Software Archives - Hanover Mortgages

Apache is functioning normally

December 8, 2023 by Brett Tams

LO Technology, Broker PPE Products; Training and Webinars This Week; 3.7% Unemployment

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LO Technology, Broker PPE Products; Training and Webinars This Week; 3.7% Unemployment

By:
Rob Chrisman

7 Hours, 19 Min ago

“What do you call James Bond having a bath? Bubble 07.” In different bond matters, mortgage rates will always be higher than Treasury rates, in part because of the prepayment risk in mortgages that doesn’t exist with Treasury bonds. With the drop in rates, sales management personnel at lenders are busy figuring out how best to remind the staff about EPO (early payoff) penalties levied by investors while at the same time working on ways to save money besides furloughing, cutting staff, outsourcing, and re-doing vendor contracts. The recent decline in rates and increase in applications is welcome: According to Curinos, November 2023 funded mortgage volume decreased 11 percent YoY and 10 percent MoM. In the Retail channel, funded volume was down 22 percent YoY and 10% MoM. The average 30-year conforming retail funded rate in November was 7.45 percent, 25bps higher than October and 85bps higher than the same month last year. (Curinos sources a statistically significant data set directly from lenders to produce these benchmark figures, and drills into this data further here.) Today’s podcast can be found here, and this week’s is sponsored by nCino, makers of the nCino Mortgage Suite for the modern mortgage lender. nCino Mortgage Suite’s three core products, nCino Mortgage, nCino Incentive Compensation, and nCino Mortgage Analytics, unite the people, systems, and stages of the mortgage process. Hear an Interview with nCino’s Ben Miller on incentive compensation data and origination cost reductions that are separating profitable from unprofitable companies in the mortgage industry.

Lender and Broker Products, Programs, and Services

Loan Vision exclusively serves the mortgage industry by providing software built by the mortgage industry for the mortgage industry. With Loan Vision, customers see improvements of 30%+ decrease in days to close the books, 20%+ reduction in accounting headcount, complete LOS to G/L automation, and improved reporting and visibility. Interested in learning how Loan Vision can help you run a more efficient and profitable company? Contact Carl Wooloff to schedule a call today.

When Encompass Lending Group set out to reimagine its borrower experience, it chose LiteSpeed by LenderLogix. “We understand every borrower is different. Our services are custom-tailored to every borrower, and we thought our technology should reflect that,” said Encompass Lending Group’s Paul Marsh, EVP of National Sales. Read more about their implementation here.

Seems like there is “AI” everything now. Washing machines, clothing, cookie dough? One place you should deploy AI is in helping your customers find their best opportunity. LoanCraft now offers its ViLO technology via an API (patent pending). ViLO is a virtual loan officer technology that asks your customers questions about their goals and needs, and provides offers along with tailored English-language recommendations. The API lets you easily incorporate this into your consumer facing technology, or LoanCraft will build your front end for you. Regents Financial is using ViLO, so you can see how it works here. Contact Jessica West at LoanCraft for more information.

In this market, hustle is everything. You can’t afford to waste a single deal, or a single minute. That’s why ReadyPrice has launched Shop, Lock, Deliver, an innovative platform designed to help independent mortgage brokers and their lenders save time and money. Now you can shop competitive loan offerings from multiple lenders, get rate lock guarantees in real time, receive underwriting findings, and deliver the borrower’s complete loan file to lenders, all on a single platform, at no cost to brokers. It’s already helping brokers around the country thrive and compete in the toughest market. Multiple lenders. One platform. Zero b.s. Come check us out today. ReadyPrice gives you the ability to manage your lenders, search loan product pricing across the wholesale channel, and deliver loans to the lender of your choice.

Events, Training, and Webinars

A good place for longer term conference planning is to start is here, and click on “events” for conferences in the future.

Today, December 8, is the next episode of The Mortgage Collaborative’s Rundown covering current events in the mortgage market for 30-45 minutes starting at noon PT, 3PM ET, in “The Rundown”. Listen to Rich Kuegler with Stewart Title!

Chief Sales Officer at Deephaven Tom Davis will join Rob Chrisman on a webinar you won’t want to miss. In today’s market, originators need Non-QM to fully serve borrowers and to stay competitive. Learning how to utilize and market Non-QM isn’t difficult when you partner with the right lender. Please find out how easy it is by joining the webinar on December 12th! Register now.

Tuesday, 12/12, is the next Mortgages with Millennials with Kristin Messerli and Robbie Chrisman. Tune in every Tuesday at 1PM ET to the weekly video show designed to empower mortgage professionals to tap into the millennial market. This show demystifies the psychology of first-time homebuyers and offers strategies to win more market share with a key segment of the market. Sign up for a weekly reminder with the link to join and a sneak peek into the next episode. Next week’s guest is Catalina Kaiyoorawongs, Founder and CEO of LoanSense.

Have you registered yet for LIRC23? Discover the newest developments in legal and regulatory compliance for residential lenders. Join California MBA at the Irvine Marriott Hotel on December 11 – 12 for the 2023 Legal Issues and Regulatory Compliance Conference. This is your opportunity to hear from some of the nation’s top industry experts and learn about the hottest topics. You’ll be informed and empowered, don’t miss out.

What are the forces that will shape the 2024 economy and real estate market? Find out at the Real Estate Forecast Summit: The Year Ahead on December 12, 1-2 p.m. ET. NAR’s Dr. Lawrence Yun and Dr. Jessica Lautz are teaming with expert economists and thought leaders to review 2023 and discuss their expectations for 2024. They will cover the residential and commercial markets, plus demographic and market outlook data. There is no cost to attend, but you must register in advance.

“As 2023 comes to a close, empower your financial strategy with insights tailored for lenders. Join CWDL for a webinar on Tuesday, December 12 as we recap the year in accounting and tax and identify what action you need to take before the year ends. Our mortgage banking experts will review tax legislation passed in 2023 and what’s coming for 2024, share tips to get year-end financials closed accurately and efficiently, discuss preparing for your audit, review HUD and GNMA reporting requirements, address going concern analysis, and more. Reach out to Kasey English to register for this free webinar, and emerge with actionable insights to take advantage of these last few weeks of 2023.”

Vince Furey, SVP of Sales for MeridianLink, has some valuable market insights and strategies that can help your credit union not only survive but also thrive in this changing landscape. Don’t miss the upcoming ACUMA Inside Track webinar on December 12th at 1 pm CST, where you can learn how to capture and serve this important market segment and take your mortgage loan program to new heights.

Wednesday the 13th, looking for more in-depth commentary on weekly mortgage news? Register here for “Mortgage Matters: The Weekly Roundup” presented by Lenders One. Every Wednesday at 2:00 PM EST/11:00 AM PT is a dive into a range of mortgage-related topics, including market trends, interest rate fluctuations, innovative mortgage products, and industry advancements. Listen to a unique mix of age perspective, expertise, and charisma to the screen, ensuring that the information is not only educational but also entertaining. Next week’s guest is.

Dec 13, at 12:00 PM PT, will be a webinar to learn about innovative approaches to recruiting loan officers in the mortgage industry. Heidi Iverson and NAMBA’s Tony Thompson will explore data-driven recruitment strategies with Mobility Market Intelligence (MMI), a powerful tool for Mortgage Lenders.

Join Curinos home equity experts Richard Martin, Ken Flaherty and Kinley Hicks on December 13th as they debut their new national home equity market forecast and discuss how home equity could impact growth initiatives and balance sheets in 2024. Register now.

Our very own MBA has some webinars, including California’s Corporate Climate Data Accountability Act, MBA on December 14.

For a deeper dive into Pennymac TPO’s new product and how to position it with your borrowers, contact your Account Executive, and register for their Power Your Business Webinar, “Home Equity Seconds Product Overview,” on December 14 at 10am PT/1 pm ET.

The Knowledge Coop’s new membership platform offers all state and federal Continuing Education courses in an engaging and exciting video format that you’re sure to actually enjoy. Want to give yourself a sharper competitive edge? They also offer in-depth training on specific topics like VA Loans and FHA within their Coop Academy. Get access to industry experts and connect with other mortgage professionals all in one space. Use Code Chrisman10 for 10 percent off your first year of membership here.

Join in for “Hot Topics” with the Single-Family Housing Guaranteed Loan Program. Free, Live, virtual training for all USDA lenders and real estate agents. Don’t pass up the opportunity to say YES to more potential clients. Embrace the GUS recommendation, Thursday, December 14, 2-3 PM ET.

National MI posted its upcoming December 2023 webinar sessions. December options include the following: Income Case Studies with Marianne Collins – December 12th at 1pm ET. 2024 Business Planning for Purchase Business with Bruce Lund – December 13th at 2pm ET. Maximize Your Relationships: The Art of Annual Mortgage Reviews with Rebecca Lorenz – December 14th at 1pm ET.

This month, catch up on the latest underwriting and processing trends at your convenience with Arch MI’s online videos and podcasts. Choose Arch MI’s wide range of course offerings that cover the essentials for mortgage professionals. On the 14th, the co-authors of HaMMR Digest, Arch Chief Economist Parker Ross, and Director of Real Estate Economics Leonidas Mourelatos, present their assessment of the market environment, where rates and home prices are heading, and the implications for mortgage professionals in the new year. Register for Arch MI Housing Update Webinar on December 14 at 1 p.m. ET.

