Life Events Archives - Hanover Mortgages

March 6, 2021

6 Ways to Maximize Your Finance Toolkit

I know what you’re thinking; what’s a finance toolkit? How do I go about making sure I have what I need? Before going on the deep end, think about it in very basic terms. A toolkit is something full of different gadgets to help you fix, mend or repair things – and tools can be added or removed based on need. Since it’s portable, this toolkit can be taken anywhere and is durable enough to withstand various environments. A financial toolkit serves as your source to maintain a steady pulse on your finances while including important information that can assist in proactively solving problems before they occur. If you need to create, revamp or declutter your finance toolkit, keep reading for must-haves in your arsenal.

Dedicate the time to revisit your budget

Most people either live by their budget, don’t even bother to look at it, or update it so much where it’s no longer useful. No matter where you fall, understand that establishing a budget will help you determine what’s working (or not) over time. I know we can pride ourselves on doing things in our head or at a rapid pace – but it’s best to take some time to review the numbers within your budget to verify it makes sense. Life events can cause your budget to fluctuate along with your specific financial goals. Take the initial time to review, make updates as necessary while feeling confident about your initial work. Don’t be afraid to start from scratch! Adopting different budget methods or creating your own mixture can work in your favor. After figuring out what’s suitable for you and your lifestyle, review your budget weekly to make sure everything is on target. Keeping a pulse on your finances is what helps things stay on track versus reactively making last-minute tweaks.

Determine your short and long-term financial goals

Where would you like your finances to lead your life within the next two years or ten years? Try your best to identify no more than three goals short and long-term; respectively. Believe it or not – how you spend/invest/allocate your funds today creates a roadmap for where your finances will be in the future. Establishing healthy habits now and determining your financial areas of growth will ensure your financial goals will be completed. If you’re having a hard time narrowing down your goals, take a look at these questions for reflection:

How important is financial freedom to you?
What luxuries would you like to implement into your life?
Is entrepreneurship in any capacity a goal of yours?

Remember, when one goal is complete you have the flexibility to incorporate something new into your list. Grant yourself grace – any goal(s) you choose to focus on will always take time, dedication, and patience.

Look for ways to diversify your financial portfolio

As it relates to your long-term investments, explore various ways to diversify your existing portfolio. A solid mix of stocks, bonds, ETFs, etc. is a great way to encourage growth while covering all your investing bases. If you’re unsure of how to move forward, consider using the expertise of a financial advisor to help guide you. Feel free to schedule consultations with various firms to get a feel for who best aligns with you and where you’d like to be in the future. If you pride yourself on doing your own research, pick a new topic each week and explore! There are so many free resources available that can help you before soliciting the help of a professional. If you’re ready to dive into real estate, carve out some time to educate yourself on the basics. If stock market jargon sounds oddly interesting, begin exploring the best way to dive in. Most employers offer a retirement plan and if this applies to you – does your portfolio mix meet your current needs? Are there things you would like to change based on your findings? Leave no stone unturned – be sure you’re completely comfortable with the method(s) in which your money grows!

Review or establish estate planning

While none of us want to blatantly talk about death, it’s vital to make sure there’s a plan in place for your money when you’re no longer here. No matter your marital status or if you have children, it’s always best to have all of your affairs in place. Have you set up beneficiaries? Do you have a will in place? Do you have life insurance policies? Take the time to ensure all of this information is up-to-date and accurate.

Locate all important documentation

We live in a digital world and a lot of us have important documents saved on computers or external hard drives. While there’s nothing wrong with this approach, what happens if the computer files become corrupted or if the laptop no longer functions properly? Be sure to have important documentation in multiple places. A fireproof lockbox or a secure lockbox located at a bank for all pertinent paperwork is ideal. Make sure there are a couple of trusted individuals within your family that know exactly how to get access in the instance of an emergency.

Remain diligent and stay committed

We’ve been through this rollercoaster before. Things start out fantastic and suddenly – life happens. Your spending habits slowly creep back up. You’re making more visits to the savings account. The credit card balance started off very low and manageable, then it gets right back where you started. No matter what missteps happen, try your best to avoid the dangerous cycle of financial carelessness. When challenges arise, take a moment to reflect on where you currently are and all of the work you’re doing to create a better financial future. Stay committed to the process! Financial resiliency is nothing more than being able to overcome what’s thrown your way. We can’t always control what happens in life, but we can make sure there are things in place to avoid the financial roads we’ve worked so hard to escape from.

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Source: mint.intuit.com

March 5, 2021

4 Things to Consider Before Combining Finances With Your Significant Other

A joint account is a shared responsibility, so be sure you’re both on the same page.

The deeper into a relationship you get, the more important talking about money and combining finances with your significant other become. So romantic, right? But if you and your significant other decide to move in together, or get married, then a conversation about combining your finances is natural. A joint account is a shared responsibility, and—if something doesn’t work out—possibly one with lasting repercussions. Exhibit A: Nearly one-third of adults with partners say money is a major source of conflict in their relationship, according to a survey by the American Psychological Association.

Significant others talking about combining finances Even though you’ll be sharing with the person you love, there’s no need to rush into a joint bank account without getting on the same page. Make sure you and your partner have a deep conversation about your finances first so you know it’s the right choice. For both of you.

Not sure how to break the ice and talk money? Try these four topics to get the conversation going before combining finances with your significant other:

1. What’s the financial situation?

Most people don’t talk openly about the state of their finances, except perhaps with a financial professional. As relationships develop, however, it’s important to be realistic about both partners’ finances in order to establish equal footing. This is one time when you don’t want personal finances to be too personal.

Consider sharing your credit scores, and understand if either of you has debt that would be taken on by the other upon combining your finances. Discuss each other’s attitudes and willpower when it comes to spending—and saving. All of this can help give you a clearer view into how you may function together to manage your money. You may even learn a thing or two about your own financial approach in the process.

“Combining finances can even improve money management because it opens up the lines of communication between partners,” says Lauren Greutman, author of The Recovering Spender and founder of LaurenGreutman.com.

Nearly one-third of adults with partners say money is a major source of conflict in their relationship, according to a survey by the American Psychological Association.

