Category Archives: Saving Money

How to Plan for Financial Success Post-College

Financial planning post-college is crucial for setting yourself up for long-term success. As you enter the workforce and start earning an income, it’s important to have a plan in place to manage your finances wisely. Without proper planning, it can be easy to fall into debt, struggle with expenses, and miss out on opportunities to save and invest. By creating a budget, understanding different types of debt, and developing a plan to pay off loans, you can avoid financial stress and make progress toward your goals. Additionally, building an emergency fund and having insurance coverage is essential for protecting yourself from unexpected expenses.

Maintaining a good credit score and continuously educating yourself about personal finance will further strengthen your financial foundation. By prioritizing financial planning post-college, you can pave the way for a secure and prosperous future.

Plan for Financial Success

Set Financial Goals

Identify short-term and long-term financial goals

Identifying short-term and long-term financial goals is essential to planning for financial success post-college. Short-term goals are immediate expenses that can be achieved within a few months or years, such as rent, insurance payments, and minor home repairs. On the other hand, long-term goals are big-picture costs that may take several years or even decades to accomplish, like saving for retirement or buying a house. It’s crucial to balance these two types of goals and prioritize your needs first, including food, shelter, emergency funds, and debt repayment. By setting clear timelines, tracking your expenses, and allocating your income wisely, you can work towards achieving both your short-term and long-term financial goals and ensure a secure financial future.

Establish a budget plan

Establishing a budget plan is crucial for financial success post-college. After graduation, you may be faced with new expenses and financial responsibilities. By creating a budget, you can track your income and expenses, ensuring that your spending aligns with your financial goals. Start by calculating your fixed costs, such as rent, utilities, and variable costs, like dining out and shopping. Aim to spend 50% of your budget on essentials, 20% on savings and investments, and the remaining 30% on nonessential expenses. Additionally, prioritize paying off student loans by creating a repayment plan. Consider the 50/20/30 rule when allocating your income. Every dollar counts, so building a budget plan will establish a solid foundation for your financial future.

Manage Debt

Understand different types of debt

Understanding different types of debt is crucial for financial success after college. As a recent graduate, you may have accumulated various types of debt, such as student loans, credit card debt, or car loans. It’s essential to differentiate between these types of debt to create an effective repayment plan. For example, federal student loans have different repayment options and interest rates compared to private student loans. Similarly, credit card debt is typically more expensive due to high-interest rates. By understanding the nuances of different types of debt, you can develop strategies to pay them off effectively. This may involve prioritizing higher-interest debts or exploring options like refinancing. Taking control of your debt is a crucial step towards achieving financial stability post-college.

Develop a plan to pay off student loans and other debts

Developing a plan to pay off student loans and other debts is essential for achieving financial success post-college. Start by understanding the terms and repayment goals of your loans. Knowing when your bills are due and aligning payments with your financial goals is key. Consider making extra payments beyond the minimum to attack the amount you owe at a quicker rate. Look for areas where you can make financial sacrifices, such as cutting back on unnecessary expenses or finding ways to increase your income through side hustles.

Additionally, exploring options like refinancing your loans or applying for income-driven repayment plans can help lower payments and save money in the long run. Creating a strategic plan and staying motivated can effectively pay off your student loans and other debts, paving the way to financial freedom.

Build Emergency Fund

Having an emergency fund is crucial for financial success after college. Life is unpredictable, and unexpected expenses can arise at any time. A dedicated savings account for unplanned expenses or financial emergencies can provide a safety net and protect you from debt. It lets you quickly recover and stay on track toward achieving your larger savings goals. Research has shown that individuals who struggle to recover from a financial shock often have fewer savings and may rely on credit cards or loans, which can lead to long-term debt. By building an emergency fund, even with a small amount, you can have peace of mind knowing that you are prepared for any unforeseen circumstances that may come your way. Don’t wait until it’s too late – start saving now and secure your financial future.

Tips for building an emergency fund

Building an emergency fund is an essential step in achieving financial success post-college. Here are some tips to help you get started. Firstly, start small. Even consistently setting aside a small amount of money can make a big difference over time. Consider automating your savings by setting up automatic paycheck or bank account transfers. This way, you won’t have to rely on remembering to save each month. Additionally, be mindful of your spending habits and look for ways to cut back on unnecessary expenses. By making small adjustments to your lifestyle, you can free up more money to put toward your emergency fund. Lastly, stay motivated by regularly checking your progress and celebrating your milestones. Building an emergency fund takes time and discipline, but the peace of mind it provides is well worth the effort.

Invest in Retirement

Investing in a retirement account offers numerous benefits for post-college individuals. First and foremost, starting early allows for more time for your investments to grow. The power of compounding interest can significantly increase the value of your retirement savings over time. Additionally, many employers offer matching contributions to retirement accounts, which is essentially free money that can boost your savings. By taking advantage of this benefit, you can maximize your retirement funds. Investing in a retirement account also provides tax advantages, such as tax-deferred growth or tax-free withdrawals in the case of a Roth IRA. This can help you save money on taxes and potentially reduce your overall tax burden. Finally, having a retirement account gives you peace of mind and allows you to plan for a financially secure future.

Understand different types of retirement accounts

Understanding different types of retirement accounts is crucial when planning for financial success post-college. Retirement accounts, such as 401(k) and 403(b) accounts, allow individuals to save and grow their money with certain tax advantages. Employers typically offer these accounts and may include a matching contribution option, providing additional funds for retirement. Another type of retirement account is the Roth IRA, which allows individuals to contribute post-tax dollars and enjoy tax-free interest earnings. While a traditional IRA allows individuals to deduct their contributions from their taxable income, a Roth IRA offers tax benefits upon withdrawal. Each type of retirement account has its advantages and limitations, and it is essential to consider individual financial goals and circumstances when choosing the most suitable account. By understanding the different types of retirement accounts, individuals can make informed decisions and take proactive steps toward securing their financial future.

