If you’re part of the sandwich generation, having a money management plan is crucial.
The post Budgeting Tips for the Sandwich Generation: How to Care for Kids and Parents appeared first on Discover Bank – Banking Topics Blog.
If you’re part of the sandwich generation, having a money management plan is crucial.
The post Budgeting Tips for the Sandwich Generation: How to Care for Kids and Parents appeared first on Discover Bank – Banking Topics Blog.
Here are ways to keep expenses guilt-free to bring joy without breaking the bank and why having some fun money is a wise financial move.
The post How to Include Some Guilt-Free Spending in Your Budget appeared first on MintLife Blog.
If you can spare a little more money each month, switching from a 30-year to a 15-year mortgage can save you big bucks in the long-run.
The post 15-Year vs. 30-Year Mortgages: Which is Better? appeared first on MintLife Blog.
You have all kinds of financial goals you want to achieve, but where should you begin? There are so many different aspects of money management that it can be difficult to find a starting point when trying to achieve financial success. If you’re feeling lost and overwhelmed, take a deep breath. Progress can be made in tiny, manageable steps. Here’s are 16 small things you can do right now to improve your overall financial health. (See also: These 13 Numbers Are Crucial to Understanding Your Finances)
The biggest step toward effective money management is making a household budget. You first need to figure out exactly how much money comes in each month. Once you have that number, organize your budget in order of financial priorities: essential living expenses, contributions to retirement savings, repaying debt, and any entertainment or lifestyle costs. Having a clear picture of exactly how much is coming in and going out every month is key to reaching your financial goals.
Simply put, your net worth is the total of your assets minus your debts and liabilities. You’re left with a positive or negative number. If the number is positive, you’re on the up and up. If the number is negative — which is especially common for young people just starting out — you’ll need to keep chipping away at debt.
Remember that certain assets, like your home, count on both sides of the ledger. While you may have mortgage debt, it is secured by the resale value of your home. (See also: 10 Ways to Increase Your Net Worth This Year)
Your credit history determines your creditworthiness, including the interest rates you pay on loans and credit cards. It can also affect your employment opportunities and living options. Every 12 months, you can check your credit report from each of the three major credit bureaus (Experian, TransUnion, and Equifax) for free at annualcreditreport.com. It may also be a good idea to request one report from one bureau every four months, so you can keep an eye on your credit throughout the year without paying for it.
Regularly checking your credit report will help you stay on top of every account in your name and can alert you to fraudulent activity.
Your FICO score can range from 300-850. The higher the score, the better. Keep in mind that two of the most important factors that go into making up your credit score are your payment history, specifically negative information, and how much debt you’re carrying: the type of debts, and how much available credit you have at any given time. (See also: How to Boost Your Credit Score in Just 30 Days)
Transferring a set amount of money to a savings account at the same time you pay your other monthly bills helps ensure that you’re regularly and intentionally saving money for the future. Waiting to see if you have any money left over after paying for all your other discretionary lifestyle expenses can lead to uneven amounts or no savings at all.
The first step to maintaining a good credit standing is to avoid making late payments. Build your minimum debt reduction payments into your budget. Then, look for any extra money you can put toward paying down debt principal. (See also: The Fastest Way to Pay Off $10,000 in Credit Card Debt)
Your retirement savings and saving rate are the most important determinants of your overall financial success. Strive to save 15 percent of your income for most of your career for retirement, and that includes any employer match you may receive. If you’re not saving that amount yet, plan ahead for ways you can reach that goal. For example, increase your saving rate every time you get a bonus or raise.
An IRA is an easy and accessible retirement savings vehicle that anyone with earned income can access (although you can’t contribute to a traditional IRA past age 70½). Unlike an employer-sponsored account, like a 401(k), an IRA gives you access to unlimited investment choices and is not attached to any particular employer. (See also: Stop Believing These 5 Myths About IRAs)
Certain assets, like retirement accounts and insurance policies, have their own beneficiary designations and will be distributed based on who you have listed on those documents — not necessarily according to your estate planning documents. Review these every year and whenever you have a major life event, like a marriage.
The monetary value of your employment includes your salary in addition to any other employer-provided benefits. Consider these extras part of your wealth-building tools and review them on a yearly basis. For example, a Flexible Spending Arrangement (FSA) can help pay for current health care expenses through your employer and a Health Savings Account (HSA) can help you pay for medical expenses now and in retirement. (See also: 8 Myths About Health Savings Accounts — Debunked!)