2. Will you have joint and separate accounts?

Many couples choose to have shared accounts while maintaining individual ones. If you decide to open a joint account, think about whether you want to open just a checking account, or if a shared savings account meets your goals, too.

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With multiple accounts of any combination, it’s good to break down how each will be used. Know which accounts receive paycheck deposits, for example, and how the shared account will be funded. If a joint account is for shared bills (rent, utilities, food), decide how bills will be paid. Do both parties transfer money into the account to cover bills as needed, or is there an amount deposited automatically with each paycheck?

What about other joint expenses, like vacations? Will you fund your retirement with a joint account, or will you go solo on that venture? It’s best to get these questions answered before you combine finances with your significant other to avoid confusion or disagreement down the road.

3. Who manages the joint account and what are the “rules?”

If you choose to combine your finances and open a joint account, it’s important to discuss how it’s managed and by whom. Nobody loves rules, but establishing each person’s responsibilities with your joint account can go a long way toward avoiding future conflict.

Let’s say you open a joint checking account for shared bills. While you may both deposit money into the account, you could consider putting one person in charge of making sure those bills get paid. Maybe the other person is responsible for ensuring the balance statement is correct each month.

Additional rules can also help avoid unnecessary arguments and impulse purchases. Maybe you commit to discussing purchases when they are over a certain dollar amount.

“My wife and I set a limit each week on how much ‘spending’ money we each have for things we like to get ourselves,” says John Rampton, Founder and CEO of the online digital wallet, Due.com. “Giving each other an allowance means we cut out arguments on what we spend that money on.”

4. How will you deal with problems along the way?

Having a clear view into your joint finances doesn’t mean there won’t be hiccups here and there. It just means you may know about them sooner rather than later, and you’ll know how to address them with your partner. If, for example, you don’t have enough money in your account to cover bills, having a plan as a team can help.

“If your money is combined, you have to talk about it because of the risk of overdrafting the account, not having enough money and about future plans with where to spend the money,” Greutman says.

If you notice your joint account is trending low on funds, sit down and go over your joint budget. See if there are areas that can be adjusted. It might mean economizing where possible or increasing the amount going into the shared account. Either way, talking through the situation will help you come out ahead each month.

Communication is key

Combining finances with your significant other is a big step in any relationship. Even if you decide to keep your finances separate for now, you will have an easier time talking with your significant other about your financial needs. If you do decide to open a joint account, being able to communicate will allow you to pick an account that will help meet your shared goals.

Source: discover.com

March 5, 2021

Are Cash Back Debit Cards an Alternative to Credit Cards?

[Update: Some offers mentioned below have expired. For current terms and conditions, please see card agreements.]

It’s hardly a secret that millennials loathe credit card debt. They fear it, in some cases more than other very frightening life events.

It was widely reported last year that debt conscious millennials are disrupting the credit card industry in large part because only one in three members of this demographic carries plastic. Instead, they prefer to pay with cash or use debit cards, according to a Fed study.

Debit cards however, don’t always offer the same perks or rewards as credit cards, in the form of points programs or cash back.

Or do they?

Find Your Card Now

For millennials in search of some payoff for all of that debit card loyalty, there are options.

For one, there’s the massive Cardlytics program, which just went public in February. There’s also a handful of much lesser known debit card reward programs.

What is Cardlytics?

With nearly 55 million users, it’s not exactly a small program. But that impressive number aside, there are still plenty of people who are not familiar with or using the Cardlytics program.

The company works with countless banks that are household names, such as Bank of America, SunTrust, Regions and PNC, to offer cash back programs via your debit card. So it’s very likely you have access to this perk already.

The cash back is provided via the program’s partnerships with a long list of brands ranging from Starbucks to McDonald’s, Hilton and Whole Foods. Targeted cash back rewards from these and many other companies are presented to debit card users based on spending history.

“From a bank perspective, we are providing credit card class rewards,” said Cardlytics COO Lynne Laube.

In terms of how exactly the program works, it’s quite simple. If you happen to eat at fast food restaurants for example, such as McDonald’s, then you’ll see ads for cash back offers from fast food restaurants inside your banking channels. The advertisements are cash back offers, perhaps $3 off your next meal.

When you redeem that offer, the money is deposited directly into your bank account. It’s that effortless.

“This is a great way save money on things you’re already buying,” said Laube. “The offers are targeted based on things you already bought in the past.”

There are many upshots to this program, including the fact that it doesn’t cost you anything and there’s no fear of racking up debt in pursuit of rewards. Yet, there are still people who log into their bank apps or bank accounts every day and don’t realize the rewards are right there, waiting to be used.

“Its embarrassing the number of times that I’ve had to teach one user at a time that they have our program,” Laube said. “But once people try it for the first time, they’re hooked.”

American Express Serve Cash Back

The American Express Serve Cash Back card is another option for those seeking to avoid credit card debt while still earning some rewards, says Tony DeSanctis, senior director for Cornerstone Advisors, a consulting firm for banks and credit unions.

Part of American Express’ line of prepaid debit cards, the Serve Cash Back card offers unlimited 1% cash back when you use it in stores or online. The money is added to your account for use on future purchases.

The cards offer some additional benefits as well, such as early direct deposit (which means you may be able to get your paycheck a few days before payday). There’s also no credit check required in order to obtain a Serve card and no minimum balance needed. And you’ll get American Express customer service 24/7.

Green Dot 5% Cash Back Visa Debit Card

Yet another option noted by DeSanctis is the Green Dot card.

Unlike the American Express option, the Green Dot card limits its 5% cash back offer to $100 annually.

But it too has perks such as allowing you to get paid up to two days earlier with free direct deposit. You can also deposit checks to your Green Dot account via your Smartphone and there is no credit check to obtain this card.

There are numerous fees associated with this card however. For instance, it costs up to $1.95 to buy the card in a store. Reloading it with money costs up to $4.95. There’s a $3.00 charge to make a withdrawal from your account and a $.50 charge for balance inquiries. And none of this includes any private ATM fees or the card’s $9.95 monthly service charge.

“These are very niche products targeted at unbanked or underbanked clients who don’t have a primary or traditional bank account,” says DeSanctis.

