Last Updated on February 25, 2022 by Mark Ferguson
Many people have dreams of making it big as a real estate agent, but they want to start slow as a part-time agent. They want the freedom, income, and other benefits that come with being a real estate agent but are afraid to lose a steady income. Getting a real estate license and working part-time as an agent may seem like a great idea, but it is not easy to pull off.
There are some cases when working part-time may work; like an agent who only uses their license for their own investing strategies. There are also a couple of other instances where being a part-time agent can work if you have a very flexible schedule. The problem with being part-time in real estate is that clients need things done at all times of the day. If you cannot get away from your job, you are going to find yourself struggling to help those clients.
How hard is to become an agent?
One of the drawbacks to becoming a part-time real estate agent is how much work it takes to become a real estate agent. One of my team members just got their real estate license. It can take hundreds of hours of education and testing to become an agent. If you already have a job, even part-time, it will be tough to find the time to complete your education.
There are night classes and online classes that you can take to get your real estate license, but you will have to spend a lot of time studying. The real estate exam is not easy to pass and it will take a lot of time to prepare for it. If you want to become a part-time agent, make sure you factor the time it will take to get your license into the equation.
In Colorado, you will need to take 168 hours of classes either online or in-person to complete the education portion. Once you pass the classes you must take the test, pass the background check, and find a broker to work with. This all takes a lot of time!
If you are interested in getting your real estate license, Real Estate Express offers classes in most states and is very affordable.
Will you have enough time for clients?
Once you get your license, you must hang it with a brokerage. After finding a brokerage, you must start working with clients and generating business. This is where it gets tricky for a part-time agent who has another job. Whether you are listing homes or working with buyers, selling real estate is a random hours job. You may not have to work 40 hours per week, but you will have to work all hours of the day.
If you have a day job, you had better be able to get away from that job to take calls for your real estate job. Buyers are going to want to look at houses and offers must be negotiated and presented. If your clients have to wait eight hours to get a hold of you, they are going to get frustrated. There is a good chance you will lose clients if you cannot get back to them in a timely manner. In a tight sellers’ market such as the one we have now, speed is very important in getting offers accepted. If buyers feel an agent cannot submit offers quickly enough for them, they will probably find another agent. If you cannot respond to your clients for hours at a time, are you being a good agent to them?
You can also check out the video below on part-time agents
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What does a real estate agent do?
Most people think that being an agent is about showing houses and writing offers. However, there is much more to being a real estate agent, and that is why we are paid so much for selling homes. Real estate agents have to do many things to close deals and generate business. Here are some of the things an agent must do in order to be successful:
Show houses
Write contracts
Help buyers complete inspections
Contact lenders
Contact title companies
Contact other agents
Complete continuing education
Host open houses
Talk to your circle of influence
Create brochures
Take photos
Create advertisements
Answer their phone
Floor duty
Create plans and goals
Manage expenses
As you can see, there is a lot that a successful agent must do. Not only do you have to work with clients, but you have to find clients as well. It takes a lot of time to be a great agent and it is very difficult to do part-time. Being able to answer your phone at any time is one of the best ways to get business. If you are returning calls hours after you receive them, there is a great chance that person already has another agent who called them back quicker or answers their phone.
Can you maintain a good reputation as a part-time real estate agent?
As a real estate agent, I deal with other real estate agents, title companies, buyers and sellers, lenders, attorneys, investors, and many people in our community. My reputation is a huge reason why I have been so successful as an agent, broker, and investor. When you are a part-time agent, it is very tough to find enough time in the day to get all your tasks done and follow up with people. If you are calling back people days later or not at all, word will spread very quickly around the real estate community. It is very important to provide great service as a real estate agent and that is tough to do when you only work part-time.
If you get a reputation as someone who is hard to get a hold of, does not call back, or is too busy to follow up, it will be very hard to shake that reputation. Even if you become a full-time agent and do an amazing job, people will remember the less than par work that you did previously. People remember the poor work people do and they expect people to do good work.
I go over everything it takes to become a real estate agent in my book How to Make it Big as a Real Estate Agent. How to get leads, how to find a broker, how much money you can make, how to make money, how to manage your time, and how to avoid the struggles many agents have. It is available on Amazon as a paperback or Kindle, and it is also on audible as an audiobook!
Can joining a team help?
If you want to be a part-time agent and there is no possible way that you can quit your current job, there are some steps you can take to be more successful. I have a team of ten people who help me run my real estate business, fix and flip business, and REO business. We have some part-time help and many members of my team started out as part-time workers. If you join a team, your team can help cover for you when you have to work your other job. By joining a team, you agree to give up part of your commission to the team so the team is motivated to help you succeed. I think there is a better chance of succeeding as a part-time agent if you can join a team rather than trying to do everything yourself.
You will be doing other tasks than just working as an agent, but it will all be real estate related. You will also have a flexible schedule on most teams that will allow you to drop everything and go show houses if needed.
Does it help with investments?
The best situation to become a part-time real estate agent is when you are a real estate investor. I own 20 long-term rentals and I complete 20 to 30 fix and flips per year. I save money when I buy a home from the MLS and when I sell a home because I do not have to pay a listing agent. Being a part-time agent who invests in real estate is well worth it in my opinion.
If you are only an agent to save money on your own properties, you do not have to worry about having a flexible schedule or working leads. If you are only an agent because you are an investor, being a part-time agent may work out great.
What other options will help part-timers succeed?
Joining a team is one way to succeed as a part-timer. There are some other ways to make a part-time real estate career work. The most important thing to have as a real estate agent is availability. Many people do not want to be on-call all the time, but there are sacrifices you must make for an awesome career. While you may not have to work 30 hours per week as an agent or even 20 hours a week to sell houses, you need to be available most of the time. If a buyer or seller needs to talk to you on a Sunday afternoon or on a Monday morning, you should be available. You may have to show houses on the weekends or in the evenings. Real estate agents make their own schedules and have a lot of freedom, but when a client needs to see a house after hours, an agent should accommodate them.
If you want to be a part-time agent and have a very flexible schedule, you have a much better chance of making it. If you have to work another 9 to 5 job every day, it will be very tough to make a real estate career work. There are some amazing jobs today that can help agents make money and have a flexible schedule. Uber or Lyft are ways agents can make money, but also be able to drop everything to help out a client.
Conclusion
A part-time agent can make it in the real estate industry, but to be successful, part-timers need to join a team until they can go full-time. If you are an investor who just wants to save money on your own investment properties, becoming a part-time agent is a great idea.
Many of my sales come from listing REO and HUD homes for banks and for the government. If you want to become an REO agent, you must be a full-time agent. Banks and HUD need immediate responses on their properties and getting back to them in a day or two will not cut it. I have to do inspections within 24 hours and most tasks in 48 hours. To be successful you need to commit and it is tough to commit to something when you are part-time.
Wells Fargo, which has been the top residential mortgage lender for five consecutive quarters, offers several incentives to those who choose to close their mortgage with the bank.
One such program is the “Wells Fargo Closing Guarantee,” which is essentially a promise they’ll close your loan on or before the closing date stated in your original purchase contract.
