With so many people spending more time at home due to COVID-19, having reliable and consistent power is more critical than ever. But with winter about to be in full swingâand serious storms already wreaking havoc on parts of the countryâmany of us are thrust into crisis mode to get the juice back on.
If you haven’t done so already, now’s the time to invest in a generator to restore power to your home quickly. But here’s the deal: This is not a device to learn as you go. You need to know how to run it safelyâbefore you push “start,” and long before the lights go out. Because when you’re in crisis mode, it’s much easier to make dangerous mistakes that damage the generator or, worse, potentially put your family at risk.
Whether you’ve run a generator before or just bought one, here are eight things you should avoid.
1. You neglect regular maintenance
Hopefully, you won’t need to fire up your generator that often. But between the times that you do, you shouldn’t just put it in the corner and forget about it.
“Lack of proper maintenance on generators is the largest problem we see,” says Rusty Wise, owner of Mister Sparky in Cherryville, NC.
To ensure your generator is ready to go, Wise says to check the batteries regularly, and examine and clean the oil and air filter. You should also start it up on a regular basis during the colder months.
“Cranking the generator and putting it under a load is recommended at least once a month to help prevent moisture from accumulating in the windings and other electrical components,” says Wise.
2. You don’t use heavy-duty extension cords
It seems like power failures go hand in hand with severe weatherâand pairing sleet, rain, and snow with the wrong extension cords is a recipe for disaster.
Extension cords range from smaller wire 18-gauge to larger wire 10-gauge, says Wise. Wise recommends at least a 14-gauge outdoor grounded extension cord with GFCI protection for generators.
That’s a general reference, as the extension cord length and the amperage of the load affect how much the extension cord can handle, Wise says. Always consult your manual for specific extension cord requirements.
3. You run the generator from the garage
When a storm knocks out power and you have a generator ready to go, it’s tempting to start it up ASAP to restore power.
But beware: It’s not a good idea to start it up while it’s in the garage, even with the door open.
Generators should be operated outside, in a dry area at least 25 feet away from any open windows or doors with at least 5 feet of clearance on all sides, says Austin Heller, product manager of portable generators at Generac Power Systems.
“Generator exhaust contains carbon monoxide, a deadly poisonous gas invisible to the naked eye,” says Heller. “Only use generators far away from any openings to your home, and install a carbon monoxide detector indoors to make sure you’re alerted when CO is detected.”
4.Â You don’t follow the correct sequence when starting and stopping
Read the owners manual, but generally speaking, Heller says to turn the generator on before plugging in extension cords, then plug any loads into the extension cord.
When powering off, unplug loads from the extension cord. Then unplug the extension cord from the generator before turning the generator off.
“Following these steps will help to protect yourself from electrical shock, but it will also help minimize unnecessary strain or damage to the generator,” says Heller.
5. You have bad gas
We’re not talking about your digestion issues here. If you only started up the generator once and stored it with the remaining gasoline in the tank, it might go bad from sitting, Wise says.
“If you are going to store your generator, make sure to drain all of the gasoline or run it periodically to keep the gas fresh,” Wise says. “There are also gasoline additives that can help to keep the fuel fresh.”
6.Â You add gasoline while the generator is running
Speaking of gas, the generator sucks down gasoline as the hours go by in a power outage, yet you can’t add more gas at the last minute like you do when your car reaches the empty mark.
“Refueling a generator while it’s running or while the engine is hot could be a quick recipe for disaster,” Heller says. “Spilled gasoline could ignite, and create an explosion. Make sure to turn off your engine and let it cool completely before refueling.”
7.Â You run your generator unprotected from the elements
In the rush to get power restored to the house, you might haul out the generator in the pouring rain without setting up an area that will protect the generator from the elements.
Generators can be fired up and run during a snowstorm or rainfall, but they should be operated in a dry area to avoid electrocution or inverter damage, Heller says. Run it on a dry surface under an open, canopylike structure. Or buy a cover made specifically for generators.
8.Â You connect your generator directly to the service panel
Also known as “back feeding,” this connection is extremely hazardous.
“Connecting a portable generator directly to household wiring (electrical service panel) can be deadly to the homeowner, neighbors, or utility workers,” says Heller. “This is an illegal process, and it poses a major risk of electrical fire to the homeowner and any neighbors serviced by the same transformer.”
To get more power to the home safely, hire a licensed electrician to add a manual transfer switch.
“It can be installed to the home’s electrical panel with a manual switch to power everything a homeowner needs backup for,” says Heller. “A certified dealer can assess the home and suggest the correct size generator, while a licensed electrician can safely install the manual transfer switch to code.”
The post 8 Dangerous Mistakes To Avoid When Firing Up Your Generator This Winter appeared first on Real Estate News & Insights | realtor.comÂ®.
Back to school season is in full swing, and that means your kids will be coming home with more and more homework. They will need a productive space to study, and your home office can be a good option. But the office may need a few essentials before itâs ready for the school year.
Get Good Lighting
Studying in the dark can strain your eyes or put you to sleep. To avoid the likelihood of snoozing during study time, youâll want to have adequate lighting. Add a small desk lamp, a floor lamp, or a brighter bulb in your overhead lighting.
Your kids will ideally spend a lot of time studying in the office. Make it comfortable. Invest in a good chair or a lumbar support cushion.
Keep Supplies Within Reach
Your kids may need pens, pencils, paper clips, glue sticks, and all of the things on their long back to school shopping list. Try to fit the necessary supplies in arms reach. Set up pencil holders on the desk surface, or dedicate a drawer to school supplies. If they can simply grab what they need, theyâll be likely to save time and stay on track.
People are more productive when they work in an organized space. So instead of throwing supplies and papers anywhere, make sure everything has a place. Invest in folders, binders, and a file cabinet (and make sure the entire family uses them).
Creative work is done best in a visually pleasing space, so donât skimp when it comes to interior design. Personalize the space and make it one where your family actually enjoys spending time.
Get your home office in shape. Your entire family may be more productive as a result.
The post Back to School: Home Office Essentials first appeared on Century 21Â®.
Buying a second home is a major expense. You might have several reasons for wanting to buy a second house. Perhaps, you’re buying a second home for vacations or weekend getaways. Or, it might be that you want to use it as a rental property for rental income. However, there are things to consider before buying a second home.
The benefits of buying a second home
If you’re buying a second home for rental income, you’ll benefit from many perks, especially tax advantages.
For example, you will be able to deduct interest, property taxes, homeowners insurance and other expenses against the property’s income.
Even if the value of the property declines, you will still be able to deduct depreciation from your taxes.
While these benefits are great, the mortgage requirements for a second home are much stricter than for a mortgage on your primary residence. So, make sure you can afford it.
