Last Updated: May 25, 2023 BY Michelle Schroeder-Gardner – 64 Comments
Disclosure: This post may contain affiliate links, meaning I get a commission if you decide to make a purchase through my links, at no cost to you. Please read my disclosure for more info.
When we bought our first (and current) house, our whole process went by very quickly and smoothly. Our mortgage company and real estate agent both told us that our mortgage was the quickest process they’ve ever done. We got pre-approved and bought a house less than one month from start to finish.
It took around 2 weeks for us to find the perfect house, and we probably looked at over 20 houses in person. We also looked at hundreds online so the 20 that we looked at we thought were for sure buys. Our agent probably HATED us. Luckily she was a family friend so I hope she got over her hatred quickly 🙂
We are sort of in the home buying process again as you all know. We keep going back and forth with what type of house we want, where we want it located, and how much we want to spend.
Our current house is fine for now. There is definitely nothing wrong with it, I guess we just want something a little nicer that also has a little more room. So we could: a) stay in our current house and save a lot of money; or b) buy a house within the next year and finance the majority of it (probably with a 25% down payment).
If we did stay in our house for longer, we would spend some money on making it perfect. I definitely would want to change some things in our bathroom (such as adding a nice glass shower door), make our front and backyards perfect (possibly add a garden) and finish decorating everything to the way we want it. This is a whole ‘nother post in itself!
Anyways, when we bought our current house, we followed all of the steps below, except for the fact that we didn’t realize that the total monthly cost would be that much higher than what the mortgage company quoted us. That is something that we were naive about. Learn from our mistake!
1. Get pre-approved for a mortgage!
This is definitely one of the first steps you should take. Looking at houses without getting pre-approved can be disastrous because you might just be wasting your time. You might not get approved, get approved for less than you think, etc.
Wouldn’t it really stink if you spent a ton of time looking at houses that turned out to be way more than what you can be pre-approved for? That can be a major letdown.
2. Buy less than what you are approved for.
I think we were approved for around $200,000. We were 20 years old and this seemed like a ton since we made hardly any money then. We were shocked and we looked at one house that was around this price range, but then we realized that this was a bad idea as we wanted to be more comfortable with our bills.
Also, something that our real estate agent told us, is to not show the seller how much you are pre-approved for. We showed our real estate agent our real pre-approval amount of course, and our agent said that when this happens, it can not be good. She said that if some sellers can see what we can actually “afford,” that they know how flexible that you can be with your pricing and negotiating. You can get your mortgage lender to lower the amount on the piece of paper and this is what we did. We asked our lender to say that our pre-approved amount was $150,000 (everyone, please keep in mind that I live in the Midwest and housing is cheaper here).
3. Buy a house that’s a good size for you.
Also think about the future you are planning when you think about the size of the house you might buy. Remember my post on how we Bought Too Much House? Keep that in mind! While before our house seemed way too big for us, we now want something bigger. Eventually of course we would want kids, but it’s mainly that we want a bigger yard.
Do you plan on living in this house for awhile, or just a short amount of time such as 5 years? Do you want a house and neighborhood/city that is good for kids to grow up in? There are many questions to ask yourself.
4. Get a realtor!
This is something that I definitely recommend. Our realtor saved us a lot of money and was a great negotiator. We got the seller to pay all closing costs (which were around $5,000). And she also got them to fix a lot of little things around the house. Realtors do a lot of work and are skilled in buying/selling houses. They know where to begin, what to look for and have tons of tips.
5. Make sure you look around and don’t settle.
The market is great right now for people who are looking. There are a lot of houses out there and most have a great price (all of course depending on your city! Some cities are in a housing bubble). You will be living in this house most likely for a long amount of time, so you don’t want to regret your decision.
6. Hire an inspector.
This is something that is definitely needed as well. An inspector will be able to find things that might sway you from NOT buying the house. If you’re buying a house, then you can most likely shell out another $300 for an inspection. It is a good investment.
7. Figure out the WHOLE cost.
Not just want the mortgage would be. Figure out if there will be any PMI, what the homeowners insurance will be, and property taxes. This all can add up quickly, and it added around $300 to our mortgage.
8. Save!
Now that you know you want a house, try and save as much as you can before you move into your new home. Your new costs will most likely be higher than what you think, and any extra savings will be extremely helpful.
Last Updated: May 28, 2023 BY Michelle Schroeder-Gardner – 29 Comments
Disclosure: This post may contain affiliate links, meaning I get a commission if you decide to make a purchase through my links, at no cost to you. Please read my disclosure for more info.
Are you looking to start refinancing student loans? The average 2015 college graduate has slightly over $35,000 in student loan debt.
And, if you have a law or medical degree, you may find yourself with an average of around $150,000 or $200,000 in student loan debt, respectively.
That’s a lot of money!
One thing I haven’t talked about much here on Making Sense of Cents is that there are many options for paying off your debt, such as by consolidating or refinancing your student loans.
Many don’t realize that they may be able to refinance or consolidate their student loans. I personally know this because I never once thought about either back when I had student loan debt.
Before you make the leap of consolidating or refinancing student loans, though, there are many things to think about. Continue reading below to determine if either consolidating or refinancing student loans is the right decision for you.
Related: How I Paid Off $40,000 In Student Loan Debt In 7 Months
Consolidating Student Loans – Positives And Negatives
Consolidating your student loans is when you combine your student loans into one single loan.
If you have federal student loans, you may be able to do a federal loan consolidation. While federal student loan consolidation most likely won’t help you save money by combining, it may help you to better manage your loan payments. This is due to the fact that you will only have one bill each month after you consolidate (this is why it’s called “consolidation”).
Many graduates have over five different student loans to pay each month, which can cause a huge mess if you forget to pay one!
Disclosure: We receive compensation from the companies below if you click on a link. Amount of compensation does not impact the ranking or placement of a particular product. Not all available financial products and offers from all financial institutions have been reviewed by this website. This content is not provided by Credible or any of the Providers on the Credible website. Any opinions, analyses, reviews or recommendations expressed here are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by Credible.
Related tip: I highly recommend Credible for student loan refinancing (they are the top student loan refinancing company and have great customer service!). You can lower the interest rate on your student loans significantly by using Credible which may help you shave thousands off your student loan bill over time. Through Credible, you may be able to refinance your student loans to a rate as low as 2.47%! Plus, it’s free to apply.
Refinancing Student Loans: Positives And Negatives
Student loan refinancing is when you apply for a new loan that is then used to pay off your other student loans.
This is usually a great option if your credit history or credit score are better than when they were when you originally took out your student loans.
By refinancing your student loans, you may qualify for better repayment terms, a lower interest rate, and more. This is great because it may help you pay off your student loans quicker.
The positives of refinancing student loans include:
Companies, such as Credible (this is an affiliate link and I highly recommend them), allow you to refinance your federal student loans as well as your private student loans into one. The average person who refinances can save thousands of dollars on their loan, which is a great amount! You can save a lot of money through student loan consolidation such as with Credible, especially if you have high interest federal or private loans.
Before refinancing a federal student loan, though, you will want to think about different federal benefits that you may be giving up. You may give up income-based repayment plans, loan forgiveness for those who have certain public service jobs (such as certain jobs at public schools, the military, Peace Corps, and more). By refinancing federal student loans, you are giving up any future option to these.
However, keep in mind that by refinancing student loans, you may receive lower monthly payments, lower interest rates, and more. This may help you pay off your debt a lot more quickly.
Things you should think about before you take your next step.
Before you take your next step, I wanted to recap the above so that you are clear about what your choices are.
If you are able to take advantage of deferment, loan forgiveness, or some other sort of federal student loan program, you may want to think twice before you refinance federal student loans.
Be careful with variable interest rates. While they may seem appealing at times, remember that your interest rate may fluctuate. If you currently have a variable rate, you may want to refinance into a fixed-rate and this may make refinancing a great decision for you.
