Graduating from college is a huge accomplishment, so of course you want to honor the young scholar in your life. Just think of all the places their lives will take them!
There’s just one problem: You know that stereotype about broke college students? That’s not going to change for a while after graduation. They’ve got to find a job (which is sometimes much easier said than done), locate a place to live, and get started on being a grown-up. That’s tough to do when you’re starting from scratch.
But that’s where you come in! If you’ve got a friend or family member who’s graduating, we’ve got some gift ideas to help them embark on post-college life:
1. For the job they’ll have
When people graduate, suddenly their lives become focused solely on finding a job. You can help with that by giving gifts they’ll be able to use as a young professional.
Clothing or accessories appropriate for interviews or workdays will be much appreciated – every interviewee wants to look polished and professional to help their chances of landing and keeping a job.
A resume service could be very useful – there’s an art to creating a resume that will catch the eye of potential employers. There are plenty of services all around that offer advice on making any resume effective.
Likewise, a session with an interview coach could help a recent grad land the perfect job. Anyone can use a few pointers on how to conduct themselves in an interview so they’ll make a great first impression.
Finally, a nice briefcase or laptop bag is the perfect accessory for an interview or day in the office.
Moving after graduation? Check out our infographic: Top 10 Cities for College Grads: Post-Graduation Moving Trends.
2. For the money they’ll make
Many people consider graduation a great time to start thinking about the future. In that vein, why not set up or contribute to a Roth IRA for your recent graduate? They’ll appreciate your thoughtfulness now, but they’ll be especially happy when it comes time to retire and they have a nice little nest egg, partially funded by you.
Many young people are overwhelmed at the choices in front of them when it comes to investing and saving money. Surely they’d appreciate some financial advice as a gift – you could sit down with a recent grad and give them some one-to-one advice, or if you’re no expert yourself, a nice book could do the trick.
Need some book recommendations? We’ve got them: The Top 5 Personal Finance Books.
3. For the home they’ll create
After college, it’s time to get some real kitchen accessories – no more drinking out of plastic Solo cups.
Any graduate will appreciate some grown-up glassware for nights in with friends and family.
You could also buy someone a starter set for the kitchen – a few place settings, pots, pans and utensils. It doesn’t have to be fancy stuff; durable everyday kitchenware is an uber-practical gift.
Anyone with their own place – male or female – needs a few tools as well. Consider giving a small toolbox with some basic necessities: Hammer, screwdriver, pliers, wrench. These starter tools will help your young friend hang pictures on the wall, do minor maintenance tasks, and learn to become more self-sufficient.
Looking for cooking tools? We have recommendations for The Best Kitchenware on a Budget.
4. For the places they’ll go
Many graduates dream of traveling the world, either for their jobs or in their vacation time. There are many fun, inexpensive accessories you can give as gifts to support that dream:
Passport holders make great presents, as well as travel logs for them to document their many upcoming adventures.
If your recent grad loves vintage accessories, an atlas might make them happy – there’s something romantic about plotting a trip on paper instead of online.
If they prefer the digital life, gift them with iTunes or Amazon gift cards so they can download music and audio books to keep them entertained on their travels.
If you know someone who’s traveling, you might share The Benefits of Renting Vs. Staying in a Hotel.
Congratulations to all the college graduates out there! What would you like to receive as gifts?
This guest post is from Naomi Mannino. Naomi is a freelance consumer personal finance and health journalist who reports on health, medical and personal finance news and how it will affect your life today. You can follow Naomi on Twitter @naomimannino.
Some reader stories contain general advice; others are examples of how a GRS reader achieved financial success or failure. These stories feature folks with all levels of financial maturity and income.
Can you really buy a house at auction on the courthouse steps for $100? Do you have to spend hundreds of thousands of dollars as the house-flipping guys do on TV?
My husband and I have just recently achieved our long-time goal of buying a foreclosed house, turning it into a rental property and creating a steady stream of income from the monthly rent we collect (at 17 percent profit on the initial cash investment every year). It’s neither quick nor easy, but it is a viable investment solution if you meet the five requirements below.
1. You Need Cash
I came into a small inheritance and thought hard about what to do with the money. I don’t know enough about the stock market, so I stayed away from that. Then there’s the low interest yet tried-and-true 5-year CD ladder I opened. But my husband and I have always wanted to buy a foreclosure on the courthouse steps and now we finally had the chance. Every county is a little different, but one thing is a constant in all foreclosure auctions: Cash is king, as certified funds are required usually within 24 hours of winning the bid and making any initial deposits required.
2. You Need Experience
We are not newcomers to buying houses at a low price, renovating them over a number of years and then selling at a higher price. My husband is a carpentry contractor, skilled in all the building trades, so we do all the work ourselves. That means we can look at a property and calculate in our heads time and expenses necessary to make the house desirable and rentable. We only want houses with good bones on a nice family street. They are not large and upscale and do not require granite counter tops and stainless-steel appliances (in fact, the best place to get the best appliances for less is to buy used through Craigslist.org).
We don’t need to pay for inspections, surveys or other contractors unless it is for HVAC (air conditioning/heating) or septic system repair or replacement. We have learned this through small mistakes and overspending on the past five houses. Now we have a formula for choosing tile, vanities, cabinets, roof shingles, paint colors, and carpet because we have done this all before and know what works. If you have to hire contractors, you will pay twice as much or more for the entire renovation. (Foreclosure homes are usually severely neglected, if not destroyed, and need a lot of renovation.)
In terms of the foreclosure auction itself, we had no experience, so we agreed we should attend many auctions and just watch how it works, learn what the rules are and who the major players are in our small county. Every county has seasoned investors who know exactly what they are doing, and it pays to watch and learn from them. I have learned to stay away from the big city auctions with deep-pocketed investor groups who buy up tons of houses, because you really can’t win a bid against them. In my small county, where you can pick up a 1,000-square-foot 2- or 3-bedroom house for $20,000 to $40,000 to flip or to hold and rent, there are just five regular investors plus us, all with different interests and focus areas.
3. You Need to Research, Research, Research
Our county publishes a twice-weekly list of the properties to be sold at the foreclosure auction held each Tuesday and Thursday at 11 a.m. A large portion of our time each week is spent physically viewing the properties and researching them online or in the courthouse books. We never skip these steps.
After you identify a few houses in your chosen location or size range, research each offered property’ssales and tax history, as well as its current assessed value on the County Property Appraiser’s website, which are all public record. Note these details for the properties in which you are interested.
Next, research each property owner (also listed on the County Appraiser’s property record page) online via the County Clerk of Courts Public Record Search because whatever that the owner owes regarding that property outside of the loans (liens, back taxes, etc.), you will owe when you purchase a foreclosure home.
Finally, physically go and see each home you might be interested in (we never buy a property sight-unseen.) We’ve made the decision to stick to houses in our city proper so we are intimately familiar with the neighborhoods, not traveling more than a seven-mile radius from our home. We create a map of five or so houses that suit our specific purposes, and then we use our smartphone navigation to get us from house to house. From the outside, you can see the state of the roof, house structure, land, doors and windows and can look inside through any clear windows. Many times houses are so distressed they are open, in which case we can identify pros and cons regarding the inside: kitchens, bathrooms, flooring, lighting, air handler, walls and ceilings (but you didn’t hear that from me!). Bring a flashlight.
4. You Need to Know the Opening Bid
People get the idea they can buy a house at auction for $100 because they have heard that someone “bid on behalf of the plaintiff (the bank) for $100.” But auction buyers cannot counter the bank bid at $150 dollars. Instead, you need to start the bidding at the acceptable opening bid amount for each property, which is the lowest amount the bank is willing to accept for a property at the auction that day. And you can get this number by simply asking the bank reps, who are all at the sale. Getting to know these guys and gals on a first-name basis makes things even easier. Once you hear this number you will need to evaluate on the spot whether purchasing the property is financially feasible given your cash budget, current market conditions, the research you did on the property and your personal criteria and plan for the investment.
Just because the property is offered for sale at public auction doesn’t always mean it’s a good deal. Often, the opening bid equals the judgment amount (the money the bank is trying to recover) or more and includes the original purchase price or mortgage plus a second mortgage, other home equity loans, interest and legal fees. The opening bid is ridiculously high compared with its current assessed value. These high-priced properties revert back to the bank because nobody bids on them. What you are looking for is an opening bid way below the current assessed value, and these are few and far between.
We can afford to bid a couple of thousand higher than a flipper — an investor who plans to renovate and sell quickly, who needs every bit of profit he can muster out of each house now. I was told that’s how we won our first bid later by the flipper bidding against us.
5. How to Bid
Make sure you arrive early enough on auction day to go to the correct county courthouse office to register as a bidder and receive your bidder’s number card. Leave time to approach each bank rep for the opening bid necessary for properties you might want.
When the auctioneer (the county courthouse employee whose job it is to administer the weekly foreclosure sale) arrives at the sale site, he or she will announce some specific rules about deposits for a winning bid. Then things move quickly. When the auctioneer announces a property (by case number, not by address) you want to bid on, hold up your bidder’s card and announce your opening bid. The auctioneer will repeat it and then open it to other bidders to counter. I learned from a very seasoned investor to only raise the bid by $50 each time. He says, “There’s no sense in bidding it up for myself or the other guy by going hundreds or thousands at a time. I work too hard for my money.” Always have a ceiling in mind, and stick to it. If it goes higher, drop out.
After lurking on the edge of the auctions for about two months, we were finally ready to jump in with both feet. We got a bidder’s card, talked to the bank reps and found out that one house we saw and researched had an opening bid within our budget and under the assessed value of the home — so we bid on it! Two other investors counter-bid a few times, but we won the bid and got our first house at the foreclosure auction.
But I must warn you: The fast pace of the auction and hopeful thoughts of steady, slow investment income can be addicting despite all the work involved! Any questions? Have you ever participated in a property auction?
Inside: Learn how much your 80k salary is hourly. Plus find tips to make more money and live the lifestyle you want.