Consider Insurance

When it comes to planning for financial success post-college, considering different types of insurance is crucial. Insurance acts as a safety net, protecting you from unexpected expenses and emergencies. Here are some types of insurance to consider:

1. Health Insurance: This covers medical expenses and ensures access to necessary healthcare services.

2. Auto Insurance: If you own a vehicle, auto insurance protects in case of accidents, theft, or damage.

3. Renter’s/Homeowner’s Insurance: Whether renting or owning a home, this type of insurance covers damage to your property and possessions.

4. Life Insurance: Life insurance offers financial protection for your loved ones in the event of your death.

5. Disability Insurance: This insurance provides income replacement if you are unable to work due to a disability.

Remember, each individual’s insurance needs may vary, so it’s important to assess your specific circumstances and consult with insurance professionals to determine the best coverage options for you.

Importance of having insurance

Having insurance is an important aspect of financial planning post-college. While you may have been covered by your parent’s health insurance during school, now that you’re on your own, it’s crucial to have your own coverage. Medical bills can be financially devastating if paid out of pocket. Additionally, insurance can provide protection in case of unexpected events such as accidents or illnesses. It’s also important to consider other types of insurance, such as renters or homeowners insurance, to protect your belongings. Insurance provides peace of mind and can save you from significant financial burdens in the long run. Don’t overlook the importance of having insurance as you navigate post-college life and take steps toward financial success.

Importance of credit score

Having a good credit score is crucial for financial success post-college. Your credit score is a rating that financial institutions use to determine your creditworthiness, and it greatly impacts your ability to secure loans, rent an apartment, or open a credit card. Building a good credit history early on is essential as it establishes a track record of responsible credit usage. This will make it easier for lenders to extend credit to you in the future and can lead to lower interest rates and better loan terms, ultimately saving you money. A good credit score also has other benefits, such as lower insurance rates and better rental opportunities. By realizing the importance of your credit score and taking steps to maintain a good one, you’ll be setting yourself up for financial stability and success in the long run.

Tips for maintaining a good credit score

Maintaining a good credit score is essential for college graduates as they enter the post-college phase of their lives. Here are some tips to help you maintain a healthy credit score. Firstly, make sure to pay your bills on time and in full each month. Late payments can have a negative impact on your credit score. Keep your credit card balances low and try to pay them off in full each month. This shows lenders that you can manage your credit responsibly. Keeping old credit accounts open is also important, as a longer credit history can benefit your score. Lastly, regularly check your credit report for any errors or fraudulent activity and dispute them immediately if necessary. Following these tips can establish a good credit score and set yourself up for financial success post-college.

Continuously Educate Yourself

Financial education is of utmost importance, especially for college graduates entering the real world. Without proper knowledge and understanding of finances, individuals may struggle to manage their money effectively, leading to debt, stress, and missed opportunities for financial growth. By learning about budgeting, debt management, and investing, graduates can set themselves up for success in the long term. Financial education also empowers individuals to make informed decisions about their student loans, retirement savings, and insurance needs. It provides them with the tools necessary to navigate the complex world of personal finance and make strategic choices that align with their goals. Ultimately, financial education equips individuals with the knowledge and skills to take control of their financial future and achieve long-term financial success.

Resources for further education

For further education and resources on financial planning post-college, students can explore various avenues. One option is to seek out sound financial advice from professionals such as certified financial advisors or registered investment advisors. Social media platforms like TikTok can also provide helpful information, but verifying the credentials of those offering advice is important. Additionally, podcasts, books, and blogs can be valuable sources of information on personal finance. For example, NPR’s “Planet Money” podcast tackles complex financial topics, while books like “Broke Millennial” by Erin Lowry cater to young adults new to personal finance. Taking advantage of online tools like the College Scorecard can also help prospective students make informed decisions about college costs. By seeking out these resources, individuals can gain the knowledge and understanding needed to make sound financial decisions and succeed post-college.

Best Ways to Invest While a College Student

Best Ways to Invest While a College Student

As a college student, it may be hard to think about investing when faced with overwhelming assignments and responsibilities. However, investing early on can significantly impact your financial future. With the right investment strategy, you don’t have to wait until you finish your degree to start building wealth. In this blog post, we’ll explore the best ways for college students to invest their money and gain financial freedom. Whether you’re looking to invest in stocks, real estate, or other assets, we have some tips that can help you get started today. So, let’s dive in!

The Importance of Investing as a College Student

Investing can be daunting, especially for college students who are juggling coursework, part-time jobs, and other responsibilities. However, it’s never too early to start investing, and college is the ideal time to do so. In fact, investing while in college can provide tremendous long-term benefits for young adults by allowing them to take advantage of compounding interest and earning returns on their investments. With diverse investment options available, such as stocks, ETFs, and mutual funds, college students can tailor their investing strategies to suit their financial goals and timeframes. Additionally, planning for retirement during college can set students on a solid path toward long-term financial security. By automating savings and investments and utilizing low-cost brokers and apps, college students can make investing a habit and set themselves up for future financial success.

Understanding Investment Options: Stocks, ETFs, and Mutual Funds

As a college student, it’s important to understand the different investment options available to you. Stocks, ETFs, and mutual funds are all popular ways to invest your money. Stocks are ownership shares in a company, while ETFs and mutual funds are collections of stocks and bonds that are managed by financial professionals. Investing in a diversified portfolio can help reduce risk and increase potential returns. When deciding between ETFs and mutual funds, it’s important to consider factors such as fees, minimum investments, and tax implications. As a new investor, it may be beneficial to stick with index funds or ETFs that mirror the market. It’s also important to plan for the future and consider options such as an IRA to save for retirement.

The Benefits of a Diversified Portfolio

In investing, it’s always wise not to put all your eggs in one basket. That’s where a diversified portfolio comes into play. Investing in various sectors or asset classes can spread your risk and potentially increase your returns. This is especially important for college students who may not have a lot of money to invest but want to start building their wealth. By diversifying your portfolio, you can ensure that you are not overly exposed to one particular company or industry. Additionally, a diversified portfolio can help you weather market volatility better. So instead of trying to guess which stock or fund will perform well, focus on building a well-diversified portfolio and let time and consistency do the rest.

