Review your budget- this tip is key to keeping sure you are in line with your financial goals. Whether you have a vacation planned, educational expenses or even a mortgage, it’s important to check your budget at least twice a year. You want to be sure that you have the money set aside for bills, unexpected expenses and of course, to enjoy life.
Review your debt- Debt can be a good thing. Some debt means you are growing financially and working towards making your dreams come true… But then there is bad debt or debt that prevents you from making your dreams come true. Sit down and review your debt. See where you might be able to pay a little bit more or see what you might be able to pay off. Also, check to see if your debt has decreased since the last time you reviewed your budget. Are you making progress? Also look into the option of refinancing for a better loan rate. For instance, if you have an auto loan with the dealer or another financial institution, come talk to a Tropical Financial rep to see how we can better serve you by perhaps lowering your rate.
Check your credit report- AnnualCreditReport.com gives you a free credit report once a year. It’s important to look into your credit report and be sure that all is okay, especially if you are looking to apply for a loan and more so if you haven’t reviewed your credit report in over a year. You want to be sure that you are up to date and you know what is being reported. Plus, reviewing your credit report gives you time to dispute any claim that may not be yours.
Review your future- No matter what age you are, it’s important to start preparing for your future. Whether your future is college, retirement or even a house you call home. It’s important to set up and monitor retirement options and investments. The more money you can save now, the better off you are for tomorrow. Twice a year it’s a good idea to talk to a financial advisor if you have one and review the best options for you.
Insurance is another great thing to review during your financial check up. Look to see what you are paying and ask questions, look to see if there is a better option at a better price. Maybe you’ve reached an age where your insurance is ready to drop in price but you haven’t seen that on a statement. I know when I turned 25 my insurance decreased but I had to call up and make sure that change took place. So stay on top of your finances.
No matter where you are financially, it’s important that you do a mid-year financial check up to ensure you’re on the right path. And hey it’s a great time to prepare for tax season too. Who doesn’t want to get ahead of the game. While doing your financial check up, why not start working on your taxes. It will help with the stress of tax season!
It’s summertime and for many that means vacation time. In May, I wrote a blog comparing Groupon VS Living Social when it comes to travel. Turns out they are both good options when planning a family vacation because who doesn’t love to save money?
I am all about finding the best means of travel that will cost me the least amount of money, or I am always looking for Free money. Yup, I said it… Free Money! And no, I am not crazy.
What’s the Catch?
There is no catch, instead I want to share with you a trick that I learned about my credit card early on that I still use to this day and one I will always use. So what is that trick… Rewards Points! Have you heard of them? Do you have them?
At Tropical Financial one of the credit cards that is offered to its members is the Tropical Financial Visa Rewards Card. Or as I like to call it, money machine or my dream come true.
With the TFCU Rewards card, you earn one rewards point for every dollar you spend. So, chances are you use your credit card on a regular basis so why not build up points? Why not earn something for spending your money. Once you accumulate enough points, you can then cash them in for cash. Yup, there you have it… FREE Money!
Of course there are many others you can cash in your reward points for such as gift cards, appliances, electronics, and so much more. The options are endless.
But how can I travel?
When I first applied for my credit card, I was given bonus points…. That’s FREE Money right there. I used my credit card for everyday purchases that I knew I could pay back, like gas, groceries and even work expenses (where I knew I would get reimbursed). All of those dollars added up to points which I then turned in for cash.
There have been numerous times, not just one or two but several more times where I have exchanged my points in for CASH. Cash that I didn’t have, cash that wasn’t in my budget and I was able to use to take a last minute vacation.
The points add up quickly when you use credit card for daily purchases. You just want to be sure you don’t get in over your head with your credit card balances. The time it takes me to save up points varies depending on my spending but hey an extra $150 is always nice when going out of town or an extra $200 is great for a last minute road trip to see a friend this summer.
The way I see it, extra cash is always awesome! So, get spending (wisely of course), start earning those points and start enjoying that extra money and those vacation too!
THIS is a very big year for me, as I will be celebrating a
milestone birthday and am going to be celebrating in a BIG way – a European
cruise! In the planning process we discovered taking a cruise like this was
going to cost a lot more than we anticipated, but I didn’t want to use that as
an excuse to ignore such a big milestone in my life.
I bet just about everyone reading this can relate to a
similar story. The want, or even need, for something special, but not having
enough savings to cover the entirety. Credit Cards are usually the first place
we turn to when we put ourselves in these situations, but there really is a
better way. Tropical Financial Credit Union has a special vacation loan to help
members take those special trips without breaking the bank. The great thing
about taking a vacation loan over using credit cards is that it’s a fixed rate
for a fixed period of time, so you’ll know exactly what your payments will be
and how long it will take to pay off that dream vacation. PLUS it allows you to
save the credit cards for the incidentals while ON your trip. Total WIN-WIN.
Now there’s no reason not to take that once-in-a-lifetime
vacation. I’ve got my trip booked and paid for, now the only thing left is
packing!
For Retirement, Start
Saving Early and Build from There
Say that two young adults, Ben and Alice, have both started
their first job — with new people, new responsibilities and new money in the
bank account each Friday. Both work hard, but Ben also plays hard, eating out a
lot and spending on vacations. Alice, meanwhile, makes sure to sock away a
little bit of every paycheck in her retirement account, aware that times might
not always be so flush.
Who do you think will be in better shape at the end of his
career? Of course, it’s Alice: When it comes to retirement planning, it pays to
start early and build over time.
But there’s hope still for Ben. Here’s some guidance on saving
for retirement, no matter your age or how diligently you’ve been saving up to
now.
Get time on your side
Retirement savings grow largely because of compound interest: The money put away in the
early years will generate interest earnings of its own with each passing year.
Because Alice has started investing at the beginning of her career, her savings
will have more time to grow.
How much does time matter? If Alice invests just $100 a month
beginning when she turns 25, and she earns an average of 7% on it each year
until retirement at 65, she’ll end up with almost $265,000. For Ben to see
similar results starting at age 35, he’ll have to invest about $220 a month —
or $510 a month if he starts at age 45.
If you didn’t start saving right when you began your career,
it’s OK. Just begin as soon as you can in order to take advantage of
compounding interest.
Draw up a plan How much is enough in retirement? Everyone’s
answer is different and personal, but consider the 80% rule. That says you
should plan to save enough so that for each year of your retirement, you can
spend 80% of the amount you made in your last year working without exhausting
your retirement fund.
To figure out how much you can save each month, take your
monthly pay and subtract your regular monthly bills and payments, making sure
to allow yourself enough money to have a little bit of fun. If you need to,
take a side job and devote all of the money you get from that to your
retirement savings. And remember that the amount of money you’ll actually need
can change, so it’s smart to save even a little more than you think you’ll
need.