Consolidating your student loans usually leads to increasing your loan term, which may lead to lower monthly payments. However, it can also lead to higher interest charges over the life of your loan.
If your credit is better than it was when you first took out your student loans, you may be able to qualify for better terms and a better interest rate by refinancing student loans. I recommend shopping around to see what you can get. Start out by checking out Credible!
Do you have student loan debt? What’s your action plan to pay off student loans? Do you plan on refinancing your student loans?
They say that right now is a seller’s market, but in my little neighborhood it was definitely a buyer’s market.
This made our home sale a little more difficult than what others may be experiencing in the United States but luckily we were still able to get a contract on our home 3.5 months after our home was put on the market. In fact, we actually received three contracts on our home that very week after not receiving any bites for 3.5 months (and over 30 home showings in that time period).
While I’m no expert at selling a home, I did recently go through the whole home selling process.
Selling a home can be a long and stressful process but hopefully with this guide I can help someone’s home sale go a little more smoothly than mine did.
Preparing your home to be put on the market and knowing the necessary steps and tips to selling a home can make a home sale go much more smoothly.
Plus, I don’t think anyone wants to experience any sort of surprise when selling their home since it is such a big expense.
Below are my steps and tips for selling your home. Enjoy and good luck with your home sale!
Find a real estate agent.
If you decide to sell your home by using a real estate agent, then you should look for one sooner rather than later. This way your real estate agent can give you an idea of what your home may sell for, what changes you may want to make, what the timeline for selling your house may be, and so on.
We used the same real estate agent from when we originally bought our home. If you need one in the St. Louis area, let me know and I can send you her contact information! She made the process a breeze.
Get a city home inspection.
I highly recommend looking into whether your city requires a city home inspection in order for your house to be put on the market.
We had to call our city office and schedule an appointment. I thought it would be easy and that they would just come over, but the wait time was actually quite long in order to fit my appointment in. Plus, we were calling during the slow season so I wouldn’t want to imagine what the wait would have been if we would have called during the spring or summer months when everyone else is trying to put their home on the market as well. The wait may have been months!
Also, keep in mind that these are only good for so many months. Ours was set to expire in the summer but thankfully we received a contract on our home and it sold in time. The city home inspection wasn’t expensive, but it did take a lot of time and there were some small changes that we were required to make before the house could be closed on.
Declutter.
We decluttered our home like crazy before we even showed it to our realtor. Home buyers do not want to see clutter as it can make a house look smaller, dirtier, and not as nice.
Decluttering is probably one of the easiest things you can do during a home sale, so why not do it?
Some of the things you may want to do include:
Clear out your basement and/or attic. Most have their basements and attics filled with things they do not need.
Put away any personal items. Sadly, you may have to tuck away your favorite photos during a home sale. Buyers like to imagine themselves in a home and if there are pictures of you everywhere then that may make it more difficult.
Sort through closets, cabinets, extra rooms, and so on.
Remove anything that may make a room seem smaller.
Clean.
Cleaning is something that everyone who is planning on selling a home should do. Sadly, this is a step that some skip!
Some of the cleaning tasks you may want to add to your to-do list include:
Clean and wax floors.
Power wash the driveway.
Dust everything.
Wash windows and mirrors.
Paint furniture, walls, trim, and so on if you are able to. It’s a relatively cheap change that can completely change a home. This is actually one of my TOP tips for selling your home. Paint can go a long way.
Clean your fridge. Yes, sometimes home buyers will peer in there.
Improve your curb appeal.
The first thing that a potential home buyer looks at is pictures of your home from the outside. The first thing they see in person is the outside of your home as well.
They say that everyone judges a home within the first 5 minutes. If that’s not enough to tell you that curb appeal is important, then I don’t know what will!
Potential home buyers don’t like to see a house that needs a lot of maintenance. Even though every house needs it, no one actually wants to think about it.
For curb appeal you will want to:
Keep your lawn cut and tidy.
Remove any trash from the front, back and side of your home.
Pick up any leaves and keep your gutters clean.
Plant flowers.
Decide if you will stage your home or not.
Homes that are staged usually sell quicker and for a higher amount of money than homes that are not.
If you are able to then look into staging your home or leaving some of your furniture in the home (if you are moving before the home sells).
Show your home.
When you’re house is on the market, you will have to allow for home showings. Potential home buyers may show up at the very last moment so your home should always be clean.
I’ve been asked by many if the home seller should be home during a home showing. I pretty much think that’s just a bad idea overall. You should clean your home and leave (take your pets with you) so that the potential home buyer can look at your home and be stress-free.
Since we didn’t live in our home while it was on the market, it made for selling our home much easier. Many times potential home buyers would come just 5 minutes to an hour before they wanted to see it, which would have been quite difficult if we would have been living there.
The house also would have been a disaster!
Accept an offer.
Eventually, you will hopefully receive an offer or two. You may do some negotiating on price and again after the homebuyer completes their own home inspection and appraisal as well.
Once you accept an offer though, you may be able to breathe a little easier. However, it’s not done just yet! You still need to actually close on the house and give the keys to the homebuyer.
Close on your home and move out!
The last of my tips for selling your home is finalizing everything on closing day. You will be told how much you owe or how much you will receive, what you need to do in order to close on the loan, and so on. Then, you will sign tons of papers and hand over the keys.
The last part may be the best or worst – you have to move out! Depending on when the home buyer’s closing date is, you generally want to have everything out of the home by then unless some sort of agreement has been made.
Hope you enjoyed my guide to selling your home. While my home sale didn’t go as smoothly as I would have liked, there were no surprises and the only thing that held us back was tanking neighborhood prices. Hopefully the tips for selling your home I gave above will make the process for you much easier!
Did anything go wrong with a past home sale of yours? What tips for selling a home would you give to someone?
Last Updated: June 14, 2021 BY Michelle Schroeder-Gardner – 56 Comments
Disclosure: This post may contain affiliate links, meaning I get a commission if you decide to make a purchase through my links, at no cost to you. Please read my disclosure for more info.
Currently, one of our main goals is to save for a down payment for our next house. Due to this, we have been wondering about how much exactly we should save.
With our first house we didn’t put down 20% and had to pay PMI (big mistake), so we will definitely put down at least 20% on our next house.
Also, we are self-employed and I have heard that most self-employed people have to put around 25% to 30% down (and sometimes even 35%!) because banks want to see more upfront from small business owners.
Now, that’s a lot of money!
This has got us thinking. While we are aiming for 30% or more, at what point should we stop saving for our down payment and ramp up our retirement savings instead? Yes, we are still saving for retirement, but should we be saving more?
In the personal finance world, the decision seems to be split. Some are all about paying off a mortgage quickly, whereas others don’t think that’s a good idea. There is no right or wrong answer, which makes the decision a little more difficult.
Of course, I do realize that this is a good situation to be in, so I am not complaining. However, how do you decide what is best for you?
Below are positives and negatives of paying off your mortgage early or even buying your house upfront with cash.
Related content: How can I pay off my 30 year mortgage in 10 years?
Positive – Your house will be paid off early!
Of course, this is the biggest positive.
Your house will be paid off, you will be able to free up some cash each month, and you won’t have to worry about paying for a roof over your head each month.
Not having that huge amount of debt hanging over your head would be a wonderful feeling. Life would probably be a little less stressful and you may feel more financially independent.
Negative – Your money may do better if it’s invested in a different way.
While paying off your mortgage early can feel great and be a big accomplishment, mortgage interest rates right now are low.
You may do better by investing your money in other ways and earning a higher return. This can mean investing in certain companies, paying off high interest rate debt, investing in passive income, and more.
Positive – You can earn a guaranteed return by paying off your mortgage early.
On the flip side, by paying off your mortgage early, you can earn a guaranteed return.
Other investments most likely will mean that a return is not guaranteed (unless we are talking about paying off other debt), whereas when paying off your mortgage early, you will be certain what your return is.
Negative – A lot of your money is in one place if you pay off your mortgage early.
