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May 18, 2022

8 Risky Jobs That Pay Big Bucks

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Often with dangerous jobs, the pay doesn’t come close to compensating for the risk. In fact, plenty of perilous jobs pay paltry sums compared to other options. Take fishermen and loggers. They can expect median salaries of under $35,000 a year, $23,000 less than the mean for all workers. Yet the fatality rate for fishermen is nearly 39 times the rate for all occupations, the highest of any profession, in fact. Loggers, at nearly 28 times the overall fatality rate, rank second.

The COVID-19 pandemic shook up the risk scenario in the workplace. Overall, workplace injuries and illnesses were down 5.7% in 2020, compared to the previous year. But a closer look at the numbers reveals that while injuries dropped significantly, illnesses went way up.

The pandemic also made a new group of low-paying jobs among the riskiest in the nation. Nursing assistants had the highest number of days of any profession away from work in 2020, the most recent year available, according to the Bureau of Labor Statistics. They had 1,024 days away from work per 10,000 workers in 2020, an increase of 14 times the rate in 2019. Yet nursing assistants make a mean wage of just over $30,000.

Going back the last few years before the pandemic, there were generally between 10,000 and 11,000 respiratory illnesses among U.S. workers each year. In 2020, however, there were nearly 429,000. Conversely, the days away from work decreased slightly for heavy and tractor-trailer truck drivers, whose mean wage was just over $50,000, between 2019 and 2020.

As perilous as work has become for many during the pandemic, fewer people were injured on the job in 2020 than in any year since 2013, according to the most recent data from the Bureau of Labor Statistics. Still, those data showed an American worker died every 111 minutes from a job-related injury. The most common cause of death on the job was transportation-related incidents, which resulted in 1,778 deaths that year, more than 37% of all work-related deaths.

Not surprisingly, workers in jobs that involved transportation and moving material accounted for the biggest proportion of occupational deaths at a total of 2,258, accounting for more than 47% of the total work-related deaths in the U.S.

We believe that if you’re going to take a risky job, you should at least get compensated handsomely for it. So we crunched the numbers on injuries, fatalities and salaries to identify eight occupations offering paychecks that make up for the elevated risks by paying more than the national median of about $58,000. Top earners in many of these fields can enjoy six-figure salaries, in some cases even without college degrees. Plus, many of them won’t be replaced by technology, which spells job security.

Take a look at these risky jobs that pay well.

Data sources: All data provided by the U.S. Bureau of Labor Statistics, unless otherwise noted. Most statistics from 2020, unless otherwise indicated. That year, the fatality rate for all occupations was 3.4 deaths per 100,000 workers.. “Top pay” represents the annual salary of a worker in the 90th percentile of an occupation, unless otherwise noted. We used the most updated data provided by BLS. In some instances, that was as far back as 2019 or older. Also, in some instances, the bureau provided median salary information, while for other occupations, it provided average salary information.

1 of 8

Airline Pilot

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Number of workers: 42,770
Rate of injuries/illnesses: 34.3 (3.4 for all workers).
This represents a decrease of the 2019 rate of 61.8 per 100,000 FTEs
Median annual salary: $115,080
Top pay: $197,400*
Annual fatalities: 4

Flying may be safer than driving, with crashes exceedingly rare, but pilots still manage to get hurt. The most common injury to pilots is back strain, no doubt exacerbated by countless hours spent in flight decks. Still, the pay might well make the risks worthwhile. Annual median wages for airline pilots, copilots and flight engineers are the highest of all our risky jobs.

You can save yourself the cost of college by heading straight to flight school, though most airlines prefer to hire degree-holders. You’ll need the edge. Competition for openings can be fierce, given industry consolidation and the job market’s overall weakness. You’ll also have to clock the flight hours necessary to even apply for an airline job. The Federal Aviation Administration requires applicants for pilot and first officer positions to have a minimum of 1,500 hours of total flight time.

But if you rack up enough experience and airborne hours, annual pay with the major airlines can soar to $200,000 or more, according to AirlinePilotCentral.com. Similarly plump salaries can be had if you land an offer from one of the flying freight giants. FedEx and UPS pay their captains at least $212,000 and $233,000 a year, respectively, starting in just their second years. Bonus: no whiny passengers.

*According to Airline Pilot Central, United offers its 12th year captains of Boeing 777 planes the highest minimum annual salary of all the legacy airlines.

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Private Detective

Photo of a man in sunglasses behind the wheel of a car holding a camera

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Number of workers: 33,700
Rate of injuries/illnesses: 122.6 per 10,000 workers
Median workdays missed due to injury/illness: 43
Mean annual salary: $60,970
Top pay: $98,070
Annual fatalities: 1

Digging up information can be pretty strenuous work. Gumshoes sustain most of their injuries in car accidents and physical altercations. But even those tallies are relatively low, so the above-average pay for private eyes may be worth the slightly elevated risk.

Most detective work does not have an education requirement, but the ability to learn on the job is a must, and previous related work experience is a plus. You’ll also need a license in most states; requirements vary. And if you specialize in certain fields, say insurance fraud or computer forensics, a related bachelor’s degree might be necessary for some corporate investigators.

That expertise can not only help you solve whodunits but also push up your pay. Investigative agencies, both large and small, are by far the biggest employers of detectives. Distant runner-ups are law firms and state and local governments.

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Registered Nurse

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Number of workers: 3 million
Rate of injuries/illnesses: 1023.8 per 10,000 workers
Median workdays missed due to injury/illness: 8
Median annual salary: $75,330
Top pay: $103,000
Annual fatalities: 12

Registered nurses were among those most affected by COVID; they endured a whopping 78,740 injuries and illnesses in 2020, an increase of more than 290% over 2019 when there were 20,150 injuries and illnesses among registered nurses, according to the Bureau of Labor Statistics. In 2020, the number of cases in which registered nurses had days away from work increased by 58,590 cases (290.8 percent) to 78,740 cases, according to the Bureau of Labor Statistics.

The states with the largest increase in cases among nurses who had days away from work were Michigan, where cases rose more than 1,000% and Iowa, which had an increase of more than 900%. .

Typical wages about 88% above the national median might help compensate for the pain. California registered nurses earn a particularly comfortable wage, into six figures in nine West Coast metro areas.

You need a bachelor’s or associate’s degree in nursing or a diploma from an accredited nursing program in order to become an RN. If you extend your education to a master’s degree, you can earn even more; median annual pay for nurse practitioners is nearly $90,000, and top earners make $120,500 a year.

According to Indeed.com, the average base salary for a registered nurse is nearly $89,000 as of May 2022. That ranges from $80,266 for nurses with less than a year of experience to $104,907 for those with more than 10 years of experience. New York is the highest paying city where registered nurses earn an average of nearly $103,000 a year. But Iindeed says just 62% of registered nurses in the U.S. think their salaries are enough for the cost of living in their area.

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Professional Athlete

Photo of a baseball, football and basketball player

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Number of workers: 16,700
Rate of injuries/illnesses: 1,542.1 per 10,000 workers
Median workdays missed due to injury/illness: 10
Median annual salary: $77,300
Top pay: $107.5 million
Annual fatalities: 10

When your job is to exercise and physically compete on a regular basis, your body is bound to get a little run down. More than half of the injuries reported by athletes are sprains, strains and tears. But what’s becoming a little worse for wear when you get to play the game you love for a living?

The above-average pay doesn’t hurt, either. It would behoove players to save that extra income. Athletic careers offer little stability and are often short-lived. According to Indeed.com, the average professional athlete base salary as of April 20222 was $115,429, including $222,275 for the NFL. The highest paying city for professional athletes was New York, where the average salary is $133,762.

According to the job website Ladders, the top-paid American athlete is Dallas Cowboys quarterback Dak Prescott who earns a jaw-dropping $107.5 million a year.

But just 45% of professional athletes in the U.S. report being satisfied that their salaries are enough for the cost of living in their area.

5 of 8

Police Officer

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Number of workers: 665,000
Rate of injuries/illnesses: 121.7 per 10,000 workers
Median workdays missed due to injury/illness: 15
Median annual salary: $64,610
Top pay: $102,530
Annual fatalities: 105

Police work is truly risky business. Exhibit A: The number of work-related deaths for cops is the greatest of all the occupations on this list. Still, the fatality rate is just 18.6 per 100,000 workers, about on par with taxi drivers.

If you don’t mind mixing it up with the occasional physical altercation or high-speed chase, paychecks 59% higher than the national median may be worth sustaining some sprains, strains and tears (the most common injuries for police officers). You can enter the police academy after graduating from high school or getting your GED, though many agencies require some college coursework or a college degree. But you have to be at least 21 years old to become an officer (younger recruits can be cadets and do clerical work until they’re of age). A college degree can help fatten your paycheck, however. A B.A. in criminal justice can push salaries into six figures, according to Payscale.

Indeed.com reports the average base salary for a U.S. police officer is $55,390. This ranges from $46,900 for officers with less than a year of experience to $76,650 for those with more than ten years of experience. The highest paying city is San Jose, California, where officers make an average of $131,000. According to Indeed, 53% of police officers report being satisfied that their salaries are enough for the cost of living in their area.

Note that while the Bureau of Labor Statistics data for wages for police officers refer to 2021, the most currently available injury and illness information dates to 2018.

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Railroad Conductor/Yardmaster

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Number of workers: 48,030
Rate of injuries/illnesses: 180 per 10,000 workers
Median workdays missed due to injury/illness: 22
Median annual salary: $63,960
Top pay: $82,460
Annual fatalities: 11 in 2019

Train-track tragedies are as uncommon as they are heartbreaking. Overall, railroad safety has improved dramatically over the past decade. Heading the crews of freight and passenger trains and rail yards, railroad conductors and yardmasters have the highest rates of injury of all rail transportation workers, but they have the potential to score the biggest paychecks, too. You need just a high school diploma or the equivalent to get started, and you have to be certified by the Federal Railroad Administration to become a conductor. Most employers require one to three months of on-the-job training. Amtrak and some freight companies offer their own training programs, while smaller railroads may send you to a central facility or community college to prep you for the job.

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Mining Machine Operator

Photo of a construction vehicle in a mine

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Number of workers: 14,740
Rate of injuries/illnesses: 248.0 per 10,000 workers
Median workdays missed due to injury/illness: 23 for surface mining, 46 for underground and 60 for continuous Median annual salary: $60,300
Top pay: $78,060
Annual fatalities: 5 for surface mining, 7 for underground

Not surprisingly, pumping the Earth for its resources can really suck the life out of you. Extraction workers, a broad category of workers who mine and drill for oil, gas, coal and the like, recorded a total of 92 deaths and 3,990 injuries in 2011. And while some extraction jobs offer scant compensation for such risks, pay for certain mining machine operators is more tempting.