Retirement can be a scary word to those who are not wealthy or afraid of having too much time on their hands.
People in the workforce often don’t know what they will do when their retirement comes around, but it doesn’t have to be that way after all.
For most retirees, there are many reasons they want to work after retirement. And that is 100% okay!
Low stress jobs after retirement make for great part-time careers while still providing enough flexibility to enjoy your personal life. Plus a little extra money is always helpful!
While there is no one “right” answer on which job for you, we compiled a list of 30 great options to consider. All of these jobs offer relatively low stress levels and plenty of opportunities for relaxation and enjoyment.
But before you jump on the first one that comes along, you want to consider which will work best and help ease your transition into the world of retirement.
When you retire, you want to find a job that is low stress and enjoyable. That’s why finding a good retirement job is so important!
The benefits of having a low stress job after retirement
After years of hard work, retirement is a time to relax and enjoy life.
However, for some retirees, working part-time or as a side job can provide additional earnings and a sense of purpose. The following jobs are perfect for seniors over 55, or those post-retirement. They have lower stress levels than the average job and offer many opportunities for growth.
Many retirees below starting a second career after retirement would be difficult and are looking for a job that has fewer strings attached. This may be due to the fact that many retirees feel they have reached the pinnacle of their careers and want more time freedom.
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Fortunately, there are many available jobs with increasing demand and most even have lower stress levels than average.
Retirement is a good time to consider additional earnings. This can provide a stream of money for people who want to enjoy life longer and need an additional income. In addition, working can help retirees stay mentally and physically healthy.
Jobs to Do after Retirement
The list is composed of jobs that are perfect for seniors over 55, or even post-retirement. They have lower stress levels than the average job and offer many opportunities for growth.
Some retirees prefer to work part time or as a side job; others want to find a full-time position that will keep them busy and engaged in their community. Whatever your preference, know that there are plenty of great options out there!
Retiring means starting a new life, so it is important to consider this change as the beginning of a new life and not the end of an old one.
So go ahead and take the plunge into retirement! It’s a new beginning full of endless possibilities.
There are plenty of good jobs for retirees!
What are fun jobs after retirement?
There are many fun retirement jobs that pay a small fortune! And what your personality prefers!
Some people choose to continue working in the same field, but in a more relaxed or part-time capacity. Other people choose to use their retirement to try something new and exciting, such as starting their own business, traveling, or taking up a new hobby.
What can I do after retirement to make money?
Now that you’re retired, you may be looking for ways to make some extra money. Luckily, there are plenty of options to make money in retirement available to you!
You could start a business, become a consultant, or tutor students. In addition, you could also look into working from home opportunities or start a blog.
Maybe you want one of the best part time jobs in retirement.
Whatever you choose, make sure you do your research and find something you enjoy so you don’t get bored!
Tips to Making Money in Retirement
The best fun jobs after retirement include working at a theme park, house sitting permanently on a beach or something crazy you never dreamed yourself to do!
One great way to make some money is by selling your skills and experience. For example, interior decorating is a low-stress field that often requires past experience. Alternatively, you could become a real estate agent. Both of these opportunities allow you to use the skills and knowledge you’ve acquired over the years.
Another great option for retirees is to take advantage of the growing gig economy. There are a host of jobs available through online platforms like Uber or Lyft that don’t require a lot of physical activity or travel time. Plus, they typically offer higher pay rates than traditional employment opportunities.
If you’re looking for something a little more relaxing, consider joining one of the many survey sites out there. These sites reward you with a small amount of money for each survey you complete. It may not be much, but it can add up over time!
Finally, if you’re looking for an easy way to make some money, consider something easy like greeting people. This is a great option because it’s so easy and doesn’t require any special skills or knowledge.
Which job is stress free and high paying?
There is no such job that is stress free and high paying. All jobs have their own unique stressors and rewards. It is important to find a job that is rewarding to you and that you find manageable levels of stress.
There are many jobs that are considered “stress free” after retirement.
For example, many seniors are now looking into jobs such as being a consultant or working in customer service. These positions offer a more relaxed work schedule and usually don’t require extensive training.
In addition, the amount of money one earns from a job is directly related to how much work one put into it. If you’re willing to put in the extra effort, you can make significantly more money than those who don’t.
Really Focused on less stress?
Many seniors are also looking for jobs that don’t involve stress or concern. Proofreading is one such position that meets these qualifications. The job requires native-level English proficiency and an excellent understanding of grammar to succeed. In order to be successful in this field, you have to proofread documents that contain no grammatical errors, punctuation mistakes, or syntactic flubs.
You need to find a job that feeds your soul and doesn’t seem like work.
Plus it is fun to tell others what do you do for a living.
Best low stress jobs after retirement
Some people want to use their retirement as a vehicle to start their side hustle and be more relaxed than they were during work hours. This is a great way to spend your retirement! Most cool retirement jobs require little-to-no experience, but some do.
At the end of the day, you must decide if you want to work for yourself and start your own company with a higher earning potential. Or work for someone else with less strings attached and lower pay.
In many cases, you might be stuck working because you didn’t save for retirement, so here are a few jobs that are perfect for seniors over 55 years old, or even after retirement:
1. Freelance writing
Freelance writing can be a good source of income when one has the skills and experience to do so. The best part? You get to set your own hours and take on as much or as little work as you want!
This may not sound like a low-stress job at first, but it’s actually an excellent low-stress job! Being your own boss offers incredible benefits. Best of all, you can do it in a completely stress-free environment by deciding in advance exactly how many hours you want to work.
In fact, my friend over at More Time to Travel does freelance writing for Forbes.
Freelance writing is a great way to make money from home. Be sure to have a strong portfolio and excellent writing skills to land quality freelance writing jobs. Here is a great freelance writing course.
2. Tour guide
This is perfect for someone who loves people and to discuss their worldly knowledge.
A tour guide is someone who accompanies tourists and provides information about the areas they are visiting. They are usually seniors because no special certifications or degrees are required. However, it can be a fun job for anyone who loves meeting people and has a lot of knowledge about their area. Some tour guide jobs offer tips and the opportunity to travel.
A good tour guide will have a deep knowledge of the areas they are touring and will be able to answer any questions the tourists may have. Plus cash tips are always a perk!
3. House Sitter
You can house sit for someone you know, or use a site like Mind My House to find paying gigs. Rates vary depending on the city, but typically you can expect to earn $25-50/day as a house sitter.
It allows you to live in new places without having to commit to long-term leases, and it gives you an opportunity to meet new people and explore new neighborhoods. Plus, it’s a great way to make some extra money on the side as well as lowering your monthly expenses!
If this is something you are seriously considering, then check out this book to learn how to housesit from an expert.
4. Librarian
Librarians are responsible for organizing and managing library collections, helping patrons find information and materials, and providing instruction on how to use library resources. They typically work regular hours in a library setting, and their work is relatively active.
They also need excellent research skills and the ability to stay up-to-date on new technologies.
However, job prospects are good to work in this quiet environment.
5. Customer Service Representative
Jobs in customer service usually don’t require a lot of experience or special training, so they can be a great way to ease into retirement. And since most customer service positions are in the service industry, you’ll likely get to meet new people and help them solve problems every day.
They may work in call centers, retail stores, banks, or insurance companies. In some cases, they may also work remotely from their homes. Customer service reps typically need strong communication and problem-solving skills, as well as the ability to stay calm under pressure.
6. Craft seller
Many people don’t have time for their crafts like they wanted when working full-time and raising kids. So, retirement is a perfect time to become an artisans who make and sell their own products.
You can set your own hours, work from home and sell whatever you like. There are many online marketplaces that cater to craft sellers, so you can find a platform that fits your style and interests. In addition, you can attend craft fairs and other events to sell their work in person.
Make sure to price your items competitively and take the time to create an attractive product listing. Plus ship quickly and provide excellent customer service to keep buyers coming back for more!
7. Crossing Guard
It only requires a few hours of work per day, and the pay is decent around $15 an hour.
The job does not require any special skills or training, so it is an ideal way to spend your golden years. Plus you can keep youthful by staying around all of the school-aged children.
8. Blogging
This is a form of expression for most retirees or those thinking about retiring.
It can be a low stress job after retirement, as you can do it from the comfort of your own home and set your own schedule. You don’t need any special qualifications or training to start blogging – all you need is a computer, an internet connection, and something to write about.
Blogging is a great way to create fresh, new content on a regular basis for your website. In fact, my friend over at Tuppennys Fireplace uses blogging to drive extra money to their retirement budget each month.
You can sell advertising space on your blog, use affiliate marketing to promote products and services, or even launch your own product or service. The sky’s the limit when it comes to making money from blogging – so if you have something interesting to say, go for it!
9. Elder Care Services
Services can range from in-home help to full-time nursing care, and each has its own benefits and drawbacks.
While this may seem odd as a low stress job in retirement, it is a good reminder that you are still youthful in others’ eyes.
These may be simple jobs such as picking up groceries, light cleaning, cooking meals, or companionship during the day. Given the cost of nursing homes and certified nursing assistance, this is an affordable option for families who want extra eyes on their loved ones.
10. Private Island Caretaker
Okay, this is the one I want!
If you are reading this and need a caretaker, I am happy to be the right person for your estate.
A lot of caretaker jobs are in private areas, such as private islands, ski resorts, large estates, and other remote or private areas. This is often because employers need someone they can trust to be on-site full time and take care of things.1) Private Island Caretaker
Caretaker jobs are a great way for retirees to stay engaged and active in their golden years. They can provide a sense of purpose and routine, as well as an opportunity to explore new places and meet new people.
11. Docent or Usher
One low-stress job that retirees can consider is becoming an usher at their local theater or sporting area. This job does not require much training and typically pays minimum wage, but it can be a great way to meet people and see new shows and watch sports.
A docent is someone who has expert knowledge about a certain subject and can teach people about it through guided tours and lectures. They are often found in museums, art galleries, and other places where people can learn about the arts.