Still unsure? Financial institutions like Tropical Financial
Credit Union have advisors available to help with retirement planning.
Maximize your retirement benefits
If your employer offers a 401(k) and will match your contribution, put
in enough to get the full match. So long as you can afford it, it’s getting the
most “free” money available to you.
Beyond your 401(k), consider saving more in a separate
individual retirement account — Roth or traditional — especially if you’re a
Ben and waiting a bit to start saving. The primary difference between the two
accounts is when you pay taxes: up front (Roth) or when you take distributions
in retirement (traditional). Brokerage accounts are another investment type to
consider.
It’s never too soon to start thinking about your retirement,
not even if it’s the first day of your working life. And whether you’re a Ben
or an Alice, there are ways to get to where you want to be.
Getting an education is one of the most amazing
accomplishments to have. To say you completed a 2 year, 4 year or even Doctoral
program is a great accomplishment, but the student loans, those are another
story. Often times College graduates find themselves buried in student loan
debt and it’s so hard to come out on top.
But, it is possible!
Paying off college debt isn’t easy but it is possible and it
all starts with YOU! First, find your
motivation! Find what drives you. Is it the idea of getting rid of the
financial stress from your degree? Maybe it’s the fact that you want to be debt
free before your children go to college or it can even a short term goal of
being debt free before you get married. No matter what your motivation is, find
it!
Next, look ahead. Once you’ve found your motivation set a
target goal. Is it 5 years, 6 months or even 15 years? What is the time frame
realistically you would like to have your student loan debt paid off by?
Then, make a budget. You’ve set a goal now make that goal
work with your budget. Look at budget and determine places that you can cut
back or even eliminate… for a short period of time. Also, think about paying
your loans bi-weekly instead of once a month or once every few months. This
will help pay down the cost quicker.
Check! What’s next?
You’ve set yourself up for an obtainable goal and you’ve
reviewed your budget, next try and search for student loan forgiveness
programs. If you work for the government or even a nonprofit you might be
eligible after a few years to forgive your loans! There are a few careers out
there that qualify you for loan forgiveness programs, you just have to be in
search of those programs.
Once you’ve looked into the forgiveness program, you will
know what plans of action you can take from there. Can your loans be forgiven
or do you have to continue paying back your loans? If you have to continue
paying back your loans, don’t worry! It can be done! Oh and don’t forget about
tax season! You may be eligible for a tax deduction on your student loan
interest which will be great. And if you receive any money back from tax
season, you should apply that directly to your student loans. After all, most
of the money we receive is like “found” money so why not put it towards getting
yourself out of debt?
But no matter what, be sure to continuously pay on your
loans. While some months you might struggle just look at the bright side, the
more you pay the quicker you pay it off!
Often times we hear the word budget and we are taken
back. We hate the idea of living life on a budget because we feel confined, like we are being held back. But having a budget
is a reality no matter what stage of life you are in. Just think, if you’re a
college student, you need to have a budget so you can pay for classes and if
you’re a homeowner you need to have a budget in order to make your mortgage
payment or to fix things around the house.
And if you’re a traveler you need a budget for all those vacations you enjoy. It’s hard to get away from budgeting…
but having a budget doesn’t have to limit you. Instead it can help you save for the goals you have.
Pay Today!
One of the best ways to k
eep your budget strong and to
avoid spending money that you don’t have is to
pay your bills on time. By doing so you avoid late fees and save money on interest too. So if you have a bill
that you pay monthly like a credit card or your electricity bill, set up a
reminder on your phone. This way you
remember to pay the bill and don’t have the excuse of “Oh I forgot!”. I have a cell phone calendar reminder for my
credit card and it helps me keep track and remember.
Especially since I have e-statements which
makes it super easy to forget a payment.
Take out or Dine in?
I enjoy going out to dinner. It’s nice that you don’t
have to worry about grocery shopping, cooking and cleaning but rather you can
just enjoy a meal. But that gets expensive and quickly too. It’s easy to spend $50
on one night’s dinner. So it’s about finding that balance and compromise. While
cooking dinner at home might be time consuming think about how much money you could
be saving in the long run. Instead of paying $50 per meal your likely to pay
$10-$20 per meal at home.
While cooking can be time consuming and cleaning can be a
chore, why not divide the tasks up with your
family or your significant other? In my house it is known that I hate to cook,
but I do it because I love to eat. Therefore, when I cook someone else does
dishes. However, when they cook I have no problem stepping up and doing the
dishes. This way we all have our part in the meal
prep.
To Do!
We all have hobbies or things that we enjoy but when we
think of a budget, we think it’s time to cut out the fun and focus on the
serious. I believe in a healthy balance of serious and fun. It’s important to
create a place in your budget for fun. Yes, I know it might sound crazy but if
you are not having fun, you’re not truly living life. So, look for deals for
family fun, date night fun and even fun that you can have by yourself. There
are many great sites for deals and discounts and living in South Florida, we
have some great free resources available to us.
We have tons of beaches and parks that are free for you
to hang out at. So plan a date night at the park and have a picnic or plan a
beach day with your friends and make it a pot luck. Some of the best memories I
have with friends are beach days and they cost next to nothing.
Sometimes you might have to think outside the box but there are ways to have
fun while keeping within a budget. Like checking out your local library for
books instead of buying them or renting moves from Red Box instead of seeing
them in the theater. Or carpooling with friends so you’re not the only one always driving.
Think outside the box when it comes to things you like to do and have fun with them. But
always have a place in your budget so you don’t have to be the one stressing
over finances.
Tuck it away!
If you are not good at budgeting yet you still want to
save money or have goals and dreams you are trying to accomplish, then budget backwards. Instead of budgeting for
life and using left overs for your trip, budget
for your trip and use the “left overs” for life. So If I know my trip is going
to cost $5,000 and I have two years to pay it off, I know that I need to save
roughly $200 a month for that trip. So each pay period I will tuck away $100.
And then use the rest of my paycheck to pay my bills, rent and any other
expenses I might have. The best trick I have found when I have a goal in mind
is to deposit that money into a separate account. Because, if the money is out
of sight, it’s out of mind.
No matter how you decided to save
for the goals you have, be sure that you pay what needs to be paid,
compromise where there’s room and tuck away money every paycheck so that you
can enjoy the life you have!
There are times in life when you want or need to spend more
cash than you have on hand. You can borrow the money and pay it back a little
at a time if you have reasonably good credit.
The most common way to borrow, if you don’t have a helpful
relative, is to go to a financial institution. There are different types of
personal loans available depending on what you plan to do with the money — just
bear in mind that eventually you’ll have to pay it back with fees and interest.
