<![CDATA[Feeds: Credit.com]]> https://www.credit.com/blog/ en-us Fri, 13 May 2022 04:28:00 +0000 Thu, 12 May 2022 15:47:07 +0000 http://blog.credit.com/?p=197760 https://www.credit.com/blog/hard-skills-vs-soft-skills/ <![CDATA[Hard Skills vs. Soft Skills: Which Ones Do Employers Want?]]> Fri, 13 May 2022 04:28:00 +0000 This article originally appeared on My Life, I Guess, and has been republished here with permission.

The views and opinions expressed in this article are those of the author only and are not endorsed by Credit.com.

You might be polishing up your resume or just reviewing your own skill sets and how they relate to your current position, but knowing where your strengths (and weaknesses) lie is valuable knowledge. 

Hard Skills vs. Soft Skills
Hard Skills vs. Soft Skills

While most of us can rattle off what we can do within our job titles, understanding our abilities as hard skills vs. soft skills might not be quite as easy. But potential employers and others who might scan a resume or interview a potential candidate typically look for specific skill sets. 

Knowing what hard and soft skills are and how they’re best utilized in a resume or interview is vital to being a successful job hunter

Let’s demystify hard skills vs. soft skills and show you how to best use them to showcase your most advantageous abilities.

Defining Hard Skills vs. Soft Skills

Just like the contrasting terms imply, these types of skills or abilities make you successful at a job. But, you develop and hone each kind in a completely different way. Employers are looking for both hard skills and soft skills. And, the value of each differs by the employer and the everyday needs of a workplace.

Hard Skills

When you’re trained or educated in a subject, you’re building hard skills. Any skill or ability that is specific to a career or job is considered a hard skill. 

These proficiencies may be required before getting a job, like a particular accreditation or license that is a condition for employment. But others are attained on the job, like hands-on training for a proprietary program used in a company. These technical skills might be job-specific and are typically directly noted on a job description.

Hard skills are typically very quantifiable, so they usually come with a way for an employer to test for them. For example, a certification might be required to prove your ability. Or, a potential employer might put job seekers to an on-the-spot test or trial of the hard skills to see if they’re up to snuff. 

Hard skills focus on completing a task, running a program, or following a set of procedures necessary to complete a job successfully.

Some examples of common hard skills you might see on a resume or job description are:

  • Technical Hard Skills: master of a specific computer programming or language
  • Computer Hard Skills: CRM platform or Quickbooks proficiency
  • Analytical Hard Skills: database management or data engineering
  • Marketing Hard Skills: social media marketing or UX design
  • Presentation Hard Skills: graphic design or slideshows

Soft Skills

By contrast, soft skills are much less quantifiable or verifiable in a traditional way. 

Soft skills define your personality and ability to work with other people. They help you to fit into the culture of a job. Some of these interpersonal attributes are good indicators to a potential employer of how well you will work with other employees and management. 

While not expressly trained for soft skills, you continually pick them up with each position you hold and further develop the ones that come naturally to you.

One key component of understanding soft skills is recognizing that they are transferable. This means that since soft skills are not job-specific, they move with the employee from position to position, adding value to each job held. They are typically more of a personality trait than something taught in a class. Soft skills can be honed, however, and improved for their own intrinsic sake.

Just like there’s a multitude of personality traits, there are a lot of soft skills employees have, like:

  • Communication Skills: negotiation, persuasion, public speaking, non-verbal communication
  • Critical Thinking Skills: creativity, problem-solving, troubleshooting, willingness to learn
  • Leadership Skills: conflict management, decision making, mentoring, managing remote teams, motivating, project management, talent management
  • Positive Attitude Skills: enthusiasm, honesty, respectfulness, confidence
  • Teamwork Skills: collaborative, diversity awareness, networking, selling skills, teambuilding
  • Work Ethic Skills: dependability, motivation, results-oriented, reliability

Related read: How to Develop High Income Skills

What’s the Difference between Hard and Soft Skills?

An easy way to remember the difference between hard and soft skills is that hard skills are the qualifications that land you a job interview, while your soft skills cement the job offer. 

In other words, having specific skills, certifications, or abilities will help a potential employer see your value and what you could add to the company. 

Once you have an interview, a potential employer can see how well you will work with the corporate culture and other employees if offered the job. 

Not every situation allows for all – or even any – soft skills to be shown in person. But these personality attributes can either be seen, experienced, or talked about to emphasize their importance or level of expertise in a job seeker’s skill set.

What Are the Most In-Demand Skills?

While every job description is specific to what is needed for that position, there are still in-demand hard and soft skills that many employers are consistently looking for in the workplace. Many of these job skills are valuable across multiple career pathways, allowing for a crossover of skill sets to be used in various ways.

Hard skills that are in-demand by most employers usually fall in one of the following categories: math, software, writing, data analysis, or scientific knowledge.

Some of the most commonly desired hard skills are accounting and finance, copywriting, graphic design, social media, HTML/Java Script, Cloud computing, computer troubleshooting, and business and data analysis.

Soft skills are continually in-demand in the workplace, since they assist in employee relations and help the business run smoothly. Some of the most sought-after soft skills are problem-solving, time management, organization, communication, and collaboration.

It’s easy to see why these are the most in-demand skills since these soft skills together describe an employee that can work well with others, works well alone, and is capable of keeping the boss and team informed of their work.

Identifying What Skills an Employer Wants

Looking for the hard or soft skills that an employer wants might seem difficult, but many times the job description specifically lays out the characteristics or qualifications the job requires right upfront. 

Sometimes the soft skills are labeled under what the potential employee must do on the job. For example, if the job posting mentions working with multiple people, teams, or customers, the employer is looking for communication and interpersonal skills. In other words, these soft skills are the result of the action an employer is seeking.

Hard skills are usually laid out specifically in job postings, naming certifications, abilities, or skill sets as a minimum requirement for a job. However, some hard skills are not listed explicitly on job listings, but rather are grouped into categories, allowing for some wiggle room.

Tip: For career opportunities that do not clearly identify the hard skills required, a good rule of thumb is to research similar jobs and see what hard skills are typically used or attained within that type of position. 

Having this type of knowledge is always beneficial for a job seeker. Showing motivation and enthusiasm for a career in an interview by simply demonstrating that you took the time to seek out this “insider” knowledge could be a great way to integrate soft skills into the discussion of potential hard skills needed.

Related read: What to Do When You Lose Your Job & Lessons You Can Learn

What Skills Do I Have?

Knowing what hard and soft skills you have is crucial to effective resume building and job searching.

Hard skills are usually the easiest to identify since you will have earned a title, certificate, or another identifier for most of them. But other hard skills are ongoing, like proficiency in computer-based skills. So thinking of all of your current job activities can assist you in creating a working list for the potential hard skills you have. These continually increasing hard skills are important in a job search, but be sure you can discuss or prove your abilities should the need arise.

Soft skills might be a bit more challenging to pin down. This is even though there are only a relatively small number of them compared to the almost endless list of hard skills. When reflecting on your soft skills, one starting point is to look back at previous evaluations, reference letters, or other personal assessments others have completed about you. This process will give you a feel for what others see as your strengths.

Tip: For any soft skills that you identify for yourself, try to think of a few specific examples that show this skill in action. Not only can you confirm this soft skill is undeniably in your repertoire, but you will also have some talking points ready for interviews and networking events.

It’s smart for a job seeker to focus on what hard and soft skills are needed for a specific job opportunity. Here are a few tips to help you maximize your ability to use your skill sets to land the job.

Resume: Personalize each resume you send out based on what the job listing mentions as essential hard or soft skills. Add or remove skills from your resume to highlight or include those specifically desired skills for each specific job. This shows that your qualifications and abilities perfectly match a job listing.

Cover Letter: Cover letters should expressly reflect the job you’re applying for, as well as the soft and hard skills that make you the perfect applicant for the opportunity. If the job listing includes characteristics needed for the job, mention them in your cover letter by connecting a career experience or situation to the soft skill. You can also briefly mention hard skills in a cover letter by hitting on the most important skills listed in the job description.

Interview: Talking with a potential employer in an interview is the perfect time to showcase your soft skills while describing your hard skills. Instead of telling an interviewer your soft skill set, show them how well you fit into a workplace through brief examples from past jobs. Explain hard skills while also pairing the explanation with an illustration of your soft skills in action.

This article originally appeared on Credit.com.

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http://blog.credit.com/?p=197699 https://www.credit.com/blog/terrible-money-habits/ <![CDATA[10 Terrible Money Habits That Affect Your Wallet and Health]]> Tue, 3 May 2022 04:04:00 +0000 This article originally appeared on Radical FIRE and has been republished here with permission.

Do you know those videos where people are smoking several packs of cigarettes in one go? Or the ones where people don’t remember they bought a TV when drunk? Those are the images that show up in memes, but more often than not, they resemble a truth. 

The actual problem is that many people don’t see that they have unhealthy habits. They see it as something they simply do, it’s part of their personality, and they can’t do something about it. Rather than set aside money for your savings plan, we have this impulse to buy stuff even if it’s not within your budget. Living paycheck to paycheck without any regard for the amount of money you spend is such a negative habit anyone should remove from their lives.

As with many things, they are addictive, and they cost a lot of money.

I have compiled a list of 11 habits that are bad for your money and your health. I am guilty of a few of them, and a few of them I’ve seen other people do to themselves. Causing stress, unhappiness, shortages of money, and more.

1. Smoking

Smoking is the single most preventable cause of death and disease, according to the World Health Organisation. In Europe, over 16% of all deaths are coming from tobacco use. While in the US, smoking is costing more than $300 billion every year!

Smoking can have harmful side effects, which I think we all know. From lung cancer to heart disease and everything in between.

I have to admit I’ve also smoked myself. It started when I was going out in college. I was having loads of alcohol, and I was having an occasional cigarette. Then after a few months, I started buying cigarettes myself when I was going out, so I had my own pack. This is a huge red flag. If you’re there now, know it’s not too early to stop!

After smoking when going out, I started to smoke whenever I was stressed. That sounds like a very healthy pattern, right? When I had exams, midterms and needed to study, I was smoking. Just to relax, to release stress, and to keep me going. I told myself it’s okay to smoke several times per day when studying because it prevents stress.

I think this entire thing lasted around a year. Then all of a sudden, I was done with it. I swore to myself I would never buy another pack again, and that was my smoking habit.

BUT, smoking is also costly. You pay an average of €8 for a pack of cigarettes, which can be up to €250 per month just for smoking when you smoke a pack a day. Let’s imagine what you can all do with €250 per month! (Hint: invest it in the stock market, buy index funds, read an amazing book).

Fun fact: smokers earn around 20% less than non-smokers, according to Glassdoor.

2. Coffee

Buying coffee every time you go to work may cost you a lot of money without thinking about it. 

Some people may have 4 cups of coffee a day, so buying them at coffee shops may be a little pricey. Coffee may cost you $4 per cup, which means you spend $85 a month on coffee if you only drink one cup. 

While this isn’t why millennials can’t buy houses, it could help if you could save that money and invest it instead. 

If you are a coffee lover and you really can’t stop it. Why not try to make your own coffee at home and bring it to your office. By doing this, the money you save can add up significantly and help you and your budget all the more. 

Related Read: How Quitting Caffeine Changed My Life

3. Eating Out

There is nothing wrong with eating out with your friends or with your family as long as you do it for pleasure and not as a habit. 

There are a lot of individuals that love to order take-out or lunch during office days. If you want to save more money, bringing your own lunch at work is recommendable. Not only can you save money but you can be healthy as well as eating a home-cooked meal. 

This is one of the more unpopular money-saving tips as it’s very normal to enjoy dining out with your friends. However, these spending habits can be a major difference in how much money you will save regularly. Being frugal and practical are important money management tips when you are saving up money. 

Cooking at home may save you a lot of money. It is also recommended that you do your meal planning to save much of your time. You may also try a meal planning service which is much more affordable than eating out in restaurants. Try this $5 Meal Plan as your meal planning service that sends out weekly meal plans with a shopping list for only $5 a month.

4. Bottled Water

Water is very essential in our daily lives, that is why this is one thing that you will always buy whenever you are out. Though it is not that pricey, it is still an expense.

Invest in a good water bottle or water jug as they say it, and bring your water. If you are on a diet, you may put lemon in your water. What an excellent way to save money and be hydrated at the same time. Spending less really means making the most out of what you already have.

5. Drinking

Alcohol misuse is costing the US alone $249 billion yearly, that’s $2.05 per drink and $807 per person living in the US. Most costs come from binge drinking, so a person ends up in the hospital because they drank too much.

I’ve also drunk a lot – a lot – of alcohol in the past. At that time, it was just very ‘normal,’ which is also something we could question. I would start drinking around the age of 14, while the legal age at that time was 16. Currently, they set the legal age to 18. This means that people start to drink around age 16, which is at least better than before.

Friends of mine have seriously been going to the hospital because they drank too much, which is scary. Obviously, these hospital visits are also adding immense costs to the health care system (and your personal wallet).

I don’t mind if people drink, I love me a beer, but there are boundaries. No more puking, no more not remembering what I did, and no more drinking just to get drunk!

6. Gambling

Both gambling and playing the lottery are risky. According to the Economist, people lost $110 billion gambling in 2016.

According to Bloomberg, the average player collects $0.6 in winnings for every $1 ticket bought.

While I’ve gambled before and participated in the lottery before, I’ve never enjoyed it too much. When I was in Las Vegas, of course, you have to play for a bit in the casino, but that’s about it. Also, when it’s around Christmas, my in-laws always gift everyone a lottery ticket. That’s all I do for lottery tickets.

I’ve heard too many stories of people losing money while gambling, friends have literally handed me their money so they couldn’t spend it anymore, and people file bankruptcy after gambling. I swore to myself I never wanted to experience that personally.

Related read: What Happens to Your Credit Score After Bankruptcy?

Casinos are making immense sums of money. Do you think they would otherwise keep giving you drinks or want to keep you there as long as possible? Keep in mind that they do everything for one reason; to make more money.

Know your stopping point. Only go in with the money you are willing to lose, and don’t take any extra cash out.

7. (Online) Shopping

People feel that they have to buy something, especially when they feel sad, bored, or something along those lines. They want to have that high from buying something quick, and it doesn’t feel like you’re actually spending money.

This can make you fall into more credit card debt, generally overspend on things, and lead you to buy something you don’t actually need. This all leads to more unhappiness and additional stress, which in turn leads to excess shopping again. The cycle is born! Paying off debts will now be the only thing in your mind instead of the living expenses needed for you and your family.

To stop this, think about where your unhappiness is coming from. Try to get to the root of the problem and find the solution there as well.

If you’re having a hard time with this, try cutting down spending by trying out the minimalist lifestyle.

8. Tanning

I have a lot of friends who go tanning. Luckily most of them stopped this already. The people who went tanning did not have the natural tan color. Also, skin cancer is a real issue here. If you’re spending most of the year going tanning, the risks drastically go up!

It’s not so good for your skin, as well as expensive. It’s as expensive as 10 minutes for €10, and prices go up from there. Let’s say you go for 30 minutes every week, that’s €30 per week, €120 per month, and over €1500 per year!

That’s money earned fast! Let’s try embracing our skin or simply using something like bronzing lotion.

9. Speeding

Speeding is not only expensive when you get tickets, but it’s also accounting for a major amount of additional costs. In 2016, the cost of motor vehicle accidents was $432 billion, with 2 million people involved. This averages $213,000 per person affected.

In addition to that, your car insurance costs will increase, which no one ever likes!

10. TV & Social Media

With everything, you need to dose the amount. Also, with TV, of course, you can watch a good TV show or watch some videos on YouTube, but don’t let it get the best of you.

The average American spends 31.5 hours each week watching TV and around six other hours per week watching movies. On top of this, social media adds another 10 hours per week on average. Some people spend more, and some people spend less time in front of screens because many of us also work 8 hours per day.

That’s a lot of hours! What if you would do something else in those hours, like starting a side hustle or starting to organize your finances. Such crazy suggestions, I know.

TV and social media can affect you by watching the commercials, causing you to buy things you usually wouldn’t buy.

Are you wasting time watching TV or social media? If you could just reclaim a few hours every week by eliminating the TV and the social, you could reclaim that time to do the things you love. Perhaps read a book, pick up that hobby that you’ve left out there for too long, go for a walk.

How to Overcome Terrible Money Habits

Below are some suggestions that you can do to overcome your bad money habits.

Do The No-Spend Challenge to Boost Yourself

Breaking bad habits is not that easy. You may need something to boost yourself and be productive. Why don’t you try the no-spend challenge?

The no-spend challenge can help you not only in saving money but also in developing good money habits. In this way, you get motivated by saving a lot of money and building up your savings. Your saving habits will definitely be improved if you do this challenge in your life. Money saved instead of buying is a very simple concept, although a very tough one, thus the challenge.

Build Your Good Money Habits

Learn from your mistakes. It’s not too late to start and grow your savings. As suggested, a no-spend challenge can be your starting point.

As you start your no-spend challenge, try building up your good money habits. It will all start from living below your means. It doesn’t mean that you live poorly but instead spend only the important things. Eventually, you will be able to build good money habits and manage your money.

Conclusion – Terrible Money Habits

Terrible money habits are not that easy to break. But if you try to quit and eventually change them to good money habits, surely you will save a lot of money and cut those unnecessary expenses. Also, you will improve your financial situation as well. 

Your financial habits and saving strategies will help your personal capital. This, in turn, will help your financial goals and retirement savings. That’s the end goal, right? Have a monthly budget to improve your personal finance and savings account as part of your long-term goals.

Every individual is unique in their financial situation, so it is still up to you how you will manage your finances. This article is just a guide for your financial status to improve. So, what are you waiting for? Keep going and continue to build your financial independence.

This article originally appeared on Credit.com.

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http://blog.credit.com/?p=197657 https://www.credit.com/blog/how-to-develop-high-income-skills/ <![CDATA[How to Develop High Income Skills]]> Tue, 26 Apr 2022 04:10:00 +0000 This article originally appeared on RickOrford.com and was republished with permission.


Certain jobs make more money than others. Whether you can take advantage of a particular career path might depend on whether you can learn specific skill sets. Some individuals have the aptitude to land high-paying careers, but first, you’ll need to see if you can learn what employers would call “high-income skills.”

We’ll talk about how you can learn some of those skills in the following article.

High-Income Skill Examples

If you can learn a particular skill that enables you to do a job that an employer will pay you well to perform, you’ll be in good shape as you hunt for a suitable position. Earning most of these skills will also not make you part of the growing number of people who have student debt and are having to turn to student loan debt consolidation to survive. Some of the options for developing high-income skills will cost money but there are some free resources you can take advantage of as well. 

We’ll talk about a few high-income skill examples right now. If you can learn any of these, you should find employment without too much trouble.

1. Video Editing

More companies than ever before are learning to make videos about their services and products. YouTube’s popularity is part of why they’re doing it, but there are several other social media platforms where businesses might feature promotional videos. 

They will always need someone to edit those videos, so there is a significant demand for talented video editors. You can look for a full-time editing job or work as a freelancer, so there’s some flexibility there. This is also a position that rarely requires a college degree, though it might come in handy on your resume.

2. Project Management

Project management is a skill that uses organizational and communication skills. If you can master the fundamentals of project management, that means you can be valuable to many different kinds of organizations. You might oversee multiple teams while managing several aspects of a company’s creative process.

This is a skill set that can take you far in life. The only possible drawback is that this is one job title where a company will probably look for a Master’s Degree from an accredited university.

3. SEO

SEO means search engine optimization. If you can master this skill, you can potentially make a very good living. This is another skill where you might work for a single company full-time, or else you could work for different entities as a freelancer.

If you know about SEO, you can get a company’s website to rank at the top of Google’s search engine if someone searches for certain terms. This can be tremendously valuable to companies, so they’ll be willing to pay you top dollar if you can get their site to appear as one of the top Google results. 

SEO usually involves working with tools that tell you what terms to use when writing copy for websites. Sometimes, using the correct language and other website elements can be all the difference when you’re trying to get a site to rank.

4. Web Design

Like SEO, web design is something that almost all businesses need these days. If you hear about a company and want to know more about it, probably the first thing you will do is look for their website. Someone needs to design those sites, and that’s where a web designer comes in.

Web design skills come when you learn how to use a platform like WordPress or Wix. You can create a website using a template and add details depending on how a client wants the site to look. Web design is ideal if you want to do something lucrative with computers, but you don’t have the patience or aptitude for learning a coding language. 

5. Software Engineering

This brings us to the next possibility, software engineering. If you learn how to code, then you can create software. Many companies want a bespoke software system, especially if they have proprietary secrets that they’re trying to protect.

