In our latest real estate tech entrepreneur interview, we’re speaking with Stephen Arifin from The Closing Docs.
Who are you and what do you do?
My name is Stephen Arifin and I am one of the founders of The Closing Docs. Prior to serving as a software engineer at Microsoft, I had launched and supported several other revenue generating software tools. I am the technical founder and lead for our company. I graduated with an Electrical Engineering degree from the University of Texas at Austin.
I love bringing new technology and creative ideas into outdated industries, and that’s exactly what we’ve done with The Closing Docs. Our automation has streamlined the income verification process for companies managing more than 635,000 units.
What problem does your product/service solve?
The Closing Docs provides automated income verification to property managers and lenders. Historically, screeners and underwriters are collecting paper pay stubs and bank statements from applicants. This manual process is ripe for fraud, is really cumbersome and is burdened by many start/stop cycles in the set of related activities. By expediting deal closings and eliminating fraud, we have significantly compressed vacancy periods and underwriting cycles, getting applicants approved in minutes, not days or weeks. We provide a real solution to a very real and cascading problem. Even before COVID-19, pay stub fraud was on the march. And now, with rampant job loss, fraudulent pay stub and bank statement submittals are apt to increase in prevalence significantly. With the current rate of unemployment announcements, it is more important than ever to have a clear view of applicant income. The outdated method to verify an applicant’s income involves scanning or taking pictures of bank statements, W-2’s, and pay stubs. This form of income verification was a very manual process, which involved screeners deciphering bank statements and playing detective investigating whether the documents were falsified. Each applicant’s income documents arrived in a different format, which led to huge inefficiencies in approving a rental applicant. Many property managers also call the applicant’s employer, which can take days to get a hold of the right person in HR to confirm employment. Each day it takes to approve a tenant means your property is remaining vacant and not generating income. Using The Closing Docs, we pull the applicant’s bank statement data directly from the applicant’s bank account, with their permission. Since our data comes directly from the bank, our income verification completely eliminates fraud. Once the applicant decides to share the data, a standardized report is generated for the property manager instantly, verifying the applicant’s income in minutes rather than days. That means shorter vacancy periods, more income, and faster, more accurate data.
What are you most excited about right now?
Well, implementing new customers on first phone calls and inside of 30 minutes is pretty exciting – I’ve never experienced that before now! Property managers know how painful the income verification process is, and when they finally find a product that makes it easier by light years, their eyes spark up. It’s really fun to know you have true product market fit.
What’s next for you?
Growth, growth, growth. With the customer adoption and retention we’re experiencing, it’s time to grow the business hockey-stick style. We’re leveraging sales channels through integrations with a bunch of property management software programs, like Appfolio, Buildium, Yardi, and Propertyware, and we also support Chrome, Safari, Firefox, and Edge browsers for our integrations. We’re focused on increasing our sales and have expanded our marketing budget to expedite uptake.
What’s a cause you’re passionate about and why?
Being an entrepreneur myself, I’m extremely passionate about helping other entrepreneurs succeed. The best place I’ve found to give back in this way is through Seattle’s Community Carrot program.It takes another founder that’s been in the trenches to truly understand what starting a business is like. While building The Closing Docs, I’ve received a tremendous amount of support from my friends and family, along with other like-minded founders and mentors. Now, I am happy to step out of my way to help other aspiring entrepreneurs achieve their dreams.
Thanks to Stephen for sharing his story. If you’d like to connect, find him on LinkedIn here.
We’re constantly looking for great real estate tech entrepreneurs to feature. If that’s you, please read this post — then drop me a line (drew @ geekestatelabs dot com).
Open a BMO Harris Premier™ Account online and get a $500 cash bonus when you have a total of at least $7,500 in qualifying direct deposits within the first 90 days of account opening. Expires 9/15. Conditions Apply.
Most checking accounts pay no interest on balances. They cede that perk to savings accounts, which are designed to hold funds you don’t need to pay this month’s bills.
Interest checking accounts are different. Though they rarely yield as much as high-yield savings accounts, they make it worth your while to keep a checking cushion.
Ally Interest Checking is one such account. It has a bunch of other notable perks that make it more than suitable for everyday use as your primary checking account too. Read on to see if those outweigh its downsides.
What Is Ally Interest Checking?
Also known as the Ally Spending account, Ally Interest Checking is a free checking account that yields 0.10% APY on balances up to $15,000 and 0.25% APY on balances above that amount.
Ally Bank is an online-only bank with no branches, but Ally Interest Checking has more than 43,000 fee-free ATMs in its network and a robust mobile app that can replace the in-person banking experience for the vast majority of users. Other notable account features include built-in spending buckets that can help with budgeting, two layers of overdraft protection with no out-of-pocket fees, and an early direct deposit feature that can get you paid up to two days early.
Ally Interest Checking is one of several Ally Bank deposit accounts. The bank also has a high-yield savings account, money market account, and several different CDs. Other Ally financial accounts and services include a commission-free online brokerage, an auto lending department, and a home loan department that makes primary and secondary home loans.
What Sets Ally Interest Checking Apart?
Ally Interest Checking stands out from similar checking accounts for several reasons:
Overdraft protection with no fees. Ally Bank offers two layers of overdraft protection. Neither charge any fees; the bank eliminated overdraft fees entirely in 2021. That’s quite rare in the banking industry.
Big fee-free ATM network for an online bank. Ally Interest Checking has more than 40,000 fee-free ATMs in its network. You can find them all over the United States, so it shouldn’t matter too much where you live or travel.
Spending buckets for easy budgeting. You can create up to 30 spending buckets to categorize your monthly expenses. All bucketed funds remain in your checking account, but the buckets help you budget and see where you’re spending too much.
Powerful mobile app. The Ally Bank app is better than the average mobile banking app. With a fast, easy-to-use interface and clutch features like mobile check deposit and rapid person-to-person payments, it easily stands in for Ally’s standard online banking dashboard when you’re on the go.
Key Features of Ally Interest Checking
Ally Interest Checking has all the features you’d expect from a full-service online bank, plus some legitimately notable perks not found everywhere else.
Account Fees & Minimums
This account has no monthly or annual maintenance fee. There’s no minimum opening deposit and no ongoing minimum balance requirement either.
Account Yield
Ally Interest Checking has a two-tiered yield system. The yield is 0.10% APY on balances up to $15,000 and 0.25% APY on balances above that amount.
ATM Access
Ally Interest Checking has more than 43,000 fee-free ATMs in its network. You can withdraw cash without a surcharge anywhere you see the Allpoint logo.
Spending Buckets
Ally Interest Checking allows you to create up to 30 individual spending buckets to manage distinct pools of cash within your account. You can use the buckets for anything you want (and customize their names accordingly), but Ally really emphasizes how useful they can be for budgeting.
You can move cash into and between buckets instantly with the Ally mobile app or online account dashboard. All bucketed funds remain in your checking account, but you can choose which buckets to pull from for external transfers or bill payments.
Overdraft Protection
Ally Interest Checking has two overlapping layers of overdraft protection. Neither has any fees:
Overdraft Transfer Service: This feature pulls from a linked Ally Bank savings account to cover negative-balance transactions. Ally rounds up the transferred amount to the nearest $100, so a $75 overdraft would trigger a $100 savings transfer.
CoverDraft: This feature provides up to $250 in coverage for negative balances. Your account can remain overdrawn until the next deposit hits.
Even with complimentary overdraft protection, Ally reserves the right to decline specific transactions that would result in a negative balance and may revoke overdraft privileges if you frequently overdraw your account.