After all, you won’t want to sleep in a hotel, or worse, the moving truck…
But if, for some reason, Wells Fargo is unable to close on or before that date, you’ll get a check equal to your first month’s principal-and-interest mortgage payment.
Not a bad deal, right?
Well, there is some fine print you should be aware of.
First, you must provide Wells Fargo with a copy of the original purchase contract and all required documentation within 48 hours of submitting a complete loan application.
Additionally, the loan must be locked and all loan requirements and conditions must be met at least 10 business days prior to the set closing date.
The guarantee is not valid if you change loan programs or terms, if you don’t specify a closing date, move up the closing date, miss the closing date on your own actions (or a third party’s) or due to inclement weather, if applicable law or investor requirements impose a required waiting period prior to closing, or if you commit fraud.
The Wells Fargo Closing Guarantee is only good for purchase money mortgages (including purchase money home equity lines of credit), and excludes refinance loans, non-purchase money second mortgages, and mortgage broker-originated loans.
Wells Fargo & Company employees, along with their family members, are not eligible.
Assuming you qualify, you must continue to make mortgage payments (don’t assume they’ll pay it)!
Finally, the Wells Fargo Closing Guarantee may be reported to the IRS on a Form 1099-MISC, so you will likely be taxed on it as well.
The Verdict
It’s certainly not a bad deal if Wells Fargo happens to be providing you with the lowest mortgage rate and set of terms.
But it’s certainly not a reason to choose Wells Fargo over another lender that may be providing a lower rate and better terms.
And it sounds like something has to go horribly wrong for the guarantee to actually be paid out, especially with all the requirements that must be met.
So be sure to shop around and obtain several mortgage rate quotes before committing to one lender.
Housing and transportation may be the top line items in a typical family budget, but the cost of meals and groceries can also be significant. In fact, food prices increased 8.5% between March 2022 and March 2023, according to the Bureau of Labor Statistics’ most recent Consumer Price index report. While all consumers are impacted by price hikes, families in particular may be feeling the pinch at checkout.
If you have a larger family, creating a budget can help keep you from overspending at the grocery store. But how much should you allocate for food each month? Keep reading to learn more about creating a grocery budget for a family of five.
Average Grocery Budget for American Family of Five
When coming up with your grocery budget, it helps to first understand how much you can expect to spend on food. The average household spends roughly $438 per month or $5,259 per year, on at-home food, according to the most recent statistics available from the Bureau of Labor Statistics.
But how much should you budget for groceries if you have a family of five? A good starting point is the USDA’s food plans, which include four spending levels: thrifty, low-cost, moderate-cost, and liberal. According to the latest food plan available, here’s what a family of five should plan to spend on groceries:
Spending level
Cost per month
Cost per year
Thrifty
$922
$11,064
Low-cost
$991
$11,892
Moderate-cost
$1,233
$14,796
Liberal
$1,488
$17,856
Source: USDA food plans
How Much to Budget for Groceries Per Person
How much a family of five end up budgeting for groceries depends on a number of factors, like how much the store charges, the type and amount of food purchased, and whether they use a grocery delivery service.
Want to figure out how much to allocate in your food budget for each family member? You can refer to the USDA food plans above for a general idea of monthly and yearly costs, and divide the amounts by the number of members of your family. You can also look at the last three to six months of your family’s grocery bills and calculate a monthly average. Divide that amount by the number of members of your family.
Once you see how much you’re actually spending per person each month, you can adjust your budget accordingly.
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How to Prioritize Your Grocery Spending
When you’re feeding a large family, you want to make the most of your grocery list. The best way to prioritize your food spending is to create a monthly budget and stick to it. Having a plan in place makes it easier to curb grocery store splurges.
If you’re new to budgeting, you may want to use the 50/30/20 rule. This framework calls for earmarking 50% of your monthly after-tax income on things you need (such as food, housing, and transportation), 30% on things you want (such as a new outfit or tickets to a concert), and 20% on savings and debt repayment.
Another helpful tool to consider is a budget planner app, which allows you to easily set spending and savings goals and monitor your progress.
How to Stay Within Your Grocery Budget
Staying on top of a grocery budget can be challenging, especially when you have a larger family. The following tips can help:
Don’t Shop When You’re Hungry
When your stomach is grumbling in the middle of the grocery store, chances are you’re more likely to give in to cravings. This may leave you with a cart full of impulse buys, which could add to your overall cost.
Make a Shopping List
Writing down everything you need before you start shopping is a good way to ensure you only pick up the items you need and are in your budget.
Embrace Meal Planning
Create a weekly menu ahead of time so that when you hit the store, you know exactly what ingredients to buy. If your finances allow, consider reserving a small chunk of the budget so that each family member can pick out a treat for that week.
Recommended: How to Create a Budget in 6 Steps
How to Budget for Restaurants and Dining Out
While eating at home can be more cost effective than dining out, many memories are made at restaurants. If your family is planning to have meals out, how much should you expect to spend?
The average American household spends $3,030 on dining out, according to the most recent data available from the Bureau of Labor Statistics. However, larger families should expect to spend more.
Tips for Reducing Your Grocery Budget
Looking to lower your grocery bill? Consider these simple strategies:
• Buy in bulk
• Shop at discount retailers
• Choose generic brands
• Meal prep for the week
• Shop sales
• Join rewards programs
• Use coupons
• Use a credit card that earns cash back rewards
Tips for Getting Help If You Can’t Afford to Buy Groceries
Families that are struggling to pay for food have several government resources they can turn to for help. Food stamps (also referred to as SNAP benefits), the WIC program, school meal programs, and food assistance programs are all worth looking into. Depending on the program, you may need to meet certain criteria, such as an income limit, in order to be eligible.
Examples of the Cost of Common Groceries
As anyone who has stepped foot in a grocery store lately can attest, food costs are going up. But just how much depends largely on where you live. Still, it can be helpful to understand national prices so you can prepare your food budget accordingly. Below is the national average of six common items, according to an NBC News analysis of NielsenIQ data.
Average Cost of Groceries in 2022
Orange juice (60 oz.)
$4.01
Chicken eggs (dozen)
$4.05
Chicken breast/lb
$3.90
Fresh ground beef/lb
$5.96
Bacon (16 oz.)
$5.39
Loaf of bread
$3.27
How to Stretch Your Grocery Budget
Stretching a grocery budget requires careful planning. A few places to start: planning meals for the week, taking advantage of weekly ads and local deals, and shopping at more affordable grocery stores. Savvy shoppers can even design meals around the discounts and coupons being offered at the more affordable grocery stores.
Another strategy is to buy in bulk where it makes sense. Purchasing larger amounts of staples like rice, flour, and paper products can provide a better bang for your grocery buck.
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The Takeaway
Food is a major expense for most Americans, but perhaps more so for larger families. Creating a budget can help keep costs in check. On average, a family of five spends anywhere from $922 to $1,488 a month on groceries, according to USDA monthly food plans. If you’re looking to curb your spending, consider meal planning, buying in bulk, and shopping at more affordable grocery stores. If you need help paying for groceries, government programs like SNAP benefits and WIC can provide support.
