No matter whether the content is in print or online, there will always be a need for proofreaders. Becoming a freelance proofreader may be the perfect solution for you to make money working from home.
Everything we do today seems to happen in the digital space. It is all typed for us to read. And, if you have read anything lately, you may have noticed grammatical and typographical errors. Hey, it happens. But, it really shouldn’t (even for me, and I admit that it still does from time to time). Because of the increase in online marketing, articles, and websites, the need for proofreaders continues to grow. It can be a lucrative career for anyone looking to replace or supplement their income. But, you have to know where to start. That’s why I reached out to Caitlin Pyle, the owner and blogger behind Proofread Anywhere. If you want to increase or even replace your current income, freelance proofreading might be the answer for you. Caitlin was able to make more than $43,000 in 2014 just from proofreading. She has developed a plan to help anyone looking to either supplement or replace their income by becoming a freelance proofreader. Read More:
HOW TO BECOME A PROOFREADER ONLINE
WHO IS THE WOMAN BEHIND PROOFREAD ANYWHERE?
I started out working a 9-to-5 job as a receptionist at a busy court reporting office back in 2009. I was so good at spotting errors that court reporters started calling me “Eagle Eyes.” As I moved up at the office, I started proofreading for court reporters as a side hustle. In 2011, I parted ways with that firm but kept my proofreading clients. I’ve been on my own ever since. As I gained experience and got more and more clients, I streamlined my proofreading method so I could work more efficiently. Eventually, proofreading became my primary source of income. My friends and family took notice and started asking me how I built my business. I released Proofread Anywhere, and then later, Transcript Proofreading: Theory and Practice™, launched.
WHAT DO FREELANCE PROOFREADERS DO?
People (specifically bloggers and other business owners) are looking for passionate, detail-oriented proofreaders. Whenever words get put into print, they need to be proofread for accuracy. Someone can write a blog post or a resume (or anything, really) and read over it themselves, but they already know what they put on the page. That makes it super easy to read what you expect to be there rather than what’s actually on the page. That’s when writers can overlook a misspelled word (think their instead of there) or a missing word. So it’s always good to have someone else read over your writing. I even have someone read my blog posts before they go live. No one’s immune! It comes as no surprise, but my favorite type of proofreading is proofreading transcripts for court reporters (often referred to as legal proofreading). Anyone who’s watched crime drama TV shows has probably seen a person sitting in the front of the courtroom typing away on a little machine. That’s a court reporter, and they’re writing on a steno machine. They take down word for word what everyone in the courtroom says. Their steno notes are turned into a transcript, which then needs to be proofread before it’s handed over to the person requesting it. Transcript proofreading is a very specific niche and requires very detailed training before proofreaders start helping out court reporters.
WHAT ARE THE QUALIFICATIONS FOR FREELANCE PROOFREADING?
Surprisingly, it isn’t just about being a whiz at grammar and spelling. It’s actually about having a good work ethic. You are in charge of your own success. Your reputation will determine if you’re someone in the proofreading community who will be known for your outstanding work ethic or rather as someone who can’t be trusted to respond to emails, return a quality job, meet a deadline, and/or be honest. A good proofreader likes to read. You will be doing lots (and LOTS) of reading. If you don’t enjoy reading, you definitely won’t enjoy sitting down and picking up a 300-something-page transcript. You need a desire to learn and keep learning. If you’ve never proofread a transcript before but think you know it all already — and just need to know how to get clients — you’ll be in for a rude awakening. Court reporters can smell inexperience from a mile away. Finally, you do need to be familiar with basic grammar and spelling rules. You don’t have to be perfect at them, but if you have a hard time catching errors as you read through advertisements or magazines and such, you’ll have a very difficult time with transcript proofreading, and I wouldn’t recommend it for you. Oh – and one more thing!! Proofreading is not a way to get rich quickly by putting in minimal effort. Transcript proofreading is a lot of work. If you’re looking for a willy-nilly little “course” to give you some general ideas on how to catch errors and make crazy cash, this isn’t for you. Transcript Proofreading: Theory and Practice™ isn’t designed to chuck a gazillion people haphazardly out into the world to scrounge for clients. It’s there to equip serious people with the serious skills needed to perform serious work.
IS ANY SPECIAL TRAINING REQUIRED?
While theoretically, anyone could call themselves a proofreader and start trying to proofread general text like term papers, blog posts, and the like, now you know that transcript proofreading for court reporters takes a different kind of skill set than general proofreading. Transcript Proofreading: Theory and Practice™ goes in-depth on everything, from the very basics of what makes up a transcript to how to proofread transcripts (you practice on over 3,000 real transcript pages) to marketing specifics. Even if you’ve proofread other types of text before, if you haven’t proofread a transcript before, you’ll need specific training before offering that as a service.
HOW MUCH MONEY CAN FREELANCE PROOFREADERS MAKE?
That depends on quite a few factors. Transcript proofreaders charge by the page, so your rate will depend on how quickly you can work through a transcript — and with what accuracy you can do that. Blasting through a transcript ultra-fast and leaving loads of errors in your wake won’t make you more money in the long run because it will ruin your reputation. It’s best to start slowly and build up speed. It also depends on your goals. Do you want to quit your job and stay at home? Some graduates of Transcript Proofreading: Theory and Practice™ consistently earn more than $2,000 a month and can stay at home with their kids. Others don’t want to quit their jobs but appreciate the extra cash to pay off debt faster or have more wiggle room in their budgets. There are students making $4,000 and more a month – working part-time. Others are making 6-figures annually. It’s your business. You decide how much you want to proofread. That kind of flexibility is exactly what makes me so passionate about the work.
WHAT IF I TRY IT AND HATE IT?
Then be honest but kind to yourself. You won’t know until you try, so if it seems interesting to you, give it a fair shot. Don’t quit too early, but if you get into it and honestly don’t enjoy it, that’s a good sign it’s time to move on. Some folks get started and LOVE every minute of it. Others start and find out it’s really not something they enjoy. That’s why I break the training into levels. Students invest in each level as they go — not all upfront. So if someone decides it’s not something he or she wants to continue, then they’d simply not invest in the next level of training. Easy! Now while there have been students — and even graduates — who have decided proofreading just isn’t for them, the knowledge and confidence they gain through the community and the training (especially the marketing training) gave them the confidence to branch out into other freelance skills. Some stick with proofreading but instead of proofreading transcripts, they do other types of proofreading. Others find a completely different area of the freelance world they really love, like transcribing or writing. We even encourage branching out because more skills always translate to more money.
WHAT DOES IT COST TO GET STARTED PROOFREADING?
You can sign up for my free intro course for, well, free! It won’t cost you a dime to see if proofreading transcripts for court reporters is something you would be interested in pursuing further. Full disclosure: It takes a LOT of work to learn the ins and outs of this work, so you won’t learn everything you need to know in a free week-long course. BUT it will help you decide if you want to pursue transcript proofreading further in the intensive course, and you’ll get some excellent marketing tips for general proofreading. If you do choose to move on with structured training, you’ll find that compared to investing in a college degree to start a new career, our online training is quite affordable. Aside from your training, we recommend an iPad (around $200 for a mini) and a special annotation app we use (about $10).
HOW DO YOU FIND ONLINE PROOFREADING JOBS?
Rather than spin your wheels trying to figure out how to get started on your own, I recommend you take a free course to get started. You’ll learn more about proofreading so you can decide if it is a fit for you or not.
ANYTHING ELSE OUR READER SHOULD KNOW?
Don’t second-guess yourself. If you have eagle eyes that are always catching errors all over the place, transcript proofreading may just be your niche. Self-doubt is one of the biggest reasons dreams never make it to reality. Time to do something about that!
Inside: The summer months are a great time to cash in while teachers get paid. Here are some tips to maximize your income as a teacher.
The school year is almost over, and soon students will be heading off to summer vacation. But how about teachers?
Teachers are expected to start getting paid in the summer too- or at least that’s what we’ve been told. However, some believe there may not be enough money for this extra pay out of pocket if all schools do it by themselves.
So now I want you to think back on your child’s teacher from last school year – did they get paid in the summer?
Summer is here, and it’s time for teachers to ask “do I get paid in the summer?”
The answer depends on your state. The following are guidelines for what teachers should expect from their employer during the summer break as well as tips to maximize their paychecks.
What is the average salary for a teacher?
The average salary for a teacher varies depending on the country, level of education, and years of experience. However, a teacher’s salary is typically lower than other professions with similar levels of education and experience.
This is the unfortunate truth for the teaching profession. Truly I believe teachers deserve to be paid higher as they are guiding our future generations.
On average, the national classroom teacher salary was $65,090 for the 2021-21 school year, according to the National Education Association.
This varies depending on the factors mentioned above, such as degree attained and experience level.
average salary for a teacher Examples
Using the same data from NEA, let’s look at some examples.
For example, the average teacher salary in California is $84,531 per year, which California ranks 2nd highest for average teacher pay among 50 states. Illinois starting salary is $68,083 and ranks #12 in the nation.
Whereas, Arizona’s teachers survive on a starting salary of $50,782 ranking #26 in the nation. In Colorado, the average starting salary for teachers is a pitiful $35,292 ranking #48 in the nation.
Do teachers get paid in the summer?
There is no one answer to this question because teacher salaries can vary depending on the state or country in which they work. In some cases, teachers may get paid during the summer months, while in other cases they may not.
Most teachers in the United States are paid over a 12-month period.
During that time, they work 10 months and receive a paycheck for those 10 months. For the other two months, they do not get paid since they’re on summer vacation. However, there is an option to have a 12-month pay cycle where teachers are paid all year long.
Alternatively, some teachers choose to have a 10-month pay cycle where they only receive paychecks during school hours. This can be difficult because budgeting is hard when you’re only getting paid during certain times of the year. You’ll likely spend more money than you make during those eight weeks of summer vacation!
The 12-month pay structure is an option for any teacher that wants to collect their salary all year long. It is important to note that this alternative might come with less money per month, but it spreads out the income evenly throughout the year. Teachers should schedule their pay dates around the year so they make a consistent amount of money throughout – more on that shortly.
Teachers need to be careful when structuring their pay dates during the summer because they’ll likely spend more in that time period. It is important to understand how your pay is structured so you can plan accordingly.
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If so, proofreading could be a perfect fit for you, just like it’s been for countless of readers! Learn how you can create a freelance business as a proofreader.
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How many weeks do teachers get off?
Teachers in the United States typically get a total of around 13 weeks off over the course of the entire school year. The summer break is typically six to eight weeks long, and most teachers use their winter break and spring break to take some time off as well.