Early Direct Deposit
If your employer or government benefits provider qualifies, and most do, you can get your paycheck up to two days early with Ally Interest Checking. If your paycheck normally arrives on Friday, the money hits your account on Wednesday.
Paper Checks
You can order standard paper checks for your Ally Interest Checking account as often as you’d like with no order fees. Personalized checks may carry a design fee.
Mobile Features
Ally Bank has a comprehensive, user-friendly mobile app that can do just about anything the standard online banking interface can. It’s well-reviewed and has relatively few complaints from verified users, most centering on apparent glitches that may be user error.
Notable capabilities include:
Mobile check deposit
One-time and recurring bill payments
Person-to-person transfers through Zelle
Spending bucket management
Check reorders
Deposit Insurance
Ally Interest Checking comes with federal deposit insurance up to the standard FDIC limit of $250,000.
Pros & Cons
Ally Interest Checking has more advantages than disadvantages overall.
No maintenance fees or minimum balance requirements
No overdraft fees
Spending buckets to help with budgeting
Big fee-free ATM network
Below-average interest rate
No account opening bonus or spending rewards
No physical branches
Pros
Ally Interest Checking is almost entirely fee-free and has lots of user-friendly features.
No maintenance fees. This account has no monthly or annual maintenance fee. You pay nothing to keep your account active, no matter how much or how little you use it.
No minimums. This account has no minimum opening deposit or ongoing balance requirement. Since you don’t have to worry about keeping a certain amount in it, it’s useful as a low-balance secondary checking account.
No overdraft fees. Ally Bank charges no overdraft fees on this account. You have access to two overlapping overdraft protection plans, one that draws from your linked savings account and one that draws from deposits to the account.
Large network of fee-free ATMs. Ally Bank’s ATM network has more than 40,000 fee-free machines located in every state and major metropolitan area.
Comprehensive mobile app. Ally Bank has one of the best mobile apps of any online bank, which is pretty high praise. It’s easy to use and can replicate all the functionality of the standard online interface.
Spending buckets make it easy to manage your budget. You can set up as many as 30 spending buckets to manage recurring expenses, short-term goals, and other aspects of your household budget. It’s much easier than using a spreadsheet or third-party budgeting software.
Get paid up to two days early. Most employers and benefits providers qualify for early payday. If you normally get paid on Friday, you’ll get your paycheck on Wednesday instead.
Cons
Ally Interest Checking isn’t as generous as some competing interest checking accounts and isn’t appropriate for people who prefer in-person banking.
Lower interest than some comparable accounts. This account’s yield tops out at 0.25% APY, and you need to have at least $15,000 in the account to earn at that rate. Otherwise, your yield is just 0.10% APY. Both rates are less generous than some otherwise similar interest checking accounts.
No account opening bonus. This account has no account opening bonus for new users. Some competitors offer bonuses worth hundreds of dollars when you complete qualifying activities after sign-up.
No debit card rewards. Ally Interest Checking has no spending rewards program. You can’t earn cash back on debit card purchases with this account, as you can with many other bank accounts.
No physical branches. Ally Bank is an online-only bank with no physical branches. Its desktop and mobile interfaces are robust enough that you’ll probably never feel the need to visit a branch, but it’s not appropriate if you like having a branch network as a fallback.
How Ally Interest Checking Stacks Up
Ally Interest Checking competes against quite a few interest-bearing checking accounts. One of its closest cousins is Quontic High Interest Checking. Before applying for either, see how they compare.
Ally Interest Checking
Quontic High Interest Checking
Maintenance Fee
$0
$0
Minimum to Open
$0
$100
Minimum Ongoing
$0
$50
Maximum Yield
0.25% APY
1.10% APY
Qualifying Activities?
Not, but maximum yield requires $15,000 daily balance
Yes, 10 debit card transactions per month
Debit Card Rewards?
No
No
ATM Network
43,000+ locations
90,000+ locations
Ally Interest Checking is a better fit for occasional users and users with low account balances, thanks to its total lack of minimum balance requirements and transaction requirements to earn interest. But Quontic High Interest Checking has a higher maximum interest rate if you’re able to clear the monthly transaction hurdle.
Final Word
Ally Interest Checking is a straightforward checking account with a decent but not really notable yield and tons of user-friendly features. If you’ve struggled to get a handle on your budget in the past, occasionally overdraw your account, or silently curse your current bank every time you open its mobile app, give it a closer look.
Just don’t expect any miracles. Ally Interest Checking is less generous than some competing accounts, so you need to decide whether the perks and usability justify the below-average return on your balances and spending.
The Verdict
Our rating
Ally Interest Checking
Ally Interest Checking is a simple checking account that’s refreshingly user-friendly. Its spending bucket feature makes it easy to get (and keep) control over your budget, and it has a relatively large fee-free ATM network for an online bank. Its mobile app is better than average too. But with a low yield and no spending rewards, it’s not as generous as it could be.
Editorial Note:
The editorial content on this page is not provided by any bank, credit card issuer, airline, or hotel chain, and has not been reviewed, approved, or otherwise endorsed by any of these entities. Opinions expressed here are the author’s alone, not those of the bank, credit card issuer, airline, or hotel chain, and have not been reviewed, approved, or otherwise endorsed by any of these entities.
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Brian Martucci writes about credit cards, banking, insurance, travel, and more. When he’s not investigating time- and money-saving strategies for Money Crashers readers, you can find him exploring his favorite trails or sampling a new cuisine. Reach him on Twitter @Brian_Martucci.
[Note from the editor: Originally published on Thomvest’s Blog]
Today we’re releasing an updated version of our commercial real estate technology market map. The full list of companies is available here, and a high-resolution version of the map can be accessed here. This market map includes more than 220 technology companies operating across every aspect of commercial real estate, and range from seed stage businesses to public companies. If you’d like to suggest a company to be added to this market map, please submit them using this form.
Broadly defined, commercial real estate (CRE) includes any property owned to produce income. In total, more than 100 billion square feet of space in the United States is devoted to commercial use. Because commercial property is acquired for investment purposes, it differs from its residential counterpart in several important ways:
Commercial real estate is a diverse asset class that can take on many forms: office buildings, retail stores, malls, apartment complexes, homes, hotels and more.
Every property is analyzed for its ability to generate income. In most cases, there is a leasing component to commercial property ownership (which is the main revenue-generating activity), whereas in residential real estate properties are often owner-occupied.
Commercial properties are actively managed by teams responsible for leasing, routine maintenance, improvements and amenities to ensure that the building is suitable for occupants.
As the map above indicates, there are hundreds of technology companies across every aspect of the commercial real estate lifecycle, from property search and financing, to leasing and ongoing management. You’ll notice that several companies are included in more than one section — this is due to the fact that many of these businesses have expanded their product areas to capture multiple phases of the CRE lifecycle. For example, VTS recently launched a listings marketplace offering to compliment its suite of leasing and asset management tools. As such, we’ve included VTS in both the “Find Property” and “Manage Property” sections.
Assessing the Impact of COVID-19 on Commercial Real Estate
It’s no secret that the pandemic has dramatically altered our ability to utilize commercial real estate. The pandemic has impacted every CRE segment (office, hospitality, retail, etc.) and every phase of the asset ownership lifecycle (leasing, financing, utilization, etc.). The pandemic will likely continue to influence occupiers and end users of real estate in unprecedented and unique ways, which will have implications for the entire CRE industry.