For many retirees, these are the perfect jobs to get paid for enjoying their hobbies and events they didn’t have time to see when working full-time.
12. Work at Disney
Jobs at Disney parks can be both fun and challenging, with plenty of opportunities to make new friends and help guests have a great time. You’ll need to be able to work hard and stay cheerful under pressure, but the rewards are many.
If you’re interested in working at one of the happiest places on earth, visit the Walt Disney Company website to learn more about current openings and how to apply.
Perfect for the retiree to stay youthful!
13. Invest in Various Intiatvies through Crowdfunding
When it comes to investments, there are many options to choose from that can fit any personality type.
Crowdfunding was created to help more people invest in various businesses by pooling resources together. This makes it more affordable and less risky for everyone involved.
For many retirees, this is a great way to impact start-up businesses and maybe even have a great ROI on their money.
14. Tutoring
Tutoring can help students learn in a one-on-one environment, and help them to focus on the material. Tutoring can also help build a student’s confidence, and help them to ask questions they may be too embarrassed to ask in a classroom setting.
It’s a great way to help students who are struggling and give them the support they need to succeed. You also get the satisfaction of knowing that you’re helping young people achieve their goals. Tutoring can be done in person or online, so it’s a flexible job that you can fit around your schedule.
In today’s society, there are plenty of opportunities to help students achieve faster with tutoring. Most tutors are paid at least $30 an hour.
15. Virtual assistant
There are many low stress jobs that can be found online and Virtual Assistants are one of those jobs.
A virtual assistant is a professional who provides administrative, technical, or creative assistance to clients from a remote location. Often, virtual assistants work for multiple clients simultaneously, providing a wide range of services including social media management, email management, bookkeeping, and more.
They provide a service to their client through the internet and This is a great way for someone with retirement to start making money fast because most VAs make between $35 and $50 an hour.
Take free training for becoming a virtual assistant!
16. Personal shopper
A personal shopper may work in a store, helping customers find what they need, or they may work remotely for a customer who gives them a list of items to purchase. Either way, personal shoppers usually charge by the hour.
It also pays well, especially if you work for a high-end retailer. And since you’re working with customers one-on-one, this is a great job for someone who enjoys helping others. Perfect for a retiree to get out and about.
17. Personal organizer
They may work with individuals or groups, in both business and personal settings. Personal organizers usually have excellent time management skills, as well as a thorough understanding of the principles of organization.
This type of position is great to keep you moving as well as help others.
18. Animal shelter worker
They may feed, groom, and exercise the animals, as well as administer medication and vaccinations. They also clean cages and kennels, and may handle adoptions. The work can be physically demanding, but it is also very rewarding to help homeless animals find new homes.
For someone who loves animals, this is a perfect opportunity to make money and help neglected animals.
19. Book store assistant
The work is relatively easy, and there are usually no major deadlines to worry about. Plus, bookstores are typically quiet and calming environments, which can be a nice break from the hustle and bustle of everyday life.
If you’re looking for a relaxed job after retirement, this could be it!
20. Photographer
Some people take up photography as a hobby, some as an art form, and some as a profession. The beauty of photography is that it can be whatever you want it to be. There are so many different types of photography, based on your taste and choice you can choose which area to focus on first.
In addition, photography is a great low stress job after retirement!
It can be done freelance to supplement your income or on a full-time basis. There are many opportunities for photographers, and the work is generally enjoyable.
21. Life coach
After retirement, there are many low stress jobs that a person can take on. One such option is becoming a life coach.
This job involves helping people work through their problems and achieve their goals.
By becoming a mentor for the next generation, you are able to have a lasting impact and legacy. This allows you to share your wisdom and knowledge while also helping someone else in their career path.
As a life coach, it’s important to be a good listener and have strong communication skills. Additionally, new graduates might be able to offer you fresh perspectives on life that you may not have considered before. It’s easy to become a mentor to coworkers or people in your field; all it takes is some time and effort.
22. Consultant
Consulting is a broad term used to describe an area of work. It encompasses a wide range of activities and can be done by anyone with the appropriate skills and experience.
Many retirees choose to focus on the areas they enjoyed at work and avoid stressful parts, becoming consultants in those fields.
Often, retirees are a great resource for companies looking for short-term or project-based work. If you let your network know that you are available for consulting opportunities, they may be more likely to reach out to you when they have a need. Additionally, the average consultant salary is between $50 and $150 per hour, depending on experience level.
23. Walmart Greeter
Greeters welcome customers, help them find what they need, and provide general information about the store. They may also monitor security cameras and alarms in the store. The position requires little training, and most Walmart greeters are given on-the-job training.
However, greeters must be able to handle stress well, as they are often the first point of contact for customers who are angry or upset. The position also requires being able to work weekends and holidays.
24. Dog walker
Dog walking is a great job for people who love dogs and want to make a difference in the lives of animals. It is also perfect for retirees who want to stay busy and have flexible hours. The work can be enjoyable and rewarding, and it is a low-stress profession.
Dog walkers are typically paid by how many dogs they are watching at any given time, rather than by the hour. There are specific websites where you can find work as a dog walker like Rover and the average pay is $14 an hour.
25. Pet sitter
A pet sitter is a professional who is hired to take care of pets while their owners are away. Pet sitters typically visit the home of the pet owner to feed, water, and exercise the pet. They may also provide additional services such as grooming and medication administration.
For example, many retirees enjoy pet sitting because it allows them to form close relationships with animals while also providing a service to their community.
Find plenty of pet sitting gigs on Rover.
26. Camp Host
After retirement, many people are looking for a low stress job that will allow them to travel, get outside, and see new places. Campground jobs are perfect for this because you can work during the day and explore at night.
Camp hosts are people who work at a campground to provide information and assistance to guests.
Campsites allow for some flexibility in terms of location – you may be able to choose the state or national park you’d like to work in, as well as the dates of your stay. Additionally, many camp hosts have a good deal of control over their schedules, which can be a perk.
They usually work for minimum wage, but can often receive tips from guests.
27. Adjunct Professor
Many retirees take on part-time work as adjunct professors. The position offers a high level of flexibility, good pay, and opportunities for professional development. In addition, adjunct professors often have the opportunity to work with students from diverse backgrounds and help them grow academically.
This can be a great way to share your knowledge and expertise with the next generation of students. Contact your local college and see if they have any openings. Adjunct professors typically earn around $3,000 per class taught.
28. Author
Becoming an author can be a great way to enjoy your retirement years while still earning some extra money on the side. The job doesn’t involve a lot of pressure, and you get to set your own deadlines.
There are a few different ways to get your book published. One option is to work with an agent. However, this may not always be possible, especially if you are writing a non-fiction book. Another option is to self-publish your book. This can be a great way to get your book out there without having to go through a publishing house.
You will finally have time to tell your story from your perspective.
29. Focus group participant
Focus groups are gatherings of people who are brought together to discuss a certain topic. The participants can range from 6 to 12 people, and they are typically held in local hotels or conference centers. During the focus group, the participants will discuss upcoming products, services, trends, and issues.
Focus group participants are typically reimbursed for their time and participation in the discussion. This can be done in a variety of ways but is usually either through cash or gift cards.
30. Furniture flipper
Furniture flipping is a great business for those who want to make some extra money with little stress and no formal education needed. You can do it from the comfort of your own home, as long as you have the necessary tools and space. With a bit of hard work, you could be on your way to making some serious cash.
Furniture flippers are people who buy furniture at a low price and resell it for a profit. They usually start as furniture buyers who love hunting for deals at garage sales or estate auctions. This is a low-stress job that’s also profitable.
For many retirees, it may have been a hobby turned profitable.
31. Delivery driver
Delivery driver is a great job for retirees because it keeps them active and socially engaged. It can be difficult to sit at home all day, so this job is perfect for those who want to be out in the world meeting new people.
Delivering food is a great way to make some extra money in your spare time. It’s a low-stress job because you’re only out of the car for deliveries, and many companies offer drivers up to $20 per hour.
I love Doordash because their sign-up process is so easy–you can be up and running in minutes!
32. Rideshare driver
Ridesharing is a great way for seniors to make some extra money on the side while still having plenty of time for themselves. It’s very flexible, so they can work as much or as little as they want, and it doesn’t require them to take too much time out of their day.
Both Uber and Lyft require relatively little startup capital, and retirees can often make money driving for these companies.
Just make sure you have the proper auto insurance for ridesharing.
33. Taxi Driver
Taxis are in high demand in most cities, so there is always work to be found. In addition, the hours are flexible, so drivers can work as much or as little as they want.
And since driving a taxi is not very demanding physically, it is a good job for those who are no longer able to do strenuous work.
Many people who move to a foreign country find being a taxi driver a highly rewarding and lucrative way to make money.
34. School Bus Driver
There is a severe shortage of school bus drivers across the country.
This may not be a low stress job to many, but you can have a long lasting impact on the students. Right now, our students need positive influences in their lives.
What does the job entail? You must have a valid commercial driver’s license (or find someone who will provide the training) and be clear from moving violations in the last 3 years. In addition, you must pass a background check to work with students.
Many districts are desperate for school bus drivers and providing a signing bonus.
35. Chat moderator
Chat moderators are responsible for monitoring chat rooms and helping to ensure that the conversation remains on topic and respectful. They also work to resolve any disputes that may arise.
They work in a variety of settings, from social media to online gaming platforms.
But for the most part, the job is relatively low-stress, thanks to the ability to take breaks and work flexible hours. Chat moderators also often have the opportunity to learn new technologies and hone their customer service skills.
36. Babysitter & Nanny
Babysitting and nannying is a great way to make some extra money in your spare time. It’s perfect for people who love kids and have a few hours in the afternoon after school lets out. You can help out your neighbors by babysitting their kids or finding families near you who are looking for a nanny.
