Summer camp is a rite of passage. A place where traditions begin and memories are made. A unique venue with a structured opportunity for kids to grow and learn new skills. As enriching as it may seem, embarking on the process each year can be intense: How do I choose a camp? Should it have a philosophy? How do I know my child will have fun? But often the question at the top of the list is, “How do I budget for summer camp?”
Whether you’re scrambling for camp arrangements for this year or getting a jump-start on next summer, you’re in need of a working budget for summer camp. “As a parent who sent several kids to summer camp for many years, I know how expensive it can be,” says Leslie H. Tayne, author and founder of debt solutions law firm Tayne Law Group.
Read on for expert budgeting tips for summer camp and how to save money on summer camp so you can make the best decisions concerning your wallet and your child’s wish list:
1. Get a handle on camp tuition
According to the American Camp Association, sleep-away camp tuition can range from $630 to more than $2,000 per camper per week. Day camp tuition isn’t too far behind, ranging from $199 to more than $800 per week.
One of the best ways to budget for summer camp and prepare for tuition costs is to understand your needs for the summer as well as your child’s interests. This will help you determine ‘how much’ and ‘what type’ of camp you want: Is day-camp coverage important all summer because of work? Does your child want to experience sleep-away camp for a portion of the time? Is a camp with a specific focus (say a sport or hobby) on the list?
Depending on your circumstances and child’s expectations, it’s not unusual to be looking at a combination of campsâand tuition costsâin one season. If you have multiple kids at different ages, with different interests, creating a budget for summer camp and understanding how much you’ll need to dish out in tuition becomes especially important.
Once your camp plan is in place, assess how much you’ll need to pay in tuition for the summer months with school out of session. The sooner you’ve arrived at this figure, the easier it will be to work the expense into your household budget, says Heather Schisler, money-saving expert and founder of deal site Passion for Savings. “It’s much easier to set aside $30 a month than it is to come up with $300 to $400 at one time,” Schisler says.
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Sleep-away camp tuition can range from $630 to more than $2,000 per camper per week. Day camp tuition ranges from $199 to more than $800 per week.
2. Plan for expenses beyond tuition
One of the biggest budgeting tips for summer camp is planning for the many costs outside of tuition. Tayne points out that sleep-away camp usually comes with a longer supply list than day campâsuch as specific clothing or gear and toiletries to cover the length of stay. If your child is heading to a sleep-away camp far from home, your budget for summer camp may also need to factor in the cost of transportation or the cost to ship luggage. Day camps can also have fees for extended hours or transportation if your child rides a camp bus each day.
Once you’ve selected a campâday camp or sleep-awayâcheck its website for camper packing lists and guidelines. Most camps offer checklists that you can print out, which can be good for tracking supplies and costs as you go. After you enroll, your camp may provide access to an online portal that can help you manage tuition and track additional expenses, like canteen money, which is cash your child can use for snacks and additional supplies while away.
3. Create a year-round savings strategy
By calculating the necessary expenses ahead of time for the camps you and your campers have chosen, you’ll be able to determine an overall budget for summer camp. A budgeting tip for summer camp is to save money monthly throughout the year. To determine a monthly savings goal, divide your total summer camp costs by the amount of months you have until camp starts. If camp is quickly approaching and you’re feeling the budget crunch, you may want to start saving for next year’s costs once it’s back-to-school time so you can spread out your costs over a longer period of time.
Once you start saving, you’ll need a place to put it, right? When it comes to budgeting tips for summer camp, consider placing your cash in a dedicated account, which will keep it separate from your regular expenses and help you avoid tapping it for other reasons. “Then you can have your bank set up an auto draft [for the summer camp money] so it automatically goes into your account each month and you will have the money you need when summer rolls around,” Schisler says. If you use a Discover Online Savings Account for this purpose, you’ll also earn interest that can be put toward camp expenses.
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âIt’s much easier to set aside $30 a month than it is to come up with $300 to $400 at one time.â
4. Find ways to fund your summer camp account
To boost cash in your summer camp savings account, consider asking relatives and family friends to gift your children cash for camp in lieu of birthday and holiday gifts, says Tracie Fobes of budget blog Penny Pinchin’ Mom. “If your child has his or her heart set on sleep-away camp, they may be willing to forgo a gift or two,” Fobes says.
Another budgeting tip for summer camp is to put your cashback rewards toward your budget for summer camp. For example, if you open a checking account with Discoverâcalled Cashback Debitâyou’ll earn 1% cash back on up to $3,000 in debit card purchases each month.1 You can enroll to have that cashback bonus automatically deposited into your Discover Online Savings Account so it remains designated for camp costs (and can grow with interest).
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Lastly, if you don’t have your tax refund earmarked for another financial goal, you could use the windfall to kick-start your summer camp savings fund. Depending on the refund amount and your total camp costs, it could reduce your monthly summer camp savings goal significantly.
5. Reduce camp-related costs
Despite having your budget for summer camp in full view and planning in advance, camp can still be expensive. Here are some ways to save money on summer camp by cutting down on camp costs:
- Ask about scholarships and grants: “Some camps offer scholarships or discounts for children and families,” Fobes says. Research your camp to see if they have anything similar to help offsetâor even pay forâthe cost of tuition.
- Use a Dependent Care Flexible Spending Account (DCFSA): A Dependent Care Flexible Spending Account is a pre-tax benefit account that can be used to pay for eligible dependent care services. You can use this type of account to “cover dependent care [costs], and camp may qualify,” Fobes says.
- Negotiate price: “Many people don’t think about negotiating the cost of summer camp, but it is possible,” Tayne says, and more and more camps are open to it.
- See if there’s an “honor system”: Some camps have what’s known as an honor system, where the camp offers a range of costs, or tiered pricing, and parents can pay what they can comfortably afford. Every child enjoys the same camp experience, regardless of which price point, and billing is kept private.
- Take advantage of discounts: Attention early birds and web surfers: “There are sometimes discounts offered when you sign up early or register online,” Fobes says.
- Volunteer: If your summer schedule allows, “offer to work at the camp,” Fobes says. If you lend your servicesâperhaps for the camp blog or cleaning the camp house before the season startsâyour child may be able to attend camp for free or a reduced rate.
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Focus on the experienceânot the extras
Don’t let summer camp costs become a family budget-buster. Plan ahead and look for money-saving opportunities and work your budget for summer camp into your annual financial plan.
To save money on summer camp, remember that you only need to focus on camp necessities. “Don’t spend a lot of extra money on new clothing, bedding, trunks or suitcases,” Schisler says. “Remember, summer camp is all about the experience, not the things.”
1 ATM transactions, the purchase of money orders or other cash equivalents, cash over portions of point-of-sale transactions, Peer-to-Peer (P2P) payments (such as Apple Pay Cash), and loan payments or account funding made with your debit card are not eligible for cash back rewards. In addition, purchases made using third-party payment accounts (services such as Venmo® and PayPal
, who also provide P2P payments) may not be eligible for cash back rewards. Apple, the Apple logo and Apple Pay are trademarks of Apple Inc., registered in the U.S. and other countries.
The post Your Guide to Budgeting for Summer Camp appeared first on Discover Bank – Banking Topics Blog.
Source: discover.com
Why Set Impossible Goals for 2021? [The Ultimate New Yearâs Savings Hack]
In the 1980s, self-driving cars and smartphones without antennas were only things youâd see in movies â unimaginable futuristic goals. Now, these âimpossibleâ inventions are part of peopleâs everyday lives. These innovative ideas were thought to be outlandish years ago until creators like Elon Musk and IBMâs team put their impossible goals to the test.
Impossible goals are things you want to achieve that seem out of the ordinary â ones that feel as if you may never reach them, even in your wildest dreams. These goals could be turning your dream side hustle into a full-time job or building your savings from zero in the next year to buy your dream home.
While the end result seems unreachable, a mix of motivation, determination, and hard work can get you further than you think. To see the strategic process of setting and achieving your biggest life goals, keep reading our jump to our infographic below.
Whatâs an Impossible Goal?
