By Peter Anderson9 Comments – The content of this website often contains affiliate links and I may be compensated if you buy through those links (at no cost to you!). Learn more about how we make money. Last edited February 13, 2009.
This Valentine’s Day you won’t be seeing any of those “10 Ways To Be Frugal On Valentine’s Day” posts on this blog. The reason? We’re not going to be frugal this year. We’re just going to go all out, and have a good time regarless of the cost. We’re going to spend whatever it takes to make a memorable day!
In past years we’ve been extremely frugal on this romantic holiday, finding ways that we could make the day special, yet still low cost.
We would make a romantic dinner at home, celebrate a day early or late, or use coupons for local restaurants to get a discount. We were pretty successful in finding ways to make it frugal.
This year we decided to set aside some money for a romantic weekend to just get away and reconnect. It’s already been a hectic year, and we really needed some time away with each other. We decided that we would just do what we wanted this year, regardless of cost (within reason) and take time to just be with each other.
So this year we decided to do the following:
Relaxing breakfast together at home.
1 hour couples massage.
Dinner at a nice restaurant with special Valentine’s Day package.
Staying at a nice hotel.
When all is said and done we’re spending probably close to $300 or more on our romantic weekend. Could we have spent less? Probably. I really believe, however, that it’s OK to splurge sometimes, as long as the following conditions are met:
You’re not deeply in debt.
You save up for the splurge and pay in cash.
Don’t go overboard and harm future savings.
So as you’re reading this we’re probably out and about, enjoying our day. Ahhh.. Being without debt is so freeing!
What are you doing for Valentine’s Day? Do you celebrate it, and if you do, are you spending a lot of money this year?
I am a huge believer in setting goals to help myself achieve more in life and in business. I love to make big real estate goals that are tough to achieve because I know they will help me accomplish more. Because I set really big goals, I do not always accomplish everything I set out too, but that is okay. I know I am still farther ahead not accomplishing big goals than I would be accomplishing small and easy goals. 2015 was a good year, but not as good as I hoped. I ran into many roadblocks (some of the same as 2014), but I also had many successes. Even though things did not go exactly as I planned, I had a great year, I have big plans for the future and I am going to challenge myself even more in 2016.
My goal articles for other years
Why do I like big real estate goals?
Before I get into exactly what happened and did not happen in 2015, I want to discuss goals. I overlooked goals when I was younger and it was a huge mistake. I thought goals were a waste of time and I never even tried to set any meaningful goals. When my career and life really started to turn around was when I accidentally set some goals as a real estate agent. I wrote out a very detailed plan on how many houses I would have to sell to make what I thought was decent money back in 2005. I gave that plan to my dad, who I was working with at the time to show him how unfair my commission split was. He didn’t change the split I was getting, but I did end up selling that many houses a couple of years later. When I wrote that plan, I thought it was an incredibly ridiculous number (100 houses a year). I know I would not have sold that many houses as a real estate agent if I had not written out that plan, even if it was by accident.
I started to make good money and I realized I wanted to make even more. So I started reading every book I could on goal setting, self-improvement and even “how to get rich”. I even took Jack Canfield coaching, which helped my career tremendously. Along the way, I learned a lot about myself, about habits I needed to have to be successful and how to continuously improve. Many people with life would get easier and are looking forward to a time when they can relax. I learned that challenges are fun, and solving problems is fun. Being bored with no challenges and an easy ride is not fun. I love Jim Rohn’s quote:
“Don’t wish life were easier, wish you were better.”
I started to realize I was in control of my life. If things weren’t going how I wanted them to go, I could change things by changing the way I did things. That may remind you of the saying:
“The definition of insanity is doing the same thing over and over again, but expecting different results.”
Honestly, this saying is one of my biggest pet peeves. First off, many people attribute this saying to Albert Einstein, but there is no record of him ever saying it. Second if this were true, 95 percent of the population would be insane. Sometimes doing the same thing over and over does change the results, if you do the same thing better and better every time you do it. While I think the saying sends a good message about trying new things if something is not working, it still bugs me that it is used so much and wrongly quoted to Eisenstein.
Making big goals is one reason I have accomplished so much. One of my biggest goals is to buy 100 rental properties by 2023. When I first starting buying rental properties I thought a good goal would be to buy 30 properties. I based this goal on my trend of buying 3 properties a year and thought I could continue that trend for ten years. After learning about goals and how to best use them, I knew I had to make my goal bigger. If I knew I could achieve my goal without changing much, I knew my goal was too small. I changed my goal to purchase 100 properties in the next ten years. That goal would challenge me to make more money, find new ways to buy properties or discover other ways to get more properties than I thought I could. While I am a little behind on my plan to reach 100 rentals, I am much farther ahead than my original goal to buy 30 houses.
What were my rental property, fix and flips, team and blog goals for 2015?
2015 rental property goals?
At the end of 2014, I wrote a goal article about what I had accomplished in 2014 and my goals for 2015. Below you will find the goals I set for 2015 and comments on how I did.
I want to get back on track buying as many rental properties as I can. I am going to flip fewer homes, which will give me more capital to buy rentals. I am also refining my direct marketing campaign, which should bring me more deals (I will have an upcoming article to discuss my direct marketing). I want to buy at least seven rentals in 2015 and that should put me closer to my goals of 100 rentals by 2023.
I only bought five rentals in 2015, which was less than my goal, but more than I bought in 2014. However, I am thinking about turning a couple of my flips into rentals, which would put me at my goal. I have one flip that I intended to sell quickly unless the tenants wanted to stay. The home was rented for $1,100 a month and I bought it for about $100,000. The tenants wanted to stay and we just upped their rent to $1,300 a month and they still want to stay. I have not done any work to the property and I think I may try to sell it as-is for $150,000 as with the tenants in place or I might keep it as a rental. My hesitation about keeping it as a rental is the location is a little different from most of my rentals.
I have another flip that I may turn into a rental as well because it is in a great location and could have a basement apartment. If I decide to make those properties rentals I would have met my 2015 goals. In fact, I may have surpassed them if you look at units because both of the new rentals would be 2 unit properties and one of the five other rentals I bought in 2015 was a 2 unit property as well.
To learn how to use mindset and attitude to make yourself more successful, check out: How to Change Your Mindset to Achieve Huge Success: Why your attitude and daily habits have more to do with making more money and having more freedom than anything else. A 200-page book available as an eBook or paperback on Amazon.
2015 fix and flip goals?
For 2015 I am not going to be as ambitious on my flipping goals. My goal for 2015 is to flip 10 houses and wholesale 5 to 10 more. I have 8 flips right now so reaching ten should not be a problem, but I might sell a couple I have now as wholesale deals. If anyone is interested in some Northern Colorado deals, let me know! There are a number of reasons I don’t want to flip 15 houses in 2015.
It takes too much babysitting of contractors and I would need to add at least a couple more.
It takes a lot of capital to fund all those flips and the repairs. I think all the flipping made it harder to buy rentals.
I can still buy as many properties, but instead of flip them myself, I could wholesale the properties.
In 2015 I will flip 9 houses. This is less than the ten I wanted to flip and I should have flipped many more. The biggest problem was I could not get houses fixed fast enough. I even hired a project manager full-time to get things done faster and it has not changed anything. I love flipping houses and I have realized that I am addicted to buying houses. I did wholesale two properties in 2015, which was nice. On both deals, I made close to $20,000 without doing any work at all. I would still be open to wholesaling more properties if the opportunity arises, but those were unique properties. One was in a very small town that was perfect to wholesale because it was 45 minutes away from me and the other was a college rental that needed a ton of work.
2015 real estate team goals?
For 2015 I want my team to sell 200 houses, which is a big pullback from my previous goal. REOs and HUDs are even harder to find in 2015 than in 2014, which will decrease our sales. However, the new team members and training we implement should increase the number of sales from the other agents. I also want to add a couple more agents and my goal is to have every agent on my team make $100,000 a year.
In 2015 we did add two new agents and almost added a couple more to our team. They have just gotten started, but are doing awesome so far. One of my agents that was hired in 2014 made well over $100,000 in his first year, which was awesome. We did not sell 200 houses, we sold 127. That is way below my goal, but our market keeps going crazy. Prices have increased and even though we sold fewer homes, the value of the homes was much higher. HUD homes and REO properties have decreased even more and the sales have shifted from me to my team, which is exactly what I wanted.
2015 goals for InvestFourMore?
