What to Consider When Choosing a Budget Before Searching for a New Home

Choosing a budget prior to looking for your new home is a crucial step in the process, and it's one you need to take seriously. There's more involved to owning a home than just making enough numbers line up to match the price tag of a home you want.

You need to stay within certain guidelines. Otherwise, your home may own you more than you own it.

Start With the 28/36 Rule

NerdWallet argues in favor of starting with the 28/36 rule in terms of home affordability. Factor 28% of your gross income every month towards housing-related costs, but stay within 36% of your total debts. 

This rule doesn't actually apply to everyone and every situation, but it's a good rule of thumb to start with.

Work With a Mortgage Lending Service

Doing your own initial budget is a great start, but it helps to have an industry professional take a second look. Not only can they confirm the accuracy of your budget, but they can also give you an objective look regarding your finances. 

Whether you work with Fairway PNW in Silverdale, WA, or another service closer to where you are looking for a home, working with a mortgage professional increases your odds of balancing buying the most home you can without breaking your budget in the process.

Make the Biggest Down Payment You Can

The larger your down payment is, the lower your monthly mortgage payments will be. In many cases, you might be able to buy a home without the standard 20% down. 

However, if you can afford that or more, then you might be able to avoid private mortgage insurance and the monthly costs that will entail.

Financing Upkeep

Regardless of the age, condition, or size of your next home, it's going to need upkeep and maintenance. Repairs will creep up on you eventually, too, and you'll likely have many ideas about home improvements. 

As a general rule of thumb, you should set aside 1% of the home value every year for such matters. It's better to do 2% for older homes.

Buying a home is a tremendous accomplishment in life. However, if you don't choose your budget right before searching for your next home, then you might wind up overburdened and with a quality of life that you don't enjoy in that home. 

Even worse, you might get in over your head and risk losing the home you worked so hard to get your hands on.

Into Retirement: 4 Ways to Make Managing Your Money Easier

Knowing how to manage money better is one key to achieving your financial goals. You don’t need to have a high-paying job or funding from relatives to improve your finances. 

Learning management skills is all it takes to reduce your spending and improve your ability to save and invest, hence achieving financial goals that seemed impossible. 

Here are four strategies you can adopt to manage your money effectively.

Create and Utilize a Budget

People who have a well-lined budget manage to tackle all their finances effectively. You need to spend a few hours at the start of every month and manage your money effectively by setting an accommodative budget. 

It is important to note that you also need to stick with your plan and utilize it to the end, and plan for your money. It is essential to regularly visit the budget within the month to know how much you have spent, how much you can pay out of your initial plan, and what you can save in the process.

Develop a Saving Habit

Avoid putting yourself in situations where you rely on credit for unexpected expenses. Prioritize on building your emergency saving account. Experts recommend a saving of three to six months’ worth of expenses. 

It is advisable to have a separate account for your long-term saving plan. Setting aside some of your income saves you from financial disasters and helps meet your financial goals.

Wealth Management

It is an investment advisory service that is involved in the management of affluent clients’ assets. Wealth managers create a close relationship with their clients to understand their financial needs and plans and help build a portfolio that will enable them to meet their goals. 

Some companies, like TFG Wealth Management, know that wealth management will help you achieve your goal by providing investment advice, accounting, and tax and retirement services. It is essential to check the credentials of professional wealth managers and see which descriptions best suits your needs.

Create a Plan to Pay Down Debts

Debt is a financial burden that affects your current budget and future savings. Take it thoughtfully and make it a precedence to pay off your debts. 

When you feel overwhelmed and have difficulty making payments, it is advisable to seek help from a professional non-profit credit counselor. They will give you financial advice that helps you develop a realistic budget and help you choose a good debt payment strategy.

The above four strategies may help you manage your money effortlessly. Always plan for your money at the beginning of every month by creating a realistic budget. 

Planning for your money will help you contribute to your savings account and getting out of debt. It is advisable to hire professional assistance to help you plan your finances.

How to Make a Realistic Budget for Your New Business

Starting a new business comes with a lot of work. One of the most important areas of planning is creating a budget that is actually realistic. If you're at this stage in your new business prep, here are a few tips to help you create a feasible budget.

