Tag: Finance

How to Buy a HUD Home at the Hudhomestore Website?

by Phillip Warren

Using the Hudhomestore to buy a HUD home is easy.

If you’re looking to buy a HUD home, the Hudhomestore website is the best place to do it. It can be found here at hudhomestore.com. HUD homes are listed for sale at the site.

While anyone can buy a HUD home, you will need to get approved for a loan first.

Just like buying a house through the conventional route, all financing options are available for HUD homes. That includes conventional loans, FHA loans, VA loans, etc.

However, most people used an FHA loan to buy a HUD home due to its low down payment and credit score requirements.

If you have questions beyond buying a HUD home at the hudhomestore website, consult a financial advisor.

What is the Hudhomestore?

The hudhomestore is a website operated by the U.S Department of Housing and Urban Development (HUD). The website can be found here at hudhomestore.com.

Homes are listed there for sale after they have gone through foreclosures. Real estate agents and/or brokers can place bids on your behalf to buy a house.

What is a HUD home?

A HUD home (usually a 1 to 4 unit) is a property owned by HUD. Before a home became a HUD home, it was owned by a homebuyer who had purchased the home with an FHA loan.

Once the borrower stopped paying his or her FHA loan, the home went to foreclosures. Then the home goes to HUD and becomes a HUD home.

Why you should buy a HUD home at the Hudhomestore?

The benefits of buying a HUD home are huge. The main benefit is that most of these homes are priced below market value.

In addition, if you’re an EMS personnel, police officer, firefighter, or teachers, and live in revitalized areas and plan to live there for at least 36 months, HUD’s Good Neighbor Program offers HUD homes at a 50% discount.

This program is listed at the hudhomestore website.

In addition, HUD offers other perks such as low down payment and sales allowances you can use to pay for moving, repair and closing costs. The low down payment, that is on top of the FHA financing that you may be qualified for.

Another huge benefit of buying a HUD home is that HUD gives preferences to buyers who intend to live in the home for at least one year. So this puts you ahead of investors.

Are you qualified to finance a HUD Home?

All financing options, including conventional loans, VA, and FHA loans, are available when it comes to buying a HUD home.

But FHA loans are very popular among first time home buyers, due to its low requirements. But before you start searching for HUD homes through the Hudhomestore website, you should compare multiple loan offers so you can the best mortgage rates.

FHA loan requirements:

  • 580 Minimum score
  • 3.5% down payment

If your credit score is below 580, you can still be qualified but you’ll have to pay at least 10% down. Or, you can always take time to raise your credit score.

Don’t know what your credit score is, visit CreditSesame.

Our Review of Credit Sesame.

Steps to buy a HUD Home at the HUDhomestore website:

HUD homes can be hard to find if you don’t know where to look. In other words, they are not listed on conventional real estate websites such as Zillow or Redfin.

Instead, they are listed at the HUDhomestore webiste, which can be found at hudhomestore.com. They also have HUD Homestore Mobile Apps.

Knowing these steps is important to mastering one of the best strategies to buy a house at below market or wholesale prices.

Step 1: Shop and compare home loans

Before you start searching your house through the hudhomestore site, it’s a good idea to

The worst thing that can happen is to find a house that you like to then realize that you cannot secure a home loan.

To get the best mortgage rates, you need to compare multiple loan offers. Buying a home is major expense, and getting the best rates could save you a lot of money. I can spend a lot of time talking about why it is a bad idea to only speak with one mortgage lender.

But when it comes to having multiple loan offers, I highly suggest LendingTree.

LendingTree is an online platform that connects you to several mortgage lenders without visiting a dozen bank branches.

LendingTree will provide you up to 5 loan offers from multiple lenders for free, so you can compare and make sure you get the best deal.

So if you’re at this step right now, go and compare current mortgage rates for free at LendingTree, and come back to this article.

Our LendingTree Review.

Step 2: Finding a HUD Home at the HUDhomestore website.

To find a HUD home, simply go to the hudhomestore website. It can be found at hudhomestore.com.

There are three ways to find HUD homes on the hudhomestore website. The first way is through a map.

Once you on the website, you will see a map to the right with all of the states listed there. You simply look for your state and click on it to see all of the available HUD homes.

The hudhomestore site will show you a list of all of the HUD homes available for that particular state. It will include the photo of the HUD home, the address, the asking price, etc.

If you click on the photo of the house, you will be able to see more information of the property, including more photos, street views and information of the property.

Another way to find a house through the hudhomestore website is by clicking on the HUD Special program links.

The hudhomestore site specifically lists three HUD Special Programs: Good Neighbor Next Door; Nonprofits; $1 Homes-Government Sales. It specifically states on the hudhomestore website that if you click on any of these special programs, you will see available properties.

The third way to find a HUD home via the hudhomestore site is through the Search Properties. At the middle of the homepage, you will see a Search Properties where you can enter more detailed criteria.

Step 3: Buy your HUD home

Once you have found your desired HUD Home at the hudhomestore, it’s time to buy your HUD home.

But note that HUD homes are sold through an auction process. When you’re searching for the property through the hudhomestore site, it will tell you a deadline by which to submit your offer.

So if the deadline has not passed, submit your bid. Once it has passed, HUD reviews all offers. Just like any auction, the highest bid wins. If all of the offers are too low, HUD will extend the offer period and/or lower the asking price.

Note that you will not be able to place the bid yourself. Only real estate agents need to register to place bids on the hudhomestore website. You will need to find a real estate agent or you can specifically search for HUD registered agents at hudhomestore.com.

For more information on buying a home through the hudhomestore website, visit www.hudhomestore.com.

More on Buying a Home:

  • How to Buy a House: A Complete Guide
  • How Long Does It Take To Buy A House?
  • Buying a Home for the First Time? Avoid These Mistakes.
  • 10 First Time Home Buyer Mistakes to Avoid.

Work with the Right Financial Advisor

If you have additional questions beyond buying a HUD home at the Hudhomestore, you can talk to a financial advisor who can review your finances and help you reach your goals (whether it is making more money, paying off debt, investing, buying a house, planning for retirement, saving, etc).

So, find one who meets your needs with SmartAsset’s free financial advisor matching service. You answer a few questions and they match you with up to three financial advisors in your area. So, if you want help developing a plan to reach your financial goals, get started now.


The post How to Buy a HUD Home at the Hudhomestore Website? appeared first on GrowthRapidly.


Source: growthrapidly.com

How to Make Better Financial Decisions

by Phillip Warren
Woman learning how to make better financial decisions

A key financial decision people struggle to make is how to allocate savings for multiple financial goals. Do you save for several goals at the same time or fund them one-by-one in a series of steps? Basically, there are two ways to approach financial goal-setting:

Concurrently: Saving for two or more financial goals at the same time.

Sequentially: Saving for one financial goal at a time in a series of steps.

Each method has its pros and cons. Here's how to decide which method is best for you.

Sequential goal-setting

Pros

You can focus intensely on one goal at a time and feel a sense of completion when each goal is achieved. It's also simpler to set up and manage single-goal savings than plans for multiple goals. You only need to set up and manage one account.

Cons

Compound interest is not retroactive. If it takes up to a decade to get around to long-term savings goals (e.g., funding a retirement savings plan), that's time that interest is not earned.

Concurrent goal-setting

Pros

Compound interest is not delayed on savings for goals that come later in life. The earlier money is set aside, the longer it can grow. Based on the Rule of 72, you can double a sum of money in nine years with an 8 percent average return. The earliest years of savings toward long-term goals are the most powerful ones.

Cons

Funding multiple financial goals is more complex than single-tasking. Income needs to be earmarked separately for each goal and often placed in different accounts. In addition, it will probably take longer to complete any one goal because savings is being placed in multiple locations.

Research findings

Working with Wise Bread to recruit respondents, I conducted a study of financial goal-setting decisions with four colleagues that was recently published in the Journal of Personal Finance. The target audience was young adults with 69 percent of the sample under age 45. Four key financial decisions were explored: financial goals, homeownership, retirement planning, and student loans.

Results indicated that many respondents were sequencing financial priorities, instead of funding them simultaneously, and delaying homeownership and retirement savings. Three-word phrases like “once I have…,", “after I [action],” and “as soon as…,” were noted frequently, indicating a hesitancy to fund certain financial goals until achieving others.

