Tag: Investing

The 5 Best Financial New Year’s Resolutions

Change has to start somewhere, and for many people that change is easier to make if the starting point has some meaning. It can be a birthday, an anniversary, or any other date with some symbolic weight. Most commonly, people choose the beginning of the new year.

If you’re looking for some New Year’s resolutions that will truly change your life, consider adjusting your financial strategy. Here are five things you can do in 2021 to take your money game to the next level.

Refinance Loans

Interest rates are at near-historic lows, which makes this the perfect time to refinance your debt. Refinancing means switching your loans from your current lender to a new lender in order to take advantage of a lower interest rate. Refinancing can save you thousands of dollars, depending on the original interest rate and total balance.

 For example, let’s say you have a $200,000 30-year mortgage with a 5% interest rate, and you refinance to a 3% interest rate. Your monthly payment will be $244 lower, and you’ll save $31,173 in total interest over the life of the loan. 

You can refinance auto loans, personal loans, and even student loans. However, if you have federal student loans, you may want to hold off on refinancing. Refinancing a federal student loan converts it into a private student loan. This means you’ll give up extra perks and benefits like income-driven repayment plans and deferment and forbearance options.

Transfer Credit Card Debt

If you have credit card debt, you can pay less interest by transferring the balance to a new card with 0% APR on balance transfers. These special discounts usually last between 12 to 18 months, during which time you won’t be charged interest on the credit card balance.

For instance, let’s say you have a $5,000 balance on a card with a 17% APR. If you only make the minimum payments, you’ll pay $1,223.61 in total interest. If you transfer that balance to a card with 0% APR for 12 months and repay the balance in that time, you won’t pay any interest.

There is often a small fee associated with balance transfers, around 3% of balance transfers. For example, if you transfer $5,000, you’ll pay a $150 fee. That still leaves a net savings of $1,073.61 in the scenario outlined above.

Decrease Your Fixed Expenses

One of the best things to do for your budget in 2021 is to decrease fixed expenses like your car insurance, internet, cable, and cell phone. Call those providers and try to negotiate a lower rate.

 Go through your transactions for the past few months and write down all the recurring subscriptions like Netflix, Amazon Prime, and DoorDash. Then, group them into categories like “frequently use,” “sporadically use” and “rarely use”. Consider canceling anything you rarely use.

 See if you can get a better deal on your most popular subscriptions. For example, if you and your significant other both pay for Spotify Premium, get a Spotify Duo account instead, and save yourself $83.88 a year.

Open a Better Bank Account

Most people are missing out on an easy way to earn money through your bank account. You could be leaving hundreds of dollars on the table if you still have a traditional savings account.

According to the FDIC, the current average interest rate on a savings account is 0.05%. Many high-yield savings accounts offer rates between .40% and .60%. 

Let’s say you have $10,000 in a savings account with .05% interest. After one year, you’ll have earned $5.04 in interest. If you moved that amount to a high-yield savings account with .5% interest, you would earn $49.92 in interest over that same time period.

Start Investing

If you’re not investing for retirement yet, this might be the most important financial resolution you can make. Thanks to the power of compound interest, you can start investing now and see huge growth by the time you’re ready to retire.

IRAs and 401(k)s are the two main retirement accounts. Anyone can open an IRA, while only those who have access to an employer-sponsored 401(k) can open one.

 If you’re not sure how to invest in your retirement account, consider hiring a qualified financial planner through the National Association of Personal Financial Advisors (NAPFA).

If you’re not ready to work with a financial planner, you can use a robo advisor like Betterment or Wealthfront, which will create a portfolio based on your age, income, and expected retirement age. Robo advisors have low fees and are designed to help beginner investors.

How to Keep Financial Resolutions

First, start small. Pick one habit to change at a time. If you try to accomplish five goals at once, you’ll burn out quickly and give up. 

When you decide on a resolution, break it up into smaller, more manageable tasks. For example, if your goal is to talk to a financial planner about investing, break it down into the following steps:

1) Research financial planners through NAPFA

2) Send introductory emails to three financial planners

3) Choose the one that seems like the best fit

4) Schedule a consultation

Give yourself a deadline to accomplish each of these tasks, and ask a friend to hold you accountable.

Another tip is to tie your resolutions to a bigger goal. Like dieting or starting a new exercise plan, changing your financial habits is hard. If you’re used to grabbing lunch with your co-workers every day, bringing leftovers from home instead will seem like a huge change.

The key is to imagine the future version of yourself who will benefit from the changes you make today. If your goal is to open and contribute to a retirement account, imagine yourself as a senior citizen living comfortably.

When you’re tempted to skip this month’s retirement contribution to buy concert tickets, think about your future self, what you’d want for them and how they would appreciate your sacrifice. It can also help to remember some of the financial mistakes you’ve made in the past, and how much easier your life would be right now if you had made a different choice.

The post The 5 Best Financial New Year’s Resolutions appeared first on MintLife Blog.

Source: mint.intuit.com

By February 3, 2021.    Financial Planning, Home, Investing  , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,  

How To Retire At 50: 10 Easy Steps To Consider

Can you retire at 50? On average, people usually retire at 65. But what if you want to retire 15 years earlier than that like  at 50? Is it doable? Below are 10 easy steps to take to retire at 50.  Retiring early can be challenging. Therefore, SmartAsset’s free tool can match you with  a financial advisor who can help to work out and implement a retirement income strategy for you to maximize your money.

10 Easy & Simple Steps to Retire at 50:

1. How much you will need in retirement.

The first thing to consider is to determine how much you will need to retire at 50. This will vary depending on the lifestyle you want to have during retirement. If you desire a lavish one, you will certainly need a lot.

But according to a study by SmartAsset, 500k was found to be enough money to retire comfortably. But again that will depends on several factor.

For example, you will need to take into account where you want to live, the cost of living, how long you expect to live, etc.

Read: Can I Retire at 60 With 500k? Is It Enough?

A good way to know if 500k is possible to retire on is to consider the 4% rule. This rule is used to figure out how much a retiree should withdraw from his or her retirement account.

The 4% rule states that the money in your retirement savings account should last you through 30 years of retirement if you take out 4% of your retirement portfolio annually and then adjust each year thereafter for inflation.

So, if you plan on retiring at 50 with 500k for 30 years, using the 4% rule you will need to live on $20,000 a year. 

Again, this is just an estimation out there. You may need less or more depending on the factors mentioned above. For example, if you’re in good health and expect to live 40+ years after retiring at 50, $500,000 may not be enough to retire on. That’s why it’s crucial to work with a financial advisor.

Get Matched With 3 Fiduciary Financial Advisors
Managing your finances can be overwhelming. We recommend speaking with a financial advisor. The SmartAsset’s free matching tool will pair you with up to 3 financial advisors in your area.

Here’s how it works:

1. Answer these few easy questions about your current financial situation

2. In just under one minute, the tool will match you with up to three financial advisors based on your need.

3. Review the financial advisors profiles, interview them either by phone or in person, and choose the one that suits your’ needs.

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2. Maximize your tax-advantaged retirement accounts.

Once you have an idea of how much you need in order to retire at 50, your next step is to save as much as possible at a faster rate. If you are employed and you have a 401k plan available to you, you should definitely participate in it. Nothing can grow your retirement savings account faster than a 401k account.

See: How to Become a 401k Millionaire.

That means, you will need to maximize your 401k contributions, for example. In 2020, and for people under 50, the 401k contribution limit is $19,500.  Also, take advantage of your company match if your employee offers a match.

In addition to the maximum contribution of $19,500, your employer also contributes. Sometimes, they match dollar for dollar or 50 cents for each dollar the worker pays in.

In addition to a 401k plan, open or maximize your Roth or traditional IRA. For an IRA, it is $6,000. So, by maximizing your retirement accounts every year, your money will grow faster.

3. Invest in mutual or index funds. Apart from your retirement accounts (401k, Roth or Traditional IRA, SEP IRA, etc), you should invest in individual stocks or preferably in mutual funds. 

4. Cut out unnecessary expenses.

Someone with the goal of retiring at 50 needs to keep an eye on their spending and keep them as low as possible. We all know the phrase, “the best way to save money is to spend less.”

Well, this is true when it comes to retiring 15 years early than the average.  So, if you don’t watch TV, cancel Netflix or cable TV. If your cell phone bill is high, change plans or switch to another carrier. Don’t go to lavish vacations.

5. Keep an eye on taxes.

Taxes can eat away your profit. The more you can save from taxes, the more money you will have. Retirement accounts are a good way to save on taxes. Besides your company 401k plan, open a Roth or Traditional IRA.

6. Make more money.

Spending less is a great way to save money. But increasing your income is even better. If you need to retire at 50, you’ll need to be more aggressive. And the more money you earn, the more you will be able to save. And the faster you can reach your early retirement goal.

7. Speak with a financial advisor. 

Consulting with a financial advisor can help you create a plan to. More specifically, a financial advisor specializing in retirement planning can help you achieve your goals of retiring at 50. They can help put in a place an investment strategy to put you in the right track to retire at 50. You can easily find one in your local area by using SmartAsset’s free tool. It matches users with financial advisors in just under 5 minutes.  