Start by Assessing Your Income

No budget will work without a person first having an idea of what their monthly income will be. Take a few moments and track your business's income. You'll want to record the amount and the sources. 

If you have different categories of income, say from freelance writing and selling a writing course, then breakdown your income into these categories. This will better set you up for understanding how your income changes over the long-term and why.

Figure Up Your Fixed Costs

The next step that you'll want to take is figuring up your fixed costs. These are going to be expenses that cost the same each month. Some examples are rent, utilities, payroll, and even web hosting. 

You can easily find these expenses on your business spending management software reports or by going through your business bank statements. Once you get all of your fixed costs written down, total them up.

Record Your Variable Expenses

Variable expenses are the next section of your budget that you need to concern yourself with. These are expenses that change in amount each month or are only charged once in a while. 

Some examples of variable costs for your business may be gas, electricity, sales commission, travel costs, and shipping costs. Over time, you'll get to see how much these expenses fluctuate, and you'll be able to create a more accurate average of what your variable expenses will be monthly.

Take a Look Over All You Have

Now, we're getting into the fun part. You've done all the research work to get your numbers. It's time to put them all together and do the math. Take your income and subtract your expenses, both fixed and variable. 

This will reveal how much your business is cash flowing each month. From here, you can determine if your business can handle taking on more debt or if you need to find ways to cut down your expenses.

Creating a realistic budget for your business is all about using real numbers in your calculations. When you notate what you're paying on fixed and variable costs and reduce that total amount from your income, you can clearly see how well your business is doing in a financial sense. Budgeting can be very easy as long as you take the time to do it.

4 Monthly Expenses You Can Plan for Beforehand

 
Some expenses, like emergency medical bills and unexpected home repairs, come out of the blue. These are the costs that hurt the most, since you never have a chance to plan for them in your budget. Other expenses are a routine part of everyday life. 

They come around every month without fail, so it’s your responsibility to prepare for them. Here are four such monthly expenses that you should account for in your general budget.

Rent or Mortgage Payments

One of your biggest monthly expenses comes from your constant need to keep a roof over your head. Unless you bought your house via cash purchase or you’ve already paid off your mortgage, then you’re going to need to make some sort of monthly payment, either to your landlord or the bank. Make sure you have a clear idea of exactly how much you pay each month.

Utility Bills

Not everyone pays for the same utilities (since every property functions differently and has different agreements), but you probably have to pay each month for some combination of gas, water, and electricity. 

The payments will fluctuate slightly based on monthly usage, but they should stay relatively consistent. Take a look at your utility bills for the last few months so you can determine a general average. Then, incorporate this average expense into your monthly budget.

Internet

If you have the internet at your home, then you have to pay for it on a monthly basis. The total amount paid to internet providers each month will depend on the specific company and the type of service. 

Some providers combine internet and cable in a single package. Examine your most recent bill so you’ll know how much you’re paying.

Food

This expense isn’t as easy to calculate as the others on this list, since it is never presented as a single monthly charge. All the same, you can determine how much you typically spend by keeping records and doing some basic math. 

For ten days, write down how much you spend on food. This should include visits to restaurants, snacks from convenience stores, and trips to the supermarket. Add up the total after ten days, then multiply by three. This final answer will be your approximate monthly food bill.

Personal finance is all about understanding your financial reality and then acting accordingly. These four expenses are among the facts of life, so you’d better account for them when considering your finances. By including these costs in your budget, you’ll make it easier to stay financially healthy.

How You Can Budget for the New Year: Saving Tips for Your Family

 

Every time people get fascinated with making New Year’s resolutions. That is because it’s that perfect moment of the year to stay away from work and enjoy time with the family and to start working on yourself. 

To make the new year more exciting, they may decide to travel to an exotic destination or even splurge on a big gift. Others may choose to spend time with their favorite hobbies and build skills. During these times it can be extremely easy to go overboard and spend way too much money on things you don’t need.

Planning on how to spend your money and knowing where it will go is common sense that people often overlook every year. Read on to understand why it is essential to budget for your new year and how you might be able to effectively achieve this goal.