The top three financial goals reported by 1,538 respondents were saving for something, buying something, and reducing debt. About a third (32 percent) of the sample had outstanding student loan balances at the time of data collection and student loan debt had a major impact on respondents’ financial decisions. About three-quarters of the sample said loan debt affected both housing choices and retirement savings.

Actionable steps

Based on the findings from the study mentioned above, here are five ways to make better financial decisions.

1. Consider concurrent financial planning

Rethink the practice of completing financial goals one at a time. Concurrent goal-setting will maximize the awesome power of compound interest and prevent the frequently-reported survey result of having the completion date for one goal determine the start date to save for others.

2. Increase positive financial actions

Do more of anything positive that you're already doing to better your personal finances. For example, if you're saving 3 percent of your income in a SEP-IRA (if self-employed) or 401(k) or 403(b) employer retirement savings plan, decide to increase savings to 4 percent or 5 percent.

3. Decrease negative financial habits

Decide to stop (or at least reduce) costly actions that are counterproductive to building financial security. Everyone has their own culprits. Key criteria for consideration are potential cost savings, health impacts, and personal enjoyment.

4. Save something for retirement

Almost 40 percent of the respondents were saving nothing for retirement, which is sobering. The actions that people take (or do not take) today affect their future selves. Any savings is better than no savings and even modest amounts like $100 a month add up over time.

5. Run some financial calculations

Use an online calculator to set financial goals and make plans to achieve them. Planning increases people’s sense of control over their finances and motivation to save. Useful tools are available from FINRA and Practical Money Skills.

What's the best way to save money for financial goals? It depends. In the end, the most important thing is that you're taking positive action. Weigh the pros and cons of concurrent and sequential goal-setting strategies and personal preferences, and follow a regular savings strategy that works for you. Every small step matters!

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Want to know how to allocate savings for your financial goals? We’ve got the tips on how to make financial decisions so you can be confident in your personal finance! | #moneymatters #personalfinance #moneytips





Source: feeds.killeraces.com

The ABCs of Financial Empowerment

by Phillip Warren

A quick Google search of ‘financial literacy’ will yield thousands of results, listing an infinite amount of do’s and don’ts that should (and shouldn’t) be followed to guide you along on your financial journey.

However, when you think of financial empowerment – what comes to mind? As defined by Merriam-Webster, empowerment is “the act or action of empowering someone or something: the granting of the power, right, or authority to perform various acts or duties.” No matter what your current sentiments are related to your finances, we will explore three key areas to not only embrace; but to help you prepare for a strong financial future.

Awareness

Now more than ever, we all have a laser-sharp focus on our money and where it’s being spent. The pandemic has generated a hypersensitivity to how we treat our finances while also determining what essential expenses look like and where they fit into our budget.

Before life as we knew it to be shifted, many of us don’t have to look too far back to remember a time where we didn’t check our accounts as often, our savings plan would fluctuate month-over-month or our emergency fund was used to bail us out of some impulsive spending.

To make sure those days are forever of the past, make it a habit to take inventory and audit all of your accounts. Take at least 15 – 30 minutes to review over any transactions and deposits across all active accounts. Not only does this help improve your self-accountability, but you are also able to make any disputes if anything appears incorrect and resolve quickly.

Another small but impactful tip is to acknowledge your financial health. What top three areas will be your main point of focus? If this is something you don’t know offhand, review your transactions from the last three months and categorize them. How much of your money went to impulsive buys or things that could have been purchased at a later date? Are you seeing an influx in overhead expenses or credit card payments? Are there any spending patterns you can explicitly see? Allow this exercise to serve as an eye-opening experience.

In order to determine where you want to be, you must first truthfully acknowledge where you are. This sets the blueprint and overall expectations with your personal finance journey. Knowing where you are may not feel pleasant but avoidance will lead to bigger consequences.

Betterment

Even though we don’t like to admit it, there’s always room for improvement and our finances are no exception. The first thing that guarantees mastery is actually following the budget that’s created. This serves as a guardrail – it’s used to keep us on track so we can greet our financial destination with open and inviting arms.

Once that’s in motion, explore ways to enhance your financial experience. Begin by automating recurring expenses, such as cellphone service or utility bills. That’s why it’s so important to be as honest and accurate as possible when setting a budget. Nothing should come to you as a surprise outside of any emergencies. When you trust yourself and the financial work you’ve put in, your finances have no choice but to follow suit.

If you haven’t already (or need to get back on track), work to beef up your emergency fund and savings account. Emergency expenses have a tendency to appear out of nowhere, so you want to dedicate a set dollar amount or a percentage every pay period. Setting up an automatic transfer to these accounts establish a routine while putting your mind at ease in the process.

Is there a hobby or skill you’d like to put to use and monetize? No matter how grandiose or small, this can definitely expedite achieving your financial goals. The money earned from a passion project can go toward savings, paying off debt or simply getting back to a place of comfort financially. Vacation funds or prepping for large purchases such as a car or home can also fall within this category. If you want to seek the assistance of a professional, search for financial advisors or coaches that could help you with reaching your goals. Preparation is key and your future depends on it!

Confidence

The foundation has been laid and you’ve been committed to crushing your financial goals. The budget and savings goals are in motion; so what’s next? It’s time to celebrate! Walk into your financial future with your best foot forward. When times seem bleak, remind yourself of your goals early and often.

Reinforcement such as daily reminders on your phone, having goals posted somewhere in your home you can see daily or reciting positive financial affirmations will serve as a second wind when you want to throw in the towel. Be sure to celebrate wins along the way such as debt payoff, reduction or hitting a new savings goal. Never been able to invest before and now you have the additional income to get in the game? Celebrate that!

The best way to generate excitement is to rally your family and get them involved. Create family challenges to get your children excited about saving funds and reallocating money. Come up with creative ways you all can commemorate knocking out a goal by ordering from your favorite restaurant or saving for a family staycation.

In order to walk in confidence, you have to build up the courage to begin no matter where you are or how many times you’ve had to start over. Each step counts – each successful budget, savings goal and consistent reduction of overall expenses. Be sure to keep in mind, financial freedom looks different for everyone and has the ability to pivot over time. While some may want to vacation throughout the year, save for their children’s college fund or wipe debt out completely, all are significant and take sacrifice. What is the key to achieving such a pinnacle level of confidence? Time.

 

Be kind to yourself and understand mistakes should never be equated to failures. Your commitment to this financial journey will always be rewarded.

The post The ABCs of Financial Empowerment appeared first on MintLife Blog.


Source: mint.intuit.com

How to Teach Your Teen to Budget Like a Pro

by Phillip Warren

It amazes us how quickly our girls are growing up. Next month when school starts up again, we’ll have a fourth-grader and a kindergartener.

Even though we have some time before they are ready to move out of the house, we want to spend time now prepare them for the big transition. As a parent, you probably feel the same way too. 

One crucial piece of a financial foundation kids and in particular, teens, need to master is learning to budget (and sticking with it),

While they’re home now, you have a fantastic opportunity to get them comfortable with handling their money.

If you’re not sure where to start, here are some tips from fellow parents and experts in the personal finance space to make teaching this life skill a bit easier less stressful for you and your teen!

Teach Your Teen to Budget for Real Life

Teens or not, whenever most people hear the word budget, they also hear the word ‘no’. To them, budgets feel like a strict diet. Just as fad diets fail, an unrealistic or extreme budget will more than likely discourage your teen and they will quit.

The first step before you even talk about the numbers is to discuss exactly what a successful and sustainable budget should be. When done right, a budget is something that helps you move your money towards your goals. Explain to them that at its root, budget is simply a plan about what they’d like to do.

You want a budget that can cover:

  •     Essential bills
  •     Future goals
  •     Discretionary expenses

When your teen’s budget covers those goals, they’re not only putting their finances in a good spot, but they’re moving closer to their specific long term dreams.

Creating a Doable Budget (They’ll Actually Enjoy!)

Once your teen(s) understands how a budget works, it’s important for them to create a budget that they can use in the real world. You can honestly budget however you want, but an easy budget to get your teen started is the 50/20/30.