WHEN A LOAN MAKES SENSE
You can take out a personal loan, for instance, to pay for a
big project or consolidate debt. If you need a lump sum that you don’t plan to
pay back within about a year, a personal loan could be the best answer. If you
need funding relatively quickly, this could also be the right move. If your
credit card interest rates are in the upper teens or higher, paying them off
with a personal loan may work to your advantage. If you don’t have the time to
save up money to meet your goals, borrowing might be the next logical step.
TYPES OF PERSONAL LOANS
Most personal loans are unsecured. That means you’re
borrowing the money based on your creditworthiness alone, without putting up
collateral such as a car or house. Unsecured loans present a higher risk for
the lender, since it’s essentially relying on your financial reputation to
guarantee repayment. So this option carries a higher interest rate than one secured
by an auto or a home. If you don’t repay a loan backed by such an asset on time
and according to the terms, the lender can take your collateral or foreclose on
your property.
HOW TO GET A LOAN
Before you fill out a handful of online loan applications,
check out the terms and interest rates to see what’s available, what’s
affordable and what’s realistic. Understand that every time you apply for a
loan, your credit score can take a hit, which may jeopardize your chances of
getting the loan — or of paying a lower rate. Check available rates, including
where you bank regularly. If you have a history with a lender, even just a
checking account, it may be easier to qualify for a loan even if your credit
isn’t great.
Before borrowing, it’s best to have a plan for how the money
will be used and how you’ll pay it back. Taking out a personal loan can help
consolidate debt, accomplish goals or even make a dream become a reality.
“Close together or far apart dad is always in the heart”-
Unknown.
Father’s Day is quickly approaching and that means it’s
time to spoil dad! No matter if you live near or far, there are many great
things you can do to show your father some love on father’s day!
Live near?
If you are fortunate to live near your dad, then take the
time to really appreciate him this Father’s Day by planning a day for him.
*Take your dad to his favorite restaurant and share a
nice meal with him, bring the rest of the family and laugh and bring up the
good times.
* Plan a fun outing. Think about the one thing your dad
enjoys, is it Fishing? Maybe a sporting event or even maybe there is a movie
he’s been wanting to see. Whatever the case might be, plan an activity that
your dad will love! Plan some YOU and DAD time or some family time. But, just
be sure to do something that your dad enjoys.
Live Far?
If you live far, there are still many great ways to
celebrate your dad this father’s day!
*You can mail him a care package with some of his favorite
sweets and treats.
* You can make a father’s day card and mail it to him.
Because of technology, we don’t take the time to send letters like we used to.
I’m sure your dad would love to get mail that isn’t a bill.
* Skype, facetime or any other kind of video chat. Take
some time out of your day to have a face-to-face conversation with your dad.
Talk about the “good ole days” and maybe even plan a trip to see him.
* Surprise!!! Plan a surprise visit for the day or even
the weekend if you can make it happen! What dad doesn’t love a surprise visit?
A surprise visit would probably make him so happy to know you took time out of
your busy life to appreciate him!
Must Give a Gift!
If you’re the child that must give a gift so that you’re
father feels appreciated, do a little snooping. See what he needs this Father’s
Day. Is his wallet worn? Maybe his watch is a little banged up? What about his
sneakers are they in good shape? A great gift idea is something that he uses
daily, this way you are always with him! If it’s a wallet, add a picture of you
into the wallet so when he opens it up you’re the first face he sees. If it’s a
watch maybe get it engraved with a funny joke you share. There are always ways
to take every day gifts and make them personal… you just have to do some
searching.
One thing I learned about my dad is he always loved when
I gave him a photos of us. While he didn’t have a desk job, he loved carrying
photos of my brother and I and showing them off to his co-workers and friends.
If there was one thing my father was… it was a bragger. He loved to brag about
us kids.
So while you might think a gift is small, if it’s
something that comes from the heart, it’s going to be the biggest gift your
father can receive.
Four Questions to Ask Yourself Before Signing a Mortgage
Asking the right questions is an important part of every financial decision you make, and home ownership is no exception. If you’ve been thinking about buying a place, preliminary research will turn up a long checklist of questions for you to ask at every part of the process. There are questions for your financial institution, questions for your mortgage broker and questions for your real estate agent. But what about the questions you should be asking yourself?
Owning a home is likely the largest financial commitment you’ll make in your life, and it’s easy to get caught up in details pertaining to debt-to-income ratios, the real estate market, current interest rates and amortization schedules. But financials are only a part of the picture. In order to make a truly smart decision, you need to acknowledge and accommodate some personal factors along with the financial ones. Asking yourself the following four questions will help you determine whether or not you’re ready to own a home:
1. Why do you want to own a home?
Seriously, why is owning a home important to you? (Don’t answer with what you think you should answer; be honest with yourself.) Are you looking to build equity? Does it just seem like something a “successful adult” needs to do? Do you see it as an investment? Do you think renting is somehow inferior to owning? Are you just fed up with your landlord? Do you see it as a symbol of your freedom and independence? Do you have a Pinterest board of home renovation ideas you’re dying to try? Do you think it’s something that all (insert age here)-year-olds should do?
There’s no “right” answer to this question (even though some reasons might be more frivolous than others). By simply observing what surfaces when you ask yourself these questions, you’ll get some insight into why you’re contemplating buying a home in the first place. Are your motivations fueled by practicality or insecurity? Is it something you want, or simply something that everyone else seems to be doing? You’ll be able to tell if you’re in it for the right reasons. 2. Are you okay with staying put?
To make the most out of buying a home, you need to be in it for the long haul (which, in this case, usually means at least five to seven years). There’s a reason why short-term home ownership isn’t a thing outside of those real estate flipping TV shows—it’s a great way to lose a lot of money. Your home, like any investment, needs time in order for its value to grow (and that growth isn’t guaranteed, by the way). By selling your home after only a couple of years, you’re at the mercy of real estate market swings and your home may not have increased in value enough to break even—especially when you factor in closing costs and other additional expenses that go along with buying a home. If the thought of staying in one place for more than one year makes you feel panicky, then it might not be the right time for you to buy.
3. Are you happy?
Stability is key when it comes to buying a home, and so anything that threatens that stability could also potentially cause some major headaches once you’ve signed the mortgage papers. Do you love what you do for a living? Do you have job security? Do you enjoy living in your neck of the woods? Is your personal life stable?
You don’t want to be in a situation where you purchase a home and then find yourself faced with the need to change things up. A career change, the start or end of a relationship or a sudden onset of wanderlust could all interrupt your plans to stay put and build equity. Of course, life can be unexpected even when you’re happy—but generally speaking, if you’re pleased with where you’re at, dramatic changes won’t be looming around the corner. 4. Is your savings account up for the challenge?