What do teachers do during the summer?
During the summer, teachers have a lot of time on their hands compared to the school year. They can take up new hobbies or just relax and enjoy the break!
Teachers often take a summer break to do things they enjoy. They might go traveling, spend time with their family and friends, or just relax by the pool.
Find 17 more ideas on what teachers do in the summer.
What do teachers do in the summer for money?
Teachers typically either work in the summer or take a break without working.
Depending on their profession and geographical location, some teachers will find jobs during the summer while others will not. Some may also teach for a summer school or choose from one of the ideas below.
What are some ways to maximize income during the summer months?
There are a few different ways to make the most of your income during the summer months.
First of all, many teachers find that this is the best time to enjoy a getaway from the school system. They want to have their downtime, decompress, and relax.
Financially speaking, you must be prepared with your budget to make the most of your paychecks.
Plan ahead
Depending on how you opt to get paid during the summers is important. If you choose the larger paychecks over 10 months, then you need a plan for money when your checks stop for the break. If you keep your pay consistent throughout the year, then you may want to work on cutting back on certain expenses since you have more time over the summer.
Teachers can have the same schedule as their children. This gives them a chance to spend more time with them and see them in a different environment than at school.
Many times, teachers are not going to complain about a summer schedule that has flexibility and is similar to those of their kids. They know that they need to arrange ahead and structure their schedule correctly in order to take advantage of the time they have outside of work.
Most teachers put in a lot of hours, but it’s worth what they get out of it because they enjoy teaching and being with children.
Have a money saving goal in place
This is especially true if you do not receive paychecks during the summer. You need to have money saved up to cover any summer expenses.
A great idea is to create a summer savings account to accrue funds for when school breaks for the session. This choice allows teachers to save money that will be automatically deducted from their checks throughout the year and deposited into a different account, which will earn interest.
In order to make this work, it is important that teachers choose banks that are not convenient and do not offer online access as the temptation may be too great and cause unwanted withdrawals from the fund.
Understand your work life balance
Teachers work long hours throughout the week. The statistics vary on exactly how many hours. However, there is a consensus the number of hours has increased since 2020 (source).
For a teacher, their working hours include school-related activities like conferences and staff meetings, which can include teaching extracurricular programs like club soccer or lesson planning for new teachers. Oh, and don’t forget their main focus is to teach our children.
While it is important to maximize income during the summer months, it is also important to find a job that does not require so much time and energy. A summer job can be more of a lifestyle choice than just an employment opportunity. A summer job can be physically draining and require you to work long hours and to live with the same mindset year-round. Some jobs are easier during the school year due to shorter days, fewer students, or less paperwork.
For others, their time freedom is more important than living on a tight budget.
How can teachers make extra money during the summer?
Teaching jobs are plentiful during the summer months when kids are home from school.
Also, this may be a great time to invest in furthering your education, garner new skills to change industries, or start a side hustle.
Many teachers take on a side job during the summer to make some extra money. This is especially true for newer teachers looking to pay off student loan debt. The most common option is to become a private tutor, but there are plenty of other ideas.
There are many different ways for teachers to make extra cash during the summer. So, let’s get you some extra cash ideas!
Idea #1 – Get paid to tutor students over the summer
Private tutors are the most common side job for teachers. If you’re already a great teacher, you’ll have no trouble getting referrals and growing those classes.
You can also look into online tutoring, which has exploded in popularity recently. Tutoring is a flexible summer job for teachers who want to keep their skills sharp.
Here are some places you can find work as a teacher: Skooli, TutorMe, Aim-for-A Tutoring, and more.
You could make up to $50 an hour tutoring students. There are also plenty of summer job opportunities for teachers who want to stay connected with their students during the summer.
Tutoring is a great way to make extra money for teachers year-round.
Idea #2 – Take on a part-time job
If you’re looking for ways to make extra cash during the summer, consider taking on a part-time job. There are many opportunities available, and the pay is usually good.
As an example, a teacher who has been teaching for 14 years, every summer he takes on an additional job to make up for the low pay he receives during the school year. He has money taken out of his summer pay every week to supplement it during the school year months.
There are many opportunities in retail, restaurants, construction, and other fields. There is a great need for part-time people making wages over $17 an hour.
Idea #3 – Teach summer classes
Another popular option for teachers who want to make extra money is teaching summer classes.
Many parents are worried about their kids losing previously learned information and practice the entire summer to improve retention rates. In addition, many school districts offer summer classes to help students retain information.
Check with your local school district to see options.
Idea #4 – Search for seasonal work
As the school year comes to a close, many teachers are looking for ways to make money during the summer. Fortunately, there are a number of options available with seasonal jobs starting to come available. In addition, many are outdoors and you can enjoy the sun and some fresh air!
Teachers can also look into manual labor-type jobs or summer camps for income in the summertime.
Most of these types of jobs start hiring during the slow winter months. So, make sure to apply early and have something set up before the school term ends.
This is great for someone who wants an early morning job!
Idea # 5 – Professional Development
The concept of being willing to learn is important for teachers. It’s one reason why taking on professional development courses during the summer can be so valuable. Working through professional development courses during the summer can also give you an edge when it comes time to look for a new teaching job.
However, this is how you earn a higher salary year-round.
Teachers can increase their earnings by holding a master’s or doctoral degree. Some states pay teachers with master’s and doctoral degrees higher wages than others. This is how you increase your hourly wage.
Idea #6 – Sell Lesson Plans
Yep, this one is becoming even more and more popular!
Why should you let all of your great lesson plans just sit aside during the summer? Start hustling and sell your lesson plans for the cash.
Etsy is a great place to start.
Idea #7 – Start a Side Hustle
What is a side hustle? It’s something that you can do to supplement or replace the income from your main job, like running an eBay shop during the summer when you’re not teaching. Or even your own blog?
Think about the hobbies you enjoy and see if you can make money by doing something you enjoy. That is a great place to start!
Here are great ways to make money on the side:
It is possible to make more money on your business than you make more money in your current job or career.
Idea # 8 – Learn to Make Money From Stocks
If you’re interested in learning how to trade stocks, this is the perfect place to start.
One former assistant principal, Teri Ijeoma, changed her life when she left her job as an educator and become an active trader.
What is a day trader or swing trader? It’s someone who trades stocks on the stock market but knows when to get out.
You can also make money as a swing trader by taking advantage of fluctuations in stocks. For example, you can make money as a swing trader by buying stocks at the low point and selling them at the high point.
If you are interested in swing trading stocks, you must get an investing education. Most of my fellow traders are former teachers after taking the Trade and Travel investing course.
Idea #9 – Work at a Summer Camp or other Child Care Jobs
There are many ways for teachers to make extra money during the summer and have fun by working as camp counselors.
There are also many child-related jobs that need great employees when kids are home from school due to summer break. Some parents will keep their children busy throughout the summer, but others are worried about what they have learned in school and may soon forget.
Also, many families are looking for nannies while their children are out of school. Parents want teachers to play a role in helping them with school retention throughout the summer, and not be behind in August or September.
Most of these jobs will pay higher because they prefer a licensed teacher.
Idea #10 – Offer to give people rides or any personal assistant help
You can make money by giving people rides in your car. For example, you could offer to pick up strangers at the airport and take them to their hotel or host a taxi service.
You could be a personal assistant and help with chores or errands around the house.
People are always looking to outsource things and you could easily make some extra side money.
This is a good list of ideas for teachers to make money during the summer.
What are some tips for budgeting during the summer months?
Summertime is a great opportunity to relax and take a break from work, but it can also be a time to save money and prepare for the next school year. Many educators receive a paycheck during the school year but don’t have regular income over the summer. This makes it important to budget throughout the year, so you can have enough money saved up when school starts again.
Budgeting can be a stressful process.
However, budgeting should not be about cutting corners or reducing spending, but rather about creating financial freedom for the long term. The tips in this article are actionable and will help attain financial independence for the future.
Some tips for budgeting during the summer months include setting a budget for the summer months, creating a savings goal, and cutting back on expenses.
It is important to remember that many people are traveling and spending money during the summer months, so it’s important to be smart with your budgeting decisions. By following these tips, you can make sure that you have enough money saved up when school starts again!
Tip #1 – Create a budget for the summer months
Budgeting during the summer months can be difficult for those without consistent pay. However, it is possible to do with some creativity and planning. Here are a few tips:
Create a budget for $500 less a month than your paycheck. This may seem challenging, but it is possible if you make cuts in specific areas.
Save that $500 for your current saving goals.
Look at expenses that you don’t care to spend money on and cut them out.
House hack your vacation spots by house-sitting for someone else!
Be more realistic about how much you spend during the summer.
Make sure you are reaching your long-term goals.
Budgeting can be made easier with the help of planning ahead and keeping a buffer of money available.
Tip #2 – Save money during your summer break
There are many ways to save money during your summer break.
Saving money can be difficult, especially during the summer when you may have more free time.
It is important to organize your finances and set a budget before spending so that you are not surprised.
It is important to allocate the money saved into long-term goals or savings accounts so that you can reach them one day!
You can start by taking advantage of many of our popular money saving challenges:
Tip #3 – Find Ways to Make Extra Cash
There are many different ways to make extra cash during the summer months. In fact, we detailed many options above.
This is the perfect time to make extra money. As we outlined already, many teachers are severely underpaid for the work and dedication they put in. So, you might as well find a way to make extra money now and then get back to what you love during the winter months.
Many teachers find other ways to make extra money during the summer. Some work in summer school, while others take on private students. Still, others find work in professional development courses. Whatever route you decide to take, be sure to keep learning and growing as a teacher. That’s the best way to maintain your edge in the competitive job market.
Tip #4 – Find free fun!
Another tip is to make a list of summer activities that are affordable and fun.
Here is a little secret… you do not need to spend a fortune in order to have fun. In fact, there are plenty of things to do with no money!
Stretch your budget by picking a few higher ticket items and supplement the rest with free fun!
How do you spend summer break?
Most teachers would agree that the summer break is necessary to avoid burnout during the first six weeks of school. The summer break also gives students and teachers a chance to recharge their batteries and start the new school year fresh.
The teachers I know usually spend their summer break going on trips with my family and friends or relaxing at home. As well as catching up on home projects or reading books and watching movies during free time.
With Your Teacher Pay Structure, What are Your Next Steps?
There are a lot of different ways to spend summer break! Some people choose to travel, others stay home and relax. Still, others take on summer jobs for teachers or side hustles to make some extra money.
And then there are the teachers – they often use their summer break to catch up on work or prepare for the upcoming school year.