Quite simplify, the 50/20/30 budget puts money into those three main buckets:

  •     50%  goes towards essentials
  •     20% towards savings (or investing)
  •     30% for fun and discretionary expenses

I appreciate how easy and flexible this budget can be. You can adjust the percentages for your teen’s needs, but it gives them some ballpark idea of how to portion their finances when they are out on their own.

How do you start them out on this budget?

With teens, you may have expenses like clothing or their cellphone bill count as essentials, or you may want to give your child the experience of being responsible for a small, shared family bill while they are still at home.

For older teens, you could even charge them a nominal ‘rent’ to offset their portion of the bills. In some cases, parents give that money back to their child as a gift to help with moving expenses (like for their security deposit) or use as additional savings. 

However you decide, talk it over so your teen understands why you’re doing it this way.

Share Your Family Budget

Creating a budget isn’t complicated, but it can difficult if your teen has no idea what to expect. Knowledge can be empowering.

While we may take it for granted since have to deal with the numbers, but your teen may not be aware of how much it takes to keep the lights on and roof over their heads. If you haven’t already shared your own budget already, now is the time.

Not knowing also puts them at a disadvantage when they start searching for a place or are comparing prices on expenses. Being armed with the numbers makes your teenager a more informed consumer.

When Your Teen Breaks Their Budget

Will there be times where your teenager will mess up with their budget? Probably so. However, that’s not necessarily a bad thing. As parents, we tend to want to protect our kids, but we also have to prepare them for the real world. As Ron Lieber, author of The Opposite of Spoiled, pointed out we should let our kids make financial mistakes. 

Wouldn’t it be better for your child to break the clothing budget while they’re still at home allowing you to help guide them through rather than having break their monthly budget while they are on their own and have bills to pay?

Mistakes will happen, they’re a part of life so giving your teen time to work those them and adjust their budget is a blessing for their future selves.

Essential Accounts for Your Teen  to Have

Since we’re talking about budgets, we should also mention some essential accounts you’d want your kid to have so they can practice managing their money.

Opening up student checking and savings accounts (usually free low on fees as well as not having minimum balance requirements) are good foundational accounts for your teen. They can deal with real-world situations pending charges, automatic transfers, and direct deposits.

As Family Balance Sheet founder Kristia Ludwick pointed out, teens should have the skill of balancing a checkbook even if they decide to go all-digital with their banking.

If they work, talk it over together and see if they can open up an IRA and start contributing. It doesn’t have to be much. The idea is to get them familiar and comfortable with the basics of investing.

Even if they put in $25 a paycheck, having them practice setting aside money in their budget for both long and short term goals is an invaluable lesson. You can also encourage them to contribute by offering a match for what they put in.

How Teens Can Easily Stay on Top of Their Money

With several accounts to keep tabs on, your teen is going to need an easy system to track their budget and goals.

With Mint, they can link up their accounts in one secure spot. They can also add their budget along with any savings goals they want to hit and make sure they stick with them.

Hopefully, these ideas and tips will make it easier to help your teen transition into a self-sufficient adult.

The post How to Teach Your Teen to Budget Like a Pro appeared first on MintLife Blog.


Source: mint.intuit.com

What Is A Blog, How Do Blogs Make Money, & More

by Phillip Warren

What is a blog and how does it work? Can you really make money blogging? How much do bloggers make?

Over the years, I have received many questions about blogging. People want to know what is a blog, how they work, is it really a way for people to make money, and so on. 

I completely understand all of the questions. While blogging has now been around for more than a decade, it's still a fairly new way to earn money. I still have people give me funny looks when I tell them what I do for a living.

But, I didn't really know what a blog was when I first started mine. I had absolutely no idea what I was doing.

I didn't know how people made money from blogs or anything else like that.

Pretty much everything I learned about blogging was through trial and error, and I made a lot of mistakes over the years, haha! Honestly, it's because of those mistakes that I'm where I am right now.

My life has completely changed because of blogging. I was able to quit a job I didn't love, I travel full-time, and I can retire pretty much whenever I want. 

It's funny to think about how far I've come, especially since I had no idea what blogs even were.

Back then, I also never realized that you could learn how to earn money blogging. I don't think I even looked into it because that was never my goal when I first learned how to start a blog. I certainly never thought blogging would drastically change my future, but I'm so glad I gave it a shot.

I had so many questions when I started my blog, and I learned 99% of what I know the hard way – by making mistakes.

I know that many new bloggers probably have some of the same questions I had because I receive hundreds of emails a day from readers asking how to start a blog, how to make a living through blogging, and more.  

Today, I'm going to help you by answering some of the most common questions I receive about blogging.

Some of the questions I talk about include:

  • Is 2021 too late to start a website/blog?
  • How do I come up with a blog name?
  • What blogs make the most money?
  • How do you design a blog?
  • How many views do you need to make money blogging?
  • How many blog posts should I have before launching?
  • How do I get my blog noticed by Google?
  • How long until a blog makes money?
  • How do blogs make money?
  • How do bloggers get paid?

I know that blogging can seem scary in the beginning, but remember that most other bloggers were in the exact same place you were when they started.

Blogging, just like any other hobby or job you start, takes time to learn what you're doing. You have to do research, read about what other people have done, and learn as you go.

For some people this can be frustrating at first, but good things always do take time.

Blogging isn't as easy as it looks from the outside. Even the most successful bloggers still spend time learning how to do new things. I am constantly signing up for new courses and learning from other people.

Even though it takes time and can feel difficult, blogging is something you can do. You can earn money blogging so that you can work towards living the life you want. 

One of the reasons I love blogging so much is that you can do it all on your own time. You don't have to learn everything at once. You can start your blog and grow it at your own pace.

While there is no 100% guarantee that you will be able to earn a full-time living by blogging, I know many bloggers who are full-time and are very happy with it.

Content related to what is a blog:

  • 12 Free Resources To Grow Your Blog Fast
  • How I Successfully Built A $1,000,000+ Blog
  • How To Quit Your Job And Become A Full-Time Blogger

What is a blog? And your other top questions about blogging.

 

What is a blog?

Before we begin, I want to go over what is a blog definition and some other basic blogging questions.

A blog is a website.

Google's definition of a blog is, “a regularly updated website or web page, typically one run by an individual or small group, that is written in an informal or conversational style.”

A blog is content that is written on a website. It usually consists of articles, like the one you are reading right now.

What is a blog used for? Blogs can vary from person to person. 

You may create a blog to journal, to teach on a topic, to sell something, to tell a story, and so on. There's no exact rules about what your blog has to be used for.

What is a blog post? Blog posts are individual entries on a blog. Blog posts usually include text, but they can also have photos, videos, infographics, and more.

An example of a blog post is what you're reading right now. There is a title, its own URL (that's the web address), and text where I share in depth information.

 

Is 2021 too late to start a website/blog?

No, it's not too late, and you haven't missed out.

The online world is still so new, and each year there are new ways to monetize and grow your blog.

For example, it wasn't until the past few years that companies and advertisers started realizing the value of online influencers, such as bloggers, and that means even more opportunities to earn money blogging.

Before that, companies mainly wanted to advertise with celebrities, but it is shifting to bloggers and other online influencers (such as Youtubers and Instagrammers!).

The online world is a huge place and it is just going to keep growing. Every blogger earns a living in slightly different ways, and everyone has a different message and story. Plus, there are so many different ways to earn money blogging, and the options have continued to change and grow since I started blogging.

Of course, because the blogging world keeps changing, there will constantly be new things for you to learn, but that will probably always be the case for managing any kind of business.

So, if you are thinking about starting a blog, today is the day. Don't let your fears hold you back any further! You can find my free How To Start a Blog Course here.

 

How do I come up with a blog name?

Deciding on a name for your blog is probably one of the hardest parts of blogging.

Even if you know exactly what you want to blog about and have some articles written, deciding on your blog's name may be stopping you from actually creating your website and launching it.

I don't remember how I came up with Making Sense of Cents, but I'm glad I did. It is still catchy, and I receive compliments on it to this day.

