STRASBURG — When showing a house to clients, Realtor Amy Jett makes sure they see a home.
Whether it’s by helping buyers visualize where they’ll place the family Christmas tree or figure out what color to paint their front door, knowing today’s popular home trends allows Jett to help her buyers make the most informed decisions when buying their dream home.
“For me, it’s about a house that could become your home in a neighborhood that you love,” Jett said. “But maybe it has a really great basement, but it might feel a little too dark. Knowing how to transform a space from dark to light with something as simple as paint, it’s all of a sudden a great party space. You could put in a bar and suddenly everyone’s watching football at your house.”
Helping a client find a home is much more than signing on the dotted line and passing off the keys, Jett said. It’s about how her clients can use the space — whether it’s a young couple wanting to grow their family or for the crafter seeking a corner to create in.
“Clients will come to you and they will tell you the basics of what they need,” Jett said. “You want to have enough knowledge about what’s trending and popular so you can look for that perfect property that when they walk in they can call it home.”
Jett said trends come and go. Similar to seeing a fashionable haircut on one person and then on a hundred, house trends ebb and flow.
“Buying a home is the biggest investment you’re going to ever make,” she said. “You’re spending more money on that than most anything else that you’re ever going to spend money on so you want to make it perfect, or pretty close to it.”
To be able to do that, Jett said today’s buyers are looking for move-in-ready homes, which also happens to one of the biggest trends of the year. Gone are the days of purchasing homes that need massive renovations. Rather, buyers are seeking homes that need minimal changes, such as a fresh coat of paint on an accent wall or new knobs on bathroom cabinets.
Colors
As for what colors are attracting buyers right now, Jett said shades of blue are popular for inside and outside the home.
“Continental blue is becoming popular for outdoor use,” Jett said. “It’s a beautiful deep blue with a gray undertone. You can add a pop of burgundy as an accent with a bright white trim.”
Shades of blue are becoming a staple in kitchens. Jett followed the trend by updating her kitchen cabinets.
“There are different ways to make a room feel based on something as simple as what colors and where you place them. It doesn’t have to be white or gray walls. It can be an accent color — paint is inexpensive and something easy to change over time.”
Another popular exterior color palette Jett is seeing this year are muted grays, with dark wood or accent colors. It’s not quite black, she said, but almost so. Again, with a pop of white.
Dark exterior homes such as gray with black trim and a stone accent or a dark brown door, are starting to make a comeback throughout the Valley.
Cozy spaces
Inside the home, Jett said buyers are seeking rooms that feel cozy, like a reading nook in a corner of a room that can be used dual-purposely, such as an office, guest room or playroom.
“People are now starting to come out of working from home, back into working on site. Not everyone needs a dedicated office anymore.”
Wallpaper
Also in the interior, Jett said she’s noticed while showing homes to buyers, that heavier curtains are returning as well as the use of wallpaper.
“It’s so easy to use now because it’s all peel and stick,” she said. “You don’t have to use all that glue because it goes on and off easily.”
Jett, who loves a bold wallpaper statement, said she enjoys sharing her ideas with buyers who may see a blank wall, where she may see an accent wall with endless possibilities.
“When you walk into a home, it’s a blank slate,” she said. “By imagining the possibilities, such as a bright, bold, dark wallpaper with flowers, I’m helping them imagine what they could do to create their ideal space.”
Homeowners making minimal changes are updating their kitchen and bathrooms with color-appropriate appliances, fixtures, flooring and countertops as well as fresh coats of paint on cabinets.
“For several years everything was gray,” Jett said. “It’s starting to brighten up with pops of color. Lighter flooring and countertops, but having darker appliances.”
Outdoor features
Other exterior trends Jett is seeing are outdoor living spaces, impeccable views and water features.
“Gurgling water while they’re reading their book and enjoying the birds singing,” she said.
Welcoming a new addition to the family is an exciting and joyous occasion, and preparing a nursery is often one of the most anticipated tasks for expectant parents. The nursery is not just a room; it’s a sanctuary where your little one will spend countless hours sleeping, playing, and growing during their formative years. Curating the perfect nursery involves thoughtful consideration of both functionality and aesthetics. Check out these nursery decor ideas from experts to see curated recommendations.
Nursery decor: Tips and tricks to test out
“A nursery should spark calm,” Taylor Clarke, mom and founder of Amborella Organics seed-bearing lollipops. “We do this with earth-toned colors, living plants, and objects like a star-shaped plush that remind us how magical this time of life is.” As we dive into other expert opinions on curating the perfect nursery, Clarke reminds us to not forget the magic of this stage of life.
Establish your vision
Before diving into decorating, take some time to envision the atmosphere you want to create. Consider themes, color schemes, and overall ambiance. When it comes to a theme or color palette, Bowy Lou recommends choosing something that resonates with you. “Whether it’s a nature-inspired theme, a classic color scheme, or a whimsical motif, this will guide your choices in furniture, decorations, and textiles,” the Bowy Lou team recommends. “Additionally, if you’re looking to save money, you might be able to keep an eye out on online reselling platforms such as Facebook Marketplace or thrift shops to begin gathering or collecting items that meet your aesthetic.”
Choose a calming color palette and utilize natural materials
Selecting the right color palette sets the tone for the entire room. “Opt for soft, neutral hues like pastel blues, greens, creams, light grays, or gentle yellows to create a calming atmosphere conducive to relaxation, sleep, and independent play,” Karri Bowen-Poole, founder and CEO of Smart Playrooms and Project Playroom recommends.
Ashley Morrisey with Western Sky Photography recommends considering your preferences when selecting a color palette. “You may have heard there are colors that make a room bright or enhance specific feelings, so it would make sense to choose those that add to the calm, soothing environment you want,” Morrisey begins, “but, it’s equally as true that choosing colors you love will help make the room a space you’ll enjoy spending lots of time in with your baby, and let’s be honest, you’ve got a lot of future diaper changes, feedings, play times, and bedtimes in this room.”
Embrace nature-inspired elements as well, to bring an element of texture to the room. “Incorporating furniture and decor made from natural materials like wood and cotton will evoke a sense of warmth and comfort while also minimizing exposure to harsh chemicals,” Bowen-Poole suggests. Consider adding potted plants or a small indoor garden to purify the air and further create a calming, nature-inspired environment.
Frankie Wallace, owner of LoveFrankieArt.com, echoes the importance of a balance between colors and natural elements. “Opt for soft, neutral colors such as taupe or soft grey, and choose patterns that are subtle and gentle, like small polka dots, stripes, or delicate floral prints. These create a serene atmosphere without overwhelming your baby’s delicate senses, and are also calming for parents too,” Wallace notes. “Nature-inspired accents like potted plants, botanical prints, or nature-themed wall decals are also great to incorporate. Nature has a calming effect and can help create a peaceful atmosphere in the nursery.”
Invest in quality furniture
Key furniture pieces like a crib, changing table, and storage units are essential for a functional nursery. “Incorporating vintage or heirloom pieces such as a solid wood dresser passed down from a relative, or one with a marble top discovered at an antique shop will have lasting design power over many store-bought dressers,” Darcy Oliver, founder of Darcy Oliver Design recommends. “The dresser can also act as a changing station for your baby, so be mindful of a size that could accommodate a changing pad.”