Importance of budgeting for the New Year for you and your family

The holidays and a new year can be extremely stressful for some families because of financial questions. With things like taxes, salary negotiations, and holiday expenses appearing, you can be sure that this stress is warranted. Here are some tips to make the whole experience a little less stressful:

Managing debt correctly

If you budget for your holiday and adhere to it, you will reduce your chances of falling into debt. You will know when and where to spend your money. Doing that will allow you to save for the days ahead and also clear your debts in time. 

Managing debt or large purchases can mean that you need to look for personal loans online but make sure to do your homework. This option can help get things moving in the right direction. Consider these loans for consolidating debt but only in the interest rate is manageable. 

There are many different methods that unsavory businesses can trap unsuspecting spenders at a ridiculous rate. 

Start saving for big purchases

After you have planned what big purchases you are going to save for, you can begin putting that money away and making the saving process more achievable. That will prevent you from overstretching on your spending. 

Plan ahead to know your limits

Planning financially for trips, gifts or toys early will also enable you to know what you can do for yourself because you will have enough time to do that. More often, people spend too much on gifts that they can’t actually afford and end up in over their heads.

Choose low-cost alternative activities

Consider the activities that you want to do with your family each season this year and consider if there is a lower cost alternative to these activities. It’s not a must that you travel to a 5-star resort or buy tons of gear for costly outdoor activities. 

Have you considered doing a simple day trip in the car or a sleepover in the backyard in a tent? You can also visit many national forests as they are extremely affordable options for getting away. 

Book necessary flights early

Do you know that travel costs can change substantially depending on the time that you are looking? For example, Google will show rates differently depending on what your search history is recent, the time of day, or if it around a holiday. 

When you book your flights way in advance (like 6 months+) of holidays, you will likely save big and this will enable you to spend the money on other parts of the trip.

These tips can help you realize your financial dream and achieve peace-of-mind no matter the reason for spending.

Eco-Friendly Budgeting Guide

In its most basic sense, the best eco-friendly budgeting equals recycling. However, if we base it on the latest recycling guide, the US produces a significantly higher amount of waste compared to other developed countries, but there are only a few people who recycle.

If you start changing your purchases from single-use products to those that are recyclable, not only will you save money, but you will also help in saving the environment. With this said, here is our ultimate eco-friendly budgeting guide that you can easily apply to your lifestyle. Continue reading below to know more.

Purchase Reusable Items

If you buy single-use products, such as a paper plate, paper towels, disposable shavers, etc., we know that those are the much cheaper option, especially if you are on a budget. However, in the long run, they can become a much more expensive option, because you are buying them every time. 

That is why we recommend that you purchase reusable items because prices are only part of budgeting. What should matter more is the object’s sustainability. Know more about this below.

When you purchase an item, more than its price, you should also see how durable it is. This is especially true for certain equipment that has mechanical gears. It also has been tested that items that are less expensive, are usually those that are more likely to stop working sooner. 

Nevertheless, purchasing more expensive materials is not always the best option, as well. That is why it is best to do your research; if you are in the talks of buying a piece of equipment.

Now, there are also disposable items that you can still use to prolong their usability. In other words, you can use it aside from its original purpose. Therefore, it can be used more than once. A good example of this is newspapers. Newspapers are quite useful when after you are done reading. 

You can use them to wrap fragile items for shipment, you can use them as floor coverings when painting the wall or ceiling, you can use them as wrapping paper for gifts, you can even use them in your garden.

With this said, here are a few single-use things that you can swap for reusable ones:

• Paper Towels to rags
• Paper Cups to Mugs or Glass Cups
• Paper Plates to Washable Plates
• Paper Napkins to Cloth
• Plastic Straws to Steel or Bamboo Straws

Bring Your Own Bag When Going to the Grocery

Most of the time, people go to the grocery on a weekly basis. Today, however, more and more grocery stores are slowly removing plastic bags in an effort to help save the environment. That is because those plastic bags that you see are typically made with petroleum. And when manufacturers produce plastic, they are also releasing carbon gases into the atmosphere.




Today, grocery stores are selling reusable grocery bags for an inexpensive price. These are much sturdier than plastic bags and are the better option. However, if you really want to save money, it is best to bring your own bag. 

