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You’ve found the ideal house in a great location. Before you start packing your moving boxes, make sure it’s a sound investment too. Most of us wouldn’t dream of buying a used car without a mechanical checkup. Yet with only a couple of 20-minute walk-throughs, we consider buying a home that’s much more expensive.

That makes little sense to Joseph Zagone with CENTURY 21 Aspen Real Estate in Ruidoso, New Mexico. “An inspection is one of the best investments a buyer can make,” he says.
Inspection Protection image 1

Here’s what you should know—and what not to ask.

What to Expect: The inspector will check all components in your house, leaving termite, septic system, and well inspections to specialists. (Here is a list of checkpoints.) A typical inspection costs $300–$400 and takes about three hours. Even if you’re an out of state buyer, arrange to tag along, Zagone says. You can see problems firsthand and you may learn valuable things such as where to find the water shutoffs.

Why it Pays: Experienced do-it-yourselfer Rebecca Anderson didn’t think an inspection would find anything she hadn’t noticed—until the inspector opened up the furnace and discovered a cracked heat exchanger. The upshot? The sellers threw in half the cost of a new furnace.

The Forbidden Question: Only one question is off-limits: “Should I buy this house or not?” That decision is yours alone. “I tell them to read the report completely and call me with questions,” says Gary Havens, owner of Good Havens Home Inspections in greater Minneapolis/St. Paul. “If I feel real comfortable about it, I’ll say I’d feel good about my kids buying it.”

The Seller’s Role: There is nothing to keep a seller from being present for the inspection too, though Zagone doesn’t encourage it. He prefers to help his potential seller line up a handyman beforehand to repair any existing problems. It’s also wise to initiate a separate inspection of your own. Learn more on Ccentury21.com under the “Selling Advice” tab.

Joe Zagone CENTURY 21 Aspen Real Estate, Ruidoso, New Mexico; www.joezagonerealestate.com

HIS CODE: “I want to know about any problems and have them remedied before I place a house on the market. My goal is win-win negotiating, to sell a sound house with no surprises at the correct price.”

OFF-HOURS: In the winter Joe serves as a certified ski instructor on nearby slopes. In warmer weather—even in winter—he makes good use of the seven golf courses in his area.

WHAT GOT HIM INTO REAL ESTATE: “My dad wasan engineer and later a real estate agent in this area. I took economics and marketing in college and worked as a carpenter’s helper in the summers. It all added up to a great background for becoming an agent. I love it.” He’s been in real estate 30 years and has been the top-producing CENTURY 21® Professional Champion in New Mexico for seven of the last eight years. He and his wife, Joan—also a Sales Professional—have five children.

Source: century21.com

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Dealing With Money Stress

Dealing With Money StressMoney stress is something that impacts many.

According to a Better Money Habits Millennial Report, 41% of millennials are chronically stressed about money. 65% of millennials say that money stress impacts their well-being, 49% say it impacts relationships, 42% say it impacts their physical health, and 22% say that money impacts their work.

That’s a lot of stress!

No matter how young or old you are, I’m sure money-related stress impacts all age groups and not just millennials.

Also, don’t assume that money-related stress only impacts those who have a lower income. According to CNBC, those with a net worth of $1,000,000 or more still feel a significant amount of money stress. They fear that everything will be gone just like with a flip of a switch.

As you can see, money stress can impact all different types of people.

Money stress may:

  • Cause you to lose sleep;
  • Make you sick, nauseous, etc.;
  • Lead to high blood pressure;
  • Hurt your career;
  • Impact your family;
  • Make you angry or sad; and more.

However, you need to realize that money-related stress is something that you can have control of.

Below are several ways to fight money stress so that you can get your life back!

Figure out what’s causing your money stress.

There are many different reasons for why you may be experiencing money stress. You may be in debt, living paycheck to paycheck, spending more than you earn, and so on.

You won’t be able to eliminate your money stress unless you figure out what your problem is.

After you realize where your money stress is coming from, you can then create an action plan to fix whatever is wrong.

You may need to earn more money, pay off your debt, save more, learn how to deal with financial situations in a better way, and so on.

Related articles:

Talk about money with your loved ones.

If you are feeling money stress, there is a chance that you may be feeling like you are all alone. Instead, you should talk about money problems that you may be having with your partner so that you can find a solution together.