Convertible furniture, such as cribs that transform into toddler beds, offers long-term value and versatility. “Searching for the perfect crib may seem like a daunting task, but I recommend buying this item new or fairly new for safety reasons,” Oliver recommends.
Prioritize safety
Safety should be a top priority when designing a nursery. Ensure that furniture meets safety standards, anchor heavy items to the wall to prevent tipping, and eliminate any potential hazards such as loose cords or small objects that could pose a choking risk.
A comfortable crib mattress and soft, breathable bedding are essential for promoting safe and restful sleep. Choose bedding made from organic materials and avoid heavy blankets or pillows, as they can increase the risk of Sudden Infant Death Syndrome (SIDS).
Add personal touches
Infuse the nursery with personal touches that reflect your style and values, like name-centric decor. Name decor is also an easy way to make the room feel personalized. “Monogramming the space above your baby’s bed is a popular design concept. The monogram makes their room even more personalized and their own,” Sara from Lizz and Roo notes. “Similar to a monogram, framing their name above their bed is a great personalization to have for them to make their room their own.”
“I remember when my son was about to be born – all of a sudden I wanted to clean and organize my house and create the perfect nursery. I posted this random information on Facebook, and immediately a consensus was formed: I was “nesting,” Crystal Waddell, president of Collage and Wood shares.
“Over the years, as my company has grown, we serve mothers all over the world who want to personalize the walls for their new baby. And when I say I get it, you now know, I totally get it. Think custom lettering, themed wooden cutouts, or your baby’s name in a giant script font, these items create that perfect personalized space for your baby and help you meet your nesting needs.”
Consider sensory stimulation
Stimulate your baby’s senses with visually engaging elements like mobiles, wall decals, and textured rugs. Soft lighting, such as dimmable lamps or string lights, creates a cozy atmosphere conducive to relaxation.
Leave room to grow
Remember that your baby will grow quickly, and their needs will evolve over time. “If the nursery will eventually morph into your child’s room, having the flexibility to change the room into the next stage is key,” Sandra Gordon, owner of Baby Products Mom, notes. “That next stage could be in a year or so when your baby-turned-toddler-turned-preschooler starts to have an opinion. Ideally, for a convertible nursery, you should be able to lift anything babyish, such as artwork, out of the room. In other words, keep babyish items off permanent surfaces, such as pink or blue walls or carpets. But if the room will be a dedicated nursery for years to come (for your next babies), go ahead and baby-ify all you want.”
Fariha Nasir, with Pennies for a Fortune, echoes the sentiment of keeping the future in mind. “Focus on sourcing high-quality pieces that will grow with the child. Same with seating – furniture that’s marketed as nursery furniture like rockers and gliders isn’t always great quality. Getting a stylish yet comfortable armchair with a separate ottoman will provide the same comfort and functionality,” Nasir shares. “That nursing chair can later be part of a reading corner for the room in the future.”
Incorporate functionality into your nursery decor
Babies come with a lot of stuff, from diapers and clothes to toys and books. Maximize storage space with bins, baskets, shelves, and closets to keep essentials organized and easily accessible. “In small spaces, floor space is a precious commodity so get things off the floor wherever you can,” Lisa Janvrin, with Janvrin and Co, suggests. “This means installing storage and lighting on the walls. There are tons of options for floating bookshelves, side tables, and plug-in wall sconces that are adorable and functional.”
In terms of nap and nighttime routines, nightlights or dimmers can also help create a soothing atmosphere when darkness is important, Kristeen Waddell notes. “Lack of lighting is everything. Invest in blackout curtains to regulate light and promote better sleep, especially during daytime naps. However, you will want a nice overhead light for play, too,” Waddell shares.
Choose soft flooring options
Opt for soft flooring materials like carpet or area rugs to provide a comfortable and safe surface for your baby to crawl and play. “A soft rug is a must-have for tummy time and a cozy place for baby to explore the world,” Caitlin De Lay notes. “Functional pieces will grow with your child and create a calming space to bring the baby home; plus, they can all double as design accents.” Choose rugs with low pile or natural fibers that are easy to clean and hypoallergenic to minimize the risk of allergies.
Design a nursing nook
“There needs to be comfortable seating for nursing a baby, with a footstool,” Medina King, creative director of MK Kids Interiors says. “This could be in the form of a stylish rocker or a comfortable armchair with a pouffe. Parents will spend a lot of time nursing and comforting babies in the early days of their lives, so it’s important to design it around the needs and comfort of the family and parents taking care of the baby.”
Lucy Bowman, with LucyJoHome.com, agrees, noting the importance of paying the nursery proper attention. “Nurseries are a place of rest and sweet memories and deserve attention,” Bowman shares. “The perfect nursery will have a comfortable and beautiful chair for parent and child to bond.”
Don’t be afraid to get creative with nursery decor ideas
Photographer, Kristal Bean, recommends adding an accent wall for a creative touch. “You’re not limited to just a different color for an accent wall — there are endless gorgeous wallpaper and large wall decal options, too,” Bean shares. “This is a simple way to customize the nursery, and you can probably get it done over a weekend. If you’ve already fallen in love with the wall color in your baby’s room, but you’re dying to add a little something extra to the space, wallpaper on the ceiling is an unforgettable touch.”
Savanna Nave, owner of SavannaBrooke.com, reminds to not forget flair and interest. “Add interest and character by either using wallpaper, a wall treatment (board & batten), patterned curtains, or a statement rug. All of these areas are a great way to incorporate color and a fun pattern,” Nave suggests. “When adding flair, stick to your style while also making the room baby-friendly and functional. If your style is boho, incorporate some of those features into the room.”
Consider soundproofing as part of your nursery decor
Minimize disruptions and create a peaceful environment for both you and your baby by soundproofing the nursery. Install heavy curtains or sound-absorbing panels to dampen outside noise, and consider using a white noise machine to mask any sudden sounds that could disturb your baby’s sleep.
Crafting a sanctuary for you and your little one
“As the parent, you will be spending a lot of time in that room with your baby”, Nina Spears, co-founder and editor-in-chief of baby chick, explains. “In the nursery, there needs to be a designated space for the baby to sleep, to feed, and to be changed. But, make a space in the room where you can rest with the baby and enjoy, too. This room should be a space that you love, it brings you joy and makes you feel calm. Your baby won’t care what it looks like, so make it functional and comfortable for you too.”
Curating and creating the perfect nursery is a labor of love that involves careful planning, creativity, and attention to detail. By following these guidelines and infusing your unique style and personality into the design, you can create a serene sanctuary where your little one can thrive and flourish. After all, there’s nothing more rewarding than seeing your baby surrounded by a space that is as beautiful and nurturing as they are.
Pennymac Financial Services earned a profit of $39.3 million in the first quarter of 2024, the California-based multichannel lender and servicer announced Wednesday.
