Money is entirely fungible. Despite my earlier misconceptions, this idea has nothing to do with fungus.
Instead, fungibility is a synonym for replaceability, or the capability being used in place of another. While a crispy, fresh $100 bill might feel better than an old, wrinkly $100 bill, they can be used precisely the same. They are fungible with one another.
Many money mistakes occur when people don’t understand monetary fungibility. Let’s fix that today.
A Penny Saved…Is Less Cool Than A Penny Earned
Much more ink gets spilled on earning and investing than on simple saving and budgeting.
I’m guilty of that here on The Best Interest. I love writing about investing. But budgeting? Eh. I have a few articles, but it takes a back seat to investing.
Yet Ben Franklin understood fungibility when he wrote, “A penny saved is a penny earned.” If you can save $100 per month via a budget, that’s equivalent to a 10% annual return on $12000. It’s not as cool as investing, but the fungibility of money doesn’t care about coolness.
A dollar is a dollar. The invested dollar might feel cooler, but it has the same buying power as the uncool saved dollar.
Gift Cards – Not Ideal
This next lesson is going to sound crass: giving a gift card is the same as saying, “here’s a cash gift, except I’m actively taking away your fungibility.”
Again, I’m guilty of this. I’ve given gift cards. I completely understand the sentiment. “I know you like [insert hobby, store, restaurant, etc. here], but I don’t know precisely what you’d buy from there. So here’s a gift card.”
But gift cards steal choice. They steal the fungibility of money. A cash gift can be used to buy anything in the world. A GolfWorld gift card cannot.
My two cents: just buy your loved ones an actual item, and include a gift receipt.
Dividend Bros
I’ve taken down dividend bros before on The Best Interest. Their arguments are varied. One of the dumber pro-dividend arguments is that dividends provide a level of liquidity that non-dividend-paying stocks cannot provide.
This argument is, in short, made in ignorance of fungibility. Dividends are fungible with stock ownership (exclusive of taxes). The same income provided by dividends could be created by selling a portion of the stock itself. Stocks are fungible, cash is fungible, and thanks to the efficiency of the market, stocks and cash are fungible with one another.
(In fact, once taxes are considered, dividend payments are almost always worse than simply selling stock.)
“Buy Yourself Something Nice”
When Grandma gives you $20 to “buy yourself something nice,” she’s missing a lesson in fungibility.
In reality, Grandma’s $20 gets comingled with all the other available dollars to you, and any future $20 purchase is drawn from those comingled dollars. Grandma’s contribution only paid a small role in that purchase. Sorry, Ethel!
All the other purchases you make in the future – good, bad, or ugly – will use Grandma’s contribution too.
The same idea applies in other arenas:
Charities use a percentage of donations for their own administration. Every charitable dollar is comingled and then drawn against. Nobody’s contribution goes 100% to the charitable cause.
Many citizens use government assistance to purchase necessities (e.g. buying food with food stamps) and then use cash to purchase other items. That food stamp money is partially fungible. Food dollars can be replaced by food stamps, though food stamps cannot be sold for real dollars. If someone receives $200 in food stamp aid, they can spend $200 real dollars elsewhere. In short, a percentage of every real dollar spent is subsidized by the food stamp dollars.
When you find a $100 bill sitting in the parking lot and decide to test your luck with Lottery tickets. Hey, it wasn’t your money in the first place, right? Again, money is fungible and this line of thinking misses an important lesson.
Splurging
A sudden windfall gives you an unexpected $50,000. What do you do with the money?
A common idea is to splurge on something nice – say, with 10-20% of the windfall – then save the rest. I’m on board with this idea from a psychological perspective. But this splurge does not jive with the concept of fungibility.
Because if you wouldn’t spend your own hard-earned dollars on a $5,000 – $10,000 splurge, you shouldn’t spend windfall money in that way either. These dollars are all fungible. Windfall money should be treated exactly the same as the other money in your life.
Now, perhaps you were already slowly saving for such a splurge. You were already setting aside hard-earned dollars for the splurge. The windfall simply accelerates your timeline. That makes sense.
What doesn’t make sense is for someone to say,
“I would never spend my own money this way, but I’m fine spending a windfall this way…”
Money is fungible. It is spent fungibly. It should be thought of fungibly.
Thank you for reading! If you enjoyed this article, join 6000+ subscribers who read my 2-minute weekly email, where I send you links to the smartest financial content I find online every week.
-Jesse
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This guest post from Sydney is part of the “reader stories” feature at Get Rich Slowly. Sydney blogs about personal finance, entrepreneurship, self improvement, travel and lots of other fun stuff on Untemplater.com. Some reader stories contain general advice; others are examples of how a GRS reader achieved financial success or failure. These stories feature folks with all levels of financial maturity and income.
It’s hard to believe it’s been about 20 years since my parents first separated, and it’s actually a blessing it happened when it did. No parent ever wants to put his or her child through the nastiness, heartache and sadness that comes with divorce, but having lived through my parents’ split, I can tell you that it actually can be the best option.
When I was a kid, I didn’t understand why my parents couldn’t get along. Neither one of them was mean or evil; they didn’t cheat on each other. They had jobs, loved me, supported my interests and activities, and they didn’t seem that different from my friends’ parents. Well, except for the arguing. It got really nasty toward the end of their marriage. There is absolutely nothing positive or healthy for a child of any age who has to live in a house with two yelling parents.
Money and debt drove my parents apart
I tried to avoid them when they were angry at each other, but it was hard not to listen to them even from down the hall with my door closed. What was the No. 1 thing they would always fight about? Money. Their finances were terrible. It wasn’t until I became an adult that I learned just how bad they were with money. Even though both my parents worked full time, they had low-paying jobs and a staggering amount of debt.
I’m convinced that my parents’ radically different views on money were main reasons they were incompatible as a couple. My mom loved to spend money that she didn’t have. She probably had about 20 different credit cards. My dad was pretty much the complete opposite. He was extremely frugal and did everything he could to save money by fixing things around the house on his own. He always found ways to reuse things, hated shopping, and could stretch a dollar in so many different ways. Every time he tried to talk to her about bills and budgeting, she’d try to brush off the ugly stuff and then they’d both end up blowing up.
Here are 10 things I want to share with you that my parents inadvertently taught me about love, work and money.
1. Don’t rush into marriage. Don’t tell them I told you, but my parents had a shotgun wedding and they started things out rushed and frazzled. They were lucky to be in love at the time, but they had no savings, and didn’t really know what they were getting themselves into. I didn’t want the same thing to happen to me, so I took my time finding and getting to know my soul mate. We openly talked about our relationship, goals and desires before deciding to settle down, and things have been incredible!
2. Talk about money while you’re dating. Being on the same page with your partner about money and financial goals is so important. I’m not saying you need to talk budgeting and financial goals in the first few months of dating someone, but if you want to take things to the next level, you owe it to yourselves to talk about money way before tying the knot. If you have drastically different thoughts on budgeting and saving, be forewarned this will bring a lot of stress and tension over time, and things could get very, very ugly.