Regularly communicating about money is an important step for every relationship. Being open about your money situation can help prevent any surprises, it will ensure that both people in a relationship are aware of what’s going on, and so on.

You and your partner should sit down every so often such as once a week, once a month, or whatever timeframe works best for the two of you.

Realize that more money won’t always make you happier.

In 2010, a study came about money and it’s relation to happiness was published. According to the Wall Street Journal:

The magic income: $75,000 a year. As people earn more money, their day-to-day happiness rises. Until you hit $75,000. After that, it is just more stuff, with no gain in happiness.

Yes, more money may help you solve some problems, but if you don’t have a firm grasp on your finances then more money may just lead to more problems.

Money Stress

Source: BetterMoneyHabits.com

Understand that money and things don’t define you.

Too many equate their worth with how much money they make or what they are able to buy. In reality, though, how much money you make and spend doesn’t define who you are at all.

Remember that keeping up with the Joneses won’t help you.

Keeping up with the Joneses will make you broke and unhappy because:

  • You will never be happy no matter how much money you spend.
  • You will constantly compare yourself to EVERYONE.
  • You will go into debt because that’s the only way you feel like you can keep up.
  • You will have a loan payment for everything because that’s the only way you can “afford” everything.
  • You won’t have any money left over for retirement, an emergency fund, etc. because you’re spending it all on things you do not need.

Read more about how to avoid keeping up with the Joneses here.

Have fun.

No matter how bad your money stress may be bringing you down, you should still remember to have fun.

Having fun and enjoying life can improve your mood, help you be more healthy, clear your mind, and more.

There’s a myth out there that being frugal means you can’t have any fun. Many believe that frugal fun doesn’t even exist. There are plenty of ways to enjoy your life while staying on a realistic budget.

Related: How To Be Frugal And Fun (And Not Boring)

Stop living in the past.

When many are feeling financially stressed out, they start regretting everything they’ve done in the past that has ever cost money.

In fact, I recently overheard someone joking about how stressed out they get when they just think about their past money mistakes, such as even something as small as buying fast food.

While thinking about your past money mistakes may help you realize that you’ve made errors in the past so that you can change for the future, dwelling on them will only waste your time and ruin your mood.

This leads to my next point…

Be positive.

Yes, I realize that thinking positively can sometimes be tough when your money problems are getting you down. However, it’s important to remember that thinking negatively most likely will not help your situation at all.

Thinking positively may help you persevere, move on, and find a better solution to your problem.

Related: Why I Believe Being Positive Can Change Your Financial Situation And Your Life

Does money stress impact you?

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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.

Refinancing Student Loans - What You Should Know

Refinancing Student Loans - What You Should KnowAre 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?

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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.”

Related posts:

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!

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Last Updated: May 25, 2023 BY Michelle Schroeder-Gardner – 65 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.

Things You May Feel When Paying Off Debt

Things You May Feel When Paying Off Debt 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?

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Find out how to buy a house at a young age. This is a great list!

Find out how to buy a house at a young age. This is a great list!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?

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Source: makingsenseofcents.com

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Are you looking for ways to start improving your credit score?

Check your credit score with Credit Sesame for free!

The Complete Credit Score Guide - Improving Your Credit Score Has Never Been Easier! Improving your credit score is something that more people should focus on. You can use it to your advantage in life, and it's simple!

The Complete Credit Score Guide - Improving Your Credit Score Has Never Been Easier! Improving your credit score is something that more people should focus on. You can use it to your advantage in life, and it's simple!Whether you want to believe it or not, your credit score can play a major role in your family’s life.

While you shouldn’t go crazy and completely obsess over improving your credit score, it is important to learn more about them due to the impact they may have.

Your credit score can influence the interest rate you receive on a loan, buying a home, finding a rental home, attaining certain jobs, your insurance rates, and more.

Even though your credit score can impact your life in a big way, that doesn’t mean it’s hard to improve your credit score. Yes, it can be easy to wreck your credit score, but it can be easy to improve your credit score as well.

Due to this, I believe a credit score can be used to a person’s advantage.

Below is my complete guide to credit scores, so you can improve your credit score, receive your annual free credit report, learn how to use your credit score to your advantage, and more.

Check your credit score with Credit Sesame for free!

Here is how to start improving your credit score:

What is a credit score?

A credit score is a three digit number showing others your creditworthiness, and is often used as an indicator of how risky you are.