Friday, December 15th, is next week’s episode of The Mortgage Collaborative’s Rundown covering current events in the mortgage market for 30-45 minutes starting at noon PT, 3PM ET, in “The Rundown”. Hear from MGIC’s Terry Aikin!

Capital Markets

As job markets loosen and employers are not as quick to hire, investors are betting on when central banks across the globe will begin rate cutting cycles. Yesterday’s private payrolls from ADP printed lower than analyst expectations ahead of today’s release of the November jobs report. Thoughts that the Fed is done tightening helped mortgage rates drop closer to 7 percent, the lowest level since August, according to this week’s Primary Mortgage Market Survey from Freddie Mac. 30-year fixed mortgage rates have fallen 76 basis points since the end of October.

Today brought the November payrolls report where forecasts didn’t see all that much variability from October. November nonfarm payrolls registered 199k versus 186k expectations. The unemployment rate came in at 3.7 percent when it was seen holding steady at 3.9 percent. Average hourly earnings were when the number was seen increasing 0.4 percent month-over-month and 4.1 percent year-over-year versus 0.2 percent and 4.1 percent previously. Later today brings preliminary December Michigan sentiment, which is expected to tick up modestly. We begin the day with Agency MBS prices and the 10-year yielding 4.25 after closing yesterday at 4.13 percent (the 2-year is up to 4.71) after the employment numbers.

Employment

“Freedom Mortgage is seeking the best Account Executives nationwide. We understand the best are not just product experts but, also relationship builders. We seek industry leaders. Freedom Mortgage Wholesale believes Account Executives are vital to our success. Freedom Mortgage has been creating success for 30 years. Our people and processes are time-tested giving us trusted stability, no matter market conditions. Our deep roots throughout the mortgage industry provide confidence for the future. Freedom Mortgage is 4EVER Wholesale. Join our strong group of Account Executives who average 15 years in industry and 10+ years at Freedom Mortgage. If you are the best and want to work with a financially stable company to build your future, contact us.”

Newrez Wholesale is thrilled to announce the appointment of Divisional Vice President John McElhone to the Inaugural Corporate Board of Directors for NAMB (National Association of Mortgage Brokers®). “For 50 years NAMB has been the leading voice for the mortgage industry, and I am proud of the organization for creating its corporate board of governors as it will increase NAMB’s impact on the industry,” said McElhone. “Thank you to NAMB for inviting me to join the board and I am eager to bring my decades of experience I’ve obtained in my professional career to each and every day.” Way to go, John! Learn more about the new corporate board.

“Are you a go-getter who embraces hustle and strives for growth? Are you passionate about helping others on the path to success? If you answered yes, we want you! Kind Lending is seeking knowledgeable Wholesale Account Executives with experience in the mortgage lending space. As one of the fastest growing mortgage lenders in the country, we’re building an upbeat and collaborative team that strives to put people first in everything we do, infusing happiness around every corner. Our people believe kindness matters and a client’s positive experience is everything. Join the #kindmovemovement and come grow your business with an expanded product offering and best in class operational experience! Contact: Delfino Aguilar, SVP TPO Production, 619.726.0377.”

JMAC Lending, an industry-leading TPO lender for more than 25 years, has hired Eric Yang as Executive Vice-President of TPO Sales. Formerly VP of TPO Sales at Pennymac, Yang will lead JMAC’s team of Account Executives for both wholesale and correspondent. “Eric’s business approach aligns with our company mission and values: trust, teamwork and integrity,” JMAC Lending’s President Christina Pham said. “We are excited to have Eric lead our growing sales team, where we will continue to provide excellent support to our lender partners, especially in this unique market environment.” “Eric can navigate complex market landscapes and deliver results,” Pham says. “He has a deep understanding of the industry, and we are confident that his expertise will elevate our sales operations.” Start lending with JMAC today! Click here join JMAC and sign up for marketing and rates, or contact sales. Let’s grow your business and fund more loans in 2024.

Thank you to Julie Cooper who reminded me that, in the Northwest, “State Departments of Commerce Housing Divisions or Housing Departments are hiring folks versed in mortgage, title, escrow and real estate. County and Municipal Departments of Community Development and non-profit housing developers in Washington State are hiring in record numbers, as well, developing affordable multifamily, single-family housing for ownership and rental. Julie observed, “I think one way forward for our industry is private/public partnership. These developments, acquisition and construction projects need mortgage companies to help with homeownership, especially those who can do community land trusts and every transaction needs a title insurance policy and escrow provider. Ultimately, we are all stakeholders in housing and it’s really cool to be part of these innovative programs.”

Download our mobile app to get alerts for Rob Chrisman’s Commentary.

Source: mortgagenewsdaily.com

Apache is functioning normally

December 8, 2023 by Brett Tams

Inside: Balancing a shoestring budget is possible and provides great rewards. With savings and budget strategies, you will find genius tips to manage your finances smartly!

With the rise of economic inflation, a growing number of people are finding the need for shoestring budgets to effectively navigate through their expenses.

Whether it’s planning for a low-cost holiday, initiating a frugal home makeover, or launching a start-up business with minimalist funds, the concept of a shoestring budget comes into play.

Moreover, it’s not only limited to low-income families but also extends to larger households and entrepreneurs that need to strategically lessen costs to achieve their goals. This is how many people reach financial independence sooner.

Then, let’s talk about a shoestring budget – an effective tool used to stretch finite resources, manage money wisely, and achieve financial goals, all while minimizing expenses.

If you’re familiar with the feeling of every dollar in your wallet counting, then this blog post is for you.

This post may contain affiliate links, which helps us to continue providing relevant content and we receive a small commission at no cost to you. As an Amazon Associate, I earn from qualifying purchases. Please read the full disclosure here.

What is a Shoestring Budget?

A ‘shoestring budget’ means to accomplish a task or a project within a very limited or bare minimum budget. The shoestring budget work strategy involves curbing discretionary spending dramatically to take care of high-priority expenses.

Understood across various contexts like travel, events, and lifestyle, the term implies an approach of resourcefulness and discovery of low-cost alternatives to achieve desired results.

Not exclusive to households with low incomes, working with a shoestring budget expresses the art of making what’s deemed impossible possible, navigating time constraints, and maximizing minimal available funds.

Shoestring Budget Idiom Definition

According to Merriam-Webster, the official definition of a shoestring budget is: ¹

“involving a relatively small amount of money for planned spending.”

‘Shoestring Budget’ Origin

The phrase ‘shoestring budget’ has an intriguing origin story that dates back to the 1800s in the United States. Fact-checks reveal that this term is indeed a reference to the precarious nature of a thin and weak shoestring, metaphorically implying a scarce and strained budget.²

Several theories have been proposed regarding its original use.

One theory suggests that the term ‘shoestring gambler,’ meaning someone gambling with a limited budget, might be the precursor to the idiom.
Another theory, based on British history, suggests that prisoners would lower a shoestring out of their cell to collect small donations from passersby, symbolizing the idea of managing with few resources.

Despite the debates around the phrase’s exact origins, it is undisputed that it signifies a tight budget situation.

How to live on a shoestring budget?

Living on a shoestring budget can be challenging but doable with a bit of dedication and planning.

Start by reviewing your regular expenses per month.
Cut down on unnecessary expenses as much as possible.
Monitor your small, daily expenses as they can add up significantly over time.
Refinance any existing debt to reduce interest payments.
Renegotiate contracts with utility providers, subscription services (consider uninstalling unused ones), or insurance for better rates.
Shop at thrift stores or choosing used items over brand new can also help you save.

The key to surviving a shoestring budget is self-control and determination to avoid impulsive spending.

Your goal is to prioritize essential needs over wants – a no spend challenge will help you with this. Remember, regular tracking and analysis of your personal site usage can provide valuable insights to manage your budget better.

How to travel on a shoestring budget?

Embarking on an adventure while on a shoestring budget requires creativity and pre-planning.

Be flexible with your travel dates, destinations, and mode of transport to take advantage of the best deals available.
Consider options such as budget airlines, off-peak travel times, and less touristy locations.
Staying in budget accommodations, or even trying out housesitting, can significantly cut down your lodging costs.
Eating at local fresh markets rather than restaurants will not only save you money but also provide a more authentic experience.
Plan your daily activities; consider free local events, parks, and attractions.
Always carry a water bottle to avoid buying expensive drinks.

With careful planning, traveling on a shoestring budget can make your journey all the more rewarding and memorable.

How to Save Money on a shoestring budget?

Saving money while on a shoestring budget might appear challenging, but it’s not impossible. Begin by monitoring your expenditures and identifying areas where you can potentially save money. Also, consider substituting costly activities with more affordable or free ones.

Every small action counts when you’re on a shoestring budget, and these savings accumulate over time. Remember, consistent small savings can make a significant difference in the long run.

Starting a business on a shoestring budget

Starting a business on a shoestring budget requires careful financial planning and innovative thinking. Indeed, it may sound challenging, but numerous shoestring startups have surged to success by optimizing their business budgets. It is all about crafting a solid business plan that clearly delineates your budget and the efficient utilization of each dollar.

Maintain focus on essential expenses only. These expenses might include mandatory licenses, essential software for business operations, or even crucial industry-specific tools. Leverage your personal and professional networks for free advice and resources.

Also, make the most of free or low-cost online marketing strategies as these can be vital to shoestring business budgets. You can use effective strategies, like using different social media platforms for marketing or creating a blog, to broaden the reach of your business.