Many employers don’t require you to have a four-year college degree if you can demonstrate your software creation skills to them. Going to college can certainly help, but there are many software engineers who taught themselves how to code without ever going to school for it.

Of all the skill sets we’ve mentioned, software engineering is potentially the most lucrative, with the possible exception of project management. It’s not uncommon at all for a software engineer to make $100,000 per year, while the best in the field might make double that.

Related read: Job Opportunities During COVID-19

How to Develop These Skills

We have talked about a few skill sets that you might develop that will allow you to have a successful side hustle or even a highly profitable career. Now, let’s talk about a few ways you can learn some of these skills. 

1. Take Formal Classes

Taking formal classes is always one way to go. For instance, if you wanted to learn something like software engineering, you could enroll yourself in a software “boot camp.” They usually take about 12 weeks to complete, and the least expensive are typically a few thousand dollars. That may seem costly, but you could consider it an investment in your future.

If you were interested in something like video editing or project management, attending a four-year college is certainly something you could consider. To do so, you’d need to come up with the money. Student loans are a popular option if you don’t have enough savings or help from a relative to cover tuition.

Read more: 10 Ways to Save Money On Your Startup Business

2. Mentors

Finding a mentor can also be helpful if you’re targeting one of the careers or skill sets we’ve mentioned. This should accelerate your learning significantly.

To locate a mentor to help you in your chosen field, you can ask around in online forums and communities. You can search using social media as well. There are often free meetups where companies try to connect mentors with mentees. 

3. Use Free Resources

We’ve talked about taking classes that will cost you money, either courses like software boot camps or formal four-year college courses. However, if you don’t want to go this route, finding and utilizing free resources is probably your best option.

The first and probably foremost resource you might use is YouTube. There are videos there that can teach you to do nearly anything. Some of them might be more useful than others, but if you search for how to learn a particular skill, you will more than likely find some tutorials there.

You might also find other social media platforms where you can consume free content that teaches you about one of the skill sets we’ve mentioned. For instance, you can sometimes find valuable content on TikTok, Dailymotion, Twitter, or Vimeo that can help you learn about some of the skills we’ve covered in this article.

4. Find an Internship

One more option if you’re trying to develop a high-income skill set would be to find an internship. Internships don’t pay, but their main benefit is that you will have a chance to learn a skill in a hands-on way. You will also be surrounded by individuals who have succeeded in the niche where you are trying to establish yourself.

The trick with an internship is to find a way to support yourself while you simultaneously do this work, for which you will not be paid. That’s challenging, but if you live with parents or roommates, that can help you to be more frugal until you finish the internship with the new skill set that you have acquired. At that point, you can probably find yourself a better-paying job.

Related read: How to Ask for a Promotion at Work

Developing High-Income Skills Is Possible

Now, you know about a few high-income skills that you might consider, depending on which niche appeals to you. You might learn some SEO skills or how to code. You could master project management skills, find out how to edit videos, or get into web design. 

Some of these skill sets will enable you to work for a single company, though with several of them, you might work as a freelancer if that seems like a better option to achieve a healthy work-life balance. 

If you’re interested in learning these skills, you might find an internship with a company that is willing to help you. You can utilize free resources like YouTube or various other social media platforms since there are often useful tutorial-style videos there.

You might find a mentor who can help you develop the skills in a particular industry or niche that interests you. You could also look into traditional four-year colleges or other more formal classes.

Developing one of the high-income skills we mentioned is a way you can be successful in life. Any of the ones in this article can be part of a highly profitable career if you know how to leverage them the right way. 

This article originally appeared on Credit.com.

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http://blog.credit.com/?p=197637 https://www.credit.com/blog/financial-tips-for-new-parents/ <![CDATA[3 Important Financial Tips for New Parents]]> Wed, 20 Apr 2022 04:14:00 +0000 The views and opinions expressed in this article are those of the author only and are not endorsed by Credit.com.

Congratulations on becoming parents! After welcoming your first child into the world, one of the most important things you’ll want to do is take a close look at your finances. Money management is likely a conversation you’ve had before even getting pregnant or married. Remember, though, children are an ever-changing part of life that require frequent financial consideration. Buckling down on your finances to prepare for your newest family member will ensure success in the future. Read on to learn more about how to handle finances as new parents. 

Set Your Budget

Before anything else, you’ll want to set a family budget. By proactively working to save money in even the smallest ways, you can save up for financial goals down the road. Such goals could be buying a larger car or house that will better accommodate your growing family. Cut down on unnecessary expenses such as frequently dining out or excess subscription services. And, consider slashing pricey memberships or credit cards with high fees. Your credit cards should actually have rewards rather than fees if you really want to save money, so read our article about maximizing your credit card rewards. Lastly, reconsider your insurance and see what you can do to lower your rates. 

When purchasing supplies for your newborn, you’ll also want to budget for this. Now, this doesn’t mean sacrificing quality, but rather choosing items with the best value. Purchasing in bulk also gives you more bang for your buck. This won’t be possible for everything, but for smaller or disposable items like diapers, wipes, bibs, and even some clothes or pacifiers, bulk purchasing may be an option and will help save some money. 

Buying secondhand is a great method for conserving money as well. Ask your friends and family members if they have any baby items, such as strollers, baby carriers, or even infant clothes or blankets. Even larger items like cribs can be bought used or even borrowed from a friend or relative. 

Related read: The Best Budgeting Methods: A Complete Guide

Save, Save, Save!

While just as important as budgeting, saving is an active way of accumulating and allocating your money appropriately. With each paycheck, you should be directing some amount of money to a savings account to be used for later. Putting at least 10% of your paycheck into a 401(k) or retirement plan is also wise. If you can, raising your contribution to 15% or even 20% will build up more money for when you eventually exit the workforce. 

Related read: 7 Tips for Maximizing Your 401(k)

With a newborn, it’s more essential than ever to allocate enough money to build an emergency fund, in case anything goes wrong. Much like your retirement plan, you should be allocating some amount of each paycheck to a separate account reserved for emergencies. These emergencies can be trips to the hospital, spontaneous purchases, car repairs, home repairs, or even to use short-term in the case of sudden unemployment. This ensures your baby will be taken care of under these potential circumstances. 

Another account you should have is a savings account. As parents, you’ve probably already established this, but it’s a good idea to reconsider how you’re saving. It’s best to choose an account with high interest rates. A certificate of deposit, otherwise known as a CD, is an account with elevated interest rates, but you have to deposit a minimum amount and leave the money for a designated period of time. This is a good long-term method of saving money. However, remember that taking the money out early may result in penalty fees. 

Plan Ahead

You’ve recently entered the wonderful world of parenthood and this is only the beginning. You and your partner will need to think ahead and determine your next steps or financial goals so that you can appropriately prepare. The next large cost may be paying for daycare when your newborn becomes a toddler or paying for a nanny or babysitter. If you haven’t already begun your search for a good daycare program, it’s a good idea to start that as soon as you can, since many have waitlist times of over a year. 

As mentioned previously, a common goal for new parents may be a new house, especially if you expect to have more children or want to leave your current home. There’s a lot of preparation in the process of buying a new house, and one of your first steps is to get a mortgage preapproval.  This allows you and your partner to see how much money you can borrow to purchase a home, which can determine the size and location of your future house. This does rely on your credit score, so ensuring that your credit is at its best it can be can help lower your interest rates. 

Related read: How to Get Pre-Approved for a Mortgage Home Loan

Another future event is possibly sending your child to college. If you plan to help pay for their education, it’s best to start saving for that now by opening up a 529 plan, which is an investment account for the use of higher education. College costs are only rising, so starting to save for this expenditure as early as possible will help you tuck away more money. 

With all of these future costs to consider, you’ll also want to think about timing your financial goals. It will be financially taxing to pay for larger things such as a house or college at the same time and can be risky if you don’t know how to handle your finances. If you need some aid, a financial advisor or planner is a great resource, or you can do the research yourself. Either way, planning out a timeline that puts less stress on your finances will make it easier to manage. For example, it could be optimal to finish paying off your mortgage before beginning to pay for your child’s education.

While juggling life, finances, and becoming parents is no easy feat, it’s good to do your research and be prepared to take on these challenges. Finances are a long-term game. Planning meticulously as soon as you can helps set you and your family up for success as you navigate the journey of parenthood. 

This article originally appeared on Credit.com.

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http://blog.credit.com/?p=197621 https://www.credit.com/blog/what-is-blockchain-technology/ <![CDATA[What is Blockchain Technology? Is It Secure and Viable in 2022 and Beyond?]]> Tue, 19 Apr 2022 04:01:03 +0000 The views and opinions expressed in this article are those of the author only and are not endorsed by Credit.com.

By now, almost everyone has heard of the term cryptocurrency. You may have even considered investing in it. Moreover, a common term you’ve probably heard several times in the past few months is blockchain technology.

What is blockchain technology? Don’t worry; you’re not alone. Even though blockchain technology has been around for more than a decade, people have only recently noticed it because of its potential uses in various industries.

You want to be fully educated on the different terms and technology before investing thousands of dollars into anything. Today, we will explain blockchain technology and discuss some of its applications. Time to blockchain!

What Is Blockchain Technology, and What Does It Do?

At its most basic level, a blockchain is a type of shared database that differs from a typical database. It stores information; blockchains store data in blocks linked together via cryptography. As new data comes in, it goes into a new block. Once the block fills up with data, it gets chained onto the previous block, which makes the data chained together in chronological order.

You can store different types of information on a blockchain, but the most common use has been as a ledger for transactions. For example, when you purchase using Bitcoin, the transaction is recorded on the Bitcoin blockchain.

Other users on the network then verify a transaction like this, and once it is confirmed, it cannot be altered or deleted. This feature makes blockchain-based transactions much more secure and transparent than traditional transactions processed by banks or other financial institutions.

So, what are some potential applications of blockchain technology? Of course, the most obvious application of blockchain technology is in the financial sector. Many banks and financial institutions are already experimenting with blockchain-based transactions and exploring ways to use this technology to make their services more efficient and secure.

How Did Blockchain Technology Come About, and Who Created It?

The first blockchain was created in 2009 by an anonymous person or group known as Satoshi Nakamoto. The original purpose of the blockchain was to facilitate digital transactions using Bitcoin, but the potential uses of blockchain technology quickly became apparent to developers and entrepreneurs in other industries. Looking back in the past ten years, a silent revolution called “Blockchain technology” hit us, which resulted in significant innovations such as:

Bitcoin

Bitcoin is the first and most well-known blockchain innovation. It was a proof-of-concept digital currency that launched in 2009. Although its price has fluctuated widely, bitcoin’s market capitalization now hovers between $10 billion and $20 billion. With the help of Acorns and other micro-investing alternatives, millions of people use blockchain technology for transactions, including remittances.

Smart Contracts

Smart contracts are self-executing contracts with the terms of the agreement between buyer and seller directly written into lines of code. The code and the agreements contained therein exist across a decentralized blockchain network, eliminating the need for a middleman.

Ethereum, one of the most popular blockchain platforms, is built specifically for smart contracts and ICOs. One of the most significant applications of smart contracts is in the area of Initial Coin Offerings or ICOs.

Proof of Stake

Proof of stake (PoS) is an algorithm that rewards users based on how many coins they hold. For example, if a user has 100 coins, they will be able to mine or validate block transactions in proportion to their stake.

This algorithm provides an alternative to the energy-intensive proof-of-work (PoW) algorithm, which Bitcoin and other major cryptocurrencies use. While proof of stake was first proposed in 2011, it is only now that we are seeing it implemented on a large scale with projects such as Ethereum, Cardano, and EOS.

Blockchain Scaling

One of the challenges facing blockchain technology is scalability. Currently, the Bitcoin network can process only 4.6 transactions per second, and the Ethereum network can manage around 15. In comparison, Visa can handle 65,000 transactions per second.

One way to address the scalability issue is through off-chain or sidechain solutions such as the Lightning Network or Plasma. These solutions allow for transactions to be processed off the main blockchain, which frees up space on the blockchain and allows for faster transaction times.

This field’s innovation landscape is just more than ten years old, and a team of computer scientists, cryptographers, and mathematicians built it. Of course, it’s hard to predict the future of such a young technology, but one thing is for sure – the potential uses of blockchain technology are far-reaching, and the possibilities are endless.

We all know that blockchain technology is a game-changer and has helped people make money online, but what are some of today’s most popular applications? The most popular application for blockchain technology is in the financial sector. People can use blockchain to streamline transactions and reduce costs.

Other popular applications of blockchain technology include:

  • Non-fungible tokens or NFTs
  • Logistic and supply chain network
  • Data Storage
  • Casino and gambling industry
  • Money transfers
  • Digital royalties

The possibilities are endless! So far, we’ve only scratched the surface of what blockchain can do. As more people begin to understand the potential of this technology, we will likely see even more innovative applications for it.

How Secure Is Blockchain Technology, and Why Is That So Important?

Experts praise blockchain technology for its security. The fact that blockchain technology is decentralized is what makes it so secure. Because there is no central point of control, there is no single point of failure. Hackers would need to attack every node in the network to tamper with the data successfully.

Another reason why blockchain technology is so secure is because of the way the data is stored. In a traditional database, the information is stored in a single location. This limitation makes it easy for hackers to target and manipulate. However, the data is spread across the network with blockchain technology, making it more protected from tampering.

Unless you have more powerful computers than the rest of the nodes combined, any attempts to alter or manipulate it will conflict with prior ones and be automatically dismissed. This reason is what makes the blockchain unchangeable or impervious to tampering.

What Are Some of the Disadvantages of Blockchain Technology?

The main disadvantage of blockchain technology is that it is still in its infancy. This truth means that there are a lot of unknowns and a lot of risks. For businesses, this can be a significant barrier to adoption.

In terms of cost, blockchain technology is still costly. The hardware and software required to run a blockchain network can be pretty expensive, and there is also the cost of hiring people with the necessary skills to maintain and operate the network. As a result, organizations that do not have the resources or budget to implement blockchain may need to wait even longer before joining the movement.

Another disadvantage is that blockchain technology is not very scalable (by default). Each node in the network needs to process and verify each transaction, making it difficult to handle large volumes of transactions. In other words, the more people or nodes join the network, the greater the risk of slowing down.

Finally, blockchain technology is not very energy-efficient. The miners must solve complex problems whenever the ledger gets updated with a new transaction, which requires a significant amount of energy. In addition, each node in the network needs to be constantly running and can use up a lot of energy.

To sum it up, here are the main disadvantages of blockchain technology:

  • Still in infancy
  • Scalability issue
  • High cost
  • It’s not particularly energy-efficient

Despite these disadvantages, blockchain technology has a lot of potential. As technology matures, we are likely to see more businesses adopt it. With time, the disadvantages of blockchain technology may become less and less significant.

How Will Blockchain Technology Change the Way We Do Business and Interact with Each Other Online?

This question is what many people are asking as blockchain technology begins to enter the mainstream. While the full potential of blockchain technology is still unknown, it has the potential to revolutionize many industries and change the way we interact with each other online.

One of the most promising aspects of blockchain technology is its ability to create a trustless system. In a trustless system, two parties can interact without the need for a third party to mediate or verify the transaction. This system could potentially reduce the cost of doing business and make it easier to conduct transactions online.

Another potential use for blockchain technology is in the area of data security. For example, people can use blockchain technology to create a secure decentralized database from hacks and data breaches.

Blockchain is decentralized, encrypted, and cross-checked, ensuring highly secure data. Furthermore, it is virtually impossible to hack all of the nodes since blockchain is jam-packed with nodes, and trying to hack most of them at the same time would be fruitless. This feature could potentially revolutionize the way we store and protect our data.

Some experts predict that blockchain will overhaul how the internet works and how individuals interact with one another online. For example, web3, which they dub the new internet, is starting to take form and traction with the help of blockchain, which merits a separate discussion and will be the topic of my future blog post.

Final Thoughts

The potential implications of blockchain technology are vast and could revolutionize the way we interact with the digital world. So far, people most commonly use blockchain as a ledger for transactions, but there are many other potential applications for this innovative technology.

We’re still in the early days of blockchain development, so it will be exciting to see how this technology continues to evolve and change the way we do business. Have you tried out any blockchain-based applications yet? If not, now is a great time to start!

This article originally appeared onWealth of Geeks and has been republished here with permission.

This article originally appeared on Credit.com.

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http://blog.credit.com/?p=197607 https://www.credit.com/blog/travel-discounts-for-seniors-and-retired-people/ <![CDATA[Travel Discounts for Seniors and Retired People]]> Fri, 15 Apr 2022 04:13:00 +0000 This article originally appeared on RickOrford.com and has been republished here with permission.

Are you a senior citizen or a retired person looking for travel discounts? If so, you’ve come to the right place. In this post, we’ll share some great tips on how to get deals on airfare, hotels, and other types of travel. There are various discounts for seniors that you can use to book your next trip.

In this article, you’ll find an up-to-date list of airlines, hotels, cruises, car rentals, and more that offer discounts for senior citizens and retired people. So whether you’re planning a summer vacation or want to take a weekend trip, read on for some helpful advice.

Let’s get started!

Senior Travel Discounts on Hotels and Resorts

Many hotels offer travel discounts for retired and senior travelers. However, the deals vary from location to location. For example, some of the most common deals include a percentage off the room rate, complimentary breakfast, and a waived daily resort fee.

There are a variety of hotels and resorts out there that offer discounts for people who are 50 years old or older, but some require you to be 55+, 60+, and others 65+.

Here are some hotels that offer discounts to seniors and retired people.

Best Western Hotels and Resorts

With hotels in nearly 100 countries and territories worldwide, Best Western is one of the leading hotel chains in the world. WorldHotels and SureStay Hotels is also a part of the Best Western group. They are famous for their hospitality and strive to offer their guests a warm welcome. 

As of this writing, Best Western Hotels & Resorts offer discounts of up to 15% for senior citizens age 55 and above. All you need to do is present a valid ID card at check-in time to get the offer.

IHG Hotels and Resorts

At any IHG® hotel globally, people 62 years of age and over can get special senior discounts. However, the discount rates are not fixed and depend upon the individual IHG group’s hotels.

To book a senior rate at IHG Hotels and Resorts, you can visit their website or call the hotel directly. Alternatively, you can call the hotline at 1-877-424-2449 if you find yourself needing answers to any other questions. To get the offer, you’ll need a valid ID as proof of age at the time of booking.

Motel 6

The Motel 6 chain offers an 8% discount to guests who are 60 years or older – and they are proud that you don’t even need to be an AARP member. 

Motel 6 has 1400+ properties across US and Canada. Make sure to select Senior Citizen Rates while booking your stay on the website.

Omni Hotels and Resorts

Omni Hotels and Resorts feature 60 hotels and resorts across the United States. The chain wants to give guests a local experience in leading destinations across North America. Whether it’s a spa retreat, golf retreat, or a business event, each Omni property blends seamlessly into the local culture while featuring four-diamond services, signature restaurants, and unique wellness options.

Omni offers travelers aged 55 and up a 10% discount off the best available rate and proof of age is mandatory at check-in. 

Wyndham Hotels and Resorts

Wyndham Hotels and Resorts operates more than 8900 properties under 22 different brands in 95 countries. So, it will be easy to find a location near you. The chain is proud to offer discounts to guests over 60 years of age. When booking, be sure to select the senior discount option. 

The Free Accommodation Alternative

While anybody can take advantage of getting a free place to stay by house-sitting, seniors are often well-suited to the task. Not only that, they are given preferential consideration in a pretty competitive environment. 

House-sitting is one way seniors can get free accommodations around the world. It’s a mutually beneficial exchange; homeowners have the advantage of somebody staying in their home, arranging visits and e-visits with a vet, and watering plants. Indeed, homeowners get a general sense of security while they’re away. And house-sitters get to visit a new location and enjoy the comforts of home – often pets and all – for free. 

Bonus: House sitting can be an ideal way to earn money while traveling!

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Senior Discounts on Airlines

A common question in the travel industry is, “Do airlines offer seniors discounts?” Airlines’ marketing and advertising campaigns rarely focus on seniors. But, many do offer discounts and additional services to senior citizens. For example, the most common offers include a discount off the fare or a waived baggage fee. And, some Airlines only offer these discounts if you are an AARP member. 

Airline discounts are often more accessible to AARP members. With the American Association of Retired Persons – anyone above 50 can join. “Being a part of the AARP means getting access to discounts on selected restaurants to groceries, and from cruises to vacation packages, AARP is a life-saver to seniors and retired folks in the United States,” says Harshil Patel, Co-founder of GeniusGeeks.

Here’s a list of airlines that offer seniors discounts.