For InvestFourMore I want to increase traffic, increase my relationships with other investors and blogs and continue to improve my investing strategies by learning as much as possible. Here are some specific goals:
300,000 views a month by the end of 2015
Implement a new real estate agent success system
Borrow private money through the blog in 2015
Improve or create a new forum for InvestFourMore
InvestFourMore has done awesome and I have the most fun working on it than I do anything else. I did not hit 300,000 views, but I am very close! I have a new source for private money, that was from the blog. I knew the investor before I started the blog, but he approached me about lending money after reading about my business on the site. I created the new forum and it has been a success as well. I also created a new Facebook Group, which has been very successful and you are all welcome to join. I did many more things with the blog, including starting a high-level mentor program (email me if interested: [email protected]).
2015 personal goals for 2015?
I don’t have any big goals for 2015 as far as car buying. I would love to buy an Aston Martin V8 or Lamborghini Countach at some point, but I don’t plan on doing it in 2015. I have personal income goals and a few more that I will keep private. I can’t share everything!
The year was a good one personally and I did not buy any more cars. I did meet a lot of great people and I started a new blog about cars: Howdidyouaffordthatcar.com. I have not had time to do too much with the site yet, but I plan to work on it little by little. I didn’t reach many of my personal goals for income, but I achieved many others I did set.
What are my new goals for 2016?
As you can see, I did not achieve many of my goals for 2016. That may seem like a disappointment, but it is actually a good thing. If I had achieved everything, that would mean I set my goals too low and did not challenge myself enough. I also know there is a lot of room for improvement! Below are my new goals and some things I plan to do to achieve them.
2016 rental property goals?
For 2016 I want to buy 10 more rentals! Yes, that is a huge number, but I think I can do it. Here are a couple of things I am going to change to reach that goal:
I am working on refinancing 8 of my rentals into long-term 30 year fixed rate loans. I am using some national portfolio lenders. I will pay a little higher rate, but have my loans locked in and get $300,000 in cashback. My properties will still cash flow and I will be able to buy many more rentals with that money that cash flow as well.
I am thinking about investing in other markets. I bought a turn-key property in Ohio in 2015, but for future rental property purchases, I want to buy below market value. In order to do that in another market, it will take a lot of work. My reason for switching markets is the huge appreciation we have seen here. It is getting harder and harder to find great cash flow.
I am looking for a new local portfolio lender. My portfolio lender is getting tougher and tougher to work with now that I have hit a certain dollar amount of loans with them. That is one reason I am considering refinancing 8 of my properties with another lender. I would also love to find a lender who does not have a seasoning period, which would allow me to refinance properties faster and get some of my investment back.
fix and flip goals for 2016?
For 2016 I want to flip 20 houses! Yes, this is another huge goal for the new year. This will double the amount of homes I flipped in 2015, but I think it is possible as well. It will be tougher if I decide to keep two of my current flips as rentals. Here is why I think I can make this happen:
I have ten flips going right now. I will get these ten flips sold in the first half of the year. I have two more flips under contract, which would leave me with 12 flips. I only have to buy 8 more, get them repaired and sold before 2016 is over.
I think I can buy and repair that many homes in the next year because I am changing my repair process again. I had a vision in place for 2015, which has not happened. However, I am going to make it happen in 2016 and that may take some big changes in the way repairs are handled.
I may look into more financing options with my flips. I already have a new private money lender who has made the process much easier. While he charges more than my portfolio lender does on my flips, I can close in a couple of days. I may look into adding more private money lenders as well.
real estate team goals for 2016?
For 2016 I want to hire another really good agent. I do not want to hire too many agents, because we don’t have space for many more! I also want to focus on getting leads for our team through our website FergusonGreeley.com. I think we have some great agents in place, we need to get them trained and performing as well as possible, before adding more. Again I want to sell 200 houses in 2016, this goal may seem too high, but one of these years I will get there! How will I meet these goals?
Focus on organic leads through our website, utilizing everything I have learned from InvestFourMore.
Use Facebook to generate leads and sales for our team (we already do this and have had great results).
Weekly training meetings and great support for our agents (we already do this as well).
Flipping more houses will generate more leads and opportunities for our agents.
blog goals for 2016?
For 2016 I want to keep increasing traffic and the number of people I help buy investment properties or make more money as an agent. Here are some goals:
500,000 views a month by the end of 2016. As a site gets bigger and bigger the traffic increase slow down. I still want to grow the site, but I also want to focus on helping people more than getting the biggest audience possible.
Focus on a few core things. With a blog or website, you can get sucked into 1,000 different activities that take a ton of time. I started a podcast in 2015, which has been awesome and should be a core activity, I think my coaching products should be a core activity and writing articles.
I want to write a really awesome book. I have written five eBooks that can be downloaded as a PDF or read as a Kindle eBook. I think the books are good, but I want to write an awesome book. I have already started writing an extremely in-depth book on rental properties that will be available as an eBook and a physical book that can be ordered and delivered to your door. I want this book to be the best rental property book available. I am also working on a book that I am co-writing with J Scott.
personal goals for 2016?
I don’t disclose what I make or how much I want to make on the blog because I try to keep at least a few things private! I do have personal income goals, business goals, and many other personal goals. Here are some long-term goals I added to my bucket list. I don’t have dates yet for when I want to accomplish these, but I am working on that.
Buy an old plantation and fix it up. I love old houses and old mansions. At some point in my life, I would love to buy an old plantation house and fix it up.
Start a used car dealership. I have already looked into starting a car dealership so that I can buy more exotic cars. I love cars and my dream job would be to buy awesome cars all day long, selling them is tougher for me. I met some really cool people this last year, including some guys who started a car dealership.
I want to buy a 1980’s Aston Martin V-8 in 2016. Prices on these cars are going up and I want to buy one before they skyrocket as my Diablo has.
Conclusion
Over the last year, I have learned a lot, changed the ways I do business and had a lot of fun. I think I can improve things immensely in 2016. One reason I think I can improve things is because of my personal habits and routines. I learned many things over the years about success and once you reach some level of success it is easy to slack off. I did slack off on my daily routines, goal reviews and personal improvement over the last year. I have made a huge effort to get those habits back on track in the last three months. I am really excited to get things started in 2016 and see what happens!
I have many big goals for 2017, and I had a very eventful and exciting 2016. I made many big goals for 2016, some I reached and some I did not. I never get disappointed when I do not reach my goals, because I know I do better with big goals, rather than easy goals. I also know I have to adapt and change my goals as the year progresses, because things happen I cannot predict. Goals have been a huge part of my success and what propelled my career as an agent and investor about ten years ago. Every year I write a post about my goals for the new year, and how I did in the previous year. This helps me be accountable and more successful.
My goal articles for other years
How did I accidentally start making goals in 2006?
I made a whopping $28,000 in 2006 as an agent and flipping houses with my dad. It was not a good year for me for a number of reasons. That year I decided to do much of the work myself on a flip, which was a huge mistake. When I did that flip it was incredibly stressful and ended up costing me money because it took so long. I was too busy to sell houses or finding new houses for us to flip. I had a lot of credit card debt and I knew something had to change. I decided to write a letter to my dad who ran our team, which detailed why my pay structure was not fair. I ran a bunch of numbers showing how many houses I would have to sell to make as much money as other people on our team, and how ridiculous it was. At the time I was selling less than 15 houses a year, and my letter explained I would need to sell over 100 houses to make the money I thought I was worth.
My dad was not very impressed with my letter, but writing it put a plan in my head. I wondered if I could sell that many houses. What if I stopped depending on others to make me successful, and did it myself? I had accidentally created goals for myself, even though in the past I had always resisted setting any goals (most likely because I was afraid I would not achieve them). Shortly after writing that letter I decided to become an REO agent. I sold 50 houses two years later, and a few years after that sold 200 houses. Because of the money I made in REO, I was able to buy 16 rentals, flip many more houses, and buy out the real estate team from my dad. I also learned how important it was to set goals, be positive, relax, and plan my life. I wrote a book that goes over everything I do to be successful: How to Change Your Mindset to Achieve Huge Success: Why your attitude and daily habits have more to do with making more money and having more freedom than anything else.
What were my real estate goals for 2016?
Below are summaries of my 2016 goals.
Rental property goal: Buy 10 rental properties in 2016.
Refinance 8 of my rentals.
Find a new portfolio lender.
Find a new market to invest in.
Fix and flip goal: Flip 20 houses in 2016.
More financing options from private money and lenders.
Refine the repair process.
Find more houses to buy.
Real estate team goals: Sell 200 houses in 2016.
Get more leads from our website.
Hire at least one new awesome agent.
Use Facebook more to generate leads.
Generate more leads through house flips.
Blog goals in 2016: Increase traffic and publish a new book.
Focus on how I can help people the most.
Create a paperback book on rental properties.
Get more focused on core activities.
Personal goals: I had some personal goals not specific to 2016.
Buy an Aston Martin V8.
Buy an old plantation and fix it up.