Remember, having the capital to start is important but it’s secondary to a truly novel idea, intense hard work, and a strategic approach. So, let your creativity thrive and work passionately towards growing your business.

Shoestring Budget Examples

Shoestring Vacation
Wedding or Honeymoon
Home Improvement
Business on a Shoestring Startups
Savings Goals
Financing your Next Car

A shoestring budget is not always related to bigger projects. It can also refer to the scenario where the money required for daily expenses, buying an item, or completing a project isn’t enough. Here, the person has to be creative and find ways to stretch the money to make ends meet.

Practical Tips for Surviving on a Shoestring Budget

In this section, we will present practical advice for managing a shoestring budget, derived from case studies of my readers and my own personal experience who have thrived despite financial limitations.

Whether you are budgeting on a low income or looking to reach FI number faster, this guide has you covered.

1. Starting with a Budget: Your First Step

Before you embark on your journey of living on a shoestring budget, the first step is to define a realistic budget.

Understand your total earnings and list all your monthly expenses.
Identify which expenses are necessary (rent, utilities, groceries) and which are discretionary (eating out, entertainment).
Now create a spending plan such that it covers all necessities, allocates some amount towards savings, and leaves a little for leisure.

A well-defined budget will be your roadmap to financial management success.

Remember, the goal is to live within your means but also to ensure you aren’t depriving yourself.

2. Make Saving Automatic

A proven way to save money on a shoestring budget is to make saving automatic.

In such a method, you can set up an automatic transfer when you get paid. Another idea is to use Acorns, which rounds up purchases made with your debit card to the nearest dollar and deposits the change daily into your savings account.

Essentially, you’re saving without even noticing it! These little amounts add up over a period and can really bolster your savings.

Acorns

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Every purchase you make means an opportunity to invest your spare change! So coffee for $3.25 becomes a $0.75 investment in your future.

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3. Cut Back on Expenses

One of the most effective ways to operate within a shoestring budget is by reducing expenses. These can be small lifestyle changes, like cutting back on takeaways and preparing meals at home, walking or cycling instead of driving short distances or canceling unused subscriptions.

Specifically, you are looking to cut back your flexible expenses the most.

4. Look for Ways to Make Extra Money

Alongside cutting back on expenses, we continually stress the importance of finding ways to supplement your income. This could be from a side hustle, passive income, part-time job, or even a pay raise.

This additional income can help ease pressure on your shoestring budget. Also, it might provide an opportunity to explore new interests or passions. By diversifying your income streams, you make your financial situation more secure and flexible in unexpected circumstances.

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5. Utilize Free Resources

When it comes to saving money on a shoestring budget, the key is to utilize free resources and focus on essentials before spending money.

Thankfully, there are many vital ways to do this:

Find free things to do without spending money.
Use your local Buy Nothing group to find items before spending your hard-earned cash.
Learn and enhance your skills through free or low-cost online platforms like Udemy, Coursera, and YouTube.

Leveraging such resources can have a significant impact on your budget, leading to substantial savings for other meaningful expenses.

6. Look for Deals and Coupons

Another wise strategy when operating on a shoestring budget is seeking out deals and using coupons whenever possible. This game-changing approach can be applied to your grocery budget, dining, clothing purchases, and even travel.

Search for coupons in newspapers, magazines, or on coupon websites. Perhaps, subscribe to newsletters from your favorite retailers, a move that will provide straightforward access to information about sales and discount codes. Be mindful while shopping online or in stores, and always remember to rein in impulses, checking for any available discounts before purchasing.

Moreover, take advantage of holiday sales or Amazon Prime Day for larger purchases. Taking a little extra time to hunt for the best deals can significantly cut down your expenses and help you stick to your shoestring budget.

7. Utilize Household Resources

Leveraging what you already have in your household is another fantastic way to save money.

For instance, before running to the grocery store, take stock of what’s in your pantry and design meals around these items.
Also, consider repurposing and upcycling household items. An old ladder can turn into a chic bookshelf; jars can be used for storage.
Optimizing utility usage by switching off lights when not in use and limiting water usage can also reduce bills.

Start treating everything in your house as a resource with a specific purpose and value, including leftover food, old clothes, and used furniture. Every household item utilized efficiently can add up to visible savings over time.

8. Get Rid of Unnecessary Expenses

Perhaps the most crucial aspect of managing a shoestring budget is identifying and eliminating unnecessary expenses. These could include subscriptions to magazines or online services that you hardly use, dining out frequently, or buying expensive coffee daily.

Analyze where your money is going every month. You’d be surprised how the smallest changes can have a big impact on your budget. Eliminating even a few unnecessary monthly expenses can add up to substantial yearly savings.

Remember, the key is not to deprive yourself of everything but to find that balance between living comfortably and within your means.

9. Reduce Your Monthly Rent or Mortgage Payment

Want to slash a significant expense of your shoestring budget by considering ways to reduce your rent or mortgage payments? Could you move to a more affordable area or a smaller property?

For homeowners, look at refinancing your mortgage or negotiate better terms, resulting in lower monthly payments. Always remember to check if any fees would apply before proceeding with refinancing.
If relocation isn’t an option, consider renting out a spare room in your home or offering it on a vacation rental site.
If you are a renter, look at becoming a permanent housesitter.

Lowering these substantial expenses can make a huge difference in your budget, allowing you to allocate funds to other pressing areas, save, or even invest in building wealth.

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10. Be Creative When Paying Bills

When managing a shoestring budget, it can be helpful to get creative with the way you pay your bills. Sometimes, splitting payments between paychecks or paying on certain days can make managing your budget easier.

You could also consider bill negotiation services or check if you qualify for reduced rates based on your income. If meeting all payments becomes too strenuous, communicate with your service providers about it. They may have hardship programs or payment plans to assist during tough financial periods.

Remember, the key is to avoid late fees or penalties that could further strain your budget.

11. Leverage Technology to Save Time and Money

Make the most of technology to manage your shoestring budget. There are numerous mobile apps and online resources to help you track your expenditures, save money, pay bills, and even invest.

Budgeting apps can help you keep track of your income and expenditure, warn you when you’re nearing your limit, and provide valuable insight into your spending habits. Digital wallets can help you make secure transactions without the fear of losing cash.

Moreover, there are apps and websites to compare prices of different products, get the best deal alerts, apply instant coupons, or even earn cashback like Rakuten.

Quicken

Personal finance and money management software allows you to manage spending, create monthly budgets, track investments, retirement and more.

I have used this platform for over 20 years now.

Pros:

Birds-eye view of your complete financial picture.
Conveniently download your spending activities, and automatically categorize them (Quicken connects to over 14,000 financial institutions).
Track investments with it’s features like portfolio analytics, retirement goals, and market comparison.

Cons:

Little complex to use at first, the learning curve is moderate.
Yearly subscription-based model to use the platform.

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12. Participate in a Mini Savings Challenge

As a fun and effective way to boost your savings, consider embarking on a mini savings challenge! These challenges break the intimidating concept of saving into manageable, small steps. They can vary based on duration and the amount you’re aiming to save.

For example, in a 52-week challenge, you save $1 in the first week, $2 in the second, and so on, until you’re saving $52 in the 52nd week. By the end of the year, you’ll have saved $1,378!

Not only does it make saving fun, but it also allows you to develop a consistent saving habit, crucial when budgeting on a shoestring.

Frequently Asked Questions (FAQ)

If you’re fortunate enough to have a budget that’s more than a shoestring, the principles discussed still apply. Having more resources doesn’t mean you should ignore opportunities to save and invest wisely.

So, whether your budget is minimal or ample, consider adopting these healthy financial habits to achieve your financial goals. Make sure to sock away any extra money into a savings or investment account so you aren’t tempted to spend it.

Starting to invest on a small budget involves several key strategies. You must pay yourself first each and every time you are paid.

Set up an auto savings plan through a high interest savings account to make sure you start earning interest.
Contribute enough to your 401(k) to take full advantage of your employer’s match, if available, and consider mutual funds with an initial investment as low as $500.
Pick one solid company wherein you believe data and financials are stable enough to invest in, and buy 1 share.

If you receive a work or tax refund bonus, allocate it towards your investments instead of immediate spending.

Key Takeaways: Managing Money Well on a Tight Budget

Managing finances on a shoestring budget can be a daunting task, but with the right strategies in place, it can become a way to achieve financial health.

This is something I did when I was a stay-at-home mom looking for ways to make money.

In the grand scheme of things, managing a shoestring budget is less about the money and more about your mindset. Yes, limited resources can present challenges, but your attitude and creativity can make a difference.

Embracing frugality, taking control of your financial choices, and building resourceful strategies can turn your constraints into opportunities.

Money comes and goes, but the ability to manage it effectively is a life skill that will always be beneficial. The real wealth lies in your ability to live within your means and make the most of what you have – turning your shoestring budget into a stepping stone towards financial independence and stability.

Remember, every journey starts small.

Day by day, these tips can help you improve your financial stability and achieve your goals, regardless of your budget size.

Source

Merriam-Webster. “on a small/tight/shoestring budget.” https://www.merriam-webster.com/dictionary/on%20a%20small%2Ftight%2Fshoestring%20budget. Accessed December 5, 2023.
Grammarist. “Shoestring Budget – A Creative Expression for Limited Money.” https://grammarist.com/idiom/on-a-shoestring-and-shoestring-budget/. Accessed December 5, 2023.

Did the post resonate with you?

More importantly, did I answer the questions you have about this topic? Let me know in the comments if I can help in some other way!