Coming up with a blog name shouldn't lead to stress, so here are my tips for deciding on a blog name:

  • Make it easy. My blog name isn't the easiest for people to spell, and even I sometimes jumble it when I'm spelling it. So, my top tip would be to make sure that your blog name is easy for people to type or spell out loud. I've seen blog names that are extremely long, contain words that are difficult to spell, and so on. Instead, you should make it as easy as possible for your readers to find you.
  • Think about what you'll be writing about. Think about the topics you want to write about, who your target audience is, and more, and then jot down descriptive words that are related to each. Brainstorming like this is a good way to come up with a blog name!
  • Use a thesaurus to find similar words. If your first or second choices are taken or if you want to see if there are some catchier sounding blog names, using a thesaurus can help you with some new ideas.
  • Make it catchy. You may want to think of something funny, use alliteration, or something else to make your blog name catchy and memorable.
  • Use your name. If you don't want something catchy and/or if you think you're not creative enough, then just use your name. It's super easy that way, and more and more people are starting to do this. 

See, creating a name for your blog can be easy!

 

What blogs make the most money?

There are many different types of blogs that make money, and you can monetize nearly any kind of blog.

So, how do you determine what to write about?

There is no right or wrong answer to this question. I always recommend creating a blog around a topic that you are passionate about, that you are an expert in, that you like, or something else along those lines.

This can make blogging feel fun instead of like a chore.

You can blog about several topics or you can blog about one specific thing, such as personal finance. For me, I cover a ton of different topics here on Making Sense of Cents. I talk about personal finance, life, travel, RVing, sailing, self-help, and more.

Some things that you may want to think about when choosing your blog topic include:

  • What are you passionate about? I always recommend that you start by thinking about what you love doing. Perhaps it's a sport that you really love, crafts, cooking, managing money, travel, or something else. Whatever it is, blogging about your passion is great because that will show in your writing, and your readers will enjoy reading your posts.
  • What blogs do you enjoy reading? If you are thinking about starting a blog, I'm assuming it's because you probably enjoy reading blogs yourself. If that's the case, then you may want to think about which blogs you really enjoy reading and possibly blog about something similar.
  • What are you an expert in? Now, you don't need to be an expert in your blog's topic to earn money blogging (more on that below in the next section), but if you are an expert at something, then this could be a topic that you blog about. There are many successful “How-To” websites because people love to learn new things through blogs. And, there is probably something you could teach (everyone's an expert at something, even if you don't realize that yet!). Think about the questions your friends and family are always asking you about, topics that you enjoy helping others with, and so on.
  • What things do you like learning about? Like I said above, you don't need to be an expert in a topic to blog about it. People LOVE reading blogs from people who are learning or trying new things. This is because everyone has to start somewhere, and people love following the journey and seeing how something is actually done. So, if you are learning how to earn money blogging, for example, that could be where you start your blog. You can write about all of your mistakes, talk about what you've learned, show how you have tried and reviewed different options, and so on.

To learn how to make money with a blog, your blog can be about anything and/or everything. It's entirely up to you.

Below is a list of possible blog examples and blog topic ideas. The list doesn't end here either. Choose one, all, or some. It's all up to you.

  • Lifestyle
  • Home
  • Family
  • Finance
  • Crafts
  • DIY
  • Small business
  • Outdoor activities
  • Fitness and health
  • Food
  • Inspiration and advice
  • Animals
  • Travel
  • Games
  • Relationships
  • School
  • Electronics, and more!

That's the beauty of having a blog – it can be about anything and you can still earn money from it.

There are a few topics I would avoid if you aren't an expert, like blogging about legal issues, tax issues, or medical advice. You could get someone in a lot of trouble if you gave them the wrong information.

 

What is the best blogging platform to make money?

Your blog should be self-hosted if you want to earn money blogging. This is actually one of the first things you should do.

I recommend that you start on self-hosted WordPress (this tutorial will help you start your blog the correct way). I cannot say this enough, but I do not recommend Blogger or WordPress.com (you want the self-hosted version, which is WordPress.org – confusing, I know). Buying that $10 domain name from Blogger or GoDaddy does not mean you are self-hosted either.

Unless you self-host your blog, advertisers, companies, and readers will still know you are on Blogger or free WordPress, and that can look unprofessional. Plus, your blog can be deleted at any time and for no reason if you are using a free version, which actually happened to me. Even though you may save some money in the beginning, not being self-hosted can hurt your chances of earning money through your blog.

Seriously, just trust me. Go with self-hosted WordPress, and it will significantly increase your chances of monetizing your blog.

If you want further proof, take a look at my past income reports. You can tell that my blogging income didn't take off until I switched to WordPress. That right there is a lot of proof that being self-hosted on WordPress is the way to go!

To recap, the positives of being self-hosted on WordPress through Bluehost include:

  • Your blog will look more professional meaning you will increase your chances of making money online.
  • You will have complete control over your blog.
  • You own your blog, and it can't be deleted for any reason.

 

How do you design a blog?

To create your blog, I recommend heading to my tutorial: How To Start A WordPress Blog On Bluehost.

After that, you will have three options when it comes to designing your blog:

  1. Designing your blog on your own
  2. Paying someone to design your blog
  3. Purchasing a premade theme (the quickest option and surprisingly affordable)

I usually recommend that a new blogger purchase a premade blog design, such as through Beautiful Dawn Designs. She provides great premade designs for just $45 and this is probably the easiest and quickest design option.

 

How much do I have to spend before I can earn money blogging?

When I first started my blog, I spent almost NOTHING on blogging expenses.

I spent less than $100 the first year and not too much more in the second year.

In fact, I probably went a few years when I was only spending about 1%-2% of my revenues on blogging expenses.

Now, some of my expenses include:

  • My computer
  • The actual blog (design, hosting, etc.)
  • Courses, guides, and ebooks
  • My email (newsletter) list
  • Virtual assistant and editor
  • Technical management
  • Transaction fees

But, you do not need to spend money on all of these things to earn money blogging.

Learn more about my expenses at My Complete List of Monthly Expenses for a Multi Million Dollar Blog.

 

How many views do you need to make money blogging?

You do not need millions of pageviews per month to earn money blogging, but if you want to increase your income, it will be important to increase your page views.

Every blog is different, and it isn't always the blogs with the largest number of readers that make the most money. That's because once you understand what your readers want, understand how to effectively reach out to companies for partnerships, and know how to charge the correct rate, you can make a good income online in many cases, regardless of the amount of pageviews you receive.

But, if you want to increase your pageviews, here are my tips:

  1. Publish high-quality blog posts. Readers come back to blogs with high-quality and helpful posts. I recommend that your blog posts be at least 750 words, but more wouldn't hurt either. The majority of my blog posts are around 1,500 to 3,000 words (this one is close to 5,000 words!).
  2. Be active on Pinterest. Pinterest is one of my top traffic sources. To increase your pageviews with Pinterest, I recommend creating great images, making sure the description and title of your images are catchy, pinning regularly, and only pinning long images. I use Picmonkey to edit all of my images and Tailwind to schedule them.
  3. Be active on other social media sites. Social media lets you interact with your audience more and can help you expand your audience. Besides Pinterest, you may want to check out Facebook, Twitter, TikTok, Instagram, Snapchat, Youtube, and others.
  4. Post regularly. If you want to earn money blogging, you should publish something at least once a week. Going for weeks or months at a time without a blog post can lead to readers forgetting about you.
  5. Network with other bloggers. You should look at other bloggers as friends and colleagues, not competition. This means you may want to interact with them on social media, reach out to them via email, attend conferences, and more. Of course, be genuine and give more than you take.
  6. Guest post. Guest posting is a great way to reach a new audience and helps build partnerships with other bloggers.
  7. Make sure it's easy to share your content. I love sharing posts on social media, but it gets frustrating when some blogs make it more difficult than it needs to be. You should always make sure it's easy for readers to share your content. This could mean making your social media icons easy to find, having all of the info input that is needed for sharing (title, link, and your username), and so on. Also, you should make sure that when someone clicks on one of your sharing icons the title isn't in CAPS (I've seen this too many times). No one wants to share a blog post when it sounds like you're screaming at them.
  8. Create catchy headlines. The title of your post is a major factor influencing whether readers click over or not. I like to use the CoSchedule Headline Analyzer to help me with my headlines.
  9. Learn SEO. SEO (search engine optimization) is not something I could teach in such a small section, but I recommend doing your research and learning more about what it is and how it can help you.
  10. Make it easy for readers to browse. If you want more pageviews, you should make it as easy as possible for readers to read your other blog posts. Readers should be able to easily find your blog homepage, categories, tags, search bar, and so on. Also, I recommend including links for related posts in every single one of your blog posts.