The Takeaway

There certainly are options when it comes to earning rewards without signing up for a credit card. But not all of the options are created equal, so do your homework.

“If millennials truly want to avoid credit cards, what’s out there is, by and large, better than no rewards at all,” said DeSanctis. “But I think the disdain for credit cards is more a function of significant student debt and trying to get out from under that debt. As they start to work their way out of student debt, I think you will see them dipping their toes into credit cards.”

If you’re concerned about your credit, you can check your three credit reports for free once a year. To track your credit more regularly, Credit.com’s free Credit Report Card is an easy-to-understand breakdown of your credit report information that uses letter grades—plus you get a free credit score updated every 14 days.

You can also carry on the conversation on our social media platforms. Like and follow us on Facebook and leave us a tweet on Twitter.

For more information or to answer any other questions you may have about the American Express Serve Prepaid Debit Card, be sure to thoroughly read through the cardholder agreement.

Source: credit.com

March 4, 2021

Why Choosing the Right Checking Account for Your Lifestyle Matters

As you grow financially, your checking account should be keeping pace with your needs.

Feeling stuck in a checking account rut? Turns out the right checking account for your lifestyle in your 20s may not be a perfect match in your 30s or 40s.

“It can be a mistake to keep the same checking account over the years because things in your life change and you might be missing out on certain benefits by not switching accounts,” says David Bakke, a personal finance expert at financial education site Money Crashers.

According to a survey conducted for Bankrate and MONEY Magazine, the average American adult uses the same primary checking account for about 16 years. While sticking with the same account may make you a loyal customer, as you get older, you may need to change your checking account through life stages.

What is the right checking account for my life stage? These tips can help you find the answer:

Banking in your 20s: Think convenience and cost

In your 20s, the right checking account for your life stage may be one that offers the easiest access to your money.

Forty-seven percent of millennials, for example, use mobile banking to match their active lifestyles, according to a joint survey by Jumio, a company specializing in online mobile payments and identity verification, and Javelin Strategy & Research. But the survey also reveals that young adults don’t want mobile banking to be over-complicated.

If you're in your 20s, the right checking account for your life stage may include mobile features and no maintenance fees.

“Many banks now offer mobile services,” says Michael E. Diamond, senior vice president and general manager of payments at Mitek, a mobile deposit technology company. “The quality and functionality of these features can vary greatly, however. It’s important to compare the user experience and features of mobile services offered by different financial institutions when considering where to bank.”

Checking account fees may also be a factor when choosing the right checking account for your lifestyle in your 20s.

“Minimal fees should be the first consideration for any 20-something looking for a checking account,” says Eric Patrick, founder of Black Market Exchange, an investment education and entrepreneurship site for young adults. “Saving is extremely important in your 20s because the sooner you start, the better, but hefty bank fees can impede your savings growth.”

If fees are a priority when trying to find the right checking account for your life stage in your 20s, consider opening an account with no monthly fees for maintenance, like Discover Cashback Debit. This account also allows you to earn 1% cash back on up to $3,000 in debit card purchases each month,¹ which is a nice perk if you’re a budget-conscious 20-something.

The average American adult uses the same primary checking account for about 16 years.

– Survey conducted for Bankrate and MONEY Magazine

Banking in your 30s: Focus on features

As you move into your 30s, planning your finances for your life stage may mean accounting for costs associated with new life events, like getting married, buying a home or growing your family.

“Getting married may cause you to want to have a joint checking account,” says Bakke, the personal finance expert from Money Crashers. “And if you’re going to start a family or buy a home, you might want to look for a checking account through a bank that offers financial and savings guidance for those goals.”

Kenneth Scott Perry, an aerospace project manager and baseball blogger, says major life changes have redefined what he needs most from a checking account.

In their early 30s, Perry and his wife bought their first home, purchased two new cars and had their first child, all of which had financial implications. With so many major financial considerations, he started focusing on checking account features like direct deposit for his paychecks, online bill pay services and overdraft protection. “These features, more so than in my 20s, are now very much what I consider to be necessary for the checking account I use at this stage in life.”

Banking in your 40s and 50s: Review your priorities

Planning your finances for your life stage means anticipating how your priorities will change as you get older. For instance, purchasing a second home, ramping up your retirement contributions or caring for aging parents may be on your radar during your 40s and 50s. The right checking account for your lifestyle is one that makes planning for these new scenarios as easy as possible.

When choosing the right checking account for your life stage in your 40s and 50s, you actually might want to consider what kind of savings products your bank offers to complement your checking account—and make sure that moving money into those accounts is both simple and secure. For example, you may want to be able to easily transfer money from your checking account to a savings account, certificate of deposit or IRA. When planning your finances for your life stage you can even explore setting up automatic transfers to different accounts so saving for your latest financial goals can happen on autopilot.

In your 40s and 50s, planning your finances for your life stage may mean finding a checking account that can be used with the right savings vehicles.

If providing care for your parents becomes a new component of planning your finances for your life stage, you may want to consider opening a joint checking account to help them with financial management and bill payment. You could also open a savings account that’s separate from your emergency fund to help cover any unexpected expenses associated with caregiving.

Don’t just set your checking account and forget it

Having the right checking account for your life stage means regularly assessing your financial needs and how well your checking account is meeting them.

“People tend to review their insurance coverage once each year,” says Diamond, from the mobile deposit technology company Mitek. “Checking account users might want to adopt a similar approach and review their banking options annually.”

If you reach a point where it’s necessary to switch your checking account through life stages, try to avoid costly mistakes.

“It can be a mistake to keep the same checking account over the years because things in your life change and you might be missing out on certain benefits by not switching accounts.”

– David Bakke, personal finance expert at Money Crashers

“When transitioning from an old account to a new one, make sure there isn’t a fee associated with the transfer,” Patrick says. “Make a point to get all the details before starting the process.”

If you find the right checking account for your lifestyle, give yourself time to move your checking account to a new bank. Remember to update your direct deposit information for your new account, as well as any recurring online bill payments or automatic transfers. And most importantly, take time to shop around and compare your options each time you assess your checking account through life stages to find the one that best suits your current banking needs.

