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3 Ways to Creatively Save for a 529 Plan

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Saving for your child’s college expenses is no easy feat. Here are 3 ways to creatively save for a 529 plan.Saving for your child’s college expenses is no easy feat. 

On average, college tuition costs have increased by about 8% per year – that’s more than the average cost of living inflation in America, which has steadily hovered around 1% to 2% and has just recently shot to over 5%. 

Yet, many don’t seem prepared for the skyrocketing college costs.

Lack of preparation causes students to take on student loans and search for side hustles to earn extra money to pay for college costs.

To help your child – or future child – better tackle the cost of college education, here are 3 creative strategies to help save for a 529 Plan, which is one of the most popular college savings accounts.

529 Plans: What Are They?

Before we dive into the 3 creative ways to save for 529 Plans, it might be a good idea to review what 529 Plans actually are.

529 Plans are arguably one of the most popular investment vehicles to save for future college expenses. Any person can contribute up to $15,000 per year, per beneficiary. 

The contributions to a 529 Plan can be invested in the stock market. The earnings, growth, and even withdrawals will not be taxed as long as you use the money for “qualified” education expenses. 

The definition of “qualified” typically varies depending on the type of 529 Plan that you use (each state and the District of Columbia administers its own individual 529 Plan, and you can use any 529 Plan – regardless of the state you’re living in currently). 

In most cases, 529 Plan withdrawals are considered qualified if you use the money to help your child enroll and attend an accredited college, university, vocational, technical, or even elementary, or secondary school. 

Other qualified 529 Plan expenses could include room and board, tuition, electronic devices, books, meal plans, etc. 

Just keep in mind that if it is determined you made unqualified withdrawals from your child’s 529 Plan, you may incur a 10% penalty on top of paying income taxes on your withdrawals. 

The 3 Ways to Save for a 529 Plan

If you’re ready to start saving for your child’s future college costs, then keep reading to find out more about these 3 savvy strategies.

1. Ask for 529 Plan Donations Instead of Physical Gifts

This tip is the ultimate life hack if you’re looking to save for your child’s college costs. 

Have you ever heard that material goods are temporary?

Personally speaking, I don’t remember what gifts I received for my 1st, 2nd, 3rd, or even my 5th birthdays. From what I can vaguely remember was being surrounded by loved ones, and feeling at peace. 

And chances are, most children won’t remember the toys and gifts they received for their early birthdays, either. In fact, any gifts that I did receive when I was a baby were either lost, destroyed by my teething self, or recycled just after a few years. 

That’s why you may want to rethink your child’s gifts – especially during the early days. 

Instead of asking family and friends to bring physical toys and other gifts for your child’s birthday or holiday celebrations, you may want to consider asking your family and friends to gift money (any amount) for your child’s future college expenses. 

While it might sound awkward to ask for money, any gift for your child’s future college costs can and very likely will make a big, positive impact in the future, thanks to investing and compound interest. 

Your family and friends can write a check that’s made payable to your child’s 529 plan by writing your child’s name and 529 Plan account number on the check itself. 

The great news? 

Generally speaking, there are no minimum contributions for a 529 Plan, so virtually any dollar amount can help for your child’s future college costs. 

There is even more good news: Checks are not the only way to contribute to a 529 Plan… and that’s where Point No. 2 comes into play…

2. Create Your Customized Online Link to Contribute

If you have family living across the country – or perhaps across the globe – you can simplify gifting to your child’s 529 Plan by creating a free gift code URL. 

I’ll give you an example. 

One of my very best friends was planning for her future child (and yes, that included planning for the kid’s college costs!) and I was helping her prepare.

My best friend is actually from Argentina, so her family lives on a different continent. And that’s where we started searching for ways to help her loved ones easily make gifts for her future child’s college tuition. 

We were digging up information about 529 Plans when I stumbled across an online 529 gifting program (the particular program I found was called uGift).

This online gifting program enabled 529 Plan account owners (like my best friend) to establish a customized (and free) URL for her child’s 529 plan. 

This URL could then be shared with my friend’s loved ones, so they could simply click on this URL, make a gift at any time, and transfer their money securely and directly to my friend’s 529 Plan. 

To create a unique gift URL, you would first have to establish a 529 Plan and then establish the URL from within the online 529 Plan portal. 

Most 529 Plans actually already have this online gifting URL feature built into the plan itself.

However, if you’re unsure whether your 529 Plan offers such a feature, it might be a good idea to reach out to the customer service department, which should help (I called the customer service department a handful of times, to the point where they knew my name!). 

Keep in mind that each 529 Plan is different, so Ugift might not integrate with every college savings plan (as an example, Ugift only works with 529 Plans that are administered by Ascensus). 

3. Open a 529 Plan Before your Child Is Born with Your Social Security Number

The earlier you start saving for your child’s college, the better. That’s because you can leverage compound interest, which Albert Einstein dubbed as the “eighth wonder of the world.” 

If you’re looking to make an impact on your child’s future college costs, then you may want to open a 529 Plan as early as possible. 

In fact, when I was helping my best friend prepare for her future baby, we came across a similar dilemma. 

My friend, who is financially independent and very concerned about the future cost of education, was hoping to start a 529 Plan for her child as soon as possible. So, we both found ourselves sitting in her financial advisor’s office, high up on the 20-something floor, looking across the city. 

Her financial advisor mentioned that to open a 529 Plan would require a beneficiary’s (in this case, my friend’s future child) social security number. In other words, he said that she would have to wait to open the 529 Plan until her baby was born and has a social security number. 

We both thanked him for his advice and started the drive back home (which we both disliked, because of the constant stop-and-go traffic!). 

However, something didn’t sit right with me – I figured that there had to be a loophole, as there seemingly always is. 

And guess what? 

I found a loophole…. While my best friend’s financial advisor was spot-on, that you would need the beneficiary’s social security number to open a 529 Plan, what he failed to mention was that the beneficiary could always be switched to close family members – without triggering any penalties. 

What does this mean in plain English? 

My best friend could, in fact, open a 529 Plan before her child’s birth. However, my friend would just have to designate herself as the account beneficiary until her baby was born. 

So, she would have to use her own name and social security number and once the baby is born, the beneficiary could easily be switched to her child. 

Why does saving early make such a big difference? 

If you start saving for college at (or in this case before) your child’s birth, roughly 33% of funding could come from earnings on your investment (or compound interest). 

If you wait to start saving for college when your child reaches high school age, less than 10% of funding will come from earnings on your investment.  

What’s the importance here? 

If you’re serious about having a child and you want to help provide for your child’s future cost of education, start saving (and investing!) as early as possible – even if that means opening a 529 Plan in your name first. 

Your greatest advantage is time.

Closing Thoughts

While it’s never fun to consider the financial uncertainty that often comes with funding college expenses, it’s necessary to have these conversations sooner than later.

Remember that time is your best ally.

That’s why it’s critical to start these conversations with your advisor, your partner, and/or other financial professionals to determine a solid college funding game plan.

While there are other college funding vehicles, such as prepaid tuition plans, Coverdell accounts, UTMAs, and even Roth IRAs, the 529 Plan often proves to be one of the best suited to save for college. 

If you start your game plan today, your bank accounts (and your child) will thank you later. 

 

Everything You Need to Know About Paying Yourself First

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Paying yourself first is one of many budgeting strategies available to us. Let's learn everything you need to know about this method. To invest, you need money. To get money, you need to save. To save consistently, you need to be conscious about how you’re spending money. In other words, you need to budget.

Sounds easy, right? If it were easy, everyone would be doing it. But they’re not because budgeting is tricky.

This is why a Gallup poll found that just 30% of Americans have a financial plan and a similarly small percentage maintain a household budget.

It’s incredibly mentally draining to ask yourself the questions constantly: “Hmmm, can I afford this?”, “Am I going to go over budget?”, “Should I eat out tonight or buy a new pair of sneakers?”

You have to be highly vigilant as to how much you’re spending. You have to ensure that there is enough money for the rest of the month and some leftover for savings and investments at the end.