United Airlines

United Airlines offers discounted rates and additional services for senior citizens. For example, United offers seniors fares to selected travel destinations for customers who are 65 and older. Furthermore, United is happy to provide extra assistance to those who need it. For example, suppose someone has a disability or requires any assistance in boarding the airplane. In that case, they can call the United’s Accessibility Desk at 1-800-228-2744 within the United States or Canada. To get the seniors discount, travelers will need to select the seniors (age 65 and older) category on united.com when they make the booking.

British Airways

British Airways offers discounts on the basic fare to AARP Members. And, AARP members are aged 50 years or older. The offer is valid for travel on all of British Airways’ worldwide networks.

Proof of age is mandatory at check-in.

British Airways currently offers AARP Members:

  • $65* off for travel in economy Standard* fares only (World Traveller).
  • $65* off for travel in premium economy (World Traveller Plus).
  • $200* off for travel in business (Club World).

To take advantage of the offer, you’ll first need to log in to your AARP account and follow the instructions. 

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Cruise Discounts and Information for Seniors

Traveling by cruise ship can be an enjoyable way to see the world without breaking the bank. Most cruise ships have wheelchairs available, with ramps and elevators making it easy for those with physical disabilities or limitations to move around safely. Elderly passengers will find that cruise line staff members address their needs and concerns with care and patience. And, when ashore, seniors can visit destinations like some of the best beaches in the world.

Royal Caribbean

When people think of cruises, the first company that often comes to mind is Royal Caribbean. And for a good reason! They offer a wide variety of cruise options perfect for any person.

Royal Caribbean International is one of the world’s largest passenger ship operators, and it doesn’t take a lot of research to find out why. The cruise company offers cruises to the Caribbean, Mediterranean cruises, and more.

With various themed cruises, tons of activities, and endless entertainment options, they’re perfect for seniors to have a good time. Their ships offer non-stop activities and entertainment options, so you’ll never run out of things to do. Plus, their crew is always friendly and willing to help make your trip enjoyable.

RCI also offers seniors discounts that vary between sailings, so you’ll want to check with your travel agent for more information.

Carnival Cruise

Carnival Cruises offers guests cruises that depart locally and abroad. The company provides an array of ships catering to every need. Also, there are specially-themed cruises for those looking for even more entertainment. With so many options, it’s hard not to find a cruise that will suit your liking!

Seniors 55+ can also get in on the action. With their “Cruise Deals for Seniors” program, seniors can select cruises by the “sail from” port, the number of sailing days, and duration. At this writing, a 4-night Caribbean cruise costs as low as $429/pp.

Car Rental Agencies That Offer Senior Discounts

Car rental agencies are often as popular as a hotel. I mean, how else will you get around visiting the sights? And their popularity means stiff competition to travelers. Here’s a list of a few car rental agencies that offer deals on car rental bookings for seniors and retired people.

Budget Rent A Car

Budget Rent a Car often comes to mind when we think of car rentals. They offer car rental services all over the United States, Canada, and abroad. Seniors looking for a discount will be happy to know Budget provides AARP members savings of up to 35% off Budget PAY NOW rates.

SIXT.com

Sixt offers a flat 5% discount for all people above 50 years. No membership is required to use this offer. Unlike other companies, Sixt does not require AARP membership; however, be sure to carry a valid ID for confirming your age when picking up the car.

Hertz.com

With the Hertz 50 plus program, travelers aged 50+ can save as much as 20% of the base rate. Best of all, the offer is valid for all cars, and no 3rd party memberships are required. Interestingly, those looking to purchase a new vehicle might consider Hertz Car Sales. Hertz created the program to provide car buyers with a wide selection of certified pre-owned vehicles at no-haggle prices. And, for peace of mind, every Hertz vehicle comes with a 12-month/12,000-mile limited powertrain warranty.

Discounts for Seniors at National Parks

National parks are beautiful ways to enjoy the great outdoors while getting some fresh air and seeing incredible scenery. For seniors, national park passes offer an opportunity at a discounted rate so you can go as often or little as your heart desires! The quickest way to get a National Parks Pass is by purchasing one at your nearest federal recreation site. The National Parks Pass allows you to visit over 2,000 national parks, monuments, wildlife refuges, and grasslands.

Yosemite National Park

Yosemite National Park has a special offer for seniors. Not only does the Senior Pass provide a lifetime pass for $80, but it also gets you into places that are usually closed or nearly inaccessible to those without one! So, for example, suppose there’s no room left at your favorite campsite for any number of reasons. In that case, you can purchase an additional pass that will allow both yourself and up to four companions access.

Final Thoughts

Beginning at age 50, travelers start having savings opportunities. While many companies require AARP membership, many others don’t. So, it pays to do your homework. If you can take advantage of any of the above deals and discounts, your budget will thank you.

This article originally appeared on Credit.com.

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http://blog.credit.com/?p=197598 https://www.credit.com/blog/how-to-ask-for-a-promotion-at-work/ <![CDATA[How to Ask for a Promotion at Work: Follow These 8 Simple Steps]]> Thu, 14 Apr 2022 04:04:00 +0000 This article originally appeared on My Life, I Guess, and has been republished here with permission.

Do you know how to ask for a promotion at work? Better yet, do you know how to successfully ask to be promoted? Every employee worries about the day they decide to ask their manager or boss for a promotion. You might feel both nervous and excited about the outcome at the same time.

Whether you’re unsure how to ask for a promotion or are anxious about asking your manager for one, the first step is to understand that it’s natural to feel this way. It’s a big deal! You’ll be asking for more responsibilities and more money while attempting to prove why you deserve it.

It can get difficult if your manager doesn’t see it the same way as you do. Thankfully, there are steps you can follow when asking for a promotion that will help you successfully get one.

How to Ask for a Promotion

Asking for a promotion is always the most difficult part. People replay it repeatedly in their heads, making themselves more anxious or nervous.

It doesn’t have to be this way, though. You can ask for a promotion with confidence by understanding that you deserve the promotion and demonstrating to yourself and your supervisor that you’re the right person to take on increased responsibilities.

1. Find an Opportunity for a Promotion

The first step is to identify promotion opportunities that you want to apply for. Think about what it is you want by making a change to your career. Is it a pay raise? New title? More perks? New assignments? Being promoted to manager?

Then look for promotion opportunities within the organization that will help you achieve your career goals.

There’s not much point in asking for a promotion if there is nowhere for you to be promoted to. If you work for a small company, there simply may not be any positions available. Or if business is slow, there may not be any new projects or clients coming in. You may have to wait for something to change before there’s a chance for a promotion.

On the other hand, if business is booming, use that to get ahead on your career path. Has your job description grown and your workload changed, and you feel you should be promoted? Don’t wait for a position to open up–be proactive and make your own opportunity! Ask for a raise or job promotion by negotiating a new, higher-level role for yourself.

2. Why Do You Deserve to Be Promoted at Work?

You can’t expect your manager to understand why you should move up the corporate ladder over your colleagues if you can’t justify it in your own head first. Think of some recent wins and accomplishments in your professional career.

What have you done in your current role that has been valuable to the company and made you look great? Have you learned new skills or done anything outside of the company that has boosted your qualifications, experience, or education? These small things will help you create value for yourself, so when you pitch it to your boss, they understand why you should get promoted.

It’s smart to make a list of the reasons why you believe you deserve to get a promotion, so when you approach your manager, you’re already set to back yourself up. Doing this will make you feel more confident and less nervous about it. It’ll make you feel like you deserve to be asking your manager for a promotion, and your manager will be able to sense that same level of confidence.

Pro Tip: Make It About Them, Not About You

A great way to improve your chances of getting a promotion is to make it about the company, and not about yourself. How have you improved the company’s bottom line? Did you bring on new clients and make more money for them? What unique skills do you bring to the team? How do you make your boss’s job easier? Focusing on how you can help reach the goals of the organization is one of the best ways to move up the ladder.

3. Set Up a Meeting

Once you have the confidence to ask for a promotion and have your reasons ready for why you deserve one, the next step is actually getting one. This involves more execution than preparation.

When you approach your manager, make sure it’s in a one-on-one setting. Asking for a promotion or a meeting to discuss a possible promotion in front of your coworkers will make you look unprofessional, and frankly, it’s none of their business.

Send an email requesting a meeting or talk to your manager privately and ask to set up a time to meet. This way, your manager will clear space in their schedule for you, and you’ll have ample time to discuss a promotion.

Be sure to give them some context of what this meeting is about by mentioning you’d like to discuss your performance and potential opportunities for advancement. If you don’t, the meeting might not go in the direction you had hoped, because your manager hasn’t had any time to prepare or think about your contribution to the team. You want them to be prepared, too!

4. Practice Your Pitch

Now that you have a time set to ask for your promotion, the next step is plotting out what you’re going to say before you actually do it.

If you phrase your wording the right way, your chances of getting what you want will improve.

The best way to do this is by practicing it a few times when you’re alone. Your pitch for a promotion should start conversational and then take a serious turn when you get to the “ask.”

5. Set the Tone

In your meeting, don’t immediately launch into your pitch. Start by asking your manager about their day or the weather, something light and conversational to break the ice. Small talk can seem pointless or boring, but it’s an important part of creating connections, showing respect, and setting the meeting’s tone.

Don’t skip the small talk, but don’t waste too much time on it, either. You want to get to the point of the meeting and not spend your time socializing.

6. Demonstrate Why You Deserve to be Promoted

Next, briefly list your most recent accomplishments with the company and how much of a help you’ve been. This will put you in a positive light and remind your manager how valuable you are to your company.

Give examples where you can and really sell yourself–but again, keep this short. You’re highlighting your accomplishments and contributions, not explaining every little detail.

Tip: Prepare a Short Written Summary

To really impress your boss or senior manager, prepare a short 1-2 page summary that outlines your track record and shows why you should be getting promoted.

Include specific examples, concrete numbers, and metrics that are supported by documentation and data as much as possible, and avoid feelings or emotions.

Some examples include:

  • praise from your performance evaluations
  • testimonials from clients
  • customer satisfaction ratings
  • examples of when you went above and beyond
  • how you have increased revenue and decreased costs
  • problems you have solved
  • systems you have developed
  • project outcomes or targets you have met
  • new ideas you have implemented
  • training you have completed

Having something in writing helps you prepare your talking points when asking for additional responsibilities and gives the decision-makers something to reference as they consider your request.

Related read: 10 Things to Do If You Lost Your Job and Need Money Now

7. Ask for a Promotion

Now is where you actually ask to be promoted. Be direct and say, “I would like to be considered for [the new position or project],” followed by how well you think you’ll be able to handle the new role and new responsibilities.

This is where confidence is key. If you sound shaky about handling a new role, your manager will see that and have doubts. But if you’re serious and confident about how well you think you’ll do, your manager will also have more confidence in you taking on the position.

8. Let Your Manager Respond

Once you’ve given your pitch and have asked about a promotion, stop talking, and give your manager a chance to reply. Pay attention to how they respond, because this will tell you a lot!

Whether they are excited and open to the idea of promoting you or they have any apprehensions, their body language and facial expressions will give you clues. So will what they say and what words they use.

Just like in a job interview, if your manager is smiling and asking follow-up questions, that’s a good sign.

But if they seemed closed off and disinterested, that could mean your chances of getting a promotion are slim. Try not to let this discourage you, though. There are many reasons they might respond this way, or they could just be having a bad day.

Most likely, your manager won’t give you a solid ‘yes’ or ‘no’ immediately after you ask. They might say something about taking it into consideration and getting back to you. This is your cue to thank them for their time and leave so they can think about what you said.

After your meeting, your manager might give you a timeframe for when they will have an answer or when they would like to further discuss giving you a promotion. But if they didn’t, don’t worry about when they’ll get back to you. The last thing you want to do is annoy your manager and nag them about when you’ll be hearing from them.

Instead, play it cool and continue to do your work to the best of your ability. Understanding how to ask for a promotion is the key between staying where you are in your career and advancing to the next level.

Be brave, confident and understand that the worst a manager can say is no.

This article originally appeared on Credit.com.

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http://blog.credit.com/?p=197519 https://www.credit.com/blog/4-tips-for-earning-passive-income/ <![CDATA[4 Tips for Earning Passive Income]]> Fri, 18 Mar 2022 15:35:01 +0000 While there are many steps to reaching your financial freedom, people always wish that they could make a little extra money without the added time and effort. Finding a passive income stream is a great way to do this without a massive amount of stress. A passive income means gaining an additional stream of money with limited involvement or maintenance on the project. This is a great way to add a little bit more to your bank account without the weight of a full-time job.

Benefits of Earning a Passive Income

There are many benefits to having a passive income aside from simply the extra cash. You are no longer solely reliant on a single source of income and can have more flexibility with your finances. Everyone knows that dealing with your finances can be stressful, so this helps relieve some of those feelings. You might be able to spend a little more each month, or save up and buy a larger purchase that you wouldn’t have previously been able to afford!

Additional sources of income mean more money, and how you spend that money is up to you. While previously you might have strict financial requirements, with a bit more cash, you can begin to loosen those should you please. You can earn more money at a faster rate, helping you meet any financial goals more quickly or even retiring early.

1. Look into Renting Your Home

Renting your home or even a room in your house is a great way to earn a substantial amount of income on a regular and reliable basis. If you find the right renter, your money flow will be consistent and reliable month to month, without having to worry about any fluctuations.

Renting your home might require a little initial investment, through either money, time or both. If you need to do any small renovations to either prepare the home for a renter or increase its value, do those first to get the most money you can over time. If an addition to your home can allow you to increase your rent, you can be earning more money over time, and quickly cover the costs of said addition!

Finding the right tenant should be your first goal when considering your renting options as they’re a critical part of your passive income, and how easy, or difficult, it can be. Look into a thorough tenant screening program to make sure you’re covering all your bases when renting your home. In addition to looking for responsible tenants, it’s important to protect your house and its value. Consider looking into a home warranty plan to cover any wear and tear on appliances or home systems. It’s better to be safe than sorry when it comes to not only your home and property, but also your source of income.

Related read: Financing a Rental Property: 4 Things You Should Know

2. Dig Deeper Into Investments

Investing can be a great way to earn money while doing almost nothing. Through simply taking your hard-earned money and putting it in the right places, you can start to watch it grow. Investing in the right mutual or index funds is one of the safest ways to earn a substantial return on your investment, and it means your money is still very liquid. Here are a few tips for getting started in investing that might come in handy.

It’s important to consider your long and short-term goals when investing, as those will show you where exactly you should be putting your money. If your goals are more long-term, you can be more aggressive with your investments as you have a longer time horizon to course-correct should anything happen. If your time horizon is more short-term, consider playing it a little more safely to protect yourself and your assets.

3. Consider Creating a Blog or Website

Similar to other sources of passive income, creating your own blog or website might take a little while to get things fully off the ground, but can be a great source of extra money once it takes off. If starting from scratch, you’ll need to create a visually appealing website, and then attract traffic to your site.

There are a few ways you can generate a passive income from your website:

  • Affiliate marketing is arguably the most common way of doing so. This simply means you’re partnered with a site, you include links to products or services of said site, and you get a small commission on each conversion, at no cost to the buyer.
  • Selling a premade service is another great way to generate income through your site. This can range from an ebook, a recorded course, a guide or instructions for something and more.
  • Ads have been on the internet since the very beginning, and while some are starting to decline in profitability, they’re still a great way to earn some additional online income, especially during your site’s infancy.

Once you find the right niche for your site and begin growing your audience, your site can quickly start producing four digits a month, which can help increase your passive income, and provide you with more financial freedom.

Related read: 10 Best Online and Offline Ways to Make Money Writing

4. Rent Out Your Car or Parking Space

While this may seem less common than renting out your home, you can make a considerable amount of money renting either your car or parking space. Both are great ways to earn some extra passive income, and with people struggling with the return to the office and more companies working remotely, your need for transportation may decline.

Renting your car can be a relatively easy process, especially if you use a car listing service. Many provide you with liability insurance, options to rent out multiple cars, and an app to manage your bookings from your phone. If you find yourself working from home or simply not using your car for extended periods of time, this might be a great option to supplement your income.

For the parking option, there are also similar services that help you rent out your parking space. The price range can vary depending on demand and location, but it’s still a great way to earn some extra income if you have a parking space you aren’t using. In higher traffic and populated areas such as city centers, you can make a pretty penny with your spot.

Exploring some different options for creating a passive income stream is a great idea for anyone who’s looking to make a little extra money on the side. With limited involvement, you can be adding to your current income, and help you reach your financial goals more quickly. With varying levels of effort and income, finding the right passive income stream can help you prepare for your financial future with the least stress possible.

This article originally appeared on Credit.com.

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http://blog.credit.com/?p=197511 https://www.credit.com/blog/how-to-be-an-airbnb-host/ <![CDATA[How to Be an Airbnb Host: Tips for Fast Success]]> Thu, 17 Mar 2022 04:01:00 +0000 This article originally appeared on Spark Rental and has been republished here with permission. 

Ever been curious about how to be an Airbnb host? How much extra income could you earn, if you transitioned a property from a long-term to short-term rental?

We tracked down several Airbnb experts to explain how to become a host for Airbnb with minimal fuss and maximum profits. They were quick to point out that managing a short-term rental business is not for everyone–or for every property–but it can be extremely profitable.

From broad-level strategy and narrowing into more tactical tips, here are 14 tips for how to be an Airbnb host, as you try out Airbnb rentals as a landlord!

1. Run the Numbers

“Before you become an Airbnb host, calculate whether the additional effort is worth the money, compared to what you could earn if you rented out the same space on a long-term lease.”

Paula Pant, the sharp mind behind Afford Anything, uses Airbnb and short-term hosting for some of her rental properties. But not all.

Here’s how she breaks down the math:

“Let’s say that you could rent an apartment on a 12-month lease agreement for $1,200/month. By comparison, you could Airbnb the same space for $100/night.

“On the surface, that $100 per night sounds like a no-brainer. At full occupancy, that’s $3000 per month. Why wouldn’t you take that?

“But if Airbnb only gets you 18 days per month of occupancy, then your gross income would only be $1,800/month.”

Vacancy rate is far from your only expense though. You’ll need to pay for gas, electricity, water, internet, and consumables like toilet paper and soap. And don’t forget extra occupancy taxes tacked onto short-term rentals!

“Once you subtract these from that $1,800/month gross, you’ll find — in this example — that the long-term 12-month lease actually nets you more money.

“That’s not to say that all long-term rentals are better, nor is it to say that all short-term rentals are better. It simply means that you should not make assumptions based off gross income alone. Compare the two options to see which one is more lucrative.”

Related read: Financing a Rental Property: 4 Things You Should Know

2. Know Your Local Laws

Many local governments have outlawed or severely restricted Airbnb and other short-term vacation rental services. For example, one study found that half of the Airbnb listings in New York City are illegal. On the other side of the country, San Francisco only allows people to list Airbnb units if they live in the property themselves at least 275 days per year.

Research the best cities for vacation rentals, including both returns and legal regulations. Always understand your local laws, and make sure you can comply before listing on Airbnb!

 3. Approach Short-Term Rentals as a Complete Hospitality Business

Being a landlord is largely hands-off, with occasional spurts of effort. That’s what attracts most landlords in the first place–the promise of passive income!

Short-term rentals can produce strong income, but they’re far less passive. And they require a more holistic approach to operate profitably.

“So many people who try out Airbnb just throw up the listing and then sit back and wait,” laments Al Williamson. “They don’t do marketing outside of Airbnb or VRBO. Then when it’s off-season, these hosts don’t make any money, which ruins their annual returns.

“What they should be doing is launching multi-pronged marketing campaigns. Registering with travel websites like Booking.com, posting on Craigslist, leveraging their own website and audience, even using hyper-targeted Facebook ads to reach extended-stay business travelers.

“Short-term landlords who approach it as a business can virtually eliminate vacancies, while those who just think of themselves as Airbnb hosts will wonder why their vacancy rate is so high.”

Al mentioned earlier that you should price against the competition of hotels. That also means you should aim to operate with the smooth efficiency that hotels do, too.

 4. Furnish Affordably (But Tastefully!)

When most people approach the task of furnishing their rental, their first thought is “I guess I should go to the furniture store.”

Wrong. False. Incorrect.

Your potential guests don’t expect their bums to be the first to sit on your sofa. Not a single piece of furniture in your unit needs to be new.

Buy used furniture, and simply make sure it’s in good condition.

Options include Craigslist, Freecycle, garage sales, Goodwill, the Facebook Marketplace and used furniture stores. You can furnish your unit for a few hundred dollars, if you go about it with discerning taste.

Just make sure the décor matches within each room. You don’t need to be Betty Draper when learning how to be an Airbnb host, just pick a color scheme and go with it. Black and white is an easy one. Blue and wood tones is another easy scheme. When in doubt, take a tasteful friend with you to do your shopping.

