#i also need to put funds aside for a down payment of a car

[simple-and-cozy-life]

I think I might have a conversation about getting engaged or at least having the thought of setting aside money for a wedding.

I don't want to rush my love and he can propose when he's ready, but I want to see if he'd be interested sooner than later so I can get some plans in place.

It'll be two years until I finish up with my master, but I am going to be busy and I'm not sure if I can plan a wedding while stressing about school.

I also can wait and see how grad school treats me.

I'd also like the clarity of plans for the future and something to work towards.

It would also be so much easier to explain that we're engaged instead of being in engagement limbo of "we're engaged, just not officially".

I might at least mention something to him when we have a three hour car ride to his extended family this weekend.

Any thoughts, friends?

[rimouskis]

How do u make your yearly budget ? I remember you posting about your budget spreadsheet once. Pls I am v interested on how you set it up

I simply must ask if you're the FBI agent in my phone, because I genuinely just sent a message to a friend saying how excited I was it's the end of the month, meaning tomorrow I get to start with a fresh new slate in my budget hahaha

alright let's talk:

I don't do a yearly budget, technically! I budget month-per-month. There are lots of styles of budgets—some allowing for a yearly/more Long Term view—but what worked for my income level was a month-based system.

I lurked on r/personalfinance on reddit for a long while and actually pilfered my budget template from there!

I use this one, which I like both because I've used it for five years and because it's just plain ol' simple. I don't need charts to automatically populate and I don't want to categorize every purchase I make. I just want to see how much money I have per month and how much I'm spending.

That's also crucial to how I personally do budgeting. I don't set aside $X for food and $X for activities and $X for going out or whatever every month. That isn't productive to me; my life looks different every month depending on what's going on. I don't use my budget to be prescriptive; outside of my fixed expenses (rent, utilities, etc.) I just use my budget to track 1. where my money is going and 2. how much of it I have left.

If you want something with a bit more frills, there are lots of other options (one, two, three) on reddit, but I've [personally] found all their bells and whistles overwhelming. If they have useful features you want to use (like, some will have tabs for you to track debt and payments toward it), you can experiment with them, but I don't recommend them for someone new to budgeting.

...I also don't inherently recommend my preferred spreadsheet, either. It doesn't work for everyone. I've shown it to some friends and they almost immediately knew it wouldn't work for them. The reason it works for me is because I am kind of neurotic about budgeting.

To me, "peace of mind" is maintained by having a really close eye on my finances. That means that I track what I spend daily. I manually input every purchase into the spreadsheet. I manually put every paycheck into the spreadsheet. I keep the Google Sheets app on my phone for this very purpose.

That isn't something everyone's willing to do, and there's no shame in that—we all find the different tools that work best for us! But if you don't think you're able to keep up with manually tracking every cent you make and spend, I don't think that this method will be good for you.

If you need more automation in your budgeting, where you can get things autofilled and so on and so forth, I would have pointed you towards Mint, which I've heard good things about, but it's sadly shutting down this March. The article I linked provided an alternate recommendation, but I can't personally vouch for any of those services.

I've been tempted by YNAB a time or two — I like the idea that they intentionally work you towards living off of old paychecks instead of the money you earn month-of [which is a financial goal we should ALL strive for, even though it can be very hard], and I like that they encourage giving every dollar a "job", but you don't NEED their service to do either of those things. I don't like paying money to save money, you know? lol

I keep a secondary, simple spreadsheet with my "rolling funds" in it — money I set aside every month (which I input as a monthly "expense" in my normal spreadsheet) which I allocate to specific funds, like car funds, travel funds... I even had a "hockey game fund" for a few years, haha.

I prefer that method to paying for a service to do it for me. I'm sure YNAB has some nice bells and whistles, and it's clear MANY people love being integrated into their system, which has some automated bits that definitely make budgeting "easier," but I like Ye Olde Spreadsheet. Having to input every purchase keeps me accountable, I feel. Also it sometimes discourages me from spending money, haha, which is probably a good thing in the long run.

idk. I'm a huge advocate for budgeting. I know it can be really hard for some people, but I sincerely think there's some budgeting method out there that will work for you, you know? I credit my budget spreadsheets for keeping my head above water during the many times where money was/is tight. Knowledge is power and all that.

Not to sound like a #girlboss shilling my financial advice on tiktok (of which there are too many), but being aware of where your money is going is sincerely the biggest, most important step you can take towards building financial safety for yourself. My budget saved my ass this last year.

If you have any other questions, shoot them my way. I know it can seem daunting, but I totally think it's worth it! <3

[peggysousfan]

Opinions or Advice, please?

Tbh I need some more opinions because honestly my friends at work may be a little biased.... So long story short my mom forces me to pay rent twice a month. To some that may not be a big deal since I’m almost 21, but here’s my issue and I’ll break it down.

My mom is a retired Army Veteran who gets a check every month for compensation. She makes around $3000- $4000 a month (Which is not taxed because it is from the government itself.) Now my dad makes around $2000 - $3000 twice a month since he works a job and gets paid every two weeks. (This is after taxes so he makes quite a bit)

Now I make maybe $1000 a month which is less than $600 every two weeks. I’ll make $550 if I’m lucky every two weeks because I’m on a biweekly pay as well! 

I have credit card debt because my mother has pressured me numerous times to use it while we are out together running errands. Especially when I was unemployed and could barley make my minimum payments (Which my mom had to help me pay until I found a job) Now here’s a kicker... I own 4 credit cards and use 3 different third-party payment plans to pay for large expenses. Now currently she has a loan in my name using one of these third-party options... And three of those credit cards I only have because she needed them and couldn’t use her own anymore. 

She does not pay me for these credit cards that she made me take out. I pay them because they are in my name. I also now have my own phone bill which this month was $182 ($82 of which is not mine to pay, it’s my cousins) My mother forced me to get a phone for my cousin and add him on my bill which increased it. He has agreed to help pay it but I always have to pay my bills as soon as my check hits, therefore I will get some money back. Which is a plus side I admit. But he also has no job now so my mother has to help pay the difference which I know she is unhappy about.

To round it up I pay almost $500 a month on these credit cards and third party sources (When I have those small loans taken out. As of now the only loan out is my mothers and it’s in my name)

We never came to a set upon number to what she wants me to pay, she gaslights me into saying I should pay whatever I want to pay, so to be generous(And try to give her as much as I can without her being angry it’s not enough) I try to pay $150 every two weeks, so $300 a month... leaving me with a little over $200 a month for myself.  And I will say this, I only ever have enough every two weeks to save and put away $10 because I’m trying to save for a car and an apartment. 

In America this isn’t anything. I only have maybe $160 saved up and that took me over half a year to save. Like i said it’s barley anything but i try to set some funds aside if possible.So that’s $20 a month i put away, leaving me with $180 a month for myself at most.

Now my latest check was smaller than I anticipated it would be, taxes ate much more than I calculated they would. So I had to pay her less rent again. Last time I could only afford $50, and this time $100. Now she is cussing me out over text (First thing in the morning after I transferred the funds) because it wasn’t enough. She doesn’t believe me when I say I don’t make anything and my bills take up most of my check. The only reason I didn’t send the extra $50 was because after my bills are all paid, I will have $67 left for myself. And this will have to last me 2 weeks. 

Now my mom also tells me to grab groceries sometimes when I leave work( I work in a grocery store btw) Therefore the money I have left over after bills isn’t always for me. Most often its for her and the house, or my cat. And with inflation so high I have to skip lunch more often than not to make sure i have money in my account for her in case she needs me to pay something for her. And I’m not a breakfast eater so I am left to eat one meal a day for over a week.

She says that she stays broke to make sure her house runs and her animals and kids are taken care of. Now I will say her mortgage did go up, which is horrible and I do feel sorry for her. It’s not fair and this country is going to shit, and we as citizens are paying the price. Once she told me her mortgage went up it made sense why she wanted me to pay her rent. But my co-workers say it isn’t my responsibility to help pay her bills and she shouldn’t make me feel bad for trying to save money for myself.

My mom, when she’s angry, says she wants me to get out and that I need a life, but yet I can;t do anything or go out if it affects her life, her household, and her plans. She belittles me and acts entitled as if I owe her every penny I make. Time out of my life, work I put into my job, money I earned. I owe it to her to help her pay her bills... but she makes almost 4 times as much as I do. Not including what my dad makes as well... 

We do live on a farm and expenses go to that as well, but my mom doesn’t know when to stop buying animals (Particularly dogs) She doesn’t think of the consequences of the costs and the lack of space in her small home. Most of her expenses could be avoided if she didn’t take on so much, but she refuses to listen to any of us when we say its not a good idea to get more animals. She says its her money and she’ll use it how she wants, and getting more animals will be hard but it’s worth it

But then turns around and says I owe her.

And I will add this. The rent money I send her she almost always uses it on Starbucks and Dunkin’ Donuts. I know for a fact the last 4 times I have paid her, she has gone out and used my rent money for take out. Not bills she’s struggling with or on animal feed, but luxury. Half the time I won’t even get any because I’m at work. If I’m not she will get me something. I only ever agree because if I refuse she will get angry.

I know this was a lot but I wanted to be as thorough as I could for your input. Honestly I don’t expect anyone to read or comment but... if you do, Am I wrong to be upset here? Should I try and pay her more? Or should I save up and try to start my own life? Opinions or advice please?

[southvalparaisocare]

The Ultimate Guide to Buying a House in Valparaiso, IN

I've lived in Valparaiso, IN my entire life, and I can tell you from personal experience that it's a great place to live. There are so many things to do here! Our weather is milder than some other parts of the country, but it's still exciting enough that you don't get bored with the seasons. On top of that, we have a lot of cultural offerings and plenty of fun activities for families with kids. So if you're thinking about buying a house here… well then we have something in common! Because I know there are lots of questions that come up when buying your first home: Where am I going to put all my stuff? How much should I spend? How long will it take me to find one? Will there be enough room for our dogs? To answer these questions and more (yes there will be room for your dogs!), let me walk you through everything you need to know before purchasing your very own abode in Valpo:

What are you looking for in your new home?

You may have some specific criteria that you're looking for in a new home. For example, if you want to be able to walk or bike to work, then the location is obviously important. Or maybe the size of your family has changed and now it's time for something bigger than what you currently live in--or smaller! Maybe there are certain amenities like an extra bedroom or bathroom that would make life easier for everyone in your family (and who doesn't want that?).

You should also consider how important it is for schools nearby to be rated well by their respective districts; this can help determine whether or not it's worth paying more money per square foot just because those schools are good ones! If public transportation options are important to you and/or any other members of your household who might use them frequently (elderly parents? Younger children?), then take note when planning out where all these things might fit into your new budget before making an offer on any house listings near Valparaiso IN

How much house can you afford?

The first thing to consider when buying a home is how much money you have to spend. You can't buy anything if you don't have any money to put down, so it's important that you set aside some funds for the down payment and closing costs before starting your search.

How much house can I afford? There are multiple factors that determine how much mortgage payments will cost each month:

Your income (and therefore, your ability to make monthly payments)

How much debt you already have on credit cards or other loans (the more debt you have, the less likely lenders will be willing to lend additional funds)

The interest rate of the loan being applied for (higher rates mean higher monthly payments)

The length of time until repayment is due (longer terms lead to lower monthly payments).