An impossible goal is a goal you think you could never achieve. Becoming a millionaire, buying your dream home, or starting a business may be your life goal, but one too big that you never set out to achieve. Instead, you may stick to your current routine and believe you should live life in the comfort zone.
Becoming a millionaire usually requires investing time, confidence, and a lot of hard work â things that may challenge you. But when you think about the highest achievers, most of them had to put in the effort and believe in themselves when nobody else did.
Flashback to 1995 when nobody believed in the âinternet storeâ that came to be Amazon. While that was considered impossible years ago, Amazonâs now made over $280 billion dollars.
In other words, when you make your impossible goals a priority, you may be pleasantly surprised by your progress. We share how to set hard financial goals, why you should set them, and how these goals could transform your financial portfolio this year.
4 Reasons to Reach for the âImpossibleâ
Impossible goals challenge you to shift your way of thinking â getting comfortable out of the safety zone. They help fine-tune your focus for daunting tasks youâre willing to put in the time and work for. Whether youâre looking to become a millionaire, buy your dream house, or pay down your debts, hereâs why you should set goals for things you think you could never achieve.
1. You May Be Pleasantly Surprised
Everything seems impossible until you do it. When youâre in elementary school, maybe you thought getting a four-year college degree would be out of reach. Regardless, you put in the time and hard work to become a college grad years later. The same goes for your potential goal to write a book. You may think itâs hopeless to write a few hundred pages in the next year, but you may find it attainable once you hit the halfway point.
2. You Check Off Micro-Goals Along the Way
Itâs hard to set your goals too low when youâre trying to reach for the stars. In the past, you may have set small goals like being more mindful with your money. While mindfulness practices are extremely beneficial for your budget, you may need more of a push to save for your dream home. By setting impossible goals, you may find it easier to reach your savings goal this year. You may have no idea how to do it, but your goal is to figure it out. Side hustles, a new job, or starting a business are all potential starting points.
3. It May Not Be as Hard as You Think
It can be uncomfortable to try something for the first time, so to avoid the doubts of reaching your goals, create a strategic plan. Download and print out our printable to breakdown each impossible goal. Start with your big goals and break them down into mini-goals. For example, if you want to start an online ecommerce store, researching the perfect website platform is a good starting point.
4. What Do You Have to Lose?
If you already live a comfortable life, you may only have experiences to gain and nothing to lose. When embarking on this journey, check in with yourself every month. Note all the lessons you learned and how far youâve come. You most likely will face failures, but youâll be failing forward rather than backwards. Your first ecommerce product launch may not have gone smoothly, but you may know how to improve for the next time around.
How To Set Impossible Budgeting Goals in 6 Steps
If your impossible goal is related to finances, your mindfulness, time, and dedication will be required to put you on a path towards your dream life. To get started, follow our step-by-step guide below.
Step 1: Map Out Your Dream Lifestyle
- Get out a journal and map out your dream life. Some starter questions may be:
- Do you want to afford that house youâve always dreamt about?
- Do you want to have a certain amount of money in your savings?
- Are you hoping to turn your side hustle into a full-time job?
- What do you find yourself daydreaming about?
Track all these daydreams in a notebook and curate the perfect action plan to achieve each goal.
Step 2: Outline Micro-goals to Reach Your Financial Goals
Now, list out mini-goals to achieve your desires. Start with the big âunachievableâ goal and break it down into medium and small goals, then assign each mini-goal a due date. For example, saving $10,000 this year may take more than your current monthly earnings. To achieve this, you may create passive income streams. If that side hustle is to start a money-making blog, you may need to research steps to successfully launch your website.
Step 3: Believe and Act Like Your Future Self
Think of yourself as the future self you want to be. You may picture yourself with a certain home, financial portfolio, and lifestyle, but your current actions may not reflect your future self. Your future self may invest, but your current self is too intimidated to start. To act like your future self, consider doing the research and finding low-risk investments that suit you and your budget.
Step 4: If You Fail, Learn from Your Mistakes
When working towards your dream life, you may hit roadblocks and experience failures. As Oprah explains it, âthere is no such thing as failure. Failure is just life trying to move us in another direction.â While failure may happen, youâre able to learn from it and pivot. Every mistake you make, analyze it in your journal. Note what worked, what didnât, and what you want to do better tomorrow to surpass this roadblock.
Step 5: Track Your Results Consistently
Host monthly meetings with yourself to see how far youâve come. Consider creating a goal tracking system that suits you best. That may include checking your budgeting goals off in our app month after month. Find a system that works for you and note your growth at the end of each month. If youâre putting in the time and hard work, youâll get closer to your goals in no time.
Step 6: Be Patient With Your Budget Goals
Throughout this journey, practice patience. Setting goals may be exciting and motivating, but when youâre faced with failures, you may feel hints of disappointment. To avoid a failure slump, be patient and open to learn from your mistakes. If you didnât make what you wanted from your side hustle the first year, youâre that much closer than you were last year.
Why set your sights on hard goals? Everything feels out of reach until you do it. All it takes is motivation and determination to achieve the impossible. To boost your lifestyle, budget, and drive this New Year, consider setting goals that feel out of reach. Keep reading to see why these goals may be perfect for you. Why Set Impossible Goals for 2021? [The Ultimate New Yearâs Savings Hack] appeared first on MintLife Blog.
Source: mint.intuit.com
Getting Your Finances Back on Track Post-COVID
Itâs safe to say 2020 was a pretty hard year for everyone financially.
Even if your wallet hasnât taken a hit in the last few months itâs likely either your employer or someone in your family has found themselves stretched financially by the effects of COVID.
No point dwelling on the past, though. We may not be able to go back in time and stop COVID happening and ruining our 2020, but we can ensure weâre at least in a better position financially in 2021, avoiding bad credit scores and getting our savings back on track.
Thereâs no better time than now to start planning for post-COVID life, so here are our essential financial tips.
Tips for Getting Your Finances Back on Track
- Draw Up a Budget That Fits Your Lifestyle
- Secure All the Incomings You Can
- Have a Plan for Deferred Payments
- Start Saving Now
- Tips for Businessowners
Draw Up a Budget That Fits Your Lifestyle
Throughout the pandemic, your monthly budget probably changed quite dramatically.
You probably saved on fuel, travel, and evenings out with so many offices and restaurants closedâbut no doubt spent a whole lot more on your utility bills.
As the economy reopens and some sense of normality resumes, you need to restructure your budget to a post-COVID world.
Now, this doesnât mean penny-pinching. COVID may have been kind to you, and reassessing your budget is simply a matter of moving funds that you would have spent on your home into your socializing budget. However, if youâre one of the many people no longer getting some kind of financial support on top of your diminished wage, you need to figure out how youâre going to pay rent, buy food, and cover all the other essentials.
The end of remote working, catching up on vacations, covering childcareâthese are all real-world requirements your budget will need to be able to answer for.
Secure All the Incomings You Can
A huge part of getting your finances back on track properly is about making sure youâre making the most of every incoming payment available to you.
With so many people across the world struggling with a lack of work caused by the pandemic, itâs important to be aware of any possible financial aid available to you.
Most importantly, you should check if there are systems unique to your personal circumstances or line of work. There are businesses and charities with systems in place to provide or acquire support for everyone from professional actors unable to perform throughout the pandemic (such as Actors Fund) to retired veterans who have returned from tours with physical or invisible injuries and conditions (such as Vet Comp & Pen). Whatever line of work you are or were in, there will likely be some level of support available for you.
Likewise, you should start to consider how your talents could be put to good use to make that budget stretch a little further.
Side hustles such as running an Etsy store or becoming an online tutor become massively popular alternative revenue streams for out of work professionals during the height of lockdown. This is still a highly viable way of rebuilding your finances post-COVID. If you have a little bit of cash to invest, it can go a long way.
Have a Plan for Deferred Payments
Pandemic solutions have seen governments, banks, and landlords offering mortgage, loan, and rent deferrals to people who cannot pay them.
As things return to normal, people are going to need a plan to pay off these debts.
First, start by referring to the deferment terms so you know exactly what payment will be expected and if it can be broken up into installments. This will massively affect the overall structure of your budget.