5. Never Misrepresent the Property

Every landlord wants to paint their property in the best light. And that’s fine–as long as guests won’t be disappointed when they see the real thing.

Your listing photos are not the right place to show off your Photoshop skills. Your listing description is not the place to wax poetic.

By all means, show off the property’s strengths. Brag a little. But when it comes to your property’s weaknesses, be honest.

That doesn’t mean you can’t put a positive spin on them. If you’re renting out a small studio, “intimate” and “cozy” are reasonable alternatives to “cramped” and “tiny.”

Your guests will rate your property not just overall, but also on the accuracy of your listing. And if they feel gypped when they arrive, they’ll leave terrible reviews. This is a fast way to sink your short-term rental business.

6. Accrue 5-Star Reviews ASAP

First and foremost, ask all guests to leave a review for you. Pretty please. With a cherry on top. If you don’t ask, many will simply forget or not get around to it.

But building your rating doesn’t stop with asking for reviews. In the beginning, you might need to price your unit more competitively and go the extra mile with each guest.

“People love a deal, and as a new AirBnb host it can be difficult to stand out amongst the other AirBnb listings in your area,” explains Andy Kolodgie, owner of Cash Home Buyers Georgia. “By initially lowering the price of your AirBnb, you will draw in more people because most are looking for affordable accommodations. This will build your AirBnb reputation and allow you to start getting reviews. Building this credibility early on will attract more people to your AirBnb enabling you to increase the price down the road.”

The faster you can score your first five positive reviews, the faster you’ll drop that vacancy rate. Many guests refuse to stay in units without at least 5-10 reviews. So, make gathering reviews a priority.

7. Cleanliness Is Next to Godliness

Everything about your unit and your guests’ stay could be perfect, but if they see one cockroach cruise across the kitchen counters, you can expect a bad review.

Your units must be spotlessly clean. That goes doubly for kitchens and bathrooms.

And while we’re speaking of reviews, cleanliness is another category that guests will use to rate your unit. And not just on Airbnb, but on travel websites as well.

If you hire a maid or cleaning service, screen them well, and inspect their work regularly. Check that the bed linens are spotless and turned down professionally. If you do the cleaning yourself, make sure you do a spectacular job worthy of Mr. Clean’s shining pate.

8. Be Extremely Responsive

Experienced hosts know that communication with guests is crucial. So much so that it warrants its own rating category when guests leave reviews.

When a prospective guest inquires about your rental space, answer immediately. Do likewise when approving requests to book (if you refuse to turn on Instabook). And when future guests (or currently staying guests) message you with questions, hop to it.

Your response rate is the percentage of guest queries that you respond to within 24 hours. You need it to display as 100%.

9. Create a Concierge Document or Booklet

What do guests need to know, to stay in your unit?

What would make their stay even more enjoyable?

Start with the basics: an emergency contact name and number, the WiFi network name and password, which key is for which door, check-out procedure, and so on.

But don’t stop there. What neighborhood restaurants are divine? Which are tourist traps?

What entertainment or activities are available in the area? Have any tips to get the most out of the experiences? Any recommendations?

Can you include any coupons to local restaurants, events, etc.?

Don’t feel like you need to go overboard with this. Start basic with the bare necessities and add to them over time.

10. When in Doubt, Hire It Out

“Being successful with any Airbnb property will take time to manage, regardless of how close it is to where you live,” reminds Danny Margagliano, a Realtor and Destin Airbnb expert. “You will not only have to be available for fielding questions and inquiries but also be ready to spring into action when a problem arises.

“If an appliance breaks or the toilet gets clogged they are going to call upon you to fix it. This not only takes time but you also need to be available and have flexibility in your schedule. If you work a 9-to-5 job where you can’t have access to your email or phone you may want to rethink the idea of self-managing your rental property through Airbnb.

“Some of the responsibilities include but are not limited to cleaning in between guests, general maintenance, answering general inquiries in a timely fashion, and making sure guest check-ins go smoothly. If this list doesn’t scare you, you may be a great candidate for hosting an Airbnb property.”

This article originally appeared on Credit.com.

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http://blog.credit.com/?p=197494 https://www.credit.com/blog/balance-transfer-saving-money/ <![CDATA[How a Balance Transfer Can Help You Take Control of Your Finances and End Up Saving You Money]]> Tue, 15 Mar 2022 04:01:00 +0000 Do You Have Multiple Credit Cards?

The average U.S. household has a credit card debt of $6,006. These figures may seem high or low depending on who you ask. However, if you’re someone who is having trouble making repayments, credit card interest can quickly become overwhelming.

Credit card debt is often considered as a bad debt because it diminishes your wealth over time. Although, in the context of a balance transfer, this type of credit card can be an effective way to reduce your repayments. In this article, we’re going to explore what a balance transfer is, how it works, and the fine print you should always consider. This may help you compare and make an informed decision.

What Is a Balance Transfer?

Let’s start off with the basics by first defining what a balance transfer is.

A balance transfer is when you move one debt into another debt. For example, let’s say you have a Mastercard, American Express and Visa credit card–all from different banks. Your Mastercard has $2,000 owing, your American Express has $3,500 owing, and your Visa credit card has $3,000 owing.

Doing a simple calculation, you owe a total of $9,500. But this is not the complete story.

This is because each credit card has its own interest rate (also called annual percentage rate – APR) and these can typically vary from 12% to 24%.

For the sake of this demonstration, we are going to make the following assumptions:

  1. You will make a minimum repayment of $100 per credit card per month and cease using them altogether
  2. Your Mastercard has an APR of 15%
  3. Your American Express has an APR of 19%
  4. Your Visa credit card has an APR of 12%
  5. All your credit cards have zero annual fees and the minimum repayment allowed is 2 percent.

Using a credit card repayment calculator, it will take you 3 years (36 payments of $300) to be completely debt-free. That is, paying $10,668 in total where $1,168 is going towards the interest.

This is where the concept of a balance transfer can help you save money paid towards credit card interest.

A balance transfer is the process of consolidating these debts into one single repayment plan. Using the previous example, instead of paying three different interest rates, a balance transfer will combine them under one single annual percentage rate where the interest rate is lower than those from your existing Visa, American Express, and Mastercard credit cards.

The goal of a balance transfer is to reduce the amount of interest paid by as much as possible. That is, instead of paying $1,168 in interest, a balance transfer credit card could reduce this significantly provided that you make the monthly repayments during the promotion period.

What Is a Balance Transfer Credit Card and What Are Its Advantages?

A balance transfer credit card is a credit card that allows you to transfer an amount of money (often up to 80% of the card’s credit limit) from one credit card to another.

In terms of benefits, a balance transfer primarily has two:

  1. Reduce the amount you end up paying in interest.
  2. Help you improve your credit score.

Paying interest does not add to your personal wealth. It does the exact opposite and this is why credit card debt is seen as a bad debt. The whole point of a balance transfer is to allow you to repay the principal amount while reducing the amount paid towards the interest.

By doing this, you can also improve your credit rating.

“A credit score, also known as a credit rating, is the number that represents your financial history. Banks and other lenders use this score to indicate your reputation as a borrower, determining your creditworthiness to pay them back”  – Clearscore.

While your credit score may not seem important to you right now, ignoring it can prevent you from gaining access to favorable loan terms in the future. There are many free ways to access your credit score–Credit.com is one way. 

UNITY® Visa Secured Credit Card - The Comeback Card™

Apply Now
on OneUnited Bank's secure website
Card Details
Intro Apr:
N/A

Ongoing Apr:
17.99% (Fixed)

Balance Transfer:
Intro: 9.95% for 6 months

Annual Fee:
$39

Credit Needed:
Poor-Bad-No Credit
Snapshot of Card Features
  • Unlike your Prepaid Card, UNITY Visa secured card can help you build your credit. Apply online in less than 5 minutes, and you could be approved today!
  • No Minimum Credit Score required; low fixed interest rate of 17.99%; Fully refundable FDIC security deposit* required at time of application; if you have a min of $250 to deposit immediately, you can start now!
  • No application fee or penalty rate
  • Monthly reporting to all 3 major credit bureaus
  • 24/7 online access to your account
  • *See the Cardholder Agreement for more details.

Card Details +

The Next Steps

  1. Review every credit card that you have and tally up the balances owed.
  2. Do a monthly budget to get an honest account of your spending habits and compare this with your income. This is so that you can be realistic about what you can afford to repay in a limited time.
  3. Search for “balance transfer offers” or “low APR credit card” and see what is available to you.
  4. Speak with a licensed financial advisor to get tailored advice.
  5. Apply for a balance transfer.
  6. Once approved, cancel your existing credit cards.
  7. And most importantly, stick to the payment plan and never miss a payment and don’t use the balance transfer credit card for any spending.

Understand The Fine Print

As with any financial product, read the fine print and seek professional advice. When it comes to balance transfers, if you don’t pay off the balance you transfer within the stated time, it may end up costing you more. And that’s the exact opposite of what you’re trying to achieve. Similarly, if you start making purchases with the balance transfer credit card, you’ll have to pay these off first and with many cards, the APR can exceed 20% p.a.

In closing, here are a few things to look out for when shopping around for a balance transfer credit card:

  • What is the introductory APR?
  • How long does the introductory APR last?
  • What is the maximum balance transfer amount? Quite often, you can only transfer up to 80% of the card’s credit limit.
  • What’s the balance transfer fee? Usually a 1-3% fee applies.
  • Is there an annual fee?
  • What’s the minimum repayment due each month?
  • Are there any conditions of the balance transfer that apply to your existing credit card debts?

Learn more: Credit Cards with No Annual Fees

Key Takeaways

  1. Credit card debt is calculated daily and this can quickly add up even if the APR doesn’t seem high.
  2. A balance transfer is when you move one debt into another debt. This is done to reduce the amount of interest you will pay by taking on lower APR.
  3. Some balance transfer credit cards offer 0% APR but often incur a one-off transfer fee.
  4. Don’t continue to use your credit cards after doing a balance transfer–you can keep it open even if you don’t plan on using it.
  5. Paying off your credit card debt quickly and consistently will improve your credit score.

This article originally appeared on Credit.com.

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http://blog.credit.com/?p=197486 https://www.credit.com/blog/budgeting-tips-ramp-up-savings/ <![CDATA[8 Budgeting Tips That Will Motivate You to Ramp up Your Savings]]> Thu, 10 Mar 2022 05:01:00 +0000 Let’s face it: Some of us are better at budgeting than others. While some people never seem to have enough money, others are plagued with poor or reckless spending habits. 

In either case, effective budgeting can help you gain some financial traction and ramp up your savings account for the future.

Let’s check out eight budgeting tips that will help ramp up your savings!

Create a Budget to Begin With

This seems like a no-brainer, but you’d be surprised how many people don’t even make a budget, to begin with. It doesn’t matter if you plan this weekly, monthly, or even daily; the key is that you establish a consistent budget and stick with it. 

Not only will this lead to more money in your savings account, but it will also help you maintain some peace of mind. By starting a budget, you will be able to track your expenses to see where you can cut costs to save more money!

Avoid Spontaneous Purchases

Impulse buys and unplanned purchases can be real budget killers. Simply put, if it isn’t already a part of your budget, don’t buy it. 

Exceptions can be made for emergencies, but extraneous items and spur-of-the-moment purchases will only hamper your ability to build a solid savings account.

Many people feel as if they need or really want an item, but it’s really just clever marketing tactics that play on your emotions that make you feel this way.

In reality, impulse purchases won’t make you any happier, they may bring you temporary joy, but this usually fades quickly, leaving a dent in your bank account.

You could use the 72-hour rule, which is a strategy to curb impulsive spending. It works by waiting for 72-hours before making a purchase that you don’t need.

This works by letting your emotional actions fade and letting rational thinking take over. After 72-hours, in most cases, you will not even want to purchase the item any longer.

Focus on the Three Most Costly Expenses

While it’s definitely beneficial to look at the smaller costs in your day-to-day life to cut costs, it is much more impactful to focus on the three largest expenses most Americans have.

These are housing (including utilities), transportation, and food.

For most Americans, these are the three most costly areas in their finances, and you should really look closely at how much you spend in these three areas.

Maybe you can move to a more affordable house/apartment, get a cheaper car, eat out less, etc.

The actions you take depend entirely on your current situation, but the key is to focus primarily on what is costing you the most. 

Use Automation

One thing that might help is to take advantage of automation to help you on your personal finance journey.

Firstly, you should set up automatic deposits into your savings account each month for whatever amount you can afford.

Secondly, it’s recommended to set up automatic bill payments. So, you don’t have to stress about due dates.

Most credit cards and utility providers offer an automated or recurring payment option for their regular customers.

These systems ensure that the utility companies receive their money on time, but they can also be advantageous to those trying to save money in the long term.

Not only are these platforms convenient for everyone involved, but they can help you avoid late charges and even improve your credit score over time.

Use Cash If You Are in Debt

If you are in debt, then nothing is worse than digging yourself a deeper hole that will take forever to get out of.

It’s recommended to use cash for your purchases if you are in debt and struggling to get out of it.

Credit cards can be great tools when used correctly and intelligently. Unfortunately, they can also lead to overspending and, in some cases, massive debt.

If you find yourself in this situation, or even if you’re just looking to save a little bit of money, try making the transition back to cash.

In this case, your spending is over once your wallet’s empty; it really is that cut and dry.

Buy Non-Perishables in Bulk

A really neat way to save money without really noticing is to purchase non-perishable items in bulk when they are on sale.

Items such as toothpaste, soap, toilet paper, etc… won’t go bad, and if you can afford to purchase more when they are on sale, you can save a lot of money down the road!

Bulk stores, including large warehouse chains, can be a great solution when trying to save money on everyday goods. 

Yes, you are spending more money upfront, but you won’t have to re-purchase the items for a long time, and since you are getting them on sale, it is more cost-effective.

Separate Wants from Needs

This is a huge one and has a significant impact on your budget!

You need to separate your wants from your needs, it sounds straightforward, but many people struggle with this.

Many people classify their wants as things they need, but it can’t be further from reality.

So, simply track all your expenses, categorize them into wants and needs, and start cutting costs in the wants category.

This is one of the best budgeting tips to help you ramp up your savings!

Spend More Time at Home

Consumers spend a lot of money going out to eat, frequenting local bars, and visiting friends.

To help save some money, many are now spending more time at home.

Inviting your friends or family over for cocktails and dinner is far more affordable than visiting a fine restaurant, and you can still achieve that feeling of connectedness from hanging out with peers.

If you are trying to save more money, this is one of the best budgeting tips to help you get there.

Conclusion

Developing a budget might be easy for some but might be a daunting and challenging task for others, but with these budgeting tips, you will be sure to ramp up your savings.

Simply track your expenses and work to cut costs. The most important thing is that you start!

Start a budget as soon as possible; it doesn’t have to be perfect; adjustments can always be made.

This article originally appeared on Credit.com.

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http://blog.credit.com/?p=197452 https://www.credit.com/blog/why-my-car-insurance-so-high/ <![CDATA[12 Reasons Why Your Car Insurance Is So High and What to Do about It]]> Tue, 1 Mar 2022 05:01:00 +0000 This article originally appeared on RickOrford.com and has been republished here with permission.

Car owners throughout the U.S. almost always need to have a car insurance policy. With the financial considerations involved and the risks drivers face on the road, it’s important to weigh the cost of car insurance carefully. Do you think your car insurance is too high? If so, you can find cheap car insurance by shopping around. 

In certain ways, your car insurance costs may be a reflection of you and your driving habits. Auto insurance providers often base the rates they charge on important factors. Some of these include your credit score, where you live, your driving record, and the type of car you drive. Therefore, if your premiums recently shot up or seem too high, you need to determine the possible reasons for it. 

Reason #1: You Have Bad Credit

In most states, auto insurance companies use your credit score when calculating your car insurance premiums. Therefore, if you have a poor credit score, you may end up having to pay higher insurance premiums. However, the cost increase may depend on the auto insurance provider you choose and where you live. 

According to the Insurance Information Institute, credit-based insurance scores are confidential ratings based on the insured individual’s credit information. Many insurance providers use credit scores in combination with other factors to help determine premiums. This is typically the case for insurance lines such as personal car insurance. 

Reason #2: Poor Driving Record

Before giving you a car insurance policy, all insurance providers will want to know your complete driving record. This includes your traffic violations and accidents you had in the past. Even if the handful of accidents you had did not happen recently, you might still have to pay higher insurance premiums. The same applies to traffic violations. 

However, if you have a clean driving record, you should enjoy lower insurance premiums. When it comes time to renew your policy, your insurance provider will check your driving record for DUIs, accidents, speeding tickets, and other traffic violations. 

Your premiums may increase by as much as 20% after a speeding ticket. A DWI or DUI will cost you significantly more. You will also have to pay steep fines and attorney fees, in addition to an average premium increase of up to $800. 

The reason for this difference in rates is that drivers with poor records are more likely to make more claims in the future. 

Reason #3: Coverage Levels and Types

The type of coverage you choose and the level of insurance you have can greatly influence your insurance rates. Every state decides its own rules and requirements for minimum coverage requirements on any type of policy. 

For example, some states have basic minimum requirements for property damage and bodily injury coverage. Others require additional coverages such as underinsured and/or uninsured motorists and personal injury protection or medical payments coverage. 

A state like South Carolina, for instance, requires drivers to carry the following:

  • A minimum coverage of $25,000 per person for bodily injury
  • $50,000 per accident
  • $25,000 in uninsured motorists’ coverage and property damage coverage within the same limits

Since the minimum requirements for drivers differ by state, you may start with different rates and coverages just on a basic liability insurance policy alone. Furthermore, if your car has a lien, you may need to have additional coverage or higher limits, which would affect your annual rates. 

The answer to the question “Why is my car insurance so high?” may lie in the type of coverage you have. Generally, the more coverage your car has, the more you should expect to pay.

For example, do you have a full coverage insurance policy, which includes collision and comprehensive coverage? If so, it may cost you about 170%  more in premiums than a policy with liability coverage only. 

Reason #4: Your Claim History

Even if you only have a couple of accidents on your driving record, the resulting payouts will impact your insurance premiums. Of course, a driver with a couple of minor fender benders is a significantly lower risk than one who previously totaled several cars. 

Whether the accidents were your fault or not, the number of claims you file will have an impact on your insurance rates. A no-fault accident can lead to a 10% increase in your premium and remain on your record for up to three years. 

However, some states do not allow insurance providers to increase premiums after a no-fault accident. However, filing a claim for such an accident will still count towards your total number of claims. 

Related read: How an Accident Can Affect Your Credit Score

Reason #5: Your Car

When setting premium rates, car insurance providers consider the type of car to be insured. Some types of cars are more likely than others to keep occupants protected in the case of an accident. This results in lower insurance rates.

However, drivers of high-powered cars such as sports cars are statistically more likely to drive recklessly. This makes these drivers more likely to cause accidents, resulting in higher insurance rates. 

According to some studies, safer and bigger cars, such as small SUVs and minivans, tend to have the most reasonable rates of insurance. Smaller cars, on the other hand, have surprisingly high rates. One reason for this could be because they tend to sustain more extensive damage in a crash. 

Reason 6: Where You Live

Car insurance costs vary widely across the United States. If you reside in Michigan, one of the most expensive states for auto insurance, you can expect to pay several times more than people living in Maine, for example. 

Various factors affect insurance rates in each state. These include the number of uninsured drivers, condition of the road network, minimum coverage amounts, and more. That said, you need to understand that insurance rates can vary within a state or city as well. 

For example, if you live in an area with narrow roads that frequently lead to accidents, you may have to pay more for insurance than you would if you lived elsewhere. Those who live in areas with high rates of auto thefts tend to pay more for car insurance as well. 

Reason #7: Your Age or Gender

“Why is my car insurance so high?” This is a question many younger drivers tend to ask. According to the Insurance Information Institute, mature drivers tend to have fewer accidents than less experienced drivers, especially teenagers. This is the reason less experienced drivers pay more for car insurance. 

Also, your insurer will charge you more if you let teenagers and young adults below 25 drive your car. If you have young drivers on your insurance policy, you may end up paying higher premiums.

Your gender may also affect how much you pay for car insurance. Statistically, men tend to get into more accidents and have more DUI-related accidents. Furthermore, they tend to have more serious accidents than women. These are the reasons why women tend to pay less for car insurance than men. 

Young men are likely to pay a lot more for auto insurance. A 20-year-old man, for example, may have to pay about 16% more on his insurance premium than a woman of the same age.

However, as drivers age, the difference in rates tends to even out. Often, older women pay slightly more for car insurance than men of the same age. However, in this case, the difference in rates is quite small. 