This is particularly true in the office segment, as the abrupt change in the way we work has required mass remote working. Interestingly, as companies have transitioned from office work to remote work, many employees are reporting no meaningful impact on productivity. Even as lockdowns are slowly eased, as many as 75% of employees prefer to work from home out of caution or convenience. This has caused many in the industry to ask: Is the office as we know it dead?
Given these lingering existential questions, we’re witnessing the reimagining of office environments designed to anticipate what the “next normal” will look like. Tenants and landlords are working hard to determine an approach for re-entering the office, and the impact of remote work on future space needs. While there are many questions we’ve yet to answer, we anticipate the office category evolving in several important ways, and expect technology companies to play a central role in that evolution:
Emphasis on Safety:As new case volume persists, businesses have been cautious to re-open offices. In an August survey of 15 employers that collectively employ about 2.6 million people, 57% said they had decided to postpone their back-to-work plans because of recent increases case volume, according to the Wall Street Journal. Employers are also developing safety measures to facilitate a smooth re-opening, including redesigned workspaces and temperature checks. We expect additional safety standards to be developed, including staggered employee schedules, space plans to promote social distancing, safe hygiene practices, cleaning protocols, and guidance on using elevators. Technology is a key component of ensuring that both tenants and landlords abide by these emerging safety protocols.
Flexible Work Arrangements:The pandemic catalyzed a massive work-from-home experiment. In many cases, employees actually prefer remote work as it provides flexibility, reduces (or eliminates) commute times and enhances productivity. More than 75 percent indicate they would like to continue to work remotely at least occasionally, while more than half — 54 percent — would like this to be their primary way of working, according to IBM. The forced shift to operating remotely has led to nearly 40 percent of employees indicating they feel strongly that their employer should provide opt-in remote work options when returning to normal operations.
Flexible Space Needs: As offices reopen after COVID-19 shutdowns, we will likely see a mix of new use cases. Some companies will require more office space to further space out employees and reduce potential transmission, while others will move to permanent work-from-home arrangements or a hybrid of home, co-working, and office spaces to minimize commutes and maximize social distance. This will create more demand for flexible office space, including co-working space offered by companies like WeWork and Industrious. According to JLL, 67 percent of corporate real estate decision-makers are increasing workplace mobility programs and are incorporating flex space as a central element of their agile work strategies. JLL “expects 30 percent of all office space globally to be flexible in some form by 2030” (up from about 3% today).
In every industry, technology is an important enabler of not only process efficiency, but also of customer satisfaction and growth, and real estate is no exception (particularly during this pandemic). We’ve already seen technology companies step up to offer useful solutions for landlords and tenants. For instance, companies like Envoy are offering safety-focused tools including employee registration, touchless sign-in, wellness checks and capacity management to employers preparing to re-open their offices. We also expect accelerated adoption of digital solutions related to property and building management, leasing and transaction management. Working on furthering the adoption of technology in real estate? We’d love to talk.
Disability insurance is the most underrated type of insurance, and one that I routinely would see clients skip. Who ever thinks they will become disabled?
Hard truth – According to some statistics from the Council for Disability Awareness, 1 in 4 workers who are 20 years old will be disabled before they retire. That’s a shocking number for most people to consider. If you can’t perform your job, you can’t earn money, and that’s where a disability insurance plan can save the day.
The best disability insurance companies make it easy to get a quote online. Below you can quickly get a quote from top rated disability insurance companies we recommend, or keep reading to learn more about disability insurance and its uses.
Table of Contents
Quotes From Top Rated Disability Insurance Companies We Recommend
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#1
Quotes from the top disability carriers to ensure you find the best rates
Helps thousands of consumers apply for disability insurance each year
Rated Excellent on TrustPilot
Benefit terms range from 3 months to age 67
Choose your waiting period
Multiple riders add flexibility to your policy
#2
Benefit periods from as little as 2 years or all the way to retirement age
Family care benefit provides coverage for up to a year if policyholder has to take off work to care for a child, spouse, or parent
10% discount to business owners and an additional 10% to preferred occupational classes.
Offers the option of Full Coverage for Mental/Nervous disabilities or a 10% discount for a 2 year limitation.
Rated A (Excellent) by A.M. Best for financial strength
What is Disability Insurance?
The idea behind disability insurance is simple.
It operates similar to a traditional life insurance plan, but instead of paying out upon your death, it pays out if you become disabled.
Coverage for these plans can vary in the size. Just like with other kinds of insurance plans, every disability policy is different.
If you already know what you want and just want to browse different rates from several carriers, click here.
Some plans are going to replace 45 %of your income, while others are going to give more replacement at 65%.
The more replacement coverage you want, the more you’re going to pay for your plan.
The Differences with Workman’s Compensation
When an employee suffers an injury on the job, oftentimes their employer will compensate them through worker’s compensation.
It is important to understand the difference between disability insurance and worker’s compensation – because the two are not the same thing.
The key difference between workers’ compensation and disability insurance is that workers’ compensation (or workers’ comp) pays for injuries that are work-related. Employers will obtain workers’ comp insurance in order to pay for incidents that occur on the job.
If workers sustain injuries on the job, it is oftentimes up to the employer to pay for the person’s medical bills, as well as for the individual’s lost wages if the employee must take time off work because of the injury.
An employee who collects payment via workers’ comp will typically, however, not have a long-term disability, but rather a temporary injury from which he or she will soon return.
On the other hand, disability insurance pays for a percentage of a person’s earnings if the insured is not able to work due to an injury or illness – regardless of whether that injury or accident happened at work or elsewhere.
In addition, if the disability insurance policy is an individual policy (versus an employer-sponsored group plan), the insured will be covered under the policy regardless of who he or she is employed through.
According to the Council for Disability Awareness, less than 5 percent of disabling accidents and illnesses are work related.
This means that the other 95 percent are not – and that these other 95 percent are also not covered by workers’ compensation insurance.
What About Social Security Disability Benefits?
It can be extremely difficult to qualify for Social Security’s disability benefits. For example, Social Security will only pay benefits if a person is considered to be totally disabled. This means that the individual cannot do work that they did previously, nor can they do other jobs either.
In addition, the person’s disability must have lasted, or be expected to last, for at least one year or result in death.
An individual must also have collected enough work credits in order to qualify for Social Security disability benefits.
You can take a look at the 2019 Social Security Administration limits and rates for OASDI and social security here.
The number of credits will be dependent on the age that the individual is when he or she becomes disabled.
With that in mind, the importance of disability insurance becomes even more clear.
This type of insurance can provide you with the additional funds that you need to help pay living expenses – without the need to dip into savings, retirement assets, or worse yet – use credit – for the purpose of paying day to day bills until you are back on the job.
If Social Security deems that a person’s situation qualifies, there is still a five month waiting period before benefits are paid.
This, too, can create a financial hardship for many people in terms of paying living expenses – especially if there are added medical costs due to the illness or injury that has been suffered.
So, we know Social Security won’t give the money you need and workman’s comp probably won’t cover it, so now what?
This is why you should explore a private disability insurance policy.
Types of Disability Insurance
The two main types of coverage are long-term disability and short-term disability.
You can probably guess from the name, but short-term policies are designed to cover employees for a much shorter time, anything shorter than two years.
Long-term disability, on the other hand, is built for anything past two years. A long-term disability insurance policy could continue to pay out for the rest of your life if it’s needed but typically runs from 5-10 years.
Some of the common causes for short-term disability insurance include:
having a baby
a severe illness
a major injury.