They offer a lot of flexibility, they’re relatively low stress, and they often come with a set schedule so you know what you’re doing each week. Plus, you can usually work from home, which is a big perk if you want to stay active in your golden years.
The average babysitter in the United States earns a bit less than $15 per hour, but some earn at least $20 an hour. It is easy to find work.
37. Event Staff
Event planning can be a very stressful job, but it can also be a very rewarding one. After retirement, many people look for a flexible job that they can do mostly on the weekends and in the evening. Event staff is a great option for those people.
They may work in a variety of industries, including entertainment, hospitality, marketing or nonprofit organizations.
Event staff often have to wear many hats during an event, handling duties such as coordinating with vendors, setting up event spaces, managing attendees, and serving as liaisons between organizers and other staffers.
This may not be the situation for everyone, but great for someone who likes to be in the action.
38. Research Assistant
After retirement, many people feel lost and without a sense of purpose. A research assistant helps others find information and discover problems to solve. They work with teams or individuals to locate the best information possible and help them use it effectively.
Research assistants are in high demand because they help other people find information and solve problems. They work on a variety of tasks, such as conducting research, organizing data, and writing reports. Their skills are in high demand by companies, governments, and individuals who need help conducting research.
The job is relatively low stress and pays between $18 and $22 per hour. It requires patience, communication skills, and a range of computer skills.
39. Substitute Teacher
A substitute teacher is someone who fills in for a permanent teacher when they are absent. This can be for a variety of reasons, such as paid vacation, maternity leave, or sick leave. It is a great option for retirees because it is one of the most respected and low-stress jobs after retirement.
This is one of the best retirement jobs because you can substitute teach any position within a school.
Substitute teaching can be extremely rewarding, as you are able to help students in need and fill in for teachers who are absent. You may also have the opportunity to work with different age groups and learn new things.
It is now possible to earn around $20 per hour on average as a substitute teacher. In order to become a substitute teacher, you need to have a bachelor’s degree in any academic discipline from an accredited college or university. With the right qualifications, you can enjoy a great deal of flexibility and earning potential while working with children.
40. Airbnb Host
You can earn up to $1,000 per month by listing your home on the site.
It’s also a low-stress job since you don’t have to worry about meeting deadlines or dealing with customers. And, since you’re working from home, you can easily take care of any last-minute changes or emergencies.
If you’re interested in becoming an Airbnb host, check out this guide on how to get started.
41. Proofreading
In this career, you would be reading documents or manuscripts and looking for mistakes in grammar, spelling, punctuation, and syntax. You would then mark the errors with a correction symbol and provide a note to the author about the mistake. Proofreading can be done independently or as part of a team.
It is also important to be able to meet deadlines because many publishers require that manuscripts be returned within a certain timeframe.
42. Park Ranger
They enforce park rules, help visitors enjoy their visit, and provide information about the areas they patrol. Park rangers may also conduct educational programs, research projects, and archaeological surveys.
The growing popularity of outdoor recreational activities will lead to more demand for these workers.
Rangers must be able to hike long distances in difficult terrain, often carrying heavy equipment. They also may need to work extended hours, including weekends and holidays, during peak visitor seasons.
43. Voiceover artist
Voiceover artists are people who provide the voice for a character or commercial. They must be able to understand and interpret the script, and then deliver the lines in a way that sounds natural and believable.
Voiceover artists are in high demand for their unique ability to provide a voice for various multimedia productions that requires no formal training. This work can be done from anywhere with a good internet connection, making it an ideal job for retirees or those with flexible hours.
44. Real Estate Agent
The work is often exciting, and you can set your own hours. However, it can also be demanding and require long hours during busy times.
They must be knowledgeable about the current market conditions and have strong negotiating skills. In order to succeed in this career, you’ll need to be able to work well independently and be comfortable networking with potential clients.
You’ll also need to develop a strong marketing strategy to attract new clients.
45. Sports Coach
They may also instruct athletes on the rules and regulations of a sport. Sports coaches typically have a college degree in physical education, kinesiology, or a related field.
Coaches often work long hours during the season and must be able to handle criticism from players and parents. However, for those who love sports and enjoy working with people, sports coaching can be an enjoyable and low-stress job after retirement.
46. Artist
Being an artist is a great job to have after retirement because it doesn’t require a lot of stress and you’re free to create whatever you like. The only requirement for the job is that you have some artistic ability, which most people do.
Working as an artist can be perfect for people who are looking to have more flexibility with their hours and want to work on the go. There are many different types of artist jobs that one can find, and the best way to find out what’s available is to do some research online or talk to other artists in your area.
47. Translator
Translation is a great option for those who want to use their second or third language skills in a professional setting.
Many retirees find themselves with time on their hands after retirement and may enjoy doing something that they are good at and can be successful at. Speaking another language can lead to many opportunities, including working as a translator or in a translation services company, or becoming a consultant in foreign affairs.
Translators must be able to understand the source material fully and then accurately convert it into the target language.
48. Interior decorator
Interior decorators are in high demand because they have an eye for design and can help people make their homes look beautiful. This is a low-stress career choice that allows retirees to work anywhere, which is why it is becoming increasingly popular.
Interior decorators are often retirees who have a wealth of knowledge and experience in interior design. They must build up a portfolio of their clients’ homes before they can become an interior designer and be able to charge more for their services.
Interior decorating is a creative line of work that can earn great money, and it’s often a side hustle for people who want to make more money while still having free time. Satisfying customers is another perk of this career!
49. Handyman Services
If you’re looking for a way to make some money after retirement, and enjoy doing hands-on home repair projects, consider working as a handyman. Handyman work can be done on your own schedule, so it’s a great option if you want more flexibility in your life.
Handyman services are becoming more popular because they allow you to set your own rates and work on your own schedule.
This is beneficial for both the worker and the customer, as it allows the worker to charge a fair price for their services and customers can get work done on their time. Additionally, handymen have a variety of skills and can fix many problems around the home, which makes them a valuable asset.
50. Professional cuddler
Cuddling has become a popular service in recent years. Companies like Cuddle Comfort offer professional cuddlers that will come to your house and provide you with a compassionate, understanding listening ear as well as some quality cuddle time.
Some people make a living from professional cuddling. These cuddlers can earn approximately $40 per hour for just being themselves and giving bear hugs. This is a growing industry with many people finding comfort and satisfaction in human touch.
51. Mediator
To become a mediator, you need to have either legal training or a bachelor’s degree in mediation. This gives you the skills needed to mediate and resolve disputes between two or more parties. Mediators usually have a low-stress job because of their flexibility and freedom to work from anywhere.
Mediators come from a variety of professional backgrounds, but the majority have some form of legal background. More than half of certified mediators work as general mediators, charging $100 to $250 per hour.
52. Data entry specialist
A data entry specialist is somebody who enters data into a computer system. This can be a very low stress job, especially if you have basic computer skills and typing speed and accuracy. The work is relatively easy to find and usually does not require any specific qualifications.
Data entry specialists are paid a modest wage for their work, but the pay is reliable and predictable. The job is also relatively easy to find, making it a great option for people who are looking for additional work during retirement or in their spare time.
Being able to type quickly and accurately in order to be successful in this role.
53. Waiter/ Waitress
If you have a gift of gab and service, then this might be the perfect industry for you. Especially as a bar back!
The work hours are flexible, the tips are usually good, and you get to meet new people all the time. Plus this type of job is fun, as it’s not high-stress and it allows someone who just retired or wants a job with flexible hours to stay active socially while they make money.
If you’re looking for an alternative after retirement, waiter or waitress work is definitely a good option.
54. Cook
Many families are looking for healthy options for dinner. What is better than a home-cooked meal?
While working as a cook for a restaurant, you may often work long hours in a hot, noisy kitchen. However, cooking for local families on a small scale may be the perfect scenario.
55. Become a Transcriber
Transcription is a great way to make some money after retirement. You can typically make around $18-$25/hour, depending on your skill level and experience.
The work is relatively low stress, so it’s a great option for those looking for a relaxing way to make some extra income.
56. Retirement planner
Some retirement planners offer training and certification for their employees. The employer might pay for your training and certificate if they feel confident enough in hiring you as an employee after seeing how well you do these tasks.
This may not be the ideal situation for many, but it pays well.
57. Flip Items
Flipping items for profit is a great way to make some extra cash. You can find deals at garage sales and online, and then turn around and sell them for more.
Be sure to look out for scams, however, as there are many people who try to take advantage of those looking to flip items.
To learn how to flip for a side hustle, check out Flea Market Flippers.
58. Professional Volunteer
Charity work is a great way to give back to the community and help those in need. There are many charities that need help, and by donating your time or money, you can make a big difference in someone’s life.
It can also be a great way to ease into retirement. Many charities are always in need of volunteers, and you can often find opportunities that fit your schedule. You may also be able to find paid positions with certain charities.
You will have the opportunity to help others and make a real difference in their lives. You may also find new friendships and learn new skills.
It keeps you social and busy, and it lets you help out in your community. Plus, many organizations offer volunteer opportunities tailored to retirees’ skills and interests.
In fact, many volunteer opportunities turn into paid jobs.
How to find a job that is low stress and matches your skills?
Which best jobs for retirees do you want?
When you’re looking for a job that is low stress and matches your skills, it’s important to consider a variety of factors. For example, employers want employees who can work independently and are well-organized. They also want employees who can communicate clearly. You should have a basic understanding of the job duties as well.
If you have specific skills, you may not need these things as much.
However, employers still want employees who can complete tasks without any help from others. There are a variety of ways to find out about such jobs, including using search engines or social media sites like Facebook and LinkedIn.
Also, whoever says you have to wait for retirement?? Find low-stress jobs that pay well without a degree now.
It’s also important to be aware of the pay structure. Often, employers want employees who will be able to work for them on a long-term basis. The pay structure is often predictable and employers know exactly how much work there will be available for each project. This makes it easier for both parties involved.