Reason #8: Your Insurance Company

Your car insurance may be expensive because your insurance provider charges higher rates. Rates vary dramatically among different insurance providers. Therefore, you could be paying significantly more than necessary. 

According to one study, among the top ten auto insurance providers nationwide, the average price of basic coverage for a good driver is about $440 for six months. However, that same driver could be paying just $309 from one company or as much as $625 from another of the top companies.

Therefore, if you have a good driving record, you could save up to 51% in insurance savings by switching companies. 

Reason #9: Your Driving Patterns

Simply put, you and your insurance provider are at higher risk the more often you’re on the road and the further you drive. If you travel great distances to and from work, driving your car may eliminate some of the inconvenience. You just listen to your favorite music or podcasts to pass the time as you drive to work every day. 

However, you may be paying a higher insurance premium for that convenience. When you apply for insurance coverage, your insurance provider will want to know where you work and where you live. This will help them have a better idea of how far you drive regularly. 

Reason #10: You Have Low Deductibles

When buying car insurance, car owners typically choose a deductible. This is the amount they would need to pay before the insurance provider picks up the tab in the event of theft, an accident, or any other type of vehicle damage. 

Depending on the type of policy you choose, your deductibles may range from $250 to $1,000. However, there’s a catch. Generally, the lower your deductibles are, the higher your annual insurance premium is. 

Reason 11: You Pay for Coverage You Don’t Need

If you think your car insurance is too costly, you need to take a closer look at your policy. Do you need to pay for things such as car rental coverage and roadside assistance? Although such coverage can provide some convenience, they are not the most important things to pay for. 

Reason #12: You Have Gaps in Your Car Insurance

Many auto insurance companies consider the continuity of a car owner’s auto insurance. If you’ve had lapses or gaps in your car insurance history, you may be pegged as a high-risk car owner. As a result, your premium rates may increase by as much as 8% per year. The rate increase goes up to 35% if the coverage lapse extends beyond 30 days.

These penalties may also vary depending on your auto insurance provider. Make sure you ask your provider about how an insurance lapse would affect your premium rates.

The Bottom Line

To find out why your insurance rates seem to be expensive, you must first understand how auto insurance companies determine your rates. Fortunately, in most cases, you can do something about your unnecessarily high car insurance premiums. This may involve adjusting your driving habits or filing fewer claims, if possible.

In addition to shopping around for the best auto insurance rates and the right policy, you should look for discounts as well. These discounts may be applicable to drivers with good records, student drivers, and members of the military. Check your provider’s website to determine the types of discounts they offer. 

The more information you have, the easier you can identify the factors contributing to your car’s high insurance rates. 

This article originally appeared on Credit.com.

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http://blog.credit.com/?p=197404 https://www.credit.com/blog/10-personal-finance-books-you-should-read/ <![CDATA[10 Personal Finance Books You Should Read For A Better Life]]> Sat, 19 Feb 2022 05:01:00 +0000 The views and opinions expressed in this article are those of the author only and are not endorsed by Credit.com.

There are no two ways about it: if you truly wish to lead a healthy, and successful life, money can play a crucial role. However, most individuals find it tricky to manage and understand finance and therefore, tend to avoid expanding their understanding in this field. A well-rounded financial life, on the other hand, can actually provide you the flexibility to pursue your dreams. 

For this reason, we’ve compiled a list of ten personal finance books that will help you broadly understand finance. These books should provide you with the greatest possible financial guidance at any age and in any scenario of your life. 

10. How to Make Your Money Last

Crucially, it’s important to invest in your 60s, and this book is a special read for anyone nearing or already in their retirement age. A straightforward read, it’s a go-to guide on how to manage home equity or savings. 

Jane Bryant Quinn, the author, offers breakthrough pieces of advice on how to invest in your retirement period. It’s a retirement plan that helps you stay wise and on the right track of your finances. Even in your late life, security is indeed guaranteed with this finance book.  

9. Rich Dad, Poor Dad

One popular gem and for reasons, the book has sold over an astounding 40 million copies. This work was on the New York Times bestseller list for over 6 years. Rich Dad Poor Dad mainly highlights the differentiation on how the rich and the poor view money. It’s a good financial read to give you the boost, or well, to shape your perspective on personal finance.  

Written by Robert Kiyosaki and Sharon Lechter, the book is a good first step in understanding the importance of financial literacy and responsibility

8. The Richest Man in Babylon

Considered as a classic in personal finance, this George S. Clason read emphasizes more on saving rather than spending. Released in 1926, it remains in print largely today and is still popular because of how clearly it presents financial wisdom.

Based on principles such as living within your means, saving, and avoiding risky investments, the book also emphasizes charitable giving. Rest assured, the writer’s heart is in the right place and this is a good read to nurture your financial mind. 

Related read: How Can I Take Control of My Finances? 6 Easy Steps to Follow

7.  The Millionaire Next Door 

Have you ever wondered how the wealthy got where they are today? This book penned by Thomas Stanley and William Danko is a quintessential guide on how you can begin your wealth-building journey. It focuses on the seven standard characteristics that all wealthy personalities possess. For anyone young and who wants to get rich quickly, this finance work is a must-read. 

6. The Financial Diet: A Total Beginner’s Guide to Getting Good with Money

The book has to offer a lot on how to manage your money, and the author Chelsea Fagan tells it from her financial experience and other money experts. Not just budgeting and investing but the readers also learn about budgeting, debt repayment, saving for retirement, mortgages, and lots more. 

This practical easy to read guide also motivates you to start a conversation with your family or friends regarding finance or money, hence, allowing you to learn and gain from financial experiences. 

 5. Broke Millennial Takes on Investing: A Beginner’s Guide to Leveling Up Your Money

The ‘Broke Millennial’ series has made quite a name for itself in the financial sphere and for good reasons. The second book in this series offers fantastic investing tips, therefore, being a compulsory reading for new professionals. 

With this edition, Eric Lowry, the author of the broke millennial series offers a hands-on investing guide for beginners which is easy to read and allows you to understand the market in regards to your beliefs and values. Not just this but you also get an idea on things like investing, saving, budgeting, rebalancing your investments, and more, allowing you to understand finance considerably. 

4. I Will Teach You to Be Rich 

This book strikes a balance and can be read by both mature and young individuals. This six-week guide teaches you how to make a financial plan, strategize it with your money, and set up structures to build that wealth. 

The author Ramit Sethi teaches you how to get rid of credit card debt, automate accounts for every month, buy a house, and many other practical life-changing bits of advice in this finance book. To get your financial part of life sorted, this one is a good read.  

Related read: 7 Tips for Paying Off Credit Card Debt

3. Your Money or Your Life: 9 Steps to Transforming Your Relationship with Money and Achieving Financial Independence 

“Financial Independence” is written all over this one as this finance book offers a 368 page long financial guide on how you can become financially independent. With the right investment choices to the mindset, this book offers easy to follow steps if you wish to retire early and want to achieve long-term stability with an effective personal finance system.

Written by Vicki Robin and Joe Dominguez, with this book you learn how to steer clear of debts. You can also find ways to build healthy financial habits that in the long run can make your life simpler and more comfortable. 

2. The Simple Path to Wealth: Your Roadmap to Financial Independence and  a Rich, Free Life

JL Collins’ book doesn’t shy away or fall short of practical advice on investing. Even some of the most complicated financial aspects are also included in this reading. 

With rave reviews, it’s considered a quintessential guide for investors as well as individuals who wish to retire early. Without a doubt, this one will help you understand some of the most complicated financial concepts.  

1. The Automatic Millionaire  

The book is the best overall finance guide as it has just one motto, i.e. to automate your finances. It’s the perfect personal finance book that teaches you how to build your wealth. The book has it all from paying off debt to saving, this is a must-read that’ll help you understand finance at large. 

David Bach, the author of this book educates you on how you can set up a financial strategy and put it to use as quickly as possible. With all the guidance and advice mentioned, you are bound to learn a ton from this one. 

The Bottom Line 

Reading the books mentioned in this blog can help you get started with finance or help you manage your finance in a better way. The important thing is to understand your situation and accordingly, pick a finance book to get better. The more you’ll read, the more you’ll learn, and the better you’ll become with your finances.  

This article originally appeared on Credit.com.

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http://blog.credit.com/?p=197433 https://www.credit.com/blog/how-to-stay-stress-free-this-tax-season/ <![CDATA[How to Stay Stress-Free This Tax Season]]> Thu, 17 Feb 2022 16:58:12 +0000 As of January 24th, tax season is finally upon us. Documents are pouring in, your accountant friends are already deep into 80 hour work weeks and you’re wondering if you can write off your donation to a Krakatoa volcano relief charity that turned out to be fraudulent. 

Whether you’re a seasoned tax veteran or doing them on your own for the first time, taxes can be a real headache. Thankfully, they don’t have to be! In this article, we’ll lay out some tips for you to make it through April with your sanity intact. 

Focus on Yourself

Before you attack your taxes, make sure to take time for yourself. If you go into taxes already stressed, then chances are even the easiest of returns could bring some unnecessary anxiety. 

If you’re dealing with some serious anxiety, speaking to a mental health professional might be an important first step. Sometimes, your stress is bigger than just your taxes. High levels of anxiety can compound on themselves, so before starting something you know will stress you out, like taxes, think about getting help from someone like a psychiatrist online. They can help you work through anxieties, as well as prescribe medication if necessary. 

There are plenty of other ways to destress! Mindfulness meditation can help you to relax, and is known to reduce anxiety levels. Alternatively, you can invest some time into your hobbies. When you’re stressed, hobbies are sometimes pushed to the side, but they can help take your mind off your finances. Go fishing again, read a book, or bake a cake. It might just help you with your taxes!

Prepare Early

While they might not be due until April, it’s important to start getting your taxes ready earlier in the year. Avoid cramming everything in at the last minute, as that will only make things worse and doesn’t give you margin in case something needs to be corrected. Moreover, it gives you time to break everything up and take important breaks.

There’s a lot you can do to prepare your taxes before you even look at a return. Not every document is coming in the mail, so be sure to find all those receipts. You’ll have much more time to dig through every purse if you start in January instead of April. 

Additionally, if you expect to owe taxes, start setting aside money to pay them. Nothing is quite like the anxiety of a tax bill you don’t have the money to pay. If you start putting a little bit aside at a time, it can be much more manageable. 

Organize Your Finances

Let the stress of tax season be a kick in the butt to get your finances in order. You don’t need to spend time every year frantically searching for the last document wondering if you owe or if you’re actually getting a return. Taking the time throughout the year to keep track of everything will only make tax season easier. While this isn’t something you can fully do now, it’s something you can get started on at any time. 

Keeping important financial documents in a safe place is incredibly important. Consider getting a lock box to keep in your home or a safety deposit box outside if you’re particularly concerned. Inside, keep a file folder with every document you need, and find an organization system that works for you. Maybe you want them set in by date or by type of document. What works for some people might not be best for everyone, but the important thing is that everything is in the same location.

On top of keeping your documents straight, you can also take this time to balance your budget. Not only does this help to keep you informed on how your finances are doing, but it can also help you to reduce stress and keep unpleasant surprises from creeping up on you. You can also take this time to start keeping track of your credit.

Ask the Pros

If your parents were the do-it-yourself kind, you have memories of them spreading all their documents on the kitchen table, pulling out their calculator, and spending hours laboring until they were done with their taxes. It was messy, it was frustrating, and it might even be how you do your taxes now. 

Fortunately, they don’t have to be done like that. It’s okay to ask for help on your taxes, and have a professional tax attorney or an accountant assist or do them for you. They almost always know more than you and can even help you find different ways to reduce your tax burden. There are also lots of options for online services to do it for you, and many have free options depending on the kind of return you’re filing. Look into which one works best for you.

The IRS Is Your Friend?

Frequently, the Internal Revenue Service is demonized and becomes the scapegoat for all complaints about government finances. However, they have many helpful tools to get you through tax season stress free.

Wading through the options of online services or accountants can be a stress all on its own. Moreover, they can be expensive, even when you’re getting a return. For qualifying returns, many Americans can file their taxes through the IRS Free File, and do their federal taxes for free. This is an option for anyone with an Adjusted Gross Income (AGI) of less than $73,000. 

If you’re already reading this too late, and you don’t think you’ll be able to get your taxes in on time, consider filing for an extension. While this doesn’t delay any amount you might have due, it does give you an extra six months to finish up getting paperwork in. Moreover, if the amount you owe turns out to be more than you can pay up front, the IRS also has installment plan options for individuals who need it.

This article originally appeared on Credit.com.

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http://blog.credit.com/?p=197395 https://www.credit.com/blog/14-ways-to-save-more-spend-less/ <![CDATA[14 Ways to Save More & Spend Less]]> Tue, 15 Feb 2022 05:05:00 +0000 This is a truncated version of the original article shared with permission. Click to read the full article on RickOrford: 19 Ways to Save More & Spend Less

Save money for emergencies! It’s a phrase that’s so well-known yet ambiguous because, unfortunately, no ‘money cutter’ can help you cut out the expenses. Yes, unless you start saving up for good, you’ll always find it easier to spend. Either you’ll find your favorite jeans on sale, or a totally unnecessary-yet-so-cute product will catch your attention.

Of course, unless you’re a pro-saver and have the best customer-friendly credit card to help you get started with the initial steps, saving will be difficult. But, even if you’re scared to spend less and save more, we’re here to help. So, without any further ado, let’s dig in!

Ways to Save More and Spend Less

1. Start Now to Create the Perfect Budget

Starting with the first and foremost step, budgeting. The only way to save money is by taking the initiative to spend less. And, making a solid working budget will help you tons in this regard. But of course, you don’t have to go all out to create the perfect budget right off the bat. What matters is your strategy. 

By only starting with the baby steps to make a budget that works right for you, you’ll get to notice how foolishly a lavish spender you were before. Of course, we’re not talking about the needed expenses, but those you consider as ‘trivial’ and ‘few pennies won’t hurt.’ Trust us. When you make a budget, you’ll realize there’s so much you can avoid saving more for emergencies or a better future. 

Read more: 14 Frugal Living Tips You Can Implement Today and Save Thousands

2. Think Hard before Any Big Purchase

Living on a limited paycheck is hard. But, struggling to keep it going till the last date of the month is even harder. However, you can avoid the major spending tasks to let that heavy burden off your shoulders. For instance, if you want to buy something that would take a considerable amount of your paycheck, reconsider it. Think hard if whether it’s a thing you want or a thing you need. 

You’ll see a major cut out of unnecessary expenses and at least some of the savings monthly once you start avoiding big purchases all at once. Or, you can confine one big purchase a month to stop ruining your budget. unless it’s a necessity,

Read more: How to get out of a debt spiral – 11 Easy things to do [TODAY]

3. Stop Lavish Spending to Save Forever 

If you think a mini shopping haul is a must during the month, or, you deserve to get a self-care day full of fancy food, party night with friends, and whatnot on payday, then you’re wrong. We aren’t implying you can’t have fun. But going out of the way just to feel relieved and relaxed is not a good option. Surely, you’ll be regretting your choices, seeing zero balance in the last days of the month. 

However, rewarding yourself here and there once you achieve your weekly savings goals can boost up your morale. Whenever you feel like you’re struggling with a tight budget, it’s fine to take a day off rather than being demotivated and giving up. So, feel free to treat yourself to your favorite food or a walking date with your best friend on achieving a milestone. 

4. Take The Initiative to Save Regularly

If you think you can save for one day a week while spending carelessly for the rest of the days, you’re at fault. Savings don’t become a huge sum of money unless you put in the effort to make them big. ‘Daily saving amount’ is a crucial point to consider while making a weekly or monthly budget. Organize your earnings and spendings in a way that you always have something beneficial every day.

The amount doesn’t have to be big to consider it a saving. See whatever you can set aside to put in your piggy bank to submit into your savings account at the end of the month. This sole practice will put you at ease knowing you are saving something on a daily manner.

5. Say Yes to A Good Insurance Policy

You need good insurance, “but you don’t need to pay any extra to get the best out of it”, says Chelsea Brennan of Haven Life. Brennan explains you can get quality insurance that will give you endless benefits without going broke to have it. In addition, health, travel, car, and life insurance can save you from unexpected money situations by covering the spending cost.

Brennan describes insurance to be the savior from bad situations that could have cost you so much otherwise. It‘s more like financial security in an emergency to your life, health, or belonging. You might indeed have to spend a little extra to buy it, but it’s really not a bad option for the long run.

6. Keep a Record of Your Spendings

To be a pro-saver and considerate spender, you must know your cash flow. Like, what’s your monthly net income, your expenses, and your savings at the end. Categorize your expenses, subtract your spending from income and see what remains. You can also download an app to record and sync all your spendings. 

The key is to record even the simplest of the expenses. For instance, if you bought ice cream, a water bottle, a pair of socks, or even paid for a parking ticket with the card, it’s worth recording. There should be a record of every penny you spend to calculate weekly. Only then can you observe what needs to be changed.

Read more: How Can I Take Control of My Finances? 6 Easy Steps to Follow

7. Adopt the ‘What I Need’ Lifestyle

There’s a thin line between needs and wants. If a thing is necessary to survive, it becomes a need. But, if you desire to have something for your satisfaction or pleasure, it’s categorized as want. So, adopting a what I need lifestyle is a crucial way to walk on the ‘save more, spend less’ journey. 

The tip is to create two columns of wants and needs. Then, every time you feel like buying something, try to place it in the two columns. And, surely, you’ll have your answer through this practice whether you need to spend your hard-earned money on it or not. 

8. Cut Down on Your Extra Bills

What makes the most of your monthly income? Rent, phone and mobile bills, energy bills, food and groceries, cable, internet, and insurance. These all seem like must-haves, right? Now, think again. Cut down on any bill that you can. If you have cable and internet connection, choose to keep a more useful one. Avoid eating out daily and buy stuff in bulk or on sale. Keep the leftovers in the fridge to reuse the next day. Store the takeout sauces to utilize as salad dressings or sandwich-making.

Look for a mobile service that offers discounts and monthly offers. Pay bills on time to keep your credit card stable and debt-free. If housing takes half of your income, consider finding a better and affordable place. 

9. Overspending Is Never a Good Option

You went out to buy groceries but ended up getting more than you thought. So there goes your weekly budget and your monthly savings. Experian explains making your finance sustainable is the key to avoiding overspending on budget.

It doesn’t mean to take the fun out of your life. But, to always have an emergency fund ready in case of job changes, overspending, or any household broken situations. Like when you go out for dining, order the food that’s not over-expensive. Don’t forget to bring the leftovers; it can be your breakfast or lunch for the next day.

10. Pay Off Debt; Remove Saving Obstacles

The biggest hurdle in the way of saving more is your debt. For instance, if you have a credit debt of 16%, consolidating it to 0% can help you quite a lot. Look for the lowest interest rates, and choose a company that offers the best services in such situations. If possible, negotiate your situation with them to get the best deal.

Try to balance your credit score by keeping the debt value zero. Then, if you pay your bills on time, you can be a good customer eligible for loans and other benefits. Or, you can opt to take a personal loan of a minimum interest rate to pay off your debt and start anew. Andrew Beattie of Investopedia explains 8 ways how you can successfully balance your credit debt.

Final Thoughts

Hard times call for hard-to-make decisions. However, you don’t have to feel depressed or sad about them. On the best note, you can take this opportunity to transform your wealth management from a vague path to a steady road. And, for the best part, you can adapt the habit of credit management and pro-saving during your learning journey.

Moreover, it can help you save enough if you, unfortunately, have to live in stressful conditions in the future. But, don’t worry, we have mentioned everything above you need to know to save more and spend less.

This article originally appeared on Credit.com.

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http://blog.credit.com/?p=197381 https://www.credit.com/blog/how-to-compete-with-cash-real-estate-offers/ <![CDATA[How to Compete with Cash Real Estate Offers]]> Thu, 10 Feb 2022 05:01:00 +0000 The views and opinions expressed in this article are those of the author only and are not endorsed by Credit.com.

This article originally appeared on SparkRental and has been republished here with permission.

Beaten by a cash offer on your last real estate offer to purchase? You’re not alone. The percentage of cash offers in real estate markets across the country have surged to 25% per the National Association of Realtors, up from just 15% a year ago.

Still, you don’t need to make a cash real estate offer to win a purchase contract. As in all negotiations, the secret is simply that not all sellers are motivated by the same thing. Here’s how to level the playing field and beat out all-cash offers in real estate investing.

Related Read: The Basics of Investing in Real Estate

Appeal to Each Seller’s Motivation

Savvy buyers know that each seller has unique needs, unique motivations. The trick is to identify what motivates each seller before you make a real estate offer.