Education requirements are minimal to get started (some jobs don’t even require a high school diploma). But if you go into mining with a college degree, you stand to earn a fatter paycheck and added safety as a mining engineer. Indeed says mining engineers, who inspect mining areas and design underground systems of entries, exits and tunnels, make an average national salary of more than $97,000 as of April 2022. Their job is also dangerous as they are often close to heavy machinery and are exposed to air pollution and in danger of being hurt in a cave-in.

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Electrician

Photo of a hand and a screwdriver working on wires

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Number of workers: 729,600 in 2020
Rate of injuries/illnesses: 122.2 per 10,000 workers
Median workdays missed due to injury/illness: 15
Median annual salary: $60,040
Top pay: $82,930
Annual fatalities: 68 in 2019

With high demand to plug in our various devices at home and work, electricians are practically guaranteed prosperous careers.

But this profession comes with its stumbling blocks — literally. Electricians’ injuries are most often caused by falls. That’s not surprising, considering they often spend lots of time at construction sites and on ladders. If you watch your step, you typically stand to enjoy paychecks 43% higher than the national median.

You can start your career as an electrician with a high school diploma (or the equivalent) and a paid four-year apprenticeship, which you can find through the U.S. Department of Labor. But having a Bachelor’s degree can help boost your income; according to Payscale, a college-educated electrician can earn up to about $93,000 a year. Most states also require you to be licensed.

According to Indeed.com, the average base salary for an electrician is about $56,800 as of May 2022.

Source: kiplinger.com

May 18, 2022

6 Birds That Make Great Apartment Pets

If you’re looking to add an animal to your apartment, consider birds as they’re great companions and affectionate pets.

When you think of getting your first pet, cats or dogs are the first species of animals that come to mind. But, have you ever considered a bird? Birds are popular pets as they’re friendly and affectionate yet they don’t take up too much space in your apartment.

Birds are great pets for apartment dwellers because they’re low maintenance while still being extremely affectionate with big personalities. Whether you want a few smaller birds or one large parrot, it’s important to discover which popular pet bird species is right for you.

Throughout this article, we’ll talk to you about all the different species and help you decide which is the friendliest pet bird species for you.

Welcome to the bird world

Are you new to pet ownership? Don’t fret. There are several bird species and they all make for wonderful pets. But before you go to the local pet store or aviary, you need to ask yourself a few questions to determine which pet is the best one for you.

Does your apartment complex allow birds?

Before bringing any type of animal into your apartment, you need to read your lease agreement and talk to your landlord about the pet policy. The first thing to find out is if your apartment allows pets, and specifically if they allow birds.

If your apartment is not pet-friendly, don’t sneak a pet into the apartment as there are serious negative consequences. Once you get the green light that your apartment is pet-friendly, then you can continue your search for the perfect pet.

Can you afford it?

As with any pet, you need to do some math to ensure that your budget can stretch to accommodate your first bird. In addition to purchasing the cage, which varies in price, you’ll need to calculate the cost of birdseed, fresh fruit and veggies, toys for mental stimulation, veterinary care, cleaning and grooming costs and additional money for unexpected costs that may arise.

Different species can cost different amounts, too. Owning a bird can add up, so make sure you can afford the care needed to take care of your little feathered creature.

How much time do you have to care for it?

While some birds are more low maintenance than others, all birds need some human attention every day to thrive. Ask yourself how much time you actually have each day to care for your new pet and give it the human interaction it deserves.

If you only have an hour each day to dedicate to your pet, consider a parakeet as they’re a low-maintenance bird. On the other hand, if you have ample amounts of time at home to care for and train your bird, you may consider a parrot species.

Do your research to understand the level of training, stimulation and care each different bird species needs to thrive.

Where is it coming from?

We don’t just mean which pet store is your bird coming from. Unfortunately, birds are illegally obtained and sold. In fact, some birds — like the African grey parrot — are on the verge of extinction from the illegal bird trade. African greys are intelligent birds that people love as pets, but they face extinction in their natural habitat due to illegal activities.

Responsible pet owners will ask the breeder where the bird came from to ensure they aren’t contributing to the illegal bird trade. Another great option is to adopt a bird from a shelter. That way, you’re saving a life and helping to give a shelter pet a friendly new home.

Is the species compatible with children and other pets?

Are you looking to add some playful birds to your house? Well, if you have children or other animals in the house, you need to make sure that your new chirpy addition is good with other animals, children or other birds.

Don’t bring a new bird into the apartment and expect it to get along well with others. Some birds are great with other species while some are better suited alone.

For example, if you have a cat, it’s probably not smart to add a bird to the mix. The cat may view it as lunch. Save yourself some tears and heartache and make sure that all family members, pets included, are compatible with your new friend.

Top 6 best pet birds

OK, so you’ve decided that you want a pet bird and want to bring one home. But, what are the best pet birds for you? Here are some different options to consider.

Pionus parrots

Blue and green
Medium size
~30-year life span

The Pionus parrot is part of the parrot family and is originally found in South America. This is a great species for families to own as the species isn’t prone to attaching to a single person, as other parrots sometimes do. This intelligent one is sure to charm you as it’s relatively quiet and reserved. This pet bird does need a lot of attention, otherwise, it can get moody and demanding.

If you’re looking for a great companion for the whole family, the Pionus parrot is a good choice to consider.

Cockatiels

Gray, white and yellow
Small size
~ 20-year life span

These little birds are some of the most popular pets for bird owners. They’re friendly, lovable and great for apartment dwellers. They love whistling and will likely serenade you throughout the day. Part of the parrot family, they do require attention and stimulation but are on the smaller side, so they won’t take up too much space in your apartment. They cost anywhere from $30 to $250 to purchase.

If you’re a new pet owner, experts recommend getting a female cockatiel as they aren’t as moody and possessive as their male counterparts. They love company so you can even consider getting two so they have each other. If you want two cockatiels, a male and a female will work well together. Keep in mind that if you only get one, they may require more attention from you. However, you’ll have the perfect companion on your shoulder.

Hyacinth macaws

Blue
Large size
~30+ year life span

Native to central South America, the hyacinth macaws are the larger cousins to something like the Pionus parrot. These beautiful birds are spectacular and full of personality. They love to play and be seen. The hyacinth macaw definitely needs attention from its pet owner.

The hyacinth macaw can live for at least 30 years or more and cost anywhere from $5,000 to $12,000 to purchase. They need a large cage that’s at least six feet, as they’re the largest parrot in the world.

If you’re experienced with birds and can give these gentle giants the proper care, then they do make great pets. But, if you’re looking for a friendly pet to start off with, this is not the right creature for you.

Scarlet macaws

Blue, red and green
Large size
30+ year life span

When you think of a parrot, you probably imagine a rainbow-colored animal that can talk like and mimic humans. The scarlet macaw is that large, glorious, rainbow-colored bird. While they can talk, they don’t mimic the voice and tone (that’s the African grey!) of their owner.

Scarlet macaws are fun birds as they’re friendly, affectionate and intelligent. However, they’re not low maintenance and require a lot of time and human attention. The scarlet macaw will form strong bonds with you if it lives alone, just like it would bond with others if it were in the wild. If you’re looking for a long-term companion, consider this creature.

Green-cheeked conures

Green
Small or medium
~20-year life span

This smaller species is a popular pet for families. They’re friendly birds that are affectionate and will dole out sweet gestures, like cuddling, when properly tamed. The green-cheeked conure will chatter but they’re good for apartment dwellers as they aren’t too noisy. These small birds cost anywhere from $150 t0 $300.

The green-cheeked conure is a playful, energetic and cuddly creature. While they demand attention, they just want love and if they live in positive environments, they’ll become your feathered best friend.

Amazon parrots

Green
Medium to large
40+ year life span

Like most parrots, the Amazon parrot requires attention, proper mental stimulation and care. These mischievous birds like attention but are a great family pet. If you have the time to commit to it, the Amazon parrot is a friendly pet bird species to consider. You can teach it basic things and bond with this gorgeous creature.

What’s the easiest bird to have as a pet?

One of the easiest birds to have as a pet is the budgie, also known as a parakeet. These cute creatures are friendly pet bird species who love attention, food and play. If you’re looking for a new pet that’s easy but will give you love, cuddles and companionship, the bird world often recommends starting with a budgie.

Budgies want human interaction and don’t do well completely isolated. While they’re pretty low maintenance, they still want to interact with their humans and will be extremely affectionate with pet owners who show them love.

If you’re looking for an easy pet bird, consider the budgie or parakeet.

The best bird to have as a pet

What’s the best bird to have in your apartment? Well, that depends on what you’re looking for. Birds, in general, need attention, proper care and love from their owners. If you want a low-maintenance pet, then a parakeet is the best pet bird for you. If you want a lifelong companion you can train, then the African grey is a great option.

We can’t tell you the best bird as that depends on you and your lifestyle. But, we can walk you through all of the basic pros and cons to help you determine the best one for you.

Here are some of the common pros and cons bird owners share. Consider these when determining which feathered creature to take home.

Pros of having a feathered friend

Animals bring joy and birds are no exception. These are some of the best benefits of having a feathered friend in your apartment.

They can learn basic commands

Talking parrots aren’t just found on pirate ships. If you take the time to train your bird, you can teach it easy commands and different words and it’ll talk to you! This is one of the most fun and memorable aspects of owning a bird. We’d like to see a talking Golden Retriever!

They’re affectionate pets

You might think that only cats or dogs cuddle with their human, but you’d be wrong. Birds are affectionate creatures who will cuddle you if you love them. Let them perch on your shoulder or arm and you’ll have a featured friend who loves you just as much as you love them.

They’re extremely sweet

All birds have personalities and most are very sweet. Birds want love and attention, but in return, they’ll love you back. Some will charm you with little chirps while others will speak to you. They’re popular pets because of how sweet they are.

Cons of having a feathered friend

As with any pet, there are parts of pet parenting that aren’t so glamorous. Here are some cons to know.

They’re incredibly noisy

We all know that birds tweet, but some are very loud, especially when ignored. If you live in a small apartment space next to other neighbors, your bird’s continual chirping may not appeal to everyone.

They’re expensive

While some smaller birds cost $50 to purchase, their larger cousins can cost upwards of $12,000. And that’s just for the bird itself! That doesn’t factor in food, toys, vet bills, training and other pet-related costs. Birds are expensive to purchase and maintain, compared to other pets.

They require proper care and space

You don’t just buy a bird and call it good. Birds need the right cage with enough room to spread their wings, the right space and the right care. If you can’t commit to the proper training and attention needed, which is hours a day, then this is not the right animal for you.