8 Things To Consider WhenBuying A Second Home
1. Financing options: When you bought your first home, you had available to you what’s called an FHA loan – a government loan program.
FHA loans are an appealing and favorite choice among first time home buyers due to their relatively low down payment requirement.
FHA loans require a 3.5% down payment and a relatively low credit score of 580. However, FHA loans are not available to second home buyers.
That is because FHA requires the home to be the borrower’s primary residence. So, if you’re thinking of buying a second home, you will need to either use a conventional loan or financing it with your own cash.
2. A larger down payment: If you’re using a conventional loan for your second home, you will need to come up with a larger down payment.
Lenders for a conventional loan usually requires a 20% down payment of the home purchase price.
But for a second home which will be used as a rental property or vacation home, expect lenders to ask for 30% or even 35%.
3. A higher credit score. For an FHA loan, you only need a credit score of 580 to qualify. But for a conventional loan on a second home, you will need much higher credit score — usually 750 or higher.
4. Expect a Higher Interest Rate: Lenders will likely charge you a higher interest rate on your second home than your primary residence.
The reason is because they see a second home — be it a vacation home or a rental property — as riskier. They feel that you are more likely to default on a mortgage on your second home than on your primary residence.
5. Do your research: Just as you did your homework when you bought your place to live in, buying a second home is no different.
In fact, you’ll need to spend more time researching rental property. That means researching the neighborhood you will want to invest in, knowing the zoning laws for a particular area, the sales price for the homes in the area.
You will need to know if the area has adequate public transportation, schools, grocery shopping, etc,– things that potential tenants will need.
6. Be prepared to be a landlord: if you’re buying a second home to rent, be prepared to be a landlord.
And be prepared to deal with all of the headaches that come with being a landlord. Do you have sufficient time? Can you deal with problems?
Owning a rental property and being a landlord is time consuming. It is also hard hard work and you have to do your due diligence.
You can hire a property manager to run the property for you. But if that is not feasible, you’ll have to do it yourself.
That means, screening new tenants, collecting rent, dealing with delinquent tenants, fixing problems in the property, such as a broken pipe.
So before buying a second home, make sure you have sufficient time and make sure you can deal with the day-to-day headaches that come with being a landlord.
7. Do you have a stable income? Dealing with a second mortgage on your second home is doable.
While you may be able to afford upfront costs, if you don’t have a stable income, you may have to think twice about whether it is a good idea.
Plus, you still have to consider the additional expenses of owning a second home such as insurance, property taxes, maintenance, repairs, property management fees, etc.
8. Are you out of credit card debt? If you have paid off outstanding and high interest credit card debts, then purchasing a second home may make sense.
But if you’re still struggling to pay your debt, you may need to put buying a second home on hold.Â
The bottom line
If you’re thinking about buying a second home, whether it is for investment or vacation, be prepared to save some money, budget for expenses, and come up with a bigger down payment.
More importantly, spend as much time, if not more, researching for the home just as you did when your purchased your primary home.
Speak with the Right Financial Advisor
If you have questions about your finances, you can talk to aÂ financial advisorÂ who can review your finances and help you reach your goals (whether it is making more money, paying off debt, investing, buying a house, planning for retirement, saving, etc).
Find one who meets your needs withÂ SmartAssetâs free financial advisor matching service. You answer a few questions and they match you with up to three financial advisors in your area. So, if you want help developing a plan to reach your financial goals,Â get started now.
The post Buying A Second Home? 8 Things To Consider appeared first on GrowthRapidly.
Recent data from the U.S. Census Bureau shows that home sales were up more than 17% in June 2020 from the month before, and up more than 13% compared to the year prior. Those who have the means to buy a second home are wise to take on mortgage debt (or reorganize their current debt) in todayâs low interest environment.
Those who have the means to buy a second home are wise to take on mortgage debt in todayâs low interest environment.
With low 30-year mortgage rates, owning a rental property that âpays for itselfâ through monthly rental income is especially lucrative with a significantly lower mortgage payment. If youâre curious about buying a second home and renting it out, keep reading to find out about the major issues you should be aware of, the hidden costs of becoming a landlord, and more.
Important Factors When Buying a Short-Term Rental
The issues involved in buying a rental home varies dramatically depending on where you plan to purchase. After all, buying a ski lodge in an area with seasonal tourism and attractions might require different considerations than buying a home in a major metropolitan area where tourists visit all year long.
But there are some factors every potential landlord should consider regardless of location. Here are a few of the most important considerations:
Location. Consumers rent vacation homes almost anywhere, but youâll want to make sure youâre looking at homes in an area where short-term rentals are popular and viable. You can do some basic research on AirDNA.co, a short-term rental data and analytics service, or check competing rentals in the area youâre considering.
Property Management Fees. If you plan to use a property management company to manage your short-term rental instead of managing it yourself, you should find out how much other owners pay for management. Also, compare listing fees for your second home with a platform like Airbnb or VRBO.
Taxes. Property taxes can be higher on second homes since you donât qualify for a homestead exemption. This means higher fixed costs each month, which could make it more difficult to cover your mortgage with rental income.
Competition. Check whether a rental area youâre considering is full of competing rentals that are never full. You can find this information on VRBO or Airbnb by looking at various rentals and checking their booking calendars.
Potential Rental Fees. Check rental sites to see how much you might be able to charge for your second home on a nightly, weekly, or monthly basis.
5 Steps to Rent Your Second Home
Before purchasing a second home, take time to run different scenarios using realistic numbers based on the rental market youâre targeting. From there, the following steps can guide you through preparing your property for the short-term rental market.
1. Research the Market
First, youâll want to have a general understanding of the rental market youâre entering. How much does the average short-term rental go for each night or each week? What is the average vacancy rate for rentals on an annual basis?
Research your local rental market, the average price of rentals in your area, various features offered by competing rentals, and more.
Action Item: Dig into these figures by using AirDNA.co. Just enter a zip code or town, and youâll find out the average nightly rate, occupancy rate, revenue, and more. Although some of the siteâs features require a monthly subscription, you can find out basic information about your rental market for free.
2. Know Your Numbers
You need to know an array of real numbers before renting your second home, including the following:
Average nightly rate
Average occupancy rate
Fixed costs, such as your mortgage payment, taxes, and insurance for the rental
Property management fees and costs for cleaning between tenants
Additional fixed costs for things like trash pickup, internet access, and cable television
Costs for marketing your space on a platform like VRBO or Airbnb, which could be a flat fee or 3% of your rental fee depending on the platform
Youâll use these numbers to figure out the average monthly operating cost for your second home, and the potential income you might be able to bring in. Without running these numbers first, you wind up in a situation where your short-term rental doesnât pay for itself, and where youâre having to supplement operating expenses every month.