Have you done your homework and figured out how much home you can afford, based not only on the monthly mortgage payments, but also on all of the other expenses, such as property taxes, insurance, homeowners association fees, and utilities, to name just a few? Regular monthly expenses aside, home ownership can serve up all sorts of expensive surprises, and you’ll want to make sure your savings account is up for the challenge. Save up for inevitable home repairs and maintenance—the financial responsibility of maintaining a household (appliances, heating, plumbing and landscaping) can take new homeowners by surprise. You’ll also want to beef up your emergency fund so that you have some flexibility and can continue paying your mortgage if you suddenly find yourself with health or job troubles. If your savings are healthy, you’ll also want to consider budgeting for moving expenses, furniture, and home upgrades before making the move.
________________
On the surface, home ownership can seem like a smart and appealing option, especially if your mortgage payments work out to be lower than what you would be paying to rent. However, rushing into a mortgage can set you up for a ton of stress (financial and otherwise). Before you buy, check in with yourself to make sure that you’re well prepared, that the timing is right and that you’re doing it for the right reasons.
Summertime was by far my favorite time when I was growing up
and in college. I loved having time off of school and having no responsibility.
The only problem was, my checking account drained pretty quickly during those
summer months. At first I couldn’t figure out why but then I figured it out.
During the school year I had a meal plan, and did lots of free activities on
campus. During the summertime, I had no meal plan and everything cost money.
There were no free BBQ’s, no free sporting events, and since school was
out my part-time campus job also ended.
If I knew then what I know now!
There are actually a lot of things that you can do living in
South Florida that won’t cost you much but still allow you to have a fun time
whether it’s during the summer, fall, winter or spring. Wait, what am I talking
about, we live in Florida, its summer year-round!
Eat Cheap!
Eating out is one of the most expensive outings in South
Florida. We have some great restaurants but the price of dinner adds up … and
quickly too. There are ways to cut the cost without cutting the quality of your
meals. You can always check out happy hours. Often times they have great
specials on food (not just drinks) and if you order an assortment of appetizers
you can have a meal for cheap! It’s nice because often times the same
appetizers that are $10 are $5 during happy hour.
Look for local deals. Many restaurants have specials during
the weeknights. Like Bonefish Grill, Tijuana Flats, and even Ale house's. So be
sure to ask your favorite restaurants about week night special and be sure to
sign up for e-mails from your favorite places. I get e-mails on a regular basis
with discounts and coupons for restaurants such as Outback and California PizzaKitchen and who doesn’t love a free appetizer! Plus, like them on social media
too, you never know what deal might pop up in your news feed.
Call around town! If you’re craving something particular,
take the time to call restaurants and see what specials they have. Often times
you might find specials on steaks and burgers at places you would least expect!
Oh and don’t forget to check out Groupon and Living Social
for restaurant deals! They have amazing deals for cheap eats that are good!!
Fun on the town!
We have free beaches! Do I need to say that again? I was on
a girls weekend to New Jersey once and it cost money to step foot on the beach.
What is that? We have FREE Beaches! Pile into the car and take a drive, enjoy a
beautiful day on the beach. Bring a cooler with food and drinks and maybe a
football to toss around. Find volleyball courts and get a game started or take
the time to build a sandcastle. Whatever makes you happy, do it on the beach!
Maybe even start a water balloon fight. Hmm I think I need to make this one
happen.
Everyone loves a good movie, so if you have a free
afternoon, go check out the latest movie release. You’ll save a lot too! An
afternoon movie could cost you about $9 while an evening movie will be about $12.
Hey every dollar counts! Plus who doesn’t love sitting in a dark theater on a
raining day or any day really!
Create your own fun!
Everyone loves a funny story, an embarrassing memory and
even a crazy time so why not create it yourself! Have a pool party at a
friend’s house, or host a pot luck night or even plan a themed dinner! The
catch is to have all of your friends contribute. Themed parties could be
something fun. You could do Indian night and have everyone cook at your house
and make a dish there or bring an already made dish. Who doesn’t like try new
foods? Pot lucks area always fun too, because you can hang out relax and eat.
And who doesn’t love a day of fun in the pool? Play some pool volleyball, some Marco
Polo and blast some music!
There are fun things happening all around us, we do live in
Florida! Have fun this summer and we encourage you to share your stories of fun
things you and your family like to do that don’t make you go broke!
Loans help
finance some of our biggest goals in life. They can provide access to
possibilities that we can’t afford upfront—possibilities like going to school,
buying a home or starting a business (to name just a few).
A loan is also
one of the biggest financial commitments we make in our lifetime. Rushing into
a loan without fully understanding how it will affect your budget can create a
very stressful situation that can quickly spiral out of control.
The good news is
that you can avoid this stress entirely by choosing the loan that’s right for
you: a loan you can afford, from a reputable lender, with a payment schedule
that makes sense.
Not sure where
to start? The five tips below will help you shop smarter for the loan that’s
right for you.
#1: Take your
time
Reading the fine
print is not fun, researching loan options is not exactly exciting and asking
financial questions can feel intimidating—but these all play an important part
in helping you find the right loan product. The process is not easy, and if
you’re tempted to rush through it, just remind yourself that being thorough now
can save years of financial stress down the road. You should never feel
pressured to sign anything on the spot. Remember: this is your loan and your
future—you’re in control!
#2: Be honest
about your budget
In order to
choose the right loan, you need to have a clear idea of how much you can comfortably
afford to borrow. Spend some quality time with your budget (if you don’t have
one, now is a great time to make one). You’ll want to come up with a range, so
calculate a few different scenarios:
• If
your income and expenses stay exactly the same as they are now, how much of a
monthly payment could you afford?
• If
you suddenly lost your job, how many payments could you make before running out
of cash? Do you have an emergency fund in place?
• Is
there an area of your budget where you can reduce spending to cover a planned
(or unplanned) increase in your monthly payment?
Picturing your
loan payment alongside your other budget items will give you a sense of what
you can realistically afford so that you can confidently shop for a loan
without worrying about the financial effect on your lifestyle.
#3: Give
yourself some credit
Your credit
score plays a huge role in determining the loan rate you qualify for.
Additionally, knowing your credit score before you go loan shopping will save
you some time by making it easy to weed out offers you’re not eligible for. In
the meantime, keep up those good credit habits: pay your bills in full and on
time, and try to use only 10% of your available credit limit each month.
#4: Do some
research
Start with
brushing up on some basic loan terminology and then move on to learning about
different types of loans (such as secured loans, unsecured loans, fixed-rate
loans and variable-rate loans). Research loans online to get an idea of the
interest rates for the products you’re interested in. When comparing various
loans, look at more than just the Annual Percentage Rate (APR). Consider the
fees, the payment schedules, the eligibility requirements, and the application
and approval process. Also, check out the history and reputation of the various
lenders—especially if you stumble upon offers that seem too good to be true.
