My mom has a sixth sense when it comes to bargain hunting. Where I’m thrilled to get 25 percent off and free shipping, she’s finding deals of 70 percent off and getting inside scoop from the salespeople, who probably have her on speed dial should a ginormous everything-must-go-or-we-torch-it clearance sale come along.
Okay, so I’m exaggerating, but not by much. The point, however, is that the key to finding bargains is timing—off-season, end-of-season, new models bringing down prices on the old models. There’s a pattern and a perfect time to buy just about anything.
When possible, plan your purchases by using the following list to score the best deals and to keep more of your money in your high interest savings account:
House and Home
Real estate—March through August are active months for buying and selling, so a buyer looking for a deal will have better luck negotiating on an offer in autumn and winter.
Flooring—Carpet and flooring goes on sale near the end of the year due to slow sales, though discounts are possible throughout the year from independent retailers.
Furniture—January and July, when stores need to make room for new inventory.
Gas grill—Like air conditioners, the best time to buy is during winter months, when demand for outdoor grills is low.
Cookware—April and May (think graduation and wedding prime time) and October and November (holidays approaching).
Linens—January “white sales” and the end of each season (i.e. as spring approaches, winter-colored linens will go on sale). It’s common to see linens (in all colors, not just white!) on sale for up to 60 percent off retail.
Mattress—New mattresses arrive in stores in May, when you’ll find a good deal on the previous year’s models.
Vacuum cleaner—June, when new models hit the floors, and end of winter.
Hardware—Big sales occur around Father’s Day and between Thanksgiving and Christmas.
Home appliances—New models arrive in September and October, when you’ll find good deals on last year’s models. Holiday weekends—Fourth of July, Labor Day, Columbus Day, Presidents Day—also are good bets for deals. If you’re willing to buy an appliance with a ding or a scratch, you can save hundreds.
Air conditioner—Winter months, when demand is low.
Flora
Flowers—Tulips are less expensive in February, peonies in May. Flowers are at their best when in season.
Shrubs, trees, etc.—Autumn is a good time to buy bulbs (store them according to directions on the packaging) and trees and shrubs (nurseries are trying to clear out inventory).
Recreation
Outdoor (general)—Swings, beach and pool toys, swimming gear, and other outdoor items go on sale in August, when retailers are trying to make room for fall and winter items.
Outdoor gear (bicycles, for example)—February and March, when new models replace last year’s models.
Boat—Boat shows, held from January through March, generally offer the best prices.
Gym membership—Membership sales soar in January as everyone resolves to lose weight, but lag in spring and summer. You’ll find lower fees and waived enrollment fees to lure you to their treadmills.
Movie tickets—Matinees are an established way to spend less at the theater (as is smuggling in your own M&Ms, not that I’d condone such behavior or ever do so myself…). A.M. Cinema (AMC Theaters) sells discounted tickets before noon from Friday to Sunday and on holidays.
Broadway tickets—Find bargains hours before the show, or try the well-known TKTS booth in Times Square.
Electronics
Blu-ray player—Black Friday sales and after-Christmas sales offer some of the best deals.
TV—Sales can be found throughout the year. Times to note include Black Friday, between Thanksgiving and Christmas, right after New Year’s Day, before the Super Bowl, and in May and June. New models hit stores in August and September, when you’ll find sales on new models and discounts on the previous year models.
Cell phone—New customers get the best deals. For new phones, wait six months if you can. Search online for coupon codes, as well.
Digital camera—The Consumer Electronics Show and Photo Marketing Association convention mean new models will arrive in stores. Shop in January and February for deals on last year’s models.
Computer—Back-to-school season yields a few sales, but the best deals can be found when a technology is outdated and retailers want to get rid of the older models. Look for a few extras (free shipping, bundled accessories, etc.) around the holidays.
Tip: In general, you’ll find a good deal when an electronic item is outdated. Wait until after technology shows like MacWorld and the International Consumer Electronics Show to see if your iWhatever will be discounted to make way for the next big thing.
Auto
New car—New models roll into the lot in fall, so shop in September for last year’s model. Shop on a weekday at the end of the month to get the undivided attention of a salesperson trying to make their monthly quota.
Used car—Dealers increase their inventory in April to start the spring selling season. You’ll find a good selection and willing negotiators.
Recreational vehicle—Dealers sometimes offer specials in winter, but generally buying an RV works like buying a car (see new cars).
Gasoline—Fuel up on a weekday, early in the morning if gas prices are rising or in the evening if gas prices are going down (prices are usually changed between 10 a.m. and noon).
Oil change—Look for early bird specials in your area.
Tires and auto parts—During April (National Car Care Month) and October (Fall Car Care Month), you are likely to find buy-three-get-one-free deals on tires, free oil changes, and other checkups.
Car wash—Early birds (before 8 or 9 a.m.) can often find deals at full-service car washes.
Travel
Airline tickets—For domestic nonholiday travel, look for the lowest fares 21 days from your departure. Fares are updated at 10 a.m., 12:30 p.m., and 8 p.m. on weekdays, and airlines file one update on Saturday and Sunday. Lowest fares are filed on Tuesdays, Wednesdays, and occasionally on Saturdays. Wednesday is generally the cheapest day to fly and Sunday the most expensive. (Exception: the Wednesday before Thanksgiving—the busiest travel day of the year.) For holiday travel, start looking in September to get a good price. Fares can change quickly, and much depends on the carrier and the market.
Travel (general)—The off-season or shoulder-season for your destination will offer the most savings on lodging, recreation, transportation, etc.
Food
Groceries (supermarket)—On Sunday evenings, you’ll save money through store sales (typically run Wednesday through Thursday), and by shopping in the evening, you can save even more on items that must be sold by day’s end. If you clip coupons from the Sunday newspaper, you’ll enjoy additional savings.
Coupons—While coupons are available throughout the year, the most coupons appear in the Sunday paper during November and December. The best deals on turkeys can be found two weeks before Thanksgiving to Christmas. In spring, you’ll find coupons on seasonal produce, ham, and frozen food (apparently March is National Frozen Food Month—who knew?). Summer coupons offer discounts on grilling items and ice cream. Autumn brings coupons on soup and other canned items.
Groceries (farmers market)—Vendors often lower prices near closing to avoid having to pack up perishables and take them back to the farm.
Champagne—With steep competition to be your New Year’s Eve bubbly, Champagne houses drop prices during the holidays.
Clothing and Accessories
Clothing (general)—Got your heart set on something in particular? Shop on a Thursday evening six to eight weeks after the item arrived in the store. By Thursday, the weekend sales have started and the selection will still be good. Season-end clearance sales also offer up savings.
Baby clothes—Shop during your pregnancy for end-of-season clearance items. If it’s springtime and you are due in winter, look for winter closeout sales now for infant clothing.
Jewelry—Avoid the holidays, when you are most likely to pay full price.
Weddings
Wedding (general)—The off-season can mean big discounts. If you live in a cooler climate, you’ll find savings during the winter months. Hotter climates mean likely deals in summer months.
Wedding dresses—After Thanksgiving and before Christmas. Boutiques are stocked with gowns for Christmas engagements, but it’s a slow sales period.
Other
Toys—October and November offer good bargains as retailers gear up for the holiday season.
Wrapping paper—January, of course!
I might not ever be as good as my mom at bargain hunting, but knowing when to shop might make me almost as good. If you’re one to make resolutions every new year, resolve to save money and correcting your small errors by including a check on your free credit report to make a huge difference in your purchases in 2010 by timing your purchases.
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The ripple effect of a financial mindset can be seen in every aspect of your life.
Think about it: If you are not mindful of how you spend and save money, then you will be in a constant struggle each and every month.
If you are simply someone who is struggling to make ends meet, there are many things we can do to save money. If you are trying desperately to reach financial freedom sooner, then you need these best money hacks to make it happen sooner.
Around here at Money Bliss, we spend a lot of time on our money mindset and setting goals.
Everyone is in a different season with their finances.
But, one thing is true… Most of us never learned proper money management.
Do you find yourself in a constant cycle of financial struggle? Do you feel like you are constantly trying to live up to unrealistic standards?
It is easy for people to feel that they are constantly broke, and in some cases this is true. But, it is also important to remember that there are ways in which you can make more money and start saving for your future.
Since changing money habits does not always come easy and often requires some serious changes in our mindset, we are here to support you to find the top money hacks.
Read on as we share 50+ ways you can start saving more money as well as making more money while also saving your sanity!
What are Money Hacks?
Money hacks are the ways in which people stretch their money.
These money hacks can come from a variety of sources, such as personal experience, family members or friends, and other individuals on social media.
Money hacks can come in many forms such as:
Simple money saving hacks
Ways to make money on the side
Strategies to make every dollar count
Thrifty ideas to be more frugal
Ideas to be more conscious of our waste
All in all, money hacks will help you to spend less money. Thus, saving more money.
As you will learn at Money Bliss, saving money opens up doors of opportunities
Best Money Hacks
Money hacks are ways to build long-term wealth.
Even though most of the hacks for money include quick saving wins, over the long term, you will actually start a snowball effect of more money in your bank account.
Sometimes, it can be difficult to find the motivation to save money, but these 7 best real money hacks will help you reset your financial mindset and start saving!
The best money hacks are the overarching big picture concepts that you must master for long-term success.
1. Think Big
Open up your mind.
One way to reset your financial mindset is by opening yourself up to new ways of thinking about spending and saving.