Start a car dealership.
How did I do on my rental property goal for 2016?
I bought zero rental properties in 2016! I wanted to buy 10 rentals in 2016 to catch up on my goal to buy 100 rentals by 2023. However, buying rentals in Colorado has become impossible if I want to come close to cash flowing as I did in the past. I did look at buying rentals in another state and even went to Florida to check out a couple of markets. I liked the markets but never bought anything in the area. I have developed some new goals that involve local investing in Colorado, but not with single-family rentals. I do not feel bad for missing my goal by so much, because I did not want to force bad investments. I even sold a couple of rentals that I thought were not performing as they should. I have some new and exciting plans regarding rentals for 2017 that involve local investing again.
How did I do with my fix and flipping goals for 2016?
I sold 18 flips in 2016, which was just shy of my goal to sell 20. I am very happy with that result as it almost doubled what I did in 2015. I love coming up just short of my goals because I am pushed to work hard until the very end of the year to achieve them. I never feel bad for not reaching a goal, because I know I do better with goals than without them. The ultimate point of a goal is to do as good as you possibly can, not to achieve that goal.
I found more financing in the form of new private lenders and a new local bank.
I have a much better repair process in place and even hired a full-time handyman. Nikki True became my project manager and has done an awesome job. I hired a project manager in 2015, who did not do an awesome job and really set me back.
I found a local wholesaler to buy houses from and bought a house from the local foreclosure sale, which I had not done in years.
How did I do on my goals with the real estate team?
My real estate team did not sell 200 houses in 2016, we sold about half that. Again, I am not disappointed, because the average dollar amount of the houses we sold went up. Colorado also has an incredibly hot market causing HUD homes and REO properties to virtually disappear. When I sold 200 houses a few years ago, I sold those almost all myself. It was a lot of work, but now my team sells almost every house freeing up my time. Justin Gesso has done an awesome job managing the team. We also have the lowest inventory of houses for sale we have ever had in our market. It is hard to sell many houses when there are no houses for sale! I also made progress on my other goals with our team.
We are getting many more leads from our website for our agents. We have not been able to get much traffic from Google searches, but we have done great with Facebook advertising.
We hired a new agent, who did not do very well. We hired another agent who has been doing amazing. We also have another new agent joining our team this month, who I think will do very well.
My agents sold a few of my flips in 2016 as well, which made them money and made me more money. We have been doing a great job of generating leads with the flips before and after they are listed for sale.
Did I reach any of my goals with my blog?
I did not reach my traffic goal with my blog, but I was not spending as much time on the blog this last year as I planned too. The flipping business required a lot of my time, but I did still reach some goals. I was able to publish: Build a Rental Property Empire: The no-nonsense book on finding deals, financing the right way, and managing wisely. The book did incredibly well, was an Amazon best-seller, one of the top ten Amazon real estate books most of the year, was published in paperback, and as an audiobook. I also published three other books in paperback and wrote another book on the attitude and mindset that I mentioned earlier. I have been less scattered with the blog.
How did I do on my personal goals?
I did not reach any of my personal goals that I posted last year. I did not buy any new cars, a plantation, or start a car dealership. However I reached some personal goals that are too personal to post online, and I have some big plans for the next year!
What are my real estate goals for 2017?
I had some really big ideas in 2016 that I think will make me much happier and more successful in the coming years. I have done well with the flips, but I think they can do even better. I have done poorly with the rentals, but I know I can change that. My team can make some big improvements as well with the blog.
Rental property goals for 2017
I do not have any specific goals for the number of properties I want to buy in 2017. I have changed my strategy, and want to buy a large commercial/industrial building in my area. I may still invest out-of-state in the future, but for now, I am focusing on a new strategy. I want to buy a 50,000 square foot or larger building that I can split into 5 units or more. I can rent out those units, have space for my own cars and building supplies, and add value through improvements and increased rents. I have looked at many buildings already, and I feel this is the best option for rentals at the moment.
Fix and flip goals for 2017
I want to sell 30 flips in 2017, which would be 12 more than I flipped in 2016. This may seem like a huge jump, but I have 16 flips in my inventory right now. I should have all of those properties sold by July, which means I won’t have that far to go the second half of the year. I have the money lined up, I have been able to find that many properties, and I have my repair process in place to flip 30 houses or more a year.
Real estate team goals for 2017
I keep making a goal to sell 200 houses with my team and coming up way short. I still think we can sell that many houses, and we have the team in place to do it. We are also adding at least one more agent at the beginning of the year. My goal again is to sell 200 houses in 2017 and one of these years I will hit it! I have some other really big goals and ideas for my team, which I cannot share publicly yet.
Blog goals for 2017
For the blog I want my traffic to increase, but I am not focused on that this year. There are so many things out of my control with Google, and that is where most of my traffic comes from. I really like writing books, even though it takes a lot of work and time. When I write a book, it is very similar to a rental property the way it produces passive income. While I did not buy any rentals in 2016, I increased my passive income greatly with my books. I am writing another book on the basics of buying and selling houses, which hopefully will be out in the next couple of months. I am still working on another book with a partner, which will be out this year. I want to hire some more people to help with the blog so it is not taking up quite as much of my time. I will continue to write, but I want someone else to handle some of the other aspects.
Personal goals for 2017
I still want to buy an Aston Martin V8, but they have shot up in price like my Diablo. I also want to buy a Countach, a Mercedes SLS, a Ford GT, and many other cars! I cannot buy everything or anything at the moment, because I am out of garage space. I also have some big ideas regarding my personal goals, and the big building I want to buy. I cannot disclose them all right now, but hopefully, I can shed some more light on them later in the year. The good news is that values on some cars are starting to decrease a little, but I do not want to make a goal to buy one in 2017, because of so many other things going on.
Conclusion
2016 was an exciting and fun year, even if not exactly as I planned. I hope to continue much of the projects I started in 2016, and start some brand new ventures. I know I was not as detailed about my goals for 2017, but I can talk more about them as the year progresses. If things go as planned, it will be an awesome 2017!
Remember to set big goals for yourself, and not to be afraid of missing them. Goals are there to motivate us and keep our minds focused on what is really important.
The thought of selling your home can be overwhelming. There is a lot to consider, like finding and working with a real estate agent, determining market value, deciding what you need to do to sell your home in a timely manner, and even settling on the right time of year.
As a result, many homeowners become overwhelmed with making repairs, painting, and sprucing up curb appeal to attract buyers. Although there is a lot a homeowner can do to attract buyers and increase their chances of a sale, there are some things out of their control, such as the season.
Many homeowners who are under pressure to sell their homes in a certain amount of time might not be able to control the season in which they need to put their homes on the market. In fact, statistics consistently show that spring is the ideal time of year to sell a home, but what if you have to sell your home during the winter?
Winter home selling isn’t impossible, but it can be more difficult. However, there are some small, inexpensive measures you can take to improve the look, feel, and comfort of your home so that it appeals to buyers, even during the colder winter months. In this article, we provide nine simple tips for selling your home during the winter that won’t break the bank.
1. Spruce Up the Front Door
Something as small as a festive wreath or a coat of paint on the front door can drastically improve the overall look of your home and make it feel more welcoming. In addition to adding a bit of flair, make sure your porch area is clean and well maintained. The first thing buyers see is the entry, so it’s setting the precedent for the entire house.
2. Avoid Over-the-Top Holiday Decor
Although sprucing up your front door is a great idea, avoid decorating your home and yard with over-the-top holiday decor. White holiday lights are nice, but overdoing it and littering your front lawn with tacky, plastic holiday decor and blow-up characters will turn potential buyers off. It’s okay to get into the holiday spirit, but when you are trying to sell your home, less is more.
3. Keep it Warm and Cozy
Before you host an open house or open your home to showings, make it warm and welcoming! Make sure the heat is set at a warm, but not hot level, and light the fireplace if you have one. Not only will this help your home feel more comfortable in the winter, it will also help it feel, well, homey.
Learn about the Homie way: Selling your home.
4. Curb Appeal Matters
When the weather is cold and frightful, it’s more difficult to keep up with the exterior of your home. Although it’s normal to forget about landscaping until the spring, if you are trying to sell your home, there are a few things you can do to boost curb appeal. Keep the sidewalks and driveways free of snow, and make sure to salt any ice. You don’t want buyers slipping and sliding while they visit! Go the extra mile by clearing snow off of bushes and shrubs so buyers can get an idea of what the yard will look like when it’s in bloom.
5. Let in Natural Light
The winter is naturally a darker time of year than other seasons. Keeping curtains closed and shades drawn can leave a home feeling dark and empty, even if it isn’t. Let natural light in as often as possible to show potential home buyers how bright it can be.