#5: Check in
with your credit union
Credit unions
are known for offering competitive rates on loans. You may also qualify for
discounts based on your existing membership or because you have other banking
products with your credit union.
________________
Once you’ve done
your research and you know your budget inside and out, then arrange to meet
with a loan officer. And bring a ton of questions with you! Don’t be shy—ask
about any wording you don’t understand. Ask for your lender’s opinion and ask
if they’ve worked with someone in a similar situation as yours. To really put
your loan in context, ask a variety of “What happens if…?” questions:
• What
happens if I miss a payment?
• What
happens if I default?
• What
happens if I want to pay off the loan faster than expected?
• What
happens if I pay weekly instead of monthly?
The most
important thing to remember is that taking out and repaying a loan is not
intended to be a stressful experience—it’s intended to make large purchases or
investments affordable for you. It’s easy to get sucked into horror stories
about things like foreclosures and student debt, but a little knowledge and
preparation will make your own loan story a lot happier and a lot less
dramatic. So study up, focus on your specific needs and ask around—your perfect
loan is out there!
Yes, I know it is only May but what better time to start creating a holiday budget than NOW?
If you are anything like me, you wait until the last minute to start buying holiday gifts and then you're stressed, your checking account is empty and your credit card bill is higher than expected.
So why not start preparing your holiday budget now and maybe even checking some items off the shopping list? First things first, give yourself a loose budget. Maybe you plan to spend between $500 and $800 on holidays shopping this year. Second, find the best way to save! Is it a Holiday Club Account?
Tropical Financial offers a Holiday Club Account, which is in essence, a savings account. This is a FREE account to our members and is a great way to stash your cash. The account can be opened up any time of the year... (Now is a great time to open it) and you add to the account as often as you want. You can set up direct deposit, deposit at the branch or send deposits through the mail. There is no minimum balance required so you can save what fits your budget. Maybe one week its $100 but the next week is $20. It's your money, your account and your terms.
Once October rolls around, your money is transferred to an account of your choosing and BAM you're ready to shop. Oh and there's even a "gift” for you too! The Holiday Club Account earns monthly interest so you'll have a little extra for you. As the saying goes, "out of sight, out of mind." This is a great way to save and not accidentally use the money for something else.
Gift Cards
This is another great way to save weekly or monthly and doesn't require too much effort on your end.
Every pay check you receive, go to the store and buy a gift card. For instance if you're goal is $600 and you buy two gift cards each month for $50. You'll be at your goal in no time.
The trick here is to keep those gift cards in a safe place, and remember that safe place. For the record, your wallet is not a good or safe place as you might see the gift cards and spend them on yourself.
Shop now and save later
All year long we have amazing sales in the stores. Memorial Day Sales, President’s Day Sales, Sales just because it's Monday and even sales for on-line only purchases. The sales are endless... I know I get text alerts daily.
So, if you know who you’re shopping for and you have an idea of what to get them, why not buy it now? Find a coupon, check out the sales and make the purchase now! Just don't be like my mom who I love dearly, buy it, hide it and forget it. I get a lot of gifts after Christmas.
Now, you might be thinking, "What about Black Friday?" What about it?! Most people think those are the deal of a lifetime but that isn't always the case. A lot of time the TV's are several generations old, or they only have two of the special deal computers in stock and sometimes the prices are raised and then discounted to make you feel like you're getting 50% off. Often times the deals are much better throughout the year. So, just be aware and alert of the sales and deals.
Start now!
No matter which route you chose, even if it isn't one of my options, start preparing now. It's never too early. Start creating your shopping list and the items you hope to buy. Start checking out pricing so that you can set a budget that works with your finances. But more importantly, don't wait until the last minute. We know that every year our loved one has a birthday, and the holidays are coming, yet we ALWAYS wait until the last minute to buy gifts.
The more you spread out your holiday spending and the more you save now, the less your wallet will feel the hit later.
This month, our blogs have been focused on getting yourself a new home. We started with the younger generation talking about the idea of moving out and all that it entails. From there, we spoke about the basics of getting a mortgage and what you need to know. And then, we asked a tough question. "How do YOU know YOUR ready to buy a home?" Each topic covered a different area of getting your new home. But nothing beats the feeling of hearing your offer has been accepted!
Now, it's time for the fun part. The application process. But, what does it entail? How do you know what to provide? All questions that we here at Tropical Financial are prepared to assist you with.
If you've already been pre-approved a lot of the documentation needed will have already been provided, but just in case here is a list of what you'll need:
Last 2 years of documented income (tax returns, W2s, and/or 1099s)
Last 2 months of bank statements (checking, savings, and retirement)
Last 30 days of paycheck stubs
Explanation for any credit inquiries or letters explaining negative ratings
Proof of downpayment or gift funds
Home appraisal fee
Signed executed purchase contract
That's it! Just a few simple steps and you are on your way to your new home! Note of caution: Do NOT make any large purchases or apply for any new credit while you're going through the mortgage process. Credit is pulled one more time just before closing and anything new on your credit report could upset your debt-to-income and potentially prevent the deal from closing. So wait until you have those keys in hand before you buy the new furniture.
If you were to ask me what my all-time favorite hobby is,
the answer would be simple, traveling. I love to pack my bags and see new
sights. Although I like planning for my next big adventure, money can be the
deciding factor on whether or not I can take the trip. So, like most of us I’ve
turned to the internet to see how I can get the best deal.
I have found some great tips and tricks along the way, for
instance with some cruise lines, if you book a cruise while on board their ship
you are likely to get a better deal than if you book while at home. I’ve also
learned that booking airfare at 2 am on Tuesday doesn’t give you the best deal
but in fact a horrible deal! Trust me, I know from experience.
There is one option I haven’t had the change to explore but
I plan to check out, that’s Groupon and Living Social’s travel deals.
When it comes to Groupon and Living Social, I love their
deals. I have purchased great dinner deals, fun activities and even some great
deals on health and beauty. Plus, they have great ideas for birthday gifts!
Whenever I have a birthday or even a bridal shower, I tend to turn to Groupon
and Living Social for gift ideas! Not only are the services and products
awesome, but the cost helps me and my budget.
But, what’s the truth with travel?
When it comes to using discount sites like groupon and
living social for travel, you need to put a little leg work into the
experience. Sometimes the cheapest deals are not the best experiences and the
same goes for the most expensive trips, those can lead to terrible
experiences. But, there are a few things you can do and look for to plan
for a great getaway.
Research!
I have traveled a lot and I’ve done a lot of research too!