One way to find a job that is low stress and matches your skills is by using online platforms like Upwork, Freelancer, and Fiverr. These platforms offer many data entry jobs that are perfect for those looking for an easy way to make some money after retirement. In order to take advantage of these jobs, you’ll have to learn how to type fast.
Know someone else that needs this, too? Then, please share!!
In some rental markets, apartment hunting can be as competitive as a job search. In fact, modern, savvy apartment seekers often visit apartments as prepared as if they’re on a job interview. If your apartment search lies in a highly-competitive rental market, like New York City, you may want to employ a few clever approaches to help secure your tenancy. Here are some tactics to help you nab your first choice apartment and seal the deal on the spot!
Dress for the apartment you want
Remember the old saying “dress for the job you want?” It applies to your apartment search, as well.
If your first-choice apartment is in a swanky high-rise building, then ditch the Saturday sweats and dress up for an in-person visit. A variation of the same rule applies if you are hoping for a hip pad in an up-and-coming neighborhood. Skinny jeans, a flannel shirt, and nerd-chic glasses might help your future landlord visualize you living there. Within reason, do what it takes to look like you are the perfect fit for the new space!
Over-prepare
Most folks who land great jobs do their homework, carefully studying the company they are interviewing with. Borrow this best practice to convince a property manager that you’re the right person.
Come prepared with knowledge about the community. Use search engines like Apartment Guide as a resource to study the amenities and features the community offers, then let the leasing agent know how much you value those options. You can also use sites like Yelp to learn more about the neighborhood and rave about how much you love restaurant X and coffee shop Y. Community managers may well appreciate your knowledge – and compliments!
You can also borrow this job search tip: bring a cover letter to introduce yourself. This will get a property manager’s attention and help them remember you after your initial tour.
Think like a networker
Once you’ve made a positive first impression, you might dig a little deeper to make a personal connection with the landlord. If the decision comes down to two renters with similarly positive credentials, the landlord might choose the one he feels most comfortable relating with.
Think like a networker. As in business networking, you should ask questions and then really listen. Keep your ears open for commonalities with the community manager. You might be from the same hometown, have attended the same college, or share the same favorite restaurants. Develop a rapport with the property manager by paying attention to and highlighting these details.
Follow up with a friendly thank-you
Best behaviors for job hunting – and apartment hunting – include a proper “thank you.” Once you’ve nailed the interview, send a note to thank a landlord or apartment community manager for their time, perhaps mentioning specific things you like about the apartment. Be sincere, and let them know it’s your first choice.
Because time is of the essence in apartment searches, email might be your best form of communication, though it never hurts to drop a handwritten note in the mail. (Even if the note arrives after you’ve signed the lease, your community manager will be glad she chose you!)
Remember your rental reputation
Of course, all of these strategies rely on the basis that you are prepared to be an excellent resident. Keep in mind you must also meet any legal apartment community requirements, including perhaps passing a credit check, to be the best candidate for an apartment that is in demand. You may be asked for referrals from former landlords, as well.
If you’re confident, prepared and sincere, however, you’ll likely have a much better shot at nabbing your favorite apartment on the first try!
Photo credits: Shutterstock / auremar, Robert Kneschke
Today’s post is all about the best car buying tips so that you can save money when buying a car.
Not all car dealerships and car salesmen are bad. I know this for a fact because my husband used to be a new car salesman (and he was nice! I promise!). My husband knows all about the flack that salesmen get.
Despite the reputation car salesmen get, the car buying process is not perfect either.
Whether you are purchasing a new or used vehicle, there are several car buying tips and tricks you should know of so that you can walk away with the best deal possible. There are so many options and extras that come up when buying a car, which means there are many ways for you to end up leaving confused or paying more than you should be.
Whether you are buying a $500 car or a $50,000 one, you want to get the best deal possible. To make sure you don’t walk away from a deal angry or regretful, it’s important to be as knowledgeable as possible.
According to Edmunds.com, the average person in the U.S. spends $483 on a new car payment and $361 on a used car payment.
That’s a lot of money, which can leave a lot of room for mistakes and overpayment.
Before we begin, I want to tell you about several ways that car dealerships make their money. These are things you will want to be mindful of:
Your trade-in vehicle. To make a profit on your used car, they will want to offer you less money than they can sell it for. Of course, this is normal, but you want to be mindful of this so that you can get the most money out of your trade-in vehicle.
Incentives and bonuses from the car manufacturer. This means that if you can buy a car when a dealership hasn’t reached their selling quota, you may be able to get a great deal on your car purchase. Many times car dealerships will take a loss on the vehicle if it means that they will be able to reach their quota.
Financing the vehicle. Dealerships make money when you finance vehicles through them.
Extra options, such as an extended warranty.
Buying a new car can be fun and stressful at the same time. You don’t want to get tricked or duped, so here are car buying tips and tricks before you start shopping!
The best car buying tips:
Don’t just think about the monthly payment.
The most important car buying tip I can offer in this blog post is that you should not just care about the monthly payment.
You should only purchase what you can actually afford. Just because the monthly car payment looks affordable, it doesn’t mean that it actually is.
There are car payment terms that are as long as 96 months, which is just crazy to me. A car salesperson may stretch out the car payment so that it looks to be more affordable for you, but you should be aware of the whole cost, which includes things like interest and taxes.
Please, please, please, look at the whole cost and see if that’s actually an affordable amount for you to be paying.
Shop around for your own financing.
If you have to finance your car purchase, make sure you shop around before you agree to the dealer’s interest rate. Sometimes the dealer has the lowest rate, but sometimes they don’t.
You may be able to save yourself hundreds of dollars a year by simply shopping around. Plus, it’s extremely easy to shop around for the best interest rates – start with local credit unions and banks!
Go to a few car dealerships.
You can shop around car dealerships both online and offline.
I recommend shopping online before you go to a dealership, this way you can be prepared by learning as much as possible in advance. You also won’t be wasting your time at car dealerships that can’t get down to the price you want.
Don’t add small and unnecessary extras at the end of your purchase.
When you are about to purchase a car, you will be encouraged to buy many small options that you may not need. This may include extras such as:
Tire replacement
Paint protection
Extended warranties
While you may believe that you need some of the above options, you should make sure that you’re not just thinking about the monthly cost. The financing manager will offer you these extras in a way that makes it seem affordable. But, these extras only appear inexpensive because they are padded into your monthly cost, so don’t be fooled by how “affordable” they seem.
Yeah, $1 or $5 each month may not seem like much, but it can add up to a lot over a 5 year period!
Trust me, you are paying for these, and it’s not just a good deal that you are getting.
Related: 30+ Ways To Save Money Each Month
Determine how much your trade-in is worth.
If you have a trade-in vehicle, you should figure out how much it is worth before you step foot into a car dealership.
Kelley Blue Book is a great resource for doing this. While you may not get the exact amount that Kelley Blue Book claims you will get, it can be a good estimator or starting point when negotiating with the car dealership.
Know the right time to go.
There are certain times of the month and year that are better for car shopping than others. If a dealership is trying to meet their sales quota, they are more likely to give you a deal than when they’ve already beat their quota or if it’s the beginning of their quota.
This is because car manufacturers will give bonuses and extra incentives to car dealerships who sell a certain amount of vehicles. This gives car dealerships extra motivation to give really good deals if they are close to their quota.
I know someone who was able to lease a brand new car for just $70 per month, with no money down, because a car dealership needed to meet their quota. They got one heck of a deal!
To know the best time to go, you may want to make friends with a car salesperson, find out when their end of month or end of quarter is, and so on. Or, you could just ask. My husband would always tell people when the best time to buy was and would even call them, but many people did not believe him. If they only knew!
Don’t be afraid to negotiate.
Even if you get a discount, such as a car manufacturer discount, you should still negotiate. Many times, those friends and family discounts mean that you are not able to haggle at all, which can lead to you actually paying a higher price.
Cars sales are meant to be negotiated, whether it is a brand new vehicle or a used one. If you don’t haggle, you will most likely lose out on a lot of money, because negotiating is expected.
Other aspects of the vehicle buying process can be haggled on as well, this includes your trade-in vehicle, warranties, interest rates, add-ons, and more.
Learn more about negotiating at How To Rock At Negotiating On Everything.
Be nice.
No matter what, you should be a decent human being.
Being rude won’t get you the best deal, instead it may make the salesperson and the dealership not want to help you. After you purchase a car you are asked to go through the car manufacturer to grade your car salesperson. If the salesperson knows that you might give them a bad grade, they may not want your deal because it’s not worthwhile to them to have a bad score (which decreases their salary/income).
Plus, you should always be nice anyways. Salespeople are just doing their job and trying to make a living, and the majority of them are good people.
Miscellaneous car buying tips and tricks.
Here are several other car buying tips and tricks:
Never shop when you’re hungry or tired. You should always be well-rested and ready for an eventful day.
For the car dealership to beat their quota, sometimes they will buy a new car themselves and put it on the “used” car dealership side. The car is still brand new, but is now considered pre-owned. This can allow you to save a good deal of money. However, you do want to be mindful of the warranty, because the warranty has most likely started once the car was officially bought the first time (by the car dealership).
Purchase a car at the end of the car’s model year. Dealerships want to move out last year’s model to make room for the new ones, which can lead to a good discount.
Look into car insurance rates before you purchase. You may want to contact your car insurance agent so that you are not surprised by a high insurance rate after you make a purchase.
Don’t tell the salesperson what your budget is for a monthly payment. You should always negotiate on price first. A dealership will try to get you into something that will just barely fit your monthly payment budget, which can cause you to spend a lot more money in the long run.
Be confident. When negotiating, you should always be confident in what you are saying, and do not be afraid to walk away. If it’s not meant to be, then it’s just not.
Find the best car insurance. What is the most reliable car insurance company?
What other car buying tips and tricks do you know of? Share in the comments below!
Hello! Today, I have a great post from my blogging friend James. James and his wife paid off $62,000 in debt in just 7 months!
Shortly after we got married, my wife Andrea and I got serious about our finances and paid off all our debt.