Long-term disability could include a lot of things, but some common causes are:
cancer
muscular disorders
cardiovascular complications
or serious injuries
Long-Term Disability vs. Short-Term Disability
Aside from the obvious, there are a few key differences between long-term disability and short-term disability.
One of those is the waiting period for a payout.
With short-term, policyholders can start receiving weekly checks as quickly as a 1 to 7 days after you file a claim for the policy.
With a long-term disability insurance policy, on the other hand, it can be anywhere from 90 days to 180 days.
If you’re looking at the cost difference between the two plans, short-term policies are going to be significantly more affordable than its long-term counterpart. Long-term plans can give you years more coverage which could translate to thousands and thousands of additional coverage from the insurance company.
Another key difference between the two kinds of plans is how you can get the coverage.
A lot of companies offer their employees short-term disability insurance, but almost no companies have a long-term disability insurance program.
If you want to get the long-term coverage, you’ll have to purchase a plan through a private insurance company. If your company offers any type of short-term disability insurance, you should always enroll in the program.
Group, Individual, Multi-life
Inside of the two main types of disability insurance are several “sub-types” of coverage.
One of those is group coverage.
These are policies which are offered through an employer and are offered to all the employees. Group coverage could be either short-term disability or long-term disability.
Employer-sponsored short-term plans are designed to pay for any disabilities which occur outside of the workplace. Short-term disabilities are much more common than long-term disabilities which could impact you for the rest of your life.
Individual Disability Insurance
If your company doesn’t have any sponsored plans, you can purchase a private policy through an insurance company.
You’ll be required to answer some medical questions and depending on the plan, take a medical exam.
Multi-Life Disability Insurance
When you’re shopping around for a disability insurance policy, you’ll probably come across plans being sold as “multi-life plans.”
The idea of these plans is to get several key people in a business (think of several doctors in a practice) to all apply at the same time with their plan.
The insurance company markets these policies as multi-life so they can offer simpler underwriting processes and pass some of the savings onto the policyholders.
Is Group Disability Enough?
For the employees who are lucky enough to get disability insurance through their employer, you still might be lacking. Just because you have a plan through your job, it might not be enough.
Let’s say you’re not able to go to work because of an accident. You can’t get to your job and pull in your paycheck, are you going to be able to pay for all of your monthly bills without having to make any extreme sacrifices.
To determine if your group disability insurance is enough, you’ll need to do some basic math.
Look at your plan and see how much coverage it provides.
For this example, let’s say it pays 50% of your salary. Now, take a look at your bills and expenses.
If the total of those numbers is more than 50% of your income, then your group disability isn’t enough.
If you’ve crunched the numbers and came to the jarring realization your group plan isn’t enough, the best choice is to purchase an additional individual plan.
Both of the policies can work together, and your individual plan can pick up the slack left behind.
What’s the Difference Between Owner-Occupation and Any-Occupation?
One of the most important things to understand about disability insurance plans are the differences between an owner-occupation plan and an any-occupation plan.
They may sound the same, but they completely change how your plan operates and the coverage it will give you.
First, let’s look at owner-occupation (sometimes called own-occupation protection). Policies with this protection will only pay out if you can no longer to the duties and tasks required to you by your job.
If you’re an electrician, but you can not do the simple tasks required on a day-to-day basis, then an own-occupation plan will pay you the benefits.
Any-occupation policies will only pay the benefits of the plan if you can no longer perform any occupation based on your education and work experience.
As you can tell, any-occupation policies have much stricter rules on the circumstances in which they will pay the policyholder.
Type of Disability Insurance
Description of Disability Insurance
Short-term disability insurance
Provides coverage for a limited period of time, usually up to 6 months, and replaces a portion of your income if you are unable to work due to illness or injury.
Long-term disability insurance
Provides coverage for a longer period of time, typically until retirement age, and replaces a portion of your income if you are unable to work due to illness or injury.
Group disability insurance
Provided by an employer as part of a benefits package, group disability insurance offers coverage to all employees and may be offered as short-term or long-term disability insurance.
Individual disability insurance
Purchased by an individual, this type of disability insurance offers customized coverage and can be either short-term or long-term disability insurance.
Own-occupation disability insurance
Offers coverage if you are unable to work in your specific occupation due to illness or injury, even if you are able to work in a different occupation.
Any-occupation disability insurance
Offers coverage only if you are unable to work in any occupation due to illness or injury.
Residual disability insurance
Offers coverage if you are able to work but have a reduction in income due to illness or injury.
How Much Does Disability Insurance Cost?
Now for the part everyone wants to know, how much is a disability insurance plan going to cost you?
Well, there are a lot of different factors which are going to affect how much the premiums are. It’s difficult for me to give an exact number without knowing your exact situation.
For example, the age of the applicant is going to play a major role in the premium rates. If a 25-year old applies for a policy, it’s going to be significantly cheaper than a plan for a 45-year old.
The general rule of thumb for disability insurance is the premiums are going to be anywhere from 1% to 3% of your gross income.
If you are making $100,000, you can budget for $1,000 – $3,000 every year.
As I mentioned, there are dozens of different factors which will completely change how much you pay.
If you’re a smoker, then you’re going to pay much more for your plan.
If you have a riskier job, you’re going to pay more.
The rule of thumb is exactly that.
How Much Disability Insurance Do You Need?
I alluded to the amount of disability insurance earlier in this article, but now let’s take a hard look at how much coverage you should have.
Not having enough disability insurance protection could cause some serious financial strain if something were to happen.
First, let’s look at your living expenses. If you don’t already have a budget, take some time to look at all of your monthly bills (power bill, water bill, mortgage payment, etc.) and your spending (groceries, gas, etc.).
On top of those monthly expenses, add in a few “unexpected” bills as well. You never know when something is going to break or an extra bill is going to pop up.
You want to have some cushion in your budgeting. Otherwise, you end up living paycheck-to-paycheck.
After you have the monthly expenses number, you can do some subtracting.
If you aren’t working, your expenses are going to look very different than they do now. For example, if you aren’t driving to work every day, you probably won’t be spending as much on gas.
You won’t be spending money on work clothes, and you will probably cut out some additional “entertainment expenses” as well.
Now you have a new number, your monthly expenses minus some tweaks.
The next number you want to add to the equation is any income you’ll make from other sources besides your disability insurance plan.
This category can include any money from your investments, money from your spouse or partner’s job (or a second job if they decide to add another job) and any additional disability income you may qualify for.
If you’re the main income earner in your home, then having disability insurance is one of the most important purchases you can make.
Key Man
For most people, they purchase disability insurance for their family and loved ones. for others, they buy a plan to protect their business.
If you’re one of the foundational workers in your business (ex. an owner, CEO, etc.), then you should consider buying a disability insurance policy for your company.
Key man plans operate a little differently than a traditional disability policy. With these policies, the business pays the premiums for the plan, and if something were to happen to you and you couldn’t perform your job, then the business is going to get the money from the payout.
These policies are a way for the companies to protect themselves against financial struggles if a key person in the business were unable to work because of illness or injury.
The company can use this money to outsource those duties or to hire someone to replace the key person while they are out with the disability.
Disability Insurance for High Income Occupations
There is a certain group of people which disability insurance could have some serious problems.
If you are a high-income earner, the standard disability insurance policy simply may not be enough. Just about every insurance company which sells one of these plans is going to have an income limit.
Regardless of the percentage they replace, they are not going to offer more than that limit.