What does the school district look like?

The school district is an important factor to consider when deciding on a home. If you have children, it's important to look at the test scores of the schools in the area and how they compare with other districts. You can also find out more about how well each school performs by looking at its rating on GreatSchools.org or Niche.com (both of which will give you information about graduation rates as well).

Another thing to consider is teacher-to-student ratio--the lower this number is, the better quality instruction your child will receive from their teachers!

How close is the nearest grocery store?

The nearest grocery store is located just three miles away, and it's open from 9am-8pm Monday through Saturday and 11am-6pm on Sunday. The cost of transportation to get there is about $2.50 in Uber or Lyft, which makes it very accessible for residents who want to buy groceries but don't have cars.

The types of food sold at this store include fresh produce, meats and dairy products; dry goods such as pasta and canned goods; personal care items like toothpaste; cleaning supplies for your home; pet food if you own animals (which we recommend against).

How close are the nearest restaurants and bars?

If you want to live in a neighborhood with restaurants and bars nearby, then Valparaiso has what you need. There are several within walking distance of your new home.

Distance: The closest restaurant is less than 1 mile away from your house

Distance: The second-closest restaurant is about 2 miles away from your house

Where are common household amenities located (ie. laundry facilities)?

How close is the nearest grocery store?

How far is it to your favorite restaurant and bar?

Are there schools in your neighborhood, and what are they like?

What kind of house can you afford, based on your income and savings goals?

There are many things to consider when buying a house.

Buying a house is a big decision, and it can be overwhelming to consider all of the factors that go into making it. In this guide, we've gathered information on some of the most important considerations for buying a home in Valparaiso, IN.

South Valparaiso - Immediate & Urgent Care Clinic is a full service walk-in clinic located in South Valparaiso, Indiana. Our goal is to provide quality care for individuals of all ages and to make their experience as pleasant as possible. Our staff members are friendly, knowledgeable, and experienced. South Valparaiso - Immediate & Urgent Care Clinic is a walk-in clinic that provides care for minor illnesses and injuries. We are open 7 days a week and accept most health insurance plans.

South Valparaiso - Immediate & Urgent Care Clinic 1451 W Morthland Dr, Valparaiso, IN 46385, United States (219) 286-3880 https://www.comhs.org/

[apolonia102812-newsletter]

You received a life insurance benefit: 8 ways to use it wisely

Life insurance proceeds can help alleviate a major source of stress after the loss of a loved one, giving the newly bereaved time to tend to their emotional needs without fretting over their finances.

But the sudden influx of a large amount of money can also present challenging decisions. Before determining whether to save, spend, or invest those dollars, a careful review of the beneficiary’s assets and objectives is in order, said Tim Sullivan, founder and chief executive officer in Shelby Township, Michigan.

“We do a complete financial analysis with our clients who receive a life insurance benefit, so we can look at their whole financial picture to determine what makes sense for them before they act on any choices available,” he said in an interview. “There are a lot of ways to use it.”

That kind of analysis can help determine not only how the life insurance payout should be used, but also how the death benefit should be collected.

Generally, a life insurance death benefit payout can be made out in the form of a lump sum, as an annuity, or in the form of regular installments.

Is a life insurance payout taxable? As a rule, life insurance death benefits are distributed to beneficiaries income tax-free, and there are no restrictions for how those proceeds are used.

First move: Wait

If you receive a life insurance payout, the best way to ensure that those proceeds get put to the most appropriate use is to delay any immediate financial decisions, said Sullivan.

“The first thing you should do is hit the pause button,” he said. “You are going through the loss of a spouse or family member, so you’re not necessarily thinking clearly. You need time to figure out what the purpose of that money should be.”

Declaring the death benefit off-limits for the first few months may also help beneficiaries resist a spending spree.

“A good number of people who get a life insurance payout have never received that amount of money before and some run out and buy a sports car or spend it foolishly,” said Sullivan. “They choose instant gratification instead of stopping to say, ‘Wait a minute. I don’t have anything set aside for retirement or my kid’s college education.’”

Taking the time to research options and gather advice from knowledgeable sources can help beneficiaries make an informed decision.

Option 1: Pay off debt

If you’re buried in debt, for example, it might make sense to take the lump-sum payout and rid yourself of high-interest credit card balances or student loans that are weighing you down, said Bryan Bibbo, a financial professional in Avon, Ohio.

That liberates disposable income that can be redirected to a retirement account or a savings account for short-term goals, such as a down payment for a house.

“If there is credit card debt or high-interest loans, this is the first place any life insurance proceeds should probably be used,” suggested Bibbo in an interview. “This will not only eliminate the debt, but also lessen monthly expenses.”

It’s all about return on investment, he said. Typically speaking, you can’t earn more overall money investing if you’re paying interest on a revolving credit card balance, Bibbo explained.

“There is no investment that will consistently produce 20 percent or higher returns like the credit card companies are charging,” he said.

Option 2: Create an emergency fund

A windfall of any kind, like a life insurance benefit, is also an excellent opportunity to start or shore up your emergency fund, if you have not done so already.

A portion of your life insurance policy benefit can potentially be placed into a liquid, interest bearing account (like a savings or money market account) that can be used to cover future financial emergencies. Such savings help ensure that unexpected medical costs, home repairs, or a temporary job loss down the road will not upset your savings plan — or worse, sink your household into debt.

“Having money in a savings account is crucial for your financial well-being,” said Bibbo. “It is important to have an emergency fund with at least $10,000 to $20,000 in case your car breaks down or you need a new furnace.”

Many financial professionals recommend that working Americans have at least three to six months’ worth of living expenses set aside in an emergency fund, even more for the self-employed and those who lack income stability.

Option 3: Purchase an annuity

Some who receive a life insurance death benefit, of course, need those proceeds to help pay for monthly living expenses.

That may be particularly true for young families that need to replace the breadwinner’s paychecks or for retirees who lost a second source of household income when their spouse died and stopped collecting a Social Security check.

In those cases, it may make sense to use the life insurance policy death benefit to purchase an annuity.

There are different types of annuities aimed at accomplishing different goals. Some annuities focus on providing a guaranteed income stream that begins either immediately or in the future. Others are designed to help you accumulate savings for long-term goals like retirement.

Annuities, however, are complex. If you are considering one, make sure to read any marketing material that relates to that particular annuity carefully. It is also wise to consult a financial professional who can guide you on your options.

Option 4: Collect installments

Installment payments can provide similar income guarantees to beneficiaries. Also referred to as a systematic withdrawal, the life insurance company might, for example, pay out 10 percent of the total death benefit annually over 10 years. Generally, the portion of the death benefit that has not yet been paid out continues to earn interest for the beneficiary.

But be aware that while the death benefit itself may not be subject to income tax, any interest earned by those who elect an installment payout option may be taxable.

Option 5: Invest for growth

Those who don’t need their life insurance policy benefit immediately might instead opt to take the lump-sum payout and invest it (either in part or in full) in a mix of stocks and bonds for potential growth. Here again, a financial professional can help you determine what investment mix might be most appropriate for you given your age, goals, and tolerance for risk.

If you are not fully funding your 401(k) and IRA, for example, life insurance proceeds can help supplement your savings so you can contribute a greater percentage of your earned income toward retirement.

“Using life insurance proceeds to plan for your own retirement can create a huge amount of wealth,” said Bibbo.

An investment in a diversified stock portfolio through a taxable brokerage account might also generate compounded growth over time that can help you fund long-term goals, like buying a vacation home or retiring at age 65.

A 40-year-old who invests $100,000 in a taxable brokerage account and never invests another dime could have $424,000 after 25 years, assuming a hypothetical 7 percent annual rate of return, according to the Bankrate.com return on investment calculator.

Option 6: Children’s education

Beneficiaries could also put a portion of their payout into a college fund for their children’s education. A one-time $50,000 investment in a 529 college savings plan would potentially double to $101,000 over 12 years, assuming a 6 percent annual growth rate, according to the 529 calculator on CalcXML.com.

Contributions to a 529 plan are made on an after-tax basis, but earnings and distributions are tax-free if used to pay for qualified education expenses.

“If you have extra funds from life insurance proceeds, putting that money in a 529 or UTMA account for a child will help their future,” said Bibbo. UTMA, or Uniform Gift to Minors Act, accounts are effectively custodial accounts that are used to hold assets for minors until they reach adulthood.

Option 7: A combination approach

For others, if the death benefit is large enough, a combined approach might be most appropriate.

For instance, a beneficiary could use part of a death benefit to create a guaranteed income stream through an annuity or installment plan aimed at covering living expenses for 12 to 15 years. At the same time, he or she could invest the remaining part of the death benefit in the stock market for upside potential.

In theory, that strategy would enable the beneficiary to cover short-term living expenses, while giving the invested portion of the death benefit sufficient time to generate potential returns (and ride out any Wall Street downturns). If the investment portfolio generates a reasonable rate of return over that 12 to 15 years, it could potentially help provide another decade’s worth of income.

Of course, that strategy requires the beneficiary to accept a certain level of risk in exchange for the opportunity to potentially generate higher returns.

Financial experts say beneficiaries sometimes forget that being too conservative exposes them to financial risk, too. That’s because they are denying their money an opportunity to generate adequate returns to offset a possible loss of purchasing power due to inflation. Investing exclusively in municipal bonds, for example — which are considered a low-risk, low-return investment — might not produce the kind of returns a beneficiary needs to cover their living expenses over the long term.

As with any investment strategy, it’s a good idea to seek guidance from a trusted financial professional.

Option 8: Establishing a legacy

Others who are fortunate to have saved enough to provide for their own financial needs might wish to use their life insurance proceeds to support a favorite charity or organization, instead.

This can be done through direct donations of the death benefit or by using that benefit to purchase new life insurance, which could provide control advantages.

For instance, someone could purchase a permanent life insurance policy, such as a whole life policy, and designate a charity as the beneficiary after they die. The donor would retain ownership of the permanent policy during his or her lifetime, allowing them continued access to the policy’s cash value.

Or, the policyowner could donate any dividends that particular whole life policy generates during their lifetime to the charity or charities they choose. The donor would not necessarily need to name the charity as a beneficiary of the policy.

Conclusion

Life insurance proceeds can solve many needs, giving beneficiaries the resources required to put their financial house in order after the loss of a loved one.

To determine how best to put those dollars to work, however, it’s important to seek guidance from a professional and to consider your financial goals.

Credits: Shelly Gigante

Date: Oct 1, 2021

Source: https://blog.massmutual.com/post/insurance-proceeds-options

[paulckrueger]

Debt consolidation: How does it work and is it right for you?

When you have debts everywhere you turn, it can feel like you’re completely swamped. Your hands are tied every payday as you funnel money into paying off debts, leaving you with no room to save.  

That’s why a lot of people turn to debt consolidation, which is when you use a loan to pay off all of your debt — and it can seem like a godsend.

But wait, how is ANOTHER debt supposed to help?

Of course, you’re right to be suspicious. The thing is, it can help but only if you do it right. Do it wrong and you’ll be kicking yourself from a position worse than you’re in now. So, should I consolidate my debt?

Debt consolidation can work as a way to pay off debt faster. However, if you’re not disciplined and look for help in the wrong places, you’ll end up spending MORE time paying off your debt.

