#with your help i can achieve my dream of monthly student loan payment | Explore Tumblr Posts and Blogs

mr-entj · 6 years

Note

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

Combined with the following asks:

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

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

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

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

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

General money management advice

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

Student Loans 101

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

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

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

This means:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Research:

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

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

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

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

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

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

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

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

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

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

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

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

The Lifelong Cost of Getting a For-Profit Education

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

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

4 ways to avoid for-profit college abuses

My college degree is worthless

Why low-income borrowers should avoid for-profit colleges

Will a for-profit degree get you a job?

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

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

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

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

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

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

Resources

Grants and Scholarships

Finding scholarships

FastWeb Scholarships

U.S. Department of Labor Scholarships

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

Student Loan Calculators

Student Loan Term Comparison Calculator

Student Loan Payment Calculator

BankRate Student Loan Calculator

FinAid Loan Calculator

Federal Student Loan Repayment Calculator

Paycheck Calculators

Paycheck City Salary Calculator

Smart Asset Paycheck Calculator

ADP Paycheck Calculator

Career Salary Data

Glassdoor

Indeed

Paysa

The Economic Value of College Majors by Georgetown University

2017-2018 College Salary Report by Payscale

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

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

r/studentloans

Student loans have become our modern-day debtors prisons

10 Ways Student Debt Can Destroy Your Life

The Mental Toll of Student Debt: What Our Survey Shows

Google News: “student loan crisis”

#student loans #student debt #college #high school #university #finance #loans #faq #education

331 notes · View notes

glennspringsminers-blog · 5 years

Text

How Can I Achieve Financial Independence

We all know the feeling—the panic that sets into your stomach when you see the bill for an unexpected car repair. How are we going to pay for that? But what if a car repair was just an inconvenience? Instead of worrying, you pay the bill without thinking twice. A week later you’ve forgotten that it even happened! That’s how little it affects your financial situation. It’s not an emergency. It’s barely a hiccup!

Do you feel that sense of relief? That’s what financial freedom feels like.

Paying for a car repair without stress is just a small part of the picture. It’s more than just being able to afford emergencies. It’s knowing you don’t have to worry about retirement because you’ve worked with your financial advisor to invest consistently for decades. It’s the freedom to quit your J-O-B to do something you love, even if means getting paid less.

Financial freedom means that you get to make life decisions without being overly stressed about the financial impact because you are prepared. You control your finances instead of being controlled by them.

The path to financial independence isn’t a get-rich-quick strategy. And financial freedom doesn’t mean that you’re “free” of the responsibility of handling your money well. Quite the opposite. Having complete control over your finances is the fruit of hard work, sacrifice and time. And all of that effort is worth it!

Ready to learn how to build a life of financial independence for you and your family? Start by defining what financial independence looks like for you. What Does Financial Freedom Mean to You?

Financial freedom has to be personal. Dream big and get specific about your goal.

What does financial independence look like for you? Maybe it looks something like this:

Freedom to choose a career you love without worrying about money Freedom to take an international trip every year without it straining on your budget Freedom to pay cash for a new ski boat Freedom to respond to the needs of others with outrageous generosity Freedom to retire a whole decade early

When you are financially independent, you have options. You don’t have to wonder if your bank account can handle replacing your hot water heater or buying groceries for a single mom who just lost her job. See how ordinary people built extraordinary wealth in my new book, Everyday Millionaires.

"When you are financially independent, you have options. You don’t have to wonder if your bank account can handle replacing your hot water heater or buying groceries for a single mom who just lost her job." —Chris Hogan

That may sound too good to be true, but you can do this! Here’s how to begin your own journey to financial freedom! Step #1: Learn How to Manage Money

You won’t get ahead if you don’t have a plan for your money. Instead, you’ll find yourself wondering where your money went at the end of every month! That’s not financial independence; that’s a recipe for financial disaster. If you’re married, get on the same page with your spouse about your budget. If you’re single, find an accountability partner.

Building wealth is impossible if you’re living paycheck to paycheck. Give every dollar a name before the month begins, and track your spending throughout the month. If you consistently overspend or underspend in certain areas, you can always adjust the amount in each category.

"Building wealth is impossible if you’re living paycheck to paycheck. Give every dollar a name before the month begins, and track your spending throughout the month." —Chris Hogan

Budgeting is important to get your finances on the right track, but it doesn’t end there. Even once you achieve financial freedom, you’ll still complete a unique budget every month. No matter how much money you have, you need a plan.

You won’t get to financial independence on accident. Budgeting is the first step to building wealth on purpose. Step #2: Clean Up Your Finances

Once you start learning how to manage money, you may realize you’ve made some mistakes with your finances in the past. That’s okay! But if you want to be financially independent, you have to clean up the mess before you can start building wealth.

That means if you have debt like credit cards, student loans or car loans, it’s time to get serious about kicking it to the curb.

Why? Because while you owe money, your paychecks have someone else’s name on them. If you want to reach your goal, you need your full income at your disposal, not bits and pieces that are left over after paying credit card bills and student loan payments.

Paying off your debt helps you lay a foundation to build wealth that will last. Make sure you have $1,000 saved before you start tackling your debt. You don’t want an unexpected expense to derail your progress!

Most people feel like they got a raise when they start budgeting, so that’s good news for you. Throw all of that extra at your smallest debt until it’s gone. Then keep the snowball rolling! Paying off debt is hard work, but there’s nothing like the feeling of actually keeping the money you bring in every month!