3. Go to college and don’t expect your parents to pay 100 percent. My parents didn’t graduate from college, and this put a limit on their career paths and eligibility for promotions and raises. They were incredibly supportive of me going to college, and I was lucky to have paid for half of my tuition through financial aid and grants. Having to foot the other half of the bill myself taught me to be disciplined and work hard for good grades and internships. Paying for some or all of your schooling yourself is incredibly motivating and makes you really appreciate your education and the opportunities it presents.
4. Become financially independent. The fact that my parents didn’t have a lot of money was a big reason why I studied and worked so hard. I’m saving as much as I can and fighting hard to get paid what I’m worth. Being financially independent is an incredible feeling and gives you so many freedoms. I love the quote from Mary Schmich’s essay “Wear Sunscreen”: “Don’t expect anyone else to support you. Maybe you have a trust fund. Maybe you’ll have a wealthy spouse. But you never know when either one might run out.”
5. Avoid credit card debt. Credit card debt is bad. Just don’t do it. If you can’t afford something, just leave it in the store. I wish my mom learned this when she was young. Credit card debt has put both of my parents through hell. I shudder to think about how much money they threw away over the years in interest, fees and penalties.
6. Update your budget at least twice a year. My parents never made a budget when they were married. I, on the other hand, am crazy about budgets. I love tracking my savings and looking at my short- and long-term financial goals. The markets are always changing, so I also recommend diversifying your income streams and monitoring all of your investments regularly.
7. Don’t waste money on junk. I couldn’t even count how many car loads of clothes, books, household goods and junk I’ve donated to Goodwill over the years. A lot of it was from things my mom bought for me over the years, as well as stuff I accumulated in my 20s that I really didn’t need. I’ve adopted a moderate minimalist lifestyle now, and I’m happy not shopping. Instead, I take care of my things so they last. I have absolutely no interest in designer jeans, handbags or shoes. The money I do spend is on traveling, activities, helping my family and saving for an early retirement.
8. Have difficult conversations. My parents had a lot of problems communicating with each other and it brought so much stress and unhappiness into their marriage. I’ve learned that relationships build on trust and deep conversations. Relationships can also grow stronger through having difficult conversations and facing the awkward, scary, uncomfortable and unpleasant things head on.
9. Don’t quit your job without a plan. There were several times that my dad quit his job on the spot without anything else lined up; that really put our family between a rock and a hard place. I learned never to quit a job without a plan in place and another job waiting. It’s easy to take our jobs and benefits for granted until we lose them, and then we desperately need income and coverage. My advice is to calculate your cost of living and make sure you have at least 12 months’ worth in savings before making any radical career or life changes.
10. Think positively and help others. Keep a positive attitude whenever you can. You’ll be surprised how much better your life will become! We don’t need a lot to be happy. Look around you and be thankful for what you do have. I’m very grateful that my parents taught me to look on the bright side of things and help others. They weren’t always happy or trouble-free themselves, but they always took care of me and reminded me that even when things are bad, there are always other people out there who need help much more than we do.
Sometimes I wonder what life would have been like if my parents didn’t have all those money problems and stayed happily together. I know one thing, the holidays and visits would have been so much easier without having to shuttle back and forth! But I think their struggles led me to become the motivated, patient and independent person I am today. It’s what we learn from our experiences that make us better!
Interest, $25 Fixed, or Deferred Repayment Options
Rates: Lowest rates shown include the auto debit discount. Fixed – 4.50% APR-14.83% APR and Variable – 5.87%-16.20% APR. Additional information regarding the auto discount:
Advertised APRs for undergraduate students assume a $10,000 loan to a student who attends school for 4 years and has no prior Sallie Mae-serviced loans. Interest rates for variable rate loans may increase or decrease over the life of the loan based on changes to the 30-day Average Secured Overnight Financing Rate (SOFR) rounded up to the nearest one-eighth of one percent. Advertised variable rates are the starting range of rates and may vary outside of that range over the life of the loan. Interest is charged starting when funds are sent to the school. With the Fixed and Deferred Repayment Options, the interest rate is higher than with the Interest Repayment Option and Unpaid Interest is added to the loan’s Current Principal at the end of the grace/separation period. To receive a 0.25 percentage point interest rate discount, the borrower or cosigner must enroll in auto debit through Sallie Mae. The discount applies only during active repayment for as long as the Current Amount Due or Designated Amount is successfully withdrawn from the authorized bank account each month. It may be suspended during forbearance or deferment. Advertised APRs are valid as of 4/25/2023. No payment penalty: Although we do not charge a penalty or fee if you prepay your loan; any prepayment will be applied as outlined in your promissory note- first Unpaid Fees and costs, then to Unpaid interest, then to Current Principal.
Terms: Examples of typical costs for a $10,000 Smart Option Student Loan with the most common fixed rate, fixed repayment option, 6-month separation period, and two disbursements: For a borrower with no prior loans and a 4-year in-school period, it works out to a 10.28% fixed APR, 51 payments of $25.00, 119 payments of $182.67 and one payment of $121.71, for a Total Loan Cost of $23,134.44. For a borrower with $20,000 in prior loans and a 2-year in-school period, it works out to a 10.78% fixed APR, 27 payments of $25.00, 179 payments of $132.53 and one payment of $40.35 for a total loan cost of $24,438.22. Loans that are subject to a $50 minimum principal and interest payment amount may receive a loan term that is less than 10 years.
Variable Rate: 5.87% to 16.20% APR (with autopay)
Fixed Rate: 4.50% to 14.83% APR (with autopay)
Effective Date: 4/25/2023
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Bankrate Score
Fixed APR From
4.49-
13.80%
with AutoPay
Loan Amount
$1k- $500K
Term: 5-15 yr
Min. Credit
640
Easy online application!
No origination fees, late fees, and no insufficient fund fees. Period
Flexible repayment options to help you find the right loan for you
0.25% discount when you set up autopay*
0.125% discount for returning borrowers and families with multiple children in college
UNDERGRADUATE LOANS: Fixed rates from 4.49% to 13.80% annual percentage rate (“APR”) (with autopay), variable rates from 5.16% to 13.07% APR (with autopay). GRADUATE LOANS: Fixed rates from 5.25% to 13.60% APR (with autopay), variable rates from 5.79% to 13.07% APR (with autopay). PARENT LOANS: Fixed rates from 6.50% to 13.98% APR (with autopay), variable rates from 6.32% to 13.13% APR (with autopay). For the SoFi variable-rate product, the variable interest rate for a given month is derived by adding a margin to the 30-day average SOFR index, published two business days preceding such calendar month, rounded up to the nearest one hundredth of one percent (0.01% or 0.0001). APRs for variable-rate loans may increase after origination if the SOFR index increases. Interest rates for variable rate loans are capped at 13.95%, unless required to be lower to comply with applicable law. Lowest rates are reserved for the most creditworthy borrowers. If approved for a loan, the interest rate offered will depend on your creditworthiness, the repayment option you select, the term and amount of the loan and other factors, and will be within the ranges of rates listed above. The SoFi 0.25% autopay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. Information current as of 04/28/2023.