Your comments are not just welcomed; they’re an integral part of our community. Let’s continue the conversation and explore how these ideas align with your journey towards Money Bliss.

Source: moneybliss.org

Apache is functioning normally

December 5, 2023 by Brett Tams

Of course, there’s a risk in handing over sensitive data. Identity theft is on the rise — the Federal Trade Commission received more than 1.1 million reports of it in 2022 alone. And the total number of data breaches has more than tripled, according to a 2022 report from Verizon.

The good news is, there are steps you can take to help protect your personal information. Some of these you’ll only need to do once, others are a habit that you’ll get the hang of with time.

Let’s take a closer look.

1. Use Strong Passwords

One of the most basic ways to protect yourself online is to use a unique password for each of your accounts — email, social media, mobile banking, you name it. Aim for passwords that are simple for you to remember but difficult for others to guess.

To create a strong password, keep the following tips in mind:

• Use a combination of upper- and lower-case letters, symbols, and numbers.

• Longer is usually better — aim for a password that’s at least six characters long.

• Never use personal information like your name, birthday, or email address.

• Random passwords are usually difficult for hackers to crack. Use a password generator if you need help.

💡 Quick Tip: Make money easy. Enjoy the convenience of managing bills, deposits, and transfers from one online bank account with SoFi.

2. Turn On Two-Factor Authentication

Take advantage of two-factor authentication (2FA) when possible. 2FA involves using one authentication method plus your username and password. Examples of 2FA include sending a numerical code to your phone or email, using fingerprint ID, or identifying you via facial recognition.

Certain accounts add an extra layer of protection by using authenticator apps like Google Authenticator, Authy, or Microsoft Authenticator. Typically, these apps generate a verification passcode, which you’ll need to enter when you log in.

3. Always Use a Secure Connection

There were concerns in the not-so-distant past about using a public wifi network to get online, as it could make your information vulnerable to hackers. But today, connecting through a public network is usually considered safe. That’s because most websites protect data through encryption, a process that involves scrambling information so it can only be deciphered using a unique encryption key.

To make sure your connection is encrypted, look for either a lock symbol or “https” to the left of the URL in a browser.

4. Know the Signs of a Phishing Scam

Phishing is the oldest trick in the book. Unfortunately, it also happens to be fairly successful.

Phishing emails and text messages can take many different forms: a link to confirm financial information, an alert about suspicious activity or log-in attempts on one of your accounts, an invoice you don’t recognize, a coupon for a free prize.

One effective way to help prevent falling for these scams? Be cautious about emails that have an attachment or embedded link, and don’t click or download anything from a source you don’t recognize. Keep in mind that legitimate companies usually won’t send you a link to change or update your payment information. If you’re not sure whether a message is authentic, you can call the company directly to confirm.

5. Check Your Credit Report

Checking your credit report regularly is a simple way to help protect your identity and financial security. You can request a free credit report from each of the three major credit reporting agencies, Equifax, Experian, and Transunion, by visiting AnnualCreditReport.com . It will detail all the information about your financial history, including credit card debt, student loans, missed payments and more.

When you receive your credit report, make sure all of the information is accurate. If you notice anything that is incorrect, report it to the credit bureaus and dispute any inaccurate information.

💡 Quick Tip: Check your credit report at least once a year to ensure there are no errors that can damage your credit score.

6. Monitor Your Credit Card and Bank Accounts

Keeping tabs on your credit card and bank accounts doesn’t just help with tracking your spending. It’s also a good way to spot mysterious charges.

Sometimes, a scammer will start with a small, unassuming charge and then quickly escalate their spending when they feel that a person isn’t paying attention. Look for strange names and keep tabs on every purchase, no matter how small.

7. Make Social Media Profiles Private

At first glance, this might seem like an unnecessary step. After all, if someone has your social security and your address, what more do they need? But strengthening your privacy settings on your social media accounts can go a long way to protecting your data in the future. Hackers can use photos, comments, and more to learn about you, which could make it easier for them to break into your accounts.

8. Tap Into Online Tools for Help

As data security becomes more important, the government is getting involved. If you think, or know, that your identity has been stolen, you can visit Identity Theft , the Federal Trade Commission’s website dedicated to cyber security protection. There are resources to help you troubleshoot ongoing issues, create a plan to protect your identity, report identity theft, and more.

9. Update Software

Yes, updating apps, web browsers, and operating systems takes time and may temporarily disrupt your work. But the reward — protecting your data — is worth the few extra minutes. Many times, software updates include new features or improved security.

Set updates to happen automatically so you always have the latest and greatest version.

10. If Your Identity Has Been Stolen, Consider Placing a Credit Freeze on Your Files

By placing a credit freeze or security freeze on your files, you can prevent a potential hacker from opening a new account in your name. The freeze restricts access to your credit report, which makes it difficult for a cyber criminal to open up any accounts.

Freezing your credit does not affect your credit score. However, as long as the freeze is in place, you won’t be able to open any new accounts in your name. If you’re planning to rent an apartment, apply for a job, or buy insurance, you’ll likely need to temporarily lift the freeze for a certain amount of time or for a specific party.

Check with the credit reporting company in advance to find out the costs and lead times. The process is daily involved, as you’ll have to request a credit freeze with all three agencies.

Also, it’s worth mentioning that a credit freeze doesn’t prevent a hacker from adding charges to your existing accounts

11. Consider Placing a Fraud Alert on Your File If You Suspect Identity Theft

This is a much easier option than placing a full credit freeze, as it only requires creditors to confirm your identity instead of freezing all your credit in the future. It may be a good step to take if you are concerned that someone might have been able to access your personal data but lack proof

The Takeaway

Data breaches and identity theft happen, but by taking some simple precautions, you can help keep your personal information from falling into the wrong hands.

Cybercrime isn’t just disruptive, it can also be expensive. That’s why SoFi has partnered with Blink by Chubb to help protect your finances with cyber insurance. Apply in just minutes and get your quote.

SoFi helps you safeguard your digital life.

Photo credit: iStock/ozgurcankaya

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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Source: sofi.com

Apache is functioning normally

December 5, 2023 by Brett Tams

Inside: Are you finding yourself struggling to cover unexpected expenses? This guide will teach you how to create a financial plan and budget that will help you avoid costly surprises.

Life is full of surprises, and not all of them are pleasant. Sometimes, these surprises come in the form of unexpected expenses, hitting when one least expects them.

This can leave you devasted financially. Over the years, we have been slapped with unplanned costs and left scrambling.

However, you can successfully navigate through the rollercoaster ride of money management.

The key is knowing “What are unexpected expenses?’ Along with the knowledge equips you to avoid or mitigate them.

This post may contain affiliate links, which helps us to continue providing relevant content and we receive a small commission at no cost to you. As an Amazon Associate, I earn from qualifying purchases. Please read the full disclosure here.

What are Unexpected Expenses?

In the realm of personal finance, unexpected expenses are costs you haven’t foreseen or budgeted for. They strike out of nowhere, leaving you scrambling to balance your finances.

These expenses differ from other cost categories such as fixed expenses (weekly, monthly, and recurring costs like rent) and variable expenses (those that do not happen regularly but vary in cost like groceries).

The crux lies in not being able to anticipate these unplanned expenses, making them disruptive to financial plans.

What is an example of unplanned spending?

Unplanned spending often occurs when there’s an unforeseen event that demands immediate financial attention.

Picture this scenario: You take your car for a routine inspection; however, the car fails the inspection due to a defective part that needs immediate repair. Initially, you hadn’t allocated funds for this, but now you have to deal with this unforeseen cost – a classic case of unplanned spending.

Common Examples of Unexpected Expenses

Unforeseen financial events can leave many unprepared and struggling, adding unnecessary stress. This section will delve into examples of typical unexpected expenses that individuals often encounter, providing key insights into how to efficiently incorporate these into your financial plan.

By understanding and preparing for these unexpected expenses, one can effectively mitigate the surprise factor they pose, promoting a healthier and more secure financial state.

We have overcome many times and you can too!

1. Medical Emergencies and Healthcare Costs

Medical emergencies are prominent examples of unexpected expenses. Even with health insurance, costs can amass, thanks to high deductibles, co-payments, and therapies not covered by insurance.

One factor is paying for the medical costs, but the other weighing factor is loss of income when dealing with medical emergencies or critical diseases like cancer.

Overcome this by:

Contributing the max each year to your Health Savings Account (HSA). This way you have a bucket of money just for medical expenses.
Look into short-term disability insurance that can cover part of your lost wages while you can’t work.

2. Automatic Home or Vehicle Repair Needs

Home and vehicle repairs often sneak up as unexpected expenses. Time, accidents, natural disasters — all can cause wear and tear that demands immediate repair. The consequences of ignoring these repairs can be hefty.

Similarly, significant home repairs such as fixing a faulty HVAC system or leaky roof can set you back by thousands of dollars.

Overcome this by:

Be proactive with routine maintenance. Take care of your house and car before problems escalate.
Save the same amount each month for home and vehicle repairs separately.

Personally, we save $100 monthly for car repairs as one is a beater car. This amount will be increased to $350 to start saving for a new car. Conversely for home repairs, we keep a minimum of $1000. This amount will fluctuate depending on when we last did a major repair. Since we just replaced our HVAC, our funds are lower.

3. Natural disasters

Natural disasters, such as hurricanes, earthquakes, wildfires, and floods, lead to unexpected spending. The impact of these events can cause significant damage to homes, cars, and other property, leading to repair and replacement costs.