If your home has smaller windows or is located in a shady area, be sure to pull open the blinds or shades. You can also adorn your rooms with light-colored curtains to help bring in more natural light. Avoid room-darkening curtains and blocking out your windows with clothing or blankets. It is also a good idea to throw away any broken blinds or shades.
6. A Fresh Coat of Paint
There are a lot of things you can’t control during the winter, like a blizzard on the day you had four scheduled tours. However, you can control how your home looks on the inside. A fresh coat of paint is a great way to show off how well you’ve taken care of your home, inside and out.
7. Outdoor Lighting
Lining your porch, walkways, driveway, or gardens with exterior lighting is a great way to light up your home—literally. You don’t even have to hire an electrician or purchase expensive light fixtures. You can purchase exterior lights that stick in the ground or sit atop the posts on your fence or porch, go the “green” route and purchase solar lights.
8. Repair It
Although we’ve primarily focused on easy and inexpensive ways to improve the curb appeal and interior look of your home, more in-depth repairs may be necessary.
If you are on a budget, take the time to prioritize repairs and upgrades. Start by making a list of issues that need to be addressed.
Are any windows broken? Are any shingles missing on your roof? Are there any holes in your walls or broken pieces of trim or tile? These issues can make your home undesirable compared to others in the area. No one wants to buy a home that needs major work in the winter.
9. Sell With Homie
Although the winter may not be an ideal time to try to sell your home, it is possible. Start with the tips above, and finish by selling your home with Homie! You can save tons of money to invest in a new home because you’ll pay a low fee to list, market, and sell your home with Homie.
Start now!
Want more blogs about selling?
Who’s Involved in Selling a Home? What’s a Listing Agent?
A fabulous, 8,250-square-foot Brooklyn Heights brownstone has hit the market this month, with a $14.5 million asking price and a very long list of modern amenities.
Lindsay Barton Barrett, Christina Abad and Cristina Criado of Douglas Elliman have been tasked with finding a new owner for this newly renovated home, and we think it won’t take them long to get the job done.
The home is located at 81 Pierrepont Street, in the heart of the Brooklyn Heights Historic District of New York City, and offers 6 bedrooms, 5 bathrooms and an endless array of elegant touches. It is located within a four-story, eight-unit building constructed back in 1854, but a recent renovation by The Brooklyn Home Company has brought it to modern standards.
The interior of the house offers anything and everything that a prospective homebuyer might look for. Though the space is divided between levels, accessibility is not a problem, as the home boasts a beautiful staircase, as well as a personal elevator.
Walking into the parlor level via a classic high-stoop vestibule entry, you’re greeted with abundant natural light and a cozy, homely atmosphere. The focal point of this level is the intricate gas fireplace flanked by comfortable couches, while massive windows offer a glimpse into the world outside.
White oak floors then lead you into the open kitchen, which is equipped with state-of-the-art appliances, including a massive Carrara marble island and a retro-style stove.
Just below the kitchen, a garden entry leads you to a spacious family room featuring a wet bar, as well as a room that can be used as a den or a guest room, which includes a full bathroom, plenty of closet space, and a powder room. Right below, there is a fully finished cellar with a wine room, storage space and a recreation room.
The second level houses a full-floor, breathtaking master bedroom complete with three walk-in closets, a massive bedchamber overlooking an outdoor terrace, and a spacious master bathroom.
Going further up to the third level, you’ll find two more bedrooms, each featuring custom walk-ins and private baths, as well as a full laundry room with washer and dryer. The fourth floor offers another two bedrooms sharing a spacious bathroom, and a sunny family room with a gas fireplace.
The crown jewel of this Brooklyn home is found on the top level, which opens up to a massive roof deck with exquisite city views. The 900-square-foot deck comes complete with a fully stocked outdoor kitchen and a grill area for entertaining guests and enjoying the summer evenings.
The building also offers some crucial amenities for the future homeowners, including a laundry room, storage space and parking. Just a few steps away lies the Brooklyn Heights Promenade, with Cadman Plaza to the east and Brooklyn Bridge Park just minutes away along the waterfront.
We think this fabulous brownstone checks all the right boxes, but if you’re still on the fence, be sure to reach out to the brokers and maybe get a house tour to convince yourself of this home’s beauty.
More stunning homes in NYC
Greta Garbo’s Longtime Apartment in New York Lists for $7.25 Million You Can Now Rent Biggie Smalls’ Childhood Apartment in Brooklyn for $4,000/Month Audrey Gelman’s NYC Home is Full of Character (and Color) The Many Famous Residents of the San Remo, NYC’s First Twin-Towered Building
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In recent months the FDIC has managed two of the largest bank failures in U.S. history. The collapse of Silicon Valley Bank (SVB) and Signature Bank happened shockingly fast. And First Republic wasn’t far behind. Consumers have plenty of questions, as the banking sector looks shakier than at any point since the 2008 recession. But perhaps the biggest is also the most basic: is my money safe? The good news is, yes. The federal government acts to protect bank deposits in a number of ways. The two most important, and effective, are insurance and liquidity. For help managing your money and preparing for potential future bank failures, consider working with a financial advisor.
The Federal Government Insures Deposits
The most direct way that the government acts is through depository insurance. For banks, this is managed by the FDIC (Federal Deposit Insurance Corporation). For credit unions, which operate similarly to banks, deposit insurance is managed by the NCUA (the “National Credit Union Administration”).
In both cases, the government insures each depositor at each institution for up to $250,000. This means that if the bank fails and its assets are wiped out, the government will reimburse you for any and all lost money up to $250,000. It periodically updates that amount for inflation.
This rule applies to each depositor, so the government won’t protect multiple accounts at the same bank. However it applies to each institution as well. So if you have three accounts with a single bank, you are only protected up to $250,000. However if you have accounts at three separate banks, your money at each institution is protected up to the limit. There are some instances in which you could have multiple accounts protected at one institution, if they are different types of accounts.
This also applies only to depository institutions, places which offer products like checking and savings accounts. It does not apply to investment banks. The government will reimburse you if your checking account is wiped out, but it won’t make you whole for stock market losses.
The Federal Reserve also has shown willingness to expand its footprint of protection. When Silicon Valley Bank collapsed, the government lifted this $250,000 cap. It guaranteed that it would reimburse all of the money that businesses and individuals had on deposit, including about $18 billion in uninsured cash. It did the same with Signature bank, guaranteeing about $1.6 billion in uninsured assets.
The FDIC and the Federal Reserve Backstop Liquidity
Depository insurance is the guarantee of last resort, and the government uses it very rarely. Before reimbursing consumers the FDIC and the Federal Reserve try to prop up a bank’s liquidity and keep it from failing. They do this in two main ways.
Lender of Last Resort
First, the Federal Reserve acts as a lender of last resort when banks need cash. This is the government’s preferred method of protecting deposits at healthy banks.
One of the major ways that a bank can fail is if too many depositors try to take their money out all at once. The bank might not have enough cash on hand to cover all of these demands, which can force it to sell off assets at a loss or even might bankrupt the institution altogether.
To prevent this, the Federal Reserve extends emergency loans to banks in need of cash. Banks can borrow money from the government to cover their immediate needs and make depositors whole. This is useful to solve cash flow crises, when an otherwise stable institution might be forced into insolvency by a short-term demand for money. The bank takes out a loan to meet its short-term demands and repays that loan with the returns on its long-term investments.
To cover particularly large liquidity issues, the Federal Reserve has recently created the Bank Term Funding Program. This was instituted in the wake of the SVB and Signature collapses, and it will act as a lender of last resort for large institutions.
Broker of Last Resort
As noted above, lending to banks can work well for a healthy institution that has cash flow issues. Any bank, no matter how well-managed, is vulnerable to a bank run and emergency loans can cover that short-term crisis.
Loans will not work for banks that are failing though. While the government will, typically, extend loans to try and shore up an immediate crisis (such as it did in the case of SVB and Signature), that is only a stopgap solution when the bank is going out of business. And that happens more often than most consumers realize. Banks may fail because they made bad investments, because they have lost too many customers or because their underlying business model has gone wrong in some way.
In this case, the Federal Reserve and the FDIC act as a broker of last resort to try and sell the bank to another, healthier institution. Their goal is to find a solvent bank that will take over the failing bank’s deposits and assets, effectively folding one institution into another.
When successful, the FDIC doesn’t need to reimburse depositors at all. Often, from the outside, this looks like a simple merger and individual consumers notice no change except for the name on the door. The new institution takes over the deposits and loans of the old one. This is particularly important because large depositors frequently have more than $250,000 on account with their banks. One estimate by the FDIC suggests that about 43% of all bank deposits are uninsured, so mergers are a critical tool for making sure that depositors are protected against bank failures.