¹ATM transactions, the purchase of money orders or other cash equivalents, cash over portions of point-of-sale transactions, Peer-to-Peer (P2P) payments (such as Apple Pay Cash), and loan payments or account funding made with your debit card are not eligible for cash back rewards. In addition, purchases made using third-party payment accounts (services such as Venmo^® and PayPal^™, who also provide P2P payments) may not be eligible for cash back rewards. Apple, the Apple logo and Apple Pay are trademarks of Apple Inc., registered in the U.S. and other countries.

Source: discover.com

March 3, 2021

How to Plan a Destination Wedding on a Budget

The right location and a finely-tuned budget are key to making a destination wedding work.

Does your dream wedding involve a beachfront ceremony at sunset even though you live in the city, or exchanging vows surrounded by the lush beauty of a tropical rainforest miles and miles away from home? If so, a destination wedding somewhere outside of your hometown might be right up your alley.

Sound pricey? It certainly can be. According to The Knot, a wedding website, the average price tag of a domestic destination wedding, including the couple’s travel costs, is $28,372. While international destination weddings tend to cost more per guest, they do often include a smaller guest list, with the average wedding spend at $27,227.

Before breaking into a cold sweat at the thought of destination wedding bliss, know that The Knot has reported the total spend for local weddings as high as $32,641 in recent years.

While it’s possible to save money on a wedding hosted locally, it’s also feasible to plan a destination wedding on a budget. These cost-saving tips for destination weddings can get you started:

If you've always dreamed of a beach wedding but you're concerned about budget, these cost-saving tips for destination weddings can help.

1. Know what you’re willing to spend

One of the key budget-saving tips for planning a destination wedding is knowing where to draw the line on cost. Without a firm dollar amount in mind, it can be easy to overspend.

Tiffany Zorotrian, an agent with Chantel Ray Real Estate in Virginia Beach, Virginia, found herself planning a destination wedding on short notice. She and her fiancé originally planned on an outdoor wedding in April but had to move up the date because of a military deployment. Virginia’s winter weather wasn’t accommodating to an outdoor event, so they opted for a destination wedding in Key West, Florida, instead. Their budget was $10,000.

When trying to plan a destination wedding on a budget, they had to decide which costs they were willing to assume.

“One thing you need to consider is whether or not you’re going to support travel costs for close family members who want to be there, but may not have the financial means to make the trip themselves,” Zorotrian says. “We did that, but to accommodate those costs, we needed to save money in other areas.” They negotiated deals for their hotel stay for themselves and five family members and brought in their own food and beverages for the wedding festivities.

The average spend on a domestic destination wedding, including the couple’s travel costs, is $28,372.

– The Knot

Jo Ann Woodward, co-owner of Schwartz & Woodward, a Houston-based wedding planning firm, says couples must consider the extra costs associated with a destination wedding that you may not encounter with a wedding in your hometown. That includes the couple’s airfare and accommodations for all guests, local transportation since most guests won’t have their own cars and excursions (some couples will host their guests on special outings like fishing trips, scuba diving, hiking or guided walking tours). Woodward says if guests are covering their own travel costs, couples should consider if they’re willing pay for other activities.

2. Keep it small

If you’re trying to plan a destination wedding on a budget, a shorter guest list may be the answer.

“Couples need to decide who they really want to attend,” Woodward says. She suggests inviting only those people without whom you couldn’t imagine sharing one of the most important moments of your life.

Zorotrian took a different approach. Instead of skimping on the guest list, she invited all of their friends and family so there’d be no hurt feelings. But, she planned her wedding budget on the assumption that only the people who were really committed to being there would come.

When you’re trying to follow cost-saving tips for destination weddings, including everyone on the guest list is a gamble. Should everyone you’ve invited decide to attend, that can inflate your spending. If you’re concerned that the wedding may end up being oversized, it’s better to err on the side of caution and plan for a smaller wedding from the beginning.

“If you invite someone, anticipate and budget that they will attend so there are no financial surprises,” says Candice Coppola, owner and creative director of Jubilee Events, a Cheshire, Connecticut-based wedding planning firm.

The bet did, however, work out for Zorotrian and her husband. They were able to come in just under their $10,000 budget. In the end, their wedding was a tiny, intimate affair, unlike the larger outdoor event they’d originally anticipated in their hometown. But, they were happy with the final result and the money they were able to save.

3. Choose your destination carefully

Where—and when—you plan to have the big day can impact costs in a big way. Coppola says timing matters if you want to plan a destination wedding on a budget.

“Every year, prices increase,” she says, which is why one of her cost-saving tips for destination weddings is to book one to two years in advance to get the current year’s rates.

Scheduling outside the location’s peak season and going low-key on accommodations are other budget-saving tips for planning a destination wedding.

Coppola says that during a destination’s tourist or high season, hotel rates can increase by 25 to 50 percent. She says you can create more room in your budget and save money by scheduling a wedding for the destination’s shoulder or off-peak season instead. Shoulder season is the period between peak and off-peak season.

In general, this time of year offers fewer crowds, but weather could be problematic. In the Caribbean, for example, the off-peak season is typically mid-April to mid-December, which coincides with the North American hurricane season. Sites like Expedia and Lonely Planet can be resources for finding information and recommendations on which off-peak season destinations offer the most favorable weather conditions for a wedding.

Budget-saving tips for planning a destination wedding include researching multiple destinations to determine what you can get for your money If you’ve got a smaller guest list, some cost-saving tips for destination weddings include renting a large vacation home instead of booking hotel rooms for each of your guests. Woodward suggests reading the fine print before choosing a vacation rental, as some vacation homes may come with extra fees for each guest over a certain limit.

Something else to consider when seeking out budget-saving tips for planning a destination wedding: how far your money will stretch if you’re outside the U.S.

“In some regions, like the Caribbean, U.S. dollars are preferred and can get you farther than local currency,” Coppola says. Depending on where you travel, items may simply be less expensive than in America, so you’ll have more purchasing power. In Costa Rica, for example, consumer prices were about 23 percent lower than in the U.S. as of March 2018, according to Numbeo, a website that compares cost of living data.