Once you’re debt-free, stay there. For good. Having debt undermines your ability to build wealth and puts your financial plan at risk. It’s simple. Steer clear of debt! Step #3: Be Smart About Your Career Choice

Your biggest wealth-building tool is your income. So when it comes to choosing a career, there are a lot of things at stake. There’s no reason to stay stuck at a dead-end job, especially if it’s making you miserable. Finding a job that you enjoy that also supports your goals of financial security will help you enjoy the journey.

So what should you look for? Here are a few things to keep in mind:

Where do you want to be in 10 years? Start with the end in mind. Does this job make sense with your overall goals?

Is there income-earning potential? Even if you’re not making your dream salary from the start, make sure there is opportunity for your income to increase as your value increases.

Can you grow? Are there opportunities for you to move up and grow personally and professionally?

Do you enjoy the work? Don’t spend a career at a job you hate. Find something you’re passionate about that allows you to use your gifts and skills.

Do the benefits support your goals of financial freedom? Your options for retirement savings and health insurance can dramatically affect your ability to build wealth.

Your choice of career can have a big impact on your long-term financial plan, so take it seriously! Step #4: Create a Strategy for Short-Term Savings

Imagine if you had to pull money out of your 401(k) when your home’s A/C unit needed to be replaced. What if you had to open a credit card to pay for groceries after losing your job? How would you ever get ahead if you kept borrowing money from your future? You wouldn’t.

If your goal is financial freedom, you need a buffer for the unexpected life events that happen to all of us, like car repairs, broken appliances and medical deductibles. That’s why you should increase your emergency fund to cover three to six months of expenses once you’re out of debt.

Having the cash on hand to cover an unexpected life event gives you peace of mind and is a critical part of your overall financial plan. Once you have that fully funded savings account, you’ll start to feel more flexibility in your budget. You’ll be able to say yes to shopping splurges and specialty lattes with no guilt at all!

Since you’re not taking on debt, you’ll also need a savings plan for big purchases that aren’t emergencies. Let’s take summer vacation for example. It’s simple! Create a line item in your monthly budget and divide the total amount by the months you have to save. You’re not living in debt anymore, and that means you can enjoy your vacation instead of having a credit card bill follow you home.

With a full emergency fund and a plan to cover big purchases in place, you’ll have the financial foundation to start investing. Step #5: Learn About Your Investment Options

Now that you have a plan for short-term savings, you’re ready to partner with a financial advisor who can help you make the most of your long-term investment options. The good news is the sooner you start investing, the more time your money has to grow. That’s the power of compound interest at work. Here’s how to get started: Retirement Savings

Start by working with your financial advisor to take advantage of the tax-favored retirement accounts that are available to you at work, like your 401(k) or 403(b). How much should you invest toward retirement? Shoot for 15% of your income. And if your employer offers a match on contributions to your 401(k), take it! Don’t say no to free money.

If you have access to a Roth 401(k) at work with good mutual fund options, great! You can invest your full 15% there. But if you have a traditional 401(k), invest up to the match then invest what’s left of your 15% in a Roth IRA. If you still have part of your 15% left after maxing out a Roth IRA, go back to your 401(k).

Why is a Roth a good idea? When you invest in a Roth 401(k) or Roth IRA, the money you invest grows tax-free. That means you don’t have to pay taxes on it when you withdraw money in retirement. That’s a big benefit you don’t want to miss out on. College Savings

If you’re already contributing 15% of your income to retirement and you want to start saving for your kids’ college fund, you can start by investing in an Education Savings Account (ESA). Like a Roth IRA, the money you contribute to an ESA grows tax-free, which means you won’t pay taxes on it when it’s used to cover college expenses. Currently you can contribute up to $2,000 per year for each child in an ESA. Income limits do apply, and your investing pro can help you know if those impact you.(1)

If you want to save beyond an ESA, talk to your financial advisor about a 529 plan. These plans also grow tax-free! Just be aware that there are some 529 plans you should avoid. Steer clear of pre-paid tuition plans and fixed investment options.(2)

The great thing about saving for your kids’ college is that by helping them avoid student debt, you’re setting them up for financial freedom too! Real Estate Investments

Your home should be part of your plan for financial freedom, not something holding you back from achieving it. That’s why it’s so important to make wise decisions about the kind of home you purchase and how you choose to finance it. If you buy a home that is a good investment, it will continue to grow in value as the years go by.

Once you’re investing 15% of your income into retirement accounts, you should use any extra money coming in to pay off your house. Attack it with a vengeance! Getting rid of your mortgage is a huge milestone in your journey to financial independence.

Don’t even think about owning rental properties until your house is paid for. And even then, you should only invest in rental properties if you can afford to pay cash for the property and you’re willing to deal with any hassle involved in the rental process. Taxable Investments

When your house is paid for, you can contribute more than 15% of your income to investments. But before you jump to taxable investing, make sure you’re taking advantage of all the tax-favored accounts you can—like your workplace 401(k) and IRAs.

If you’re ready to move into taxable accounts, stick with a simple investing approach and work with your financial advisor to choose good growth stock mutual funds with a long history of above-average performance.

