Budget (Cents Plan) Archives - Hanover Mortgages

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May 31, 2023 by Brett Tams

Zero Based Budget template is a zero budgeting plan that helps you break down your expenses into categories. It provides an easy way to create budgets and track the spending in each category over time.

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Zero based budgeting is a process where every dollar that comes in goes to the number one priority.

It’s an effective way of prioritizing your money and executing properly, but it can be hard to know where to start when you are just getting started with this new system.

Budgeting can be a nightmare when you don’t have the mindset and tools to make it easier.

So many people struggle with money- they are overspending on things their family doesn’t need or doesn’t enjoy, which causes stress in their lives. But if your goal is financial freedom, it’s time to learn about a new budgeting system.

If you have a desire to:

Spend less than you make
Get out of debt
Save money faster
Become financially independent

Then, you are in the right place! Let how easy and simple zero based budgeting really is!

Decide what you want your budget to achieve: a zero-based budget forces you to think about what you want your money to do, rather than just accepting the status quo.

If you want to use zero based budgeting but aren’t sure where to start, this article will guide you through setting it up in an easy and effective way.

What is zero based budgeting?

Zero based budgeting is a financial planning strategy where every dollar in the budget has a specific purpose. With this type of budget, it can be helpful for those looking to get their finances in order or who want more control over their spending.

A zero based budget is when you start from scratch every month and assign every dollar a job.

Income – Expenses = $0

You begin by calculating your income for the month, then subtracting your known expenses. What’s left is $0, which means you have to get creative with how you’ll spend the rest of your money.

You can use a zero based budget template to help make this process easier.

What are the benefits of using a zero based budget template?

Picture of a monthly budget for zero based budget

There are many benefits to using a zero based budget template.

Perhaps the most obvious benefit is that it allows you to see where every penny is going. This comprehensive view gives you a clear picture of your expenses and makes it easy to identify areas where you can cut back on spending.

In addition, using a zero based budget helps individuals worry less about their financial health. Since all living expenses are accounted for in the budgeting process, there is no need to panic if an unexpected expense pops up. This peace of mind can be very helpful when trying to stick to long-term financial goals.

A zero based budget template is also easy to follow. The basic plan can be executed without any difficulty, making it a great choice for people who want a simple way to manage their finances.

How to create a zero based budget template?

Picture of a notebook that says budget planning to create a zero based budget template

A zero based budget template can be helpful in tracking your money and achieving financial goals.

There are a variety of ways to create a zero based budgeting template, and no one size fits all approach. That is why we offer a zero based budget template in our shop that you can modify to your needs.

There are a few key things you’ll need to create your zero based budget template. The first is a list of your monthly income, expenses, and savings goals for the year. This will help you stay on track and plan ahead.

The next step is to individually itemize each expense and income. This may be time-consuming but it’s crucial in order to get an accurate picture of where your money is going.

After that, it’s important to track your spending and income on a monthly basis. This will help you see if you’re meeting your goals or not.

It is important to choose the proper zero based budgeting template for your needs.

What are the 5 steps in creating a zero based budget?

There are five steps in creating a zero-based budget. This system was made popular by Dave Ramsey.

We will quickly outline the five steps to make your first zero based budget. Then, we will go into detail on creating your own zero based budget.

List your income
List your expenses
Subtract your income from expenses to reach zero
Track your expenses.
Make a new budget for the next month or pay period.

One way to ensure success by following a zero based budget is by taking small steps instead of making large changes all at once–this can be difficult for some people who are used to living paycheck-to-paycheck.

Another suggestion is to allow yourself some “fun money” so that you don’t feel too restricted while trying to adjust your spending habits.

By following these tips and using a zero based budgeting template, you can successfully get yourself back on track financially!

How to Create a Zero Based Budget

A picture of someone working their zero based budget.

Zero-based budgeting is a system of budgeting that has been gaining in popularity since the introduction of personal computers and spreadsheets. It encourages decision-making based on values and not numbers, which is important in a time when numbers are often used to make decisions.

Zero-based budgeting allows you to start with a clean slate and create your own vision of what the future looks like.

You will need to gather all of your financial information together, including your income, debts, and expenses.

Step # 1: List out your income

The first step in creating a zero based budget is to list out all of your income.

This should include job income, side hustles, rental properties, alimony, child support, and investment income. Once you have a complete picture of your income sources, you can start to make decisions about how to allocate your money.

It is important to decide how you plan to budget your money on a monthly basis, bi-weekly basis, or by paycheck.

Step #2: Tally up your expenses

Be sure to include any regular expenses you have as well, such as rent or mortgage payments, car loans, and credit card bills.

Think of all of the budgeting categories you need for absolutely everything.

This will help you track your spending more closely and make it easier to find areas where you can cut back. Some people recommend creating as many budgeting categories as possible, including for example:

Housing
Utilities
Food
Transportation
Entertainment
Health care

If there’s something that doesn’t fit neatly into a category, come up with a name for it that will help you remember what it is. For example, “clothes” or “misc.”

You’ll also need to factor in any debts you may have.

Step #3: Get your budget to zero

Once you have a full list of your expenses, it’s time to subtract that amount from your income. Then, figure out if you are close to zero.

This is where you will likely have to make adjustments.

There are two ways to get your budget to zero- either spend less than you make (aka cut spending) or make more money.

If you want to stay out of debt and save money, it’s important to do one or both of these things. It may be difficult at first, but with a little bit of effort, you can get your budget under control and start saving for the future.

Budgeting is an extremely important tool to have in your financial arsenal. It allows you to have more control over your money and can help you make more of it. By following a few simple steps, you can get your budget to zero and start saving for the future.

Step # 4: Track your expenses

In order to be successful with a zero based budget, you have to be willing and able to track your expenses. This means being mindful of every penny that goes in and out of your account – ALL month long!

By tracking your expenses, you’re ensuring that every penny goes into the right place. This enables you to see where your money is going and how you can save in specific areas.

Expenses tracking apps allow you to easily record, categorize, and analyze your spending. They let you see how much money you spend on different categories of items from groceries to travel and more. Some of the most popular apps are Simplifi, You Need a Budget, and Qube Money.

This also makes tax season less daunting because you’ll have a complete record of all of your transactions.

You can also use this information to refine a realistic budget that works for you.

Step # 5: Make a new budget for each month or paycheck

Creating a new budget every month is an important part of zero based budgeting. This helps ensure that you are always aware of your current financial situation and can make changes as needed.

It is best to create your budget before the month begins, so you have time to adjust as necessary.

A zero-based budget is a great way to get your finances in order. It can be tough to stick to, but it’s worth it because it forces you to pay attention and make adjustments.

This is why the budget by paycheck method has gained popularity in conjunction with the zero based budgeting system.

Tips to Make Your Zero Based Budget Successful

It can be difficult to stick to a budget, but there are ways to make it happen.

Here are a few quick budgeting tips:

Make a list of your necessary expenses and stick to it.
Cut back on unnecessary spending.
Live within your means.
Find cheaper alternatives to your regular expenses.

In addition, here is what you need to make sure your money is spent where you want and not following the status quo.

You need to learn which payment type is best if you are trying to stick to a budget.

Know your End Goal

What do you want your money to do for you?

Too many times, we let life dictate how and where we want to spend money. Then, we are always chasing from behind.

To truly make your money work for you, decide on three core areas you want to spend your money. Then, make your budget reflect those values.

Understand the Flexibility of Zero Based Budget

Zero-based budgeting is a great way to stay flexible with your finances. There are no set rules to follow, and you can adapt as your life changes. The goal is to always be mindful of your spending and make sure that every penny counts.

Unexpected expenses are going to pop up from time to time, so it’s important to have some flexibility in your budget. That way, you can handle these unexpected costs without breaking the bank.

Put Most Important Expenses at the Top

When creating a zero based budget, it is important to start with the most important items and work your way down.

This ensures that you do not miss any essential expenses and that you are able to stick to your budget. It is also important to be realistic about what you can afford and to make sure that you are flexible in case of unexpected expenses.

Put in a Cushion or a Buffer

When starting a zero based budget, it is important to be realistic about what you can and cannot do.

Some people find it helpful to have a cushion in case of unexpected expenses, while others prefer to keep their spending as low as possible. It is important to find what works best for you and stick to it.

Additionally, remember that your goal should be to live within your means, not spend less than you make.

Look Ahead

When creating or following a zero based budget, it is important to be mindful of any upcoming events that may require more money.

This includes things like holidays, birthdays, and special occasions. If you know these events are coming up, you can plan for them in your budget and make sure you have the funds available.

Check out ideas for bill calendar strategies.

Sinking Funds

Picture of a jar with the various sinking fund categories on it.

One of the most important things to remember is that you need to plan for big-ticket items and one-off events. This can be done using sinking funds.

Sinking funds are special savings accounts that are specifically designated for planned expenses.

You put money into the account over time until you have saved enough to cover the expense. This allows you to avoid breaking your budget when something unexpected comes up.

Learn how to use sinking funds.

zero based budgeting Example

Zero based budgeting is a way of organizing your finances in which you spend money only on things that have an actual impact on your financial situation.

This method can help you stay mindful of how much you are spending and where it is going.

It can also help you to make better decisions about what needs to be paid off, saved for, or invested in.

Here is a basic zero based budget example:

Can You Make a Zero-Based Budget With an Irregular Income?

Zero-based budgeting is an excellent way to manage your finances when you have an irregular income.

Regardless of how much money you earn each month, you can create a budget that will help you save money and make the most of your income. With a zero-based budget, every penny has a purpose and you can be sure that you are making the most of your resources.

It is also helpful to “age” your money by at least one month. That means your April income will be paying your May bills.

The Best Zero Based Budget Templates and Apps

Zero-based budgeting is a methodology of budgeting that starts with the assumption that how much one has at the beginning of each period should be used to purchase only those things needed. This is different from the traditional budgeting practice of starting with how much one has at the end of the last period and using that as a basis for what needs to happen during the next period.

There are a number of zero-based budget templates and apps that are available on the internet. The following seven are some of the most popular:

1. Tiller Money

Tiller Money is a budgeting app that allows you to create a zero-based budget. This means that every dollar in your budget has a specific purpose.

It has a “Foundation Template” feature that allows expenses to be budgeted against goals in order to make sure the amount of money actually spent is at a minimum.

This allows you to create a zero based budget quickly and easily.

You can try Tiller Money for free for 30 days, and the annual cost is $79.

2. Simplifi by Quicken

Simplifi by Quicken is a budgeting app that takes a different approach to budgeting.

Rather than starting with your current income and expenses and trying to adjust them, Simplifi starts with your savings goals and works backwards. This can be helpful for those who have trouble sticking to a budget because it allows you to focus on your financial dreams rather than your current spending habits.

You can set up your own categories, limits, watchlist, and spending plan.

It offers all of the features of Quicken with the added convenience of being able to access it on your phone or tablet.

Another thing that makes Simplifi stand out is that it is ad-free (unlike Mint), which can be helpful if you are trying to stay focused while budgeting.

Enjoy your first 30 days free and then pay as low as $3.99 per month.