Let’s take a look at what debt consolidation is, how to consolidate debt, the pros and cons, where to find a reputable organization to help you, and ways you can get out of debt fast.

Bonus: Ready to ditch debt, save money, and build real wealth? Download our FREE Ultimate Guide to Personal Finance.

What is debt consolidation?

Debt consolidation combines all of the debt you owe into a single payment with a lower monthly interest rate. This typically works by taking out another loan in order to pay off all of your other debt.

Let’s say you have debt across three credit cards and you owe the following:

Credit card A: $2,000 at 10% APR

Credit card B: $1,000 at 20% APR

Credit card C: $1,000 at 15% APR

Each month, you’re contributing $100 to each card for a total of $300 — however, a portion of each is being eaten by interest:

Credit card A: $16.67

Credit card B: $16.67

Credit card C: $12.50

So in all you’re paying $254.16 towards your debt rather than the full $300.

With debt consolidation, you take out a loan of $4,000 and pay off ALL of the above debt — and you get a lower interest rate for the loan at 10%.

Now each month when you contribute $300 you’ll pay $266.67 towards your debt rather than just $254.16.

In theory, this means you’ll be able to pay off your debt faster.

The interest rate you’re able to get depends on which type of loan you attain:

Secured loan. This is a loan where you put up an asset (e.g., car or home) as collateral. If you default on your loan, your creditor will repossess said asset.

Unsecured loan. This is a loan that just uses credit. As a result though, you might end up with higher interest rates than if you had a secured loan.

If you want to get your debt consolidated, you’ll have to go through one of the two routes above — which we’ll get into later.

Before we do that though, it’s important you know the dangers around consolidating your debt.  

Bonus: Ready to ditch debt, save money, and build real wealth? Download our FREE Ultimate Guide to Personal Finance.

The problem with debt consolidation

But before you click on one of those scammy internet ads marketing “DEBT CONSOLIDATION — BE DEBT FREE IN 3 HOURS,” consider the big drawbacks to debt consolidation:

1. It could take longer to pay down your debt

If there’s anything we’ve learned about human psychology over a decade of studying behavior and personal finances, it’s that things like that are easier said than done.

For example, if the average person ends up saving $300 in interest payments because of debt consolidation, do you think they’ll use that extra money towards their debt OR do you think they’ll end up spending it?

Most likely, the latter.

Human willpower is limited. It’s the same reason why cutting out lattes or skipping lunch to save money doesn’t work.

A person with 300 “extra dollars” might end up just blowing it on something else.

What happens then is it takes longer to pay down debt. This results in even MORE fees they have to pay.

Aside from diminishing willpower, many debt consolidation loan companies offer up longer loan terms than people realize. So while the interest rate is lower, they end up paying more because they didn’t take into account how long they’d have the loan for.

2. You could lose your home or car

If you decide to put your car or home down as collateral you stand to lose much more than a few thousand dollars off the life of your loan.

A home equity loan is also known as a second mortgage. Taking a second mortgage out on your home means you risk losing your house if you fail to make payments.

Of course there are some advantages to going this route. For one you can deduct the interest payments from your home equity loan from your taxes. Plus you’ll be able to get a lower interest rate than if you went the unsecured route.

Overall, though, it’s just not worth the risk — especially when there are better ways to go about it.

3. Your credit score will suffer

There are a few things that go into making a great credit score. One of them is your credit history — or how long you’ve had credit for.

It actually accounts for 15% of your overall score.

That might seem small but consider this: If you get rid of a bunch of different lines of credit at once, your credit score is going to take a huge drop. That drop gets bigger with more and more lines of credit you close.

How do you know if debt consolidation is right for you?

Debt consolidation can be a great way to plan your route out of debt. But that doesn’t mean it’s the perfect solution for everyone. 

The benefits of debt consolidation are hard to argue with. You can simplify your debt, save money on interest, only deal with one creditor, and (hopefully) clear your debt faster. But there are pros and cons you need to know about before you make this decision.

It can be the best move for some, but worse for others. 

Signs debt consolidation is right for you

You have high-interest debts

The number one sign that debt consolidation is a good option for you is if you have several high-interest debts. Why pay interest on several debts when you can pay it on just one?

If you know you can secure a lower interest loan, it makes sense to consolidate your debts. 

According to Experian, the average personal loan interest rate is 9.41% — whereas the average interest rate for credit cards is around 16%. So, if you’ve got a ton of credit card debt, it’s worth considering debt consolidation.

You have good credit

If you’re already in debt, getting another loan might be tricky unless you have good credit. Most creditors will want a credit score of around 670 (FICO Score). 

If you have good credit, you’re more likely to get approved, and also get a loan with decent interest rates. Remember, you want a loan with lower interest rates than your current debts, so this part is key. If your credit score isn’t the best, a new loan might not have favorable interest rates. 

You want a fixed repayment schedule

With some debts like credit cards, it’s easy to just make the minimum payments or even miss a payment (please don’t do this). This makes it harder to clear the debt because some of it relies on willpower. 

With a personal loan, you have a fixed payment and loan term that you have to abide by. This makes it much easier to stay on track and clear your debts. It also means there are no fluctuations in your monthly debt payments like with a credit card so it’s easier to budget for. 

Signs debt consolidation is NOT right for you

You have a poor credit score 

Having a poor credit score is one reason why a lot of people want to get out of debt as fast as possible. 

However, debt consolidation relies on you not only being able to take out a new loan but also getting one without crazy high interest rates. 

If the only loans you can take out mean you’ll be paying MORE in interest rates, then it’s not worth it. In this case, the only benefit would be to simplify your loans. 

But what you really need is to save on interest so you can clear the debts faster. 

You’re on the verge of bankruptcy

If things have taken a downward turn and creditors are threatening to sue, then a debt consolidation loan may not even be accessible to you. Bankruptcy is a scary thought, but if this is your reality, you are unlikely to qualify for a debt consolidation loan.

If this is your current situation, you would be better off looking into debt settlement to try and reduce your debt amount first. 

You can’t afford the monthly repayments

Taking on another debt is tricky if you’re already in debt. While you can use this one to clear your other debts, you need to make sure you can cover the monthly repayments. 

As it’ll be a higher debt amount (to cover all your other debts), the monthly repayments will be higher. Make sure that you can fit it comfortably into your budget before taking on new debt. 

After all, missing repayments can set you back even further. 

Bonus: Ready to ditch debt, save money, and build real wealth? Download our FREE Ultimate Guide to Personal Finance.

How to consolidate debt — and get rid of it completely

If you’re STILL interested in consolidating your debt, I want to help you.

Because there are a LOT of scammy consolidation services out there. These “businesses” will promise that they’ll help you get out of debt fast through their loan packages …

… only to screw you with hidden fees, bloated interest rates, and long loan terms.

The trick here then is to separate the good debt consolidation organizations from the bad ones.

Step 1: Find a non-profit debt consolidation firm

Non-profit debt consolidation firms are 501(c)(3) organizations that help provide you with consolidation services, credit counseling, and will even negotiate with your creditors for you.

The best part: They do so with little to no costs to you since they’re funded by third-party sources such as donations and grants.

Unfortunately, even scammers and bad consolidation services have non-profit status. So you’ll have to do your research into finding a reputable one.

Two good signs a non-profit debt consolidation firm is the real deal:

Fees. A reputable non-profit will likely have monthly maintenance fees. Luckily, they’re relatively low cost — and if you’re in really dire straits, some non-profits will waive the fees entirely for you.

Non-profit status. This might seem like a no-brainer but it still needs to be said: Ask them for verification of their non-profit status. Too many scam companies pretend they’re non-profits in order to lure people in. Don’t be one of those people.

Make a list of 5 to 10 non-profit debt consolidation firms. Spend the next week calling each of them and getting a consultation on your situation and what they can do for you.

A good non-profit will spend about an hour on your consultation. Beware of any organization that wants to take your money and put you into a plan right away. They are NOT looking out for your best interests.

Step 2: Eliminate temptation

Luckily, a non-profit debt consolidation firm will take care of a lot of legwork for you. That means they’ll call your creditors, negotiate down your debt and interest rate, and work with them to consolidate all of your debt into one manageable monthly payment.

Unluckily, that’s the easy part. The hard part means actually doing the work of paying down your debt — and that’s up to you.

To do that, you need to first get rid of the temptation of using your credit cards until you’re debt-free. If you ever expect to pay down your debt, you can’t add more to it.

Here’s my favorite tip: Plunge your cards into a bowl of water and shove it all into your freezer.

Seriously. Remember what we said about human willpower? It’s very weak — so weak that a solution like freezing your cards is necessary sometimes to delete temptation.

When you literally freeze your credit, you’ll have to chip away at a massive block of ice in order to get it back — giving you time to think about whether or not you want to go through with whatever purchase you were going to make.

You can also give them away to a loved one to keep until you’re out of debt.

Step 3: Confront your debt

It’s good to finally confront your debt. That’s the first step to getting out of it. 

While it may be tough to climb out of debt, the sooner you make a plan to do so, the better. You’ll be able to repair your credit score, work on boosting your savings, save on interest, and finally get some sleep at night. Debt can weigh heavily on the mind, after all. 

The good thing is, you don’t have to do this all alone. There’s help at hand. You can get in touch with a non-profit debt consolidation firm to help you. Take advantage of their credit counseling services to help steer you through unmanageable debt. Do your research and find a non-profit so you can avoid the scammers out there. 

It’s easy to feel bad for yourself and avoid confronting your debt. It’s harder to actually step up and do something about it.

Since you’re here, that means that you’re willing to put in the work to dig yourself out of your financial hole which is amazing!

Bonus: Want to know how to make as much money as you want and live life on your terms? Download our FREE Ultimate Guide to Making Money

What is the difference between debt consolidation and debt settlement?

Another term you’ll likely come across in your quest to clear your debt is debt settlement. But what is it? 

Both debt settlement and debt consolidation are used to handle personal debt, but they work in very different ways.

Debt settlement is used to reduce the total amount of debt owed. Whereas debt consolidation is about reducing the number of creditors you owe. 

With debt consolidation, you combine multiple debts into one. Debt settlement is when you ask one or more of your creditors to accept less than you owe.

If the creditor agrees, you both reach a settlement agreement in either a lump sum or installments. 

Which one is best for you? 

This depends on your circumstances and what the creditor will agree to. If you want to make your monthly repayments more manageable and reduce the amount of interest you pay, then debt consolidation is the way to go.

If you’re already behind on payments and are struggling to meet them, then debt settlement might be a better option. 

In this case, if you’re already behind on payments you might struggle to get a debt consolidation loan anyway because of the impact on your credit score. So, debt settlement is definitely something to try out to reduce the burden. 

Debt settlement is the next logical step if you’re out of options, have poor credit, and want to avoid declaring bankruptcy if at all possible. 

It may mean taking a hit on your credit score, but you might have to just accept that. Once the debts are clear, you can get to work on repairing that damage. 

How does debt settlement work?

Debt settlement is a tricky one and requires you to whip out your negotiation skills. There’s no guarantee the creditor will agree, but there’s no harm in asking.

The process is pretty simple. You can ask your creditor if they would be willing to negotiate a settlement. Do this over the phone or in writing to keep a record of the conversation.