Depositors Are Historically Well-Protected
Banking protections are an incredibly complicated issue, and the government has a wide range of regulatory and financial tools that it uses to protect depositors. For example, the Federal Reserve conducts regular oversight of banks to look for bad investments and risky assets that might cause a failure (although, as the case of SVB made clear, this system is far from foolproof).
The takeaway is this, though: As a depositor, your money is about as safe as it can be. Making sure that depositors feel like their money is secure is a huge priority for the government, and several different agencies and entities work to make sure of that. Banks are monitored to try and prevent failures, and the Federal Reserve acts to give them liquidity quickly and at need. When a bank does fail, the government moves quickly to find a buyer for those assets and deposits. And if all that doesn’t work, it simply cuts a check to reimburse depositors for cash that they’ve lost.
It’s not a perfect system, but depositors haven’t lost money to a bank failure in the United States since the 1930s.
The Bottom Line
Your money is as safe as it can be in the bank. Between depositor insurance, emergency loans and bank sales, the government works hard to protect what you have.
Banking Tips
In addition to traditional banks, online banks have become a new issue in finance, with many wondering if they are safe for consumers.
A financial advisor can help you plan to keep your money safe. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Eric Reed
Eric Reed is a freelance journalist who specializes in economics, policy and global issues, with substantial coverage of finance and personal finance. He has contributed to outlets including The Street, CNBC, Glassdoor and Consumer Reports. Eric’s work focuses on the human impact of abstract issues, emphasizing analytical journalism that helps readers more fully understand their world and their money. He has reported from more than a dozen countries, with datelines that include Sao Paolo, Brazil; Phnom Penh, Cambodia; and Athens, Greece. A former attorney, before becoming a journalist Eric worked in securities litigation and white collar criminal defense with a pro bono specialty in human trafficking issues. He graduated from the University of Michigan Law School and can be found any given Saturday in the fall cheering on his Wolverines.
Which Savings Account Will Earn You the Most Money? – SmartAsset
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There are many types of savings accounts. Money market accounts can earn higher interest rates than traditional savings accounts. But CDs can often earn even higher rates. However, there are pros and cons to each type of account that goes beyond interest rates. Here’s what to know before you deposit your money.
If you have questions about how your savings account fits into your overall financial plan, consider working with a financial advisor.
High-Yield Savings Accounts
High-yield savings accounts are similar in many ways to traditional savings accounts and have many of the same advantages, including FDIC insurance on balances up to $250,000.
As their name suggests, high-yield savings accounts pay interest rates higher than traditional savings accounts. Interest rates change frequently, but generally, that equates to 10-20 times higher interest rates.
Other than interest rates, the biggest difference between high-yield savings accounts and traditional savings accounts is the presence of bank branches. Those that offer traditional savings accounts typically have them, while those with high-yield savings accounts don’t.
The latter is generally offered by online-only banks, and their lack of branches allows them to cut costs and offer better rates to their customers. However, the two are otherwise similar in most ways.
High-yield savings accounts, which at time of writing offered annual percentage yields above 4%, usually have a monthly transaction limit (typically six per month), and they often don’t have ATM access or check-writing privileges. Still, customers can access their money whenever they need it by transferring money electronically.
Money Market Accounts
Money market accounts are another type of saving product that offers higher interest rates than checking accounts and traditional savings accounts. The FDIC also insures balances up to $250,000.
In addition, these accounts sometimes have features like mobile check deposits and ATM withdrawals. Like high-yield savings accounts, there may be limits on the number of monthly transactions.
The best money market accounts generally have interest rates 10-20 times higher than traditional savings accounts. While some require a minimum deposit, several allow you to open an account with $0 to start.
However, some money market accounts may charge fees for maintaining a low balance or making too many withdrawals. Check the fine print and make sure you understand the terms before opening an account.
Certificates of Deposit (CDs)
Certificates of deposit (CDs) are another type of savings product that offers higher interest rates than traditional savings accounts. CDs, which are FDIC-insured, lock up your money for a certain period in exchange for a higher interest rate.
You will usually incur penalties if you want to withdraw your money before the end of the CD’s term. This makes CDs better for medium-term savings goals and for money you won’t need in the immediate future.
However, the best CD rates can be higher than rates on money market accounts or high-yield savings accounts, so keeping your money locked up could be worthwhile if you want the best rate. Plus, some CDs have no minimum to get started, so you can deposit as much as you want.
But unlike savings accounts, you often can’t make additional deposits to the account. Thus, they may not be the best choice if you don’t have a lump sum to deposit. Still, the interest rates CDs offer make them a good choice for those with funds to spare.
Comparing and Contrasting Savings Accounts
There are several things to keep in mind when deciding which type of savings account is right for you. Here are something things to keep in mind:
Interest rates: If you want to earn a return on your money, interest rates are the first thing to check. High-yield savings accounts, money market accounts and CDs can all offer high-interest rates today, with CDs having some of the highest rates. However, CDs require you to lock up your money for a certain period.
Fees: Some banks or credit unions might charge you maintenance fees or a fee if your balance falls below a certain level. These fees can eat into your earnings on the account, so it’s important to keep them in mind.
Minimum balance requirements: High-yield savings accounts, money market accounts and CDs can all have a minimum balance requirement to open an account, depending on the bank. Others might require a minimum balance to earn the highest interest rate.
Liquidity: The ease of accessing your money may vary depending on the type of account and the bank. For instance, money market accounts and some high-yield savings accounts may allow you to write checks or withdraw money from an ATM. In contrast, CDs usually require you to leave your money alone until the end of the term.
Each type of savings account has its own set of pros and cons. The best choice will depend on your savings goals.
Bottom Line
High-yield savings accounts, money market accounts and CDs can all have competitive interest rates that allow your money to grow. The best CDs offer some of the highest interest rates, but they require you to keep your money locked away to earn the best rate. Thus, it’s important to consider not only the interest rate but also factors like fees, minimum balance requirements and liquidity before deciding which type of savings account is best for you.
Tips for Opening a Savings Account
A financial advisor can help you work through your banking needs and put together a plan that works for your unique situation. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
The best savings accounts pay some of the highest rates and often do away with costly fees. See SmartAsset’s list of the best savings accounts to find one that’s right for you.
Today we bring back the ever-popular reader case study series with an interesting twist.
First of all, our subject is a new reader, with sizable financial baggage from earlier decades, but plenty of potential for improvement. Equally notable is the fact that I have enlisted some outside help for the research and analysis.
During a recent trip, I ran into another blogger named Jacob Wade who, quite amazingly, actually likes budgets. In fact, he feels so strongly about it that he named his financial blog iheartbudgets.net. We got to talking, and he enthused about how much he likes analyzing and solving detailed financial problems for other people.
“Oh boy, do I have a job for you”, I said. “I get emails from people with detailed financial problems every day, and although I still read every one, it pains me not to have time to respond to many of them.”
Could Jacob’s enthusiasm be used to all of our advantage? I sent him a sample case study to test out his chops. I was pleasantly stunned by the results – he did a great job, and offers advice that even I would consider hard-hitting. Let’s dig into our dear reader’s story, then you’ll see the analysis with some joint recommendations by Jacob and myself.
[contents edited for length]
Dear Mr. Money Mustache,
I’m a recent reader of your blog, courtesy of your interview with Jesse at You Need A Budget, which is the budgeting software I’ve been using. I know that you’re all about retiring early, but I’m wondering what advice you’ve got for someone who wonders if they’re ever going to be able to retire at all! Much of what you recommend we can still put into place, I know, and we are in the process, but I am unsure if our advanced age changes any of those tactics and strategies.
I’m not going to bother to tell you all the mistakes we’ve made in 27+ years of marriage and raising five kids. I’m sure you know the drill, since we lived the basic “American Dream.” We are now 53 years old. My question now is “What’s the best we can do at this point?”
This is where we are:
We have a home with a mortgage/equity loan that’s about $20,000 less than the list value of the house.
Our credit scores are low, partly due to not having any credit cards for the last ten years to show a history, and partly due to having late payments due to temporary unemployment, among other things.
We are the “OMG your hair is on fire” commuters; 45 minute commute for me, 55 for husband, we live in the middle of nowhere, and real estate in our area is not selling.
4 of 5 of our kids are still in college, two live with us and commute, the (recent) graduate lives with us and has an entry-level job since he can’t find work with his degree. Our commuters travel by bus 30 minutes to the WEST of us to go to school, we travel EAST to go to our jobs. Our employed graduate also travels west to his job, in the same town where the other two go to college. This makes moving a little bit more complicated.