Too often, we are focused on what is directly in front of us instead of thinking about the big picture.
A great way to think big with your finances is to decide how you want to live life with intention.
2. Habit of Saving Money
Get back in the habit of saving.
If you have been beyond your means or barely scraping by, the best way to get back on track is by saving at least 20% of your income.
This may seem a little ludicrous. However, by prioritizing saving first, you will be pleasantly surprised how well you live off the rest.
In this post, there will be so many simple and easy ways to start saving today.
3. Make a Plan for Your Money
Create a spending plan (aka that dreaded word budget).
Creating an outline for what you want and need will help you to make smarter decisions about your spending.
This concept has been made too difficult over the years.
The bottom line is you want to spend less than you make. So, make a plan for that to happen today.
4. Make Money on the Side
This one is huge!
Personally, making extra money has been a priority for the last 5 years. We spent many years trying to cut our expenses and hating our inability to actually spend less as a growing family. So, we changed our focus to finding ways to make more money instead.
Start a side hustle. If you are not making enough to live comfortably, start a side hustle! Use your unique skill set to make extra cash.
Pick up a second job or ask for more hours.
There are plenty of ways to make money fast.
5. Invest in Stock Market
This means a way to make money or increase your net worth. AKA make your money work for you.
Too many times, the concept of investing is big and scary. The thought of starting is way too overwhelming. So you put it off until next week or next month. Then, a couple of years go by and you have not invested your money.
That is the biggest financial mistake you can make.
Start small by investing in an index fund. Each month consistently add more money.
If you want to learn to trade stocks, then you must enroll in the best investing course I have found.
Read my in-depth investing course review.
6. Pay Off Debt
Ugh… debt is the cash flow killer.
You are unable to make forward progress if you are straddled by debt.
Figure out how to pay off debt ASAP.
When calculating how long it will take to pay off high-interest debt, you should consider paying the highest interest rate first. Here is the best debt payoff app available.
7. Watch Your Spending
Be mindful of your spending.
This is a great practice that many people need to start doing again, regardless of how much money or how little money they have.
Every few months, you need to evaluate your spending to see if it matches up with your values.
As you can imagine there are many money hacks that can help you save, but the list above is the money hacks that will make the biggest difference the quickest. Below we have many more money hacks for you to explore.
Hacks for Saving Money
Money app hacks are small, quick, and easy ways to improve your finances.
They can range from things like automating your budget or creating a money jar that pays for itself, to more complex solutions like changing your tax withholding or moving money around to get a higher return.
Honestly, there are so many life hacks for saving money.
8. Automatic Savings
This is a practice of automatically transferring money from your checking account into your savings account on a regular basis.
It is best to set a transfer amount and stick to it.
Since it is easier to save your money before you spend it, you must save as much money as possible in order for this strategy to be effective.
9. Financial goals
A financial goal is a long-term, quantifiable expectation for how much money you want to have, or what you plan on doing with your money. Your goals can be as simple as saving for the down payment on a house or as involved as saving for retirement.
Our financial goals allow us to set specific, numerical targets that help us achieve our desired lifestyle in a more concrete way.
You must set smart financial goals.
10. What brings you joy?
At the end of the day, it is important to remember that life is all about finding what brings you joy.
The question is open-ended, but your money must line up with what brings you joy.
Spend a few minutes and stew on the question.
11. Build an emergency savings fund
Building an emergency savings fund is a great idea if you are in the habit of saving money and want to make sure that you have some money saved up when times get rough.
If you are struggling to save, there are a few ways you can increase your savings.
For example, you might be able to set up automatic transfers from your checking account into an investment account. You should also make sure that you have a way to save money outside of your checking account.
Saving cash in a jar or saving up coins are ideas for some people.
12. Invest spare change
If you go shopping and buy something, most stores will give you change. If you use a debit or credit card, you can do the same thing with help of a popular app!
Simple money hack: investing your spare change.
In order to invest your spare change in an account, you can open one for as little as $5. Acorns then automatically invest the money from your checking account and into a savings acorn account.
As the round-up feature continues to add upon each purchase, it is a good idea to invest in this app so that you can save more dollars!
13. Challenge Yourself to Save
If you are looking to save money, it is best to set up a budget that includes challenging yourself.
A great way to do this is with the no spend challenge.
A no-buy is when you decide to simply not make any purchases for a certain amount of time.
A no-spend is when someone decides to not spend any money in a certain period of time.
When you are struggling with spending too much money and want to reset your wallet, then give up spending money. Period.
14. Join a buy nothing group
The buy nothing groups are a growing movement that started in order to help people cut their ecological footprint, save money, and break free of consumerism.
This is a great way to find things you need as well as declutter your house.
15. Negotiate everything
The key to successful negotiation is preparation.
Research the company’s past sales, price changes, and discounts offered in order to get a better understanding of what you’re negotiating for.
Don’t be afraid to negotiate.
What is the worst thing that can happen when someone says no!?!
16. Refinance Your Mortgage
It is never too late to refinance your mortgage.
In fact, it might be a good idea if you’re in the market for a new home or refinancing your loan on an existing property.
You must weigh the costs of refinancing to how much you will save over the time period of the loan.
Ask around for mortgage broker recommendations and get at least two quotes.
17. Downsize your Home
Downsize your home is the term for reducing a residence in size. This can be done by either moving to an apartment or buying a smaller house. There are many benefits of downsizing, including living a more affordable lifestyle and having less upkeep.
Downsizers use their homes as investments and save money on rent or mortgage payments.
18. Cut the cord
With the internet becoming accessible to everyone, people have started cutting their cable and watching shows online. People can save up to $500 a year by cutting cable from their bills.
Cut the cable & stop watching TV!
19. Learn about Finances
Ask for help.
If you are struggling, there is no shame in asking for assistance from your friends or family members.
The goal is to get ahead with money and not keep digging further into a hole.
Check out any of our courses to help you.
20. Save for What You Want
Decide what you want most and work towards it with the money you have now, instead of waiting for a windfall or a large inheritance.
This may mean setting aside $200 a month.
For example, as a reminder of your long-term goal of buying a beach property, you may buy something you would hang in the new place. Every time you see it, you will be reminded of what you are saving towards.
Budget Hacks
Financial hacks are not unusual.
Since it is so easy to overspend, you must know a few budgeting hacks ahead of time.
21. Need vs Want
A want is a desire for something, while a need is something that fulfills the requirement of your body like food or shelter.
When you think about buying something, ask yourself if it is a want or a need.
By uncovering needs vs wants, you are quickly able to find ways to spend less and save more.
22. Avoid Temptation
To avoid temptation, it is important to maintain a healthy amount of physical and emotional distance from the things that tempt you.
Sometimes, spending triggers are easy to avoid but other times they’re not.
However, people should always be aware of their temptations and try to stay away from them because it will lead to unnecessary debt or stress in the long run.
23. Practice the 30-day rule
Many people wonder what’s the 30 day rule with money…
The 30-day rule is the principle that states that you should practice a new habit or stop an old habit for at least thirty days before expecting success.
When it comes to your money, it means to wait thirty days before making big purchases or changes.
24. Keep a Budget Binder
A budget binder is an important tool that helps people keep track of their finances.
The binder can help people plan out their finances by providing a place to record expenses and income.
Keeping a budget binder is an effective way to track your spending and keep yourself accountable.
By keeping it, you can easily plan for future expenses in advance as well as see what money could be saved or spent on different items over time.
25. Get a spend tracker and use it regularly
Track your spending for 30 days. It can be a good idea to track your spending for at least a month to get an idea of what you’re spending and where.
A spending tracker is a tool that helps people keep track of how much they are spending on a certain item. It is important to use this tool regularly in order to be able to see patterns in your spending.
Then, review your spending. Share it with a trusted friend or family member to come up with some goals to reduce expenses in order to save money.
26. Create a budget
Create a budget, and follow it.
When you schedule your spending, make sure to leave room for savings. This is the easiest way to ensure that you can stick to your budget.
Find more budgeting resources on our site.
27. Pay Bills on Time
This should be a simple statement that we all know. However, life can throw curveballs.
Try to pay your bills on time and in full every month, and make sure all of your bills are paid each month.
This will show lenders that you are responsible and that you are taking care of your credit. Plus you don’t rack up those pesky late fees and high interest rates.
28. Avoid Missed Payments
Don’t miss any payments, and pay off your balances each month to avoid paying high interest rates or fees on late or missed payments.
Read again… do not miss paying your bills.
29. Reconcile Your Checking Account
Balance your checkbook monthly. Okay, no one really uses a checkbook anymore, but you can still do this with pen and paper.
Even better, use Quicken as a simple way to balance your checking account. Read my Quicken review.
This is a great way to check for being charged too much or find a subscription you don’t use anymore.
30. Avoid Summer Budget Busters
Avoid spending money for the summer by just being conscious of your spending and reviewing what is different than the norm.
It is too easy to get into the trap of spending money because the weather is warm.
31. Review your Credit Card Statements
If you’re like most people, you probably review your credit card statements once every six months.
What’s the best way to go about reviewing them?
It depends on how often you use your credit card, how much debt you have, and what your credit score is. You should review your statements at least once a year if you’re carrying a balance on your credit cards.
If you use your credit card, then you should review your statements at least monthly.
32. Use the Cents Plan Formula
While the 50/30/20 budgeting rule is popular, our method of budgeting your money will be more helpful.