This is one big reason why I’m not sure if paying off your mortgage early is a good idea. If you have other investments and are on track for retirement, then by all means go for paying off your mortgage early.
However, if you don’t have much saved, then having everything you own in one place may not be a good idea.
Also, since all of your money is tied up with your house, it might be hard to get money if you end up needing it. Having at least some liquid money is a good idea.
Positive – You don’t have to deal with the hassle of getting a mortgage if you pay in cash.
If you have enough cash, then you might be able to skip the whole process of getting a mortgage.
Skipping a mortgage can be a positive for many reasons. Sellers love cash buyers, as it makes the buying process easier on them since they don’t have to wait for a mortgage to go through. This means you may get a discount if you buy 100% in cash or your offer may be chosen over others.
Also, if you are self-employed, skipping the mortgage process can be a good thing. I’ve heard stories of self-employed people trying to get a mortgage and it sounds like it’s a very difficult thing to do.
Are you wanting to pay off your mortgage early? Why or why not?
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The question of whether a car is an asset or a liability has been debated for decades.
The reason for the debate is that there are many types of cars in the world and each car serves different purposes.
In the past, many people bought cars that were used and old to save money, because they believed it was cheaper in the long run than purchasing new ones every few years. This mindset shifted after some studies showed that replacing your car more often actually costs you less over time in terms of maintenance cost and depreciation on your vehicle value when compared to keeping a newer model longer.
Nowadays, most consumers are aware that the car is an asset and are more willing to pay for a new one.
However, there is a huge caveat on how you purchase the car, the age of the car, and the purposes of the vehicle.
All in all, depreciation can eat into your car’s worth.
What’s your take on this debate?
What is Considered an Asset?
The definition of an asset is broad and includes most things that have value. Assets are tangible or intangible property such as land, buildings, equipment, intellectual property such as patents and trademarks, or stocks.
This can be anything from a physical asset such as a house or equipment, to a more intangible asset such as a strong brand name or a loyal customer base.
Is a car an asset or liability?
A car is an asset to its owner because it took money to buy the vehicle. It is also a liability in that the cost of maintaining the car can be high, and depreciation on a new vehicle can eat into a person’s savings.
There is no definitive answer as to whether a car is an asset or a liability. It depends on the specific situation and the person’s circumstances.
For example, if someone needs a car to get to work, then the car would be considered an asset. However, if someone only uses their car for recreational activities, then the car would be viewed as a liability.
On the whole, cars are considered liabilities. They require regular maintenance, insurance, and other associated costs. However, there are a few exceptions. For instance, in some cases, a car can be used as collateral for a loan or as an investment vehicle.
Is a Car a Depreciating Asset?
A car is a depreciating asset because its value decreases over time. The depreciation of a car is based on a number of factors such as the age of the car, the make and model of the car, the condition of the car, and the miles on the car.
Cars are assets, but not smart investments as they will depreciate over time.
Reason # 1 – Wear and tear
Cars require a great deal of care and maintenance in order to keep them running smoothly. This includes everything from regular oil changes and tune-ups, to replacing worn-out parts and fixing dents and scratches.
In addition, cars depreciate in value over time due to normal wear and tear.
Reason # 2- Higher Mileage
The value of a mile decreases the more it is used. This is because the value of something depends on its rarity and when something becomes common, its value decreases.
The average car is only good for 200,000 miles. This is because of both the increased mileage and the cost of repairs as a car gets older.
Reason # 3- Cars become obsolete
Cars are becoming obsolete because new models and makes are constantly being released. This means that people want the newest and latest model, so they trade in their old car for a newer one.
Plus many of the parts for older cars become harder and harder to find. Thus, causing the cost to repair to escalate.
Reason # 4- Cars are not investments
Some people may argue if a house is an investment as well.
When you think of an investment, you want a certain rate of return on your money.
Most people use the stock market as a benchmark of earning 8% of the initial outlay of money. Thus, a car is an investment that depreciates over time. It will lose value as it gets older and the parts wear out.
If you want a return on your money, you should be asking is now a good time to buy stocks?
Can a Car Appreciate?
Yes, vintage cars and luxury sports cars have always been the exception. There are select vehicles that are in pristine condition with little to no mileage. These collector cars have a special fan base willing to spend money on these appreciating collections.
However, for the average car, the answer has always been a resounding NO!
Well, that was up until 2020, when used vehicles started to increase in value due to lack of microchips availability has been scarce causing the production of new cars to be halted. Thus, the supply and demand for new cars have been skewed causing an increase in car worth.
As the supply chain gets back to normal production, this appreciation in our sedans, trucks, and SUVs will be short-lived.
How To Calculate Car Value
Car value is the estimated worth of a car. There are two main methods for calculating this:
The trade-in method, which takes your vehicle’s current market value and divides it by its estimated remaining life span.
The resale method takes your vehicle’s current market price and then subtracts the depreciation rate from that value to get a car’s market value.
To calculate the value of a car, you need to know its make, model, year, and condition.
Personally, I like finding the worth of a car based on its Kelley Blue Book (KBB) value. This is the resource my dad used when he worked in the car industry, so I can trust the information.
The KBB value is updated monthly and takes into account recent sales and modifications.
When it comes time to buy, sell, or trade-in your car, you’ll need to know a fair price.
You can use a variety of methods to calculate your car’s worth, including using online tools, checking with dealerships and other buyers in your area, and looking at recent sales data. Remember to factor in your car’s condition and mileage when calculating its worth–prices will vary depending on the location and condition of your car.
Car Value Deprecation Curve
Before you head out and purchase your car, car value depreciation is a real consideration in your decision.
As KBB states, the first year of owning a brand new car will depreciate the most. While it feels great to drive off the lot in a brand new SUV, you can watch hundred dollar bills float behind you with how quickly the car depreciates.
To calculate the depreciation of a car, it varies depending on the make and model.
However, here is a car value depreciation chart to estimate based on.
In year one, most models will depreciate at least 20% or more.
From years 2-4, the car depreciates about 10% each year.
After five years, a car will depreciate about 60% of the original purchase price.
Car Value Deprecation Curve Example
For example, let’s take the average price of a new car of $47,077 according to Car and Driver.
1st year = car lost $9415.40 in value and is now worth $37,661.
2nd year = car lost another $3,766 in value and is now worth $33,895.
3rd year = car lost another $3,389 in value and is now worth $30,505.
4th year = car lost another $3,050 in value and is now worth $27,464.
After 5th year, the car has lost an estimated $28,246 in value and is now worth about $18,830
That is the reason most people do not believe a car is an asset.
That is a depreciating asset. Would you consider an investment if you knew 60% would be wiped away in less than five years? Probably not.
This is why most thrifty people look for cars that are at least 5 years old and lost most of the depreciation. Personally, I have never purchased a new car; everything I owned was new-to-me used vehicle. Even growing up as a daughter of a car salesman and manager, my parents never purchased a brand new car due to deprecation.
Another reason beater cars are super popular!
How Your Car Is An Asset
There are a variety of ways to define what an asset is, and whether or not a car falls into that category depends on the definition used.
In general, most people would say that a car is an asset because it has value and can be sold for money.
However, there are other definitions of assets that may not include cars. For example, some people might say that an asset is something that generates income or increases in price.
A car can be an asset for someone who is making money off of it. For instance, an Uber driver uses his or her car as a business asset. The car is providing them with income, and thus it can be considered an asset.
On the other hand, most people use their vehicles for personal use as a mode of transportation and do not make money off of it. If your car was purchased with cash or paid off, then you can consider it an asset.
Is a paid off car an asset? Yes.
Why is a car not an asset?
A car is not an asset because it depreciates in value the moment you drive it off the dealership lot. While it may be a necessary expense, it is not an asset that increases in worth over time.
Is a leased car an asset?
No, a leased car is not an asset because the asset (car in this case) is the asset of the leasing company. This is 100% liability for you and a monthly payment which you must make.