The W-4 form you filled out when you first started your job dictates how much your employer withholds for taxes — and you can make changes to it. If you get a refund at tax time, adjusting your tax withholdings can be an easy way to increase your take-home pay. Also, remember to review this form when you have a major life event, like a marriage or after the birth of a child. (See also: Are You Withholding the Right Amount of Taxes from Your Paycheck?)
In general, if someone is dependent upon your income, then you may need a life insurance policy. When determining how much insurance you need, consider protecting assets and paying off all outstanding debts, as well as retirement and college costs. (See also: 15 Surprising Insurance Policies You Might Need)
First, make sure that the banking institutions you use are FDIC insured. For credit unions, you’ll want to confirm it’s a National Credit Union Administration (NCUA) federally-covered institution. Federal deposit insurance protects up to $250,000 of your deposits for each type of bank account you have. To determine your account coverage at a single bank or various banks, visit FDIC.gov.
Set up an online account at SSA.gov to confirm your work and income history and to get an idea of what types of benefits, if any, you’re entitled to — including retirement and disability.
An important part of financial success is recognizing where you need to focus your energy in terms of certain financial goals, like having a fully funded emergency account, for example.
If you’re overwhelmed by trying to simultaneously work on reaching all of your goals, pick one that you can focus on and achieve it by the end of the year. Examples include paying off a credit card, contributing to an IRA, or saving $500.
Unfortunately, you can never take a break from paying your bills, but you do have complete control over how you spend your discretionary income. And that may be the only way to make some progress toward some of your savings goals. Try trimming some of your lifestyle expenses for just one month to cushion your checking or savings account. You could start by bringing your own lunch to work every day or meal-planning for the week to keep your grocery bill lower and forgo eating out. (See also: How a Simple "Do Not Buy" List Keeps Money in Your Pocket)
Some small moves can go a long way to changing your money mindsetâand lead you to goal-setting success.
The post How to Set Financial Goalsâand Crush Them appeared first on Discover Bank – Banking Topics Blog.
Denver is becoming one of the most popular places to live. Click to learn how you can find and buy a home in this highly competitive market.
The post How to Buy a Home in Denver, Colorado appeared first on Homie Blog.
Money doesnât make you happy. Thatâs how the saying goes, and you canât deny that thereâs some truth to it. However, while having lots of money wonât make you happy, having very little is more likely to make you stressed and depressed.Â The less you have, the more likely you are to stress over the […]
The Shame of Debt is a post from Pocket Your Dollars.
New Year's resolutions. According to Inc. Magazine, 60% of us make them. But many of us know that when it comes to actually keeping New Year's resolutions, the odds aren't exactly in our favor. Research shows that, despite our best intentions, only 8% of us accomplish those annual goals we set for ourselves.
If you're anything like me, 2020 has left you hungrier than ever for fresh starts and clean slates.
What keeps us coming back every year? Well, as PsychCentral tells us, it’s partly tradition (we are creatures of habit!) and partly the allure of a fresh start, a clean slate. And let’s be honest, if you're anything like me, 2020 has left you hungrier than ever for fresh starts and clean slates.
That fresh start can apply to your professional life just as easily as it applies to dropping a few pounds, quitting your Starbucks habit, or taking up hot yoga. So, let's talk about some strategies to help you set career resolutions and, most importantly, actually keep them.
Every year I hear people say “My New Year’s resolution is to lose 20 pounds.” But technically speaking, that’s not a resolution, it’s a goal. It’s an outcome that you either do or don’t achieve.
A New Year's resolution is “a promise that you make to yourself to start doing something good or stop doing something bad on the first day of the year” according to the Cambridge English Dictionary.
Two things I love most about resolutions are that I have a chance to win every day, and I have complete control over my success.
A goal might be to achieve a revenue target, land an interview with someone you admire, or strike up a coveted partnership.
A resolution defines the experience you want to have. It’s about the how not the what. When I think of resolutions, I think of habits that will bring out the best version of myself—something like a promise to plan my day the night before so I'm ready to jump in fresh first thing in the morning.
The two things I love most about resolutions are that I have a chance to win every day, and I have complete control over my success.
Resolutions begin with an honest look at the year closing behind you. For me, 2020 has had some highs, but on balance, it wasn’t my cutest. There’s a lot I’d love to change next year. And my resolutions focus on a few key areas that live within my locus of control.
There is no shame or blame here; there is only space for reflection.
So where am I choosing to focus? For me, there are three distinct experiences I had this year that I plan not to repeat in the one upcoming.
Overwhelm. That not-so-adorable feeling that the world is sitting on my shoulders—that my clients’ success and my kids’ education and my aging parents’ welfare are all relying on me. Can’t do it again next year.
Reacting from a place of fear. Holding my breath, taking on more work than I know I should because what if the economy doesn’t bounce back? Will not repeat this one in ’21.