Becoming a pet bird owner

Are you sold that these extremely sweet, feathered creatures are right for you? Make sure you’ve done your research, checked your budget and found the bird that you can grow to love and form strong bonds with. We know they won’t disappoint with their sweet and affectionate cuddles and beautiful birdsongs.

Source: rent.com

May 18, 2022

Stock Market Today: Stocks Finish Lower as Traders Mull Recession Odds

The potential for the U.S. to slip into recession was the topic du jour Monday as stocks kicked off the week with a wobbly, uneven session.

Over the weekend, former Goldman Sachs chief Lloyd Blankfein told CBS’ Face the Nation that recession was “a very, very high risk factor.” That opinion was met by a number of other calls Monday morning.

Wells Fargo Investment Institute, for instance, says “our conviction is that the chances of an outright recession in 2022 remain low” but believes odds are growing that 2023 could see an economic contraction. UBS strategists say the chances are different depending on where you look – their global economists say “hard data” points to a sub-1% chance of recession over the next 12 months, but the yield curve implies 32% odds.

“There’s no crystal ball to predict what’s next, but historical trends can come into play here. With the [S&P 500] closing 15% below its weekly record, there’s only been two times in the past 60-plus years that the market didn’t fall into bear territory after a similar drop,” adds Chris Larkin, Managing Director of Trading at E*Trade. “This doesn’t mean it’s bound to happen, but there is room for potential downside.”

Larkin says to keep an eye on major retail earnings this week – which will kick off in earnest with Walmart’s Tuesday report – to get a pulse check on the American consumer.

Sign up for Kiplinger’s FREE Investing Weekly e-letter for stock, ETF and mutual fund recommendations, and other investing advice.

Monday itself was a fairly quiet affair. Exxon Mobil (XOM, +2.4%) and Chevron (CVX, +3.1%) were among a number of plays from the energy sector (+2.7%) that popped after U.S. crude oil futures jumped another 3.4% to $114.20 per barrel.

Twitter (TWTR, -8.2%) shares dropped after Tesla (TSLA, -5.9%) CEO Elon Musk spent the weekend questioning how much of Twitter’s traffic comes from bots. Wedbush analyst Daniel Ives said the move feels more like a “‘dog ate the homework’ excuse to bail on the Twitter deal or talk down a lower price.” TWTR stock has now given up all its gains since Musk announced his stake in the social platform.

The major indexes finished an up-and-down session with mostly weak results. The Dow Jones Industrial Average managed to eke out a marginal gain to 32,223, but the S&P 500 declined 0.4% to 4,008, while the Nasdaq Composite retreated 1.2% to 11,662.

Also worth noting: Warren Buffett’s Berkshire Hathaway will file its quarterly Form 13F soon. Check back here tonight as we examine what Buffett has been buying and selling.

Other news in the stock market today:

The small-cap Russell 2000 closed out the session with a 0.5% dip to 1,783.
Gold futures gained 0.3% to settle at $1,814 an ounce.
Bitcoin was off 1.6% to $29,551.92 (Bitcoin trades 24 hours a day; prices reported here are as of 4 p.m.)
JetBlue Airways (JBLU, -6.1%) ramped up its hostile takeover attempt of Spirit Airlines (SAVE, +13.5%) on Monday, urging SAVE shareholders to vote against a buyout offer from fellow low-cost air carrier Frontier Group Holdings (ULCC, +5.9%). JBLU last month offered to buy Spirit Airlines for $33 per share – a premium to the $21.50 per share ULCC offered in February – but SAVE’s board of directors rejected the bid citing concerns over regulatory approval. JBLU followed up in early May with an “enhanced superior proposal,” including paying a $200 million, or $1.80 per SAVE share, reverse break-up fee should regulators block the deal.
Warby Parker (WRBY) fell 5.3% after the eyeglass maker reported a loss of 30 cents per share in its first quarter. This was much wider than the per-share loss of 3 cents the company reported in the year-ago period and missed the consensus estimate for breakeven on a per-share basis. Revenue of $153.2 million also fell short of analysts’ expectations. WRBY did maintain its full-year revenue guidance of $650 million to $660 million. “We remain cautiously optimistic on shares as WRBY continues to show ability to grow the top line, open new stores, and is recession resistant as a lower cost option for non-discretionary spend,” says CFRA Research analyst Zachary Warring (Buy). “We see the company leveraging SG&A to become profitable in the second half of 2022.”

Check Out Europe’s Dividend Royalty

If you’re seeking out more stable opportunities amid an uncertain U.S. market … well, the rest of the world is admittedly looking pretty shaky, too. But that doesn’t mean there aren’t a few morsels worth a nibble.

BCA Research notes that while there’s negative news around the globe, “European benchmarks already discount a significant portion of the negative news.” And looking ahead, inflation there is expected to peak over the summer “as the commodity impulse is decelerating” – that should help stagflation fears recede and help European shares.

Graham Secker, Morgan Stanley’s chief European and U.K. equity strategist, chimes in that his firm remains “overweight [European] stocks offering a high and secure dividend yield.”

We’ve previously highlighted our favorite European dividend stocks, which on the whole tend to produce higher yields than their U.S. counterparts.

But we’d also like to shine the spotlight on Europe’s twist on an American income club: the Dividend Aristocrats. The S&P Europe 350 Dividend Aristocrats have somewhat different qualifications than their U.S. brethren, but in general, they’ve proven their ability to provide stable and growing dividends over time.

Read on as we look at the European Dividend Aristocrats.

Source: kiplinger.com

May 18, 2022

Understanding Usury Rates: What You Should Know

A usury rate is an interest rate that denotes the boundary between what is considered an acceptable rate and what is excessive. It’s important that consumers understand usury rates so they can protect themselves against predatory lending practices.

You definitely don’t want to be paying interest rates that are so high, you could wind up with a mountain of debt that endangers your financial future. So read on for a better understanding of what usury rates are, what the law says about usury, and how you can avoid paying too high interest rates.

What Are Usury Interest Rates?

What is a usury rate? Technically, a usury rate is the maximum interest rate that can be charged. Typically, these rates are determined by state law, not federal law. The practice of usury is charging an illegally high interest rate.

Let’s consider why states put these usury protections in place. By capping interest rates, the government is helping people avoid financial difficulties. Excessive interest rates can mean that consumers can’t pay off their debt, and sadly, it can snowball. Usury laws are particularly designed with predatory lending in mind, which typically occurs with payday and auto-title products. However, the laws also prohibit lenders from charging too high interest rates on lending products like personal loans.

Is There a Maximum Interest Rate for Credit Cards?

Have you ever wondered, “Is there a maximum interest rate that credit card issuers can charge?” The answer is yes. This is one way that governments try to prevent usury. As we mentioned, this interest rate cap is usually determined by state law. If, however, a credit card issuer or bank has branches nationwide, the state where its headquarters are designated will determine the state law that applies.

This means that scenarios are possible where you will pay more than the maximum rate mandated in your state. Here’s an example: if you live in a state where the maximum interest rate is 10%, but your lender is headquartered in a state that allows 15%, guess what? You can be assessed that 15% rate.

This is why it’s so important to carefully read a credit card or bank account agreement to make sure it’s crystal clear what interest rate you will be charged.

Real World Example of Usury Rates

How exactly does a usury rate work, you ask? Let’s take a look at a real world example of usury interest rates in action.

Every month in North Dakota, the North Dakota Department of Financial Institutions publishes what the usury rate for the upcoming month will be. Again, this usury rate is the maximum amount of interest that can be charged. This usury rate is 5.5% higher than the current cost of money. The current cost of money is represented by the average rate of interest payable in the U.S. Treasury Bills maturing within six months. However, the maximum allowable interest rate ceiling can’t surpass 7%, no matter what the current cost of money is. The North Dakota usury rate for the month of April 2022 was 7%.

Now, let’s say that someone named Ned in North Dakota is seeking a personal loan. Ned has a very low credit score and isn’t having much luck at local banks. A private lender could step forward and offer a loan at 17%, saying Ned is lucky to have access to funds at all given his credit score and what a poor risk he appears to be. That is over the usury rate, and would be an example of usury if Ned took the loan at that steep cost.

What Is Usury Law?

Usury laws are in place to stop lenders from charging too high of interest rates on lending products such as auto loans or personal loans. States have different laws and regulations that set usury interest rates on a state level. To whom usury laws apply can also vary on a state level.

For example, certain states have usury rate caps on how much finance companies (aka not banks) can charge consumers for small-value loans. Examples of these include payday and auto-title products.

How Do Usury Laws Vary From State to State?

As previously noted, usury rates are state-specific. The details of an interest rate cap and to whom these laws apply may vary. If you live in Massachusetts and your best friend is in Minnesota, it’s quite possible that you will have different usury rates and other legal guidelines.

What Is the Penalty for Violating Usury Laws?

Now, let’s look at what happens if someone extends credit at a too high rate. Remember our Ned in North Dakota example; what if he did borrow money at a rate 10% above the guideline? His lender could be in quite a bit of legal trouble. If a lender willfully receives interest in violation of the usury laws, they will be considered guilty of loan sharking. This charge is punishable by a fine (which could be returning interest plus a fee, for example) and/or imprisonment.

How Can I Tell if the Interest Rate on My Credit Card Is Illegal?

Maybe you’re shocked by how high your credit card’s interest rate is and wonder if it’s legal or not. Because the usury rate varies by state, it’s important for consumers to do some research on what the current usury rate is in their state. But, let’s remember that hitch we mentioned above: Your credit card issuer may be headquartered in a different state. You’ll need to see where that is, and check that location’s rate as well. Then, you can compare the interest rate listed in the account agreement to the current usury rate in the state where they are based. That will reveal if your rate is legal or not so much. Should you discover you’re paying too much, legal action is a possibility.

Is There Anything I Can Do About High Interest Rates?

Even if an interest rate is legal, it can still feel painfully high and make it a challenge to repay a loan. To help secure lower interest rates in the future, consumers can take steps to improve their credit score. The higher someone’s credit score is, the more likely they are to receive a lower interest rate. This can save them a considerable amount of money over the life of their loan (like a student loan). Having a good credit score in the 700s can make it easier to qualify for the best interest rates.

To improve a credit score, consumers can take the following steps:

• Make on-time payments. Making loan and credit card payments on time every single month improves a credit score over time. You might try using automatic payments from your checking account and electronic reminders to make sure a payment isn’t accidentally missed.