Action Item: Gather every cost involved in operating your specific short-term rental, and then tally everything up with monthly and annual figures that you can plan for.
3. Buy the Right Insurance
If you plan on using your second home as a short-term rental, youâll need to buy vacation rental insurance. This type of homeowners insurance is different from the type youâd buy for your primary residence. Itâs even unique from landlord insurance coverage since you need to have insurance in place for your second home and its contents.
Some vacation rental policies let you pay per use, and they provide the benefits of homeowners insurance (like property coverage, liability, and more) plus special protection when your property is rented to a third party.
Action Item: Shop around for a homeowners insurance plan thatâs geared specifically to vacation rentals. See our top picks for the best homeowners insurance companies out there.
4. Create a Property Management Plan
If you live near your second home, you might want to manage it yourself. Thereâs nothing wrong with this option, but you should plan on receiving calls and dealing with problems at all hours of the day.
Many short-term rental owners pay a property management company to communicate with their tenants, manage each rental period, and handle any issues that pop up. Property managers can also set up cleanings between each rental and help with marketing your property.
Action Item: Create a property management plan and account for any costs. Most property managers charge 25% to 30% of the rental cost on an ongoing basis, so you canât ignore this component of owning a short-term rental.
5. Market Your Space
Make sure you appropriately market your space, which typically means paying for professional photos and creating an accurate, inviting listing on your chosen platforms. Your property manager might help you create a marketing plan for your vacation rental, but you can DIY this component of your side business if youâre tech- and media-savvy.
Action Item: Hire a photographer to take professional photos of your rental, and craft your rental description and listing.
Risks of Purchasing a Short-Term Rental
Becoming a landlord isnât for the faint of heart. Thereâs plenty that can go wrong, but here are the main risks to plan for:
Government roadblocks. In destinations from New York City to Barcelona, government officials have been cracking down on short-term rentals and trying to limit their ability to operate. New rules could make running your business more costly, difficult, or even impossible.
Your home could be damaged beyond repair. If you read the Airbnb message boards and other landlord forums, youâll find an endless supply of nightmare rental stories of houses getting trashed and rentals enduring thousands of dollars in damage.
Housing market crash. If the housing market crashes again like it did in 2008, you might find you owe more than your second home is worth at a time when itâs increasingly difficult to find renters.
Reliance on tourism. As weâve seen during the pandemic, circumstances beyond our control can bring travel and tourism to a screeching halt. Since short-term rentals typically rely on tourism to stay afloat, decreases in travel can affect the viability of your business, quickly.
High ongoing costs and fees. Higher property taxes, property management fees, cleaning fees and maintenance costs can make operating a short-term rental costly in the long-term. If you donât account for all costs and fees involved, you might wind up losing money on your vacation home instead of having the property âpay for itselfâ.
The Bottom Line
A short-term rental can be a viable business opportunity, depending on where you want to buy and the specifics of the local rental market. But there are a lot of factors to consider before taking the leap.
Before investing hundreds of thousands of dollars, think over all of the potential costs and risks involved. Youâll want to ensure that youâve done comprehensive research and have run the numbers for every possible scenario to make an informed decision.
Related: How to Invest in Real Estate
The post How to Buy a Second Home that Pays for Itself appeared first on Good Financial CentsÂ®.
Change has to start somewhere, and for many people that change is easier to make if the starting point has some meaning. It can be a birthday, an anniversary, or any other date with some symbolic weight. Most commonly, people choose the beginning of the new year.
If you’re looking for some New Year’s resolutions that will truly change your life, consider adjusting your financial strategy. Here are five things you can do in 2021 to take your money game to the next level.
Interest rates are at near-historic lows, which makes this the perfect time to refinance your debt. Refinancing means switching your loans from your current lender to a new lender in order to take advantage of a lower interest rate. Refinancing can save you thousands of dollars, depending on the original interest rate and total balance.
Â For example, letâs say you have a $200,000 30-year mortgage with a 5% interest rate, and you refinance to a 3% interest rate. Your monthly payment will be $244 lower, and youâll save $31,173 in total interest over the life of the loan.Â
You can refinance auto loans, personal loans, and even student loans. However, if you have federal student loans, you may want to hold off on refinancing. Refinancing a federal student loan converts it into a private student loan. This means youâll give up extra perks and benefits like income-driven repayment plans and deferment and forbearance options.
Transfer Credit Card Debt
If you have credit card debt, you can pay less interest by transferring the balance to a new card with 0% APR on balance transfers. These special discounts usually last between 12 to 18 months, during which time you wonât be charged interest on the credit card balance.
For instance, letâs say you have a $5,000 balance on a card with a 17% APR. If you only make the minimum payments, youâll pay $1,223.61 in total interest. If you transfer that balance to a card with 0% APR for 12 months and repay the balance in that time, you wonât pay any interest.
There is often a small fee associated with balance transfers, around 3% of balance transfers. For example, if you transfer $5,000, youâll pay a $150 fee. That still leaves a net savings of $1,073.61 in the scenario outlined above.
Decrease Your Fixed Expenses
One of the best things to do for your budget in 2021 is to decrease fixed expenses like your car insurance, internet, cable, and cell phone. Call those providers and try to negotiate a lower rate.
Â Go through your transactions for the past few months and write down all the recurring subscriptions like Netflix, Amazon Prime, and DoorDash. Then, group them into categories like âfrequently use,â âsporadically useâ and ârarely useâ. Consider canceling anything you rarely use.
Â See if you can get a better deal on your most popular subscriptions. For example, if you and your significant other both pay for Spotify Premium, get a Spotify Duo account instead, and save yourself $83.88 a year.
Open a Better Bank Account
Most people are missing out on an easy way to earn money through your bank account. You could be leaving hundreds of dollars on the table if you still have a traditional savings account.
According to the FDIC, the current average interest rate on a savings account is 0.05%. Many high-yield savings accounts offer rates between .40% and .60%.Â
Letâs say you have $10,000 in a savings account with .05% interest. After one year, youâll have earned $5.04 in interest. If you moved that amount to a high-yield savings account with .5% interest, you would earn $49.92 in interest over that same time period.
If you’re not investing for retirement yet, this might be the most important financial resolution you can make. Thanks to the power of compound interest, you can start investing now and see huge growth by the time youâre ready to retire.
IRAs and 401(k)s are the two main retirement accounts. Anyone can open an IRA, while only those who have access to an employer-sponsored 401(k) can open one.
Â If you’re not sure how to invest in your retirement account, consider hiring a qualified financial planner through the National Association of Personal Financial Advisors (NAPFA).