When you invest outside of tax-favored retirement accounts, you’ll pay taxes on the money you invest. You should also be prepared to pay taxes on capital gains and qualified dividends. But choosing mutual funds with a low turnover rate can help you minimize the tax impact. Step #6: Be Active in Your Journey to Financial Independence

Making the right investment decisions is the first step, but staying in tune with your fund performance is crucial to getting the most out of your investments. Setting your investments on autopilot is not an investment strategy.

But the idea of actively making decisions about your investments may feel overwhelming. If it feels that way to you, you’re not alone. According to a Fidelity study of their NetBenefits participants, 77% of Do-It-Yourself investors said they didn’t have the time or investment knowledge to be confident in their investment decisions.(3)

You’ve worked hard to lay the right foundation, so don’t leave this crucial step up to chance! You need the expertise of a financial advisor to help you navigate your investment options and brave the ups and downs of the stock market.

A financial advisor can help you:

Make decisions about your investment strategy Rebalance your funds regularly so you minimize your risk Create a realistic plan for what financial independence looks like for you Know what investment options you have beyond retirement accounts Set up a withdrawal plan for your specific situation

With our SmartVestor program, you can find investing professionals to help you achieve your financial goals. Remember, the journey to financial independence is a marathon, not a sprint. An expert financial advisor is the perfect partner for the journey.

Ready to get started? You can connect with a pro today! Reaching Financial Freedom

Financial freedom is about more than just being able to cover unexpected emergencies—like a car repair—without breaking a sweat. The fun really starts when you realize you can meet the needs of others. Imagine being able to bless a struggling family by paying for their car repair! It’s not just about you anymore; it’s about leaving a legacy!

If you live like no one else, later you can live and give like no one else. It’s worth all the hard work it takes to get there. You’ve got this! About Chris Hogan

1 note · View note

thelistingteammiami · 2 years

Text

Achieving the Dream of Homeownership

Today, we remember the legacy of Dr. Martin Luther King, Jr. Many of us will remember his passion and determination for the causes he championed, including his famous “I Have a Dream” speech in 1963. As we reflect on his message today, it may inspire your own dream of homeownership. And if so, know you’re not alone. With a trusted real estate advisor at your side, you can begin your journey toward homeownership by answering the questions below.

1. Where Do I Start?

The process of buying a home is not one to enter into lightly. You need to decide on key things like how long you plan on living in an area, how much space you need, what kind of commute works for you, and how much you can spend.

Then, when you decide you’re ready to buy, you’ll need to apply for a mortgage. Your lender will look at several factors to determine how much you’re able to borrow, including your credit history. Lenders want to understand how well you’ve managed paying your student loans, credit cards, car loans, and other past debts.

According to Freddie Mac:

“To get a rough estimate of what you can afford, most lenders suggest that you should spend no more than 28% of your monthly gross (pre-tax) income on your mortgage payment, including principal, interest, taxes and insurance.”

2. How Do I Save Enough for a Down Payment?

Speaking of how much you can afford, you’ll want to know what to save for a down payment. While the idea of saving for a down payment can be daunting, there are many different options and resources that can help.

According to Business Insider, automatic savings can bring you one step closer to achieving your target down payment:

“If you receive your paycheck as a direct deposit, you may want to arrange for your company to send a percentage of each check directly into a savings account for the down payment. . . . The automatic-savings strategy makes it so you don't have to constantly remember to save money.”

Before you know it, you’ll have enough for a down payment if you’re disciplined and thoughtful about your process. And the best part is, you may need to save less for your down payment than you think. Your agent and lender can help you understand your options.

3. How Can I Reach My Financial Goals?

Another way to increase your savings is by sticking to a planned budget. If you’ve never budgeted before, there are tools available. For example, MoneyFit.org provides a budgeting worksheet you can use to create your own plan and five rules to follow when you’re saving. They recommend you:

Identify Goals

Record Expenses

Record Earnings

Compare and Calculate

Fix Weak Spots

If you’re already budgeting, consider finding ways to tighten your spending a bit more to accelerate your journey to homeownership. After all, putting even a little extra into your savings each month can truly add up over time.

Bottom Line

As you set out to realize your dream of homeownership this year, know that it’s achievable with careful planning. Most importantly, let’s connect today so you don’t have to walk alone on this journey.

0 notes

rebeccasabot · 2 years

Text

Achieving the Dream of Homeownership

Homeownership has long been considered the American Dream, and it’s one every American should feel confident and powerful pursuing. But owning a home is also a deeply personal dream. Our home provides us with safety and security, and it’s a place where we can grow and flourish. With a trusted real estate advisor at your side, you can begin your journey toward homeownership by answering the questions below.

1. Where Do I Start?

According to Freddie Mac:

2. How Do I Save Enough for a Down Payment?

According to Business Insider, automatic savings can bring you one step closer to achieving your target down payment:

3. How Can I Reach My Financial Goals?

Identify Goals

Record Expenses

Record Earnings

Compare and Calculate

Fix Weak Spots

Bottom Line

As you set out to realize your dream of homeownership this year in Bismarck or Mandan North Dakota, know that it’s achievable with careful planning. Most importantly, let’s connect today so you don’t have to walk alone on this journey.