3. Qube Money

Qube is an app that helps you create intentional, smart spending habits.

With Qube, you have the freedom to manage your money with real purpose. Qube helps you stay on top of your finances by giving you a clear picture of where your money is going and how much you have leftover each month.

Qube Money is a budgeting tool that helps you manage your money by automatically ledger transactions and allowing you to divvy up your money into qubes. This makes it easy for you to see how much money you have in each category and click to spend.

Get started with Basic for free with 10 qubes. Upgrade to Premium for $6.50 per month.

4. YNAB

You Need a Budget (YNAB) is a popular method of budgeting that requires you to spend money from the previous month’s income. They stress “aging your money” to break the living paycheck to paycheck method.

Each month you start from scratch each month, accounting for all of your income and expenses.

YNAB is best known for its awesome support community and training.

It offers a free trial for 34 days, after which it costs $84 per year.

Best Zero-Based Budget Template For Debt Payoff

It is useful to make a debt payoff plan that starts from the zero level. This will allow you to track your progress and adjust your budget as necessary.

Using Tally is a great tool when paying off debt.

Time for you to Start with the 0 Budgeting Method

A zero based budget is a financial planning strategy where every dollar in the budget is assigned a purpose. This differs from traditional budgeting where the focus is on last month’s spending and last year’s income.

With a zero based budget, you start fresh each month and assign every dollar a job or responsibility. This way, you can ensure that your money is being put to its best use.

When you use a zero based budget template, you are able to track every dollar that you spend.

This comprehensive view gives you a clear idea of where your money is going and where you can cut back on spending. Additionally, using a zero based budget template makes it easy to see if there have been any areas where you could save money.

The best part is you are comfortable knowing that all of your living expenses are accounted for.

This means that you can spend money without worrying about jeopardizing your financial health.

Source: moneybliss.org

Apache is functioning normally

May 26, 2023 by Brett Tams

When you are trying to tighten down the hatches on your spending, you are doing everything possible to stick to your budget.

You are determined to stick to your budget this time around. But, you always hear that budgeting can be hard.

Well, here are some quick budgeting tips that will make sure to stick to your budget.

As most new budgeters learn, they struggle to stick to a budget for their monthly expenses. It is a natural process everyone goes through.

Budget, if you are looking for an easy button, then learn which payment type is best if you are trying to stick to a budget.

Especially if you spend a lot of time on social media, studies have shown you are more likely to overspend. So, you must learn which payment type will have you stick to a budget.

Then, you may be wondering and wanting help deciding which payment type is best for you.

Which payment types is best if you are trying to stick to a budget? Do you want to stick to a budget but find it difficult in choosing which of the many options available including budget debit cards? This guide will help you decide among the different types of payments on the market.

The Optimal Solution Payment Type Solution

The most efficient payment type is something that is instantaneous and there are no fees associated with the transaction.

Cash is the most efficient payment type: Cash payments are usually the most efficient and convenient way to pay for goods or services.
Credit cards can be a less favorable option: Credit cards tend to have high-interest rates and can lead to financial disaster if used irresponsibly.
Debit cards are a great way to keep your spending within your budget: Debit cards should be considered a top priority for budgeting because they keep you within your spending limits.
Developing a budget will help you avoid financial disaster: A budget helps you stay organized and make informed decisions about which payment method works best for you.

Today, there are so many options on which payment type to use in today’s online world.

1. Cash

Cash is a payment type that can be used to reduce debt spending. It is versatile and can be used for a variety of expenses, such as groceries, medical bills, and gym memberships.

Cash is an excellent choice for people just starting to budget and save.

It is more restrained than credit or debit cards. The envelope method of cash budgeting can be used to train your brain to reduce spending. Cash is the most traditional payment method and has the fewest drawbacks. However, you need a safe place to store your cash, and some stores may not accept it.

Benefits of Cash:

Cash is an excellent payment type when your financial goals are to reduce debt spending.
Cash is a finite payment method that prevents you from overspending.
You have a set amount of money to spend each month, so there’s no chance of overspending.
Easy to track with the envelope method: Utilizing the envelope method ensures that you are tracking your spending (i.e groceries, gas, medical bills) and making sure that you aren’t overspending.
Cash is a quick and easy way to pay for goods and services.
No Fees. No maintenance fees or interest rates as credit cards. Cash is just plain cash – printed paper of currency.
You can avoid high fees associated with card transactions: There are no associated fees when paying with cash, making it the cheapest option overall.
Cash discounts may be available. Since you are paying with cash many small businesses offer a cash discount of 2-5%.
You can use cash at any store: No need to carry around extra cards or checks.
It’s easy to get cash: You can easily get cash and make extra cash.
There’s no need for bank account details: No need for bank account details means you’re free from identity theft risks and other inconveniences that come with having a bank account.
Cash allows you to skirt some financial regulations: Because cash payments don’t fall under the purview of many financial regulations, businesses can take advantage of loopholes in the law that allow them to charge higher interest rates on loans or engage in shady business practices. (highly recommended to stay above book)

Cons of Cash:

Possibility of losing or stolen cash: Keep your cash in a safe place!
You need a safe place to store your money: Another disadvantage of using cash is that you may need a safe place in which to keep it – some stores don’t accept it as a payment method.

Why Choose Cash?

Total control over your money, so there’s little chance of unexpectedly running out of funds.
Cash is a great way to stay on budget, as you can easily track your spending and see where you need to cut back.
Unpleasant to spend money with cash, which can help train your brain to reduce spending.
Cash is a quick and easy way to pay: Using cash eliminates the need for banks, credit cards, or other forms of payment.

Verdict: Paying with cash is the best method for budgeting and saving.

Overall, cash is a great payment type when it comes to budgeting. You can immediately see how much money you’ve spent and what needs to be cut back.

You can’t make impulsive buying decisions with debit cards or credit cards.

With a finite amount you can spend, cash is an excellent choice to prevent overspending. According to research, paying with cash can feel unpleasant, which can train your brain to reduce spending as much as possible.

2. Credit cards

Credit cards offer a number of benefits, including convenience, cash back, and the ability to make large purchases or pay bills in case of emergency. However, credit cards also come with credit card debt and can lead to overspending and financial problems if not used carefully.

For many, credit cards are the easiest way to blow your budget because you don’t have control over how much money you spend.

It is possible to overspend with credit cards if you are not mindful of what you charge.

On the flip side, this is a preferred method as many credit cards also offer rewards programs that give you cash back or points for purchases. If you make the conscious decision to use credit cards, you must make payments on time to avoid penalties.

Benefits of Credit Cards

Credit cards are convenient: Convenient to use and don’t have to worry about losing cash.
Use a credit card if you are disciplined and have strict spending habits: If you are disciplined and have strict spending habits, then using a credit card can work well for budgeting purposes.
Flexibility on larger purchases: Some benefits that come with having a credit card include more cash flow as well as being able to make larger purchases.
Credit cards provide support in times of crisis: Many credit cards offer extended services that can help like 24-hour fraud protection, lost wallet services, traveler’s insurance, and many other benefits – check each issuer for details.
$0 Liability on Unauthorized charges: Your credit card company will not be held responsible for any charges that were not authorized by you. This means that if you did not authorize a charge in person, online, or otherwise, you will not be responsible for it.
Fraud protection: Check your credit card issuer, but many offer fraud protection.
New card introductory APR is helpful to pay down debt: The introductory APR for the new card may not last long.
Payments on balance transfer should be manageable: Make sure that the payments on your balance transfer are manageable.
Points: You can accrue points along with your spending which can be a great perk.
Credit card interest rates are significantly lower than payday loans: Interest rates on credit cards are usually much lower than payday loans.
Due Date is After your statement closes. Since your bill cycle is at least another 21 days between the closing date for your statement and the due date, it gives you flexibility. Personally, I still account for the credit card bill in the same month that it was accrued.

Cons of Credit Cards

Potential for credit card debt: When using a credit card, be aware of your credit limit and the interest rate that you will have to pay on your debt. Also one of the categories of debt.
Credit limit often leads people to spend money: The credit limit often leads people to spend money by giving them a false sense of security, when they should stick to a budget and pay attention to their credit card statement and the billing cycle.
Credit card overspending can lead to debt: Consider the purchase if it is essential or delay it if possible.
Ability to easily purchase something you cannot afford. Buying something that you don’t have the money saved up for will cost you interest fees associated and maybe even with a credit card balance transfer.
There are a number of fees associated with a balance transfer: Transfer fee, interest on new purchases charged to the card.
Your introductory APR may not be valid if you make too many payments late: If you fall more than 60 days behind on payments your introductory APR might be canceled and you may face higher interest rates.
Credit score can suffer from debt: When you carry a credit card balance or don’t pay your monthly bills on time, you will lower your credit score.
Avoid carrying a balance: Pay your statement in full each month to avoid paying interest and maximize your grace period.

Key Takeaways on Credit Cards

Make sure to pay attention to the dates: Don’t spend more than you can afford, and make sure you’re making your minimum monthly payments on time so that your debt doesn’t increase over time.
A credit card can be used for budgeting only if you’re very disciplined: If you know that overspending is NOT an issue and you pay the credit card’s monthly balance in full, then using a credit card is fine.
Credit card transactions usually take several days to register in the feedback system: Something to look out for!
You can step back into debit cards or cash if needed: If credit cards are not for you, there are other options available such as debit cards or cash

3. Debit cards

Debit cards are a good option if you want to stick to a budget because the predetermined amount of funds can help you stay within your means. Additionally, debit cards are more convenient than cash and just as accepted as credit cards in most places.

A debit card works more similarly to cash than to credit cards.

They provide an easier way to track your spending and avoid having to carry a lot of cash.

Pros of Debit Cards:

No Need to Carry Cash: A debit card is better than cash because you don’t have to carry a lot of paper money and change around, and they’re also safer.
Debit cards are faster and easier to use: Debit cards work just like credit cards – withdrawing cash, making purchases, and paying bills – but they are linked directly to your bank account, so there is no need to carry around a separate cash envelope wallet or purse for them.
A debit card is a good option if you want to stick to a budget: Debit cards come with a predetermined amount of funds that you can spend from your bank account just like cash.
Tracking payments is easy with debit cards: Your debit payments will appear on your issuer’s dashboard, which you can monitor anytime from any location.
Convenience: Debit cards are more convenient to use and faster than needing to write a check or carry around cash. Plus they don’t add to your debt.
Shopping online is easy. You can use your debit card to make online purchases with your bank account, and digital banking tools make tracking your spending easy.
Points: Some debit cardholders can earn points for spending on their cards, which can be redeemable for rewards such as cash back or gift cards. This is new to compete with credit cards.
Fraud protection is typically offered for free with most debit cards—meaning if your card is stolen or used without your permission, you can get your money back.
No impact on your credit report. When you use a debit card, the funds are actually withdrawn from checking or savings accounts so there is no credit reporting occurring.