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Bankrate Score
Fixed APR From
3.65-
16.18%
with AutoPay
Loan Amount
$1k- $400K
Term: 5-20 yr
Min. Credit
640
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Variable rates will fluctuate over the term of the borrower’s loan with changes in the LIBOR rate. The maximum variable rate on the Education Refinance Loan is the greater of 21.00% or Prime Rate plus 9.00%. Rates are subject to change at any time without notice. Your actual rate may be different from the rates advertised and/or shown above and will be based on factors such as the term of your loan, your financial history (including your cosigner’s (if any) financial history) and the degree you are in the process of achieving or have achieved. While not always the case, lower rates typically require creditworthy applicants with creditworthy co-signers, graduate degrees, and shorter repayment terms (terms vary by lender and can range from 5-20 years) and include loyalty and Automatic Payment discounts, where applicable. Loyalty and Automatic Payment discount requirements as well as Lender terms and conditions will vary by lender and therefore, reading each lender’s disclosures is important. Additionally, lenders may have loan minimum and maximum requirements, degree requirements, educational institution requirements, citizenship and residency requirements as well as other lender-specific requirements.
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Bankrate Score
Fixed APR From
4.44-
15.32%
with AutoPay
Loan Amount
$1k- $500K
Term: 5-20 yr
Min. Credit
680
Competitive fixed and variable rates starting at 4.49%*
Four different repayment options
Choice of loan terms (5, 8, 10, and 15 years)*
No application, origination or disbursement fees
Borrow up to 100% of your school’s cost of attendance*
*College Ave Student Loans products are made available through Firstrust Bank, member FDIC, First Citizens Community Bank, member FDIC, or M.Y. Safra Bank, FSB, member FDIC.. All loans are subject to individual approval and adherence to underwriting guidelines. Program restrictions, other terms, and conditions apply.
Rates shown are for the College Ave Undergraduate Loan product and include autopay discount. The 0.25% auto-pay interest rate reduction applies as long as a valid bank account is designated for required monthly payments. If a payment is returned, you will lose this benefit. Variable rates may increase after consummation.
This informational repayment example uses typical loan terms for a freshman borrower who selects the Deferred Repayment Option with a 10-year repayment term, has a $10,000 loan that is disbursed in one disbursement and a 8.35% fixed Annual Percentage Rate (“APR”): 120 monthly payments of $179.18 while in the repayment period, for a total amount of payments of $21,501.54. Loans will never have a full principal and interest monthly payment of less than $50. Your actual rates and repayment terms may vary. As certified by your school and less any other financial aid you might receive. Minimum $1,000.
Information advertised valid as of 05/01/2023. Variable interest rates may increase after consummation. Approved interest rate will depend on the creditworthiness of the applicant(s), lowest advertised rates only available to the most creditworthy applicants and require selection of full principal and interest payments with the shortest available loan term.
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Never pay more than the maximum payment cap.
Edly Student IBR Loans are unsecured personal student loans originated by FinWise Bank, a Utah chartered commercial bank, member FDIC. All loans are subject to eligibility criteria and review of creditworthiness and history. Terms and conditions apply.
Loans from $5,000 – $20,000 Example: $10,000 IBR Loan with a 7% gross income payment percentage for a Senior student making $65,000 annually throughout the life of the loan.
Payments deferred for the first 12 months during final year of education.
After which, $270 Monthly payment for 12 months.
Then $379 Monthly payment for 44 months.
Followed by one final payment of $137 for a total of $20,610 paid over the life of the loan.
About this example
The initial payment schedule is set upon receiving final terms and upon confirmation by your school of the loan amount. You may repay this loan at any time by paying an effective APR of 23%. The maximum amount you will pay is $22,500 (not including Late Fees and Returned Check Fees, if any). The maximum number of regularly scheduled payments you will make is 60. You will not pay more than 23% APR. No payment is required if your gross earned income is below $30,000 annually or if you lose your job and cannot find employment.
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Bankrate Score
Fixed APR From
4.45-
14.90%
with AutoPay
Loan Amount
$1k- $350K
Term: 5-20 yr
Min. Credit
650
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Lifetime service provided in-house. Unlike other lenders, we will never pass you off to third-party servicers
No fees for origination, prepayment, or loan disbursement
Two-minute rate check with no obligation at www.earnest.com
Actual rate and available repayment terms will vary based on your income. Fixed rates range from 4.70% APR to 15.15% APR (excludes 0.25% Auto Pay discount). Variable rates range from 5.40% APR to 16.67% APR (excludes 0.25% Auto Pay discount). Earnest variable interest rate student loan origination loans are based on a publicly available index, the 30-day Average Secured Overnight Financing Rate (SOFR) published by the Federal Reserve Bank of New York. The variable rate is based on the rate published on the 25th day, or the next business day, of the preceding calendar month, rounded to the nearest hundredth of a percent. The rate will not increase more than once per month. Although the rate will vary after you are approved, it will never exceed 36% (the maximum allowable for this loan). Please note, Earnest Private Student Loans are not available in Nevada. Our lowest rates are only available for our most credit qualified borrowers and contain our .25% auto pay discount from a checking or savings account. It is important to note that the 0.25% Auto Pay discount is not available while loan payments are deferred.
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Bankrate Score
Fixed APR From
4.89-
10.39%
with AutoPay
Loan Amount
$1k- $500K
Term: 5-20 yr
Min. Credit
660
2-Minute rate check with no impact on your credit score
No origination fees or prepayment penalties
Network of 300+ community lenders means higher chances for approval and lower rates
Available for private and federal, undergraduate and grad school student loans
0.25% Interest Rate Reduction with automatic payments
One of the largest unemployment protection offers in the market; up to 18 months
Cosigner release available after 12 monthly payments
Loan products, terms, and benefits may be modified or discontinued by participating lenders at any time without notice. Rates displayed are reserved for the most creditworthy consumers who enroll to make automatic monthly payments. Your initial rate will be determined after a review of your application and credit profile. Variable rates may increase after consummation. You must be either a U.S. citizen or Permanent Resident in an eligible state and from an eligible school, and meet the lender’s credit and income requirements to qualify for a loan. Certain membership requirements (including the opening of a share account, a minimum share account deposit, and the payment of any applicable association fees in connection with membership) may apply in the event that an applicant wishes to apply with, and accept a loan offered from, a credit union lender. If you are not a member of the credit union lender, you may apply and become a member during the loan application process if you meet the lender’s eligibility criteria. Applying with a creditworthy cosigner may result in a better chance of loan approval and/or lower interest rate. Loans for exam preparation classes, including, but not limited to, loans for LSAT, MCAT, GMAT, and GRE preparation, are not available via LendKey.com.