It’s also worth considering the exchange rate if you’re not using U.S. currency and looking for budget-saving tips for planning a destination wedding. A preferable rate allows you to spend less for the same things abroad than you would at home. Remember also to factor currency exchange fees into your budget.

“Each destination has its own feel and flavor. You have to decide what’s most important for you and your guests to experience, since creating memories for a lifetime is the goal.”

– Jo Ann Woodward, co-owner of Schwartz & Woodward, a Houston-based wedding planning firm

4. Choose the best way to pay

As you research cost-saving tips for destination weddings, don’t overlook your payment method. One potential way to save is by opening a rewards credit card in advance of the wedding that allows you to earn points or miles on purchases. When it’s time to book travel, you could use those miles to cover some or all of the cost of your flights or hotel stays. Some travel cards may offer additional money-saving perks, such as complimentary companion tickets or checked luggage, which can reduce costs. Alternately, cashback rewards could be applied as a statement credit against wedding purchases you’ve already made.

Why should credit cards have all the fun?

Now you can earn cash back with your debit card.

If you want to avoid racking up debt when spending on your destination wedding, consider the benefits of a rewards checking account, which can help you earn cash back on everyday expenses, including those for your wedding. With Discover Cashback Debit you can earn 1% cash back on up to $3,000 in debit card purchases each month.¹

Preparing in advance and saving up for the big day can also make it easier to plan a destination wedding on a budget. Consider depositing funds for your wedding into an online savings account with a competitive interest rate. This way, you can be earning money on your savings until you’re ready to pay for wedding expenses.

You can plan a destination wedding on a budget—and a rewards checking account can help you earn cash back.

Check your mindset to plan a destination wedding on a budget

These cost-saving tips for destination weddings address the financial side of planning a getaway, but you also need to consider the emotional side.

“Each destination has its own feel and flavor,” Woodward says. “You have to decide what’s most important for you and your guests to experience, since creating memories for a lifetime is the goal.”

As you plan your dream destination wedding, set your expectations early and remember to be flexible. Working on a budget may mean having to cut back on certain expenses, such as flowers or wedding favors, but it’s essential to stay focused on the bigger picture, which is making your special day as enjoyable as possible.

¹ ATM transactions, the purchase of money orders or other cash equivalents, cash over portions of point-of-sale transactions, Peer-to-Peer (P2P) payments (such as Apple Pay Cash), and loan payments or account funding made with your debit card are not eligible for cash back rewards. In addition, purchases made using third-party payment accounts (services such as Venmo^® and PayPal^™, who also provide P2P payments) may not be eligible for cash back rewards. Apple, the Apple logo and Apple Pay are trademarks of Apple Inc., registered in the U.S. and other countries.

Source: discover.com

March 3, 2021

5 Money-Saving Tips for Your Wedding

Preparing for the big day? Here are some areas where you can cut costs.

The moment you get engaged, everyone wants to know: When is the wedding? Engagements can be simple when compared to weddings—unless you are eloping or having a courthouse ceremony. If you are wedding planning on a budget and your plans don’t include hiring a wedding planner, here are some money-saving tips for your wedding:

The dress

2018 national average: $1,631¹

Not wearing your grandmother’s gown? Buying used or renting can be a cost-effective way to save money on your wedding. Because wedding dresses tend to be worn once and then preserved, they are usually in “like new” condition when sold secondhand. Many websites offer pre-owned wedding dresses from major designers for when you are wedding planning on a budget.

Save money on your wedding by shopping for dresses secondhand

“We find it very rare that a bride finds sentimental value in her veil or headpiece unless it is an heirloom,” says Brittany Haas, CEO of Happily Ever Borrowed, an accessory rental store. “Accessories are generally an expensive afterthought,” she adds. “For example, the veil is something that you generally only wear for 15 minutes for your wedding day. Brides have so many more romantic things to spend on than an object only worn for 15 minutes.”

Local consignment stores also frequently carry wedding dresses, and sometimes a formal evening gown can double for your big day, which can help you save money on your wedding.

One Last Frog, suggests brides, “Shop at wholesale stores for a high quantity of decor and flowers. Typically, wholesale stores are more open to negotiation and will give you a better price for the quantity of items or flowers a bride will order.”

And once you have your flowers, if you have bridesmaids willing to help out, you can easily put together bouquets to help cut back on wedding costs.

The reception venue

2018 national average: $15,439¹

Most wedding guides will tell you reception venues charge less if you get married “off-season” in January, February or March, or during the week instead of on the weekend. The main way to really save on your venue and cut back on wedding costs is to keep your guest list low (100 or less). A smaller guest list can help you save money on your wedding by lowering the cost for food, tables, chairs and drinks.

When comparing the prices of different venues, consider that going with an all-inclusive venue can be a good money-saving tip for your wedding, says Joyce Scardina Becker, designer-in-chief of Events of Distinction. “The reception site and the vendors may have prearranged financial agreements, making it easy and more cost-effective,” Becker says.

The caterer

2018 national average: $70 per person¹

Sit-down or buffet? “Many couples think that buffets are less expensive than a sit-down plated meal, but this is often not the case,” Becker says. “Many times buffets are more expensive because you have to offer more choices and you cannot control the quantity of food a guest takes. So you should check with your caterer before deciding on a buffet versus a sit-down dinner.”

If you’re wedding planning on a budget, food trucks can be an alternative to cut back on wedding costs, while providing a memorable guest experience.

When it comes to alcohol, Becker suggests:

Having a short cocktail hour—make it 45 minutes
Avoiding salty hors d’oeuvres (they make guests thirstier)
Uncorking bottles only as needed (a wedding planner or event organizer can control this)

Additionally, if your venue allows you to bring your own alcohol, wholesalers tend to offer lower prices and typically allow you to return any unopened bottles for credit. Bringing your own alcohol could help you save quite a bit of money on your wedding.

The photographer

2018 national average: $2,679¹

One of the easiest ways to cut back on wedding costs is to limit how long your photographer stays. If you’re getting married in the off-season, you’ll likely find better deals than those getting hitched in the summer and fall.