0 notes

28northgroup · 2 years

Text

Achieving the Dream of Homeownership

1. Where Do I Start?

According to Freddie Mac:

2. How Do I Save Enough for a Down Payment?

According to Business Insider, automatic savings can bring you one step closer to achieving your target down payment:

3. How Can I Reach My Financial Goals?

Identify Goals

Record Expenses

Record Earnings

Compare and Calculate

Fix Weak Spots

Bottom Line

0 notes

grantreidproperties · 2 years

Text

Achieving the Dream of Homeownership

1. Where Do I Start?

According to Freddie Mac:

2. How Do I Save Enough for a Down Payment?

According to Business Insider, automatic savings can bring you one step closer to achieving your target down payment:

3. How Can I Reach My Financial Goals?

Identify Goals

Record Expenses

Record Earnings

Compare and Calculate

Fix Weak Spots

Bottom Line

Content previously posted on Keeping Current Matters source https://www.simplifyingthemarket.com/en/2022/01/17/achieving-the-dream-of-homeownership/?a=489032-35f51ed32012ea2b41c9407612018119

#grantreidproperties #grantreidhomes

0 notes

millennialmoney · 3 years

Text

6 Millennial Money Tips

Growing up, it was always instilled in my childhood that having good money management skills is an important aspect to live a “successful” life. As my mom had always said, no matter how much money you make, if you cannot save a portion of it, you’ll always be worse off than everybody else.

However, from my point of view as a millennial, it is very difficult to save money. We burden ourselves with student loans, credit card loans, car lease payments and many more in our 20′s. How are we ever able to save for a down payment for a home? Or have excess money to investment to create a stream of passive income? It depends on everyone’s situation and goals when it comes to saving money. As such, I want to share my financial management tips that helped me manage my finances effectively throughout my teenager years to 20s.

Millennial Money Tip(s):

1) Using your debit card as opposed to cash. Personally, whenever I use cash I can never grasp what I spent it on and how much I spent it on. My debit card helped me track what I spent my money on. I currently use the Simplii Financial debit card, because there are no fees associated with the usage and you can get two free cheque booklets. Whenever I log on to my online account, I can see what I spent my money on, and if there is a growing trend of buying things I don’t need. I will minimize my spending for the next month.

2) Try to make sure your outstanding credit card balance meets the 30% rule, where your credit card balance is 30% or less than the entire credit card limit. So that you wouldn’t be a high risk borrower for the banks and creditors. This will also keep your credit score on track in the 700′s score and more (in Canada).

3) Always know what outstanding debt/obligations you have on a monthly basis, and ensure to account for it as part of your monthly net income calculation. You can use an excel spreadsheet or journal to keep track of it. The illustrative example is below: Student loan payment per month = $200 Credit card payment per month = $300 Car payments per month = $300 Insurance payments per month = $100 Rent per month = $800 Total expenses per month $1,700 (a) Monthly income = $2,500 (b) Net savings (c) = (b) - (a) = $2,500 - $1,700 = $800

Once you know exactly where you money goes towards, your true savings net to $800 per month x 12 months = $9,600 per year

4) ALWAYS STAY ACCOUNTABLE to your monthly debt, and never miss a credit card or student loan payment. This will help you focus on the fact that you want to pay off this debt sooner, rather than later. Keeping yourself accountable will make you a reliable and credible individual.

5) Ensure you have an emergency fund. Based on the example from above, $800 per month can go towards your emergency fund. Considering there is a pandemic going on right now, you never know what might happen to the economy and having this emergency fund will help get through the tough times. A lot of people say that an emergency fund should be 3-4 months of your income, but in my opinion it can be flexible. As long as you started saving for an emergency fund, you know you are on the right track to accumulate your wealth.

6) Minimalist Lifestyle - reduce spending on the the latest fads and trends. I used to be a victim of marketers where I would line up for the newest iPhone at the Apple Store. As I got older, I realized that as long as I have a phone that works based on my needs, I don’t have to splurge on the latest iPhone. As a girl, I always loved going to Sephora and spending a couple of bills on make-up just because I wanted to try different products. Now that I understand my make-up routine, I only buy what I need when I need it. Having a more minimalist lifestyle has helped me save more money for what is more important in life.

Money is a wonderful thing where it can help us achieve our goals and dreams, but if you are not careful with it. Then it can be your worst nightmare. We live in a society, where businesses are constantly on the hunt for our hard earned money. As a I got older, I realized that I was never felt satisfied after buying those shoes or jacket I wanted. Instead, as I channeled my energy to working out, blogging and working on my e-commerce business. I started to feel more purposeful knowing that I can start to do what I like while accumulating wealth at the same time. These tips I have shared with you have definitely helped me and will continue to help me manage my finances effectively.

#personalfinance #finance #money #pandemic #2020 #millennials

0 notes

fthbarlingtontx · 5 years

Link

How To Get An Fha Home Loan

Contents

Fha-insured loan. tip paying

Fha-approved lenders. fha insures

Minimum home loan credit score requirement

Limit increase 2019

Monthly housing expense

Limited loan amounts

The Federal Housing Administration, FHA for short, provides mortgage insurance on loans made by FHA-approved lenders throughout the U.S. Here’s how to get your fha-insured loan. tip paying rent to parents to live in their home does not count as a rental record. Step 3: Have a 580 credit score.

FHA currently has 4.8 million insured single family mortgages and 13,000 insured multifamily projects in its portfolio. Note that the FHA has maximum mortgage limits based on the place you live. To find out how much house you can buy with an FHA loan use LendingTree’s FHA loan limit tool.

Your financial history and credit score affect your overall loan options, and a higher credit score will usually get you a lower interest. mid 700s for a conventional home loan, but you might be.