The company’s pretax gain in the first quarter was $43.9 million. That was less than the $38.1 million figure it posted during the same period last year but a significant improvement from the pretax loss of $54.2 million it incurred in fourth-quarter 2023.
“PennyMac Financial reported strong operating earnings in the first quarter, with an annualized operating return on equity of 15 percent in what is expected to be the one of the smallest quarterly origination markets of this cycle,” chairman and CEO David Spector said in a news release. “Strong volume increases in our consumer and broker direct channels drove continued profitability in our production segment.”
The company’s loan production pretax income was $35.9 million during the first quarter, down from $39.4 million in Q4 2023 but up from a pretax loss of $19.6 million in Q1 2023. Production revenue totaled $184.7 million, up 5% from the prior quarter and up 52% year over year.
Pennymac reported that the quarterly increase in production revenue was primarily tied to higher net gains on loans held for sale at fair value due to higher volumes in its direct-to-consumer channel. Meanwhile, the revenue growth compared to Q1 2023 was largely due to higher overall origination volumes and margins.
The total value of its loan acquisitions and originations dropped to $21.7 billion in unpaid principal balance (UPB), down 19% on a quarterly basis and 5% below year-ago levels.
During an earnings call on Wednesday, chief financial officer Daniel Perotti said that “Pennymac maintained its dominant position in correspondent lending in the first quarter” as it acquired $18 billion in volume. That was down from $24 billion in the prior quarter and was “driven by our focus on profitability over volatility,” he said.
In the wholesale channel, Perotti noted that locked loans were up 20% and funded loans were “essentially unchanged” from the prior quarter. But broker-channel margins grew from 79 basis points to 103 basis points during that period.
“The number of brokers approved to do business with us at quarter end was over 4,000 — up 36% from the same time last year,” Perotti said. “And we expect this number to continue growing as top brokers increasingly look for a strong second option.”
Pennymac’s servicing portfolio continues to grow. Its owned mortgage servicing rights (MSR) portfolio had a UPB of $386.6 billion on March 31, up 3% from the end of Q4 2023 and up 18% from the end of Q1 2023.
In response to an analyst’s question during the earnings call, Spector said he expects the company’s servicing channel to lead to more refinance opportunities when mortgage rates eventually decline.
“We have built a really great model in terms of growing the servicing portfolio as a byproduct of our organic growth strategy,” Spector said. “And as we continue to lead in the correspondent space and continue to grow our presence in the broker-direct space, I expect that our servicing will continue to grow at probably even a little faster clip. … I don’t see a melting ice cube scenario anytime in the future.”
Last year, Pennymac earned net income of $144.7 million, a decline of nearly 70% from the $475.5 million profit it posted in 2022. And in fourth-quarter 2023 alone, the company lost $36.8 million.
Its net revenues shrank from $2 billion in 2022 to $1.4 billion in 2023. Its overall profit was largely due to the strong performance of its servicing portfolio.
Legal troubles with Black Knight contributed to the loss in Q4 2023. Late in the year, an arbitrator awarded Black Knight $155.2 million in damages tied to a breach of contract claim in a four-year dispute involving the companies. Black Knight accused Pennymac of copying its mortgage servicing platform.
At the close of the market on Wednesday, Pennymac’s stock price was $92.07, up 4.86% since the start of the year.
“We decided going forward that we’re going to focus 100% on retail,” she said. “We look for like-minded companies that have the same culture, because culture and leadership are key. And I think you have to start building scale in this business.”
Scale is an important tool for maintaining investment in people and technology, Schmidt said, and the additional companies that Guild has brought aboard recently reflect its goals for culture and leadership and may have had issues of scale that were solved by joining Guild, she said.
When asked about the particulars of culture and how Guild aims to define that trait, Schmidt said that three values lead the charge: listening, collaboration and learning.
“For us, [potential acquisitions] have to be able to have a good understanding of their people and listen to what they have to say,” she said. “Everybody has a voice. Those are the kinds of leadership qualities that create that culture. Sometimes it’s not easy to identify that. We have to spend a lot of time doing a lot of discovery to identify that.”
When asked about recent acquisitions like Academy Mortgage and Cherry Creek Mortgage, Schmidt said that Guild had identified the kinds of values they want in their organization as well as the geographic advantage that would come from bringing them into the fold. There were also product advantages.
“Those two are more West Coast companies even though they had a national footprint, and so we’ve known them for years,” she said. “We had a good sense of their culture in advance. They both have great cultures and we were competing for the same people, so we knew the fit would be really good. So now, for all the western states, we pretty much have the market share that we wanted to get to.”
The Cherry Creek acquisition allowed Guild to expand and build out its reverse mortgage capabilities since the company served as a leading lender in the space for quite a while. With Academy, the homebuilder business was most attractive to Guild, Schmidt said.
Schmidt also talked about the need to invest in the company’s technology platform to better enable its people. Recruitment efforts are also following the company’s broad retail-focused strategy, and Schmidt asserted that any retail loan originator will want to “talk to Guild” if they want to advance in the retail origination space.
Schmidt also alluded to further development of its technology by leveraging artificial intelligence, and she shared that the company hired a specialist in its technology division to help grow the company’s efforts.
But to avoid moving too quickly and potentially running afoul of a developing and controversial technology, she said the company’s approach is to “start small and be careful.”
Mortgage rates kept climbing on the back of a string of market-moving news. Notably, Federal Reserve Chair Jerome Powell said last week at the Washington Forum that there will be no rate cuts anytime soon because of the strength of the U.S. economy.
As a result, HousingWire’s Mortgage Rates Center showed the average 30-year fixed rate for conventional loans at 7.48% on Tuesday, up from 7.26% one week earlier. At the same time one year ago, the 30-year fixed rate averaged 6.54%. Meanwhile, the 15-year fixed rate averaged 6.72% on Tuesday, up from 6.66% one week earlier.
“I always believe that with higher rates, inventory should grow more; last week was the first week where I hit my target weekly inventory growth model that I set out for myself last year if rates got above 7.25%,” HousingWire lead analyst Logan Mohtashami said. “Last year, it never happened once, even with rates heading toward 8%, but this year, we have more sellers than last year. If rates go higher, it will impact sales, but I am hoping it doesn’t prevent more sellers coming into the marketplace”
Even after several weeks of mortgage rate increases, the housing market remains strong. For instance, the demand for new homes grew at an annualized sales rate of 8.8% from February to March. As of April 19, there were 543,000 single-family homes on the market, up 3% from the week prior and 31% above year-ago levels. There are 130,000 more homes on the market now compared to last year at this time.
“The available inventory of unsold homes on the market is building quickly due to the most recent mortgage rate jumps,” Mike Simonsen, founder and president of Altos Research, wrote on Monday.
One of the positive pieces of news about mortgage rates is that the spread between mortgage rates and the 10-year Treasury yield is narrowing, Mohtashami noted on Saturday.
The Personal Consumption Expenditures Price Index (PCE) for March will be released on Friday, providing valuable insights into the Fed’s next steps regarding benchmark interest rates.
Industry veteran Rick Roque has resigned from his position as corporate vice president at retail mortgage lender CrossCountry Mortgage (CCM) to join multichannel player Sierra Pacific Mortgage as executive vice president of retail.