If youâre not ready to work with a financial planner, you can use a robo advisor like Betterment or Wealthfront, which will create a portfolio based on your age, income, and expected retirement age. Robo advisors have low fees and are designed to help beginner investors.
How to Keep Financial Resolutions
First, start small. Pick one habit to change at a time. If you try to accomplish five goals at once, you’ll burn out quickly and give up.Â
When you decide on a resolution, break it up into smaller, more manageable tasks. For example, if your goal is to talk to a financial planner about investing, break it down into the following steps:
1) Research financial planners through NAPFA
2) Send introductory emails to three financial planners
3) Choose the one that seems like the best fit
4) Schedule a consultation
Give yourself a deadline to accomplish each of these tasks, and ask a friend to hold you accountable.
Another tip is to tie your resolutions to a bigger goal. Like dieting or starting a new exercise plan, changing your financial habits is hard. If you’re used to grabbing lunch with your co-workers every day, bringing leftovers from home instead will seem like a huge change.
The key is to imagine the future version of yourself who will benefit from the changes you make today. If your goal is to open and contribute to a retirement account, imagine yourself as a senior citizen living comfortably.
When youâre tempted to skip this monthâs retirement contribution to buy concert tickets, think about your future self, what youâd want for them and how they would appreciate your sacrifice. It can also help to remember some of the financial mistakes you’ve made in the past, and how much easier your life would be right now if you had made a different choice.
The post The 5 Best Financial New Year’s Resolutions appeared first on MintLife Blog.
Life in the military offers some distinct experiences compared to civilian life, and that includes your budget and finances. The pre-deployment process can feel overwhelming, especially when youâre organizing your money and bills.Â
Itâs important you provide your family with everything they need to keep you and any dependents comfortable and stable. This means gathering paperwork, making phone calls to service providers, creating new budgets, and organizing your estate. The more you prepare ahead of time, the less you have to worry about the state of your investments and finances when you return home.Â
To help make the process easier, weâve gathered everything you need to know for deployment finances. Read on or jump to a specific category below:
Review Your Estate
Reassign Financial Responsibilities
Update Your Services
Build a Budget
Prepare a Deployment Binder
Protect Yourself From Fraud
Adjust Your Savings
Update Your Budget
Pay Off Debt
Review Legal Documents
Before Your Deployment
Thereâs a lot of paperwork and emotions involved in preparing for deployment. Make sure you take plenty of time for yourself and your loved ones, then schedule time to organize your finances for some peace of mind.Â
investments, and dependents. Itâs an important conversation to have with your partner and establishes:
Power of attorney
Last will and testament
Anyone with property, wealth, or dependents should have some estate planning basics secured. These documents will protect your wishes and your family in the event you suffer serious injury. There are several military resources to help you prepare your estate:
Defense Finance And Accounting Servicesâ Survivor Benefit Plan and Reserve Component Survivor Benefit Plan
Department Of Defenseâs Military Funeral Honors Pre-arrangementÂ
Service Memberâs Group Life Insurance
Veterans Affairs Survivorâs Benefits
The Importance Of Estate Planning In The Military
Survivor Benefits Calculator
Servicemembers Civil Relief Act (SCRA) allows you to cancel a housing or auto lease, cancel your phone service, and avoid foreclosure on a home you own without penalties. Additionally, you can reduce your debt interest rates while youâre deployed, giving you a leg up on debt repayment or savings goals. Learn more about the SCRA benefits below:
Terminating Your Lease For Deployment
SCRA Interest Rate Limits
SCRA Benefits And Legal Guidance
Build a Deployment Budget
Your pay may change during and after deployment, which means itâs time to update your budget. Use a deployment calculator to estimate how your pay will change to get a foundation for your budget.Â
Typically, we recommend you put 50 percent of your pay towards needs, like rent and groceries. If you donât have anyone relying on your income, then you should consider splitting this chunk of change between your savings accounts and debt.Â
Make sure you continue to deposit at least 20 percent of your pay into savings, too. Send some of this towards an emergency fund, while the rest can go towards your larger savings goals, like buying a house and retirement.Â
Use these resources to help calculate your goals and budgets, as well as planning for your taxes:
My Army Benefits Deployment Calculator
My Army Benefits Retirement Calculator
Mint Budget Calculator
IRS Deployed Veteran Tax Extension
IRS Military Tax Resources
Combat Zone Tax Exclusions
Prepare a Deployment Binder
Itâs best to organize and arrange all of your documents, information, and needs into a deployment binder for your family. This will hold copies of your estate planning documents, budget information, and additional contacts and documents.Â
Make copies of your personal documents, like birth certificates, contracts, bank information, and more. You also want to list important contacts like family doctors, your petâs veterinarian, household contacts, and your power of attorney.Â
Once you have your book ready, give it to your most trusted friend or family member. Again, this point of contact will have a lot of information about you that needs to stay secure. Finish it off with any instructions or to-dos for while youâre gone, and your finances should be secure for your leave.Â
While Youâre Deployed
Though most of your needs are taken care of before you deploy, there are a few things to settle while youâre away from home.Â
Romance and identity scams are especially popular and can cost you thousands.Â
Social Media Scams To Watch For
Romance Scam Red Flags
Military Scam Warning Signs
Adjust Your SavingsÂ
Since you wonât be responsible for as many bills, and you may have reduced debt interest rates, deployment is the perfect time to build your savings.
While youâre deployed, you may be eligible for the Department of Defenseâs Savings Deposit Program (SDP), which offers up to 10 percent interest. This is available to service members deployed to designated combat zones and those receiving hostile fire pay.
Military and federal government employees are also eligible for the Thrift Savings Plan. This is a supplementary retirement savings to your Civil Service Retirement System plan.
Savings Deposit Program
Thrift Savings Plan Calculator
Civil Service Retirement System
Military Saves Resources
Additional Resources for Financial Assistance
Deployment can be a financially and emotionally difficult time for families of service members. Make sure you and your family have easy access to financial aid in case they find themselves in need.Â
Each individual branch of the military offers its own family and financial resources. You can find additional care through local support systems and national organizations, like Military OneSource and the American Legion.Â
Family Readiness System
Navy-marine Corps Relief Society
Air Force Aid Society
Army Emergency Relief
Coast Guard Mutual Assistance
Military Onesourceâs Financial Live Chat
Find Your Military And Family Support Center
Emergency Loans Through Military Heroes Fund Foundation Programs
The American Legion Family Support Network
After You Return Home
Coming home after deployment may be a rush of emotions. Relief, exhaustion, excitement, and lots of celebration are sure to come with it. Thereâs a lot to consider with reintegration after deployment, and that includes taking another look at your finances.Â
Update Your Budget
Just like before deployment, you should update your budget to account for your new spending needs and pay. Itâs time to reinstate your car insurance, find housing, and plan your monthly grocery budget.Â
After a boost in savings while deployed, you may want to treat yourself to something nice â which is totally okay! The key is to decide what you want for yourself or your family, figure if itâs reasonable while maintaining other savings goals, like your rainy day fund, and limit other frivolous purchases. Now is not the time to go on a spending spree â itâs best to invest this money into education savings, retirement, and other long-term plans.