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Bankrate Score
Fixed APR From
4.99-
14.28%
with AutoPay
Loan Amount
$1k- $225K
Term: 5-15 yr
Min. Credit
640
With the most options of any lender, we’ll help you find a great way to pay for college
No application, origination or disbursement fees
Multi-year approval provides a simple way to secure funding for additional years in school†
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Variable Rate Disclosure: Variable interest rates are based on the 30-day average Secured Overnight Financing Rate (“SOFR”) index, as published by the Federal Reserve Bank of New York. As of May 1, 2023, the 30-day average SOFR index is 4.82%. Variable interest rates will fluctuate over the term of the loan with changes in the SOFR index, and will vary based on applicable terms, level of degree and presence of a co-signer. The maximum variable interest rate is the greater of 21.00% or the prime rate plus 9.00%.
Fixed Rate Disclosure: Fixed rate ranges are based on applicable terms, level of degree, and presence of a co-signer.
Lowest Rate Disclosure: Lowest rates are only available for the most creditworthy applicants, require a 5-year repayment term, immediate repayment, a graduate or medical degree (where applicable), and include our Loyalty and Automatic Payment discounts of 0.25 percentage points each, as outlined in the Loyalty Discount and Automatic Payment Discount disclosures. Rates are subject to additional terms and conditions, and are subject to change at any time without notice. Such changes will only apply to applications taken after the effective date of change.
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Bankrate Score
Fixed APR From
4.48-
12.29%
Loan Amount
$1k- $500K
Term: 5-15 yr
Min. Credit
680
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The interest rate and monthly payment for variable rate loans may increase after closing. Your actual interest rate may be different from the rates shown above and will be based on the term of your loan, your financial history, and other factors, including your cosigner’s (if any) financial history. For example, a 10 year loan with a fixed rate of 6% would have 120 payments of $11.00 per $1,000 borrowed. Education Loan Finance Parent Loans are limited to a maximum of the 10-year term.
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Bankrate Score
Fixed APR From
4.62-
15.91%
Loan Amount
$2k- $200K
Term: 5-20 yr
Min. Credit
Not disclosed
No cosigner required, ever.
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Updated disclosure: Ascent’s undergraduate and graduate student loans are funded by Bank of Lake Mills, Member FDIC. Loan products may not be available in certain jurisdictions. Certain restrictions, limitations; and terms and conditions may apply. For Ascent Terms and Conditions please visit: www.AscentFunding.com/Ts&Cs. Rates are effective as of 5/1/2023 and reflect an automatic payment discount of either 0.25% (for credit-based loans) OR 1.00% (for undergraduate outcomes-based loans). Automatic Payment Discount is available if the borrower is enrolled in automatic payments from their personal checking account and the amount is successfully withdrawn from the authorized bank account each month. For Ascent rates and repayment examples please visit: AscentFunding.com/Rates. 1% Cash Back Graduation Reward subject to terms and conditions. Cosigned Credit-Based Loan student must meet certain minimum credit criteria. The minimum score required is subject to change and may depend on the credit score of your cosigner. Lowest APRs require interest-only payments, the shortest loan term, and a cosigner, and are only available to our most creditworthy applicants and cosigners with the highest average credit scores.
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Budgeting is not easy!
It can be stressful and complicated to stay on top of your finances.
It takes willpower, discipline, patience—but also creativity and flexibility in order for us to stick with it long enough that we start saving money as well.
A budget binder with envelopes is the perfect tool for keeping everything organized.
With this very simple and easy-to-use tool, you can organize all of your budgets and actual spending for multiple cash envelope categories in one place—all within an envelope that easily fits into a purse or wallet!
The hardest part is finding one that suits your needs.
In fact, 65% of Americans have no ideas how they spent their money last month.
In this post, we are going to review the topic budget binder with envelopes, so you can make a logical decision on what is best for you.
Why you should use a budget binder?
A budget binder is a great way to keep your finances organized. It can help you track your expenses, stay on budget, and save money.
In addition, with budgeting, you reduce your spending and plan for the future.
There are several ways to use a budget binder:
Set spending limits so you can save money
Label envelopes with category names like “groceries” and “dining out.”
Add money to an envelope as you spend it in that category, even if it’s not the last envelope for that category.
If there is leftover money at the end of the month, put it into savings or your emergency fund (or use it next month).
This type of detail will help you stay organized and aware of your spending habits. Learn more on how to create a budget binder.
Are budget binders worth it?
Though budget binders are not a new concept, they are still worth using to help you stay on top of your spending.
By recording where each penny goes, you can more easily track your progress and make necessary adjustments along the way.
Budget binders can be found in both digital and printed formats. They are often sold on Amazon, but they may also be bought online from other sellers like Etsy.
Budget binders are a popular way to stay organized and save money.
What to include in your budget binder
A budget binder is a place where you can keep all of your financial information in one spot–including accounts, receipts, and other important paperwork. This will help you stay up-to-date on your spending and make it easier to track expenses.
There are some key items that you should include in your budget binder so that it’s most effective for you.
It’s also helpful to have a section for current account statements and recent receipts.
When it comes to personal finance, the organization is key.
A great way to get your budget in order is by using a budget binder with cash envelopes. This method is very simple and can be customized to fit your own needs.
If you want to organize your budget in a simple way, then consider using a budget binder with envelopes. This will help you to easily separate your expenses into different categories.
Here are the best budget binders with cash envelopes to choose from.
This budget binder is a great way to organize your finances. It is lightweight and easy to carry, making it convenient for use at home, work, or school.
The A6 size fits easily in your handbag or backpack, and the money pocket and cards holder make it easy to keep your important documents safe and secure.
Additionally, waterproof sticker labels make it easy for you to categorize everything you need to carry with you.
This budget binder is a great way to organize your finances. It comes with money saving envelopes for cash, as well as inserts that can go into the A6 ring binder. You can also carry it with you anywhere thanks to its handy zipped up holders.
This SOUL MAMA A6 Budget Binder with Cash envelopes is the perfect way to budget your money. It comes with pre-printed inserts for saving money, and the color scheme is half holographic purple and half white. The labels are also written in beautiful rose gold font.
The material makes it both quality and tear-resistant, while the waterproof and soft-to-the-touch design keeps your documents safe. Plus, there’s a 100% satisfaction guarantee, so you can be sure that you’re making a sound investment.
This budget binder is a great way to organize your finances. The faux leather binder has a pen loop and card pockets, which are perfect for hiding passports, ID cards, bank cards, and other important things.
Plus, the personalized holographic design will make you feel like a boss!
There are a variety of cash envelope options to help organize your budget. The most common are envelopes for Mortgage/Rent, House bills, Car payments, Car insurance, and Groceries. You can find specialized envelopes or create your own system.
Label each envelope with the name of the category and the amount you plan to spend each month. When the money is gone, it’s gone!
You can find purchase add-ons with extra envelopes and budget tracking sheets in their shop.
Clever Fox cash envelopes are tear-resistant, water-resistant and durable, making them the perfect option for budgeting.
This Clever Fox cash envelope system is perfect for organizing your budget. The set includes a carrying case, 12 budget sheets, and enough envelopes to track all of your purchases and what you have left to spend. Each envelope has a different color for each budgeting category, so you can stay on top of your spending with ease.