You can ask directly of course, or have your Realtor ask the listing agent. Maybe they will come out and tell you in hopes of getting the deal done. But since most sellers are motivated by one or more of the same few factors, often it’s easier to indirectly inquire about those factors.

Not all sellers are created equal. By understanding what the seller wants more than anything, you can tailor your real estate offer to purchase so that it speaks to their personal needs.

Below are the most common seller motivators and how to work within them to appeal and persuade the seller to take your offer, rather than an all-cash buyer.

Motivator: Speed

Some sellers want their property sold yesterday.

They might not come right out and say it to avoid looking desperate, but some sellers need to move quickly. It’s a source of anxiety for them. Perhaps a new job awaits them, and they must close quickly to relocate and buy a new home to avoid moving the family twice. Or, maybe they need the money quickly for another investment opportunity.

Or, most motivating of all, they’re in financial distress and need money now. Whether they’re in foreclosure, in tax sale, getting a divorce, or have some other lien hanging over them, some sellers will take the fastest closing they can get–even if it means a lower sales price.

You can find distressed sellers through services like Propstream or Foreclosure.com.

Purchase Offer Tactics:

  • Make your money easy to access. No one is disputing you have the funds. However, it’s naive to assume you can move large amounts of money around instantly, especially if it’s currently invested in stocks or other non-liquid assets. Designate or create an account for your down payment and other funds to expedite this part of the process.
  • Engage your lender before you start. Start all the financing processes before you start the search. Get pre-approved by your investment property lender, to reassure the seller that you can and will settle quickly and certainly.
  • Expedite the appraisal process. Talk with your lender, pre-schedule the appraisal if you can, or maybe you can avoid this altogether with a large enough down payment.
  • Limit inspections work. Leaky faucets, new light bulbs, a crack in the wall–all of these things can be easily fixed once you take possession. Ensure the property is structurally sound, but don’t waste time and patience sweating the small stuff.
  • Don’t be afraid to negotiate. It starts with simply opening a back-and-forth dialogue with sellers. Once you start a real estate negotiation, you can better feel out exactly what it is the seller wants.

Related Read: Real Estate Stocks: What They Are and How To Invest In Them

Motivator: Credibility That You Can Settle

Sellers may want to go with a more relatable buyer, but the assurance of working with a corporate investor is hard to pass up. That goes doubly when they make a real estate cash offer.

You may be offering more money and expedited settlement, and still the seller remains hesitant. At that point, it may be time to employ other tactics to increase your credibility.

Real Estate Offer Tactics:

  • Partner with another investor. A mentor, a family friend, someone you met networking for real estate investing. Approach them and strike a deal that works for both of you and allows you to use their name or business for credibility.
  • Present yourself. Similar to sharing your financial situation, give the information a complete picture of who you are. Family, job, credit score, income, bank statements. Share anything about you that will help make your case.

Motivator: Flexibility

Find out everything you can about the seller’s situation. They could want to sell the home but live in it for a while longer. They could be renting out the home and want to sell it, but allow their tenants to renew their lease agreement and stay.

Whatever the motivator is, identifying it and working with them can make all the difference.

Offer Tactics:

  • Let the seller choose the closing date. While it may be more of a gesture, it indicates to the seller you’re amenable to their needs.
  • Tell them you’re open to arrangements for possession date. Communicate either directly or through your Realtors that you’re flexible on possession, and they can stay and rent the property as long as they like.
  • Offer to accommodate their renters, if that remains a sticking point.

Motivator: Personal Politics

Some people simply abhor the idea of selling to someone who is going to modify or use their home differently than they did. In some cases, they would even pass on increased selling price to do so. In short, sellers don’t always make their decisions rationally. It often comes down to a sense of personal connection and continuity.

Real Estate Offer Tactics:

  • Write them a letter. Often called a “love letter,” these letters explain your situation and appeal to the seller on a human level that is absent when dealing with corporate investors.
  • Ask to meet face to face. Sometimes cutting out all the middlemen, paperwork, and negotiating and grabbing a coffee can help you present yourself to the seller and make your case. Don’t do this without notifying your real estate agent, if you’re working with one.

Motivator: Money

Money is always a motivator in some form or another. Many buyers have seen their neighbors’ homes sell for big bucks, and they start seeing dollar signs. If money is a primary motivator for your seller, be prepared to offer more than a cash buyer to level the playing field.

Purchase Offer Appeal Strategies:

  • Share your financial situation; credit score, cash reserves, debt to equity, and employment status.
  • Put down at least 20%. Increasing your down payment increases the probability that your financing will get approved smoothly. Many things can go awry, such as appraisals coming in lower than expected, but this helps mitigate that risk.

Don’t be greedy with earnest money. Always be prepared to give what the seller is asking. Better yet, double the earnest money deposit – just make sure you include real estate offer contingencies to get it back should the deal collapse due to financing or an unforeseen major property issue.

Getting Creative with Your Offers

If these tactics don’t work, what else can you try?

Think outside the box. If you have tried these methods and they haven’t worked, it could be time to switch things up. Maybe you have come close, maybe you haven’t, or maybe it doesn’t feel like you have made any progress. Real estate investing is a competitive field, and a numbers game requiring many offers before one goes through successfully.

To close the deal, it might be time to starting thinking outside of the box and consider the following:

Find Off-Market Properties

One way to decrease competition is to find opportunities on your own. This is a tried and true method of established real estate investors. Consider these to get you going:

  • Networking: Real estate meet-ups, common connections, chat boards, and LinkedIn. Getting out and talking to people about finding good opportunities can only increase your odds.
  • Direct Mail: An old school method. Finding areas or homes and writing letters to the owners appealing to them or asking if they’re interested in selling can create interest. But this works particularly well when you identify high-equity homes with urgent sellers,
  • Spread the Word: Start telling people you’re looking for off-market real estate deals. The more people you tell, the better your odds are of finding something off-market.

Avoid Investor-Soaked Markets

Wealthy, coastal cities tend to have a higher density of real estate investors than rural and smaller markets. Go where the competition isn’t.

  • Do Your Research: Create your own metrics. Look to places where opportunities might exist soon. Visit these locations, talk to residents, and get a feel for the area(s). Try these best cities for real estate investing by cap rates for some fresh ideas.
  • Identify Investor Areas: Investors tend to focus on neighborhoods and markets with high cap rates. Being active in a market, looking up data, and talking to real estate agents can confirm your suspicions about where investors are starting to look for deals.
  • Consider Buying Long-Distance: Your home market may be saturated by investors and offer poor returns, but you can always invest elsewhere. One option for buying long-distance is Roofstock, where you can browse turnkey properties and view detailed neighborhood analytics and property details from appreciation history to forecasts to home inspection reports. They even offer a 30-day money back guarantee!

Be Persistent & Disciplined

It may take dozens or even hundreds of offers before one settles!

  • Avoid Emotions: Whether you’re planning to live in the house, flip it, or rent it, it’s difficult not to get worked up, discouraged, or in a position to make a poor decision.
  • Play the Numbers Game: Cash buyers don’t always get their offers accepted, and being a financed buyer doesn’t mean your offer won’t get accepted. Play the game enough times and create enough opportunities for yourself until you close.
  • Don’t Give Up: Easier said than done, we know… But the truth is there are many stories of aspiring real estate investors who gave up too soon. Follow the strategies and don’t let yourself be one of them.

Final Word

Sure, cash real estate offers are compelling. But that doesn’t mean you can’t compete with them and win, when you’re financing your purchase.

Learn as much information as you can about each seller, and what motivates them. Every seller is different, and while one may want nothing more than an immediate sale, another may prefer the flexibility of renting the property after selling, as they await their new home purchase.

Most of all, remember it’s a numbers game. Keep making offers, keep negotiating, and eventually, one of your deals will go through. Your success is inevitable–if you remain patient and disciplined.

This article originally appeared on Credit.com.

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http://blog.credit.com/?p=197366 https://www.credit.com/blog/ways-to-manage-expectations-investor/ <![CDATA[3 Ways to Manage Expectations When Starting Out as an Investor]]> Tue, 8 Feb 2022 15:54:30 +0000 In the wake of the Covid-19 pandemic, we’ve seen a seismic shift towards retail investing occur around the world. The arrival of lockdowns and government stimulus packages provided investors with an unprecedented combination of time and financial windfall to explore the markets and to buy into the stocks and shares that would begin their investment journey. 

However, the months that followed showed that this new influx of retail investors continually traded shares across different markets with increasing frequency. 

(Image: Financial Times)

As Financial Times data shows, retail investor interest fluctuated wildly across 2020 and 2021, with the dominant presence of ETFs giving way to travel, growth, ESG, and meme stocks at various stages. 

Not only does this show that retail investors can be unfocused in their investment decisions, but the rise in popularity of WallStreetBets favorites like the meme stocks GameStop and AMC, shows that investors are increasingly eager to turn a quick profit. 

According to a Natixis report published in June 2021, an expectation gap has emerged between investors and the returns that they hope to achieve on their portfolios. The survey of 8,550 retail investors found that those with more than $100,000 in investable assets largely believed that they could continue to draw on the success of 2020’s stock market rally and post annual returns of 13% above inflation by the end of the year. 

In reality, the final quarter of 2021 was a difficult time for global stock markets as record-breaking inflation and fears regarding new Covid-19 variants led to large-scale sell-offs of growth stocks and meme favorites alike. 

With this in mind, expectation management is essential for anybody looking to enter into the world of investment. Let’s explore three ways that you can manage your expectations when starting out as an investor: 

1. Set Clear Goals

First and foremost, new investors must have an idea of why they’re investing in the first place. If you don’t know what your goals are, how are you going to plan the construction of a portfolio to achieve them? 

Although 2021 was certainly the year of the meme stock, it’s worth asking whether buying into sentiment-driven stocks for short-term results is consistent with the things that you hope to accomplish. Building wealth in a measured way with more limited levels of risk means taking a longer-term approach. If, say, you’re looking to save money for a mortgage, this is generally more effective than a more risky approach. 

However, if your financial goals are to generate more money for a pension that you can access long into the future, it may be worth taking on more risk and balancing it out with growth stocks. This means that you can attempt to build a nest egg whilst buying into more tried and tested risk averse stocks. 

Fundamentally, setting yourself goals can help you to better understand where to look and what stocks to invest in as a means of generating the wealth that you want. 

Related Read: Stock Trading: How to Get Started and Make More Money

2. Create a Plan 

You’ll also need to figure out a way to manage the building of your investment. By gaining an understanding of how much money you’ll be investing each month, you can better forecast your financial growth. 

Many open banking platforms can offer insights into how you can expect your portfolio to grow over the short, mid, and long-term. It all revolves around you sparing only the money you can afford to keep your investments working. 

“First, set aside enough money in the form of cash and for investments, emergencies and immediate tasks,” explains Maxim Manturov, head of investment research at Freedom Finance Europe. “Then, you can use the following rule of thumb: subtract your age from 100 and put the remaining percentage in stocks and the rest in bonds. In other words, if you’re 20 years old, put 80% of your assets in stocks and 20% in bonds.”

These plans can help you to invest at a consistent pace that doesn’t negatively impact your daily life. Although every investor is different, plans like the 50/30/20 rule can help to manage your outgoings in an easy-to-follow way. The rule is that 50% of your monthly salary goes on essential expenditure, 30% is reserved for non-essential purchases, whilst the remaining 20% goes on the paying of debt or investments. 

Related Read: First Investments for Beginners and Everyone Else

3. Adopt a Bigger Picture Outlook

If you’re new to the world of investing, one of the first and most important things to understand when learning to manage expectations is that stocks can go down as well as up. 

When you make an investment, it’s essential that you avoid selling dips and buying peaks. If you’ve conducted your research and bought a stock that you believe will perform well over time, don’t sell it if you wake up to find it down 5%. While it’s important to know when to sell an underperforming investment, it’s generally a bad idea to rotate your wealth between stocks too frequently. 

Be sure to adopt a bigger picture outlook that’s consistent with your financial goals. If you’ve bought a stock that you believe will come to fruition over the next five years, don’t panic if it underperforms for a quarter as long as its fundamentals remain the same. 

Although the world of investing can seem like a daunting place, it’s the best ecosystem for allowing users to build their wealth–provided that they enter the space with the right goals and expectations for what they can achieve. 

This article originally appeared on Credit.com.

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http://blog.credit.com/?p=197347 https://www.credit.com/blog/how-to-lower-your-car-insurance-in-2022/ <![CDATA[How to Lower Your Car Insurance in 2022]]> Fri, 4 Feb 2022 05:06:00 +0000 At the start of every new year, people set goals. Many of the most common resolutions set during the new year are financial in nature. For instance, some people resolve to pay off their debt before the year ends. Others want to decrease their spending and save money. 

If you’re one of those people who want to save money, decreasing your car insurance premium is one way to get closer to your financial goals. Here are seven hacks to help you save on car insurance this year.

1. Review Your Car Insurance Every Year

One of the simplest ways to reduce your insurance premiums is to shop around once a year. It may seem unnecessary, but comparing rates from a variety of insurance companies can be beneficial. Firstly, it gives you a sense of how much your car costs to insure on average. Secondly, doing your research lets you determine if you have the best car insurance for your budget. 

Remember to compare quotes from at least three providers before making a decision. But what if your current insurer is the cheapest option?

2. Get Rid of Coverage You Don’t Need 

Another way to decrease your car insurance costs is by dropping unnecessary coverage. In most states, drivers are legally required to have liability coverage and personal injury protection, or no-fault coverage. In states like New York and North Carolina, drivers must also have insurance that protects them against collisions with uninsured or underinsured motorists. Beyond that, rates vary by state and personal preference.

Types of Car Insurance to Consider

  • Liability Coverage: This coverage protects you against the costs of covering the medical bills of other drivers after an accident. Liability insurance may also reimburse you for damage to your car. If you don’t have a significant savings cushion or other assets to cover the cost of large claims, liability insurance will protect you financially in the event of an accident.
  • Collision Coverage: If you’re financing your vehicle, chances are the bank will require this coverage as well. Collision insurance will pay for damage to your car resulting from a collision with another vehicle. It does not cover car damage from potholes, broken windows, fire, or theft.
  • Comprehensive Coverage: This is like collision insurance, but it covers damage from non-collision incidents. The most common kinds of incidents are floods, vandalism, hitting an animal, or striking a non-moving object.
  • No-Fault Coverage: This type of insurance protects you against the medical bills of other drivers after an accident. Unlike liability insurance, your own insurer pays your claim; it then submits a claim to the other driver’s insurer. If you have this coverage, maintaining a high deductible can be beneficial because it reduces your premium.

As you review your vehicle insurance, make a list of your state-mandated coverage, bank-mandated coverage, and ones that make sense for your location. For instance, if you live in a town that is known for seasonal hurricanes, floods, or fires, dropping comprehensive insurance might not be the best idea. Consider working with an agent who is familiar with your area.

If your car is older, consider dropping collision and comprehensive insurance. Then, set aside an emergency fund that amounts to your car’s market value.

3. Ask Your Insurance Company about New Discounts

Your insurer may provide discounts for a variety of reasons. For instance, some insurers offer a “good student” discount for teens with good grades. Others may give discounts to drivers who are members of the military or attend certain types of college. If you are enrolled in an accredited driver’s safety course, contact your insurer about getting a discount for completing the class.

Save on Car Insurance by Paying Your Premium Annually

Payment methods can also affect your car insurance premiums. Most insurers offer a discount if you pay a year’s worth of premiums upfront. If you can’t afford an entire year’s worth of premiums at once, pay at least the minimum amount necessary to qualify for this discount.

4. Downsize Your Car

The most effective way to save money on car insurance is by driving a car that costs less to insure. The type of car you choose will depend on your budget and preference, but there are a few things to consider.

For instance, the cost of repairs and parts for some vehicles can be high. Secondly, there are insurance companies that offer discounts to drivers with hybrid cars or vehicles that use alternative fuel.

When you’re looking for a new vehicle, find a safe one with the lowest possible insurance rates. Talk with your insurer, and get online quotes from other car insurance providers to compare costs.

Related Read: What Credit Score Do I Need to Buy a Car?

5. Drive Safely to Save on Car Insurance

Driving safely is often underrated. If you’re a cautious driver, you might qualify for a reduced premium. When calculating your rate, insurance companies consider the following factors:

  • Age
  • Gender
  • The type of car
  • Your driving history

Improving your driving habits could save you money each month. Plus, it’s safer for everyone on the road. If your current vehicle doesn’t have an accident history, you might also want to consider increasing your deductible, which can save you money.

6. Increase Your Car Insurance Deductible

If you drive safely, you could lower your monthly premium by raising your deductible. Increasing your deductible from $200 to $500, for example, will decrease your monthly premium. And since you know how much your deductible is ahead of time, you can set aside the amount in an emergency fund.

7. Consider Usage-Based Programs

Another way to save on car insurance is by participating in usage-based programs. With this type of coverage, you put a device in your car that records your mileage and driving habits. This data is then sent to your insurer, who can use it to determine how much you should be paying for coverage. Among the common usage-based options are:

  • Pay-as-you-drive: This program charges you for the miles you drive. Your insurer will typically take mileage into account when calculating your premium.
  • Pay-how-you-drive: With this program, you pay for your insurance based on safe driving behavior. In some cases, your insurer might offer discounts if you’re an ideal driver.

Takeaway: Saving Money on Car Insurance

There are plenty of tactics to help decrease your monthly insurance costs if you take the time to assess your habits and your vehicle insurance needs. Once you know what must stay and what needs to go, contact your insurance company to make the necessary adjustments.

This article originally appeared on Credit.com.

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http://blog.credit.com/?p=197336 https://www.credit.com/blog/10-pros-and-cons-of-mortgages/ <![CDATA[10 Pros and Cons of Mortgages]]> Fri, 28 Jan 2022 17:16:14 +0000 This article originally appeared on The Financially Independent Millennial and was republished here with permission.

If you’ve been paying attention to the housing market recently, you will have noticed it’s on fire. From Seattle, WA, to St. Petersburg, FL, there isn’t a market that hasn’t been affected by the low mortgage rates and high millennial demand for housing. The market hasn’t seen this much activity ever (even more so than the housing financial crisis of 2008).

Given the recent interest in home buying, we thought it would be prudent to discuss exactly how Americans can afford such large homes. And, why now?  After all these years, why are mortgages and refinances becoming popular all of a sudden? Let’s first discuss the basics of a mortgage and what its advantages are. They’re equally complex and beneficial, so it’s important to ensure we cover all the bases.

What Is a Mortgage Loan?

Simply put, your home secures the mortgage loan. It might be a house, a store, or even a piece of non-agricultural land. Banks and non-banking financial institutions both offer mortgage loans.

The lender gives the borrower cash, and charges them interest on it. Borrowers then pay back the loan in monthly installments that are convenient for them. Your property acts as security against the mortgage. And, your lender retains a charge until the borrower pays the loan in full. As a result, the lender will have a legal claim to the property for the duration of the loan. If the buyer fails to pay the debt, the lender has the power to seize the property and sell it at auction.

What Are the Different Types of Mortgage Loans? 

No matter what anyone tells you, always remember: A mortgage is a debt. Debt is a very polarizing topic to discuss with friends because many of us were raised on the premise that debt is bad. The truth is, some debt is bad, some debt is okay, and some debt is good. Many today would argue that mortgage debt is good since the rate is so low and it affords you a bigger home. 

Some people believe that debt should be prevented at all costs. Others view it as a means of improving one’s quality of life or as a means of increasing fortune. What’s awful about debt, factually, is reckless credit usage.

Here’s a rundown of the many types of mortgage programs, along with their benefits and drawbacks, to help you determine which is best for you.

A mortgage with a fixed rate

The interest rate is fixed for the duration of the loan. These loans provide a consistent monthly payment and a low-interest rate. Borrowers who wish to pay off their mortgage quicker can typically make extra payments toward the principal, as prepayment penalties are uncommon.

Pro: It’s predictable because the monthly payment is fixed.

Con: Taking out a fixed-rate loan while the interest rates are high means you’re stuck with it for the duration of the loan. The only way out is to refinance at a lower rate.

A mortgage with an adjustable rate (ARM)

After a fixed-rate cycle of months to years, the interest rate on an adjustable-rate mortgage (ARM) varies. Lenders sometimes publish ARMs with a pair of numbers, such as 7/1 or 5/1. Usually, a 5/1 ARM has a fixed rate for five years and then adjusts every year, rounding off if that option exists.

Pro: An ARM’s opening interest rate is often lower than that of a standard fixed-rate loan, so it’s easy to get lured in by the teaser rate. But, it might wind up costing more in interest over the term of your mortgage than a fixed-rate loan. An ARM may be the ideal option for someone who plans to market their home before the rate changes.