When you find a trip that looks out of this world on Groupon or Living Social,
do some research off the site! Check out the hotel through sites like Yelp or
Trip Advisor and see what others are saying about the resort. This will help
give you a good idea of what the resort has to offer as well as a variety of
experiences from people that have first-hand experience. Also, check out
social media sites associated with the resorts, you would be surprised at the
good information available via social media including reviews of the resort.
Ask Questions!
When it comes to booking a trip, it’s important to ask
questions. I know that deals are limited on Living Social and Groupon but pick
up the phone and talk to a representative, see what they have to say about the
trip, ask about insurance policies and their individual policies. If a
representative from Groupon or Living Social can’t help you out, then maybe you
should look for another way to take your big trip!
Likewise, when looking for travel options, call the resort
directly. Ask them questions about the deal they have posted, talk to them
about what the resort offers and even speak with them about the upkeep of the
resort and their resort rating. This is a great time to get more information
and more details on the offer.
This is also a great time to speak to the hotel about
getting “walk in” pricing. Find out what the rate would cost you to book the
same room directly with them, you may save $500 or $20, either way it could be
a savings.
Book local and smart!
I’ve read several articles that talk about the good and the
bad with booking through Groupon and LivingSocial. I can see the point on both
the good and the bad reviews but keep in mind people have different standards
or expectations, other times something like bad weather might cause someone to
give a bad review. If all we read is the end result, we won’t know the details.
So, be your own judge! If you want to take a big trip like
Europe or Asia, try taking a local trip first. Find an affordable beach
vacation, or if you know you’re going to see family, try booking a trip that
includes airfare so you can see firsthand the experience from start to finish.
If you book something local and cheap for the beach and you hate it, you can
drive back home. Likewise, if you fly out to see family, just stay at their
place if you are unhappy.
This is a great way to try it out, see the experience and
make up your own mind and hey, it forces you to take a vacation or a staycation
if you didn’t have one planned.
Budget Friendly
Another important thing to keep in mind when booking any
trip is that it’s budget friendly. There are a few things that you want to be
able to account for with your vacation. If you are flying be sure to account
for the cost of luggage. You also want to be sure to account for transportation
cost and any additional taxes or fees that might come with your stay. If you
budget for a 5 day vacation with airfare for $1,000 a person you should try to
find something a few hundred dollars less. This will help you from going over
budget with the fees you didn’t think about… like luggage.
Good deal or not?
This is something that only you can decide! Everyone has
different expectations when it comes to travel and price. What I think is a great
price you might think is too high or what I think is a nice getaway you might
not. It’s all in the eye of the beholder.
I have personally booked vacations through discounted websites
which included airfare and the resort stay and I will say, it was an amazing
trip! I had no problems or issues with my resort, in fact, the resort was nicer
than the photos. When I read the reviews before paying for my trip they were
50-50 with positive and negative and I will tell you I had a 100% positive
experience. The negatives that I read about didn’t exist and the trip was
beautiful. I can’t wait to book my next trip and be proud of my savings!
Tis the season... To throw a party! Growing up, my house was
the party house. Any occasion was a good occasion for my parents to have people
over. Memorial Day, July 4th, graduations, birthdays, sports events, even
hurricanes were a reason to party. My house was the place to be and my parents
were always amazing hosts. So, naturally, I love to entertain too. But I've
come to the realization that party planning is an expensive venture. There is
tons of planning involved, many shopping trips and lots of time needed to
ensure your guest have a great time.
Logistics:
First things first, the planning! Creating the perfect party
not only requires money but time. It's important to plan things through so that
you have enough food, space and your guests enjoy themselves. If needed, gather
a few of your close friends to help with the party planning.
Invites:
When it comes to celebrating anything from a graduation, to
a birthday or even just the holidays, sending out invites is a nice touch, but
it can be costly. So, use resources that are free. Evite is a great site for
sending invites and keeping track of the RSVP’s. Another free and great site is
Facebook events, you can make the invite private and share details with just
your friends. You can also create a PDF invite and e-mail that out to all of
your friends.
There are many ways save money without compromising
style
Decorations:
Presentation is key at a party. Everything from the
appearance of the food to the appearance of the tables is key when planning a
fun party, but like everything decorations can get really pricey. Luckily for
you, there's Pinterest. I know you might be thinking "I'm not crafty",
don't worry I'm not either. But there are fun and cute decorations you can
create online and print out like food titles or printable banners and even
printable gift wrap if you're giving away party favors. But more than that, you
can use Pinterest to get clever ideas that won't cost a lot. Like making candle
centerpiece (you can buy these from the dollar store) or creating simple collages
with photos you already have framed. This is great if the party is for a
graduation or birthday. Flower arrangements also make for great center pieces
and are also fairly cheap at the dollar store or can be found on sale at many
stores. Bowls of candy also make for great center pieces and are cheap to
supply.
Pinterest is full of great ideas to help spice up your
party while keeping within your budget. You'd be surprised at what ideas you
can find off of the Internet that are easy to create and easy on your
pocket.
Food and drinks:
First things first, if someone ever asks to bring
something... say YES! Because that means one less thing you have to worry
about. Whether it's something as simple as cups, or something as fancy as
dessert. If you have a theme, ask them to bring an item that fits with the
theme. Otherwise, when it comes to food and drinks for your guests, buffet
style is always great and the more variety the better. It's important to know
your guest and the time frame too this will help when deciding on what to serve
and how much. Great food ideas are pasta bars, all things mini (sliders, mini
Mac and cheese...) or do a taco bar or even my favorite a fajita bar. Fajitas
are easy to put together, you marinate meet overnight and set up the station
and people can come and go as they please. Add a dish of rice and maybe some
chips and let your friends enjoy a cheap but yummy Mexican themed party. You
could also go the pot luck route. Pot lucks are a great way to try various
foods and a great way for you to stay within your budget.
Likewise, when it comes to beverages for the party, buy
store brand products, they will save you money and they taste the same. If you
feel shy about asking guest to bring beverages, buy in bulk. Go to wholesale
stores and buy from them, the cases of soda will be cheaper as will the various
other beverages you are looking to supply.
Entertainment:
Music is always a must at parties but sometimes hiring a DJ
can really put you over your budget. My trick for playing music is my mini jib
speakers. I love these things, I got them from Amazon for under $20 and they
play such great quality music. I pair it up with my phone and caLiving Social and Groupon, talk to friends
and even ask on social media. See what people can recommend. Hey you never
know, a co-worker might be a DJ on the side.
n place the
speakers in two different locations so that all my guest can hear the music.
There are many wireless speaker options that play great sound and allow you to
pair up more than two speakers. This is a great alternative to spending a lot
of money on a DJ. But, depending on the party setting a DJ might be the best
option, so shop around. Check out
There are many ways to have a great party and stick within a
budget! It's all about being resourceful and using what's available to
you.