Cons of Debit Cards:

An overdraft on a debit card can happen when a purchase exceeds the amount of money in the checking account, leading to overdraft fees.
Funds on hold with fraudulent charges. If your account gets hacked, your losses will be limited since most banks protect their users against fraudulent charges and online purchases with their accounts. However, those funds will be held while they investigate and you may be liable for $50.
No chance to improve your credit score. Since you are not borrowing money, you are unable to improve your credit score.

Debit cards are a great way to keep your spending within your budget and avoid overspending which can lead to many detrimental issues.

Regardless of the overdraft fee, debit cards are still better than cash because they’re safer and easier to carry around.

4. Checks

Checks… do people still write checks? Why yes they do!

Checks offer a few benefits as a payment method, even though they are slowly being replaced by more modern options.

This can help you keep track of your spending and make sure you do not overspend. Additionally, if you ever need to dispute a charge, having a check can be helpful in proving what you paid for.

What is a check?

A check is a written, dated, and signed instrument that directs a bank to pay a specific sum of money to the bearer from the check writer’s account. The date is usually written in month/day/year format. The signature of the check writer is usually on the line below “Pay to the order of.”

There are three main types of checks:

A cashier’s check is a check guaranteed by a bank, drawn on the bank’s own funds, and signed by a cashier.
A certified check is a personal check for which the bank has verified that there are sufficient funds to cover the payment.
A personal check is one that you write yourself and that is not guaranteed by the bank.

Pros of Checks

Checks are still a payment option: Checks are one of the traditional payment methods, but it is slowly dying out because of modernization.
Physical written record. It can be helpful to have physical copies of checks in addition to digital records through the bank.
You need to make both digital and physical copies of the check: Save check stubs but also transfer the information to a budgeting system.

Cons of Checks

Saving check stubs is helpful, but you still need to transfer the information to a budgeting system: Useful for tracking spending, but you’ll likely want more detailed records than just check stubs.
Not as convenient as credit or debit cards.

5. Apple Pay or Apple Cash

Apple Pay is easy to use and convenient since you only need to connect your smartphone to your cards and bank accounts via the app.

It is easy to use since you just hold your phone up to the reader and wait for the payment screen to appear.

You can even get cash back with apple pay.

Pros of Apple Pay:

Apple Pay is easy to use and convenient: You only need to connect your iPhone to your cards and bank accounts via the app.
You don’t need to carry any extra cards or cash: No need for additional cards or cash when you’re out and about
You can use Apple Pay on different devices: You can use Apple Pay on your iPhone, iPad, and Mac.
Transactions are secure: Your transactions are secured with Touch ID or a passcode.
Set up Spending Limits for each user. This way you can make sure you (or others with authorized access) are not spending more than you intended. Learn how.
Protection of Data during transactions. Your actual credit card number is changed to a different digital number, which allows limits your card number’s exposure.

Cons of Apple Pay:

Not widely accepted (yet). This method of payment is 100 percent guaranteed. While many stores offer apple pay, not all do quite yet.
The same rules apply if you load apple pay with a debit or credit card drawbacks include late fees, interest rates, and overspending: Keep that in mind when choosing Apple Pay as your payment method.

6. Mobile wallets like Google Pay, Samsung Pay, Venmo, or Zelle

Mobile wallets are digital payment systems that allow you to pay for items with your smartphone. Many people find mobile wallets are very convenient and becoming a traditional method of payment (such as credit cards).

With mobile wallets, you are making digital payments without having to carry around cash or cards using just your smartphone.

Mobile wallets are easy to use and provide instant payment convenience, making them perfect for shopping online.

Pros of Mobile Wallets:

Mobile wallets use credit cards and debit cards: Connect your smartphone to your bank accounts and use it for digital payments.
Mobile wallets are easy to use and convenient: Instant payment convenience makes them perfect for shopping online as well.
No need for cash or cards: No need for cash or cards.
Strong secuirity features provide privacy and security features that ensure your personal information is safe from data breaches and unwanted charges.
You can make purchases without having to show your identification: You can make purchases without having to show your identification.
Additional Layer of Security. Additionally, mobile wallet data is protected with verification, such as fingerprints.

Cons of Mobile Wallets:

With Zelle and Venmo, it is easy to send money to the wrong person or add an extra zero and send more money from planned. More often than not, it is difficult to recover your money.
You need to be disciplined when using a mobile wallet: Pay attention to late fees and interest rates, as well as the amount you spend in a month.

7. Prepaid Cards or Gift Cards

A prepaid card or a gift card could be right for you. The advantage of these is the mere fact that you reached the limit is enough to deter overspending.

It can make you think twice about whether you need to purchase an item or not.

Pros of Prepaid Cards and Gift Cards

Easy to use: Prepaid and gift cards are easy to use and manage your finances with.
The mere fact that you reached the limit is enough to deter overspending: It can make you think twice about whether you need to purchase an item or not.
No strings attached: No need to worry about any fees associated with the prepaid card once activated.
Privacy: The prepaid card does not track your spending or use any personally identifiable information.
Credit Score Doesn’t Matter: Your credit score does not matter when obtaining a prepaid card.

Cons of Prepaid Cards or Gift Cards

Losing a prepaid card is not a fun experience. Contact the prepaid card issuer right away to protect the funds on the prepaid card.
Fraud protection: Consider whether your prepaid card issuer offers any theft or fraud protection, as not all providers offer this feature.
Prepaid cards have limits on how much money you can load onto them, which can be frustrating if you need to make a large purchase.

8. PayPal

PayPal is a very convenient way to pay for items online or in person. It is widely accepted and used by many people.

PayPal is a digital payment service that offers convenience and ease of use. You can use them to send money to people or pay for online purchases.

However, because these services can only be used online, they should not be relied on as your sole method of budgeting and tracking expenses. Instead, consider Paypal in combination with another budgeting tool, like a spreadsheet or app, to get a fuller picture of your spending.

Pros of PayPal:

PayPal is one of the most popular online payment methods: Widely accepted and used by many people.
You can use them to send money to people or pay for online purchases: Help you review your spending prior to purchase.

Cons of Paypal:

Easy Target for phishing scams. A phishing scam is when someone tries to trick you into giving them your personal information, like your password or credit card number. They might do this by sending you an email that looks like it’s from PayPal, but it’s not. Or they might create a fake website that looks like PayPal. If you enter your information on these sites, the scammers can then use your account to make purchases or send money to themselves.
Reputation for poor customer service. This is evident in their customer service ratings, which are some of the lowest in the industry. The majority of complaints against PayPal revolve around poor service received when asking for assistance with fund freezes and account holds.

9. Cryptocurrency (ie: Bitcoin)

Cryptocurrencies offer a new and innovative way of handling payments. They’re not yet widely accepted, so there’s potential for businesses to get in on the ground floor with this new technology.

However, because cryptocurrencies are so new, it’s uncertain if they will be regulated or not. This could pose a challenge for businesses down the road.

Pros of Crypto

Not subject to the same regulations as traditional currency, which makes them appealing to those who want to avoid government intervention.
The valuation of Crypto changes rapidly. If you are smart with crtyple this is a great way to spend your crypto coins.

Cons of Crypto

Cryptocurrencies are not accepted everywhere: Cryptocurrencies are not accepted by most organizations yet, which it makes it difficult to use them in day-to-day life.
It’s unclear if cryptocurrencies will be regulated: It’s uncertain if cryptocurrencies will be strictly regulated or not. This poses a challenge for those who want to use them as a payment method.
Bitcoin and other cryptocurrencies are still in their infancy: Bitcoin and other cryptocurrencies have only been around for a few years, so they may still face challenges in the future.

Here are the most popular budget apps today:

Other Payment Methods:

ACH payments

ACH Payments is an excellent way to pay bills and other financial obligations: You can easily set up a billing cycle for recurring payments, making it safe and convenient.

Fewer people are aware of your transactions when using ACH payments, reducing the chances of fraud or theft.

Key Facts:

Fewer people know about your transactions when using ACH payments, reducing the chances of fraud or theft.
Your checking account information is not shared or accessed by the system in any way.
You can quickly pay bills and other expenses with ACH payment: Financial institutions offer this as part of their deals.
When setting up recurring bills with ACH payment, you are aying your bills on time is important for maintaining a good credit score.
Pay attention to your check account balances: Make sure you have enough funds in your check account to avoid paying overdraft fees.

Money orders

A money order is a document that orders the payment of a specified amount of money. Money orders are convenient because they can be bought at many locations, including post offices, banks, and convenience stores.

To get a money order, you will need to fill out a form with the payee’s name, the amount of the payment, and your contact information. You will then need to purchase the money order with cash or a debit card.

To cash a money order, you will need to take it to a bank or post office. You will need to show identification and sign the back of the money order. The teller will then give you the cash for the payment.

More secure than cash: Money orders are more secure than cash because they don’t require a bank to make the transaction.
Less convenient: money orders are less convenient because you must purchase them in person.
Able to trace. They are also more secure than cash because they can be traced if lost or stolen.

Wire Transfers

Wire transfers are a more secure way to transfer money than traditional methods like checks and cash. These are sent through the banking system and are usually processed within two business days.

Typically, wire transfers are used when sending and receiving large sums of money (over $10000).

More secure than cash: Wire transfers are more secure than cash as the bank verifies there is enough money to make the wire transfer.
Fees involved with using a wire transfer. Most institutions charge for handling a wire transfer.

What method of payment is best?

Cash is the most widely accepted form of payment, but debit and credit cards are very popular.

The payment method that is best for you depends on which one helps you to stick to your budget and spend less money. The goal is to be financially stable.

What method is best for sticking to a budget?

There are several different types of budgeting methods that people use in order to manage their finances. Many people focus on using the 50/30/20 method, in which each percent corresponds to a different category of expenses.

There are plenty of budgeting tools available today to make sure you stick to your budget.

You need to find what works best for you. At the end of the month, you want to spend less than you make. That is the winning combo!

1. Budgeting App

There are many budgeting tools available online, which can be helpful as it can be easier to track your progress and budget over time.

You can use various popular budgeting apps like Quicken, Qube Money, or Simplifi.

These apps can help you track your spending, set goals, and stay on track with your budget.

2. Paper and Pen or Simple Spreadsheet

Some people find that they prefer using a simple spreadsheet or paper budget. This may be due to personal preference or because they find it easier to understand and use.

Additionally, using a paper budget may help you stay more organized as you can physically see where your money is going.

Options to get you started include our own budgeting spreadsheets or using an automated system like Tiller.

3. Envelope budgeting method

The cash envelope system is a good way to stick to a budget because it is rigid and based on envelopes and cash. You can’t get more money until your cash payday. So, this system helps you track your spending and budget better.

However, using only cash can have drawbacks as having large amounts of cash on hand can be risky.

The envelope method gives you a sense of control over your spending and makes it more tedious to write down your transactions. If you find writing down your transactions tedious, the envelope method may be too much for you.

4. Know Your Budget Categories and Track expenses

Tracking expenses is essential to move ahead financially: Knowing what you have spent in each category will help you make better financial decisions.

Be specific with your budgeting categories. Don’t make it too complicated. Always remember to include household items, clothing, and groceries when tracking expenses.