A creditor can do one of three things:

Accept it

Reject it

Make a counteroffer

With the counteroffer, you will need to consider if the amount they want is affordable in your budget. Make sure you’re agreeing to something that’s realistic and fair. 

Once you agree on a settlement amount, all that’s left is to arrange the payments. This can either be a lump sum or through installment payments, whichever you agree to. 

After you’ve made the payments, the remaining balance that’s been hanging over your head will be a nice round zero. 

If negotiating debt settlement on your own sounds like a nightmare, don’t worry. There is help at hand. You can hire a debt settlement company to negotiate on your behalf. However, this does involve paying them a fee, and again, you have to do your research to avoid hiring a scammer. 

Pros and cons of debt settlement

Pros

You reduce your debt amount

The biggest pro to debt settlement is simply that you reduce your debt amount. A lot of people don’t know that you can ask your creditors for this. So they carry on struggling. 

But if you’re struggling, it can’t hurt to ask. If a creditor agrees, you could cut hundreds of dollars from your debt and all the interest that comes on top of that.

You can clear your debt faster

With a smaller debt amount to pay off, you can pay it off faster. Whether you agree on a payment plan or a lump sum, you’ll be able to say goodbye to your debts much sooner. 

This means your money will be freed up faster to put into savings accounts or whatever else you want to spend your money on. You can also get to work repairing any damage to your credit score once the debt is clearer. The sooner the better. 

It could help you avoid bankruptcy

If bankruptcy is on the horizon, debt settlement should absolutely be a consideration. The last thing you want is a bankruptcy on your record. You can pretty much say goodbye to being able to take out credit for a LONG time if you reach this point.

Cons

Your credit score will take a hit

Naturally, debt settlement does not reflect well on your ability to repay debts. If you have debt settlement in your credit history, it signals to future creditors that you are riskier to lend to. This could result in sky-high interest rates or outright credit rejection in the future.

However, if your credit score is already low and your debts are just making it worse, then you pretty much have nothing to lose. Yes, you’ll take a hit, but you’ll also get out of debt sooner if your creditors agree to debt settlement.

You might struggle to get credit again… especially with those creditors

A lower-than-ideal credit score does affect your ability to take out credit in the future. However, if you’ve been in a tricky situation with credit, it’s probably worth avoiding new loans and finance for a little while anyway. 

The creditors who agree to debt settlement will likely avoid lending to you again because they will be worried about losing money. This could limit your options in the future. But if it’s your only option, you might just have to just bite the bullet.

There is no guarantee creditors will agree

Unfortunately, if you’re relying on creditors to throw you a lifeline here, you might be out of luck. In an ideal scenario, they’ll be forgiving and offer you a way to climb out of debt in a way that benefits everyone. 

But there’s no guarantee they’ll do this. They could outright reject your request or be inflexible with their counteroffer.

There’s little you can do if this is the case. You can try another of your creditors if you have several debts to see if any of them will agree. 

Bonus: Ready to ditch debt, save money, and build real wealth? Download our FREE Ultimate Guide to Personal Finance.

Avoiding debt in the future

After you’ve decided on a method to reduce your debt – don’t stop. Ridding yourself of debt is just one key part of building strong personal finance. The other part of the puzzle is to manage your spending so you don’t end up in the same position as before. 

The last thing you want to do is put all your hard work into clearing the debt, only to succumb to temptation or poor money management which puts you right back where you started. 

That’s why we want to give you something that can help you take your personal finances to the next level:  The Ultimate Guide to Personal Finance. In it, you’ll learn how to:

Master your 401k: Take advantage of the free money offered to you by your company.

Manage Roth IRAs: Start saving for retirement in a worthwhile long-term investment account.

Spend the money you have — guilt-free: By leveraging the systems in this e-book, you’ll learn exactly how you’ll be able to save money to spend without the guilt.

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Debt consolidation: How does it work and is it right for you? is a post from: I Will Teach You To Be Rich.

from Surety Bond Brokers? Business https://www.iwillteachyoutoberich.com/blog/debt-consolidation/

[saybees]

Ugh, my mother acts like a rich person, it drives me nuts.

She texted me a photo of her new microwave mounted above the stove and she said that now the stove looks ugly and she wants to get a new one.

It works. It works very well. It functions flawlessly aside from the little screen not showing the time anymore. It's the exact same stove we have in the house we are renting. It's older than me, but it works brilliantly.

I am SO tired of listening to my mother complain about this kind of thing. She's lucky that she has the money to be able to buy new appliances whenever she feels like it. She can repaint the whole house on a whim. My mother complains that they are always so tight for money, but they clearly aren't. They just don't always have the disposable income my mother wants so she can constantly be spending money on stuff she doesn't need to buy.

I have been poor for EVER. Even when I was living at home and I had my parents supporting me I didn't have an allowance or a job (lived out of town and didn't have a car) so I could never spend money. I was lucky to get a $100 bill from my grandmother when I graduated high school. That was a lot of money to me because I never had any. I had to rely on my parents for everything, which is fine, they provided me with what I needed and they did contribute quite a bit to my first couple tries at post-secondary education.

But I have been on my own for a long time now. I have always barely made enough money to get by with a little bit of spending here and there that I probably shouldn't have done, but did anyway because life is short and I want to enjoy things.

My mother was telling me once about how since her and my dad both retired they were only getting $[REDACTED] from my dad's investments and it wasn't enough for them to live off of each month. All I could think was HOLY SHIT because it was twice as much money as I had ever seen in a month and I could survive on it more or less fine. But that wasn't enough for my parents to sit at home doing nothing?? They don't have a mortgage anymore, that's been paid off for several years now. They both have newer vehicles that they got gently used. They have a new tractor my dad went out and got himself, real fancy. They really don't have much for expenses aside from hydro and car payments. Like it blows me away and it makes me so MAD that my mother acts like such a rich person and she can just go and spend that kind of money like it's no big deal while I'm struggling to pay for university that might get me nowhere, but I had to go and do it because I was going to have a complete mental breakdown if I stayed in retail any longer.

It just hurts, I guess, to see my mother living so frugally while I'm struggling. Even my little sister makes really good money at her job that she somehow stumbled into and I feel like such a loser because I'm the only one that's really struggling financially.

I feel like my mother put too much pressure on me to go to university and "make something" of myself. She always drilled it into me that she wanted me to be better off than she was and have what she didn't have, but so far I'm living in more poverty than she did. She pushed me to go to uni when I wasn't ready and I ended up wasting all my money and blowing through my small trust fund. I have nothing to show for it. My mother always put so much pressure on me and I have always felt like a failure.

It's just really hard. I don't want to be in the place that I am. Everyone else is doing much better than I am, but I'm the one that took risks and went out into the world. All it did was burn me.

And now that I'm in uni again I'm struggling through some of my classes and I'm probably going to fail at least one and have to redo it, which means paying another $1000 and spending another 4 months going through the same material. And that's only if I fail the one. I might fail another one yet.

Like my parents are by no means actual rich people. They're very middle class. It just bothers me that I have to work so hard to get nowhere and they have done so little and are so comfortable. I don't think I'll ever get to a place like that.

My sister struggled through grade school, but now she has a killer job that she makes fucking bank at. She bought herself a newer Jeep last year. While I have a 25 year old truck with 260,000 kms on it. Don't get me wrong, I love my truck, but if I had the money to spend on something newer I probably would.

My sister is also autistic, but that doesn't seem to affect her life at all anymore now that she's out of school and I'm here just now figuring out that I probably have autism and adhd and it's making my academic career a nightmare right now. I'm having such a hard time with everything right now because of that and I reached out for help and was completely shut down over it.

I just look at my life and the lives of my family members and I feel like I'm the only one that's ended up in such a crappy spot. Everyone else is so much better off than I am right now and it sucks. I know I shouldn't dwell on it and this is just some depressive episode triggered by a text of a microwave, which is really fucking stupid now that I put it into words, but I just feel so miserable. I feel like I'm stuck and I don't know how to get out. I thought university would help and change things, but so far it hasn't.

I just want to do the things that I love and be surrounded by people that I love, but that's such an impossibly distant goal at this point. I want more from life than this. I want to not have to worry about money anymore. I want to be free to do the things I want to do. I want a job that isn't going to drive me fucking bananas and pays well enough to fund my hobbies. Why does that seem so out of reach? Why can't life just be easier? It seems so easy for everyone else around me.

Money can't buy happiness, but it sure can solve a lot of the issues that cause me to be fucking sad.

[aisarete]

I like to imagine sometimes what I would do if I won the lottery. It can be fun to imagine absurd amounts of wealth. Usually I look at the huge lotto pots and try to imagine what I would do with that number of simoleans, but this morning I thought, what if I did it the other way? What I tried to imagine doing stuff with money I would love to do but will never have the chance, and then figure out how much that would be? I thought, I would really like to:

Pay of my debts, and my wife's debts, and my mother's, and my mother-in-law's (Let's set aside $100k for that, we don't have that much but it's a nice round number to work with.)

Buy a car, in cash, in full, for myself and a second for my wife (Let's say, $60k? For two really nice, brand new cars?)

Buy my mother-in-law a house (I'll set aside $500k for this one)

Buy a large plot of land in a nice area of California and commission a tiny home to be built on it, maybe on the larger end, 500-600sqft (I will say $2mil here, land in California is expensive, plus not only hiring an architect but people to build a home to my specifications and also working with the city to set up foundations, electic, water, etc., not to mention furnishings, appliances, all that good stuff)

This is where it starts getting pretty frivolous, and also assume there is no Coronavirus and we can play and travel as we please

I would love to go on a really elaborate Disney trip. Like, visit every Disney park, spend a year traveling the world to see all of them, maybe a Disney cruise or two, check out some of the resorts, all that, and bring maybe... 5 people? (Disney is expensive, and travel, hotel, all that costs, too. Let's say... $120k! Going to every park is estimated at $7k, round that to $10k and double it, $20k per guest. That would cover all necessities plus a ridiculous amount extra for doing non-Disney tourist things, like exploring Japan. That is, like, more than we would need but we can assume we always eat at nice places and we buy souvenirs...)

Start a business!! (Give that $50k, again more than it would cost but it would keep things running as smoothly as possible at first.)

Buy $1mil of debt and cancel it!

Build a second home on my land for my best friend! (Let's say another $1mil for that.)

Buy really good health insurance for my wife and I, and $1mil life insurance policies each! (Call that $3mil all together, and assume I'm paying in advance.)

Here's me running out of things to do with money...

Set up a trust fund that our families can draw from if they need a down payment on a house or car, money for school, etc.! (Put that at $5mil, we both have large extended families who could all use a hand.)

Give my mom $1mil to set up the charitable organization she always wanted, offering aid and legal protection to the homeless!

(What else even costs money, I've already set my entire family up for at least a few years)

Oh right! An actual wedding, as elaborate as I want it, wherever we want it, and fly whoever we want out to attend! (Let's go with $500k, according to bridal magazines the "average" cost of a really nice wedding is about $50k and I am increasing that number exponentially because I am assuming the cost of travel for all guests.)