Minimum Credit Score For Fha Home Loan Who Provides Funds For Fha Loans How Do I Find My Fha Case Number How To Qualify For A Fha Home Loan If you believe you qualify for an FHA loan and are ready to apply, the first step is to get pre-approved with your lender of choice. Get pre-approved for an FHA loan online now This could be your local bank or credit union, an independent mortgage broker, or any number of national online mortgage lenders .What You Need To Qualify For A Fha Loan you can borrow up to 96.5% of the value of a home with an fha loan (meaning you’ll need to make a down payment of only 3.5%). You’ll need a credit score of at least 580 to qualify. If your credit.Related Articles. Click the "Search" button. If you get a result, look in the third column for a number with three digits, a hyphen, then six digits. It should be located directly above the state and ZIP code to which the loan corresponds. That number is your FHA case number.Fha Rules On Student Loans FHA loan requirements important fha guidelines for Borrowers. The FHA, or Federal Housing Administration, provides mortgage insurance on loans made by fha-approved lenders. fha insures these loans on single family and multi-family homes in the United States and its territories.Here are some guidelines when using a gift fund for FHA: All of your down payment funds can be a gift if you put down 20% or more. At least 3.5% of your down payment needs to be your own money if your credit score is between 580 and 619. Gift funds can only be used on primary residences.With this drop in minimum FHA credit scores required, you will be able to get the loan you need even if you might have been under the minimum home loan credit score requirement in the past. The economy has been steadily declining so it is time we got a break and FHA listened.Fha First Time Home Buyers Loans Fha Loan limit increase 2019 Fha Loan Costs To Buyer According to its 2012 survey of closing costs, Bankrate.com said that it cost home buyers an average of $3,754 in closing costs and fees to close a mortgage loan of $200,000. Of course, that figure.Credit Score To Qualify For Fha An FHA 203(k) loan. qualify for a standard mortgage to choose to live in run-down neighborhoods and upgrade them. It is important to note that the FHA is not a lender; it is a mortgage insurer. You.Where To Apply For Fha Mortgage How To Apply For A Fha Loan With Bad Credit Apply for FHA Loans – No Charge fha loan application – Decent credit: You can apply for a FHA loan with a 500-credit score, but if you have high DTI, you should have a credit score in the mid to high 600’s at minimum. small increase: If the loan that you want to get will only cause a small bump in your monthly housing expense, you may still qualify for the loan.With low down payments, relaxed credit requirements and competitive rates, FHA loans are designed to meet the needs of first-time.The Federal Housing Administration released its new schedule of loan limits for 2019, with most areas in the country to experience an increase in loan limits in the coming year. FHA is required by the National Housing Act, as amended by the Housing and Economic Recovery Act of 2008, to set single family forward loan limits at 115 percent of.Photo: Heather Seidel/The Wall Street Journal The Federal Housing Administration is seeking to clarify rules and compliance standards for its mortgage. income and first-time home buyers it serves.

FHA-insured loans are available for manufactured or mobile homes. This is part of the US Dept of Housing’s Title I Program. Under this program, mobile homes and/or lots can be purchased or refinanced through approved lenders. FHA will insure the loan. The following are some basic criteria.

Fha Low Income Home Loans FHA Loans Are Not Just for Low-Income Borrowers. It’s a common misconception that FHA home loans are only for low-income borrowers. This might stem from the fact that these loans are insured by the Federal Housing Administration, and managed by the Department of Housing and Urban Development.What Is Fha Loan Requirements FHA Loan: Basics and Requirements: An FHA loan is a mortgage issued by federally qualified lenders and insured by the Federal Housing Administration (fha). fha loans are designed for low-to.

Understanding how the mortgage preapproval process works can help you prepare your finances. Make a plan. If you go into the homebuying process “on a whim and you don’t have a goal in mind, then I.

What Is An Fha Loan Mean For loan terms of 15 years or less, the FHA annual mortgage insurance premium can range from 0.45% to 0.95% of the loan amount (depending on the loan to value ratio). limited loan amounts The maximum mortgage amount financed with FHA will depend on the State and County the home is located.

Despite today's economy, even minimum wage workers can achieve the American Dream of homeownership. The Federal Housing.

FHA home loans are great mortgages for all kinds of home buyers. Pre-qualify for a down payment as low as 3.5% with easy credit qualifying today! They do guarantee a portion of the loan, but the financing is ultimately given by a private lender. You can learn how to get an FHA home loan by.

Borrowers in their 20s may find it easier to get a mortgage through the Federal Housing Administration (FHA) or Veterans Affairs (VA). What Is a Mortgage? In simple terms, a mortgage is a loan used to.

The minimum FHA credit score for a home loan is 500, however, it's possible to get a mortgage loan with no credit score at all. Lenders can.

https://ift.tt/2A9FGof

#Arlington first time home buyer #first time home buyer assistance Arlington #Arlington first time ho

0 notes

gyrlversion · 5 years

Text

Deferred Dreams: How Student Loan Debt Disproportionately Affects Entrepreneurs Of Color

By Nicole Castillo

As a 35-year-old single mom and first-generation student preparing to put herself through law school, Ramona Ortega needed student loans for more than just an education; she needed them “just to survive.”. But nine years later, she still holds what she describes as “extreme student debt” of over $200,000. Though astronomical, that number didn’t deter her from starting her dream company, which she founded to help young people facing similar situations.