5. Prioritize your Budget Plan

A budget can provide a realistic picture of your finances, help reduce stress related to money matters, and guide you toward achieving your goals.

Creating a budget can help ensure that you are able to meet your financial obligations and still have money left over for savings and other goals. A budget can also help you track your spending so that you can make adjustments if necessary.

Make a budget plan: This will help you stay on track and make sure that you are spending your money wisely.
You decide where to spend money: A budget helps you set future goals and achieve your financial goals.
Creating a budget can help reduce stress: If you tend to get stressed about money matters, creating a budget can give you peace of mind.
A budget has other benefits beyond financial ones: If you want to achieve something in life, creating a budget can help guide you in the right direction.
See where to cut back spending. You can also look at your past spending habits to see where you can cut back. Sometimes it may be necessary to save more in order to achieve long-term goals, like buying a house or having a wedding. Always be mindful of your budget when making payments and spending money.
It’s a three-step process that involves basic math: Making a budget is simple and requires only basic math skills.
Stay on track: Making a budget plan will help you stay organized and keep track of your expenses.

A budget plan will help you stay on track and make sure that you are using the best payment type for your budget.

Making a budget is an easy way to save money. By following a few simple steps, you can keep track of your expenses and make sure that you are spending your money wisely.

Which type of payment is best for sticking to a budget?

One of the main pros of using cash as a method of payment is that it is the most efficient way to keep track of your finances. This is because it is very easy to budget when you are only dealing with cash.

However, many people prefer debit or credit cards are the best type of payment. They are more convenient than cash and can help you keep track of your spending. However, if you have a bad credit history or a low credit score, credit cards may not be the best option for you.

Cash payments are the most efficient: Most convenient and easiest to keep track with cash envelopes.
Credit cards allow you to accrue points along with your spending: These are a great benefit and one that can be a perk if handled well as part of your budgeting process. As long as pay them off in full each month to avoid credit card debt, high-interest rates, and other negative consequences.
Debit cards are also a good option for sticking to a budget. They can be used like credit cards but with less risk of debt.
Cash-based payments are a newer option and are more reliable: May not have as many negative consequences as other payment methods such as credit cards or loans.

What Not to Use when you are Trying to Stick to a Budget

You need to steer clear of these types of payments if you want to be financially stable person.

Personal loans

Personal loans are a risky way to budget. However, if you need the money for an emergency or unexpected expense, a personal loan can be a lifesaver.

There are many risks to consider and other ways to lower your spending before resorting to a personal loan.

Loans can cause budgeting problems: Loans can mess up your budget and make it difficult to stick to spending plans.
Taking out a personal loan just for the sake of having money can disrupt your budgeting: Consumers often borrow money in order to pretend they’re doing better financially than they really are.
Borrowing money is usually not a good idea: When you borrow money, you may find that you cannot handle seeing low checking account balance, which can lead to deeper debt problems.

Payday Loans

Payday loans are a bad option for someone looking for a long-term solution. They are expensive, and there is a high chance that the person will not be able to pay back the loan.

The interest that is charged is also high, and it can add up quickly.

Write bullet points about what happens with a payday loan

Payday loans can trap people in a cycle of debt, as they are often unable to pay back the loan in full on the due date.
When someone takes out a payday loan, they are borrowing money from a lender in a short amount of time, usually two or three days.
Payday loans are often expensive, with interest rates that can be above 300%.

Debt Consolidation Loans

Debt consolidation can be a good way to manage your debt because it can result in a lower monthly payment and extended payments may impact your financial plan. You can use a debt consolidation calculator to estimate how much debt you can afford before taking out a consolidation loan.

Debt consolidation loans also provide convenience because they have lower interest rates than payday loans. However, be careful when consolidating your debt because it is possible to overspend and lose your introductory APR.

You may be able to pay off your debt with one monthly payment: A consolidation loan often results in a much lower monthly payment than all of your previous monthly payments combined.
Extended payments may impact your financial plan: Take a look at how these extended payments will impact your financial planning.
You can estimate how much debt you can comfortably afford: use this tool – Tally .
It is possible to overspend with debt consolidation: If you spend more money than you planned on your day-to-day expenses, this could increase your debt. Consider if the purchase is necessary or if it can be delayed.
You may lose your introductory APR: If you fall more than 60 days behind on payments, you will likely lose your introductory APR and may even trigger a penalty interest rate.
You need to be careful when transferring a balance: Transferring a balance can also forfeit your grace period and you’ll need to pay interest on new purchases charged to the new card.

What type of payment method is best for sticking to a budget?

There are a variety of payment methods available, and each has its own benefits and drawbacks. It’s important to choose the payment method that’s best suited for your business and budget.

A payment method that allows you to stick to a budget is the best option.

FAQs

There are three main types of payment methods: cash, debit cards, credit cards, and cash-based payments.

The envelope budgeting method is a simple way to create a budget. You will need envelopes and divide your money up into the different categories that you spend money on. You will then put the corresponding amount of money into each envelope. This method can be helpful if you have a hard time sticking to a budget.

The zero-based budgeting method is a more methodical way to create a budget. With this method, you track every penny that you earn and spend. This can help you to see where your money is going and make adjustments accordingly.

A debit card is a plastic card that is linked to a checking account. Customers can spend money by drawing on funds they have already deposited. An overdraft on a debit card can lead to overdraft fees, which have high-interest rates.

A credit card is a plastic card that allows customers to borrow money up to a certain limit in order to purchase items or withdraw cash. Using a credit card can help build credit or improve your credit score.

There are a few different ways to use a credit card. You can use it to check your balance and review your spending history, which can be helpful in staying accountable.

Credit cards also offer online tools which make the analysis of your spending easier which can be helpful in tracking your budget.

Finally, you can use a credit card to rebuild your credit score by using it responsibly and paying off the balance in full each month.

Which payment type can help you stick to a budget?

When it comes to choosing a payment type that will help you stick to a budget, there is no one-size-fits-all solution.

The best payment method for you will depend on your specific needs and preferences.

When you are creating a budget, it is important to consider which payment type will help you stay on budget. Different payment types work better for different people, so it is important to experiment and find the one that works best for you.

As I stated for me, I have learned how to use credit cards to maximize cash back. But, I learned how to budget with cash when first starting.

Please pay attention to your budget and how it changes over time, as different payment types may work better at different stages of your life.

Consequently, I hope that this guide has given you a better understanding of the different payment types available and helped you narrow down your options. There are a variety of payment types that can help you stick to a budget, so it’s important to research each one carefully.

I highly recommend using an app to track your expenses and know where you spend your money. By developing a budget and choosing the right payment type, you can stick to your financial goals.

Source: moneybliss.org

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May 24, 2023 by Brett Tams

Inside: This guide will teach you about the different factors you need to consider when purchasing a home with a 70k salary.

There are a lot of factors to consider when you’re trying to figure out how much house you can afford. Your income, your debts, your down payment, and the interest rate on your mortgage all play a role in determining how much house you can afford.

Your situation will be different than the person next-door or your co-coworker.

Making 70000 a year is a great salary. You are making the median salary in the United States.

It’s enough to comfortably afford most homes and gives you plenty of room to save money each month.

But how much house can you actually afford?

It depends on several factors, including your down payment, interest rate, income, and credit score.

In this ultimate guide, we’ll walk you through everything you need to know about how much house you can afford making 70000 a year.

Are you looking to buy a house but don't know where to start? This guide will teach you everything you need to know about buying a home, from Loan amount to Homeowner insurance premiums. By the end of this guide, you'll know that when I make 70000 a year how much house can I afford.

how much house can i afford on 70k

In general, you can expect to spend 28-36% of your income on housing.

Generally speaking, if you make $70,000 a year, you can afford a house between $226,000 and $380,000.

How much mortgage on 70k salary?

In general, you should expect to spend no more than 28% of your monthly income on a mortgage payment.

Thus, you can spend approximately $1633-2100 a month on a mortgage.

Just remember this is relative to the interest rate, term length of the loan, down payment, and other factors.

28/36 Rule

But there’s one factor that trumps all the others: The 28/36 rule.

Also known as the debt-to-income (DTI) ratio.

The 28/36 rule is a guideline that says that your housing costs (mortgage payments, property taxes, homeowners insurance, and HOA fees) should not exceed 28% of your gross monthly income.

And your total debt (housing costs plus any other debts you have, like car payments or credit card bills) should not exceed 36% of your gross monthly income.

You must follow the 28/36 rule.

How to calculate how much mortgage you can afford?

A picture of spreadsheet and a calculator to see how much mortgage can I afford.

If you’re like most people, you probably don’t know how to calculate how much mortgage you can afford.

This is actually a really important question that you need to ask yourself before beginning the home-buying process.

The answer will help determine the price range of homes you should be looking at. Plus know how much money you’ll need to save for a down payment.

Step #1: Check Interest Rates

Research current mortgage rates to get an accurate estimate. You can also check your credit score and search for average mortgage rates based on your credit score.

Right now, with sky-high inflation, you are unable to afford a bigger house when interest rates are hovering around 6% compared to ultra-low interest rates of 2.5%.

With a 70k salary, this can be the difference between $50-100k on the total mortgage amount you can afford.

Step #2: Use a Mortgage Calculator

Use a mortgage calculator to get an estimate of the home price you can afford based on your income, debt profile, and down payment.

Generally, lenders cap the maximum amount of monthly gross income you can use toward the loan’s principal and interest payment to not more than 28% of your gross monthly income (called the “Front-End” or “Housing Expense” ratio). Then, limit your total allowable debt-to-income ratio (called the “Back-End” ratio) to not more than 36%.

You can use a mortgage calculator to a ballpark range of what house you can afford.

Step #3: Taxes, Insurance, and PMI

When planning for a home purchase, it’s important to factor in all of your monthly expenses, including taxes, insurance, and PMI.

This will ensure that you get an accurate estimate of your home-buying budget based on your household annual income.

Don’t forget to include these payments to get a realistic understanding of your monthly budget.

Step #4: Remember your Living Expenses

When considering how much house you can afford based on your $70,000 salary, you must consider your lifestyle and current expenses.

It is important to factor in other monthly expenses such as cell phone and internet bills, utilities, insurance costs, and other bills.

More than likely, you will be approved for a higher mortgage amount than you would feel comfortable with. This is 100% what lenders will do.

They want to provide you with the most you can afford – not what you should afford.

Step #5: Get prequalified

Prequalifying for a mortgage is an important first step to take when estimating how much house you can afford.

It gives you a more precise figure to work with and helps you make a more informed decision based on your personal situation.

Remember that your final amount will vary depending on a number of factors, especially your interest rate, which will be based on your credit score.

Taking the time to research current mortgage rates helps you secure a better mortgage rate, giving you more buying power.

Home Buying by Down Payment

How much house can you afford?

It’s a common question among home buyers — especially first-time home buyers. Use this table to figure out how much house you can reasonably afford given your salary and other monthly obligations.

The assumption is 30 year fixed mortgage, good credit (690-719), no monthly debt, and a 4% interest rate.