Furthermore, these situations might also necessitate expenses for emergency supplies, temporary shelter, and other necessities. For instance, Hurricane Katrina inflicted a staggering $196.3 billion in damage, illustrating the overwhelming cost of such unpredictable events.¹

Overcome this by:

Make sure you have proper insurance whether it is renter insurance or flood/wildlife insurance. Also, make sure you have the proper amount of insurance. As highlighted by the Marshall Fire where most people were underinsured. ²
Storing cash on hand at home in case of an emergency. A cushion of money will always be helpful.

4. Increase in Bills

Monthly bills are a constant in our lives, but what’s not constant is their amount. Landlords may raise the rent when leases are up for renewal, utility companies could increase their rates, and insurance premiums may also inflate periodically.

All these scenarios lead to higher monthly expenses. For example, the U.S. energy costs per household rose by 13% in 2022 reaching the highest percentage increase since it was measured. ³

Being unprepared for these increases can cause significant financial strain.

Overcome this by:

Get one month ahead on your bills. Then, you will start building a cushion. Also, known as aging your money – thanks to YNAB.
Be proactive and realize that with inflation high. All of your bills will likely increase in cost.

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5. Overlooked Taxes

Overlooked taxes pose another source of unexpected expenditure.

A higher than expected tax bill can indeed surprise and unbalance your budget. This happened to my friend when she started her own fitness coaching business.

Uncertainties in estimating the exact tax amount, mathematical errors in filing, or an overlooked quarterly tax payment often culminate in an escalated tax bill. An audit from the IRS, though it may find no additional taxes owed, can lead to expensive fees from a CPA or tax attorney.

Overcome this:

Use a tax calculator to know what your estimated tax payment due.
Understand the common reasons you may owe higher taxes this year.

6. Pet Emergencies

Pet emergencies can bite a large chunk out of your budget without warning. For instance, if your cat suddenly starts having seizures or your dog gets hit by a car, the medical costs associated can spiral rapidly.

Emergency vet care can range between a few hundred dollars to several thousand dollars. For instance, a poisoning can range from $200-$3000. ⁴

Overcome this by:

Prevention methods like pet insurance can help you manage these costs effectively.
Decide in advance the maximum you are willing to spend on emergency vet care.

7. Delayed payments

Delayed payments may not be an external expense, but the repercussions can be just as financially challenging. This affects your income stream, potentially leading to difficulty in managing your financial obligations.

For example, if an employer goes bankrupt, salaries might be delayed or even indefinitely withheld. According to research, late payments can cost businesses $3 trillion globally, affecting both personal financial planning and business operations.⁵

This is a highly stressful situation.

Prepare yourself financially by:

Aging your money. By getting one month ahead of your bills, you can scrap through a delayed payment. YNAB coined this term.
Start saving for a large rainy day fund.

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8. Gifts and Special Occasions

Commemorating special occasions can lead to unexpected expenses. Life events such as birthdays, weddings, baby showers, and retirements, traditionally require gift-giving.

While typical gift giving on Christmas or birthdays should be part of your planned variable expenses. Saying yes to being a bridesmaid can definitely set you back a few thousand dollars. These are costs that we often fail to factor into our budgets.

Overcome this by:

Setting aside money monthly to cover gifts and special occasions.
If saying yes to a special event will hamper your finances, then you may have to politely decline the invitation.

9. Unexpected Travel Costs

Unexpected travel costs can significantly impact your budget, particularly when they arise from unplanned events such as attending a funeral or a wedding. The costs of last minute travel can vary widely depending on the destination, distance, and mode of transportation.

To manage these expenses, consider driving or taking public transportation for shorter trips, exploring less expensive lodging options, and creating a meal plan that limits dining out.

Overcome this by:

Setting aside a regular amount in a travel fund can help prepare for these unexpected costs that tend to crop up every year.
Decide if taking the unplanned trip is something you can feasibly manage with your current financial situation.

10. What You Forget to Budget for

Some subtle but regular expenses often sneak past our budget plans. This is why we have a full list of budgeting categories so hopefully, you don’t miss anything!

Consider online subscriptions and memberships: Many services offer free trials, but the charges kick in if not canceled. Other overlooked budget items may include pet care, parking fees, and toll fills—small amounts that may seem insignificant but can considerably dent your budget over time.

Overcome this by:

Review your checking account and credit card bills to see all of your expenses for the past year. Write down those unexpected expenses that came through.
Now, make a plan for how to spend your money in advance with your findings.

This helps you prepare for unexpected expenses

Here are simple tips to make sure you employ the habits of a financially stable person.

Tip #1 – Building an Emergency Fund

Building an emergency fund is a fundamental strategy to brace for unexpected expenses. This fund acts as a financial buffer, providing the economic security to cover unexpected costs without tapping into monthly budgets or savings aimed at other goals.

As a starting point, aim to save $1000 and then work your way up to save a month’s paycheck. Start small and build over time – every penny set aside helps to mitigate future financial stress.

Tip #2 – Properly Utilizing Sinking Funds

Sinking Funds are a sagacious tactic to prepare for larger, infrequent expenses. They allow you to systematically and gradually save up for anticipated financial obligations such as vacations, holiday gifts, car maintenance, etc.

By assigning a specific amount to save each month, by the time the need arises, you’ll have a pool of money ready. With platforms like YNAB, creating sinking funds becomes easier, letting you monitor your progress month by month.

This is how we have less frequent unplanned costs than we did in our 20s.

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Tip #3 – Saving for the Larger Rainy Day

Beyond smaller emergency funds and sinking funds, saving for the ‘larger rainy day’ is a crucial tactic to avoid financial duress caused by unexpected expenses. This refers to padding your savings to cover larger, more substantial financial shocks that might require more than just a few months’ worth of expenses.

It may take time to build such a fund, but even a small contribution each month can result in substantial savings over time.

Tip #4 – Pick up a Side Hustle

One way to strengthen your financial resilience against unplanned expenses is to start a side hustle. This could mean picking up extra shifts at work, selling handcrafted items online, or using skills like photography or writing for freelance work.

With the rise of the internet, making money online is really easy and simple to get started. We have a few side hustles to shield against unforeseen costs.

Tip #5 – Budget Properly and Stick to It

Budgeting is an essential line of defense against unexpected expenses. By tracking your income and comparing it against both predictable and variable expenses, you can calculate how much money can be saved each month.

Regular budget check-ins help ensure you’re staying on track, steadying your financial footing.

Quicken

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I have used this platform for over 20 years now.

Pros:

Birds-eye view of your complete financial picture.
Conveniently download your spending activities, and automatically categorize them (Quicken connects to over 14,000 financial institutions).
Track investments with it’s features like portfolio analytics, retirement goals, and market comparison.

Cons:

Little complex to use at first, the learning curve is moderate.
Yearly subscription-based model to use the platform.

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Tip #6 – Regular Review of Financial Plans

Regularly reviewing and updating your financial plans can serve as a preventative measure against unexpected expenses. Consider changes in income, expenses, and lifestyles, and adjust your savings and spending plans accordingly.

Tip #7 – Utilizing Digital Banking Features for Money Management

Digital banking tools have revolutionized financial management and can be part of a robust strategy to avoid unexpected expenses.

Features such as instant account balance checking, transaction alerts, set-and-forget savings transfers, budgeting tools, and proactive spending categorization help you grasp where your money is and how it’s being spent.

Tools to Ward Off Unexpected Expenses and Not Go into Debt

Unexpected expenses are inevitable, yet going into debt to cover these costs can lead to financial strain due to accumulated interest and fees.

Here are crucial steps in preventing unexpected expenses from turning into debt.

Dealing smartly with Credit Cards options

Credit cards can serve as a lifeline during a financial crunch but should be employed judiciously.

To smartly deal with unexpected expenses, consider options like 0% or low-interest credit card offers – these are particularly useful if you can pay off the balance during the introductory period. But tread with caution: high-interest rates can cause difficulties if you can’t pay off the balance in time.

Profit from Asking for a Paycheck Advance

In times when emergency expenses arise, asking for a paycheck advance can help. Some employers offer this as part of their policy to assist employees dealing with abrupt financial needs. A salary advance allows you to ‘borrow’ from your future earnings and repay the amount through future pay deductions.

Budgeting apps like Chime not only help in tracking expenses, but they also enable early access to your paycheck, up to two days before payday. This feature ensures you avoid running short of money at the end of the week or month, allotting you ample room to plan, track, and adjust your spending and savings.

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Exploring Personal Loans for Emergency Situations

Personal loans are a convenient option during urgent monetary needs. They are unsecured loans and therefore don’t require collateral.

However, they’re typically accompanied by relatively high-interest rates. Consider using online prequalification tools for personal loans to determine if you’re eligible and view potential interest rates.

Explore different lenders, but be wary of the terms and conditions to make sure you don’t invite more financial trouble.

Which of the following is true regarding unexpected expenses?

Unexpected expenses are costs that are not anticipated or planned for, such as sudden car repairs or medical emergencies.
To efficiently manage unexpected expenses, it’s recommended to make them a part of the monthly budget. A suggested approach is to analyze past “unexpected expenses”, then estimate their costs and timing, which can provide an estimate of how much should be saved each month.
While basing future expenses on past ones only furnishes savings guidelines, this method can prevent an unexpected expense from turning into a severe financial emergency.
Planning for unexpected expenses by setting aside money from each paycheck can protect individuals from unforeseen financial difficulties.
Understanding what types of unexpected expenses might occur can help in the development of strategies to handle them successfully, reducing the impact of any unpleasant financial surprises.