I love the Clever Fox Cash Envelopes for Budget System because of its great features.
The tracker has a zippered storage case to keep everything together and each envelope has a blank category label. When you lift the flap, there’s another label with plenty of space to write down the details! Plus, the quality is fantastic and I love how they include purchase trackers with every set.
Recently, I stumbled upon this super cute budget book that is perfect for organizing your finances.
This A6 budget binder comes with a customized cash envelope system, which will help you stay on track with your budget.
You can choose the color of your binder, the font for your personalization, and the vinyl color. You can also choose to have your name printed on the front of the binder as well as a phrase of your choice.
The quality of the book exceeded my expectations, and the best part is that it’s just so darn cute! If you’re looking for a custom budget binder, I would highly recommend this one.
This SKYDUE Budget Binder comes with 12 envelopes for cash, which makes it easy to keep track of your budget. The binder also has 16 self-adhesive labels to help you stay organized, and it fits in your handbag, backpack, suitcase, or desk.
In addition, the SKYDUE Budget Binder with 12pcs Cash Envelopes is perfect for college students.
The binder and sleeves are made from durable materials that can withstand wear and tear, while the cash envelopes are a great way to start using the sinking funds saving method. Plus, the pouches are big enough to hold a decent amount of money without being too bulky.
A customized cover is a great way to personalize your budget binder!
This starter set gives you all the basics you need to get started. You can have a maximum of 8 envelopes in your binder for a comfortable fit, but feel free to adjust this number according to your needs.
The binder was well put together and the customer service was amazing. The money was well spent and there are many customers very happy with the final product.
A personalized cash envelope binder is a great way to organize your budget.
You can customize the binder with any name or wording in any font color! The set includes a binder and 5 personalized cash envelopes.
This is a great way to start budgeting and get your finances under control.
This cash envelope wallet is perfect for budgeting. It has RFID blocking to keep your cash safe and a heavy duty wristlet to make sure it stays with you.
There are 12 cash envelopes included so you can get started right away, and the vertical design of the envelope makes it easy to add and remove bills or track your spending.
Personally, I like the plastic tabbed cash envelopes because they are durable and small enough to be taken out of my planner system without getting squished. The vertical orientation is easier to see, which helps me keep track of how much money I have left in each category.
In addition, this binder comes with access to a library of 50+ A6 printable pages. There are 12 monthly budget sheets included helping you build your budget and get organized. With this system, you can take control of your finances and see where your money is going.
This budget binder from TNHomegrowndesigns is a great way to start organizing your finances. It includes everything you need to get started, including cash envelopes and a money holder. The cash envelope system is a simple way to budget your money, and this binder makes it easy to do.
You can choose the color and number of envelopes you want, as well as have it customized with your name. This is a great way to organize your budget in a simple way.
Budget Binders with Envelopes DIY
If you’re looking for a low-cost option to organize your finances, consider using a DIY budget binder with envelopes.
This approach allows you to maintain control over your spending even during income fluctuations. Plus, by using airtight plastic bags to store the envelopes, you can save money on buying new folders!
How do you make a budget binder with envelopes?
Honestly, it is just as easy to create your own budget binder as it is to buy one pre-made.
Here are the supplies you need:
The benefits of making your own are personal customization and adding what is important to your personal situation.
For more information, learn how to create a budget binder.
How to organize your budget in a simple way
There are a few different ways to organize your budget:
Income and Expenses: This is probably the most common way to organize a budget. It separates your income from your expenses, so you can see how much money you have coming in and going out.
Fixed and Variable Expenses: This way of organizing a budget separates your fixed expenses, like your rent or car payment, from your variable expenses, like your grocery bill. This can be helpful in seeing where you spend money.
There are a few different ways to organize your budget, but we think starting with a zero based budget is best.
How much money do you save with the envelope system?
The envelope system is a popular way to budget and helps people save money faster.
It works by allocating specific amounts of money to each category of expense and putting that money into an envelope. When the envelope is empty, you can’t spend any more money in that category. This helps people stay within their budget and avoid overspending.
If you need to save money on a tight budget, then the envelope system is helpful.
In fact, many people have had great success with saving over $5000 using the 100 envelope challenge.
Tips for sticking to your budgeting system
When it comes to sticking to your budget, there are a few things you can do to make it easier.
For starters, don’t spend more than you can afford.
If you have debts or other expenses, make sure you factor those into your budget as well.
Also, be sure to set realistic goals and limits for yourself- if you try to cut back too much, you’re likely to give up before you even start.
At the same time, don’t be afraid to experiment a little bit and try new things with the money you have. Just because something is outside of your budget doesn’t mean you can’t enjoy it sometimes!
By being smart about how you spend your money, you can stick to your budget without feeling too restricted.
Which Budget Binder with Cash Envelopes is your Favorite?
A budget binder is a great way to organize your finances and keep track of where your money is going.
Cash envelopes help to visually budget your money. You can use them to plan and budget for what you are going to spend each week or month. This will help you stay on track with your finances and change your future for the better.
In this system, you will have separate envelopes for each category of your budget, such as rent, groceries, and utilities. This will help you track your spending and stay within your budget by paycheck method.
Know someone else that needs this, too? Then, please share!!
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Last week, I tackled two questions from fans of Mint.com on Facebook. This week, I’ll tackle three more.
Q1: How does having student loans really affect your credit “image” and at what point/value?
A student loan is just that… a loan. And, if that particular loan (or loans, if you’ve got several of them) is reported to the credit reporting agencies, then the same rules about how loans impact your credit scores are going to apply. The point being, you don’t get more or less “points” simply because it’s a student loan.
Student loans are installment loans, which means there is a fixed payment for a fixed period of time. Installment loans don’t have a huge impact on credit scores because they’re normally more stable than, for example, credit cards. The reason installment loans are more stable is because the downside to not paying them is more invasive than the downside to not paying credit card debt. For example, your tax returns can be affected if you don’t pay your student loans.
Having said that, student loans are a perfectly effective way to build a solid credit report. If you’re paying your debt on time month after month, then that will help you to establish good credit scores.
Q2: How do I get credit for paying my student loan that’s in my parent’s names? The lender won’t let me switch or refinance it.
Well, that is quite a conundrum. Basically, you’re paying off a loan that belongs to your parents and they’re the ones getting the value of your on-time payments. While it might seem easy for the lender to swaps names on the promissory note, it’s never that simple.
Here’s a solution: Take out a personal loan and pay off the student loans in full. This way, you’ll become obligated to pay back the loan, which will show up on your credit reports and it gets your parents out of the equation. There are some downsides to this strategy that you should keep in mind:
First, if the aggregate amount of your student loans is too high, then you might not be able to qualify for a personal loan large enough to wipe it out. Second, you are going to lose any tax benefit because interest on personal loans is not deductible and interest on student loans normally is. Finally, the interest rate on a personal loan is probably going to be much higher than the rate on the student loans, so the debt just became more expensive.
I’d suggest that you perhaps look at other solutions for building your credit reports and scores. There are many credit card options that won’t cost you a dime, as long as you pay the balance in full each month. Opening a card is the most cost-effective way for responsible consumers to build credit.