Retirement: We both qualify for Social Security; however, I have met only the minimum number of quarters since I took 17 years off to home school our five kids, and my estimated benefit at age 67 is $524 a month. I have now been teaching at a charter school since 2006, and contribute to Massachusetts Teachers’ Retirement. I would need to work and contribute to that fund until the spring of 2026 to be fully vested.
My husband’s estimated Social Security benefit at age 67 is about $2000 a month. He has $20,000 in a 401K with his current employer, and two smaller accounts with former employers, one with a balance of about $4000, and one with roughly $500. I contributed briefly at work to a TIAA-CREF fund, and the balance is about $1000.
I have a newly minted Master’s Degree, which I was required to get in order to keep my teaching license, leaving me with loans of about 22,000.
Commuter son and husband have a Nissan Sentra and a Toyota Yaris, both paid for. I am driving our 2005 Dodge Caravan, which is on its last legs at 180K miles with beaucoup mechanical issues.
We live in Massachusetts, so are among those few who still use oil for heat and hot water; we have electric appliances.
We own term life insurance policies, and have health insurance through my husband’s employer (a health insurance company).
We owe back taxes to the IRS and Mass DOR, and have had our paycheck withholdings changed recently to avoid this in the future.
Not necessarily in the same vein, but relevant – I am a Yankee who would love to penny-pinch, and my husband is a free spender who loves to buy things on sale and as little “rewards” for himself and others, and chafes at the yoke of a budget. He is (grudgingly) on board with me now. We rarely disagree about anything except money. 🙂
I guess that’s a grim enough picture for now; as you can see, our situation is a giant Charlie Foxtrot*. I know you get tons of email; perhaps this one will be just different enough to intrigue you – maybe you can Mr. Money Mustache even the old and desperate!
Thanks, CF in MA
Mr. Money Mustache’s Observations:
This story is a great example of what happens when you live a good, honest life, but just don’t get around to doing the math. Other than the $1200 of oil and gas that goes up in flames each month, the rest of this budget looks fairly moderate for a large household. But there is no way to cheat the numbers. Children cost money to raise, and if you want to raise a large number of them on an average income, something else has to give.
And most people don’t realize that car-commuting (even a 10-minute ride) is spectacularly expensive, so your 45-minute double commute is astonishing. A 2005 vehicle that is “on its last legs?”. I bought my 2005 car four years ago with 57,000 miles and it just cracked 80k this year. It is still brand-new and has many decades of life left! Commuting in a VAN? I use my van when I need to carry home 1200 pounds of steel beams I found on Craigslist for my house rebuilding project – not when I need to transport one lightweight human across a vast distance!
Finally, while supporting adult children and “treating” oneself are nice options to have, from a financial perspective you don’t actually have these options. This is what has caused the long-in-the-making financial emergency. The great news is that you can dig out of this hole much more quickly than you sank in.
So let’s move on to Jacob’s analysis:
Assets:
Home – $235,000 Retirement Fund Savings (401k and MTR) – $45,000 Cars – $7,000
Debts (Balances):
Mortgage – $167,000 at 3.5% HELOC – $25,000 at 4% Student Loans – $22,000 at 6.8% Dell Loan – $2,500 at 16.66% Personal Loan – $650 Staples CC – $500
Goals:
To retire ever Budget:
OLD
NEW
Comments
Total Income
$ 7,200.00
$ 7,200.00
Total Expenses
$ 7,161.00
$ 3,504.00
Projected Ending Balance
$ 39.00
$ 3,696.00
— Much better!
Donations
Other
$ 110.00
$ 110.00
Total Donations
$ 110.00
$ 110.00
Bills
Mortgage
$ 1,330.00
$ 1,000.00
The goal is to be able to actually stop working at some point, so aggressive measures need to be taken. I suggest selling the house and moving MUCH closer to work (within 5 miles of both if possible). If possible, find something for $1,000 a month (about $130,000 15-year loan) or less.
Electric
$ 200.00
$ 100.00
You can lower your electric bill if you implement the changes suggested in this MMM article. You stated that you have started hang drying clothes, now it’s time to move on and get all CFL’s bulbs and watch the A/C.
Oil Heating
$ 700.00
$ 200.00
This bill is KILLING your budget. When you re-locate to a location closer to work, look for a natural gas furnace or another home with low heating costs. Otherwise you will literally waste $86,500 over the next 10 years on this. It’s not worth delaying retirement AN ENTIRE YEAR to pay for this inefficient heating method.
Cell Phone Sprint
$ 320.00
$ –
When moving, you are going to need to drop the cell phone family plan. I didn’t see a line for reimbursement for this, and you cannot afford an extra $275 a month to pay for your family’s cell phone usage. Move everyone to Republic Wireless and only pay for the adult plans.
Cell Phone Republic Wireless
$ 23.00
$ 46.00
Looks like you got started with one line, just double it up here.
Netflix/Hulu/Other
$ 40.00
$ 40.00
MMM: Huh? Netflix is $7.99/month. Between library books, learning new skills, and this, you will have plenty of entertainment.
Car Insurance
$ 155.00
$ 90.00
Shop this around. We pay $78 for liability on our two used cars, there’s no reason you need to pay any more than $90 a month for basic coverage. Since you have a used car, all the extra insurance is not necessary to cover scratches and dings and the like. (MMM Note: mine is $30/month for two cars and two drivers)
Internet
$ 70.00
$ 70.00
Also worth shopping around – in your new area the competition might be better.
Land Line
$ 35.00
$ –
Land line is not needed. (unless there’s a business need for this)
Garbage
$ 20.00
$ 20.00
Medical
$ 182.00
$ 182.00
Student Loan 1
$ 293.00
$ 293.00
We’ll address this debt below.
Student Loan 2
$ 130.00
$ 130.00
We’ll address this debt below.
Life Insurance
$ 91.00
$ 91.00
Personal Loan
$ 90.00
$ 90.00
We’ll address this debt below.
Dell Loan
$ 160.00
$ 160.00
We’ll address this debt below.
IRS and State Taxes
$ 700.00
$ –
You stated in email that this balance is now at $0
Paypal Loan
$ 160.00
$ –
You stated in email that this balance is now at $0
ADT Security
$ 50.00
$ –
Not necessary. Here’s a direct quote from MMM: “These are a silly invention – the Timeshare Condos of the suburbs. Drop it, live free, and save $(50)”
Homeowner’s Insurance
$ 55.00
$ 55.00
Total Bills
$ 4,804.00
$ 2,567.00
Other Expenses
Food
$ 900.00
$ 400.00
Check out MMM’s advice here. You can reduce this bill to $400 a month easily and eat VERY well with a though-out meal plan and some smart shopping.
Gas
$ 575.00
$ 150.00
Since we have cut your commute down to only a few miles, your gas bill should be VERY low ($50 a month or less). I padded it a bit to drive out and visit family.
MMM Note – and remember that “Gas” should never be used as an approximation of the true cost of commuting. You need to triple this number at least, just to account for the direct car costs. Adding in life costs, the bill is much higher again.
Eating Out
$ 15.00
$ –
While you’re in debt, this is a luxury that cannot be afforded. Take care of the DEBT EMERGENCY first, and then add this back in.
Spending Cash
$ 25.00
$ –
Same as eating out.
Personal Items
$ 85.00
$ 85.00
Household Items
$ 62.00
$ 62.00
Clothing
$ 60.00
$ 15.00
You don’t need $60 of new clothing a month. $15 a month should take care of any clothing necessities with thrift shops, consignment stores and garage sales. Also leverage family and friends to organize a clothing swap (read: FREE CLOTHES) if additional garb is required.
Misc
$ 40.00
$ 40.00
Car Maintenance
$ 50.00
$ 50.00
Total Other Expenses
$ 1,812.00
$ 802.00
Savings Buckets
Christmas
$ 25.00
$ 25.00
Emergency Fund
$ 410.00
$ –
This will be addressed below.
Total Savings Buckets
$ 435.00
$ 25.00
Total Expenses
$ 7,161.00
$ 3,504.00
Jacob goes on to write,
Dear CF, Thank you for exposing your budget to all of us financial voyeurs.
There is a LOT going on here, and a lot to address below. The goal here is to make every hour of work from now until retirement count. So let’s get to it:
Housing: I won’t pull any face punches here. You need to move. Your heating bill and commute are absolutely killing your financial situation, and you will NOT retire anytime soon if you stay there. There is $980 potential savings PER MONTH or more in this transition (including commute and utilities), as well as cutting your commute time down to almost nothing, saving time and stress. This move is to help you take a sharp exit off the highway of Never Retiring Wastefulness and allow you to not work until you die.
In emails, you stated the house needs about $8,000 of updates to rent or sell. Since you have about $2,000 of other monthly savings lined up in this budget, you should be able to have this taken care of within four months, and be moved out in six or seven months. Savings on mortgage is at least $330 per month.