Investing in Index Funds vs. ETFs

Section 4 of the blog discusses the difference between investing in index funds and ETFs. Both options offer a simple way to diversify a portfolio, as they offer exposure to hundreds or even thousands of securities. However, the main difference is in their management style. Most index funds are actively managed, while ETFs are passive investments that track a particular index. This can result in lower fees and a more tax-efficient investment with ETFs. In addition, ETFs can have a lower minimum investment than index funds. As a beginner investor, it’s important to consider both options and determine which one aligns best with your investment goals and budget.

Planning for Retirement with an IRA

As a college student, it’s never too early to start thinking about retirement. One of the best investments that a student can make is an IRA, specifically a Roth IRA. Roth IRAs are great for students because they offer tax benefits that can help them save more money in the long run. It’s important to make sure that you’re contributing to your IRA consistently, even if it’s just a little bit each month. In addition to IRAs, employer-sponsored retirement plans are also a great option. These plans often provide matching contributions, which can help you save even more. By starting to plan for retirement now, college students can set themselves up for a comfortable financial future.

Choosing a Brokerage Account: What to Look For

When it comes to investing, having a brokerage account is an essential tool for buying and selling assets. As a college student, choosing a brokerage account that fits your needs and budget is important. Look for an account with low fees or zero fees for buying and selling assets. You’ll also want to consider whether you prefer a traditional brokerage account or a trading app. Additionally, make sure the account offers a simple, user-friendly platform to manage your investments. Take the time to research and compare different brokerage options before making a decision. Remember, a good brokerage account can help you achieve your financial goals while in college and beyond.

Getting Started with Passive Investing

Once college students understand the investment options available to them, they can start exploring passive investing. This method of investing involves putting your money into low-cost index funds and ETFs. It’s a hands-off approach that provides diversification quickly. Even students can start making passive income using Scholaroo’s list of the best passive income ideas. Investment apps like Robinhood are also valuable options for college students who want to start trading without fees. It’s possible to create passive income through certain financial products or by starting a business that requires an initial investment. College students can diversify their portfolios and minimize risk by investing in index funds or spreading their money across different investments. Overall, starting with passive investing can be a great way for college students to invest their money.

Why New Investors Should Consider Mutual Funds

When it comes to starting an investment portfolio, new investors should consider mutual funds as a viable option. As previously mentioned, a diversified portfolio is essential for long-term growth and success. Mutual funds offer just that, as they contain a mix of stocks, bonds, and other assets managed by a professional portfolio manager. This removes the need for new investors to select individual stocks or bonds, which can be challenging and risky. Additionally, mutual funds provide instant diversification and can be purchased with low minimum investments. Furthermore, mutual funds are continuously monitored, making it easier for investors to make informed decisions without being experts in the stock market. For new investors, mutual funds are a simple and effective way to build an investment portfolio that is diversified and managed by experienced professionals.

Automating Savings and Investments for Success

Automating savings and investments is an important step toward financial success, especially for college students who may already be juggling a tight budget. By setting up automatic transfers from a checking account into an investment or savings account, students can ensure that money is being put aside each month without actively remembering to do so. This helps with long-term savings goals and creates a sense of financial stability and security. Additionally, utilizing apps and low-cost brokers can make investing and managing investments more accessible and user-friendly. By combining automation with smart investment choices, college students can set themselves up for a financially stable future.

Finding Low-Cost Brokers and Apps for Investing

When it comes to investing, college students may not have a lot of extra money to spare. That’s why finding low-cost brokers and apps that fit their budget is important. Several investing platforms offer commission-free trades and low expenses for account maintenance. It’s also important to consider the range of investment options available and the educational resources provided. Some of the best low-cost brokers and apps for college students include Stash, Betterment, TD Ameritrade, and Plynk. College students can start building their investment portfolio without breaking the bank by choosing a platform that fits their needs and budget.

Should You Invest or Pay Off Student Loans?

Should You Invest or Pay Off Student Loans

As a recent college graduate, you may be considering whether to invest the money you have saved or use it to pay off your student loans. This can be a difficult decision as both options have their advantages and disadvantages. On the one hand, investing your money has the potential to earn you a higher return on investment (ROI) in the long run, but there are risks involved. On the other hand, paying off your student loans can bring financial relief and reduce your debt-to-income ratio, but it may also limit your financial flexibility. In this blog post, we will discuss the factors you should consider when deciding between investing or paying off student loans.

Investing vs Paying off Student Loans

When it comes to deciding between investing and paying off student loans, it really depends on the individual’s circumstances. Generally, investing is a good option when the expected return is higher than the interest rate on loan. However, if the interest rate is high (over 10%), it’s wise to prioritize paying off the loan first. It’s important to calculate the average return on investment and compare it to the student loan interest rate. One must also consider the power of compounding interest and the benefits of starting to invest early. Nonetheless, it’s crucial to find a balance between investing and making student loan repayments. Ultimately, one should make the right choice for their financial future.

Calculating Average Return on Investment

Calculating the average return on investment is an essential consideration when deciding whether to prioritize paying off student loans or investing. As mentioned, the average return for the S&P 500 is 7% after inflation. This means that over ten years, a $10,000 investment would yield a total return of $19,672. However, it’s essential to remember that return rates aren’t guaranteed and can fluctuate based on the market. It’s crucial to take into account your risk tolerance when making investment decisions. Ultimately, calculating the average return on investment can help you make informed choices about your financial future.

Comparing Investment Returns to Student Loan Interest Rates

When it comes to deciding whether to invest or pay off student loans, it’s important to compare the potential returns on each option. One way to do this is by comparing the expected average return on your investments to the interest rate on your student loans. Typically, the average return on investments will be higher than most low-interest student loans, making it a more attractive option. However, if the interest rate on your student loans is particularly high (above 10%), prioritizing repayment may be the better choice. It’s important to find the right balance between investing and meeting your financial obligations, so you can build a strong financial future.

Focusing on Saving and Investing for the Future

Focusing on saving and investing for the future can be a wise financial decision for those with student loan debt. By building a savings cushion, individuals can have peace of mind and protect themselves from unexpected expenses that could derail their loan repayment plans. Investing in a diverse portfolio, such as a 401(k) or individual retirement account (IRA), can also help grow their money and potentially outpace the interest rates on their student loans. It’s important to remember, however, that investing comes with risks, and it’s essential to make informed decisions and work with a financial advisor. Overall, balancing paying off debt and investing for the future is key to achieving financial freedom and security.