Even if you have some money left, what is the probability that this money is directed to savings/investing accounts? Indeed significantly less than 1, probably even less than 0.5. It takes effort to log into your account and transfer money to a different account. Treating yourself to a new bag/fancy meal/weekend retreat is a lot easier and a lot more fun.

All this effort is too much for most people. This means that most who traditionally try budgeting fail to budget effectively and fail to save effectively.

In fact, on average, Americans save less than 5% of their income, with 20% not saving anything at all. This results in a lack of accumulation: 50% have less than one month of their income rescued, and only 40% could cover a $1,000 emergency. This has long-term implications, too; only around 40% of Americans have $10,000 saved for retirement.

A better way

Luckily for all of us who want to save money, there is a better way to pay yourself first. This is one of the critical tenants of personal finance for a reason: it works.

How it works is pretty simple. After you get paid at the start of each month, set up direct debits to savings/investment accounts, this ensures you are saving/investing automatically. You can read various articles about doing this in more detail so that I won’t get into that now.

However, these articles miss the other elements of personal finance structure outside of automatic saving/investing. Firstly, before investing, it’s more important to pay off debt. So, any debt payments should also be automated similarly. This should prioritize paying into investing accounts; direct debits to debt payments should occur before direct debits to savings and investing accounts.

Secondly, everyone seems to forget about bills. Personally, I ensure that every regular transaction occurs within the first five days of every new month. This means all savings, investing, debt payments, and bills are fully paid by the 5th. The money that’s left in your account is what you have to play with for the subsequent 25 days.

Note that it may require some effort on your part to set this up. I had to call American Express to change the due date on my credit card to ensure my direct debit date occurred on the 3rd of each month. I had to cancel my Spotify Premium and restart it at the beginning of a new month. These little things take time, but you’re good to go once the system is set up!

We are still Homo Sapiens

I am lazy. You are lazy. Let’s face it…we’re all pretty lazy.

We are lazy for a reason – hundreds of thousands of years ago, humans (more specifically Homo sapiens) were fighting for survival on a daily basis. We had to ensure that we consumed enough calories to survive. Calories in had to be greater than calories out; otherwise, we would die (I believe this is still the case). So, the reward we got from food had to be greater than the energy exerted to get that food plus other energy used throughout the day. One way to help ensure this is this case is to exert as little effort as possible throughout the rest of the day…by being lazy. We are lazy by design.

This is one of the reasons why paying yourself first is so powerful. We don’t want to spend time and energy considering every purchase. So don’t. Take the decision (partially) out of your hands by spending on what you have to primarily and automatically.

We fundamentally don’t want to exert any effort unless there are immediate and apparent rewards. This is another reason why traditional budgeting is tricky. Imagine choosing between an expensive but delicious chocolate cake vs. investing that money at the end of the month. Our brain screams at us to eat the cake. Loudly. The benefits of saving money are vaguer and will not be realized in the next year/5 years/20 years, whereas the benefits of eating the cake are immediate and obvious (to our brains, at least). We don’t realize that future happiness is worth the same as happiness today, but money is not.

This is why we need automatic processes to take these types of decisions out of our hands.

Certainty

The most obvious benefit of this type of personal finance structure is the certainty that comes with it. Paying yourself first ensures that, well, you get paid. Your debt gets paid off. Your bills get paid. You save money. You invest. Guaranteed. This isn’t the case with a traditional budgeting approach. 

Some would say, however, that a traditional approach has the potential to lead to more investment if you regularly end up with more leftover at the end of the month than you invest automatically. This is flawed reasoning. Paying yourself first still allows for excess savings at the end of the month. It just ensures some base level is guaranteed. You can also adjust how much is regularly saved if you find yourself with extra money at the end of each month.

This results in debts being paid off faster, no missed bills, more savings, and more investing. Sounds pretty good to me.

This certainty also has spill-over benefits. It makes forecasting easier, for one. Knowing when your debt will be fully paid, how quickly your savings pot will grow, how much you will have invested by a specific date is helpful, especially to personal finance nerds like me (and, probably, you). It’s hard to guess where you’ll be in 5 years financially if you don’t know how much you’re saving and investing. Bitcoin Paying yourself first fixes this.

Fundamentals

This technique is powerful. That’s why most people consider it to be a fundamental strategy of personal finance.

It is also congruent with some basic principles of personal finance: 

  • Don’t lose: primarily focus on not screwing up. Paying yourself first (done correctly) ensures that you don’t end up in a nightmare scenario like spiraling debt, not saving anything for retirement, having no investments, etc.
  • Automation: personal finance should be largely automatic. All transfers occur automatically at the start of the month in this system.
  • Simplicity: simpler is usually better. These transfers at the start of each month mean that you shouldn’t have to do any calculations, worry about if you can pay your bills that month, or transfer to various accounts throughout the month.
  • Think long-term: always think long-term, reducing poor decision-making and benefitting from the effects of compounding. As we have seen, taking the decision out of our hands means doing what’s best for us (saving instead of buying dessert) in the long term.
  • Focus on the bigger picture: applying the 80/20 principle by spending time on the things that really matter. Paying yourself first means that the basics of personal finance are in place. You can then build on these basics on your path to lifetime wealth creation.

Today’s post is contributed by Haydn Martin, a writer on personal finance, investing, and more! Haydn is a blogger who has started his own blog. 

How to Ask for A Raise and Motivate Your Boss To Help You!

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Let's start by saying that asking for a raise is a perfectly normal part of business life. It's business 101 for managers. Yet, for employees, the idea of asking and affecting the status quo of your employee/manager relationship fills many people with anxiety-inducing paralysis. Let’s start by saying that asking for a raise is a perfectly normal part of business life. It’s business 101 for managers. Yet, for employees, the idea of asking and affecting the status quo of your employee/manager relationship fills many people with anxiety-inducing paralysis.

Let’s destroy the “You vs. Them” dynamic and learn how to get your manager on your side when learning how to ask for a raise.

How to Ask for a Raise

First Things First – Prepare

If you are asking for a raise, you control when you ask. You have time on your side, so start doing your research and build your confidence.

  • Know Your Worth – Go through your responsibilities at work and ask can anyone else do this? Are you more uniquely qualified for essential tasks that set you apart? If they fired you tomorrow, what would it take for your employer to replace you? Take an objective look at yourself as how your employer sees you.
  • Create A List Of Accomplishments – Since your last raise, what have you accomplished? Did these accomplishments set you apart or go above and beyond your everyday responsibilities? Having this list of achievements could be key talking points. If your actions are helping improve the company’s productivity or increasing revenue, like starting a company blog, there should be more than a “good job.”
  • Use The Internet To Find Similar Salaries – Sites like Glassdoor and popular job boards regularly post salaries of similar positions in other companies. This easily accessible information can be a huge talking point in meeting with your manager. If your salary is lower than the listings your finding, your manager’s discussion should be on how to increase your salary to industry standard. Suppose your salary is higher than the industry average. In that case, you should be arguing how your responsibilities justify a higher pay or discuss title changes to put you in the next higher bracket.

When preparing for asking for a raise, try explaining what you do, your worth, and your accomplishments with a friend. If you can adequately explain what you do to a friend, you’ll be more prepared to explain it to your boss during your salary meeting sufficiently.

The Best Time To Ask For A Raise

Often people talk themselves out of something by saying it’s not the right time. However, when asking for a raise, anytime is the right time, after 12 months from your last raise.

Annual performance reviews and raises are ordinary meetings. If that’s not normal for your company, you should set up a yearly review with your manager to get feedback and create a forum for these discussions.

Particular Circumstances When To Ask For A Raise

  • After Completing A Big Project – If you just completed a big project, and it went well. It would help if you leveraged that win. It’s often a time to discuss bonuses or raises while spirits are high. It’s ingrained in humans to reward good behavior. Use that!
  • When Your Manager Is Happy – You will always get farther with happy people. However, when approaching your manager about a raise, make sure they’re happy with you and not simply happy about winning a golf tournament.

Set Up The Meeting

When you decide to ask for a raise, remember this is something you’ve been thinking about, but for your manager, it’s out-of-the-blue. If you ambush your manager, they may have a gut reaction to “NO” because it’s their job to maintain the status quo.