The transition was announced on Monday afternoon during a session at The Gathering, HousingWire’s real estate and mortgage conference held in Scottsdale, Arizona.
Roque, who co-founded M&A and retail mortgage banking firm Menlo Co. in 2009, joined CCM in December 2022 as corporate vice president of production strategy and strategic partnerships. He was tasked with adding “value to the consumer in the homeownership experience“ while increasing sales volumes and revenues, he said.
“CCM has created a top-performing sales culture that’s the envy of every mortgage company in the country. My interest is to be able to adopt that top-performing sales culture and to bring that over to Sierra Pacific,“ Roque said in an interview with HousingWire.
A spokesperson for CCM said the company had no comments.
Ohio-based CCM, which acquired Amcap Home Loans earlier this year, claims it originated $31.6 billion in loans in 2023.
Sierra Pacific, headquartered in California and led by Jim Coffrini, delivered a production volume of $2.5 billion last year, according to Inside Mortgage Finance (IMF) estimates. Its owned servicing portfolio stood at $15 billion at the end of 2023, per IMF.
Regarding its channels, Sierra Pacific has loans coming through its branches and its broker network, Roque said, but he will primarily focus on retail operations.
“Sierra believes the future of mortgage includes both wholesale and retail. It’s not about ’brokers are better’ or ’retail is better,’“ Roque added.
The company plans to grow via acquisitions of top-producing teams to establish a nationwide presence. These teams will have the opportunity to be an “anchor operation,“ Roque explained.
The lender is also seeking to acquire other companies, specifically targeting those that originate between $500 million and $2 billion a year, he said.
“Sierra is one of the most heavily capitalized companies in the country. It aims to aggressively grow retail, so a new heavyweight has entered the ring beyond the headlined mortgage companies,“ Roque said.
According to the Nationwide Multistate Licensing System (NMLS), Sierra had 145 active loan officers and 50 branches as of Monday.
In December, Sierra’s Chief Production Officer Jay Promisco, a HousingWire Vanguard, sat down with Clayton Collins to detail how he builds cohesive teams in intense environments.
Bootstrapping typically means relying on one’s self to reach a goal. In business, bootstrapping is generally used to describe entrepreneurs who use their own personal funds and resources to start a business instead of raising money through small-business loans or investors.
Whether bootstrapping is your personal preference or your best option to start a business, there are pros and cons to this funding method, as well as some alternatives that might be helpful to consider.
How much do you need?
We’ll start with a brief questionnaire to better understand the unique needs of your business.
Once we uncover your personalized matches, our team will consult you on the process moving forward.
What is bootstrapping?
Bootstrapping refers to entrepreneurs starting new businesses by relying on their personal resources instead of securing funds through business loans or raising capital through investors. Or, in the case of an existing business, bootstrapping can be used to describe an entrepreneur using the revenue generated by their company, along with personal resources, to grow the business.
Some personal resources that may be used in bootstrapping include:
Personal savings.
Personal credit cards.
Personal loans, including home equity loans.
Personal spaces such as an extra room or garage.
Personal assets like equipment and supplies.
Pros and cons of bootstrapping
Pros
Owner retains full control of the business.
No business loan debt is taken on by the company.
Accrue time in business and revenue to help qualify for future funding.
Cons
Business growth may be limited due to lack of funds.
Personal assets, such as savings and retirement, could be at risk.
Doesn’t typically build business credit history.
Why do entrepreneurs choose bootstrapping?
For some entrepreneurs, bootstrapping is a personal preference and for others it may be their only option for launching a new business or growing an existing one.
Here are some reasons entrepreneurs may use bootstrapping to start their business:
Can’t qualify for a business loan
One of the top reasons budding entrepreneurs turn to bootstrapping is because they can’t qualify for a startup business loan. They may not be able to meet lender requirements for time in business, credit score and annual revenue, among other things.
Banks and SBA lenders — lenders that offer loans guaranteed by the Small Business Administration — generally have competitive rates and terms. However, to qualify for funding, you’ll typically need multiple years in business, in addition to good credit. For example, a Wells Fargo BusinessLine line of credit requires a credit score of at least 680 and two years in business.
Online business loans are typically easier to qualify for than bank loans; however, approval can still be a challenge for brand-new businesses. For example, Fora Financial offers business loans for bad credit with a minimum credit score requirement of 500 but also a minimum of six months in business.
Don’t want to take on additional debt
Entrepreneurs who could qualify for a business loan may choose bootstrapping because they don’t want to take on business debt and the interest expense and additional fees that come with a loan.
Business loan interest rates vary based on a number of factors. However, according to the most recent data from the Federal Reserve, interest rates on the average small-business bank loan ranged from 6.13% to 12.36% in the fourth quarter of 2023
. Other types of loans, including online loans, can have even higher interest rates.
In addition to interest, borrowers often have to pay fees like a business loan origination fee. Interest and fees may push the total cost of the loan beyond what an entrepreneur is willing to pay.
Don’t want to give up full control of the business
Entrepreneurs who have ruled out debt financing may have the option of raising money through equity financing — selling shares in their business to investors in exchange for funding. While equity financing doesn’t require taking on debt or making loan repayments, some entrepreneurs may still prefer bootstrapping.
When an entrepreneur sells shares in their business, they exchange partial business ownership for the investor’s funding. And, depending on the number of shares sold and the investor’s goals, the entrepreneur may no longer have full independence to run the company their way. They’ll also have to share the profits if the business succeeds.
Want to test the business idea before fully committing
Bootstrapping can allow an entrepreneur to try out their business model, refine their marketing strategy and build a customer base before committing to long-term financing or arranging to offer equity to investors. In addition, a business owner may find it easier to qualify for funding from business lenders after they’ve been in operation for at least six months.
Also, some entrepreneurs may not be comfortable quitting a full-time job in order to start a business. Bootstrapping can be a way to get a business off the ground without losing your main source of income.
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Bootstrapping tips
The following tips may help you when bootstrapping your business:
1. Create a business plan.
Regardless of how you choose to fund your startup, you’ll need to write a business plan. The plan provides detailed information on your business, such as an executive summary, product description, market analysis, marketing strategy and financial projections.
Your business plan can be used as a guide to set up your business and help you identify your customer base, establish your marketing plan, lay out the organization of your operation and explain how you plan to generate revenue. You’ll typically update your business plan as your company grows.
In addition, if you decide to look for additional funding in the future, you can share your business plan with lenders and investors to show them that you have a profitable operation.
2. Officially launch your business
Bootstrapping may involve starting a scaled-down version of your business where, for example, you operate out of a spare room or use personal funds to buy supplies. However, no matter the size of your operation, you still want to take steps that will make your business official in order to best set it up for future growth.
Some common steps to take when launching a business:
3. Lay the groundwork for a future business loan
Bootstrapping is often used to get a business up and running; however, it’s not always the best option for business growth. For some entrepreneurs, bootstrapping may be a short-term option that will help them secure business financing in the future.
Bootstrapping can give you the opportunity to accrue time in business, generate revenue and build a customer base — all things that will make your business more attractive to lenders and investors down the road.