8. Decide how you will spend your time in retirement.

If you will spend a lot of time travelling during retirement, then make sure you do research. Some countries like the Dominican Republic, Mexico, Panama, the Philippines, and so many others are good places to travel to in retirement because the cost of living is relatively cheap.

While other countries in Europe can be very expensive to travel to, which can eat away your retirement money.  If you decide to downsize or sell your home, you can free up more money to spend.

9. Financing the first 10 years.

There is a penalty of 10% if you cash out your retirement accounts before you reach the age of 59 1/2. Therefore, if you retire at 50, you’ll need to use money in other accounts like traditional savings or brokerage accounts. 

10. Put your Bonus, Raise, & Tax Refunds towards your retirement savings. 

If retiring at 50 years old is really your goal, then you should put all extra money towards your retirement savings. That means, if you receive a raise at work, put some of it towards your savings account.

If you get a tax refund or a bonus, use some of that money towards your retirement savings account. They can add up quickly and make retiring at 50 more of a reality than a dream.

Retiring at 50: The Bottom Line: 

So can I retire at 50? Retiring at 50 is possible. However, it’s not easy. After all, you’re trying to grow more money in less time. So, it will be challenging and will involve years of sacrifices, years living below your means and making tough financial decisions. However, it will be worth it in the long run. 

Read More:

  • How Much Is Enough For Retirement
  • How to Grow Your 401k Account
  • People Who Retire Comfortably Avoid These Financial Advisor Mistakes
  • 5 Simple Warning Signs You’re Definitely Not Ready for Retirement

Speak with the Right Financial Advisor

You can talk to a financial advisor who can review your finances and help you reach your goals (whether it is making more money, paying off debt, investing, buying a house, planning to retire at 50, saving, etc). Find one who meets your needs with SmartAsset’s free financial advisor matching service. You answer a few questions and they match you with up to three financial advisors in your area. So, if you want help developing a plan to reach your financial goals, get started now.

The post How To Retire At 50: 10 Easy Steps To Consider appeared first on GrowthRapidly.

Source: growthrapidly.com

By February 3, 2021.    Financial Advisor, Food Budgets, Investing, Personal Finance, Retirement  , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,  

Why UGMA/UTMA Accounts Are the Perfect Holiday Gift

If you have a special child in your life, you may be wondering what to put under the tree this year. One long-lasting and truly meaningful way to show the child in your life that you care is by taking a few minutes to set up a UGMA/UTMA account and give them a leg up in life.

The earlier you open a UGMA or UTMA account for a child, the longer your initial gift has to grow, thanks to the magic of compound interest. For example, investing just $5 a day from birth at an 8% return could make that child a millionaire by the age of 50. By setting up a UGMA/UTMA account, you’re really giving your beneficiary a present that grows all year round. Now, that’s a gift they’re sure to remember!

What is a UGMA/UTMA account?

UGMA is an abbreviation for the Uniform Gifts to Minors Act. And UTMA stands for Uniform Transfers to Minors Act. Both UGMA and UTMA accounts are custodial accounts created for the benefit of a minor (or beneficiary).

The money in a UGMA/UTMA account can be used for educational expenses (like college tuition), along with anything that benefits the child – including housing, transportation, technology, and more. On the other hand, 529 plans can only be used for qualified educational expenses, like summer camps, school uniforms, or private school tuition and fees.

 

It’s important to keep in mind that you cannot use UGMA/UTMA funds to provide the child with items that parents or guardians would be reasonably expected to provide, such as food, shelter, and clothing. Another important point is that when you set up a UGMA/UTMA account, the money is irrevocably transferred to the child, meaning it cannot be returned to the donor.

 

Tax advantages of a UGMA/UTMA account

The contributions you make to a UGMA/UTMA account are not tax-deductible in the year that you make the contribution, and they are subject to gift tax limits. The income that you receive each year from the UGMA/UTMA account does have special tax advantages when compared to income that you would get in a traditional investment account, making it a great tax-advantaged option for you to invest in the child you love.

 

Here’s how that works. In 2020, the first $1,100 of investment income earned in a UGMA/UTMA account may be claimed on the custodian’s’ tax return, tax free. The next $1,100 is then taxed at the child’s (usually much lower) tax rate. Any income in excess of those amounts must be claimed at the custodian’s regular tax rate.

A few things to be aware of with UGMA/UTMA accounts

While there’s no doubt that UGMA/UTMA accounts have several advantages and a place in your overall financial portfolio, there are a few things to consider before you open up a UGMA/UTMA account:

 

  • When the child reaches the age of majority (usually 18 or 21, depending on the specifics of the plan), the money is theirs, without restriction.
  • When the UGMA/UTMA funds are released, they are factored into the minor’s assets.
  • The value of these assets will factor into the minor’s financial aid calculations, and may play a big role in determining if they qualify for certain programs, such as SSDI and Medicaid.

Where you can open a UGMA/UTMA account

Many financial services companies and brokerages offer UGMA or UTMA accounts. One option is the Acorns Early program from Acorns. Acorns Early is a UGMA/UTMA account that is included with the Acorns Family plan, which costs $5 / month. Acorns Early takes 5 minutes to set up, and you can add multiple kids at no extra charge. The Acorns Family plan also includes  Acorns Invest, Later, and Spend so you can manage all of the family’s finances, from one easy app.

 

During a time where many of us are laying low this holiday season due to COVID-19, remember that presents don’t just need to be a material possession your loved one unwraps, and then often forgets about. Give the gift of lasting impact through a UGMA/UTMA account.

The post Why UGMA/UTMA Accounts Are the Perfect Holiday Gift appeared first on MintLife Blog.

Source: mint.intuit.com

By February 3, 2021.    First Time Home Buyers, Student Finances  , , , , , , , , , , , , , , , , , , , , ,  

80+ Best Side Job Ideas To Make Extra Money in 2021

Do you want to know, “What can I do as a side job?” 

Today, I have a list of over 80 possible side hustle ideas for 2021. With these side jobs, you can make extra money in 2021.

So, what is a side job? I say side job meaning something that you do on the side of your regular job.side job ideas for 2021

Side jobs are sometimes called side hustles, and the idea is that you put some of your extra time towards making more money. 

You can find side jobs online, side jobs from home, side jobs outside your home, and pretty much wherever else. There are many different options when it comes to finding side jobs for extra money.

Over the years, I have spent a lot of time making extra money through side hustle jobs.

In fact, I paid off my $38,000 student loan debt in just 7 months by side hustling. I did several of the things on the list that you are about to read through.

Learning how to find a side job changed my life in a crazy way — it helped me to stop living paycheck to paycheck, pay off my debt, and leave my day job to pursue my job as a full-time blogger.

And, this is why I talk about making extra money through a side job so much — because I believe that it can change your life for the better.

What I like so much about the ideas on this list is that there is something for everyone. There are really so many different options. While I have included over 80 different side job ideas, there are many, many more out there. You can find something to fit your lifestyle, interests, and the amount of time you have to dedicate towards earning more money.

Whether your goal is to pay off your debt, stop living paycheck to paycheck, start saving for retirement, plan an amazing vacation, or something else, finding a side hustle idea in 2021 can make that a reality.

Making extra money through a side job can help you:

  • Save up for a big purchase, such as for a down payment on a house
  • Pay off your student loan debt, credit card debt, or medical debt
  • Save for retirement and even retire early
  • Leave a job you don’t love to pursue something else
  • Diversify your income sources
  • Save for emergencies
  • And more!

What some people don’t realize about making extra money is that it doesn’t have to take all of your time. You can dedicate as much or as little time to it as you want. I started this blog on the side of my full-time job. It took a lot of work, but I was in control of when I worked. 

That’s one of the reasons I love blogging and many of these other side jobs. Many of them are very flexible and let you pick your schedule. Below you’ll find great options if you work full time, are a parent, are in school, etc.

Besides starting a successful side hustle, there are some great small ways to earn extra money. The point is, there are so many ways to make money on the side with a full-time job that there is no reason not to start now.

Related content on how to make extra money:

  • How To Start and Launch A Successful Money Making Blog FREE Course
  • 12 Work From Home Jobs That Can Earn You $1,000+ Each Month

Below are over 80 different side job ideas.

 

Find an online side job.

There are so many side jobs that can be found online these days. The internet has introduced more possibilities, many of which have extremely flexible schedules.

Working an online side job allows you to create your own business in your spare time or work remotely for a company. These are some of the flexible options for 2021.

For me, I love being able to work online as it allows me to have a flexible schedule, there is no commute, and I simply enjoy working from home more than working in an office.