Typically, these are doctors or lawyers who own their own firms, for example.
Some policyholders may find the insurance company’s limit is below the 60% they offer in income insurance.
If you’re one of these people, there are some things you can do to get the protection you need, regardless of how much money you make every year.
One option is to choose a company who offers higher limits. Each company has different coverage limits on their policy. We can help you shop around until you find one with a high enough limit for your needs.
Another route is to buy two separate plans from different companies. Sure, you’ll pay more in premiums every month, but you’ll have the protection in place if you ever need it.
Where to Get a Disability Insurance Quote
You now know the basics of disability insurance coverage, it’s time to go out and find a policy of your own.
There are more than 40 insurance companies which sell these plans. As I mentioned, they are all different. Some are going to have higher limits, offer a larger percentage, or have cheaper rates.
You need to find a company which suits your needs.
Before you pick a company, compare the rates and plans from several companies. You don’t buy the first house you see, why would you buy the first policy you find?
Sure, you can use your own time to contact those 40+ companies individually, or you can use a tool which will do the dirty work for you.
If you’ve decided you want to get disability insurance or supplement the coverage you already have from work, check out PolicyGenius. They are one of the few companies out there which can gather quotes from dozens of companies for disability insurance, all in one place.
PolicyGenius allows you to tailor your quotes to exactly the kind of policy you’re looking for; the perfect amount of coverage with the proper waiting period.
They know shopping for insurance isn’t easy, but they make it as quick as possible.
FAQs – Best Disability Insurance Quotes
How can I get the best disability insurance quotes?
To get the best disability insurance quotes, it’s important to shop around and compare policies from different insurance companies. You can request quotes online or by speaking with a licensed insurance agent. Be sure to provide accurate information about your occupation, income, and health to receive an accurate quote.
What factors can affect the cost of disability insurance?
The cost of disability insurance can be affected by several factors, including your age, occupation, health status, and the type and amount of coverage you select. Policies with longer benefit periods or more comprehensive coverage may be more expensive.
How much disability insurance coverage do I need?
The amount of disability insurance coverage you need depends on factors such as your income, monthly expenses, and savings. A general guideline is to have enough coverage to replace 60% to 80% of your income, but this may vary depending on your individual circumstances.
The much anticipated and hotly contested homebuyer tax credit is officially back on, though with some big changes.
Borrowers applying for an FHA loan will now be required to come up with a minimum 3.5 percent down payment, but will be able to use the tax credit for additional down payment or for other closing costs.
Originally, the FHA had it worked out to where potential homebuyers could use the tax credit for their entire down payment, though critics seemed to think that resembled questionable seller paid down payment assistance loans too closely.
“Unlike seller-funded down-payment assistance, which was a vehicle for abuse, this program will allow homebuyers to shop for the best home price and services using their anticipated tax credit,” HUD Secretary Shaun Donovan said in a statement.
“We believe this is a real win for everyone,” he said. “Today, the Obama Administration is taking another important step toward accelerating the recovery of the nation’s housing market.”
“Families will now be able to apply their anticipated tax credit toward their home purchase right away. At the same time we are putting safeguards in place to ensure that consumers will be protected from unscrupulous lenders.”
The FHA will keep close tabs on the program, collecting the names and employer identification numbers of each organization providing the service along with the associated fees and charges.
That said, homeowners should be aware of potential mortgage scams and carefully compare benefits and costs (more than 2.5% of the anticipated credit is considered excessive) when seeking out monetization of the tax credit.
“What we’re doing today will not only help these families to purchase their first home but will present an enormous benefit for communities struggling to deal with an oversupply of housing.”
Benefit for communities, or benefit for homebuilders?
Oh, a couple of paragraphs later Donovan mentions that the National Association of Homebuilders said the tax credit will help stimulate 160,000 home sales across the nation, so go figure.
Open a BMO Harris Premier™ Account online and get a $500 cash bonus when you have a total of at least $7,500 in qualifying direct deposits within the first 90 days of account opening. Expires 9/15. Conditions Apply.
The rise of online and mobile banking means that the lines between checking and savings accounts are blurrier than ever. Some digital financial platforms don’t even require you to open them separately anymore.
That’s the case for SoFi Checking & Savings, which is essentially a checking and savings account in one convenient package. If you’re not satisfied with your current checking and savings accounts, or you lack one or the other entirely, SoFi Checking & Savings is definitely worth a closer look.
What Is SoFi Checking & Savings?
SoFi Checking & Savings is a digital deposit account with separate subaccounts for checking and savings balances. Both subaccounts earn interest: the checking side at 0.50% APY and the savings side at 4.40% APY.
SoFi Checking & Savings has no monthly maintenance fee or minimum balance requirements. Some debit card purchases earn cash back, though its rewards program isn’t as reliable as the best cash-back credit cards. Other notable features include an account opening bonus opportunity, early direct deposit with a qualifying payer, federal deposit insurance above the standard limit, and free coverage for smaller overdrafts.
What Sets SoFi Checking & Savings Apart?
SoFi Checking & Savings stands out from similar online deposit accounts in several ways:
Pays interest on all balances. SoFi Checking & Savings earns interest on all balances. On the checking side, the current interest rate is 0.50% APY. On the savings side, it’s 4.40% APY. That’s well above the national savings account average.
Potential for excellent cash-back returns. You can earn up to 15% cash back on eligible debit card purchases with SoFi Checking & Savings.
No-fee overdraft protection on smaller overdrafts. You pay no overdraft fees on overdrafts up to $50 as long as you have a qualifying direct deposit set up. This is a relief if you’re known to occasionally overdraw your bank account.
Deposit insurance well above the standard federal limit. This account comes with up to $2 million in federal deposit insurance, several times the standard limit of $250,000. This is excellent news for users with sizable cash cushions.
Key Features of SoFi Checking & Savings
SoFi Checking & Savings has a generous account opening bonus, a two-tiered yield on balances, a debit card cash-back program, and some other notable features.
Account Opening Bonus
If you open your first SoFi Checking & Savings account by December 31, 2023, you could qualify for an account opening bonus worth $250.
To earn the bonus, do the following:
Set up direct deposit with a qualifying payer
Receive cumulative direct deposits totaling $1,000 to $4,999 during the 25-day qualifying period to earn a $100 bonus
Receive cumulative direct deposits totaling $5,000 or more during the 25-day qualifying period to earn a $250 bonus
Account Fees & Minimums
There is no monthly maintenance fee on this account. There’s also no minimum opening deposit or ongoing balance requirement.
Account Yield
Balances held in the savings portion of this account yield 0.50% APY. Balances in the checking portion yield 4.40% APY. There’s no minimum balance to earn interest in either case.
Cash-Back Rewards
Eligible debit card purchases earn up to 15% cash back. SoFi Checking & Savings ties cash-back rewards to specific retailers rather than spending categories, so not all purchases earn rewards.
ATM Access
You can withdraw cash without incurring any fees at more than 55,000 ATMs in the Allpoint network. Out-of-network ATM withdrawals may incur third-party charges that SoFi can’t control.
Overdraft Protection
Overdrafts under $50 qualify for free overdraft protection as long as you have a qualifying direct deposit set up for your account. Larger overdrafts may incur fees or may be declined altogether at SoFi’s discretion.
Early Direct Deposit
If your employer or benefits payer qualifies, you can get your direct deposit up to two business days early (for example, Wednesday instead of the usual Friday payday).