We want kids so I will set aside $1mil for the care of at least 2 kids for 18 years. That would be more than enough to cover anything they may need, brand new cars at 18, plus college tuition, and whatever is left after they graduate will be at least a downpayment on a home each, they'd be set for life! So let's set aside another $1mil for health insurance for them, paid in advance for 18 years, and $1mil life insurance policies each. Total here is $5mil.

I am going to give myself and my wife a $100k each shopping spree to buy all the stupid shit not covered already we always wanted, like a fully custom wardrobe including custom shoes, or just so many books.

Ok, at this point I can't even think of anything else. Some of these things are very frivolous but that's ok. If I kept going it would just be "give more money to my family who need it! donate to charities! vacation more!" and that gets boring to read or even think about.

And all this comes to....

$19,530,000

Wait, what? All this shit, our families living comfortably for at least 20 years, new homes, dream vacations... All of that doesn't even break $20mil? Living out my wildest fantasies in comfort and luxury for the rest of my days wouldn't even be the change in Jeff Bezos pocket.

And that right there is why I hate billionaires.

[imagine-loki]

Caught in his web, Chapter 13

TITLE: Caught in his web CHAPTER NO./ONE SHOT: Chapter 13 AUTHOR: fanficshiddles ORIGINAL IMAGINE: Imagine Loki is a crime lord, a very dangerous man in the city. He is owed money, but the man is unable to pay Loki back, so Loki takes his daughter as payment instead.  RATING: M

Loki had a big grin on his face while some of the local people clapped and cheered for him. He waved and bowed a little before then cutting the ribbon and opening the new homeless shelter that he’d fully funded.

He shook hands with the mayor and posed with him for a few pictures, then gave a small speech before going inside with the mayor and press to show them around. He was very pleased with his work, and everyone else was too. It was going to be a vital part of the community, the homeless situation was getting worse.

When Loki got into his car to leave, James was there too.

‘Nice way of covering up your… disposables.’ James grinned.

‘Always got to make the most of everything I do.’ Loki grinned.

What the caring public didn’t know was there was a mini grave underneath the homeless shelter. An easy way to dispose of bodies that would never be found, especially since it took almost a year to build. Loki had made sure it wasn’t done too quickly.

‘What are you going to do with any future disposables?’ James asked while typing away on his iPad, updating Loki’s accounts.

Loki trailed his finger across his lower lip. ‘See if Jasmine at the crematorium is off maternity leave yet, I lose track of timings. If not, see how persuasive the maternity cover is.’

‘Will do, boss… Samuel and Ethan could always take up digging at the graveyard again if the push comes to shove.’ James said.

Loki chuckled. ‘Indeed. They would just love that.’

Burying bodies at the graveyard was one of the best ways Loki had found for disposing of bodies. For obvious reasons. No one suspected earth being disturbed at such places.

When Loki eventually returned home that night, after dealing with some more business, it was after midnight. He went upstairs and quietly crept into Chloe’s room, she was sound asleep. Loki had learned that she didn’t bother shutting the curtains, and with it being a frosty night the moon was shining brightly straight into her room. Giving him enough light to see without turning on the lamp and waking her up.

He quietly moved the chair closer towards her bed at the bottom, sat down and slowly sipped on his whiskey. He just watched her, sleeping soundly. On occasion she moved round onto her other side or let out a groan. But she looked peaceful.

After a while, she moved onto her back. Loki took that opportunity to have a little fun.

Moving gracefully, he went up the side of the bed and sat down carefully. He slid his hand underneath the blanket and gently touched her leg. When she didn’t stir, he stroked up her inner thigh and brushed the back of his hand against her cunt, only her knickers keeping him out.

She breathed out deeply, but aside from that didn’t move. Loki was encouraged by that, so kept rubbing her with a little more pressure. He turned his hand around and used more of a cupping motion while he rubbed her.

Chloe started responding by moaning slightly and squirming a little. Loki grinned and aimed for where her clit was. He was tempted to slid his hand down her knickers, but had a feeling that would wake her up completely. So he just stuck to stroking her firmly for a while, working her up nicely.

She started moaning louder, that’s when Loki reluctantly stopped. He carefully stood up and took a few steps away, grinning as she groaned in disappointment. But she rolled onto her side and curled herself up into a ball, no doubt squeezing her thighs together, he guessed.

Smirking to himself, he replaced the chair in its rightful place and slipped out of her room.

-

When Chloe woke up, she was feeling a bit horny. She’d had a weird dream where she was aroused, and it was like she was touching herself. But it also felt quite real in a way, she did wonder if she had touched herself while she was asleep because her knickers were a bit damp.

Not thinking much else of it, she went about her usual morning routine of showering before getting dressed. Then made her way downstairs for breakfast, hoping that Loki wouldn’t be there so she could get peace. But her luck wasn’t in today, as he was sitting at the top of the table with a plate of cereal, tea and a newspaper.

‘Good morning, doll. You’re looking rather radiant this morning.’ He grinned over the paper at her.

She bit her tongue and turned around to leave, but she should’ve known he wouldn’t let her do that.

‘Ah, ah. Come and have breakfast.’ Loki said firmly.

‘God, give me strength.’ She muttered to herself quietly.

Not looking at him, she continued to the table and sat down at her usual seat. She had tried to sit at the opposite end of the table from Loki before, but that didn’t go down too well. So now she didn’t even bother trying.

‘Did you sleep well?’ Loki asked casually while Tania served Chloe’s breakfast.

‘Yes.’

‘Glad to hear it. I’ve made the decision that you can get your phone back at the end of the week, if you continue to behave.’

‘What’s the catch?’ She blurted out.

‘Catch?’ Loki raised an eyebrow at her.

‘There must be a catch. Why would I get my phone back?’

‘No catch. I’m sure you will be wanting to contact your friends in excitement for starting University next month. And I’m almost certain your mother will be happy to hear from you again.’ Loki said with a smile.

‘I’m… I’m allowed to call people?’

‘Of course. Call, text, email. Surf the internet, whatever it is that you like to do. I’ve upgraded your contract so you have unlimited data, calls and texts. In a few months’ time I will be getting phone upgrades for everyone, yourself included.’

Chloe frowned. She wasn’t sure what to make of it all. But kept quiet, not wanting to risk a slip of the tongue by saying thank you. Because she sure as hell shouldn’t have to be thanking him for her own bloody phone.

She got through the rest of breakfast unscathed. To her relief. And he didn’t call for her or go to her room for the rest of the morning.

But just after two in the afternoon, she was on her way downstairs to get something to eat when the doorbell rang. She stopped at the top of the stairs and crouched down, looking between the railings towards the door to see who it was.

Loki came strolling through to answer. Chloe waited with baited breath, hoping it was someone that might be able to help her out. But it was young children, selling cookies for their primary school trip. She thought Loki would flip, annoyed that he was disturbed. But to her surprise, he was more than welcoming to the children.

‘Ah, what do we have here? They look delicious!’ Loki said animatedly, making the kids smile.

‘We’re selling cookies that we made at school, so we can save up for our school trip to the lake district!’ One of the kids said excitedly, not realising that she was speaking to a dangerous man…

Loki crouched down to their level and smiled brightly. ‘Well, I will definitely buy some. I can’t resist cookies. And Pete here, he has a sweet tooth too.’ Loki said as he motioned to his security guard by the door. Pete smiled down at the kids and nodded.

‘Yay!’ The kids all cheered when Loki stood up again and took his wallet from his pocket.

‘How many do you want, Pete?’ Loki asked, looking to him.

‘I’ll have a whole box, should keep me going till lunch.’ Pete chuckled.

Loki gasped in a mocking manner. ‘Costing me a fortune you are! Maybe I need to put him on a diet.’ He chuckled and winked at the kids, making them laugh.

He pulled out plenty of cash, making the kids go ‘oooo’ when he handed quite a few notes to them. ‘I’ll take five boxes. I have plenty of mouths to feed.’ He grinned.

‘Thank you so much!’ The kids all said in excitement as they gave him five boxes. They then went running down the path to the parents that were waiting for them on the pavement.

Loki waved back when they all waved enthusiastically at him. He handed a box to Pete. ‘Don’t eat them all at once.’

‘No promises there, boss.’ Pete chuckled.

Chloe was a bit surprised at what she’d witnessed. She stood up and had just taken one step back up the stairs, when Loki barked her name, making her halt instantly.

‘Chloe. Stop hiding, come down and enjoy these cookies with me.’

Chloe bit her tongue and cursed internally for being caught. She slowly made her way downstairs and when she looked at Loki, for a split second she found it difficult to think that he was so… dangerous and terrifying.

Because he was holding four boxes, with one of the cookies stuffed half in his mouth already and he had a goofy look about him. And it was also the first time that Chloe had seen him in casual clothing, leather trousers, boots and a dark green shirt with the top few buttons undone. He didn’t take days off that often, even at weekends. It was very rare.

She mentally slapped herself for thinking anything different.

He motioned with his head for her to follow him, so she did, albeit reluctantly. First they went to the kitchen, Loki asked Tania to store the cookies apart from a couple he put on a plate.

‘Come on, doll.’ He called on Chloe like she was a dog as he walked out of the kitchen.

She rolled her eyes and followed him obediently into the living room. She shivered as she entered, she really hated this room.

Her eyes widened as she spotted a game of chess set up on the small table by the fireplace. Loki had put two comfy chairs at either side of it.

Loki put the cookies down next to the chess board and went to the bar to pour them both a drink. ‘Have you played chess before?’ He asked, walking over towards her and the table with two glasses.

‘No. It looks boring and pointless.’ Chloe said, not making eye contact with him, instead she just looked at the board and flicked the King over.

‘Only boring people get bored. Sit down.’ Loki whispered into her ear, suddenly right behind her that made her jump.

It’s going to be a long day. She thought as she took a seat.

- Chloe yawned for the hundredth time in the past hour. She was sitting sideways on the chair with her legs draped over the arm, the whiskey that Loki kept pouring her had allowed her to let her guard down a tiny bit. But she was so bored while Loki talked her through her first game of chess.

She reached out for the last cookie but Loki smacked her hand away and grabbed it first. ‘You’ve had enough cookies.’

‘You’ve got, like, five boxes.’ She grumbled.

‘I did. But it doesn’t mean you are to stuff your face with them all.’ He growled.

She let out a groan and threw her head back.

‘It’s your move.’

She looked at the board and moved her King.

‘You don’t want to do that.’ Loki said.

‘Why?’

‘Because then I can take out your King and win.’ Loki said bluntly.

‘Oh, good. You win then!’ She said cheerily and downed the last of her drink, hoping she could go to her room now.

‘You can move it elsewhere, Chloe. This game is just a practice for you. We aren’t finished yet.’ He grinned.

‘Great.’ Chloe sighed and moved her King elsewhere, pleasing Loki.

At this point, she would rather just give him a quick blowjob and be done with spending time with him. Alas, Loki wanted to play chess and Loki always got what he wanted.

So she was stuck.

[drferox]

Pet Insurance

To be honest, I'm not totally convinced with this whole 'Pet Insurance' thing.

It certainly exists, and it's becoming increasingly common, but it's not exactly a good product and it's getting harder to recommend to my pet owning clients, as well as a general pain in the patootie to get money of sometimes. I have to say, I'm becoming increasingly disappointed and disillusioned with it.