4. Take advantage of free resources
There are organizations that offer free or low-cost training, counseling and other resources to help you start and grow your business.
SBA resource partners are located throughout the U.S. and include Small Business Development Centers, SCORE business mentors, Veterans Business Outreach Centers and Women’s Business Centers, among others.
U.S. Chamber of Commerce chapters provide resources for entrepreneurs including virtual events and networking opportunities within your local community, though a membership fee may be required in some cases.
Industry and trade associations within your local community can provide opportunities to advance your industry knowledge and network through conferences and member events.
Public libraries can also be a resource to small-business entrepreneurs, with some offering online courses, demographic information, business planning tools and suggested reading lists.
Alternatives to bootstrapping
Here are some alternatives you may want to consider before deciding to fund your business on your own:
Business loans. There are many different types of business loans — term loans, lines of credit and equipment loans. Because the qualification requirements for business loans vary by type and lender, exploring a variety of options may allow you to find a loan that works for you and your new business.
Family and friends loans. Asking family members and friends to loan you funds or invest in your startup business is another way to raise money. Although these arrangements are often informal, it’s important to put the details of the funding in writing so there are no misunderstandings in the future.
Small-business grants. Grants can be a source of funding for small businesses, although competition for this “free” money can be fierce and the application process can be time-consuming. However, there are startup business grants offered by government agencies, corporations and nonprofit organizations that may be worth looking into.
Crowdfunding for business. Crowdfunding can be used to create online campaigns to raise money for a business startup, as well as other causes. A unique business idea and a wide network of supporters can help an entrepreneur launch a successful campaign.
Looking for a business loan?
See our overall favorites, or narrow it down by category to find the best options for you.
Frankly, however, the biggest surprise at the moment might be that sales volumes have held up pretty well over the past few weeks even as mortgage rates have climbed into the mid-7s. We’ve been talking about sales growth over the past year. More home sales are happening, but we can also see — once adjusted for seasonal patterns — that sales should be much higher now if a real market recovery were underway.
It feels like the latest macro trends will keep mortgage rates in the mid-7% range for the near term. And we’d expect that to slow home sales further. That’s why Altos Research tracks every home for sale in the country each week. The data so often defies expectations or changes very quickly. Let’s dig further into the details of the U.S. housing market for the week of April 22.
Housing inventory
When we look at the active inventory of unsold homes on the market, we can definitely see the impact of higher mortgage rates in the past month. There are 543,000 single-family homes on the market now. That’s a 3% jump from last week and 31% above year-ago levels.
The available inventory of unsold homes on the market is building quickly due to the most recent mortgage rate jumps. There are 130,000 more homes on the market now than last year at this time.
Normally, inventory is climbing at this point in the second quarter. We’re rapidly approaching the peak of the market in terms of seller listings, and as inventory builds, the sales rate will peak by the end of June. So, it’s normal that inventory is growing now.
But when you add a spike in mortgage rates that makes homebuying less affordable, that leads to fewer buyers and inventory grows. Altos data currently shows an inflection point in April. With the most recent mortgage rate jump, inventory growth has also accelerated.
This is what is meant when we say that higher rates leads to higher inventory. We are on the path back to the formerly normal levels of unsold homes on the market. A couple more years with elevated rates will get us there.
But it’s also noteworthy to point out that falling rates reverse this trend. Lower rates mean that people snap up the existing inventory.
New listings
Growing inventory is not just about slowing demand. We are also consistently measuring more sellers coming back into the market. At 69,000 new listings unsold today, that’s 3% more than a week ago and 14% more than this time last year.
In fact, there are more new sellers this week than in any week of 2023. This selling season still has two more months of growth potential. Industry professionals would love to see 70,000 or 80,000 new listings per week in May. More sellers means more sales can happen. There’s a limit, of course, as we could eventually reach an imbalance if too many sellers flood the market and too few buyers follow suit. But we’re not close to that yet.
In the years before the COVID-19 pandemic, the latter half of April would normally see 80,000 to 100,000 new listings in a week. Now we’re at 69,000. Obviously, elevated mortgage rates slows both buyer and seller activity. There are a lot of people who will never sell their house with a 3% mortgage.
There’s unlikely to be a flood of sellers in the next few years, but we can see steady growth. Each year with higher rates will create more inventory growth and have fewer people locked into low rates. That growth is good for the market.
The available inventory of homes to buy and the new ones being listed for sale each week are what consumers care about. If I’m buying a house, do I have any houses to buy? For homebuyers, the selection they have now is the most they’ve had in years.
Real estate professionals, on the other hand, have to care about transaction volume. How many home sales are happening? Because there were so few sellers last year, the number of sales was quite constricted. That’s starting to change. The 14% increase in new listings over the past year is a really good sign that sales can grow.
Pending sales
When we look at the sales rate, we can indeed see that home sales are growing. There were 71,000 new contracts started for single-family homes this week. That’s 3% more than last week and 7% more than a year ago.
There are still 8% fewer sales happening each week than in 2022. At that time two years ago, there were frantic last-minute deals getting done as mortgage rates were rising quickly. So, even though rates were up back then, sales were still strong.
But the hectic pandemic-era pace of sales had slowed, so inventory was building quickly. In 2022, the new sales rates really cratered after the Fourth of July holiday.
There are now 385,000 single-family homes under contract. That’s 5% growth compared to this time last year but is still 14% less than two years ago. New sales started this week saw 7% growth while the total number of homes under contract saw 5% growth.
It takes 30 to 40 days for the typical sale to close. The homes under contract now will mostly close in April and May. The 5% annualized growth rate is less than we’d hoped for at the start of the year, but it’s creeping up even with higher mortgage rates.
Altos Research uses direct measurement rather than seasonally adjusting its numbers. There are 385,000 single-family homes in escrow to complete a sale as of today. If you were to approximate a seasonal adjustment on this number, you would see a yearly sales pace of about 4.4 million units for April 2024. That pace is up from April 2023, but it is still running slower than the typical April. The seasonal pace is where one can observe the slowdown due higher mortgage rates.
The takeaway from the weekly new pending sales data is that even though sales continue to outpace last year, that growth has definitely slowed.
Home prices
The median price of single-family homes under contract is now $398,000. That jumped by 2.4% jump this week and is, in fact, a new all-time-high, surpassing the sale prices of two years ago.
These spring weeks are indeed the time when home prices climb, so it’s not too surprising that this trend is occurring now. But we’ve also been keeping a close eye on home prices in the face of these rising mortgage rates.
The prices of the homes going under contract are 6% more expensive than one year ago. Last year at this time, home prices were lower than in April 2022. But we’re now back at all-time highs. The previous peak was $395,000 two years ago.
One thing of interest in the price data is how slow this climb has been. Compared to Jan. 1, 2024, prices are up 6.6%. In most years, the increase is closer to 10% by this time in April. So, as a leading indicator for how the year ends up, this price signal is much softer than usual.
We can also see this in asking prices. The median price for all homes currently on the market is $449,000. That’s up a fraction from last week and only 1% above last year at this time.