One of the more successful ways we’ve seen people approach their managers about asking for a raise is to start with an email to schedule a time to discuss, along with a few key arguments. An email is a controlled way to establish a future time to discuss salary, state a couple of big wins since your last raise, and most importantly, provides your manager time to mull over the idea.

Another benefit to sending an email to set up a time for a salary discussion is that you have the time to perfect the email. Take your time and make it concise. No need to send your manager a short novel on every reason you deserve a raise.

The primary goal of your email is to arrange a time to discuss your salary in person. A secondary goal is to mention your accomplishments, which you should only list 1-3 of these to keep the email concise.

Tips For Your Salary Meeting

Salary meetings don’t need to be adversarial. But rather a collaboration with you and your manager to get you to a salary you want. Here are a few tips on successful raise requests:

  • Don’t make it into a presentation – Your manager should already be aware of your accomplishments by working with you or highlighted them in your earlier email. It could be a simple paragraph “Hi! I wanted some time to discuss my salary as we haven’t met in over 12 months. According to Glassdoor and our competitor websites, here is the average industry salary for people in my position and responsibilities. I want to discuss how to get my salary closer to the industry average.”
  • Be Confident and Specific About Your Raise – Based on your research; you should have a specific number in mind to match similar positions at different companies. This number shows your manager you’ve done your research and gives them a firm number to work. Perhaps your number could be a little higher so you can negotiate down if needed.
  • Practice What You’re Going To Say – They say TED speakers practice 200 times before they present. For a compensation meeting, it’s more complicated because you don’t know how your manager will respond. However, you can still rehearse the main points with polish, such as “Why A Raise Now?”, “Why You Feel You Deserve A Raise?”, “How Can I Justify A Raise To My Boss?”.

If They Say No, Here’s What To Do

In the worst-case scenario, they say “no,” and that’s ok. The simple request of asking for a raise is a huge step in the right direction to increasing your salary. Here are a few tips if they say “no.”

  • Don’t Create An Ultimatum – Don’t force yourself into a corner by saying, “I’ll quit if you don’t give me this raise.” A manager may not have the resources in their budget to give you a raise. Then either quit to keep your word or lose credibility by staying. It’s best to ask for their reasoning and if you don’t like it, secretly start applying for other jobs.
  • Create A Plan For Another Raise Discussion in 6 Months – If your manager feels they can’t give you a raise right now, you should together set a hard time in the future to continue the conversation. This meeting gives you something to look forward to, knowing the conversation isn’t dead. Maintaining hard dates to continue a salary discussion keeps it top of mind for your manager. Remember, it’s always the squeaky wheel that gets cleaned.
  • Discuss Other Benefits That Can Make You Feel Rewarded – Perhaps there isn’t money in the budget to accommodate a raise right now. Other benefits may help you feel rewarded for your work.
    • Additional Vacation Time – Time off is a freedom that can be as beneficial as money. This benefit is sometimes far easier to grant employees when a raise isn’t in the budget.
    • Title Change – If your company can’t afford a raise, a title change may be a compromise. It’ll give you more prestige in your field and open up further salary increases down the road with a more prestigious title.
    • Work From Home Options – If more money isn’t an option, maybe you can work some of your hours at home. Working from home gives you additional freedom of spending time with your family and that time is priceless.

Make Asking For A Raise A Normal Thing

A raise shouldn’t be a “You Vs. Manager” ordeal. It’s a collaboration between you and your boss to give you’re the resources to feel appreciated for the job you’re doing. No manager wants to be the bad guy saying “No” to your raise, so find opportunities to work together to increase your salary to the industry standards you find on Glassdoor and adequately reflect your responsibilities.

For many people, asking for a raise is a terrifying experience, but it’s essential to know that raises are a normal part of business life. The mystery lies behind the closed doors where these discussions occur. Both you and your manager play their cards close to their chest while everyone wants to maintain the status quo. If you follow these steps, and with a bit of practice, you will master asking for raise.

There are always ways to make money outside of work, but asking for a raise is one of the easiest ways to make more money.

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What Car Should I Buy? Here Are 12 Factors to Guide Your Decision

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1. Your Budget

One of the most significant determinants of what kind of car you will buy is your budget. So many people wonder how much car can I afford.

A good rule of thumb is not to exceed 10% of your take-home pay on a car payment.

If you are paying cash instead of financing it, setting your budget to a vehicle that would have cost 10% of your take-home pay for a car payment is also a good idea. This way, you are not depleting your resources by buying a car that takes up too large of a portion of your total wealth.

2. Your Needs

Your vehicle can be a critical component for your job or side hustle. Therefore, it is essential to consider how far your commute is, and if you drive it during your work, this becomes even more important.

3. How Big does it Need to Be?

Do you need a vehicle to carry around multiple passengers? Do you need space for hobbies?

As a general rule, everything is more expensive with a larger car. Even the tires are more costly for a higher weight rating. So you will want to take into account how often you will be carrying multiple people or extra gear with you. For example, do you need an SUV rated for eight people when you have a family of four?

4. Fuel Economy

It would seem that fuel economy is often viewed with too much importance or not enough importance when purchasing a new vehicle. Usually, fuel economy is at the top of the list of important factors when buying a car or barely makes the radar.

The reality is that fuel economy can impact the total cost of ownership of your vehicle. To get an estimate for the cost of fuel on your car, you can look at the mileage on your current vehicle, subtract how many miles were on it when you bought it, and divide by the number of years you have owned the car. Once you know the average miles per year, you can divide by the average mpg of the new vehicle and multiply by the current price of fuel.

For example: if you have driven your current vehicle 65,000 miles in 5 years. That is 13,000 miles a year, or 65,000 divided by 5. If the new car you are looking at gets 25mpg, it would burn 520 gallons a year or 13,000 divided by 25. If the gas price is currently $2.75 a gallon, you would be paying $1,430 a year in gas for the vehicle, or 520 times 2.75.

In comparison, a car with 35 mpg would cost $1,021 a year in fuel. The result is over a $400 savings. Over five years, this will amount to $2,000 in fuel consumption.

5. Amenities

With vehicles, there are tons of trade-offs. Getting more amenities within your budget will likely mean getting a smaller car. The practical advice would be to get the best platform you can afford and skip the amenities. That would likely lead to buyer’s remorse, and you will be right back in the dealership looking for a new car in short order.

My advice is to figure out which amenities will make you feel good about your car. Don’t prioritize ones that will feel good to show off to your friends because that won’t last. In a year or so, they will be old news. You shouldn’t need all the bells and whistles to feel good about your car. Warren Buffet purchased the most basic Cadillac they would sell him.

It is ok to prioritize features that will enhance your driving experience. For instance, adaptive cruise control makes driving less fatiguing and road trips more enjoyable.

6. Edge Cases

A little consideration you should make will be edge cases. One example of an edge case would be to haul lumber or large items that you would infrequently order. It may be convenient to have a large vehicle to accommodate these cases, but it likely would be cheaper to pay the store to deliver the items.

7. The Future

How will your needs change over time? It is prudent to plan on keeping a vehicle for at least five years. In that time, are you planning on having children? Do you think there is a possibility that your job might change? Do you think you will want to start a side hustle that relies on driving around? All of these things can impact which vehicle you should choose to drive today.

As the price of fuel fluctuates, it can have an impact on your budget. If you purchase a vehicle that is not fuel-efficient, the effect on your budget will be much more significant. The psychological cost at the pump will also go up because when your fuel costs are impacting your whole budget, remembering how bad of gas mileage your vehicle gets will sting.

It is all will about reducing buyers’ remorse. The transaction cost of switching vehicles down the road because you are not happy with your decision will cost more to your overall wealth than even whether you got a “good deal” or not when purchasing the vehicle.

8. Style

You will be spending a considerable amount of time in your car. If you are not going to, then it is probably time to re-visit the decision of buying a car at all.

People think of their cars as an extension of their identities. For better or worse, this seems to be the truth of the matter regarding vehicles. If you

9. Electric or Not

Should you buy an EV or a gas-powered vehicle? There are a few questions to consider for this.