Con: Future rate hikes might be significant, leaving many adjustable-rate mortgage borrowers with significantly elevated monthly payments than if they chose a fixed-rate mortgage.

Refinance loan or second mortgage

Sometimes, a homeowner already has a mortgage but wants to change the terms. Maybe they want a lower rate or a longer term. Or maybe, they want to take out more equity from their home. Whatever the case, many options are available! The most common would be refinancing the home mortgage. With mortgage refinance, the homeowner closes out their original mortgage, and obtains another one – ideally with more favorable terms. 

With interest rates so low these past couple of years, refinancing has become much more popular. How often a homeowner refinances is usually a personal decision, but they should consider at least these factors:

  • market interest rate vs their current mortgage interest rate
  • length/term of their loan vs the new one they want to get
  • cost of the loan (“closing costs”) vs keeping still
  • [cash-out refinance only] what to do with the funds

Pros: If you can secure a lower interest rate than your current loan, and the closing costs aren’t significant, then it could definitely be worth refinancing. On the other hand, if you need the money for home renovations, a cash-out refinance may be your best bet.

Cons: Refinancing costs money, so make sure the math works in your favor. 

Conventional loan

The standards for conventional loans are generally more stringent than those for government-backed house loans. When reviewing traditional loan applications, lenders usually look at credit history and debt-to-income ratios.

Pro: A conventional mortgage may be used for a range of property kinds, and PMI would help borrowers qualify for a conventional loan even if they have less than 20% for the down payment.

Con: Compared to government loans, conventional loans have tougher qualification standards and may demand a larger down payment.

Interest-only mortgage

The average age of home purchases has decreased, and an increasing number of millennials are now purchasing their first houses. Typically, the loan duration is determined by the debt-to-income (DTI) ratio and the sum of interest negotiated on the mortgage. For homebuyers, a longer contract means a lower payment, but a longer time to pay off that debt.

Some lenders may offer an interest-only mortgage, meaning the borrower’s monthly fees will cover only the interest. As a result, it’s best to have a strategy in place to ensure that you can have enough money to return the entire sum borrowed at the end of the period.

Interest-only loans may be appealing since your monthly payments are low. But, unless you have a strong strategy to reimburse the capital, at some point, a fixed loan could be the better option.

Pro: Interest-only mortgages allow the borrower to place their capital elsewhere, such as in dividend stocks, a rental property, or other investments. 

Con: Borrowers who aren’t careful with their budget may find themselves never being able to pay off the loan.

Read more: 15 Ways to Generate Passive Income from Real Estate

FHA loan

FHA loans and VA loans are mortgage loans insured by the government and available for potential homebuyers. FHA loans are available to lower-income borrowers and typically require a very low down payment. Also, borrowers get competitive interest rates and loan costs. 

The government does not directly grant Federal Housing Administration (FHA) loans. FHA loans can be issued by participating lenders, and the FHA guarantees the loans. FHA mortgages might be a viable option for those who have a high debt-to-income ratio or a bad credit score.

Pro: FHA loans need a smaller down payment and credit score requirements are lower than conventional loans. Moreover, FHA loans may enable applicants to use a non-resident co-signer to assist them to be qualified.

Con: Unless a borrower puts down 10%, the monthly mortgage insurance will remain a part of the payment for the loan’s life. If a borrower ever wants to remove the monthly mortgage insurance, they must qualify and refinance into a conventional loan.

Read more: How to Improve Your Credit Score

FHA 203(k) loan

An FHA 203(k) loan is a government-insured mortgage allowing funding borrowers with one loan for both home renovation and house purchase. Current homeowners may also be eligible for an FHA 203(k) loan to help pay for the repairs of their current house.

Pro: An FHA 203(k) loan can be utilized to purchase and renovate a home that would otherwise be ineligible for a traditional FHA loan. It just takes a 3.5% down payment.

Con: You must be eligible for the full property value, as well as the price of anticipated improvements, with these loans. The rate may be greater than on a normal FHA loan. You’ll also have to pay both a one-time, and monthly mortgage premium insurance payments.

VA (Veterans Affairs) loan

Home loans for veterans, reservists, and military or National Guard members, as well as qualified surviving married partners, are backed by the US Department of Veteran Affairs. 

In fact, nearly 90% of all VA-backed home loans are made without a down payment.

Pro: You won’t have to put any money down, or deal with PMI payments every month.

Con: On purchase loans, a one-time VA “funding charge” varies from 1.4% to 3.6%.

Fannie Mae homestyle loan

The Fannie Mae homestyle mortgage needs just 3%–5% down, but a credit score of 620 is an option for fixer-uppers.

Pro: You don’t have to pay for mortgage insurance beforehand, and you can terminate it after twelve years or when you have 20% equity on your house. The rate is frequently cheaper than an FHA 203(k) loan.

Con: Credit score requirements must be met.

Reverse mortgage loan

Homeowners aged 62 and above can use a reverse mortgage to convert some of their property value into cash. The age of the youngest homeowner, the loan rate and fees, the heir’s wishes, and payout type are all aspects for the lender to consider.

Pro: There are no monthly payments required, and the homeowner can select between a one-time balloon payout, a monthly payout, a line of credit, or a combination of the three.

Con: The interest rate may be greater than that of a typical mortgage. Mortgage insurance, a direct charge, an initiation fee, and third-party expenses are usually paid by the homeowner.

Final Thoughts

Mortgage loans are given to those who have enough income and assets vs. their debt. Mortgages also aid in the development of credit. They enable homeowners to invest in a home, with the advantage of having a forced-savings component. However, like with any loan, borrowers should be responsible when taking out a mortgage. It’s easy to get carried away and buy more than is necessary (and become house-poor).

This article originally appeared on Credit.com.

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http://blog.credit.com/?p=197302 https://www.credit.com/blog/18-steps-to-reach-financial-freedom/ <![CDATA[18 Steps to Reach Financial Freedom]]> Fri, 21 Jan 2022 05:01:00 +0000 This article originally appeared on The Financially Independent Millennial and was republished with permission.

Are you looking to become financially free in 2022? Who wouldn’t?  This article covers the steps you can take to reach financial freedom. Achieving financial freedom is many peoples’ goal. Everyone wants to live the American dream with enough savings, investments, and cash on hand to afford the lifestyle they want to have.

Unfortunately, achieving these goals isn’t a walk in the park, especially with increasing debt, financial emergencies, and other issues that are keeping people from achieving their financial freedom.

18 Steps to Reach Financial Freedom

Even though reaching financial freedom isn’t an easy endeavor, there’s a realistic approach that can help you manage your finances responsibly to achieve it.

Generally, all that’s needed to achieve financial freedom is to cultivate good financial habits. 

Read on to learn the good financial habits to practice daily to reach financial freedom.

  1. Set Specific Life Goals

Goal-setting is an important step to apply in all aspects of life. When it comes to achieving financial stability, there’s no room for being vague in what you want to achieve.

People looking to reach financial freedom must set specific monetary goals. When you set specific goals, you attract specific actions or solutions to achieve them. Therefore, keep your financial goals specific and measurable as well as realistic, timely, and achievable.

Determine how much money your bank account should hold at any given time, evaluate your lifestyle, and decide at what age you want to achieve financial freedom. 

  1. Determine Your Current Financial Standing 

No matter the stage of life you are in, whether you’re a student, planning to retire, or pursuing other interests in life, if you want to achieve financial freedom, start by determining where you stand financially.

One needs to do an honest assessment of their personal financial situation. This helps establish where they are and what they need to do to reach where they want to be in the next couple of years.

Put all your debts together, determine your expected income, and examine what’s eating your finances without your knowledge.

You could also seek help from a professional financial advisor as well. In fact, when working to reach financial freedom, it’s important to have a financial advisor.

  1. Live within Your Means

The path to financial freedom isn’t rosy. People looking to achieve financial freedom have to commit to living within their means. In this case, you need to prioritize building a strong financial foundation of savings before you start spending money on investments.

One thing that keeps people from achieving financial freedom is their beliefs about money. 

What’s your relationship with money? Do you believe that you and money can’t stay in the same house for a given period?

Instead of assuming financial stability isn’t for you, recognize that you can also move from living paycheck to paycheck to a financially stable lifestyle.

But to reach that point, you must ensure your current resources can cater to your current lifestyle and then minimize expenses.

When you start keeping your daily expenses lower than your income, you create room for saving for your future life.

  1. Know the Difference between Needs and Wants

Understand what you need and what you want. There is a very big difference; not everything you spend money on is essential. 

Note that needs and wants differ from one person to another. For instance, one’s needs might be another person’s wants. However, you must draw the line between the two if you’re working to reach financial freedom.

Understanding the difference between the two can help you prioritize your expenditure and avoid spending money on unnecessary things.

Pick up a pen and paper and write down your daily expenses. Tick off items you can’t live without and leave out those you don’t need.

  1. Have a Budget

Developing a budget is one of the top habits to reach financial freedom for financially stable people. They always have a daily, weekly, and monthly budget that helps them pay all their bills on time while keeping their savings on track.

Even though a budget can be restrictive, it’s a must-have tool for helping you to reach financial stability.

Knowing where your money comes from and where you spend it goes a long way to helping you avoid unnecessary expenditure.

Read more: Grocery Shopping On a Budget – Start Saving Now!

  1. Know How Much You Spend

Achieving financial freedom starts by understanding how much money you spend and for what purposes. Sometimes you spend money on unnecessary things. If you live paycheck to paycheck, saving your money for your future life can be difficult. 

Tracking your spending can help you determine exactly how much you can save at any given time.

Track your spending for one or two months to find out where your money goes. Remember to track both hidden and visible expenses to ensure you’re 100% clear on how you’re spending your money.

  1. Trim Your Budget

Once you have developed your budget and understand how much you spend per day, week, or month, trim it as much as you can. 

After going through your budget carefully, you will realize that there are many more things to leave out than you can imagine.

You’re probably asking yourself, “should I leave out my morning latte or remove my gym membership from my budget?”

Here, people need to check beyond the small things and examine the whole budget to make important lifestyle adjustments to alter their current financial state.

  1. Keep Track of Your Credit Score

Many people out there can’t access loans due to their bad credit scores.
Note that your credit score can determine whether you will get loans as well as the interest rate you will be offered.

Your credit score can also affect your car insurance, life insurance premiums, and more. In some regions, employers check candidates’ credit scores before making hiring decisions. Keep your credit score in check by settling your bills on time and minimizing debts.

  1. Use Debit Cards instead of Credit Cards

Credit cards = borrowed money.

Debit cards = earned money.

To put this into perspective, when you shop with a credit card, you use borrowed money (money that you’ll repay based on the terms and conditions of the credit company). On the other hand, when you buy items using a debit card, you spend money you’ve worked for (earned money).

In the first scenario, you’re increasing debt; thus, it’s recommended to use a debit card instead of a credit card when buying items.

  1. Learn How to Negotiate 

Many people are afraid to negotiate when buying goods or services, thinking that they may appear too cheap. This is perhaps one of the cultural beliefs among Americans that you have to overcome if you want to reach financial freedom.

Understandably, some businesses won’t be open for negotiation. However, small businesses tend to allow negotiation, especially with their repeat customers or when buying items in bulk.

This is how to buy goods or services at a discount.

  1. Learn to Invest Extra Money

Once you have developed a reasonable budget, don’t spend the extra money on unnecessary expenses. Invest it. Some people would just deposit the extra money into their bank accounts. An emergency fund is fine, but often, 3-6 months of needed expenses is enough. After that, consider investing your money in quality dividend stocks and start earning some serious returns.

  1. Passive Income with Real Estate

Passive income enables you to earn money while you sleep.

Real estate is a $10.5 plus trillion industry. Investors are earning billions in passive income through real estate. Granted, there are other passive income ideas out there, such as investing in dividend stocks. However, some folks find real estate easier to invest in.

You don’t have to be a professional to invest in real estate. You can also start small and expand your investment as you start earning money.

Read more: How To Invest In Dividend Stocks For Income

  1. Minimize Eating Out

While working to reach your financial freedom, it’s easier to forget that even your meals can keep you from achieving your goals. To avoid this, you should start packing lunch to avoid eating out every day, especially when working far from home.

  1. Pay Your Bills on Time

If possible, pay your bills before they’re due. While paying bills can seem like stretching your paycheck, not doing it is even worse. If you don’t pay your bills on time, you’ll be tempted to use the money on other things – however, it’s a little like kicking the can. The problem never goes away.

You can avoid this by paying your bills on time or before they’re due. This will give you more control over your finances and enable you to adopt good financial habits that can help you reach financial freedom.

Read more: What Bills Help Build Your Credit?

  1. Minimize Time Spent in Front of the TV

How much time do you dedicate to TV? You might be wondering how watching TV can keep you from achieving financial freedom, right?

Well TV is an advertising platform where people run all kinds of convincing ads that could tempt you to buy. In fact, watching TV could lead to impulse buying because the more you watch TV shows, the more you will see ads that will make you want to buy what’s being advertised.

Instead of watching TV, spend time reading books about money and investing.

  1. Keep Your Checkbook Balanced at All Times

Online banking has made many people forget about keeping their physical checkbooks balanced. This is because, with online banking, your balance is right at your fingertips. This makes it easy to underestimate your balance.

Balance your checkbook so you know how much cash you actually have and how much you regularly spend.

  1. Say No to Impulse Buying

Impulse buying is another reason that’s keeping people from attaining financial stability. It’s a bad financial habit that you must avoid at all costs by learning to say NO to yourself.

Think about it. You’ve gone out shopping, picked what you wanted, but before you head to the counter, you see some more items. Even though they aren’t necessary, you add them to your cart because they don’t cost that much.

This is impulse buying and thanks to online shopping, millions are guilty of it! The idea that items will be delivered to the doorstep of the customer makes people end up buying on impulse.

  1. Have a Retirement Savings Plan

If you don’t have a retirement savings plan, you’re going to struggle to reach financial freedom. The good news is that there are a couple of financial savings plans out there. You don’t necessarily need to have an employer to start a retirement savings plan.

Starting a retirement savings plan will enable you to contribute a little bit every month and before you know it, you’ll be surprised how much money you’ve accumulated to help you live a stress-free and peaceful life.

Read more: Are You Financially Ready for Retirement?

Final Thoughts

So there you have it: 18 habits you can practice to achieve financial freedom. Remember that any one of these steps alone won’t make your money problems go away. However, they will help to guide you to develop good habits that can position you on the path to financial freedom.

This article originally appeared on Credit.com.

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http://blog.credit.com/?p=197258 https://www.credit.com/blog/the-covid-19-federal-student-loan-freeze-was-extended-whats-next/ <![CDATA[The COVID-19 Federal Student Loan Freeze Was Extended—What's Next?]]> Fri, 7 Jan 2022 18:46:36 +0000 Christmas came early for millions of federal student loan borrowers courtesy of the federal government. While the federal student loan freeze was set to unfreeze on January 31, 2022, with payments restarting in February, President Biden pointed to the continuing “impacts of the pandemic” as the primary reason for keeping federal student loan payments, interest accrual, and collections on defaulted loans on pause.

So, for now, federal student loan borrowers may have 99 problems, but repayment isn’t one of them–at least until May 1

Student loans are stressful and expensive, but do you know what’s more stressful and potentially more expensive? Not preparing to pay them back. Eventually, it’s going to happen, and it’s never too early to start planning. 

You’ve got two choices: prepare or perspire come May. Follow these tips to help create an affordable student loan repayment plan. 

Assess Your Financial Situation 

Can you afford to make payments on your student loan(s) now? Take an honest look at your financial situation, including your monthly income and expenses. If you can make payments during this pause, set an amount you can comfortably contribute toward your loan balance each month. 

One of the best ways to pay off student loan debt fast is by paying more than the minimum. If you’ve got extra money to spend, consider making payments now to take advantage of the 0% interest. These payments will shrink your balance before any interest gets added in May. If you decide to continue making extra payments after the freeze ends, make sure that each payment is applied toward the principal balance, not next month’s payment. 

Besides saving money (and earning some interest on your savings), setting aside your regular student loan amount each month will help get you back into the habit of making payments. This strategy will also signal whether you can afford your payments regularly or if you may need to cut expenses in your budget. 

If you struggle to make those “practice payments,” it may be a sign that you need to consider arranging a new payment plan. To avoid financial stress, explore alternative payment options, like income-driven repayment (IDR) plans. These affordable repayment plans often cap your monthly payment at a percentage of your income, reducing your monthly payments and extending repayment terms. If you earn below a set income limit or you’re not working, your payment could be as low as zero. Just keep in mind that extending your repayment timeline means paying more in interest because you’ve extended the life of the loan. 

To learn more about additional student loan repayment strategies, as well as how they could help you, look into a student loan payment simulator.  

Consider Refinancing 

Federal student loans come with many advantages, but refinancing them may be just the thing that boosts your budget. With interest rates at record lows, you could lock in a lower rate and benefit from long-term savings. For example, let’s say you owe $30,000 on a 10-year repayment plan with a 10% interest rate. Refinancing to 3% interest would save you around $13,000.

While refinancing with a private lender can provide much-needed financial relief for many borrowers, you would lose the benefits that come with federal student loans, like income-driven repayment plans, potential student loan forgiveness, or future payment pauses. 

Contact Your Provider  

Besides financially preparing to restart your payments, you should mentally prepare to get back into the routine of paying your student loans on time and in full. If you haven’t made payments since March 2020, make some time to reacquaint yourself with the process. 

Before the clock strikes 12 on April 30, 2022, log into the online account you used to pay your bill before the pandemic. If you don’t have an account, now would be a great time to create one! Make knowing your loan’s terms, including the interest rate, your expected monthly payment amount(s), and any due dates, a priority. 

While federal student loan relief doesn’t end until May 1, your new payment date could start any time following that. Knowing how much you owe and when your first payment is due will make it easier to plan–so you won’t want to skip this step. 

If you were enrolled in a direct debit plan, re-enter your banking information with your servicer and confirm your automatic payments. Surprise: your student loan payments won’t restart on their own. If you miss the first payment, don’t panic. Contact your loan provider as soon as possible to make repayment arrangements. Try not to make missed payments a habit. Several missed payments, or payments over 90 days late, will negatively impact your credit score

To ensure you don’t overlook any upcoming information or payment reminders, update your contact information with your loan servicer. Stay on high alert for scammers. If you receive a call or letter from an unverified source about loan forgiveness, don’t provide any identifying information. 

Let’s face it, most of us (if not all of us) won’t be overly excited about adding student loan payments back into our budgets in about three months. But with the right preparations and a plan to make sure your payments are affordable, you’ll be in a better position to seamlessly integrate them into your financial life.

This article originally appeared on Credit.com.

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http://blog.credit.com/?p=197216 https://www.credit.com/blog/financial-tips-and-tricks-for-one-income-households/ <![CDATA[Financial Tips and Tricks for One-Income Households]]> Thu, 16 Dec 2021 05:01:00 +0000 Some households operate off one income by choice, while for others that is merely their circumstance. Regardless of how you found yourself in this position, a one-income household is not uncommon, and it’s certainly not unmanageable. Think about how you need that money to function and come up with a budget, and plan to execute it. 

Without a budget, even a multi-income household might become financially unstable. One of the best money secrets of single-income households is that they know it’s less about the money that is coming in and more about how it goes out. That matters in terms of financial health and savviness. Below are some tips to consider if you’re working with one income, and how to make it work for you. 

Have an Emergency Fund

This is not just a tip for a one-income situation, but it’s arguably more important, in this case. Without a second stream of income to fall back on, you should make it a top priority to create, and contribute to, an emergency fund. Even if you’re fortunate to be able to predict much of what happens in your life, you’ll never be able to predict everything. And knowing that you have some sort of financial safety net in place can eliminate undue stress when the unexpected comes along. 

In terms of size, the common rule of thumb is anywhere from three to six months’ worth of expenses. You must be sure that if the household earner loses that income, you don’t face things like home and car loss on top of it. A budget is the best tool to help you understand how much to save, and work out all these numbers, because you can see in black and white how much it costs you to afford the must-haves in your life. If income is lost, you can possibly cut out streaming services and/or dining out, but you can’t cut out your mortgage, for example. 

Re-Evaluate Your Debt

Debt gets a bad name. Many people hear the word debt and cringe or think to themselves that all debt is bad, but that’s certainly not true. There are certain things that can put someone into debt that are not just positive but can also improve financial standing over time. Some examples are startups, mortgages, and student loans. When you’re thinking of ways to make one income work for your household, go over your monthly, recurring debts, and do what you can to try and shrink those payments. 