As a customer, you can ask for a small refund when you bring your bag. Doing so can help you save up to $10 per week. Not only that, but you will also limit the amount of plastic that will inevitably be tossed into the environment.

Shop at Your Local Farmers Market

Grocery stores are the usual option for most people, and that is alright. You can buy almost anything in groceries these days. However, most of the produce that you find inside groceries were produced by large companies that produce harmful gases during production. 

If you are looking for ways to save money on produce while limiting your carbon footprint, your best bet is the local farmers market.

These small businesses allow farmers to sell their produce fresh from their farms, removing the need for middlemen and any further deliveries, which can emit harmful gases, such as carbon dioxide, nitrous oxide, and methane, which are the main contributors to global warming. 

On top of that, shopping at a farmers market will offer much needed support to the farmers, as well as save you a few dollars, since they offer much lower prices.

Replace Household Items with Sustainable Products

Sustainable household items do cost more than other generic items, but they last longer. Not only that, most consumer grade items, such as light bulbs, can also help you decrease your utility bills. 

Take for example compact fluorescent lamps (CFLs) and light emitting diodes (LEDs), these lightbulbs are much more environment-friendly and they also last longer. Aside from that, they use 20% to 80% less than other bulbs.




Another way you can lower your bills is by replacing leaky water outlets with low water usage ones. These can greatly help reduce your water bill, therefore saving you money. This is especially good for people who have multiple toilets, showers, sinks, etc.

Conclusion

You can always save money while also caring for the environment. Although these sustainable or durable items might seem expensive at first, they will help you save money in the long run. That is why you need to think of these as investments, not only for you but also for the environment.

Lillian Connors is a Senior Content Developer at ACT-ENVIRO, with years of experience in developing content.

Throughout her career, she always looked for ways to contribute to the environment in recycling efforts, while providing valuable information with her written articles.

She’s deeply into green practices, cherishing the notion that sustainability not

only makes us far less dependent on others regarding how we live and do business

but also contributes to our planet being a better place to live on. When she is not

trying to improve the things around her (and herself, for that matter), she likes to

lose herself in a good book and sip on an occasional appletini.

4 Emergencies to Budget for with Your Family

An emergency can happen to any family at any time. Some family emergencies can be expensive to manage, and you can prevent a lot of stress and financial trouble if you are able to budget ahead and establish an emergency fund. 

Here are four types of emergencies to budget for with your family.

Loss of Job

Loss of a job is a big financial emergency. The COVID-19 pandemic has resulted in more than 22 million Americans losing their jobs as of April 2020. Unemployment takes a while to kick in, and not everyone qualifies for this compensation. Consider having six months' worth of living expenses saved in case of a job loss.

Car Breakdown or Accident

Most people need a car to get to work. If your car breaks down, not only could you find yourself out of a job, but you also have to come up with the money to arrange for an unexpected car repair. According to Legacy Auto, a provider of car repair services in Boulder, CO, it is a good idea to have a maintenance and repairs fund for your car. 



As cars get older, they are more likely to need pricey repairs, such as new brakes. If you are in a car accident, you could also be subject to a deductible before your coverage kicks in. Consider budgeting so that you have at least the amount of your deductible available for a car emergency.

Medical Emergency

Medical emergencies are one of the most common reasons why people go into debt. Many people have high-deductible insurance plans that only kick in when they reach a large out-of-pocket threshold, such as $10,000 or even more. Even if you do not have a high-deductible plan, a medical emergency can still be catastrophic to your finances. 

If possible, the budget for your out-of-pocket maximum expenses. You could have this money in a tax-free FSA or HSA. Some of these plans allow you to roll over the funds you do not use in a given calendar year.

Major Household Repairs

Major household repairs can take a big bite out of your bank account. If your furnace or heat pump suddenly fails, you could be looking at a $3,000 to $6,000 replacement cost. A sewer line failure or burst water pipe could cost thousands of dollars to repair. 

A sudden crack in your home's foundation might necessitate extensive repair work costing tens of thousands of dollars. Masonry and electrical repairs are also essential and expensive. If your home needs a new roof, you could be looking at a $5,000 or more expensive. 



A failure of your refrigerator or oven could also be pricey to handle. Several websites list the average lifespan of different parts of your home and home appliances, and you can use that information to plan when they will need to be replaced. 