 

How often should I blog?

I recommend publishing a blog post at least once a week.

This is because consistency is important when it comes to blogging.

I started out publishing short blog posts a few times a week. Now, I try to do just one long blog post each week. I find that works best for me and Making Sense of Cents.

Others may decide to blog every single day, and some may try every other day. It all depends on what you would like to do.

 

How many blog posts should I have before launching?

I recommend simply just launching your blog with one blog post. You can continue to add more as you go.

I recommend this because you won't have a ton of readers in the beginning anyways, so just getting started is going to be your best plan of action.

Too many people overthink this question, which just delays them from actually starting their blog.

 

What is the ideal length for a blog post?

The ideal length varies. I usually recommend that a blog post be at least 750 words.

For Making Sense of Cents, my blog posts are almost always at least 2,000 words, and I have written some huge whoppers (like this one) that are around 5,000 words too.

The ideal length for your article will depend on your niche, and the topic that you are writing about.

 

How do I get my blog noticed by Google?

For your blog to be found on Google search results, you'll want to learn about Search Engine Optimization (SEO).

You can sign up for The SEO Starter Pack (FREE Video Training) – Level up your SEO knowledge in just 60 minutes with this FREE 6-day video training.

  • The exact template that helped my site earn $95,000 in affiliate income last year
  • How I grew my blog to over 80,000 page views a month in 14 months
  • How to Optimize a Blog Post for SEO

 

How long until a blog makes money?

This is a hard question to answer, and it's also one of the most common questions I receive.

As you can tell from my past income reports, it took me nearly a year of blogging to start earning a few hundred dollars a month from my blog. After two years of blogging, I was earning several thousands of dollars a month, which was all on the side of my day job.

I know some bloggers who were making thousands of dollars a month after just a few months of blogging. There are bloggers out there who began a year or two after me and are making hundreds of thousands of dollars a month. There are also other bloggers who aren't making any money at all.

As you can see, blogging is not a get-rich-quick scheme and there isn't a timeline for when you will start to earn money blogging. However, if you are serious about it, you never know what it may turn into.

It all depends on you, the effort you put into your blog, whether you have the time to learn how to monetize your blog, and more.

 

How do blogs make money?

There are several ways to earn money blogging, including:

  • Affiliate marketing – I recommend signing up for 10 Easy Tips To Increase Your Affiliate Income to learn more
  • Blog sponsorships
  • Display advertising
  • Product sales
  • Staff writing

I go in depth on each way monetization method here – How To Earn Money Blogging: Your Top Questions Answered.

 

How do bloggers get paid?

Many of you are interested in blogging, but you aren't sure where the income actually comes from.

How does the money actually get to you?

You receive blogging income from whoever is paying you.

  • If it is affiliate marketing you are providing, then you are paid by the company that makes the product or service. When someone buys something or signs up through your link, that's when you get.
  • If someone is paying you to place an advertisement on your website, then you get paid by the company who you are advertising for.
  • If you are publishing a sponsored post, then you are paid by the company who is sponsoring that post.
  • If you have display ads on your website, such as with Google Adsense, then you are paid by Google or by any number of other companies.

There are many companies and blogging networks out there that you can use to earn money blogging, and they usually pay you through PayPal or with a check in the mail.

 

What blogging ebooks and courses do you recommend?

It takes a lot of work to grow and build a successful blogging business!

If you want to earn money blogging, then you may want to look into buying ebooks and/or courses that will teach you about the topics that will help you become a better blogger from the very beginning. Plus, there are many blogging secrets that you just can't find by searching the internet. So, by taking a course or reading an ebook, you will learn the exact steps to take to help you succeed.

I'm almost always taking new blogging-related courses because I know that there is always something new to learn.

Here are the ebooks and courses that I recommend for bloggers:

  • Making Sense of Affiliate Marketing. I share my exact strategy and tips in this very informative online course. If you're a blogger, then you NEED this course. I show you exactly how to make passive income from blogging, even while you're sleeping.
  • 21 Strategies I Used to Increase My Monthly Page Views from 17k to 400k+ in 10 Months. Lena Gott's guide is full of great information on how to increase your blog's page views. If you are feeling stuck or if you are a new blogger, check out this resource! Lena went from 17,000 monthly page views to 400,000 and shares all of her best tips in this guide.
  • Making Sense of Sponsored Posts. I launched this course with my sister, Alexis of Fitnancials, in 2018 to help bloggers earn money through sponsored posts. Between the two of us, we earn around $20,000-$30,000 a month from sponsored posts. We teach finding sponsorship deals, maintaining partnerships, and how to always make sure that you are helping your readers.
  • My favorite Pinterest course is Pinterest Traffic Avalanche. This course shows you how to get free traffic from Pinterest to your blog. You'll learn about Pinterest SEO, how to set up Rich Pins, how to create viral content, how to make Pinterest images, all about group boards, and many other valuable Pinterest strategies.
  • If you want to learn about Facebook ads, I recommend reading How One Blogger Grew His Blog to Over 2 Million Visitors In A Year.

The blogging ebooks and courses above will help you to create a successful blog. They will show you how to master Facebook, get crazy traffic from Pinterest, grow your blogging income, and more.

 

If blogging is so great, then why doesn't everyone do it?

I hear questions like this pretty often. I also get a lot of people asking me, “If it's so easy, why don't you just start multiple blogs and make even more money?”

Blogging is not printing money.

It's not a scam, and it's not a get-rich-quick scheme.

Learning how to earn money blogging is work, and just like with all jobs – not everyone wants what you want.

And, for every successful blog out there, there are probably hundreds of bloggers who will never earn money blogging. While you can earn money blogging, not all bloggers will.

It would be like saying that 100% of people who start a business will see success. That is just never going to happen – businesses fail, business owners have a change of heart, and others just don't find it enjoyable.

I know I am always talking about the positives of blogging, but I also like to mention how it's not the easiest.

After all, if blogging was easy, then everyone would do it and everyone would make thousands of dollars a month.

But as you know, that's not the case.

Not everyone is going to earn money blogging because it is WORK! Most new bloggers quit just a few months in. A few months is not enough time to see if your blog will be successful. It took me six months before I started to earn money blogging, and I only earned $100. Now, I have made over $5,000,000 from my blog over the years.

It's funny/weird to think about what life would be like if I would have quit back then.

Just like you, I went from asking “what is a blog?” to where I am now. And, I'm constantly learning new things about blogging and that is one of the reasons why I enjoy it so much.

Once you realize that blogging is hard, you will be ahead of 99% of everyone else in the game. Don't assume, like most people do, that blogging is easy money.

Starting a blog can be difficult. But, all bloggers start at the same point.

I remember being so lost when I first started my blog. I had to learn everything the hard way – it sure was difficult at times.

But, I have always really enjoyed blogging. I think that is so important when it comes to this type of business – you either need to have passion in your blog and/or passion in what your blog allows you to do in your free time (such as travel or spending more time with your family).

 

Have other blogging questions?

Don't fret!

I have other blog posts similar to this one where I have answered many other blogging questions.

Please head to How To Earn Money Blogging: Your Top Questions Answered for answers to questions such as:

  • How does a blogger network with other bloggers?
  • What processes do you have with new blog posts?
  • In what ways can I start making money from a blog?
  • What is affiliate marketing?
  • What are sponsored posts?
  • What is display advertising?
  • Can I create my own product to sell on my blog?
  • Do you have to pay taxes on blogging income?
  • Where do you get your photos from?
  • Why do I need an email list for my blog?
  • How do you think of ideas for new blog posts?

I was going to include all of those questions here but that would have made this blog post well over 10,000 words!

What other questions do you have about blogging?

The post What Is A Blog, How Do Blogs Make Money, & More appeared first on Making Sense Of Cents.


Source: makingsenseofcents.com

Still Waiting on Your Second Stimulus Check? Here’s How to Track It

by Phillip Warren

The second stimulus check started hitting bank accounts last week.