These are perhaps the most important payments youâll be making, as they concern your home, so make sure theyâre priority number one post-COVID.
Start Saving Now
After all, any savings are good savings.
No one can be sure where weâll be in six months or even a year. If we see another major spike across the world it could mean your finances take another hit and you need to dip into those rainy day funds to stay ahead.
Start working out a savings plan that works for you now. Donât plan to give up everything you love for a year to get some extra cash, but, much like a budget, notice where you can cut back.
 Online banks and apps like Monzo and Chime are a great way to save within even realizing it. These apps allow you to set a monthly budget on different types of purchases, sending you alerts when youâre about to break them. So much of budgeting is about self-control and being across your financial situation, so why not take responsibility out of your hands?
Tips for Businessowners
Before we go, here are a few tips for small businessowners who may be worried about how they can secure their enterpriseâs financial security as well as their personal one.
- Find alternative revenue streams for your business. Is there a second service your business could offer to bring in some extra cash, such as gift wrapping for a small online store during the holiday period?
- Make sure youâre not overspending on digital tools. They may have stepped up and helped us host meetings, manage teams, and schedule inspirational social content remotely, but are you paying a subscription fee for an app that doesnât actually boost your business all that much?
- Use freelancers rather than employing new staff. The freelance sector could really use a hand up right now, and freelancers present a cheaper, less permanent way for you to pick up lucrative contracts and projects without investing in hiring and training staff on permanent contracts.
Itâs important to be realistic when financially planning for the end of COVID. We donât know when that will be, and you canât expect yourself to come out of this in better financial shape than youâve ever been. Thatâs an unrealistic pressure.
Follow these tips and make sure youâre making the most of this period of reflection to ensure a healthy financial future for you and your loved ones.
Rodney Laws is an ecommerce consultant with EcommercePlatform.io. He has more than a decade of experience providing marketing advice to online entrepreneurs and businesses. Heâs set up and marketed his own businesses and consulted on crafting campaigns for established companies.
Interested in submitting a guest post to Credit.com? Review our guest post guidelines.
The post Getting Your Finances Back on Track Post-COVID appeared first on Credit.com.
Source: credit.com
21 Ways You Can Learn How To Save Money In College
Looking to learn how to save money in college? With ever rising college costs, it can really help your current and future finances if you learn how to save money.
Tuition for an in-state public college averages around $25,290. Private college tuition costs twice as much, at an average of $50,900, according to Value Penguin. If you want to go to an elite, four-year university, the cost jumps to $68,000 per year.
And, if you’re going to college for something like medicine or law, you may end up paying hundreds of thousands of dollars over the years that you are in school.
As you can see, college can be very expensive.
However, I want you to know that you can learn how to save money in college so you can get a valuable college degree on a realistic budget.
Many students take out student loans to pay for college, and it can be very easy to borrow more than you actually need. While student loans do help you pay for college, having those loans hanging over your head can set your finances back by years and even decades.
And if you’re a parent trying to help your child, I’ve heard far too many stories of parents who go to great lengths to pay for school. Some take out a second mortgage, personal loans, or borrow from their retirement to send their children to college. The problem with this is that these parents are making it even more difficult to retire at their planned age. Remember, you can’t take out a loan for retirement!
College is just very expensive, but for many students it’s an important part of how they work towards a job or career they’ve always wanted. But, I want you to know that you can learn how to save money in college.
By cutting college costs, you can lower your student loan debt, or it can help parents reduce the amount they are borrowing or taking out of savings to pay for their children’s education.
Or, with these tips on how to save money in college, you may be able to attend college without racking up any student loan debt. Remember, that is also possible!
Related articles on money saving plan for students:
- Learning How To Survive On A College Budget
- How I Graduated From College In 2.5 Years With 2 Degrees AND Saved $37,500
- How To Pay Off Student Loans (How I Paid $40,000 in Student Loans in 7 Months)
- How To Balance Working And Going To College
How to save money in college.
1. Think about the value each college will offer you.
I know many students who think about which college their friends are going to or which one is ranked the highest. But, you should think about which college is best for you and your specific major.
Sometimes, the highest ranked or most expensive college may not be the best for your actual major, which can hurt you in the long run and it isn’t how to save money in college.
When thinking about whether or not a college is right for you, here are some things you’ll want to consider:
- Accreditation- This is especially important if you want an advanced degree, such as medicine or law, because accreditation can determine whether or not you can go on to the next level of schooling.
- Degrees- Which ones are offered by the college.
- Cost- This includes the cost of tuition or the program you’re going into, plus whether scholarships or financial aid are available.
- Location- If it’s close to home, can you save my living at home. But if it’s far away, you will need to think about dorm fees and the total cost of living.
- Student to faculty ratio- If you need more one-on-one help with your studies, then this may be an important number to know.
- The expertise of the professors- For me, I always liked having professors who had hands-on knowledge in the fields they were teaching.
- Networking opportunities- A lot of life is about networking, and this is a must for some professions.
There’s a myth that expensive colleges are always better than the cheaper ones. As if higher college costs means that you’ll automatically get a great job, you’ll have an extremely high salary, and more.
One way of learning how to save money in college is to just stop believing in that myth!
In fact, according to an article in The Wall Street Journal:
From the academics [who have studied whether students from elite institutions outperform their peers or not] we know that in terms of future earnings, 1) your choice of field matters more than your choice of college, 2) after controlling for ability, the earnings differences of graduates from elite and non-elite institutions are small at best, and 3) any earnings advantage that may emerge over the long run is difficult to concretely tie back to the effects of one’s college choice.
2. You need to think about the full cost of college.
There is a lot that goes into the full cost of college, and it’s not just the initial tuition cost.
The most expensive school may actually be able to give you more scholarships than a less expensive school. That means the most expensive school may actually be the cheapest in the end, and this is why you need to think about the total cost.
And, there are still many great colleges that don’t come with a high tuition.
There are many factors that determine real college costs, and due to this, you’ll want to think about things such as:
- College tuition- This will most likely be the biggest expense that you pay.
- Room and board- Will you live on campus or not?
- Fees- Whis can include laboratory fees, parking fees, etc.
- Textbooks- Textbooks can easily cost a few hundred dollars each semester.
- Financial aid- Will you receive any?
- Scholarships- Will you apply for any?
Doing those last two things is one of the best ways to save for college, so please apply for scholarships and financial aid!
Considering all of the factors I’ve just listed can help you learn how to save money in college, and when you put them together, it may change your mind on which college provides the best value.
3. Remember that college isn’t the only thing that’s important.
When thinking about how to save money in college, you also want to remember that college isn’t the only thing that’s important. Yes, you definitely want to take it seriously and learn as much as possible, but there are other factors that are extremely important as well.
These other factors may play an even bigger role in helping you land the job you want.
Some of the other points you’ll want to keep in mind include:
- Internships
- Extracurricular activities such as college clubs
- Part-time and full-time jobs
- Leadership opportunities
And more!
With those things on your resume, you may put yourself ahead of others that are applying for the same position. These things are important no matter where you went to college.
Remember, companies want to see that you can apply what you learn and that you actually have experience.
4. Taking community college classes is one of the best ways to save money in college.
When you graduate with a four-year degree, the school name on your diploma will be the name of the college you graduated from. It won’t say, “graduated from here but took some classes at community college.” This is because your community college credits are transferred (if you follow the correct steps as outlined by your school).
If you are wondering how to save money in college, this is a great way to cut college costs.
Whether you are in college already or if you haven’t started yet, taking classes at a community college can be a great way to save money.
Community colleges provide an enormous value. However, many think they are too good to save money by taking classes at a community college.
Usually, earning credits at a community college costs just a fraction of what it would cost at a 4-year college, so you may find yourself being able to save thousands of dollars each semester.
You may only spend $5,000 a year at a community college (most likely even less), which is a huge difference from the costs that were mentioned at the beginning of this article.
There is also a myth that your degree is worth less if you go to a community college. That is not true at all. When you eventually earn your 4-year degree, your degree will only say where you graduated from and it won’t even mention the community college credits. Your degree will look the same as everyone else that attended your college, whether you took a few classes at community college or not. You might as well save money!