Asking prices can be thought of as a leading indicator for future sales prices. Homes that are on the market now will get offers in May, close in June and will be reported on in July. So, the future signals for home prices aren’t falling because of higher mortgage rates, but it certainly looks like price appreciation has slowed.
Price reductions
Another strong leading indicator for future home sale prices is the share of homes on the market with price reductions. If more sellers have to cut their prices now, that’s a real signal for sales that will happen in the future.
Surprisingly, given the mortgage rate changes, there is no jump yet in the share of price reductions. We’ve been watching this stat closely.
This week, 32% of the homes on the market have taken a price cut. That’s actually down a fraction from last week, given a relatively strong set of new listings that hit the market and the fact that home sales are at their highest point of the year. Fresh inventory doesn’t take a price cut until after it sits for a while without an offer.
There are 3% more homes with price reductions today than a year ago. Last year at this time, price cuts were still decreasing with very tight volumes of new listings. There are more homes on the market now with price cuts than in any April on record. That shows weakness in prices, but it’s not a super high number and it’s not skyrocketing, so that implies we won’t see prices tanking anytime soon.
The takeaway here is that with the 30-year fixed mortgage at 7.4%, there is still just enough sales volume to keep home prices from dropping like they did in late 2022. The current market is not changing nearly that quickly. We’ll continue to watch data on price cuts. As mortgage rates make homes less affordable, fewer offers will be made and some sellers will cut their prices. That could accelerate in the next few weeks.
Inside: Learn how to save money quickly, even on a tight budget. Get practical tips for how to save money fast on a low income. Simple savings ideas to implement today.
Saving money on a tight budget can feel like a high mountain to conquer, especially when you’re trying to do it fast.
Many people earn just enough to cover their essential costs, leaving little room for savings. However, with the right strategies, saving money fast on a low income doesn’t have to be a pipe dream.
This is something I started when we decided to pay off debt. Then, we choose to continue saving that money and investing it.
By understanding the flow of your money – where it’s coming from and where it’s going – you can make informed decisions that maximize your savings potential.
By prioritizing your spending and forecasting future expenses, budgeting can reduce the stress of financial uncertainty and introduce a sense of control and confidence in your money management skills. Thus, leading to you starting to save.
What is the best way to save money on a low income?
On a low income, the best way to save money is to thoroughly understand your expenses and prioritize your needs over wants.
In addition, by planning and tracking your finances meticulously, you can identify where each penny is going. Thus, allowing you to analyze your expenses. Once you have a clear picture of these, start looking for areas to trim down.
Remember, saving money is about being proactive and consistent. These small but steady steps can build up over time to help you save money fast, even on a low income.
How to Save Money on A Fast Income
1. Start with Clear Priorities
Before you can decide where to cut costs or how to allocate your funds, you need to know what’s most important to you.
What is your why for doing what you need to do? Is it building an emergency fund, saving for a down payment on a home, or maybe preparing for retirement?
Whatever your goals, outline them clearly. This is how you will save money.
2. Budgeting effectively to manage finances
To budget effectively on a low income, it all starts with a cold, hard look at your numbers.
Begin by listing all sources of income – that’s your foundation.
From each paycheck or income stream, subtract your non-negotiable expenses such as rent, utilities, transportation, and debt payments. What you have left is your discretionary income.
Then, it’s time to categorize and prioritize. Group your expenses into necessities and nice-to-haves. If your essentials consume most of your income, you’ll need to scrutinize the nice-to-haves list.
Every dollar saved from unnecessary splurges is a dollar that can be put towards your savings.
Use budgeting apps or tools to keep a real-time record of your spending. These can help you stay disciplined and provide a visual reminder of your progress.
3. Track and Slash Unnecessary Expenses
Now, you must meticulously and ruthlessly cut out the non-essentials.
Identify patterns and spot the recurrent, unnecessary expenses that are draining your funds.
Do you subscribe to multiple streaming platforms?
Are you forking out cash for a gym membership you barely use?
Are those daily specialty coffee drinks adding up?
It’s time to slash these expenditures.
Cutting these expenses is like giving yourself a raise.
4. Lower Housing Expenses Without Compromising Comfort
Living in smaller, more affordable housing to decrease rent or mortgage might be exactly what you need.
Opting for a smaller, more affordable space is a practical approach to significantly lower your rent or mortgage payments. When you choose to live in a compact setting, not only do you reduce the square footage costs, but often, utility and maintenance expenses decrease as well due to the reduced size of the living area.
If you are renting, try to negotiate your rent or lease terms with your landlord – they might be willing to offer a discount to keep a reliable tenant, or you may be able to agree on lower rent for a longer lease commitment.
If you’re a homeowner, explore the possibility of refinancing your mortgage to take advantage of lower interest rates. Alternatively, consider renting out a room or a portion of your living space, as the additional income can offset your mortgage or maintenance costs.
5. Save Money on Utilities with Simple Home Adjustments
Saving money on utilities might sound challenging, but you can often achieve substantial savings with a few strategic home adjustments. Let’s explore some cost-effective strategies and modifications you can make to your living space that could help reduce your bills.
Energy Efficient Appliances: Swapping out older appliances for Energy Star-rated ones leads to significant reductions in electricity use and water consumption.
Smart Thermostats: Installing a smart thermostat allows you to programmatically control your heating and cooling based on your schedule and preferences, potentially saving you a bundle on your energy bills.
LED Lighting: Switch to LED bulbs, which are more energy-efficient than traditional incandescent ones and have a longer lifespan, saving you on replacement costs as well as your electric bill.
Insulation Upgrades: Proper insulation keeps your home warm in the winter and cool in the summer, reducing the need for excessive heating or air conditioning.
Water-Saving Fixtures: Low-flow showerheads and faucet aerators reduce water usage, preserving this precious resource and lowering your water bill.
Not only do these simple home adjustments lead to savings on your utility bills, but they also contribute to a more environmentally friendly lifestyle.
6. Cooking at home instead of eating out
Cooking at home instead of dining out is an excellent way to save money, especially on a low income. When you eat at a restaurant, you’re not just paying for the food; you’re also covering the cost of service, ambiance, and the establishment’s overhead.
Plan a balance between meal prepped home-cooked meals and the occasional dinner out to keep your budget in check while still enjoying life’s little pleasures. Here are some frugal meals to get you started.
Remember, you don’t have to eliminate eating out entirely.
7. Canceling unused subscriptions and memberships
Stop draining money on services you don’t actively use. It’s surprisingly easy to forget about these auto-renewing expenses, so taking the time to audit your subscriptions can reveal opportunities for savings.
Recently, we tracked over $100 a month in my mother-in-law’s unused subscriptions and membership!
As such, it’s important to periodically evaluate your subscriptions and memberships to ensure they are still serving your interests and goals. If not, give yourself permission to cancel and save that money for something that offers tangible benefits in return.
8. Buying quality items that last longer
Investing in quality items that last longer is a strategic way to save money over time. While the initial cost may be higher, durable products can prevent the cycle of frequent replacements, ultimately contributing to long-term savings and less waste.