As the founder and CEO of the personal financial management platform My Money My Future, she works to help millennials of color understand what their financial options are throughout their lives, and then select the options that will best align them with achieving their goals. “It’s because of the financial hardship that I have been through, [that] I started this company,” Ortega told MTV News. “I was solving my own problem.”

Ortega isn’t the only recent college graduate with a drive to start her own business, but she’s still among a certain minority. Millennials and Gen Z graduates of color are entering the job market with an “entrepreneurial spirit” — they have the vision to upend business as usual, they value mission over profit alone, and they are solutions-focused and idealistic. But fewer are pursuing entrepreneurship in comparison to older generations. The desire is there, as is the know-how. It’s the financial burden that is holding many innovators back.

This is in no small part due to overwhelming student loan debt, which in 2019, reached $1.56 trillion, sending ripple effects across the economy. Students are graduating and stepping into the workforce with financial burdens that are causing them to delay getting married, having children, saving for retirement, and buying a home. While young people are more likely to work non-traditional jobs like working for rideshare and tutoring companies and freelancing in tech and media, few take the full plunge to become entrepreneurs — the key difference being that entrepreneurs create an entirely new business model, while those in the gig economy work within the confines created for them.

This is frustrating for any number of reasons, and undoes core tenets of American capitalism that have been sold to us for decades: That we can, one day, start a company, build a business, and become our own boss. What’s more, entrepreneurs could be one of the strongest antidotes to a sluggish economy. New businesses drive innovation, increase productivity, and create more jobs.

But not everyone can take the entrepreneurship leap, which is why political heavyweights are introducing plans that would chip away at student debt, and create more opportunity for entrepreneurs of color. Legislators on the left have proposed a tax on the richest Americans and Wall Street and argued that if we can bail out big banks as we did in 2008, and other bastions of corporate America, we should be willing to bail out student debtors, too. Senator Elizabeth Warren’s student loan forgiveness plan would eliminate up to $50,000 based on household income up to $250,000, while Senator Bernie Sanders wants to cancel all debt including undergraduate and graduate loans. Warren has also created a plan specifically targeting entrepreneurs of color, by delivering $7 billion in funding to underserved groups. Mayor Pete Buttigieg’s Douglass plan aims to invest $10 billion in entrepreneurs from underrepresented backgrounds, and defer some student loan repayment for those who decide to start a business. Senator Kamala Harris has proposed forgiving up to $20,000 of student loan debt for Pell Grant recipients who start businesses that operate in underserved communities.

Carlos Vera, the 25-year-old Founder and CEO of Pay Our Interns, a national advocacy organization working to ensure that legislative interns are paid and diverse, believes that forgiving student loan debt is not only “the moral thing to do,” but makes the most economic sense.

“People ask, ‘Where are we going to get this money?’ We just passed a tax cut of over a trillion dollars for the super rich last year. If we can do that for them, why can’t we do the same for millions of hard-working Americans?” Vera told MTV News. “Especially because we know this is dragging down our economy. Folks are not purchasing homes and starting businesses because of their student loans.”

The main factors stopping young people from becoming entrepreneurs — access to startup capital and a lack of financial stability to weather the first few years of entrepreneurship — are intensified for millennials of color. Black students carry more student loan debt than any other racial group, a fact compounded by the racial wealth gap. In the U.S., the average white family has seven times more wealth than Black families and five times more wealth than Latinx families. While Latinx students carry less debt, they are more likely to drop out because of financial barriers; have lower wages post-graduation; and are thus, more likely to default on their student loans. And the idea that a college education is a surefire route toward economic prosperity for Black and brown students must be reconsidered. The Economic Policy Institute reports that a college degree or more will not reduce the Black-white wage gap.

Many of these young people feel that student loan debt limits options in terms of jobs they can take, so graduates often opt to pursue less risky forms of employment and take whatever jobs they can to pay their bills on time. Even so, millennials of color are leading the conversation when it comes to diversifying entrepreneurship, and some see self-employment as the best option for building wealth. Millennial Black women, in particular, believe that starting one’s business is the best road to prosperity.

Rica Elysee is a first-generation Haitian American who started BeautyLynk, a company that creates opportunities for beauty professionals to connect directly with consumers, as well as build their own brand and reputation. As the company’s founder and CEO, 33-year-old Elysse knows that these opportunities are indispensable for her clients to pay back their debt — but she is still quick to admit that college debt can be “stifling.”

“It’s changed the way people think about building businesses or even if they have a shot at building one,” she told MTV News.

That was certainly the case for Katia Alcantar, the 29-year-old co-founder of the legal advice app Text A Lawyer, who carries $85,000 in student loans.“With one of my student loans, I have paid 20 percent of the loan and none of that has been on the principal,” she told MTV News. Faced with $1,000 monthly payments, her debt is so significant that it has prevented her from investing in her own company, which connects attorneys with clients 24/7 via text for legal advice.

Because Alcantar wasn’t alone in her endeavor, she was able to take some risks: Her co-founder had the financial means to bootstrap the project, thus enabling her to quit her job and move her family from Texas to Oregon to join the company. Not everyone can afford to make those kinds of decisions, though, and for those still strained by their student loans, debt forgiveness proposals have become a beacon of hope.

The burden of student loan debt, however, is not as simple as the government eliminating your balance from Sallie Mae or Navient; it’s also about reforming the entire cost of college and predatory loan systems and ensuring livable wages for all.

Many of these issues, 32-year-old Omama Marzuq believes, can be solved by investing in entrepreneurs.