Annual Income	Downpayment	Monthly Payment	How Much House Can I Afford?
$70,000	$9,552 (3%)	$1,750	$318,412
$70,000	$16,215 (5%)	$1,750	$324,316
$70,000	$34,058 (10%)	$1,750	$340,581
$70,000	$53,573 (15%)	$1,750	$357,152
$70,000	$75,094 (20%)	$1,750	$375,468
$70,000	$98,933 (25%)	$1,750	$395,731

**Your own interest rate, monthly payment, and how much house you can afford will vary on your personal circumstances.

Mortgage on 70k Salary Based on Monthly Payment and Interest Rate

Picture of someone showing you how much mortgage on 70k salary you can afford.

How much house can you afford on a $70,000 salary?

This largely depends on the current interest rate of the mortgage loan you’re considering. When interest rates are high, people aren’t actively buying as when interest rates are low.

By understanding these factors, you can better gauge how much house you can afford on a $70,000 salary.

The assumption is 30 year fixed mortgage, good credit (690-719), no monthly debt, and a 20% downpayment.

Annual Income	Monthly Payment	Interest Rate	How Much House Can I Afford?
$70,000	$1,750	3.25%	$406,796
$70,000	$1,750	3.5%	$396,231
$70,000	$1,750	3.75%	$386,101
$70,000	$1,750	4%	$375,994
$70,000	$1,750	4.5%	$357,554
$70,000	$1,750	5%	$339,954

**Your own interest rate, monthly payment, and how much house you can afford will vary on your personal circumstances.

Home Affordability Calculator by Debt-to-Income Ratio

Around here at Money Bliss, we always stress that debt will hold you back.

In the case of buying a house, debt increases your DTI ratio.

Here is a glimpse at what monthly debt can cause your debt-to-income (DTI) ratio to increase. Thus, making the house you want to buy to be more difficult.

Annual Income	Monthly Payment	Monthly Debt	How Much House Can I Afford?
$70,000	$2,100	$0	$440,085
$70,000	$1,900	$200	$404,584
$70,000	$1,800	$300	$382,334
$70,000	$1,600	$500	$337,883
$70,000	$1,350	$750	$282,208
$70,000	$1,100	$1000	$226,582

**Your own interest rate, monthly payment, and how much house you can afford will vary on your personal circumstances.

Increase your Home Buying Budget

Here are a few ways you can increase your home buying budget when buying a house on a $70k annual income.

By following these steps, you can increase your home buying budget and find a more suitable house for your income.

1. Pick a Cheaper Home

Home prices vary significantly in different parts of the country.

Moving out of a major metropolitan area with notoriously high housing costs can help you find more affordable homes.

There are plenty of ways to find a home that is cheaper than you would normally expect.

Look for homes that are for sale in less desirable neighborhoods.
Find homes that are for sale by owner or have not been listed yet.
Check for homes that are for sale outside of your usual price range and haven’t sold as they may drop their price.
Move to a lower cost of living area.

2. Increase Your Down Payment Savings

A larger down payment can reduce the amount you have to finance, which lowers your monthly payment.

Plus help you get a lower interest rate and avoid paying PMI.

Putting down at least 10-20 percent of the home sale price can help boost your home buying power. You can also take advantage of down payment assistance programs in your area.

3. Pay Down Your Existing Debt

Paying down your debts such as credit card debts or auto loans can help raise your maximum home loan.

Paying down your debts can help you qualify for a higher loan amount.

This is because when you have lower amounts of debt, your credit score is higher and your debt-to-income ratio is less. This means you are less likely to be rejected for a home loan.

4. Improve Your Credit Score

A higher credit score can lead to lower rates and more affordable payments.

You can improve your credit score by:

Paying your bills on time
Paying down your credit card balances
Avoiding opening new credit before applying for a mortgage
Disputing any errors on your credit report

This is very true! We had an unfortunate debt that wasn’t ours added to our credit report right before closing. While the debt was an error, it still cost us a higher interest rate and forced us to refinance once the credit report was fixed.

5. Increase Your Income

Asking for a raise, seeking a higher-paid position, or starting a side gig can help you increase the amount of home you can afford.

While you need two years of income from a side gig or your own online business to count as income, the extra cash earned helps you to increase the size of your downpayment. Plus it lowers your debt-to-income ratio with the savings you are setting aside.

What factors should you consider when deciding how much you can afford for a mortgage?

How much house can you afford on your current salary and with your current monthly debts?

This is a question that we are often asked, and it’s one that we love to answer.

We’ll walk you through all the different factors that go into this decision so that you can make an informed choice.

1. Loan amount

The loan amount is a key factor that affects the total cost of a mortgage.

If you have no outstanding debt, a 20% down payment, a high credit score, and a 3.5% interest rate from an FHA loan, you could be able to afford up to $508,000.

However, if you have debt, a smaller down payment, or a lower credit score, the loan amount you can qualify for will be lower.

Similarly, if you choose a 15-year fixed-rate loan, your monthly payments will be higher, but you will end up paying less in interest over the life of the loan than with a 30-year fixed-rate loan.

Ultimately, your loan amount will affect the total cost of your mortgage, so it’s important to consider all the factors when making your decision.

2. Mortgage Interest rate

Mortgage interest rates can have a significant impact on the cost of a mortgage. The higher the interest rate, the more expensive the loan will be.

For example, a difference between a 3% and 4% interest rate on a $300,000 mortgage is more than $150 on the monthly payment.

Remember, in the first few years of a mortgage, the majority of the payment goes toward interest rather than trying to reduce the principal amount.

3. Type of Mortgage

The primary difference between a fixed and variable mortgage is the interest rate and the amount of your payment

Fixed-rate mortgages offer the stability of having the same interest rate for the life of the loan.
Adjustable-rate mortgages (ARMs) come with lower interest rates to start, but those rates can change over the life of the loan. ARMs are often a riskier choice, as if the economy falters, the interest rate can go up.

Fixed-rate loans are typically the most popular choice, as the monthly payment amount is more predictable and easier to budget for. The terms of a fixed-rate loan can range from 10 to 30 years, depending on the lender.

Adjustable-rate mortgages (ARMs) have interest rates that can increase or decrease annually based on an index plus a margin. ARMs are typically more attractive to borrowers who plan on staying in the home for a shorter period of time, as the lower initial interest rate can make the payments more manageable.

The Money Bliss recommendation is to choose a 15-year fixed-rate mortgage.

4. Property value

Property value can have a direct effect on how much you can afford for a mortgage.

As the value of the property increases, so does the amount of money you will need to borrow to purchase it. This, in turn, affects the monthly payments and the amount of interest you will pay over the life of the loan.

This is especially important as many people have been priced out of the market with the rising home prices.

Additionally, higher property values can mean higher taxes, which will add to the amount you need to budget for your mortgage payments.

5. Homeowner insurance

Homeowner’s insurance is a requirement when securing a loan and it can vary depending on the value and location of the home.

Additionally, certain areas that are prone to natural disasters or are located in densely populated areas may have higher premiums than other locations and may require additional insurance like flood insurance.

As a result, lenders typically require that you purchase homeowners insurance in order to secure a loan, and may have specific requirements for the type or amount of coverage that you need to purchase.

Before committing to a mortgage, it is important to consider the cost of homeowner’s insurance and make sure it fits into your budget.

This is something you do not want to skimp on as the cost to replace a home is very expensive.

6. Property taxes

Property taxes are calculated based on the value of a home and the tax rate of the city or county where the property resides.

The higher the property taxes, the more you will have to pay in your monthly mortgage payment.

In states with high property taxes, the property tax bill can be a large sum of the mortgage payment.

It is important to consider these costs when comparing different homes and locations to ensure you can afford the home without stretching your budget too thin.

7. Home repairs and maintenance

It’s important to also consider other factors such as the age of the house, since some properties may require renovation and repairs that can cost more than the house price itself.

Beyond the cost of purchasing a home, homeowners will likely have other expenses related to owning and maintaining the property.

Also, many homeowners prefer to do significant upgrades to the home before moving in, which comes at an additional expense.

These can include ordinary expenses such as painting, taking care of a lawn, fixing appliances, and cleaning living spaces, which can add up.

Additionally, it’s advisable to buy a home that falls in the middle of your price range to ensure you have some extra money for unexpected costs, such as repairs and maintenance.

8. HOA or Homeowners Association Maintenance

This is often an overlooked factor by many new homebuyers, but extremely important as some HOAs add $500-800 per month to the total housing budget.

The purpose of a homeowners association (HOA) is to establish a set of rules and regulations for residents to follow as well as maintain the community or building.

These fees are typically used to pay for maintenance, amenities, landscaping, and concierge services.

HOA fees are used to finance community upkeep, including landscaping and joint space development, and can range from $100 to over $1,000 per month, depending on the amenities in the association.

9. Utility bills

When switching from renting to buying a home, you will have to factor in the costs of your monthly utility bills such as electricity, natural gas, water, garbage and recycling, cable TV, internet, and cell phone when calculating how much mortgage you can afford.

In addition, the larger the home, the higher the costs to heat and cool your new home.

Make sure to ask your realtor for previous utility bills on the property you are interested in.

10. Private Mortgage Insurance

The purpose of private mortgage insurance (PMI) is to protect the lender in the event of foreclosure. It is typically required when a borrower is unable to make a 20% down payment on a home purchase.

PMI allows borrowers to purchase a home with less upfront capital, but also comes with additional monthly costs that are added to the mortgage payment. These fees range from 0.5% to 2.5% of the loan’s value annually and are based on the amount of money put down.

PMI can also be canceled or refinanced once the borrower has achieved 20% equity in the home or when the outstanding loan amount reaches 80% of the home’s purchase price.

11. Moving costs

Moving is expensive, but also a pain to do. So, consider the moving costs associated with relocating from one location to another.

Typically fees for packing, transportation, and possibly storage, and can vary depending on the size of the move and the distance the move needs to cover.

Also, consider if by buying a home, you will stop having moving costs associated with moving from rental to rental.

FAQ

When determining how much house you can afford, it’s important to consider several factors.

These include your income, existing debts, interest rates, credit history, credit score, monthly debt, monthly expenses, utilities, groceries, down payment, loan options (such as FHA or VA loans), and location (which affects the interest rate and property tax). Also, think about the costs of maintaining or renovating a home.

Additionally, you should also evaluate your own budget and assess whether now is the right time to purchase a home. Taking all of these factors into account can help you set the maximum limit on what you can realistically afford.

A mortgage calculator can help you determine your home affordability by providing an estimate of the home price you can afford based on your income, debt profile, and down payment.

It works by inputting your annual income and estimated mortgage rate, which then calculates the maximum amount of money you’re able to spend on a house and the expected monthly payment.

Additionally, different methods are available to factor in your debt-to-income ratio or your proposed housing budget, allowing you to get a more accurate estimate of your home buying budget.

The debt-to-income ratio or DTI is used by lenders to assess a borrower’s ability to make mortgage payments.

This ratio is calculated by taking the total of all of a borrower’s monthly recurring debts (including mortgage payments) and dividing it by the borrower’s monthly pre-tax household income.