Yes, all of the statements above are true.

What is not true about unexpected expenses?

Unexpected expenses are entirely out of our control.
Unexpected expenses can be completely avoided.
These unanticipated costs only occur irregularly or infrequently.
You can’t prepare for unexpected expenses.

All of these statements are not true. While the occurrence of these expenses might be unexpected, they’re not entirely unpredictable. Many times, they are the result of poor financial planning or management as they are often unforeseen costs that were not anticipated or included in a budget.

Frequently Asked Questions (FAQ)

It’s advisable to aim for at least 3 to 6 months of living costs for an emergency fund. This acts as a buffer to cover unexpected expenses and offers financial security during unexpected life events like job loss or serious illness.

However, the “right” amount to save varies depending on your personal situation, lifestyle, and financial obligations. Always remember: saving something is better than saving nothing; start small and increase gradually as your income allows.

Financial experts generally advise having an emergency fund equivalent to three to six months of monthly expenses. This guidepost factors in expenses such as food, housing, utilities, transport, healthcare, and other necessities.

However, if you are in a volatile occupation or the sole breadwinner of the family, aiming for a larger fund may be prudent. Whichever your situation, remember it’s not about reaching the benchmark overnight; the key is consistency in saving.

Managing urgent financial liabilities without incurring debt hinges on proactive financial planning.

Building an emergency fund: Start small and deposit to accumulate enough to cover at least three to six months of essential expenses.
Proper budgeting: Maintain a budget, ensuring you live within your means and regularly contribute to savings.
Insurance coverage: Adequate insurance coverage can help circumvent the financial impact of medical emergencies or catastrophic events.
Extra income: Consider a side hustle for additional income to bolster your budget and increase your savings.

Plan Ahead to Avoid Unforeseen Expenses

While unexpected expenses are an inevitable part of life, their financial stress isn’t.

Through effective planning and budgeting, you can cushion their blow, ensuring they don’t throw you into financial turmoil. Around here at Money Bliss, we strive for our readers to have less stress with money.

No matter how well you plan, unexpected costs can still arise from time to time. They can happen quite regularly, which is why it’s crucial to include them in budget planning.

By setting aside a portion of each paycheck in a savings account, you can be better prepared for such costs when they arise.

Remember, every dollar saved is a step towards greater financial stability, helping you to navigate life’s uncertainties with confidence and peace of mind.

Now, make sure you are financially sound.

Source

NOAA.gov. “Costliest U.S. Tropical Cyclones.” https://www.ncei.noaa.gov/access/billions/dcmi.pdf. Accessed December 1, 2023.
Colorado Public Radio. “Most people who lost homes in the Marshall Fire were underinsured, Colorado insurance regulators say.” https://www.cpr.org/2022/05/02/most-people-who-lost-homes-in-the-marshall-fire-were-underinsured-colorado-insurance-regulators-say/. Accessed December 1, 2023.
U.S. Energy Information Association. “U.S. residential electricity bills increased 5% in 2022, after adjusting for inflation.” https://www.eia.gov/todayinenergy/detail.php?id=56660. Accessed December 1, 2023.
BetterPet. “Average emergency vet costs: what to expect.” https://betterpet.com/emergency-vet-costs/. Accessed December 1, 2023.
Mastercard. “Your real-time guide to real-time payments.” https://www.mastercard.com/news/perspectives/2023/real-time-payments-what-is-rtp-and-why-do-we-need-instant-payments/. Accessed December 1, 2023.

Did the post resonate with you?

More importantly, did I answer the questions you have about this topic? Let me know in the comments if I can help in some other way!

Your comments are not just welcomed; they’re an integral part of our community. Let’s continue the conversation and explore how these ideas align with your journey towards Money Bliss.

Source: moneybliss.org

Apache is functioning normally

December 4, 2023 by Brett Tams

Looking to learn the best ways to make money while you sleep? Do you ever feel worn out from your regular routine and tired of struggling to manage your money? Just picture being able to earn money even when you’re sleeping, without having to work long hours. In this article, I will show you 19…

Looking to learn the best ways to make money while you sleep?

Do you ever feel worn out from your regular routine and tired of struggling to manage your money? Just picture being able to earn money even when you’re sleeping, without having to work long hours.

In this article, I will show you 19 ways to help you reach financial freedom by earning passive income, such as while you sleep.

Having different ways to make money might seem like something crazy, but with the right plan and some hard work, it can actually happen.

In fact, I earn income all the time while I am sleeping and I love it. Now, that doesn’t mean that it’s easy. Some of the ways below will be harder than others, and they may take up a lot of time still. But, you may be able to earn money throughout the day from the hard work that you put in.

Key Takeaways

There are many ways to make money while you sleep, such as by blogging, selling digital products on Etsy, renting out storage space or real estate, putting your money in a high yield savings account, earning dividends, and more.
Some are easier to start than others – so make sure to think about the pros and cons, such as how much time it may take you or how much money you will need to start (your minimum investment!).

19 Best Ways To Make Money While You Sleep

Below are 19 ways to make money while you’re asleep.

1. Blogging

My favorite way to make money while I’m sleeping is by blogging, and it is a great way to make passive income while you sleep. I have been blogging for many years now (since I started Making Sense of Cents, I’ve made more than $5,000,000 from my blog), and I am able to work and earn money while I am asleep, such as by selling digital products, display advertising, and through affiliate marketing.

This is because readers read my blog posts throughout the day and night, even when I am not working. I have blog posts and advertising on my site, for example, that earn me income throughout the day.

So, what is a blog? A blog is like the article you’re reading now, written and published on a website. It’s basically a collection of written content. You can start a blog about many different topics, such as finance (like my blog!), recipes, family, health, wellness, pets, sports, outdoors, travel, and more.

Other similar ways to make money in your sleep include starting a podcast or a social media account, such as on TikTok or Instagram.

Recommended reading: The 25 Most-Asked Blogging Questions To Get You Started Today

10

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2. Affiliate marketing

If you want to learn how to make money overnight (such as when you’re sleeping), then my absolute favorite way is affiliate marketing.

This is one of the main ways I make money on my blog, but you don’t need a blog to do affiliate marketing either. You can do affiliate marketing on Instagram, Facebook, Pinterest, an email list, and more.

Affiliate marketing is when you share products or services from other companies with readers, subscribers, or people that you know. When someone buys through your referral link, you get a commission and earn some money from the company.

Here’s an example: Let’s say you write about a book on your blog and provide a link to it. If someone buys that book through your referral link, you get a commission.

You’ve probably bought things through affiliate marketing many, many times over the years. I definitely have!

Recommended reading: Affiliate Marketing Tips For Bloggers – Free eBook

3. Selling printables

Making and selling printables is another good way to make money without much active effort.

Printables are digital items that people can download and print at home. They can be things like games for a bridal shower, checklists for grocery shopping, planners for managing budgets, invitations, coloring pages, quotes designed to be printed and hung on walls, and more.

I buy printables all the time, and so do other people. In fact, I bought a printable the other day for my daughter – one that would help her learn the alphabet that I could print out at home for her.

Making printables can be a passive way to earn money. You only need to make one digital file for each product, and you can sell it as many times as you want. All you need is a laptop or computer and an internet connection, which makes it a low cost way to start a business.

Recommended reading: How I Make Money Selling Printables On Etsy

Do you want to make money selling printables online? This free training will give you great ideas on what you can sell, how to get started, the costs, and how to make sales.

4. Investing in real estate

Investing in real estate is a popular way to make passive cash flow while you sleep.

By purchasing rental properties, you can earn a steady flow of rental income from tenants and guests. Also, your property’s value will most likely appreciate over time, which can increase your net worth.

You can invest in residential properties, commercial real estate, short-term rentals (such as starting an Airbnb), REITs (real estate investment trusts), and more. There are pros and cons of each, so you will want to think about that before you get started.

Recommended reading:

5. Starting a YouTube channel

Starting a YouTube channel is another way to make money while you sleep. This is because you can add affiliate links to your videos, generate ad revenue, form brand sponsorships, and sell products within videos as well.

You’ll need to create videos that entertain, educate, or inform viewers, and get as many views to your videos as you can (for the most part, more page views usually does mean more income).

As your YouTube content becomes more popular, you will earn passive income from past videos while working on new content.

Recommended reading: How I Grew From 0 Subscribers To Over $100,000 On YouTube In Less Than One Year

6. Dropshipping

Dropshipping is a type of business where you sell items on an online store, but you don’t do the shipping. Instead, you have a supplier that does the shipping for you.

So, this means that you don’t need to keep any products in stock yourself.

That doesn’t mean that this is easy, though – you have to find trustworthy suppliers and make sure your customers get their orders on time. You will also need to create a website, find a way to differentiate yourself from other dropshippers, take pictures of the items you are selling, answer customer questions, and find ways to grow your store.

The types of items that you can sell in a dropshipping store include clothing, electronics, home decor, pet supplies, luggage, stationary, craft supplies, books, and more.

7. Online courses

I have made over $2,000,000 from selling courses over the years – courses that I have personally created.

Making and selling online courses is a great way to earn money at any time of the day – even while sleeping.