No matter how you choose to spend your summer break, it’s important to enjoy it! Take some time to relax and recharge, but also make sure to stay productive and get things done.
That way, you’ll be ready for whatever comes your way when fall arrives.
Know someone else that needs this, too? Then, please share!!
By Evlin DuBose · Thursday, 1 June 2023
· 3 min read
Fact Checked
Advertiser disclosure
Last month, the Reserve Bank defied expectations with an additional 0.25% hike to the official cash rate. Lenders soon jumped at the opportunity to lift their interest offers on variable home loans – with some outrunning even the RBA with 35 – 50 basis point jumps.
Cashback offers for refinancers have dried up while even introductory rates saw significant rises. Seems lenders are no longer concerned about being competitive: now, it’s all about recouping their costs.
As a result, the average variable interest rate for owner-occupiers making P&I repayments sits at 6.31% p.a. in the Mozo database. Oh, Alexander wept.
Yet there is some good news buoying the sinking house prices: we may be nearing the next rate hold, with many experts predicting a steady cash rate in June and July. While the August RBA meeting remains ‘live’, this could smooth the way for buyers ready to jump into an already warm winter property market.
So have the recent changes reshuffled lenders for June? Let’s break down the numbers.
Fixed rates home loans still point north, though longer terms may wind back
Fixed rate home loans remain hard sells in a tight market, with some shorter terms climbing point by point in the Mozo database. However, some lenders even made significant cuts. Four and five year terms in particular inched backwards, suggesting banks expect rates to smooth over in the long run. Given how high variable rates have soared, some of these offers may even look competitive.
Indeed, locking in your interest rate to ride out the remainder of the rate cycle could be a good way of guaranteeing your repayments for a few years. But with inflation expected to slow by mid-2024, variable rates may unwind sooner than later.
At the time of writing, these are the average fixed rates for owner occupiers with an 80% LVR and a $400,000 loan:
1-year: 5.75% p.a.
2-year: 5.83% p.a.
3-year: 5.87% p.a.
4-year: 6.21% p.a.
5-year: 6.27% p.a.
Recent home loan rate movements
Sweeping changes hit the home loan market last month. Here are some of the most eye-watering trends.
Lenders funded by Adelaide and Bendigo Bank, such as Tic:Toc, Mortgage House, Yard, and Qantas Money hit some of their variable rates with increases of 0.30% or more.
Commonwealth Bank, Westpac, and Suncorp hiked their packaged and welcome rates.
Cashback for refinancers, no more. Commbank, Westpac, NAB, Suncorp, and ING will officially step back their cashback offers this winter.
All makes the graph more impressive!
Current lowest home loan rates
While offers below 5% are few and far between, there are still some sharp ones available in the Mozo database. Here are the lowest variable and fixed mortgage rates (P&I, LVR <80%) among lenders we track.
Lowest variable rates — Mozo database (1 June 2023)^^
Lender
Loan
Variable rate
The Mutual Bank
Special Budget Home Loan
4.94% p.a. (4.95% p.a. comparison rate*)
Community First Bank
Basic Variable Home Loan Special
4.95% p.a. (5.00% p.a. comparison rate*)
Unloan
Unloan Variable
4.99% p.a. (4.90% p.a. comparison rate*)
Homeloans360
Owner Variable Home Loan
5.04% p.a. (5.04% p.a. comparison rate*)
Lowest and average fixed rates — Mozo database (1 June 2023)^^
Term
Rate leader
Fixed rate
1-year
Homestar
4.99% p.a. (5.77% p.a. comparison rate*)
2-year
Australian Mutual Bank
5.23% p.a. (5.92% p.a. comparison rate*)
3-year
The Capricornian
4.99% p.a. (6.29% p.a. comparison rate*)
4-year
HSBC
5.29% p.a. (5.83%% p.a. comparison rate*)
5-year
HSBC
5.29% p.a. (5.81%% p.a. comparison rate*)
The above are the lowest rates in our database for borrowers with an LVR < 80%. More competitive rates are available for borrowers with lower loan-to-value ratios.
If you’re considering buying property or refinancing your existing mortgage, use Mozo’s home loan comparison table to examine lenders side-by-side, or use our refinance calculator to see how much you could save.
^^Interest rates are based on an owner occupier making principal and interest repayments on a $400,000 loan with an 80% LVR. Check out our dedicated Australian home loan statistics page for more information on average mortgage rates.
Compare home loans – last updated 3 June 2023
Search promoted home loans below or do a full Mozo database search . Advertiser disclosure
Express Home Loan
Owner Occupier, Principal & Interest, LVR <90%
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5.62% p.a.
Get fast online approval from the award-winning Bendigo Bank Express Home Loan. Multiple offset accounts and redraw available. 100% offset on variable rate loans and partial offset on fixed rate. Flexible repayment options. New home loans only.
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Express Home Loan
Get fast online approval from the award-winning Bendigo Bank Express Home Loan. Multiple offset accounts and redraw available. 100% offset on variable rate loans and partial offset on fixed rate. Flexible repayment options. New home loans only.
interest rate
5.47% p.a.variable
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5.62% p.a.
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5.47% p.a.variable
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5.62% p.a.
Upfront fees
$384
Ongoing fees
$10.00 monthly
Discharge Fee
$350.00
Extra repayments
yes – free
Redraw facility
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Offset account
yes
Maximum loan to value ratio
90.00%
minimum borrowing amount
$5,000
maximum borrowing amount
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type of mortgage
Variable
Repayment types
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Owner Occupier
Repayment options
Weekly, Fortnightly, Monthly
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Neat Home Loan
Owner Occupier, Principal & Interest, LVR <60%
interest rate
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Initial monthly repayment
5.49% p.a.variable
5.51% p.a.
Competitively-priced variable rate loan. Ideal for owner occupiers and investors. No service fees to pay. Make free extra repayments and redraws. Flexible repayment schedule available.
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Neat Home Loan
Competitively-priced variable rate loan. Ideal for owner occupiers and investors. No service fees to pay. Make free extra repayments and redraws. Flexible repayment schedule available.
interest rate
5.49% p.a.variable
comparison rate
5.51% p.a.
interest rate
5.49% p.a.variable
comparison rate
5.51% p.a.
Upfront fees
$250
Ongoing fees
$0.00
Discharge Fee
$300.00
Extra repayments
yes – free
Redraw facility
yes – free
Offset account
no
Maximum loan to value ratio
60.00%
minimum borrowing amount
$80,000
maximum borrowing amount
$5,000,000
type of mortgage
Variable
Repayment types
Principal & Interest
Availability
Owner Occupier
Repayment options
Weekly, Fortnightly, Monthly
Special Offers
–
Special Real Deal Home Loan
Owner Occupier, Principal & Interest, LVR <80%
interest rate
comparison rate
Initial monthly repayment
5.49% p.a.variable
5.53% p.a.
No application or service fees. Flexibility to choose your repayment schedule ( weekly, fortnightly or monthly). Refinance and get up to $3,000 cashback. $2,000 cashback on loans ≥$250K; bonus $1,000 cashback on loans ≥$500K. Limited time offers extended. T&Cs apply.
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Special Real Deal Home Loan
No application or service fees. Flexibility to choose your repayment schedule ( weekly, fortnightly or monthly). Refinance and get up to $3,000 cashback. $2,000 cashback on loans ≥$250K; bonus $1,000 cashback on loans ≥$500K. Limited time offers extended. T&Cs apply.
interest rate
5.49% p.a.variable
comparison rate
5.53% p.a.
interest rate
5.49% p.a.variable
comparison rate
5.53% p.a.
Upfront fees
$595
Ongoing fees
$0.00
Discharge Fee
$0.00
Extra repayments
yes – free
Redraw facility
yes – fees apply
Offset account
no
Maximum loan to value ratio
80.00%
minimum borrowing amount
$150,000
maximum borrowing amount
–
type of mortgage
Variable
Repayment types
Principal & Interest
Availability
Owner Occupier
Repayment options
Weekly, Fortnightly, Monthly
Special Offers
$3k cashback when you refinance your home loan, >$500k, LVR 90%, apply by 30 June & funded by 31 August 2023. Receive $2k cashback for loans> $250k. First home buyers receive $1k cashback, apply by 30 June & funded by 31 August 2023, LVR 95%,>$500k.
Offset Home Loan
Package, Owner Occupier, LVR<60%, Principal & Interest
interest rate
comparison rate
Initial monthly repayment
5.54% p.a.variable
5.79% p.a.
Ability to open up to 10 offset accounts per loan account. Fast online application. Linked Debit Mastercard® with fee-free access at ATMs across Australia. Package a credit card with your home loan and the annual card fee will be waived (T&Cs apply). 40% deposit required.
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Offset Home Loan
Ability to open up to 10 offset accounts per loan account. Fast online application. Linked Debit Mastercard® with fee-free access at ATMs across Australia. Package a credit card with your home loan and the annual card fee will be waived (T&Cs apply). 40% deposit required.
interest rate
5.54% p.a.variable
comparison rate
5.79% p.a.
interest rate
5.54% p.a.variable
comparison rate
5.79% p.a.
Upfront fees
$350
Ongoing fees
$248.00 yearly
Discharge Fee
$400.00
Extra repayments
yes – free
Redraw facility
yes – free
Offset account
yes
Maximum loan to value ratio
60.00%
minimum borrowing amount
$150,000
maximum borrowing amount
$10,000,000
type of mortgage
Variable
Repayment types
Principal & Interest
Availability
Owner Occupier
Repayment options
Monthly
Special Offers
–
Solar Home Loan
Owner Occupier, Principal & Interest, LVR <90%
interest rate
comparison rate
Initial monthly repayment
5.39% p.a.variable for 60 months and then 6.23% p.a.variable
5.98% p.a.
Enjoy a lower interest rate for the first 5 years if you have solar panels or plan to get them. Get up to a 30 year loan term. Unlimited additional repayments. Option offset sub-account. No ongoing fees to pay. Free unlimited redraws.
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Solar Home Loan
Enjoy a lower interest rate for the first 5 years if you have solar panels or plan to get them. Get up to a 30 year loan term. Unlimited additional repayments. Option offset sub-account. No ongoing fees to pay. Free unlimited redraws.
interest rate
5.39% p.a.variable for 60 months and then 6.23% p.a.variable
comparison rate
5.98% p.a.
interest rate
5.39% p.a.variable for 60 months and then 6.23% p.a.variable
comparison rate
5.98% p.a.