Leasing a vehicle allows you to drive it for the length of your lease term without the risk of buying and then selling or trading in at the end of your lease. Once the lease expires and if you decide to purchase the car, then it would be considered an asset on your net worth.
How Your Car Is Considered A Liability
The car is considered a liability if the debt exceeds the car’s value.
Simply put… If you have an auto loan, your car would be considered a liability.
Given that most people believe car loans are a part of being an adult, many view cars as a liability and monthly payments normal.
In addition, a car is a liability because, like any other depreciating asset, it will lose its value over time.
The longer you own it, the more money you will likely have to spend on repairs and general upkeep. This means that your car is not only costing you money every month in terms of payments and insurance, but also in terms of the decreasing worth of the asset itself.
Is a car loan an asset?
A car loan is a type of debt that is incurred when borrowing money to buy a new or used car. Thus, the car loans are considered liabilities and the car itself would be considered collateral.
Should I Include My Car in My Net Worth Calculation?
The answer to this question depends on how much your car is worth.
Personally, at Money Bliss, we recommend counting the vehicle as an asset and any auto loan as a liability. That means you would include both in your net worth calculations.
The reason why to include in net worth is if you had to sell your car immediately, you would be in one of two situations:
You have instant access to cash if needed.
You owe more in your car loan and thus, have negative equity. Meaning you would have to pay additional money to get out of your car loan and sell your car.
To keep your net worth accurate, you should adjust the price of your vehicles as they decrease over time.
Is Having a Car the worst investment of your Money?
There are a lot of factors to consider when answering this question.
Owning a car can be a major expense, and there are a lot of costs that come with owning a car, such as insurance, registration, and maintenance. However, a car can also provide a lot of benefits, such as convenience, freedom, and security.
Ultimately, it depends on your individual circumstances.
Know someone else that needs this, too? Then, please share!!
Today, I have an inspiring story from a blogger. Cassie paid off $10,000 in debt in 10 weeks and shows how you can make this a reality too. Enjoy!
In September of 2015, my wife and I officially tied the knot and, as perfect as it all was, when we returned to our home after our honeymoon we had to take a serious look at our finances. What we found shocked us.
We had known from the get-go that we both had student debt. We both attended a private, Christian college where we met and we both continued on to receive our master’s degrees. While we knew we had student debt, we had always assumed that we would simply pay the minimum until it was gone and that would be that.
What did we find when we did the math? It turns out that my wife and I owe a grand total of almost $200,000 in debt (OUCH!). Even worse? The minimum payments don’t even begin to cover the interest which means that no matter how many payments we make, we will never escape from this debt’s grasp.
Unless…
One of my favorite Dr. Seuss quotes comes from the Lorax, “Unless someone like you cares a whole awful lot, nothing is going to get better. It’s not.”
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Now, I know that this quote is referring to saving the world, but I think it’s applicable to paying off debt too. Debt can be all-consuming and debilitating, but unless you care about fixing it, it’s not going to get any better.
The thing with debt is that unless you truly work toward eliminating the problem, the problem is not going to go away. It’s certainly not an easy-fix sort of thing. Unless you truly care about getting the weight of debt off your shoulders, you’ll be trapped.
My wife and I do care about paying off our debt because we realize how much it is holding us back – we are unable to afford a house, put money into retirement, or start a family.
That’s why we made the decision to begin aggressively paying off our debt. Do you know what happened when we made that decision? We began crushing the debt that had been, only recently, crushing us.
In our first ten weeks of debt repayment, we paid off a whopping total of almost $10,000! How did we do it? Well, it’s simple: create a budget and a plan, develop a side income, and learn how to live frugally.
Related tip: Check your credit score with Credit Sesame for free!
Creating a Budget & a Plan
Developing a budget was the first step. My wife and I spent an entire month simply monitoring our spending without changing our habits. Why did we do this? Well, we wanted to see where our money was going.
What we realized is that our money was going everywhere. We were spending outrageous amounts of money for things that we didn’t even realize we were getting! Sure, some of it was important (food, certain bills, etc.), but there was so much that was unnecessary. The couple of dollars here and there for snacks and beverages (when we have these at home), the fast food or restaurants in place of dinner at home, or the subscriptions that we had forgotten we had that were still charging us monthly.
Once we realized that our money was everywhere, we knew we needed to put it into place. We created an excel document to organize our income, budgets, and debts (I love organizing things). We determined what we needed to keep to survive, what the minimum payments for our debt were, and other costs we absolutely have to have.
We wrote it all down and made important decisions as to how much we would spend on food, how much we were willing to pay for gas, etc. This was our budget. If we followed our budget, we knew we could put a significant amount of extra cash toward our debt (which is exactly what we want to do).
The hardest part about developing a budget, though, is not actually the planning, but the sticking to it. The problem we have is that when we try to follow our budget with our debit cards, we somehow always end up off. This time, we knew that we had to do our budgeting right. We pulled out some business envelopes, withdrew some cash, and began using the cash envelope system for our budget.
Almost like magic we were able to stick to our budget – better than ever before. The reality is that plastic money is easy to overspend, but when you have cold, hard cash in your hands, it’s hard to not notice it leaving. When it’s gone, it’s gone.
Developing a Side Income
The second step we took toward aggressively paying off our student debt was to develop a source of income on the side. For me, that meant blogging. I worked as hard as I could to develop a blog that focused on my goals, that inspired people, and that helped people to reach their dreams of becoming financially free.
My wife and I both work with a caterer as we are able in order to earn a little extra money. Each event lasts around six-seven hours and pays us each $100, but we can only score around one to three events per month. Jobs such as dog walking, house / babysitting, and even renting out space are great ways to make a few extra bucks within your community.
We also have started freelancing and taking up positions in the virtual assistant world. My wife has started working longer hours and taking “on-call” shifts. We sell items from our home that we no longer need and we utilize companies that offer legitimate ways to make money online. I test them out and share them on my blog for my readers to see and utilize.
Basically, we are doing whatever it takes to earn an extra income and then ensuring that the entirety of that income goes straight toward our debt repayment goals.
Related tip: You can answer surveys and make extra money! The companies I recommend include: American Consumer Opinion, Swagbucks, Survey Junkie, Pinecone Research, Prize Rebel, and Harris Poll Online. They’re free to join and free to use! You get paid to answer surveys and to test products. It’s best to sign up for as many as you can as that way you can receive the most surveys and make the most money.
Learning How to Live Frugally
Earning an extra income can only get you so far if your spending is too high. Therefore, we also spent a lot of time learning how to live frugally and sharing it on the blog. We are learning new ways each and every day to reduce our spending and live our lives to the fullest on a frugal budget.
Some of our favorites in the kitchen include baking our own bread (which saves us over $250), making our own pasta (which saves us over $100), growing our own vegetables (which saves us hundreds), and learning how to can (which saves us tons)! While each of these individually may not seem like a lot, when added together the savings can be incredible.
The frugal living tips don’t have to end in the kitchen, though. My wife and I are learning great ways to save thousands per month by cutting the cord on cable and other subscriptions, reducing our cell phone bill, and even finding new ways to entertain ourselves that don’t cost money.
As Dave Ramsey so eloquently puts it: “Live like no one else, so later on you can live like no one else.”
Living a frugal lifestyle means making cleaning supplies and hygiene products instead of buying them, making food from scratch instead of eating out, and playing board games instead of going to the clubs. It’s a lot of cutting now, but by living like we are broke, we are putting money toward debt so that later we can live the way we want to live.
How We Paid Off Almost $10,000 in Debt in 10 Weeks
Ever since we started paying off our debt aggressively, we have been competing against ourselves. When we paid off $3,000 in one month, we knew that we could do better the next month and so we did.
It took ten weeks before we had paid off almost $10,000, but the next ten weeks will be even better, we can assure you of that. How? Because we are working as hard as we can to budget, to be frugal, and to earn extra money – no matter what it takes.