That means many people who have direct deposit are waking up to find an extra $600 in their bank accounts if they’re single or $1,200 if they’re married, plus a $600 coronavirus credit for each dependent child 16 or younger.

But what if your second check hasn’t arrived? There’s a new way to find out when it’s coming.

Where’s My Second Stimulus Check?

The IRS released an updated version of the Get My Payment application on its website Monday, Jan. 4, that allows you to track your second stimulus check. You can use it on your computer, phone or tablet.

Here’s all of our coverage of the coronavirus outbreak, which we will be updating every day.

Click on the link, and then click the blue “Get My Payment” button. Don’t be surprised if you have to wait a couple minutes to get through. This corner of IRS.gov is getting a lot of traffic right now, because people really want to know when they’re getting their $600 stimulus check. When you do get through, you’ll get a warning that the system is for authorized use only. Click “OK.”

Next you’ll need to enter your Social Security number or Individual Tax ID number, date of birth, street address and ZIP code.

Once you submit your information, the website will tell you the date your payment is scheduled to be made and whether it will be by check or direct deposit. If it’s scheduled for direct deposit, it will tell you the last four numbers of the bank account it will be deposited into.

You can also use the tool to provide your bank account and routing numbers. If the IRS can’t pay you via direct deposit, you’ll get one via paper check or prepaid debit card. The first paper checks were sent last Wednesday, Dec. 30.

What if Something Is Wrong With My Payment?

What if you haven’t gotten the payment that should have been deposited already? Or what if your payment isn’t scheduled, or the wrong amount has been deposited? Check this FAQ page, but don’t bother trying to call the IRS right now.

If your payment hasn’t been made by Jan. 15, you’ll need to submit a tax return and get it in the form of a rebate recovery credit. The same applies if you were eligible for the first round of checks but didn’t received one, or if you got the wrong amount.

Payment status not available? Here’s what that means, plus a few hacks that worked in the first round.

Your coronavirus stimulus check is not taxable — so however you plan to spend that money, just know that you don’t need to save any of it for Uncle Sam.

Robin Hartill is a senior editor at The Penny Hoarder and a certified financial planner. She writes the Dear Penny personal finance advice column. Send your tricky money questions to DearPenny@thepennyhoarder.com.

This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017.


Source: thepennyhoarder.com

Best credit cards for young adults in 2021

by Phillip Warren

My colleague recently shared with me a question he’d received from our reader, Diana:

“Can you give me a clue of which credit card would be best for me? I am trying to build my credit to buy a home in the future. My score went up 34 points, I’m happy about that. My score’s at 654 right now. I would like a credit card with a low interest rate if possible. What would you recommend? I only have one credit card with a $300 credit limit. I’m almost finished paying it off. I only have a $100 left to pay.”

First things first, good job increasing your scores and setting such an amazing goal as homeownership, Diana! Continue paying down your card – you want your credit utilization (how much of your credit line you’re using) to be under 35% at all times. And make sure to ask for a credit limit increase to make that easier.

The biggest favor you could do yourself is to never carry a balance, since cardholders with fair FICO scores (under 670) can rarely count on low APRs, no matter the card.

As for the best card for you, I often get this kind of question from my friends – especially those in their twenties, who are either just starting out to build their credit or working on improving it after a few mistakes they’ve made. Since I’m a big credit card nerd, I love helping them out – and I’ll gladly help you out too.

In this article, I’m going to share the best credit cards for young adults, whether they’ve reached the good credit threshold or, like Diana, are only just getting there.

Secured Mastercard® from Capital One: Best for low credit scores
  • Discover it® Student Cash Back: Best for students
  • Chase Freedom Unlimited: Best for flat-rate cash back
  • Discover it® Cash Back: Best for bonus cash back
  • American Express® Green Card: Best for young professionals
  • Wells Fargo Platinum card: Best for financing a new purchase
  • Citi® Double Cash Card: Best for paying down debt
  • Secured Mastercard® from Capital One: Best for young adults with low credit scores

    Many young people may find it hard to qualify for the majority of credit cards when they’re just starting their credit journey or if their credit scores are on the low side. In this case, a secured credit card is a good option. It’s called “secured” because you need to secure it with a deposit to get approved. Typically, the deposit becomes your credit line.

    See related: What is the difference between secured and unsecured debt?

    My recommendation here is the Secured Mastercard from Capital One. I may be a bit biased because this was the secured credit card I’d chosen, but I couldn’t be happier with it. The initial security deposit is low (up to $200, depending on your credit), and you get a $200 credit line to start.

    You can get access to a higher credit line after six months of on-time payments without paying more toward the deposit, which is a requirement many other secured cards have. There’s also no annual fee.

    Additionally, the Capital One Secured is easy to upgrade. True story: After a year and a half of card membership, my credit limit was raised from $500 to $1,500 automatically. That led me to believe that Capital One was happy with me. So, I called the issuer and asked if I could upgrade, and after a five-minute conversation, my secured card was upgraded to the cash-back earning Capital One Quicksilver Cash Rewards Credit Card.

    It’s important to note, though, that Capital One doesn’t offer a standardized schedule for upgrading from this card, so my experience might not be true for everyone. Even taking this into account, the Capital One Secured is still a solid choice for building your credit when it’s not in the best shape.

    Discover it® Student Cash Back: Best for students

    If you’re working on your degree, why not work on building your credit at the same time? The Discover it Student Cash Back card is a starter credit card designed for students with no credit history, and it offers you an opportunity to learn how to use credit while you complete your college education. Plus, you’ll earn cash back rewards.

    The Discover it Student Cash Back card comes with a number of benefits, including no annual fee and no late fee on your first missed payment (after that, up to $40). (But please, don’t make late payments a habit. Trust me.)

    You can also earn 5% cash back on rotating categories that you enroll in each quarter – for up to $1,500 in purchases per quarter, then 1% – so go ahead and buy all the study snacks you can afford. You’ll earn 1% cash back on all other purchases, as well as a $20 Good Grade Reward every year you keep your GPA above a 3.0 (for up to 5 years). If it’s your first year as a cardholder, you’ll also get Discover’s famous Cashback Match.

    See related: How to build credit as a college student

    Chase Freedom Unlimited: Best for flat-rate cash back

    When you’re in fair credit territory, more credit card possibilities become open for you, including cash back credit cards.

    There are a few 1.5% cash back credit cards on the market, and they all can bring simplicity and solid rewards into your cash back game. For this purpose, they’re all great options, but I’m picking the Chase Freedom Unlimited in this category because when it comes to credit cards, you need to think long game.

    The Chase Freedom Unlimited can help you enter the world of Chase Ultimate Rewards, one of the most valuable reward currencies in the credit card market. This means that you can use your cash back as points that can take you far if you love traveling. Further down the road, as your scores improve, you can get the Chase Sapphire Preferred Card or Chase Sapphire Reserve and get even more value out of your rewards, as well as some amazing travel perks.

    Not too bad, right? Besides the 1.5% cash back on general purchases and a ticket to the world of travel rewards, the Chase Freedom Unlimited will also get you:

    • 5% cash back on Lyft purchases (through March 2022)
    • 5% cash back on travel purchased through Chase Ultimate Rewards
    • 3% cash back on dining
    • 3% cash back on drugstore purchases

    Discover it® Cash Back: Best for bonus cash back

    While we’re still in the fair credit territory, I’d like to also recommend Discover it Cash Back. Technically, it requires a good credit score, but I was able to get it with a FICO score of 660 based on Experian data. Although that might have something to do with the fact that I also have a savings account with Discover, it’s still proof that you may have a chance to get approved with fair credit.

    Like the student version of the card, the Discover it Cash Back earns 5% back in rotating categories after activation (up to $1,500 in spend per quarter, then 1%). The Discover cash back calendar stays rather consistent, but the issuer may change things every once in a while.

    American Express® Green Card: Best for young professionals who travel for work

    When you reach a good credit score, it can be a good time to consider a travel credit card.

    The American Express Green Card can be a good entry-level travel card. It offers bonus points on travel, restaurant and transit spending (including ride-share services like Uber and Lyft), making it a great choice if you enjoy going out after a long day at work.