Learn how to divide your income into various categories.
Check out the Cents Plan Formula.
33. Use Cash
Use cash instead of credit cards to spend, which will make it easier to limit yourself to how much you can spend.
The envelope system helps you save money by only spending from one designated cash stash each month and withdrawing a set amount for different types of expenses (like groceries).
34. Spending Freeze
Implement a spending freeze, which helps you get used to not buying things for an allotted time so that when the freeze is over, it’s easier to buy what you want.
You will be surprised how much random online shopping you do.
Begin your spending freeze now.
35. Use a Budgeting App
Use your bank’s budgeting tools, like Quicken, which can help you track how much money is coming in and out of your account.
This is the simplest way to manage your money wisely.
Using a money app or a personal finance website can help you to stay organized and get more creative about your budgeting.
Check out this list of the best budgeting apps available.
Hacks to Make Money
Hacks to make money are a list of ways to generate income for yourself. Many ways to make money include blogging, affiliate marketing, or day trading. These money making hacks are great, but they can take more time and energy invested.
36. Use cash back apps
Cash back reward apps like Ibotta are a way to get extra money for your purchases.
They take some time getting used to and you only have access to partner stores that offer cash-back offers. It only takes a few seconds to make some extra cash.
Check out the best cash back apps available.
37. Ask for a Raise
A raise is an increase in pay for a job, labor, or service.
If you are concerned about asking for a raise, then you are missing out on lost money.
Your boss may be receptive to it, then try negotiating more money. Not only will this be good for your career, but also the relationship between you two can improve as well.
38. Get a side hustle
A side hustle is an additional job or career, usually, one that requires only a small amount of time and effort.
For example, someone who wants to work on the weekends might start a side hustle as a bartender.
Side hustles are a form of entrepreneurship that allows you to earn money and do little tasks. They are not difficult or time-consuming, but they can still help you make extra cash on the side.
Pick one of the best gig economy jobs.
39. Rent out a part of your home
A part of your home is often a room, which can be rented out on Airbnb.
Airbnb is the largest and most successful company in the world that lets people rent their extra space or properties. They are a well-known company that provides an easy way for people to make money from their extra space.
Use Neighbor to lend out your space in your home.
40. Declutter: sell your junk for cash
Decluttering is the act of getting rid of excess or unnecessary items.
In order to declutter, you must be willing to give up something that has been a part of your life for a long time. It is important to remember that decluttering does not have to be a quick or easy process.
Then, sell your stuff on Facebook Marketplace, Nextdoor, eBay, etc.
Learn more at Flea Market Flippers.
41. Earn Money While Watching TV
Although it is not a fast way to get rich, this can be used as a side hustle.
It’s better to use the money earned from watching TV or something else that takes up your time for other things like bills and groceries.
Survey platforms are online sites that allow people to earn money while watching TV.
The survey platform will send surveys through the mail or email, and then they can choose whether they want to take the survey for a set reward amount or if they would like cash back on their purchase.
One of these options is MyPoints, which allows users to earn points by completing tasks such as taking surveys and shopping online at specific retailers.
Others include:
42. Maximize Your Income
Find ways to increase the amount of money you bring in, whether that’s through a side hustle, increasing hours at work, or asking for a raise.
In today’s society, there are plenty of ways to make more money.
Only you put a limit on what you are capable of earning.
43. Build Your Credit
Building your credit can be a long process, but it’s worth the effort. If you’re trying to establish or improve your credit score, here are some tips that might help:
Try to keep your credit utilization rate below 30% at all times.
Do not open too many new lines of credit in a short period of time.
Pay your bills on time.
This will help you avoid damaging your credit score.
Hacks for Free Money
Hacks for free money are a form of fraud wherein the perpetrator solicits payment via PayPal, credit card, or other methods in exchange for access to what they promise will be a legitimate business opportunity.
Hacking free money is a way to make more cash, fund your financial goals, or help you pay off debt. There are lots of ways that people hack their finances and use cash back apps for some extra income.
Other options include signing up for bank bonuses or credit card bonuses.
Honestly, real free money hacks are more likely to be scams. So, beware when searching online.
Money Hacks in the Kitchen
You can save the most money by looking at what you eat.
Typically, people waste over 25% of their grocery budget and throw out food. Would you willingly throw out $250 a month? Probably not.
So, learn how to stretch your money for food.
44. Start meal planning
Meal planning is a money-saving strategy that can help in the long run. It’s also important to eat healthily and reduce food waste when meal planning.
But planning ahead will help save on the grocery budget, and it’s not too late to start now.
Start meal planning by deciding what you want to eat for each day. Then, make a list.
45. Say no to prepackaged foods
Packing your lunch for work or school can be time-consuming, especially if you have a family.
Some people prefer to buy prepackaged foods because they save time, but this is not always the best option.
A better choice is to make your own food at home and pack it for lunch, which you can then eat in peace without worrying about what other people might be saying about the food you packed.
46. Eat at home
Eating at home is a way to save money. It may be uncomfortable for those who do not enjoy cooking as it requires extra effort and time.
Instead of getting food at restaurants, consider cooking your favorite meals at home.
You can save money and time by eating the same meal over and over again.
Learn about the frugal home must haves.
47. Grow your own herbs and food
The most common methods of gardening include container gardening, hydroponics, and both indoor and outdoor gardening.
Many people are growing their own herbs and food for the satisfaction of being able to eat something that was grown with their hands.
48. Take your lunch
If you are interested in saving money, consider taking your lunch. This will save you up to $1,000 a year on work lunches and make it easier to meet the recommended daily intake of fruits and vegetables as well.
“Take your lunch” is an invitation to eat at home. There are many benefits of eating out less often, such as saving money and gaining more control over food choices.
Travel Hacks to Save Money
The following are travel hacks that can help you save money on your next trip.
Some of these hacks include traveling during weekdays, using public transportation, staying at hostels and Airbnb instead of hotels, and using a travel credit card.
49. Use foreign websites for lower prices abroad
Foreign websites are websites that have been created by people from other countries, and they sell products in the language of their country. These websites often offer lower prices on products than what is offered in the United States.
If you’re traveling abroad and need to find a place to stay, there are plenty of websites that can help. A few websites have deals on places where travelers often stay while they travel internationally.
50. Stay for free or get paid to house sit abroad
A house sitter is someone who looks after someone’s property for a certain amount of time in exchange for the promise of payment.
House sitting is typically offered by homeowners to travelers and others who are looking to stay in a particular location for an extended period of time.
The main types of house sitting include:
– full-time house sitters, who are responsible for all aspects of the house and who are typically paid a monthly salary,
– part-time house sitters, who may be responsible for taking care of one or more specific tasks such as gardening or handling the mail
51. Hide your search
To avoid being taken advantage of by airlines, it is best to open a new incognito or private window between searches.
This will make sure that you are not tricked into buying tickets that may be significantly more expensive than they need to be.
Airlines use cookies in your browser to make you believe the prices are going up and up.
Money App Hacks
Money app hacks are ways that people have figured out to make their money work for them in terms of saving and spending. These apps offer different features, such as budgeting, tracking your spending, and saving money.
If you want a simple way to save money, then any of these money apps are designed to find excessive spending.
52. Billshark
This is a legitimate way to save money on monthly bills. Billshark offers you the opportunity to save up to 25% each month (when compared with regular bill payments).
All of this can be done for you by BillShark team, and there are no fees involved!
Try Billshark for free!
53. Trim
Review your spending habits to find what you can cut out, like subscriptions.
Find other ways to save by looking for ways to reduce costly bank fees or getting a discount on your cell phone plan. By using Trim, you are saving money and improving your financial health.
Sign up with Trim now.
54. Truebill
Truebill can help you to track your spending, save money and get a clear picture of your financial life.
This helps you identify services that you are no longer using but continue to pay for. It will help save money by automatically negotiating prices with your service providers and receiving a refund of the money going to waste, which is free money.
Get started with Truebill.
Which Life Money Hacks Can You Start?
This is a lot to take in, but don’t worry.
Take the time to read through each suggestion and consider how you can implement it into your life.
The more hacks you try out, the closer you’ll get to a healthy financial mindset.
These are the life hacks to save money I have found to work for me and my family in order to reset our financial mindsets and grow our net worth.
Everyone will find their niche and what will work best for them.
Personally, you need to figure out how do I make more money. That will make the biggest impact the fastest.
What have you done with your money lately?
Know someone else that needs this, too? Then, please share!!
If you live in Indiana, there’s a very good chance you either got your home loan from Ruoff Mortgage, or at least considered them if you’re a homeowner.
After all, the company managed to originate nearly $3 billion in home loans last year, with roughly $2 billion coming from the Hoosier State alone.
They’ve even got an IndyCar with Ruoff Mortgage plastered along the front and sides of the vehicle, and the naming rights to the Ruoff Music Center, the largest outdoor music venue in Indianapolis.
So it’s clear they’re laser-focused on a certain region of the country, as opposed to trying to tackle the nation as a whole.
This has proven to be a successful model as they are now one of the top mortgage lenders in the nation, and #1 in Indiana.
You may also want to check out First Internet Bank of Indiana if you live in the Hoosier State.