Loneliness. Hi, I’m Rachel, and I’m an extrovert! (Here's where all you fellow extroverts respond with, "Hi, Rachel!") If travel and face-to-face meetings won’t be an option for a beat, then I’ve got to be intentional about finding ways to bring more connection into my life.
These three experiences put a damper on my 2020. Note there is no shame or blame here; there is only space for reflection.
Be thoughtful about what aspects of the year felt heavy for you and commit to changing your experience next year.
Maybe your experience of 2020 was grounded in anxiety, or you’ve felt job-insecurity, or maybe just boredom. There are no wrong answers, so be thoughtful about what aspects of the year felt heavy for you and commit to changing your experience next year.
Ask yourself: If these are the experiences I don’t want to have again, what would it feel like to be on the other side?
Here’s what I came up with.
Shedding overwhelm would mean having a clear plan of attack each day. Rather than scrambling and juggling, I’d have a set of daily priorities ensuring clients, kids, mental health, and all significant constituents have what they need from me. The most critical things get done each day, and if nothing else gets done, I’ve still won.
Not feeling reactive and fearful? That will mean a shift in mindset from “What if the market doesn’t need what I offer?” to “How am I evolving my products and solutions to meet the changing needs of the market?”
And finally (sigh …) the loneliness. I talked about this in a quick video on my Modern Mentor page on LinkedIn. I miss the energy I take, the creativity I see triggered by moments of collaboration and brainstorming. It’s that very sense of ideas building on ideas that I want to recreate in 2021.
Now it’s your turn. What would your “better” look like in 2021?
If you’re job-insecure, maybe "better" means adding skills or certifications to your resume. If it’s anxiety you're wrestling with, maybe your “better” includes more self-care and relaxation.
The only wrong answers here are the ones that don’t resonate with you. You’re less likely to stick with a resolution that isn’t personally meaningful.
The words “sustainable” and “practices” are key here.
“Lose 20 pounds” doesn’t qualify as a resolution because it’s an outcome you can’t fully control. What you can control are the habits designed to get you there, like eating better or exercising. And if exercising every day feels unsustainable, then shoot for twice a week to start. Make it an easy win for yourself!
I’ll take the three experiences I want to have and translate those into habits and practices I can control.
So how does this translate into the professional realm? I’ll take the three experiences I want to have and translate those into habits and practices I can control. Here’s my working list.
In 2021 I will:
Choose my One Thing
I'll begin each day by identifying the one thing I need to achieve in service of:
Once I get all that done, whatever else I do that day is gravy.
Make weekly client connections
I will schedule one call per week with a past or current client for the sole purpose of listening. I won't be there to sell or help, but just to hear what’s on their minds, and what needs they've anticipated for the near future. This will allow me to be more planful and proactive in designing my offerings.
Set up virtual office hours
I will host bi-weekly office hours. I’ll share a Zoom link with a dozen of my friends and colleagues and invite people to pop in … or not. No agenda, no one in charge, just an open space for sharing ideas, challenges, and even some occasional gossip.
Pay attention to the fact that all of these resolutions are within my control. I’m not waiting for circumstances to change, and I’m not holding myself accountable to an outcome, I'm just committing to doing these things.
And finally, the fun part. Each resolution gets a page of its own in my Bullet Journal, which means lots of colorful checks and boxes! I keep track of how many days or weeks per month I stick with my resolutions. I set small goals for myself, and I give myself little rewards for hitting milestones. My reward might be an afternoon off, an extra hour of Netflix (do not tell the kids!), or an outdoor, socially distanced coffee with a friend. Celebration is so important. It motivates me to repeat the habit and have a better experience.
So there you have my secrets to setting and keeping my resolutions. I would be so grateful if you’d share yours with me on Twitter, Facebook, or LinkedIn. I’d be delighted to be your accountability buddy!
Touring homes is so much simpler these days thanks to technology. Here’s what you need to know about touring homes today.
The post How To Tour a House Today: Tips To Make the Most of Virtual or In-Person Showings appeared first on Real Estate News & Insights | realtor.comÂ®.
At some point, most people experience an unexpected crisis that shakes their financial world. It could be losing a job, receiving a huge medical bill, or having a car break down at the worst possible time. But surviving a pandemic is a situation you probably never thought you would face.
No matter what challenge you’re facing, you’re not the first.
Along with the public health toll, the COVID crisis has put millions of people out of work. For those struggling financially, here are eight critical rules to help you manage money wisely, stretch your resources, and bounce back from this unprecedented health and economic disaster.
Here are the details about each rule to manage a financial setback during the coronavirus crisis.