I only took community college classes during one summer semester where I earned 12 credits, and I regret not taking more. I probably could have saved around $20,000 by taking more classes at my local community college.
Also, community colleges are great for getting general type credits out of the way, so you’re not missing the interesting and in-depth classes that gives your 4-year college the reputation it’s known for.
If you decide to go to a community college first, always make sure that the 4-year college you plan on attending afterwards will transfer all of your credits. It’s an easy step to take, so do not forget! You should do this before you sign up and pay for any classes at the community college.
Related post on how to save money in college with community college: I Thought I Was Too Good For Community College.
5. Take advantage of high school classes that give you college credit.
One way of how to save money in college starts while you’re in high school. See, many high schools offer dual credit classes that allow you to earn both college and high school credits at the same time. Most of the time, these are done right at your high school, so you don’t have to go out of your way to take them!
If you are still in high school, this is something I highly recommend you look into, as it saves time and it might even be the best way to save for college.
When I was in my senior year of high school, nearly all of my classes were dual enrollment courses where I was earning college and high school credit at the same time. I took AP classes and classes that earned me direct college credit from nearby private universities.
Due to this, I left high school with around 14-18 credit hours (I can’t remember the exact amount). I had knocked out a whole semester of college before even starting. I could’ve taken more, but I decided to take early release from high school and worked 30-40 hours a week as well.
6. Take all of the credits your tuition allows for.
At community colleges, you typically pay per credit hour.
However, at many universities, you pay a flat fee for your college tuition. So, whether you take 12 credit hours or 18 credit hours, you may be paying nearly the exact same price.
This is why I recommend that students who are paying a flat fee tuition take as many classes as you can. Now, you may want to make sure your classes are balanced because 18 credit hours of demanding courses can take a toll on you. But, this will allow you to take full advantage of high college costs.
If you think you can still earn good grades and do whatever else you do on the side, definitely get full use of the college tuition you are already paying for!
7. Apply for aid and scholarships to lower your college costs.
If you want to learn how to save money in college, applying for financial aid and scholarships is one of the most important things to do.
But, according to a study by NerdWallet, for the 2018-2019 school year, students left $2.6 billion of free college money on the table. That was Pell Grant money that students qualify for by filling out the FAFSA, which is easy to fill out and necessary for any financial aid or scholarships.
So, before you start your semester, you should always look into scholarships, grants, and fill out your FAFSA (click here to read my FAFSA tips). Paperwork for the following semester is usually due around spring, so I highly recommend doing this as soon as you can if you are planning on attending college in the fall.
Sadly, many people believe that scholarships are impossible to get. That is just another myth, and it’s probably why so students missed out on so much money last year.
I received around several thousand dollars a year in scholarships to the private university I attended. That helped pay for a majority of my college tuition. The scholarships were easy for me to get because I earned good grades in high school and scored well on tests. I received scholarships to all of the other colleges I applied for as well, just for good grades, so I know you can find scholarships if you do well in school!
And, there are still other ways to find scholarships. You can receive scholarships from private organizations, companies in your town, and more. Do a simple Google search and I am sure you will find many free websites that list possible scholarships.
Tip: Many forget that you sometimes have to turn in a separate financial aid form directly to your college on top of the FAFSA form. Contact your college’s financial aid office and see if there is a separate financial aid form that you should be filling out as well. Don’t forget to do this by the deadline each year!
8. Only take out what you actually need in student loans.
One of the top money saving tips for university students that I recommend is to be careful when it comes to taking out student loans!
Many students take out the full amount in student loans that they are approved for even if they only need half of that amount.
This is a HUGE mistake. If you want to learn how to save money in college by reducing your student loan debt, start by only taking out what you truly need. You will need to pay back your student loans one day, and I know many people who regret taking out more than they need.
I know someone who would take out the max amount each semester and buy timeshares, go on expensive vacations, and more. It was a huge waste of money and I’m still not even sure why they thought it was a good idea.
Just think about it – If you take out an extra $2,000 a semester, that means you will most likely take out almost $20,000 over the time period that you are in college.
Do you really want to owe THAT much more in student loans?
9. Search for cheaper textbooks to lower your cost of college.
There are a lot of college costs, and buying textbooks is one of them.
Students usually spend anywhere from around $300 to $1,000 on textbooks each semester, depending on the amount of classes they are taking and their major. Just one textbook alone may cost as much as $400!
When I was in college, many of my classes required more than one book and each book was usually around $200 brand new. This meant if I were to buy all of my college textbooks brand new, I probably would have had to spend over $1,000 each semester.
I learned how to save money in college by renting my textbooks or buying them used. Renting was nice because I only paid one fee and never had to worry about what to do with the textbook after the class was done, as I only had to return it. I didn’t have to worry about a new edition coming out and the book being worthless. Buying used textbooks was nice because sometimes I could resell them and make my money back.
10. Don’t bring a car to college.
If you don’t need to commute off campus for work, then you may want to think about whether you may be able to realistically get rid of your car. Not everyone in college will need a car with them, and this can be an easy way for how to save money in college.
By not bringing a car, you may be able to eliminate the monthly loan payment, a campus parking permit, fuel, maintenance costs, and more.
11. Use your student ID.
Your student ID is good at many places beyond just your college campus. Before you buy anything, I highly recommend seeing if a company offers a student discount.
Your student ID can be used to save money at restaurants, clothing stores, electronics (such as a new laptop!), at the movies, public transportation, and more. You may receive a discount, free items, and more all just by showing your student ID.
After all, you are paying to go to college and you are paying a lot. You might as well reap all of the benefits of paying those high college costs.
12. Learn how to correctly use a credit card or don’t have one at all.
Many college students fall into credit card debt, but I don’t want you to be one of them.
Credit cards can seem like a good option when you are living on such a low college budget, but this can lead to thousands of dollars of credit card debt. That will eventually seem impossible to get out of due to significant interest charges that keep building up.
In order to never get into this situation, you should avoid credit cards at all costs if you think that you won’t use them well.
You should think long and hard about whether you should have one or not. Just because other students have a credit card doesn’t mean they know what they’re doing! However, if you think you will be good at using them, then there are many advantages of doing so.
Related post: 6 Credit Card Myths You Need To Know The Truth About
13. Get a free checking account.
If you’re paying for a savings or checking account, you should think again.
Opening a high yield savings account is one of the best ways of how to save money in college because it’s actually growing your savings. But, most people have their money in accounts with low rates. Unfortunately, that means many of you are losing out on some easy cash!
With Betterment Everyday, you can start earning 2.39% with a balance as low as $0.01.
How does that compare to the national average savings rate? While it’s actually higher than the ones I listed earlier, it’s still a very sad 0.09%. That is a HUGE difference from what Betterment Everyday is offering. If you are only getting 0.09%, then you are losing out on easy, passive money.
Savings accounts at brick and mortar banks are known for having really low interest rates. That’s because they have a much higher overhead – paying for the building, paying the tellers, etc. Betterment Everyday is an online option, which means they have lower costs, then passing the savings on to you.
Over a 10 year period, that same savings balance with a 2.39% balance would earn you an additional $2,390, whereas a savings account with an interest rate of only 0.09% would earn you a mere $90.
Your money is just as safe in a Betterment Everyday account as it is with a brick and mortar bank. You’re just earning more interest, which is something that everyone wanting to learn how to be rich can take advantage of.
To get started and open a Betterment Everyday account, you will:
- Signing up is super easy. Simply click here and sign up.
- If you join the waitlist for Betterment Everyday Checking, they will boost your Betterment Everyday Savings Account rate to 2.39%.
See, super easy!
Read more at How To Earn Over 20x The National Savings Rate.
14. Find ways to make extra money.
While I wasn’t smart enough to graduate from college without debt, I do know of many amazing people who were able to pay for their college tuition on their own while they were in school. They learned how to save money in college with the tips above, but they also found ways to make money that allowed them to pay their college tuition bill in full each month.