Below are ways to work an online side job:

  • Create a money making blog – This is the first thing I recommend to anyone interested in learning how to make money with an online side job, and this is because it’s exactly what I did! I have a Free How To Start and Launch A Money-Making Blog Course that you can join, and it will help you start and launch a successful blog! 
  • Answer questions online – Course Hero is a website that helps high school and college students with course-specific questions. Please read How To Make $300+ Weekly Answering Questions With Course Hero to learn more.
  • Get paid to answer surveys – Answering surveys online won’t make you rich, but it is one of the easiest ways to earn extra money online. Even though it’s a small amount of money, you can put it towards your debt payoff or savings goals. Survey companies I recommend include American Consumer Opinion, Swagbucks, Survey Junkie, Branded Surveys, and Pinecone Research. These survey companies are free to join and free to use! You get paid to answer surveys and to test products. To receive the most survey opportunities, it’s best to sign up for as many survey sites as you can.
  • Join a focus group – You can get paid $50 to $100 per hour by joining a focus group with User Interviews.
  • Write an ebook – Writing your own eBook is a great way to earn extra money online, and there is probably something super helpful that you could write about (even if you think otherwise!). In fact, my friend Alyssa self-published her first book and has sold more than 13,000 copies. She is now earning a great passive income of over $200 a day from her book ($6,500 in one month alone!). Learn more at How Alyssa is making $200 a DAY in book sales passively.
  • Run Facebook advertising for local businesses – Bobby Hoyt, a former band teacher who now runs the successful website Millennial Money Man, started running Facebook ads for local businesses to help him pay off $40,000 in student loan debt in only 18 months. In our interview you can learn about how Bobby got started, why businesses want to run Facebook ads, and how easy it is to start this flexible side job.  Also, Bobby has free training on this too. His free email course (you can sign up here) will teach you how to start this business even if you’re brand new, how to find paying clients, and more. Read the full interview at How To Make $1,000 Extra In Your Spare Time With Facebook.
  • Edit content for others – Websites, books, courses, and more all need editors to help them improve the quality of their content. No matter how many times a person reads a piece of content, something will usually slip through. If you’re a grammar-nut, then this can be one of the best side jobs from home ideas.
  • Sell printables online – Creating printables on Etsy can be a great side hustle. Because you are creating PDF files, you can create and sell them an unlimited number of times. You can learn more at How I Make Money Selling Printables On Etsy.
  • Manage social media accounts for businesses – Being a social media manager can be a fun job for the right person. If you have social media skills and don’t mind spending more time on social media sites, then it might be something to look into. Learn more about How I Started a Pinterest Consulting Side Hustle and why it’s more than just sharing random content online.
  • Get paid to search online – Swagbucks allows me to earn Amazon gift cards with very little work. Swagbucks is just like using Google to do your online searches, except you get rewarded with points called SB for the things you do through their website. Then, when you have enough points called SB, you can redeem them for cash, gift cards, and more. You’ll receive a free $5 bonus just for signing up through my link!
  • Proofread for a living – In just one year, Caitlin made slightly over $43,000 as a freelance proofreader, while also going on several fun vacations. If you are looking for a new job, or just a new way to earn extra money on the side, this may be something to look into. Learn more at Make Money Proofreading By Becoming A Freelance Proofreader.
  • Help job seekers improve their resume – A few years ago, I interviewed a reader who ran a resume business. She showed me how others can earn money by helping people create the kind of resumes they need to land their next job. Because having a good resume is an important part of getting the job you want, this is an in-demand option. If you are constantly reviewing resumes for your friends because you’re so good at creating them, then you may want to turn your skills into a paying job!
  • Post on social media – If you have social media accounts, even just a personal Facebook account, it’s possible to earn extra money by posting small ads on your account. One popular company that I recommend is Izea.
  • Become a freelance writer – A freelance writer is someone who writes for a number of different clients, such as websites, blogs, magazines, and more. These writers don’t work for one specific company, rather they work for themselves and contract out their writing. Learn more at How I Earn $200,000+ Writing Online Content.
  • Moderate forums – Some online forums will pay you to moderate their message boards. If there is a forum you visit often, you might want to see if they are hiring.
  • Become a transcriptionist – Do you know what a transcriptionist does? They take audio files and turn them into a text format. You can learn more about what this side job takes and how it’s possible to earn extra money on the side as a transcriptionist at Make Money At Home By Becoming A Transcriptionist.
  • Become a scopist – A scopist is someone who works from home and edits legal documents. Yes, this is a skill that you can learn. You can find a free course to learn more about how to become a scopist by clicking here.
  • Become a virtual assistant – Virtual assistant tasks may include social media management, formatting and editing blog posts, scheduling appointments or travel, email management, and more. Basically, you get paid to do any task that needs to be done for someone’s business but doesn’t need to be done by them. You can read more about how Kayla is earning $10K per month working from home as a virtual assistant. 
  • Become a bookkeeper – Ben, founder of Bookkeeper Business Academy, explains how becoming a bookkeeper may be a possibility for you. Ben helps people start and grow their own online bookkeeping business with his online bookkeeping course. And, guess what? You don’t have to be an accountant or have any previous experience! You can read more about how becoming a bookkeeper at Make Money At Home By Becoming A Bookkeeper.
  • Create an online store – Did you know that you can create your own online store to earn extra money? Jenn, a reader of mine, started her online business a little over four years ago and since then she has developed and grown three successful online ecommerce stores earning an average of $19,000 per month. Learn more at How Jenn Makes Over $10,000 A Month With Her Online Store In Less Than 10 Hours Per Week.
  • Become a Google Rater – This is when you help Google improve the quality of their search engine results. You can learn more about this at Help Google Better The Internet And Make $1,000+ A Month From Home.
  • Build a course and teach others what you know – Before you think that you have nothing to teach, I want to tell you that you most likely do! Online courses are extremely popular right now, and you don’t need to have a blog in order to be successful with an online course. I use Teachable for my online course platform, and I highly recommend it. Here’s How I’ve Made Over $1,000,000 From My First Course Without a Big Launch.
  • Podcast editing – Podcasting has grown a lot in the past few years, and it’s estimated that there are now over 850,000 podcasts. Podcasters need help editing their audio and adding music, so if you have audio editing skills, this could be a fun side job. Listing your service on Fiverr could be a great way to find clients who need your service. Learn more at How I Make $1,500 A Month As A Podcast Virtual Assistant.
  • Teach English online to kids – Did you know that you may be able to make money from home by teaching English online to children? VIPKID is a company that allows you to work from home, create your own schedule, and earn $18-21 per hour (many teachers are earning over $1,000 per month) all while teaching English online. You don’t need a teaching degree, but you do need to have a four year degree in something. This is a great option for anyone who has a passion for teaching and looking for ways to earn extra money online. I recommend VIPKID and Education First.

 

What can I do as a side job?

Build a side business (or even a full-time business!).

If you’re looking for a side job, one possibility is to create a side business for yourself.

The ones you just read about above are online side jobs, but many of the ones in this section require in-person work. Not everyone wants to work online, and these side jobs will get you outside of the house and earning money. 

For me, my side business of creating a blog actually turned into a full-time business for myself. And, I am so happy that I made that choice!

Here are some side business ideas:

  • Pick up garbage – This might not be the most exciting way to make extra income, but did you know that you can get paid $30- $50 an hour to pick up trash in your local area? Please read Get Paid $30 – $50 Per Hour To Pick Up Trash to hear more about this side hustle idea.
  • Sell on Amazon – If you want to learn one of the many real ways to make money from home, then you may want to start an Amazon FBA business! Jessica Larrew, of The Selling Family, explains how selling on Amazon may be a possibility for you. She is a friend of mine, and I am blown away by her success! In the first year that Jessica’s family ran their Amazon FBA business together, working less than 20 hours a week total, they made over six figures profit! If you are looking for a new job, or even just a side hustle, this may be something that you want to look into. Learn more at How To Work From Home Selling On Amazon FBA.
  • Maintain and clean yards – You can make money by mowing lawns, killing/removing weeds, cleaning gutters, raking leaves, and so on. Because every season offers the opportunity for some type of yard maintenance, this can turn into a year round job.
  • House sit for others – House sitting is becoming more and more popular these days, and there are many websites out there for house sitting. You may be paid to watch someone’s house, take in the mail, water plants, and so on. House sitting doesn’t just have to be in your own town either. It can be something you do while taking amazing vacations. You can read more about it at How We Became Professional House Sitters In Europe & Saved Over $5,000.
  • Rent out your RV – Many RVs sit unused in storage lots, driveways, and backyards, so why not try to make a little extra money while you’re not using your RV? Learn more at How To Make Extra Money By Renting Out Your RV.
  • Share your car – Did you know that you can share your car with travelers on a daily, weekly, or even on a long-term basis and make extra money? I’m talking about listing your car and making money on Turo, which is like Airbnb for cars. It takes as little as 10 minutes to list your car, and you can earn up to 90% of the trip price.
  • Walk dogs and/or pet sit for extra money – If you love animals, then this is one of the best ways to make money on the side! Walking dogs and pet sitting can be a lot of fun because who doesn’t love animals!? With this side hustle, you may be going over to your client’s home to check in a few times a day, you may be staying at their house, or the animals may be staying with you. Rover is a great company to sign up for if you’re interested in becoming a dog walker and pet sitter. 
  • Groom pets – This is yet another animal related side business, and it could be a good one for you. With a mobile pet grooming business you will go directly to the pets rather than needing to find and set up a permanent business location. 
  • Become a local tour guide – Do you love showing off your city to friends and out-of-town guests? If so, you can earn extra money as a tour guide in your city. You can create any kind of tour you like — touring restaurants or bars, historical tours, bike tours, and more. Tours By Locals is a great site to connect with if you’re interested in learning more.
  • Become a landlord – Whether you rent out a room in your home or start buying up properties to invest in and then rent out, this could be one of the more lucrative ways to earn extra money on the side. Check out my blog post to learn more: How This 34 Year Old Owns 7 Rental Homes.
  • Shovel snow – We no longer need to have our snow shoveled, but it was definitely something we didn’t enjoy doing while we were living in St. Louis. If you get snow where you live, then you may be able to knock on your neighbors’ doors to see if they would like their driveways and sidewalks shoveled. If you want to go a little further, you could even invest in a plow and market your services.
  • Become a Tasker – TaskRabbit is an online platform where people list odd jobs that they need done, like assembling furniture, running errands, or cleaning. You can find one-off jobs in your area using TaskRabbit to earn extra money.
  • Babysit and/or nanny children – When I was just 14, I was making $10 an hour babysitting for a neighbor. I babysat 40 hours a week and it was a great way to make extra money! If you have any special skills or can provide extra work, such as cleaning up around the house, teaching the child how to speak another language, picking up the child after activities, and so on, you will most likely be able to charge more than $10 an hour.
  • Become an Uber or Lyft driver – Spending your spare time driving others around can be a great money maker, and many rideshare drivers earn $15-$20/hour. Read more about this in my post How To Become An Uber Or Lyft Driver.
  • Help people fix things around their home – If you are a handy person, this could be a great option for you. Word of mouth is big when it comes to finding clients, but you can also post your services on Craigslist, post flyers to bulletin boards around your town, and more.
  • Clean homes – Cleaning is something that many people dread. If you are good at cleaning and enjoy it, then you may be able to find clients who want you to come to their home to clean. This can pay around $20 an hour or more in some areas. Because cleaning for others is such a personal job, you will often find loyal customers who want you to come back over and over again.
  • Help people move – Moving is another task that many people dislike. Movers can earn a broad range when it comes to hourly pay, but it’s usually somewhere around $25-$50 an hour if you run your own business.
  • Become a photographer – Do you love photography? Then this is a great way to earn extra money while doing something you love to do. Learn more at How To Make $25,000 – $45,000 A Year As A New Photographer.
  • Write and self-publish romance novels – This definitely isn’t something that most people will think about, but it is a growing and profitable industry. You can learn how Yuwanda Black, a freelance writer, started writing and self-publishing short romance novels in this interview. She earned over $3,000 in one month alone!

 

Find a part-time job.

Online side jobs are becoming more and more popular, but you can still make good money with more traditional part-time jobs.

I know many people who have part-time side jobs, and they love that they are low-commitment ways to make extra money. 

You can find a part-time side job on sites such as Snagajob, Craigslist (yes, I’ve found a legitimate job through there before), and so on.

  • Deliver items through Postmate – Postmates is a service that lets people use their phones to order food, drinks, and groceries. Delivering those items is where you come in! Because the holidays are a busy time, many people are looking to make their life easier with delivery services like Postmates. And, you can deliver for Postmates with your car, scooter, motorcycle, or bicycle. How much can you make with Postmates? Postmates says that you can earn up to $25 an hour with their platform. Click here to check out Postmates and sign up.
  • Deliver RVs to dealerships – RVs are huge, and the majority of the time they can’t be transported by semi-trucks because of their size. Due to that, someone has to drive them from the manufacturer to the RV dealership. We met a couple who did this for a living, and they both loved what they did. They were able to travel a lot, earn a living, and got to see new RVs all the time. To make extra income doing this, you can contact transport companies in your area, RV manufacturers, RV dealerships, and more.
  • Find a part-time seasonal job – If you have a job that gives you the summers off (or whatever season), then finding a part-time seasonal job could be a good way to earn extra money during your time off. Employers like Starbucks, REI, and Costco even offer part-time jobs with benefits, which adds even more value to these side jobs. 
  • Bartend – With bartending experience, you may be able to find a bartending job at a bar, restaurant, catering company, and more. Since the hours for this are usually later at night and on the weekends, it could easily fit with your regular 9-5 job schedule.
  • Work at a restaurant – You could be a host, wait tables, bus tables, and so on. You may even get to eat delicious food and receive a discount when dining out at the restaurant you work for.
  • Substitute teach – I know quite a few people who substitute teach both part-time and full-time and love it. Sometimes the schedule can be tricky as you may be called at the last moment, but other times you may secure a long-term position. In some places, substitute teaching can pay around $100 per day.
  • Teach during summer school – If you are a teacher, then spending part of your summer teaching summer school is a great way to make extra money. My brother-in-law is a teacher and he earns around $3,000 for three 4-day weeks of work, and they aren’t even full days. He and his wife use that money to fund their summer vacations.  
  • Work at a hotel, motel, hostel, resort, etc. – There are many jobs in the hospitality industry. If you love meeting new people who are visiting your area, this can be a great way to earn extra money. When we were RVing, we met several RVers who make money at RV parks and campgrounds while they are full-time RVers.
  • Work at a retail store – I worked in retail for over five years and made lifelong friends in the process. The income is okay, but you usually receive a good discount when working in retail.
  • Deliver pizza – Pizza delivery drivers make $15/hour or more delivering pizza in their spare time. It might not be the most glamorous side job, but it’s a good way to make extra money.
  • Lifeguard – You could be a lifeguard at a community pool, a private pool, a water park, and so on. You don’t have to be a teenager to be a lifeguard either!
  • Work as a referee – Did you know that soccer refs for local community centers can make around $25/hour or more? You’ll have to know the rules to work as a referee, and you can learn more by contacting the community or sports center in your area.
  • Deliver newspapers – Delivering newspapers can be a good way to make some side money. You may have to wake up early, but maybe those are the hours you are looking for.
  • Run errands for others – Being someone’s assistant can be an interesting way to earn extra money. You may get paid to do someone else’s laundry, clean their home, pick up their food, answer phone calls, and more.

 

Sell items to make extra money.

There are so many different types of items that you can sell to make extra money.

You may be able to find things around your home that you can sell, or you may even search for items online or in-person to buy and resell for a profit.

  • Flip items – Melissa’s family was able to make $42,875 in one year through buying and flipping items for sale, and they were only working about 10-20 hours per week. Learn more in How Melissa Made $40,000 In One Year Flipping Items.
  • Sell/donate eggs and sperm – Yup, both of these can be sold for a price, and you can definitely earn extra money by doing so. Depending on your characteristics, women can earn anywhere from a few thousand dollars to $10,000 or more for their eggs. Egg donors are typically under the age of 30 and healthy. African American women and Asian American women usually make the most money as there is a larger need for their eggs. This is not easy money, though. There are a number of doctor visits, and extracting the eggs requires a medical procedure. For sperm, the average donation pays anywhere from $50 to $100, and some men donate as often as 2-3 times each week.
  • Sell items on eBay – Whether it’s clothes, a car, electronics, and so on, eBay is a great place to sell all sorts of things online. eBay also has a worldwide reach, which can be great if the market in your area isn’t large enough for what you specialize in. I know many people who earn extra money selling on eBay, and it’s very easy to get started.
  • Sell items on Craigslist – Craigslist has gotten a bad rap in the past, but I have always had great success when I have bought or sold things through this platform. Craigslist can be a great way to sell your items, while often earning a higher value for them too. However, be safe, because you will have to meet with strangers to complete the transactions.
  • Sell things on Facebook Marketplace – Facebook is a great place to sell your items to earn extra money. You can find buyers in your area, but for larger items, like cars and furniture, buyers are often willing to travel. Plus, because you are probably already on Facebook, this is one of the easiest ways to sell your stuff, and it’s free.
  • Sell on Poshmark – Poshmark is one of the most popular places online for people to buy and sell gently used clothing, shoes, and more. You should always be honest in your listings, take great photos, and ship items out as soon as they sell.
  • Sell to second hand stores – There are many second hand stores out there that will take your clothing and shoes. Stores like Plato’s Closet, Hut No. 8, and Buffalo Exchange will pay you upfront for on-trend young adult clothing, and they take all of the legwork out of selling items, which is really helpful. There are also second hand stores for designer items, women’s clothing, children’s items, and more. Some pay upfront, whereas others may not pay you until after the item has sold.
  • Sell your gently used sports gear – Play It Again Sports is one of several second hand stores that buys and resells sports equipment and workout gear. These kinds of items also sell well on eBay, Craigslist, and Facebook Marketplace.
  • Sell on Etsy – Etsy is a great place to sell handmade items, vintage finds, and craft supplies. If you are a crafty person, definitely check out this website if you are looking for ways to earn extra money.
  • Sell your gift cards – If you have gift cards that you aren’t going to use, why not sell them to earn extra money? There are many, many websites out there that will pay you cash for your gift cards. Gift Card Granny, Cardpool, and Raise are just a few. 
  • Sell items through a garage sale – A garage sale can be an easy way to make extra money because people come straight to your house. The only downside is that you usually don’t make as much for your items as you would if you were to sell them on sites such as eBay, Craigslist, or Facebook Marketplace.
  • Sell your old books – Back when I was in college, I sold my textbooks as soon as the class was over. This helped me regain the amount that I originally paid for the book. You can sell your books online, and most university bookstores have a buyback option.
  • Flip cars, mopeds, or scooters – In addition to teaching summer school, one of the ways my brother-in-law makes extra money is from buying vintage moped and scooters, fixing them up, and selling them for a profit on online marketplaces, like Facebook or Craigslist. In one flip, he made more than $900 profit. This is a very specific skill, but worth looking into if you know what you’re doing. 