There are three main credit bureaus, which is why you may occasionally see different numbers. The main three (Equifax, TransUnion, and Experian) calculate scores depending on the information they have about you, and your file may be slightly different at each of them.

What is a good credit score?

Lenders and people who are checking your credit score usually have varying opinions about what a good credit score is.

In general, though, a good credit score is usually 720+. The higher your number, the better your credit score.

Is it easy to damage your credit score?

Improving your credit score usually takes a little more work than it does to damage your credit score.

You may be hurting your credit score if:

  • You have a high utilization rate. Keeping your balances below 20% of what you can borrow is important. For example, if your credit card limit is $1,000, try not to have a balance over $200. Lenders like to see a low utilization rate as it shows that you are not maxing out your debt.
  • You cancel credit cards that may be helping your credit history.
  • You pay your bills late or not at all.
  • You never check your credit report and have errors listed.

Read more at These 4 Mistakes May Be Holding You Back From A Good Credit Score.

Can my credit score impact buying a home?

YES!

This is a big reason why improving your credit score is so important.

  • Your credit score can impact whether or not you are approved for a home loan.
  • Your credit score can impact how large of a home loan you are given.
  • Your credit score can impact the size of the down payment you are required to put down.
  • Your credit score can impact your interest rate.

Read more at How Your Credit Score Impacts Your Home Buying Process.

Why is improving your credit score important? What else can it impact?

There are many instances in which your credit score and/or credit report may be looked at, and sometimes they have nothing to do with a loan. It is important to work on improving your credit score, because you never know when you may need it.

Plus, it’s something you can personally control, so why not work on improving your credit score?

Home and car insurance – If you have home or car insurance, your rate may be calculated on a factor you didn’t know about – your credit score. If your credit score isn’t good, then you may actually be paying more because companies consider you to be riskier.

Employer – This may be shocking to hear, but there are some employers out there who will check your credit report (with your permission). Industries that often check your credit report include those dealing with financial services, chemical, and defense. I recently read a statistic that around 30% of companies will check a potential new hire’s credit report before making a hiring decision.

Renting a home – If you have decided you don’t want to own a home, do not think you have escaped having your credit history checked. Your landlord will most likely check your credit history. They will want to know if you pay your bills on time or if you have ever skipped one completely. This will say a lot about you as a renter, whether you want to believe it or not. If your credit history is not up to their standards, you may be denied the rental altogether, you may be asked to pay multiple months at once, or you may be asked to find a co-signer just in case you fail to pay your rent.

Credit cards – If you don’t care about credit, then you probably will not care about this one. However, if you want a credit card, especially one with a good rewards system in place, then you will want to work on improving your credit score. The good reward credit card offers are usually only available to those with good or excellent credit scores.

Loans (home, car, etc.) – If you apply for a loan, your credit score and credit history will definitely be checked. Before you are approved for a loan of any sort, the lending institution is going to thoroughly check your financial history so they don’t end up losing money on your loan.

The interest rate you receive – A good credit score can mean you qualify for a good interest rate, and a bad credit score may mean that you get a very high rate. I have seen a 24% interest rate for a car loan for someone before! A higher interest rate can mean paying thousands of dollars extra, so it is always best to work on improving your credit score.

How can I check my credit score and my credit report?

My favorite site for checking my credit score is Credit Sesame. Credit Sesame makes it extremely easy to check your score and both me and my husband have active accounts.

You can also receive one annual free credit report from the three main credit bureaus mentioned above. Yes, this means that you get one from EACH, so three each year. I recommend spacing it out so you can get one every 4 months. You can read more about this here.

What makes up a credit score?

There are five categories that make up your credit score. Your payment history and amounts owed equate to 65% of your credit history, but don’t forget the others as they still have an impact.

If you want to work on improving your credit score, you will want to keep the below credit score breakdown in mind:

  • 35% Payment History. Your payment history has the biggest impact on your credit score. This includes if you pay your bills on time, if you have missed a payment, if any of your bills have been sent to collections, and so on.
  • 30% Amounts Owed. This is the next largest category when it comes to your credit score. This includes your balances, your utilization rate, and more.
  • 15% Length of Credit History. The age of your accounts come into play here. This is why it’s usually a good idea to keep a credit card that you’ve had for a long time. I still have a credit card I opened when I was 18. It has no rewards, but it improves my average account age. However, only do this if you know you won’t go into debt.
  • 10% New Credit. This category includes things such as how many hard credit inquiries you have and how long it’s been since you last opened a new credit account. It is important to remember that checking your own credit score does NOT impact this category as long as you receive your credit report from a company that is authorized to give you your credit report.
  • 10% Credit Mix. This includes the type of accounts you have, such as whether or not you have credit cards, a mortgage, car loan, and so on.