A high DTI ratio indicates that the borrower’s debt is high relative to income, and could reduce the amount of loan they are qualified to receive.
Generally, lenders prefer a DTI of 36% or less, which allows borrowers to qualify for better interest rates on their mortgages.

To calculate their DTI, borrowers should include debt such as credit card payments, car loans, student and other loans, along with housing expenses. It is important to note that the DTI does not include other monthly expenses such as groceries, gas, or current rent payments.

Closing costs can have an enormous impact on how much home you’re able to afford.

From application fees and down payments to attorney costs and credit report fees, these costs can add up quickly and affect your overall budget. Unfortunately, most of these closing costs are non-negotiable, but you can ask the seller to pay them.

When buying a house, it is important to research the different mortgage options available to you.

You can typically choose between a conventional loan that is guaranteed by a private lender or banking institution, or a government-backed loan. Depending on your monthly payment and down payment availability, you may be able to select between a 15-year or a 30-year loan.

A conventional loan typically offers better interest rates and payment flexibility.
While a government-backed loan may be more lenient with its credit and down payment requirements.
For veterans or first-time home buyers, there may be special mortgage options available to them.

Ultimately, it is important to talk to a lender to see which loan type is best for your personal circumstances.

When it comes to saving for a down payment, it’s important to understand how much you’ll need and how much it will affect your budget.

Generally, you’ll need 20% of the cost of the home for a conventional mortgage and 25% for an investment property. When you put down more money, it gives you more buying power and may help you negotiate a lower interest rate.

For example, if you’re buying a $300,000 house, you’ll need a down payment of $60,000 for a conventional mortgage. On the other hand, if you put down 10%, you can still afford a $395,557 house. But, you will have to pay for private mortgage insurance.

In addition, there are other ways to help you cover these upfront costs. You can look into down payment assistance programs.

Ultimately, the size of your down payment will depend on your budget and financial goals. You should never deplete your savings account just to make a larger down payment. It’s important to factor in emergency funds and other expenses when deciding on the best option.

Eligibility requirements for loan lenders can vary, but in general, lenders are looking for borrowers with a good credit score, a reliable income, and a history of employment or income stability.

For most loan types, borrowers will need to show a history of two consecutive years of employment in order to qualify. However, lenders may be more flexible if the borrower is just beginning their career or if they are self-employed and do not have W2 forms and official pay stubs.

Income verification also needs to be done “on paper”, meaning that cash tips that do not appear on pay stubs or W2s can not be used as income. The lender will look at the household’s average pre-tax income over a two-year period before determining the amount that can be borrowed.

In order to make sure that the borrower is financially secure, lenders will also pull the borrower’s credit report and base their pre-approval on the credit score and debt-to-income ratio. Employment verification may also be done.

For certain government-backed loan types, such as FHA, VA, and USDA loans, there may be additional or different requirements for eligibility. For instance, for FHA loans, the borrower must intend to use the home as a primary residence and live in it within two months after closing. VA loans are more lenient, and may not require a down payment.

The qualifications for VA loans vary based on the period and amount of time the borrower has served. There are many ways to qualify, whether the borrower is a veteran, active duty service member, reservist, or member of the National Guard. For more information on eligibility requirements for VA loans, borrowers can visit the U.S. Department of Veteran Affairs.

A good credit score will mean you have access to more lending options, better interest rates, and more purchasing power.

On the other hand, a poor credit score could mean you are approved for a loan, but at a higher interest rate and with a smaller house.

This means your budget will be more limited and you may not be able to buy as much home as you had hoped for. Additionally, lenders will also look at other factors, such as your debt-to-income ratio, employment history, and loan term, in order to determine your overall affordability.

What House Can I Afford on 70k a year?

As a borrower, you need to consider the interest rate, down payment, credit score, debt-to-income ratio, employment history, and loan term when determining how much house you can afford.

A higher credit score can often mean a lower interest rate, and a larger down payment can bring down the monthly payments.

All of these factors can have an effect on the amount of money you can borrow and the home you can afford.

Ultimately, understanding the impact of different factors can help borrowers make the best decisions when it comes to getting a mortgage.

Now that you know how much house you can afford, it’s time to start saving for a down payment.

The sooner you start saving, the sooner you’ll be able to move into your dream home. But you may have to wait if you are considering a mansion.

By taking into consideration this guide into account, you can make a more informed decision about the cost of a mortgage for your new home.

Source: moneybliss.org

Apache is functioning normally

May 24, 2023 by Brett Tams

Empower Personal Wealth, LLC (“EPW”) compensates Money Bliss for new leads. Money Bliss is not an investment client of Personal Capital Advisors Corporation or Empower Advisory Group, LLC.

You are looking for the best investment app to help you save money, but all of them seem too complicated. You want something that is simple, easy to use, helpful, and even better if the app is free.

Empower is an online service for tracking your finances. Before a merger, the company began in 2009, and to this day it has been growing exponentially with a user base of over two million people.

Personal Capital is now Empower.

The app works on desktop as well as mobile devices, giving users the ability to track their spending easily wherever they go.

Empower also offers a suite of tools that help you get out more information about how you are using your money so that you can make better financial decisions.

On this Empower review, we will focus on what they do well, how it works for those who use it, and where Empower could improve.

Don’t forget… here is a list of all of the budgeting apps on the market.

If you are looking for an easier way to monitor your financials and see how healthy your finances really are, then you may want to check out what Empower has to offer.

What is Empower?

Empower is an online tool for tracking your finances.

It has been called the best financial app out there, and I agree with that statement. But, I personally use it as one of the money management tools to help guide our financial decisions.

I have used Empower to track my investments for over six years now, which probably makes me a bit of an expert on this topic because I use it on a regular basis.

Overall, Empower is a financial planning and wealth management tool that users can use to manage their net worth. The product offers tools for managing investments, retirement, debt payoff, and other personal finance goals.

How does it work?

First of all, Empower is a FREE app that helps you keep track of all your accounts. It can help you to invest better and did we mention… it is free to use!

To get the most out of this app, you’ll have to link each of your financial accounts one by one so that Empower can learn how you spend money.

It takes a couple of minutes to create an account and verify your identity.

The longest step is linking accounts to the Empower app. Just make sure you do this step within 7 days to get the most out of the app.

Features of Empower

The features of Empower include the ability to visualize your overall financial picture, keep track of your investments in a dashboard, and see which companies you are invested in.

Most people associate Empower as one of the best tools to help with investing, like a stock screener and an investment calculator.

But, there are many great features available for free including:

Net Worth Planner
Retirement Planner
Fee Analyzer
Cash Flow Management
Savings Planner
Budgeting
College Savings Planner
Investment Checkup

Pros and Cons of Empower

First of all, Empower is free to use. So, you might as well test drive the system and check out if the Empower app fits what you are looking for.

Just like any of the Empower reviews will tell you, there are positives and negatives with every type of money management app available.

You just have to decide the most important features for you. As well as what you are willing to pay.

Pros of Empower:

Free portfolio management tool.
Good for new investors who want a free-to-use tool with minimal features.
Easy to use and can be accessed on multiple platforms.
Can track investments across multiple accounts.
Tracks over 23,000 securities and over 1,000 mutual funds. – check
Offers a free app for on-the-go access.
Offers in-depth analysis and investment research on stocks, bonds, and ETFs.
Cloud-based platform
Free to use!

Cons of Empower:

Sales call from staff
Wealth management service is more expensive than a traditional advisor or simply investing in index funds.
High wealth management fee
Unable to reconcile your bank statements with Empower, but since they are coming from your bank directly, they should already be in sync.
No credit health information
Budgeting Tool needs improvement
Limited transaction management and budgeting
No import option for transactions from any platform including YNAB, Quicken or Mint
Cloud-based platform

Many people report that the Empower app requires $100,000 in investment assets to be eligible. That is untrue. In fact, it works best for those who have at least $100k in some form of investments – 401k, IRA, brokerage accounts, or even cash!

Empower is incredibly easy to use and has helpful financial planning tools.

Overall, it is one of the many great tools to help further push you to financial freedom.

Empower Pricing

While Empower is free to access personal finance tools, it does come at a small price of annoyance.

Empower is free

Empower is a free online portfolio platform that helps people save and invest their money. It offers tools to track net worth, create investment plans, compare retirement accounts, view savings goals and cash flow, and more.

This is the great part of using this app!

The downside is to make these dashboards free is they are trying to entice you to move to their wealth management services.

You do not need to invest your money with Empower to use this platform.

It is best to keep everything invested where it currently is and use their free tools to analyze and make the necessary changes.

As such, once you sign up, you will receive calls on a reoccurring basis offering you a free analysis. There is no pressure to do this. Once you have said no enough times, they will stop calling you.

Wealth management services come with fees

Empower offers fee-only financial advisory services.

For those under $1 million in investable assets, their fee is 0.89%.

As you can read in this book, there are many ways to invest yourself without paying that fee.

In fact, this is my favorite book explaining how much harder and longer you have to work by paying someone a 1% wealth management fee.

However, for a small percentage of people, this may be a more cost-effective way of receiving professional advice, as it eliminates hidden costs from this type of service.

Empower Tools

Empower is a financial management platform that provides tools to help individuals manage their personal finances. The platform offers tools for portfolio tracking, performance analysis, and retirement planning. The company also provides its users with educational resources on financial topics.

Under their free dashboard, these are the tools you can use for free.

Net Worth Calculator

This simple tool will keep track of your net worth. Very simple and always available.

Know where you stand, by downloading the free app to see your true net worth in real-time.

Understanding your personal financial statement is important.

Picture of using personal capital net worth feature.

Savings Planner

One of the most asked questions is how much I need to save for:

Retirement
Emergency Fund
To Pay Down Debt

Calculate how much to save each year with a 70% chance of reaching your retirement goals. Learn how much you are currently savings and how much you need to start saving.

Cash Flow

Cash flow is the amount of cash available for expenses at a certain time. This term used in personal finance describes the rate at which one’s income and expenses change over time.

The Cash Flow tool is easy to use because Empower automatically tracks deposits and spending. The time saver feature allows users to see their cash flow, balance sheet, net worth, asset allocation over a period of time.

Cash flow is a budgeting tool that offers limited information on spending. It provides a second check when using another program that gives you more details like Quicken or Simplfi.

Retirement Planner

This is the #1 reason I recommend Empower especially if you are looking to stay away from a financial planner.

Trying to figure out how much you need for retirement by yourself seems like picking a random number from the sky.

The retirement planner is used by millions of people to figure out how on track they are for retirement. Plus get tips on what they can do to improve their chances of success.

Budgeting

Budgeting is a method of allocating financial resources by identifying and evaluating needs, prioritizing them in order to meet goals, and monitoring the achievement of those goals.

Empower includes a budgeting section to help you set monthly spending targets and track your spending. They automatically import the information from linked accounts such as checking, savings, and credit card statements.

Using their free online financial dashboard, allows you to track your spending and investments. There are interactive charts, graphs, pie-charts, and even widgets. All to make sure your budgeting is on track.