The ultimate goal here is to pay off our debt as quickly as possible and that’s exactly what we are doing. We are not putting a date on our debt repayment because we don’t want to limit ourselves to that date. We want to work to surpass any dates that could have been put down and by sticking to our budget, earning side incomes, and living frugally, we can do it.
Author bio: Cassie Jahn is the author of a DIY blog devoted to living life to the fullest on a frugal budget. DIY Jahn began to help Cassie to stick to her plan to aggressively pay off her student loans, in hopes to inspire others to do the same.
How much debt do you have? Are you trying to eliminate it?
If you are new to Making Sense of Cents, I am all about finding ways to make and save more money. Here are some of my favorite sites and products that may help you out:
Find ways to make extra money – Here are over 75 different ways to make extra money.
Cut your TV bill. Cut your cable, satellite, etc. Even go as far to go without Netflix or Hulu as well. Buy a digital antenna (this is the one we have) and enjoy free TV for life.
Start a blog. Blogging is how I make a living and just a few years ago I never thought it would be possible. I earn over $100,000 a month online through my blog and you can read more about this in my monthly online income reports. You can create your own blog here with my easy-to-use tutorial. You can start your blog for as low as $2.75 per month plus you get a free domain if you sign-up through my tutorial. Also, I have a free How To Start A Blog email course that I recommend signing up for.
You should know your credit score – Check your credit score with Credit Sesame for free!
Answer surveys. Survey companies I recommend include Swagbucks, Survey Junkie, American Consumer Opinion, Pinecone Research, Opinion Outpost, Prize Rebel, and Harris Poll Online. They’re free to join and free to use! You get paid to answer surveys and to test products. It’s best to sign up for as many as you can as that way you can receive the most surveys and make the most money.
You can save money and get cash back at the grocery store. Read my review and learn how to here.
Sign up for a website like Ebates where you can earn CASH BACK for just spending like how you normally would online. The service is free too! Plus, when you sign up through my link, you also receive a free $10 cash back too!
Save money on food. I recently joined $5 Meal Plan in order to help me eat at home more and cut my food spending. It’s only $5 a month and you get meal plans sent straight to you along with the exact shopping list you need in order to create the meals. Each meal costs around $2 per person or less. This allows you to save time because you won’t have to meal plan anymore, and it will save you money as well!
I highly recommend Credible for student loan refinancing. You can lower the interest rate on your student loans significantly by using Credible which may help you shave thousands off your student loan bill over time.
Try InboxDollars. InboxDollars is an online rewards website I recommend. You can earn cash by taking surveys, playing games, shopping online, searching the web, redeeming grocery coupons, and more. Also, by signing up through my link, you will receive $5.00 for free just for signing up!
Have you come across a Craigslist rental scam lately? Here are my tips to avoid Craigslist scams and real estate scams so that you can stay safe.
Over the past few weeks, we have been searching for the perfect rental home for us to move into, but sadly we have come across many Craigslist rental scams. We found many great homes, and actually signed a lease the other day on one (more information on that to come soon).
Even though we found a rental home, we came across many Craigslist scams and Craigslist rental scams firsthand. It led to us wondering “How do I avoid Craigslist rental scams?”
I only received around 10 emails back from potential landlords and three of those I knew were definitely scammers. There might have been others as well.
Due to this, I knew I had to create a post on the topic of rental scams.
You can find rental scams everywhere (Craigslist, Zillow, and more), and many people are duped every single day out of hundreds or sometimes thousands of dollars.
P.S. If you are looking for a rental, your credit score can be extremely important. You can check your credit score with Credit Sesame for free here.
Interesting articles on Making Sense of Cents that you may want to read:
How do Craigslist rental scams work?
There are cases where the person might not actually be a scammer, but you should be on high alert if you decide to continue through with a potential rental that you are unsure about.
Hopefully with my advice on renting on Craigslist tips below, you’ll be able to find a REAL rental.
Some scams that you may come across include:
Craigslist rental scams
Craigslist apartment scams
Craigslist housing scams
Craigslist vacation rental scams
Fake house ads on Craigslist
Rent to own scams on craigslist
If you’re wondering if Craigslist rentals are legit – yes, they are! But, you need to be careful.
Below, you’ll learn how to spot a scammer on Craigslist.
Related: What You Need To Know About Renting A Room In Your House
What happens if you get scammed on Craigslist?
If you get scammed on Craigslist, they may be taking your rent money, security deposit, or even your personal information. Plus, they may waste your valuable time, and you may even be thinking that you are truly moving into the rental property.
This can be heartbreaking, and you definitely do not want this to happen to you.
How can you tell if someone is scamming you on Craigslist?
1. They are showing you the home, but do they actually own it?
One of the many Craigslist rental scams I have been hearing about a lot lately is when a scammer seems legitimate and even shows you around the rental. You might believe they are the landlord since they somehow got into the rental, but that isn’t always the case.
Sometimes scammers will break into a back window or even steal the key from the actual landlord so they can show the rental to unsuspecting potential tenants. This can be a huge disaster, as many people will believe the scammer since they are pretending to be the landlord.
Another Craigslist scam I have heard about that is related to this is when a renter moves into a home, pays the deposit, rent, etc., only to find out weeks or months later that the actual owner is at their door. The owner might have been on a long vacation or they might have just let the home sit vacant while trying to sell it, and thieves noticed their absence only to take advantage of the situation. This can be bad as you will have to vacate immediately and you will be out of money, such as the refundable deposit you may have given to the scammer.
My rental search tip: Always make sure the person renting out the home is the owner or the property manager. There are many fake house ads on Craigslist. You can usually do a simple search on who owns the property by looking up city records. You also may be able to call the building’s manager (if there is one) and ask if the apartment is for rent and who is renting it.
2. A rental that seems too good to be true is often one of the many Craigslist rental scams.
This is how some rental scammers try to lure you in and an easy way to know how to spot a scammer on Craigslist. They will create a listing, make the rental sound amazing, offer it at a very low price, not require money upfront, and so on.
This is a clue that you might be the victim of a Craigslist scam. If the landlord makes it too easy for you to live in their rental, then you need to be very careful. Scammers are often hoping that someone will be caught up in a “great deal” and come running to them with cash.
My rental search tip: Always do your research before you give anyone money. You should check other listings in the area to see if the rental is comparable and you should also see if the place is actually for rent. In most cases, it is not.
Here’s one Craigslist scam email I received (I actually received this response for two different rentals I inquired about):
3. A scammer wants your information or money before you view the home.
If you are asked to fill out a rental application before you view a home, then you might be in the middle of one of the many Craigslist rental scams. The scammer is hoping that you will give them personal information, such as your bank account number, social security number, or something else. They will then disappear once they receive all of this information. This is a bad situation because you basically just gave your identity away.
Also, if you are asked to give money before you are allowed to view a home, then something is not right. This is most definitely a scam and you should avoid it. You should never have to pay loads of money in order to just view a home.
My rental search tip: You should always do your research, view the home, and more before you give out any extremely personal information. Occasionally, you may have to give your ID to the landlord, but other than that they should not need anything from you just to show you the rental house or apartment.
Here’s another Craigslist rental scam e-mail I received. This person sent me two e-mails so I just copied and pasted both e-mails into one so that you can easily read them both:
4. The landlord’s email has been compromised – Big Craigslist housing scams!
One scary Craigslist rental scam I recently heard about is when all of the information in a rental listing is correct. The home is actually for rent, the e-mail and phone number are real, and more.
However, when you e-mail the landlord you believe you are actually talking to them. It turns out that you are actually talking to someone who hacked into their e-mail. This can be a scary Craigslist scam as it can be hard to detect.
My rental search tip: Even though this Craigslist rental scam seems difficult, it can be easy to overcome. You should contact the landlord via the phone number that is listed on the real listing and talk to a real person. Then, you should verify everything that was discussed in the e-mails. Most of the time, landlords have no idea that their e-mail address was even hacked.