“Being your own business owner, you are creating opportunities and growth for your community,” the entrepreneur and mentor for E for All: Entrepreneurship for All told MTV News. “Entrepreneurs can hire people in their communities, create internships, and fund scholarship opportunities.” It’s a cycle that can provide young entrepreneurs with the hope that their work is worth the toil, and proof that while risks can feel solitary, success is not received alone.

The post Deferred Dreams: How Student Loan Debt Disproportionately Affects Entrepreneurs Of Color appeared first on Gyrlversion.

from WordPress http://www.gyrlversion.net/deferred-dreams-how-student-loan-debt-disproportionately-affects-entrepreneurs-of-color/

#Uncategorized

0 notes

meraenthusiast · 5 years

Text

How To Harness The Neurological Power Behind The Debt Snowball

{Editor’s Note: This article was written by Mr. SR from Semi Retire Plan. He writes about personal finance, behavioral economics, and early retirement. This article was originally published on The Money Mix and is published here with permission.}

Have you heard personal finance bloggers mention a guy named Dave Ramsey? If so, your mental image is probably of a bald guy cutting up credit cards and shouting about a snowball system, baby steps, and the Financial Peace University program.

While we would all agree that it’s preferable to not be in debt, the specifics are controversial, including the debt snowball payoff method.

Why Pay Off Debt Early?

Aggressively getting out of debt early has several advantages.

You will:

Reduce your total amount of interest paid over the life of the loan by effectively shortening the loan term

Have extra cash leftover each paycheck after you finish paying off each loan

Increase your net worth with certainty – without the volatility that accompanies more traditional investments

First, I recommend evaluating what caused your debt. If you have high-interest consumer debt, what steps will you take to avoid incurring additional indebtedness in the future?

For example, if you don’t already have an emergency fund, I encourage you to build one. Paying an unexpected expense out of pocket isn’t fun, but it’s better than adding 25% in annual interest from using a credit card.

Is your debt from medical expenses? Make sure you have the best health insurance for your family’s situation in the future. Are you making the most of the options available from the Affordable Care Act? You may also be able to gain tax advantages and avoid medical debt in retirement by using a Health Savings Account.

Or in some cases, your income may just be too low to get traction on the road to financial independence. If so, you may want to consider a job change, even it’s early in your career.

Another thing to avoid during times of higher debt loads is lifestyle creep. That happens when you get a little extra income and spend it on things you’ve wanted but probably don’t need. The cost of these items are often not one time things. They stay in the budget for some time to come.

How The Debt Snowball Works

Using this method, you arrange your debts from smallest to largest but exclude your primary residence’s mortgage if you have one. Then, pay the minimum payment on each debt plus extra (the most you can afford) on the one with the smallest balance. Once the smallest debt is paid off, you pay extra on the next lowest.

Repeat until you’re debt-free, then stay out of debt!

In this plan, the type of debt isn’t relevant. For example, the snowball system doesn’t consider if the debt is a car payment, a mortgage on a second home, or an unsecured debt (which typically have higher interest rates).

The advantage of using this strategy is that you’ll reduce your monthly payments (each time you pay off a debt) and save money on future interest by not paying for the full term of your loans. Then, you can use your extra money each month to invest or even pay off your mortgage!

Problems With The Debt Snowball

The controversial element to this is that the debt snowball doesn’t consider the interest rates of your debts when prioritizing. Mathematically, you would benefit most by paying off your highest interest debts first. There’s a name for this approach – the “debt avalanche.”

Furthermore, should you necessarily try to pay off your debts early if they have a low-interest rate? In theory, you might be better off investing your money than paying extra towards the debt with a low rate. Why would you accept a 4% “return” from paying off your student loan early (and avoiding future interest), when you could make 7-10% invested in index funds?

More traditional debt management techniques include transferring your balance to a home equity loan or debt consolidation loan to shift to lower interest rates quickly.

Ultimately, which approach is right for you is mainly dependent on your own goals and risk tolerance. Notably, though, people using the debt snowball method have a reputation for being ultra-focused and passionate about their progress.

Why?

What makes paying off small debts more exciting than paying off debts that are costing you more in interest? The short answer is because of chemicals in the brain and gut. And although debt repayment brought us to this topic, there are practical applications for you below, no matter what financial stage you’re in.

Chemicals That Enhance The Debt Snowball

Dopamine

Neurotransmitters are chemicals that transmit between neurons or nerve cells. Dopamine, the “feel good” neurotransmitter, helps us focus and makes us feel happy when we meet our goals.

The debt snowball method is structured to help you achieve wins as quickly as possible since you’re paying extra on your smallest debts first. By completing the initial goals rapidly, you’re getting dopamine spikes more often. This makes you feel good, which makes you want to repeat the behavior. It also keeps you focused on your plan.

Visually tracking your debt journey, for example, can help you realize your progress and feel gratification. You can essentially “gamify” your finances to increase your happiness.

Dr. Nora D. Volkow, the Director of the National Institute on Drug Abuse at the National Institutes of Health, shared a powerful visual about the power of dopamine:

“Mice can die of starvation because they don’t have the motivation to engage in the behaviors to go and eat the food. You can rescue this animal by injecting dopamine into the areas of the brain that control this. But if you don’t do that, these animals will die of starvation. And that really epitomizes how extraordinary important dopamine is. It gives you that energy, the drive to do things.”