I did work full-time all throughout college. That helped me pay my bills, take out only what I needed in student loans, and go without any credit card debt.
Whether you only have one free hour a day or if you are willing to work 40 to 50 hours a week on top of being in school full-time, there are many options when it comes to earning extra money.
Here are some things you can do to pay for those high college costs:
- Find a part-time or full-time job.
- Look for a paid internship.
- Make money online such as creating a blog, becoming a virtual assistant, etc.
- Become an Uber or Lyft driver – Spending your spare time driving others around can be a great money maker. Read more about this in my post How To Become An Uber Or Lyft Driver.
- Take online surveys. This is something I did in my early 20s. Survey companies I recommend include American Consumer Opinion, Survey Junkie, Swagbucks, Pinecone Research, Opinion Outpost, and Harris Poll Online. They’re free to join and free to use! You get paid to answer surveys and to test products. It’s best to sign up for as many as you can as that way you can receive the most surveys and make the most money.
- Maintain and clean yards. You can make money by mowing lawns, killing/removing weeds, cleaning gutters, raking leaves, and so on.
- Move furniture and find jobs on Craigslist. Movers can earn a broad range when it comes to hourly pay, but it’s usually somewhere around $50 an hour if you run your own business.
- If you love animals, then you may want to look into how to make extra money by walking dogs or pet sitting. With this side hustle, you may be going over to your client’s home to check in a few times a day, you may be staying at their house, or the animals may be staying with you. Rover is a great company that you can sign up with in order to become a dog walker and pet sitter. Learn more about this at Rover – A Great Way To Make Money And Play With Animals.
- Babysit and/or nanny children.
- Sell your stuff.
- Read 16 Best Online Jobs For College Students
Learn more at 100+ Ways To Make Extra Money.
Related tip on how to pay off student loans: I highly recommend Credible for student loan refinancing. You can significantly lower the interest rate on your student loans which may help you shave thousands off your student loan bill over time.
15. Sign up for birthday freebies.
Everyone has a birthday, and you may be able to score a lot of free birthday stuff by simply showing your date of birth date on your driver’s license or by signing up for a company’s email club to receive a coupon for your birthday.
This is a really fun way to learn how to save money in college and it’s easy and free for everyone!
Here are 31 Birthday Freebies You Should Sign Up For.
16. Switch to a more affordable cell phone plan.
Most people overpay for their cell phone plan – they can easily cost over $100 per month.
I know that once you find a provider you like, it can be hard to switch. But, once you know how much you can save with another company while still having great service, this is a no brainer.
If you are looking for a more affordable cell phone plan, then check out Republic Wireless. They have monthly cell phone plans for as low as $15 per month.
I have several family members who are now using Republic Wireless and they love it!
Please read Saving Over $2,000 A Year With Republic Wireless Review for more information.
17. Make a budget.
Budgets help people manage their money better. It’s that simple.
Budgets are great and one of the best ways for you to learn how to save money in college because having a budget will keep you mindful of your expenses and how much money you have in the bank. With a budget, you will know exactly how much you can spend in a category each month, how much you have to work with, what spending areas need to be evaluated, among other things.
You can download a free budget printable here.
Budgets have helped people reach their goals, pay off debt, make more money, retire early, and more. This is one of the college savings tips that will completely shape and change your financial life for the better.
Learn more at The Complete Budgeting Guide: How To Create A Budget That Works.
18. Visit the library.
When you’re in college, the library can often feel like your second home (and not always in a good way). But, did you know that your college or local library can also be a great way to have fun without spending any money.
You can check out the latest bestseller, a classic you’ve been wanting to read, or borrow movies, music, and more. There are actually a lot of libraries now who let you borrow things like cameras, GoPros, even telescopes, and more.
This is definitely one of the best ways to save money in college as all you need is a library card.
19. Find a roommate.
If you decide to live off campus, then finding a roommate is going to be one of the best ways for how to save money in college.
My husband and I have had roommates in the past. While that’s not really as possible now that we split our time living on a sailboat and an RV, I still recommend that anyone with an extra room in their house think about giving it a try.
If you find a roommate while in college, you can save a good amount of money on housing costs. And, depending on your situation, you might even be able to earn a little side income.
If you are interested in renting out a spare room on a short-term basis (such as for vacations), I highly recommend that you check out Airbnb. I know people who are making thousands of dollars a month by renting out rooms on this website.
Related blog post with more saving tips about this topic: A Complete Guide To Renting A Room For Extra Money.
20. Read personal finance books.
This is something you can and should start doing at any age because reading personal finance books can help you in so many ways. Since many schools don’t go in depth on things related to personal finance, books are a great way to improve your financial knowledge.
Personal finance books I recommend reading are:
- Broke Millennial
- The Year of Less
- Meet The Frugalwoods: Achieving Financial Independence Through Simple Living
- Work Optional: Retire Early the Non-Penny-Pinching Way
- The Broke and Beautiful Life
- Real Money Answers for Every Woman
- You Only Live Once
- The Recovering Spender: How to Live a Happy, Fulfilled, Debt-Free Life
You can find the whole list of personal finance books I recommend here.
21. Other ways you can help your child get through college.
If you’re a parent and you’re reading this, then you may be wondering how you can help your child in college but not go broke yourself.
If you cannot afford to pay for your child’s college costs, or if you decide that you just do not want to, there are many other things you can do to help them. You should also read this You Don’t Have To Go Broke For Your Kid’s Education.
I believe that parents should only fund their child’s college education if the parent is on track for retirement.
This is because there are many ways to pay for college (paying for it with cash, student loans, grants, scholarships, etc.), but there is only one way to fund your retirement.
Remember, you cannot take out a loan for your retirement!
This means you should not wreck your retirement plans to help your children through college. You should analyze your financial situation first and where you are on your track for retirement to see if helping your children through college is possible. If it’s not possible, be realistic with yourself and your child.
There are many ways to help your children with college costs that don’t involve paying for their college tuition.
You can:
- Help your child understand personal finance. Helping your child create a budget, use credit cards correctly, and understanding college costs, will help them greatly in life. I recommend reading How To Create a Budget.
- Support them and help them make a plan. Even if you are not offering financial support for college, you can always support your children in other ways. This doesn’t mean that you have to agree with what they do, rather help them by giving advice and coming up with a solid financial and college plan.
- Help your child find ways to make money. There are tons of ways to make extra money, and helping your children find ways to do so can help them pay for college and their living expenses.
- Inform your children about affordable college alternatives. For example, your child may only think they should go to an expensive private university, but it’s important for you to inform them on how to save money in college with more affordable alternatives, such as going to a community college or a state university.
- Help your child apply for scholarships. There are numerous scholarships that your child may qualify for. Some may require them to write essays, whereas others are based on high school grades. Most take very little effort and are given away by the college itself, this makes applying for them a no brainer!
- Help your child in other ways. For some reason, there is this myth that helping your child go to college means you need to pay for everything. Instead of paying for their tuition, textbooks, food, dorm, car, and everything else, set limits on the college costs that you’ll pay for. You can help by giving them emotional support, letting them stay in your home while they are in college, helping them find ways to save money for college, helping them cut their college expenses, and more.
What other ways are there to learn how to save money in college? How much student loan debt do you have?
The post 21 Ways You Can Learn How To Save Money In College appeared first on Making Sense Of Cents.
Source: makingsenseofcents.com
A Step-by-Step Guide to Prepare Your Budget for a Layoff
What would you do if you were laid off from your job today? This question isn’t meant to make you want to hide under your desk, but to encourage you to evaluate your circumstances. What would happen to your financial situation if you suddenly didn’t have an income to rely on?
While it’s not exactly fun to plan ahead for life’s hardshipsâsay, your car breaking down or losing a jobâdoing so can help you stay afloat financially and avoid taking on debt to remedy an already tense situation.
What can you do to prepare your budget for a layoff? These four steps will help you prepare your budget for a layoff and survive a layoff financially:
1. Put some of your paycheck into savings
In order to prepare your budget for a layoff, one of the best things you can do is learn to live on less when you have your typical paychecks coming in. Living paycheck to paycheck is a reality for many, and a habit many promise to break once they earn more. If you can afford it, consider trying to live off only a portion of your paycheck. That way, you can always depend on having extra money to fall back on in the event of a hardship, like a layoff.