Related: Phone Scams: The Best Tips To Avoid Becoming A Victim
5. They give you a sob story.
Some rental scammers will give you a sob story in order to make you feel bad for them. But, think about it: why would a landlord need to tell you this at all in the first place?
It’s a business for them.
If they give you some sort of sad story, then it is most likely a scam. Lots of Craigslist rental scammers will give you a sob story such as having to move to take care of family, being forced to move due to the military, or something else.
Don’t believe it.
How do I verify a rental on Craigslist? How can you tell a scam on Craigslist?
You may be wondering “How do you know if a rental is legit?” or “How do I make sure a Craigslist rental is real?”
There are many different things to be aware of when looking for a rental online. Here are my general tips before falling for Craigslist housing scams or Craigslist apartment scams:
Always make sure the person showing the home is the landlord or property manager.
If a deal seems too good to be true, then it probably is.
If the landlord is trying to push a lot of urgency your way, then I would be wary. For example, if they say that they need someone to move in tomorrow because they are flying overseas, and that’s why they have such a good deal, then they may be a con artist.
Be careful with your personal information, so that you are not the victim of identity theft.
If anyone ever asks you to wire money, you should not. Most scammers will ask for money to be wired and this should be your first red flag that something is not right. Keep in mind that if you wire money, you CANNOT get it back. Too many people think you can get wired money back.
Does the listing and/or e-mail communication with the “landlord” have many misspellings? Does the e-mail refer to you as Sir or Madam? Do they say they are out of the country and cannot show you the home until you pay? Do they claim to be a missionary or a reverend? If any of these are true, then this is usually the sign of a scammer.
Does the person never want to meet in person? If you never meet the landlord, then it is most likely a Craigslist rental listing scam. The landlord or their property manager will want to meet you, not avoid you.
Do they only want you to peak through the windows in order to view the rental? This is a huge red flag if they never want to meet you and instead want you to only look through the windows. Legitimate landlords will want to meet you and rental ads that state otherwise are most likely fake.
Does the Craigslist home for rent seem like a really great deal? If so, you may want to ask yourself why they are offering such a great deal. Real owners don’t think you are doing them a favor. Instead, they see it as a way to make money.
Do they mention Western Union or receiving funds via money order? If so, then it may be a scam as scammers love to mention Western Union. You simply want to be careful if they ask for either of these.
Are they letting you skip any type of background check? Sometimes there are credit checks, background checks, and so on. If it is too easy to get the rental, then it is probably a scam.
Always trust your gut instinct as there are always other places to rent in the world.
As you can see, there are many ways to learn how to spot a rental scammer on Craigslist. There are many fake house ads on Craigslist, so you want to be careful.
Are Craigslist rentals legit? How do I know if a rental is legitimate?
Yes, Craigslist rentals cans be legitimate. I have personally found Craigslist houses to rent (and lived in it) through Craigslist.
Below, you will see how to tell if a Craigslist rental is legitimate or if it is a fake Craigslist ad, and how to spot red flags.
Are Craigslist rentals safe? Is renting from Craigslist safe?
Yes, Craigslist rentals can be safe. You simply need to follow the tips in this article so that you can stay away from Craigslist rental scams and find legitimate home rentals.
Why do people post fake rentals on Craigslist?
People post fake rental ads on Craigslist because they are scammers and are looking for easy money. Plus, some potential renters who may be looking for a new home may be a little desperate as well, because everyone needs a place to live in, of course.
Is it safe to rent a room from Craigslist?
Yes, it can be safe to rent a room from Craigslist. Follow the tips here, and make sure you get along with your potential future roommates.
You also want to be safe on Facebook Marketplace, and anywhere else where you may be looking at potential homes to rent.
Someone posted my house for rent on Craigslist, what do I do?
If you have a realtor or real estate agent and your house or condo are currently for sale, I highly recommend contacting them and seeing what you can do. This is because many times homes that are for sale will be listed for rent on Craigslist through a fake ad.
You should also report the fraudulent Craigslist ad to Craigslist. Doing this will help to curb Craigslist rental frauds and help anyone who may fall for the Craigslist rental scam.
You also will want to go to your local police department and attorney general to see what they can do for you as well.
How do I protect myself from Craigslist rental scams? How do I avoid getting scammed on Craigslist?
Don’t give money or any of your personal information (such as your bank account number, social security number, and so on) until you are 100% sure that it is a real rental on Craigslist.
Also, if the person requests money or your personal info from you before you even view the rental property, then I would be careful as well.
You will want to make sure you do your research before you give the person cashier’s checks, a PayPal account, or even Venmoing or sending a Zelle payment to them. Whatever way that they ask for payment, you simply want to be careful and spend your time to make sure that you are not dealing with a Craigslist scammer.
Unfortunately, there are many Craigslist rental scams on the internet which are scamming potential renters.
P.S. There are over 200 comments below (you may have to click “« Older Comments” to see all of them), and many of you have been sharing your Craigslist rental scam stories and screenshots of exact emails. This is a great way to learn how to catch a rental scammer on Craigslist. Let’s continue to help one another out, thank you!
How to spot Craigslist housing scams? How to spot a rental scammer on Craigslist?
I hope you enjoyed today’s article on how to find Craigslist rental scams. There are definitely many fake ads out there, but do not let a Craigslist scammer deter you. There are ways to learn how to avoid rental scams on Craigslist so that you don’t get scammed.
Instead, I recommend doing your research and being careful before you hand over money or start a wire transfer. You may want to ask locals about a specific rental property, search anything you can on Google to see if the rental pops up for you (such as if you can see any complaints for that specific address), reaching out to a property management company, and more. This is so that you can make sure you are talking to the true owner of the property or whoever works for them.
After all, you don’t want to give scam artists a security deposit, Moneygram, first month’s rent, application fee, cashier’s checks, or whatever else they want without some verification that it is all real.
And, if a landlord asks you to send over gift cards as a form of payment, it is most likely fake and you are dealing with a Craigslist scammer. I have never, never heard of a landlord asking for a gift card as payment. It can be easy to fall for a rental scam, especially in today’s rental market where there is no rental inventory, which can lead to a lot of desperation.
Also, please be careful and watch out for Craigslist sublet scams. You can use many of the same Craigslist rental scam tips above to avoid Craigslist sublet scams.
But, there are legitimate rentals on Craigslist, you simply need to be careful. This may mean making sure to meet the property owner face-to-face, doing some research on the contact information that you are given, and more before you give a personal check and last month’s rent.
I, personally, have found a home rental on Craigslist and it was a great home. You can find Craigslist apartment rentals, Craigslist house rentals, and more that are legitimate – you just have to be careful.
What Craigslist rental scams and Craigslist apartment scams have you seen or heard about? Have you wondered how Craigslist rental scams work? Have you ever been the victim of any type of scam?
Last Updated: May 25, 2023 BY Michelle Schroeder-Gardner – 65 Comments
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Paying off debt is hard work. If paying off debt wasn’t hard, then everyone would be doing it.
You may come across many challenges, you may feel tired, and at points you may even feel defeated.
There are many things that may weigh you down when paying off debt. While thinking about this may seem negative, I think that today’s post can help you overcome difficulties that you may experience.
Instead of letting challenges that you face completely stop you from moving forward, you should know that many of the obstacles you come across are things that you can push past and move on from.
Too many stop their debt payoff journey because they feel as though there are no other solutions, that they are the only ones going through the process, and so on. However, that’s not true. Keep trying because you won’t get any closer to your goals if you stop now!
Plus, paying off debt is all worth it.
It may take a long amount of time and a lot of hard work, but try to remember that you can still have fun on a lower budget.
Below are some of the feelings you may experience when paying off debt and what you can do to change it around.
You may feel tired.
While you may feel tired of paying off debt right now, you need to remember that you won’t always feel this way and that it will all be worth it later.
Eventually, you will be able to get more sleep and you will be able to sleep better knowing that you won’t have debt hanging over your life.