To make budgeting for groceries and other expenses easier, consider using a money tracker app. The SoFi Insights app connects all of your accounts in one convenient dashboard. From there, you can see all of your balances, spending breakdowns, and credit score monitoring, plus you can get other valuable financial insights.
Stay up to date on your finances by seeing exactly how your money comes and goes.
FAQ
What is a realistic grocery budget for a family of five?
Depending on how much you have to spend on food, a realistic grocery budget for a family of five may range anywhere from $922 to $1,488 a month on groceries, according to USDA monthly food plans. To determine how much your family should spend each month, consider adding up the last three to six months of grocery bills and finding the monthly average.
How can a family of five save money on groceries?
There are steps a family of five can take to save on groceries, including meal planning, taking advantage of coupons and weekly deals, and making a shopping list ahead of time. Those strategies allow families to spend more mindfully and, ideally, lower their grocery bill.
What is a reasonable grocery budget?
The average American household spends $5,259 per year on groceries, according to the most recent statistics available from the Bureau of Labor Statistics.
Photo credit: iStock/seb_ra
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Understanding your policy’s death benefit.
Q: How long does it take my beneficiaries to get my life insurance death benefit?
Once the death benefit claim form and a copy of the death certificate have been received by the carrier, beneficiaries typically receive the death benefit check in two weeks.
However, if the insured dies within the contest-ability period (which is typically two years) the death benefit may take longer because the life insurance company has the option to investigate the claim if they choose do to so.
Q: How do I know my beneficiaries will get paid the death benefit?
Life insurance companies are not in the business to rip people off. As long as your policy is inforce at the time of your death (in other words, the premiums were paid up-to-date) your beneficiaries will receive the death benefit payout. There are only a few exceptions to this, which we discuss in detail below.
Q: Are there any situations in which my life insurance policy won’t pay out?
There are three instances in which a life insurance company can choose to deny or reduce a term life insurance policy’s death benefit.
One: Contest-ability Period
Life insurance policies include what is called an Incontestability Clause. This clause states that the life insurance company has a specific period of time (typically two years) to dispute the validity of the insured’s statements made on an application. So, if you die within the contest-ability period, the life insurance company has the right to investigate the details of your medical history to ensure you did not misrepresent yourself on the application.
For example, stating that you did not smoke cigarettes when, in fact, you did up until the day you died. In a situation like this, insurance companies have the right to withhold some of the death benefit from your beneficiaries or even deny the claim altogether.
Two: Suicide Clause
Another situation in which the life insurance company has the right to deny a death benefit is if the insured commits suicide within a certain period of time, again typically within two years. In this situation, however, the life insurance company will return all premiums that have been paid to date to the family.
Three: Homicide
The last situation in which an insurance company may not pay a death benefit is if the insured was murdered. If the insured was murdered, the life insurance company will typically call the police department involved and inquire as to whether or not the beneficiary of the policy is a suspect.
If the beneficiary is a suspect, the life insurance company will hold payment until the charges are dropped or the beneficiary is deemed not guilty of the crime.
Q: Will my term life insurance death benefit payout be taxed?
Term life insurance is the least complicated type of life insurance and in most cases your beneficiaries will not have to pay federal or state income taxes on the death benefit they receive. Since the policy premiums are paid using after-tax dollars, Uncle Sam already got his cut.
There are two main exceptions to this rule:
Estate taxes
Gift taxes
If you own your own policy, the death benefit proceeds become part of your taxable estate. If your estate exceeds the exclusion amount, which is over $5 million dollars, it can get taxed. For most people, this isn’t an issue.
The second exception is what is known as “The Goodman Triangle.” If the policy owner, insured, and beneficiary are three different people, the death benefit could count as a taxable gift to the beneficiary.
Q: How can I be sure my policy’s life insurance carrier will still be around when I die?
All major life insurance companies have financial strength ratings. There are multiple agencies each with their own rating scales and standards that assess the long-term financial stability of these insurance companies. These ratings typically follow the school-like A through F scale. The higher the rating, the more stable the company is and the more likely the company will be able to pay future claims.
When you are looking to purchase life insurance, whatever means you are using to buy it through should tell you the insurance company’s rating. Any company with an A rating or better is considered financially stable and you should not worry about any future claims not being paid out.
Natasha Cornelius is the content manager and editor for Quotacy. She has worked in the life insurance industry since 2010 and has been making life insurance easier to understand with her writing since 2014. A long-time Mint user, Natasha lives in Bozeman, Montana where she loves to garden, DIY anything she can, and explore beautiful Big Sky country. Connect with her on LinkedIn.
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It’s official. The holidays are here! In recent years the festive season has caught me a little off guard. I never felt ready, and like I couldn’t fully relish it all. Last year I didn’t even have a tree (this was my last second solution). But no more. This go round, I’m planning to learn from all my past mistakes and make the most of the most wonderful time of the year. Decking the halls, cookie making, tree decorating – you name it, I’m doing it. I’ve learned if you have a game plan, the holidays don’t have to get the best of you.
Case in point: the big holiday feasts. The menus, the table setting – it can all get overwhelming. I teamed up with Pints and Plates to share my top tips for setting the perfect holiday table without breaking a sweat. As you can see below, I’m going green with my holiday table this year. Visit here for all the details.
original photography for apartment 34 by delbarr moradi
This content was created in partnership with Pints and Plates.
Today we’ll take a hard look at “Aurora Financial,” a direct mortgage lender that says it’s built for speed.
In fact, they claim it’s possible to close a home purchase loan or refinance in as little as 14 business days, which is well below the average time it takes to get a mortgage.
Typically, you’re looking at 30-45 days during normal market conditions, and even longer if the industry is slammed.
So if you’re in need of a quick close and a low mortgage rate, Aurora Financial could be a winner. Let’s learn more.
Aurora Financial Fast Facts
Direct-to-consumer mortgage lender
Offers home purchase loans and mortgage refinances
Founded in 2003, headquartered in McClean, VA
Currently licensed to do business in 20 states nationwide
Funded about half a billion in home loans last year
Specialize in very fast loan closings
Aurora Financial is a Virginia-based direct-to-consumer mortgage lender that offers home purchase loans and mortgage refinances.
They seem to focus on the latter, with such transactions accounting for around 90% of their total loan volume in 2020.
Speaking of, they closed nearly half a billion in home loans last year, with about half of overall volume originated in their home state of Virginia.
At the moment, they do business in the states of California, Colorado, Connecticut, Delaware, D.C., Florida, Georgia, Illinois, Massachusetts, Maryland, New Hampshire, New Jersey, North Carolina, Oregon, Pennsylvania, South Carolina, Texas, Virginia, Washington, and West Virginia.
While they work all over the country, you’ll likely be applying remotely as they don’t appear to have brick-and-mortar branches.
How to Apply with Aurora Financial
To get started, simply visit their website and click on “Apply Online.” You can also call them up directly before you do to get pricing.