 

 

Make extra income at the day job you already have.

If you’re already employed and not interested in starting a side hustle, by starting an online business, or taking on a part-time job, you can still learn how to earn more at your current job.

  • Work overtime – One way to earn extra money at your job is to see if your company will allow you to work overtime. In many cases, overtime is welcomed, and you can earn a decent amount of money by doing so. Plus, what’s an extra hour or two when you’re already there?
  • Ask for a raise – Asking for a raise may be the best way to earn extra money at your current job, as the work is the same and you most likely won’t be adding additional hours to your work week. Many people never ask for a raise, which means you might be leaving money on the table. Over numerous years, this can add up to a significant amount of income! If you’ve just successfully completed a big project or taken on new responsibilities, then it might be time to ask for a raise.
  • Get a promotion – If a raise is not possible, then you may want to try for a promotion that comes with a pay bump. Sometimes companies can only pay you so much for the job you currently have, but perhaps a promotion with different and/or additional job duties, a possible move, etc. may result in an increase in pay.
  • Earn bonuses – Depending on the industry and the company you work at, you may be able to earn bonuses. Bonuses often come in large chunks which makes them ideal for paying off large amounts of credit card or student loan debt. Or, you could even invest your bonus to earn even more in the long run. 

 

Miscellaneous ways to make extra money in 2021.

Of course, I can’t include every single side job in this blog post, as there are way too many options to list in one place. But, here are some more that didn’t fit one of the categories above.

  • Cuddle with strangers – Did you know that you can get paid to cuddle with people that you don’t even know? Surprisingly, there are many cuddling companies out there, and this option seems to be growing more and more each year. Some people even make a few hundred dollars a day by cuddling with others. 
  • Scoop poop – Okay, like picking up trash, this isn’t going to be the most glamorous job, but someone has to do it. 
  • Place advertisements on your car, home, or even on your body – Yes, there are companies out there that will pay you to place an advertisement on your car, home, or even your body (such as a tattoo on your forehead). If there’s space on your car or fence that you don’t mind placing an ad on, then look into this! Carvertise is one company I recommend checking out if you’re interested in advertising on your car — they pay around $100/month.
  • Help crew a sailboat delivery – Because you need sailing experience to do this, this won’t be for everyone. But, if you know your way around a boat, then you may be able to earn extra money delivering sailboats. Wes actually helped out on a couple of sailboat deliveries in the past few years, and he traveled to many amazing places along the way, such as visiting several European countries. 
  • Be an extra in a movie or TV show – If there’s a movie or TV show that is being filmed near you, you can apply to be an extra to make some money on the side. You won’t have to do much, and it could be a lot of fun, especially if you are able to meet someone famous!
  • Start investing with spare change – Investing through platforms like Acorns makes investing even more approachable. You simply link your bank or credit cards and Acorns rounds every transaction up to the next dollar. Read more at How To Start Investing With Little Money.
  • Sell breast milk – Only recently did I realize that some women do this as a side job. If you are breastfeeding, then you may be able to sell your breast milk to make extra money. Breast milk often goes for $1 to $2.50 per ounce, and sometimes it sells for as much as $4 per ounce. There are many people who are looking to buy breast milk, not just mothers. 
  • Receive bonuses and rewards for using a credit card – There are many credit cards out there that will give you cash back just for using them. If you are good with credit cards (please skip this if you are not), this is something to look into as you can make money without having to do much. Read more at How To Take A 10 Day Trip To Hawaii For $22.40 – Flights & Accommodations Included.
  • Take part in medical research studies – Medical studies allow you to help with the research and study of diseases, medicines, treatments, and more. To find paid medical research studies, I recommend checking out your local Craigslist, contacting universities in your area, and seeing if there are any medical testing companies around you. Most cities have these options, and you just have to look for them.
  • Enter contests and giveaways – There’s no guarantee that you will win anything when entering contests, but if you get lucky, this would be a really fun way to earn extra money. You may win cash, gift cards, vacations, electronics, and more. The key here is to enter as many as you can. And, many stores and restaurants post drawings and giveaways at the bottom of your receipt.
  • Mystery shop – Yes, you can actually get paid to shop at stores and eat at restaurants. A few years ago, I mystery shopped a lot to earn extra money. I made anywhere from $150 to $200 a month mystery shopping and received free meals, makeup, and more as a mystery shopper. I used Bestmark for mystery shopping, so I know that they are a 100% legitimate company. Learn more at Want To Make An Extra $100 A Month? Learn How To Become A Mystery Shopper.
  • Use InboxDollars – InboxDollars is an online rewards website I recommend if you want to find ways to earn extra money on the side. You can earn cash by taking surveys, playing games, shopping online, searching the web, redeeming grocery coupons, and more. Also, by signing up through my link, you will receive $5.00 for free!
  • Travel the world and be an au pair – In 2016, my sister was an au pair in Italy. It was an interesting experience, and she shares how you can become an au pair and travel the world in her blog post How To Become An Au Pair And Travel The World.
  • Open a high yield savings account. Savings accounts at brick and mortar banks are known for having really low interest rates. That’s because they have a much higher overhead — paying for the building, paying the tellers, etc. Betterment Everyday is an online option, which means they have lower costs, then passing the savings on to you. Simply click here and sign up.

 

How do I make an extra $1000 a month?

How do I make an extra $1000 a month?

If earning $1,000 a month or more is your financial goal, there are lots of different approaches. 

You can run Facebook ads for small businesses, deliver food for Postmates, start a freelancing side job, and more. Or, you can combine several smaller side jobs.

If you are willing to put in the work, starting a blog is something that can help you earn $1,000 a month or more. It takes time to grow your blog, but with time and effort, you can well exceed $1,000/month in blogging income.

 

How can I make money on the side?

There are so many different ways to make money on the side in 2021, and I just gave over 80 different ideas. 

Look through the options above and make a list of the ones that interest you. Think about what skills you have, how much time you want to dedicate to your side job, and how to get started with each option.

There are honestly options for anyone, no matter how much time you have to spare. And remember, even just a $100 extra a month can begin to make a dent in your debt, can be invested for your future, or help you stop living paycheck to paycheck.

 

Have questions about finding a side job?

If you have any questions about finding a side job, I recommend heading to 10 Of The Most Common Questions About Having A Side Job.

Some of the questions I answer in that blog post include:

  • How do you find a side hustle?
  • How much money can I make from a side job?
  • How do you get paid with a side job?
  • How can I find time for my side job idea?
  • How can I balance my day job, side job, and life?!
  • How can I grow my side income? How can I find clients?
  • What is a good side job?
  • Should I tell my boss about my side hustle?
  • Do I have to pay taxes on a side job?
  • How do I avoid side job scams?

Out of the side jobs listed above, which one interests you the most? Which side job would you like to learn more about?

The post 80+ Best Side Job Ideas To Make Extra Money in 2021 appeared first on Making Sense Of Cents.

Source: makingsenseofcents.com

By February 3, 2021.    Extra Income, Liefstyle  , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,  

What Is Austerity?

What Is Austerity?

Austerity policies are nothing new. But talk about them in the news has recently escalated. In response to its ongoing debt crisis, the Greek government is preparing to implement austerity measures aimed at helping the country regain its financial footing. If you didn’t major in economics or you have no clue what austerity means, read on to find out how this fiscal program works.

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Austerity: A Definition

Trust us, austerity isn’t as complicated as it sounds. Austerity is a type of economic policy that governments use to deal with budget deficits. A country faces a deficit whenever it’s using more money than it’s earning from tax dollars.

By taking on an austerity package, a government hopes to reign in its spending, improve the status of its economy and avoid defaulting on its unpaid debt. Governments usually take on austerity measures in order to appease their creditors. In exchange, these lenders agree to bail out countries and allow them to borrow more money.

If you look up the word austere in the dictionary, you’ll see that it means severe, grave, hard, solemn and serious. Indeed, austerity is nothing to joke about.

Austerity Measures

What Is Austerity?

Austerity plans normally involve increases in different taxes, (property taxes, income taxes, etc.) budget cuts or a push to incorporate both. Government workers could lose their jobs or see their wages and benefits either decline or become stagnant. Hiking up interest rates, adding travel bans and keeping prices at a fixed level could be other strategies put in place to reduce spending.