Viewing Paying Off Student Loans as an Investment

Viewing paying off student loans as an investment may seem counterintuitive, but it can actually be a smart strategy to build future wealth. By putting extra cash towards student loan repayment, borrowers are essentially earning a return equal to their loan’s interest rate. This guarantees a return on investment, whereas investing in the stock market comes with risk. Plus, eliminating student loan debt can improve credit scores and increase financial stability, which can lead to future wealth-building opportunities. It’s important to balance paying off student loans and investing for the future, but viewing student loan repayment as an investment can be a solid starting point in creating a financially prosperous future.

The Power of Investing Early

The Power of Investing Early is a key factor in building long-term wealth. By investing as early as possible, individuals can take advantage of compound interest, where their initial investment grows over time, leading to more significant returns. By investing a small amount of money regularly over a long period, the investor can accumulate significant wealth over time. This is especially relevant when compared to paying off student loans early. While paying off loans helps reduce debt, it doesn’t offer the same level of opportunity for long-term wealth building. Therefore, it’s essential to consider investing early on and finding a balance between investing and student loan repayment. This way, individuals can benefit from both worlds and achieve financial stability and success in the long run.

Risks of Investing vs Paying Off Student Loans

While investing can potentially yield significant returns, it comes with inherent risks that need to be considered. The value of investments can fluctuate, and there’s a risk that you could lose some or all of your money. Paying off student loans, on the other hand, guarantees a fixed rate of return without any risk. However, it’s important to keep in mind that the interest you’re paying on your student loans is likely to exceed the returns on your savings account or other low-risk investments. It’s a balancing act between the risks of investing and the guaranteed return of paying off student loans. Your risk tolerance, financial goals, and overall budget should all be taken into account when deciding between investing and paying off student loans.

Finding a Balance Between Investing and Student Loan Repayment

When it comes to deciding between investing and paying off student loans, finding a balance is key. It’s important to take a step back and evaluate your financial goals, income, and debt. If your student loan interest rates are high, it may make sense to prioritize paying off your loans first. However, investing may be a better option if your interest rates are lower. It’s also important to consider the long-term benefits of investing early and how it can impact your financial future. Ultimately, finding the right balance between investing and student loan repayment will depend on your individual circumstances and priorities. It may be helpful to consult with a financial advisor to determine your best course of action.

Conclusion: Making the Right Choice for Your Financial Future

In conclusion, deciding whether to invest or pay off student loans is a personal financial decision that requires careful consideration of individual circumstances. While investing can yield a higher return than student loan interest rates, it’s important to remember that student loan repayment is a long-term commitment that must be met. Balancing investment goals with student loan repayment can help graduates move towards financial stability and security. Ultimately, the right choice depends on each person’s financial situation, investment goals, and risk tolerance. By taking the time to understand their debt and assessing their investment options, graduates can make informed decisions that set them on the right path toward achieving their financial goals.

How To Save Money As New Parents

How To Save Money As New Parents

After the birth of your newborn, a sudden realization hits you—your money has grown a pair of wings.

Your monthly expenditure is skyrocketing with hospital charges, diapers, photoshoots, and pediatric visits. This will leave you indebted if you don’t figure out your finances soon.

Having a child is overwhelming, and as new parents, there are so many things to do and so little time that drawing a budget is the last thought on your mind.

Here are some tips to help you save some money.

A New Family Budget

A clear understanding of your finances will help you decide where you can cut costs to save money.

After the baby comes home, your list of essentials will increase considerably, taking a toll on your monthly savings.

As the baby grows, your spending will increase, so try to save as much as possible. Also, try to pay off your debts as much as possible.

With the baby, the expenses will increase, and your unpaid debts will take a backseat. Paying your debts will also ensure you have a good credit history in case of any emergency.

Save Money On Hospital Bills

Hospital charges are one of the most significant expenses during the initial parenting stages. Although unavoidable, you can cut costs by refusing add-ons that you don’t need.

A private delivery room can add up to $500/day on your hospital tab, and a television set can cost you $8/day. You can easily do without them, so why spend extra?

Hospitals provide baby goodies like diapers, onesies, wipes, pacifiers, nasal aspirators, thermometers, baby wraps, and more, so stock up on these and save around $40.

Only The Essentials When Shopping

All the cute little items available on the shopping sites are tempting, but don’t get carried away. Before the baby arrives, opt for only the essentials until you get the hang of your baby’s growth rate. This way, your house is not cluttered, and you don’t have many ill-fitted items.

Babies grow quickly, so make sure to buy only the bare minimum. As babies’ clothes get stained easily, don’t buy expensive clothes from elite brands. Visit your nearest store and buy plain, inexpensive clothes.

Pick gender-neutral items, especially if you plan on having another baby in the future. This will save you a lot of money.

As the list of baby essentials is vast and never-ending, try buying products that will grow with your baby. These include strollers that shift from newborn to toddler, which helps save money and space.

Also, look for convertible furniture and accessories like changing tables that double as storage units and high chairs that can convert to booster seats and regular chairs.

Do your research to ensure you don’t get tricked by clever marketing. You don’t have to spend higher prices on baby products. A higher price tag does not guarantee better quality.

Collect Free Baby Stuff

Visitors often lavish maternity wards with baby gifts and free samples. These may include lotions, body washes, diaper ointments, diapers, and other items. However, as the staff is very busy, they often forget to distribute baby gifts. Make sure to ask for baby samples before your discharge.

Baby Feeding

Breastfeeding is undeniably the healthier and more economical option. However, even breastfeeding comes with associated costs like breast pumps and accessories, which help mothers pre-store the milk for the baby.

Opt for cheaper breastfeeding gear, or better yet, get a hand-me-down to cut costs. Even with these costs, breastfeeding is still comparatively economical.

Formulas make up the direct cost for formula-fed babies and are very expensive. Additionally, formula-fed babies are prone to ear infections and digestive troubles, increasing the number of visits to the doctor.