From there, you’ll be prompted to create an account, then you can fill out the actual loan application.
They say it’s a digital process and mostly paperless, with e-signatures for initial disclosures and a secure portal for quick uploads of supporting documents.
Those looking to buy a home can generate a pre-approval in “minutes,” and their big claim is using the latest tech to offer the fastest closings in the industry.
Part of that might be their streamlined business model of focusing mainly on conventional refinance applications for W-2 borrowers.
It also helps that they offer both in-house paperless processing and underwriting.
Apparently, the average refinance closes in just 16 business days, though their rush closings can be even faster.
All in all, it should be easy to complete your application and get to the finish line, assuming you have a simple loan scenario.
Loan Programs Offered by Aurora Financial
Home purchase loans
Refinance loans
Conforming loans backed by Fannie Mae and Freddie Mac
High-limit and jumbo loans
FHA loans
VA loans
I wouldn’t say Aurora Financial has a vast product menu, but they do offer the most common programs that the majority of borrowers are looking for.
This includes home purchase financing, rate and term refinances, and cash out refis.
You can get a conforming loan, high-limit, jumbo, or government-backed option like an FHA or VA loan.
The only major loan type they don’t appear to offer is USDA loans.
It’s also unclear if you can get an adjustable-rate mortgage, not that they’re very popular at the moment.
Aurora Financial Mortgage Rates
One area where the company seems to shine is mortgage rates. Instead of simply telling you they offer super competitive rates, they post them right on their homepage.
You won’t have to dig around or provide your contact info first. Simply head to their website for daily rates.
They also advertise on third-party websites like Zillow, where lenders are often very competitive in the pricing department.
After all, you don’t want to be the most expensive option when listed among dozens of other lenders.
From what I saw, they were offering one of the lowest rates for a 30-year fixed on Zillow for a sample loan scenario I generated.
It was also listed with $1 in lender fees, which is essentially a no cost refinance. That means a low rate and equally low APR.
On top of their seemingly low rates, they also offer a free rate float down if you lock and rates get even better.
It only applies to conforming loans and the rate must drop by 50 basis points for a fixed-rate loan and 62.5 bps for an adjustable-rate mortgage.
As always, put in the time to gather additional quotes with competing lenders to ensure you do your due diligence.
Aurora Financial No Closing Cost Loyalty Program
Another perk to using Aurora Financial is their so-called “No Closing Cost Loyalty Program.”
Simply put, if you get a loan from them and mortgage rates drop enough to make a refinance worth it, they’ll offer one without closing costs.
Not only will they waive their own lender fees, but also third-party costs like the home appraisal, title and escrow.
Borrowers will only be responsible for funding their impound account, if applicable.
To qualify, the loan amount must $200,000 or greater, a conforming loan on a primary or second home, and be at least six months past the previous loan funding date.
This gives you the opportunity to refinance at no cost for the lifetime of your loan with them.
Aurora Financial On-Time Closing Guarantee
Pricing aside, Aurora Financial also offers an on-time closing guarantee to ensure you get your home purchase financing without delay.
This is especially important in a hot real estate market, which we’re currently experiencing.
In short, they’ll close your purchase transaction on time or credit you with $1,000 at the time of closing.
This offer only applies to conforming loans and FHA loans, with jumbo loans ineligible, along with self-employed borrowers.
Ultimately, you need a pretty cut and dry loan scenario to qualify, but the guarantee should apply to most borrowers who happen to file W-2 and have a conforming loan amount.
Aurora Financial Reviews
On Zillow, Aurora Financial enjoys a 4.69-star rating out of 5 from more than 700 customer reviews.
At Bankrate, they have a 4.8-star rating from nearly 300 reviews, with 97% of customers indicating they’d recommend this lender.
They also have a 4.8-star rating on Angi from about 80 verified reviews, with price, punctuality, and responsiveness all receiving high marks.
On Google, a very similar 4.7-star rating from about 125 reviews, and on Yelp a 4.5 rating from about 25 reviews.
The company is also A+ BBB rated, and has been an accredited company with the Better Business Bureau since 2006.
They have a 4.93/5 customer rating on the BBB website and no customer complaints on file.
In summary, Aurora Financial seems like a good pick for a homeowner with a vanilla mortgage (Fannie/Freddie W-2 borrower) that’s looking to refinance.
The combination of low rates and fees, coupled with fast processing and their no-cost loyalty program, separates them from other shops.
Aurora Financial Pros and Cons
The Good
Can apply online via their secure digital mortgage application
Offer a mostly paperless loan process and in-house processing
They post their daily mortgage rates online
Appear to offer low rates and limited/no lender fees
Free rate float down
Their loan officers don’t work on commission
$1,000 on-time closing guarantee
Can close loans super fast (in as little as 14 days)
Excellent customer reviews across all ratings sites
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If you want to buy term life insurance, you’ve got a few options. You could work with an agent in your area if you’d prefer a face-to-face interaction, or you can buy online if you prefer the convenience of an electronic process.
However, not all online life insurance agencies are created equal. If you’re shopping around for term life quotes, it’s important to understand what to look for to help you get the best value.
What to expect when you’re applying for coverage
Anyone who has gone through a life insurance application in the past could tell you that life insurance carriers are some of the most thorough and careful companies in the world. This is because life insurance policies are priced based on the applicant’s risk of death.
However, the process of applying has come a long way, and it’s actually gotten pretty simple – especially online. Nowadays, most of the heavy lifting is done behind the scenes.
If you add a good agency into the mix, applying for life insurance is practically painless, since it will handle almost everything that doesn’t require your signature or further clarification from you.
Generally, buying a life insurance policy will take between two and six weeks, and the process tends to follow a consistent format.
Step 1: Submit an application
When you find a price you like, you can choose a carrier to submit a formal application with. Choosing a carrier to apply with isn’t a binding decision, and you’re always free to back out of an application to go a different direction.
Step 2: Take a medical exam
Life insurance carriers will require you to take a medical exam see how healthy you are. This is free for you and the examiner will even come to your home or office to make things convenient.
Step 3: Wait for your medical records
The carrier will order a copy of your medical records from your doctor, which could take anywhere between hours and weeks, depending on how well-organized your doctor keeps their records.
Step 4: Tie up loose ends
After the exam is completed, medical records have been received, and any other questions the carrier needs answered are out of the way, your application will be reviewed. Once you get the final OK from the carrier, your policy will be approved, and you’ll be on your way to getting coverage!
Let’s look at each of these steps in a little more detail.
Submitting your application
Starting your life insurance journey will often begin with getting a quote, which will show you prospective prices based on a few key factors, like the amount of coverage you’d need, how long you want it to last, and a few health and lifestyle questions.
Interested? Check out a few prices. Quotacy has an online quoting tool you can use – no commitment required.
Taking the medical exam
After applying for coverage, the life insurance carrier will require you to take a quick medical exam in order to be approved for coverage. Because life insurance pricing is based on your mortality risk, the carrier needs to verify your current medical situation.
The medical exam is a free mini-physical performed by an examiner and scheduled by the carrier. It can happen anywhere, even in your home or office, whenever you can spare half an hour.