Upfront fees
$530
Ongoing fees
$0.00
Discharge Fee
$300.00
Extra repayments
yes – free
Redraw facility
yes – free
Offset account
yes
Maximum loan to value ratio
90.00%
minimum borrowing amount
$50,000
maximum borrowing amount
$1,500,000
type of mortgage
Variable
Repayment types
Principal & Interest
Availability
Owner Occupier
Repayment options
Weekly, Fortnightly, Monthly
Special Offers
–
*
WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.
**
Initial monthly repayment figures are estimates only, based on the advertised rate. You can change the loan amount and term in the input boxes at the top of this table. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.
^See information about the Mozo Experts Choice Home Loan Awards
Mozo provides general product information. We don’t consider your personal objectives, financial situation or needs and we aren’t recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.
While we pride ourselves on covering a wide range of products, we don’t cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.
This post may contain affiliate links. That means if you click and buy, I may receive a small commission. Please see my full disclosure policy for details.
Last updated – August 31, 2022
I’ve shared a lot of great tips to help your kids learn spending vs. saving and even about credit and debit. There is of course, more that they need to know.
The principles are the same as with creating any budget at all. The difference is in the amount of money the make and the types of expenses they will have. These differ as your child grows.
When your teenager is first creating a budget, that may be a term that is difficult for them to really fully understand. You might call it a Spending Plan instead. By calling it something other than a budget, it can make it take a positive stand. Now, your teen knows how they get to spend their money instead of a piece of paper telling them what to do. Spending Plan is much more positive than budget.
WHY THEY NEED A BUDGET
There are lot of principles your teen needs to learn when it comes to finances. Their budget, or spending plan, helps set them up for success.
The budget is their roadmap to financial health. Just like they see a doctor and dentist to make sure that they are physically healthy, their budget does the same for their finances.
Help them plan for the unexpected. What will they do if their car breaks down? They need to learn how to be prepared for the curve balls life will certainly throw their way.
How to spend wisely. When spending is documented, it gives teens a better view of where they spend money. They can easily identify the areas where they are spending too much money. A budget allows them to see if they are spending more than they are making and then make adjustments according.y.
Plan ahead. There are expenses which come up only once or twice a year. For example, college books are purchased only a couple of times a year. Paying for these needs to be budgeted all year long. This way, when it is time to buy them, the money is set aside.
Develop a healthy relationship with money. If you look your own views of money, there may be things you do not want your children to do. You might be obsessed with it or fear it. Whatever your views, you want to make sure your teen has a healthy relationship with his or her money.
HOW TO GET STARTED
Making a budget or spending plan is relatively straight forward. Their budget will be a projection of the income they will receive and the expenses they will have. They will be able to use this budget to plan ahead and know which expenses they need to cover each and every month.
To being, you can use a paper and pencil. You can also download our free Teen Budget Worksheet if you would like. You might even want to use a spreadsheet. Any way will work, as long as it is something your teen feel comfortable using.
Have him or her look back at the past 2 – 3 months of income. This will help them determine how much income to include on the budget. The amount to put on the form will be the monthly average.
For example, if payday happens every 2 weeks, total up 6 – 7 paychecks and divide it by 3. That will provide you with the average income every month. This will be recorded on the budget as income.
Make sure all sources of income are included in this total. Some to consider include:
Allowance
Wages
Gifts
Interest/Dividends
Tips
Bonus
Next, have your teen look over the past 3 months of spending. Add up all of the various amounts paid and divide by 3. This will be the average amount for each expense.
CATEGORIES FOR THE BUDGET
A teen’s budget will look much differently than one for an adult. The categories will be different than those you have on your own, as expenses change as you take on more responsibilities. If you are using our free teen budget worksheet, then you will see many categories are already included for you.
If you wish to make your own budget, you can do so, make sure that
Dark pools, sometimes referred to as “dark pools of liquidity,” are a type of alternative trading system used by large institutional investors to which the investing public does not have access.
Living up to their “dark” name, these pools have no public transparency by design. Institutional investors, such as mutual fund managers, pension funds, and hedge funds, use dark pool trading to buy and sell large blocks of securities without moving the larger markets until the trade is executed.
Who Runs Dark Pools?
Investment banks typically run dark pools, but some other institutions run them as well, including large broker-dealers, agency brokers, and even some public exchanges. Some trading platforms, where individual investors buy and sell stocks, also use dark pools to execute trades using a payment for order flow.
Recommended: What Is a Market Maker?
The role of dark pools in the market varies over time. Consider this: At the start of 2021, it comprised half of trades in a single day, but a few months later that share had fallen to 12.91% of U.S. equity volume.
Because trades in a dark pool aren’t reflected in the prices on a public exchange, participants in a dark pool trade based on the prices offered on a public exchange, using the midpoint of the National Best Bid and Offer (NBBO) to set prices.
Why Institutions Use Dark Pools
Large, institutional investors such as hedge funds, may turn to dark pools to get a better price when buying or selling large blocks of a single stock. That’s because of the way that large trades impact the public markets.
If a mutual fund manager, for example, wants to sell a million shares of a given stock because it’s underperforming or no longer fits their strategy, they’d need to use a floor trader to unload the position on a public exchange. Selling all those shares could impact the price they get, driving down the VWAP (volume weighted average price) of the total sale.
To avoid driving down the price, the manager might spread out the trade over several days. But if other traders identify the institution or the fund that’s selling they could also sell, potentially driving down the price even further.
The same risk exists when buying large blocks of a given security on a public market, as the purchase itself can attract attention and drive up the price.
Recommended: How to Identify an Underperforming Stock
New Risks
The risks of attracting attention from other traders have intensified with the rise of algorithmic trading and high-frequency trading (HFT). These strategies employ sophisticated computer programs to make big trades just ahead of other investors. HFT programs flood public exchanges with buy or sell orders to front-run giant block trades, and force the fund manager in the above example to get a worse price on their trade.
But with a dark trade, that institutional investor can sell a million shares of a stock without the public finding out because dark pool participants don’t disclose their trades to participants on the exchange. The details of trades within a dark pool only show up after a delay on the consolidated tape – the electronic system that collates price and volume data from major securities exchanges.
There are other advantages for an institutional trader. Because the buyers and sellers in a dark pool are other institutional traders, a fund manager looking to sell a million shares of a given stock is more likely to find buyers who are in the market for a million shares or more. On a public exchange, that million-share sale will likely need to be broken up into dozens, if not hundreds of trades.
Recommended: Institutional Investors vs. Retail Investors
Criticism of Dark Pools
As dark pools have grown in prominence, they’ve attracted criticism from many directions, and scrutiny from regulators. For instance, the lack of transparency in dark pools and the exclusivity of their clientele makes some investors uneasy. Some even believe that the pools give large investors an unfair advantage over smaller investors, who buy and sell almost exclusively on public exchanges.
The Takeaway
As discussed, dark pools are sometimes referred to as “dark pools of liquidity,” and are a type of alternative trading system used by large institutional investors to which the investing public does not have access. They’re typically run and utilized by large investment banks.
Given the nature of dark pools, they attracted criticism from some due to the lack of transparency, and the exclusivity of their clientele. While the typical investor may not interact with a dark pool, knowing the ins and outs may be helpful background knowledge.
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SoFi Invest® The information provided is not meant to provide investment or financial advice. Also, past performance is no guarantee of future results. Investment decisions should be based on an individual’s specific financial needs, goals, and risk profile. SoFi can’t guarantee future financial performance. Advisory services offered through SoFi Wealth, LLC. SoFi Securities, LLC, member FINRA / SIPC . SoFi Invest refers to the three investment and trading platforms operated by Social Finance, Inc. and its affiliates (described below). Individual customer accounts may be subject to the terms applicable to one or more of the platforms below. 1) Automated Investing—The Automated Investing platform is owned by SoFi Wealth LLC, an SEC registered investment advisor (“Sofi Wealth“). Brokerage services are provided to SoFi Wealth LLC by SoFi Securities LLC, an affiliated SEC registered broker dealer and member FINRA/SIPC, (“Sofi Securities).
2) Active Investing—The Active Investing platform is owned by SoFi Securities LLC. Clearing and custody of all securities are provided by APEX Clearing Corporation.
3) Cryptocurrency is offered by SoFi Digital Assets, LLC, a FinCEN registered Money Service Business.
For additional disclosures related to the SoFi Invest platforms described above, including state licensure of Sofi Digital Assets, LLC, please visit www.sofi.com/legal.
Neither the Investment Advisor Representatives of SoFi Wealth, nor the Registered Representatives of SoFi Securities are compensated for the sale of any product or service sold through any SoFi Invest platform. Information related to lending products contained herein should not be construed as an offer or prequalification for any loan product offered by SoFi Bank, N.A. Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances. Claw Promotion: Customer must fund their Active Invest account with at least $10 within 30 days of opening the account. Probability of customer receiving $1,000 is 0.028%. See full terms and conditions. SOIN0623002
This post may contain affiliate links. That means if you click and buy, I may receive a small commission. Please see my full disclosure policy for details.
Last updated – April 18, 2023
Can you use manufacturer coupons on Amazon? Read on to find out.
Most of us look to save as much money as possible while still trying to enjoy the finer things in life. It’s a good reason millions of people shop on Amazon every day. It has some of the best, high-quality products at generally reasonable prices. But as we all know, these prices can get even lower by using coupons.
Benjamin Franklin once said, “Be industrious and frugal, and you will be rich.” Not sure that using coupons will make you rich, but they can save you a great deal of money.
What you do with those savings is what matters. You could direct it towards getting out of debt or use it to buy more stuff. The choice is yours.
So, can you use manufacturer coupons on Amazon?
Does Amazon Accept Manufacturer Coupons?
Unfortunately, the answer to this question is NO! Amazon does NOT accept manufacturer coupons, physical coupons, or any coupons from competitors.
Unlike other big-brand stores such as Walmart and Target or even your local supermarket, Amazon does not accept coupons in-store and does not accept any competitor coupons.
This is probably because Amazon already offers extremely discounted prices on most products, and accepting competing coupons might not be feasible.
That does not mean you can’t use coupons on Amazon at all because you can.
Also see: Where can I find manufacturer’s coupons?
What Kind of Coupons Can You Use on Amazon?
Like any good retailer, Amazon does offer coupons for customers looking to save money when online shopping. There’s an actual page dedicated to just coupons alone.
On this page, you can find all kinds of Amazon coupons, with the most popular coupons appearing at the top of the page.
You can also filter through all the coupons on offer to find those that apply to your specific needs. You can even filter by category to find coupons for specific products.
Here’s a video showing you how to find and use Amazon coupons.
