as you plan accordingly. Determine if you can reasonably survive on what remains until you find a job. If the answer is yes and you’re willing to stick to a strict budget moving forward, then the purchase is potentially supportable.
2. Small Splurges
In some cases, people feel like they deserve small splurges when they’re going through an emotionally challenging situation like a layoff. They view the purchases as a pick-me-up, hoping it will improve their mood.
The issue is that small splurges can often add up fast. For example, while paying $5, $7, or more for a coffee at a café may seem like no big deal on the surface, if you do it every day for weeks on end, that represents a lot of money.
If you do want to give yourself the occasional treat, work it into your budget. For example, you could allocate $10 per week for spontaneous splurges. Then, pull out the $10 in cash and only use that money for the small luxury purchase. Once that cash is gone, no more splurges until you get the next $10 the following week.
3. Lend the Money
Some people receive their severance pay as a lump sum, and it can be a large amount of money in some cases. As a result, people may believe it creates an opportunity to assist their nearest and dearest, particularly if the person they know is struggling financially.
However, lending the money comes with the risk of not getting paid back. As a result, if the person who borrows it doesn’t handle their side of the arrangement, you might find yourself falling short during a time when you don’t have other income.
Ultimately, lending money to loved ones is always risky, but it’s particularly dangerous during times of personal uncertainty. Since that’s the case, it’s better to avoid this entirely.
4. Risky Investments
When your regular source of income disappears, and you aren’t sure when you’ll get a new job, investing the cash might seem like a smart move. However, all investing comes with risk, and not all opportunities are created equal. There’s always a chance that an investment isn’t going to pan out, causing you to lose significant amounts of money.
Since financial distress can increase your odds of considering risky investments, as those may seem like they have the most growth potential, your chance of losses is high. As a result, it’s usually best to avoid investing your severance pay in hopes of quick growth, as you could suddenly find yourself without a source of income.
5. Ignore Taxes
Many people don’t realize that severance pay is taxable. Additionally, even though an employer usually withholds some of the money for taxes, it may be insufficient, depending on what’s listed on your W-4.
Additionally, the entire amount is taxable in the year you receive it. As a result, lump sums could mean owing more in taxes during one year than you’d expect. That’s particularly true if you’re shifted into the next tax bracket up.
If you’re receiving severance pay, understand that it’s taxed the same as normal income. Review your withholdings, determine if enough was set aside, and consider saving some of the severance pay to cover any tax shortfalls should they occur.
6. Calling It Spending Money
Generally, severance pay is a short-term income replacement. However, calling it “spending money” can cause you to adopt a potentially dangerous mindset. It may lead you to believe that spending every dollar is okay, even if that means not having an emergency fund to cover the unexpected.
While it’s true that using severance to cover expenses is fine, it’s also wise to save some for potential emergencies. At times, that may mean adjusting your budget and spending habits to live on less, at least until you find a new job to replace your income. But it’s an adjustment worth making, as it can ensure that you’re not in a tough spot if something unanticipated occurs.
7. Keep Your Old Budget
Even if your severance pay provides you with the same amount of income you had previously for several months, that doesn’t mean you should keep your old budget. Instead, it’s best to find areas where you can cut back. That way, if you don’t secure a new position before the period your severance pay covers ends, you still have some money available.
Ideally, you want to scale back as much as possible while still ensuring all of your obligations are met. Remember, any sacrifices you’re making are likely short-term, as you can move toward your old budget once you’re working again if the income amount is similar. Plus, if you end up in a job that pays less, you’ll have a potentially workable budget already in place, which could give you peace of mind.
8. Skip Health Insurance
When you’re laid off, you usually have the option to continue your health insurance. That’s because of the Consolidated Omnibus Budget Reconciliation Act (COBRA), which outlines requirements for employers to have pathways for terminated employees to keep their coverage for up to 18 months.
COBRA insurance will cost more out of pocket in many cases, as the employer doesn’t have to pay a portion of the premiums. However, declining health insurance puts you at risk. Any medical needs you have before you get a new job with medical coverage will have to be paid out-of-pocket, and that’s potentially far more costly than covering the higher premium. As a result, it’s better to take a close look at this option instead of assuming that skipping it is the right move.