Typical exams consist of:
A few questions about your medical history
A list of any medications you’re taking
Height and weight measurements
Pulse and blood pressure check
A urine sample
A blood sample
Preparing for your exam
The measurements that are taken during the exam are extremely important, and being prepared is your best bet to ensure a good outcome. In the time before your exam, you should remember to:
Fast for 6-8 hours – this will reduce your blood sugar. Scheduling your exam in the morning can make this easy if you skip breakfast.
Don’t smoke for at least one hour prior – smoking temporarily raises your blood pressure.
Don’t drink coffee for at least one hour prior – caffeine can increase your blood pressure and raise your pulse.
Avoid alcohol for 8 hours prior – it’s high in calories, and can raise your blood sugar and blood pressure.
Avoid overly salty and sugary foods for one day beforehand – both salt and sugar raise your blood pressure.
Drink lots of water – this hydrates you to help make the blood draw a lot easier and less painful.
No strenuous exercise the night before or the day of your exam – as your body repairs from exercise, your blood pressure and pulse rise slightly.
No sexual activity for one day beforehand (for men, at least) – gettin’ freaky lowers the PSA levels in your blood, which is one of the ways that carriers evaluate your prostate health.
Get a good night’s sleep – being well-rested lowers blood pressure. As an added bonus, if you’re afraid of needles, having a full eight hours can help your body negate the physical effects of your phobia.
Waiting for your medical records
Before your life insurance application is approved, insurance carriers order copies of your medical and driving records to help them get a better idea of any insurability risks you might have. Just like with the medical exam, the carrier orders these records behind the scenes on their own dime.
Because the laws protecting a patient’s medical records are extremely strict, you will need to sign a form authorizing your doctor to release your records to the insurance company and agency you’re working with.
At this point, all you’ll need to do is sit and wait for the records to arrive. Depending on how efficient your doctor is at sending them along, waiting for this step to be completed can either happen overnight or take a few weeks.
Answeringadditional questions
In addition to everything else that happens during your application, the carrier will sometimes have follow-up questions for you which will help them get to know you a bit better. These questions can be about anything from medical conditions to your hobbies to your travel plans.
A lot of the time, the questions a carrier asks can be pretty scary to someone trying to protect their family. Many clients see a questionnaire about their sleep apnea, or their diabetes, or their battle with cancer, and assume that the carrier will decline them on the spot.
It’s important to keep in mind that even though there are many factors that can affect your rate during this time, you’ll likely be able to get coverage. The whole reason that insurance carriers have flexible prices is because they want to offer coverage to as many people as possible, regardless of the circumstances.
Here’s a quick list of example questions you could see during an application, depending on your circumstances.
If you have a medical condition:
How severe is it?
How is it being treated?
Is the treatment effective?
If you have a risky hobby, like hang gliding or rock climbing:
What level of experience or certification do you have?
How often do you participate in your hobby?
How much time have you dedicated to your hobby?
This isn’t a comprehensive list, by any means, but hopefully it will give you an idea of what the carrier is looking for.
Waiting for approval
Once the carrier has everything they need, your application will enter the approval process. This is when the carrier’s underwriters will review everything they’ve collected as a whole, and evaluate where the final price of your insurance policy should be set.
If you’re approved for coverage, you’ll be sent a packet containing your policy itself as well as a few documents that you’ll need to sign and return so the carrier can finalize your coverage. This step is also when the carrier will collect your payment information so that they can set up your billing on their end.
Depending on the carrier you apply with, you will either be sent digital forms or a physical policy booklet. Regardless of the format, you should store your policy securely and have a plan in place to help your family find it in the event of your death, so they can claim your death benefit.
After a bit more processing by the carrier to wrap up any loose ends, you’ll receive a notification that your policy is inforce. That means that everything’s in place on the carrier’s end of things, and your coverage has been activated! All that’s left for you to do is make your premium payments according to your payment plan, and your family will be covered.
Eric Lindholm is a writer for Quotacy, and he’spersonally guided hundreds of people through their own life insurance journeys since joining in 2016. Eric lives in the Twin Cities, Minnesota, where he’s busy paying off his student loans and making the most of his time as a 20-something. You can connect with him and see what he’s up to at EricLindholm.biz.
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Part 1 of 3: Life Insurance Buyers’ Common Q&As
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We are going to under the cover and discover $14 an hour is how much per year.
For most Americans, this is hovering near minimum wage.
Let’s get this straight… This is not a livable wage.
If you are in high school or college and have support from your parents, then this is great spending money for you.
However, if you are making it on your own, $14 per hour will not make ends meet each month.
For most people, being at minimum wage is common and the goal is to make your way up the payscale and quickly!
In this post, we’re going to detail exactly what $14 an hour is how much a year. Also, we will break it down to know how much is made per month, bi-weekly, per week, and daily.
That will help you immensely with how you spend your money. Because too many times the hard-earned cash is brought home, but there is no actual plan for how to spend that money.
When living close to minimum wage, you must know how to manage money wisely.
More than likely, you are living paycheck to paycheck and struggling to survive until the next paycheck. Take a deep breath and make this minimum wage just a season.
The ultimate goal is to make the most of your hourly wage with inspirations to make more money.
If that is something you want to do, then keep reading. You are in the right place.
$14 an Hour is How Much a Year?
When we ran all of our numbers to figure out how much is $14 per hour is an annual salary, we used the average working day of 40 hours a week.
40 hours x 52 weeks x $14 = $29,120
$29120 is the gross annual salary with a $14 per hour wage.
Breakdown of 14 Dollars an hour is how much a year
Typically, the average workweek is 40 hours and you can work 52 weeks a year. Take 40 hours times 52 weeks and that equals 2,080 working hours. Then, multiply the hourly salary of $14 times 2,080 working hours, and the result is $29,120.
That number is the gross income before taxes, insurance, 401K, or anything else is taken out. Net income is how much you deposit into your bank account.
Work Part Time?
But you may think, oh wait, I’m only working part time. So if you’re working part time, the assumption is working 20 hours a week at $14 an hour.
Only 20 hours per week. Then, take 20 hours times 52 weeks and that equals 1,040 working hours. Then, multiply the hourly salary of $14 times 1,040 working hours, and the result is $14,560.
How Much is $14 Per Month?
On average, the monthly amount would average $2,426.
Annual Amount of $20120 ÷ 12 months = $2426 per month
Since some months have more days and fewer days like February, you can expect months with more days to have a bigger paycheck. Also, this can be heavily influenced by how often you are paid and on which days you get paid.
Work Part Time?
Only 20 hours per week. Then, the monthly amount would average $1213.
How Much is $14 per Hour Per Week
This is a great number to know! How much do I make each week? When I roll out of bed and do my job, what can I expect to make at the end of the week?
Once again, the assumption is 40 hours worked.
40 hours x $14 = $560 per week.
Work Part Time?
Only 20 hours per week. Then, the weekly amount would be $280.
How Much is $14 per Hour Bi-Weekly
For this calculation, take the average weekly pay of $560 and double it.