Q3: Are my student loans going to ruin my chances for a mortgage, even with no late payments and excellent credit?
Coverage of student loans has been pretty negative over the past few years, and for good reason. We’re now in $1 trillion dollars of student loan debt, which outpaces our credit card debt. Student loan debt can’t easily be wiped out with a bankruptcy, so we’re stuck with it until we pay it… or die.
Having said that, from strictly a credit reporting and scoring perspective, there’s absolutely nothing wrong with student loans. In fact, your student loans could be help your chances to qualify for a mortgage, especially if you’re paying them on time, which it sounds like you are.
The one thing you should keep in mind is how the debt impacts your “DTI” or debt-to-income ratio, which is the amount you’re obligated to pay relative to the amount you earn. The point being, even with solid credit scores, having too much debt of any type can disqualify you for a loan, even if you’re got fantastic credit scores.
The best thing you can do is to continue to pay your loans on time, month after month.
John Ulzheimer is the President of Consumer Education at SmartCredit.com, the credit blogger for Mint.com, and a contributor for the National Foundation for Credit Counseling. He is an expert on credit reporting, credit scoring and identity theft. Formerly of FICO, Equifax and Credit.com, John is the only recognized credit expert who actually comes from the credit industry. The opinions expressed in his articles are his and not of Mint.com or Intuit. Follow John on Twitter.
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Attracting bright minds from all corners of the globe Massachusetts boasts some of the best college towns in the country.
Join us as we explore some of the best college towns in Massachusetts, from the classic charm of Cambridge and Amherst to the hustle and bustle of Boston and Worcester, these towns are top of the class. Whether you’re a prospective student, a parent or just someone interested in the unique atmosphere of college towns, this guide will give you a taste of what makes these Massachusetts gems so special.
Let’s kick off our journey with the quintessential college town, Cambridge. Home to Harvard University and the Massachusetts Institute of Technology (MIT), this charming city has a long history of academic excellence. Nestled just across the Charles River from Boston, Cambridge offers a mix of historical architecture, cutting-edge innovation and a vibrant intellectual culture that’s hard to beat.
Harvard Square is the heart of Cambridge, a lively hub where students, tourists and locals alike gather when the sun is shining in Massachusetts. The square is filled with coffee shops, bookstores and eclectic boutiques, perfect for an afternoon of shopping or people-watching.
When hunger strikes, enjoy a meal at one of the many restaurants, ranging from American classics to international cuisine. And with so many events and festivals throughout the year, there’s always something happening in this bustling college town.
Next up on our tour of the best college towns in Massachusetts is Amherst. Home to the University of Massachusetts Amherst, Amherst College and Hampshire College, this picturesque town is a haven for academics and nature lovers alike. Surrounded by the beautiful Pioneer Valley, Amherst offers outdoor enthusiasts plenty of opportunities for hiking, biking and exploring the majesty of the great outdoors.
In the heart of Amherst, you’ll find a charming downtown area, complete with locally-owned shops, art galleries and an impressive selection of restaurants. The Amherst Cinema, an independent theater, showcases a mix of popular films and arthouse flicks, making it a favorite spot for film buffs. And with several nearby farms and orchards, it’s easy to see why Amherst is a favorite among foodies.
Our next stop brings us to the bustling metropolis of Boston. While not a traditional college town, Boston is home to more than 50 colleges and universities, including Boston University, Northeastern University and Suffolk University. With so many stellar schools within its city limits, Boston offers a unique blend of history, culture and academia.
The city’s rich history is on display at every turn, from the Freedom Trail to the historic Beacon Hill neighborhood. Alongside its storied past, Boston boasts a vibrant arts scene, a plethora of museums and some of the best shopping in the region. And with a robust public transportation system, getting around the city is a breeze, making it easy to explore all that Boston has to offer.
Just a few miles north of Boston, you’ll find the charming city of Medford. Home to Tufts University, Medford is a quaint, picturesque community that perfectly balances the convenience of city living with the charm of a small town. The Mystic River runs through the heart of the city, providing a peaceful backdrop for leisurely strolls, bike rides and riverside study sessions.
Medford’s historic downtown area is filled with unique shops and eateries, as well as the Medford Public Library, an architectural gem that dates back to the 19th century. And with a variety of festivals and events throughout the year, including the annual Arts Across Medford event, there’s always something of interest in this vibrant college town.
Another great option for those seeking out the best college towns in Massachusetts is Chestnut Hill, a quaint suburb just west of Boston. Home to Boston College, Chestnut Hill offers a serene setting that’s perfect for students looking to balance their academic pursuits with a taste of nature.
Chestnut Hill Reservoir, a popular spot for jogging, walking or simply soaking in the views, is a must-visit for anyone exploring the area. The picturesque campus of Boston College is also worth a stroll, showcasing beautiful Gothic architecture and sprawling green spaces. For shopping enthusiasts, The Street at Chestnut Hill offers a mix of high-end retailers and unique boutiques, while foodies will appreciate the variety of dining options, from cozy cafés to upscale eateries all within walking distance of campus.
Our journey through the best college towns in Massachusetts wouldn’t be complete without a visit to Worcester, the state’s second-largest city. Home to a whopping nine colleges and universities, including Clark University, Worcester Polytechnic Institute and College of the Holy Cross, Worcester is a diverse, bustling city with plenty to offer.
For those who love the arts, the Worcester Art Museum and the Hanover Theatre for the Performing Arts are must-sees, while sports enthusiasts will appreciate the city’s minor league baseball and hockey teams. The city’s food scene is diverse and constantly evolving, offering a wide range of dining options, from casual eateries to fine dining establishments.
While our list of the best college towns in Massachusetts has focused on some of the most well-known cities, there are plenty of other hidden gems worth exploring. One such town is Northampton, home to Smith College. This vibrant, artsy town is known for its lively music scene, quirky boutiques and a wide array of restaurants and bars. With its scenic surroundings and friendly atmosphere, Northampton is one of those places that students just tend to stick around after receiving their caps and gowns.
Similarly, Williamstown, home to Williams College, is another small town with big charm. Nestled in the scenic Berkshires, Williamstown offers a blend of natural beauty and rich cultural experiences, thanks to the renowned Clark Art Institute and the Williamstown Theatre Festival.
Make one of these Massachusetts college towns your home
Massachusetts is truly a treasure trove of college towns, each with its own unique appeal. From the bustling streets of Cambridge and Boston to the serene beauty of Amherst and Chestnut Hill, these cities offer a diverse range of experiences for students and visitors alike. Whether you’re in search of the quintessential college experience or a thriving city with a rich academic scene, the Bay State has it all and then some.
First things first — when is a good time to ask for a raise? Coming off a strong performance review in which your boss acknowledged your accomplishments is a good bet, because he will probably be expecting you to broach the subject of money. If you’ve just taken on a new role, or your management has raised the bar for your performance, it is perfectly legitimate to ask for an appointment to discuss “compensation commensurate with new responsibilities”.