• Keep credit utilization rate low. Keeping their credit utilization rate (aka how much of your available credit they’re using) low can help boost a credit score. Aim for a balance that’s no more than 30% of your credit limit; 10% is even better. Paying off revolving balances each month can help keep this rate low.

• Double check credit report for errors. Mistakes happen! And an error on a credit report can be an expensive one; it can damage your score. It’s a good idea to review credit reports carefully from time to time to look for mistakes. It’s possible to dispute these errors and have them removed from the credit report, thereby improving your score.

It takes time to see the results from these efforts. But it’s wise to stay the course: Raising a credit score can make it easier to qualify for better lending products at more favorable interest rates.

The Takeaway

An usury rate is the maximum interest rate a lender is legally allowed to charge a borrower. Usury itself is the practice of charging excessively high interest rates, and this can have legal consequences. Because usury rates are state specific, it’s important to become familiar with what the usury rate in your state is, as well as the state where your lender is headquartered. By understanding interest rates and avoiding sky-high ones, you can take better control of your money and improve your financial health.

Here’s another way to boost your financial wellness: by partnering with a bank that doesn’t charge you fees and pays you an excellent interest rate. That’s what you’ll enjoy when you bank with SoFi. Sign up for a new bank account with direct deposit, and earn a fantastic 1.25% APY while paying zero account fees.

Come bank smarter with SoFi.

FAQ

What is the highest legal interest rate?

The highest legal interest rate a lender can charge varies state by state. This interest rate cap is known as an usury rate, and each state sets their own limits.

Is charging a high interest rate legal?

That depends on someone’s definition of a “high” interest rate. There are limits in place on how much interest lenders can charge (known as usury rates). These guidelines are designed to help consumers avoid predatory interest amounts.

What interest rate is predatory lending?

An interest rate that surpasses the usury rate (aka the highest interest rate a lender can legally charge) in the state the borrower or lender resides in is considered to be predatory lending.

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Source: sofi.com

May 18, 2022

Is Inflation Eating Your Budget? 13 Ways to Stretch Your Money

Follow these 13 actionable tips to stretch your money!

Whether you own or rent, there’s no doubt your budget has been feeling the effects of recent inflation. And while you’re powerless to improve the current economic changes, that doesn’t mean you can’t take action to combat higher prices. High inflation decreases your purchasing power, forcing you to spend more and get less in return. As a result, higher prices make it difficult to save money and reach your financial goals. Perhaps you’re not ready to take drastic measures like moving to a smaller apartment or taking public transportation. Instead, start with minor changes that will stretch your money so you get more bang for your buck.

1. Set financial goals

Goal setting is an important — yet often overlooked — step when trying to make progress with your finances. Don’t worry if it feels premature based on your current affairs. Setting goals and executing a plan to achieve them is powerful.

Keeping a specific goal in mind makes you more intentional with your working, saving and spending. In addition, focusing on your financial goals will give you the necessary clarity to make sound money decisions and the motivation to push forward.

2. Live on a budget

Getting good at making your money go further requires a certain level of financial awareness. Once your paycheck hits your bank account, do you have a plan for how you’ll spend your money, or do you go with the flow?

Having a plan is crucial, and a budget is a spending plan. The act of creating a budget is simply making a plan for how you’ll spend your money. Learning to live on a budget means you consistently create a spending plan and take steps to stick to that plan throughout the budget period.

Budgeting is a marathon

The first step to successful budgeting is to expect a learning curve. Becoming a budgeting master is a valuable skill that takes time to develop. So, commit to pushing through the tough months even when it feels like you’re doing it all wrong.

Budget your way

A quick Google search on “how to budget” will display many budgeting types and options — don’t get overwhelmed. As your budgeting prowess grows, you’ll begin to learn what methods do and do not work for you.

Approach budgeting as one-size-fits-some rather than one-size-fits-all. There are many different ways to budget. And, when used consistently, each of them will move you closer to reaching your goals. You may realize you prefer to manage your money with digital tools or use a budget binder to organize a more traditional paper budget.

Humans have a pesky habit of overcomplicating things, but budgeting doesn’t require anything elaborate or complicated. If you’ve tried percentage-based budgeting and it was an epic fail, there are simpler options to help you stretch your money further.

We’ve discovered that many folks gain more control over their finances when they manage their money using a zero-based (or zero-sum) budget.

In its simplest form, a zero-based budget looks like INCOME – EXPENSES = 0.

Assign every dollar of your income to carry out a specific financial “job.” Each dollar must serve a purpose, and it’s up to you to decide whether that purpose — spend, save, invest or give. Once you’ve given each of your dollars their assignments and your total income minus your total expenses equals zero, you have implemented a proper zero-based budget.

3. Track your spending

If you often wonder where your money went, it’s time to track your spending. While you may have a general idea of where your money goes each month, how clear are you on the specifics? For example, do you know how much money you actually spent on groceries, fuel and dining out last month?

Get clear on exactly how much you’re spending in each budget category. Having a better grasp on your spending is especially important when deciding how much rent or car payment you can afford each month.

Grab your phone or a notebook and add an entry each time you spend money. Exclude fixed expenses as you’ll be tracking those in your actual budget. Instead, focus on logging your Target trips, grocery runs and coffee pitstops.

Track your spending for a solid month, if possible. If you can’t swing a month, aim for at least two full weeks. At the end of your tracking period, enter your spending data on a spreadsheet or grab a few highlighters to color-code your spending.

Total each category to see exactly how much you’ve spent and compare it to your budget. The information you’ll gather from this exercise is invaluable and helpful when you want to stretch your money in a more balanced way. Your total spend numbers will point to where most of your spending is.

Your spending should reflect your values and priorities. If you discover this is not the case for you, what adjustments you need to make will be clear.

4. Avoid overspending

Overspending can creep up on you. What may feel like $10 swipes of your card a few times a week can quickly amount to high credit card balances or going over budget.

Consider these simple changes to reduce overall spending:

Order groceries online to avoid impulse purchases
Reduce online shopping frequency (e.g., order from Amazon only once per month)
Keep a running “wishlist” of items you want or need. When you come across a great deal, check your list — if the thing is on your list, buy it. If it’s not, move on.
Unsubscribe from retail emails that tempt you to spend
Add a personal spending category to your budget. Allocating a specific amount of money to spend in any way you see fit, guilt-free.

It’s not about money

Overspending is often misleading. The reality is overspending is rarely about the actual spending and is almost always caused by an emotional trigger. Therefore, the key to curbing overspending is identifying your trigger(s) and avoiding it (them).

Think back to the last time you felt shame or guilt for overspending. Then, go deeper to understand the underlying emotion that drove your spending? Were you tired? Did you have a bad day at work? Did you fight with your partner?

Retail therapy may feel helpful because we get a boost of adrenaline when we spend. However, you only perpetuate the problem when you avoid dealing with the emotions driving your spending habits. Instead, pay attention to exactly how you’re feeling the next time you experience the urge to spend money.

Once you’ve identified your spending triggers, create a plan to avoid them and break your pattern of overspending.

5. Negotiate your bills

A great way to stretch your dollar is to negotiate your bills each year. You’ll be shocked by how many of your service providers are willing to lower your rates with a simple request.

Review your monthly expenses and make a list of providers to contact. You can call the company or use their live chat feature if they have one. Explain to the representative that you want to reduce your monthly payment and inquire about their best deal. Expect a few “nos” and many a “yes,” especially if you’re kind and polite when requesting a discount.

This strategy is perfect for saving money on your:

Utility bills
Cell phone bill
Cable bill
Car insurance bill
Credit card and bank fees
Other insurance premiums
Rent

Regarding medical expenses, your best bet is to contact the billing department and offer to pay them a percentage of the total balance. Often, the provider is willing to accept a fraction of the amount owed to settle the account.

6. Pay off debt

Debt payments, especially those with high-interest rates, can eat up your income quickly. Creating a debt payoff plan will give you a road map to paying off your debt and keeping the money you previously sent to your debtors each month.

In addition, if you have a good payment history, contact your credit card servicers and request a lower interest rate. Refinancing is also an excellent option for securing a lower mortgage payment or reducing your minimum payment on personal loans or federal student loans.

Avoid future debt

As you work to get out of debt, it’s good practice to avoid taking on future debts. Trading old debt for new debt is counterproductive and will keep you stuck in a perpetual debt cycle.

7. Plan ahead

Planning into the next quarter, or even an entire year, can help you maximize your savings. In addition, saving a full three to six months of living expenses as an emergency fund will prepare you for any emergencies you experience.

Maintaining an emergency fund will protect your finances against increased expenses in the future, possible sickness, accidents or loss of income.

Forecast your upcoming expenses for the next 6-12 months and determine which you can begin saving for now. Items, such as Christmas gifts, birthdays, tuition, vacations, annual bills, etc., are all expenses you can save for, using sinking funds.

Save a small amount each month (or paycheck) until you save enough money to cover the expenses in full. Keep your sinking funds in a separate savings account to avoid accidental spending.

8. Try a savings challenge to stretch your money

Challenges and competitions are very motivating. And when otherwise unpleasant activities feel like a game, even adults can find enjoyment. Get started with a simple challenge, such as saving each five-dollar bill you receive or tossing your loose change into a jar for a predetermined time.

Are you competitive by nature? Ask some close friends or family members to join you. You’ll all benefit from holding each other accountable and boosting the competition factor.

9. Plan your meals

More than any other suggestion on this list, meal planning has the potential to stretch your money further. You’ve likely noticed your grocery bill increasing month after month. Plan out your meals and use that plan to create a shopping list.

Making a mental note of meals you’re hungry for while grocery shopping does not constitute meal planning. More often than not, heading to the grocery store without an intentional plan will cause you to go over budget.

Food waste accounts for 30-40 percent of the food supply in the United States (as of 2021). Shopping for groceries without planning often leads to a fridge full of unused fresh fruit and produce at the end of the week. If your food budget is $1,000 per month, that means $300-$400 of that budget will probably be wasted, if you’re not planning.

10. Stretch your money by ditching your cable

One of the easiest ways to maximize your money is to cancel your cable service. Today, 56 percent of U.S. homes no longer rely on cable or satellite boxes for content.

We’re fortunate to have the unique opportunity to stop paying for dozens of channels we don’t watch and customize our viewing experience. In addition, the number of available streaming services has exploded in recent years, with live sports and bundles finally being an option without cable packages.

Have an attachment to traditional cable and refuse to go without it? Keep your subscription but use tip No. 5 to negotiate a better deal.

11. Get a programmable thermostat

Unfortunately, energy costs are on the rise, too. Depending on your location, you’ll experience increased costs throughout the summer months (even if you’re trying to stretch your money). However, an Energy Star Certified programmable thermostat can cut your utility costs by up to 8 percent per year (around $50/year).