$560 per week x 2 = $1120
Also, the other way to calculate this is:
40 hours x 2 weeks x $14 an hour = $1120
Work Part Time?
Only 20 hours per week. Then, the bi-weekly amount would be $560.
How Much is $14 Per Hour Per Day
This depends on how many hours you work in a day. For this example, we are going to use an eight-hour workday.
8 hours x $14 per hour = $112 per day.
If you work 10 hours a day for four days, then you would make $140 per day. (10 hours x $14 per hour)
Work Part Time?
Only 4 hours per day. Then, the daily amount would be $56.
$14 Per Hour is…
$14 per Hour – Full Time
Total Income
Yearly Salary (52 weeks)
$29,120
Yearly Wage (50 weeks)
$28,000
Monthly Wage (173 hours)
$2.426
Weekly Wage (40 Hours)
$560
Bi-Weekly Wage (80 Hours)
$1120
Daily Wage (8 Hours)
$112
Net Estimated Monthly Income
$1,853
**These are assumptions based on simple scenarios.
Paid Time Off Earning 14 Dollars an Hour
Does your employer offer paid time off?
As an hourly, close to minimum wage employee, more than likely you will not get paid time off.
So, here are the scenarios for both cases.
For general purposes, we are going to assume you work 40 hours per week over the course of the year.
Case # 1 – With Paid Time Off
Most hourly employees, get two weeks of paid time off which is equivalent to 2 weeks of paid time off.
In this case, you would make $29120 per year.
This is the same as the example above for an annual salary making $14 per hour.
Case #2 – No Paid Time Off
Unfortunately, not all employers offer paid time off to their hourly employees. While that is unfortunate, it is best to plan for less income.
Life happens. There will be times you need to take time off for numerous reasons – sick time, handling an emergency, or even vacation.
So, let’s assume you take 2 weeks off without paid time off.
That means you would only work 50 weeks of the year instead of all 52 weeks. Take 40 hours times 50 weeks and that equals 2,000 working hours. Then, multiply the hourly salary of $14 times 2,000 working hours, and the result is $28,000.
40 hours x 50 weeks x $14 = $28000
You would average $112 per working day and nothing when you don’t work.
$14 an Hour is How Much a year After Taxes
Let’s be honest… Taxes can take up a big chunk of your paycheck. Thus, you need to know how taxes can affect your hourly wage.
This is why you always wondering why your take-home pay is so much less.
Also, every single person’s tax situation is different.
On the basic level, let’s assume a 12% federal tax rate and a 4% state rate. Plus a percentage is taken out for Social Security and Medicare (FICA) of 7.65%.
Gross Annual Salary: $29,120
Federal Taxes of 12%: $3,494
State Taxes of 4%: $1,165
Social Security and Medicare of 7.65%: $2,228
$14 an Hour per Year after Taxes: $22,233
This would be your net annual salary after taxes.
To turn that back into an hourly wage, the assumption is working 2,080 hours.
$22233 ÷ 2080 hours = $10.69 per hour
After estimated taxes and FICA, you are netting $10.69 an hour. That is $3.31 an hour less than what you planned.
This is a very highlighted example and can vary greatly depending on your personal situation. Therefore, here is a great tool to help you figure out how much your net paycheck would be.
$14 an Hour Budget – Example
You are probably wondering can I live on my own making 14 dollars an hour? How much rent can you afford at 14 an hour?
Using our Cents Plan Formula, this is the best case scenario on how to budget your $14 per hour paycheck.
When using these percentages, it is best to use net income because taxes must be paid.
In this example, above we calculated that $14 an hour was $10.69 after taxes. That would average $1853 per month.
According to the Cents Plan Formula, here is the high level view of a $14 per hour budget:
Basic Expenses of 50% = $926
Save Money of 20% = $371
Give Money of 10% = $185
Fun Spending of 20% = $371
Debt of 0% = $0
Obviously, that is not doable when living so close to minimum wage. So, you have to be strategic on ways to decrease your basic expenses and debt. Then, it will allow you more money to save and fun spending.
To further break down an example budget of $14 per hour, then using the ideal household percentages is extremely helpful.
recommended budget percentages based on $14 per hour wage:
Category
Ideal Percentages
Sample Monthly Budget
Giving
10%
$73
Savings
15-25%
$194
Housing
20-30%
$728
Utilities
4-7%
$121
Groceries
5-12%
$231
Clothing
1-4%
$24
Transportation
4-10%
$109
Medical
5-12%
$243
Life Insurance
1%
$21
Education
1-4%
$12
Personal
2-7%
$36
Recreation / Entertainment
3-8%
$61
Debts
0% – Goal
$0
Government Tax (including Income Tatumx, Social Security & Medicare)
15-25%
$574
Total Gross Income
$2427
**In this budget, prioritization was given to basic expenses. Thus, some categories like giving and saving were less.
$14 An Hour Salary Calculator
Now, you get to figure out how much you make based on your hours worked or if you make a wage between $14.01-14.99.
This is super helpful if you make $14.25, $14.50, or $14.75.
Living on $14 Per Hour
Living close to minimum wage can be a very difficult situation.
Is it doable? Probably not for long.
You just have to be wiser (or frugal) with your money and how you spend the hard-earned cash you have been blessed with.
A lot of times when people are making under near the minimum wage mark, they feel like they are in this constant cycle that they can never keep up with (which completely makes sense it is hard!).
When your thoughts are constantly focused on how you are struggling to keep up with bills and expenses, that is all you focus on.
You need to do is change your money mindset.
This is what you say to yourself… Okay, I am making near minimum wage for now. I have aspirations and goals to increase how much I make. For now, I am going to make sure that I am able to live on my 14 dollars per hour. I’m going to try and avoid debt and payday loans at all costs.
Other Tips to Help You:
Check your minimum wage for your state and city. You might find a higher minimum wage in a nearby city.
Look to living in a lower cost of living area to stretch your money.
Find ways to minizine your basic expenses.
Thrive with a frugal green minimalist lifestyle.
Decide if a roommate or moving back with your parents would help.
Bike or walk to work.
In the next section, we will dig into ways to increase your income, but for now, you must focus on living on $14 an hour.
5 Ways to Increase Your Hourly Wage
This right here is the most important section of this post.
You need to figure out ways to increase your hourly income because I’m going to tell you…you deserve more. You do a good job and your value is higher than what your employers pay you.
Even an increase of 50 cents to $14.50 will add up over the year. Even better $15 an hour!
1. Ask for a Raise
The first thing to do is ask for a raise. Walk right in and ask for a raise because you never know what the answer will be until you ask.
If you want the best tips on how specifically to ask for a raise and what the average wage is for somebody doing your job, then check out this book. In this book, the author gives you the exact way to increase your income. The purchase is worth it or go down to the library and check that book out.
2. Look for A New Job
Another way to increase your hourly wage is to look for a new job. Maybe a completely new industry.
It might be a total change for you, but many times, if you want to change your financial situation, then that starts with a career change. Maybe you’re stressed out at work. Making $14 an hour is too much for you and you’re not able to enjoy life, maybe changing jobs and finding another job may increase your pay, but it will also increase your quality of life.