    It also comes with a great welcome bonus of 30,000 points for cardholders who spend $2,000 in their first three months, worth about $300 in travel booked through the American Express travel portal. You can also transfer Amex Membership Rewards points to a number of travel loyalty programs at select airlines and hotels at a 1:1 rate.

    Along with requiring good to excellent credit to qualify, though, the American Express Green Card carries a $150 annual fee. If you don’t do much traveling or eating out or if you use transit services only rarely, it will be tough to make up the cost of the annual fee.

    Wells Fargo Platinum card: Best for financing a new purchase

    Let me tell you something: Being in your twenties is expensive. You might need money for a new professional wardrobe, for example, or to furnish a new apartment. Maybe you need to cover the costs of a move – or a marriage. Luckily, for this kind of expense, there’s a 0% introductory APR card that gives you time to pay off your balance interest-free.

    If you have the good to excellent credit needed to qualify, the Wells Fargo Platinum card is an excellent choice, thanks to its 18-month 0% intro APR on both purchases and qualifying balance transfers, with an APR of 16.49% to 24.49% variable thereafter.

    If you’re looking to earn rewards on your purchases, it’s probably best to look elsewhere. But if you want to pay off your purchases without paying interest, you’ve come to the right place.  Just do your best to pay off your new purchases or transferred balance in full before the end of the promotion period to minimize interest charges, and make sure you pay at least the minimum due every month to avoid damaging your credit score.

    Citi® Double Cash Card: Best for young adults paying down credit card debt

    One of the biggest credit card fears is that of credit card debt. It’s easier to get into credit card debt than many people realize. And given how high credit card interest rates can get, it can be very hard to get out of. That’s where the Citi Double Cash Card comes in. Transfer your existing credit card balances to this card, and you’ll get 18 months to pay them off, interest-free (variable APR of 13.99% to 23.99% thereafter).

    Not only can you use this card to chip away at debt, but you can also enjoy lasting value thanks to its terrific ongoing cash back rewards program. You’ll get up to 2% cash back: 1% when you buy and 1% when you pay off those purchases, with no need to track spending or enroll in rotating bonus categories. This makes the Double Cash Card one of the best flat-rate cash back cards on the market and a smart long-term choice, even after you’ve taken advantage of its balance transfer offer.

    Unfortunately, as with many balance transfer cards, the Citi Double Cash Card charges a balance transfer fee of 3% (or $5, whichever is higher). Be sure to use a balance transfer calculator and crunch the numbers to see if this makes financial sense for you.

    You’ll also need excellent credit to qualify for the Citi Double Cash Card, so if your credit score has already taken a hit due to late payments or maxed-out cards, you may want to consider another option.

    See related: How to consolidate credit card debt

    How to choose the right credit card

    When you’re trying to decide whether a credit card is right for you, ask yourself these three questions:

    • What am I hoping to get out of this credit card? A better credit score? Rewards for travel spending? An opportunity to pay down debt? Knowing what you want from a credit card will help you narrow down your options.
    • Is this credit card designed for people who spend like me? If a credit card offers a bonus for cardholders who spend $4,000 in three months, for example, ask yourself if that matches your current spending habits. If a card offers rewards on restaurants, ask yourself how many times you dine out every month. If a card comes with a $95 annual fee, ask yourself whether you can afford that payment.
    • Can I get this card with my current credit score? If you don’t already know your credit score, you might be able to find out through your bank – but you can also use the CardMatch tool to see cards that are a good fit based on your credit profile. Additionally, you may be able to take advantage of preapproval or prequalification via an issuer’s website to see if you have a good chance of being approved for a specific credit card.

    Comparing the best cards for young adults

    Here’s a quick breakdown of the top picks for credit cards for young adults. Whether you’re just getting started with credit, working to rebuild your score after a few missteps or are ready to take advantage of your top-notch credit history to earn rewards and luxury perks, you should find a card that fits your needs.

    Card Rewards Annual fee
    Secured Mastercard® from Capital One None $0
    Discover it® Student Cash Back
    • 5% cash back on rotating quarterly bonus categories, up to $1,500 per quarter, then 1% (enrollment required)
    • 1% cash back on other purchases
    • Matches cash back at end of first year
    $0
    Chase Freedom Unlimited
    • 5% cash back on Lyft purchases (through March 2022)
    • 5% cash back on travel purchased through Chase Ultimate Rewards
    • 3% cash back on dining
    • 3% cash back on drugstore purchases
    • 1.5% cash back on all other purchases
    $0
    Discover it® Cash Back
    • Enroll every quarter to earn 5% cash back on up to $1,500 in purchases in various categories throughout the year
    • 1% cash back on general purchases
    $0
    American Express® Green Card
    • 3 points per dollar on travel, transit and dining worldwide
    • 1 point per dollar on other purchases
    $150
    Wells Fargo Platinum card None $0
    Citi® Double Cash Card
    • 1% cash back on everything
    • 1% cash back as you pay off those purchases
    $0

    Final thoughts

    Credit cards can be intimidating, but don’t let that put you off from applying for a card that can help you earn rewards, boost your credit or help you cover a large purchase. The more you use credit cards, the more comfortable you’ll feel using them.


    Source: creditcards.com

    National Get Smart About Credit Day

    by Phillip Warren

    Depending on the time period in which you were raised, many young children and adolescents had differing opinions (and ideals) about what credit was and how it should or shouldn’t be utilized. While some were privileged enough to understand the complexities and importance of credit, others had to learn at the expense of their own mistakes along the way. No matter where you were or where you are currently, luckily there are always actionable steps that can be taken to clean up, improve, and get smart about your credit – let’s explore. 

    Become familiar with what can impact your credit 

    There are five key components that are factored into your credit score. 

    Payment history 

    Your ability to make timely payments plays a huge role in your credit score. Lenders want to have the confidence that you as the borrower are capable of paying back any debts on time. If there is ever a situation that can impact your payment history, it’s best to notify your lender as soon as possible to avoid any negative remarks on your credit report.  

    Credit utilization 

    In order to determine your credit utilization rate, divide the amount of credit currently in use by the amount of credit you have available. For the best possible scores, keep this percentage under 30%. This shows creditors you have the ability to manage debt wisely. To optimize and improve your score, make it a goal to utilize less than 10% if possible.   

    Length of credit history  

    Lenders will take an account of all creditors and the length of time each account has been open. In order to improve this average, try your best not to close any accounts as this can have the potential to decrease your overall credit score.  

    Credit mix  

    Car, student loan debt, mortgage, and credit cards are all varying types of revolving and installment loans. Lenders view this as favorable when you’re able to manage different types of credit. A good rule of thumb for using a credit card is charging a small amount each month and paying it off in full to avoid any interest payments. Not only does this impact your score positively, but it also creates good habits that don’t require you to solely rely on credit cards for purchases.  

    New credit 

    Any time you apply for credit, you’re giving lenders the right to obtain copies of your credit report from a credit bureau. Soft inquiries do not have an impact on your score, such as pulling your own credit report or a potential employer pulling your report as a part of the screening process. Applying for a new credit card, requesting a credit limit increase, financing a car, or purchasing a home are all examples of hard inquiries. For processes such as auto purchases, student loans, or mortgages these are typically treated as a single inquiry if done within a short scope of time such as thirty days. Be mindful of the number of inquiries outside of these scenarios – this mainly relates to retail store credit cards. Inquiries have a greater impact if you have a short credit history or a limited amount of active credit accounts.   

    Review your credit reports and dispute errors if necessary 

    Carve out some time to obtain a free credit report from one of the three credit bureaus (Experian, TransUnion or Equifax) to review. Familiarize yourself with everything that is listed. In the instance something doesn’t appear correct, follow the proper protocols to dispute errors. Completing this exercise at least once a year after initially cleaning up any errors can help correct any mistakes, but also ensures accuracy. The credit reporting agency and the lender must be contacted in order to jumpstart the process of resolution. Even in the instance, there are no issues found, you’ll have peace of mind knowing the due diligence has been done.  

    Communicate and be honest with all creditors 

    If you are experiencing any type of financial hardships due to unforeseen circumstances, make it a priority to communicate upfront with all creditors. Explaining your personal situation while proposing reasonable solutions may work in your favor. Refrain from avoiding creditors due to emotional reasons or negative thoughts; your pride cannot overshadow your personal needs. When discussing finances, most of us don’t want to disclose any personal information – however, if this can result in bettering your personal finance journey and credit score simultaneously; there’s no way to lose. Make your requests known and be proactive so the best solutions can be provided.  