Some emergencies might be partly covered by your homeowner's insurance, such as a hailstorm that damages your roof. However, you will need to have the cash on hand for the deductible. Insurance companies also factor depreciation when compensating you for covered losses.

Other Minor Emergencies to Consider

Above are four major emergencies that you should budget for as a family. However, a series of minor emergencies could also have a considerable impact on your budget, explains U.S. News and World Report. 

If you had to take an emergency trip out-of-town for a funeral, travel, and lodging could be pricey. A sudden move can also be expensive. Perhaps your landlord decided to sell the house you're renting, or maybe your job decided to relocate you to another city. Maybe you have to take in a niece or nephew, grandchild, or parent. 

The cost of living increases can also impact your finances, especially if your health insurance or car insurance premiums, rent, or utility costs go up without a corresponding increase in your paycheck. You also need to have a budget and plan in place for these situations.

These are not the only emergencies that could impact your household, but they are common. It is wise to expect the unexpected and have a plan in place for anything that might happen. Planning and budgeting give you some peace of mind that you can weather an emergency without having to go into a lot of debt.

How to Effectively Budget So You Can Eat and Drink out More Often

Budgeting gurus often suggest eliminating eating out as a way to save money. For some people, though, dining out is an essential social function and a top priority. If you fall into this group, the question isn’t how do you eliminate eating out but rather how to budget elsewhere so that you can eat out more. Here are four useful budgeting tricks that will let you eat and drink out more often without harming your financial situation.

Cut Back on Fast Food Meals

For many people, fast food is a common breakfast or lunch choice because it’s fast and easy. If you want to budget to eat out at sit down restaurants more often, though, you may want to rethink your fast food meals. Getting breakfast or lunch from the drive through a few times a week could easily cost you the price of dinner and a drink at a nicer restaurant.

Find Restaurants with Great Value

Like anything else, budgeting to eat out more often is all about finding the best bang for your buck. Try out some local restaurants and see which ones give you the best dining experience for your money. Going to a sports bar is much more affordable than a fine dining restaurant, and some of these bars actually have excellent food. Finding a few places that offer great value will help you eat out more without breaking the bank.

Set Aside Some Money Every Week

Budgeting to eat out requires the same financial discipline as any other kind of budgeting. To do it, you should set aside a fixed amount of money every week and not exceed what you’ve budgeted. If you don’t happen to use your full budget for dining out in a given week, you can carry the extra over to the next week or save it for future use.

Cut Costs in Your Grocery Budget

One of the easiest ways to budget for more meals out is to bring down your grocery bills. Buying generic products, cutting back on non-essentials and taking advantage of store sales are all effective ways to bring down the cost of your grocery runs. The money you save on groceries can then be allocated to your budget for eating out, allowing you to get more restaurant meals without actually dedicating more of your net income to food overall.

Following these four simple steps, you’ll be able to budget for dining out more often. While it’s still a good idea not to go overboard, you should easily be able to budget for 2-3 meals out per week without overspending.

How to Manage Finances for Gaming and Activities

Managing your finances is often a balancing act. You need to have enough money set aside to pay your bills, but you still want to be able to have some fun. Here are some of the techniques that you can use in order to handle your finances for the things that you want to do.

Write it In

A part of developing a budget is adding in forms of entertainment. This is what will make your budget easier to follow. If you only account for the essentials in your life, you’re more likely to blow your budget each month. 

Make sure that you set aside a reasonable amount of money for your entertainment. Too much or too little can each be a problem for different reasons. Too much can lead you to getting carried away and too little can lead you to overcompensating in other ways.

Establish a Limit

Having a limit is an important part of managing your financial health. The best strategy to employ is getting a handle on how much it costs to do the activities that you want. Set a reasonable goal for how often you want to participate in these games or activities. 



You may need to look into free options of fun so that you can stick to the limit that you’ve set for yourself in order to alleviate some of your budgetary concerns.

Determine Your Game

As with anything, determining the game that you want to play with your money is important. Online poker is a good one because you can play and earn more money to put towards your entertainment costs. 