  • Do you routinely drive further than the EV’s range?
  • Can you charge your car at home?
  • Do you qualify for tax credits?
  • What will the fuel savings be?

After answering those questions, the pros and cons of an EV should be a little more clear to you. At the end of the day, it will likely come down to preferences. It is hard to tell what the future cost of gas will be over the next few years.

Any trip you have to make that is longer than the EV’s range will be a little more complicated than a gas vehicle.

10. Latest Safety Features

With innovations made over the years from crash testing, the field is a lot more even than it once was for physical performance during a crash. However, there are many advances in technology for electronic safety features.

Some of these features are blind spot detection, lane assistance, coll

I know I have benefitted from cross-traffic detection when backing up my minivan before. The cameras could detect oncoming traffic where it was in my blind spot. Even if the scenario would have otherwise resulted in me slamming the brakes after backing a little and seeing the traffic, being alerted before I even saw the oncoming traffic reduced stress.

11. Get Pre-Approved for a Loan

When you walk into a car dealership, there are so many variables at play. Which car is the right one for you? How much car can you afford? Can you get financing at a reasonable rate?

By getting pre-approved for a loan, you can answer your budget questions and get suitable financing before you ever step into the dealership. You don’t have to tell the car dealer you have been pre-approved for a loan either. That way, you can see what they offer you as well. FICO dictates that it counts toward the score as one pull if your credit is pulled multiple times for auto loans in 14 days.

Another advantage to getting pre-approved for a car loan ahead of time is that it will allow you to correct potential errors with your credit score. For example, if you apply for a loan and tell you your FICO is much lower than you expected, they will provide you with a copy of the credit report. Then you can look into getting these things fixed.

If you were at the car dealership in their finance office after you have agreed to purchase a car, there is a high chance you will take an alarming rate to continue with the deal.

12. The Test Drive

Test driving a car will give you a better opportunity to understand what it is all about than any stats on a webpage or photos of it could ever do.

When you narrow your search down to 3 different cars, call the dealerships up and schedule a test drive for each of them on the same morning. The morning is better if at all possible because the dealership will not be as busy.

After the Test Drive

After you have done the test drive, you should feel much more confident that the car is the right pick for you. Since you are pre-approved for an auto loan, you don’t need to negotiate with the dealer. Instead, you can focus on negotiating the price of the vehicle.

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12 Smart Ways to Make Your Graduation Money Work for Your Future

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12-smart-ways-to-make-your-graduation-money-work-for-your-future The average college graduate receives $1,847 worth of cash and gifts from family and friends. While it’s tempting to splurge all of it, your future self will thank you for spending it wisely. Don’t worry. With these 12 smart spending strategies, you’ll still be able to treat yourself while learning to be financially responsible.

1. Buy Discounted Gift Cards for Big Purchases

Courtesy Unsplash

If you’re going to make a big purchase like a new TV or laptop, consider buying a discount gift card to save money! Raise is one of many online marketplaces connecting people looking to sell their unwanted gift cards. You can score gift cards at stores you regularly shop in for up to 30% off.

2. Shop Through Cash-back Apps

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Back in your parent’s day, there were coupons. Today there are cash-back apps. So whether you’re buying work clothes, new electronics, or stuff for your apartment, these apps help your graduation money go further by giving you a portion of your total sale back. Check out Rakuten, Ibotta, Fetch Rewards, and MyPoints, to name a few.

3. Keep Control Over Your Spending

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While $1,847 is a lot of money, it can be gone before you know it if you’re not careful. Research has found that people tend to overspend when using debit or credit cards. If you’re starting to feel like your spending is out of control, try shopping with cash. You’re more likely to think twice about what you’re buying when you have to count out the amount due, which leads to less spending.

4. Set Yourself Up to Cook at Home

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Now that your college meal plan is gone, you’re going to find that food will be one of your three biggest expenses. The average American spends over $200 a month eating out! There’s nothing wrong with eating out here or there, but eating out every day and grabbing expensive coffee every morning is sure to bust your budget.

By taking $200 of your graduation money to buy an inexpensive coffee maker, pot & pan set, and other small kitchen items, you’ll be setting yourself up for not just healthy eating but responsible spending year-round.

5. Consider a Season or Annual Pass

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Are you a frequent visitor to an amusement park, museum, ski resort, or board game cafe? Consider buying an annual pass instead of sporadic day tickets to save money over the course of a year. Ask yourself these 2 questions to determine if you could save money with a season/annual pass to your favorite spots: How many visits do you need to go to break even on the pass cost? Will you actually go that many times? After doing the math, you might find it’s actually more economical to buy a season pass.

6. Set-up An Ergonomically Correct Home Office

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With work from home here to stay in some form, setting up a proper workspace must prevent painful and costly neck and back injuries. A survey from the American Chiropractic Association reported a surge in neck and back pain since people moved en masse from a home office to working from home.

Consider purchasing an ergonomic keyboard and proper desk chair. To keep more of your graduation money in your pocket, “raise your computer monitor to eye-level with boxes or books if you can’t buy a new desk,” said says Dr. Peter J. Scordilis, a Certified Chiropractic Sports Physician at Scordilis Family Chiropractic. “Whatever desk chair you use, make sure your feet can touch the floor and that you’re reducing stress on your back by keeping your knees at 90 degrees.”

7. Start an Emergency Fund

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Things are going to happen. Your car will get a flat tire, your phone might break, or your laptop stops working. Adulthood is full of unexpected expenses. Your future self will thank you for saving for a rainy day. Putting some of your graduation money into an emergency fund starts your financial future on the right track. It decreases the need to ask your parents for money or use high-interest credit cards to cover unexpected expenses.

8. Tackle Your Debt

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I know. Who wants to pay bills? But it’s the reality of becoming an adult. The cycle of debt can cost you thousands of dollars or more over time. It’s time to start paying down any credit card debt you may have incurred in college. Check out the back of your credit card statements to see exactly how much your purchases will end up costing you when you only make the minimum monthly payment.

9. Pay Down Your Student Loan

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According to the Federal Reserve Bank of New York, the average student loan monthly payment is $393. Before you know it, you’ll be required to start making those payments. Set aside some of your graduation gift money for the first couple of payments to ease into this reoccurring expense. The sooner you pay off your student loan, the sooner you’ll free up that money for other things in your life.

10. Start a Savings Account for Big Purchases

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Now that you’ve graduated, you’re probably going to want to buy some of those things you couldn’t afford while in school. It might be a dream vacation or a brand new car.

But it would be best if you had a plan. Start a sinking fund in high yield savings account with a portion of your graduation money. Determine how much you need for these things, and then you add a little more to the pot specifically for that expense every month. If your sinking fund meets the minimum requirements for a high yield savings account, be sure to put it there so your savings make a little money for you.

11. Invest in Yourself

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Now is the time to invest in yourself. The ROI will pay dividends for decades to come. Whether it’s a class to learn a practical skill like cooking or car repairs or a certification related to your career, now’s the perfect time to invest in new skills.

12. Put Your Money to Work

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After moving into your first apartment, funding your emergency fund, and paying off credit card debt, consider investing any remaining graduation money in the stock market.

Investing is one of the best ways to put your money to work for you, as the number of years you’re investing in the stock market matters. If you start investing $250 a month at the age of 22 and keep investing $250 a month until the age of $65, assuming an annual investment return of 8%, you will have more than $1 million in investments when you retire. Now, if you decide to wait to start investing until you’re 30 years old, well, that final number at age 65 goes down to just $539,088.23. It’s almost cut in half.

Go ahead and open your 401K through your employer or a Roth IRA through a brokerage account. The sooner you get started, the sooner you start making money from your money.

It’s time to take ownership of your finances and put your graduation money to work. You can do it—best of luck, Graduate!

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How to Protect Your Financial Future

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It is very important that you look after your financials and plan for your future accordingly. There are a few ways you can go about this while keeping in mind the sort of lifestyle you are hoping to achieve and maintain. It is very important that you look after your financials and plan for your future accordingly to protect your financial future. There are a few ways you can go about this while keeping in mind the sort of lifestyle you are hoping to achieve and maintain.