This is the story of how we turned a profit on our wedding, combined our finances, and paid off $62,000 of debt in 7 months.
Related:
Where’d all the debt come from?
All the debt was mine. I was a dumb young kid and thought I’d always be able to out earn my stupid decisions. Until one day I couldn’t.
Despite a generous 3-year military scholarship at my pricey, private college, I had student loans to pay for:
my housing (~$12,000 x 4)
my freshman year’s tuition (~$30,000)
and a summer study abroad program (~$15,000)
Then shortly before I graduated, USAA, a military-member’s bank, offered me a $25,000 loan at the ridiculously low rate of 2% interest. USAA dubbed it a “Career Starter Loan,” but really it was their clever way of ensuring I’d be a customer for the foreseeable future. I used $15,000 to refinance my study-abroad loan, bought a new laptop, and put the rest in savings.
If you’re keeping count, that pushed my total debt upon graduating college up over $100,000.
So of course I immediately got serious about my finances, did a budget, and started attacking my debt, right?
Nope.
I bought a sports car instead.
I was 22 years old, only 4 months into my Army career, and had racked up over ~$115,000 in debt. All I had to show for it was a fancy diploma, a 3 year old Mazda, and $1,100+/month in debt payments.
My wake up call
As can happen in the military, I got hurt.
I always knew it was a possibility, but never thought it’d happen to me. Ultimately, the Army decided it was best if they “retired” me. Just like that my once promising career was over only two years after it started.
Fortunately for me, the Army is a huge, slow moving bureaucracy and I had some time to prepare for my unexpected new life as a civilian. Unfortunately for me, I got hurt during the financial collapse of 2008 and I was entering one of the worst job markets of my life.
I didn’t know how long I’d be without a reliable income, but I knew I’d still be expected to reliably come up with $1,100/month for debt payments.
I opened an excel file and made my first crude budget, subtracting what I needed to spend each month from what I made each month. Turns out I had more money leftover at the end of the month than I realized. I saved as much of it as I could and set it aside as an emergency fund.
Six months after leaving the Army, and nearly draining my savings, I convinced a Fortune 500 company to put me in charge of a $15M/year operation. Now armed with a decent salary I set aside one month’s worth of expenses as a small emergency fund and attacked my debts with a vengeance.
I finally understood what a hindrance my debts were and I wanted them gone!
If you’d like, check out this article to get the exact tools and tactics I used to attack my debts. Following this plan, I would’ve paid off my remaining ~$80,000 and been totally debt free in 3 years.
There was just something I had to do first.
Will you marry me?
My debt was no secret to Andrea, and to her credit, she didn’t really care. She valued me more than my debt and saw how hard I worked to get through my career crisis and get my act together. In fact, we grew closer through all the craziness.
We’d been together for 5 years at this point and it was time to move our relationship forward. I paid off a couple more debts, kept current on my remaining balances, and used my excess cash each month to save for an engagement ring.
In September 2011 I asked Andrea to marry me, she said yes, and we were married a year later.
In that year, I paid the minimum payments on my remaining debts and we saved all our excess cash to pay for our wedding and honeymoon.
We made sure to stretch our dollars by:
Booking a daytime wedding, it was a lot cheaper to rent a venue during the day than at night.
We rented centerpieces (the vases all the flowers went in) instead of buying them. I’m not sure what we would’ve done with 20 identical glass cylinders after the wedding, anyway.
Made our invitations and programs using kits available from craft stores.
“Hired” friends and family in the industry we would’ve been willing to hire even if we didn’t know them
Andrea’s aunt is a seamstress and made all the bridesmaids dresses.
Our DJ/Pianist was a friend.
Our Photographer was a friend.
In the end, we had a beautiful wedding, a great honeymoon, and were able to pay for everything in cash. We even had a bit leftover.
Joining forces
After our honeymoon, we moved into a new rental house and started combining our finances. Then once we could see all our money coming into and going out of the same account, we redid our budget.
Andrea and I both earned similar incomes, but now our expenses were much less as a married couple than when we lived on our own. We only had one rent payment, one set of utilities, etc. Since our “married” expenses each month were pretty close to what each of us spent as a single person we had a lot of cash left at the end of the month.
By this point, the debt was down to ~$62,000 and it was time for us to attack it.
Andrea and I both wanted to pay off the debt quickly, but we didn’t agree on how. The main point of contention centered around the money we had leftover from our wedding, wedding gift cash, and some of Andrea’s savings from her years as a responsible person.
Even though Andrea had shown me incredible grace, I still felt ashamed of my debt. I didn’t want it hanging over our heads and was willing to take drastic action to to wipe it out.
I wanted to throw most of our savings at debt, leaving just enough to act as a small emergency fund. Then once the debt was totally gone, we’d rebuild our savings to its previous level.
That plan would have us out of debt really fast, but was risky as it would leave us with only a small emergency fund for a while. I didn’t love this risky plan, but I was anxious to pay off our debts and was already used to living with only a small emergency fund. Besides, with two incomes I figured the odds of us having a catastrophic emergency were quite small.
Andrea, however, hated that plan.
She wasn’t comfortable with the risk and did not want to drain our savings. Having a big emergency fund gave her a sense of security I’d never experienced before and the idea of only having a small emergency fund freaked her out.
Balancing speed with security was a new concept for us. We viewed risk differently and had to come up with a plan we’d both be happy with. The more we talked about it, though, the less our conversations centered on our finances.
Instead, we focussed more on building the life we wanted.
Debt freedom and a big emergency fund were just some of the ingredients.
We both wanted to travel. We both wanted to give to charity. We both wanted to pursue work we love.
Paying off the debt would give us the freedom to do so.
We never wanted to worry about putting food on the table. We never wanted to wonder how we’d pay our rent. We didn’t ever want to be tied to a job we didn’t like just because we needed the money.
A big emergency fund would help us avoid those things.
Our plan for paying down debt
So here’s what we came up with.
We agreed to use some savings to pay off a couple of my smaller student loans completely. This still left us with enough of an emergency fund to maintain Andrea’s sense of security.
We agreed to keep our expenses to less than half of our combined income. We could’ve afforded to rent a fancier house and eat lobster every night, but we chose not to. This way, if one of us lost our jobs we’d still be able to pay rent and keep food on the table. While we were both working, though, we’d use the leftover cash to attack the remaining debt.
We agreed to stay focussed and pay off all the remaining debt in less than a year. If by our first anniversary we still had some debt we’d tap into our savings to pay off whatever small amount was left.
Assuming everything went according to plan, we’d be debt free with a healthy emergency fund within the first year of our marriage.
FINALLY DEBT FREE!
Everything went according to plan and we’re done paying down debt!
Seven months later we were totally debt free. ~$62,000 paid off and we still had a healthy emergency fund.
Or to put it another way, we paid off ~$115,000 in five years, about a year faster than if we’d not gotten married and I just paid it off myself. I paid off ~$53,000 in 4 years on my own, slowed down my debt attack to get married, and together with my awesome wife wiped out the rest.
Even more important than paying off the debt, Andrea and I learned how to set the course of our lives and take action to get us there. We grew closer as a couple as we faced the challenge of paying off debt. Best of all Andrea and I learned to work together to achieve great things.
Now it’s your turn
Maybe you’ve never talked about hopes and dreams or set goals with your partner. Or maybe you’ve never even thought about it for yourself. This can be tough and tricky, but I’d like to help you out.
It’s pretty easy to articulate a “what” and a “how” for money and call it a day. Take for example “Let’s pay off our credit card/student loan debt by cutting our expenses.” That’s great and responsible, but boring. Instead, as Andrea and I learned, start with “why” you want to do something.
Think about or ask your partner:
How would it feel to have an extra $100, $500, or $1,000 leftover at the end of the month?
How would you approach your career differently if you didn’t have to trade your labor just to pay Sallie Mae or Visa?
How much fun could you have?
How generous could you be?
What new options would you have in your life?
Taking this approach, you’d come up with something like: “I want to take a job for the love of it, give more money to charity, buy that thing I’ve always wanted without feeling guilty, and/or stay home with the kids. So let’s trim our expenses to pay off our debt.”
With a solid “why” like that, the “what” and “how” are just details. You’ll also be much more likely to stick with your goals when, not if, something comes along to distract you.
Pessimism is practical
If you find yourself struggling to come up with a worthy “why” release your inner pessimist. Think about all the things you don’t want in life. Think about what you’re afraid of. Then flip it by stating the opposite.
Take “I’m afraid I’m going to work as a corporate slave forever just to pay off my student loans” and flip it to “I want to pay off these loans so I can afford to work for a non-profit.”
“We’re going to be too broke to travel or have any fun when we get older” flips to become “I want to travel the world with our friends and family, so let’s save up a bunch of money to do so.”
Once you have your “why” figured out, “what” to do with your money and “how” will come more easily.
You’ll be able to withstand temptation and not get distracted by shiny stuff. And by working towards a worthy “why” together with your partner, you’ll learn to talk about money without fighting because you won’t just be talking about money. Instead, you’ll be planning and working towards a better life together.
I hope you and your partner will face the challenge of your finances, decide what you really want for your lives, and work towards your goals together. Aggressively paying off our debts actually brought Andrea and I closer together and deepened our marriage. We learned how to talk about tough subjects, set goals, and work together to achieve them. You and your partner can do the same.
Author bio: James helps couples handle and talk about money without fighting at loveandmoneymatters.com. Enjoy his blog post about paying down debt below.
What’s your family’s biggest financial goal? Why is it important to you? Are you currently paying down debt?
If you are new to my blog, I am all about finding ways to make and save more money. Here are some of my favorite sites and products that may help you out:
Find ways to make extra money – Here are over 75 different ways to make extra money.
Cut your TV bill. Cut your cable, satellite, etc. Even go as far to go without Netflix or Hulu as well. Buy a digital antenna and enjoy free TV for life.