In addition to your savings goals, make sure youâre prepared to take care of yours and your familyâs health. Prioritize your mental health after deployment and speak with a counselor, join support groups, and prepare for reintegration. Your family and children may also have a hard time adjusting, so consider their needs and seek out resources as well.Â
FTC | NFCCÂ
The post Guide to Managing Finances for Deploying Service Members appeared first on MintLife Blog.
You probably donât need us to tell you that the earlier you start saving for retirement, the better. But letâs face it: For a lot of people, the problem isnât that they donât understand how compounding works. They start saving late because their paychecks will only stretch so far.
Whether youâre in your 20s or your golden years are fast-approaching, saving and investing whatever you can will help make your retirement more comfortable. Weâll discuss how to save for retirement during each decade, along with the hurdles you may face at different stages of life.
How Much Should You Save for Retirement?
A good rule of thumb is to save between 10% and 20% of pre-tax income for retirement. But the truth is, the actual amount you need to save for retirement depends on a lot of factors, including:
Your age. If you get a late start, youâll need to save more.
Whether your employer matches contributions. The 10% to 20% guideline includes your employerâs match. So if your employer matches your contributions dollar-for-dollar, you may be able to get away with less.
How aggressively you invest. Taking more risk usually leads to larger returns, but your losses will be steeper if the stock market tanks.
How long you plan to spend in retirement. Itâs impossible to predict how long youâll be able to work or how long youâll live. But if you plan to retire early or people in your family often live into their mid-90s, youâll want to save more.
How to Save for Retirement at Every Age
Now that youâre ready to start saving, hereâs a decade-by-decade breakdown of savings strategies and how to make your retirement a priority.
Saving for Retirement in Your 20s
A dollar invested in your 20s is worth more than a dollar invested in your 30s or 40s. The problem: When youâre living on an entry-level salary, you just donât have that many dollars to invest, particularly if you have student loan debt.
Prioritize Your 401(k) Match
If your company offers a 401(k) plan, a 403(b) plan or any retirement account with matching contributions, contribute enough to get the full match â unless of course you wouldnât be able to pay bills as a result. The stock market delivers annual returns of about 8% on average. But if your employer gives you a 50% match, youâre getting a 50% return on your contribution before your money is even invested. Thatâs free money no investor would ever pass up.
Pay off High-Interest Debt
After getting that employer match, focus on tackling any high-interest debt. Those 8% average annual stock market returns pale in comparison to the average 16% interest rate for people who have credit card debt. In a typical year, youâd expect aÂ $100 investment could earn you $8. Put that $100 toward your balance? Youâre guaranteed to save $16.
Take More Risks
Look, weâre not telling you to throw your money into risky investments like bitcoin or the penny stock your cousin wonât shut up about. But when you start investing, youâll probably answer some questions to assess your risk tolerance. Take on as much risk as you can mentally handle, which means youâll invest mostly in stocks with a small percentage in bonds. Donât worry too much about a stock market crash. Missing out on growth is a bigger concern right now.
Build Your Emergency Fund
Building an emergency fund that could cover your expenses for three to six months is a great way to safeguard your retirement savings. That way you wonât need to tap your growing nest egg in a cash crunch. This isnât money you should have invested, though. Keep it in a high-yield savings account, a money market account or a certificate of deposit (CD).
Tame Lifestyle Inflation
We want you to enjoy those much-deserved raises ahead of you â but keep lifestyle inflation in check. Donât spend every dollar each time your paycheck gets higher. Commit to investing a certain percentage of each raise and then use the rest as you please.
Saving for Retirement in Your 30s
If youâre just starting to save in your 30s, the picture isnât too dire. You still have about three decades left until retirement, but itâs essential not to delay any further. Saving may be a challenge now, though, if youâve added kids and homeownership to the mix.
Invest in an IRA
Opening a Roth IRA is a great way to supplement your savings if youâve only been investing in your 401(k) thus far. A Roth IRA is a solid bet because youâll get tax-free money in retirement.
In both 2020 and 2021, you can contribute up to $6,000, or $7,000 if youâre over 50. The deadline to contribute isnât until tax day for any given year, so you can still make 2020 contributions until April 15, 2021. If you earn too much to fund a Roth IRA, or you want the tax break now (even though it means paying taxes in retirement), you can contribute to a traditional IRA.
Your investment options with a 401(k) are limited. But with an IRA, you can invest in whatever stocks, bonds, mutual funds or exchange-traded funds (ETFs) you choose.
If you or your spouse isnât working but you can afford to save for retirement, consider a spousal IRA. Itâs a regular IRA, but the working spouse funds it for the non-earning spouse.Â
Avoid Mixing Retirement Money With Other Savings
Youâre allowed to take a 401(k) loan for a home purchase. The Roth IRA rules give you the flexibility to use your investment money for a first-time home purchase or college tuition. Youâre also allowed to withdraw your contributions whenever you want. Wait, though. That doesnât mean you should.
The obvious drawback is that youâre taking money out of the market before itâs had time to compound. But thereâs another downside. Itâs hard to figure out if youâre on track for your retirement goals when your Roth IRA is doing double duty as a college savings account or down payment fund.
Start a 529 Plan While Your Kids Are Young
Saving for your own future takes higher priority than saving for your kidsâ college. But if your retirement funds are in shipshape, opening a 529 plan to save for your childrenâs education is a smart move. Not only will you keep the money separate from your nest egg, but by planning for their education early, youâll avoid having to tap your savings for their needs later on.
Keep Investing When the Stock Market Crashes
The stock market has a major meltdown like the March 2020 COVID-19 crash about once a decade. But when a crash happens in your 30s, itâs often the first time you have enough invested to see your net worth take a hit. Donât let panic take over. No cashing out. Commit to dollar-cost averaging and keep investing as usual, even when youâre terrified.
Saving for Retirement in Your 40s
If youâre in your 40s and started saving early, you may have a healthy nest egg by now. But if youâre behind on your retirement goals, now is the time to ramp things up. You still have plenty of time to save, but youâve missed out on those early years of compounding.