It doesn't matter if you’re throwing a high school
graduation party, a house warming party or even a wedding. There are things you
can do to help with the cost but still give your guest an amazing time!
I think it’s time for a summer bbq/pool party... I better
start planning!
Making the decision to become a
homeowner is emotionally and financially complex. Here are some key things to
ask yourself if you're considering whether
buying is right for you.
Do you
have a good reason to buy?
Sometimes switching from renting
to buying is a no-brainer. Maybe you live in a modern one-bedroom
apartment in a chic part of town, but you have a baby on the way. If you want a
place in a good school district, with more square footage and a yard, buying
may well be your best bet. Other times, the urge to buy is
driven by emotion: You see a house you like and you “just know.” There's
nothing wrong with that reaction, but take time to check out the property
before you make any commitments. If it's too far from work, near a noisy road
or the best house on a bad block, it may not be as good a deal as it first
appears. And remember: Houses go on the
market all the time, and there are tens of millions of single-family homes and
condos in the U.S. So there's no need to worry if your first choice doesn't
work out; your home is out there.
Can you
make the upfront investment?
Buying a home requires an initial
investment that you can't ignore. First, many lenders require a
down payment of 20% of the home price. That's $40,000 for a home that costs
$200,000, about the median price in America. You'll also owe closing costs,
which could include loan-origination fees, discount points, appraisal fees,
survey fees, underwriting fees, title search fees, and title insurance. Those
could total another few thousand dollars. The expenses don't end there.
You'll want to hire an independent inspector to look for defects in a home
before you buy. This will cost several hundred dollars, but could save
you thousands in repairs. And then there are moving costs, state or city taxes,
utilities installation and the costs of changes you might want to make to the
home — such as new flooring or painting — that are easiest to do while it's
empty. This isn't meant to scare you
off; buying a home is still a smart choice for many people, despite the costs.
But it does take a lot of cash.
Can you
afford the upkeep?
Your mortgage payment might be
fixed for the next 30 years, but your property taxes and insurance rates can
rise. And if you didn't make a 20% down payment, you'll have to buy private
mortgage insurance, or PMI, until you have 20% equity in your home. It costs
about $165 per month on a $200,000 loan. Once you're a homeowner, you'll
also have to pay certain utility bills that might have been included in your
rent. And you'll be responsible for maintenance: double-pane windows one year,
a new garage door the next, fixes to the roof five years up the road. It adds
up.
The house buying process is both exciting and scary. I am
not there yet… mostly because I can’t afford it. But becoming a homeowner can
be one of the most rewarding life experiences. Just think about it for a
second, you start saving for a place of your own, not a house but a home. Then
you go on the hunt and view house after house to see which one makes you say;
“This is it!!”. Next thing you know you are off to complete the buying and
mortgage process and finally you are given a set of keys… your keys… to your
home. How could you not smile? How could you not be proud that you set out to
achieve something, and you did it!
So, what are the steps we need to take to achieve this
amazing feeling? First things first, we need to know and understand what the
road to being a homeowner is, so we need to know the basics.
Save!
For starters, when looking to become a homeowner it’s
important that you start the saving process earlier rather than later. The more
money you can save, the more it will help you later on down the road. For
instance, many buyers want to have a down payment is at least 20% of the
purchase price in order to avoid monthly mortgage insurance fees. That could be
a lot of money depending upon what you are looking to buy, so the more you
save… the more you can put down which will in turn help lower your monthly
payments.
Another cost you should be saving for are the closing
costs. These fees vary with every mortgage but is needed in order to transfer
the ownership from the previous owner to you. One of the many great perks about
being a member at Tropical Financial is that if you get you use our Home
Advantage program and get your mortgage loan from us, we will give you a rebate
at closing that will help with those closing costs. But, I say you save anyway
and then the money left over can be for the new home!
Always be prepared for the extras! You never know how your
purchase deal is going to go and you never know which fees might pop up during
the process. Be sure that you are saving more money than you anticipate so you
are not left at the closing table counting pennies.
Prepare yourself!
You need to be prepared! That means before you start the
home purchase process, check out your credit report and your credit score and
see where you can improve. Do you have bills in collections? Pay them off. Do
you have tons of late fees? Get up to date on those payments. Did you find
fraudulent activity reported? Dispute that and get it cleaned up! By taking the
time to view your credit report you can keep the home buying process smooth and
easy. Oh and during the home buying process NEVER EVER apply for a new auto
loan, or take out a loan or even open up a store credit card. These things can
prevent you from closing on your new home.
Mortgage Types!
There are several types of mortgages to know and be aware of
before you start the home buying process. The most common ones are fixed-rate
and adjustable mortgages
Fixed-rate mortgages come with an interest rate that remains constant over
the life of the loan. 30-year mortgages are the most common, but you may also
choose a 20-year, 15-year, and even 10-year fixed-rate mortgage. In certain
high-cost areas some mortgage lenders are even offering 40 year-loans. Though
the mortgage interest rates tend to be higher than for other loan types, the
rate is fixed and your payment won’t change. This stability makes them the most
secure type of mortgage for buyers.
Adjustable-rate mortgages (ARMs) have a period of
fixed interest, but after that the payment changes with whatever index the loan
is based on. The period of fixed interest may be three, five, or seven years.
With a 5/1 (the first number stands for the number of years in the initial
fixed period, while the second indicates how often the new rate will adjust)
ARM, for example, the initial interest rate remains fixed for the first five
years, and then adjusts annually for the remaining term.
There are several types of caps that may apply to an ARM: an
overall cap limits how much the interest rate can increase over the life of the
loan; a periodic cap limits the amount the interest can increase from one
period of adjustment to the next; and a payment cap limits the amount the
monthly payment can increase at each adjustment.
While ARMs are less secure than fixed-rate mortgages, they
tend to have lower initial rates and therefore lower monthly payments. They can
be a good option if money is tight in the early years, as long as you are
confident you can meet future interest and payment increases.
What’s next?!
You’ve taken the time to start saving and preparing for the
mortgage process but what’s next? The first thing you should do is speak with a
Tropical Financial Mortgage Loan Officer. They will sit down with you and
explain the home buying process as well as what type of mortgage is best for
you and your budget. They will also help you find a qualified Real Estate Agent
with our Home Advantage program. But more than anything, they will be there for
you throughout the entire home buying process.
Contact a Tropical Financial Mortgage Loan Officer today to get you started on
the home buying process and be sure to check back as we share ways to help you
make your dream of owning a home come true!
Happy Mother’s Day to all the beautiful moms out there!