An often overlooked money-saving tip for your wedding: Contact local college students studying photography who are interested in expanding their portfolio. Some experienced photographers may also have assistants who charge less, while still providing good service.

Happily (and financially) ever after

While looking for ways to save money on your wedding may not sound romantic, it may be the best gift couples can give themselves in the long run. Utilizing these money-saving tips to cut back on wedding costs can mean more savings to put toward other financial goals as a couple—goals like buying a home, starting a family, saving for a child’s education or building an emergency fund.

Source:

1. https://www.theknot.com/content/average-wedding-cost

Source: discover.com

March 2, 2021

How to Make the Leap From Side Hustle to Full-Time Dream Job

Learn real tips from real side hustlers who are now thriving full time.

For Michelle Schroeder-Gardner it all began with a blog. When she started Making Sense of Cents in 2011, a chronicle of her journey paying off $38,000 in student loans, it was a fun way to make money on the side while maintaining her full-time job as a financial analyst. Fast forward two years and she’s left her day job to focus on the blog exclusively. Fast forward another five years and she’s earning more than $1 million annually from her site.

If you too are looking to turn your side hustle into a full-time job, experiences like Schroeder-Gardner’s prove that just about anything is possible. And you’re not alone. Nation1099, an online resource for freelancers, published a 2018 report to summarize data from various career studies and concluded that approximately 11 percent of the working adult population in the U.S. is working primarily as full-time independent contractors in the gig economy. Gig workers, also known as on-demand workers, function with a non-standard work arrangement and without a long-term employment contract.

Some, like Schroeder-Gardner, have ditched a traditional lifestyle and are working while on the go and whenever they’re most productive (she travels around the world in an RV and sailboat and writes when motivation strikes). Others are logging full-time hours at home or in a coworking office space.

Although figuring out how to turn your side hustle into your dream job requires hard work, with patience and persistence, you can succeed.

Learn from the experts themselves and consider these steps for turning your side hustle into a successful business:

Educate yourself

The first step for turning your side hustle into a successful business is building the right skill set so you can stand out in your field. Research industry best practices and in-demand skills, speak to successful professionals and read about others who’ve made the leap from side hustle to full-time job.

When Jill DeConti, founder of the blog The Luxe Travelers, decided to leave her finance job to devote all of her time to her side hustle as a travel blogger, she knew that knowledge would be instrumental to her success.

“I began researching, reading books, soaking in knowledge,” DeConti says, adding that she also focused on learning marketing best practices and how to generate revenue from her blog.

Reading about the steps for turning your side hustle into a successful business proved useful to DeConti not just for the practical tips she gleaned, but for motivation as well.

“This made me realize that my dreams were actually possible,” she says, “and made me feel less alone in pursuing them.”

“Even though I was earning a good income from my side gig before I turned it into my full-time career, I was terrified to leave my day job.”

– Michelle Schroeder-Gardner, founder of the blog Making Sense of Cents

Take baby steps

Schroeder-Gardner says one of the most challenging parts of turning your side hustle into a full-time job is building a business framework and believing in it.

“Even though I was earning a good income from my side gig before I turned it into my full-time career,” she says, “I was terrified to leave my day job.”

Growing her gig on the side to make sure that it actually worked—and would generate income—helped her gain confidence while she still had the security of her day job’s salary. When she was ready to make her side hustle full time, she knew the framework for a blog that could make money from affiliate marketing was already in place.

“I knew it was time when I was earning enough from my blog to live off of,” Schroeder-Gardner says. “I was earning around $5,000 to $10,000 a month from my side hustle at that time.”

Build an emergency fund

If you’re thinking about how to turn your side hustle into your dream job, be prepared for business—and earnings—to not go exactly as planned.

“Build an emergency fund,” Schroeder-Gardner says. “This way, when you turn your side gig into your dream job, you’ll have money set aside in case you have a not-so-good month.”

Sunny skies are the right time to save for a rainy day.

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You could also dip into your emergency fund to help manage daily expenses and pay your bills while you turn your side hustle into a full-time job. It may also come in handy if you need to finance upfront business costs (new equipment or office supplies, anyone?).

Outside of work, an emergency fund can provide a cushion for other expenses that may not be baked into your budget (think a trip to the doctor’s office or a home repair that came out of nowhere).

As you work on creating an emergency fund as a step for turning your side hustle into a successful business, note that most experts agree that it should include at least six months to a year of expenses.

Invest extra time upfront

You may find that it takes a lot of time to turn your side hustle into a full-time job. There’s networking, promoting your business and accepting new opportunities to build your portfolio—and that’s likely on top of your already packed schedule.

If you’re wondering how to turn your side hustle into your dream job, you may need to carve out time after regular working hours. That was the case for DeConti, whose day job kept her occupied from 9 a.m. to 5 p.m. In order to get her name out there as she built her travel blog, she looked for freelance social media jobs and worked on her own blog “after work and late into the night and on weekends,” she says.

Putting in the time upfront really paid off. These days DeConti can make her own schedule and work remotely, which is key for someone who has made a career out of her passion for travel.

“I’ve been able to travel to Bali for an extended period of time, spend a month traveling around the Greek islands, swim in the cenotes in Mexico, chase waterfalls around Iceland, eat the best pizza I’ve ever had in Italy, take a camper van around beautiful New Zealand,” she says. “As long as I have my laptop with me, I’m good to go.”

Join the side hustlers who have gone full time

If you’re contemplating how to turn your side hustle into your dream job, take comfort in knowing that you’re in good company. Others are now living their dreams, and you can too with some careful planning and confidence.

So, what are you waiting for?

Source: discover.com

March 2, 2021

Financial Planning for a Baby: The Costs of Raising a Child

This infographic breaks down some of the expected—and not-so-expected—costs for your budget.

Babies are one of the miracles of life. Also miraculous is the growing cost of raising a child, which is why financial planning for a baby can be so important. From birth, through childhood, to adolescence (oh, the fun times) and into young adulthood, having children means a range of expenses. New expenses. This is where financial planning for new parents comes in.