Also see: Best coupons apps to save money
Where Can You Find Amazon Coupons?
Simply navigate to the Amazon Coupons Page, where you can find all the coupons on offer. While this page is the go-to source for Amazon coupons, occasionally, you can find additional coupons and savings with “Amazon Daily Deals” as well.
Apart from the usual coupons on various products, other types of coupons can be found on Amazon. These include Amazon Pantry coupons as well as Amazon Subscribe & Save coupons. These coupons give you up to 10% off discounts and even free shipping for your daily purchases on the platform.
How Much Money Can You Save With Amazon Coupons?
While there is no specifically guaranteed amount of money you can save with Amazon coupons, they work like most other coupons. That means the savings you stand to make will be indicated on the coupon you choose when applied to the specific product as dictated by its terms and conditions.
As far as numbers go, you save anywhere between 5% and 50%, depending on the offer. These massive coupon savings are often very popular during big sales events like Black Friday.
Can You Stack Amazon Coupons?
Yes, you can stack coupons on Amazon, even on already discounted products. All you have to do is head to the Amazon Coupons Page and find the coupon for your desired product.
Now, if the product already has a discount on the platform, say a 10% discount, and you find a 5% discount on the same, you can clip that coupon and stack it onto the discounted product to get a 15% discount. However, this doesn’t happen very often. You can get lucky by keeping an eye on Amazon Daily Deals.
So, can you use manufacturer coupons on Amazon? No. But you can find wonderful coupon offerings on Amazon’s Coupon Page. The even better news is that these coupons apply across a wide range of the most popular product categories, so there’s a good chance that you can save on that product you have been meaning to buy.
This post may contain affiliate links, which helps us to continue providing relevant content and we receive a small commission at no cost to you. As an Amazon Associate, I earn from qualifying purchases. Please read the full disclosure here.
32k salary is a solid hourly wage; above most minimum hourly wage jobs.
For most people, an entry-level job would be pay just over $32,000 a year. The question that remains is can you make a living off $32k a year.
The median household income is $68,703 in 2019 and increased by 6.8% from the previous year (source). Think of it as a bell curve with $68K at the top; the median means half of the population makes less than that and half makes more money.
The average income in the U.S. is $48,672 for a 40-hour workweek; that is an increase of 4% from the previous year (source). That means if you take everyone’s income and divided the money out evenly between all of the people.
But, the question remains can you truly live off 32,000 per year in today’s society since it is well below both the average and median household incomes. The question you want to ask all of your friends is $32000 per year a good salary.
In this post, we are going to dive into everything that you need to know about a $32000 salary including hourly pay and a sample budget on how to spend and save your money.
These key facts will help you with money management and learn how much per hour $32k is as well as what you make per month, weekly, and biweekly.
Just like with any paycheck, it seems like money quickly goes out of your account to cover all of your bills and expenses, and you are left with a very small amount remaining. You may be disappointed that you were not able to reach your financial goals and you are left wondering…
Can I make a living on this salary?
$32000 a year is How Much an Hour?
When jumping from an hourly job to a salary for the first time, it is helpful to know how much is 32k a year hourly. That way you can decide whether or not the job is worthwhile for you.
For our calculations to figure out how much is 32K salary hourly, we used the average five working days of 40 hours a week.
$32000 a year is $15.38 per hour
Let’s breakdown how that 32000 salary to hourly number is calculated.
Typically, the average workweek is 40 hours and you can work 52 weeks a year. Take 40 hours times 52 weeks and that equals 2,080 working hours. Then, divide the yearly salary of $32000 by 2,080 working hours and the result is $15.38 per hour.
32000 salary / 2080 hours = $15.38 per hour
Just above $15 an hour.
That number is the gross hourly income before taxes, insurance, 401K, or anything else is taken out. Net income is how much you deposit into your bank account.
You must check with your employer on how they plan to pay you. For those on salary, typically companies pay on a monthly, semi-monthly, biweekly, or weekly basis.
What If I Increased My Salary?
Just an interesting note… if you were to increase your annual salary by $11K to $43K per year, it would increase your hourly wage to over $20 an hour – a difference of $5.29 per hour.
To break it down – 43k a year is how much an hour = $20.67
That difference will help you fund your savings account; just remember every dollar adds up.
How Much is $32K salary Per Month?
On average, the monthly amount would be $2,667.
Annual Salary of $32,000 ÷ 12 months = $2,667 per month
This is how much you make a month if you get paid 32000 a year.
$32k a year is how much a week?
This is a great number to know! How much do I make each week? When I roll out of bed and do my job of $32k salary a year, how much can I expect to make at the end of the week for my effort?
Once again, the assumption is 40 hours worked.
Annual Salary of$32000/52 weeks = $615 per week.
$32000 a year is how much biweekly?
For this calculation, take the average weekly pay of $615 and double it.
This depends on how many hours you work in a day. For this example, we are going to use an eight-hour workday.
8 hours x 52 weeks = 260 working days
Annual Salary of$32000 / 260 working days = $123 per day
If you work a 10 hour day on 208 days throughout the year, you make $153 per day.
$32000 Salary is…
$32000 – Full Time
Total Income
Yearly Salary (52 weeks)
$32,000
Monthly Wage
$2,667
Weekly Salary (40 Hours)
$615
Bi-Weekly Wage (80 Hours)
$1,230
Daily Wage (8 Hours)
$123
Daily Wage (10 Hours)
$153
Hourly Wage
$15.38
Net Estimated Monthly Income
$2,036
Net Estimated Hourly Income
$11.75
**These are assumptions based on simple scenarios.
32k a year is how much an hour after taxes
Income taxes is one of the biggest culprits of reducing your take-home pay as well as FICA and Social Security. This is a true fact across the board with an all salary range up to $142,800.
When you make below the average household income, the amount of taxes taken out hurts your hourly wage.
Every single tax situation is different.
On the basic level, let’s assume a 12% federal tax rate and a 4% state rate. Plus a percentage is taken out for Social Security and Medicare (FICA) of 7.65%.
So, how much an hour is 32000 a year after taxes?
Gross Annual Salary: $32,000
Federal Taxes of 12%: $3,840
State Taxes of 4%: $1,280
Social Security and Medicare of 7.65%: $2,448
$32k Per Year After Taxes is $24,432.
This would be your net annual salary after taxes.
To turn that back into an hourly wage, the assumption is working 2,080 hours.
$24432 ÷ 2,080 hours = $11.75 per hour
After estimated taxes and FICA, you are netting $24,432 per year, which is $7,568 per year less than what you expect.
***This is a very high-level example and can vary greatly depending on your personal situation and potential deductions. Therefore, here is a great tool to help you figure out how much your net paycheck would be.***
In addition, if you live in a heavily taxed state like California or New York, then you have to pay way more money than somebody that lives in a no tax state like Texas or Florida. This is the debate of HCOL vs LCOL.
Thus, your yearly gross $32000 income can range from $21,872 to $25,712depending on your state income taxes.
That is why it is important to realize the impact income taxes can have on your take home pay. It is one of those things that you should acknowledge and obviously you need to pay taxes. But, it can also put a huge dent in your ability to live the lifestyle you want on a $32,000 income.
32k salary lifestyle
Every person reading this post has a different upbringing and a different belief system about money. Therefore, what would be a lavish lifestyle to one person, maybe a frugal lifestyle to another person. And there’s no wrong or right, it is what works best for you.
One of the biggest factors to consider is your cost of living.
In another post, we detailed the differences of living in an HCOL vs LCOL vs MCOL area. When you live in big cities, trying to maintain your lifestyle of $32,000 a year is going to be extremely difficult because your basic expenses, housing, transportation, food, and clothing are going to be much more expensive than you would find in a lower cost area.
To stretch your dollar further in the high cost of living area, you would have to probably live a very frugal lifestyle and prioritize where you want to spend money and where you do not. Whereas, if you live in a low cost of living area, you can afford the cost of living and maybe save more money. Thus, you have more fun spending left in your account each month.
As we noted earlier in the post, $32,000 a year is well below the average income that you would find in the United States. Thus, you have to be wise with how you spend your money.
What a $32,000 lifestyle will buy you:
If you are debt free and utilize smart money management skills, then you are able to enjoy the lifestyle you want.
You are able to rent in a decent neighborhood in LCOL.
You should be able to meet your basic expenses each and every month.
Not be able to afford many of the fun spending luxuries.
Start saving with the 200 envelope challenge.
Ability to make sure that saving money is a priority, and very possibly save $1000 in 52 weeks.
When A $32,000 Salary Will Hold you Back:
However, if you are riddled with debt or unable to break the paycheck to paycheck cycle, then living off of 32k a year is going to be pretty darn difficult.
There are two factors that will keep holding you back:
You must pay off debt and cut all fun spending and extra expenses.
Break the paycheck to paycheck cycle.
It is possible to get ahead with money!
It just comes with proper money management skills and a desire to have less stress around money. That is a winning combination regardless of your income level.
$32k Salary To Hourly
We calculated how much $32,000 a year is how much an hour with 40 hours a week. But, more than likely, you work more or fewer hours per week.
So, here is a handy calculator to figure out your exact hourly salary wage.
$32K a year Budget – Example
As always, here at Money Bliss, we focus on covering our basic expenses plus saving and giving first, and then our goal is to eliminate debt. The rest of the money leftover is left for fun spending.
If you want to know how to manage 32k salary the best, then this is a prime example for you to compare your spending.
You can compare your budget to the ideal household budget percentages.
recommended budget percentages based on $32000 a year salary:
Category
Ideal Percentages
Sample Monthly Budget
Giving
10%
$187
Savings
15-25%
$480
Housing
20-30%
$693
Utilities
4-7%
$107
Groceries
5-12%
$213
Clothing
1-4%
$16
Transportation
4-10%
$107
Medical
5-12%
$133
Life Insurance
1%
$10
Education
1-4%
$6
Personal
2-7%
$24
Recreation / Entertainment
3-8%
$60
Debts
0% – Goal
$0
Government Tax (including Income Tatumx, Social Security & Medicare)
15-25%
$631
Total Gross Monthly Income
$2,667
**In this budget, prioritization was given to basic expenses and no debt.
Is $32,000 a year a Good Salary?
As we stated earlier if you are able to make $32,000 a year, that is a low salary. You are making around or just above minimum wage.
While 32000 is a decent salary just starting out in your working years, it is a salary that you want to rapidly increase before your expenses go up or the people you provide for increase. If not, you will be left working multiple jobs to make ends meet.
