Warning Signs That Your Budget Needs Help
Do you feel like your paycheck disappears faster than you make it? Is all your money being used up, but you’re not quite sure why? Have you tried to budget- but it just makes you struggle more than ever? Well, then this post is for you. When I first started budgeting my income, it was really difficult to follow. I was a little too strict with myself, and it just wasn’t realistic. Like an extreme fad diet, if you don’t allow yourself any wiggle room, you will fall off the wagon fast and end up gaining more weight, or spending more than ever. Check out this post by Stacy at Six Dollar Family for help:
-If there’s not enough money to go around, even though you have income to cover your bills, you need to check your budget.
-If you’re not quite sure where you’re money is going, check your budget.
-If you’re constantly worrying about your budget, you need to check it. (Budgets are supposed to make your life easier!)
-If your accounts are negative, it’s more than past time to check it and update it.
Where Will You Pay The Least For A Down Payment?
I was pretty excited when I saw this article by Yahoo Homes, since it mentions my home state! Did you know that:
“Millennials are flocking to areas such as Montgomery County, Tennessee, where the average down payment is just 11 percent.”
Woo! Way to go, Tennessee! If you’re in that area and want to take advantage of low down payments, now is the time to buy! Saving up for a down payment can be the hardest part of obtaining a home- that’s a lot of money. Here’s more info if you want to know where to go:
In 25 counties with the lowest median home prices, the typical money put toward purchase added up to 12 percent of the price. Conversely, the counties that had the highest median prices saw down payments average 24 percent.
20-Somethings: Have You Reached These Financial Goals?
This post by Gretchen at Retired By 40 lists several financial accomplishments that everyone should achieve by age 30. I’ll admit, I was a little nervous before reading it. I’m 24, and I have my own financial goals that I’m working on completing. I was interested to see how I’d stack up. Once I read it, I was pleasantly surprised! Do I have all of them done? No. But I have been building up my savings, paying off debt, saving for a down payment on a home, and actively trying to bump up my credit score. Here are more of the goals:
-Set up an emergency fund of at least $1,000- ideally, grow it to 3-6 months of expenses.
-Automate- set up your account so it sends a chunk of your paycheck to your savings automatically. Get in the habit of paying yourself first.
-Determine what your priorities are, and stick to them. Do you want to save for a house? Travel? Have kids? A big wedding? What items do you like to splurge on? Put aside money for these personal goals.
-Max out your 401(K), contribute as much as possible- don’t leave money on the table!
So, have you accomplished all of these? Some? Any?
Getting A Mortgage: How To Lock In Your Rate
Getting the lowest mortgage rate possible should be a goal for all homebuyers. Who wants to pay more in interest than they have to? No one! That’s why, when your potential lender offers a rate, you need to lock it in as soon as possible. Sometimes, mortgage rates can change the next day, like gas prices! Check out this post by Bill Gassett at Max Real Estate Exposure for tips:
Be sure to get pre-approved for your mortgage! Since mortgage rates change day to day, borrowers should not assume that the mortgage they qualify for today will be available tomorrow, unless they lock in the rate. It is also important not to assume that any particular rate is locked in unless they have reassurance in writing. Be sure to document any discussions you have with your mortgage broker or lender when locking a rate!
How To Save Big On Your Mortgage
Your mortgage is likely the biggest chunk of your expenses each month. Homes are expensive, plain and simple. However, mortgage interest can add tens of thousands (even hundreds of thousands) of dollars to your payments. To me, paying extra on interest is a waste of money. So how do you get around that? Simple- pay off your home faster. Check out this post by Anita at Live Like You Are Rich for a detailed guide on slashing those interest charges:
I am willing to sacrifice $1,000 a month to have our home paid off 20 years early to save $100,213.35 in interest AND more than likely make $814,887.34 by investing in the same time frame. The banks don’t want you to know that they make LOTS AND LOTS of money in the first 12 years of 30 year loans and refinances. The first 12 years of your mortgage payment schedule is really heavily weighted in interest.
Odd Job Ideas For Extra Cash
For me, nothing is more important in a job than flexibility. I like deciding when I work, how I work, where I work, and how often. I try to live frugally and stick to a budget, so income doesn’t concern me as much. That’s why, right now, I have three part time jobs that all add up to full time hours (and full time pay). I love the flexibility I get working these odd jobs! If you are interested in a schedule that is completely up to you, or if you just want to pick up a part-time job that can work around your other job, here is a list of odd jobs that I have done, or that I have considered doing:
-Substitute Teaching- Where I live, the only requirements to be a substitute teacher are: be 21 or over, have a high school diploma/GED, and be able to pass a drug test and background check. Some days are harder than others, but if you get a good class, you can get paid to sit and read for 8 hours. It’s pretty sweet. The best part is, you pick where you work and when you work. Don’t feel like going to work in the morning? Don’t accept a job.