You also stated needing a replacement car soon. Please read this MMM post and PAY CASH for your next used-car purchase.
Food: If you are feeding a flock of adult children, they are going to have to chip in. There is no reason you two people can’t eat VERY well on $400 per month, and with proper planning, that could be $300. So many people cannot save enough to retire but are actually just eating their retirement meal by meal. For reference, the extra $500 a month spent on food would cost you over $86,000 over the next 10 years, and cause you to work an additional year for that inefficiency. Nothing tastes THAT good. Savings of at least $500 a month.
Debt: This debt is to be treated as a radioactive plutonium. You must neutralize it ASAP, and this will be your first priority. Here’s how I suggest you tackle it with your extra $3,700 a month.
Dell Loan – $2,500 at 16.66% (gone in month 1) Personal Loan – $650 (gone in month 1) Staples CC – $500 (gone in month 1) Student Loans – $22,000 at 6.8% (gone in month 7)
With all the expenses saved from the above changes, you can kill this debt COMPLETELY in 7 months. The first 3 debts will be gone in the first month! Now you have another $673 a month to invest.
Investments: Once your consumer debt is gone, you will have about $4,400 a month to invest in index funds to get you to retirement. Investing this at 7% for the next 12 years with your starting balance of $45,000 puts you at about $1,100,000 at age 66.
Your annual expenses with the above budget are about $42,000 per year, and using the rule of 4%, this money would provide you with $44,000 annually. You can retire!
This quick plan comes with a major safety margin:
the $2,000 per month of Social Security your husband can begin drawing at age 67
whatever you get from the teacher’s Retirement Fund
the fact that your new mortgage will be paid off in 15 years, dropping the future budget
Conclusion: Yes, this is a lot of change. No, moving won’t be easy, and figuring out the details of your kids housing and all that is going to be a challenge. But the status quo is what got you here, and changing the flow of money is what will get you out.
Comments: What would YOU do in CF’s position? Can she recover and earn a solid retirement in a timely manner?
MMM Note: Thanks again to my new friend Jacob for all of the help on this one, and you may see a few more case studies around here if we’re lucky.
*I think this is a witty polite way of saying “CF”, which of course means “Clusterfuck”. I thought this was a skilled use of swearwords, and it is one of the reasons I decided to take this case study.
A lot of times if you’ve been doing something for a while, you tend to take things for granted.
I got a call from a prospective client, someone I’ve known for several years. They called to ask me a question that I just figured everybody knew.
It was such a basic question when it comes to my profession that, like I said, I just took for granted and thought that everybody knew how to do it. The question was,
“How do I buy stock or how do I invest into stocks?“
I came to the conclusion that if they didn’t know the answer, most likely a significant portion of the readers don’t as well, so I’m going to take a minute and address some of the different ways you can get started buying stocks.
Table of Contents
5 tips to get you started buying stock online
To give you some background on the person that called, they were in a 401K so they were investing for their retirement, but they never actually had gone out to invest into individual stocks.
There was a certain stock that they were hot on and thought that they could make some money on so they wanted to go buy it. I gave her a few different places that she could go to do her own research and buy the stock.
If you are itching to invest your money, make sure to check out our great reviews on different ways to invest such as our Motif Investing Review.
Pour Your Foundation
First, if you’re looking to buy stocks, make sure that you’ve got a foundation set. I always hate it when people call me and they want to start investing in individual stocks and yet they don’t have anything saved in retirement.
They don’t have a 401K.
They don’t have an IRA.
They don’t have anything.
They don’t have an emergency fund, yet they want to start investing and playing in the stock market.
That’s one of my biggest pet peeves. It’s like a house, right? With a house, you have to build a foundation first. You don’t start putting on the roof or start doing the inner accessories like the big screen TV and the couches before you have the framework or foundation down.
Make sure you have those in place first before you go out and start buying stocks. That’s my entry disclaimer, but I just wanted to get that out there first.
Buying Stocks Online
Now if you’re ready to start buying stocks and you feel comfortable doing this, you have a couple of different areas online you can go to. The first place you can go is any discount broker. Think Ally, and I’m sure there are countless others, but these places are good. For starters, they’re very, very inexpensive.
Sometimes you can open accounts and trade for free. Others, to execute the trade to actually buy the stock, you may pay as little as $4.95 on up to 15 bucks per trade. That’s pretty reasonable, especially if you’re only going to be doing a few trades here and there. Some of them, and I’m not familiar with all the rules, but they may charge you an annual fee if you don’t do a lot of trading.
Definitely read all the fine print and rules before you engage in buying stock from an online discount broker. If it’s something where you’re going to buy a few stocks here or there, that could be a viable option.
Buying Individual Stocks Through Computershare.com
Another option if you’re comfortable making the purchases online is to actually buy it through the company itself. One website that has a lot of arrangements with a lot of different companies is Computershare.
When I have clients that have a share of stock that they either inherited or it was given to them, quite often computershare.com is the custodian. They will have to call them to liquidate it or to find out how many shares they own. Computershare just seems to be a common hub for a lot of these different companies.
How I’ve recently had some more relationship with Computershare was I wanted to buy stock for my kids, not so much as an investment, but more of a keepsake. I wanted to buy a share, put my son’s name on it as in the form of a custodial account. They had the actual certificate, something we could frame and put it on the wall and have a keepsake. I was having difficulty trying to find a certain stock that I wanted to buy. Sure enough I went through Computershare and they had an arrangement with that company so I’ll be doing that soon.
Computershare has a relationship with a lot of those companies. You can go to computershare.com and follow their links. I think you go to investor’s center and from there you can see some of the companies that they have an arrangement for. I think it’s over 500 companies. I’d have to check the website just to double check, but that’s another venue that you can go. I think it’s maybe a $15 transaction charge, so once again very minimal cost to do it. It’s another good, do-it-yourself, online arena where you can go to buy individual stocks.
Buying Stocks Direct From the Issuing Company
You can sometimes buy stock directly from the issuing company, without using a service like Computershare. This is mainly available with large, well-established companies. You can find out if the company offers the service by contacting their investor services department, which you can usually find on the company website.
One of big advantages to this is that the companies typically don’t charge any transaction fees, so you can buy the stocks at cost. And some companies will even allow you to sell your shares back to the company.
DRIPs. Some companies even offer programs known as Dividend ReInvestment Plans, commonly known as DRIPs. When you participate in this plan, your dividends are automatically reinvested in buying additional shares of the company stock. This is a way to build a long term position in a company that you are committed to holding an investment position in for a very long time.
Mutual Funds and Exchange Traded Funds (ETFs)
If you want to invest in the stock market, but you aren’t comfortable doing it with individual stocks, you can invest in a large number of stocks with a single investment in a mutual fund or an ETF.
There are several advantages to investing in funds:
You don’t have to select individual stocks, the fund manager takes care of that for you
Each fund represents a diversified portfolio of stocks; this is important because holding a larger number of stocks is less risky than owning just one or two
Transaction costs are much lower when you buy through a fund than if you try to assemble a custom-made stock portfolio
Your only decision with funds is deciding when to buy, and when to sell; since you can trade funds easily, you can move in and out of your positions quickly
Funds come in a variety of types, in which you can invest either in the general market, or in various sectors, such as energy and healthcare
Yet another advantage to investing in funds is that you can buy and sell them just as easily as you can trade individual stocks. You can buy them through a discount brokerage firm, as listed above. But you can also buy them through mutual fund families, such as Vanguard and Fidelity. Those are two of the largest mutual fund companies, but there are dozens of others to choose from.
Fund Families. Buying direct through a fund company – sometimes referred to as a “fund family” – is often less expensive than buying through a discount brokerage firm. That’s because within the fund family there are typically no transaction costs.
Index Funds vs. Actively Managed Funds. There are two general types of funds to be aware of, index funds and actively managed funds. Index funds invest in established investment indexes, such as the S&P 500. Index funds are more typical for ETFs. Since they invest in an index, the individual securities within the portfolio are traded only when the composition of the index changes. Since that is a relatively rare event, index funds have very little stock turnover, which means that their investment expenses within the fund are very low.
Actively managed funds are typically mutual funds. They tend trade a lot more than index funds, and have higher investment expenses. For this reason, index funds often outperform actively managed funds, and are probably the better choice for most investors.
Load Fees. You should also be aware that funds sometimes charge what are known as “load fees”. These are one time fees that are built into the fund, and they generally range between 1% and 3% of the value of the fund you’re purchasing. They can be charged upfront (known as front end loads) or upon sale (backend loads), and sometimes both on some funds.