Check your credit score with Credit Sesame for free!

So, how can I improve my credit score?

After reading all of the above, I’m sure you’re wondering how YOU can increase your credit score.

Improving your credit score is not extremely difficult. Once you realize what can impact your credit score, you can make relatively easy changes that will begin to improve your credit score.

Here are my general tips for improving your credit score:

  • Make sure you pay all of your bills on time.
  • Regularly check your credit report. There is a chance that mistakes may pop up on your credit report, and this may be hurting you. If you find an error, you should fix it as soon as possible.
  • Keep your balances and utilization rate low. I recommend spending less than 20% of your available credit.
  • Ask for your credit limits to be raised.
  • Pay before your credit card balance is reported. Even if you pay your credit cards in full each month, your balances are still reported. To improve your credit score, you should pay your credit card in full before your balances are reported.
  • Keep your credit card accounts open if it makes sense (if you think you’ll go into debt with them open or if the annual fees aren’t worth it, you may want to think about closing them instead), so that you can lengthen your credit history.
  • When shopping for a loan, apply for loans within a short period of time instead of over several months.

This advice gives you the opportunity to improve your credit score so you can begin to use it to your advantage. Like I always say, though, make sure you are wise when it comes to your loan and credit card habits as you don’t want to go into debt.

Improving your credit score can be worthwhile, but taking on debt to do so is not.

Check your credit score with Credit Sesame for free!

Do you know what your credit score is? How has your credit score impacted you?

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Source: makingsenseofcents.com

Apache is functioning normally

Today, I have a post from a new blog friend of mine. As you all know, I’m all about being as positive as you can be, especially when it comes to your financial situation. Thinking about the negatives just holds you back and wastes your time. It’s much better to move forward, create a game plan to eliminate your debt, and stay as positive as you can. Read more in my post Why I Believe Being Positive Can Change Your Financial Situation And Your Life.

The majority of us have some sort of debt that we’re dealing with.

Whether it’s a small amount or a large amount it can still be a stressor in our lives.

Maybe it’s a mortgage, a car loan, student loans, credit cards or any combination of these. It’s a stress factor that many of us are letting take a hold of our lives.

I had a scholarship to a state university but turned it down to attend DeVry University. I had some small scholarships to help out, but I still accumulated student loans. After finishing my bachelor’s in Computer Information Systems, I went on to receive my MBA and then shortly after another Master’s Degree. So, I’ve accumulated quite a bit of student loans myself.

I’ve also owned a house since I graduated college and now have two rental properties. It was just easier to rent them out versus trying to sell them in a buyer’s market when I had to move due to my job. This led to my credit card debt that I accumulated over a decade ago. I finally managed to pay most of these off awhile back, but it was a struggle! Being on my own for the first time and having poor money management skills led to my financial stress. Thing about it is, once you realize and acknowledge that you have a problem, the better you can find a solution and learn from your mistakes.

We also have car loans just like most people. Both my husband and I have to have our own vehicles. Me, because I have to drive to work. Him, so that he can have a means of transportation in case he needs to take the kids somewhere. Side note: he has the luxury to be a stay-at-home daddy.

Being that he’s a stay-at-home daddy can be challenging, though. We don’t have that extra income like some families do. But, it’s important to us that at least one parent stays home with the kids until they’re all in school. The working parent had to be me due to where I was in my career compared to him. Therefore, we have been creative with our budgeting skills.

So, been there, done that. I lived the stress. I wore the stress.

I learned from the stress.

Do you feel like you just keep making payments, maybe even using your tax return to help out, but still feel as though you’re not even making a dent? You give up and start believing that debt is just a part of life. You learn to accept it. Maybe you make a budget. But you continue living paycheck to paycheck. It’s what you know. It’s stressful but it’s normal.

Financial stress is like any other stress.

It has the same effects on your mind and body as any other type of stress. Don’t think it’s different.