Before you sit down with your manager, you’ll want to be prepared with a list of contributions that have enhanced the bottom line. As you’re putting together your case, be hard on yourself. Look at the situation from your company’s point of view. Have you honestly acquired such valuable skills, performed at such a high level, and exceeded expectations to such a degree that your company should shell out more money to keep you?
When scheduling the meeting, pick a time when your boss’s stress level and workload are as manageable as possible and tell her what you want to talk about so she’s prepared. An informal setting like lunch often works best because it allows you to relate to your manager on a personal level. Before you meet face-to-face, decide on a number that you’d be satisfied with, and think about how you’ll respond if you don’t get it.
Here are some tips for the conversation itself:
If you’re underpaid and you know it, refrain from complaining. Acting bitter or angry will only put your manager on the defensive.
Remain calm, positive, and professional.
Tell your boss how much you enjoy working at the company.
Talk about your performance in a factual manner, and provide concrete examples of how you add value to the organization.
When it comes time to pop the question, use the word “compensation” rather than “raise” or “money”.
In the event that your boss declines your raise, don’t close your ears to the rest of the discussion. She may be willing to offer you other perks instead, like extra vacation time, flexible hours or a nice dinner with your significant other on the company. These concessions may not be as valuable as cash, but they can come in handy for somebody struggling to afford the good life outside of work.
Raise discussions are never easy for either party, and if your boss is the passive-aggressive type, he may tell you what you want to hear simply to get you out of his office. Make sure that you follow up appropriately on any verbal promises he makes, and if possible, secure an effective date for your increase. The issue is not closed until you see the change on your paycheck!
By Peter Anderson10 Comments – The content of this website often contains affiliate links and I may be compensated if you buy through those links (at no cost to you!). Learn more about how we make money. Last edited November 5, 2018.
When starting to invest one of the first things that you’ll have to decide is how you want to invest.
Will you choose a tax advantaged retirement vehicle like the 401k or Traditional IRA?
Will you use a Roth IRA that is funded with post-tax dollars?
Will you go down the road of taxable investing through a brokerage account?
Will you use something new like peer-to-peer lending?
All of these are things you are important to consider when setting up your retirement accounts, as it can affect many different aspects of your financial picture.
For me I don’t consider myself a super-savvy investor, but I do feel like I’ve got a pretty good hold on what I want to do for our savings and retirement accounts. I want to invest in mostly passive index funds, and invest in the following account types – in this order:
Invest in Roth IRA to max: First, I want to invest in our Roth IRA to the max of $6000 per investor – $6000 each for my wife and I.
Invest in company 401k to max: Next we’ll be investing in my company 401k up until the max. I’m not sure we’ll be meeting that maximum this year because of other expenses that have come up.
Investing in taxable accounts: Next we would be investing in taxable investments, most likely through an account with Betterment, Wealthfront or one of the discount online brokerages.
So why am I starting our investing via a Roth IRA?
Why We’re Investing With A Roth IRA First
There are a few reasons why we’re investing with a Roth IRA first.
Tax advantages: We really like the idea of investing our money in a Roth IRA, letting it sit there, and never having to pay a dime more in taxes on the contributions or earnings as long as we wait until retirement to withdraw it.
Tax diversification: The Roth IRA is a part of our tax diversification plan, where we invest in both pre-tax and post tax investments so as to hedge our bets when it comes to current and future tax rates and which will be higher or more to our advantage. We’re investing a portion in Roth, and a portion in our 401k which will be taxable at withdrawal.
The Roth allows for flexibility: One thing we like about the Roth IRA is the fact that you can take out your contributions at any time without having to pay it back like the 401k. While it isn’t a good idea to be withdrawing your retirement funds, it can be good to know that in a pinch you can withdraw those contributions. (Note: You can’t withdraw earnings without penalty, only contributions).
College savings and home purchase withdrawals: The Roth IRA also allows account holders to withdraw from contributions and earnings to use the funds to pay for their first home, or for college bills. Normal early withdrawal penalties are waived in these cases.
Easy to start, and tons of options: Opening a Roth IRA is super easy and can be done within a half hour to an hour if you want. Plus companies like Vanguard are making it easier to start, reducing their minimum investments in a wide range of funds to only $1000 to start. Most people should be able to scrape together $1000 to start their Roth IRA! In addition, the companies are making a wide range of investments available to account holders, with many more choices than a traditional 401k.
Roth can be passed down to heirs tax free: While it wasn’t one of our main reasons for choosing the account, the fact that your heirs can withdraw the money tax free from the account upon your death is a plus. The withdrawals are tax free, just like for you.
So those are some of the pluses of the Roth IRA, and why we’re choosing to invest in those accounts first. Of course, we’re hoping to also invest in our company 401k after our max Roth contribution has been reached, as well as possibly some other taxable investments later on if we have a good year and can max out both the Roth and 401k (unlikely).
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Roth IRA Rules
If you’re looking to invest in a Roth IRA as well, here are some posts you might find helpful.
So are you investing in a Roth IRA? If so why? If not, why not? Tell us your thoughts on whether the Roth is the best place to start investing in the comments.
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Most of the time when you apply for a life insurance policy, you need to provide a urine sample as part of your medical examination.
This is one way the insurance company reviews your health along with also giving you a short physical, check your medical records, and drawing a blood sample.
There are a few important reasons why insurance companies perform a urinalysis as part of their application process.
Why Do Insurance Companies Use Urinalysis?
Insurance companies usually perform two main types of tests as part of a urinalysis. First, they do a chemical analysis of your urine. This is so they can check for nicotine or illegal drugs in an applicant’s system.
They also perform a microscopic review of your urine to check for a number of diseases and health conditions.
When you apply for a policy, the insurance company will send over a medical professional to give you a quick medical exam. You can usually pick where and when you want to meet.
Part of this exam will be to take a blood and urine sample. The medical professional will then take these samples back to a lab for the actual testing.
Urinalysis Medical Tests
A urinalysis can detect several health problems. First, the insurance company will check whether there is sugar in your urine. This is known as glycosuria and could be a sign of undetected diabetes.
The urinalysis will also review the proteins in your urine for signs of kidney disease. The urinalysis will also check whether red and/or white blood cells are showing up in your urine. Red blood cells could be a sign of a blood disorder or problems with one of your organs. White blood cells could be the sign of an infection.
Beyond these medical tests, the urinalysis also tries to detect traces of nicotine and illegal drugs as some applicants lie about their tobacco and drug use on their applications.
What Happens After the Urinalysis?
The whole medical review process, including the urinalysis, takes some time, usually a few weeks. The insurance company will use the results of the tests plus your medical records to come up with your insurance rating. This will determine whether you qualify for a policy and at what price.
Once the insurance company comes up with your rating, your insurance agent will reach out to you with the decision. If you don’t have any major health problems, you’ll likely qualify for a normal rating or may even get a discounted policy. If the urinalysis or other reviews showed some health problems, you may get a more expensive, rated policy or may be denied coverage.