9. Let Debts Get Behind
After a layoff, it’s potentially tempting to look for ways to put any required debt payments on pause until you have a new position. Many lenders do have programs that make that possible, but some do come with financial risk. For example, forbearance can let you skip some payments, but interest may continue to accrue on your remaining balance. As a result, your debt could grow surprisingly quickly depending on the terms.
With some lenders, you might have to pay make-up payments once the pause ends. In this case, you could find yourself owing several payments all at once, and that could throw your future budget way off balance or might increase your risk of default.
While it’s fine to use the various programs if you genuinely can’t keep up with your debts, it’s better to continue with payments if you’re able. That ensures you don’t accidentally accrue more debt through interest or find yourself in a bind later.
10. Not Getting Financial Advice
In some cases, using your severance pay seems simple. After all, you can generally treat it like income, using it to cover expenses and save for an emergency.
However, if you aren’t sure whether you’ll get a new job quickly or if the pay in a different position would at least match your last one, getting financial advice from a professional isn’t a bad idea. They can help you come up with a plan to stretch your severance pay to ensure it lasts as long as possible, giving you more wiggle room if finding a new opportunity proves more difficult than you initially expected.
Is there anything else that you think people should avoid doing with their severance pay? Do you have any tips that can help someone properly manage their severance pay? Share your thoughts in the comments below.
Read More:
- This Is What You Should Do If You’re Laid Off
- You Can Get Your Finances in Order-How to Deal with Financial Distress
- Is 50 Too Old to Change Jobs?
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.
Actions That Lead to People Paying Higher Costs
Many people want to be able to learn how to make their finances do whatever they want them to do. This means that you’re working hard and keeping an eye open for ways in which you can save and make sound financial decisions. That said, there are actions that can lead to you paying higher costs over time. This may make your hard work end up being in vain since you won’t be able to keep a hold of your finances in the best possible way. Have a look below to see some of these actions so that you can stop them in their tracks and maximize your finances.
Breaking the Law
The first thing that may see you losing a chunk of your finances is breaking the law. Rules and regulations exist for a reason, and this is to ensure that everything is done with order. They also help make sure that citizens stay safe from various things that could go wrong if care isn’t taken. This is why breaking the law calls for jail terms and fines.
Something like DUI may be one of the more serious instances of breaking the law as a driver. On top of placing fellow road users at risk, DUI also puts the driver under the influence at serious risk of fatality. This is why when you’re caught and charged for DUI, you’ll typically have to pay massive fines on top of other consequences. According to the Law Office of Jason Skala, LLC, the nighttime hours when alcohol-impaired driving takes its toll around 9:00 p.m. to 3:00 a.m. the most often in 2018. Regardless of the day or hour, it’s never worth it to engage in such a risky activity.
Vehicle Issues
Another action that may cause you to pay a good sum of money that you may have saved is letting vehicle issues pile up. One of these is letting your vehicle go for a long time without service and thus predisposing it to the risk of unexpected breakdowns. This makes it important for you to keep up with your car’s recommended service schedule.
Another troublesome and expensive car issue is parking, which you may not even know costs you good money. According to INRIX, searching for a parking spot in the United States costs motorists $73 billion on average every single year in terms of wasted time and fuel. This is clearly enough money to motivate you to search for a long-lasting solution, such as moving to a place that’s closer to your place of work so that you don’t have to deal with the issues associated with commuting.
Health and Medical Matters
The final action that might lead to you paying higher costs is delaying dealing with health issues and medical matters. This could see the issue get worse and call for more money to fix than it would have called for if you addressed it early enough. This is not even considering the fact that it may get more painful and uncomfortable to have to endure.
You also need to go to the doctor for regular health checkups in order to make sure that there are no issues waiting to act up. According to Care Station Medical Group, you should visit a doctor at least once every year. Try your best to keep up with this and you may save money in terms of health costs for you and your family.
Keep an eye on these actions to lower the chances of having to pay higher costs. When you do, you may find it easy to live a more fulfilling life that doesn’t leave you with unnecessary expenses. This is one of the best ways to maintain control of your finances and live a happy yet cost-effective life.