Naturally, austerity measures typically aren’t viewed in the best light because they mean that there might be fewer government programs available to the public. Aid for veterans and low-income families, healthcare coverage and pensions are some of the benefits that normally take a hit when a country’s using an austerity package. Government services that aren’t eliminated might not be as comprehensive or as beneficial as they once were.

As you can see, in an austere environment, conditions are tighter overall. Historically, austerity has been implemented in the US during tough times including World War I, World War II and the Great Recession of 2008.

Greece’s new austerity package – which government lawmakers finally accepted in July 2015 – will feature less government funding, higher taxes and cuts to pension plans. As a result of this deal, the country was allowed to begin talks with its creditors about a third bailout.

Related Article: All About the Greek Debt Crisis

The Problems With Government Austerity 

Experts on the economy tend to go back and forth about how effective austerity can be. Some believe that instead of turning to austerity, the government should pump out more money and borrow as much as possible if an economy is on the rocks.

From a political standpoint, austerity is often controversial and results in riots and demonstrations. Anti-austerity protests erupted in Greece, where quite a few folks say that past austerity programs have only made social and economic conditions worse.

Beyond slowing down the economy, an austerity bill can cause a country to remain in its debt crisis, particularly if it’s in the midst of a recession. As fiscal austerity decreases spending, GDP can go down while unemployment goes up. Consumers can get nervous and stop spending and investing their own money.

In short, austerity policies can make life even more difficult for people who are already struggling. That’s why governments tend to turn to them as a last resort if other strategies aren’t working.

Why Austerity Might Not Be So Bad

What Is Austerity?

Notable European creditors have argued that austerity can be beneficial to a country’s long-term economic state. For instance, the International Monetary Fund (IMF) has previously reported that austerity has done more damage than anticipated. But the European Central Bank released a paper saying that austerity has been helpful, at least for some of the weaker eurozone countries.

In fact, austerity has helped strengthen the economies in European countries like Latvia and Iceland. Although Spain’s unemployment remains high, its economy is in better shape overall. Ireland has made considerable progress as well toward rebuilding its economy.

Proponents of austerity policies say that they can make investors feel more optimistic when a country is being run more responsibly. Austerity has the potential to bring a shrinking economy back to life as everyday citizens invest in the private sector instead of relying on support from the federal government.

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The US used austerity measures between 2010 and 2014. Not only were our policies harsher than those employed by the governments in the UK and other European nations, but our economy fared better than theirs.

The Takeaway

The point of austerity is to tighten the government’s belt, bring a country’s debt back down to a more manageable level and stimulate an economy that has stopped growing. Countries generally try to meet these goals by cutting spending and raising taxes.

The debate over whether austerity works continues but one common theme has emerged. Timing matters. Some critics suggest that cutting too much too quickly during a recession can be painful. When introduced more slowly, however, (or when the economy is doing very well,) austerity measures can turn things around.

Photo credit: Â©iStock.com/Eltoddo, ©iStock.com/DNY59, ©iStock.com/Peter Booth

The post What Is Austerity? appeared first on SmartAsset Blog.

Source: smartasset.com

By February 3, 2021.    Debt, Estate Planning  , , , , , , , , , , , , , , , , , ,  

Why It’s Harder to Get Credit When You’re Self-Employed

Around 6.1% of employed Americans worked for themselves in 2019, yet the ranks of the self-employed might increase among certain professions more than others. By 2026, the U.S. Bureau of Labor Statistics projects that self-employment will rise by nearly 8%. 

Some self-employed professionals experience high pay in addition to increased flexibility. Dentists, for example, are commonly self-employed, yet they earned a median annual wage of $159,200 in 2019. Conversely, appraisers and assessors of real estate, another career where self-employment is common, earned a median annual wage of $57,010 in 2019.

Despite high pay and job security in some industries, there’s one area where self-employed workers can struggle — qualifying for credit. When you work for yourself, you might have to jump through additional hoops and provide a longer work history to get approved for a mortgage, take out a car loan, or qualify for another line of credit you need.

Why Being Self-Employed Matters to Creditors

Here’s the good news: Being self-employed doesn’t directly affect your credit score. Some lenders, however, might be leery about extending credit to self-employed applicants, particularly if you’ve been self-employed for a short time. 

When applying for a mortgage or another type of loan, lenders consider the following criteria:

  • Your income
  • Debt-to-income ratio
  • Credit score
  • Assets
  • Employment status

Generally speaking, lenders will confirm your income by looking at pay stubs and tax returns you submit. They can check your credit score with the credit bureaus by placing a hard inquiry on your credit report, and can confirm your debt-to-income ratio by comparing your income to the debt you currently owe. Lenders can also check to see what assets you have, either by receiving copies of your bank statements or other proof of assets. 

The final factor — your employment status — can be more difficult for lenders to gauge if you’re self-employed, and managing multiple clients or jobs. After all, bringing in unpredictable streams of income from multiple sources is considerably different than earning a single paycheck from one employer who pays you a salary or a set hourly rate. If your income fluctuates or your self-employment income is seasonal, this might be considered less stable and slightly risky for lenders.

That said, being honest about your employment and other information when you apply for a loan will work out better for you overall. Most lenders will ask the status of your employment in your loan application; however, your self-employed status could already be listed with the credit bureaus. Either way, being dishonest on a credit application is a surefire way to make sure you’re denied.

Extra Steps to Get Approved for Self-Employed Workers

When you apply for a mortgage and you’re self-employed, you typically have to provide more proof of a reliable income source than the average person. Lenders are looking for proof of income stability, the location and nature of your work, the strength of your business, and the long-term viability of your business. 

To prove your self-employed status won’t hurt your ability to repay your loan, you’ll have to supply the following additional information: 

  • Two years of personal tax returns
  • Two years of business tax returns
  • Documentation of your self-employed status, including a client list if asked
  • Documentation of your business status, including business insurance or a business license

Applying for another line of credit, like a credit card or a car loan, is considerably less intensive than applying for a mortgage — this is true whether you’re self-employed or not. 

Most other types of credit require you to fill out a loan application that includes your personal information, your Social Security number, information on other debt you have like a housing payment, and details on your employment status. If your credit score and income is high enough, you might get approved for other types of credit without jumping through any additional hoops.

10 Ways the Self-Employed Can Get Credit

If you work for yourself and want to make sure you qualify for the credit you need, there are plenty of steps you can take to set yourself up for success. Consider making the following moves right away.

1. Know Where Your Credit Stands

You can’t work on your credit if you don’t even know where you stand. To start the process, you should absolutely check your credit score to see whether it needs work. Fortunately, there are a few ways to check your FICO credit score online and for free. 

2. Apply With a Cosigner

If your credit score or income are insufficient to qualify for credit on your own, you can also apply for a loan with a cosigner. With a cosigner, you get the benefit of relying on their strong credit score and positive credit history to boost your chances of approval. If you choose this option, however, keep in mind that your cosigner is jointly responsible for repaying the loan, if you default. 

3. Go Straight to Your Local Bank or Credit Union

If you have a long-standing relationship with a credit union or a local bank, it already has a general understanding of how you manage money. With this trust established, it might be willing to extend you a line of credit when other lenders won’t. 

This is especially true if you’ve had a deposit account relationship with the institution for several years at minimum. Either way, it’s always a good idea to check with your existing bank or credit union when applying for a mortgage, a car loan, or another line of credit. 

4. Lower Your Debt-to-Income Ratio

Debt-to-income (DTI) ratio is an important factor lenders consider when you apply for a mortgage or another type of loan. This factor represents the amount of debt you have compared to your income, and it’s represented as a percentage.

If you have a gross income of $6,000 per month and you have fixed expenses of $3,000 per month, for example, then your DTI ratio is 50%.

A DTI ratio that’s too high might make it difficult to qualify for a mortgage or another line of credit when you’re self-employed. For mortgage qualifications, most lenders prefer to loan money to consumers with a DTI ratio of 43% or lower. 

5. Check Your Credit Report for Errors

To keep your credit in the best shape possible, check your credit reports, regularly. You can request your credit reports from all three credit bureaus once every 12 months, for free, at AnnualCreditReport.com. 

If you find errors on your credit report, take steps to dispute them right away. Correcting errors on your report can give your score the noticeable boost it needs. 

Related: How to Dispute Errors On Your Credit Report

6. Wait Until You’ve Built Self-Employed Income

You typically need two years of tax returns as a self-employed person to qualify for a mortgage, and you might not be able to qualify at all until you reach this threshold. For other types of credit, it can definitely help to wait until you’ve earned self-employment income for at least six months before you apply. 

7. Separate Business and Personal Funds

Keeping personal and business funds separate is helpful when filing your taxes, but it can also help you lessen your liability for certain debt. 

For example, let’s say that you have a large amount of personal debt. If your business is structured as a corporation or LLC and you need a business loan, separating your business funds from your personal funds might make your loan application look more favorable to lenders.

As a separate issue, start building your business credit score, which is separate from your personal credit score, early on. Setting up business bank accounts and signing up for a business credit card can help you manage both buckets of your money, separately. 