Diapers And Wipes

Escaping diapering costs is impossible, but you can always opt for the more economical and environment-friendly option of cloth diapers.

You can sign up for subscriptions and bulk buy diapers to cut costs when purchasing disposable diapers and wipes.

Embrace Pre-Loved Items

Babies grow quickly; they might wear a onesie only a couple of times before it becomes too big. Ask your family and friends if they want to give away any of their baby items. Parents are often eager to clear their attic and look for new parents to hand over these precious baby items to.

Strollers, baby carriers, cribs, and car seats are also great hand-me-down items. Getting one or more of these high-dollar items can be very good for your pocket. Search for a discounted retail store to pick some of the best hardly used baby products.

Plan Budget-friendly Date Nights

Parenting can take a toll on you. With busy days and sleepless nights, you are sure to feel the stress.

That does not mean you and your partner have to give up on romance and date nights. Even when it feels like you have no time to indulge, treat yourselves to a budget-friendly date to keep the spark alive.

Additional tip—there are many benefits and supports available for new parents. Unfortunately, many are unaware of such government facilities. Search for the ones you are eligible for and try to reap the benefits.

Wrapping Up

Take advantage of these tips and the hand-me-downs you receive from family and friends. And make sure you pass them forward, both the tips and your baby’s old and new items.

5 Must-Have Smartphone Apps That Will Save You A Ton of Money

5 Apps That Will Save You Money

Ever heard the phrase, “Money saved is money earned”? Well, it’s true; and if you want to save money, you are not alone.

Whether you are an entrepreneur, an intrapreneur, a homemaker, or a student, saving money is always attractive. However, keeping track of your expenses can be difficult in today’s fast-paced life. There is so much to take care of on the professional and personal front, and at times, finance can quickly get out of hand.

If you are keen on getting things fixed and saving money, here are 5 apps you must have.

1. Ibotta

Buying groceries and other household purchases is an expense that no one can avoid. However, with this app, you can get cash back for many of your purchases, both in-store and online. Ibotta has partnered with around 2,000 retailers and covers groceries, entertainment, eating out, pet supplies, clothing, and more.

You can earn cash in three ways:

For Online Purchases:

  • Shop through the app or with the Ibotta browser extension.

For Retail Shopping:

  • After you have shopped at your retail store, add offers and submit your receipt.
  • Through the Ibotta app, purchase a retailer gift card or link your retailer loyalty accounts to the app.

Also, every time you complete a task (like watching a video, taking a poll, or sharing on Facebook), cash is added to your account, which you can access when you make a purchase.

When you make a verified purchase, the money will be directly transferred to your bank account, sent to your PayPal account, or turned into gift cards.

2. You Need A Budget

You Need A Budget (YNAB) is an app designed specifically to help you gain control over your money. The app gathers all the information from different portals into one central view. So, all data from your bank accounts, loan balances, and credit cards are in one place, so you can start budgeting without getting overwhelmed.

Also, budgeting is not restrictive. It is custom-made according to your preferences, so you can design your budget without feeling guilty. The app also helps you align your money with your goals. So, whether you want a car or a house, simply set the target and watch the balance fill up.

You can start with the app’s free trial and budget using their proven method (a 4-step method—give every dollar a job). If you find the app useful, you can continue using it.

3. Acorns

Acorns is an investment app that helps you save money and invest spare change. It rounds up purchases made on the debit and credit cards linked to the app. It transfers the difference to the Acorns account for saving and investment. This way, your money can work toward your financial goals.

The app offers diversified portfolios, so you can decide whether you want to invest in a conservative or aggressive fund, round-ups, recurring investments, and more. The app started as a micro-investing platform, but with its high growth and significant expansion, it now offers five products.

Also, the app is ideal for people who want to learn about financing, budgeting, and more. It runs a literacy program that helps its users learn about the various aspects of money management.

4. Mint

With 30 million users, Mint is the most downloaded personal finance app. The app links all your accounts so you can keep track of all your financial activity. It also tracks your expenses, recognizes your spending patterns, and curates a budget for you.

This helps you fulfill all your obligations and save for emergencies, retirements, and more. With reminders for upcoming bills and due dates, the app also enables you to stay on top of your bills, so you don’t have to spend extra on penalties and late fees.

5. Chime

Chime is a mobile banking app that offers a spending account and a Visa debit card. With these, you can safely deposit funds, learn about your transactions, and track where you are spending the most.

It also has another feature—an optional high-yield savings account. It controls the savings at two points—save when you get paid and save when you spend.

In the case of “save when you get paid”, the app automatically sets aside a part (10%) of the credited amount in Chime.  It transfers this to your Chime’s savings account, which offers 1.50% APY.

With “save when you spend,” Chime rounds up the purchases you made with the Chime Credit card, and it transfers the difference to your savings account.

Apart from the above features, Chime has a host of other features that make banking very convenient.

Conclusion

Saving money is a difficult task—one that people don’t master easily. However, with the help of financing, budgeting, and cashback apps, you can get closer to your goal.

We hope the top 5 must-have smartphone apps we have listed will help you save a ton of money.

Tips to Increase Your Credit Score

Tips to Increase Your Credit Score

If you’ve ever had trouble getting a loan or been denied credit, chances are your credit score was an issue.

Credit scores are calculated based on your past behavior with financial institutions. The higher your score, the better your chances of being approved for new loans and credit cards.

If you have good credit, it’s important to take care of it! You can do this by adopting simple habits like always paying off your bills on time, keeping debt low (ideally below 30%), and avoiding late payments.

But what if you don’t have good credit? Are there any ways to raise your score? Let’s find out.

What is a Credit Score?

A credit score predicts the likelihood of timely loan repayment. Your credit score is gauged based on a few factors, most of which include your past payments like your:

  • Payment history
  • Debt
  • Types of accounts opened
  • Credit applications
  • Foreclosure
  • Bankruptcy

Tips for a Better Credit Score

If your credit score is lower than you’d want it to be, there are a few ways to boost it. Depending on what’s holding down your credit score, you can add a few points to your credit score by following these tips.

Pay Credit Strategically

Credit builds up fast. If you ignore your credit card balances, they will continue to add up. It’s a good idea to develop a strategy to monitor your credit balances. Of course, paying with a strategy comes with rewards.