Start a blog. Blogging is how I make a living and just a few years ago I never thought it would be possible. I earn over $100,000 a month online through my blog and you can read more about this in my monthly online income reports. You can create your own blog here with my easy-to-use tutorial. You can start your blog for as low as $2.75 per month plus you get a free domain if you sign-up through my tutorial. Also, I have a free How To Start A Blog email course that I recommend signing up for.
You should know your credit score – Check your credit score with Credit Sesame for free!
Answer surveys. Survey companies I recommend include Swagbucks, Survey Junkie, American Consumer Opinion, Pinecone Research, Prize Rebel, and Harris Poll Online. They’re free to join and free to use! You get paid to answer surveys and to test products. It’s best to sign up for as many as you can as that way you can receive the most surveys and make the most money.
Sign up for a website like Ebates where you can earn CASH BACK for just spending like how you normally would online. The service is free too! Plus, when you sign up through my link, you also receive a free $10 cash back too!
Save money on food. I joined $5 Meal Plan in order to help me eat at home more and cut my food spending. It’s only $5 a month and you get meal plans sent straight to you along with the exact shopping list you need in order to create the meals. Each meal costs around $2 per person or less. This allows you to save time because you won’t have to meal plan anymore, and it will save you money as well!
I highly recommend Credible for student loan refinancing. You can lower the interest rate on your student loans significantly by using Credible which may help you shave thousands off your student loan bill over time.
Try InboxDollars. InboxDollars is an online rewards website I recommend. You can earn cash by taking surveys, playing games, shopping online, searching the web, redeeming grocery coupons, and more. Also, by signing up through my link, you will receive $5.00 for free just for signing up!
The U.S. Bureau of Labor Statistics estimates that Americans change jobs about 10 times between the ages of 18 and 42. If job changers had a 401k account at just half of those positions, it would represent a significant money management challenge: multiple redundant investment portfolios and a mountain of account statements and investment documentation to sort through.
One flexible solution to simplify the task is to consolidate assets under a single account umbrella via a 401k rollover to IRA. Offered by many financial institutions, the rollover IRA can help you streamline your investments into a unified asset allocation plan. (Remember: In addition to 401k’s, this could also include 403b’s, 457’s, Pension Plans, Simple and SEP IRA’s)
If you enjoyed this article be sure to check out: How to Rollover Your 401k into a Roth IRA, Consolidate Retirement Assets with a Super IRA, How to do an In-Service 401k Distribution While You’re Still Working.
401k to Rollover IRAs Offer a Wide Range of Benefits
As compared with employer-sponsored retirement accounts, a rollover IRA can provide a broader range of investment choices and greater flexibility for distribution planning. Consider the following benefits rollover IRAs offer over employer-sponsored plans:
Simplified investment management. You can use a single rollover IRA to consolidate assets from more than one retirement plan. For example, if you still have money in several different retirement plans sponsored by several different employers, you can transfer all of those assets into one convenient rollover IRA.
More freedom of choice, control. Using a rollover IRA to manage retirement assets after leaving a job or retiring is a strategy that’s available to everyone. And depending on the financial institution that provides the rollover IRA, you could have a wide array of investment choices at your disposal to help meet your unique financial goals. As the IRA account owner, you develop the precise mix of investments that best reflects your own personal risk tolerance, investment philosophy and financial goals.
More flexible distribution provisions. While Internal Revenue Service distribution rules for IRAs generally require IRA account holders to wait until age 59½ to make penalty-free withdrawals, there are a variety of provisions to address special circumstances. These provisions are often broader and easier to exploit than employer plan 401k hardship withdrawal rules.
Valuable estate planning features. IRAs are more useful in estate planning than employer-sponsored plans. IRA assets can generally be divided among multiple beneficiaries, each of whom can make use of planning structures such as the stretch IRA concept to maintain tax-advantaged investment management during their lifetimes.In addition, IRS rules now allow individuals to roll assets from a company-sponsored retirement account into a Roth IRA, further enhancing the estate planning aspects of an IRA rollover. By comparison, beneficiary distributions from employer-sponsored plans are generally taken in lump sums as cash payments.
Efficient Rollovers Require Careful Planning
There are two ways to execute a 401k Rollover to IRA — directly or indirectly. It’s important you understand the difference between the two, because there could be some tax consequences and additional hurdles if you aren’t careful. With a direct rollover, the financial institution that runs your former employer’s retirement plan simply transfers the money straight into your new rollover IRA. There are no taxes, penalties or deadlines for you to worry about.
With an indirect rollover, you personally receive money from your old plan and assume responsibility for depositing that money from the 401k into a rollover IRA. In this instance, you would receive a check representing the value of the assets in your former employer’s plan, minus a mandatory 20% federal tax withholding. You can avoid paying taxes and any penalties on an indirect rollover if you deposit the money into a new rollover account within 60 days.
You’ll still have to pay the 20% withholding tax and potential penalties out of your own pocket, but the withholding tax will be credited when you file your regular income tax, and any excess amount will be refunded to you. If you owe more than 20%, you’ll need to come up with the additional payment when you file your tax return.
Potential Downsides of IRA Rollovers
While there are many advantages to consolidated IRA rollovers, there are some potential drawbacks to keep in mind. Assets greater than $1 million in an IRA may be taken to satisfy your debts in certain personal bankruptcy scenarios. Assets in an employer-sponsored plan cannot be readily taken in many circumstances.
Also, with a traditional IRA rollover, you must begin taking distributions by April 1 of the year after you reach 70½ whether or not you continue working, but employer-sponsored plans do not require distributions if you continue working past that age. (Roth IRAs do not require the owner to take distributions during his or her lifetime.)
Remember, the laws governing retirement assets and taxation are complex. In addition, there are many exceptions and limitations that may apply to your situation. Before making any decisions, consider talking to a financial advisor who has experience helping people structure retirement plans.
Investing requires resolve and a long-term vision, but it doesn’t actually have to involve the stock market. Here’s a guide to non-stock investing options:
Precious Metals
During the Great Recession, precious metal commodities like gold and silver were all the rage. As the stock market lost more than 50 percent of its value, gold and silver started a monumental rise in price. Gold went from around $600 per ounce in 2007 to peak at $1,900 per ounce in 2011.
The prices of the most popular commodities have since fallen from their peak; but had you invested in precious metals for that period of time (and others like it in history), you would have netted a healthy profit for your portfolio.
Relying solely on precious metals for your portfolio is extremely risky, though, and I wouldn’t suggest it. However, commodities do tend to act in an opposite manner to the stock market, and using precious metals as a hedge against volatility can be a great strategy.
Related >> Beginners’ Guide to Investing
Peer-to-Peer Lending
Peer-to-peer lending is one of my favorite alternative investments. It is the ultimate win-win for consumers. Consumer “A” gets a loan from Consumer “B” (and typically a large group of other investing consumers). Then Consumer A gets to pay off high-interest-rate credit card debt that stands at 20 percent with a personal loan that has a fixed term and a fixed interest rate of, say, 10 percent. This also means a fixed payment each month.
For their part, Consumer B and his friends get to enjoy a much higher rate of return than they would be able to reach with cash sitting in the bank. Both sides win: The borrower gets a lower rate and a fixed term to pay off the loan while the lender enjoys a healthy rate of return.
It’s true that some see peer-to-peer lending as a risky asset class because you are relying on strangers to pay the loan back. As with any type of investing, you don’t want to put all your eggs into one basket. Diversifying your portfolio of loans helps tremendously when you do experience a loan that goes unpaid. (Plus, P2P websites like Lending Club and Prosper have collection methods that kick in on borrowers who miss payments.)
I’ve become so enamored with peer-to-peer lending that I decided to embark on a little experiment. I divvied up about half of my Solo 401(k )contribution into both Lending Club and Prosper. The goal of the experiment was two-fold:
See how much interest I could make with this investment strategy.
Compare the two companies to see which one provided better earnings.
Overall, I was pleased with the results. Both companies netted double-digit returns for me, and I plan to add more money into these investments.
Owning a Business
Hands down, I think the alternative investment with the highest potential rate of return is running your own business. This isn’t without risk — the vast majority of small businesses die within five years — but if you can outlast the statistics, it can be extremely rewarding.
I used to work for a company providing financial advisory services. I took a huge leap of faith, started a business, and started blogging. My financial planning business has thrived and my blog has earned well over six figures since I started.
The beautiful thing about running a small business is not only are you the boss, but you can grow and maintain it as much as you want. Maybe you love your full-time job but you want to try out a new skill. Spend your nights and weekends trying it out, earn some extra dough, and keep working full time. Even a little side income can make a huge difference in your financial life, and when you don’t have time to maintain it, then slow down and focus on other priorities.
Related >> Best side jobs for extra cash
Real Estate
If you’re interested in…
-significant cash flow
-leveraging other people’s money
-enjoying large tax write-offs
…then real estate can be a great choice.
Let me be clear so I don’t sound like a late-night infomercial: Real estate investing is difficult. The learning curve is significant. When you first start, you *are* putting all of your eggs in one basket because you will only have one property to rent out or flip. A previous GRS writer shared his experience of rushing into real estate investing.
Many people have lost their shirts trying to get rich with real estate. Even Dave Ramsey went bankrupt based on a series of really poor real estate investments at the start of his career.
Amid all the horror stories about crazy tenants, poor cash flow, and something always breaking, there is some significant income to be had from real estate investing. What’s better is you don’t have to put 100 percent down on a house. You can usually get away with 25 percent to 35 percent as a down payment and let the bank fund the rest of the purchase. This leverage means you can leave more money in reserve for the inevitable issues that pop up or to expand into a larger number of properties faster.
Bonds
Nearing retirement? You’ll want to cut back on your stock allocation and put some of those funds into bonds. You might associate bonds with the stock market because they are so commonly paired with stocks in a portfolio, but technically bonds are traded on the bond market. You won’t generate sky-high returns here, but you will also cut out a majority of the volatility you get from stocks. Very few bond investments have lost 50 percent of their value for two years and then returned 100 percent the next four years.