8. Grow Your Savings Fund

Having more liquid assets is a good sign from a lender’s perspective, so strive to build up your savings account and your investments. For example, open a high-yield savings account and save three to six months of expenses as an emergency fund. 

You can also open a brokerage account and start investing on a regular basis. Either strategy will help you build up your assets, which shows lenders you have a better chance of repaying your loan despite an irregular income. 

9. Provide a Larger Down Payment

Some lenders have tightened up mortgage qualification requirements, and some are even requiring a 20% down payment for home loans. You’ll also have a better chance to secure an auto loan with the best rates and terms with more money down, especially for new cars that depreciate rapidly.

Aim for 20% down on a home or a car that you’re buying. As a bonus, having a 20% down payment for your home purchase helps you avoid paying private mortgage insurance.

10. Get a Secured Loan or Credit Card

Don’t forget the steps you can take to build credit now, if your credit profile is thin or you’ve made mistakes in the past. One way to do this is applying for a secured credit card or a secured loan, both of which require collateral for you to get started.

The point of a secured credit card or loan is getting the chance to build your credit score and prove your creditworthiness as a self-employed worker, when you can’t get approved for unsecured credit. After making sufficient on-time payments toward the secured card or loan, your credit score will increase, you can upgrade to an unsecured alternative and get your deposit or collateral back.

The Bottom Line

If you’re self-employed and worried that your work status will hurt your chances at qualifying for credit, you shouldn’t be. Instead, focus your time and energy on creating a reliable self-employment income stream and building your credit score.

Once your business is established and you’ve been self-employed for several years, your work status won’t matter as heavily. Keep your income high, your DTI low, and a positive credit record, you’ll have a better chance of getting approved for credit. 

The post Why It’s Harder to Get Credit When You’re Self-Employed appeared first on Good Financial Cents®.

Source: goodfinancialcents.com

By February 3, 2021.    DIY  , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,  

Accredited Asset Management Specialist (AAMS)

What is the AAMS certification?New financial advisors need something to help them stand out. Consequently, the AAMS does just that. Designed for newcomers to the financial advice business, the AAMS trains advisors to identify investment opportunities as well as help clients with other financial goals. It also gives more experienced advisors a fast and simple way to learn more about asset management and improve their credentials. Here’s how it works.

AAMS Defined

An Accredited Asset Management Specialist (AAMS) can advise clients on college savings, taxes, and retirement savings. The course and tests for this certification are designed to ensure advisors can assist clients with their complete financial needs. It emphasizes evaluating the client’s assets and making appropriate recommendations.

The AAMS certification is granted by the College for Financial Planning, a unit of the Kaplan Company. The college oversees a large number of financial certification programs, including the Certified Financial Planner designation, one of the most valued certifications in the field.

AAMS Certification Requirements

What is the AAMS certification?

To receive an AAMS, students first have to complete a 10-module education program provided by the College for Financial Planning. Then they have to pass an examination. Finally, they must agree to abide by a code of ethics and promise to continue their education.

The courses are online and can be delivered in self-study or instructor-led formats. Courses are open-enrollment, therefore students can begin at any time without waiting for the next session.  The 10 modules cover the following material:

1.:The Asset Management Process

2. Risk, Return & Investment Performance

3. Asset Allocation & Selection

4. Investment Strategies

5. Taxation of Investments

6. Investing for Retirement

7. Deferred Compensation and Other Benefit Plans

8. Insurance Products for Investment Clients

9. Estate Planning for Investment Clients

10. Fiduciary, Ethical, and Regulatory Issues for Advisors

The College of Financial Planning provides everything necessary to study for and complete the modules and take the test. Students have access to the study materials and tests through an online portal.

Streaming video lectures, audio files, and interactive quizzes also can be found through the college’s site. Meanwhile, students can access live classes online and contact professors with questions and issues.

The AAMS Test

To get the AAMS certification, students have to pass just one test. However, they have to make their first attempt at the test within six months of enrollment and pass it within a year.

The fee for the first attempt at taking the test is included in the course tuition. There are no prerequisites for signing up to take the AAMS course.

Time and Money Requirement

Tuition for the AAMS courses is $1,300. This includes the fee for the first attempt at passing the certification exam. It also includes all needed course materials. Each additional attempt costs $100.

Students employed with certain financial services firms may be able to get tuition discounts. The college may also provide scholarships.

The College for Financial Planning recommends students plan to spend 80 hours to 100 hours on the course. Since the course is self-study, this amount of time is flexible.

To maintain AAMS certification students have to commit to completing 16 continuing education credits every two years. Also, continuing education has to cover one or more of the topics covered in the AAMS coursework.

AAMS certificate holders also have to agree to follow a professional standard of conduct. As a result, they have to maintain integrity, objectivity, competency, confidentiality and professionalism in providing financial services.

AAMS Certificate Holder Jobs

AAMS certificates are generally earned by entry-level workers in the financial advice business. Consequently, AAMS holders are typically trainees. In some cases, they may provide support services to more experienced and highly credentialed advisors.

The AAMS designation does not confer any special powers or privileges. Instead, it’s an optional credential that students may obtain to advance their careers and enhance their knowledge of financial advice.

Comparable Certifications

What is the AAMS certification?

In addition to the AAMS, the College for Financial Planning offers an Accredited Wealth Manager Advisor (AWMA) certificate. This is a somewhat more advanced designation. As a result, it requires a course equivalent to three graduate level college credits and requires 90 hours to 135 hours to complete.

Chartered Mutual Fund Counselor (CMFC) is sponsored by the Investment Company Institute along with the College of Financial Planning. It is similar to the AAMS certificate except it focuses on mutual fund assets.

Accredited Financial Counselor (AFC) is a general personal finance advice certificate from the Association for Financial Counseling and Planning Education. First, it requires 1,000 hours of financial counseling experience. Secondly, it demands three letters of reference. Finally, applicants must both complete coursework and pass an exam.

Bottom Line

The AAMS designation is usually for newly minted financial advisors, but even experienced pros can use it to bulk up their credentials. The courses and tests associated with the AAMS teach advisors how to evaluate assets and make recommendations.

While this certification doesn’t give an advisor any real powers, it’s a sign that they can identify investment opportunities specific to their clients. Above all else, it can be a great relief to a client who has a child going to college or a retirement house on their wish list. As a result of obtaining an AAMS, and advisor can point them toward the right investments for their goals.

Investing Tips

  • If you’re looking to identify investment opportunities, consider using an AAMS as your advisor. Finding the right financial advisor that fits your needs doesn’t have to be hard. SmartAsset’s free tool matches you with financial advisors in your area in 5 minutes. If you’re ready to be matched with local advisors that will help you achieve your financial goals, get started now.
  • An AAMS can help you with college savings, taxes, and retirement savings if you know what your goals are. However, if you are unsure how much you want to invest, what your risk tolerance is, or how inflation and capital gains tax will affect your investment, SmartAsset’s investing guide can help you take the first steps.

Photo credit: ©iStock.com/SARINYAPINNGAM, ©iStock.com/fizkes, ©iStock.com/Suwanmanee99

The post Accredited Asset Management Specialist (AAMS) appeared first on SmartAsset Blog.

Source: smartasset.com

By February 2, 2021.    Credit Cards, Financial Advisor, Investing  , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,  

7 Budget Friendly Tips for a Room Makeover

Sometimes the need to redecorate a room doesn’t line up with when the budget allows for a full makeover. In those times, it’s good to have a few budget friendly ideas to spruce up the space. These seven tips are things that can be done even when funds are tight.

1 – Rearrange or Swap with Other Rooms

The most budget friendly thing you can do when redecorating is to look for inspiration from the other rooms in your home. Often times, especially in larger homes, there are pieces of furniture and other décor that could be moved from one room to another to make a free update to the space. If you are thinking about updating your master bedroom, consider using pieces from your office, the living room, and even the outside patio. Taking a piece from another room can provide just the change you are craving in the space you want to update.

2 – Paint Furniture

If you found a piece of furniture in another room that can work based on the shape and size, but it doesn’t quite match, consider painting the furniture. This is also a great option for updating old wood furniture that you’ve had in the room for years, or even furniture that you just found at a thrift store or rummage sale. Changing the color of furniture with spray paint is a quick and easy way to give it an entirely new look in less than a day’s time.

When determining if a piece of furniture can be painted, look for pieces that have good structure and very few flaws to the shape. When you paint, gouges and scratches can become more pronounced, so if you find a few imperfections, fill them with wood filler and sand them smooth before painting. If you are painting metal furniture, make sure to sand off any rust spots to ensure the rust doesn’t spread after you complete the makeover.

3 – Paint the Walls

If you want to make a bigger impact in a space, consider investing in a can or two of paint. Many rooms can be completed with one can of paint, but for more drastic color changes (like from white walls to dark blue walls or vise versa), you may need two cans to allow for multiple coats to get the walls fully covered.

If you don’t want to paint the entire room, consider painting an accent wall to give it a pop of color. If you have more time than funds, you can invest a few hours, a quart of paint, and a roll of painters tape into making a design on a wall instead. You might add a single stripe, a chevron stripe, or some free-hand circles around the room. You can get creative with the accent designs to make the room as fun as you want it to be.