Some examples of courses that can be created include:

Parenting and family
Health and wellness
Woodworking
Dog training
Standardized tests preparation
Playing the guitar
Teaching a language
Traveling
Painting
Cooking

And so much more!

I have taken courses on all sorts of topics over the years, such as baby sleep classes, personal finance, credit card rewards, and so much more.

Creating an online course is one of the fastest ways to use your time, increase your earnings, and help more people.

Recommended reading: How I’ve Made Over $1,000,000 From My First Course Without a Big Launch

8. High yield savings accounts

A high yield bank account is a low-risk method to make extra cash while you sleep.

These types of savings accounts earn a higher interest rate than a regular savings account, so your money grows faster.

You will want to make sure that you pick a trustworthy bank and check the interest rates regularly because they can go up or down. Some people move their money into high yield savings accounts often so that they can get the highest interest rates.

Remember, these accounts usually over the long run have lower interest rates compared to stocks or real estate, but they give you a stable and secure way to earn money.

I personally use Marcus by Goldman Sachs as they have a very high rate. You can get up to 5.40% at the time of this writing through a referral link bonus. According to this high yield savings account calculator, if you have $10,000 saved, you could earn $540 with a high yield savings account in a year. Whereas with normal banks, your earnings would only be $46.

9. Dividends

Buying stocks that pay dividends is another way to earn money while sleeping.

When you invest in these stocks, you get a portion of the company’s earnings on a regular basis.

Here’s how dividends work: If you have shares of a company that gives you money because you own them, that’s called a dividend. So, if you own 10 shares of Company XYZ, and they give you $5 in dividends every year, you’ll get $50 in total for that year. Usually, companies give out dividends four times a year. In the example, the $5 they give you every year will likely be divided into $1.25 for each quarter (four times a year).

Recommended reading: What Are Dividends & How Do They Work? A Beginner’s Guide

10. Rent out your garage

If you have extra land or space in your home that you’re not using, you can make money by letting other people use it for storage.

You can rent storage space for things like cars, boats, boxes, and more. This could be your garage, driveway, closet, basement, attic, or even just a shelf.

A website where you can list your storage space is Neighbor. On this site, you can make between $100 and $400 or more every month. How much you earn depends on how much people in your area want to rent and what kind of space you’re renting out.

Recommended reading: Neighbor Review: Make Money Renting Your Storage Space

10

You can use this website to list your unused space for rent and make up to $15,000 per year by doing so. With Neighbor, you can rent out your garage, driveway, basement, parking lot, shed, warehouse, carport, attic, street parking, or even a closet.

11. Hosting webinars

Webinars are like online classes or workshops about specific subjects (I’ve included a list below of some examples). If you’re an expert in something, you can record a webinar and charge people to attend or sell products and services related to the topic during the webinar.

You can also record your webinars and let people watch them whenever they want, which can bring in money while you are sleeping or on vacation.

For example, you could host a webinar about:

Starting an e-commerce store – Teach participants the ins and outs of setting up and running a successful online store.
Digital marketing strategies for small businesses – You could share online marketing techniques to help businesses grow their online presence, such as tips for TikTok, Instagram, Pinterest, Google SEO, and more.
Stock market investing for beginners – You could share advice and tips for newbies in the world of stocks, mutual funds, index funds, bonds, S&P, and investment portfolios.
How to make money with affiliate marketing – You could teach the strategies behind successful affiliate marketing sites.
How to invest in fine wine – Or, any other type of investment! If there is something specialized that you invest in that is different from normal, you may be able to generate interest in your webinar.

And so much more.

12. Peer-to-peer lending

Peer-to-peer (P2P) lending is when you lend money to people or businesses who need loans, and they pay you back with interest.

Websites like LendingClub and Prosper let you spread out your money to lots of borrowers, which lowers the risk if someone can’t pay you back.

As borrowers make their payments, you get a part of the interest, which adds to your passive income streams that you can make without working.

With a peer-to-peer lending site, people can borrow money from a group of lenders like you and me, rather than from a traditional financial institution like a bank. People use peer-to-peer lending sites for all sorts of reasons such as debt consolidation, home improvement, small business financing, investment opportunities, and more.

13. Selling stock images and graphics

If you like taking pictures, you can make money in your sleep by selling stock images on websites like Shutterstock, Getty Images, or Adobe Stock.

People buy stock images for all sorts of reasons, such as to put on their website, within articles and blog posts, on social media, and more. I buy stock images all the time because they can help to make a blog post more enjoyable to read (you can find several stock images within this blog post, in fact).

A great thing about stock content websites is that they can bring in money even when you’re not actively working. You take pictures, put them on the site, and they can keep making money for a long time.

Some common types of pictures that you can sell include travel, business, people, food, animals, health, fashion, sports, and more.

Recommended reading: 18 Ways You Can Get Paid To Take Pictures

14. Start a membership site

Creating a membership site where people pay a regular fee (such as each month or each year) for special content, resources, or services is a way to make money.

Some examples of membership sites that you can start include:

Stock image library – You can sell a collection of pictures or videos that subscribers can use for their own projects (such as their own business). Subscribers pay for access to this media library. I personally have been paying for a stock photo membership for years, and I think they are amazingly helpful.
Newsletter – Send valuable and special content straight to your subscribers’ email inboxes regularly where you charge a subscription fee for access.
Mastermind groups – You can form small, focused groups of individuals who come together to support and challenge each other in achieving their goals, and you charge a membership fee for participation. I have seen mastermind groups go for anywhere from free to tens of thousands of dollars a year to participate.
Freelance job board – You can start a site where freelancers can find real job listings and opportunities. Members pay for access to these job listings because they want to find real jobs that pay (instead of having to weed through fake ads or low paying ones).
Consulting or coaching services – You can give personalized advice, coaching sessions, or access to a private community for members looking for guidance in a specific area, like life coaching or business consulting.
Fitness membership – You can create a platform with workout plans, meal plans, and wellness tips. Members pay a monthly fee for access to this content.
Digital downloads library – You can create a library of downloadable resources like ebooks, templates, or software. Subscribers gain access by becoming members.
Community forum – You could create a community around a shared interest or hobby where members can engage in discussions, ask questions, and share experiences, and you charge a fee for access.
Online courses membership – You can start a platform where you have courses on a specific subject, like photography, cooking, or digital marketing, where subscribers then pay a monthly fee to access the content.

Keep in mind, the secret to a successful membership site is giving real benefits to your subscribers. So, whether it’s great content, a helpful community, or useful resources, make sure your members feel like they’re getting what they paid for so that they keep their subscription for months and years to come.

15. Sleep studies and mattress testing

Taking part in sleep studies and mattress testing will most likely not be a long-term, reliable source of income, but it can earn you some extra money while you literally sleep.

You can find these by researching local sleep clinics or mattress companies that have paid studies or testing. Many universities also pay for sleep studies, such as the Harvard Division of Sleep Medicine.

The amount of money you can make depends on the specific study or testing, but it can be an interesting way to earn some extra money or get a free mattress for your time.

16. Vending machine business

Running a vending machine business can be a good way to make money, and you can sell different kinds of products. You may be able to earn over $1,000 a month with a well-run vending machine business.

Here are some ideas of what you can sell in a vending machine:

Snacks and drinks:
- Chips
- Candy
- Nuts and seeds
- Cookies
- Soda
- Bottled water
- Energy drinks
- Juices
Healthy and organic food:
- Granola bars
- Dried fruits
- Nut mixes
- Organic snacks
- Low-calorie drinks
Hot drinks:
- Coffee (regular, decaf, specialty)
- Tea
- Hot chocolate
Frozen treats:
- Ice cream
- Frozen yogurt
- Popsicles
Fresh food:
- Sandwiches (pre-packaged)
- Salads (in sealed containers)
- Fruit cups
- Yogurt parfaits
Personal care and hygiene items:
- Tampons and pads
- Toothbrushes and toothpaste
- Hand sanitizer
- Makeup
- Vitamins and supplements
- First aid kits
- Pain relievers
Electronics and accessories:
- Phone chargers
- Headphones
- Power banks
Office and school supplies:
- Notebooks
- Pens and pencils
- Sticky notes
- USB drives
Specialized items:
- Fishing bait and supplies
- Beauty and skincare products
- Baby items (diapers, wipes, toys, snacks)

Recommended reading: How I Make $7,000 Monthly With A Vending Machine Business

17. Amazon FBA

Amazon FBA (Fulfillment by Amazon) is where sellers store products in Amazon’s fulfillment centers, and Amazon handles customer shipping, returns, and customer service on the seller’s behalf. By using FBA, you can sell a variety of products without worrying about storing inventory or handling shipping logistics.

You would be finding the products to sell, though. Even if you have no experience selling on Amazon, you can earn money selling household goods, toys, books, electronics, and so on.

If you want to learn more about starting an Amazon business, I recommend signing up for this free training that will teach you how to sell products on Amazon and make $100 to $500 per day.

Recommended reading: How To Work From Home Selling On Amazon FBA

18. Write a book

People can buy books at any time of the day, including while you are sleeping.

Self-publishing online platforms, such as Amazon KDP (Amazon’s Kindle Direct Publishing platform), allow you to reach a broad audience without the need for a traditional publisher.

Writing your own book is a great way to make money from home, and there is probably something helpful that you could write about (even if you think otherwise!). One very popular topic right now is romance novels, in fact.

Recommended reading: How Alyssa is making $200 a DAY in book sales passively

19. Develop and sell an app

If you have technical skills, developing and selling an app can be a way to make money overnight while you are sleeping.