If you’re planning for a child or about to welcome a new addition to the family (congrats!) and you want to prepare for a baby financially, here’s a breakdown of the expected—and some of the not-so-expected—costs to consider for your budget:

Financial Planning for a Baby Infographic

Although the numbers associated with raising a child can be eye-opening, and perhaps intimidating, it’s not that difficult to prepare for a baby financially. It just takes some organization, forward thinking and careful financial planning for a baby. That means spending less while raising a family and saving wisely with your online savings account. By planning ahead and being prepared, you’ll make financial planning for new parents look like a breeze and enjoy the ride of parenting.

Source: discover.com

March 2, 2021

11 Pieces of Advice This National Financial Awareness Day

With the summer season being well underway and the coolness of fall soon approaching, we could all benefit from some quick and easy financial hacks to guarantee we’re in the best position possible. The heat of the summer and the list of never-ending events can quickly cause us to feel we’re burned out from life’s demands. Grab a nice, cold glass of your favorite summer beverage and take a look at the tips below to recharge your finances.

Set a Cash Budget for Discretionary Expenses

The best way to combat overspending in certain categories such as entertainment, meals or clothes, is to set a cash budget. In life, there are always trade-offs, and this holds just as true with your finances. It’s all about finding a balance between what you want to spend money on, what you need to spend money, and what you can hold off on.

We swipe our debit and credit cards with ease – and new features with our cell phones make it effortless to spend money. When setting your budget or reviewing previous transactions, we often don’t realize how much money is actually flying out of the door. The best way to manage this is to withdraw a designated amount of cash and label each specific category every pay period. Once the cash is gone, it’s gone. This habit can take some time to truly activate, but it forces you to reconsider each purchase – saving you money in the long run.

Create and Stick to a Budget (or whatever name you give it)

I know, you set a budget at the beginning of the year. However, needs and responsibilities change! Life events such as buying a home, marriage, a new bundle of joy or sending a child off to college can quickly add more expenses. Be sure to remove any bills that no longer apply and make adjustments where necessary. This is also a great time to revise or add brand new finance goals during this budget exercise. Don’t let this budget plan collect dust – get into the habit of reviewing your budget and spending habits as often as needed. I recommend downloading Mint to get started on yours!

Evaluate your Current Investments

Are you still on track for retirement? Review and adjust your 401k contributions. In the instance your salary has increased, so should your savings. If you have solicited the help of a financial advisor, schedule a meeting to discuss how you can further maximize your investments and guarantee a better future for your family.

Pay Off Credit Card Debt

Vacations, celebrations, birthdays, and everything in between add up during the summer months. Commit to resolving your credit card balances and create a plan to ensure it happens. Remember, interest can accrue quickly on credit cards so be mindful, but diligent about reducing your credit card usage. List any outstanding credit card amounts and create a tangible plan that will help to get (and keeping them) at a zero balance. Implement a rule – what’s spent during one cycle must be paid off in full. This will help manage debt safely while making you think twice about swiping the plastic.

Create or Update your Will

Death is a topic that many people don’t like to discuss very often. In order to guarantee financial success for those you care about the most while also limiting confusion, a will is necessary. Determine what property you would like to include and appoint an executor to handle your affairs. The passing of a loved one is never easy to handle; however, it removes the chaos that can ensue. Communicate the location of the will to family members or close friends.

Use a Safe Deposit Box for Important Documents

Items such as birth certificates, social security cards, wills, passports, and other pertinent documents should be stored securely in a deposit box. Why is this important? If you start a new job and your identity has to be verified, it could cause some issues if these documents aren’t quickly available. There are costs associated with replacing these items, along with varying timeframes in which you’ll receive them. Save yourself the hassle and make sure your vital records are stored safely.

Review Insurance Coverages

Are you receiving the best possible rate for home and auto insurance? There’s no harm in calling your current insurance companies to see if you qualify for any additional discounts or savings. Other companies can also provide you a quote within minutes to ensure your pricing is comparable.

Maximize Employment Benefits

Have you reviewed your 401k contributions lately? Double-check your contributions and take the time to verify your employers’ match benefits. Also, review any supplemental information to make sure you’re taking advantage of all of their perks. Many employers offer discounts on things ranging from cell phone service to various types of insurances, so review that information regularly.

Automate your Savings

The easiest way to hit your savings goal is to automate as much as possible. Allocate a portion of your paycheck each period to automatically flow to your savings account. That removes one item off of your to-do list that seems to never end. Are you the type that can’t fight the temptation? Open a savings account at another bank location that is not easily accessible and watch your money multiply.

Review of Credit Report

There’s the saying that “cash is king”, however, credit holds the power. Dedicate some time to review your credit report provided by any of the three credit bureaus to ensure there are no errors. In the instance something appears incorrect, you can follow up with the credit bureau from which the report was provided and follow the actions necessary until the issue is resolved. You can check out your credit score instantly with Turbo.

Unsubscribe from Sales Emails

It’s impossible for us to patronize and take advantage of every sale that happens at our favorite stores. Remove the pressure and make the decision to declutter your email inbox. The less you see, essentially the less you spend. Achieving your financial goals are much more important than running to your local store or shopping online each time you’re notified. Remove the stress and hassle by opting out of sale notifications.

Choose all or a few of the tips listed to make the best use of National Financial Awareness Day!

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Source: mint.intuit.com

March 1, 2021

How to Manage Your Debt Effectively

Love it or hate it, debt is an integral part of modern life in the United States. And, when you think about it, debt in itself really isn’t a bad thing. Neither are credit cards or loans.

They only become a potentially negative thing when they’re misused or mismanaged. And once they get out of control, they can head down a long spiral and bring you down with them.

The wise use of debt — whether it’s revolving (like credit cards and lines of credit) or fixed (like a secured car loan or mortgage) — is like the skillful use of the right tool at the right time for the right purpose.

So, it’s important to realize that avoiding debt isn’t really the answer. In fact, trying to go through life without incurring any debt or using credit can be unnecessarily difficult and troublesome. It can even impact non-credit-related situations like renting an apartment. The skill Americans truly need to focus on developing is how to manage debt effectively.

Following are 7 tips to help you manage your debt more effectively:

1. Think Before You Sign

Banks, retailers, and many other organizations make credit very easy to obtain if you have a good credit score.