Dopamine gives you the drive to do things!

Endorphins

When you are exercising, stressed, or excited, endorphins are then released by the pituitary glands and the hypothalamus. They produce a feeling of relief and being pain-free.

In addition to killing pain, endorphins can act as antidepressants, sleep enhancers, and even as self-esteem boosters.

Debt is stressful and leads many doctors to depression or suicide. But by facing it head-on and pushing yourself to spend less and pay more against your debts, you’ll experience emotional pain relief from endorphins. A little extra sleep and self-esteem can always help too, right?

Oxytocin

Oxytocin spikes during emotional moments, and it makes you feel high. It’s primarily associated with moments of feeling unity and trust, and it strengthens personal connections.

When people are paying off debt with intensity, it feels like they’re a part of a movement that is greater than themselves. They’re a part of a community, all pursuing freedom.

Dave Ramsey, who popularized the debt snowball, invites listeners to do a “debt-free scream” on the radio show each day — these are clear high moments after stressful fights for financial freedom.

Even if you choose a different debt repayment approach or if you’re already debt-free, there are several takeaways you can use in your own life.

How To Use This Knowledge

Conditioning

Russian physiologist Ivan Pavlov, whose studies are now synonymous with his name, researched appetite and involuntary responses. His famous work with dogs actually shows how our behavior changes when we start to achieve our goals.

In Pavlov’s study, he rang a bell or played the metronome while dogs were eating. After repeating these conditions, the dogs eventually would salivate at the sound of the bell even if the food wasn’t present. This is called classical conditioning.

When you achieve your goals, neurotransmitters help you feel good. If you do this frequently, you will condition yourself to feel good about goals. This will make you even more motivated for your next pursuit.

Unlike the dogs, though, you can choose to ring your own “bell” in life.

Here are the 3 ways you can proactively set yourself up for success.

3 Practical Takeaways For Success

1) Set small, quickly achievable goals that ladder up to your big plans

The debt snowball benefits from having pre-set small goals in place. Each debt you pay off is a goal you are achieving. But, if debt freedom isn’t your current focus, then identify what’s most important to you in life. Next, break your long-term financial goals into concrete, smaller steps.

You may already be familiar with SMART goals. This acronym is popular in corporate settings and stands for Specific, Measurable, Achievable, Realistic, and Time-bound. Well, I would add on “And Fast” – you need to set goals that you can reach in a brief period to maximize the gratification benefit.

For example, rather than phrasing your goal as “I want to retire early in 10 years,” make a smaller goal of “invest $1,000 this month” or “make $100 this week from my side hustle.” Honestly, even these goals can be broken down into more detail.

Maybe your focus for Day 1 can be “don’t order a pizza tonight” – cook at home instead.

Permit yourself to lower the stakes for success and failure for your goals. If you want to be a professor as your long-term career goal, that may require a master’s degree. It’s not possible to complete the master’s degree by midnight tonight, but you can look for a new job that offers tuition reimbursement for your master’s program.

If you shift your definition of success to be an outcome you can actually complete today, you will be successful more frequently.

When you intentionally focus on smaller goals, you won’t be ignoring your long-term dream. But, you will feel happier and more focused at each step along the way.

2) Do something stressful — it can be valuable and fulfilling

We often hear that chronic stress can be unhealthy. But, the right amount of “good stress” can help you feel motivated, resilient, and focused. You can even turn bad stress into good stress by thinking positively about the possible benefits of the situation.

If you’re not deeply cutting your spending to pay off debt, consider pushing yourself a bit towards your other goals — especially if you’re early on in your wealth-building journey. Is there something you can give up in the short-term, even if it’s mildly stressful?

If you’re trying to start a freelance writing business as a side hustle, don’t be afraid to sign up for a training course, even if it might be challenging or expensive in the short-term.

If you’re considering retiring and your finances are in order, go for it! Perhaps it’s intimidating at first, but the transition away from your career can yield greater fruits in a fulfilling new chapter of your life.

You’ll be rewarded in the long-term, and also get relief from endorphins along the way as you push through each step towards your goals.

3) Seek moments of unity and trust

Do you have family members or friends who are pursuing common financial goals with you? Working with others towards a common purpose isn’t just a pleasant idea. You’ll experience a real rush of oxytocin and gratification when you reach milestones along the way.

Even a pat on the back or a supportive hug can send out oxytocin that helps to dissolve the short-term stress and pain.

The good feelings can result in a real increase in productivity too. A 2014 Stanford study found that when people were treated as though they were working together, they persisted 48 to 64 percent longer on challenging tasks.

Remember how these chemicals can act as antidepressants? Social support is also important for those fighting depression so that you’ll benefit on that front as well.

Consider sharing your goals or struggles with your spouse or partner, or participating in online communities that have similar interests. This will hold you accountable, but it will also make the moments of celebration even more gratifying.

Conclusion

The empowering conclusion here is that you’re not stuck with a fixed amount of these seemingly magic chemicals. Certainly, people can naturally have varying levels, but you can also set yourself up to experience motivation and gratification.

Whatever your financial and personal ambitions are, I encourage you to set small goals often. Then pursue them, achieve them, and feel good!

The post How To Harness The Neurological Power Behind The Debt Snowball appeared first on Debt Free Dr..

from Debt Free Dr. https://ift.tt/2JAMZuG via IFTTT

#IFTTT #Debt Free Dr.

0 notes