However, too many times people get stuck in the lifestyle trap of trying to keep up with the Joneses, and their lifestyle desires get out of hand compared to their salary. And what they thought used to be a great salary actually is not making ends meet at this time.
This $32k salary would be considered a lower class salary. You must make each dollar count in your budget.
Check: Are you in the middle class?
In fact, this income level in the United States has enough buying power to put you in the top 95 percentile globally for per person income (source).
The question you need to ask yourself with your 32k salary is:
Am I maxed at the top of my career?
Is there more income potential?
What obstacles do I face if I want to try to increase my income?
In the future years and with possible inflation, in many modest cities a 32,000 a year is not a good salary because the cost of living is so high, whereas these are some of the cities where you can make a decent living at 32,000 per year.
If you are looking for a career change, you want to find jobs paying at least 35,000 a year.
Is 32k a good salary for a Single Person?
Simply put, you can make it work.
You can stretch your salary much further because you are only worried about your own expenses. A single person will spend much less than if you need to provide for someone else.
Learn exactly what is a good salary for a single person today.
Your living expenses and ideal budget are much less. Thus, you can live comfortably on $32000 per year.
And… most of us probably regret how much money wasted when we were single. Oh well, lesson learned.
Is 32k a good salary for a family?
Many of the same principles apply above on whether $32000 is a good salary. The main difference with a family, you have more people to provide for than when you are single or have just one other person in your household.
The costs of raising children are high and will steeply cut into your income. As you can tell this is a huge dent in your income, specifically $12,980 annually per child.
That means that amount of money is coming out of the income that you earned.
So, the question really remains is can you provide a good life for your family making $43,000 a year? This is the hardest part because each family has different choices, priorities, and values.
More or less, it comes down to two things:
The location where you live in.
Your lifestyle choices.
You can live comfortably as a family on this salary, but you will not be able to afford everything.
Many times when raising a family, it is helpful to have a dual-income household. That way you are able to provide the necessary expenses if both parties were making 32,000 per year, then the combined income for the household would be over $64,000. Thus making your combined salary a very good income.
Learn how much money a family of 4 needs in each state.
Can you Live on 32000 Per Year?
As we outlined earlier in the post, $32,000 a year:
$15.38 Per Hour
$123-153 Per Day (depending on length of day worked)
$615 Per Week
$1230 Per Biweekly
$2667 Per Month
Next up is making $35000 a year!
Like anything else in life, you get to decide how to spend, save and give your money.
That is the difference for each person on whether or not you can live a lower-class lifestyle depends on many potential factors. If you live in California or New Jersey you are gonna have a tougher time than Oklahoma or even Texas.
In addition, if you are early in your career, starting out around 30,000 a year, that is a-okay place to be getting your career. However, if you have been in your career for over 20 years and still making $32K, then you probably need to look at asking for pay increases, pick up a second job, or find a different career path.
Regardless of the wage that you make, if you are not able to live the lifestyle that you want, then you have to find ways to make it work for you. Everybody has choices to make.
But one of the things that can help you the most is to stick to our ideal household budget percentages to make sure you stay on track.
One of the best ways to improve your personal finance situation is to increase your income. Here are a variety of side hustles that are very lucrative. With time and effort, you can start enjoying the lifestyle you want.
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A hedge fund is an investment vehicle that invests in securities and other assets with money pooled from investors. They’re similar to mutual funds or exchange-traded funds, but they are riskier and more expensive. Because of this, they’re subject to different government regulations and only sophisticated investors.
While most investors may not engage with a hedge fund, especially younger ones, it can be useful to know what they are and how they work.
What Is a Hedge Fund?
Hedge funds are set up by a registered investment advisor or money manager, often as a limited liability company (LLC) or a limited partnership (LP). They differ from mutual funds in that they have more investment freedom, so they’re able to make riskier investments.
By using aggressive investing tactics, such as short-selling, debt-based investing, and leveraging hedge funds can potentially deliver higher-than-market returns, but they also have higher risks than other types of investments. In addition to traditional asset classes, hedge funds can a diverse array of alternative assets, including art, real estate, and currencies.
Hedge funds tend to seek out short-term investments rather than long-term investments. Of course assets that have significant short-term growth potential can also have greater short term losses.
Historically, hedge funds have not performed as well as safer investments, such as stock market indices. However, the goal of hedge funds isn’t necessarily to outperform the stock market. Investors also use hedge funds to provide growth during all phases of market growth and decline, providing diversification to a portfolio that also contains stocks, cash, and other investments.
Generally speaking, only qualified investors and institutional investors are able to invest in hedge funds, due to their risks and the high fees that get paid to fund managers.
Types of Hedge Funds
Each hedge fund has a different investing philosophy and invests in different types of assets. Some different hedge fund strategies include:
• Real estate investing
• Junk bond investing
• Specialized asset class investing such as art, music, or patents
• Long-only equity investing (no short selling)
• Private equity investing, in which the fund only invests in privately-held businesses. In some cases the hedge fund gets involved in the business operations and helps to take the company public.
What Is a Hedge Fund Manager?
Hedge funds are run by investment managers who make investment decisions and manage the risk level of the fund. If a hedge fund is profitable, the hedge fund manager can make a significant amount of money, often up to 20% of the profits.
Before selecting and investing in a hedge fund, it’s important to look into the fund manager’s history as well as their investing strategy and fees. This information can be found on the manager’s Form ADV, which you can find on the fund’s website as well as through the Security and Exchange Commission’s (SEC) website.
Who Can Invest in a Hedge Fund?
Hedge funds are not open to the general public, and there are several requirements to be able to invest in them. In order for an individual to invest, they must be an accredited investor. This means that they either:
• Have an individual annual income of $200,000 or more. If the married investors must have a combined income of $300,000 per year or more. They must have had this level of income for at least two consecutive years and expect to continue to earn this level of income.
• Or, the investor must have an individual or combined net worth of $1 million or more, excluding their primary residence.
If the investor is an entity rather than an individual, they must:
• Be a trust with a net worth of at least $5 million. The trust can’t have been formed solely for the purpose of investing, and must be run by a “sophisticated” investor, defined by the SEC as someone with sufficient knowledge and experience with investing and the potential risks involved.
• Or, the entity can be a group of accredited investors.
How to Invest in a Hedge Fund
Investing in hedge funds is risky and involves a deep understanding of financial markets. Before investing, there are several things to consider:
The Fund’s Investing Strategy
Start by researching the hedge fund manager and their history in the industry. Look at the types of assets the fund invests in, read the fund’s prospectus and other materials to understand the opportunity cost and risk. Generally speaking, the higher the risk, the higher potential returns.
In addition, you need to understand how the fund evaluates potential investments. If the fund invests in alternative assets, these may be difficult to value and may also have lower liquidity.
Understand the Minimums
Investment requirements can range between $100,000 to $2 million or more. Hedge funds have less liquidity than stocks or bonds, and some require that money stays invested in the fund for a specific amount of time before it can be withdrawn. It’s also common for there to be lock-up periods for funds and for there to only be certain times of year when funds can be withdrawn.
Confirm You Can Make the Investment
Make sure that the fund you’re interested in is an open fund, meaning that it accepts new investors. Financial professionals can help with this research process. Each hedge fund will evaluate an individual’s accreditation status using their own methods. They may require personal information about income, debt, and assets.
Understand the Fees
Usually hedge funds charge an asset management fee of 1-2% of invested assets, as well as a performance fee of 20% of the hedge fund’s profits.
The Takeaway
Hedge funds offer investors — usually, wealthier investors — the chance to invest in funds that are usually high-risk, but offer high potential returns. There are many rules surrounding hedge funds, and many investors may not even consider them as a part of an investing strategy.
For accredited investors, investing in a hedge fund may be one part of a diversified portfolio, although it depends on the investor’s risk tolerance, time horizon, and investing goals. If you’re not an accredited investor, or you’re worried about the risks associated with hedge funds, it may make more sense for you to consider other types of investments or to stick with ETFs, mutual funds, or funds of funds that emulate hedge fund strategies.
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Inside: Learn why you may want to drive a beater car. Plus find tips to make sure you are getting a good deal.
Okay, let’s preface with… my dad has been in the car industry for over 40 years. So, I have grown up in dealerships, car garages, and service centers. My friends call me an expert, but I prefer to just be helpful so they don’t overpay when buying or getting repairs done.
Now, that authority is established, let me help you understand the beater car mentality.
If you are looking for a cheap used car, but don’t know where to find one, check out this guide that will help you get started.
Buying a used car can be tricky. It’s not just about finding one that is inexpensive, but also getting the right size for you and your lifestyle.
There tends to be more mystery surrounding what it’s like buying a new car from the dealership than an old one from somewhere else.
The main reason is that usually, they do not disclose how much of the price tag is going towards depreciation. What happens when your brand-new vehicle goes through years worth of wear and tear? It depreciates at a staggering rate and you end up with the same old car that’s only worth what is left of it.
Did you notice that keyword in the last paragraph – depreciation!
For many who are choosing to lower their costs and pursing FIRE movement, they know that a brand new car will depreciate the most within the first five years.
In this article, I will be shedding some light on how to find a cheap used car in your area if you are shopping for one. Also, if you are maintaining a beater car, you will find the tips to make sure your car lasts many more years.
Driving a beater car is not a sign of being poor or reckless. You still need proper auto insurance to drive.
With this guide, you’ll find out which cars have what features and quality that will fit your needs and lifestyle. Now, let’s find a car with features that are important to get around town and save your wallet!
What Is a Beater Car?
A beater car is usually an older, higher-mileage vehicle that still runs and is legal to drive.
The term “beater” was coined because many of them have cosmetic damage and mismatched paint.
A beater car is rarely pretty but “gets the job” when it comes to getting you and yours from here to there.
What is the point of a beater car?
A beater car is a reliable and easy-to-fix car that is cheaper than a new car.
The point of a beater car is to save money and reduce the amount of maintenance that needs to be done on it.
It has little intrinsic value, & while not “easy on the eyes,” a beater car is generally a smart choice to wear into the ground.
There are many advantages to buying a used car, including insurance savings, tax breaks, and lower operational costs.
Beaters can also provide peace of mind because they are easier to repair if something does go wrong.
Should you drive beaters?
People are in different situations when they are buying cars.
The best customers for cheap cars are either first-time car buyers or people who have to save some cash to reach a financial goal they set in place.
On the other hand, if you like reliability, make income from your car, enjoy looking good, or do not know your way around a car, maybe you should skip a beaters car.
How Can You Recognize a Beater Car?
A beater car is a car that is older and cheaper than other cars in its class. It may also have high mileage or corrosion on the body. You can look for these signs to help you identify a beater car.