There is obviously your pension plan, which you do have to keep one eye on to make sure that it is on track for paying out the kind of money you would like it to. Despite a wealth of free information, like this from the USA Gov website, not many people know enough about their own pensions and what to do to make their financial future more secure.

In addition to this, there are other things you can do to help your financial future be what you want it to be.

Plan ahead

Make a plan of how you want to live in the future and work out the kind of outgoings this will create. Of course, you are unlikely to be able to work out the rate of inflation accurately, though there are places you can go on the internet where a rough guestimate is available. It may give you an idea of the sort of income you will require.

Start a saving fund

Start a saving fund. This can be in the form of another pension or as a separate savings account or other investment, and skim off any earnings you feel you can afford into it. If you are lucky enough to have had a pay rise but could live quite comfortably on the earnings you had before, perhaps putting the difference aside into a savings account may be the first step you need. Alternatively, starting a side hustle and putting the money away can offer the same results.

Make a strategy to pay off debts

Start making a strategy to pay off any outstanding debts or loans. You may find this easier to manage if you consolidate all your loans and credit cards into one, and you may save a bit of money in the process on interest payments. See this article for information on how your credit score could affect you.

Create your plan for retirement

Create your plan for retirement, work out when it is you are likely to retire and how much money you will have by then versus how much money you will want to have by then so you can start working towards your financial future.

Put your plans into action

Putting your plans into action is the final part, though you will have to keep track of how well you are doing and be prepared to change any of your plans as time goes on.

Obviously, there will be a time in life, albeit a short period, for example, where mortgages are paid off but income from employment is still present, when you may find that you have a little more money than previously. Make the most of these times, be money wise and invest what you can for your future.

Final thoughts 

The best way to go about your financial future is to plan it out and then work out what you want to happen. Once you have done this, you will be able to work backward to make sure that you hit every goal you need to hit to get to your desired destination. 

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The 9 Best Disney Channel Shows That Kids Love (And Parents Won’t Hate)

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Your entire life changes the moment you have kids. While most of us understand that becoming a parent will mean less sleep and lots of diapers, we drastically underestimate the amount of kids shows we will watch. Show let's explore the 9 best Disney Channel shows that us parents won't hate! Your entire life changes the moment you have kids. While most of us understand that becoming a parent will mean less sleep and lots of diapers, we drastically underestimate the amount of kids shows we will watch. Show let’s explore the 9 best Disney Channel shows that us parents won’t hate!

Your favorite shows will be replaced first by cartoons, then live-action kid’s programs, and finally by tween and teen sitcoms. The good news is that The Disney Channel has several kid-friendly shows that parents won’t dread watching too.

Watch these 9 Family-Friendly Disney Channel Shows to Bond with Your Kids

If your family is like mine, one of your favorite ways to relax at the end of a long day is to gather on the couch, turn on the TV and watch our favorite family-friendly shows. And before you start worrying about screen time, you can take a deep breath and relax. Shared viewing experiences, in moderation, can actually be a positive thing.

There are many benefits to watching TV with your kids, including opportunities to discuss your family’s values, having some family bonding time, and turning screen time into quality time with your child.

According to The Child Mind Institute, watching your kids’ favorite show along with them not only “brings you closer to your child at a time when they are becoming less likely to confide in you, but watching together can spark conversations about subjects or issues that they otherwise might not feel comfortable discussing with you.”

Many kid-friendly shows lack storylines or characters that adults can connect with. As a mom of two kids, I’ve had great luck finding fantastic family-friendly shows on The Disney Channel that the whole family can enjoy.

The Best Disney Channel Shows for Families: Sitcoms

While the Disney shows that you knew and loved as a kid, like “Boy Meets World” and “Doug,” are long gone, there are now plenty of series that are ready for the next generation to enjoy. No Disney Channel? No problem! Many of these shows are on other platforms like Disney Plus, Netflix, Prime Video, and the Disney Now app.

Here are nine shows from The Disney Channel that are kid-tested and parent-approved! So grab a bowl of popcorn and enjoy some couch time with your kids.

1. Tricked

Best for families with kids of all ages.

Who doesn’t love mind-blowing magic and hilarious hidden camera pranks? Well, this series combines both of them in one program that your entire family will enjoy. Watch as YouTube personality, and magician Eric Leclerc amazes kids and adults through his magic on the streets of New York and Canada. You’ll be in awe of his creative and amusing antics like floating popcorn, a chalkboard that solves math problems and creating friendship bracelets in his mouth.

2. Raven’s Home

Best for families with kids age seven and up.

This Disney Channel gem stars Raven Symone in a spinoff of “That’s So Raven.” This show shares the story of two single moms, who are also best friends, as they move in together to raise their children. The two moms have very different parenting styles, which pay off when dealing with three kids under one roof.

The show does a great job of incorporating modern challenges to allow families to discuss their values and priorities. Kids and adults will enjoy the hilarious antics and realistic scenarios.

3. Liv and Maddie

Best for families with kids age seven and up.

Liv and Maddie Rooney are teenage twins who are complete opposites. Maddie is a student-athlete, while Liv is a famous actress and singer. Dove Cameron from “The Descendants” fame plays both characters, amazingly. However, Liv and Maddie aren’t the only reason that your entire family will love this show. All of the characters in the series are hilarious and loveable.

The storylines are lighthearted, relatable, and totally entertaining. While Liv and Maddie are the stars of the show, their mom’s character will leave you all laughing hysterically with her comedic delivery.

4. Coop and Cami Ask the World

Best for families with kids age seven and up.

Coop and Cami Wrather are a brother-sister duo who have created the successful online show “Would you Wrather.” The savvy tweens harness the power of social media as they poll the show’s audience with this or that questions to make all of their decisions. From what they will eat for dinner to whether their mom should date the school principal, they always follow through with the results of their surveys. With a strong emphasis on family relationships and friendship, kids will enjoy the show’s events and characters, while the heartfelt and funny content will amuse parents.

5. Just Roll With It

Best for families with kids age seven and up.

Part sitcom and part improv, this family comedy series on The Disney Channel is like no other. The actors on the partially scripted show have arrived to film with their lines memorized in front of a live studio audience. Everything goes along as planned until the foghorn blast, and the audience gets to choose what happens next. No matter what the audience decides, the actors have to just roll with it and make it happen without any preparation.

The scripted portion of the show includes a heavy emphasis on themes that include blended families, step-parents, and other relatable issues that parents will appreciate. The series takes inspiration from “Whose Line Is It Anyway” and “Choose Your Own Adventure” books, and the result is an entertaining and engaging show that you’ll all enjoy.

6. Bunk’D

Best for families with kids age eight and up.

This popular series is the type of show that Disney is famous for. “Bunk’D” occurs at Camp Kikiwaka, where the CIT’s (Counselors in Training) are the main characters in the show. As you can imagine, a kid’s summer camp provides the perfect backdrop for tons of family-friendly episodes covering topics like roommates, rival campers, and mysteries in the woods.

7. Ride

Best for families with kids age eight and up.

American teenager Kit Bridge’s entire world changes when her family moves to England. Her father’s been hired at Covington Academy, an elite boarding school that she now attends. “Ride” is a funny, heartfelt series that focuses on the relationships and challenges that we all face as we navigate changes in our lives. Filmed in an actual castle in Northern Ireland, you will enjoy the scenery as much as you enjoy the series. Chosen by Common Sense Media as one of their top picks for families, this Disney Channel show is sure to become one of your family’s favorites too.

8. Secrets of Sulphur Springs

Best for families with kids age nine and up.

A new original series, “Secrets of Sulphur Springs,” is full of family-friendly mystery and drama. Set in the fictitious town of Sulphur Springs, Louisiana, the show tells the story of middle-schooler Griffin Campbell. The boy and his dad have moved into the supposedly haunted Tremont Hotel, which is full of adventure, including time travel, ghosts, and an unsolved disappearance.

The mildly spooky show has enough suspense and mystery to captivate adults and kids at the same time while avoiding blatantly scary scenes. The veil of secrecy surrounding the story’s events provides a sounding board for discussing the importance of forgiveness and honesty.

9. Sydney to the Max

Best for families with kids age nine and up.