Stress can make you lose sleep. Losing sleep causes sleep deprivation. Sleep deprivation can cause hallucinations, memory instability, impact your social life and so much more. Don’t lose sleep over financial stress – it’s not worth it!

Stress can make you sick. Stress puts a huge damper on your immune system. Lack of immunity leads to an increase chance of getting sick.

Stress can cause high blood pressure. High blood pressure causes heart problems. It can lead to heart disease, heart attacks, abnormal heart beats. Heart problems can lead to things much worse than debt. Don’t let it!

Stress can cause depression. Depression also affects your health. It also messes with your hippocampus, the gateway to your memory.

Stress can cause heartburn. Heartburn can be extremely uncomfortable. The only experience I have with heartburn was when I was pregnant. I hated it. I felt like I needed to eat all the time to try to make it feel better. If this is you, then it could cause you to overeat.

Which leads me to, stress can cause weight gain. It can also cause weight loss depending on how you handle stress personally.

Stress also cause skin problems, like acne. So not only do you experience personal effects of stress, but now you’re showing it off to the world around you.

It’s time to make a change.

Debt doesn’t have to be a stress factor in your life. I’m not saying we should embrace debt. But, instead of focusing on the negative aspect of debt, focus on the positives. Alleviate the stress and concentrate on managing your finances to reach your end goal.

In honor of Positivity, My Word of the Year, let’s analyze this situation to find the negatives to uncover the positives.

The Negatives:

  • Mortgage Debt
  • Car Loan Debt
  • Student Loan Debt
  • Credit Card Debt

Now let’s take each of these negative points and find something positive.

Mortgage Debt: You are able to have a roof over your head. There are others out there who cannot. Be appreciative of the fact that you have a safe haven to take comfort in. Instead of stressing over your mortgage debt, be thankful for that roof over your head and feel safe, comforted in the walls protecting you and your family.

Car Loan Debt: You have transportation. A means to drive you to and from work. A vehicle to drive your children to the doctor when they are sick. There are others out there who do not have this luxury. You can choose to trade it in for a more affordable car to help with the stress or even go carless, if this debt is not worthwhile to you.

Student Loan Debt: You have an education. You have proof of what you know and it may have helped you land a job, a job that is helping you pay off that debt. There are others out there without a degree. Instead of lingering on the stress of having student loans, use the experience and knowledge you paid for.

Credit Card Debt: Realize that when you pay off your credit card debt, what your credit history will show. So don’t stress out over it. Just keep your focus on the end goal.

Author bio: Kimberly Farrally is the Co-Writer for Sweet Discord, an inspirational + lifestyle blog, and owner of Farrally Paperie, LLC, an invitation and party decor handmade shop. Learn more about converting the negatives in your life into positive opportunities. Together we can find inspiration for your lifestyle.

Do you find it hard to stay positive when paying off debt?

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Are you interested in creating a budget?

68% of households in the U.S. do not prepare a budget. Here are my tips on how to make a budget, so that you can start creating a budget that works.

68% of households in the U.S. do not prepare a budget. Here are my tips on how to make a budget, so that you can start creating a budget that works.The average family carries a lot of financial stress. Most people have student loans, credit card debt, a mortgage, car loans, and sometimes even other forms of debt.

However, not many people have a budget.

According to a survey done by Gallup, 68% of households in the U.S. do not prepare a budget.

I believe budgets are extremely important and nearly everyone should have one. Rich, poor, middle-class, whatever you are, a budget will likely help improve your financial situation.

Some people think budgets are only for people living paycheck to paycheck, or those with no money.

WRONG!

Budgets are for everyone.

Yes, that means no matter how much money you make, you should probably have a budget. I recently read something that said couples who make $50,000 a month, on average, only save 4% of their income. FOUR PERCENT on a $50,000 monthly income? The majority of that monthly income went towards clothing, food, cars, and homes. I can’t even imagine how someone could blow through so much money each month.

This just proves my point, more people need a budget.

Budgeting may not be the most fun thing in the world, but it needs to be done. Budgeting can help you take control of your financial life, which can help reduce stress and let you reach your dreams.

Other budgeting-related articles you need to read:

Below are my tips on how to make a budget and creating a budget.

The positives of creating a budget.

Budgets help people manage their money better. It’s that simple.