More than likely, they will be easy to spot. Many common ones include Honda, Toyota, and Suburu. Those are the engines that can keep on running!
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Is a Beater Car Worth It?
Well, there are two sides to the coin on this one. So, we will present both arguments first.
Definitely Worth It
Simply put, a beater car is one that doesn’t cost a lot of cash. You can find reliable and affordable beaters if you know where to look. In most cases, the best way to find a cheap used car is by checking out local classified ads or online listings.
Beater cars are a great way to save money on all sorts of fronts.
For starters, they’re cheaper to buy than most other cars. Additionally, used cars can help with taxes, insurance, and maintenance costs.
In short, a cheap car is a great way to get around while keeping your expenses low.
Um, Hello – No!
A beater car is not worth it. There are many reasons why you should not buy a beat-up vehicle. The first reason is that they are cheap, and the owner will most likely not take care of them properly. Not only will the car need repairs, but you could also have to buy a new one.
Didn’t you know that you can lease a vehicle for next-to-nothing with a low-interest rate? (p.s. don’t fall for that line. Leasing a car is the worst thing you can do financially. That is a post for another day on leasing vs buying a car.)
All in all, it depends on what you need and what you can afford at the moment. For many, the answer to this question is yes, but only if you are looking for a cheap car.
What is the price of a beater car?
A used car is a vehicle that has been previously owned, so it has depreciated in value.
The price of a beater car is difficult to determine and varies depending on the quality of the vehicle, its condition, and what it might have been used for. Typically, you can find a solid mechanical vehicle for around $5000.
You can always check against the KBB price and run the VIN to check its reported history.
Beater Car Benefits:
The benefits of a beat-up car are listed here. Many people are proud of their vehicles and proudly want to be a part of the 200k miles club.
They include the opportunity to drive around with no maintenance, the ability to use it for parts, and the freedom from monthly payments.
A used car is cheaper upfront than a new car.
Cheaper on insurance. Beater cars require minimum coverage, so they’re cost-effective for monthly expenses.
A beater car is cheaper on gas (this is true for sedans; not so much for SUVs or trucks.)
The car will retain its value and not depreciate much more.
The car can still be sold for what was paid for it, as long as it is in the same condition.
Now, let’s dive a little deeper into each of these.
#1. Cheap Price
One reason to prefer a cheap car is because of the low price point.
For the first time ever, the price of a new car tops $47000 – an all-time high (source). That is a whole lot of money especially when it loses most of its premium in the five years.
Driving a beater may not feel as luxurious as driving a newer car, but the cheap price point lets you save money.
#2. No Car Payments
There are many benefits to not having car payments.
One of the most obvious is that you save money. In addition, not having car payments can also reduce stress and anxiety levels, because you’re not as tied down to a monthly payment.
It is not normal to have a car payment your whole life. That lifestyle will cost you a fortune with lifestyle creep.
#3. Cheaper Gas
Old and beaten-down cars that don’t require premium fuel will be heaven for your wallet, saving you hundreds, maybe even thousands of dollars per year.
Gas prices vary throughout the day, so drivers should plan their trips around the cheapest prices. In addition, using a cheap car can save you money on gas in the long run.
#4. Cheaper Parts
First of all, you need to find a reliable mechanic or be able to do some of the work by yourself.
In addition to being cheaper, older car parts are also easier to find. Car parts are still available from common car manufacturers, so you don’t have to go through a premium supplier to get what you need.
Additionally, the older vehicles do not have the fancy chips like the newer cars that make the cost of parts increase and the difficulty of getting those types of parts.
#5. Minimum Insurance Coverage
Buying a used car saves money on car insurance.
You only need to meet the minimum insurance requirements of your state, and you don’t have to worry about finance companies taking out full coverage collision and comprehensive insurance.
However, you may want comprehensive coverage if the cost is minimal compared to replacing the car. For instance, if you pay an additional $50 per year for full comprehensive coverage that will give you the $5k worth of your car back if something happens. That may be worth the extra cost.
Plus driving a car with a lower resale value can help save on vehicle taxes.
#6. Less Depreciation
Older cars have already depreciated in value over the years, so they aren’t going to lose much more during the period of your ownership.
Plus if the engine gives out, you can always sell it for scraps and parts at the local junkyard. That will help you recoup costs for another one.
Remember, you wipe away value from your brand new car once you drive off the dealer’s lot (source). This is a hot debate on whether your car is an asset or liability.
#7. More Freedom
When you are not bogged down by expenses of maintaining a high-value car, you have more freedom.
This is more freedom in your budget and more time freedom as you don’t have to work hard to pay for your mode of transportation.
Think about it… if you invested $500 a month for seven years at the average rate of return of 8%, you would have accumulated $55,000. Compounding interest will do amazing things for your net worth.
Beater Car Downsides:
Saving money is the biggest benefit of buying a used car.
Beater cars are potentially less safe than modern cars.
Long-distance car rides might not be possible with a cheap car
Downsides to having a good beater car include the possibility of breaking down and being far away from home if needed.
Possible more maintenance.
There is more risk. You don’t want to gamble.
#1. Less Safety
Cars from before the 2000s don’t have the same crashworthiness as newer cars.
This is a factor that you cannot deny and a serious factor when considering your purchase.
In a collision, they are more likely to sustain damage and injure the passengers inside.
#2. Low Probability of Longer Trips
These are great for commuting around town and getting you to and from.
However, there is a low probability you want to use them on longer trips.
Given there are many things that could go wrong, you don’t want to break down far from home or even a nearby city where you can get repairs done.
You don’t anticipate needing to take this car on long trips in the near future because there is a low probability of needing to take it on longer trips. This is due, in part, to the fact that it doesn’t have great gas mileage and you don’t think you’ll need to use it for long distances.
#3 – Higher Maintancence Costs
You always need a sinking fund for repairs when you own a beater. Period.
You are one drive away from something going out and needing to be repaired.
Also, you need to find a quality mechanic that thrives on keeping older ones running without nickel and diming you along the way.
You cannot use a dealership service center to maintain your baby.
Which Are the Best Beater Cars?
The best beater cars are cars that are cheap, have low mileage, and are easy to repair. The cars are great to use as a daily driver, but they are not ideal for long distances.
Cheap cars can be a good option for car buyers on a tight budget or for young drivers.
There are many reasons to consider buying a used car over a new car, but the decision ultimately depends on the buyer’s needs and preferences
What are some good beater cars?
These reliable beater cars can be a great way to save money on car buying.
Some of the better cars to choose from that would make for a great beater include Toyota Corolla, Honda Accord, and Honda Civic.
They are old, but still in pretty decent shape. All in all, you want to look for one that is very well maintained and highly cared for. The ones sitting in your grandparent’s garages that were hardly driven and immaculately maintained.
What to Check Before Buying a Beater Car
The best way to ensure that you’re buying a good quality car is to do some research and make sure you know your facts.
All dealers are not created equal, so it’s important to check out what other people are saying about the dealer. Also, make sure that the car you’re buying is in good condition and has a clean title.
Many times, a beater is a car that is used to transport things such as furniture, trees, etc. Sometimes they are usually not very well maintained and maybe not very well cared for.
However, a used car can still be a good car for someone who is looking for a cheap car and does not care about the condition of the car.
Specifics to Look For:
Low mileage
Consider the brand/model
Fuel economy
Exterior and interior condition
Reliability
Maintenance history
Number of owners
Number of accidents
Anything rebuilt like the engine
For example, one of the Toyota Corollas I owed was older but had a new engine installed. Thus, the value of the Corolla was higher as the engine had minimal miles on it.
In fact, here is a picture of it… doesn’t look like a junker right?!?!
Questions to Ask Yourself:
Before buying a used car, you should check the following:
Is it in good shape?
On the engine, is it manual or automatic?
Is it the right size for your needs?
Does it have enough power?
Does it have enough room?
Is it reliable?
Is it comfortable?
Easy to drive?
Is it safe?
How to Buy a Beater Car
When buying a beater car, you should check the following things:
1. Finding One to Buy
Many times, this will be the hardest part. Sometimes, the easiest if someone needs to get rid of one quickly.
Try buying a beater car from friends or family.
The next place to check is your mechanic. Remember, they are your best friends in this process and always know the movement of these types of cars.
Also, you can check online – Facebook Marketplace, NextDoor and Craigslist are great options but follow your instincts.
Lastly, you can try a local dealership. However, be very careful as you don’t want to be scammed or pay more than the car is worth.
2. Check the VIN Number
VIN stands for Vehicle Identification Number. A VIN is a serial number that identifies the make, model, and vehicle type of a motor vehicle.
The VIN number is a unique identifier for a car that can be used to learn about the car’s history and identity. The number is usually 17 characters long and contains both numbers and letters. It can be found on the dashboard, driver’s side door, or engine of the car.
More importantly, it can be used to learn about the car’s history and identity, including its make, model, year of manufacture, and more. Even if the car was stolen.
3. Look at Mileage
Beaters usually have high mileage, but how high is too high?
Do your research for what could be a red flag. Look up how the specific make and model you’re considering holds up in high mileage.
In this regard, lower is better, although beaters will generally have higher mileage than a newer used car. Look for beaters with 80,000 to 150,000 miles on the odometer, but don’t go over 150k miles. You want to drive it into the 200k mile club, right?
4. Run the Auto History Report
You want detailed information on a car’s history, including maintenance and repair records. This can be helpful in determining whether or not a car has been well taken care of. If a car has had many owners in a short period of time, it may be an indication that the car was neglected.
The VIN number (vehicle identification number) helps you obtain a vehicle history report by running through a service, like CARFAX. Companies like VINCheck.info and AutoCheck provide vehicle history information, too.
A good indication that a car may have been neglected or doesn’t run well is the fact that it has had many owners in a short period of time.
5. Checked by Your Own Mechanic
If you haven’t figured it out by now, a trusted mechanic is a must!
Before agreeing to the purchase, you must have the vehicle independently audited by your own mechanic. This may come at a small cost, but it is better to know the condition of the mechanical systems before you purchase.
Also, your mechanic can tell you what you should pay for it as well as any outstanding repairs or maintenance that needs to be done.
6. Passed State Inspection
When buying a car, it is important that it passes state inspection. If it doesn’t, you may end up spending more cash on repairs and/or fines.
You can ask for the last inspection report. If it has been more than a year, it is worth testing it again.
In any case, you don’t want to buy a car only to have it break down on you soon after.