-Freelance writing/blogging- Start your own blog and try to get sponsors/advertisers, or look for other sites that are hiring writers. I absolutely love writing, and I’m extremely thankful each day that I get paid to do what I love, and that I’m able to support myself with my passion. One of the other things I love most about my job is that I decide when I want to work. Yes, articles need to be done every day, but I can do them at 3AM, or noon, or 10 at night. Or, I can take an entire day and get them done for the whole week- then not work for five days.
-Sell your skills- Do you have training as a carpenter, handyman, plumber, babysitter, mechanic, or artist? Don’t let your work go unpaid! Start up your own business, and post ads online for your services.
-Sell your crafts- Do you knit, crochet, paint, make beauty products, or sew? Do you only consider it a hobby? Consider opening up your own Etsy store! I have a friend who makes his entire living by selling art prints, commissions, and t-shirt designs. Don’t ever let anyone tell you that your passion won’t pay.
-Become a driver- This is something I’ve been doing research on lately. If you have a clean car, your own car insurance, and a clean driving record, services like Uber and Lyft are always hiring drivers. Personally, I LOVE driving around, and like meeting new people. If you live in a city or populated area, you can make $20-$50 an hour. Again, you pick when you work, so it’s perfect for people looking for something part time.
-Try getting a weekend job- I also work at a movie theater, and work 2-3 days out of the week there. I sell tickets, and I like getting the extra cash every couple of weeks. Plus, I get to see free movies! Places like theaters, grocery stores, fast food joints, and malls are always hiring part timers, and can be great for people who need a flexible schedule.
-Check out Craigslist- There are all kinds of people out there looking for someone to do their odd jobs. However, Craigslist can be creepy, and not all the jobs are legitimate. Be extra careful, and ask lots of questions. Never go to a private residence alone. But, you never know. There are some real gems out there! I have a friend who got a job as a Haunted House actress just from looking at Craigslist, and another friend who has a full time pet sitting job.
Working doesn’t have to be a boring, 9-5, soul crushing experience. If that’s what you like, great! If not, there are all kinds of other opportunities out there for you. All you have to do is look!
Where To Exchange Your Coins For Cash
I have a little wooden box in my house that accumulates all my loose change. If I have any quarters in my pocket, they get thrown in the box. Any change in the bottom of my purse, or that I find cleaning- it goes in the box. Now, it’s been ages (probably years) since I’ve gone through it (usually it sits there, forgotten about, since I rarely use cash for anything)- but last night, I decided to count all the silver coins and was pleasantly surprised. I had over $35! Just sitting uselessly in my house. That’s a pretty decent dinner out for two, but of course you can’t just show up at the restaurant with a bucket of change (and if you have done that, shame on you!). I need to find some way to turn it all into cash. There’s Coinstar, but it takes about 11% of the transaction. So, I found this article by Dr. Don Taylor at the Bankrate blog. Here’s what he says to do with large amounts of change:
Talking to your bank is a good place to start, in any case. It might provide coin counting as a free service to customers even if they don’t have a machine in the lobby.
Coinstar, which operates machines at many grocery store locations, offers an alternative to paying its 10.9 percent fee. The coin counting is free when you opt to get a gift card representing the dollar value of the change.
How To Organize Your Bills
I’ll be honest- our kitchen table is a disaster. It’s the catch-all space that we use for papers, bills, mail, and any other things that we don’t have a designated space for. It gets cleaned off every once in a while, but things start to accumulate again within a day or so. It’s an eyesore, but it’s also dangerous- there’s always the threat of losing something important. That’s why I love this post by Becky at Clean Mama. If you follow her advice, you’ll have your paperwork (and finances) organized in no time. Here’s how she organizes her bills:
-Use a binder + plastic dividers. Divide them into Budget, Debt, Savings, Due Dates, and Checklist.
-Put bills in due date pockets
-Use a bill payment checklist to make sure everything gets paid on time!
Why Is Bad Credit So Bad?
There are so many personal finance articles out there about how to improve your credit, but why does it actually matter? I’m a firm believer in the fact that a number can never define your worth- your weight on a scale, the amount of money your make, your GPA from school- none of that reflects your character. A credit score attempts to measure how risky of an investment you are to potential lenders. It takes into account whether or not you pay your bills on time, and how much debt you currently possess. Again, having bad credit does not mean you are a bad person, but it can have severe effects on your personal life. This article by Brian Martucci at Money Crashers illustrates what a bad score can mean for you:
-Getting approved for any sort of loan can be difficult, including ones for cars and homes
-You will face higher rates and more restrictive terms on loans you do get
-You may face trouble renting an apartment
-Potential strain on personal relationships