Some companies, like Z4 Poker, LLC, know that it’s also something that you can do with other people so that you aren’t feeling isolated. This will help you to better establish time limits in order to avoid getting sucked into something that isn’t fun anymore.

Utilize Savings Goal

Establish a savings goal for the same amount that you plan on putting towards your entertainment. This will give you a buffer for the future. It will also serve to help you to do more with less money. 

It may take a little bit of time, but employing this strategy helps you to keep tighter controls on your financial situation. Another perk is that it’s always nice to be able to save towards something really special.

The art of managing your finances is a skill that you can develop with practice. Use these strategies to help you get a handle on the process.

5 Factors to Consider When You Start Looking for a Home to Retire In

If you are ready to start looking for a home to retire in, it is important to keep some key factors in mind. No longer are you looking just for an attractive house or one that can house a large family. Consider the following before making a purchasing decision.

Location

The location of your current home meets your present needs, you’re the home you plan to retire in needs to be able to serve your needs for many years to come—potentially the rest of your life. 

Give some thought to where you would like to live ten or twenty years from now when you retire. For example, if you live in a rural area now, you might prefer a home closer to other families for increased socialization or enhanced security. 

Alternately, if you currently reside in a busy urban area or near a bustling airport, maybe you would like a quieter retirement community.

A real estate agent should know the area and can help you make housing decisions based on preferred locations for the future. They will also know if there is a large community of seniors in the area you’re looking at, which can be good for socializing and finding senior services in the community.

Safety Features

Depending on your health, you might be interested in a home with safety features, such as a wheelchair ramp or a handrail along the walls of the main living area. Step-in showers and lower-level sinks might be other features to look for. 

If homes you browse do not have these features, and you don’t need them yet, determine whether properties of interest can be readily amended if needed.


You should also think of what health needs you might have in the future. You might feel fine now, but if there is a history of heart problems, strokes, dementia, or other health problems in your family, it may be wise to take these into account.

Family Accessibility

To maintain regular visits with adult children and grandkids, you may want to move closer to one or all of them, as some retirees do. Of course, travel is not usually a problem for families separated by distance, but if travel is a concern, shop for homes within commuting distance of loved ones. 

If you plan for your home to be a gathering place for your family members during the holidays or family reunions, you may want a large home with some spare guest rooms available.

Proximity to Amenities

Even if you plan to stay in the same area, you may want to consider nearby convenience services, such as car fuel, groceries, and prescriptions. Delivery services can handle many errands for you, but you may want to do some of your own pickups and tasks in the future. Make sure that those services are in an easily commutable distance, especially if delivery services aren’t available.

Budget Changes

People’s budgets and income often change when they retire, for better or worse. Plan your lifestyle budget before buying a home to ensure you can still afford house payments when retirement rolls around. Factor in utilities, insurance, and taxes along with the home’s maintenance and repairs.

Preparing for retirement is an exciting time. With careful planning, you can find just the right home to meet your needs for the golden years of life.

How to Prepare for Sudden Unexpected Expenses

No one can predict the future. Just because things have been going well for a long time does not mean that couldn’t all change at a moment’s notice. Something that often suddenly goes wrong for people is the appearance of unexpected expenses.

Whether it’s the cost of sending your car to the shop, calling a plumber, or bailing your friend out of jail, we all experience expenses we did not know we would incur. Overall, you need to prepare for unexpected expenses. They will happen at some point after all.

Budget for Unexpected Expenses

One way to handle unexpected expenses is to budget for them. You can do this by setting aside a certain amount of money each month for costs that cannot be predicted. This money shouldn’t be used for eating out or going to the movies either. If it’s not spent that month, you should save it for even larger unexpected expenses that could be down the road.

Open a New Savings Account

That money you budget for unexpected expenses should be placed into a savings account if it is not spent each month. While what your budget may be enough to pay for certain unexpected expenses, others could be much more than that and cost four to five figures. It’s always good to have a financial cushion in savings. Many people go without one and end up buried in debt as a result.

Consider Ways to Lower Legal Expenses

Legal expenses are one form of unexpected expense people have a high likelihood of encountering. Lawyers and court matters have a reputation for being expensive. While that reputation is warranted, there are strategies you can use to save money to bring those costs down. 