Jill Caponera, a consumer savings expert at coupon platform Promocodes.com, suggests paying yourself firstâputting some of each paycheck into savings before you spend any of itâin order to save for an unexpected job loss.
“Put money directly into your savings account the moment you get paid so that you’re never in a position where you’re strapped during a true financial emergency,” Caponera says. Try scheduling an automatic recurring transfer from checking to savings that hits after each payday, or create a direct deposit to savings from each paycheck through your employer.
If living on less isn’t feasible for you right now, start small and focus on taking baby steps to prepare your budget for a layoff. You could start with a money savings challenge and a more attainable goal, like living off of 97 percent of your paycheck and saving the remaining 3 percent. This means that if your take-home pay is $4,000 a month, your goal is to put 3 percent, or $120, into savings monthly and then limit your bills and spending to $3,880. As you get accustomed to that amount, gradually increase the percentage of your paycheck you save each period. Some budgeting experts suggest saving at least 20 percent of your income and living off of the other 80 percent.
If you devote even a small percentage of your paycheck to savings before the bills and discretionary expenses roll in, saving will eventually become habit. You’ll get used to budgeting only with your post-savings take-home pay, and you won’t miss the savings portion of your paycheck.
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âPut money directly into your savings account the moment you get paid so that you’re never in a position where you’re strapped during a true financial emergency.”
2. Save 3 to 6 months of expenses in an emergency fund
Once you’ve gotten used to regularly saving a portion of your income, you can save for an unexpected job loss by building up a solid emergency fund over timeâespecially if you are using an online savings account with a high interest rate. An emergency fund is a dedicated savings account that you only touch in the event of financial hardship, such as a medical emergency or job loss.
Sunny skies are the right time to save for a rainy day.
Start an emergency fund with no minimum balance.
Start Saving
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Christian Stewart, founder of financial coaching site Do Better Financial, recommends having an emergency fund of three to six months of expenses to help you survive a layoff financially.
“The goal is to make sure all your bases are covered, meaning you can pay the bills and proceed with a relatively normal life until you find another job,” Stewart says. She notes the actual amount of money you need to save for an unexpected job loss will vary based on your lifestyle, employment industry and willingness to relocate, since this can dictate how long it could take to find another job.
To build an emergency fund and save for an unexpected job loss, Stewart recommends starting a zero-based budget. This form of budgeting gives every dollar you earn a job, such as paying a bill, funding your emergency account or financing fun and discretionary expenses. In addition to making your emergency fund a priority, this budgeting strategy helps you identify exactly how much you spend within each budget category each month. You can then find areas of careless spendingâperhaps an unused subscription serviceâwhere you could stand to cut back. You could redistribute those dollars to your emergency fund.
“In the event of a layoff, you will have a clear line of sight to regular areas of your spending that can be cut if it takes longer to find a new job,” Stewart says.
After you’re comfortable with the size of your emergency fund and feel like you can survive a layoff financially, you can use any extra savings for a different financial goal, such as saving for retirement or a down payment on a car or home.
3. Find income from a side hustle
Another way to survive a layoff financially is to have a side gig in place. Contrary to what some believe, side hustles do not have to take up an onerous amount of your time. There are actually many side hustles you can do while working full time, such as freelancing in your current field, driving for a rideshare app or tutoring.
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Not only do side jobs create extra cash flow to devote toward savings or debt repayment when you have a full-time job, they also give you an added layer of security to help you save for an unexpected job loss. You might not be able to replace your full-time earnings with your music lesson business, but it can provide you with some predictable cash flow while you interview for a new position.
You could even turn your side hustle into a full-time job if you have a passion project you’ve been wanting to turn into a career. Alternatively, your side hustle turned full-time gig could help maintain your income stream if you plan to take additional time off after a layoffâif you decide to go back to school or make a move to a new industry, for example.
4. Know where to turn for assistance
Being laid off can be a traumatic experience, and if it does happen, it is important to know where to turn and how to make decisions that aren’t rooted in fear or emotion.
“Sit down with a level-headed friend, spouse and/or counselor to process your new financial reality,” Stewart of Do Better Financial says. “If you’re receiving a compensation package, do yourself a favor and work out beforehand where the money will be spent and how long you need it to last.”
Speaking of work benefits, make sure you utilize all of the benefits possible before your layoff goes into full effect, such as getting an annual physical through your health insurance plan.
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âSit down with a level-headed friend, spouse and/or counselor to process your new financial reality. If you’re receiving a compensation package, do yourself a favor and work out beforehand where the money will be spent and how long you need it to last.”
“If you’ve been laid off, or are expecting an upcoming layoff, you should immediately contact your state’s unemployment office to set up your account and start receiving your compensation,” consumer savings expert Caponera says. “While these benefits won’t pay as much as your full-time salary, these funds will certainly help to cover your monthly bills and living expenses while you continue to look for work.”
Each state has different benefits and paperwork requirements, so make sure you’re using your state’s government website to learn more and to survive a layoff financially.
Prepare your budget for a layoff
Facing a layoff can be emotionally and financially draining, especially if you don’t see it coming. The most important thing is to start planning ahead, and prepare your budget for a layoff before it happens.
The post A Step-by-Step Guide to Prepare Your Budget for a Layoff appeared first on Discover Bank – Banking Topics Blog.
Source: discover.com
A Guide To Everything You Need To Know About Home Ownership Costs [Free Download]
Along with the excitement of purchasing a new home, comes the additional costs that you will be expected to pay as a homeowner. Apart from covering the mortgage of your home, you’ll have additional expenses – such as home insurance – that you will be expected to cover. If you’re looking to budget for a home purchase, it’s important that you consider these costs as they can add up to thousands of dollars each year.
To help you make educated decisions when budgeting, we’ve compiled a list of the major home ownership costs in one free, downloadable guide. Get the Home Ownership Costs to Consider guide here.
Home Insurance
Home insurance policies help protect against serious damage and destruction, like fires, leaks, floods, or break-ins. It also protects a homeowner from personal liability. Some banks may offer home insurance products, although you can typically purchase a home insurance policy through a home insurance agent or broker.
Tip: You may get better rates if you use a broker or agent. It’s also important to keep in mind that policies typically renew on an annual basis.
Condo Fees
The cost of maintenance fees should be taken into account when you’re buying a condo. This recurring cost is in addition to your mortgage and impacts how much home you can afford.
Your mandatory monthly fee will vary by your building and square footage. It typically covers:
- Utilities (such as water and garbage collection)
- Building insurance
- Maintenance of common areas (such as the gym, pool, front desk, hallways, landscaping)
- Building reserve fund (covers emergencies and long-term maintenance projects such as a new roof or elevators repairs)
What Are Status Certificates?
If you’re looking to purchase a condo, you’ll want to look into obtaining a status certificate so that you have as much information about the building and your unit as possible before buying. A status certificate provides valuable information about the condo corporation and its financial
situation. It includes details on the budget, legal issues, the reserve fund, maintenance fees, and any fee increases expected in the future.
Tip: You’ll want to carefully review your status certificate with your lawyer before making a purchase.
Property Tax
Property taxes are paid annually by homeowners to their municipality. These taxes are ongoing and are separate from your mortgage. Your annual property tax can often be paid in installments.
Tip: It’s important to remember that this cost is not due at closing, but is a recurring cost.
How Are Property Taxes Calculated?
Your property tax rate will vary depending on the value of your property as assessed by your provincial assessment authority. This is then multiplied by a rate that falls between 0.5% to 2.5%.
How Do You Pay Property Taxes?
You can pay your property taxes either through your mortgage provider or directly to your municipality.
Your Utility Bills
When you purchase a home, you’ll have to set up or transfer your utility bills to your new home. If you live in a condo, these costs may be included in your monthly maintenance fee. Your utility bill will include:
- Hydro (electricity)
- Heat
- Water and Garbage
- Internet, Phone, Cable
For the full details on the home buyer’s journey including examples, advice, pictures and sample calculations, download a copy of our free Home Ownership Costs to Consider Guide here.