This modern family comedy series follows the lives of tweenager Sydney, single father Max, and grandma (Caroline Rhea) as the three generations navigate life together. The plot follows outgoing Sydney as she struggles to understand why her overprotective dad throws down so many rules and guidelines for her to follow.

Embedded into the show are flashbacks to the 90’s showing Max and his mom navigating many of the same situations that Sydney is currently experiencing today. The show’s premise helps kids see that parents faced the same challenges growing up and that they really do understand what they’re going through.

Conclusion

While parents traditionally tend to avoid kids’ shows due to annoying songs and cheesy actors, these Disney Shows are actually enjoyable to watch together and present a comfortable way for parents and kids to talk about sensitive topics.

With a wide variety of options from sitcoms, mysteries, dramas, and reality shows, you’re sure to find something that your family will love and perhaps become part of your family’s weekly routine.

This post originally appeared on Your Money Geek

Most of us have to work a day job. We have bills to pay and mouths to feed. But that doesn’t mean we have to take whatever they offer us. Many companies offer incredible perks and benefits that help take the sting out of working.

The Best Perks at Work for 2021 – Everything You Need to Know

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Most of us have to work a day job. We have bills to pay and mouths to feed. But that doesn’t mean we have to take whatever they offer us. Many companies offer incredible perks at work and benefits that help take the sting out of working. Most of us have to work a day job. We have bills to pay and mouths to feed. But that doesn’t mean we have to take whatever they offer us. Many companies offer incredible perks and benefits that help take the sting out of working. Other perks at work seem nice on the outside but aren’t as great as the company makes it seem.

If you have options as to where to work, there’s a lot to consider regarding the offered perks. Sometimes you can even negotiate to get some of these sweet deals when the company doesn’t traditionally provide them!

What Are Work Perks?

Perks at work are the benefits employees get from working at a particular company or organization. Employers use perks in addition to compensation packages to recruit and retain the best and brightest employees.

Companies offer prospective employees a range of benefits for signing those employment documents. These might include traditional work perks like a hefty salary and pension plan or modern benefits like a retirement savings account and paid vacation time. These perks at work are generally considered part of overall compensation and not always considered perks. However, I’d argue that if you’ve ever worked retail and are moving into a position that offers these benefits, they are definitely perks!

How are Perks at Work Different than Employee Benefits?

Work perks and employee benefits can be interchangeable. When they aren’t, benefits are often used to describe compensation packages, and perks describe bonuses. Compensation packages include salary, healthcare, retirement accounts, employer matches, stock options, etc. Perks might consist of other things, like a daycare on-site, or flexible schedules, or even the ability to sleep or work out while on the clock.

What Are the Best Perks at Work?

It’s hard to say which perks at work are the best. Everyone values different things. Some may be thrilled to work at a place with a foosball table, while others want a high salary so they can build their FU fund. There is nothing wrong with either approach, but that makes it difficult to call one thing out as “the best.”

With that said, there are a lot of great perks you can get at work. It’s essential to determine which types of perks you value the most so that you can ask your recruiter or hiring manager about them during the hiring process.
Here are some perks and benefits that companies might offer to attract top talent.

Flexible Schedules

One of my favorite perks is the ability to have a flexible schedule. However, each organization has its own definition of flexibility. Some companies let you choose between different set schedules, like the traditional eight hours per day, five days per week schedule, or a four day per week, 10-hour schedule. They call this flexibility because you aren’t stuck working whatever schedule they give you. Although it’s nice to be able to choose, it’s not ideal.

Other companies have much better options for flexibility. They let you come in whenever you want as long as you get the work done. Or they let you decide to work 8 hours one day, then 10 hours the next to take a few extra hours off on a Friday night. Some even allow you to work remotely whenever you need to. The ability to do your work at your own pace is a great perk.

Childcare

One of the best perks a company can offer parents is onsite child care. Unfortunately, this one is tough to find. However, a company that provides it shows that it values women’s work and values families.

Childcare is one of the most significant expenses a parent will encounter. Working for a company that understands that and helps reduce that expense in any way is a huge perk. A company that offers free childcare on-site gives working parents a lot more flexibility at work. Some companies may not offer childcare, but they might reimburse some childcare-related costs. Anything a company does to help families is a valuable perk.

Tuition Reimbursement

With the exorbitant cost of college education, finding a company that will offer tuition reimbursement or helps you pay off student loans is a fantastic perk.
The Federal Government offers a student loan forgiveness program that pays off all of your federal student loans after ten years of government service. It can be challenging to qualify for this program, so please be sure that you read all of the fine print before deciding upon government service as a means to pay off your loan. Also, the loans have to be federal. Private student loans do not qualify for reimbursement under this program.

Many other companies also help their employees further their education. Some companies offer completely paid tuition at partner schools. Starbucks will pay for any of its employees to attend Arizona State University’s online program, for example. However, they don’t offer any covered tuition for any other schools or programs.
Other companies will give each employee a set amount of money for tuition reimbursement each year as part of a compensation package. UPS offers $5250 per employee per year, and Wells Fargo offers $5000. You will have to work with your hiring manager and HR representative at each company to determine how to apply for that company’s specific program. Still, it’s incredible to know that there are so many companies out there offering help for tuition.

Paid Time Off

Paid time off is my favorite perk at work because, let’s be real; if they weren’t paying me to be there, I wouldn’t be. It’s even better when work pays me NOT to be there, am I right?
No law in the United States guarantees any paid time off, so companies that offer comprehensive leave packages are the best places to work. Some offer both paid time off for vacations and paid time off for sick leave, while others lump all the time off together into one pool and call it “flexible time off.” I prefer them to be separate. It would be awful to plan a two-week vacation but then get sick a few weeks before and not have enough paid time off left for your vacation.
However, any paid time off is better than no time off. It’s a great perk when offered.

Healthcare

The healthcare system in the United States is a mess. It’s tied to employment, and that doesn’t seem like it’s going to go away anytime soon. The most significant benefit a workplace can offer is a comprehensive healthcare package that gives employees lots of options.

It’s wonderful to choose between HMO and PPO and pick the healthcare plan that works the best for you and your family. However, most people are limited by what their employers offer. By law, all large companies must offer some type of plan to their full-time employees, but that doesn’t mean the plan will be good. It’s important to discuss the healthcare plans and benefits with your hiring manager before accepting the role to ensure that it will meet your needs.

Discounts

One fun perk that some companies offer is discounts. Most companies will provide at least an employee discount at their organization, but some offer discounts for partner companies. The military is well known for getting deals in tons of places, from restaurants to retail to theme parks, but other companies can offer their employees similar perks.
Some companies sign up for overall discount programs for their employees. Great Work Perks is a website that any company can join to offer its employees discounts at various locations. There are quite a few different companies that offer bulk discount packages to corporations. That helps a company offer unique and exclusive benefits to its employees.

Wellness Programs

Many companies have realized that employee wellness is a huge factor in productivity and have instituted wellness programs to help their employees. These programs might include simple programs like gym reimbursements (or even on-site gyms) or more complex features like therapy sessions.

Many companies contract with employee assistance and wellness programs to provide confidential counseling in all areas of someone’s personal life. These might include financial, mental health, or relationship counseling, nutritional guidance, or even parenting help. A contractor administers these programs to ensure the confidentiality of any employees who use them.
I’ve used employee assistance programs to get free relationship counseling in the past, and it has been a godsend. Being able to seek out free, confidential help sponsored by an employer is a fantastic benefit.

Sabbaticals

One incredible perk that very few companies offer is the chance to take a sabbatical. Sabbitalcs are a once in a career break where you can research, explore, and do whatever you want for an extended time. Generally, it’s only available to tenured professors at prestigious institutions, but other companies may allow employees to take an extended leave of absence.
The difference between a sabbatical and an extended leave of absence is that most companies pay you while out on sabbatical, whereas with a leave of absence, your job is guaranteed when you return, but you won’t get paid while you are out.

It’s hard to find a company that offers a sabbatical, but if you do, be sure to take advantage of it!

What Are Some Perks at Work that Aren’t So Great?