Mobile Features
SoFi Checking & Savings is a mobile-first online bank account with excellent ratings (4.8 stars) from more than 250,000 verified iPhone users. The app itself is comprehensive and can handle basically any demands you place on the standard desktop interface, including remote check deposit, digital bill payments, peer-to-peer payments, and external funds transfers.
Deposit Insurance
This account comes with up to $2 million in deposit insurance. You’re not guaranteed to get the maximum coverage amount, and the exact amount depends on SoFi’s arrangements with its partner banks. But it’s reasonable to expect a coverage amount significantly higher than the standard FDIC limit of $250,000.
Pros & Cons
SoFi Checking & Savings has a lot to recommend it, and a few downsides too.
No monthly maintenance fee or minimum balances
Excellent savings yield
Deposit insurance well above the standard limit
Cash back on eligible purchases
Many purchases don’t earn rewards
Not a full-service bank
Limited overdraft protection
Pros
SoFi Checking & Savings is extremely low-cost and offers excellent returns on your balances. It has some potentially valuable benefits too.
No monthly maintenance fee. This account has no monthly maintenance fee. It costs nothing to keep open, no matter how much you use it or what your account balance is.
No minimums. There’s no minimum balance to open or maintain this account, so it’s useful as a secondary account without much of a balance.
High yield on savings balances. This account yields 4.40% APY on the savings side, on par with the best high-yield savings accounts on the market.
Up to $2 million in deposit insurance. SoFi Checking & Savings offers up to $2 million in federal deposit insurance, far in excess of the standard coverage limit. If you’re fortunate enough to have hundreds of thousands of dollars in the bank, this is a notable benefit.
Potential for excellent cash-back rewards. You can earn up to 15% cash back on eligible debit card purchases, though most earn much less. Still, it’s nice to get back some of what you spend.
Above-average account opening bonus opportunity. SoFi Checking & Savings delivers up to $250 as a bonus when you open your account by December 31, 2023 and receive qualifying direct deposits within the first 25 days.
Cons
SoFi Checking & Savings lacks some important features found elsewhere in the online banking space and is somewhat isolated within the larger SoFi ecosystem.
No overdraft protection over $50. With SoFi Checking & Savings, you’re on the hook for overdrafts above $50. SoFi reserves the right to decline these transactions altogether. By contrast, many banks offer overdraft protection for overdrafts in any amount.
No higher-yielding accounts at SoFi. SoFi offers lots of other financial products, including a slew of consumer loans, but it’s not a full-service bank. If you’re looking for a one-stop shop to open a CD or money market account with even higher yields, keep looking.
Many purchases don’t earn rewards. SoFi Checking & Savings’ cash-back program rewards purchases with some retailers but excludes many others. It’s less reliable than traditional cash-back programs, which reward most or all purchases.
How SoFi Checking & Savings Stacks Up
SoFi Checking & Savings is a convenient money management package that blends the best features of online checking and savings accounts. It’s unusual — but not unique. Before opening an account, see how it compares to a similar package: the Aspiration Spend & Save account.
SoFi Checking & Savings
Aspiration Spend & Save
Maintenance Fee
$0
$0 to $7.99 per month
Minimum to Open
$0
$10
Minimum Ongoing
$0
$10
Maximum Yield
4.40% APY
3.00% APY with Aspiration Plus
Qualifying Activities
Yes
Yes
Maximum Balance to Earn
Unlimited
Yes, $10,000
Spending Rewards
Up to 4.40% APY
Up to 10% cash back
SoFi Checking & Savings is superior to Aspiration Spend & Save in most respects, from the maintenance fee (none) to the minimum balance requirements (also none) to the maximum balance to earn interest (unlimited). The biggest selling point of Aspiration is that it’s intentionally sustainable — your deposits and purchases never fund fossil fuel investments and may contribute to carbon-reduction initiatives like reforestation.
Final Word
It’s difficult to find much wrong with SoFi Checking & Savings. It’s true that the rewards program has some important limitations and the overdraft protection plan isn’t as generous as some competitors, but for most people, these are drawbacks and not deal-breakers.
That said, if you’re in the market for a full-service bank that can handle all your financial needs, SoFi probably isn’t it. Fortunately, there are plenty of online banks that do fit the bill.
SoFi members with direct deposit can earn up to 4.40% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum direct deposit amount required to qualify for the 4.40% APY for savings. Members without direct deposit will earn up to 1.20% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. Interest rates are variable and subject to change at any time. These rates are current as of 7/11/2023. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet.
The Verdict
Our rating
SoFi Checking & Savings
SoFi Checking & Savings is a two-in-one deposit account for people who enjoy earning interest and hate paying fees. With a well-above-average yield, a generous account opening bonus, and cash back on eligible purchases, it’s a very rewarding product indeed. But it’s not a full-service bank, so don’t expect it to handle all your financial needs.
Editorial Note:
The editorial content on this page is not provided by any bank, credit card issuer, airline, or hotel chain, and has not been reviewed, approved, or otherwise endorsed by any of these entities. Opinions expressed here are the author’s alone, not those of the bank, credit card issuer, airline, or hotel chain, and have not been reviewed, approved, or otherwise endorsed by any of these entities.
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Brian Martucci writes about credit cards, banking, insurance, travel, and more. When he’s not investigating time- and money-saving strategies for Money Crashers readers, you can find him exploring his favorite trails or sampling a new cuisine. Reach him on Twitter @Brian_Martucci.
The pandemic has led to job losses for many Americans, with 712,000 unemployment filings for the week ending March 6th. If you’re one of those filers, you may receive your payment automatically, but it can still help to know how the process works.
But if you haven’t received your extra unemployment payment yet, it can help to know that it varies by state. Most states have already begun processing unemployment payments, but it still could take some time. If you’re still waiting for your extra unemployment, here’s what you need to know.
What’s Ahead:
The first thing you’ll need to determine is whether you even qualify for a payment. You’ll have to currently be unemployed and receiving benefits to get the $300 payment automatically issued. But if you were unemployed between March 29, 2020, to March 13, 2021, and your benefits ran out, you may still qualify for unemployment compensation through the Pandemic Emergency Unemployment Compensation (PEUC).
If you haven’t applied for unemployment already, you’ll need to do so as soon as possible to be eligible for the extra payment. You don’t have to be unemployed due to COVID, but you do have to meet your state’s eligibility criteria for unemployment payments. If you qualify for unemployment in your state, you’ll qualify for any extra payments being issued.
Who will get the payment automatically?
If you’re already receiving unemployment benefits, you’ll receive the extra $300 payments automatically through September 6th. This is an extension of the previous $300 extra weekly payments that were set to expire on March 14th. The payments are retroactive to December 27th, so if yours is running late, you’ll still be paid for what you’re missing now. The maximum PEUC you can receive is now 53 weeks, which is more than double the previous limit of 24 weeks.
But there are some people who won’t get those payments automatically. If your unemployment benefits have run out, you’ll need to apply specifically for the PEUC program. If your benefits are on the verge of ending, you’ll have to wait until your benefits are exhausted to apply for PEUC. Once you’ve applied and been approved, you’ll go through the same weekly filing process you went through when you were on unemployment.
What happens if your unemployment ran out months ago and you were relying on PEUC last year? You’ll have to reapply for the PEUC program.
Unemployment relief for the self-employed
What about the many unemployed Americans who work for themselves? The Pandemic Unemployment Assistance (PUA) program is designed to issue $300 weekly payments to the many contract workers that are having a tough time finding work. Those include freelancers, part-time workers, gig workers, and other independent contractors who aren’t usually eligible for unemployment.