If you live in Riverside, California, for example, make sure to get information on rates and fees from Riverside lawyers. You may be able to find a lawyer that would accept a flat fee arrangement to lower your legal fees.

Lower Other Monthly Expenses

If you want to make space in your monthly budget for the unexpected, one good strategy is to work on lowering your monthly expenses in general. Consider different costs you could lower or eliminate. Do you pay for multiple entertainment streaming services? 

Consider canceling the ones you don’t actually use. Could you use more coupons to save on groceries each month? Could you run your heating less while your family is out of the house? Taking steps like these can make a big difference in your budget.

Calling them unexpected expenses is perhaps not the best descriptor. It is certain you will experience them at some point. It shouldn’t be completely unexpected that you will be forced to change your budget during different months of the year. As such, you have plenty of opportunities to plan for these costs, so you’ll never have to go into debt.

Smart Ways to Pay of Your debts Before 30

Let’s face it - no one enjoys being financially burdened by loans and debts that take up so much of our paychecks each month. Every time you take up a new loan, you are faced with more debts to pay, so less flexibility on your available cash, and more stress.

Below, we share with you some tips to help you pay off your loans before you hit 30.

Start Taking Up Side Gigs

The extra cash will always help, instead of idling away your spare time you can make more money instead. Work a second job on the weekends and do not be afraid to start small.

As you gain more experience working your side gigs - writing, painting, or even manual work like waitressing - you can start earning more.

Use a 50/30/20 Budget

Need some tips on allocating your budget? Try allocating 50% of your paycheck to necessities such as rent, food, and fuel. 30% goes into the things you might want to buy, while another 20% goes into paying off your loans.



This budgeting method is the right way for you to have a relatively flexible budget as opposed to setting a fixed amount of cash for yourself each day.

Pay Extra When You Can

If you are one of the lucky few whose monthly loan repayments are all affordable, why not chip in a little extra now and then?

The more you pay off each month, the less interest you pay, and the faster you will finish your loan repayments. Having some freelance jobs, as mentioned above, will help you to make extra payments now and then.

Focus on Smaller Loans First

If your loans start to seem a little daunting, you can implement the snowball method. This method describes how you can pay the minimum balance on all your debts, but pay extra for the smallest loan that you have.

When you have completely paid off the smallest loan, you move on to the second smallest one. Eventually, you will find yourself settling bigger and bigger debts, and you will be highly motivated to continue.

Utilize Cashback Programs

Some shopping platforms and banks offer cashback programs for your expenditure. Utilize these where you can, and shop only when these programs are provided so that you are maximizing each dollar you make.

You can also hop on to loyalty reward programs in your nearby supermarket or grocery store. The more you spend on your daily needs, the more you will be rewarded for it.

Consider Loan Consolidation

It can be challenging to manage financing a car loan, a mortgage and other debts at the same time. If you have a good credit score, you may be eligible for debt consolidation.

Compare several debt consolidation services and choose the one with the lowest interest rate so that you will only have to pay one debt instead of multiple payments.

Review Your Finances

Take a look at how you have been spending and review your financial goals, both short-term or long-term.

When you have a clearer idea of what you are striving for, it is easier to budget out expenditure for the coming months while you pay off other debts.

How Much Car Can You Can Afford on a Budget

Buying a car is a big step. Motor vehicles are expensive, and they require a lot of responsibility to operate safely. However, the car buying process itself can be very confusing. There are many choices on the market. 

There are coupes, sedans, minivans, SUVs, crossovers, and more to choose from. Deciding on just what kind of vehicle you want to buy can be tough. Just how much car do you really need and can afford on your budget?

Your Basic Needs for the Car

Everyone needs a car for a reason. Some need one to commute to work. Others need one to drive their kids to and from soccer practice. Consider what your bare minimum needs are for a vehicle. This includes the number of seats you need. If you have a spouse, three children and your parents living with you, obviously a car with four seats is not going to suffice.

Used Vs. New

One of the more significant decisions you will have to make is deciding between buying a new car and buying a used one. There are trade-offs for both choices. Older cars are definitely less expensive. However, more modern vehicles are likely to run better and require fewer repairs.