There are a few things you can do to pay off your credit quickly to positively impact your credit score in the long run:

  • Pay more than what you owe each month
  • Try to make more than one payment every month
  • Focus on paying off your most expensive debt
  • Try to renegotiate your loan term to make it shorter

Aim for a Reasonable Credit Utilization

Most people aren’t aware that banks don’t commend you for spending your entire credit limit even if you pay it off on time. If you really want to build your credit score more quickly, you should only utilize 30% of your credit limit.

A good rule of thumb to remember is that you should aim to spend less than your total credit limit each month. This will make it easier for you to make timely payments while also building up a record of paying off your debt on time.

Ask for a Credit Limit Increase

If you’re unable to reduce your spending, consider asking for a credit limit increase. Keep in mind that this may only work if you don’t have any outstanding balances with the bank.

This way, it will look like you’re spending less, without really doing anything to change your spending habits.

Pay Bills on Time

Every bill or transaction should be paid on or before the due date. Late payments will only drag down your credit score further. Here are some things you can do to stay on top of your due dates and ensure that you don’t miss a payment:

  • Set account reminders
  • Automate your payments
  • Mark it on your physical calendar

Correct Credit Report Errors

The smallest mistake could pull your credit score down considerably. So, when you’re conducting a review of your credit reports, make sure you take note of any incorrect information. Mistakes happen, and it’s never a bad idea to contest them especially if they affect your credit score.

This is also a good opportunity to spot charge-offs, which you’ll want to work towards removing.

Why A Good Credit Score Is Crucial

Credit scores are the three-digit numbers lenders use to determine whether or not you’re a reasonable credit risk. Additionally, they look at your past payment habits and other factors, such as the type of accounts you have opened and how long they’ve been open.

A low credit score can make it harder to get approved for loans, mortgages, lines of credit, and more. A high credit score, on the other hand, may help you get approved for these products at a lower interest rate.

The higher your credit score, the better your chances of getting approved for a loan or credit card.

Increase Your Credit Score Today!

The tips we’ve outlined here will help you to improve your credit score and, in turn, make it easier for you to manage your finances and get the loans you need. If you are looking for a loan, consider using these tips to increase your credit score so that you can qualify for better interest rates and repayment terms.

How To Be More Disciplined – 5 Simple Habits To Learn

How To Be More Disciplined

Self-discipline is a trait that allows people to achieve their goals. This, in turn, improves their lifestyle and contributes to their overall well-being and happiness.

Despite popular belief, discipline is a learned quality. This means you can improve it with practice and consistent effort.

Being disciplined allows you to stay in control of your actions, feelings, and emotions. It helps you remain motivated and focused on the task at hand, which will boost your chances of success.

Don’t know how to go about developing this trait? Here are 5 simple habits that will help you build discipline.

1. Know Your Strengths And Weaknesses

Recognizing your strengths will empower you and create the positivity you need to achieve your goal.

Your strengths could be determination, dedication, creativity, or versatility. They could also be your ability to be patient, calm, respectful, and honest.

You can use your strengths to proactively combat your weaknesses. Your weaknesses could include procrastinating, drinking, smoking, too much screen time, or irregular eating and sleeping routines.

Weaknesses pull you away from your goals. Mastering self-discipline becomes easy when you recognize and overcome your weaknesses.

2. Remove Temptations

The best way to overcome temptations is to remove them in the first place. You cannot go on a diet with your pantry full of your favorite junk food, nor can you go through your budget plan while browsing through online stores.

If you’re addicted to social media, uninstall the applications on your phone or turn off notifications.

It’s better to reserve self-control for unforeseen and unavoidable circumstances rather than exhaust your willpower on avoidable situations.

You are only human, and there are only so many temptations you can resist. By removing temptations, you can easily stay disciplined.

The fewer distractions, the clearer your goal. This increased focus will help you accomplish your goal.

These small sacrifices will help you lead a more successful and fulfilling life.

3. Set Small Goals

Setting a goal helps you develop a clear vision, but it is easy to get discouraged if you set very difficult and challenging goals on your new route to self-discipline.

The key to accomplishing goals is to first define them.

Break your main goal into smaller goals and celebrate whenever you achieve one of your subgoals. Plan and execute your mini-goals with time-bound guidelines.

Write down your goals and make to-do lists so you know you are working on them every day. Consistency is key to discipline and achieving goals. If you are trying to lose weight, work out for 15 to 20 minutes a day instead of 2 hours once a week to stay consistent and ease yourself into it.

Every little achievement will make you more disciplined and your life more productive. It will also give you the confidence to achieve bigger goals and the motivation that you need to keep going.

Start with one small goal and move to the next only when you have accomplished the former. The same applies to new habits whether it’s going to the gym, going to bed early, or spending less time on social media. Start with one new habit at a time, instead of being overwhelmed by several in an effort to be disciplined.

If you have a couple of things to do, prioritize and tackle them in the order of priority.

4. Nurture Yourself

One cannot overstate the importance of self-care in achieving discipline. It’s fine to put in a little additional time now and then, but if you’re working overtime for months on end to achieve discipline, you’ve lost sight of the objective. Your sleep-deprived mind will struggle to make decisions, and your body will suffer as a result.

Any objective, let alone discipline, will be impossible to achieve with a weary mind and body. When you are exhausted, you cannot work at your highest potential. It makes you lose focus on the task, which also makes you grumpy and pessimistic, breaking your resolve.

Eat well-balanced meals at regular intervals, with healthy snacking in between, to keep your body nourished. Combine healthy food with regular exercise. This will boost your mood and provide you with the energy you need to achieve your goals.

5. Treat And Forgive Yourself

Self-discipline does not mean you have to be too hard on yourself. It is important to treat yourself with breaks and rewards after little achievements. This will make you feel energized and restored, so you can move toward achieving your goal with increased enthusiasm.

If you’ve failed at achieving a goal, evaluate and figure out where you went wrong. Try again, without losing heart.

If you have made a mistake, forgive yourself quickly and move on instead of dwelling on the mistake. This will help you save valuable time that you can use to work on your goal.