If you qualify for PUA, you’ll need to apply through your state’s unemployment office. Be prepared to submit documentation verifying that you’re eligible for assistance. To qualify, you need to be able to demonstrate that you are self-employed. This verification could include documents like tax returns, a business license, or client invoices.
Unemployed workers who combine freelance work with a W-2 job could qualify for an additional $100 each week. If you think you meet the qualifications, contact your state unemployment office for instructions.
Once it’s started, you may wonder how long you can expect the payments to keep coming. The extra $300 was originally scheduled to continue through March 14th. But it’s retroactive to December 27th. The newly-signed bill extends the extra relief through Labor Day of this year
Freelancers who qualify for PUA will also get the extra money a little longer. The American rescue plan also extends PUA benefits through Labor Day. However, the maximum unemployment benefits you can receive as an unemployed freelancer is 79 weeks. If you live in states with high unemployment rates, that may be extended to 86 weeks.
Unless a bill extending the extra unemployment is passed, on the cut-off date, you’ll resume receiving your standard unemployment benefits until your unemployment runs out. Currently, no extra compensation is planned after September 6th.
Do I have to be actively seeking employment?
The usual rules of unemployment still apply. You’ll need to be actively looking for work while receiving unemployment benefits even during COVID. But how you’ll demonstrate this varies from state to state. In some states, you’ll simply sign a statement saying you’re looking for work, while others will require you to provide contact information for the places you’ve applied.
However, there are some COVID exceptions to this general rule. If your business closed or reduced operations due to the pandemic, you might not have to prove that you’re looking for work. But this only applies if your employer has promised to call you back into work when the business resumes normal operations.
How will the payment be issued?
If you’re receiving unemployment compensation, the $300 will be added to your weekly benefits. In many cases, this is by direct deposit, but some recipients get their money via debit card or paper check. If you want to change the way your benefits are paid, you can usually do this through your state unemployment office.
For those who aren’t receiving unemployment compensation, PEUC is typically paid one of two ways: direct deposit or prepaid debit card. The unemployment office will use the last method of compensation to deposit your PEUC funds. If you received your previous payments by debit card, the funds will be deposited to that card unless you request direct deposit when you sign up for PEUC.
One great option for direct deposit is Chime®. Once you have an account, you can direct your unemployment benefits to go directly to that account. Chime will even give you access to your funds as much as two days earlier than what they’d normally be available with direct deposit.3 So if you’re eager to get it, this could be a way to consistently receive those weekly payments a couple of days early.
3 Early access to direct deposit funds depends on the timing of the submission of the payment file from the payer. We generally make these funds available on the day the payment file is received, which may be up to 2 days earlier than the scheduled payment date.
What happens if my work fluctuates?
COVID has complicated things for some workers. With lockdowns and restrictions varying, you may be called back to work, only to be laid off again a few weeks later. But if you’re receiving unemployment benefits, you may need to reach out and let your unemployment office know. In some states, you simply have to stop certifying every week and your benefits will expire.
If you’re called back to work and laid off again, there is some good news when it comes to unemployment benefits. You can pick up your unemployment benefits where you left off. This includes the extra benefits you’re receiving. You’ll continue to get benefits until you’ve exhausted the number of weeks you’re eligible to receive them or you reach the cutoff date.
Summary
Extra unemployment compensation has helped unemployed workers make it through a tough economic time. As things gradually return to normal, hopefully, unemployment claims will drop and there will be no need for a further extension of extra unemployment benefits.
In the meantime, it’s important to check with your state unemployment office to determine what unique requirements apply to your own unemployment claims.
Here is what you will need to do to complete this process: Visit the NMLS registration portal and request an account Choose the individual option Provide the information required and submit the application 2. Complete NMLS pre-license education Becoming a licensed MLO in California requires you to finish the 20-hour SAFE pre-licensing course, as well … [Read more…]
As a recent survey showed, COVID has changed the way consumers look at their finances. For many, the habits they forged during the pandemic will likely continue long after.
Here are a few of the best financial lessons consumers have learned with COVID-19.
What’s Ahead:
Emergency funds are essential
Nothing reminds you that you don’t have an emergency fund like an actual emergency.
But for many, setting 20% aside every month is just not doable. That’s what experts recommend, though. The truth is, even if you can save $10 a month, that’s $120 a year. Add a little more when you can and you’ll at least be able to cover unexpected car repairs.
But as things get better and consumers find their finances getting back to normal, they’ll shift toward thinking about the next emergency. If there’s one thing that COVID made clear, it’s that life can throw out some unexpected twists. Even if the next emergency isn’t a global pandemic, there are plenty of other things that can stretch your finances beyond their limits.
The best way to save is to make it automatic. If you can slide a little extra money into savings every month, you’ll gradually build your savings without realizing it. With the CIT Savings Builder, you can earn interest of up to 1.00% on the money in that account. See details here. The site even has a calculator that will help you see how quickly your savings and interest can add up.
CIT Bank. Member FDIC.
Health insurance is more than a mandate
For many younger consumers, health insurance was an afterthought. If you’re relatively healthy and your employer doesn’t provide insurance, it can seem like an unnecessary expense.
Throughout the COVID pandemic, though, otherwise healthy people have found themselves seeking healthcare. Paying out of pocket for testing and treatment was tough for some consumers. Even those who had insurance found they were on the hook for deductibles and copays.
The end result is that many younger people are reconsidering their choice to go without insurance. Instead of just getting the minimum coverage necessary to meet state mandates, they’re seeing how expensive illness can be without insurance. More consumers will likely shop around for the best medical coverage for the lowest rates.
Small budget cuts pay off
Millions of Americans have lost their jobs due to the pandemic. The good news is that millions of those jobs are also expected to return. But that means a large chunk of the population was temporarily without work.
Unemployment naturally leads people to scrutinize their household budgets, looking for ways to cut back. That Netflix subscription might have been essential to get you through, but other luxury expenses, like premium cable TV and nightly takeout, might have been slashed.
The pandemic, by its very nature, made it easier. There was no need to buy new clothes when everyone was sheltered at home. You might have put vacations on hold, and you probably didn’t spend as much on entertainment as you previously had. Now that you realize how expensive those little purchases are, it will be easier to take a look at them once the economy is thriving again.
Debt is a liability
When there’s a blow to your income, any debt you have can be crushing. The average U.S. household owes $90,460. For Millennials, the average household debt is $78,396, an increase of 58% since 2015.
If your income sees a boost as COVID fades, it might be a good time to start knocking out that debt. You’ll have peace of mind knowing that you’ll be able to weather any future economic crises.
One of the first moves you can take is to seek out a lower interest rate. If you have credit card debt, moving or consolidating the balances to a card with a lower APR can save you money.
Another option is a personal loan. Loans will often come with lower interest rates than credit cards, plus you’ll have one low monthly payment rather than dealing with multiple bills. Fiona will help you compare interest rates from multiple lenders in one easy process; your actual quote will depend on your own creditworthiness and loan amount.
Everything can be done online
Once the world has been cleared to go back to life as normal, there’s no doubt people will start vacationing and attending events again. But there are some things that will remain online. Long before the pandemic, Millennials already relied heavily on popular pandemic staples like food delivery apps and videoconferencing tools.
But the pandemic spread this tech awareness across all generations. As demand increased, companies stepped up to meet the need. Post-pandemic, consumers will find plenty of choices when it comes to doing everything online.