I got curious the other day and looked up what it would cost me to get Accident & Illness cover for Trash Bag. No preventative care (it's cheap enough for me anyway as I can do a lot myself), just for sicknesses and illnesses. He's a 2yo neutered male, indoor only cat. He's a really low risk cat, and that's a quote without pouring through his medical history or pre-existing conditions. Even though any issues he'd had before taking out insurance would have been automatically excluded.

And it's still about $600 for the year, with only reimbursing 75% of the bills back, with no excess. What that means in real terms is that I'd have to have a $1200 vet bill in order for me to break even with pet insurance.

That would be plausible, with the median sort of 'expensive' vet bill for a stay at a 24 hour clinic or major surgery being around $3k, but the odds of that actually happening for me are extremely unlikely at his age.

Now, it might be a good deal, if I could expect to have that rate for his entire life. But that isn't going to happen.

Pet Insurance in Australia will guarantee 'lifetime cover' but what that means is not that you're paying this rate for the animal's entire life, but that they will give you a new offer of cover every year and it's up to you to accept it. They can't stop covering my cat, but they can make it more expensive every year so maybe I'll stop covering my cat. If they don't want to cover me, they will make me an offer they hope I will refuse.

Let's say I have a lot of small claims. The insurer might amend their letter of offer to include a $100 excess. That means I have to pay the first $100 of any vet bill on my own, and now they reimburse me 75% of the rest. So for a $100 vet bill, I can't claim anything. For a $200 vet bill, I get $75 back, and I'm still paying at least $600 a year at this point. Now I need a $1500 vet bill to break even.

They may also limit the amount payable for certain types of things. For example, a lot of the Australian policies have a $300 annual limit on consultation fees. In practice that translates to about 5 consults with a general practice vet, or two with a specialist. That's not a whole lot if you've got a pet with something chronic.

Tick paralysis and cruciate ligament injury have annual limits to their payouts too, and they're not quite what these things would really cost to treat.

And to add to the deception, some insurers will exclude bilateral conditions. If your pet had a sore eye one year, they may exclude all eye conditions going forward, even if they're not related, and even for the unaffected eye. Sometimes they will exclude unrelated conditions for the same organ system. Demodex as a puppy? Wont cover skin allergies now.

Pet insurance works like a bet. You're betting that your pet will get sick, and the insurer is betting that it wont. If you win, you get paid out.

But if the insurer doesn't like those odds, they change them, or they change the rules for the payout. They're not going to lose, they're going to change the rules to make sure of it, and you either agree to their terms or you stop playing.

So how do they make you stop playing?

The insurer is entitled to increase the cost of the pet insurance policy each year, based on the age of the pet and previous claims. Or they can increase the excess you pay for each claim. Or they can exclude covering conditions that you've claimed for in the past.

Progressively, it gets more and more expensive to cover your pet for less and less, and this is something veterinarians are progressively less happy about.

Now, if we were talking about a car and not a cat, you could take your quote and shop around for a better deal. But the catch with pet insurance is that if you switch providers, then suddenly everything you've ever claimed for, or that appeared in the medical history, now counts as a pre-existing condition and wont be covered. You lose coverage by switching providers, and probably don't save all that much.

Oh, there is, to my current knowledge, only two insurance underwriters for pet insurance in Australia right now. So of the 200 or so brands out there, 199 are actually all written by the same mob. Because that's not ripe for corruption at all...

Every 12 months, the insurer can review and change your premiums, excess, excluded conditions and rebate rate.

And unlike human health insurance where you scan a card, the total comes off your bill, and you pay the rest, with pet insurance you're still paying the vet clinic everything up front, and then get money back after your claim is processed, which may be a few months.

Pet insurance companies are really trying not to pay out, they want to make money, not give it away.

This makes writing medical histories a little bit tricky, because it's not vets reviewing the history to decide what they will and wont pay out on. If the insurance employee doesn't know what pemphigus folleaceous is, they might decide not to pay out. Then I have to call them up, request a review, talk it through, or send more documentation to explain what's going on.

Pet Insurance requests, demands, access to the pet's medical history. It's not like human insurance where they just see an itemized invoice. And this makes vets not entirely happy about handing over medical histories all the time when client's money is at stake. Especially when any potential mention of a vaccine preventable illness gets the whole claim thrown out, even if it's in the differentials list and not the final diagnosis.

So pet insurance is nice to have if you end up with a single, large vet bill, but it's not so helpful for chronic conditions, and you still need access to that cash BEFORE you get any back.

So, honestly, it just wouldn't work for me, and I'm a vet.

The point I would like to get to, other than Pet Insurance in general needing to be better regulated and honestly a bit of a gamble, is that is can't be used as a solution to everyone's problem, especially after a pet is already sick. You still need cash to pay the bills up front, even with pet insurance.

There are other options besides pet insurance. I can never recommend against it, but I do recommend people understand what they're signing up for, and as long as they've got some sort of plan in place for paying vet bills that's okay.

Popular in my area is just using a mortgage redraw facility. With these home loans you can pay extra into your mortgage each week/fortnight/month and it counts against the interest you pay, as a method to pay it down early. But because it's being paid 'early' you can withdraw the extra funds again if you need them, such as for a vet bill. It functions like a savings account, but you're paying down a debt you already have instead of accruing interest.

An emergency credit card is another option, one you just keep paid off unless you genuinely need it.

And 3rd party payment plans exist. Most vet clinics will not do their own payment plans, or will not admit to ever offering them, because we simply don't want people to rely on the vet clinic, a small business, taking on the financial risk on behalf of the owners because, frankly, most people never pay. This is especially true if the pet dies. A clinic might offer them for immediate life saving treatment if they know the client well, but the emergency last resort should never be anybody's number one plan. That's not fair.

Wonka also does not have pet insurance. I asked a couple of insurers at an industry exhibit once whether, because he has a neurological condition, whether he'd be covered for a broken leg if he fell off the couch. And none of them could assure me they would, in case in fell off because of the neurological condition. And that was not reassuring.

So when do I recommend pet insurance? Well I kind of don’t, specifically. I advise which companies other clients have been happy with, and what sort of things a pet owner needs to look for in terms of exclusions, limits, and fine print.

There are always some breeds I do recommend it for, because they are disasters waiting to happen, and for many young animals when the insurance is still cheap, nothing is pre-existing and we don’t yet know if they have a congenital condition, at least for that first 12-18 months of life. There are some you can look at as puppies and be highly suspicious this animal is going to be a money sink.

I see a lot of internet comments saying “should have had pet insurance!” or “go get pet insurance!” on various posts about affording pets or vet bills or emergencies, but pet insurance doesn’t help at all in these scenarios. Pet insurance gives you money back, you had to already have had money in the first place to take advantage of it. Pet insurance is no panacea or cure-all.

I just have a savings account. Putting aside what you would have paid in pet insurance anyway is a decent estimate for how much you’d need to save for a normal pet.

This post was accessed early by my Patreon Supporters.

[mr-entj]

Do you have any entries on your blog that covers student loans and how to approach them for someone who is nervous about debt? Thank you!

Combined with the following asks:

I am an avid reader and impressed your journey. I read that you came from a lower income family but I noticed that you also went to top universities which is impressive. I am in the same situation and I am, going to take out thousands of dollars loans to pay for my dream college, is it something you would advise? What is the alternative for people in our situation?

If it is not too much to ask, how did you pay for college if your family was poor? As someone who is of similar background as yours. Thank you for the time you take to write to your readers and answer their questions

Between going to a european top college, staying far from my family and going into debt for it or attending a local college, staying home, but no debt, what is your opinion? What could be the best decision?

Higher ranked college + debt or lower ranked college + no debt?

Related:

Hi Mr-entj. Do you have any advice for becoming more financially literate?

General money management advice

Mr. ENTJ can you break down how to interpret the compensation from an offer letter such as salary and bonuses for someone with multiple offers trying to weigh options? What to look for?

Student Loans 101

I don’t give personalized financial advice but 5 things to know before you take out a student loan (applicable mainly to American students):

1. Understand the financial impact of student loans on your life after graduation

This is the absolute #1 priority and where students really get screwed over. Most people see the loan numbers on paper but don’t fully comprehend the day to day burden repaying that debt will have on their lives. Here’s an easy way to ballpark impact: for every $10,000 you borrow, you’ll need to pay back $100 per month … for 10 years (The average federal loan is at a 6% interest rate with a 10 year or 120 month repayment schedule).

This means:

$20,000 in student loans = $200 monthly payment

$40,000 in student loans = $400 monthly payment

$60,000 in student loans = $600 monthly payment

$80,000 in student loans = $800 monthly payment

$100,000 in student loans = $1,000 monthly payment

$250,000 in student loans = $2,500 monthly payment

These are very rough estimates because loans have varied interest rates. Use student loan calculators for more accuracy: BankRate Student Loan Calculator, FinAid Loan Calculator, and the Federal Student Loan Repayment Calculator.

Understand what you’ll make vs. what you’ll pay. For salary, remember that, roughly:

$20,000 annual salary = $500 per paycheck or $1,000 per month

$40,000 annual salary = $1,000 per paycheck or $2,000 per month

$60,000 annual salary = $1,500 per paycheck or $3,000 per month

$80,000 annual salary = $2,000 per paycheck or $4,000 per month

$100,000 annual salary = $2,500 per paycheck or $5,000 per month

For perspective, let’s put the student loan and salary data together. This means that if you graduate with a job that pays $40,000 per year but you have a $40,000 student loan you’ll bring home approximately $1,600 every month($2,000 salary - $400 monthly loan payment). For added perspective, the average cost of a 1-bedroom apartment in Los Angeles is $2400– and that’s just for housing– that doesn’t take into account other things you need to survive as a living and breathing human being like, say, food and water, clothing, utilities, health insurance, car insurance, car payment, gas, etc.

A general rule is not to take out student loans greater than your salary after graduation. I knew my salary after graduation would exceed $130,000 so I took out the loan and I’ve been able to pay it back with relative ease but it was a long and painful process that required many sacrifices. With my $1,100 monthly loan payment over 10 years, I could have bought 2 Corvette Stingrays but I also know that I couldn’t have the career I have today without taking on that debt.

2. Research universities, potential careers, job placement, and salary before you take out a loan

Don’t be that clueless ocarina major with $100,000 in student loans and no job post-graduation.

Some people say that college is a place to learn– and it is– but it’s also a financial investment in your future. If you want to attend college just to study your passion with no regard for post-graduation salary then consider going to a library, joining a hobby group, or surfing Google for hours instead because at least those options are free and they won’t bury you in decades of debt. College is a financial commitment amounting to tens of thousands, if not hundreds of thousands, of dollars– don’t wander into it lightly.

Research:

Tuition and financial aid statistics by university. How much does it cost to attend each school? How much is housing? What other hidden fees are there? How much financial aid does the school give? What scholarships and grants are available to accepted students? What % of students receive aid? What is the average debt carried by graduates?

Reputation, rankings, and strength of programs by university. How is this school regarded in the industry, the state, the country, the world? What is the strength of the program you’re interested in? What companies recruit at your school? What is your university and program of choice ranked? Your college degree is your passport into the professional world and the more prestigious and well-regarded it is, the easier your journey will be. (Mr. ENTJ, do things like rankings, reputation, and prestige for which school you attend matter when it comes to your career?)