Remember, not every purchase necessitates the highest quality option. Examine which items you frequently use and can benefit from in the long run. For instance, driving a Toyota or buying higher quality shoes.
Once you’ve identified these, invest in quality for those and enjoy the satisfaction of a purchase that lasts.
9. Optimize Grocery Shopping
To optimize grocery shopping and manage your food budget effectively, start by thoroughly checking your current pantry supplies and making a precise shopping list to deter impulse purchases.
Utilize coupons and enroll in local store loyalty programs for exclusive discounts.
Embrace meal planning to avoid unnecessary spending.
Consider incorporating meatless meals, as this can contribute to consistent savings over time due to the typically higher cost of meat compared to vegetables and other plant-based options.
Plan meals around these cheap foods when you are broke.
By shopping smartly, you have the power to drastically lower your monthly food bill. Just remember, the key is preparation and discipline.
10. Repairing items instead of replacing them
Repairing items instead of replacing them can be a significant money-saving tactic, especially when budgets are tight. It’s often more cost-effective to fix a piece of furniture, mend a garment, or troubleshoot an appliance than it is to buy new one.
Consider the condition and value of each item before deciding to repair it. If the cost of repair approaches the price of a new item, or if it’s beyond your skill set, researching community resources or seeking professional help may be a wise choice.
11. Practicing the 30-day rule for non-essential purchases
Putting the brakes on impulsive buying can significantly boost your savings, and practicing the 30-day rule is a tried-and-true method to control those urges.
Before you make any non-essential purchase, wait 30 days.
If after a month you still feel the purchase is necessary or meaningful, then consider buying it.
Remember that the goal isn’t to deny yourself enjoyment but to ensure that each purchase is considered and valued. This conscious approach can lead to more satisfaction with the items you do choose to buy and a healthier bank balance.
12. Skip the Car Loan
Opting out of a car loan and finding alternative modes of transportation, such as cycling, walking, or using public transportation, can lead to significant financial savings.
Without a car payment, individuals can redirect the funds that would have gone towards monthly installments, insurance, and maintenance into their savings account.
This strategy can be particularly impactful for those with a goal in mind or working with a low income, as every dollar saved moves them closer to financial stability. Furthermore, the elimination of auto loan interest charges and potential debt can provide a more secure financial footing and peace of mind.
13. Using public transportation or carpooling to reduce fuel costs
Utilizing public transportation or carpooling can be significant in reducing fuel costs, particularly when you’re committed to saving money on a low income. These alternatives to solo driving not only save on fuel but also on parking fees, and wear and tear on your vehicle.
Another option is embracing car-sharing services, especially if you find that you don’t require a car on a daily basis. Services like Turo and Getaround offer the flexibility of having a car when you need one without the constant financial responsibility associated with ownership.
Remember, it’s all about what suits your lifestyle and frequency of need. By assessing how often you need a vehicle and comparing it with the total costs of ownership, car-sharing could be an excellent way to save money.
14. Selling unused or unwanted items for extra cash
Selling unused or unwanted items is a fantastic way to declutter your space and earn extra cash. You might be surprised how much money you can make by letting go of things you no longer use or need. From clothes you’ve outgrown to homeware that’s gathering dust, each item sold can inch you closer to your savings goal.
Take advantage of this opportunity; a thorough home audit could reveal a treasure trove of sellable items right under your nose. Not only does this increase your income, but it also helps you consider future purchases more carefully.
15. Taking advantage of free entertainment and community events
Leveraging free entertainment and community events is a delightfully frugal way to enjoy yourself without breaking the bank. From concerts and exhibitions to workshops and meet-ups, there’s often a wealth of activities that won’t cost you a penny.
In fact, here at Money Bliss, I have the most popular list of things to do with no money.
With a little creativity and resourcefulness, you can uncover a variety of enjoyable and inexpensive things to do.
16. Automating savings to ensure consistent contributions
Automating your savings is a hassle-free way to ensure you consistently contribute to your financial goals.
By setting up an automatic transfer from your checking account to a savings account, you’re essentially paying your future self first.
This ‘set and forget’ approach helps grow your wealth with minimal effort.
17. Negotiating bills and asking for better rates
Many service providers are open to negotiating prices if it means retaining a customer. Whether it’s your cable package, insurance, or even a credit card interest rate, it’s worth having the conversation.
Remember, the worst they can say is no. But often, companies will offer helpful options when they realize you are considering alternatives due to cost concerns.
One phone call could save you $1000 a year – just like when I decreased my cable bill!
18. Evaluating insurance policies for potential savings
When evaluating insurance policies, it’s critical to regularly assess your coverage needs and shop around for the best rates. Comparing policies from different providers annually can reveal opportunities for lowering premiums or finding more suitable coverage.
Utilize online tools and independent insurance agents to ensure a comprehensive review of available options.
Remember to inquire about bundling policies, as this can often lead to significant savings while consolidating your insurance needs effectively.
19. Meal Planning and Prep: Strategies to Reduce Food Waste
By allocating some time each week to plan your meals, you can ensure that you only buy what you need, thereby minimizing waste and cost.
Learning to meal plan starts with looking at a calendar and a local sales flyer to find the low cost deals.
By creating a weekly plan and incorporating budget-friendly recipes, you can not only eat healthier but also avoid the costlier option of dining out.
20. Forgo single use items
By choosing reusable items over single-use ones, you cut down on waste and habitual spending on disposables. This is also known as frugal green.
For instance, investing in a reusable water bottle, rather than buying single use water bottles.
By integrating sustainable products into your life, you also promote a culture of conservation and mindfulness, inspiring others to make eco-friendly choices.
21. Shopping for groceries with a list to avoid impulse buys
This is key! Especially when shopping with kids or a significant other!
Shopping for groceries with a list is a golden rule to avoid impulse buys, which can quickly derail your budget. By planning your purchases beforehand, you stick to the essentials and resist the temptation of sale items that aren’t on your list or don’t fit your meal plan.
Bonus Tip: Remember to always shop on a full stomach – hitting the grocery store hungry is a surefire way to end up with impulse purchases that aren’t on your list!
22. Buying generic brands instead of name brands
Opting for generic brands rather than name brands is a straightforward and effective way to save money on everything from groceries to over-the-counter medications. These products are often of similar quality and effectiveness but come at a significantly lower cost.
By making the switch to generics, especially for regularly used items, the aggregate savings can be substantial over time.
23. Making bulk purchases for commonly used items to save on cost-per-unit
When you buy in larger quantities, the cost per unit typically decreases, leading to savings that add up over time. Bulk buying works best for non-perishable goods or products you use consistently.
Make a point of buying non-perishable items or products with a long shelf life in bulk to avoid waste and ensure that you truly save money with each bulk purchase.
Just make sure you are going to use it!
24. Cutting costs on personal care by DIY methods
DIY methods for personal care are not just a trend – they’re a practical and often healthier alternative to store-bought products. By creating your own beauty and personal care items, you can significantly trim costs and take control of what goes on and into your body.
Even if you’re not the crafty type, consider starting small with something like a DIY sugar scrub or homemade toothpaste. This is something I did over ten years ago. You might discover a new hobby that enhances both your well-being and your budget.