Continue Taking Enough Risk
You may feel like you can afford less investment risk in your 40s, but you still realistically have another two decades left until retirement. Your money still has â and needs â plenty of time to grow. Stay invested mostly in stocks, even if itâs more unnerving than ever when you see the stock market tank.
Put Your Retirement Above Your Kidsâ College Fund
You can only afford to pay for your kidsâ college if youâre on track for retirement. Talk to your kids early on about what you can afford, as well their options for avoiding massive student loan debt, including attending a cheaper school, getting financial aid, and working while going to school. Your options for funding your retirement are much more limited.
Keep Your Mortgage
Mortgage rates are historically low â well below 3% as of December 2020. Your potential returns are much higher for investing, so youâre better off putting extra money into your retirement accounts. If you havenât already done so, consider refinancing your mortgage to get the lowest rate.
Invest Even More
Now is the time to invest even more if you can afford to. Keep getting that full employer 401(k) match. Beyond that, try to max out your IRA contributions. If you have extra money to invest on top of that, consider allocating more to your 401(k). Or you could invest in a taxable brokerage account if you want more flexibility on how to invest.
Meet With a Financial Adviser
Youâre about halfway through your working years when youâre in your 40s. Now is a good time to meet with a financial adviser. If you canât afford one, a financial counselor is typically less expensive. Theyâll focus on fundamentals like budgeting and paying off debt, rather than giving investment advice.
Saving for Retirement in Your 50s
By your 50s, those retirement years that once seemed like they were an eternity away are getting closer. Maybe thatâs an exciting prospect â or perhaps it fills you with dread. Whether you want to keep working forever or retirement canât come soon enough, now is the perfect time to start setting goals for when you want to retire and what you want your retirement to look like.
Review Your Asset Allocation
In your 50s, you may want to start shifting more into safe assets, like bonds or CDs. Your money has less time to recover from a stock market crash. Be careful, though. You still want to be invested in stocks so you can earn returns that will keep your money growing. With interest rates likely to stay low through 2023, bonds and CDs probably wonât earn enough to keep pace with inflation.
Take Advantage of Catch-up Contributions
If youâre behind on retirement savings, give your funds a boost using catch-up contributions. In 2020 and 2021, you can contribute:
$1,000 extra to a Roth or traditional IRA (or split the money between the two) once youâre 50
$6,500 extra to your 401(k) once youâre 50
$1,000 extra to a health savings account (HSA) once youâre 55.
Work More if Youâre Behind
Your window for catching up on retirement savings is getting smaller now. So if youâre behind, consider your options for earning extra money to put into your nest egg. You could take on a side hustle, take on freelance work or work overtime if thatâs a possibility to bring in extra cash. Even if you intend to work for another decade or two, many people are forced to retire earlier than they planned. Itâs essential that you earn as much as possible while you can.
Pay off Your Remaining Debt
Since your 50s is often when you start shifting away from high-growth mode and into safer investments, now is a good time to use extra money to pay off lower-interest debt, including your mortgage. Retirement will be much more relaxing if you can enjoy it debt-free.
FROM THE RETIREMENT FORUM
Military pension & SS 1/5/21 @ 2:55 PM
Re-locating 1/5/21 @ 2:53 PM
TSP and mortgage 12/23/20 @ 2:41 PM
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Saving for Retirement in Your 60s
Hooray, youâve made it! Hopefully your retirement goals are looking attainable by now after working for decades to get here. But you still have some big decisions to make. Someone in their 60s in 2021 could easily spend another two to three decades in retirement. Your challenge now is to make that hard-earned money last as long as possible.
Make a Retirement Budget
Start planning your retirement budget at least a couple years before you actually retire. Financial planners generally recommend replacing about 70% to 80% of your pre-retirement income. Common income sources for seniors include:
Social Security benefits. Monthly benefits replace about 40% of pre-retirement income for the average senior.
Retirement account withdrawals. Money you take out from your retirement accounts, like your 401(k) and IRA.
Defined-benefit pensions. These are increasingly rare in the private sector, but still somewhat common for those retiring from a career in public service.
Annuities. Though controversial in the personal finance world, an annuity could make sense if youâre worried about outliving your savings.
Other investment income. Some seniors supplement their retirement and Social Security income with earnings from real estate investments or dividend stocks, for example.
Part-time work. A part-time job can help you delay dipping into your retirement savings account, giving your money more time to grow.
You can plan on some expenses going away. You wonât be paying payroll taxes or making retirement contributions, for example, and maybe your mortgage will be paid off. But you generally donât want to plan for any budget cuts that are too drastic.
Even though some of your expenses will decrease, health care costs eat up a large chunk of senior income, even once youâre eligible for Medicare coverage â and they usually increase much faster than inflation.
Develop Your Social Security Strategy
You can take your Social Security benefits as early as 62 or as late as age 70. But the earlier you take benefits, the lower your monthly benefits will be. If your retirement funds are lacking, delaying as long as you can is usually the best solution. Taking your benefit at 70 vs. 62 will result in monthly checks that are about 76% higher. However, if you have significant health problems, taking benefits earlier may pay off.
Use Social Securityâs Retirement Estimator to estimate what your monthly benefit will be.
Figure Out How Much You Can Afford to Withdraw
Once youâve made your retirement budget and estimated how much Social Security youâll receive, you can estimate how much youâll be able to safely withdraw from your retirement accounts. A common retirement planning guideline is the 4% rule: You withdraw no more than 4% of your retirement savings in the first year, then adjust the amount for inflation.
If you have a Roth IRA, you can let that money grow as long as you want and then enjoy it tax-free. But youâll have to take required minimum distributions, or RMDs, beginning at age 72 if you have a 401(k) or a traditional IRA. These are mandatory distributions based on your life expectancy. The penalties for not taking them are stiff: Youâll owe the IRS 50% of the amount you were supposed to withdraw.
Keep Investing While Youâre Working
Avoid taking money out of your retirement accounts while youâre still working. Once youâre over age 59 Â½, you wonât pay an early withdrawal penalty, but you want to avoid touching your retirement funds for as long as possible.
Instead, continue to invest in your retirement plans as long as youâre still earning money. But do so cautiously. Keep money out of the stock market if youâll need it in the next five years or so, since your money doesnât have much time to recover from a stock market crash in your 60s.
A Final Thought: Make Your Retirement About You
Whether youâre still working or youâre already enjoying your golden years, this part is essential: You need to prioritize you. That means your retirement savings goals need to come before bailing out family members, or paying for college for your children and grandchildren. After all, no one else is going to come to the rescue if you get to retirement with no savings.
If youâre like most people, youâll work for decades to get to retirement. The earlier you start planning for it, the more stress-free it will be.