    Create a plan and remain completely committed 

    Commit to at least three goals that relate to improving your credit. This could simply start with paying all of your bills on time and regularly checking in with creditors to ensure good standing. If credit card spending is a challenge for you, commit to limiting your credit card usage while paying more than the minimum balance. Rally the assistance of your family and friends to serve as your accountability partners to make sure you achieve your goals. No matter the personal goals you decide to set, commit to staying the course. Often times our personal lack of patience leads us to believe that the hard work that’s being put forth is in vain. If nothing else, commit to improving your credit for you and your families’ wellbeing.  

    Protect your hard work (and your credit) 

    Once your new credit score emerges and is here to stay, the first order of business is to celebrate – congratulations! Your hard work and dedication have indeed paid off. In order to make sure your credit score stays in tip-top shape, don’t be too quick to take your foot off of the gas just yet! Be sure to stay informed about any tactics or strategies to keep your credit score in the best shape possible. We’re all on our phones throughout the day, so make it a regular occurrence to do a quick internet search on ways to improve your credit score. Continually staying educated about various credit improvement opportunities  

    The post National Get Smart About Credit Day appeared first on MintLife Blog.


    Source: mint.intuit.com

    Should you get an MBA if you want to start your own business?

    by Phillip Warren

    The path to owning my own business started around 10 years ago. I graduated from high school and went on to college for business. I graduated, got a job as a financial analyst, and then around five years ago, completed my MBA with an emphasis in Finance.

    Should you get an MBA if you want to start your own business? Is it a need? Or, can a person start a business without a college degree?It seemed like a logical path – graduate from high school, go to college, get a job in that field, and then get my MBA to further my career opportunities.

    It was the path I fell into, and I never really gave it a second thought. For my MBA, I figured I needed it in order to be successful in the corporate finance world.

    However, I'm now a full-time blogger.

    One of the questions I'm often asked is if I regret going to school for so many college degrees (3). After all, it took a lot of time and led to a significant amount of debt.

    I definitely did not learn a thing about blogging back in college, and an MBA isn't 100% focused on the topic of starting your own specific business, especially a niche one. Plus, I did not get my MBA thinking that I would be starting my own business. I went for it to better my career opportunities.

    Related content:

    • How I Paid Off $40,000 In Student Loans in 7 Months
    • Cutting College Costs: Understanding The Cost And Value Of Your Degree
    • Learning How To Survive On A College Budget
    • How I Graduated From College In 2.5 Years With 2 Degrees AND Saved $37,500

    According to the U.S. Small Business Administration, there are 28.8 million small businesses in the United States, which make up 99.7% of all U.S. businesses. And, a huge number of the population are starting their own business and working for themselves.

    But, does that mean they all need or have an MBA?

    Remember, an MBA is not required when starting your own business. But, does that mean that those without an MBA do better or worse?

    I researched to see what the value of an MBA is, and I was able to find a great chart from the U.S. Bureau of Labor Statistics about unemployment rates and earnings by educational attainment for 2016.

    This data shows earnings for full-time wage and salary workers, but it doesn't specify those who have started their own business. However, it does show that there is some value in a Master's degree.

    According to this chart, the unemployment rate is much lower for those with one or multiple college degrees. The median usual weekly earnings tends to increase as well.

    However, according to a report released by the Harvard Business Review, most of the top business leaders in the world actually do NOT have MBAs. In fact, only 29 of the 100 best companies had executives with MBAs, and less than half of those received their MBA from an elite business school (think Harvard, Stanford, etc.).

    Here's a short list from Business Insider's Top 100 Entrepreneurs Who Made Millions Without A College Degree:

    • Walt Disney, founder of the Walt Disney Company, dropped out of high school at 16.
    • Richard Branson, billionaire founder of Virgin Records, Virgin Atlantic Airways, Virgin Mobile, and more. He also dropped out of high school at 16.
    • Rachael Ray, Food Network cooking show star, food industry entrepreneur, with no formal culinary arts training. She never attended college.
    • Michael Dell, billionaire founder of Dell Computers, started his business out of his college dorm room, but he later dropped out of college.
    • Larry Ellison, billionaire co-founder of Oracle software company. Ellison actually dropped out of two different colleges.

    However, there are also many successful people who do have MBAs, such as Elon Musk, Michael Bloomberg, Sheryl Sandberg, and Dr. Oz.

    So, should you get an MBA if you want to start your own business?

     

    MBAs can be expensive.

    An MBA can cost anywhere from $5,000 to well over $100,000 depending on what college you attend.

    And, according to Poetsandquants.com, the cost of obtaining your MBA continues to rise.

    New York University's Stern School of Business costs over $200,000, Harvard Business School has a total two-year cost to $204,640, and Stanford University's Graduate School of Business costs $210,838.

    That is a TON of money in order to get your MBA.

    I went to a moderately priced state university and received my MBA, and I think that it was a great value. However, if I had to pay over $200,000 to receive my MBA, I don't know if it would be worthwhile. That's a lot of money for not much real world experience that can be applied to a specific business idea.

    And, let's not forget about the amount of time it can take to receive your MBA.

    For some students, they focus on their MBA full-time, which means that they aren't bringing in an income, or they are bringing in significantly less than needed to sustain most living expenses. Some MBA students do work full-time, but they usually take a smaller course load.

    I worked on my MBA full-time and worked full-time, which meant that I didn't have time for pretty much anything else in life.

    Plus, if you know that you want to start a business, the time it takes to get an MBA can make that goal that much farther away.

     

    An MBA surrounds you with other determined people.

    By earning your MBA, you'll most likely be surrounded by a network full of people who are wanting to succeed in the business world.

    This can help you build your future business idea, gain contacts that may help you and your business later on, and more.

    I always say that networking is extremely important, and an MBA can definitely help you in that area.

     

    An MBA won't specifically teach you about the business you want to start.

    An MBA will give you a pretty well rounded background on business in general. However, it won't teach you everything you need to know about starting and sustaining your specific business plan.

    This means that you will probably have to learn how to start your specific business elsewhere, such as researching your ideas and business plans outside of your MBA program.

    For example, if you want to start a blogging business, you most likely won't learn anything about a blogging while earning your MBA. The same goes for many other business ideas as most MBAs aren't really focused on specific markets.

    What they do offer is a good background on the actual “business” side of starting your own business, as discussed below.

     

    You do learn about business, though.

    While earning an MBA is more about business theory, it still offers you a lot of background information that can help you create your own business.

    Through my MBA and the career I had as an analyst, I learned about business accounting, business law, managing a business, economics, business finances, marketing, advertising, and more. These are all things you should know about when running your own business. Sure, you can outsource a lot of these tasks, but for most start-ups, you may personally have to take on many of these tasks, especially in the beginning.

    My analyst position also taught me a lot about running a profitable business, since I dealt with successful business owners every day.

    There are a lot of times that my education and work experience have helped me run my own business. And, I am extremely grateful because it has helped me run my business extremely well.

    According to Investopedia, around 30% of new businesses fail during the first two years of being open, 50% during the first five years, and 66% during the first 10 years.

    Some of the reasons for failure that are cited in the above article include:

    • Business owners not investigating the market.
    • Business owners have problems with their business plan.
    • A bad location, bad internet presence, and bad marketing for the business.

    These are all things that are taught, in general, when working on your MBA, which can be great background knowledge for someone wanting to start their own business.

     

    What about real experience?

    I believe that real experience is the best. However, with an MBA, you can receive a well rounded education that can help you to launch a successful business.

    You can learn how to manage a team, understand business specific finances, research the best business plan, and more.

    When put together with real experience, I think that an MBA can be a great learning tool.

    Does that mean that everyone should get their MBA?

    No. Everyone is different, but I do believe that my MBA has helped me manage my own business.

    What do you think? Should a person who wants to start a business get their MBA? If you're already a business owner, do you have one? Why or why not?

    The post Should you get an MBA if you want to start your own business? appeared first on Making Sense Of Cents.


    Source: makingsenseofcents.com