25. Regular maintenance of vehicles and appliances to prevent costly repairs
Keeping on top of maintenance schedules helps prevent major breakdowns that can lead to expensive repairs down the line.
By making regular maintenance a non-negotiable part of your routine, you protect your investments and save yourself from future financial headaches.
I keep a list in my digital to do list, so I never lose track.
26. Shopping at thrift stores, garage sales, or second-hand websites
Shopping at thrift stores, garage sales, or second-hand websites is an excellent way to acquire items at a fraction of the retail cost. Not only are you being financially savvy, but you’re also participating in the circular economy, reducing waste, and often supporting charitable causes.
Shopping second-hand first is not just about saving money—it’s a lifestyle choice. With patience and persistence, it’s amazing what quality items you can find without impacting your wallet heavily.
27. Learning basic sewing to repair clothes
Mastering the basics of sewing to mend your clothes is a skill that pays off in multiple ways. You save money by extending the life of your garments, reducing waste, and developing a practical capability that can come in handy in various situations.
Honestly, sewing a piece of clothes is a very simple thing. Something that must be learned by the younger generations.
Consider setting aside some time to learn sewing basics via online tutorials, community classes, or even from a friend or family member—it’s a practical step toward financial savings and sustainable living.
28. Utilizing coupons and discounts for shopping
Using coupons and discounts strategically can lead to significant savings on your shopping bills. With a little planning and some savvy shopping techniques, you can ensure you never pay full price for essentials and other purchases.
Remember to only use coupons for items you were already planning to purchase; otherwise, you’re not saving money, you’re just spending less on something extra.
29. Consolidating debt to reduce interest rates
Debt consolidation can be a strategic financial move to lower your overall interest rates and simplify your monthly payments. By combining your debts into one loan with a lower interest rate, you can streamline your bills and potentially save significant amounts of money over time.
Make sure to shop around for the best debt consolidation options and read the fine print. The goal is to find a consolidation plan that truly puts you on a faster track to being debt-free without any hidden costs.
30. Tackle High-Interest Debts First to Free Up More Cash
Addressing high-interest debts is paramount in optimizing your financial strategy. Such debts, often from credit cards or payday loans, can spiral out of control if not managed promptly due to their compound interest rates, which can quickly exceed the original amounts borrowed.
This is known as the debt avalanche.
By zeroing in on high-cost debts, you ensure your income is spent more effectively and not wasted on steep interest fees, accelerating your path to financial freedom.
31. Choose the Right High-Yield Savings Account for Your Emergency Fund
Selecting the right high-yield savings account for your emergency fund is an essential move for growing your savings. High-yield accounts offer interest rates significantly higher than standard accounts, ensuring your emergency fund doesn’t stagnate and keeps pace with inflation as much as possible.
This is one of the bank accounts you need.
32. Implement The Envelope System
The Envelope System is a budgeting method that involves physically dividing your cash into envelopes for different spending categories.
Utilizing the cash envelope system promotes disciplined spending by providing a tangible limit on various expense categories, ensuring you stay within your pre-determined budget and facilitating more intentional money management.
This method also offers immediate visual feedback on spending patterns, which can lead to better financial habits and incremental savings as any leftover cash from each envelope can be added directly to a savings fund, making the act of saving more rewarding and motivating.
33. Using cash -back envelopes to track spending
The use of cash-back envelopes takes the traditional envelope budgeting system a step further by rewarding yourself with savings.
Whenever you spend less than the allocated amount in a budget category, you place the cash difference into a “cash-back” envelope, which can be used for saving or investing.
Adopting the cash-back envelope strategy can provide a rewarding twist to budgeting, making it a fun challenge to spend less and save more.
Boost Your Income: Creative Side Hustles and Opportunities
Boosting your income can provide substantial financial relief, particularly when you’ve maximized your ability to cut costs and still find your expenses stretching your budget thin.
Generating extra income, be it through a side hustle or achieving a raise enhances your ability to save and invest.
With additional streams of revenue, you gain more financial flexibility to achieve goals like paying off debt faster, saving for a significant purchase, or building an emergency fund.
Finding a side hustle or part-time job for additional income
Exploring a side hustle or part-time job is a proven way to supplement your income. In today’s gig economy, there are numerous opportunities for flexible work that can be customized to fit your skills and schedule.
A side hustle can not only pad your wallet but also provide an outlet for creativity and passion, possibly even offering a new career trajectory down the line.
Explore Gig Work and Passive Income Streams
Exploring gig work and passive income streams can accelerate your savings efforts, especially when your regular income isn’t enough to reach your financial goals. These alternative income ideas often provide the flexibility to work on your terms and build up earnings over time.
These revenue channels provide a proactive approach to increasing your disposable income. Researching and choosing the best options for your skills and financial situation can help you build a sound extra income strategy.
Take Advantage of Bank Bonuses and Credit Card Bonuses
Banks often offer attractive incentives to new customers, and high-interest savings accounts can grow your deposits at a faster rate than traditional accounts. The same is true for credit card issuers offering big bonuses.
Taking time to research the best offers and account terms can net you a nice bonus and put your money to work earning more money.
Learn How to Invest Your Money
Learning how to invest your money is paramount to building wealth over time. While it can seem intimidating at first, understanding the basics of investing can enable you to take advantage of compounding interest and market growth to increase your savings exponentially.
Start small, stay disciplined, and continually educate yourself as you grow your investment portfolio. Over time, your investments can become a significant source of wealth and financial security.
Learn how to invest in stocks for beginners.
FAQs: Navigating the Path to Low-Income Savings Success
Saving money when your income barely covers your fixed expenses requires a strategic approach. Begin by scrutinizing your budget to cut any non-essential costs.
Look for ways to reduce your fixed monthly expenses, like negotiating bills or refinancing loans.
Every small change can contribute to your savings, so focus on making incremental adjustments that together can enhance your financial situation.
Even when funds are tight, saving money is possible by making small but impactful changes.
Prioritize reviewing your expenses and identifying areas to cut back, such as non-essential subscriptions or eating out.
Round up loose change or small amounts from your daily transactions into savings.
Seek free entertainment options and consider generating additional income through side hustles or selling items you no longer need.
Each penny saved is a step towards your financial cushion.
Setting Realistic Savings Goals and Celebrating Milestones
Setting realistic savings goals is a key to financial success, particularly when managing a low income.
Determine what you can feasibly save without overstretching your budget. Whether it’s $5 or $50 per week, every bit helps.
Celebrating your achievements, no matter how small, can inspire continued discipline and dedication towards your financial objectives.
Being realistic and flexible with your budget will help you manage your finances more efficiently, ensuring that you set aside money for future growth, even when funds are tight.
This is a great step towards habits of financially stable people!
Know someone else that needs this, too? Then, please share!!
Did the post resonate with you?
More importantly, did I answer the questions you have about this topic? Let me know in the comments if I can help in some other way!
Your comments are not just welcomed; they’re an integral part of our community. Let’s continue the conversation and explore how these ideas align with your journey towards Money Bliss.