In addition to food and grocery delivery, consumers have gotten used to getting services online. If you were still going to a brick-and-mortar bank or tax preparer’s office pre-COVID, you might decide you like the online alternative better.
Last, but not least, is the biggest change the pandemic brought to the world: remote work. How does this relate to your finances? If you’re still allowed to work from home after it’s safe to gather, as many consumers will be, you’ll save money on that daily commute, lunches with coworkers, and even clothing. That’s money you can start putting toward paying down debt or investing and saving.
It’s the thought that counts
COVID had a big impact on Christmas, with many families unable to get together. Shopping shifted online for obvious reasons, but spending was still higher than the previous year.
Despite what statistics show, though, many Americans found themselves unemployed during the Christmas season. When you’re forced to make your budget stretch, you realize what’s really important.
After the pandemic, holidays, birthdays, and every other family gathering will have a different meaning. For many, simply being able to hug a loved one is the biggest gift imaginable right now. But one pandemic habit that will benefit you for many years to come is giving gifts that are from the heart without draining your bank account.
Good credit is not negotiable
There was some good news to come out of the pandemic. One of those stories was the boost in credit scores that came as a result of people not spending. Credit utilization is an important part of your credit score, so if you weren’t charging, you might have seen a boost.
Whether your credit score has increased or not, though, now can be a great time to make the commitment to strengthen your score. Instead of spending extravagantly when times are good, you can save your credit for tough times. A solid credit score and low debt-to-income ratio will help you get a personal loan or lower-interest credit card if you need it someday.
Experiences beat stuff
If you had an extra $5,000, would you rather buy some electronics or spend it on a vacation?
Would you have answered the same way a year ago?
Travel has already started to pick up, and it’s only expected to continue to increase as consumers emerge from their COVID cocoons. It’s not just that consumers have missed spending time with family and friends. They’ve also seen the value of making lifelong memories.
In the years to come, you may find yourself making those crucial purchase decisions. Is it better to upgrade to a bigger house or invest your extra money in that European vacation you’ve always wanted? When you’ve spent a year staring at the same four walls, it’s easy to appreciate the benefits of getting out into the world.
Summary
As tough as the past year has been, some good things have come out of it. It’s served as a reset of sorts, letting consumers review their financial habits and make decisions that will help them in the future.
Whether you’re ready to start planning a big vacation, saving for retirement, reducing your debt, or setting up an emergency fund, if the pandemic served as a catalyst for those changes, you can turn it into a good thing. At the very least, you’ll be prepared for any future emergencies.
Job fairs are designed to connect employers with prospective employees. They can be geared toward specific industries, skill levels or workers from a specific demographic — for example, a job fair geared exclusively toward women, people of color or veterans, according to the careers website Monster.
Of course, there are plenty of job fairs that cater toward multiple industries, and generally aim to connect people with companies looking to grow their workforces.
The main objective of a job fair is simple: to meet employers and other professionals in your industry, learn about career opportunities, sell yourself and your skills, and (hopefully!) make a connection that leads to a job. Knowing how to best utilize job fairs can ensure you get the most out of the experience.
How do you find job fairs?
You can find information about upcoming job fairs online, especially on LinkedIn. Since the goal of job fairs is to attract as many companies and candidates as possible, the fairs are typically well-advertised online. A simple Google search for career or job fairs in your area can show you upcoming fairs and events.
You can also search for job fairs by industry or demographic — for instance, job fairs that cater to STEM companies or the LGBTQ+ community. On that note, double check that the job fair you’re planning to attend isn’t designed for an industry or group that’s irrelevant to you. And if you don’t have access to a computer, your local public library should offer internet access free of charge.
Also, if you’re going to a job fair, make sure you’re not accidentally signed up for a hiring event. Hiring events are very different from job or career fairs. At hiring events, companies conduct on-site interviews with candidates for open positions, according to Indeed, the career listings website. These events require much more specific preparation than job fairs or career fairs, where the objective is to connect candidates with their peers and employers in their industry.
What to wear to a job fair
You can dress business casual for most job fairs, according to Jobcase, a careers resource website. Think, not quite a suit with cufflinks, but definitely not blue jeans. Jobcase recommends you dress “one level up” from your current role; so if you’d be OK wearing slacks and a polo to work, consider wearing dress pants, a shirt and a tie.
Some ideal tops include button-downs, polo shirts, blouses and dress shirts — if possible, something with a collar.
Pants, slacks, chinos, khakis, dress pants or a skirt are all great options for a job fair. Wear solid and neutral colors, keeping patterns to a minimum (unless you’re interviewing at Chanel, of course). And make sure anything you wear is clean, crisp, ironed and stain-free.
If you wear a skirt or dress, it’s best to play it safe and not wear anything cut above the knee, according to the Career Services Office at Austin Peay State University in Clarksville, Tennessee. It’s a little antiquated, but lots of people have traditional ideas of what constitutes an “office-appropriate” outfit — and one of them might be in a position to hire you.
Leave the sandals or sneakers at home in favor of dressier shoes, according to advice from the State University of New York. Closed-toe dress shoes — like Oxfords, brogues and loafers — are always a good bet.
Flats, dressy mules and heels — all closed toe — are great options, too, though you might want to save the strappy stilettos for a night out. Your heels shouldn’t be more than 1 or 2 inches high, according to Rutgers University’s Office of Career Exploration and Success.
If in doubt, Rutgers recommends you check the dress code requirements for some companies in your industry, or even a company you’d like to work for.
What to bring to a job fair
What you should bring to a job fair depends on your industry. Generally speaking, you’ll want to bring several copies of your resume and business cards, according to Randstad, an international human resources firm. Also, depending on your industry, you should bring a portfolio showcasing your past projects, designs or campaigns.
You can also bring “targeted resumes,” according to Indeed. Unlike a standard resume, targeted resumes highlight skills and achievements relevant to a specific industry. For example, if you’re in sales but want to pivot to customer service, a targeted resume might highlight your customer retention or communication skills.
Make sure your business cards include your name, home city, contact information — phone and email — and links to your LinkedIn or professional website, per Indeed. You should also include either your existing job title and employer, or a general job title that covers the breadth of your experience.
Finally, don’t forget to prepare your “elevator pitch,” recommends Randstad. That means being able to summarize yourself, your skills and your career goals in 30 seconds or less.
How to prepare for a job fair
The night before the job fair, go to your LinkedIn and make a post about the job fair, says Johnny Roccia, director of career services at Ama La Vida, a career and life coaching firm. (And if you don’t have a LinkedIn, make one, Roccia says.)
According to Roccia, a job fair will most likely have a hashtag, so look it up and include it in your post. You can then use your LinkedIn to keep track of everybody you meet at the fair by quickly sending connection requests. You can even make a QR code that links back to your LinkedIn profile, Roccia says. Include the QR code on business cards, a professional folio, or even set it as your phone background for easy accessibility.
Another big tip from Roccia: Don’t think of job fairs only as places to get jobs. Rather, think of them as networking fairs that’ll get you closer to the job you want — and help you meet people who could advance your career in the future.
“Job hunting is something that fades away, and you don’t have to do as much if you focus on building your network throughout your whole career,” says Roccia.
And don’t think of a job fair as a failure if you don’t walk away with a job. Rather, think of it as a chance for you to meet people in your industry and build connections that could eventually lead to jobs.
“You can be 50 steps closer to your next goal because you don’t know which one of the recruiters at that job fair is going to be hiring for your perfect thing next month,” says Roccia.