Ruoff Mortgage Fast Facts
Independent direct-to-consumer mortgage lender
Founded in 1984, headquartered in Fort Wayne, Indiana
Employ nearly 1,000 workers across 70+ branches
Ranked the #1 mortgage lender in Indiana
Now the “Official Mortgage Partner of NASCAR”
If you’re wondering where they got their name from, they were originally known as the Dave Ruoff Mortgage Co., after founder David Ruoff.
They later changed the company name to Ruoff Mortgage, and today employ around 1,000 employees across some 70 branches.
As noted, they are highly-concentrated in the Midwest, with another $500 million in volume coming from nearby Ohio and Michigan, leaving a small amount of business scattered across remaining states.
They are also big on home purchase lending, with such loans accounting for nearly 75% of overall volume.
The remainder came from refinance loans, including rate and term and cash out loans.
Ruoff Mortgage also operates two sister companies, Centurion Land Title (title insurance) and Accucomp Appraisal Services (home appraisals).
At the moment, they are licensed in 46 states and D.C., with Alaska, Hawaii, Nevada, and New York the exceptions.
The company is big on partnerships, and has 50+ at last glance, including NASCAR, the Indianapolis Colts, Andretti Autosport, the Cincinnati Reds, and the Columbus Blue Jackets.
Their latest venture is signing on to become MLS club Charlotte FC’s Official Mortgage Company.
How to Apply for a Home Loan with Ruoff Mortgage
They offer a digital mortgage experience known as Loan Butler
Allows you to apply for a home loan via smartphone, tablet, or computer
You can order a credit report, digitally verify income/employment, and upload documents
Those purchasing a home can also generate a pre-approval letter on the fly in 10 minutes
Ruoff Mortgage offers a digital mortgage solution known as “Loan Butler,” which lets you complete most of the loan process from your smartphone, tablet, or desktop computer.
You’re able to initiate a credit check on your own to view your credit report and credit scores, digitally verify assets, income and employment, upload documents securely, and eSign disclosures.
Once your loan is submitted, you’ll be able to log in to the loan portal to check loan status, see so-called milestone updates, and/or get in touch with your loan officer.
In terms of selecting a loan officer, they have a directory on their website that allows you to search by name or location.
So you can find someone nearby, or check out individual reviews first, then make contact with the loan officer of your choice.
Those who just want to get started can simply fill out a short contact form on their website, at which point someone will reach out to help you begin the application process.
You can also call or email them at any point if you have questions or need more hands-on assistance.
They also say they’re fast, with the average loan going from submission to clear-to-close in just 17 days.
Lastly, they claim you’ll only spend about 10 minutes at the closing table when it comes time to fund your loan thanks to Ruoff’s Digital Closing Experience.
All in all, they appear to offer the latest technology along with experienced loan officers who can provide pricing and guide you through the loan process.
Loan Programs Offered by Ruoff Mortgage
Home purchase loans
New construction loans
Renovation loans
Refinance loans (rate and term, cash out, streamline)
Conventional loans backed by Fannie Mae and Freddie Mac
Government-backed loans: FHA/USDA/VA
Jumbo home loans that exceed conforming limit
Fixed-rate and adjustable-rate mortgages with various loan terms
Ruoff Mortgage offers all the major home loan types you could ask for, including home purchase loans, home construction loans, home renovation loans, and refinance loans.
They’re available on all property and occupancy types, including single-family homes, condos/townhomes, multi-unit properties, and primary, vacation, or investment properties.
So whether you’re buying a fixer-upper or refinancing an existing home loan, they should have you covered.
When it comes to renovation loans, they offer Fannie Mae HomeStyle, FHA 203(k), or a VA loan option.
If refinancing, you can do a simple rate and term refinance, or pull equity via a cash out refinance. It’s also possible to apply for a streamline refinance, such as an IRRRL.
They offer conventional loans backed by Fannie/Freddie, government-backed loans such as FHA loans, USDA loans, and VA loans, and jumbo home loans for loan amounts above the conforming limit.
In terms of loan type, you can get a fixed-rate mortgage with a 15- or 30-year term, or an adjustable-rate mortgage such as a 5/1 ARM or 7/1 ARM.
Ruoff Mortgage Rates
One slight negative to Ruoff Mortgage is the fact that they do not publicize their mortgage rates, so we’re in the dark when it comes to loan pricing.
The same goes for lender fees, which don’t appear on their website. It’s unclear what they charge, such as an application fee or loan origination fee.
As such, it’s recommended that you speak to a loan officer before applying to get loan pricing, then if you like what you hear, you can move forward.
But don’t forget to compare their interest rates and fees to those of competitors as well to ensure they are favorable.
Remember, you could be paying down this loan for the next 30 years, so put in the time to shop around!
Ruoff Mortgage Reviews
On Zillow, they have a very impressive 4.98-star rating from nearly 700 customer reviews, which is basically perfection.
After scanning their reviews, many indicated both the interest rate and closing costs were lower than expected, which is a good sign pricing-wise.
On LendingTree, they have a perfect 5-star rating, though it’s based on just seven reviews, so not a great sample size. They also boast a 100% recommend rating.
The company also notes that they’ve got a 98.2% customer satisfaction score according to Customerville.
Their only questionable reviews come via Google, where they have a 3.9-star rating from 20 reviews, thanks to a mix of 5-star and 1-star reviews.
Ruoff Mortgage is a Better Business Bureau accredited, and has been since 1986. They currently enjoy an ‘A+’ rating.
In summary, they appear to be well-liked, offer lots of different loan options, and seem to offer a fast digital mortgage experience. If pricing is also on point, they could be a suitable choice for your home loan needs.
Ruoff Mortgage Pros and Cons
The Good
Offer a digital mortgage experience
Apply from any device or use their free smartphone app
Can close fast: average 17 days clear-to-close
Mostly excellent customer reviews
A+ BBB rating, accredited company
Lots of loan programs to choose from
Mortgage calculators and mortgage glossary on site
Getting your hands on a free copy of your credit report and checking it for errors is one of the easiest ways to help your financial health. Correcting even a small mistake can make a huge difference to your score. A higher score means lower interest rates, insurance quotes, and can even help you land some types of jobs. And it’s never been easier to get a copy of your free credit report.
AnnualCreditReport.com is a government-approved site that enables most people to gain access to their reports within minutes. Under law, you have the right to obtain a free credit report from each of the three major credit bureaus once every twelve months. Courtney and I stagger our requests so that we are able to access a different bureau every four months.
Warning: There are many scam sites that try to rip-off AnnualCreditReport.com. Stay away from the cheesy commercials and catchy jingles. AnnualCreditReport.com is safe, approved, and regulated.
Ralph writes:
I’d like to know how to get a free copy of my credit report from the agencies.
A recent federal law gives consumers access to their credit reports; however, it costs extra to obtain your credit score. Your credit score is not an actual component of your credit report.
The Fair Credit Reporting Act (FCRA) requires each of the nationwide consumer reporting companies — Equifax, Experian, and TransUnion — to provide you with a free copy of your credit report, at your request, once every 12 months.
There is never a need to go through any other agency to obtain your credit report. This is an official, government-approved site. If you’d like, you can obtain reports from all three credit reporting agencies at once. Or, you can stagger your requests, possibly requesting one report every four months from a different agency. There are three ways to obtain your credit report:
You will need to provide some basic information, including your social security number, and you may need to provide some personal financial information. If you plan to check your report online, be wary of impostor sites. Be absolutely certain that you have reached AnnualCreditReport.com.
It’s important to obtain a copy of your credit report at regular intervals. The credit reporting agencies are not infallible, and neither are your creditors. People make mistakes, and mistakes on your credit report can cost you money. If you suspect an error, read how to dispute credit report errors.
When you request your free credit report, you’ll also be given a chance to purchase your credit score for about $8. Your credit score is a single number that serves as a snapshot for your overall creditworthiness, a sort of summary of your entire credit report. To learn how your credit score is computed, read my anatomy of a credit score.
How to Obtain Your Free Credit Report
I don’t think people realize just how simple it can be to check your report! Below, I’ve taken step-by-step screen shots of each leg of the process:
On the homepage, all you need to do is select your state from the dropdown list and press the red “Request Report” button.
Next, enter the required information (marked with a red *).
I recommend checking the box (I’ve highlighted with the red arrow) to hide your social security number should you print out the report.
Enter in the security code and select “Continue”.
On this page you can select the bureau (or bureaus) you’d like to get your credit report from.
You can view all at once, but you’ll have to wait another full 12 months before re-visiting the same bureau. (In other words, if you pull all three at the same time, you can’t check any of them for free for an entire year.)
Courtney and I stagger our request and only pull one every four months.
Click “Next”.
This screen is just a confirmation that you’ll be visiting the specific site of the bureau you selected.
Click “Next”.
You are now asked to verify your identity on the specific site of the bureau.
This is Experian, although TransUnion and Equifax have similar confirmation screens.
Enter your information and press the red “SUBMIT”.
Experian would now like to make a quick buck.
Avoid the upsell, and click “Annual Credit Report” highlighted below.
Next is the Order Summary screen.
Verify the amount is $0.00 (Free).
Check the Terms & Conditions box. (If your name is J.D., you’ll want to read the whole damn thing before checking the box.)
Click the red “SUBMIT” button.
Lastly, you have one more confirmation screen before gaining access to the report.
Experian asks you four security questions regarding information on the file.
Answer the questions (some may very well be “NONE OF THE ABOVE”).
Click the red “CONTINUE” button.
Now you have access to your credit report!