Career services and alumni network by university. What career services does the school provide? What companies recruit at your school? How active are the alumni of this school? How successful are the alumni of this school? Top companies recruit at top schools, it’s a very simple concept, so if you want to break into a very difficult industry this is a question to ask. Alumni are important because they’re the club you join post-graduation. The more successful and helpful alumni are, the more plentiful the opportunities throughout your journey.

Prospective careers by major. What can you do with your degree? What are the careers this major leads into? How much do those careers pay? What is the demand for those careers? How difficult is it to get a job in those fields?

Job placement and salary statistics by major. What is the average % of graduates who get jobs after graduation? What’s the average salary of those graduates? Look for salaries by major because schools often average salaries across the entire university and that’s misleading. An interpretive dancing major and a chemical engineering major will not make the same amount of money post-graduation.

I don’t give advice on what schools people should or shouldn’t attend or if they’re worth the debt but do thorough research and if the university has a prestigious reputation, strong program in a particular field, active alumni network, high job placement, generous financial aid, high salaries post-graduation, and good career support then that trends towards a worthwhile investment.

3. If you need to pay for college, remember this hierarchy: free money > federal loans >>>>> private loans

Free money includes grants, scholarships and other options that don’t require repayment. As a general rule, the better student you are (grades, GPA, test scores), the more money universities will throw at you because you’re a more attractive candidate and they know other universities are fighting for you to attend their schools. Students with bad grades and bad test scores get crappier financial aid packages because universities view you as someone who should feel lucky to have been accepted at all.

Federal loans are low-interest, fixed-rate loans funded by the government. These are preferred because they have flexible repayment methods like income based repayment (the less or more you money you make, the less or more money you pay back) or loan forgiveness (PSLF program). Still, free money is preferable to any type of loan.

Private loans are a last resort and only if grants/scholarships and federal loans don’t provide enough money to cover expenses of your first-choice school. Private loans are given by banks and banks are ran by businessmen who want to make money. They typically have high interest rates, high fees, and inflexible repayment plans. Remember that their primary goal is to make money, they are not here to help you achieve your academic dreams.

4. Never go into debt attending a for-profit school

(*People triggered by absolutes*: “Never?”) Never. Their degrees are worthless in the job market, attend accredited universities only.

The Lifelong Cost of Getting a For-Profit Education

5 Reasons You Should Avoid For-Profit Colleges at All Costs

For-Profit Colleges’ Teachable Moment: ‘Terrible Outcomes Are Very Profitable’

4 ways to avoid for-profit college abuses

My college degree is worthless

Why low-income borrowers should avoid for-profit colleges

Will a for-profit degree get you a job?

5. Above all, prepare ahead of time before you start applying to colleges

Get top grades and top test scores in high school because this will result in more generous financial aid packages.

Take as many AP courses and tests as possible because these can count for college credit and save hundreds, if not thousands of dollars, in the long run. I took so many AP courses in high school I entered college with sophomore standing.

Save money for college throughout your life from summer jobs, side jobs, allowances, etc. I didn’t have rich parents so I set aside a few dollars from each paycheck into a savings account.

Apply early for multiple grants and scholarships to accumulate as much free money as possible. This is a numbers game; the more you apply, the better chance you have of winning so search far and wide and blanket applications and essays to anything you remotely qualify for. I had so much scholarship money in undergrad that I made money going to college.

Consider community colleges. Attending community college for 2 years and then transferring to a university can save thousands of dollars in tuition and get you the same degree someone who paid 4 years of university tuition has. I did 2 years of community college then transferred to a top public university and saved $50,000 in the process (university is approximately $25,000 per year).

Resources

Grants and Scholarships

Finding scholarships

FastWeb Scholarships

U.S. Department of Labor Scholarships

Google any university’s name and the word “scholarships” for school-specific scholarships

Student Loan Calculators

Student Loan Term Comparison Calculator

Student Loan Payment Calculator

BankRate Student Loan Calculator

FinAid Loan Calculator

Federal Student Loan Repayment Calculator

Paycheck Calculators

Paycheck City Salary Calculator

Smart Asset Paycheck Calculator

ADP Paycheck Calculator

Career Salary Data

Glassdoor

Indeed

LinkedIn

Paysa

The Economic Value of College Majors by Georgetown University

2017-2018 College Salary Report by Payscale

Field of Study in College and Lifetime Earnings in the United States

There are countless statistics, stories, and articles that capture the impact of student loans:

r/studentloans

Student loans have become our modern-day debtors prisons

10 Ways Student Debt Can Destroy Your Life

The Mental Toll of Student Debt: What Our Survey Shows

Google News: “student loan crisis”

[noelle-wright]

A Journey Towards Debt Liberation

Working towards paying off my student loans was one of the most scary, liberating decisions that I decided to embark on. When I first took out my graduate school loan and moved to France in 2013, I had no idea what I was doing. I didn't know what interest was and how that would affect the life of the loan. I just went with whatever the Department of Education was offering.

Fast forward to life right after graduate school, the reality of Hawaii public sector wages hit me hard. The thought of paying through almost $60,000 in student loan debt seemed impossible, and I believed I wouldn't be done until I was 40. As a 23-year-old, that was fine, though, because I had no plans to own a home, start a family, etc. However, the reality of this loan was a constant worry.

It was a trip home to visit my sister and brother-in-law that really got me thinking about how I'd been approaching my loans, as they had been aggressively paying down loans. I had heard many podcasters preach about "financial freedom" and paying off $100,000 in two years. I would get bitter inside and thought that doing what they were doing was impossible for myself. However, with the inspiration of my family, I saw that it WAS possible. I realized I was mentally stuck in a limiting mindset, and my bitterness at those paying off their debt was a projection of the insecurity I felt in my own situation.

As I started to reach my later twenties, I moved to a much better paying career and started a long-term serious relationship. I decided it was no longer time to be held down by my debt in order to manifest the life I intended to create for myself and with my partner. For me, there was no better time than now to work on my debt - while I had low expenses and a stable job. I happily traversed into an ABUNDANCE MINDSET. I shifted my thinking from not believing I had enough to believing that I did have the means to get out of this debt, and that everything I had now was all I needed. Money can be so stressful, but when our minds are controlled by it, it blocks us from serving our higher purpose. Financial freedom is also a mindset and a practice in discipline. The more you practice, the more you evolve. My goals were to 1) taking responsibility through hard work and discipline, 2) liberate my mind from the worry of money and feeling of lacking, and 3) turn this journey into part of my sadhana, or spiritual practice - spiritually work on discipline and seeing myself and everything around me as abundant.

Here are a few things that helped me along the way.

Know how much you owe and your interest rate. It can be scary to face how much we owe. I didn't keep track when I was borrowing, only to find out I had initially borrowed $59,410.93. I was so scared to face how much I owed, that I didn't really start paying attention until 2018. Be clear with how much you owe so you can start setting goals that work for you.

Know your monthly spending vs. how much you make. Be completely honest with yourself so you can see your net outflow and what extra you can realistically put towards your loan. This also allows you to cut off expenses that you may not need.

Refinance. It took me five years before I proved I was credit-worthy for refinancing, but it got me a lower interest rate, so keep trying. Do your research when looking at companies (I myself refinanced with CommonBond).

As much as you can, pay your minimum then build to paying over your minimum. When I had a low salary, I applied for income-driven repayment (IDR) to pay lower than my minimum. Even when my salary got higher, I got mentally stuck in an IDR-mentality, but I was actually doing myself a disservice. If you start to make more money, start paying that pre-IDR minimum right away. Even better, start paying MORE than your minimum. Set up automatic payments so you don't know what it feels like to have that extra money to spend. Personally, I paid a portion towards my loan every week.

Make more money. This sounds blunt and I understand everyone has different circumstances. For me, though, moving to a job that paid me $30,000 more per year and gave me much better benefits like, fully paid healthcare, paid transportation, and life insurance really helped. Also, taking on a side hustle changed everything. I work really hard right now and put in the time, but I know that in a few months I can live more comfortably and have more free time. Don't let making more money, though, inflate your lifestyle.

Listen to podcasts and go online for inspiration. Sometimes it can feel like you are alone in everything, but when you enter the online world, you'll see that there are a ton of people in the same boat and with their eyes on the same prize. My favorite podcast has been Afford Anything with Paula Pant and watching Aja Dang's YouTube videos on her own personal journey.

Get a financial planner to help you.  They help you stay accountable, and can provide you with tools to use to help you figure out how much you should be paying to meet your goals.

Live frugally where you can. Discipline. If you can't increase your income, decrease your expenses. I forgo a car because of multiple reasons; I don't have kids, I live in a convenient and walkable part of the city well-served by public transit, I want to lessen my impact on the environment, and I quite frankly just hate driving. Since my company pays for my bus pass, I basically have no transportation costs except for occasionally buying my boyfriend's gas (the rare times he lets me). I also still live at home and get an unbelievably subsidized rent to help my mom out. Ever since I discovered Poshmark, I got rid of a lot of clothes and made over $1,500 on the app. I also now don't buy new clothes; I only buy clothes on Poshmark. I also participate in a yearly "Lent" with my friends that has really helped me break some bad habits (I credit this exercise to me no longer watching TV except for Game of Thrones, and cutting down clothing spending habits by 75%!). It also helps to unsubscribe from newsletters that tempt you to buy more stuff. Living frugally is a mindset. It doesn't have to feel like frugality; think of it as living simply. It could feel more liberating to be freed from ownership of too much stuff. There are less things to think about and less clutter to look at. If you experiment or practice changing your mindset, you may be surprised at what you can let go of materially to live well, while at the same time saving money.

...But don't deprive yourself. When I started my student loan journey, I was definitely overwhelmed by the budget aspect because I wanted to preserve my lifestyle. I didn't want to cut down on the things I valued, especially on food, fitness, and travel. I resolved not to cut corners on the things that mattered most to me. It was important to me to not get into the mindset of deprivation.  Still buying what is nourishing for your soul is crucial in preserving joy throughout the process.

Save for big expenses. Start a separate savings account for bigger expenses, like a trip, car, training, etc. Calculate its estimated total cost and how much could be saved for it per month. Then, establish a savings timeframe and automatic monthly transfer into that account. It's important to not be tempted to dip into that account. Personally, my big ticket items are travel. I don't feel scared to take a vacation because I know I already have the funds for it set aside.

Celebrate the small wins. Whether its setting up that detailed budget spreadsheet or the big-ticket savings account or putting an extra $100 towards your loan, be proud of yourself every step of the way.

Don't obsess over it. Oddly, once I started making progress on my loans, I became obsessed with paying them off. I realized the space it was occupying in my mind was large. It's important to not let the whole process consume your life, and be patient with the journey.

if you're comfortable, use a zero-based budget. Put simply, zero-based budgeting allocates all of your money to something. Through the help of a financial adviser, I realized the money I was saving in a savings account yielding 2.2% interest was just sitting there and not doing as much as if I put it towards other things like investments or putting more towards my loan. Through zero-based budgeting, you can actually find ways to better maximize the use of your money. I realize that this isn't realistic, though, for those that might freelance.

[finnovate-blogs-world-blog]

Financial Hacks, As a Young Parent

“When someone becomes a young parent there is an emotional joy to it, but there are also Financial responsibilities like planning for child’s education.