Wrapping Up

Your path to self-discipline will have its fair share of bumps and failures. So when you face one, use it as a learning experience and move on. Instead of wrapping yourself up in guilt and frustration, forgive yourself and get back in the game with more fervor. Once you have learned to conquer yourself, everything else comes easy.

Traditional VS Roth 401(k): Which Is Better?

Traditional VS Roth 401(k)

We all know how important it is to invest in a retirement savings account with tax advantages. But all the nitty-gritty involved in building your retirement nest egg can make your head spin.

So, if you’ve been struggling to figure out whether a traditional 401(k) is better for you or a Roth 401(k), you’ve come to the right place!

Here’s a concise and clear guide on 401(k), traditional 401(k) and Roth 401(k), and the best option for you between the two.

What Is a 401(k)?

A 401(k) is a tax-advantaged retirement savings plan offered by employers all across America.

When you sign up for a 401(k), you agree to put away a percentage of your paycheck into an investment account. The employer may also agree to match up with this percentage in part or full.

Today, employees have access to two 401(k) plans: traditional and Roth 401(k). The traditional 401(k) was introduced in 1978, whereas the Roth 401(k) was introduced in 2006.

Let’s take a look at the similarities and differences between the two 401(k) investment plans and how they can impact your savings.

Traditional VS Roth 401(k): Similarities

  • Both are retirement savings options.
  • Both have the same contribution limit.
  • Both provide tax-advantaged growth on investment.
  • Both have a maximum annual contribution limit.
  • Contributions to both plans are matched by the employer.
  • Both 401(k) plans have required minimum distributions (RMDs) starting at 72.
  • Both plans offer tax breaks (in the present or future).
  • Both attract early-withdrawal penalties of 10%.
  • Both provide distributions to you and your beneficiaries due to disability or death.

Traditional VS Roth 401(k): Differences

Traditional 401(k)

  • Contributions are made from pre-tax income.
  • You get tax breaks in the present.
  • It reduces your taxable income/current adjusted gross income.
  • Deferred taxes on investment gains.
  • All withdrawals are taxed at the income tax rate in the future.
  • All the money is only taxed when it comes out of your account.
  • State income taxes may be applied.
  • You can start receiving distributions at age 59 ½ regardless of when you started.

Roth 401(k)

  • Contributions are made from after-tax income.
  • No tax breaks in the present.
  • Withdrawals aren’t taxed.
  • Contributions aren’t taxed.
  • Paycheck goes down with consecutive contributions.
  • Growth on contributions is tax-free.
  • You can start receiving distributions at age 59 ½ only if you have held the account for at least 5 years.
  • Employer-matched contributions go into a pre-tax account and are taxed during distribution.

Traditional VS Roth 401(k): Which Is Better?

Select Traditional 401(k) If…

  • You need a little extra cash in the present.
  • You want to save money.
  • You’re in a higher tax bracket at present.
  • You are expecting to earn less in the future.
  • If your employer is matching your traditional 401(k) contributions only.
  • If you plan to move to a state that doesn’t collect income tax in your retirement.
  • If you started after the age of 54 ½ and need to access money at the age of 59 ½.

Bottom Line: If you’re starting to invest in a 401k quite late, then the traditional 401(k) would be the better option for you.

Select the Roth 401(k) If…

  • You are young.
  • You want tax-free growth on investment.
  • You want tax-free withdrawals during your retirement.
  • You are fine with a little less in your paycheck today.
  • You have already signed up for a traditional 401(k).
  • If you are in a lower tax bracket at present and expect to be in a higher tax bracket later on.
  • If you are expecting higher tax rates in the future.

Bottom Line: If watching a chunk of your retirement savings getting taxed is a heavy blow to your heart, then choose the Roth 401(k).

Can You Opt For Both Traditional and Roth 401(k)?

Yes.

You can choose to make contributions to both traditional and Roth 401(k) accounts on a year-by-year basis. This means you can decide how you want to split your contribution in either of the 401(k)s for that year.

Here’s an example:

For the year 2021, your 401(k) contribution is $19,500. Then you can choose to split it into equal halves and contribute $9,750 to both traditional and Roth 401(k) accounts. This limit only applies to the employee’s contribution to the account. Employer contributions aren’t included in the limit.

For those of age 50 or older, there’s the option of making a catch-up contribution to the 401(k) of $6,500.

Contribution Limits

The 401(k) contribution limit for 2021 is $19,500 and the same for 2022 is $20,500.

Final Thoughts

When determining the best retirement savings plan, there will always be some assumptions and predictions involved. There are factors outside of your control that may affect your income, tax brackets, and tax percentages in the future.

If you need a professional opinion, you could always ask a financial or investment expert for advice.

The best option is to carefully assess your current options and go with either of the plans. You’ll end up saving something for your retirement anyway.

10 Ways To Save Money On A Low Income

10 Ways To Save Money On A Low Income

As much as we’d all like to, not everyone makes 7 figures a year, unfortunately. That’s simply the sad reality of most of the working class. The constant battle to make ends meet can greatly impact your saving habits.

While it’s important to make sure your bills are paid and food is put on the table, there’s absolutely no reason for you to put your dreams of buying a house, car, or retiring worry-free on the back burner.

Saving money on a low income doesn’t mean you have to stop living your life to the fullest. It simply means finding a way to make the most out of your money while setting a little aside to contribute towards your future.

Let’s explore some of the best tips for saving money on a low income that won’t feel impossible to do.

10 Ways To Save Money On A Low Income

Anyone who has to deal with a low income knows how far planning ahead can go. That said, if you’re constantly feeling like you’re barely living paycheck to paycheck, it may be time to make a few changes.

1. Set A Budget

Without a set financial plan, you may find your money slipping away from your fingertips more quickly than it should. It’s important to take the time to sit down and think about where your money needs to be spent.

Financial experts like to follow a 50-30-20 rule where 50% of your income is allotted for your needs, 30% on your wants, and the remaining 20% goes into your savings.

This may or may not work for you, so it’s all a matter of building a budget that will help you keep track of your spending.