Investment Checkup

This portfolio analysis is the process of measuring performance and risk in order to develop a strategy for capital allocation. The goal of portfolio analysis is to improve return on investment, which can be achieved by increasing return on assets, decreasing the risk of losses, or reducing the variance.

The Empower app lets you explore your entire portfolio visually. It also provides asset allocation tools and tax optimization tools to help manage a person’s financial life.

Picture of using personal capital investment checkup feature.

Fee Analyzer

A fee analyzer helps people to determine the annual fees they are paying in their retirement plan.

401K Analyzer also calculates how much your retirement is costing you and provides a breakdown of any hidden fees that may be present within mutual funds with which it has been linked. This Retirement Planner tool uses assumptions about account holdings and investment behavior for calculating expenses against an estimated portfolio value.

Consequently, these fees add up over time and will drastically put a drag on your portfolio and reduce your retirement savings.

Picture of using personal capital fee analyzer feature.

Empower Dashboard is Free

Just remember, you do not need to hire an advisor to use the platform.

Empower is a free tool for individual investors.

Empower provides users with access to all of the above-mentioned advanced tools for free. In addition, they offer free financial advice through their blog and social media pages.

It allows users to track their investments and get a personalized financial plan. The service also offers apps for iOS and Android devices, which makes it easy to manage finances on the go.

Empower Wealth Management Review of Services

In addition to offering free financial tools, Empower provides wealth management services.

You get to work one-on-one with an advisor who will give you personalized advice based on your situation.

They help you to invest, save money and track your financial goals.

Their advisors start by determining your risk tolerance and goals in order to construct the best personal financial plan for you.

If you are interested in getting a better understanding of your financial situation, Empower is an excellent option. It gives users the tools to understand their investments, budgets, and cash flow all with one app.

All it requires is that you sign up for free without any obligations or commitments from them whatsoever. You do not have to agree to use their wealth management program.

Personally, I cannot comment on an Empower advisor review as I have not used this service personally.

Empower Investment Strategy

The Empower investment strategy is a simple way to invest your money for the long-term.

This means that you will be able to retire and live a comfortable life without any concern about how you will be able to live.

They employ the tactic called Smart Weighting because they invest equally across all sectors and industries, which can provide diverse returns with minimal risk. The best part of this strategy is it’s easy to use as Empower has created an interface that makes portfolio management simple for users on any device or platform.

Empower’s software is able to identify tax-loss harvesting opportunities (opportunities where the investor sells an investment after it has fallen in value and pays fewer taxes than if the sale had occurred earlier) than investing on their own.

In addition, Empower invests passively for cost efficiency which means that they don’t take any active management into account.

The best part about Empower and one of the key areas I prefer, is they include socially responsible investments as well as an investment strategy to fit any budget.

They identify which companies are doing good work for society and invest in them accordingly. This feature makes personal finance much more interesting and easier than ever before!

Wealth Management Tiers

Many people invest in various financial services and products, such as mutual funds or stocks. They are promised that these investments will generate a good return, but they do not always make the best choice. Wealth management services are a way to help people manage their personal investments. They may charge fees for their service, but that is not always the case.

Depending on your level of assets, will determine the amount of services you will receive.

Investment Services:

This is the most basic level to receive financial and retirement planning guidance from their team of experts.

$100K in investment assets
Unlimited advice from any of the available financial advisors
Managed ETF portfolio

Wealth Management:

This is where you can receive more personalized services and dedicated support to manage your money as you move through new financial challenges.

$200K minimum in investment assets
Two dedicated financial advisors
Access to specialists in real estate, stock options, and more
Regular reviews on your customized portfolio
Tax optimization

Private Client :

This is the most exclusive level at Empower to help you receive comprehensive financial planning. They will help build a customized investment plan to reach your lifestyle goals.

over $1 million in investment assets
Two dedicated financial advisors
Priority access to specialists
In-depth retirement and wealth planning

Wealth Management Fee Structure

Empower charges only an all-inclusive annual management fee at a fraction of the cost of traditional financial institutions. In addition, they do not charge hidden fees, trailing fees, or trade commissions.

First $1 million = .89%
First $3 million = .79%
Next $2 million = .69%
Next $5 million = .59%
Over $10 million = .49%

Overall, if you want a financial advisor or a second opinion, using Empower wealth management services may be for you.

Even if you don’t join, you can still use the tools for free, no questions asked.

My Empower Review from Experience

I have had a lot of experience using Empower in the past. They provide snapshot financial pictures of your personal situation that are very informative.

Plus it is a free tool to use, which is always a bonus.

Empower is one of my favorite online tools to see all your finances in one place.

It is eye-opening to see the overall picture. Also, tracking investments across multiple accounts can be overwhelming, but they make the process seamless and help you stay on top of things.

Personally, my favorite tools are the net worth, fee analyzer, and retirement planner.

I use Empower in conjunction with Quicken. Read my Quicken review.

My Empower dashboard is my overall financial picture whereas Quicken tracks all of my day-to-day spending and helps me remember when we purchased something for a return.

The app has a convenient interface that makes managing your personal financial situation easy, even if you’re not familiar with finance jargon or investing terminology. With this tool at hand, keeping track of where everything stands financially becomes easier than ever before!

Just to note… to get the best financial picture, you must include all of your accounts. The more time you spend in the Empower dashboard, the more helpful analysis you will get from the tool.

Empower Alternatives

In addition to Empower, there are other financial apps that can help you allocate your portfolio.

These include Betterment with Wealthfront also being a viable option for those who want the best of both worlds by tracking their investments in stocks and bonds. However, these alternatives have much higher fees than what is charged by Empower which makes it an appealing alternative if the fee does not bother you.

Also, if you are looking for budgeting capabilities you may want to look at Quicken, Mint, YNAB, or Simplifi.

At the end of the day, you have to decide what your goals are and what you are looking for.

From all of the free and paid budgeting apps, here are our top budgeting apps to check out!

This section may contain affiliate links, which helps us to continue providing relevant content and we receive a small commission at no cost to you. Please read the full disclosure below.

Personal Capital Advisors Corporation (“PCAC”) compensates Money Bliss (“Company”) for new leads. (“Company”) is not an investment client of PCAC.

Personal finance and money management software allows you to manage spending, create monthly budgets, track investments, retirement and more.

Save 40% off on new memberships.

Enjoy guilt-free spending and effortless saving with a friendly, flexible method for managing your finances.

Change your relationship with money!

Photo Credit:
www.personalcapital.com

Personal Capital is wealth management for the Internet Age. The online platform combines digital technology with highly personalized service to provide a holistic view of a unique financial picture (AKA your net worth).

Make sure to connect all of your accounts within 7 days to set up your Personal Financial dashboard.

Tiller is the only tool that automatically updates Google Sheets and Microsoft Excel with your spending, transactions, and balances each day.

Start your free trial.

Automate your financial plan with set-and-forget money tools that fit right into your daily life.

That’s why Qapital puts your goals front and center, then helps you plan your spending, saving, and investing around them.

Manage your money less in 5 minutes each week. Reach your money goals with confidence! The personal finance app gives you something to look forward to.

“The easiest, most comprehensive way to both see where your money is going and plan for future expenses.”

Your automated financial assistant and budget tracker are designed to put you back in control of your money.

Stay on top of your spending, easily track bills, cancel unwanted subscriptions, and find ways to improve!

Photo Credit:
moneybliss.org

HoneyMoney increases your awareness about your money habits. Being fully aware of your money naturally changes how you spend it.

Great way to use cash flow budgeting. Plus uses “envelopes” to budget.

Start your free trial.

Moneyspire is user-friendly personal finance and small business accounting software that brings your entire finances together in one place.

Have total control over your financial life in one click.

Is Empower right for you?

Picture of trees growing from money for this personal capital review.

Empower is a company that offers tools for personal finance management. This app has more than one hundred different tools to help you with your finances, including monthly budgeting and investing tracking.

Empower also helps people manage their credit card debt, establish emergency funds, track retirement savings progressions, calculate their net worth, and much more!

The smartphone app integrates locations, bank accounts, and credit scores which allows users to access current information on their financial situation.

The online portal allows for comparing available investment options.

This tool allows people to plan out the future of their money as well as provides them with valuable financial information in an easy-to-read format so they can make informed decisions.

As stated before, Empower is a financial app that can help you manage your investment assets. It has many features and it’s not perfect, but it’s the best out there in terms of value for money.

You can always test drive it and see what you learn about your personal finance situation.

Now you can try it free (no credit card required!)

Source: moneybliss.org

Apache is functioning normally

May 17, 2023 by Brett Tams

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.

Budget Binder with Envelopes is a simple and easy-to-use budgeting tool that helps you to organize your cash, stay on track and save money.

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

Picture of cash and notebook on how to organize your budget.

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?

Picture of a calculator, computer and budget binder.

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.

Source: moneybliss.org

Apache is functioning normally

May 10, 2023 by Brett Tams

Inside: Are you thinking about moving out? This guide will help you figure out how much money you need to save and where to find affordable housing. Will $5k be enough to move out?

Moving out for the first time is a huge milestone. It’s a chance to start fresh, create your own space, and live on your own terms.

But it can also be a daunting prospect, especially when you’re trying to figure out how much it will cost.

You want to know if $5,000 is enough to move out?

But there are a lot of factors to consider before making the decision to move out, and we’ve laid them all out for you in this ultimate guide.

So whether you’re just starting to think about moving out, or you’re ready to start packing your boxes, read on for everything you need to know about making the big move.

Are you thinking about moving out? This guide will help you figure out how much money you need to save and where to find affordable housing. It also covers important topics like rent, utilities, and home insurance. Learn is $5000 enough to move out?

How much money do I need to move out?

Experts recommend having at least $6,000 to $12,000 saved up before moving out.

However, it’s possible to move out with as little as $5,000 if you focus on knowing how to live cheap and have a stable source of income.

However, if you don’t have a job before moving out, the need for a huge savings account is huge.

How much money should I have if I want to move out?

The minimum amount of money required to move out will depend on where you plan to live and your living expenses.

Shortly you will learn factors to include initial moving costs, rental deposit, and ongoing costs like rent, utilities, and food.

If you are looking to move out in an HCOL area, then you will need more than an LCOL city. At this point in your life, it is important to understand HCOL vs LCOL and how it affects your finances.

What are the expenses you should consider when moving out?

Picture of a house sitting on cash for what are the expense you should consider when moving out.

Moving out on your own can be a daunting and expensive task.

There are many expenses to consider when budgeting for your new place especially when you are learning how to move out at 18.

This guide will help you estimate the cost of moving out and provide tips on how to save money.

1. Rent/Utilities

The cost of rent varies depending on the location and size of the apartment or home, with the median rental cost in the US being around $1700 per month.

Along with rent, utilities like electricity, gas, water, and internet can cost around $400 per month.

To save money on rent and utilities, consider finding roommates to split costs or negotiating with landlords for a lower rent.

Rent is your biggest expense when figuring out the ideal household budget percentages.

2. Rent Deposit

When renting an apartment, you will typically need to provide a rent deposit. This deposit is a sum of money paid upfront to the landlord to cover any damages or unpaid rent at the end of the lease.