3. Find a New Career
Because of student loans, too many employees feel like they are stuck in the career field they chose. They feel sucked into the job that they don’t like or have the potential they thought it would.
For many years, I was in the same situation until I decided to do a complete career change. I am glad I did. I have the flexibility that I needed in my life to do what I wanted when I needed to do it. Plus I am able to enjoy my entrepreneurial spirit.
4. Find Alternative Ways to Make Money
In today’s society, you need to find ways to make more money. Period.
There is no way to get around it. You need to find additional income outside a traditional nine to five position or typical 40 hour a week job. You will reach a point where you are maxed on what you can make in your current position or title. There may be some advancement to move forward, but in many cases, there just is not much room for growth.
So, you need to find a side hustle – another way to make money.
Do something that you enjoy, turn your hobby into a way to make money, turn something that you naturally do, and help others into a service business. In today’s society, the sky is the limit on how you can earn a freelancing income.
5. Earn Passive Income
The last way to increase your hourly wage is to start earning passive income.
This can be from a variety of ways including the stock market, real estate, online courses, book sales, etc. This is where the differentiation between struggling financially and being financially sound happens.
By earning money passively, you are able to do the things that you enjoy doing and not be loaded down, with having a job that you need to work, and a place that you have to go to. And you still make money doing nothing.
Here is an example:
You can start a brokerage account and start trading stocks for $50. You need to learn and take the one and only investing class I recommend. Learn how the market works, watch videos, and practice in a simulator before you start using your own money.
One gentleman started with $5,000 in his trading account and now has well over $36,000 in a year. Just from practice and being consistent, he has learned that passive income is the way for him to increase his income and also not be a slave to his job.
Tips to Live on $14 an Hour
In this last section, grasp these tips on how to live on $14 an hour. On our site, you can find lots of money saving tips to help stretch your income further.
Here are the most important tips to live on $14 an hour. Highlight these!
1. Spend Less Than you Make
First, you must learn to spend less than you make.
If not you will be caught in the debt cycle and that is not where you want to be. You will be consistently living paycheck to paycheck.
In order to break that dreadful cycle, it means your expenses must be less than your income.
And when I say income, it’s not the $14 an hour. As we talked about earlier in the post, there are taxes. The amount of taxes taken out of your paycheck is called your net income which is your home $14 an hour minus all the taxes, FICA, social security, and medicare are taken out. That is your net income.
So, your net income has to be less than your net income.
2. Living Below Your Means
You need to be happy. And living on less can actually make you happier. Studies prove that less is better.
Finding contentment in life is one thing that is a struggle for most.
We are driven to want the new shiny toy, the thing next door, the stuff your friend or family member got. Our society has trained you that you need these things as well.
Have you ever taken a step back and looked at what you really need?
Once you are able to find contentment with life, then you are going to be set for the long term with your finances.
Here is our story on owning less stuff. We have been happier since.
3. Make Saving Money Fun
You need to make saving money fun. Period.
It could be participating in a no spend challenge for the month.
Check out the 200 envelope challenge (which is doable on your income)
It could be challenging friends not to go to Target for a week.
Maybe changing your habits and not picking up takeout and planning meals.
Whatever it is challenge yourself.
Find new ways of saving money and have fun with it.
Even better, get your family and kids involved in the challenge to save money. Tell them the reason why you are saving money and this is what you are doing.
Here are 101 things to do with no money. Free activities without costing you a dime. That is an amazing resource for you and you will never be bored.
And you will learn a lot of things in life you can do for free. Personally, some of the best ones are getting outside and enjoying some fresh air.
4. Make More Money
If you want if you do not settle for less, then find ways to make more money. If you want more out of life, then increase your income.
You need to be an advocate for yourself.
Find ways to make more money.
It could be a side hustle, a second job, asking for a raise, going to school to change careers, or picking up extra hours.
Whatever path you take, that’s fine. Just find ways to make more money. Period.
5. No State Taxes
Paying taxes is one option to increase what you take home in each paycheck.
These are the states that don’t pay state income taxes on wages:
Alaska
Florida
Nevada
New Hampshire
South Dakota
Tennessee
Texas
Washington
Wyoming
It is very interesting if you take into account the amount of state taxes paid compared to a state with income taxes.
Also, if you live in one of the higher taxed states, then you may want to reconsider moving to a lower cost of living area. The higher taxes income tax states include California, Hawaii, New Jersey, Oregon, Minnesota, the District of Columbia, New York, Vermont, Iowa, and Wisconsin. These states tax income somewhere between 7.65% – 13.3%.
6. Stick to a Budget
You need to learn how to start a budget. We have tons budgeting resources for you.
While creating a budget is great, you need to learn how to use one.
You do not have to budget down to every last penny.
You need to make sure your expenses are less than your income and that you are creating sinking funds for those irregular expenses.
Budget Help:
7. Pay Off Debt Quickly
The amount that you pay interest on debt is absolutely absurd.
Unfortunately, that is how many of these companies make their money from the interest you pay on debt.
If you are paying 5% to even 20-21% or higher, you need to find ways to lower that debt quickly.
Here’s a debt calculator to help you. Figure out your debt free date.
Make that paying off debt fast is your target and main focus. I can tell you from personal experience, that it was not until week paid off our debt that we finally rounded the corner financially. Once our debt was paid off, we could finally be able to save money. Set money aside in separate bank accounts and pay for cash for things.
It took us working hard to pay off debt. We needed persistence and patience while we had setbacks in our debt free journey.
Jobs that Pay $14 an Hour
You can always find jobs that pay $14 per hour. Polish up that smile, fill out the application, and be prepared with your interview skills.
Job Search Hint: Always send a written follow-up thank you note for your interview. That will help you get noticed and remembered.
First, look at the cities that require a minimum wage in their cities. That is the best place to start to find jobs that are going to pay higher than the federal minimum wage rate. Many of the cities are moving towards this model so, target and look for jobs in those areas.
Possible Ideas:
Cashiers
Back of the house restaurant staff
Landscape Laborer
Retail jobs
Paraeducators at schools
Janitors
Farm help
Warehouse workers
Fast Food Restaurants workers
$14 Per Hour Annual Salary
In this post, we detailed 14 an hour is how much a year. Plus all of the variables can impact your net income. This is something that you can live off.
How much is 14 dollars an hour annually…
$29120
This is under $30000 per year and you need to make at least $43k a year.
In this post, we highlighted ways to increase your income as well as tips for living off your wage.
Use the sample budget as a starting point with your expenses.
You will have to be savvy and wise with your hard-earned income. But, with a plan, anything is possible!
Learn exactly how much do I make per year…
Know someone else that needs this, too? Then, please share!!
Save more, spend smarter, and make your money go further
It’s no small task to hire someone to work on your house.
Even if you have a starting point — say, a neighbor’s recommendation for a great electrician — you’ll still have to put in the time to fully vet the contractor before handing over the master key to your front door.
Hiring a pro is a big decision, so make sure your decision-making process is spot on the first time.