The post A Guide To Everything You Need To Know About Home Ownership Costs [Free Download] appeared first on Zoocasa Blog.
Source: zoocasa.com
How to Plan a Budget If Your Home Is a Fixer Upper
When your home is a fixer-upper, it can be difficult to even know where to start with a renovation. The list can be overwhelming—fix the patio, change out the mustard yellow carpet, buy furniture, paint the house. With a never-ending to-do list, planning a budget can seem virtually impossible.
By sorting through your list of wants and needs and focusing on essentials, you can outline a budget that won’t keep you up at night. Here are some tips on how to plan a budget for turning your fixer-upper into your first dream home.
1. Sort through the “wants” and “needs.”
Where do you even start with a renovation budget? With a limited fixer-upper budget, it’s essential to make functionality the first priority. When the roof is leaking and your fridge is dead, this is where the budget begins. First, determine what infrastructure items require repair or an essential upgrade, as these are typically big-ticket items. Next, focus on beautifying projects that will reap benefits in the long run, like bathrooms and kitchens. Hold off on budgeting fancy appliance upgrades and expensive decor if you already have working items—these can come at a later time after you take care of all the essentials.
2. Consider purchasing used over new.
Give your budget more flexibility by going for used over new with certain big-ticket items. Used appliances, for instance, can be found in great condition from other remodels or homeowners upgrading to the latest technology. Used furniture is also a fantastic way to keep your fixer-upper budget low. Don’t forget—sofas, vintage chairs, tables and more can be easily reupholstered and refinished. They’ll look brand new for just a fraction of the cost.
3. Be ready to DIY with a gift card.
As a first-time buyer, there’s a 99 percent chance you’ll be diving into the realm of DIY. Learning one or many DIY skills will not only come in handy with home repairs in the future, but it’s a fantastic way to keep labor costs low. If you’re worried your DIY supply budget will get out of hand, however, shop with a gift card to your local hardware store. That way, you’ll always be working with a fixed amount of money and won’t be tempted to add on any expensive extras. It’s a guaranteed way to keep your budget in check.
4. Get creative.
Fixer-uppers are great hands-on projects, and creative solutions are key for keeping your budget in line. For items like cabinetry that may be in good condition but out of style, get creative with refinishes to bring new life into your space. Give your kitchen a fresh take by painting cabinets in a modern shade, or reface them for a whole new look without the added cost of all-new cabinetry. Replace hardware on cabinetry, furniture and built-ins to make your pieces feel brand new. Even outdated fireplaces, doors, furniture and windows can go a long way with a fresh coat of paint and new hardware. Consider this cheap alternative to help save room in your budget for the fun stuff.
5. Let the professionals help.
Whether you’re starting with the kitchen or diving into a full-scale remodel, don’t be afraid to seek professional help. No matter what your budget, a professional’s advice can help ensure that your renovation has as few hiccups as possible. City codes, minute details and hidden elements can wreak havoc on projects, so let a master guide you through those hurdles instead of trying to blindly tackle them yourself. Don’t let the potential price tag deter you from investing in having expert guidance—many architects and designers have options for paying an hourly rate. This is a great option, especially for fixer-upper and DIY projects, as it allows your plans to be looked over by professionals without the price tag of a full design scope.
Source: quickanddirtytips.com
6 Signs Your Personal Finance Software Makes Life Easier
6 Signs Your Personal Finance Software Makes Life Easier
Finding personal finance software is easy, because there are countless choices in mobile apps, online programs, and finance software you can run on your home computer. But they’re certainly not equal. Personal finance software should make your life simpler, not more complicated, and it should be customizable for your particular life, goals, and needs. You know you’ve found great software when your financial life becomes easier over time. Here are 6 signs your personal finance software makes life easier.
1. You Haven’t Paid a Late Fee in Months
Does your personal finance software let you know in advance of when bills are due? It should be easy to set up automated alerts that tell you a few days before monthly, quarterly, or yearly bills are due, so you can take care of them and avoid annoying and guilt-inducing late fees. Ideally your software should notify you by text, so you’ll be sure and get the message whatever you’re doing and wherever you are.
2. Spending Categories Correspond to Your Actual Life
When personal finance software requires you to shoehorn your actual spending patterns into pre-set spending categories, the result can be confusion and frustration. Look for software that lets you create an unlimited number of spending categories you can customize. Do you buy your employees breakfast once a month? You can make a spending category for it. Are you a coffee or microbrew aficionado? You can make a spending category for it. Your budget should conform to your life, not the other way around.
3. You See How Trimming Budget Fat Affects Financial Goals
Sometimes it just doesn’t feel worth it to hold back at the grocery store after a long day or when buying Christmas presents. But when your personal finance software shows you exactly how disciplined spending helps you achieve your financial goals, like a vacation or paying off a loan, it’s easy to avoid giving in to those little temptations you face every day. When you can see how your discipline pays off, you’re more likely to stick with your good habits.
Start now: Get budgeting software from Mint to help manage your finances and make everyday life simpler by clicking here.
4. You May Have Faced One or Two Painful Truths
Powerful personal finance software can tell you things like how much you spent on fast food last week, or how much you’ve paid in non-network ATM fees this month. Sometimes, getting control of your personal finances means facing some harsh truths, like how much those little extras add up to. Your software should also be able to tell you how much more quickly you can reach financial goals if you cut a certain dollar amount from various spending categories. It’s a great way to stay on track to your goals.
5. You Know Exactly How Close You Are to Meeting Financial Goals
Maybe you want to save for retirement, or build up a down payment on a home. Your personal finance software should show you exactly how close you are to your goal at any time. You should also be able to receive monthly emails that track your progress and see how your everyday spending decisions affect how much you’ll have left over at the end of the month. Don’t settle for software that doesn’t let you track your progress easily.
6. Your Personal Finance Software Goes With You Everywhere
Personal finance software that links your computer and your mobile devices empowers you to make smart spending choices anytime, anywhere. Thinking about buying an item you unexpectedly find on sale? You can check your account balances right on your phone and know instantly if you can afford it. You can also set up convenient alerts that can tell you right away such things as whether you’re approaching your credit limits on your credit cards.
Personal finance software has come a long way since the days you had to manually enter checkbook balances and draft amounts. Today’s software offers an astonishing array of features that not only help you achieve financial goals, but actually make your everyday life easier. And when it links your accounts to your computer and your mobile devices, like Mint does, you have all the budget tools you need, wherever you go.
Start now: Get budgeting software from Mint to help manage your finances and make everyday life simpler by clicking here.
The post 6 Signs Your Personal Finance Software Makes Life Easier appeared first on MintLife Blog.
Source: mint.intuit.com
4 Tricks for Budgeting on a Fluctuating Income
If you have an irregular income, you know how great the good times feelâand how difficult the lean times can be. While you can’t always control when you get paid or the size of each paycheck if you’re a freelancer, contractor or work in the gig economy, you can take control of your money by creating a budget that will help you manage these financial extremes.
Antowoine Winters, a financial planner and principal at Next Steps Financial Planning, LLC, says creating a budget with a variable income can require big-picture thinking. You may need to spend time testing out different methods when you first start budgeting, but, âif done correctly, it can really empower you to control your life,” Winters says.
How do you budget on an irregular income? Consider these four strategies to help you budget with a variable income and gain financial confidence:
1. Determine your average income and expenses
If you want to start budgeting on a fluctuating income, you need to know how much money you have coming in and how much you’re spending.
Of course, that’s the basis for any budget. But it can be particularly important if you’re trying to budget on an irregular income because you may have especially high- or low-income periods. You want to start tracking as soon as possible to build up accurate data on your average income and expenses.
For example, once you have six months’ worth of income and expenses documented, you can divide the total by six to determine your average income and expenses by month.
Many financial apps and websites can help with the tracking, including ones that can connect to your online bank and credit card accounts and automatically pull in your transactions. You may even be able to pull in previous months’ or years’ worth of data, which you can use to calculate your averages.