Mother’s Day is a time to thank our beautiful mothers and
to celebrate them for all that they do!
But how?
This Mother’s Day give your mom something from the heart,
show her that you put time and thought into something to honor her.
Unfortunately I won’t have the opportunity to spend Mother’s Day with my mom
this year as she will be out of town, but I started to think, “How can I make her
Mother’s Day special even though I am not there?” I decided to send her
flowers, yes I know it’s ordinary but I know she will feel so happy and loved
when she gets her flower delivery all the way in Mexico.
Sometimes it’s the simple things just flowers and a card with three words, “I
Love You!” To make Mother’s Day one-of-a-kind.
Another great way to show your love for your mother this Mother’s
Day no matter how close or far you might be is to make your mom something! Go
through a bunch of old photos and create a photo calendar of all the fun times
you’ve share with your mom and your family. Or create a photo book of one of
your favorite family vacations. Mom’s love photos and looking back on all the
wonderful memories!
For my mom and I, It’s all about mother daughter days and
spending quality time together, whether its lunch, getting our nails done or
even spending a day at the pool. Anything as long as we are laughing and
chatting we are happy!
If your mom is the one who does all the cooking in the
household, try taking over for the day and allow your mom to rest with her feet
up as you prepare breakfast in bed or lunch by the pool and even a nice dinner.
There are tons of ways to show your mom how much you
appreciate her this Mother’s Day. Be sure to do something special to spoil her
and be sure to tell her Thank you and I Love you. Words that all mothers love
and deserve to hear.
Whatever it is that you decide to do for your mother,
make it a special Mother’s Day!
Living on
your own for the first time can be empowering. It means having independence and
all the things that come with it. Some of those things—like not having to share
a bathroom—are wonderful. Others—like killing spiders yourself—are not so fun.
And leading the pack in the not-so-fun category: bills.
Bills tend
to sneak up on us because they don’t fit nicely into a routine. They all have
different due dates, some are delivered to your mailbox and others to your
inbox, some need to be paid monthly and others yearly, and some have amounts
that fluctuate. It takes a lot of wrangling to get them all under control.
The
importance of “bill time”
Bills may
not stick to a routine, but you sure can. No matter how you keep track of
your bills, you still need to take the time to manage them. It can be as
simple as 15 minutes, once a week. “Bill time” lets you:
•Gather up any bills received that week (especially the ones that
like hiding under your junk mail)
•Locate and/or print out any e-bills received that week
•Input the bill totals and their due dates into your calendar (or
notebook, or spreadsheet, or budgeting app)
•See what bills need to be paid that day
•Pay those bills (this could be a combination of paying them online
and/or writing out checks and addressing envelopes)
•Mark those bills as paid (and revel in your self-satisfaction)
•Look ahead to see what your payment schedule looks like the
following week and month
Sticking to
the same day and time for “bill time” is important:
•It creates a routine that’s easy to follow
•It saves time by allowing you to tackle several payments at once
•It keeps you organized and aware of your payment schedule
•It’s the best way to eliminate the “out of sight, out of mind”
problem that so many of us have with our bills
So, you have
your regularly scheduled “bill time” and you have a stack of bills. Now you
need a system to keep track of it all. Luckily, there are so many ways to
manage your bills that it’s easy to customize a system that works well for you.
DIGITAL
Dedicated
personal finance apps
If your
smartphone is basically an extension of your body, using an app might be the
best way to manage your bills. Although there are several stand-alone bill
payment apps to choose from, you might also consider looking into more
comprehensive budgeting apps that include bill management as a feature. If the
apps are free, download a bunch of them and take a quick tour to see which one
you like best. If you have to pay for an app, do some research to understand
the extent of its features before you buy it.
These
questions may help you in your search:
•Is it a calendar-based, spreadsheet-based or list-based app?
•Can you pay bills from within the app?
•Does the app use a notification system to remind you of upcoming
bills? Can you customize those notifications?
•Is the app secure? (This is specially important if you need to input
your personal or banking information.)
•Is the app supported by your financial institution?
•Is the app compatible with other apps you use (e.g., your digital
calendar)?
Digital calendars
Personal
finance apps can be helpful, but when it comes down to it, a generic calendar
app is enough to help you stay on track. If you’re already a calendar app user,
consider creating a sub-calendar with your bill payment schedule. Or, if you
don’t like the idea of mixing “bill time” with leisure time, you can use a
completely separate calendar app to manage your finances.
Digital
spreadsheets
Spreadsheets
are typically more of a laptop or desktop solution than a smartphone solution
(although some software packages let you access your spreadsheets from
anywhere). Most top budgeting programs include custom-designed spreadsheets,
but there are also tons of free spreadsheet templates available for download
that work with your default spreadsheet software—even Pinterest is full of
them!
Reminders/alerts
A reliable
reminder app can give your bill management system a powerful boost. If your
bill payment app is lacking when it comes to notification options, a dedicated
reminder app can make up for it. If you prefer organizing your finances on
paper, you can still set up digital alerts to make sure you stay on track. And
don’t forget to set up a recurring reminder for your weekly “bill time”!
ANALOG
On paper
Using pen
and paper to manage your bills might sound completely old school—especially
when there are so many digital alternatives available—but some people have much
more success creating a payment schedule the analog way. There’s just something
about writing things down and physically ticking items off a list that can make
the process feel more “real” and tangible than doing the digital equivalent on
your phone or laptop. So if you find yourself slipping on your payments no
matter how many apps you download, give paper a try.
Paper
calendars
If you’re a
visual person, a calendar system is a great way to go. Wall calendars and
agenda-style calendars work equally well (the dollar store and free printable
templates are the cheapest way to get started). Mark down your paydays and your
bills in your calendar, and come up with a consistent way to note when bills
have been paid (like highlighting them).
Paper
spreadsheets
Some people
feel more organized if they have their spreadsheets printed out and sorted in a
binder or notebook. A quick search on Google or Pinterest will connect you with
tons of free, beautifully designed and printable spreadsheets that you can use
to build your bill payment system.
Pro tip
No matter what system you end up using, this tip
can help you avoid getting hit with a late fee. If you’re using a
calendar-based system, write down your bills and their due date on the day
on which you plan to pay them (not on their actual due date). It helps you
stay ahead of the game and buys you a little extra time if you do happen to
slip up Living on your own can be a big step, keep up to date with our blogs this month as we share how the mortgage process works! ^Alysha
Check your credit report- AnnualCreditReport.com gives you a free credit report once a year. It’s important to look into your credit report and be sure that all is okay, especially if you are looking to apply for a loan and more so if you haven’t reviewed your credit report in over a year. You want to be sure that you are up to date and you know what is being reported. Plus, reviewing your credit report gives you time to dispute any claim that may not be yours.