7. Take it for a Test Drive
When you’re looking to buy a used car, it’s important that you take it for a test drive. This allows you to listen to any loud noises and also gives you a chance to feel the car out.
If something doesn’t feel right, then it’s probably not the right car for you.
When you’re looking to buy a used car, it’s important that the seller allows you to take the car to a mechanic for a test drive. If they don’t, it’s probably because they’re trying to hide something and it’s best to move on.
Fixing a Beater Car:
The best option for fixing a beater car is always to do the repair yourself. This will save your finances and allow you to learn more about how your car works. There are a variety of resources available online that can help you with this process, including videos, articles, and forums.
If you find a car with engine problems, you will need to consult a mechanic. The problem may be something simple that is quick fixes with a tune-up, or it may be more serious.
If the cost of repairing a used car is almost as much as what you paid for the car, then it may be time to move on.
Selling a Beater Car:
The process is very similar to buying it except now you are the seller!
The same places you would look for one would be the same places you would sell it – friends, NextDoor, Craigslist, mechanic, or Facebook Marketplace.
You might even be able to get some cash for your beater car by trading it in at a dealership. The dealership will likely give you less than if you had sold the car to a private party, but it’s better than nothing. However, some dealerships have pretty awesome trade-in policies to get you in a new and more expensive ride!
Reasons NOT to Buy a Beater Car
The most common reasons not to buy a used car are that they are very expensive to fix, impractical in terms of fuel efficiency, and require more time and effort than expected.
However, those of us who have owned older sedans, SUVs, or trucks know the significant savings associated with it and get many weird looks for others.
Top 10 Reasons NOT to Buy a Beater Car:
You want/need a good-looking car.
High reliability is a priority.
You are a one-car family.
You will lose your mind trying to fix it.
It’s going to break down and you’ll be stranded somewhere, losing money.
You will have to get a new car eventually anyway.
It’ll cost you more money in the long run because it’s not worth fixing up and selling later on.
You won’t be able to sell it for what you paid because it’s too beat up.
You think leasing a car is a better deal.
Deep down, you think a car payment is normal.
Is an Older Beater Car an Issue for You?
Beater cars can be a good option for people who want to save money on their car costs.
There are many advantages of a cheaper car including avoiding car loans and down payments, cheaper gas, and minimal insurance requirements. Plus used cars have already lost much of their value and are a better investment.
Maybe a full one beater isn’t right for you, but maybe a seven-year-old minivan with 85,000 miles is perfect.
In all honestly, people who are looking for a cheap car should consider buying an inexpensive car instead of a luxury car.
Now, I want to hear your favorite stories about your precious gem and how many miles it lasted…
Know someone else that needs this, too? Then, please share!!
INSIDE: Need help knowing how to budget? This step-by-step guide will help you create a budget that actually works. Includes free printable budget spreadsheet template!
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When you’re trying to pay off credit card debt or save money, you’ll hear it time and again: “You need a budget.” But if you’ve never created a budget, the mere thought may make you want to run and hide. Making a spending plan that works is not hard, however, if you have someone to help you.
If you’re ready, I can help. Below you’ll find step-by-step instructions to follow to create your budget, whether you’re a beginner or have budgeted in the past.
You can use a pen and paper with our printable form or software for online budgeting.
Improving your money management skills doesn’t just mean spending less. It also means learning about your spending habits and making changes.
A few tweaks may help you pay off your debt and reach long term goals, such as saving for retirement.
MY BUDGET JOURNEY
I know it can be terrifying to really look at how you spend your money. Trust me, I’ve been in your shoes. But I’ve learned that the things that were the most challenging in my life have led to the biggest rewards.
Declaring bankruptcy was a low point for me. But it also taught me many valuable lessons about personal finance. Most importantly, I learned why I must have a budget.
My husband and I used to have a “bare bones budget.” Except it wasn’t, really. Rather, it was a piece of paper where I’d write down who I had to pay every month, so I didn’t forget.
When we began our journey to become debt-free, we had to look at all aspects of our finances. One thing we did was sit down together to create a budget.
Seeing our expenses and income in writing for the first time still sticks with me. I remember being in tears. It was shocking to see that we had not been in better control of our money.
Creating a budget made us acknowledge where we were, and we realized that we didn’t like what we saw. It instantly provided us with a goal: We wanted to make positive changes and get out of debt. It took time, but we did achieve our goal (and that was one of the best moments of my life).
I am going to be blunt here. Creating your first budget and managing your money with it will bring significant challenges your way.
But I can guarantee that it will be worth it in the end. Just wait until you can finally control where your money goes instead of the other way around. It is liberating.
Before we begin, you can download our free budget form by clicking on the pink box below.
If you want something more high-tech, I recommend You Need A Budget (YNAB) or EveryDollar. These are apps I’ve tested and reviewed. Both work very well, so I’m confident recommending them to you.
WHAT IS A BUDGET?
A budget is a plan that lists your estimated income and expenses for a specific period of time. Most people use a monthly budget period. Budgets are helpful for everyone, no matter what your financial situation is.
Tracking your spending in the past helps you predict your future cash flow so you can start saving more.
WHAT SHOULD BE INCLUDED IN A BUDGET?
It’s important to include every dollar you earn and spend when making a budget. Tracking your income is easy, but your budget should also include spending categories. Some you need to remember to use include:
Your list may include more categories or fewer. Our budget template includes categories that will cover just about anyone.
Read more: The categories you need to include in your budget
HOW TO CREATE YOUR BUDGET
Now that you have your categories, it’s time to start filling in the numbers. Follow these instructions to prepare your budget.
Step 1: Gather Necessary Papers
Before you begin, be sure you have all the things you’ll need. These include (but are not limited to):
Bank statements, including debit card payments
Pay stubs
Credit card statements
Utility bills
Monthly bills from various stores
Personal/vehicle loan information
Step 2: Calculate Your Income
Next, look at your pay stub(s). Your budget should reflect your monthly income. If your paychecks come more frequently than once a month, some simple calculations are necessary to come up with an accurate monthly income.
Here are some formulas to help you:
If you’re paid biweekly (i.e., every other Friday), add four pay stubs and divide by two to get your average monthly income.
For monthly pay, you can use the income you see if the amount listed for each pay period is the same. Otherwise, add three or four months’ worth of income and divide by the same number of months.
If you’re paid weekly, take the total of four income periods.
When you’re paid hourly or on commission (i.e., your income fluctuates), add your last four months of salary and divide by four to reach an average. If your income varies frequently, you’ll need to adjust your budget more often than someone with a regular income. You may also want to follow our tips for creating a budget with irregular income.
Step 3: Determine Fixed Expenses
You must make certain payments, such as your mortgage or rent, insurance premiums and car payments, on a regular basis. These recurring expenses are usually a fixed amount.
If your bill varies slightly each month (for instance, if your utilities aren’t on a budget billing system), take the past three months’ worth of statements and average them to get your estimated payment.
You can use a spending form to figure out the exact amounts to include in your budget. For example, say your October gas bill is $45.79, your November bill is $52.95, and your December bill is $49.22.
Add those three numbers and divide by three to reach your average (in this case, $49.32). I recommend you look at the months when your utility bills are the highest. For instance, you may use more gas or oil in the winter, so use those months as the basis for your budget.
One of the most important rules of personal finance is to pay yourself first. Do this by adding categories for saving. You need to save for a rainy day as well as for long term goals, such as college or retirement.
You can set up automatic transfers each month from your checking account to a savings account for your emergency fund (aim to build up at least three months’ worth of living expenses). If you have a retirement plan at work, such as a 401(k), your money is automatically withdrawn from each paycheck before you get it.
Step 4: Calculate Discretionary Expenses
Your discretionary expenses include those that vary more, such as food, gasoline and clothes. Treat them the same way you treated the gas bills described in step 3. Make sure you take the average of three months’ spending to get the figures to add to your budget.
Be sure to include occasional expenses, such as car repairs and maintenance. The goal is to pay these bills with your regular income instead of running up credit card bills.
Step 5: Fill in the Numbers
Transfer the figures you’ve calculated above to the appropriate spots on the budget form or spreadsheet. Put your monthly income at the top, followed by the amounts for each expense category.
The categories listed on our form are a guide for tracking your spending. You can add categories that aren’t included or ignore the categories you don’t need.
Add all your income and all your expenses. Then subtract your expenses from your income. The result should be zero. If it’s not, then figure out the changes you need to make.
If your total is a negative number: You’re spending more than you earn. Reduce your spending until the total reaches zero.
If your total is a positive number: You haven’t spent everything you make. Either increase your debt payments or your savings.
FINE-TUNE YOUR BUDGET
After you complete your budget for the first time, you may feel discouraged. As mentioned above, it happened to us. But once we started to rework the numbers, I began to feel better. I began to feel like I could live with a budget. It was tough, but nothing in life worth having is easy!
To balance your budget, first look at your fixed expenses. One I always like to mention is cable. We found out we were paying way too much and found a way to cut the expense in half. (As much as we would like to cut the cord entirely, we’re not yet there.)
Perhaps you could do the same and sign up for a lower-cost cable plan to free up some income. There are many other ways to reduce your monthly expenses, such as reshopping your insurance or refinancing your mortgage.
Once you’ve cut back your fixed expenses, it’s time to look at your discretionary spending. Perhaps you’re eating out a bit too much, so your budget takes a hit. You may even be overspending on shoes. These are areas where you might need to scale back to balance your budget.
Making these decisions isn’t fun, but consider what is more important: paying off debt or buying a bigger television. These are choices only you can make. But if you’re willing to scale back now and pay off debt, it will be worth it when you can buy that new TV or those new shoes without guilt!
If you’ve scaled back on everything you can and your budget still doesn’t balance, make some calls to your debtors. Ask for a reduced interest rate or a lower minimum payment on your credit cards. You never know what they will accept until you make those phone calls.
My husband and I wanted to get out of debt, so we decided that we wouldn’t eat out as often. For more than two years, we ate dinner out no more than 10 to 20 times a year. We saved a lot of money, which we used to pay off debt. It was challenging, but the result was well worth the temporary sacrifice.
WHAT TO DO ONCE YOU HAVE A BUDGET
First of all – congrats! You now have a budget you can use. You should revisit and update your budget at the end of each month.
After a few months, you probably won’t need to make any changes. But if you get a raise, have an added expense or finally pay off your car, that will require a shift in your budget numbers. Remember that your budget must always end in zero!
Creating a budget isn’t easy, but once you have one set up and continue to refer to it, it will pay off. You’ll find it helps because you are now telling your money where you want it to go rather than it telling you where it is going each month. Financial control is a fantastic feeling.