The articles below may help you so that you are more motivated about paying off debt:
You may have to make sacrifices.
Sacrifices may need to be made when paying off debt. You may have to change your spending behaviors, avoid places like the mall, cut your expenses, and more.
While it may seem tough, especially in the beginning, it will get easier over time. If you fell into debt in the first place because your spending was out of control, then it may be even harder due to the fact that you may be used to spending more than you have.
However, that doesn’t mean that cutting back is impossible.
I recommend bookmarking your favorite debt blogs and podcasts, going on a no spend challenge, redoing your budget, looking for ways to make more money, and more.
Related:
You may be bored.
This is a feeling that many end up experiencing, but don’t let this one get you! There are many ways to have a great time on a low budget – even if you have no budget for fun at all.
You can take part in free events and festivals around your area, head outside for a hike, walk, jog, etc., go to your local library, use coupons, and more. Find more ideas at How To Have Frugal Fun.
You may feel like keeping up with the Joneses.
One thing that many find hard about paying off debt is that everyone around them is most likely still spending a lot of money.
It can be very tempting to stop your debt payoff journey and keep up with the Joneses around you. You may feel jealous and wonder why others can spend money when you cannot.
Well, looks can be deceiving. You don’t know what kind of financial situation that the other person is in. They may have more debt than you do!
There is no need to spend just to spend. You should make purchases that you actually want to make.
Next time you feel like you should spend money for no reason, you should stop and think about what’s actually bugging you and if you truly believe that spending money will cure whatever problem you are dealing with.
Paying off debt is all worth it.
Paying off debt can have many positives.
I paid off my student loan debt quickly and while it was extremely tiring, I wouldn’t change it for the world. There were many sleepless nights, 100 hour work weeks, and more, but I always reminded myself that this wouldn’t last forever and that it would be 100% worth it in the end.
There are many positives of paying off your debt. These include:
Happiness. No longer having debt means that you’ll have more money in your pocket. That makes everyone happy, right?!
No longer living paycheck to paycheck. By eliminating your debt, you will hopefully have learned better money management skill which will then allow you to start saving for other things in life such as retirement.
Feeling in control. Debt can make a person feel like they are controlled by lenders. By getting rid of debt, you will feel much more in control of your life and your financial situation.
How do you feel when you’re paying off debt? What do you do to remain positive? How do you think debt free life will be for you?
It’s no secret here on Making Sense of Cents that I am a homeowner.
However, what some people might not know is that I bought my home at the age of 20.
Yes, I was TWENTY YEARS OLD.
I know this isn’t the norm for most people, and I know that just because some are able to do it and make it work doesn’t mean that it’s for everyone. Most of my friends bought homes when they were around my age as well, so maybe it’s a St. Louis thing? 🙂
Anyway, we both had okay full-time jobs at the time. Buying a house at a young age was possible for us.
We moved into our home in October of 2009, and I graduated in May of 2010, so we did buy our home thinking that we would have a higher income coming May 2010. Luckily, that worked out in our favor, but I don’t think I would ever recommend buying on an expected higher income unless you knew for sure (150%!) that it would happen.
We bought in 2009, when there was the $8,000 first-time homebuyer tax credit and when the housing market was cheap for buyers. Also, buying a home where I live is cheaper than renting, so that was something that definitely influenced us.
Before we bought, we were renting a house (for super cheap – like $350 a month, if I remember correctly) but had to move because we had a crazy neighbor who had the SWAT team at his house on a monthly basis and he started to threaten our lives as well (some of you know exactly how that ended – not good at all).
Also, I found a snake in my bed one night (yes, an actual SNAKE!) and I was pretty much scared to sleep in that house ever again because of the neighbor and the snake.
Even though we were both very young, houses were a steal at the time, and we needed a new place to live.
Here are my tips to help you buy your next home. If you want to buy a house at a young age, or any age, there are things you might want to think about.
Do you actually want to buy? Or should you rent?
Before you decide that you absolutely want to buy your next home, you should stop and think about the positives and negatives of both home ownership and renting. Not everyone is meant to be a homeowner. And not everyone wants to rent.
Some different things that you should think about include:
Do you want to travel a lot? If you want to travel, then having a permanent home where you have to pay the bills even if no one is there may be a waste of money for you.
Do you plan on moving for your career? If you are young, then you may still be early in your career and you may decide that you want to leave your home city one day. I actually was offered a position right after I graduated from college (around 6 months after we bought our house) and they wanted me to move. Luckily, the position kind of sucked and the town they wanted me to move to sounded absolutely horrible (I think there were around 100 people that lived in the whole COUNTY of where the position was located) so I didn’t give the position any thought.
How’s your credit? If you are young, then you may not have even established any credit. It would be very hard, if not impossible, to buy a home without a good credit score.
Do you have time and/or money for home maintenance? If you own your home, then there will be home maintenance that goes along with it – it doesn’t matter if your house is new or old, stuff happens. Something may break, grass needs to be mowed, and so on.
What kind of home do you want?
Each person is different. Just because the “American Dream” is said to be a suburban house with a white picket fence, doesn’t mean that it’s everyone’s dream.
You should really think about where you want to live and what kind of home you want.
Do you want to live in the suburbs? Maybe you want to live right on the beach? Or is city living more for you? Or do you want to live far away from everyone and live 20 minutes away from the closest grocery store?
Do you want a house, a condominium, a townhouse, a duplex, a farm, or something else? Maybe you want to live on a boat? I don’t know! There are so many different options out there
Find a realtor.
If you are buying a home, please find a realtor! I have met a few people who think that they have to pay the realtor if they are a potential homebuyer. That is not true.
The realtor receives a commission from the seller, at no cost to you. Or at least this is how it is in the United States. Can others in other countries chime in about this?
There are many positives of having a real estate agent. They can help you negotiate (they are professionals at this), they can help you find the perfect home for you, they have experience in buying homes, and they can help you with all of the paperwork that will need to be done (and trust me, there is so much paperwork!).
Think about the total cost of the home that you want to buy.
This is something that some/many people do not think about when they buy a home. When you buy a home, there are so many factors that go into how much a home truly costs.
These include:
The home price. This is the number one thing that potential homebuyers look at, but don’t forget about the below!
Utility bills. You would be surprised to see how much utility bills can vary. One home may have utility bills of $200, and another may have utility bills of $700. You should be able to get a detailed past expense list or at least a realistic estimation of how much utility bills will cost you for that specific house from the current homeowners.
Private Mortgage Insurance. If you didn’t put a 20% down payment on your home, then you may have to pay PMI.
Property insurance. Insurance can vary greatly depending on where you live and what type of home you have. I pay around $700 a year for property insurance, but I know others who pay over $2,000 a year.
Property taxes. This can be a rather large amount of your monthly mortgage each month. I pay around $150 each month towards property taxes, but I know others who pay over $500 each month (and that is just crazy to me!).
Maintenance. Things will break in homes, like I said earlier. Also, you may need to paint eventually, mow the lawn, buy more efficient appliances, and more.
Rent out a room in your home for some extra money.
I wouldn’t recommend buying a home unless you can truly afford it. However, if you are young and there is plenty of extra space in your home, then it probably wouldn’t hurt you to rent out some of that extra space.
Renting out a room in your home can add an extra few hundred dollars to your income each month, which can be really helpful if you are a homeowner.
We have four bedrooms in our house and we only use one (our bedroom). So when my sister needed a place to live a few years ago, we invited her to live with us. It’s been working out very well. She’s been living with us since May of 2012 and pays around $325 per month.
We also haven’t really noticed an increase in any of our bills, but with some renters you may notice that. It’s always a good idea to try to estimate how much things will increase, wear and tear, and more in order to see whether renting a room in your home is worth it for you.
Is it a good idea to buy a house at a young age?
There are many things to think about when buying a house when you’re young, such as:
How long do you think you will live in the area?
Can you afford the house?
Do you want to travel?