In all cases, the insurance agent will tell you why the company made its decision so you’ll know if a health problem showed up. If you receive a policy offer, at this point you can decide whether or not you want to buy the coverage.
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Can I Avoid the Urinalysis?
While most insurance policies require a urinalysis, not all do. If you are buying a small insurance policy, usually one that is for less than $50,000, the insurance company might not require a urinalysis. They’ll make a decision based only on your medical records.
There are also no medical exam life insurance policies that offer coverage without any sort of testing. These policies are more expensive than regular life insurance because they take on all applicants.
There will also likely be restrictions on your coverage like your coverage only applies if you live at least two years after buying the policy. While no medical exam policies have their flaws, they are a good choice if you can’t qualify for anything else.
However, if you don’t have any serious medical problems, you are better off just applying for a regular policy and going through the urinalysis. It’s a quick test and will ensure that you get the best price for your life insurance.
Calculating your Life Insurance Needs
When you see an ad for life insurance most of them will show a random face value, could be $300K or $500K. It makes sense then that most people assume that is the amount to purchase. But what if your needs are greater? How do you really know that proper amount of insurance to buy? Below we’ll talk through some steps on how you should calculate the exact needs of your family should one of you pass away.
You first need to figure out your current debt situation. How much is left on your mortgage, car loan, and other large expenses that need to be paid off. Adding these up should give you a baseline of the minimum amount of face value to buy.
Once you’ve looked at the major debts you then need to think about the income that will need to be replaced. Because if the insured passes away then your family will be left without a major portion of monthly and yearly salary. So think about multiplying that number by a few years. It should be long enough where you feel comfortable that your survivors will be taken care of in the event of a death.
Aside from having the perfect kind of insurance, you need to guarantee that your family will have the money that they need. Don’t purchase too little and have your family struggle with loads of debt. Take care of the situation today and feel confident you’ve provided them some financial breathing room.
Getting Affordable Life Insurance Coverage
The urinalysis is only one part of the life insurance application. However we need to talk about the other components that add up and affect how much you could end up being quoted for coverage. These tips outline several simple changes that you can make to get that affordable premium.
The first thing that you can do is to start a healthy diet and get regular exercise. Both of these are going to help you get better rates from the medical exam, which is going to translate into lower premiums and more money in your pocket. Getting the recommended amount of exercise every week, and making healthier meal choices can help you shed the pounds needed to help cholesterol levels and risk of heart disease.
We truly believe that your top chance at find affordable coverage lies in finding a helpful, independent insurance advisor. These advisors can put together a list of insurers that are highly rated, and ones that look at your health situation favorably. They also can get you a quote that shows premiums for up to 10 companies at one time! It saves you energy and frustration to reach out to our employees and have them simplify your search. .
There are dozens of different kinds of plans to compare and thousands of companies to choose between, but our agents can help you find the best plan in a matter of minutes. Help secure a great future for your family by contacting us today. If you don’t start the process now, when will you? Your family is counting on you so it’s time to count on us.
Before making a commitment to their clients, life insurance companies require you to take a medical exam in order to find out the best policy for you.
To get the best possible coverage without having to pay a stiff price, you must have an idea how to pass the life insurance exams.
You have a few options when getting your medical exam but most opt for a paramedic exam to be performed at their home or place of employment.
Whichever the case may be, you should follow the proper steps on how to pass your life insurance exam as it could significantly change the cost, quality and coverage of your life insurance.
1) Know What To Expect
If you have relatives or friends who have been into medical exams from the same life insurance company, ask what tests were included. You may also get information from the insurance company by asking what you would need to bring and what you can and cannot do on the day prior to the exam.
If applying for a life insurance policy through us, here’s what you can expect. We will schedule a free medical exam (if required) at a convenient time and location for you. The qualified medical examiner will:
ask you medical questions;
measure your height, weight, blood pressure and pulse; and
collect blood and urine specimens.
2) Detoxify
Having a fiber-rich diet and taking a lot of fluids will really help in flushing out toxins from your body. Do not drink coffee, tea or soda as caffeine will make you look bad on the results. Stop smoking and drinking alcohol. Having high levels of nicotine or alcohol in your system will make them consider you a high-risk client and will certainly not help in getting the best insurance policy. If you have a pre-existing condition, reference our resource page on getting approved for high risk life insurance.
Warning: Do not smoke or chew tobacco a few days before the exam. I actually had a client that did this even though they aren’t typically a smoker and it more than doubled their rate. Life insurance rates for tobacco users is not cheap!
3) Watch Your Diet
Eat the right foods well ahead of schedule. Avoid eating foods that are abundant in salt, cholesterol, fats and sugar. Insurance companies will certainly be looking if you have kidney or heart problems, hypertension and diabetes. Showing health problems in any of these areas will have a major effect on the price of the insurance policy you will be getting.
4) Have Enough Rest
You should get enough sleep and avoid strenuous activities within 24 hours of the exam. Certain critical parameters could get affected by lack of rest, like high blood pressure. Although elevated readings maybe temporary, the effect on your insurance policy could be long-term.
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5) Avoid Pain Medications
Certain medications skew the results for tests aimed at evaluating the health of your liver. Under the guidance of a medical professional, avoid taking medications at the day of your life insurance medical exam. However, if you do take pain or other medications, inform the medical staff and insurance representative about the kinds you are taking. You may also have to provide the contact information of the doctors giving the prescription.
6) Fast
Stop eating 8-12 hours before the test. This will have the direct impact of lowering the amount of cholesterol and sugar in your bloodstream. For this reason, it is also best to take the medical exam for life insurance early in the morning, so you would not have to fast until lunchtime. Knowing how to pass life insurance exam will not only help you save and get the best insurance policy. If you have the willingness to apply the ways mentioned above for the long run, they will surely have a positive impact on your overall health and well-being; enabling you to enjoy life more.
Getting Better Results from the Medical Exam
Now that you understand how to pass your life insurance medical exam, you need to understand ways that you can get lower rates for your policy. The medical exam is the pivotal part of your premiums. If you have bad results on the exam, you’re going to receive expensive quotes.
To get started, it’s time to make some hard decisions. If your’e a smoke, the first thing to do is quit that bad habit. You can either continuing smoking or you can get cheap life insurance. You can’t do both.
After you’ve stopped those bad health habits, you need to get in shape. Losing weight will save you money. If you’ve been meaning to trim down your waist, it can also trim down your premiums.
No Medical Exam Life Insurance Policies
Now that you understand what’s going to happen during the medical exam and how to pass it, you may decide that you no longer want to go through the medical exam process. One option is to purchase a no medical exam policy.
Before you buy one of these plans, you need to weigh the pros and cons. In most cases, we think the cons outweigh the pros.
No exam life insurance is more expensive and you can’t get as much protection.
No exam means higher premiums and the insurance companies are going to cap your protection at around $300,000 worth of coverage.
Life Insurance and Medical Exams
There are a lot of people that are worried about the medical exam and everything that has along with that exam. If you’re applying for insurance, don’t worry about the exam. It’s easier than having to go to the doctor. The whole process will take less than an hour.