Look over the Summary, Negative Items, Accounts in Good Standing, Requests, Personal Information, and Personal Statement tabs at the top.
Notice the “print your report” link I’ve highlighted in case you want to retain a copy.
As always, avoid the upsells to keep your access free!
Here is a real-life example of what identity theft looks like! There’s one negative item listed as “charged off”, but that was a fraudulent account. This is now the third time it’s appeared on Courtney’s report after being removed. Negative items feature a “Dispute this item” button that walks you through the dispute process.
This is an example of the “Requests for your credit history” tab. You can see there are two primary categories: one for “Requests viewed by others” (hard pulls) and one for “Requests viewed only by you” (soft pulls). In this example, a third party would not see any recent requests for use of credit, since there are none listed for that category.
Note: If you’ve already accessed your account in the last 12 months, you will be shown this screen when trying to log-in. (Of course, they are more than willing to sell you a report if you have a credit card!)
In the rare case you are denied access… If for one reason or another you are unable to obtain online access, you still have options for getting your free reports. You can:
Call 1-877-322-8228 to obtain a copy by phone; or
Complete the Annual Credit Report Request Form and mail it to: Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281.
FreeCreditReport.com vs. AnnualCreditReport.com
Mark Frauenfelder (founder of the awesome Boing Boing) has a piece at PC.com that asks: When is a free credit report not a free credit report? The answer, of course, is: When it comes from FreeCreditReport.com.
FreeCreditReport.com, which has raised the ire of many, does allow people to look at their credit reports free for seven days, but then automatically enrolls users into a $15/month credit monitoring service. This last fact is a problem. Frauenfelder writes:
I clicked on the large bright orange button that said “Get your Free Credit Report & Score!” and was presented with a form. I filled it out. I hesitated for a second when the site asked for my credit card number, which it stated was “required to establish your account,” but the site assured me that my “credit card will not be charged during the free trial period.” Having done this before (or so I thought), I went ahead and entered the information. A shopping cart receipt indicated that the total was $0.00.
I got my credit report, looked it over, and forgot about it. A week later I was looking at my checking account register online and I noticed a $14.95 charge from a company called CIC*Triple Advantage. I didn’t recall buying anything from a company with that name, so I entered “CIC*Triple Advantage” into Google. The search results made my eyes bug out of my head. This was the name of the billing entity for freecreditreport.com. The thousands of search results were full of words like “deceptive practices,” “scam,” “ripoff,” “unauthorized billing!” and “beware!” In fact, all the top results were either from people complaining that they’d been conned into signing up for a $14.95 monthly credit monitoring service without their permission, or they were about how to cancel the service.
Frauenfelder admits that it’s his fault for being duped, but still thinks FreeCreditReport.com is slimy. Read the rest of his story for other problems he has with the service.
Finally, on a lighter note, a post in the GRS forums pointed to this spoof commercial highlighting the problems with FreeCreditReport.com.
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Your Credit Report Card
Credit.comlaunched a free new online financial tool called Credit Report Card. This tool is designed to provide users with a quick snapshot of their credit reports. According to the site’s FAQ, “it breaks down your credit report into five simple-to-understand categories and gives you a letter grade for each one.”
Here are some things to know about Credit Report Card:
It’s absolutely free.
You can request a new report card every thirty days.
It draws its data from the TransUnion credit bureau.
Its data comes via a “soft pull” of your credit, so using it will not affect your credit score.
Curious, I signed up for Credit Report Card myself. Some GRS readers will be wary because the sign-up process requires that you submit your Social Security Number (which is needed to pull your credit report) and asks a couple of broad but personal questions. I felt comfortable with this, though, and created an account.
My overall credit “grade” is an A. I scored high in the areas where I knew my report was strong, and I scored a little lower in the areas where I knew it was weaker. (Though I do have a personal credit card now, I try to avoid credit when possible, so I don’t have as broad an “account mix” as I could.)
The bottom of the report contained a summary of the statistics used to produce the Credit Report Card. You can see that I spend about $1000 a month on my credit card, which I diligently pay in full. (This earns me about $10 a month because it’s a 1% cash back card.)
Each section of the Credit Report Card also contains a detailed explanation of how your grade was derived. These sections contain a couple of paragraphs each explaining how credit scores work and recommending actions you can take to improve your credit.
The Credit Report Card isn’t earth-shattering. It’s not a tool that’s going to revolutionize the way you deal with money. It is, however, a useful way to monitor your progress. I’ve added the site to my bookmarks, and I plan to check in every month or two when I’m doing my personal finances.
Get Your Free Credit Report
So what are you waiting for? If you’ve put this off in the past, schedule a time to get your free copy and review it for errors! Your credit score and your wallet will thank you.
Children can be incredibly expensive. It’s vital to plan for those new expenses in your household budget.
Once your children are born, there are important long-term safety nets you should implement (e.g. insurance, estate planning, etc)
Thankfully, there are numerous tax breaks available to parents to ease the financial burden of raising kids. Make sure you’re capturing those benefits.
My wife and I are at that stage of life where most of our close friends and family have multiple young children. And in the many conversations we have with those parents, I’ve realized a trend:
Most parents share similar financial questions and concerns.
So let’s provide the best financial tips for new parents.
Big Financial Changes for New Parents
Some financial best practices stay the same before or after children.
But there are many big changes. Let’s start with those.
Insurance Coverage
When you have kids, review your insurance policies to ensure you have adequate coverage. The two that stand out most to me are healthinsurance and life insurance.
Health insurance is important for your family’s well-being. Why?
It provides financial protection against the high costs of medical care, ensures access to necessary healthcare services, helps cover medical expenses and safeguards against unexpected illnesses or accidents that can otherwise result in significant financial burden.
If you can’t cover it with your bank account, you probably need insurance for it.
Life insurance matters because it protects your loved ones financially in case of your untimely death. Specifically, focus on term life insurance. Not whole insurance. Not indexed universal insurance. Term life insurance only! Because life insurance is not a substitute for proper investing (despite what TikTok grifters will tell you).
If you own a home or have a car, appropriate property and auto insurance coverage is also necessary.
Child-Raising and Childcare Costs
Children are expensive!
The Brookings Institute estimated that “the average middle-income family with two children will spend $310,605 to raise a child born in 2015 up to age 17.“
[Part of their estimate included 4% inflation per year. If we crunch the numbers, that’s the equivalent of $16,400 in 2023 dollars every year for 17 straight years]
We can break that down a bit more.
If you need outside childcare, the early years of parenting are likely to be the most financially strenuous. According to Ilumine, the average cost of childcare in the US is just shy of $15,000 per year, or $1,250 per month. And according to Zippia, about 58% of parents rely on childcare so they can continue to work.
Granted, childcare expenses tend to decrease or disappear once your children enter school. But for those first five years, yikes!! $15,000 per year is a huge expense!
Most households cannot lightly absorb such a change in spending. The average American family earns $100,000 per household, taking home $6,000 per month after taxes. $1200 per month on daycare is 20% of that take-home pay!
Education
Start planning for your child’s future education early on.
We wrote a complete breakdown of 529 plans a few years ago. 529 accounts are the gold standard for education savings due to their flexibility and tax advantages. Regular contributions to such accounts can help alleviate the financial burden of higher education expenses later on.
While Coverdell accounts are also education-focused tax-efficient accounts, they are generally suboptimal compared to 529 plans, and should only be used if you are fully maximizing a 529’s potential (e.g. hitting the maximum annual gift tax exclusion of $17,000)
Estate Planning
Consider creating or updating your estate plan once you have kids. Estate planning helps avoid potential conflicts and ensures that the parents’ wishes are followed.
For example, you’ll want to designate legal guardians for your minor children, ensuring they are cared for by trusted individuals if something were to happen to you.
You should also create or update your will to dictate how your assets (financial accounts, property, and personal belongings) should be distributed in case of your untimely death.
Additionally, you might look into setting up trusts to protect and manage assets for the benefit of the children until they reach a certain age or milestone.
Long-Term Financial Goals
You had goals before kids. You still have those goals. But your timelines might have shifted a few years.
It’s essential to set and keep long-term financial goals. This could include saving for retirement, buying a home, or achieving other milestones.
Start contributing to retirement accounts early, take advantage of employer-matched retirement plans, and consider consulting a financial advisor for guidance on long-term investment and planning strategies.
Children & Taxes
Whether you file your own taxes or work with an accountant, make sure you understand and are benefitting from the tax code. Parents typically pay much less in taxes than those without dependent children.
Child Tax Credit: The Child Tax Credit is a tax benefit that reduces the amount of tax owed for eligible parents. As of 2023, the credit is up to $2,000 per qualifying child under the age of 17. The credit is partially refundable, meaning that even if the credit exceeds your tax liability, you may be eligible for a refund.
Earned Income Tax Credit (EITC): The EITC is a refundable tax credit that benefits lower-income working parents (earned income under $59,187). The credit amount increases with the number of qualifying children, and eligibility is based on income and filing status.
Child and Dependent Care Credit: Are you paying for childcare? Parents who pay for childcare expenses in order to work or seek employment may qualify for the Child and Dependent Care Credit. This credit can help offset a portion of eligible childcare expenses, with a maximum credit of up to $3,000 for one child or $6,000 for two or more children.
Education-Related Tax Benefits: As children grow older, there are tax benefits available for education expenses, such as the American Opportunity Credit and the Lifetime Learning Credit. These credits can help offset the costs of higher education and certain qualifying educational expenses.