The key to successfully navigating a financial setback is to be realistic. If you’re in denial and don’t face money troubles head-on, you can quickly compound the damage.
Instead of focusing on the problem, getting angry, or letting stress overwhelm you, channel your emotions into finding solutions. Start talking about your challenges with people and professionals you trust, such as a money-savvy family member, financial advisor, legitimate credit counselor, or an attorney.
Instead of focusing on the problem, getting angry, or letting stress overwhelm you, channel your emotions into finding solutions.
The following financial associations have certified volunteers who can offer free help and advice:
To fully understand your situation, create a list of what you own and owe; this is called a net worth statement. Compiling your data in one place helps you evaluate your financial resources, make decisions more efficiently, and have essential information at your fingertips if creditors or advisors ask for it.
First, list your assets:
Then list your liabilities:
Include the estimated values of your assets, the balances on your debts, and the interest rates you pay for each liability. You could jot down this information on paper, enter it in a computer spreadsheet, or create a report using money management software.
When you subtract your total liabilities from your total assets, you’ve calculated your net worth, which is an indicator of your financial health. It’s not uncommon to have a low or negative net worth when you’re in financial trouble.
RELATED: 10 Things Student Loan Borrowers Should Know About Coronavirus Relief
An essential part of bouncing back from a financial crisis is keeping an eye on your monthly income and expenses. Create a cash flow statement that lists your expected income and typical expenses, such as rent, utilities, food, prescriptions, transportation, and insurance. Again, you can create this report manually or by using budgeting features in a financial program.
Understanding where your money goes is the only way to prioritize expenses and cut all non-essential spending.
Understanding where your money goes is the only way to prioritize expenses and cut all non-essential spending. Making temporary sacrifices will help you recover as quickly as possible with less long-term damage to your finances.
As you review your spending, it’s an excellent time to comparison-shop your essential expenses. Evaluate your highest costs first, such as housing, vehicles, and insurance, since they offer the most significant potential savings.
For instance, you may be able to move into a less expensive home, purchase or lease a cheaper vehicle, and shop your auto insurance to find better deals. Ask your utility provider about assistance programs that offer energy-saving improvements at no charge.
If you haven’t been in contact with your creditors, start a dialog with each one immediately. You’ll come out ahead and get favorable treatment from creditors if you are proactive and honest about your financial troubles. Ask them for solutions, such as deferring payments for several months, setting up a reduced payment plan, or refinancing a loan to reduce your financial burden.
You’ll come out ahead and get favorable treatment from creditors if you are proactive and honest about your financial troubles.
Creditors are likely to ask about details regarding your financial situation, so have your net worth and cash flow statements on hand when you speak to them. Be ready to complete any required assistance applications quickly.
Based on guidance from creditors and finance professionals, prioritize your bills and debts carefully. Your goal should be to conserve as much cash as possible without skipping essential payments. Always pay for necessities first: food, prescription drugs, and auto insurance.
Debts related to child support and legal judgments have severe consequences and should be prioritized
Use your net worth statement to rank your liabilities from highest to lowest priority. For instance, debts related to child support and legal judgments have severe consequences and should be prioritized. Keeping up with an auto loan is a high priority if you rely on your vehicle for transportation. Federal student loans are in automatic forbearance through September 30, and the relief may get extended through 2020.
Your unsecured debts—medical bills, credit cards, and private student loans—are lower priorities. Never pay these debts ahead of rent, a mortgage, or utilities when you have a cash shortage.
Prioritizing your debts means some may be paid late or not at all. If a debt collector contacts you about a low-priority debt, such as a medical bill or credit card, don’t allow them to persuade you to pay it before your highest priority bills.
Collectors may try various aggressive tactics, such as threatening to sue you or ruin your credit. A lawsuit could take years, and a creditor is more likely to negotiate a settlement with you. Remember that a creditor or collector can’t send you to jail for civil debts.
If you are behind on bills, that fact is likely already reflected on your credit reports. By the time a collector contacts you, the damage is already done, and paying the bill won’t improve your credit in the short-term.
If your income and savings have entirely dried up, use these resources to learn more about local and federal benefits.
Financial challenges can cause you and your family to experience a flood of emotions, including anger, fear, and embarrassment. As difficult as it might be to put a financial crisis into perspective, it’s critical. No matter what challenge you’re facing, you’re not the first. There are millions of people who are dealing with COVID-related financial hardships.
Face the fact that your recovery could take a while. Do everything in your power to manage your budget wisely by getting organized, seeking ways to earn more, and spending less. Don’t be afraid to ask for help from creditors, seek free advice from professionals, and take advantage of every local and federal benefit possible.