If you’re budgeting on a fluctuating income and apps aren’t your thing, you can use a spreadsheet or even a pen and notebook to track your cash flow. However, without automated tracking, it can be difficult to consistently keep your information up to date.
2. Try a zero-sum budget
“There are several strategies you can use to budget with an irregular income, but one of the easiest ones is the zero-sum budget,” says Holly Johnson. As a full-time freelance writer, she’s been budgeting with a variable income for over seven years and is the coauthor of the book Zero Down Your Debt.
With a zero-sum budget, your income and expenses should even out so there’s nothing left over at the end of the month. The trick is to treat your savings goals as expenses. For example, your “expenses” may include saving for an emergency, vacation or homeownership.
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“There are several strategies you can use to budget with an irregular income, but one of the easiest ones is the zero-sum budget.”
Johnson says if you’re budgeting on a fluctuating income, you can adopt the zero-sum budget by creating a “salary” for yourself. Consider your average monthly expenses (shameless plug for tip 1) and use that number as your baseline.
For example, if your monthly household bills, groceries, business expenses, savings goals and other necessities add up to $4,000, that’s your salary for the month. During months when you make over $4,000, put the extra money into a separate savings account. During months when you make less than $4,000, draw from that account to bring your salary up to $4,000.
“We call this fund the ‘boom and bust’ fund,” Johnson says. “By building up an adequate amount of savings, you will create a situation where you can pay yourself the salary you need each month.”
3. Separate your saving and spending money
Physically separating your savings from your everyday spending money may be especially important when you’re creating a budget on an irregular income. You may be tempted to pull funds from your savings goals during low-income months, and stashing your savings in a separate, high-yield savings account can force you to pause and think twice before dipping in.
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An easy way to put this tip into action when creating a budget with a variable income is to have all of your income deposited into one account, then disburse it into separate savings and spending accounts. “Transfer a set amount on the first of every month to a bill-paying account and a set amount to a spending account,” Winters, the financial planner, says.
“The bill pay account is used to pay for all of the regular expenses, like rent, insurance, car payments, student loans, etc.,” Winters says. These bills generally stay the same each month. The spending account can be used for your variable expenses, such as groceries and gas.
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When considering your savings accounts, Winters also suggests funding a retirement account, such as an Individual Retirement Account (IRA).
If you’re budgeting on a fluctuating income as a contract worker or freelancer, you may also want to set money aside for taxes because the income and payroll taxes you’ll owe aren’t automatically taken out of your paychecks.
4. Build up your emergency fund
“The best way to weather low-income periods is to prepare with an adequate emergency fund,” freelancer Johnson says. An emergency fund is money you set aside for necessary expenses during an emergency, such as a medical issue or broken-down vehicle.
Generally, you’ll want to save up enough money to cover three to six months of your regular expenses. Once you build your fund, you can put extra savings toward other financial goals.
When you’re budgeting on a fluctuating income, having the emergency fund can help you feel more at ease knowing that you’ll be able to pay your necessary bills if the unexpected happens or when you’re stuck in a low-income period for longer than anticipated.
A budget can make living with a variable income easier
It can be challenging to budget on an irregular income, especially when you’re first starting. You might have to cut back on expenses for several months to start building up your savings and try multiple budgeting methods before finding the one that works best for you.
“Budgeting requires a mindset change regardless of which type of budget you try,” Johnson explains.
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“The best way to weather low-income periods is to prepare with an adequate emergency fund.”
However, once in place, a budget on an irregular income can also help free you from worrying about the boom-and-bust cycle that many variable-income workers deal with throughout the year.
The goal is to get to the point where you can budget with a variable income and don’t have to worry about when you’ll get paid next because you set your budget based on your averages, planned ahead during the high times and have savings ready for your low times.
The post 4 Tricks for Budgeting on a Fluctuating Income appeared first on Discover Bank – Banking Topics Blog.
Source: discover.com
Financial Lessons Learned During the Pandemic
2020 has shaped all of us in some way or another financially. Whether it is being reminded of the importance of living within our means or saving for a rainy day, these positive financial habits and lessons are timeless and ones we can take into the new year.Â
While everyone is on a very unique financial journey, we can still learn from each other. As we wrap up this year, it’s important to reflect on some of these positive financial habits and lessons and take the ones we need into 2021. Here are some of the top financial lessons:
Living Within Your Means
Itâs been said for years, centuries even, that one should live within one’s means. Well, I think a lot of people were reminded of this financial principle given the year weâve had. Living within your means is another way of saying donât spend more than you earn. I would take it one step further to say, set up your financial budget so you pay yourself first. Then only spend what is leftover on all the fun or variable items.
Setting up your budget in the Mint app or updating your budget in Mint to reflect the changes in your income or expenses is a great activity to do before the year ends. Follow the 50/20/30Â rule of thumb and ask yourself these questions:
- Are you spending more than you earn?
- Are there fixed bills you can reduce so you can save more for your financial goals?Â
- Can you reduce your variable spending and save that money instead?
The idea is to find a balance that allows you to pay for your fixed bills, save automatically every month and then only spend what is left over. If you donât have the money, then you cannot use debt to buy something. This is a great way to get back in touch with reality and also appreciate your money more.Â
Have a Cash Cushion
Having a cash cushion gives you peace of mind since you know that if anything unexpected comes up, which of course always happens in life, you have money that is easy to liquidate to pay for it versus paying it with debt or taking from long-term investments. Having an adequate cash cushion this year offered some people a huge sigh of relief when they lost their job or perhaps had reduced income for a few months. With a cash cushion or rainy day fund, they were still able to cover their bills with their savings.
Many people are making it their 2021 goal to build, replenish, or maintain their cash cushion. Typically, you want a cash cushion of about 3- 6 months of your core expenses. Your cash cushion is usually held in a high-yield saving account that you can access immediately if needed. However, you want to think of it almost as out of sight out of mind so it’s really there for bigger emergencies or opportunities that come up.
Asset AllocationÂ
Having the right asset allocation and understanding your risk tolerance and timeframe of your investments is always important. With a lot of uncertainty and volatility in the stock market this year, more and more people are paying attention to their portfolio allocation and learning what that really means when it comes to risk and returns. Learning more about which investments you actually hold within your 401(k) or IRA is always important. I think the lesson this year reminded everybody that itâs your money and it’s up to you to know.
Even if you have an investment manager helping you, you still need to understand how your portfolio is allocated and what that means in terms of risk and what you can expect in portfolio volatility (ups and downs) versus the overall stock market. A lot of people watch the news and hear the stock market is going up or down, but fail to realize that may not be how your portfolio is actually performing. So get clear. Make sure that your portfolio matches your long term goal of retirement and risk tolerance and donât make any irrational short term decisions with your long-term money based on the stock market volatility or what the news and media are showcasing.
Right Insurance Coverage
We have all been reminded of the importance of health this year. Our own health and the health of our loved ones should be a top priority. It’s also an extremely important part of financial success over time. It is said, insurance is the glue that can hold everything together in your financial life if something catastrophic happens. Insurances such as health, auto, home, disability, life, long-term care, business, etc. are really important but having the right insurance policy and coverage in place for each is the most important part.
Take time and review all the insurance coverage you have and make sure it is up to date and still accurate given your life circumstances and wishes. Sometimes you may have a life insurance policy in place for years but fail to realize there is now a better product in the marketplace with more coverage or better terms. With any insurance, it is wise to never cancel a policy before you a full review and new policy to replace it already in place. The last thing you want is to be uninsured. Make sure you also have an adequate estate plan whether itâs a trust or will that showcases your wishes very clearly. This way, you can communicate that with your trust/will executorâs, beneficiaries, family members, etc. so they are clear on everything as well.Â
Financial lessons will always be there. Year after year, life throws us challenges and successes to remind us of what is most important. Take time, reflect, and get a game plan in place for 2021 that takes everything you have learned up until now into account. This will help you set the tone for an abundant and thriving new financial year.Â
The post Financial Lessons Learned During the Pandemic appeared first on MintLife Blog.
Source: mint.intuit.com