Do you plan on having a family?
And so on.
Buying a house in your early 20s, or whatever you consider to be a young age is possible, but you’ll just want to be smart with your decision.
What advice would you give to someone looking for a home? Is there anything that you wish you would have done differently when home shopping?
No matter whether the content is in print or online, there will always be a need for proofreaders. Becoming a freelance proofreader may be the perfect solution for you to make money working from home.
Everything we do today seems to happen in the digital space. It is all typed for us to read. And, if you have read anything lately, you may have noticed grammatical and typographical errors. Hey, it happens. But, it really shouldn’t (even for me, and I admit that it still does from time to time). Because of the increase in online marketing, articles, and websites, the need for proofreaders continues to grow. It can be a lucrative career for anyone looking to replace or supplement their income. But, you have to know where to start. That’s why I reached out to Caitlin Pyle, the owner and blogger behind Proofread Anywhere. If you want to increase or even replace your current income, freelance proofreading might be the answer for you. Caitlin was able to make more than $43,000 in 2014 just from proofreading. She has developed a plan to help anyone looking to either supplement or replace their income by becoming a freelance proofreader. Read More:
HOW TO BECOME A PROOFREADER ONLINE
WHO IS THE WOMAN BEHIND PROOFREAD ANYWHERE?
I started out working a 9-to-5 job as a receptionist at a busy court reporting office back in 2009. I was so good at spotting errors that court reporters started calling me “Eagle Eyes.” As I moved up at the office, I started proofreading for court reporters as a side hustle. In 2011, I parted ways with that firm but kept my proofreading clients. I’ve been on my own ever since. As I gained experience and got more and more clients, I streamlined my proofreading method so I could work more efficiently. Eventually, proofreading became my primary source of income. My friends and family took notice and started asking me how I built my business. I released Proofread Anywhere, and then later, Transcript Proofreading: Theory and Practice™, launched.
WHAT DO FREELANCE PROOFREADERS DO?
People (specifically bloggers and other business owners) are looking for passionate, detail-oriented proofreaders. Whenever words get put into print, they need to be proofread for accuracy. Someone can write a blog post or a resume (or anything, really) and read over it themselves, but they already know what they put on the page. That makes it super easy to read what you expect to be there rather than what’s actually on the page. That’s when writers can overlook a misspelled word (think their instead of there) or a missing word. So it’s always good to have someone else read over your writing. I even have someone read my blog posts before they go live. No one’s immune! It comes as no surprise, but my favorite type of proofreading is proofreading transcripts for court reporters (often referred to as legal proofreading). Anyone who’s watched crime drama TV shows has probably seen a person sitting in the front of the courtroom typing away on a little machine. That’s a court reporter, and they’re writing on a steno machine. They take down word for word what everyone in the courtroom says. Their steno notes are turned into a transcript, which then needs to be proofread before it’s handed over to the person requesting it. Transcript proofreading is a very specific niche and requires very detailed training before proofreaders start helping out court reporters.
WHAT ARE THE QUALIFICATIONS FOR FREELANCE PROOFREADING?
Surprisingly, it isn’t just about being a whiz at grammar and spelling. It’s actually about having a good work ethic. You are in charge of your own success. Your reputation will determine if you’re someone in the proofreading community who will be known for your outstanding work ethic or rather as someone who can’t be trusted to respond to emails, return a quality job, meet a deadline, and/or be honest. A good proofreader likes to read. You will be doing lots (and LOTS) of reading. If you don’t enjoy reading, you definitely won’t enjoy sitting down and picking up a 300-something-page transcript. You need a desire to learn and keep learning. If you’ve never proofread a transcript before but think you know it all already — and just need to know how to get clients — you’ll be in for a rude awakening. Court reporters can smell inexperience from a mile away. Finally, you do need to be familiar with basic grammar and spelling rules. You don’t have to be perfect at them, but if you have a hard time catching errors as you read through advertisements or magazines and such, you’ll have a very difficult time with transcript proofreading, and I wouldn’t recommend it for you. Oh – and one more thing!! Proofreading is not a way to get rich quickly by putting in minimal effort. Transcript proofreading is a lot of work. If you’re looking for a willy-nilly little “course” to give you some general ideas on how to catch errors and make crazy cash, this isn’t for you. Transcript Proofreading: Theory and Practice™ isn’t designed to chuck a gazillion people haphazardly out into the world to scrounge for clients. It’s there to equip serious people with the serious skills needed to perform serious work.
IS ANY SPECIAL TRAINING REQUIRED?
While theoretically, anyone could call themselves a proofreader and start trying to proofread general text like term papers, blog posts, and the like, now you know that transcript proofreading for court reporters takes a different kind of skill set than general proofreading. Transcript Proofreading: Theory and Practice™ goes in-depth on everything, from the very basics of what makes up a transcript to how to proofread transcripts (you practice on over 3,000 real transcript pages) to marketing specifics. Even if you’ve proofread other types of text before, if you haven’t proofread a transcript before, you’ll need specific training before offering that as a service.
HOW MUCH MONEY CAN FREELANCE PROOFREADERS MAKE?
That depends on quite a few factors. Transcript proofreaders charge by the page, so your rate will depend on how quickly you can work through a transcript — and with what accuracy you can do that. Blasting through a transcript ultra-fast and leaving loads of errors in your wake won’t make you more money in the long run because it will ruin your reputation. It’s best to start slowly and build up speed. It also depends on your goals. Do you want to quit your job and stay at home? Some graduates of Transcript Proofreading: Theory and Practice™ consistently earn more than $2,000 a month and can stay at home with their kids. Others don’t want to quit their jobs but appreciate the extra cash to pay off debt faster or have more wiggle room in their budgets. There are students making $4,000 and more a month – working part-time. Others are making 6-figures annually. It’s your business. You decide how much you want to proofread. That kind of flexibility is exactly what makes me so passionate about the work.
WHAT IF I TRY IT AND HATE IT?
Then be honest but kind to yourself. You won’t know until you try, so if it seems interesting to you, give it a fair shot. Don’t quit too early, but if you get into it and honestly don’t enjoy it, that’s a good sign it’s time to move on. Some folks get started and LOVE every minute of it. Others start and find out it’s really not something they enjoy. That’s why I break the training into levels. Students invest in each level as they go — not all upfront. So if someone decides it’s not something he or she wants to continue, then they’d simply not invest in the next level of training. Easy! Now while there have been students — and even graduates — who have decided proofreading just isn’t for them, the knowledge and confidence they gain through the community and the training (especially the marketing training) gave them the confidence to branch out into other freelance skills. Some stick with proofreading but instead of proofreading transcripts, they do other types of proofreading. Others find a completely different area of the freelance world they really love, like transcribing or writing. We even encourage branching out because more skills always translate to more money.
WHAT DOES IT COST TO GET STARTED PROOFREADING?
You can sign up for my free intro course for, well, free! It won’t cost you a dime to see if proofreading transcripts for court reporters is something you would be interested in pursuing further. Full disclosure: It takes a LOT of work to learn the ins and outs of this work, so you won’t learn everything you need to know in a free week-long course. BUT it will help you decide if you want to pursue transcript proofreading further in the intensive course, and you’ll get some excellent marketing tips for general proofreading. If you do choose to move on with structured training, you’ll find that compared to investing in a college degree to start a new career, our online training is quite affordable. Aside from your training, we recommend an iPad (around $200 for a mini) and a special annotation app we use (about $10).
HOW DO YOU FIND ONLINE PROOFREADING JOBS?
Rather than spin your wheels trying to figure out how to get started on your own, I recommend you take a free course to get started. You’ll learn more about proofreading so you can decide if it is a fit for you or not.
ANYTHING ELSE OUR READER SHOULD KNOW?
Don’t second-guess yourself. If you have eagle eyes that are always catching errors all over the place, transcript proofreading may just be your niche. Self-doubt is one of the biggest reasons dreams never make it to reality. Time to do something about that!