The occasion was joyous and we were gathered around my wife’s bed in the Nursing Home. As I held my newborn daughter in my arms for the first time, I was mesmerized by her perfection. She was adorable. As I gazed down on her, my father tapped me on the shoulder. “Your new responsibilities are entwined with this little bundle of joy. Have you planned how to save for her? How to invest in her future? We started the process when you and your sister were born.”

The plans that were fluid till then got a jolt. Though I had a fair idea about investments but due to my busy schedule and stressful work it was difficult for me to give enough time and do research myself, I could not risk my little one’s future by doing random investments, I needed to make sure that I could provide for all her wants and needs in the future. After all, she came into this world depending on me to fulfill her dreams. That’s where my dad advised to seek professional advice from a Certified Financial Planner and then my father introduced me to Mr. Sharma.

Case study

With the help of Mr. Sharma, I prepared a financial plan for myself taking all the factors into consideration. Financial goals were discussed and set up to invest wisely so that we could reach the goals I aspired to.

My income is Rs 12,00,000 per annum. The first step is to keep aside at least 6 months of household expenses as a buffer for any emergencies like medical problems or a loss of income that could crop up. My savings of Rs 8,00,000 could be invested in short term debt funds that are safe and can give me a return of 6-7% per annum.

The living expenses I may require with a new baby are about Rs 6,00,000 per annum. About Rs 30, 000 will be paid towards Term and Medical insurance. This will provide a safety net for my family if something untoward happens to me. The medical insurance will ensure that we can avail the best of treatment in case of illness. These are the basic steps towards financial freedom, I learned from Mr. Sharma, my investment advisor. These policies also save tax under sections 80C and 80D.

That leaves an excess of Rs 5, 70,000 that I can invest for my future. Mr. Sharma had concrete plans for investments too! the first step towards building a portfolio for my child is to open a minor account for her in a bank. That done, we proceeded to the next steps. The amount my baby had received as gifts totaled up to a whopping Rs1,00,000. this amount was to be used to start a Sukanya Samriddhi Scheme that is a special small savings scheme for the girl child. Mr. Sharma proposed that any cash gifts she gets in the next 21 years can be invested in this scheme.

He suggested that I open a PPF for my child which will cover a part of her higher educational needs and also save tax for me. As it has a 15-year lock-in, I can look forward to high-interest rates ( current rate is 8% with a cumulative component). An investment of Rs 1,00,000 will give me approx. Rs 30,00,000 at the end of 15 years which I can use as the fund I need for her higher education.  This amount can be reinvested in short term debt or in PPF itself till needed. This will also contribute towards my 80C investments and returns that accrue in her file are tax-free too.

Recurring deposits can be the best way to look after my short term goals as the investment is low risk and protects my capital. Setting aside Rs 1,50,000 p.a. in these could result in creating a corpus of Rs 5,25,917 in 3 years at the current 8% interest rate. This will suffice in paying the admission fees for High School and also for a down payment on our car.

SIP’s will be the other instrument that will make reaching goals easy, advised Mr.Sharma. The rest Rs 3,20,000 can be invested to create corpuses for mid and long term goals.  he recommended choosing low-risk blue chip oriented funds for reaching mid-term goals. I reckon I would need about Rs 4,00,000 in 8 years for the vacation I dream of giving my family and Rs 15,00,000 for the down payment of my house. I am not in favour of buying a very expensive and large home as it will put a large burden of EMI’s on my shoulders. Rs 1,20,000 in SIP with a CAGR of 15% in 8 years will give you roughly this amount (Returns of most blue-chip equity fund SIPs over the last 8 years is over 15%). The house will also become an asset for our child. Real estate is also an asset class that has an important place in financial planning for the future.

The rest of the income that needs to be invested for the long term is about Rs 2,00,000. SIP’s in a variety of funds like ELSS (I still need approximately Rs 50,000 in tax saving instruments), large-cap and the riskier but higher return generating mid and small-cap funds will easily take care of my future long term goals of my child’s marriage and retirement. The historic returns over 25 years in a good and stable mid-cap fund are well over 16%. This should create a corpus of 6.7 crores. My budget for my child’s wedding would be about a crore and retirement corpus about 10 crores. This amount will be a good way to start saving towards it. I do believe that having a retirement plan is the best gift that we can give our children. The burden of looking after parents financially is huge and no child should be made to do it.

Conclusion

Financial planning is very important. It eases the mind and gives me a direction. I am forced to budget and that helps me save and invest to make my dreams come true. My child’s future is tied up with my plan, so I cannot take too many risks.  The trick is to evaluate my current position, invest smartly and keep reviewing these dynamic plans as required. Thank Goodness for Mr. Sharma!

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Budget Finance Budgeting & Financial Tips

Budget Finance Budgeting & Financial Tips

By Mel Feller, MPA, MHR

Mel Feller Seminars, Coaching For Success 360 Inc. /Mel Feller Coaching    

 In order to create a budget, also known as your cash-flow plan, you will first need to find out where all of your money is going. You will need to find any mortgage or rental statements along with any insurance, homeowners or renters, payments and utility bills. Have a car loan? The amount you are paying per month will be needed. Bank and credit card statements are usually available online with up to three months of transactions, so reviewing these will help remember and organize recent expenses – so they can be placed on the budget if appropriate. For those of you that have not been tracking expenses before – you may be surprised by what you find.

Remember, this is just a quick start budget – you may not have all the information so if you do not have exact numbers your best guess will do. Once we get some of the basics down, we will move onto a much more detailed cash-flow plan. However, for now…let us keep it simple.

 As you move forward with the budgeting process, begin collecting and noting all expenditures and try to categorize them as best you can right away. Having this information as early as possible will be a huge help when it comes time to completing your much more detailed cash-flow plan.

 Budget tip #1. Be realistic with your budget. Sure, we could all save a bundle if we did not have to eat or entertain ourselves. You can cut your grocery bill by up to 15% or so, but a 25% or more reduction in spending is just unrealistic. Plan on budgeting some money for entertainment, everybody needs some reward.

 Budgeting tip #2. You are budgeting your money to save money. You are doing this for a reason - make it count. Try to save at least 5% of your income each month in your budget.

 Budget tip #3. Track your actual spending. Do not fall into the trap of setting up a detailed budget and then forget to track against it. Track your spending daily, weekly, fortnightly, monthly, hourly, whatever - just make sure your budget is tracking what you actually spend!

 Budgeting tip #4. Make a list of free things to do each month. A concert in the park, hiking on the weekend, volunteer time at a soup kitchen. Be creative.

 Budget tip #5. Correcting bad spending habits. You have invested your hard-earned money, into a budget spreadsheet or budget software, now make it pay off. How do you correct bad spending habits? Discipline and learning from your past mistakes.

 Budgeting tip #6. Plan for the unexpected. Make sure you budget for putting aside some emergency funds for unexpected events, medical bills, automobile repair, loss of employment, etc. I recommend at least $1,000.00

 Budget tip #7. Do not panic. If you spend more than you make in a given month, treat it, as a lesson learned, not the end of the world.

 Budgeting tip #8. Reward yourself. Try to reward yourself at the end of each month for a job well done. This will help you stick to your budgeting goals in the future.

 Budget tip #9. Stick with simple budgeting tools. Do not get lost with the latest and greatest budget software that has the most bells and whistles. The more robust the budget program, the more confusing. Keep it simple.

 Budgeting tip #10. Do not let your budget rule your life. The world is stressful enough today, it does not need any help from you. Stick to your budget as best you can, learn from your mistakes and try to improve every month.

 I hope that these budgeting tips have given you the tip that will aid you in your budget goals!

Mel Feller, MPA, MHR, is a well-known real estate business consultant and speaker, specializing in performance, productivity, and profits. Mel is the president of Mel Feller Seminars with Coaching For Success, Inc. and Mel Feller Coaching, a real estate and business specific coaching company. His three books for real estate professionals are systems on how to become an exceptional sales performer.  His four books in Business and Government Grants are ways to leverage and increase your business Success in both time and money!

[asraspeaks-blog]

Dudes and Money= Financial Abuse

I'm not trying to generalize, but I've seen this scenario so many times, I've lost count.

Why do dudes steal money from their wives/girlfriends/partners for other women?

Why do you have to steal my money to fund your girlfriend's lifestyle? Why can't you just use your own money?

My Ex did this to me, despite the fact he makes more than I do. His sense of entitlement was/is repulsive. Once I separated my accounts, he started threatening to kill me and the kids. Post-divorce, the asshole had the nerve to call my accountant and ask about my tax return. Dude, focus on your own money. Stop looking at what I have. It's never going to be yours. Now his new asshole tactic is not sign the document for the QDRO. The State entitled me to 1/2 of his retirement. He's owes me a lot more, but I'll take what I can get for now.

My friend, K, has an ex that stole money from their business to fund a rando woman. He now hides inventory from their business and sells it under the table to make cash, while denying her and five children spousal and child support. The court ordered her to sell their home because he wants 1/2 the equity. Nevermind she has to find shelter for herself and five children, while her ex lives his bachelor life.

My friend, N, has an ex that used all their money on his extended family and girlfriend, while denying her and their children basics. She pulled herself together and became a medical doctor. She makes good money, but the trauma of financial abuse still weights on her. Post-divorce, her ex resorted to stealing their children's personal items (he stole their winter coats and boots that she bought). She basically strips her children before they have visitation with their father.

My friend, S, has an ex that used emotional manipulation to control all their accounts. Once he had everything in his control, he filed for divorce thinking he could take everything out from under her. State law gave her half of everything after all attorney fees are paid. Her ex files dozens of motions and is attempting to empty out the estate so she gets nothing.

My friend, T, has a violent ex and made sure she knew it. When she asked to buy replacement underwear (her stuff was torn and needed to be thrown out) he screamed at her and said she was being selfish. He said they were struggling and her demands were too much. A day later, this pile of shit went out and bought a $500 fedora. She can't get new underwear, but he needs a fucking fedora.

My friend, Y, has an ex that convinced her to only keep a small percentage of her income for personal use. His financial plan (so he told her) was that they were saving for a house and needed to put aside a majority of their income for a down payment. Of course, he kept his income all to himself, as well as a majority of her savings. He then opened accounts in China and Toronto and hid money. He filed for divorce. They spent the next three years in court battling for money he had stolen. She got it and then used it to pay her lawyers.

I have dozens and dozens of stories. When I speak to women, I always remind them to keep their money separate or least have cash to get away if they need to.

Deadbeats are selfish. They will deny women and children basic needs so they can drive a fancy car, wear nice clothes, eat out, impress rando women, buy a fucking fedora.

Having a career and income has been liberating. I know this isn't the reality for many women. So for the women that can help, help. Advice is good, but sometimes a bag of groceries is better. Cash is king so if you can spare some, please do. Donate to your local women's shelters. Cash, food, clothing, toiletries, books and toys, anything can help. Spare cell phones are also much needed and can save lives.

Do not abandon women going through divorces. This happened to me. A majority of my so-called Muslim friends all disappeared. This happens a lot and it's always shitty. Sometimes a phone call to say hello can mean the world to someone whose life is shattering. Playdates for kids, coffee, movies are awesome.

We have to help each other. And if you can't help, then don't hurt.

[lacestem28]

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