2. Reduce Your Housing Expenses

Your housing cost is one of your biggest expenses. According to the National Expenditure Survey, consumers spend around $10,080 on housing costs annually.

There are three things you can do to cut back on these expenses:

  • Downsizing to a smaller home or apartment.
  • Moving to a cheaper location.
  • Rent out any extra rooms or space.

3. Handle Your Debts

Trying to repay your debts can take a toll on your monthly budget, but it’s a necessity you can’t ignore. It may be challenging, but eliminating your debt more quickly will free up your money so you can use it on more important things like a home deposit.

4. Think About Your Food Costs

From packing lunches for work to cooking your own meals, there are many ways to cut down on food costs. We don’t mean eating the bare minimum. Instead, you should look into cooking your own meals rather than eating out.

If you want to stick to a budget, you may even find meal planning helpful.

5. Set Up An Automated Transfer

With cash on hand, it can be difficult to keep track of your money after paying the bills. One way to prioritize your savings is by setting up automated transfers each month.

This will allow you to set up your budget without having to worry about your savings and let you focus on your wants and needs depending on what’s left.

6. Find Cheap Ways To Entertain Yourself

Saving on a low income doesn’t mean you have to live a boring life. There are many ways to have fun while living frugally. Here are some suggestions to consider:

  • Take up hiking
  • Practice cooking
  • Take up gardening
  • Watch movies at home
  • Read a book

7. Visit Your Local Library

Libraries offer more than just free books. There are many free resources that they can offer such as:

  • Internet
  • Movies
  • CDs
  • Games

8. Look Into Cash Envelopes

It’s easy to lose track of your budget when all your money is in one place. To keep things organized and give you a clearer view of your spending habits, try the envelope method.

It’s simple — all you need to do is take a few envelopes, label them according to your expenses, and fill them with your allotted budget. And stick to these allotted amounts.

9. Find Affordable Banks

Banking costs are the bane of any low-income earner’s existence. Not only do they riddle you with unnecessary fees, but it can take a huge toll on your budget. To help you save in this area, it’s a good idea to look into fee-free banks.

10. Think About How Much Your Car Costs

If you own a car, then you’re probably spending several hundred dollars on it each month. It’s important to look into ways to minimize these costs, such as:

  • Switch to a cheaper insurance company
  • Try to pay off your car as quickly as you can
  • Scrap the car and bike or commute to work instead
  • Learn about doing minor car repairs at home

Conclusion

Savings not only help you prepare for retirement but also help you reach your dreams and act as a safeguard if you ever get laid off from work unexpectedly. There’s absolutely no reason for you not to save money.

We hope this list has given you an idea of how to save even with a barely manageable income.

What Foods To Buy In Bulk To Save Money And Food Waste

What Foods To Buy In Bulk

One of the smartest ways to save money when it comes to food is to buy it in bulk. Not only will you get large quantities at discounted prices but it will also reduce the need to go grocery shopping too often.

That said, you also need to know what foods can be stored for a longer period. Foods like bread and pastries do not store as well as others. Such items will just end up as food waste, along with the money you’ll be throwing away!

So, to help get you started, here are the top 10 foods you should buy in bulk to save money and minimize food waste.

Top 10 Foods To Buy In Bulk To Save Money And Food Waste

When picking out food to buy in bulk, it’s important to consider three things — how well they keep, how easy they are to store, and how flexible they are when it comes to cooking. This way, you won’t put off using them for longer periods just because you’re tired of the way they taste.

1. Canned Beans

Buying beans in bulk should be a no-brainer. They store well, are easy to use, and are versatile to boot! Canned beans are perfect because you can just open them up straight out of the can and use them. No need to cook or soak them! Plus, they can be used in a variety of dishes from tacos and beans on toast to adding them in pasta and rice dishes!

Average cost per can: $1.79

2. Canned Tomatoes And Tomato Sauce

Tomatoes are another great item to buy in bulk. These versatile and healthy fruits go well on a wide range of foods, including pasta sauces, stews, and soups. You can even use their juice in smoothies and other drinks!

Average cost per can: $1.25

3. Dried Lentils

Lentils are one of the most shelf-stable foods you’ll find in the market. While some studies show that storing these beans may reduce their nutritional value over time, it’s not that significant of a difference.

When stored in ideal conditions, dried lentils can last up to 10 years!

Average cost per pound: $1.56

4. White Rice

Dry white rice can be stored in an airtight container for up to 2 years. Since it doesn’t spoil easily, it makes sense to buy it in bulk. White rice can be used in a variety of dishes from desserts to burritos.

Average cost per pound: $0.71

5. Frozen Berries

Fresh blueberries are among the most expensive products in the market. Other berries like strawberries, raspberries, and blackberries can also cost a pretty penny. Luckily, you can save a few dollars by buying them frozen and in bulk.

While many raise concerns over losing the nutritional content of fresh berries when they’re frozen, it’s not of major concern and certainly not harmful to your health. And according to the USDA, frozen fruit can be safely stored for up to 6 months in the freezer.

 Average cost per pound: $2.04

5. Frozen Vegetables

Vegetables are an essential part of your diet since they’re packed with nutrients your body needs. However, buying them fresh can quickly become expensive. Vegetables also tend to spoil quickly; you might have found yourself unable to use them all up and having to toss most of them in the bin.

But like frozen berries, they can be stored for months. In some cases, frozen vegetables can last up to a year in your freezer.

Average cost per unit: $1.88

6. Honey

A healthier alternative to sugar, honey can be stored for up to 2 years according to the National Honey Board. When stored correctly, it can last for more, but this all varies depending on different conditions.

Average cost per pound: $1.97

7. Coconut Oil

Unlike other vegetable-based oils, coconut oil is more resistant to oxidation. This means it’s less likely to spoil over time. When stored in a cool, dark place, it can last for up to 3 years.

Average cost per pound: $0.46

Conclusion

When you think of buying in bulk to save money, it’s also important to consider food waste and minimize how much food you’re throwing away. Learning how to eat healthily is a very important step in keeping you running at full power your entire life.

A good way to do this is by looking into ideal storage solutions and buying food that is more shelf-stable. We hope this article has helped you learn about the best food to buy in bulk to save money and avoid food waste.