Budgets are great, because they keep you mindful of your income and expenses. With a monthly budget, you will know exactly how much you can spend in a category each month, how much you have to work with, what spending areas need to be evaluated, among other things.

Budgets have helped people reach their goals, pay off debt, make more money, retire, and more.

Should a budget be electronic or on a piece of paper?

Everyone has a preference, so this depends on what will work best for you.

Pencil and paper can be great, but an electronic version (such as a spreadsheet, Mint, or Personal Capital) can help you easily make changes.

I suggest choosing whatever you are most comfortable with. It doesn’t matter how you keep your budget; it’s just important that you stick to it.

Side note: I recommend you check out Personal Capital. Personal Capital is similar to Mint.com, but much better. Personal Capital allows you to aggregate your financial accounts to easily see your financial situation. You can connect accounts; such as, your mortgage, bank accounts, credit card accounts, investment accounts, retirement accounts, and more. And it’s FREE.

You MUST track your income and spending.

What you want is to create a realistic budget. To show you where your money is coming from and where it is going, you need to gather all of your receipts, bank and credit card transactions, and so on.

Or, you could even take it a step further by tracking everything for the next month or two, this way you know you’re not missing any expenses. This means recording every single transaction with a note that tells you exactly what you bought (if a receipt is not itemized). Then, at the end of the month, you can evaluate your spending.

After one month of closely tracking your spending, I’m sure you’ll be shocked by your results. This is the best way to create a realistic budget, as you will truly see where your money is going, and this will help show you how much should be dedicated towards each category in your budget.

Plus, the shock from seeing exactly where your money is going will encourage you to be wiser with your spending.

Budget category: Income.

For the income part of your budget, it can be from varying sources. You can include income from your day job, rental properties, side jobs, passive income sources, and so on.

One common mistake is that many don’t realize their income can drastically fluctuate from month to month, even when you work the same hours every month or if you are paid salary. Due to this, you will want to be mindful of whether you are paid twice a month, every two weeks, once a week, etc. The difference of when you are paid can change the amount you make each month. Budgeting with a fluctuating income can be difficult, and in a future blog post I will go over it in more detail.

Also, I don’t think bonuses should be included in a person’s budget. Including them in your budget is not usually the best thing to do unless you are 100% certain you are receiving the bonus. I have heard of far too many people who have counted on bonuses only to be let down when it was less than anticipated. Your budget should be realistic, not a fairytale.

Related:

Budget category: Expenses.

Have you ever truly totaled your expenses?

When making a budget, many people only estimate their expenses. However, you actually should be taking your realistic expenses and putting them in your budget as your estimations may be way off.

Here are expenses you may include when creating a budget:

  • Home – House payment, rent, maintenance, utilities, insurance, property taxes, etc.
  • Car – This includes all car expenses such as your monthly car payment, gas, maintenance, insurance, license plate fees, and so on.
  • Television, cable, Netflix, Hulu, etc.
  • Cell phone.
  • Internet.
  • Food – This includes all groceries, eating out, snacks, etc. Seriously, sit down one day and add up your food expenses for the month before.
  • Clothing.
  • Entertainment – Entertainment can include many things, such as going to the movies, going out for drinks, concert tickets, sports, and so on.
  • Charity – If you regularly donate to charity, then this should be an area you budget for.
  • Savings funds – This can be for your retirement fund, wedding, travel, etc.
  • Taxes – If you are self-employed, then taxes will make up a  large part of your budget.
  • Health insurance.
  • Miscellaneous – Pet expenses, fees, childcare, school, gifts, etc.

Related posts on creating a budget:

Keep your loved ones involved when creating a budget.

Even if only one person manages the family’s finances, the other person in the relationship should, at least, have somewhat of a clue. Conducting regular family money meetings is crucial to having a successful budget and meeting financial goals.

A budget doesn’t work if the other person doesn’t even know it exists!

Make changes when/if needed when creating a budget.

I recommend going over your budget on a regular basis. This may mean once a week, once a month, or something else. Do what feels right for you and what you think your situation calls for.

Many things can change in your budget. Your income may change, your expenses may change, or your goals may change. When something changes, you should adjust your budget to reflect that.

You may have noticed a recurring theme in this budget post, that you should be realistic about everything. Be realistic about what you make, what you spend, and if things need to be changed.

Do you believe in the power of creating a budget? Why or why not?

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Source: makingsenseofcents.com