Nearly every department store or specialty shop has its own credit card that you can sign up for instantly while you’re making a purchase, and it often comes with the enticement of an immediate discount off your purchase.

Even if your credit score isn’t very good, there are many lenders who are willing to offer credit at high interest rates, from 25% APR credit cards to 33% payday loans.

The point to keep in mind is that lenders and retailers want you to spend money with them. They’re not concerned in the least with what more debt is going to do to your budget, your lifestyle, or your future.

So, the first tip is simple:

2. Avoid Applying for Credit Impulsively

Don’t sign up for additional credit as an impulse buy or based on desperation. It’s always going to be a bad idea under those circumstances.

However, if you frequent a certain store and routinely spend money there anyway, and you’re confident you can be responsible with a new credit line, it may be beneficial to sign up. The point is, that needs to be a conscious decision, not a second thought for the sake of a one-time 15% discount.

3. Educate Yourself About Your Credit Score

Your credit score is a 3-digit number calculated by credit reporting agencies based on a number of factors, many of which the average American couldn’t even name. While it may seem somewhat arbitrary, that doesn’t change the fact that that 3-digit number can determine:

Whether you qualify for a 0% introductory interest rate or have to settle for a rate that fluctuates at “prime plus 23%”.
Whether you’re considered financially trustworthy or not, and therefore whether a landlord will rent to you or certain employers will hire you.
Whether or not you can afford to buy your own house one day.
And much more…

There are numerous situations that are partially or fully out of your control that can result in damage to your credit score. However, much of the damage done could be avoided if consumers simply understood the basic factors that affect their credit score. Then, they could actively work to improve a bad score or maintain a good one.

So, our second tip is: Seek out reliable information about managing debt effectively and educate yourself, so you’re equipped to take strategic action.

4. Assess Your Current Debt Situation

As you learn more about managing debt and understanding your credit score, you’ll begin learning terms like credit utilization ratio and debt-to-income (DTI) ratio. These simple calculations have a huge impact on your score, and on how willing lenders may be to offer you favorable terms or to offer any credit at all.

Credit utilization ratio is the percentage of your currently available credit that you’re already using. (A simple example: If you own one credit card with a $1,000 credit limit, and it has a current balance of $200, you have a credit utilization ratio of 20%.)
Debt-to-income ratio is the percentage of your monthly or annual income that goes toward paying off debt you’ve already incurred. (Another simple example: If you earn $6,000 per month and the combined total of your existing car loan, mortgage, and minimum credit card payments amount to $2,000, you have a debt-to-income ratio of 33%.)

There are other important factors as well, but these two figures form a significant part of the calculation when determining your credit score. If they’re going to offer you the best possible terms, lenders want to be relatively confident you’re able to easily afford to pay for the credit they’re offering you.

They can make that decision based, in part, on how much of your current reliable income is already going toward other debt you’ve incurred in the past, as well as how much of your available credit you’ve taken advantage of thus far.

5. Keep Your Credit Utilization Ratio Low

If you already have four credit cards and they’re all maxed out, when you apply for a new credit card, it’s a pretty good bet you’re going to max that one out too. You already have a 100% credit utilization ratio.

This shows you’re probably not great at managing debt, and there’s a good chance you’ll eventually overdraw your ability to pay. So, the credit card company may decline your application, or they may offer a lower credit limit and/or a higher interest rate to help mitigate their risk.

Of course, if your income is such that, even with all those maxed-out cards, you’re having no trouble at all making the monthly payments, (your DTI ratio is still low,) they may not worry about your utilization at all. And that’s where debt tends to snowball quickly and dangerously.

To sum up, here’s the tip: To improve your credit score and make sure you’re managing your debt effectively, you should shoot to maintain a credit utilization ratio and a DTI ratio of no more than 30%. In other words, you’re taking advantage of available credit, but you’re coming nowhere near the maximum you can afford to spend on it.

6. Make and Keep a Budget

This one requires very little explanation. Everyone realizes that creating a budget is necessary if you’re going to manage your spending. The more formal your budget, the better.

If you’re currently in good shape, your credit score is high and your debt is low, A strategic budget can help keep it that way while improving important tools like emergency savings and investments.

If you’re on the other end of the spectrum, your credit score is low and/or your debt is getting out of control. A budget can be the lifeline you need to slowly but surely pull yourself out of that downward spiral one penny at a time.

The formula is very simple: Income > Expenses.

Of course, putting it into practice is a little more challenging. There are plenty of tools available, from a pile of envelopes with cash set aside for various expenses to smartphone apps, but the real value of budgeting depends on your own self-discipline and willingness to stick to the plan you create.

So, for this tip: Make a budget that consistently keeps your income above your expenses, and do everything you possibly can to stick to it.

7. Get Professional Help with Credit Repair If It’s Needed

While all of the above tips are self-serve actions you can take right now to make a difference in your debt management, many Americans are already in a situation where it may not be possible to turn it around completely on their own.

For instance, if the loss of a job, divorce, military deployment, or other major life events caused you to unexpectedly rely on credit cards for months, you may be in a desperate situation that isn’t really even your fault.

Likewise, if you’re like so many Americans who grew up, finished school, and left home without ever learning the basics of financial responsibility, you may have gotten in over your head in debt without even realizing that was possible.

No matter what the reason is for your current situation, you don’t have to go it alone.

Hire a Credit Repair Company

Get in touch with a reputable credit repair agency and discuss your situation with a professional who can help. For a small fee, they can take the reins on your situation by:

Investigating your credit report to confirm its accuracy and completeness
Working with creditors on your behalf to negotiate payment plans or better terms
Disputing errors and eliminating inconsistencies on your report
Setting up a realistic budget and debt reduction plan
Guiding you through the challenges that will inevitably rise as you resolve your situation

So, the final tip is this: If you need help getting out of snowballing debt and getting yourself to the point that you can effectively manage it going forward, don’t hesitate. Get the help you need.

In modern America, completely avoiding debt is not only difficult, it’s potentially harmful. However, incurring debt without managing it effectively can be even worse. Follow the tips above, and you’re sure to get a solid handle on debt and use it skillfully.

Source: crediful.com