Here are the four stages of hiring the perfect pro to finish your home’s to-do list:
DIY or not.
Every homeowner has a decision to make: Do you try to go it alone, or do you call in a professional to do it right the first time?
So when something breaks in your house, evaluate the damage on a scale of DIY to Don’t.
Sure, a little Drano might take care of the clog in your shower, but do you feel the same level of proficiency for installing your recently purchased dishwasher? Or for fixing an outlet that produces an inconsistent current?
And there are other considerations as well: You might feel comfortable cleaning your own gutters, but what if you didn’t have the right size ladder?
Thinking through these details ensure that you’ll be confident in your decision to spend the money to bring a pro into your home.
Reputation: It matters.
No matter the scale of the work you need done in your house — be it a clogged sink or a full kitchen remodel — the contractor you choose will be in your most sacred of spaces: your home.
You need to hire someone you can trust. So before you put money down on any home-service pro, ask your neighbors if they’ve ever hired the pro you have in mind.
(It’s helpful to get your neighbors’ perspectives, as they might be able to recommend someone who’s done work on the other houses in the neighborhood.)
Double-check everything online; many pros with long service records will have the same on review sites, so you’ll be able to back up his or her work history with pictures and reviews from sites like Yelp.
Price shop.
Trying to get the best price on your home projects goes hand-in-hand with investigating the reputation of the pro you’re hiring to do the work.
Beware of any prices that sound too rock-bottom to be true. Pros who know their market and have the most experience in a certain specialty will charge you accordingly.
Aspiring contractors with little experience will seem like a comparative steal, but think about the long-term effects: You may end up investing more in the long term if you bring in someone at a lower price and an equally low level of experience.
On the flip side, though, a high price tag isn’t an acceptable substitute for knowing a pro’s experience, and you’re much more likely to feel price gouged if you don’t get a handful of quotes from nearby pros to get an idea of the high, low, and median for your project.
Negotiate and schedule.
Not the other way around.
Within these negotiations should be some guidelines set around the timing of your project — an easy thing to predict if you’ve got a small repair to make, but a much tougher thing to do if you’re staring down a remodel.
Cost and time are typically tied tightly to each other, and you’ll want to keep an eye on the time in order to lasso in the price tag for the project.
And the best way to do this? Get it in writing.
Have both your signature and the pro’s on a tidy document outlining the time frame of the work and the cost associated with the labor and materials.
Tip: A reputable pro won’t ask you for more than 15% of the cost up front, so be wary of any contractor who wants your payment before the work has begun.
The bottom line.
Sure, it’s a lot to consider, and the process of choosing one might take awhile, so it’s best to proactively work on projects before they become a hazard to your life.
But your home — arguably the largest investment you’ll ever make — is worth getting the right pro the first time.
This post was provided by RedBeacon, the best way to find trusted pros for your home. Find out how much home services cost using their free price estimator. Stop overpaying for home repairs today!
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Budgets are a vital part of balancing your spending and making progress towards your goals. We all know they are important — but that doesn’t mean making them is a breeze. Now that we’re nearing the close of 2020, it’s time to start your budget for next year.
If we’re being honest, your 2020 goals were likely derailed by the pandemic. You likely made some adjustments and might have taken on some extra debt in the process. But the fact is, you can’t create an effective budget without first identifying your roadblocks. Use these steps to create your 2021 budget.
1. Calculate your income
To start things off, you need to know your total income (gross income from all your sources). If you freelance or have a variable income, admittedly, this might not be easy. In this case, you can use an average. But, you might want to create a tighter budget to account for this gray area. If you have additional forms of income from a side hustle or source like child support, make sure you include it here. It’s worth emphasizing that your gross income will typically be a larger number, compared to your net income — which accounts for funds left after deductions or withholdings.
2. Look at your bills and balances
After calculating exactly how much money you make, you’ll need to lay out all of your bills and balances. We know this is probably the last thing you want to do, especially after 2020. Unfortunately, it’s probably the most important part of creating your budget. Collect your bank statements and bills to evaluate your balances and due dates. It doesn’t matter if you use the latest budgeting software, an excel sheet or a pad and paper, whatever it takes.
[ Read: The Best Savings Accounts in 2021 ]
When making a list of your monthly expenses, it might help to break them down by fixed or variable expenses.
Fixed: These expenses are the same amount each time, like your mortgage, rent or student loan payments.
Variable: This is where it gets tricky — variable expenses can change from month to month — entertainment, food and travel expenses.
3. Find opportunities to cut spending
Now that you’ve laid it all out and you know what percentage of your income is promised to bills, you’ll be able to find the spots you can pull back. You’ll need to be both realistic and a little harsh at this stage. Planning an inflated budget won’t help you manage your spending or achieve the goals you set for yourself.
[ From Trent: How to Create and Customize Your 2021 Financial Goals ]
For example, take-out is easy and sometimes a better option than going to the grocery store during the pandemic. But it’s not good for your wallet. The amount of money people spend on food has increased since 2019, so consider cheap-and-easy meals that save you time if you have a bloated budget.
Another pitfall many see in their spending is their subscriptions. Did you sign up for any free trials and forget to cancel last year? Evaluate your monthly subscriptions and see which ones you aren’t using. Charges like this can sneak by, sometimes without you even noticing –– but it adds up pretty quickly. After eliminating frivolous spending, you can redirect that money directly into your savings.
4. Don’t forget your emergency fund
So you have the bare bones of your budget laid out. You have found the areas you can cut back on and know how much extra money you’ll have each month. Now you need to decide what to do with it.
If 2020 has taught us anything, it is the necessity of building an emergency fund. This is not an area you want to overlook. If you’ve taken a detailed look at your expenses and what you spend, you’ll have an easier time finding the money to put in your emergency fund each month. You never know what could come up over the next year. It’s better to prepare now rather than scramble later. A little planning now will help you avoid predatory options like payday loans or cash advances.
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5. Plan for your taxes
Taxes will be a little more complicated this year, especially for the millions of Americans who received unemployment benefits. Unless you opted into having taxes being withheld from your payments, you’ll see a larger tax bill for 2020. Not all states will tax these benefits, though federal taxes will be due.
[ Read: Income Tax Guide for 2020 ]
You’ll also need to look at your 401(k) or IRA contributions for the year. Contributing to these accounts will lower your taxable income. Any charitable donations you have made will also need to be accounted for, as they often mean additional deductions on your taxes. A little math now and a quick could help you maximize your write-offs.
Too long, didn’t read?
As you think about budget adjustments to welcome 2021, remember that there’s no wrong way to maintain a budget as long as you’re tackling your spending and keeping track of where your dollars go. It sounds like a simple idea, but it might seem difficult to pull off when you start. Use this list to organize your priorities when working on your budget. Hint: To ease step number one, write down every single monthly expense you can find. Here’s a quick and easy budget model to get you started and a detailed list of budgeting strategies. From there, our list will be easier to follow. Good luck, and let us know if you have any other methods that work for you.
We welcome your feedback on this article. Contact us at [email protected] with comments or questions.