The cost of a rent deposit can vary depending on the location and the landlord’s requirements, but it can range from $1,000 to $5,000 or one to three months of rent.

To save money on a rent deposit, consider looking for apartments with lower deposit requirements or negotiating with your landlord for a lower amount. A clean rental history will help you with this.

3. Moving Expenses

Moving out can be an expensive process, but with some planning and budgeting, you can keep costs under control.

When considering moving expenses, be sure to factor in the costs of moving truck, packing supplies, such as boxes and tape, as well as the cost of hiring movers

To save money on these expenses, try finding free packing materials on Buy Nothing groups or ask friends and family to help you move. You can also minimize your possessions and have less to move.

4. Renter’s Insurance

When moving out and renting a home or apartment, it’s important to consider getting a renter’s insurance policy to protect you from unforeseen events.

Home insurance, also known as renter’s insurance, is a special type of insurance policy that protects your property against losses or damage stemming from covered perils, including fires, storms, or theft. It can give you peace of mind and help you repair or replace your possessions in the event of unforeseen situations.

Insurance premiums are based on various factors, including where you live, how much you choose to insure, and your deductible. Your credit score and history may also affect your insurance rates.

5. Furniture and Appliances

When moving into a new home, it’s important to consider all the necessary expenses for furnishing the space. This includes appliances like a refrigerator, stove, oven, and microwave, as well as daily living items such as a mattress, table, and couches.

I remember when I moved into my first apartment by myself and there wasn’t a washer or dryer in the apartment. Just hookups. I had one of two choices: 1) rent from the management company for $35 a month or 2) buy new appliances with 0% interest for $35 a month. I choose option #2 and it saved me money in the long term.

To save money, consider buying used furniture from thrift stores or online marketplaces like Facebook Marketplace. You can also find plenty of free furniture if you are not picky.

By being thrifty and smart with your purchases, you can furnish your new home without breaking the bank.

6. Housewares

When moving out on a budget, it’s important to consider the essential housewares you’ll need to make your new place feel like home. Here’s a list of must-haves and their estimated costs:

By prioritizing these essential housewares, you can make your new place feel like home without breaking the bank.

Don’t forget to check out thrift stores and Facebook Marketplace for gently used furniture and household items. With a little creativity and resourcefulness, you can furnish your new home on a budget.

7. Internet and Phone Bills

The average cost of internet and phone plans varies depending on the provider and the plan you choose. However, you can expect to pay around $50 to $100 per month for internet and $40 to $80 per month for a mobile phone plan. In addition, there may be additional fees, such as equipment costs or activation fees, which can add up quickly.

To minimize these expenses, consider bundling services with one provider. Many companies offer discounts for bundling internet, phone, and cable services.

8. Credit Card Payments

If you thinking about moving out and are currently swaddled in debt, then you probably don’t have enough money to move out. If you have high-interest credit card debt, prioritize paying it off before moving out.

Automating savings on essential bills using Truebill can also help you manage your credit card payments while covering the costs of moving out.

Additionally, ensure that you have an emergency fund and enough money to stay a year to handle unexpected expenses.

Things may get harder if you have to pay for college without help from parents.

How to calculate your moving out budget

Moving out on your own requires careful planning and budgeting.

To calculate your moving-out budget, start by determining your monthly expenses once you move out. Make sure to include the factors discussed above.
Then, decide on your target move out date.
Now, figure out how many months you have to save.

For example, if your target move out date is in 6 months and you need to save $5,000 to cover your expenses, you’ll need to save about $833 per month.

Additionally, create an emergency fund to cover unexpected expenses such as medical bills or car repairs. Aim to save at least 3-6 months’ worth of expenses in your emergency fund.

By creating a detailed monthly budget and sticking to it, you can ensure that you can afford to live on your own and achieve your goal of moving out.

Tips and tricks on how to move out

Image of a mom talking to her son with tips on how to move out.

So, you’re finally ready to move out and start your life as an independent adult.

But before you can start your new life, there are a few things you need to take care of first – like, you know, finding a place to live and figuring out how to pay for it.

Learn the lessons from those who did not move out with enough cash – like me.

Tip #1: Create a Budget and Stay Within Limits

Moving out with only $5000 can be challenging, but creating a budget and sticking to it can make the process much easier.

To start, subtract your monthly bills from your monthly income to determine your basic budget.

For instance, if you make $2500 per month and pay $1500 for rent and bills, you have $1000 left for living expenses.
Allocate $400 for groceries and other necessities, $200 for transportation, and $100 for utilities.
This leaves you with $300 for entertainment and other non-essential expenses.

To stay within your budget, consider using a budget binder to track your income and expenses.

Be mindful of living within your means and avoid overspending by resisting the temptation to spend your first paycheck on new household items or entertainment. Instead, opt for more affordable options such as walking around your new neighborhood or having a picnic in the park.

Tip #2: Reduce Expenses Where Possible

One of the hottest topics is becoming frugal green. To save money and the environment at the same time.

When it comes to furniture, try buying used or refurbished items or borrowing from friends and family. Additionally, cutting back on unnecessary expenses such as dining out and entertainment can free up more money.

By being resourceful and creative, it is possible to move out on a budget without sacrificing quality or comfort.

Remember to allocate 50% of your monthly pay towards necessary expenses, 30% towards things you want, and 20% for debt repayment and long-term savings.

Tip #3: Look for Low-Cost Rentals

Finding low-cost rentals can be a challenge, but there are several options available to those who are willing to be flexible and creative.

Renting a basement suite or studio apartment can be a more affordable option.
Consider couch surfing, subletting, or home-sharing arrangements.
Home-sharing can be particularly attractive as it allows you to pair up with an elderly homeowner who needs a little extra help in exchange for low rent.
Find a tiny home rental.
If you don’t mind sharing the space, you can also consider getting a roommate or looking into pod shares. Pod shares are co-living spaces where individuals rent a bed in a shared room, with access to other community spaces like a bathroom and kitchen.
Become a housesitter and be paid to move out. Learn more with Trusted Housesitters.

With a little bit of research and creativity, it is possible to find low-cost rentals that fit your budget and lifestyle. Remember to determine exactly how much you can spend on rent and be open to alternative housing solutions to help keep your costs at a minimum.

Tip #4: Look Into Getting Renters Insurance

When renting you are more than likely going to live closer to others, which means more things can go wrong. Don’t skip out on renter’s insurance, as it can provide the peace of mind and protection you need as a first-time renter.

Without renter’s insurance, unexpected disasters such as fires, storms, or theft can leave you with thousands of dollars in damages that you would have to pay out of pocket.

Renter’s insurance typically costs around $20 per month and can save you a lot of money in the long run. Some affordable options for renter’s insurance include Lemonade, State Farm, and Allstate.

It’s important to shop around and compare policies to find the best one for your needs and budget.

Tip #5: Plan for Emergencies and Unexpected Expenses

Picture of a jar stuffed with coins for emergency expenses

It is crucial to plan for emergencies and unexpected expenses.

Start by setting aside a minimum of $1000 for an emergency fund.

Ideally, you should aim to save at least three to six months of living expenses in a rainy day fund. Remember, having a contingency plan and emergency fund can provide peace of mind and protect you from financial hardship.

Tip #6: Start Saving for a Security Deposit

Remember to prioritize saving for a security deposit by setting a specific savings goal and putting aside a portion of your income each month before you move out!

With dedication and discipline, you can reach your goal and move out with confidence.

More than likely, if you are a good tenant, you should get your full security deposit back after your lease is over.

Tip #7: Start a Side Hustle

Picture of someone starting a side hustle.

Starting a side hustle can be a great way to earn extra money while still maintaining your full-time job. You can earn extra income through various side hustles depending on your skills and interests.

The most common side hustles are online jobs, such as transcription, virtual assistance, proofreading, blogging, freelance writing, data entry, graphic design, and web design. These jobs are flexible and eliminate the need for driving anywhere, requiring only a laptop or computer and a good internet connection.

In fact, learning how to make money online for beginners is a trending topic.

As you start your side hustle, put in as much time as you have available to maximize your earnings. Remember that a side hustle is unlikely to replace the need for a real job, but it can provide a great way to earn extra money and pursue your passions.

Tip #8: Plan Ahead and Create a Timeline

When planning to move out on a budget, it’s important to create a realistic timeline.

Start by mapping out all the expenses you’ll need to cover, such as rent, utilities, food, and transportation. Along with how much money you have already saved for unknown expenses.

Stay organized by keeping a checklist of everything you need to do and when it needs to be done. Don’t rush the process – take your time and make sure you have everything in order before making the big move.

Remember the millionaire quote, failing to plan is planning to fail, so take the time to plan ahead and create a realistic timeline.

Is 10000 a good amount to move out with?

According to various sources, $10,000 is generally considered enough to cover moving out expenses and leave room for emergencies.

However, the actual cost of moving out can vary depending on location, rent prices, and cost of living.

Learn how to save 10000 in a year!

FAQ

There are a couple of different ways to save more money including:

Cut back on frivolous expenses like eating out and buying new clothes.
Sell anything you have that you don’t want or need on websites like Craigslist, Facebook Marketplace, Depop, or eBay.
Consider getting an extra part-time job or side hustle to increase your income.
When it comes to furnishings, be thrifty by asking friends and family if they have anything extra they’re getting rid of or checking out second-hand or discount stores.

Set saving goals and track your expenses using a spreadsheet. That will give you a clear picture of what is and is not possible.

Renter’s insurance is highly recommended, and in some cases, required by leases. It provides protection against unforeseen disasters such as fires, storms, or theft that can damage or destroy your possessions.

While it may seem like an unnecessary expense, it is usually affordable and can save you a lot of money compared to paying out of pocket for damages.

Not having renters insurance can leave you vulnerable to unexpected expenses and potential financial ruin.

You should not spend more on your rent payments than you are comfortable.

Just like with getting a mortgage, you should spend no more than 30% of your take-home pay on rent payments.

You don’t want to be stressed about finances, so you should set a realistic budget for rent that allows you to comfortably cover all of your expenses while still having some money left over for savings.

So, is 5000 enough to move out?

Picture of a girl knowing that she has enough money to move out.

It really depends on your situation.

If you’re moving to a cheaper area and don’t have many expenses, you might be able to make it work.
However, if you’re moving to a more expensive city or have a lot of bills, you might need to save up more money.

When determining how much money is needed to move out, there are several factors to consider, which we covered above. These include where you plan to live, your living expenses, initial moving costs, ongoing costs, and emergency funds.

It’s essential to have a budget and do the math to determine the minimum amount required for a smooth transition to independent living on a tight budget.

Ultimately, it’s important to do your research and figure out what’s best for you.

Source: moneybliss.org

32+ Best Cash Envelope Categories to Budget Money in [2023]

February 18, 2023 by Brett Tams

Budgeting with cash envelopes is one of the most popular methods for people who want to get a handle on their spending….

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How Much House Can I Afford With 100K Salary? – Top Factors to Consider

February 11, 2023 by Brett Tams

Making the decision to buy a house is a huge financial step. If you’re like most people, you probably have a lot…

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