When looking at perks with any new job offer, be sure to consider whether they really are perks or if they are insidious cultural expectations fancied up to look enticing. The office might have a free cafeteria, but do they expect you to work through your lunch or be available during dinner hours? There might be awesome-looking nap rooms available, but is the expectation that you will stay into the wee hours of the night to complete projects?

Some companies offer seemingly unique perks, like unlimited time off. However, be sure that the culture allows you to use perks like this. Sometimes, work perks are advertised, but the culture of the organization prevents you from using them. Unlimited time off seems like a great benefit, but you get chastised if you ask for even an afternoon off or told that “this isn’t a good time,” is it really a benefit? It’s important to know if you can use the perks at work before committing to employment.

Perks at Work Mobile App

As mentioned previously, many companies contract out their perks to a third party. Perks at Work is one such third party. It’s an employee perk program that you can access via a mobile app.
I like the perks at work app better than the other companies mentioned because it has more variety. It’s a discount app rolled into a wellness app that also offers personal development features. Employees can access a variety of online classes on countless topics. There are even programs available for kids.

Interestingly, there is space for a program like perks at work in today’s society. Businesses are learning that their employees need more – not only monetarily but also for their personal and professional development. This app fills that void, and companies that use this or similar programs prioritize the welfare of their employees.

How to Get Perks at Work?

Mobile app aside, it’s not always as easy as it seems to get access to some of the great perks and benefits discussed here. The companies that offer the most perks are trying to recruit and retain the top talent, which means that in-demand fields are more likely to be offered perks during the recruitment and hiring process.

The fact that a perk isn’t publicized doesn’t mean it’s not available. It never hurts to ask a potential employee if they offer a particular perk. Sometimes, this discussion of perks and benefits is part of the negotiating process. The company may not provide you a higher salary, but they can give you more time off or access to wellness programs that would cost more on their own.
If you are already making enough money, you may even prefer these benefits over a higher salary. It’s important to have these conversations before being hired or during your performance review with your boss if you’re already at a job you love. You never know what a company might be considering implementing, and having an employee ask might be the push they need to do it.

Getting the Perks You Deserve

Not all companies offer unique perks and benefits. Sometimes we need a job and need to take what we can get. But sometimes, we have choices and options. When you do, believe in yourself and your abilities. Know that the company needs you and is willing to pay to get you. Use that to negotiate for the perks that are most important to you.

This article originally appeared on Your Money Geek and has been republished with permission.

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What Can I Do to Repair My Credit?

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what-can-i-do-to-repair-my-credit Millions of Americans have unfair credit scores. They affect many spheres of life: borrowing, renting, insurance, and even employment! Mistakes always stem from flawed reports. Information collected by any of the agencies — TransUnion, Experian, or Equifax — may be the culprit. If your low score is a result of inaccurate calculations, follow our guide to raise it for free.

Premise of Repair

As all scoring systems are automatic, your total will rise as soon as the mistakes vanish. You must understand that only erroneous reports may be changed. If a derogatory is a fact, it will remain on your records for years — usually, seven. Bankruptcies may tarnish the status for a decade depending on the chapter filed.

Correction requires several steps. First, you need to obtain the data from all three agencies and pore over it. After finding the mistakes, you should collect sufficient evidence to prove them. Finally, you will communicate with the bureaus in writing to have the errors deleted. 

The complexity of the process prompts many Americans to opt for professional credit repair. Check reviews of the best credit repair services in your state to see how this works. Professionals can save you a lot of time and prevent re-disputes. 

Do not expect an overnight boost, though. Every dispute claim is investigated within 30 days. Afterward, the bureau accepts or rejects it. You may also be asked for additional proof, which delays removal. Find out more about the average total duration in different cases. Here are the key stages regardless of complexity.

1. Obtain Your Reports

Collecting the records is a breeze, and you can always check your credit score through mobile apps like Credit Karma. To download the documents from all three bureaus, visit www.annualcreditreport.com and submit a request. Only basic information is required, and the result is immediate. 

Alternatively, you could contact the organization by phone or send a written request. In this case, the data will be provided within 15 days. With the full reports on hand, you can proceed to the next stage — meticulous analysis.

Note that looking through all the records is essential. Each lender may share information with a specific agency. Any of the histories may be wrong. It means you may need to open disputes with one, two, or all three bureaus.

2. Scrutinize Your Histories

Look through all versions of your borrowing history carefully. Go line by line, checking all the figures and details. Mistakes range from wrong spelling to false events. You may even see a bankruptcy that never happened! Print out the reports and mark any inconsistencies.

3. Gather Evidence

For a mistake to be removed, it must be proved — contact your lender to collect sufficient information. Bank statements and other documents should make your claim persuasive. Upon receiving your request, the bureau will still communicate with the lender, but you have to include the evidence in your claim.

This stage is crucial. If the bureau finds your proof incomplete, it may request more information. Considering the length of every investigation (30 days), this will delay repair considerably. Consumers who use credit repair services have all the evidence collected for them. Professionals also send debt validation letters on their behalf. These oblige the lenders to prove their clients owe the amounts reported.

4. Open Disputes

The Consumer Financial Protection Bureau offers free guidance, and you can find free templates of dispute letters on its site. Formal correspondence must be sent by certified mail with a return receipt. This will provide hard evidence of communication. 

Knowing when your letter was received, you can understand when to expect a reply. In some cases, the investigation is extended from 30 to 45 days. Eventually, if the corrections are accepted, the bureau will mail you a copy of the revised report. This does not count as your free annual copy.

Experts recommend covering 3-4 errors in every letter. As you can see, repair may take months. The more often you check your credit reports — the easier it is to fix them. Hiring a repair firm will also speed up the process. Industry experts know which derogatories to target first and what evidence to collect. They will do everything on their behalf while you simply monitor the progress using a portal or an app.

When the Score Is Correct

So, what can be done if the score is perfectly fair? When it falls due to your own irresponsible behavior, the only remedy is changing your habits. The bureau will never remove any missed or late payments that are legit. However, there are several methods to try. For the best results, use them all simultaneously.

1. Credit Utilization Ratio

Credit utilization reflects the use of available limits. It only applies to forms of revolving credit — i.e., credit cards. The lower the indicator — the better. Experts recommend keeping it under 11%.

To establish your utilization, divide all the current balances by the limits. For instance, if you have four credit cards with a total limit of $10,000, and you have used $4,000, the ratio equals 40%, which is too high. To bring it down, you could pay off the balances (at least, partly). Achieving the target utilization of 10% would require a total balance of $400. 

Alternatively, request a limit increase. This will achieve a similar result. However, in our example, the size of your available credit would have to expand to $40,000, which is hardly realistic. So, extend the limits and pay off the balances at the same time. 

Finally, getting a new credit card is also helpful. If you do not qualify for a standard product, get a secured one instead. As it requires a deposit, lenders will be more willing to issue it.

2. Adding More Data

One of the bureaus allows consumers to include more information in their reports. Through Experian Boost, you could add utility bills and other payments — even your Netflix subscription — to gain a few points. According to the bureau, 10 is the average result. 

Final Words

To raise the credit score, you need to understand if it is fair. According to statistics, 20% of Americans have one or more mistakes on their records. Open disputes to remove verifiable mistakes, and rebuild your history if it is accurate. 

Combine different methods for quicker results. If you want to avoid the hassle of complex repair, hire a team of professionals and delegate the job. It is the most convenient and efficient approach. Choose your provider based on BBB ratings, customer reviews, and expert opinions. All of this information is easily accessible online. 

the-80-20-rule

The 80-20 Rule: How it Works & How to Apply it In Your Life

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Simply put, the 80-20 rule states that 80% of your outcomes (outputs) come from 20% of causes (inputs). Using the pea example, 80% of the peas eaten from the garden came from 20% of the plants. The 80-20 rule can be related to an old story. Legend has it that Italian engineer Vilfredo Pareto noticed something peculiar about the peas growing in his garden. Vilfredo recognized that approximately 20% of his pea plants were yielding 80% of the pea crop.