Not only will a programmable thermostat save you money but buying a “smart” model that works with Amazon’s Alexa or Google’s Home systems will also offer the convenience of allowing you to control the temperature with your voice.

Double your savings

Some programmable thermostats can cost upwards of $200, but more affordable options are available. In addition, many natural gas and electricity providers offer rebates for switching to a programmable thermostat.

In some instances, the rebate amount may even exceed the thermostat price. Contact your providers before purchasing your thermostat to determine which models qualify for rebates in your area.

12. Use an app

Looking for more convenient ways to stretch your money? There’s an app for that! Using mobile apps to save money or earn cashback on purchases are easy ways to combat higher prices.

Apps are available to save money on groceries, household items and even fuel. Other apps offer cashback when shopping online and in-store with your favorite retailers. There are even apps that will reward you for exercising.

Keep in mind that using cashback apps won’t make you rich. But using them consistently will help you save money on your everyday purchases, plus earn cashback rewards you can redeem for gift cards or cash.

13. Get a side hustle

There’s no doubt that cutting costs and saving money is a solid strategy to help stretch your money. But, focusing on increasing your income at the same time will boost your finances into overdrive. Plus, finding new, creative ways to earn small amounts of money in your free time will diversify your income and put you on the fast track to reaching your financial goals.

Monetize your passion

Here’s the good news: we live in an era where you can make money in countless unique, exciting ways. You no longer have to work overtime at a job you hate to make your rent payments each month.

People are turning their passions into full-time incomes from side hustles, such as pet-sitting, baking and even posting on social media. Brainstorm a list of your favorite hobbies and different ideas to monetize them.

The bottom line

Rest assured, if you’re feeling increased financial pressure, you’re not alone. Understand that maintaining financial stability in these uncertain economic times is still possible. Lowering your expenses and making a margin in your budget will allow you to spend your money on the things that matter most.

Source: rent.com

May 17, 2022

Brace Yourself: The Price Tag on Cars is About to Go UP!

Save more, spend smarter, and make your money go further

If you’ve done any car shopping lately, this will come as no surprise: automobile prices are going through the roof. Unfortunately, that trend doesn’t appear to be slowing down any time soon.

We’ll walk you through the factors driving this sharp increase, and give you some tips on how to avoid blowing up your budget when buying a car.

How Car Prices are Changing

Research from CarGurus.com found that used car prices are up more than 30% from June 2020. Prices have been steadily rising since the Covid-19 pandemic, and numbers have never been this high.

Not all brands are increasing at the same rate. For example, Tesla has only increased by 6% in the past year while Ram trucks have increased 40.5%. You can find a complete list of car manufacturers and their year-over-year increases here.

Why Car Prices are Going Up

Global supply chains were disrupted during the pandemic last year, and many car manufacturers did not produce as many vehicles as they normally would. The influx of stimulus checks and mass avoidance of public transit caused more people to buy cars, further limiting the available car supply.

Since 2020, there has been a global chip shortage causing massive delays for automakers. The average car can have hundreds of these chips, which explains why automobile production has slowed down even as other industries have begun to ramp back up.

How to Budget for Higher Car Prices

If you need to buy a car right now, prepare to pay higher prices than you might have paid a year or two ago.

Here’s how to plan ahead:

Look at your overall budget

Whether you’re planning to buy a car in cash or take out a loan, you should look at your budget to see how much you can afford to pay.

Because prices for other goods are also rising, it’s important to allow some flexibility in your budget. Don’t buy the most expensive car you can afford, and don’t raid your savings to pay for it. While the economy seems to be rebounding, you should still keep a sizable emergency fund in case of future layoffs or furloughs.

Compare interest rates

According to Bankrate.com, interest rates for auto loans are the lowest they’ve been since 2015. If you’re getting a car loan, one of the most important factors is the interest rate and APR. The interest rate affects your monthly payments and the total amount of interest paid over the life of the loan.

Start by getting quotes from your current bank, and then get outside quotes from other banks, credit unions, and auto lenders. Compare the APR and not just the interest rate. The APR is the more comprehensive number, reflecting both the interest rate and any fees.

Get the most for your trade-in

Because used car prices are going up, you will likely earn more for your trade-in than you would have in the past. Look up your car’s value on Kelley Blue Book and Edmunds.com to see what it’s worth.

Then, maximize your trade-in value by getting multiple quotes from dealerships and listing your car for sale on sites like eBay, Craigslist, and Cars.com. You’ll earn more from a private seller but may have to deal with flaky buyers. If you’re selling a car to an individual, you’ll also need to verify that the check or cash you receive is legitimate.

When selling to a dealership, try to leverage quotes from multiple dealers against each other to create a bidding war. Remember that inventory for used cars is low, so many companies are willing to pay more than you might expect for a used car.

Get a longer-term loan

If you can’t afford to pay for the car in cash, a car loan is your next best option. Car loan terms range from 24 to 84 months, and interest rates generally increase as the term gets longer. Because car prices are higher right now, you may need a longer loan term to end up with monthly payments you can comfortably afford. Use a car loan calculator and play around with the numbers to find your upper loan limit.

Here’s how the monthly payments can change depending on the term. Let’s say you receive two quotes from an auto lender for a $20,000 car. The first option is a three-year term with a 5% interest rate and a $582 monthly payment. The second option is a six-year term with a 6% interest rate and a $331 monthly payment.

You review your budget and determine that the maximum amount you can afford each month is $350. In this case, you would be better off choosing the six-year term with the higher interest rate.

It’s better to have a payment you can easily make every month than a lower interest rate and less wiggle room in your budget. You can always make extra payments on the car loan to pay it off faster if your income increases. Most auto lenders don’t charge a prepayment penalty, so there’s no extra fee if you repay the loan ahead of schedule.

Budget for car insurance

If you’re about to buy a new car, call your car insurance provider and ask them what the new monthly premium will be. In most cases, buying a newer car will increase your premiums because it will cost more to replace if there’s an accident.

But if your new car has additional safety features that could reduce the chances of an accident, then your premiums may not change as much. Still, it’s better to find out now what the premium will be instead of after you’ve bought the car.

Bottom Line

It’s impossible to predict where prices may be in the future. If you don’t need to buy a car right now, you might be better off waiting a few months to see if prices cool off.

Save more, spend smarter, and make your money go further

Zina Kumok is a freelance writer specializing in personal finance. A former reporter, she has covered murder trials, the Final Four and everything in between. She has been featured in Lifehacker, DailyWorth and Time. Read about how she paid off $28,000 worth of student loans in three years at Conscious Coins. More from Zina Kumok

Source: mint.intuit.com

May 17, 2022

What Is the Principal Amount of a Loan?

A personal loan can be a helpful financial tool when someone needs to borrow money to pay for things like home repairs, a wedding, or medical expenses, for example. The principal amount of a loan refers to how much money is borrowed and has to be paid back, aside from interest.

Keep reading for more insight into what the principal of a loan is and how it affects repayment.

Loan Principal Meaning

What is the principal of a loan? When someone takes out a loan, they are borrowing an amount of money, which is called “principal.” The principal on a loan represents the amount of money they borrowed and agreed to pay back. The interest on the loan is what they’ll pay in exchange for borrowing that money.

Does a Personal Loan Have a Principal Amount?

Yes, personal loans do come with a principal amount. Whenever a borrower makes a personal loan payment, the loan’s principal decreases incrementally until it is fully paid off.

Recommended: What Is a Personal Loan?

Loan Principal vs Loan Interest

The loan principal is different from interest. The principal represents the amount of money that was borrowed and must be paid back. The lender will charge interest in exchange for lending the borrower money. Payments made by the borrower are applied to both the principal and interest.

Along with the interest rate, a lender may also disclose the annual percentage rate (APR) charged on the loan, which includes any fees the lender might charge, such as an origination fee, and the interest. As the borrower makes more payments and makes progress paying off their loan principal amount, less of their payments will go towards interest and more will apply to the principal balance. This principal is referred to as amortization.

Recommended: What Is the Average Interest Rate on a Personal Loan?

Loan Principal and Taxes

Personal loans aren’t considered to be a form of income so the amount borrowed is not subject to taxes like investment earnings or wages are. The borrower won’t be required to report a personal loan on their income tax return, no matter who lent the money to them (bank, credit card, peer-to-peer lender, etc.).

Recommended: What Are the Common Uses for Personal Loans?

Loan Principal Repayment Penalties

As tempting as it can be to pay off a loan as quickly as possible to save money on interest payments, some lenders charge borrowers a prepayment penalty if they pay their personal loan off early. Not all charge a prepayment penalty. When shopping for a personal loan, it’s important to inquire about extra fees like this to have a true idea of what borrowing that money may cost.

The borrower’s personal loan agreement will state if they will need to pay a prepayment penalty for paying off their loan early. If a borrower finds that they are subject to a prepayment penalty, it can help to calculate if paying that fee would cost less than continuing to pay interest for the personal loan’s originally planned term.

How Can You Pay Down the Loan Principal Faster?

It’s understandable why some borrowers may want to pay down their loan principal faster than originally planned as it can save the borrower money on interest and lighten their monthly budget. Here are a few ways borrowers can pay down their loan principal faster.

Interest Payments

When a borrower pays down the principal on a loan, they reduce how much interest they need to pay. That means that each month as they make a new payment they reduce their principal and the interest they’ll owe in the future. As previously noted, paying down the principal faster can help the borrower pay less interest. Personal loan lenders allow borrowers to make extra payments or to make a larger monthly payment than planned. When doing this, it’s important that borrowers confirm that their extra payments are going towards the principal balance and not the interest. That way, their extra payments work towards paying down the principal and lowering the amount of interest they owe.

Shorten Loan Term

Refinancing a loan and choosing a shorter loan time can also make it easier to pay down a personal loan faster. Not to mention, if the borrower has a better credit score than when they applied for the original personal loan, they may be able to qualify for a lower interest rate which can make it easier to pay down their debt faster. Having a shorter loan term typically increases the monthly payment amount but can result in paying less interest over the life of the loan and paying off the debt faster.

Cheaper Payments

Refinancing to a new loan with a lower interest rate may reduce monthly loan payments, depending on the term of the new loan. With lower monthly scheduled payments, they may opt to pay extra toward the principal and possibly pay the loan in full before the end of the term.

Other Important Information on the Personal Loan Agreement

A personal loan agreement includes a lot of helpful information about the loan, such as the principal amount and how long the borrower has to pay their debt. The more information the borrower has about the loan, the more strategically they can plan to pay it off. Here’s a closer look at the information typically included in a personal loan agreement.