Student loans are a great place to start. This is (typically) a significant amount of money, owed back to the lender over a long period of time, more than perhaps a car loan, but less than a mortgage. So, it’s a manageable place to shrink down your payments. Refinancing can change your relationship with student loans and create extra money each month that you can now allocate to other areas of need. Shop this option around, too, because these lenders are in competition with one another, and it’s in their best interests to give you the best terms and rates. A lower interest rate, even by just a small percentage, can make a significant change in the total amount you’ll repay.

Invest

Investing can be very intimidating, especially because it seems that there’s a totally different language to understand before you can understand the process. But not every form of investing is super intricate, and there are guides you can follow to get yourself started. Another myth that deserves to be debunked is that you need a ton of money to get started. You can often start this journey for less than a dollar, such as penny stocks, if you want to and still see results. 

A general rule of thumb that is especially true for one income households, is that investing should really only be done with ‘extra’ funds. That means don’t take dollars away from the money you need to pay your bills, to invest, because investing is not a sure thing. And sometimes, those funds cannot be recouped. However, when done responsibly, investing can help you earn money for your household that can elevate your financial standing in a semi-passive way.

Related Read: 7 Habits of Successful Savers & Investors

Be Honest about How You Spend Your Money

The adage, honesty is the best policy, is not commonplace for nothing. It applies in so many areas of life, and personal finance is certainly no exception. If you only have one income, and want to take control of your finances, the first step you need to take is getting honest about how you spend your money. This is not meant to shame you about where your money is going, in fact quite the opposite. 

If you love going to concerts, for example, don’t stop going, just because you’re working off of one income. Instead, be realistic about the entertainment category of your budget. So, when you do things, like attend concerts, the money is there, and you’re not either skipping because you think you cannot afford it, or busting your budget to find the funds.

Take Advantage of the Gig Economy

The Gig Economy is a somewhat new, innovative way to earn an income. For some people, they’re leaving traditional roles in favor of this lifestyle, while others are simply using its benefits in true side hustle fashion. For people that are operating their household off of one income, picking up a side hustle from time to time can help with financial obligations, one piece at a time. And don’t worry, if you think this means you’re going to have to take on, and consistently maintain, a second job, that’s far from the truth. 

A company like Uber Eats is a great happy medium, and some of these employees have reported crazy high profit margins of up to $1000/week in some cases. With a meal delivery service like this, you can work, when and where you want, and as frequently as you want. For some people in single-income situations, this is a great way to dedicate a specific amount of time each day, week, month, whatever they want, to this gig. Then, they allocate the earnings towards a specific goal like saving for a down payment, paying off a credit card, or taking a dream vacation. Best part is, there’s little to no commitment, if you do it once and hate it, then don’t do it anymore, but if you do it once and love it, you can keep it up for as long as you choose!

Related Read: How to Operate a More Financially Secure Side Hustle

Consider Life Insurance

When households operate off a single earner, it’s truly critical to be set up to still financially survive if that earner passes away. This is a topic that nobody likes to think about, and even less people like to talk about, but avoiding it is a huge risk. Getting life insurance is one of the best moves to make as a one-income household. It might feel unaffordable, but again, with proper budgeting, anything is possible. 

Life insurance protects your dependents in the event of your death, but it can also act as a type of savings account. Be sure that you shop around, ask questions, and communicate clearly about what purpose you need this policy to serve in your life. Each type of policy will have its own unique terms of use. 

This article originally appeared on Credit.com.

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http://blog.credit.com/?p=196800 https://www.credit.com/blog/10-steps-to-start-an-online-business/ <![CDATA[10 Steps to Start an Online Business]]> Sat, 18 Sep 2021 04:01:00 +0000 This article originally appeared on The Financially Independent Millennial and was republished with permission.

The views and opinions expressed in this article are those of the author only and are not endorsed by Credit.com.

Everyone can start an online business. No massive bank balance, college degree, or extensive work experience is necessary.

All that’s required is an excellent idea, the right systems, and the motivation to become financially independent. Now, since you’re currently searching for ways to start an online business, odds are you already have the drive and the idea part down (if not, that should be handled by the end of this piece).

What you’re interested in finding out is how to begin the building process of your online empire. In this article, we’ll discuss the exact steps needed to start an online business. So, you can ensure that the right systems are in place.

Step 1: Pick a Business Model

Step 2: Choose a Target Market

Step 3: Find a Problem to Solve

Step 4: Evaluate Your Idea 

Step 5: Competitor Analysis

Step 6: Carry out Market Research

Step 7: Cover the Legal Aspects

Step 8: Resell or Develop Your Service/Product or Promote a Skill

Step 9: Generate Sales

Step 10: Grow Your Business

 

Steps Required for Starting an Online Business

Step 1: Pick a Business Model

Before you launch an online business, it helps a great deal to know about the current tried-and-tested web business models. That said, there are six primary types of online business models that you can be a part of:

  • Affiliate Marketing: This is a business model that involves you promoting other people’s services and products online, and in exchange, you receive a commission for every sale. Ultimately, with the right traction, this can turn into a passive income business model. 
  • Freelancing: In the freelance business model, you simply need to provide a service to other businesses or individuals, using a skill that you possess such as programming, designing, writing, or advertising.
  • Consulting and coaching: If you’re up for this business model, it involves coaching and offering consultations based on your expertise, in exchange for payment. This business model usually works great if you already have an established name in your field or target market. But even if you don’t, you should have a rare skill that’s currently in demand. 
  • Information Products: With this, you can package and market your expertise in templates, online courses, ebooks, and worksheets. The trick behind this kind of business model is to ensure that the knowledge that you intend to sell isn’t easily accessible on the web or widely known.
  • Software-as-a-service: Roadblocks abound these days, and apps are created to solve everyday problems, whether in business or personal life. With this business model, you create an application or software that satisfies the needs of users in the target market, and charge them a recurring subscription fee in exchange for access to your software or application.
  • E-commerce: There are so many ways you can sell products online. You can go through the process of using e-commerce platforms to create an online store and sell your products from there. Or, you can simply resell already existing products on the web, without having to create a store. 

Related Read: Is E-commerce a Viable Business Avenue Post-COVID?

Step 2: Choose a Target Market 

Identifying or choosing a target market is a vital step. There’s just one winning strategy: carefully identify your target market and send a superior offering to the market.

Here’s a no-brainer trick–ensure that you’re a part of your target market.

If you’ve been fishing all your life you’ll know and understand the desires, language, and problems of other fishermen. The result–it’d be a lot easier to sell fishing products online.

Additionally, your marketing endeavors will be a lot more successful, as you would have a better grasp and understanding of the best mode of communication with other fishermen. 

But if you’ve never gone fishing in your entire life, there’ll be a lot of struggle to sell fishing products online.

Step 3: Find a Problem to Solve

When considering launching an online business, you must note one major thing: every business solves a problem. 

Hollywood movies eliminate boredom, fulfill curiosity and interest, as well as grant the desire to escape and relax. Plumbers fix broken pipes. Fashion brands help people feel good and express themselves. 

Here’s the rule of thumb: The larger the problem you fix and the better you fix it, the more cash consumers are willing to pay for your services or products. 

Take healthcare services, for instance. They solve a huge problem, which is the reason why almost everyone spends money on it. 

Alternatively, not a lot of people will be willing to pay you to fix their wobbling table. It’s not a massive problem, and most times, they won’t need help fixing it. 

The bottom line is that if you want to start a business online, you must find a worthy and sizable problem to solve. 

That said, how do you know what problem to solve? Easy. Join online forums and Facebook groups and find out what people need help with, or can’t do without. You can also use a tool like Google Keyword Planner to know what people are currently searching for. Alternatively, you can search for successful online businesses and identify the problems they offer solutions to. Then, find a better way to do it and offer that as a solution.

Step 4: Evaluate Your Idea 

Every business starts with an idea. If you already have one, you can hop over to the next step. If not, you’ve got to begin brainstorming.

Step 5: Competitor Analysis

Anyone who intends to start an online business must not sleep on analyzing the competition. Competitor analysis helps you to remain at the cutting edge of what consumers in your niche want, anticipate market shifts, and identify winning tactics. It also helps in defining your positioning, messaging, and total business strategy. 

As you take these measures, ensure that you record your findings with information on each approach. You must find relevant insights when needed.

By analyzing your competitors’ customer experience, as well as how they engage with their target audience via content, you can discover tactics that your competitors use to push sales.

A SWOT analysis is also worth considering, as it can help in accompanying the discoveries from your research. The SWOT analysis is a blueprint that looks into your competitors’ weaknesses and strengths to define areas that require improvement.

Step 6: Carry out Market Research

The goal of carrying out market research is to understand average consumer behavior and pain points, as well as relevant market trends in your niche.

This is a great way to determine how your online business will fit into the current industry landscape. 

One of the easiest ways to gain accurate insight is to interact with consumers directly. Make questionnaires, take surveys, and carry out one-on-one interviews.

Every business that you start has to be adequately aligned with the regulations and laws of your region. Read up on the online business legal requirements before starting a fresh web business. 

Here are a couple of legal bases that you need to cover:

A Structure of a Business

You may have to register as a sole proprietor or an LLC. Carry out the research and choose the one that’s best suited for your current and future needs. But it may help to get the advice from a tax specialist.

Permits and Licenses

Depending on the kind of business you intend to start, you may have to get a license to operate it. This differs based on where you reside, so reach out to your local state department to know more.

Tax Requirements

A lot of online business owners are required by law to pay income tax. Also, you may have sales tax obligations if you decide to offer products to people in particular countries. Before you begin your online business, make sure that you speak to an attorney to understand the applicable taxes and the Internet business documents that you must possess to file them.

Trademarks, Patents, and Copyrights

You’ll want to cover the above legal elements to limit or avoid trouble in the future. For instance, registering your trademark will stop all the businesses from using your company name, which saves you the cost and hassle of rebranding.

Step 8: Resell or Develop Your Service/Product or Promote a Skill

When it comes to online businesses, there are three ways you can bring your idea to life: promoting your skill, creating your product/service yourself, or simply reselling.

If you decide to go with the third option, all you need is to find a product or an e-product that’s relevant to your niche to resell. 

Next, find a marketplace to resell the product. To make the process easier, you can use a cross-listing app that allows you to post your product on numerous marketplaces such as eBay, Poshmark, Mercari, etc. all at once. And that would be all, you then need to jump to step 9. 

But if you decide to go with the second option, you need to hire extra hands. For instance, if you want to create an app, you need someone with technical experience to help you out. If you intend to mass-produce an item, you need a manufacturer.

Product quality and simplicity must be your top priority. Instead of developing the cheapest product, create something that captures your target audience’s attention. 

For service-based offers, your main focus should be on hiring people with the necessary educational and certification requirements. You can use online job portals like ProBlogger and Upwork as a start. 

If you simply want to offer your skill online, based on your market research, promote your skill in places online where they are needed.

For example, if you have copywriting skills, you’ll want to start promoting them through online job portals such as Freelancer or Upwork.

Step 9: Generate Sales 

To generate sales, you have to start by understanding your potential customers–their dislikes, likes, wants, and needs. After this, understand the art of requesting commitment without coming off as too pushy. 

Simply put, don’t coerce people to buy goods from you or they won’t come back. 

You have to prepare yourselves to hear “no” as well. 

People may listen to your pitch even though they have no intention of purchasing, simply because they’re nice. If they don’t end up buying from you, don’t feel bad.

At this point, your goal should be to grow a customer base online via social media promotion, Google ads, and SEO (search engine optimization). You must also identify the right sales funnel and methodology for your business to generate leads and successfully convert them into loyal customers.

Marketing and sales are the strength of a successful business, so ensure that you have an amazing strategy. 

Related Read: How to Support Small Businesses

Step 10: Grow Your Business

You need to have a growth plan if you want your online business to scale. Fortunately, there are so many ways to boost your company’s growth.

A great recommendation is the use of the power of social media through paid, influencer, and organic campaigns. Email Marketing also works great to foster and nurture a loyal customer base.

One of the primary aspects of sustainable, long-term growth is having a dedicated customer base and cutting down customer churn. Every effort you put into nurturing your current customers can be profitable in the long-run, when they become returning customers–which ensures revenue long-term. 

Conclusion 

That’s a wrap! We’ve covered all you need to know to start an online business. So, get started right away. Taking the first step can be intimidating, but take the plunge without fear and launch your business. 

This article originally appeared on Credit.com.

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http://blog.credit.com/?p=196773 https://www.credit.com/blog/10-practical-money-skills-to-master-before-retirement/ <![CDATA[10 Practical Money Skills to Master Before Retirement]]> Thu, 16 Sep 2021 04:01:00 +0000 This article originally appeared on The Financially Independent Millennial and was republished with permission.

Everyone wants to enjoy a comfortable retirement, but unfortunately, this goal feels out of reach for most people. Individuals approaching retirement can increase their chances of financial stability by working to master practical skills that will be essential once the working years are in the rearview mirror. 

According to a study from Transamerica Center for Retirement Studies, only 27% of US workers are highly confident they’ll be able to retire comfortably. So, it’s natural that now is the best time to prepare for the future. Here are 10 things everyone should know before they retire. People planning on retiring in the next 5-10 years should start mastering these essential money skills now to avoid any regrets when it’s time for retirement. 

  1. Defining Retirement
  2. Determining a Safe Withdrawal Rate
  3. Understanding Social Security Benefits
  4. Living on a Budget
  5. Investing for Income
  6. Preparing Yourself for Tax Season
  7. Debt Payoff
  8. Understanding the Difference between Liquid Net Worth and Net Worth
  9. Prioritizing Health
  10. Estate Planning

1. Defining Retirement

Retirement means different things to different people. A helpful first step in the process of preparing for retirement is to define one’s retirement. Here are a few details to consider:

  • Does retirement mean no work at all?
  • Can retirement involve a part-time job?
  • What type of lifestyle does the ideal retirement involve?
  • Is traveling important?
  • Are living expenses likely to increase or decrease during retirement?

It’s essential to answer these questions and define retirement before making the jump and leaving a career behind. For example, one person may prefer a quiet retirement that involves minimal expenses, while someone else may want to travel and enjoy a more costly lifestyle.

There’s no right or wrong approach, but it’s critical to have a clear picture in mind. For example, those who want to spend more money in retirement may need to be willing to work longer and save more or find a way to generate income in retirement to support their lifestyle.

2. Determining a Safe Withdrawal Rate 

Understanding the concept of a safe withdrawal rate is an essential step in retirement planning. Knowing how much money can be withdrawn each year from retirement savings will help people avoid financial hardship later.

The challenge with determining or calculating a safe withdrawal rate is the fact that there are many unknowns. For example, a standard recommendation is to withdraw no more than 4% of the current value of your investments each year. There’s plenty of math behind this recommendation, but those calculations often assume that a retiree’s financial situation will remain largely the same for years or even decades to come. 

To take a more cautious approach and provide some room for error, some professionals advise a 3% withdrawal rate instead of 4%. A 3-4% withdrawal rate serves as a guide or a starting point, but remember that it’s not a hard and fast rule.

Once the acceptable withdrawal rate is determined, work backward to determine the portfolio needed to support a comfortable retirement. For example, someone who expects to have living costs of $50,000 per year in retirement will require an investment portfolio of $1,250,000, based on a 4% withdrawal rate.

3. Understanding Social Security Benefits

Social Security benefits are a crucial source of income for most retirees, but there are important details to consider, like the best age to start receiving benefits. 

Under the current guidelines, individuals can begin receiving benefits at 62 years old. However, delaying benefits until the full retirement age of 70 will significantly increase the monthly benefit.

There’s no right or wrong approach since each person’s situation is different. However, it’s essential to understand how the benefits work to make the right decision. 

The Social Security Administration provides helpful guidance for those looking to make this challenging decision.

4. Living on a Budget

Most retirees live on a fixed income. Whether the primary source of income is social security, a pension, retirement accounts, or other investments, there’s usually a need to live on a budget.

Of course, living on a budget requires the ability to create a budget. Think of a budget as the first tool a financial architect would offer. To budget effectively, it’s critical to know how much money is coming in and how much is going out each month. 

Creating a budget is only the beginning. Tracking expenses is also necessary to know that the budget is working. Get in the habit of recording every expense. There are several options, including budgeting apps, spreadsheets, or simple pen and paper. Make adjustments to budget categories if needed.

Living on a budget is the most effective way to prevent overspending in retirement. However, it’s not easy to adjust to living on a budget all of a sudden. So, during the years leading up to retirement, get in the habit of budgeting and tracking expenses to develop this practical skill.

Download My Budget Spreadsheet Here!

5. Investing for Income 

Those who are a few decades away from retirement typically focus on growth with their investments. A longer time frame allows for more ups and downs along the way, with the goal of maximizing long-term results.

In retirement, investments can serve as a source of income. Retirees benefit from investments that pay dividends, providing a source of income without withdrawing from the account and reducing the balance.

During the years leading up to retirement, it’s helpful to shift from growth-oriented investments to investing for income. Of course, it’s not necessary to devote the entire portfolio to this type of investment. However, most retirees will benefit from having some assets that produce income regularly to supplement Social Security, pension payments, or other income sources.

6. Preparing Yourself for Tax Season

Many Americans hire professionals to prepare their tax returns. However, fewer of these have a good understanding of how taxes work, and how to save money on their tax bill. Of course, preparing taxes can be a difficult task, so using a professional tax service is always a good decision. However, preparing yourself before year-end is a practical money skill that can lead to thousands of dollars in savings.

By planning ahead, you can employ strategies to reduce our tax bill, and keep more of our hard-earned money!

7. Debt Payoff

Avoiding and eliminating debt is a worthy goal at any stage of life, but it’s imperative during retirement or leading up to retirement. Living on a fixed income is much more challenging if the budget includes money for monthly debt payments.

Most financial experts recommend paying off a mortgage before retirement, although this may not be realistic for everyone. Living with a mortgage in retirement is feasible with an adequate income or nest egg, but avoiding other types of debt like credit cards, car loans, and personal loans is critical.

Those planning for retirement should evaluate their current debt and what they need to pay off that debt before retiring. The debt snowball and debt avalanche are two different methods that are both highly effective for eliminating debt as fast as possible. The debt avalanche is generally better for numbers-oriented people who want to pay as little interest as possible. The debt snowball is better for those who are looking for a psychological boost to help with motivation.

Read more: Should you Pay off Debt or Save for Retirement

8. Understanding the Difference between Liquid Net Worth and Net Worth 

Net worth is one of the most common metrics used to measure wealth. Yet, while net worth does matter, it doesn’t necessarily indicate current financial health or the ability to withstand unexpected events.

All assets are counted the same in a net worth calculation. However, liquid net worth considers only the assets that can be quickly liquidated and converted to cash. Why is this helpful? Because liquid assets are more valuable and useful in emergencies compared to illiquid assets.

In an emergency, having $10,000 in cash is more valuable than a piece of jewelry that’s worth $10,000. Of course, both would be of equal value in a net worth calculation, but only the cash adds to liquid net worth.

Retirees need to have assets that are liquid in case money is needed with short notice. Therefore, calculating liquid net worth is a worthwhile endeavor because it provides a helpful look at someone’s ability to deal with some financial turbulence. 

9. Prioritizing Health

Health care costs are a significant concern for many retirees and those who would like to retire but fear they can’t afford it. The best approach is to prioritize health and take preventative measures that will minimize the costs long term.

Eating well and getting exercise is standard advice, but it’s just as crucial for financial purposes as it is for health reasons. Many retirees depend on Medicare for covering health costs, but Medicare won’t cover everything. So it’s best to maintain a healthy lifestyle and keep health care and medical expenses to a minimum.

Developing healthy habits is just like building good financial habits–now is the best time to start. Waiting until retirement to prioritize health is not a good idea, so it’s critical to begin as soon as possible.

Being healthy is also crucial for being able to enjoy retirement. Travel, hobbies, and spending time with family are all more practical for retirees in good physical condition.

Read More: The Link between Health and Financial Wealth

10. Estate Planning

As retirement gets closer, it’s essential to start thinking about estate planning. Ideally, every adult with kids should have a will in place, but estate planning involves much more than simply drafting a will. It’s an important subject, so hiring a professional is the best way to ensure that nothing critical is overlooked.

Estate planning is vital because it provides the opportunity to control how assets are handled at the end of one’s life. Proper estate planning saves loved ones from difficult decisions and countless hours of paperwork and frustrations. It also ensures that assets will be accessible to loved ones and not held up in an unnecessary legal process.

Many attorneys and estate planners offer free consultations, so it’s easy to get input from a few different professionals before hiring anyone.

Final Thoughts

Retirement is an important financial goal, but it’s essential to prepare adequately. The practical money skills covered here are helpful for those who are planning for retirement or looking to retire in the next few years. Mastering the skills now will help provide the best chance for a comfortable and enjoyable stage of life.

This article originally appeared on Credit.com.

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