Related >> Investing 101: How Bonds Work
Investing in individual bonds carries more risk because they are not diversified. If the company that issues the bond goes under, you might not get your principal investment back. However, bond ETFs and mutual funds can provide the non-stock exposure of bonds with the added benefit of diversification.
Certificates of Deposit
The lowly certificate of deposit or CD. Simple. Basic. Low return.
And sometimes. . . just what the doctor ordered.
A CD is a simple financial product where you hand over some cash to a bank or credit union for a set period of time and a set interest rate. If you have less than $250,000 in total assets at that bank or credit union — across *all* accounts — your investment principal is guaranteed by the FDIC. You literally cannot lose the principal balance if you use this method.
The upside of CDs is stability and guarantee. The downside is, at least right now, inflation will be eating away at your principal balance. Certificate of deposit rates are extremely low due to the Federal Reserve’s monetary policies but if rock-solid security is your number one investment driver, this is worth a look.
Related >> Best CD Rates
Annuities
Ewww. . . annuities. Don’t all personal finance bloggers hate annuities?
Listen, I get it. Annuities CAN be bad. Terrible, in fact. Fees, confusing contract terms, and an encyclopedia of fine print.
Most people don’t realize there are several types of annuities: fixed, immediate, variable, equity-indexed, and several more.
Hear me out. The right annuity with the right, sensible, un-scammy terms can be a solid foundation for a retirement portfolio.
In fact, Mike Piper, a previous GRS contributor, shared how you can create retirement income by purchasing the right annuity.
But like any investment, buy with caution. And be wary of commission-hungry, shady advisers just looking to make a sale vs. matching you with an investment that works toward your financial goals.
Yourself
Last but certainly not least, investing in yourself can pay dramatic dividends. I have personally done this in a variety of ways. Besides getting my CFP certification — certified financial planner — another major investment I made in myself was signing up for a coaching program.
I can’t blame you if you’re skeptical about coaching programs. I was too. It’s been more than three years since I signed up for The Strategic Coaching program and it has literally been the best investment I ever made. The mentoring has allowed me to grow my business significantly, and the return on what I paid has been tremendous. It makes a 9 percent return in the stock market look like nothing.
In all, when you think of investing, you don’t have to immediately think of bull or bear markets or even markets at all. There are other avenues to explore. Let us know what’s working for you in the comments section below.
The expectation that theFederal Reserve might be done with hiking rates spurred the mortgage market last week.
“Mortgage applications responded positively to a drop in rates last week, as the Fed signaled a potential pause at the current level for the federal funds rate in anticipation of inflation slowing and tightening financial conditions that will slow economic and job growth,” Joel Kan, Mortgage Bankers Association (MBA) vice president and deputy chief economist, said in a statement.
The MBA data shows that mortgage applications increased 6.3% for the week ending May 5 from one week earlier. The survey, conducted weekly since 1990, covers over 75% of all U.S. retail residential mortgage applications.
Borrowers’ demand followed a decrease in mortgage rates. The average 30-year fixed rate for conforming loans ($726,200 or less) fell to 6.48% last week from 6.50% the previous week. For jumbo loan balances (greater than $726,200), the rate declined to 6.33% from 6.37% in the same period, according to the MBA.
At HousingWire’s Mortgage Rates Center, the Optimal Blue data showed rates even lower, at 6.43% on May 8, compared to 6.50% on May 1. The data is calculated using actual locked rates with consumers across 42% of all mortgage transactions nationwide.
Mortgage rates reflect the expectation of the Fed’s next moves. On May 3, it raised its key federal funds rate by 0.25 bps to 5% to 5.25%. However, when announcing its decision, the Fed cut some language about inflation targets and spread hopes that it may pause the monetary tightening.
Mortgage Loan types
According to the MBA, refinancing applications jumped 10% from the previous week but were 44% lower than the same week one year ago. Refis comprised 28% of the total applications last week, compared to 27.2% the prior week. Meanwhile, purchase apps increased 5% from one week earlier and were 32% lower than last year’s levels.
“Lower rates from week to week have helped buyers in the market, but limited for-sale inventory remains a challenge for many homebuyers,” Kan said. “Refinance activity jumped to its highest levels since September 2022, although there is only a small pool of borrowers who can benefit from refinancing with rates at these levels.”
Regarding loan types, the adjustable-rate mortgage (ARM) share of mortgage apps decreased to 6.8% of total applications last week, the MBA data shows.
The Federal Housing Administration share fell to 12.1% from 12.5% the week prior. The U.S. Department of Veteran Affairs loans share rose to 12.9% from 11.3% in the same period. And the U.S. Department of Agriculture loans decreased to 0.4% from 0.5% of the total applications.
Last January I loaned money to a friend who was in financial crisis: Her vehicle was about to be repossessed. The transaction troubled me for a number of reasons, which I detailed at my personal website in a post called “I’m not a payday lender. But I play one on TV.”
During my trip to the East Coast I spent part of a weekend with “Monica” and her family. (Names have been changed to protect the profligate.)
When we made a Wawa* run, Monica didn’t want me to pay for my own Tastykake.** She threw it in with her own order, which totaled a little more than $34 and which included a coffee cake, a box of doughnut holes, and a $2-plus bottle of iced tea.
I started to feel uneasy. In the next 24 hours, the following additional red flags flew:
Monica bought about $100 worth of maternity clothes for her married daughter, who right now is still as thin as a candidate’s promise.
They have satellite television and DSL. Her kids have cell phones with text packages.
She mentioned she was planning to buy a snow blower, which after their military discount would run “only” about $1,000. (This despite the fact that she lives in a state where it doesn’t always snow in the winter and the fact that she has three healthy teenagers.)
Monica also mentioned that her van was about to hit more than 200,000 miles. Her daily commute is about 50 miles each way.
You know what wasn’t mentioned? Paying back my $800.
An Unsustainable Way of Life
This isn’t just a cranky post about being a human ATM. I knew when I gave them the money that I stood to lose it. Actually, I don’t think I will. It took 18 months for the first loan to come back, one $50 check at a time, but ultimately it was paid in full.
After making the second loan I mailed a personal finance book to Monica and her husband, “Gordon.” I also suggested tracking expenses in order to plug money leaks, and urged them to contact a debt management program through the National Foundation for Credit Counseling.
My note concluded, “I know it’s not easy to take a critical look at your life and to realize that no matter what happened in the past, you are responsible for the present. Change is never easy. But no one will help you except you.”
Monica wrote back, promising they’d work to cut expenses. She said she’d already advocated dumping the TV and cell phones.
Nine months later the television is still on, the teens are still texting, and Monica and Gordon are still living an unsustainable, paycheck-to-paycheck lifestyle. Here are a few more details, to show you just how deep their denial runs:
Company-wide layoffs are looming at Monica’s workplace.
Gordon has lower-back issues and is in his early 60s, so there’s no telling how much longer he’ll be able to keep his job.
Neither one has any retirement savings.
They don’t have an emergency fund. In fact, they have no savings at all.
That’s right: no cash is being set aside in case that layoff materializes or for when the vehicle finally dies. But there’s money for satellite television, texting and doughnut holes. Maybe a snow blower, too.
Treats Before Necessities?
I’d hoped that the first crisis — nearly losing their home — would force them to wise up. It didn’t. Want to know the reason they needed the second loan? They couldn’t make the van payment because it had taken all available funds to pay…
…wait for it…
Bounced-check fees and Catholic-school tuition for their youngest.
They had money to buy technology and other treats, sprinkling NSF checks along the way, but not for an essential recurring expense. Without a vehicle, Monica couldn’t get to work. But they didn’t think about that.
I worry deeply about their future. It’s a pretty safe bet that more things will go wrong. When does something not go wrong when you own a home and are raising three teenagers?
And when it does, they’ll be right back in oh-shit-now-what mode.
No More Bailouts
In that “payday lender” post, I wrote that I could no longer loan money. But I also admitted that I wasn’t really sure what I’d do if she called again, frantic for cash.
Now I’m sure.
Let me be clear: I’m not suggesting you abandon people who through no fault of their own have wound up holding the gooey end of the lollipop. For example, every other week I send $50 to my 88-year-old aunt. She uses the money for medical co-pays.
That biweekly payment is a line item in my budget. What isn’t in my budget any longer is bailouts. I’m a freelance writer who funds her own retirement and insurance and makes regular charitable donations. And at nearly 54 years of age, I have finally given myself permission to enjoy some of the fruits of my labors (frugally, of course).
It’s important to care about your fellow man. But not if you’re enabling rather than helping.
I’m Not the Loan Arranger
If my friends ask for help again, bailing them out won’t really help them. It would just allow them to postpone, yet again, the very hard and very necessary work of changing the way they spend.
I’m done. Maybe you should be, too. The next time you write a bail-out check, swearing it will be the absolute last loan? Make it stick. Frame it any way you like, but tell your sister/son/frat buddy that you can no longer afford to do this.
Maybe it’s that your own financial stability is at risk. Maybe it’s that you’ve given and given and nothing has changed. Maybe you want to use your money on something for yourself once in a while.
Whatever the reason, state gently but firmly that your career as loan officer is over.
You could find some other way to help, such as:
Offering to loan your personal-finance books
Helping to create a workable budget
Pointing out sites where people can learn smarter spending habits, such as Get Rich Slowly (duh) or MSN Money’s Smart Spending blog
If need is imminent — not much food in the house, kids need glasses — direct them to my previous GRS piece, “Unemployed? Underemployed? Here’s how to get help.”
If a relative or friend is a financial train wreck, you owe it to yourself to get off at the next station. It will be one of the hardest things you ever do — and probably one of the most necessary. For your sake, and for the other person’s, close the bank and keep it closed.
Readers: Have you had to cut off a family member or friend who needed rescuing but wouldn’t do much to help himself? Was it tough? Did you offer any non-monetary help, and did the person ever wise up?