Loan Amount

An important thing to note on a personal loan agreement is the total amount the borrower is responsible for repaying.

Loan Maturity Date

A personal loan’s maturity date is the day the final loan payment is due.

Loan Interest Rates

The loan’s interest rate and APR should be listed on the personal loan agreement.

Monthly Loan Payments

The monthly loan payment amount will be listed on the personal loan agreement. Knowing how much they need to pay each month can make it easier for the borrower to budget accordingly.

The Takeaway

Understanding how a personal loan works can make it easier to pay one-off. To recap — What is the principal amount of a loan? The principal on a loan is the amount the consumer borrowed and needs to pay back.

Consumers looking for a personal loan may want to consider a SoFi Personal Loan. With competitive interest rates and a wide range of loan amounts available to qualified borrowers, there may be a personal loan option that works for your financial needs.

Learn more about SoFi Personal Loans today

FAQ

What is the principal balance of a loan?

The principal balance of a loan is the amount originally borrowed that the borrower agrees to pay back.

Does the principal of the loan change?

The original loan principal does not change. The principal amount included in each monthly payment will change as the amortization period progresses. On an amortized loan, less principal than interest is paid in each monthly payment at the beginning of the loan and incrementally increases over the life of the loan.

How does loan principal work?

The loan principal represents the amount borrowed. Usually, this is done in monthly payments until the loan principal is fully repaid.

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Photo credit: iStock/cagkansayin
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Source: sofi.com

May 17, 2022

Swimming Pool Financing: What to Know and Best Pool Loans

Who doesn’t love a relaxing dip in the swimming pool on a sweltering, hot day? And when that swimming pool is in your backyard, it’s even better.

You could bring your friends together over the summer by hosting pool parties. You could teach your kids to swim right at home. If you rent out your place on Airbnb or Vrbo, you could fetch top dollar for the additional amenity.

Sounds like a dream.

If your house didn’t already come with a pool when you moved in, there’s still a possibility of turning your pool fantasies into reality if you have enough space.

And if you don’t have tens of thousands of dollars upfront to spend on a pool construction project, there’s always pool financing.

What Is Pool Financing?

Pool financing is when you borrow money from a financial institution or lender to cover the costs of building a pool. Pool construction typically costs anywhere from $17,971 to $46,481 with the average cost being around $32,059, according to HomeAdvisor.

Of course, the cost will vary based on the size, the type of pool, your location and where you plan to build the pool on your property. Adding a small plunge pool to a cleared, flat space in your backyard will cost considerably less than adding a resort-style pool with waterfalls and a jacuzzi to your property that requires you to cut down multiple trees and level the land.

Besides the personal enjoyment that comes along with having a pool, this addition to your home could boost your property value and make your home more desirable to future buyers, renters or short-term guests.

The high cost to install a pool means that many people rely on pool financing. There are several ways to go about getting a loan for a pool.

Options for Pool Financing

If you want to add a pool to your property, but don’t have the cash upfront, you have several options.

You could get a personal loan (sometimes referred to as a pool loan), a home equity loan, a home equity line of credit or a cash-out refinance. Some pool builders or retailers offer in-house loan programs through their partner lenders. You might also consider using a credit card as your method of financing.

Personal Loans (AKA Pool Loans)

Pool loans are unsecured personal loans offered by banks, credit unions and online lenders. You may be able to get a pool loan through the financial institution where you already have existing accounts, or you might choose to get financed from an online lender or financing consultant company that deals exclusively with pool loans and home improvement loans.

One of the benefits of personal loans is that you don’t have to offer up any collateral. If you stop making payments and default on your loan, you don’t have to worry about your house being foreclosed — though the lender still could sue you. If approved for an unsecured personal loan, you can usually receive funds within a couple of days, much quicker than some other financing options.

Because you don’t have any collateral backing the loan, however, these financing options can come with higher interest rates. Interest rates can start around 3% and go up to about 36%.

A borrower’s credit score, credit history, income and existing debt load all affect the interest rate.

Personal loan terms generally range from about two to 12 years — though some pool loans can have terms up to 20 years or more. You can get loans from $1,000 to over $200,000 to fund simple above-ground pools or elaborate in-ground pool projects.

Home Equity Loans

Home equity loans are essentially when you tap into the equity you have in your home and take out a second mortgage. If you have a significant amount of equity, you could finance your pool project this way.

Home equity loans generally have lower interest rates than personal loans because your home is used as collateral. If you default on your loan, the lender could foreclose on your home.

Also, with home equity loans you’ll face additional fees, like a home appraisal cost and closing costs, so be sure to factor that into your decision making.

Home Equity Line of Credit (HELOC)

A home equity line of credit or HELOC also taps into the equity you have in your home, but it’s a revolving line of credit that you can use for several years instead of a loan that provides you with one lump sum of cash.

With a HELOC, you can pull out funds as needed to finance your pool construction and other home improvement projects. While you’ll only pay back what you borrow, the interest on HELOCs are usually adjustable rates rather than fixed rates. That means your monthly payments can increase during your repayment period.

Cash-Out Refinance

A cash-out refinance is essentially when you replace your existing mortgage with a new mortgage that exceeds what you owe on the house and you take out the difference in cash.

You can then use that lump sum to pay for your pool, and you’ll pay it back throughout the course of your new mortgage — over the next 10 to 30 years depending on your loan terms.

A cash-out refinance might make sense if you’re able to get a lower interest rate than your current mortgage. However, just like with a home equity loan or HELOC, your home is being used as collateral, and you’ll face additional fees involved in the refinancing process.

In-House Financing from the Pool Builder

Some pool companies may directly provide you with pool financing offers, so you don’t have to search for financing on your own. The pool companies typically aren’t offering the loan to you themselves, but they’ve partnered with a lender or network of lenders to provide you with financing options.

This type of financing is the same as applying for a personal loan or pool loan. The benefit is that you get a one-stop-shop experience instead of having to reach out to lenders individually. Your pool contractor may even be able to assist you through the loan process.

The downside is that you could potentially miss out on a better deal by only getting quotes from the pool company’s partnered lenders.

Credit Cards

Because of their high interest rates, credit cards are usually not recommended as options for financing a new swimming pool. However, there can be situations where it’d make sense.

If you’re able to open a zero-interest credit card and pay the balance back before the zero-interest period expires, paying with a credit card can be a great option — especially if it’s a rewards card that’ll give you points, airline miles or cash-back for spending or a bonus just for opening the account.

If you choose this financing option, be sure that you’ll be able to pay off the balance in a relatively short period of time. Most credit cards only offer zero-interest periods for the first 12 to 21 months. After that your interest rate could go up to 18% or more.

Pool Loan Comparisons

Getting quotes from multiple lenders will help you select the best deal for your pool construction project. Here’s what a few top lenders are currently offering.

Lyon Financial

Best for Long Loan Terms

4.5 out of 5 Overall

Key Features

Pays the pool contractor directly
600 minimum credit score
Offers military discounts

Lyon Financial is a financing consultant that has been in business since 1979 and works with a network of lenders to provide loans for pool and home improvement projects. Unlike personal loans that provide the borrower with the funds upfront, Lyon Financial disburses the funding directly to the pool builder in stages as the project progresses.

Lyon Financial

APR (interest rates)

As low as 2.99%

Maximum loan amount

$200,000

Loan terms

Up to 25 years

HFS Financial

Best for Large Pool Loans

4 out of 5 Overall

Key Features

Provides loans up to $500,000
Most loans are funded within 48 hours
No prepayment penalties

HFS Financial is a financing company that partners with third-party lenders to provide homeowners with the money to construct pools on their property. Use their “60 second loan application” to kick off the loan process. Funds are typically dispersed within 48 hours.

HFS Financial

APR (interest rates)

As low as 2.99%

Maximum loan amount

$500,000

Loan terms

Up to 20 years

Viking Capital

Best for Customer Service

4.5 out of 5 Overall

Key Features

Supports a network of pool builders
650 minimum credit score
Offers military discounts

Viking Capital is a family-owned business that has been in operation since 1999. The company acts in the capacity of a financial consultant, and partners with a network of lenders to provide multiple loan offers for pool construction projects.

Viking Capital

APR (interest rates)

As low as 5.49%

Maximum loan amount

$125,000

Loan terms

Up to 20 years

5 Steps to Securing Pool Financing

Follow these steps to secure a loan for your pool.

1. Determine What Monthly Payments You Can Afford

Before you dig into your pool financing options, you should be clear on what monthly payment you can afford. Having a pool is a luxury. You don’t want a pool construction project to jeopardize your ability to pay your bills and meet your needs.

Figure out how much disposable income you have to work with by comparing your monthly earnings to how much you typically spend each month.

Don’t forget to factor in maintenance and additional utilities usage when estimating how much you can afford to go toward pool costs.

2. Check Your Credit History

When you’re financing a pool, having a good or excellent credit score will help you secure a loan with a low interest rate. Ideally, your credit score should be 700 or above.

Some lenders may offer you financing if you have fair or poor credit, however you may have to pay a lot more over time due to higher interest rates.

To boost your credit score before applying for a pool loan, follow these steps.

3. Get Cost Estimates for Your Pool

Talk with pool builders to get estimates on the total cost of your desired pool project. Get estimates from multiple pool companies so you have a better idea of what options exist.

If the estimates come in higher than you expected, consider scaling down the size of your pool project or using different materials.

Make sure any additional work — like constructing safety fencing — is included in your estimate.

4. Choose What Type of Financing Your Prefer and Shop Around For Lenders

After you figure out what options are available within your budget, it’s time to decide on what type of financing you prefer.

Will you be applying for an unsecured loan or do you plan to tap into your home equity or refinance your mortgage? Are you going to purchase a small above-ground pool that you could pay off in 15 months using a zero-interest credit card?

Once you know what type of financing you’ll go with, reach out to multiple lenders so you can compare offers and choose the best deal. You may be able to use a competitor’s lower offer to get a lender to reduce their offer even further.

5. Complete Loan Application and Sign Off on All Paperwork

The final step to get your pool project financed is to complete any additional paperwork and sign off on the dotted line. Expect to provide information about your income and other existing debt.

Your credit score may take a dip after taking on new debt, but it should rebound as you make regular, on-time payments.

Alternatives to Pool Financing

Taking on debt for a new pool doesn’t have to be your only option.

You could put off your pool construction project for a few years and save up for the expense in cash. Open a high-yield savings account to use as a sinking fund and don’t make withdrawals from the account until you’ve reached your savings goal.

If you think you’re outgrowing your current home — or are looking to downsize — wait until you’re ready to move and then look for a new home with an existing pool.