The engineer inside got the best of him, and he expanded this concept to macroeconomics, where he observed 80% of Italian wealth was and still is controlled by 20% of the population. In case you are wondering, Pareto did not create your favorite pasta sauce; instead, he is known for the infamous Pareto Rule, or what you might call – The 80-20 Rule.

You can 80-20 your life to create more money, time, and happiness. Today, we will show you exactly how to apply the 80/20 rule to your life, starting with the benefits and how the law works!

What is the 80-20 Rule

Simply put, the 80-20 rule states that 80% of your outcomes (outputs) come from 20% of causes (inputs). Using the pea example, 80% of the peas eaten from the garden came from 20% of the plants.

In business, the law states that you should focus your efforts on identifying the most productive 20% (clients, channels, sources of income) and spend 80% of your time there. You can use the popular 80/20 rule can be used to fit any facet of life, however, and many use it to help them strategize how they spend their time with regards to;

  • Health
  • Wealth
  • Business & Investing
  • Relationships
  • Habits

Mainstream examples of the 80/20 Rule

  • 80% of your business will come from 20% of your marketing
  • 80% of covid is spread by about 20% of people
  • 80% of crime is committed by 20% of criminals
  • 80% of car accidents are the result of 20% of drivers
  • 80% of worker productivity is completed by 20% of your staff
  • 80% of your business revenue will come from 20% of your clients
  • 80% of kids will do their homework, 20% will not
  • 80% of your side hustles will give you 20% of your normal income.
  • 80% of the team’s points came from 20% of the players
  • 80% of the clothes in your you will not wear, 20% will

Benefits of The 80/20 Rule

There always seems to be a trade-off in life, so introducing a new philosophy to how you operate makes it ok to be a little hesitant. The 80/20 rule typically leads to better results in the areas of:

  • Time management
  • Efficiency & productivity
  • Self-development
  • Fixing financial issues
  • Leadership

Take, for instance, time management. Using the 80/20 rule to manage your time better, you might find that you spend 80% of your time doing less important things instead of focusing on the top 20%. Knowing this, you can make a productive pivot to spend 80% of your time on the top 20% of your work or daily tasks!

The benefit of the 80/20 rule is essential for utilizing company funds correctly, making strategic decisions at work, but also how you spend time and money in your personal life! For example, perhaps you get a part-time job because you need more money. However, after looking at your budget, you recognize that 80% of your money will stuff that you don’t even enjoy!

In this case, you can make adjustments to spending, and now your understanding of how the 80/20 rule can positively impact you and your life is worth it. Below you will find some examples that can guide you in incorporating Pareto’s principle into your life!

How to Apply The 80-20 Rule in Your Life

Typically regarded as an economic philosophy, you can apply the 80/20 rule to anything in your life. Whether you’re looking to make more money, get in better shape, or expand your relationship with loved ones – Pareto’s law works.

Here are just a few examples of how to apply it!

Health

Have you ever heard the sentiment that hitting your health goals boils down to your eating habits? In fact, you may have heard that the key to getting a six-pack abdomen is 80% diet (hmm, wonder where this comes from).

Or what about the fact that it is estimated most endurance athletes operate in the moderate heart rate/effort zone 80% of the time? Needless to say, health is an area where you can apply the 80/20 rule to your life and see amazing returns!

Here are some ideas to help you use the 80/20 rule with health:

  • As long as you eat 80% clean and nutritious foods, you can eat what you want 20% of the other time
  • Instead of a complete diet overhaul, adjust you’re eating habits 12 out of 15 meals, or 80% of the time!
  • Runner? Spend 80% of your time running at a moderate rate, 20% of your time pushing yourself.
  • Looking to lift a lot of weight? Invest 80% of your effort moving moderate weight with perfect form!

Business, Wealth & Investing

Ever heard of the 80/20 budget?

In essence, the concept is very simple, spend 80% of your money on things you need, enjoy, and bills – just make sure you’re paying yourself first with the other 20%! Wonder where the concept of the 80/20 budget came from?

When it comes to applying Pareto’s law to your life, you can most greatly benefit from it in terms of business and money.

Case in point, in 2020, when the pandemic hit, I had a friend who owned an exterior remodeling business make a pivot in how he approached his business.

Completely unaware of the Pareto principle, he said, “80% of my money comes from gutters and roofs,” he continued and elaborated, stating, “And 80% of my headaches come from siding and window projects.”

His solution: He focused almost all of his marketing and production efforts on roofs and gutters.

After recognizing that most of his profit came from just two of his services, he doubled down using the 80/20 rule and was able to get rid of 80% of his problems while focusing more energy on the highest producing services. This is just one example of how applying the 80/20 rule to your business or investing can result in better outcomes!

Examples of applying the 80/20 rule in business, wealth & investing:

  • You’re a self-employed hairstylist, and you recognize that 80% of your profits come from the color and upkeep jobs, not the cheap haircut customers. It would be best if you doubled down on color and upkeep
  • In reviewing your investment portfolio, you recognize that 80% of your investing efforts are only resulting in 20% of your returns. Now, you know where to take your money – to the 20% producing 80% of your returns!
  • You recognize that nearly 80% of your sales come from 20% of your sales team in a leadership role. You now have two options: Double down on the 20% crew OR focus tons of effort in helping the 80% who seem to be struggling. At that point, you can determine whether it is a skill or will… or if perhaps parting ways makes more sense!
  • Follow the 80/20 rule to spending money – 80% of your money goes to bills and spending, at least 20% to saving… not food delivery apps 🙂

Relationships

You are who you associate with, for better or worse. The 80-20 rule is a great way to distance yourself from toxic relationships and increase time with those positive relationships you truly enjoy.

As it relates to Dunbar’s Numbers, we can only efficiently carry about 150 relationships at a time. You can absolutely know more people, but the minute you start spending time with one person – there is most likely a loss in time somewhere else, with someone else.

Know this and wanting to spend the most time with the most important people in your life, be sure to 80-20 your relationships. Identify where you want to spend 80% of your social and family time by figuring out the top 20% of people you enjoy the most!

Habits

Most people have to break their bad habits before they can start seeing the results they covet in their lives. What better way to do this than to apply the 80/20 rule to your daily habits!

Even though we mostly think we are in control of our lives, it is estimated that almost half of what we do is on autopilot. Nearly 45 of what you do daily is the result of habit – for better or worse. Knowing this, you might have some new habits you would like to introduce, but you want to be mindful that you don’t overdo them!

Examples of applying the 80-20 rule to your daily routines & habits:

  • Spend 80% of your time on your top 20% priorities
  • Figure out what 20% of possessions give you 80% of the most happiness, get rid of the rest
  • Perhaps you work from home, and you find that you waste 80% of your time, and you’re only productive 20% of the day – now it’s time to fix it!
  • Spend 80% of your day not on your phone, 20% or even less on your phone
  • Analyze hobbies and where you spend 80% of your time, ask if they’re where you really want to spend your time
  • Decide what brings you the most joy. Focus on that.

Final Word on 80-20ing your life!

When reading this, if you found yourself only reading 20% of this article, you’re like 80% of the world – most people read bits and pieces of a blog post or online article.

What you will now recognize is that the 80/20 rule permeates every fabric of our life. Whether it is the 20% of teammates that gets 80% of the sales or you crushing 80% of your health goals and being ok with the 20% you don’t, the infamous 80/20 rule is there…

The choice is up to you if you will apply it in your life to create the success you’re after!

FAQ 80/20 Rule Questions:

How does the 80/20 rule work?

80% of your outcomes (outputs) come from 20% of causes (inputs). A classic example of this is that 80% of work is done by 20% of employees. The 80/20 rule makes it easier to make choices, decide where to spend time, energy, and money.

What is the 80/20 rule in a relationship?

80% of your relationship will be great, 20% of it not so much! You can apply the 80-20 rule in all areas of your life, including relationships! You can also use the 80/20 rule in how you spend your time in relationships. Spend 80% of your time with the top 20% of your relationships!

What is the 80/20 rule for weight loss?

According to the 80-20 rule for weight loss, as long as you eat 80% good foods, the other 20% shouldn’t impact you that much. You don’t need to eat 100% healthy, just 80% of the time!

This article originally appeared on Your Money Geek and has been republished with permission.