Long story short – if you’re a parent, you should be paying less tax. Make sure you’re taking advantage. Lord knows you’re paying for it in other places.
Financial Topics That Don’t Change (Much) After Kids
Certain financial priorities and habits shouldn’t change too much after having kids…
Budgeting
My budgeting rule is simple:
You can plan your expenses ahead of time.
You can track them after the fact.
You can do both.
But you can’t do neither.
Personally, I use the YNAB tool. I sit down ~twice per month to review, update, track, and plan ahead.
You can use this link to get 2 months of YNAB for free.
Budgeting is crucial, especially after adding massively expensive children to your family. It helps you track your income and expenses, ensuring you can meet your family’s needs and save for the future. Identify your essential expenses, such as housing, utilities, food, childcare, etc. Here are some ideas for how many budget categories you should have.
Kelly and I are currently moving to a bigger house and talking about having kids. You better believe planning our budget is a huge part of the conversation.
Emergency Fund
While the size of your emergency fund might change after kids, the need for an emergency fund is ever-present.
I’ve written here before…life throws you bitter curveballs. You need to be financially prepared to handle them.
How big should your emergency fund be? Typically in the range of 3-12 months worth of living expenses. The range is all a function of “how re-hireable are you if you lost your job?” If your expertise is in high demand, a 3-month emergency fund might be sufficient. But if you’d rather take your time with an exhaustive job search, you might need a 12-month emergency fund to make ends meet.
This emergency fund money should sit in a bank account, ideally something like a high-yield savings account. You should not invest your emergency fund – here’s why.
Debt Management
Debt can be a silent financial killer. No, Dave Ramsey, it’s not all bad. But you should certainly avoid it if you can…especially if you have little rugrats running around to distract you from paying it off.
Prioritize paying off high-interest debts such as credit card debt or personal loans. Don’t take on unnecessary debt. Establish a plan to become debt-free over time.
The best medicine is prevention. The second-best is decisive action.
Unique Financial Topics Related to Kids
And then there are some unique financial topics that some parents might face.
Special Needs Planning
Parents of children with special needs should consider financial planning specific to their circumstances.
This might include certain government benefits, setting up special needs trusts, and ensuring long-term care and support for their child’s unique needs.
Thankfully, there are fiduciary financial planners who specialize and focus on this very topic.
Digital Management and Identity Protection
In today’s digital age, parents should consider their children’s digital assets, including online accounts, social media profiles, and digital files. As part of estate planning, designating someone to manage or have access to these assets in case of incapacity or death is important to protect and preserve them.
That said, children can be targets of identity theft. Parents should take steps to safeguard their children’s personal information and be vigilant about potential fraud or misuse of their identities.
Other Investing Accounts
We already covered 529 plans. But there are other potential investment opportunities for children that you might want to consider.
Custodial Accounts (UGMA/UTMA): These accounts allow parents to invest directly on behalf of their children, typically with small tax advantages (they are taxed at the child’s tax rate).
Once the children reach their “age of majority” (which is 18 in most states), the children gain full custody of the accounts. For this reason, custodial accounts should be used with caution. It’s pretty easy for $40,000 of UGMA savings to turn into a new Jeep Wrangler.
Roth IRAs for Kids: If a child has earned income, they may be eligible to contribute to a Roth IRA.
Roth IRAs are awesome. Contributions are made with after-tax money but grow tax-free, and qualified withdrawals in retirement are tax-free. Roths are a powerful tool for long-term savings and investing for a child’s future.
But let’s go back: to qualify for a Roth IRA, your children need earned income, and need to be filing taxes on that income. Odd jobs like mowing lawns and babysitting do qualify (as long as the income is reported). And for teens, official W2 summer jobs also qualify.
But kids don’t want to invest! How boring! That’s why generous, forward-thinking parents should consider the following “loop hole”:
Jonny earns $4000 as a lifeguard over the summer.
Let Jonny keep his $4000 for his own spending needs (fun, college savings, whatever…)
The generous parents contribute $4000 to Jonny’s Roth IRA. As long as Jonny reported his income, there’s nothing wrong with this solution.
By the time Jonny is done with college at 22, he might already have $20,000+ of contributions in his Roth IRA. It’s not inconceivable that that amount alone could grow to $300,000+ of tax-free money by the time Jonny retires (7% growth for 40 years).
What a gift!
Time To Graduate
Kids are great.
They’re also expensive.
Hopefully, these financial planning ideas for new parents will help you navigate your parental future!
Thank you for reading! If you enjoyed this article, join 6500+ subscribers who read my 2-minute weekly email, where I send you links to the smartest financial content I find online every week.
-Jesse
Want to learn more about The Best Interest’s back story? Read here.
If you prefer to listen, check out The Best Interest Podcast.
Children can be incredibly expensive. It’s vital to plan for those new expenses in your household budget.
Once your children are born, there are important long-term safety nets you should implement (e.g. insurance, estate planning, etc)
Thankfully, there are numerous tax breaks available to parents to ease the financial burden of raising kids. Make sure you’re capturing those benefits.
My wife and I are at that stage of life where most of our close friends and family have multiple young children. And in the many conversations we have with those parents, I’ve realized a trend:
Most parents share similar financial questions and concerns.
So let’s provide the best financial tips for new parents.
Big Financial Changes for New Parents
Some financial best practices stay the same before or after children.
But there are many big changes. Let’s start with those.
Insurance Coverage
When you have kids, review your insurance policies to ensure you have adequate coverage. The two that stand out most to me are healthinsurance and life insurance.
Health insurance is important for your family’s well-being. Why?
It provides financial protection against the high costs of medical care, ensures access to necessary healthcare services, helps cover medical expenses and safeguards against unexpected illnesses or accidents that can otherwise result in significant financial burden.
If you can’t cover it with your bank account, you probably need insurance for it.
Life insurance matters because it protects your loved ones financially in case of your untimely death. Specifically, focus on term life insurance. Not whole insurance. Not indexed universal insurance. Term life insurance only! Because life insurance is not a substitute for proper investing (despite what TikTok grifters will tell you).
If you own a home or have a car, appropriate property and auto insurance coverage is also necessary.
Child-Raising and Childcare Costs
Children are expensive!
The Brookings Institute estimated that “the average middle-income family with two children will spend $310,605 to raise a child born in 2015 up to age 17.“
[Part of their estimate included 4% inflation per year. If we crunch the numbers, that’s the equivalent of $16,400 in 2023 dollars every year for 17 straight years]
We can break that down a bit more.
If you need outside childcare, the early years of parenting are likely to be the most financially strenuous. According to Ilumine, the average cost of childcare in the US is just shy of $15,000 per year, or $1,250 per month. And according to Zippia, about 58% of parents rely on childcare so they can continue to work.
Granted, childcare expenses tend to decrease or disappear once your children enter school. But for those first five years, yikes!! $15,000 per year is a huge expense!
Most households cannot lightly absorb such a change in spending. The average American family earns $100,000 per household, taking home $6,000 per month after taxes. $1200 per month on daycare is 20% of that take-home pay!
Education
Start planning for your child’s future education early on.
We wrote a complete breakdown of 529 plans a few years ago. 529 accounts are the gold standard for education savings due to their flexibility and tax advantages. Regular contributions to such accounts can help alleviate the financial burden of higher education expenses later on.
While Coverdell accounts are also education-focused tax-efficient accounts, they are generally suboptimal compared to 529 plans, and should only be used if you are fully maximizing a 529’s potential (e.g. hitting the maximum annual gift tax exclusion of $17,000)
Estate Planning
Consider creating or updating your estate plan once you have kids. Estate planning helps avoid potential conflicts and ensures that the parents’ wishes are followed.
For example, you’ll want to designate legal guardians for your minor children, ensuring they are cared for by trusted individuals if something were to happen to you.
You should also create or update your will to dictate how your assets (financial accounts, property, and personal belongings) should be distributed in case of your untimely death.
Additionally, you might look into setting up trusts to protect and manage assets for the benefit of the children until they reach a certain age or milestone.
Long-Term Financial Goals
You had goals before kids. You still have those goals. But your timelines might have shifted a few years.
It’s essential to set and keep long-term financial goals. This could include saving for retirement, buying a home, or achieving other milestones.
Start contributing to retirement accounts early, take advantage of employer-matched retirement plans, and consider consulting a financial advisor for guidance on long-term investment and planning strategies.
Children & Taxes
Whether you file your own taxes or work with an accountant, make sure you understand and are benefitting from the tax code. Parents typically pay much less in taxes than those without dependent children.
Child Tax Credit: The Child Tax Credit is a tax benefit that reduces the amount of tax owed for eligible parents. As of 2023, the credit is up to $2,000 per qualifying child under the age of 17. The credit is partially refundable, meaning that even if the credit exceeds your tax liability, you may be eligible for a refund.
Earned Income Tax Credit (EITC): The EITC is a refundable tax credit that benefits lower-income working parents (earned income under $59,187). The credit amount increases with the number of qualifying children, and eligibility is based on income and filing status.
Child and Dependent Care Credit: Are you paying for childcare? Parents who pay for childcare expenses in order to work or seek employment may qualify for the Child and Dependent Care Credit. This credit can help offset a portion of eligible childcare expenses, with a maximum credit of up to $3,000 for one child or $6,000 for two or more children.