Loads are high, which is why you should favor no-load funds. Not only are they less expensive to buy, but you’ll feel more freedom to close out your position whenever you choose, if you are not concerned by how much money you paid upfront in order to buy the fund in the first place.
Robo Advisors
If you want to invest in the stock market, but you aren’t comfortable doing it with individual stocks, or if you are unsure as to which mutual funds or ETFs to buy, you have one more option. A group of online, automated investment platforms have developed in recent years, commonly known as robo advisors.
These are investment platforms that will manage your investment portfolio for you, and do so for a lot less than the 1% to 2% annual fees that human investment advisors charge. You set your allocation with the robo advisor – which they take care of for you – then your money is automatically managed and invested by the platform. You’re only responsibility is to fund your account.
There are now dozens of robo advisors available, but one of the most popular – and well-regarded – is full review of Betterment for more details.
The Mechanics of Buying Stocks With a Broker
Okay, if you still want to buy stocks and you’re not completely comfortable going online to do it, I don’t blame you. That can be intimidating for a lot of people. You have to open up an account online and send some money to some faceless operation.
The other option you have is you could go to a local investment house, local stockbroker and buy stock through them. Just so you know, by going that direction you’re probably going to pay more, considerably more, but at least you have a face of someone you can talk to. They can share their expertise of what you think is going to make you a lot of money, if it really is. Also, you have somebody that hopefully is going to educate you in having that foundation set.
All these different brokerage firms differ on their prices, but I have to think at minimum you’re going to be spending about $40 per transaction. So if you buy a certain number of shares it’s 40 bucks. If you sell again it’s another $40. That’s for a smaller amount transaction. The higher transaction you go, the more shares you buy, or the higher the share price is will then determine how much the commission is going to be.
Some of these firms as well, if you don’t trade frequently, are going to hit you with either a small account fee or an inactivity fee. Be conscious of that. It’s definitely not the cheapest direction to go. Typically, when I’m working with clients and if they want to do some stock trades or they have a younger relative or their kid that wants to buy shares of stock and that’s all they want to do, I usually will guide them to one of these online platforms if they are comfortable just to help save them a few bucks.
Those are some of the different options you have. If you want to buy stock, you can go online to one of the online discount brokers or go to computershare.com. If you’re not comfortable head to your local brokerage. Then, when you shop around I would maybe interview one or two different brokers just to see what would be the potential cost to do so. I would just say,
“Hey, how much would it cost to buy 100 shares of…..”
and just give them some stock, maybe the stock you’re interested in, just to see what it is and how much the fee is going to be. You want to make sure you know what you’re getting yourself into. Make sure you read the fine print before you proceed and make that initial investment.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, consult your financial advisor prior to investing.
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A foundational religious parable tells of two servants who invested their money in the marketplace and one who buried it in the ground. This story gives Christians lessons about serving God with their money and abilities. More broadly, faith-based investing means applying religious principles to investing. This approach makes it possible to accomplish good in the world and receive excellent investment returns. Here are the details.
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What Is Faith-Based Investing?
Faith-based investing means investing according to the moral, ethical and social sensibilities that arise from your religious beliefs. As a result, faith-based investors – whether Christian, Muslim, Jewish, Hindu or any other faith – will steer clear of specific investments, even if they are lucrative. And they search for returns with companies aligning with their values.
For example, Catholic investors won’t put money into companies that produce nuclear weapons, firearms or landmines or that profit off embryonic stem cell research or abortifacients. Instead, they invest in companies that practice social responsibility and provide excellent conditions for workers.
How Faith-Based Investing Works?
Faith-based investing seeks high returns, just like other investment approaches. However, it balances this priority with following religious convictions. For instance, companies promoting fair, accessible housing and environmental health will attract faith-based investors. On the other hand, their dollars won’t go towards companies profiting from tobacco or gambling.
Generally, faith-based investing values caring for people and the planet. As a result, religious investors often prefer companies demonstrating concern about economic justice, corporate responsibility and environmental protection. That said, many religious sects have specific way of investing, examples of which are outlined below.
Type of Faith-Based Investing
Catholicism
The Roman Catholic church has a robust history of faith-based investing, starting with social and financial activism against South African apartheid in the 1960s. In addition, leadership developed the Catholic Framework for Economic Life, which consists of ten faith-based principles. For example, the framework promotes all people’s right to life essentials, such as food and shelter, and prioritizes the welfare of vulnerable populations.
In addition, Catholic investors won’t put money into companies that practice discrimination or stem-cell research. Furthermore, they avoid companies that profit from abortion, contraception, weapons sales or adult entertainment. To that end, Catholic Investment Services manages over $1 billion on behalf of the church.
Protestantism
Benjamin Franklin once said, “Remember that time is money.” Protestants have the reputation, at least historically, of taking this message to heart by working hard and living frugally. They see their accumulated wealth as a way to create good in the world. Like Catholics, Protestant investors generally value the environment, justice and human well-being.
For example, GuideStone Funds bases its values on the Bible and manages over $15 billion in assets. The company supports “the sanctity of life, family, stewardship and health and safety.”
Judaism
Jewish values vary widely, from the ultra-Orthodox to the Reform and Reconstructionist. However, there are a number of common elements to Jewish investing. For example, the Talmud emphasizes giving and diversifying assets. These practices are foundational in the Jewish way of life, including investing.
Although there is no formal guidance for socially responsible investing in Judaism, the faith encourages caring for the poor and being wise with money. As a result, Jewish investors usually put money into environmental health, social justice and the country of Israel. There are also mutual funds that follow Jewish investment strategies, such as theiShares MSCI Israel ETF, which invests in Israeli equities.
Islam
Specific rules in Sharia law, also known as halal, govern the Islamic way of life and investing practices. Sharia law prohibits participation in specific industries, including alcohol, gambling, tobacco, pork products and pornography.
In addition, the religion doesn’t allow speculation, interest and debt. Muslim investors who want to invest according to their faith avoid companies that don’t adhere to these principles, as well as those with high levels of debt.
Sukuk bonds, which represent ownership in future or current assets but do not pay interest, are a popular investment option for Muslim investors. Amana mutual funds, offered by Saturna Capital, avoid interest-bearing securities and prioritize long-term equity investments to safeguard against inflation. The Iman Fund, established by Allied Asset Advisors in 2000, is another mutual fund that follows Sharia principles and invests only in halal investments.
How to Build a Successful Investment Strategy That Aligns with Your Faith
As the examples above demonstrate, it’s possible to follow your religious convictions and invest profitably. Here are the strategies to build a successful investment strategy with your faith as the foundation:
Identify Your Priorities
First, ask yourself what about your faith drives your investment approach. For example, you might be passionate about gun violence, gender equality or affordable housing. Once you know your values, you can tell what kind of assets are appealing.
Determine Your Investment Style
Next, your investment style is crucial to understand. Specifically, you might have a low-risk tolerance. In this case, it’s best to seek safe investments that fit your approach. In addition, you might prefer to manage your investments yourself or hire a trusted professional.
Consider Your Goals
Your investment goals will also shape your approach. For instance, starting a faith-based retirement portfolio at 25 means you’ll be investing for decades. On the other hand, starting a college fund for your 10-year-old means you’ll need to cash out in less than a decade. Therefore, your objectives are critical to remember as you choose investments.
Find a Fund That Fits
As mentioned above, numerous faith-based funds are available for religious investors. From Saturna Capital for Muslims to the Global S&P 500 Catholic Values ETF, a range of investment products can fit your faith preferences. A fund specific to your denomination is an excellent place to start.
Consult With a Financial Advisor
If you’re unsure how to start, a financial advisor can help you clarify your priorities and choose funds that fit your beliefs. For example, their knowledge of the stock market can lead you to a company with environmentally friendly practices or a faith-based stock portfolio.
Bottom Line
Faith-based investing is similar to conventional investing in that it seeks low costs and high yields. However, it also filters out specific investments that violate religious values. Your religious beliefs will drive your individual style of faith-based investing, so understanding your values is key to investing in a way that gives you peace and improves the world.
Tips for Faith-Based Investing
Faith-based investors face the same challenges as conventional investors: diversification, tax implications, management costs, etc. Fortunately, a financial advisor can offer valuable insight and guidance. Finding one doesn’t have to be hard. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now
If you’re a Christian who wants to apply your faith to finances, you can learn about biblically responsible investing.
Ashley Kilroy
Ashley Chorpenning is an experienced financial writer currently serving as an investment and insurance expert at SmartAsset. In addition to being a contributing writer at SmartAsset, she writes for solo entrepreneurs as well as for Fortune 500 companies. Ashley is a finance graduate of the University of Cincinnati. When she isn’t helping people understand their finances, you may find Ashley cage diving with great whites or on safari in South Africa.