Robin Hartill is a certified financial planner and a senior editor at The Penny Hoarder. She writes the Dear Penny personal finance advice column. Send your tricky money questions to DearPenny@thepennyhoarder.com.
This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017.
The future of work has been on our collective minds for some time.
Technically, you never arrive in the future. It’s always, by definition, ahead of you. Yet months into a global pandemic that has triggered major changes to how we work, many experts are saying the future of work is hurtling towards us.
I sat down with Vice President of People and Communities at Cisco Systems, Elaine Mason. Elaine is a well-read deep thinker on the subject of the future of work, and I invited her to share her own research-based reflections on the changes we’ve seen so far, and what may still be to come.
And no matter what your job, career stage, or aspiration, Elaine shared plenty of tangible advice you can put to work today to prepare for your future professional success.
We focused our conversation on four trends that have been particularly relevant in 2020. These were:
The remote workforce
Diversity and Inclusion as part of corporate strategy
Movement in the gig economy
Shifts in corporate structure and hierarchy
The future of work and the remote workforce
Remote work could be here to stay
As I write this piece in my dining room—while my kids homeschool in their bedrooms—I’m aware that working virtually has become the norm for many across the globe.
Prior to the pandemic, company philosophies on remote work were all over the map. Some organizations have worked virtually for years. Many others resisted the trend.
The world of work has probably fundamentally changed.
But as Elaine describes the current state of virtual work, “With the rare exceptions of lab work, manufacturing, healthcare, [and other frontline professions] the majority of us are now [commuting]… seven feet from our beds to our offices.”
“The world of work has probably fundamentally changed,” she says.
Companies that had previously been cynical of virtual work have been forced to acknowledge that things are getting done. In many cases, executives report higher levels of productivity than ever.
But Elaine warns that studies on productivity are not yet conclusive. Some show productivity is up. Others, however, contend that work time is up, but actual productivity is down. The jury remains out.
So what’s next in the world of virtual work and productivity?
The purpose of the traditional office will evolve
Elaine predicts that virtual work is here to stay … sort of. The way we use the traditional office will likely shift.
"Workspaces will be used more like community service centers," she said. "What you're [likely] to see is those large campuses for a lot of organizations… will probably shrink, and the use of that space will be more event-based or point-in-time-based."
Workspaces will be used more like community service centers … and the use of that space will be more event-based or point-in-time-based.
In other words, there will be an office to go to, but it won’t necessarily be everyone’s default. You’ll go if and when a project or occasion calls for an in-person working session.
The good news? “If you're a new Yorker,” she offers, “that's been dying to live in Wyoming, this [may be] your chance.”
The concept of productivity will evolve
As Elaine points out, the measurement of virtual productivity is messy. Many companies measure by the amount of time employees spend on screens. By that measure, productivity is going up. But so is burnout.
Wearable technologies (think augmented and virtual reality) will allow companies to better measure how employees engage with their work.
In the future, she explains, we will begin to see a shift toward wearable technologies (think augmented and virtual reality) that will allow companies to better measure how employees engage with their work beyond staring at screens.
We’ll see a more complex definition of productivity grounded in actual outcomes versus just minutes online.
HOW YOU CAN PREPARE
Rethink your geography. If you want to make a move, this may be your moment.
Consider your priorities. Let go of the mindset that busyness equals productiveness. What impact do you want to have, and what work do you need to prioritize in service of that?
The future of work and Diversity and Inclusion
While the pandemic has challenged companies to figure out remote work on the fly, social justice happenings have pushed Diversity and Inclusion to the forefront of corporate priorities.
Progressive organizations are weaving Diversity and Inclusion into the fabric of their business strategies.
Elain says, "Companies are focusing on the triple bottom line: People, Profit, Planet… putting social justice into how they operate.”
So what does this look like in practice?
According to Elaine, companies are moving away from having standalone diversity strategies and departments. Progressive organizations are weaving Diversity and Inclusion into the fabric of their business strategies.
Employee Resource Groups (ERG’s) are a great example of this trend. ERG’s are voluntary, employee-led groups within organizations that aim to foster a diverse, inclusive workplace. Each group typically includes participants who share a characteristic such as gender identification or ethnicity.
Employee Resource Groups are no longer just there to serve participants—they are informing company investment decisions.
At Cisco, Elaine says, the executive leadership team has started meeting quarterly with ERG’s to understand their experiences and incorporate their ideas into business decisions. These ERG’s, in other words, are no longer just there to serve participants—they are informing company investment decisions.
ERG recommendations are helping to shape product development and positioning and marketing strategy, all of which contribute to top and bottom lines.
Organizations like Twitter are beginning to compensate ERG leaders—historically these have been volunteer roles—in recognition of their strategic value.
HOW YOU CAN PREPARE
Lean into diversity. Don’t just pay it lip service, but be proactive in engaging with a variety of voices and experiences.
Be humble. Know you’ll make mistakes along the way. “Listen. And assume you don’t know [things],” Elaine says.
The future of work and the gig economy
“Gig is having fits and starts,” Elaine said. She described the tension that many American workers face between desiring the independence of gig work but also relying on the healthcare and benefits provided by full-time employment.
Job insecurity will continue to push people to consider going out on their own, while the need for employer-provided health insurance will challenge that choice.
And she believes that tension will keep the gig economy in the US in fits-and-starts mode. Job insecurity will continue to push people to consider going out on their own, while the need for employer-provided health insurance will challenge that choice.
HOW YOU CAN PREPARE
Be incredibly clear about what you’re qualified to do. What do you want to do? Where those things overlap? “This requires a good degree of self-awareness and an understanding of what [you’re] known for today."
Decide where you need to invest. Are there experiences, credentials, references you need to accumulate? Do those things early.
Focus on standing out. If you do business strategy consulting, for example, is there a unique angle you can offer to help yourself stand out from other such consultants? Differentiation will matter more as the gig economy grows.
The future of work and shifts in corporate structure and hierarchy
Recent years have revealed a good deal of pendulum swinging when it comes to how much structure and hierarchy is best.
“There was a real trend in the last decade,” Elaine explained “of breaking down structures [and] silos.” She described how online shoe-retailer Zappos experimented with the Holocracy—a means of giving decision authority to groups and teams rather than individuals. (Spoiler: they’ve since moved away from this un-structure.)
Companies, in Elaine’s opinion, are working to determine the ideal balance of hierarchy and freedom. And the previous trends we discussed are having a big impact on that decision.
Everyone is trying to design for agility and resilience, two of today’s buzziest words.
So while some companies are leaning toward structure and hierarchy while others lean away, the common thread she sees is that everyone is trying to design for agility and resilience, two of today’s buzziest words.