Education-Related Tax Benefits: As children grow older, there are tax benefits available for education expenses, such as the American Opportunity Credit and the Lifetime Learning Credit. These credits can help offset the costs of higher education and certain qualifying educational expenses.
Long story short – if you’re a parent, you should be paying less tax. Make sure you’re taking advantage. Lord knows you’re paying for it in other places.
Financial Topics That Don’t Change (Much) After Kids
Certain financial priorities and habits shouldn’t change too much after having kids…
Budgeting
My budgeting rule is simple:
You can plan your expenses ahead of time.
You can track them after the fact.
You can do both.
But you can’t do neither.
Personally, I use the YNAB tool. I sit down ~twice per month to review, update, track, and plan ahead.
You can use this link to get 2 months of YNAB for free.
Budgeting is crucial, especially after adding massively expensive children to your family. It helps you track your income and expenses, ensuring you can meet your family’s needs and save for the future. Identify your essential expenses, such as housing, utilities, food, childcare, etc. Here are some ideas for how many budget categories you should have.
Kelly and I are currently moving to a bigger house and talking about having kids. You better believe planning our budget is a huge part of the conversation.
Emergency Fund
While the size of your emergency fund might change after kids, the need for an emergency fund is ever-present.
I’ve written here before…life throws you bitter curveballs. You need to be financially prepared to handle them.
How big should your emergency fund be? Typically in the range of 3-12 months worth of living expenses. The range is all a function of “how re-hireable are you if you lost your job?” If your expertise is in high demand, a 3-month emergency fund might be sufficient. But if you’d rather take your time with an exhaustive job search, you might need a 12-month emergency fund to make ends meet.
This emergency fund money should sit in a bank account, ideally something like a high-yield savings account. You should not invest your emergency fund – here’s why.
Debt Management
Debt can be a silent financial killer. No, Dave Ramsey, it’s not all bad. But you should certainly avoid it if you can…especially if you have little rugrats running around to distract you from paying it off.
Prioritize paying off high-interest debts such as credit card debt or personal loans. Don’t take on unnecessary debt. Establish a plan to become debt-free over time.
The best medicine is prevention. The second-best is decisive action.
Unique Financial Topics Related to Kids
And then there are some unique financial topics that some parents might face.
Special Needs Planning
Parents of children with special needs should consider financial planning specific to their circumstances.
This might include certain government benefits, setting up special needs trusts, and ensuring long-term care and support for their child’s unique needs.
Thankfully, there are fiduciary financial planners who specialize and focus on this very topic.
Digital Management and Identity Protection
In today’s digital age, parents should consider their children’s digital assets, including online accounts, social media profiles, and digital files. As part of estate planning, designating someone to manage or have access to these assets in case of incapacity or death is important to protect and preserve them.
That said, children can be targets of identity theft. Parents should take steps to safeguard their children’s personal information and be vigilant about potential fraud or misuse of their identities.
Other Investing Accounts
We already covered 529 plans. But there are other potential investment opportunities for children that you might want to consider.
Custodial Accounts (UGMA/UTMA): These accounts allow parents to invest directly on behalf of their children, typically with small tax advantages (they are taxed at the child’s tax rate).
Once the children reach their “age of majority” (which is 18 in most states), the children gain full custody of the accounts. For this reason, custodial accounts should be used with caution. It’s pretty easy for $40,000 of UGMA savings to turn into a new Jeep Wrangler.
Roth IRAs for Kids: If a child has earned income, they may be eligible to contribute to a Roth IRA.
Roth IRAs are awesome. Contributions are made with after-tax money but grow tax-free, and qualified withdrawals in retirement are tax-free. Roths are a powerful tool for long-term savings and investing for a child’s future.
But let’s go back: to qualify for a Roth IRA, your children need earned income, and need to be filing taxes on that income. Odd jobs like mowing lawns and babysitting do qualify (as long as the income is reported). And for teens, official W2 summer jobs also qualify.
But kids don’t want to invest! How boring! That’s why generous, forward-thinking parents should consider the following “loop hole”:
Jonny earns $4000 as a lifeguard over the summer.
Let Jonny keep his $4000 for his own spending needs (fun, college savings, whatever…)
The generous parents contribute $4000 to Jonny’s Roth IRA. As long as Jonny reported his income, there’s nothing wrong with this solution.
By the time Jonny is done with college at 22, he might already have $20,000+ of contributions in his Roth IRA. It’s not inconceivable that that amount alone could grow to $300,000+ of tax-free money by the time Jonny retires (7% growth for 40 years).
What a gift!
Time To Graduate
Kids are great.
They’re also expensive.
Hopefully, these financial planning ideas for new parents will help you navigate your parental future!
Thank you for reading! If you enjoyed this article, join 6500+ subscribers who read my 2-minute weekly email, where I send you links to the smartest financial content I find online every week.
-Jesse
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If you prefer to listen, check out The Best Interest Podcast.
A positive retail sales report is signaling to investors that the U.S. economy is in solid shape. That’s causing more money to flow out of stocks and into bonds, pushing up Treasury yields and mortgage rates.
This upward momentum is something we expect to continue, which is why we’re recommending that borrowers take action on a purchase or refinance soon. Read on for more details.
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Market Outlook 5.14.18 from Total Mortgage on Vimeo.
Where are mortgage rates going?
Treasury yields rise after strong retail sales report
The big market moving news that’s making the rounds this morning is the positive readings in the retail sales report.
While the April numbers did come in at levels right around where analysts had projected, it was the revisions to the March report that really got investors riled up.
The already strong 0.6% rise in March got bumped up to 0.8%, along with upward revisions to all of the other readings as well.
Retail sales are an important measure of the U.S. economy as it reflects how willing consumers are to part ways with their spending money.
With a strong report like the one out today, it shows that the U.S. economy is in fairly good shape.
That signals to investors that they can take on slightly more risk, meaning they move more into stocks and out of safer assets like government bonds.
If we look at the yield on the 10-year Treasury note, which is the best market indicator of where mortgage rates are going, we can see that it’s up over six basis points today to 3.06%.
Mortgage rates typically move in the same direction as the 10-year yield so they’re experiencing some upward pressure today.
Rate/Float Recommendation
Locking now is likely the smart move
As expected, mortgage rates have begun to move higher once again. This is a trend that we expect to continue for the coming weeks and months as the Federal Reserve continues to tighten the nation’s benchmark interest rate.
If you’re considering buying a new home or refinancing your current mortgage rate, it definitely makes sense to take action sooner rather than later, as it’s far more likely rates will be higher than lower in a few months.
Learn what you can do to get the best interest rate possible.
Today’s economic data:
Retail Sales
Retail sales rose 0.3% month over month
Retail sales less autos rose 0.3% month over month
Retail sales less autos and gas rose 0.3% month over month
Empire State Mfg Survey
The Empire State Index hit a 20.1 for May. That’s up about six basis points from the April reading.
Business Inventories
Business inventories remained flat in March.
Housing Market Index
The housing market index ticked up to a 70 for May. That’s a strong reading that points towards optimism among the nation’s home builders.
Notable events this week:
Monday:
Tuesday:
Retail Sales
Empire State Mfg Survey
Business Inventories
Housing Market Index
Wednesday:
Housing Starts
Fedspeak
Industrial Production
Atlanta Fed Business Inflation Expectations
EIA Petroleum Status Report
Thursday:
Jobless Claims
Philadelphia Fed Business Outlook Survey
Bloomberg Consumer Comfort Index
Fedspeak
Friday:
*Terms and conditions apply.
Carter Wessman
Carter Wessman is originally from the charming town of Norfolk, Massachusetts. When he isn’t busy writing about mortgage related topics, you can find him playing table tennis, or jamming on his bass guitar.
Whenever I first started in the financial services industry when I was 24 none of my friends wanted to talk to me about life insurance. Most of them didn’t see the point and they had too many other financial goals on their mind. Buying new cars, buying big screen TVs, paying off debt.
Now that they are in their 30’s and their family has become more of a priority life insurance has taken on a more serious role. If you’re in the beginning stages of starting a family, life insurance in your 30’s is vital. There’s no more just worrying about you. Now you have to worry about a spouse and possibly young children.
If you feel like I feel turning 30 is not the end of the road. So it’s never too late to think about life insurance planning.
How Much Does Life Insurance Cost When You’re 30?
One of the common misconceptions when it comes to life insurance is people think it costs too much and that is not the case. Life insurance in your 30’s doesn’t cost that much either.
Just out of curiosity I ran a quote for $1 million for term life insurance coverage and the lowest rate is only $695 for the entire year.
So that’s $1 million of coverage to make sure that your family is taken care of and it costs you as little as $57.91 per month. That’s it and that’s for $1 million of coverage. If you’re a 30- year- old female, the cost is going to be that much less. The important thing is to not wait any longer for your term life insurance. The younger that you are, the cheaper your monthly premiums are going to be.
Additionally, you never know what tomorrow is going to bring (cheery, right?) if something were to happen to you, how would your family be able to recover? Not only will buying life insurance today let you know that your family will be covered, but it can also save you money in the long-run.
Life Insurance In Your 30’s Will Not Break You
The point is life insurance in your 30’s does not cost a lot. You will not break that bank by making sure that your family is taken care of should something happen to you. You can’t put a price tag on the peace of mind that this policy will bring to you. There is nothing like knowing that your family will have the funds they need if anything tragic were to happen to you.