Or if you’re okay with not having a pool in your backyard, you’ll save money by visiting public pools or renting private pools from Swimply on occasion. This is a good option if you think you wouldn’t get much regular use of having your own pool.

Frequently Asked Questions

How many years can you refinance a pool for?

You can finance a pool over 20 to 30 years, depending on the type of financing you secure. If you need decades to pay back the loan, you might consider refinancing your mortgage or taking out a second mortgage. Private, unsecured loans typically need to be repaid sooner, however some have loan terms of 20 years or more.

What is the best way to finance a pool?

It all depends on your individual circumstances and preferences. If you’ve built up a ton of equity in your home and want to spread your debt payments over a lot of time, you might lean toward a home equity loan or HELOC. If you’ve got excellent credit and would qualify for a low-interest personal loan (unsecured loan), that might be the better option.

What credit score do you need for pool financing?

Ideally, you’ll want to have a credit score of 700 or higher to get the best interest rates for pool financing. Some companies, however, will accept lower credit scores. As a result, your loan may have a higher interest rate.

What is a good interest rate for a pool loan?

An interest rate around 5% is a good deal for a pool loan. You may be able to find rates even lower if you have excellent credit.

Nicole Dow is a senior writer at The Penny Hoarder.

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Source: thepennyhoarder.com

May 17, 2022

How Much Does It Cost to Adopt a Child?

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Additional Resources

Adoption is a life-changing journey. Whether the choice to adopt comes after years of expensive infertility treatments or is a route you’ve always wanted to take, the choice to welcome a new family member is rarely a financial one, but rather a decision of the heart.

But at some point, prospective adoptive parents have to consider the costs. It’s unlikely your decision to adopt will boil down to numbers. But it helps to know what to expect.

The figures can vary depending on your adoption journey, from almost nothing to upward of $70,000. But you can use them as a baseline to help you financially prepare for starting a family and to make an informed decision about which type of adoption makes the most sense for you.

How Much Does It Cost to Adopt a Child?

There are three basic types of adoption: domestic infant adoption (sometimes called private adoption), international adoption, and public adoption.

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But if you’re looking to adopt a baby, private and international adoption are the only two real options. Because of the way the foster care system operates, it’s exceedingly rare to be able to adopt an infant through public adoption. Their primary goal is reunifying families whenever possible, which can take years.

But regardless of your adopted child’s age, some costs are common to all three, such as the expense of a home study, which involves visits by a social worker and background and financial checks. Other costs are unique to the adoption route you choose, such as the travel expenses involved with international adoption.

And the costs vary wildly, so it’s crucial you understand the ins and outs of each adoption type.

Domestic Infant Adoption

When adopting a baby in the United States, you have two options: adopting through an agency or independent adoption.

Costs of Adopting an Infant Through an Agency: $25,000 – $70,000

Adopting through an agency is more expensive, but there’s also a higher success rate. Also, some agencies offer a sliding scale for those who need help affording adoption, which can potentially save you a few thousand dollars, depending on your income. However, each state has its own laws that regulate adoption fees, including sliding scale fee structures.

Average Costs of Domestic Agency Adoption

Agency Fees	$15,000 – $45,000
Legal Fees	$2,500 – $6,000
Birth Mother Expenses	$4,000 – $16,250
Home Study Fee	$2,750

Adoption agencies are typically full-service operations. Thus, their fees generally include everything involved in the adoption process, which can be complex. The journey to bring a child home involves many parties, including attorneys, social workers, physicians, counselors, government administrators, and adoption specialists.

There are also costs associated with matching birth parents and adoptive parents. For example, there are advertising expenses to find expectant mothers. And then there are medical expenses and court costs to ensure the health of the mother and child during pregnancy as well as the safety and security of the child after placement.

When you adopt through an agency, it typically completes the entire process from beginning to end, hence the expense.

Adoption agencies that charge more include more services. For example, if you find an agency with fees at the lower end, it’s likely because their fee doesn’t include the costs of hiring an attorney, unlimited advertising for birth parents, certain birth mother expenses, or adoption disruption insurance (a guarantee you won’t lose your money if the birth mother changes her mind).

So always ask for a written, line-by-line breakdown of the agency’s costs to see what services its rate covers before signing with it.

Costs of an Independent Adoption With an Attorney Only: $10,000 – $40,000

If agency adoption is too expensive but you’d still like to adopt a newborn, you can save a lot of money by hiring an attorney to facilitate an independent adoption. Independent adoption happens when prospective parents locate a birth parent on their own and use an attorney to process the necessary paperwork.

Average Costs of Independent (Attorney) Adoption

Legal Fees	$3,000 – $6,000
Advertising Fees	$0 – $1,000
Birth Mother Expenses	$6,000 – $30,000
Home Study Fee	$1,000 – $4,000

The cost of an independent adoption can range from $10,000 to $40,000, though it could go higher based on your circumstances. The final bill depends on how much you need to spend to find an expectant mother and how much you pay for medical and living expenses, which may be regulated by state law.

Further, adopting independently is a bit like trying to sell a house without a realtor. You must find a birth mom on your own, which means advertising for and vetting birth moms without help.

So, while it can be cheaper, you still have to go it alone. And if you have trouble finding a birth mother, your costs can quickly add up. Agencies give a flat rate no matter how much advertising it takes. If you have trouble finding someone, you could quickly blow past the $40,000 mark.

Another reason independent adoption costs can vary more widely than those through a private agency is because in most states, adoptive parents won’t have their costs reimbursed if a birth mother changes her mind, what’s commonly called a disrupted adoption. Most adoption agencies build disruption insurance into their fee structures.

International Adoption: $26,500 – $73,000

Those unfamiliar with the adoption process often believe it’s less expensive to adopt a child from another country. But the reverse is more often true.

Average Costs of International Adoption

Agency Fees	$15,000 – $30,000
Legal Fees	$500 – $6,000
Immigration Application Fee	$1,000 – $2,000
Dossier Preparation and Clearance	$1,000 – 2,000
Home Study Fee	$1,000 – $4,000
In-Country Adoption Expenses	$2,000 – $10,000
Travel Expenses	$5,000 – $15,000
Child’s Passport, Visa, Medical Exam	$1,000 – $4,000

The cost of an international adoption can range from just over $20,000 to more than $70,000. The wide variance is due to the different requirements of each country.

International adoption (also called intercountry adoption) has some similarities to domestic adoption. But it has its own unique steps and expenses that can quickly escalate beyond the cost of domestic adoption.

The costs of international adoptions can include immigration processing and court costs (both in the foreign country and the U.S.), travel expenses, foreign and domestic legal fees, foreign agency fees, passport and visa fees, medical examinations, and in-country adoptions expenses (such as foster care for the child, donations to the orphanage, and payments for the in-country adoption liaisons).

The costs also depend on whether a government or private agency, orphanage, nonprofit organization, attorney, or a combination of entities is managing the adoption.

Additionally, some international adoptions are finalized in the child’s country of origin, while others must be finalized in the U.S., depending on the laws of your state, further adding to the total cost. And depending on the country’s regulations, you may have to plan an extended stay, which means time off work and (potentially) lost wages.

Public Adoption: $0 – $2,500

The least expensive route to growing your family is unquestionably public adoption, or adopting through the foster care system. It’s very difficult to adopt a baby, though. So this option is best for those who wish to adopt an older child.

Public adoption costs next to nothing because the government subsidizes many associated fees and expenses.

Average Costs of Public Adoption

Agency Fees	Usually $0
Legal Fees	$0 – $2,000
Home Study Fee	$0 – $500

Federal and state financial adoption assistance programs exist to encourage the adoption of children with special needs that make them difficult to place, such as older children, sibling groups, or those with physical or mental disabilities.

Thus, most prospective parents who are adopting through public agencies will find their state is often willing to waive most or all of the fees associated with adopting through the foster care system, including both the home study fee and attorney fees.

Additionally, if you become a foster parent and apply to foster-to-adopt, the government subsidizes some of your future adopted child’s living expenses while you await finalization.

But if you have your heart set on adopting a newborn, foster care adoption isn’t the route for you. It’s nearly impossible to adopt an infant that way.

Some babies in the foster care system were abandoned by their biological parents or taken by the state due to abuse, neglect, or drug addiction. But no child in the system — infant or otherwise — is immediately available for adoption.

The state’s No. 1 priority is to reunite children with their biological families. That includes extensive sessions with counselors and social workers. If that effort ultimately proves unsuccessful, the state next tries to place the child with a biological relative.

Only after these efforts — which could take several years — are children placed for adoption. Thus, by the time babies in foster care become eligible for adoption, they’re no longer babies. But if they were placed with a foster family, that family gets the first chance at adoption.
However, if you’re interested in adopting an older child and are prepared to help them work through the trauma, the rewards can be immense. My parents adopted my little brother from foster care at the age of 6, and his presence has enriched our family in myriad ways.

Happy Family Son Saving Money In Piggy Bank Budgeting Teaching Saving

Factors That Influence Adoption Costs

Every adoption is unique, and though adoption agencies typically try to work within your budget, unforeseen costs can occasionally raise the base projected cost. And that can have a significant impact on your overall family budget.

Birth Mother Expenses

Depending on your state’s adoption laws, a birth mother may be eligible for coverage of certain expenses. You may have to pay medical expenses related to the pregnancy, including insurance coverage if she’s not already covered or eligible for Medicaid.

If you work with an agency, they should take care of helping her find coverage. But you may still be responsible for some medical expenses, such as doctor copays. Once you’re matched with a birth mother, her medical expenses become your medical expenses.

Adoption agencies typically work these into their overall fee structure but allow for variances that could affect your cost. For example, you may pay more or less depending on what stage of pregnancy the mother’s in when the agency matches you. If you’re matched in the ninth month, there will be fewer expenses.

And if you’re adopting independently, some or all of the medical costs the birth mother incurs as a result of the pregnancy may be your responsibility as defined by the laws of your state. Consult with an adoption lawyer for more information.

Additionally, in some states, you may need to cover other birth mother expenses. Birth mother expenses are court-approved funds adoptive families provide to help prospective birth mothers with pregnancy-related expenses. In addition to medical care, costs could include living expenses like maternity clothing, groceries, rent, and transportation.

Some states that allow birth mothers to request living expenses cap the total amount. For example, Ohio caps the amount birth mothers can be reimbursed for living expenses at $3,000 and Connecticut at $1,500. Other states have no cap but permit a judge to set one on an individual basis.

Thus, these expenses can vary widely from one adoption to another.

Advertising

The longer you have to wait for a birth mother match, the more money an agency must pay toward advertising to find you one. Ask the adoption agency how they deal with this variable cost. Some charge one flat fee regardless of the amount of advertising required; others set a variable cost.

