Great tips to pay the lowest possible for your car insurance!
Is Black Friday Worth It?
Every year, millions of Americans flock to stores at the crack of dawn the day after Thanksgiving. They do it in the name of saving tons on expensive Christmas gifts- and let’s face it, there are some pretty good deals out there. However, there are other ways to scoop up those great savings…without cutting your Thanksgiving short or getting trampled. Check out this post by Amy Livingston at Money Crashers for Black Friday alternatives:
-Shop online- many retailers offer discounts on Black Friday and Cyber Monday
-Shop locally on Small Business Saturday
-Shop earlier or later- often, Black Friday sales are the same discounts that the stores routinely give
-Always be sure to comparison shop and price check beforehand to make sure that you are actually getting bargains!
You’ve Probably Never Heard Of These Mortgage Terms
..Unless you’re a Realtor. Even complete laymen probably have an understanding of the most basic of real estate terms: equity, closing, and mortgage are all fairly common words. However, when you actually get elbow-deep into the world of home buying, words often pop up that you’ve probably never heard of before: amortization, escrow, principal/interest- not to mention the plethora of actual mortgage types out there. For a great guide, check out this post by Paul Sian at CinCinKy Real Estate:
Amortization-Is the paying off a debt (principal plus interest) in fixed payments over a set period of time.
Escrow-An account setup by the lender to hold money for payment of home insurance and property taxes.
P&I – Principal and Interest- P&I will be your normal monthly mortgage payment excluding escrow account payments if any.
Wordless Wednesday: Bridge In A Home??
Getting The Cheapest Mortgage
While it’s not the ONLY important factor, the interest rate is the main thing that people look at when shopping for a mortgage. You already have to pay for your home, so what is the point of paying the bank more than you have to? For how to get the lowest interest rate possible, check out this cool trick by Kate Dore at Magnifying Money:
The Consumer Financial Protection Bureau (CFBP) has a helpful tool to compare interest ratesfrom actual lenders who update their information daily. This enables you to often find lower rates compared to other, similar tools. Simply enter your credit score, state, home price, and down payment percentage to view a graph of lenders and the interest rates being offered in your region.
How To Save Money And Pay Off Your Mortgage Faster
In our consumer based culture, saving money is extremely hard. It’s your money and you earned it, so why not go out and spend it on something you don’t need? I mean, lots of other people buy things that they can’t even afford, and wrack up massive amount of credit card debt, so why shouldn’t you be able to buy things you actually can afford? You can’t take it with you, am I right? However, it is important to prepare for when you maybe aren’t doing so well financially. You need to have an emergency fund saved up, at the very least. And what about buying a home? Saving for retirement? Paying off debt, even if it is “good” debt, like student loans or a mortgage?
When you are making money, it’s extremely unwise to spend it as soon as you get it, and then be left in trouble when you do actually need it (I’m sure we all know at least one of these people). Also, I find it much more gratifying when my money is applied to actual financial goals, like building my savings account, paying off debt, or traveling, rather than frivolous impulse buying. Think about it. Would you rather have a week long, exotic vacation, or a hamper full of clothes that were trendy last year? Your dream home, or a closet full of clutter from unplanned Walmart/Good Will trips? Delaying gratification can be difficult, but the results are so much better in the end.
For tips on saving more, and keeping control of you savings, check out this article by Becky at Your Modern Family. Any money you save can be applied to retirement, paying off your mortgage faster, or even a well deserved vacation later:
-Pay your mortgage more often- paying every other week can take 8 years off your loan
-Don’t buy what you don’t need- Every time that you want to spend money, just take that money and put it into a jar; add it up at the end of two weeks.
-Have some of your paycheck automatically put into savings
-Don’t use credit cards unless you have to. Need to pay medical bills? Go ahead. Flat screen TV? Not so much.
-Create a budget and stick to it; don’t forget to budget “entertainment” money! Being smart with money doesn’t mean you can’t have fun.
Friday Fun Video: Make Your Food Last Longer
Eggs last forever! Use the test that he does- drop it in a glass of water so it is fully submerged. If it sinks, you’re good! Of course, always use your best judgment. If something doesn’t smell right, or looks funny, throw it out!
Raise Your Credit Score In A Year
This guide by Joshua M. Adams at Hubpages claims that no matter what your credit score is, you can raise it by 200 points within a year. I thought it was extremely optimistic at first. I’ve been working for about 2 years on getting rid of debt and paying bills on time, and my score has only gone up about 20 points. However, his method is actually pretty brilliant, and involves…just asking your lenders to take items off your credit report, of all things. Read more here:
-Pay the creditor, and request that they remove the negative information. Basically, they withdraw their submission of unpaid debt.
–Method Two: Obviously, we’re not going to be able to pay everything on our credit report in most cases, so we have a different method for dealing with these debts. You are going to dispute them. A law exists that credit bureaus must remove negative information if the customer disputes it, and the company that listed the debt doesn’t prove that the debt is owed and is correct within thirty days
What Is Making You Overspend?
Overspending is a problem that many of us face. When you get a little bit of extra money, it truly does burn a hole in your pocket. Sure, you budgeted $75 for going clothes shopping this month, but you found a really cute outfit that you absolutely can’t live without! It’s okay to go over by $20 or so, right? Well, that’s fine every once in a while, but it can become a dangerous habit, and eventually will wreck your entire budget. Suddenly, the extra $10 or $20 every couple of weeks has added up to thousands a year. Check out this post by Jesenia at The Latina Homemaker for reasons you may be overspending, and how to stop it:
-You don’t have a budget: “failing to plan is planning to fail.”
-You use the ATM- they almost always charge extra fees, and are enabling to impulse buying. Take the time to go to your bank and withdraw cash, and you’ll find that your impulse to spend is gone.
-You drive unnecessarily- Make a list of all the places you need to go at once instead of going on multiple trips to save on gas.
-You pay for convenience- paying for fast food or going through a car wash instead of doing it yourself will really cost you in the long run.
Debt Free Myths
When we talk about living debt free, we need to address the unicorn in the room: your life will not magically be perfect, and you will not have infinite money. So many people treat paying off debt like it is the ultimate goal: and many people don’t look past that and plan for the future. Check out this post by Tshanina at Thrifty T’s Treasures for the biggest myths out there about debt free living:
– “You can say yes to everything”- Now that your debt is gone, your next step is to save and plan for the future. In order to plan for the future you can’t start saying “yes” all the time.
– “You can splurge all the time!” – It’s okay to have a “wish list,” but just know that you won’t be able to have everything you want right when you want it. Prioritize the items on your list and start knocking them off one by one.
– “Your money stress is gone!” – The stress level is totally different, but it’s still there nonetheless. It’s as if you’ve been given a huge responsibility and have to decide what to do with it.