4 – Have a Plan

One of the biggest things you can do to keep a makeover project budget friendly is to have a plan and a little patience. Think about it like this: if your car dies and you need a new car, you are at the mercy of the people who are selling cars at that exact time. If you are able to plan ahead on the purchase of your new car, you have significantly more bargaining power because you don’t NEED to purchase it immediately. You can wait for a better price to come along.

The exact same thing is true when it comes to purchases for your home. If you are determined to buy things on a certain day, you are at the mercy of what’s available on that exact day in the shops you can get to. If you’re able to instead plan the project, decide what you are going to look for, and then purchase when you find the items at the right price, you are in a much better position to find bargain pieces.

5 – Keep Your Eyes Peeled

Once you have your budget makeover plan in place, keep your eyes open for the perfect pieces everywhere you possibly can. Tour your neighborhood on the weekends to see if any of the neighbors are selling the perfect pieces on rummage sales. Search Craigslist and online rummage sale sites to catch when the items you need pop up for sale. Walk through thrift stores on a weekly basis and keep your eyes peeled for the perfect used items. And don’t forget to watch the clearance racks at your favorite stores to see what goes on super sale. I personally love walking through Target on the days they mark down their home décor items. It feels like a treasure hunt to find just the right throw pillows or wall art to fit my plan. When the items are on clearance, it’s an even bigger success knowing that I didn’t spend even close to full price on the perfect pieces.

6 – Change Light Fixtures

If you are handy, or you have a friend who is familiar with electrical wiring, you may want to consider changing out the light fixtures in your home to quickly update the space. Having light fixtures that are decades old often means that they are in an outdated style or finish, which can make the entire space look out of date. By swapping them out with an eye catching light fixture that you found on sale or at a thrift store, you can make a big impact change in that one item. One of my favorite stores to check for items like light fixtures is the Habitat for Humanity ReStore. Many cities and towns that have a Habitat for Humanity program also have a Restore where they sell good quality home fixtures that have been removed from homes that were remodeled. It is a store where one man’s trash truly is another man’s treasure.

7 – Change Flooring

The final tip is definitely more hands-on, but can make a large impact in a room if you have just a little bit more money to spend and a weekend’s worth of time. Changing the flooring in a room can create a big change for not as much money as you are probably imagining.

Laminate flooring has come a long way in the last 5 years, and you can now buy a variety of great looking laminate flooring for less than $1/square foot. This lightweight, easy to install flooring can be printed with images of wood, stone, or other designs to give your room a totally new feel. Considering most bedrooms in homes are close to 12’ x 12’, that means you could change the flooring in a room for under $150.

If that is outside your budget, you still have options. Consider getting a large area rug to anchor the room. These are typically available at stores like Ross and Home Goods for $50 or less. Not only can they add a pop of color to your floor, but you can move them into new rooms if you ever feel like rearranging in the future.

Having a strict budget shouldn’t keep you from having a space that you love. For under $200 there are a number of quick changes you can make to your home. Mix and match a few ideas and you’ll be surprised at how quickly a little time and a few dollars can change the feel of your home.

Until next time, I’m the Domestic CEO, helping you love your home.

Source: quickanddirtytips.com

By February 2, 2021.    Credit 101  , , , , , , , , , , , , , , , , ,  

How to Find My Citibank Routing Number

Are you looking for your Citibank routing number? It’s quite easy and simple. Below is how to find it.

If you’re sending or receiving money to friends and family members using your Citibank account, you need to make sure you’re having the right routing number.

CIT Bank Savings Rates: How Much Can You Earn

What is my Citibank routing number?

In brief, the Citibank routing number is a nine-digit number that the bank uses to identify themselves. Citibank routing number is sometimes known as ABA numbers, check routing numbers or routing transit numbers.

You need your routing numbers for several reasons. For instance, you need it for:

  • To set up direct deposit
  • For ACH payments;
  • To transfer funds between accounts at different banks;
  • For bill payments;
  • To receive government benefits;
  • To receive tax refunds;
  • For wire transfers;
  • To have payments like paycheck deposited into your account.
*TOP CIT BANK PROMOTIONS*
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CIT Bank Money Market 1.00% APY Review
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CIT Bank CDs 0.75% APY 1 Year CD Term Review
CIT Bank No Penalty CD 0.75% APY Review

Citibank Routing Number For Each State

Citibank routing number is different for each state.  So, it’s important to know it. But your Citibank routing number is associated in the state you opened your bank account.

So, if you have moved to Illinois for example, but you had opened Citibank account in New York, your routing number is associated in New York.

It is as simple as that.

Here is a table of the Citibank routing number by each state:

State Citibank Routing Number
Citibank Northern California (CA) 321171184
Citibank Delaware 31100209
Citibank Illinois (IL) 271070801
Citibank Nevada 322271724/ 322271779/ 321070007
Citibank New York (NY) 21000089
Citibank Texas (TX) 113193532
Citibank Washington DC 254070116
Citibank Connecticut 221172610
Citibank Florida 266086554
Citibank Maryland 52002166
Citibank New Jersey (NJ) 21272655
Citibank South Dakota 21000089
Citibank Virginia 254070116
Citibank California, Southern 322271724
If your state is not included in here, call Citibank at 800-374-9700 for assistance.

Citibank routing number to make ACH Transfers

To make an ACH transfer, you’re going to have to choose the Citibank routing number for your particular state.

For example, if you live in Florida, then you will use the Citibank routing number for Florida which is 266086554. If you live in another state, look at the ACH routing number for your particular state in the table above.

Citibank routing numbers for Wire Transfers

Wire transfers are a quicker way to send money than an ACH transfer. However, there is going to be a fee.

If you’re making a domestic wire transfer, however, you will need to use the routing number in your state, see the table above.

To make domestic wire transfers, and in addition to the routing number, you will also need the following:

  • The name of of the person whom you’re making the transfer to;
  • The name and address of the person’s bank;
  • The person’s account number as well as the routing number.

For international wire transfers, you will need both the Citibank routing number in your state and a SWIFT Code: CITIUS33. SWIFT stands for Society for Worldwide Interbank Financial Telecommunication.

In addition, you will need the following to make an international wire transfer:

  • The name of of the person whom you’re making the transfer to;
  • The name and address of the person’s bank;
  • The person’s account number
  • Purpose of the payment; and 
  • The currency being sent

Where to find your routing number?

So, you want to know where to get your routing number from Citibank? Here’s where to get it:

Your Citibank personal check

You can find your Citibank routing number on the bottom left-corner of a check. However, note the routing number on your check might be different than the routing number for a wire transfer. So, before you’re making a transaction, make sure you check with your bank to get the accurate routing number.

Learn How to Write A Check.

Citibank routing number on this page

We have listed the routing numbers for each state on the table above for ACH transfers. We have also listed the routing number for domestic and international wire transfers.

Your Bank statements

You can find your routing number as well on your monthly bank statements.

Citibank online

Your can find your routing number online by simply going into online banking. 

On the Federal Reserve website

You can look up your routing number on the Federal Reserve website. 

Customer service

Lastly, you can always call customer service at 800-374-9700: to get your routing number. It’s available 24 hour a day, 7 days a week. However, note that you will have to provide some details to identify yourself.

Which routing number to use?

Depending on your financial transactions, you will need to use different routing numbers.

Domestic ACH Transfer

For domestic transfers, use the ABA routing number from your state (see the table above).

For Domestic Wire Transfer

Use the Citibank domestic wire transfer number in your state in the table above.

For international wire transfers

Use your state routing number: and the SWIFT code: CITIUS33

Citibank routing number: bottom lime

In conclusion, if you have a Citibank account, you’ll likely need to your routing number. You will need to set up direct deposit, to set up automatic payments, or to wire transfer. So, it’s important to know it and keep it handy. Also, make sure you verify the number before you make a transaction. If you miss one digit or get one digit wrong, your money can go somewhere else.

Related:

  • Wells Fargo Routing Number
  • How to Find Your Well Fargo Routing Number for Texas

Speak with the Right Financial Advisor

  • If you have questions about your finances, you can talk to a financial advisor who can review your finances and help you reach your goals (whether it is making more money, paying off debt, investing, buying a house, planning for retirement, saving, etc).
  • Find one who meets your needs with SmartAsset’s free financial advisor matching service. You answer a few questions and they match you with up to three financial advisors in your area. So, if you want help developing a plan to reach your financial goals, get started now.
*TOP CIT BANK PROMOTIONS*
PROMOTIONAL LINK OFFER REVIEW
CIT Bank Money Market 1.00% APY Review
CIT Bank Savings Builder 0.95% APY Review
CIT Bank CDs 0.75% APY 1 Year CD Term Review
CIT Bank No Penalty CD 0.75% APY Review

The post How to Find My Citibank Routing Number appeared first on GrowthRapidly.

Source: growthrapidly.com

By February 2, 2021.    Apartment Life, Banking, Personal Finance  , , , , , , , , , , , , , , , , , , , , , , , , ,