If you’re not sure exactly how much you need check out my other post Term Life Insurance for a 30 Year Old, as I take you through my process where I decide how much of term life coverage I needed for my family.
If you want a quick answer on how much you should get, look at your total debt and how much you would leave behind. Add all of that up and that is a good starting point. Also, include your annual salary.
Saving Money on your Monthly Premiums
Nobody wants to spend more money than they have to, especially when it comes to life insurance. There are a few ways that you can easily save money on your monthly premiums.
The first way is to use the company that you already have insurance plans with. If the company that you have your car insurance through also offers life insurance, you can probably get a “multi-policy” discount for purchasing your plan through them.
But don’t automatically go with the same company because you already have purchased an insurance product from them. Another way to ensure that you have the best rates possible is to shop around with several companies before you decide on one. Because each company is different, they are all going to look at applicants differently. Your rates could be significantly different depending on the insurance company.
Second, if you want to save money, it might be time to hit the gym. One of the biggest factors in determining your insurance rates (aside from age, which you, unfortunately, can’t change) is your health. After you apply for the insurance policy, the company will send out a nurse or paramedic to do a health exam. The results from the exam can save you hundreds of dollars, or cause your premiums to go through the roof.
A healthy diet, regular exercise, and quitting smoking are some of the best ways that you can save money on your insurance. Any applicant that is overweight or obese could expect their monthly premiums to double. If you’re a smoker, your premiums are going to be doubled or even tripled, regardless of the rest of your health. Before you apply for a life insurance policy, spend a couple months losing a few extra pounds and kicking the cigarettes. Your waistline and wallet with thank you.
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The Importance of Life Insurance
An adequate life insurance policy is one of the best things you can purchase for you and your family. Every year we hear stories of families that lost a loved one unexpectedly. On top of all of the emotional strain they are feeling, they are left with thousands of dollars of debt because of a mortgage payment, student loans, credit card bills, and funeral expenses that they can’t pay for.
Life insurance provides a safety net for your family that you hope to never use. Most people put off life insurance because they don’t want to think about their own death, but that is one of the worst mistakes that you can make.
A recent Zillow survey of housing experts found that rising mortgage rates and their impact on affordability would “be the most significant force driving the 2017 housing market.”
The prospect of rising rates beat out a lack of inventory, shifting household demographics, policy moves, and slow income growth coupled with rising home prices.
At the same time, the experts seemed to agree that 30-year fixed mortgage rates would need to rise to 5.65% before they actually “significantly” impacted home value growth. To be fair, some said 5% or lower could have an impact as well.
Another Zillow survey from a week ago that polled home buyers about their biggest concerns found rising mortgage rates to be a top factor, more so than saving for a down payment. In 2015, down payment beat out rates.
The 30-year fixed currently sits at around 4%, and because of its recent rise, along with rapidly appreciating home prices, mortgage payments are now the highest they’ve been since 2010.
But are rising mortgage rates really our biggest concern?
Rising Rates Don’t Impact Payments All That Much
While mortgage rate movement captures headlines
The math is often less exciting
A big rate change may only result in a small difference in payment
That is equal or similar to your cable bill
I’ve mentioned this before because I think mortgage rates always get the headline, but down payments and other costs are often ignored, or simply not interesting enough to talk about.
Let’s look at a $200,000 loan amount at varying interest rates to illustrate.
As noted, the 30-year fixed is hovering around 4%, maybe a tick higher. A $200,000 mortgage, which is above the national average, would cost just $954.83 in terms of principal and interest.
If that rate increases a full percentage point to 5%, a level we haven’t seen since early 2010, the monthly payment increases just $118.81.
Yes, it’s ~$119 more expensive than it was at 4%, but it’s only $119. When we’re talking about a huge home purchase, $119 shouldn’t make or break you. It’s probably less than what most people pay for cable, or their wireless bill.
If you don’t have an amount well above that set aside for ancillary expenses, maintenance, upkeep, etc., you might be overextending yourself.
At 6%, the monthly payment is $244.27 more expensive than the payment at the 4% rate. But, and this is a big but, mortgage rates would have to increase a full 50% percent from current levels for that to happen.
Again, $250 is real money, but it’s not a giant sum of money when we’re talking about a major home purchase.
If we consider the national average home price of $195,300, we’re talking a $99 monthly payment increase when rates rise from 4% to 5%. That’s less than $100, even if rates reach levels not seen in seven years.
Yes, these monthly payment increases will be felt more at higher price points, with LA home buyers paying an extra $283 per month and SF buyers forking over $396 more each month. But in relative dollars (and income) it’s not as bad as it sounds.
If rates increased to 4.5%, only four of the nation’s largest 35 metros would see mortgage payments rise more than $100. If rates increased to 5%, just 19 of the largest 35 metros would see $100+ monthly payment increases.
Amazingly, many people have indicated that they would plain give up if mortgage rates increased just 1%.
My Guess Is People Can Absorb the Higher Monthly Payment, not the Higher Down Payment
The bigger concern
Is coming up with a larger down payment
Seeing that prospective home buyers can barely muster 3% down
Even if they have no problem with the actual monthly housing payment
There is perhaps a more worrisome issue. That darn down payment. Oh, and property taxes and homeowners insurance, which also get more expensive with a higher home price.
Let’s focus on the down payment though. If the homeowner in our above scenario put down 20%, the purchase price would be $250,000.
Imagine the cost if those same homes rise to $300,000. The down payment requirement jumps to $60,000, a $10,000 increase over the prior amount needed. Even a $275,000 purchase price requires another $5,000 upfront.
If you’ve ever read a report about how much Americans set aside in savings, you’d know that coming up with an additional $10,000 (or even $5k) would be a big ask, if not an impossible one.
There’s a good chance it would force the buyer to consider a lesser down payment, and thereby get hit with mortgage insurance and/or a higher interest rate to boot. Maybe they could get a piggyback second, but they’d definitely be burdened more than if interest rates simply rose to 5%. Or even 6%.
Yes, if rates and home prices rise in tandem, which is certainly possible, it’ll hurt even more. But it seems the focus is always on interest rates. If a buyer can’t absorb another $100 to $200 a month in housing payment, you have to wonder if they should be buying the home to begin with.
USA Today has just published what might be the most irresponsible piece of financial journalism I’ve seen in the past five years of writing Get Rich Slowly. It embodies everything that’s wrong with the popular perception of stock-market investing.
Author Adam Shell touts a hot trading trend: Stocks jump on the first day of the month. Shell writes:
Stock investors looking for a trading pattern that all but guarantees a profit need look no further than the first trading day of a new month.
Everyone knows stocks trade in recurring seasonal patterns, with the best gains coming in the three-month period from November thru January. Then there’s the annual Santa Claus rally at year-end. Not to mention the January Effect, where small-fry stocks post fatter returns than big-company stocks in the first month of the new year.
But one of the biggest winning trades in 2010 has been Day 1 of a new month.
There are so many things wrong here. For example:
There’s the notion that investing is all about timing the market, about finding “hot” times to get in and out.
The second paragraph includes not only the “everyone knows” bit (I would never allow a staff writer or guest author to say “everyone knows” about anything on this blog, especially for something like this), but also the list of patterns, the last two of which are actually contained in the first!
How does one buy on the last day of the month and sell on the first without losing a small fortune in trading fees? And what exactly do you buy? An index fund? Specific stocks?
Not to mention the author used the word “thru”…and the editor let it thru.
The sort of “investing” promoted in this article isn’t investing at all — it’s gambling. I know plenty of people (including me!) who have lost money trying to find silly “get rich quick” shortcuts like this.
Tangent: Plus I made the mistake of reading the comments on this article. Want to know why comments on Get Rich Slowly are moderated? Look no further than the discussions at USA Today, where the worst in public discourse is on constant display.
Because any fool with a spreadsheet can go hunting for meaningless patterns in stock market data, I decided to be that fool. I downloaded all of the data for 2010, and I ran my own analysis. Guess what? The first trading day of the month isn’t the only day that boasts just two losses in 2010.
The 8th trading day of the month has nine gains out of eleven! That must mean something! (And working backward, the 15th-to-last trading day of each month also has nine gains out of eleven.) But would you ever make it a rule to invest on the 8th trading day (or 15th-to-last trading day) of the month? Of course not.
If you want to avoid losses, though, you’d better watch out for the 10th and the 16th trading days of each month. They’ve only posted gains three out of eleven times in 2010. (Both the last and 2nd-to-last trading days of the month do as poorly.) But again, would you actually use this info for investing purposes? I doubt it.
In reality, anyone with enough time can go searching for patterns in past stock-market data. Lots of people have done so. But nobody I know has ever found a pattern that works going forward — except for buying the entire market and waiting a few decades.
Note: This whole story reminds of the film Pi, which is about a math whiz who goes crazy trying to find patterns in the stock market. (It’s a strange movie, but the soundtrack is great music to program computers by…)
Sarcasm aside, I’m not denying that the first trading day of the month has produced the biggest gains in 2010. (The Dow Jones Industrial Average has gained an average of 82.9 points on the first day of the month; there’s only one other trading day averaging over 44 points.) In fact, Shell points out this is an ongoing pattern:
The 2011 edition of the Stock Trader’s Almanac notes that in the 13-year period ended May 2010, the Dow “gained more points on the first trading days of all months than all the other days combined.”
But this isn’t an investment strategy. It’s gambling, pure and simple, and for USA Today to run this article as anything other than entertainment is irresponsible.