There’s nothing like a global pandemic to remind a company that it needs to be ready for absolutely anything. As organizations assess how they’re organized, they’re asking questions like “How fast can we recover? What contingencies do we have in place? What plan Bs and plan Cs do we have?”
Elaine doesn’t know exactly what structure the organization of the future will take on. But she does offer some actionable wisdom.
HOW YOU CAN PREPARE
Gain new skills. Whatever your role, function, or industry, upskill yourself on being ready for change at any moment
Think broadly about what “career progression” means for you. As companies evolve, titles and promotions may no longer be the thing to shoot for.
For Elaine, she measures her own progression through three lenses that you too might consider:
Economic. How much money do you want or need to make?
Impact. "How close are you to positions of power and authority that allow you to make the largest impact on an organization?"
Personal growth. Are you learning new things as you go?
And there you have it. No one, not even the great Elaine Mason, can predict the future. But there are some actions you can take that will be sure to serve you, no matter what the years ahead might look like.
Are you sick of feeling as though you always have more bills than income? Every month, you work hard to bring home a decent wage to support your family. Yet, somehow, when you need funds, there never seems to be anything available in your bank account. Sometimes, the problem might be that you’re struggling to manage your budget. Not knowing how to properly look after your money could mean that you spend too much, too fast. In other circumstances, your issue might be that you’re not taking advantage of opportunities to increase your earning potential. If you’re already doing everything you can to reduce excess spending and improve your financial habits, but you’re still facing money worries, then the following earning boosters could be just what you need. Let’s look at some quick and easy ways to turn your life around.
Consider a new job
All jobs have their pros and cons to consider. However, some roles definitely pay more than others. If you feel as though you’ve already gotten everything you can out of your current position, and there’s no room left to grow, a new role might be the best option. If you don’t want to switch away from the current company that you’re with, you could ask about switching to a different department. If there’s nowhere else for you to go in your current business, then it might be a good idea to see what someone can offer you elsewhere. Many people who switch jobs can take advantage of looking to improve earning potential than those that stick with the same role. Remember, if you do decide to switch to somewhere new, take your time to find something that actually appeals to you. Don’t just jump at the first offer you get. Play the field first.
Stick with learning about topics that you’re genuinely interested in. This will give you an opportunity to get a job in a space that you enjoy.
Improve your reputation
Reputation can make a big difference in your earning potential these days. In a world where we’re constantly connected to the internet, your image online might help you to find a new or higher-paying job. For instance, if you’re connected to the right people on LinkedIn, then you might speak to someone who can give a good word for you in a higher-paying department in your company. Start by auditing your existing personal brand online. See what people will find if they look for your name. If you have any unprofessional social accounts that are set to public, make them private immediately. Once you’re ready to begin building a name for yourself, look for opportunities to network and show off your skills. This could mean that you join some professional groups, comment on forums, or even visit local events from time to time.
Once you’re ready to begin building a name for yourself, look for opportunities to network and show off your skills.
Develop your skills
Sometimes, jobs will pay you a higher wage for a reason. A career that requires a specialist skill will often pay more than a basic entry-level job. With that in mind, it might be worth building on the talents that you already have. Think about the kind of things that you enjoy doing. Maybe you could work on something like coding or improving your technical expertise. The best way to boost your chances of getting your new skills recognized is to check out some student loans and head back to school. There are tons of different courses that you can take to add new certifications to your resume. You could also look into building out your knowledge about other topics online, taking free courses in your spare time. Stick with learning about topics that you’re genuinely interested in. This will give you an opportunity to get a job in a space that you enjoy.
Ask for a promotion
When’s the last time you just asked your boss whether they could pay you more? If you know that you’ve been delivering excellent work for a good while now, then it might be a good time to ask for a raise. Most business leaders won’t want to take the risk of losing an employee that’s valuable to the team. Check websites that list job openings and find out if there are any higher-paying companies out there that provide a better wage for the role you do now. This will give you a good starting point when you start asking for a wage. If you’re nervous, remember that hiring new team members comes with its own costs. If you’re a great employee, your boss would prefer to keep you around most of the time—even if that means paying more.
If you want to be able to pay your bills each month without worrying about your bank account, it’s worth keeping your mind open to ideas that could increase earning potential.
Start a side hustle
Finally, if you’ve already gone and built some new skills at school, but you haven’t found the perfect job to use them in yet, why not try creating your own career with a side hustle? This is basically a job that you can do on the side to add more income to your bank. Many people have discovered that they can put a few extra hours into their work online each day and make a hefty amount of additional income. Thanks to the gig economy, it’s easy to find opportunities to make cash with things like graphic design, content writing, website development, and more. Start by making a list of the kind of things you’d be interested in doing. You might even decide to create your own business and sell items online using a dropshipping company. Dropshipping services handle things like manufacturing and shipping products for you, so you just need to build a brand and find customers.
Increase your earning potential
Money might not make you happy, but it’s one of the most important things in many of our lives. If you want to be able to pay your bills each month without worrying about your bank account, it’s worth keeping your mind open to ideas that could increase earning potential. Whether you’re developing new cash opportunities with your current employer or thinking about becoming your own boss with a side hustle, make the conscious effort to invest in yourself this year. The quicker you start working on your new earning opportunities, the more money you’ll make for your future.
You can usually guess someone’s New Year’s resolution because it often involves losing weight, getting into better shape, or cooking more nutritious meals.
Look, we’re not trying to throw shade. If those are your goals, they’re impressive. Drop those pounds, build that muscle, try kelpâwe’re with you.
how to invest when you have student loan debt, or set up a complimentary appointment with a SoFi financial planner to talk through a personalized plan.
4. Set Yourself Up for Success
If you know that you should save more but you’re like, “I’m up to my eyeballs in student loans, I’m trying to buy a house, and my retirement portfolio is sadder than the latest album by The National,” we hear you.
Even if you’re not ready to save more right now, consider opening some savings or investment accounts anyway. “It’s about having the infrastructure in place. If you build it, they will come,” says Song.
This way, if you get a surprise gift, bonus, or class-action settlement, you can throw it into one of these buckets instead of your checking account. Consider automating a monthly paymentâeven if it’s just $10âto each account because you probably won’t notice a difference, it’ll get you into the habit, and you may feel motivated to increase the amounts once you see the money grow.
Is “start investing” one of your 2021 resolutions? Give us a shout and we can talk about different options available. Plus, get financial planning support from our advisors at no extra charge.
SoFi InvestÂ® is all about empowering you and your financial future, and weâre here to help. Schedule a free personal consultation with one of our licensed financial advisors who can help you plot your best path forward.
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