And if you’re doing an independent adoption, you’ll be covering this expense on your own. If you don’t already know a birth mother to adopt from, you’ll need to find one. That means drawing on your personal connections, using social networks or community organizations, utilizing adoptive family websites, posting print ads, or seeking referrals from adoption attorneys.

It could take a long time to find a birth mother if you don’t have extensive networking options. And that can substantially drive up your adoption costs. Depending on how long it takes you to find someone, fees for print and online advertising can range from several hundred dollars to tens of thousands.

Attorney Fees

Lawyers are necessary for dealing with the legal aspects of any adoption. These include the original consent to adoption and termination of parental rights as well as the court proceedings to finalize the arrangement.

However, the fees can vary considerably based on the type of adoption you opt for. Attorney fees can also vary depending on other factors, including:

The Complexity of the Case. Will they need to represent you multiple times in court? All adoptions must eventually be finalized before a judge. But some adoptions — such as international adoptions or those in which birth mother expenses must be court-ordered — could require more paperwork or court appearances than others.
The Number of Hours the Attorney Works on the Case. Lawyers charge by the hour. Even if you don’t have to appear in court more than once, adoption can involve a lot of paperwork.
The Number of Additional Attorneys or Support Staff Needed. Depending on the complexity of your case or who you hire, you may be represented by a law firm rather than a single attorney. Additionally, your lawyer may use a support team to fulfill basic tasks like clerical work.

Depending on your case, rates are often negotiable. And while attorneys often charge by the hour, many offer a flat fee for certain types of cases.

For example, a family law attorney might charge a flat fee for a straightforward adoption case that requires a simple filing of paperwork and one court appearance. But they might charge by the hour for a more complex case, such as an international adoption.

Regardless, most lawyers offer payment options so clients can find an arrangement that works for their budget. And all lawyers have fee agreements informing clients of costs upfront. So ensure you thoroughly read the agreement beforehand.

Time Off

Unfortunately, in the U.S., paid parental leave isn’t guaranteed by law, and many workplaces don’t have this benefit. Even when they do, it may not apply to adoptive parents. So check with your human resources department about whether your workplace offers adoption benefits.

Whether your employer offers paid time off, all adoptive parents are entitled to up to 12 weeks (three months) of leave through the Family Medical Leave Act. The act equally guarantees maternity and paternity leave for biological and adoptive parents.

But it only guarantees your job and health insurance. It doesn’t guarantee paid time off. If your company doesn’t provide paid parental leave, you need to plan for lost wages.

Final Word

The costs of adoption may feel formidable, especially if you have your heart set on adopting an infant through domestic or international adoption. But they don’t have to be insurmountable.

Many resources are available to help families afford to adopt, including options for post-placement reimbursement, like the adoption tax credit. Talk with adoption professionals to explore your options before completely ruling it out.

Also, talk with other families who’ve adopted. Many are happy to share stories of how they were able to afford adoption, especially if it helps others fulfill their dreams of a family.

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Sarah Graves, Ph.D. is a freelance writer specializing in personal finance, parenting, education, and creative entrepreneurship. She’s also a college instructor of English and humanities. When not busy writing or teaching her students the proper use of a semicolon, you can find her hanging out with her awesome husband and adorable son watching way too many superhero movies.

Source: moneycrashers.com

May 17, 2022

Wedding Budgeting: A Guide to Paying for Your Big Day

From the dress to the cake to the reception venue, wedding planning can pull you in dozens of different directions. It can also pull on your purse strings until they’re ready to snap.

According to wedding publisher The Knot, American couples spent an average of $28.000 on their wedding ceremony and reception in 2021 — back up to pre-pandemic spending levels. And that figure doesn’t even include the engagement ring or honeymoon!

Before you have a mini heart attack, keep in mind that the average isn’t the rule. There are many genius ways to save money on your wedding and still have a fabulous celebration.

But before you start browsing tulip arrangements, you need to have an idea of what you can afford overall.

To keep a handle on your spending and strategically tackle all the costs you’ll face, here’s the first item on your wedding to-do list: Set a budget for the big day.

What to Consider When Framing Your Wedding Budget

Fresh off the high of the proposal, you and your future spouse need to come together to answer some vital questions.

What’s most important to you in regards to your wedding?
How long do you want to wait to get married?
How will you be paying for the wedding?

What Matters Most?

Like choosing a college or buying a house, the decisions you make when planning a wedding aren’t based on cost alone. There is a lot of sentimental decision-making involved.

You’ll want to be able to reflect fondly on your wedding for decades to come. You may already have strong opinions about what you want your big day to look like. Sit down with your fiance to come up with the top three priorities for your wedding.

Is it important to have your ceremony in the church your parents got married in — even if that place is 2,000 miles from where you live? Do you want a band to play all the songs that hold special meaning in your relationship? Is it vital to serve foods that represent both of your cultures?

Establishing what’s worth splurging on will help you create a budget reflective of what you really want your wedding to be like, rather than following a template of what the typical couple spends.

A wedding day is marked on a calendar. — Aileen Perilla/ The Penny Hoarder

What’s Your Timeline?

The period between saying “yes” and saying “I do” can have a big effect on what you’re able to afford. An 18-month engagement gives you time to save up for a more extravagant affair while you might have to make sacrifices if you have only six months to plan.

According to Brides magazine, the average engagement lasts between 12 and 18 months..

When figuring out when you want to get married, know that the time of year can affect costs too. Wedding season typically lasts from late spring to early fall. You may find vendors are cheaper in off-season months.

You’ll also want to beware of planning a wedding close to holidays when venues may be booked and caterers may be busy. A wedding on New Year’s Eve or Valentine’s Day may seem fun or romantic, but you’ll likely pay a premium for those special dates.

Who’s Paying?

Before you start planning, an important factor to figure out is how you — or someone else — will be paying for your wedding.

Your parents or other close relatives may want to chip in to cover wedding costs, but don’t assume — or expect — they will. Have a direct conversation with your family about the financials. If your folks are contributing, make sure you understand whether they’re providing a set amount or if they plan to cover a certain expense — like the wedding gown or the booze for the reception.

Pro Tip

If family is contributing financially, make sure you understand their expectations, like inviting a ton of extended relatives or having the wedding in your hometown.

After determining what family will cover, you and your fiance need to hatch out a plan for everything else. Figure out how much existing savings you can throw toward the wedding without eating into vital emergency funds. Determine how much you can realistically put aside every month leading up to the big day.

Take a look at your existing budget — or budgets, if you manage money separately — and figure out where there’s room to cut expenses. (Use this post on how to save money fast as a starting point.)

In addition, start brainstorming ways you can make a little extra cash to plump up your savings. (This post on quick ways to make money has some neat ideas.)

Pro Tip

Open a separate savings account to serve as a sinking fund so your wedding savings don’t get spent on everyday expenses.

Your savings, plus any family contributions, will make up your wedding budget total. If what you expect to have saved falls short of what you expect to spend (which we’ll discuss next), you have three choices:

Plan a less expensive wedding.
Push back the wedding date to allow more time to save up.
Borrow money for your big day.

You probably won’t come across a financial expert who would recommend taking out a personal loan for a wedding. However, if this is the route you’re taking, look into opening a credit card with a zero interest introductory period. And — this is important — plan to pay it off before that period is over.

Creating a Budget for Your Big Day

Once you’ve made the important decisions about what you want, when you’ll get hitched and how you’ll afford the wedding, it’s time to lay out a budget.

You can do this on a spreadsheet you make yourself or one available online or through an app — such as WeddingWire’s wedding budget tracker or The Knot’s wedding budget planner.

Your budget should include sections for estimated costs, quotes from vendors and the prices you actually pay. Make note of when initial deposits are made and when final payments are due.

A bridge gets her gown put on her as her mother holds her hand. — Getty Images

Average 2021 Wedding Costs

Information from The Knot indicates how much vendors charged on average in 2021 for their services. These figures will give you an idea of what you’ll spend in various budget categories:

Invitations: $530
Wedding dress: $1,800
Groom’s attire: $270
Hairstylist: $130
Makeup artist: $115
Florist: $2,300
Photographer: $2,500
Videographer: $1,900
Transportation: $900
Reception venue: $10,700
Catering: $75 per person
Rehearsal Dinner: $2,300
Wedding cake: $500
Reception band: $4,300
Reception DJ: $1,400
Wedding favors: $450
Engagement ring: $6,000
Wedding planner: $1,700

And that’s not all — you’ll also need to budget for the following:

Ceremony site
Officiant
Bride’s and groom’s wedding bands

You’ll also need to add the cost of the marriage license, which ranges depending on location but generally costs less than $100.

Now think about extras. Do you want to hire an instructor to choreograph your first dance? Do you want sparklers at your send-off? Are you getting special gifts for your bridal party? You’ll need to budget for those.

There’s also all the incidental costs. Do you need to purchase a liquor license to serve alcohol at a nontraditional venue? Did you factor in the cost of stamps for your wedding invitations? Make sure you don’t forget tipping and taxes.

Budgeting for Your Wedding Your Way

What you actually spend may vary drastically depending on where you live, when you’re getting married, the size and style of your wedding and other factors.

Since you’re a Penny Hoarder, we know you can throw a fantastic wedding for much less than $28K. (Take notes from how these couples did it.)

Contact vendors to get quotes on prices. Sites like WeddingWire, The Knot and Thumbtack can help you find florists, photographers and the rest. Get recommendations from recently married couples in your social circle or chat with brides and grooms from online forums.

Pro Tip

Get quotes from multiple vendors. You might be able to get them to match a competitor’s price. And be sure to go over contracts in detail so you know what is and isn’t included.

It’s important to include some cushion in your budget to cover miscellaneous expenses that will pop up. Having a 5-to-10% cushion can help you avoid going over budget, so you can start off your marriage on a financially responsible note.

Frequently Asked Questions

What is the average cost of a wedding?

The average couple spent about $28,000 on a wedding in 2021, according to The Knot’s annual wedding study, which surveyed more than 15,000 American couples.

What are the most expensive wedding costs?

The reception venue and catering tend to be the most expensive wedding costs. The average cost for a reception venue in 2021 was $10,700 and the average cost for catering was $75 per person.

How much does it cost to get married without a traditional ceremony or reception

The cost of a wedding license is typically under $100. You also may need to pay for an officiant, which can cost less than $300.

How long is the average engagement?

The average engagement typically lasts between 12 and 18 months, according to Brides magazine. Of course, the longer your engagement, the longer you have to save money for the wedding.

Nicole Dow is a senior writer at The Penny Hoarder.

Source: thepennyhoarder.com

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