Buying Used Parts

Buying a fixer-upper can be a way to save money. If you are a gearhead or know someone that can work on the car for you, you’ll save even more. There are ways you can save money if you need to perform repairs on a used vehicle. 



For one, used parts are certainly cheaper than new parts from the manufacturer. Buying used Ford Mustang parts, for example, can make the sports car more affordable.

Insurance

You also have to consider the different factors that go into the exact total price to own a car. This includes insurance. Specific vehicles are much more expensive to insure. Others require less in premiums. Obviously, a European sports car will be more costly to insure than an American sedan.

Fuel Economy

Lastly, another thing you need to consider when deciding if a car is within your budget is just how much gas it will require. This is a substantial hidden cost you must find. SUVs, for example, tend to be gas guzzlers. 

Smaller cars, on the other hand, will be much more fuel-efficient. Similar sized models from different manufacturers may also have different gas mileage for both highway and city driving. Try to make a lot of direct comparisons.

Overall, what kind of car you can afford depends on a lot of different factors. There are also several different strategies you can use to save money. Consider all these factors when deciding if a vehicle is within your budget or not.

How to Budget Your Way Out of a Tough Spot

We’ve all been there. Looking at the bills coming in, and not having the funds or means to pay for them all. Financial stress is truly one of the most all consuming kinds of stress. 

It lingers in your mind like a fog, spilling over into other areas of your life, making it hard to concentrate on other things until you’ve been able to make a plan to get yourself out of the mess you’re in. It’s difficult to get yourself out, but I promise that eventually you will be out of this tough spot! The first step?

Don’t panic

This seems obvious but is so hard to do! Our instinct is definitely to panic. Letting yourself spiral into a depressive thought cloud of “what ifs” and imagining you’re living in a cardboard box on the street is an easy way to get absolutely nothing done. 

It won’t help your situation at all, and in fact, will probably hinder your problem solving. So, don’t panic. Easier said than done.

Calculate your debt

Okay, so how much do you owe? What kind of mess are you really in? Is it worse than it seems? Writing it all out will help you visualize your problems, and plan out your next steps to taking care of this problem. Whether it’s an unexpected medical bill, a leave of absence, or a huge unexpected home expense. 




Using an actual, physical piece of paper, tally up exactly how much you owe on this bill. Add this amount up against your regular monthly budget. All bills, all expenses, and all income. How much extra are you able to put towards this expense per month?

Put yourself on a payment plan

Depending on what kind of expense you’re dealing with, or if you’re just months behind on your bills, you may be able to sort out some sort of a payment plan, rather than paying the entire lump sum all at once. Talk to whoever you owe the money to, and see if this is an option. 

In most cases, they are willing to be lenient because it means they have a greater chance of actually getting any money back. Be honest about your situation and let them know your plans to pay them back, with monthly amounts and a timeline. Showing that you’ve put a lot of thought and planning into your payment plan will help instill confidence in them!

Find creative ways to make extra money

Obviously, the sooner you are able to get out of this rough financial spot, the better. You have your payment plan, but chances are that you will be paying things down for a long while. You may not be able to do much, but look into some other ways to make a little bit of extra money. Any extra income you are able to bring in, will go straight towards paying off your debts!

Do you have any skills that you could potentially monetize? Are you crafty? If you can knit, crochet, or sew, it’s possible that you could use these skills to make products to sell to niche communities. Look into selling items on facebook marketplace, local online yard sales, and etsy! 

Most people have something up their sleeve that they can produce in their free time without even really realizing it! Maybe you can sew while you are catching up on your tv shows at night.

If you’re not crafty, there are other skills you have that you could make a little extra money off of! If you’re good at writing, apply for freelance writing jobs in your area and online. 

See if you can clean windows, mow lawns, or mend furniture. There is definitely something out there that you are capable of doing and monetizing for a short period of time to help you get out of this spot.

Ask for help

No one likes to ask for help, but sometimes you have to swallow your pride, and see if someone can help lighten your load. This doesn’t have to be financial help. If you need childcare in order to pick up a few extra shifts, reach out to family and neighbors to see if anyone can watch your kids. 

You don’t have to go through this tough time by yourself, and even just having some moral support from friends and loved ones can help you as you navigate.