Watch Out for Interest-Only Home Loans
Now that the economy has picked up some, the housing market is recovering a little, and memories of the financial crisis are fading, some lenders are re-introducing a few “creative” financing methods. It’s possible to get an interest-only mortgage again, or get a loan with a low, low rate at the beginning. An interest-only loan is tempting because the borrower only pays the interest each month. This state of affairs can last from five to 10 years. When you only pay …
Why I’d Rather Pay $10,000 to Unload My House Than Become a Landlord
There are people out there who are made to be landlords. They like the idea of having someone else pay the mortgage on a home or apartment building and enjoying the ability to build equity on the property without using their own money. Once the property is paid off, the monthly rent is income (offset by the cost of taxes, insurance, and keeping the property up). I totally get why some people love the idea of getting into real estate and renting out property. I even get why many people who, upon moving, decide that they would rather rent out the old home than sell it. I am not one of those people. I am getting ready to move across the country, and…
What Do You Do With Your Savings?
One of the basic pieces of advice that we are often given about money is to save more. But where do you put that money? And what should you do with it? Create Goals for Your Savings While saving money just to save money does make sense in some ways, the reality is that few of us are willing to keep doing something “just because.” As a result, it makes sense to carefully consider your desired outcomes and figure out what you hope to accomplish with the money you are saving. First off, really think about what you hope to have happen…
Who Do You Trust For Money Advice?
For many of us, it’s difficult to know what to do when it comes to our finances. There are so many decisions to make. While the basic “live within your means” advice can apply, the reality is that there is more to money management than making sure that your expenses are smaller than your income. What do you do to save for retirement? What’s the best course of action when trying to pay down debt? There’s a lot to think about, and it makes sense to carefully consider who you will trust for money advice. Who Can You Turn To? One of the …
3 Signs You Need Help with Your Debt
One of the most difficult issues to overcome is debt. If you have a lot of debt, it can be difficult to move forward with your finances. The interest payments suck away your disposable income, and once you are stuck in the cycle, it can take serious effort to get out. In some cases, you might even need help dealing with your debt. You can get help from a legitimate counselor with the National Foundation for Credit Counseling, or get help from a fee-only financial planner. Here are 3 signs that you might need to seek professional help with your debt: 1. You Only Have Enough for Minimum Payments When you only have…
How To Recover After Bankruptcy
For the most part, bankruptcy should be the action of last resort when it comes to your money issues. However, there are times when bankruptcy really is the last option you have left. If you have experienced a long-term employment problem, or if you have had a medical problem that causes you financial distress, bankruptcy might be your last option. Once you have filed for bankruptcy, however, it doesn’t mean that it’s the end of your financial life…
Is A Zero Based Budget Right For You?
One of the budgeting techniques that has gained some popularity in recent years is the zero based budget. In this budget, you make sure that every dollar is accounted for at the beginning of the month. You look at what you expect to get in terms of a paycheck, and then use every penny to pay bills, or accomplish your goals. As part of your budget, you decide what will go to debt reduction, or to building an emergency fund, or to your retirement account. You can also put money toward a vacation or some other goal, on top of …
Is It Time to Dip Into Your Emergency Fund?
One of the most important things you can do for your financial security is to build an emergency fund. Unfortunately, many Americans aren’t prepared with a fund that they can tap in the event of a financial emergency. The Americans that do have an emergency fund, though, might not know when to tap into it. It’s easy to feel as though any setback is an emergency. Another temptation is the fact that you have a large amount of money sitting there, and it seems like you could do something better with it…
Do You Have To Quit Your Job To Be Financially Successful?
One of the themes that seems to circulate is that in order to find true financial success, you have to start your own business with the idea of eventually quitting your day job. While many of us like the idea of working from home (often in our pajamas), a home business isn’t for everyone. Indeed, there are plenty of people who are just fine working for “the man” — and that’s ok. Do You Really Want to Quit Your Job? My husband teaches a couple of online courses for a local university each semester. The reality is that, if he …