Six Things To Look Out For When Applying For A Personal Loan
It’s 2023, and the global recession isn’t really a healthy environment for your savings or investments. So let’s face it, the automobile or real estate loan you’ve been looking to get now looks more like a mirage. Doesn’t it? [Read more…]
A Complete Overview of Exploring Short-Term Loans
Short-term loans are a popular option for those in need of quick cash in an emergency for a short period of time. They offer fast approval and can be used for a variety of purposes, including unexpected expenses, emergencies, or to bridge the gap between pay checks. There is a range of short-term loans to choose from, all varying in terms and conditions. Below, we will provide a complete overview of short-term loans so you can learn more about them. [Read more…]
8 Steps to Take If Your Child Is Injured In a Pedestrian Accident
Accidents involving pedestrians frequently lead to severe injuries. In contrast to car passengers, pedestrians have no outside protection. Recovery from injuries can take months or years. Children under the age of 15 are particularly vulnerable to serious injuries in pedestrian accidents. Parents must be informed about accidents involving kid pedestrians to reduce the likelihood of these mishaps and the degree of injuries. In case your child is injured due to a pedestrian accident, contact a local PI law firm to help you recover compensation.
Destiny 2 – basic knowledge that will be useful to beginners at the start of the game
When many players come to a new Destiny 2 project, they are faced with a misunderstanding of the main mechanics – leveling and subclass systems, raids and strikes, content updates and others.
How to Raise Capital for Investment Properties As a Real Estate Agent
Owning real estate is one of the surest paths to passive income and even wealth. If you’re a real estate agent, you have an advantage most people don’t – you come across properties that would be great investments all the time. The problem is, even if you see all the best deals, it’s meaningless if you don’t have the capital to buy into them.
You would be surprised to find out that raising money for deals isn’t as much of an uphill battle as you might think. There are actually several strategies you can use to raise money to invest in real estate, and the best approach will depend on your individual situation and goals.
Here are some strategies that you may want to consider as you look for ways to raise money to invest in real estate:
Use Your Personal Savings
One of the simplest ways to raise money to invest in real estate is to use your own personal savings. If you have been saving money over time, you may be able to use these funds to make a down payment on a property or to cover other upfront costs associated with real estate investing. If you own your primary residence, your home equity is a bit like a secret savings account and you can tap into it to buy an investment property.
Take Out a Loan
Another option is to take out a loan to cover the costs of investing in real estate. There are several different types of loans that you may be able to use. As a real estate agent, you might qualify for a personal line of credit or loans for small businesses using the track record of your business entity to show your credibility. Keep in mind that you will need to have good credit and a solid financial history in order to qualify for most loans.
Partner With Other Investors
If you don’t have the funds to invest in real estate on your own, you may be able to find partners to invest with you. This can be a good way to share the risk and costs of investing in real estate. Just be sure to carefully vet any potential partners and to have a clear agreement in place before moving forward. Syndication is an investing model where up to 10 investors pool their resources, which allows them to buy bigger properties, even commercial ones. Joining a syndication group would allow you to get into an amazing deal without financially overexerting yourself.
Partner With Your Clients
As a real estate agent, you already have a wide database of people and a lot of them actually have capital to help you invest in real estate. In this current economy, most people are taking their money out of things like the stock market because they’ve become too volatile. You can offer those people a safer place to put their money. Whether you need cash for a short-term real estate deal or a long-term buy and hold, your own sphere of influence probably has people who would want to partner with you on deals, and you can very easily reach out to them letting them know you have a great deal. If you don’t have your own money to contribute to the deals, you can offer to do all the legwork, while they provide the capital. You can also offer the same thing to friends and family who have access to capital. For most people, the offer to grow their money without them doing any extra work will be an offer too good to pass up.
Consider Alternative Financing Options
There are also alternative financing options that you may be able to use to raise money. For example, you may be able to secure financing through a hard money lender.
Borrowing money from lenders like private money lender Miami is especially great if you’re doing a short-term flip where you can pay the money back before the interest skyrockets.
You could also consider a seller financing deal – this is where you pay the seller in installments instead of buying the home through a traditional mortgage. Make sure you’re 100% clear on the terms of these kinds of deals so that there’ll be no unpleasant fine print to come back to bite you.
Overall, there are many different strategies that real estate agents can use to raise money to invest in real estate. Don’t think that just because you don’t have the money yourself that you’ll never be able to get into an investment property. There are many sources you can tap into for the cash you need. By carefully considering your options and working with a financial advisor or other professional, you can find the best approach for your needs and goals.