Creating your own app, whether it’s a helpful tool, a fun game, or something else, can help you to make passive income.

Even though it will take some work and money up front, once your app is in the app stores, it can generate revenue no matter the time.

Some ideas for apps that you could create include a budgeting tracker, meal planner, fitness tracker, meditation app, travel itinerary planner, and more.

You will want to do some research, and make sure that there are people who want to use the app that you are thinking about creating, of course. You could start brainstorming ideas by thinking about what kind of app you think could be helpful in your life to have.

Frequently Asked Questions On How To Make Money While You Sleep

Below are answers to common questions on how to make money while you sleep.

What is passive income?

Passive income is money you earn without actively working, and instead, it comes from investments, businesses, or assets that require minimal effort on your part. Now, that doesn’t mean that making passive income is easy, as you will most likely have to put in a lot of work in the beginning to get started. But, it can be well worth it to make money at any time of the day. Passive income is personally my absolute favorite way to make money.

Which businesses make income overnight? What businesses make money while you sleep?

A few businesses that can generate income even when you’re not actively working are online stores, affiliate marketing websites, and selling printables. These businesses run online, making them accessible to customers 24/7 so people can use them.

What did Warren Buffett say about making money while you sleep?

Warren Buffett, a successful investor and businessman, is quoted as saying, “If you don’t find a way to make money while you sleep, you will work until you die.” This goes to show how important it is to find ways to make money without constantly working a regular 9-to-5 job.

What is the best way to make money while you sleep? – Summary

I hope you enjoyed this article on how to make money while sleeping. As you can see, there are many full-time jobs and side hustles to make money while you sleep such as:

Blogging
Affiliate marketing
Selling printables
Investing in real estate
Starting a YouTube channel
Dropshipping
Selling online courses
Putting your money in high yield savings accounts
Dividends
Rent out your garage
Hosting webinars
Peer-to-peer lending
Selling stock images
Start a membership site
Sleep studies and mattress testing
Vending machine business
Amazon FBA
Write a book
Develop and sell an app

Do you want to learn how to make money while you sleep?

Source: makingsenseofcents.com

Apache is functioning normally

December 3, 2023 by Brett Tams

Looking to start your own business? You’re not alone. Some 76% of Gen Z and millennials dream of being their own boss, according to a 2022 Microsoft report.

While launching your own business allows you plenty of professional freedom, it can also be expensive. As you’re creating your business plan, one question you’ll likely face early on is, how much does it cost to start a business?

The average small business owner spends around $40,000 in their first full year. But that amount can vary based on a number of factors, including the size, type and location of your business.

Let’s take a closer look at the startup costs of different types of businesses and common ways to cover the expenses.

Typical Small Business Startup Costs

The old adage is true: You have to spend money to make money. And unfortunately, some of the biggest business costs can come during the startup phase, when you are defining your business goals, finding a location, purchasing domain names, and generally investing in the infrastructure.

In order to make sure your business is on firm financial footing, it’s important to estimate your small business startup costs in advance. Here are some common ones to keep in mind:

Payroll

Many small businesses start out as a company of one. But if you’re planning on having employees, salary will likely be one of the biggest costs you’ll have. After all, offering an attractive pay and benefits package can help you recruit and retain top talent.

In addition to wages, you might also want to budget for other types of payroll costs, such as overtime, vacation pay, bonuses, commissions, and benefits.

Office Space

No matter what your business is, you’ll need somewhere to work. Are you leasing a storefront, or will you buy a membership to a co-working space or startup incubator? If you’re planning to work from home, consider whether your new business will increase your internet or utility bills.

And don’t forget about the supplies you’ll need to do the work. Depending on your business, this could include things like computers, phones, chairs and desks, paper supplies, or filing cabinets.
💡 Quick Tip: Some lenders can release funds as quickly as the same day your loan is approved. SoFi personal loans offer same-day funding for qualified borrowers.

Inventory

If you’re starting a business that sells products, you’ll need to have some inventory ready to go. Calculating stock as part of your start-up costs ensures that you can buy your product in advance, so that you’re ready to serve customers from day one.

Licenses, Permits, and Insurance

Some businesses, especially storefronts and restaurants, require more legal leg work than others.

For example, if you’re starting a native-plants landscaping business, will you need a permit? If you’re starting a new bar, will you need a liquor license? Licenses and permits vary by city and state, but most come with an application fee.

Likewise, your new business may require one or more insurance policies to protect you in case of future litigation, so be sure to factor in the cost of monthly premiums.

And don’t forget about the costs associated with registering your business. Whether you plan to set up shop as a sole proprietorship, corporation, limited liability corporation or other business entity, you’ll need to pay a nominal fee. The amount will depend on the state where you operate.

And if you plan on enlisting the help of a lawyer, accountant or tax professional to get your business up and running, add those potential costs to your budget as well.

Advertising

Getting the word out about your new business is one of the most important things you can do to ensure that business starts off strong. Whether you want to advertise on social media or take out a billboard, your startup costs should reflect money you plan to put toward taking out ads for your business.

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Differences in Startup Costs Based on Industry

The actual cost of starting a small business can vary by business and industry. Here’s what you might be looking at if you want to start a few common types of small businesses.

Online Business Startup Costs

Like brick and mortar stores, the cost of doing business online varies depending on the type of business you have. But in general, you’ll need to budget for things like:

• Web hosting service and domain name

• Web design and optimization

• E-commerce software

• Payment processing

• Content creation and social media

If you’re selling products, you will need to invest in inventory and shipping. If you’re providing services, you may need to hire employees. All of these costs can be significant.

However, one benefit of starting your small business online is that you may be able to keep other costs low. For example, if you can conduct business from home, you may not need to rent office space, which can be a major savings. If you’re able to do the work without purchasing inventory or hiring employees, the startup costs can be even lower.

Average startup cost: $500 to $20,000 or more (depending on your business)

Storefront Startup Costs

If your business idea requires a physical space, your startup costs might range from $1,000 for a small kiosk inside a mall or park to more than $69,000 for something like a home goods store.

Although $69,000 might seem like a daunting number, remember that many smaller, independently owned stores began with a much smaller budget.

Average retail startup cost: $39,210

Restaurant Startup Costs

If you’re betting on bringing in bank by selling your grandma’s famous bánh mì, you could be looking at startup costs of anywhere from $40,000 for a used food truck or cart to up to $3.7 million to buy a franchise restaurant. Typically, small restaurant costs, including coffee shops, fall somewhere in the $80,000 to $3000,000 range.

Average startup cost: $375,000

How to Finance Your Startup Business

Many who want to start a business are overwhelmed by the initial costs, but there are several ways to fund your passion project.

Friends and Family

Perhaps one of the most common ways to raise money for your small business is to ask friends and family to invest in you.

Friends and family loans can be ideal for financing a new small business because you can negotiate low-interest rates, flexible pay-back schedules, and avoid bank fees. Of course, borrowing money from friends and family can quickly become complicated by family drama, so make sure to agree on conditions before taking out a family loan.

Outside Investors

When we hear about startup companies, we frequently hear about so-called “angel investors” sweeping in to fully fund new businesses. But there are other practical ways to fund your small business with outside investors.

Some small businesses use crowdfunding platforms to find investors who each contribute a small amount, and others use startup funding networks to find investors looking to fund their specific type of business. Outside investors want to know that your business is likely to succeed, so you’ll need a solid business plan to land outside funders.

Personal Savings and Investments

Most people end up covering some of their small business start-up costs out of their own pocket. Self-funding your new business venture can be the most convenient option. After all, if you’re your own funder, you don’t have to worry about family drama or picky investors. And putting your own money on the line can be an extra motivation to make sure that your business is set up to succeed.

Of course, it can seem overwhelming to save up enough money to fund your small business. Luckily, there are simple strategies to effectively manage your money.

Business Loans

If you’re looking to purchase equipment, inventory, or pay for other business expenses, a business loan might make sense for you.

There are various types of small business loans available, each with different rates and repayment terms. Note that in some cases, lenders may be reluctant to give loans to a brand-new business. You might need to put up some type of collateral to qualify for funding.

Personal Loans

A personal loan can be used for just about any purpose, which can make it attractive for entrepreneurs who want to turn their passion project into a reality. These loans are usually unsecured, which means they’re not backed by collateral, like a home, car, or bank account balance.

Personal loan amounts vary. However, some lenders offer personal loans for as much as $100,000. Most personal loans have shorter repayment terms, though the length of a loan can vary from a few months to several years.

While there’s a great deal of latitude with how you use the funds, you might need to get your lender’s approval first if you intend on using the money directly for your business.
💡 Quick Tip: Before choosing a personal loan, ask about the lender’s fees: origination, prepayment, late fees, etc. One question can save you many dollars.

The Takeaway

Going into business for yourself can be personally and professionally fulfilling. But it can also be expensive, especially if you’re starting from scratch. Estimating your startup costs early on can help ensure you’re on solid financial ground from the get-go. Labor, office space, and equipment are among the biggest expenses facing many entrepreneurs, but there are smaller fees and charges you’ll likely need to consider.

Fortunately, small business owners have no shortage of options when it comes to covering startup costs. Dipping into personal savings, or asking friends and family to invest are popular choices. Taking out a business loan or personal loan is another way to help finance a new business. The money can be used for a variety of purposes, and that flexibility can be especially useful when you’re just starting out.

Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. Checking your rate takes just a minute.

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SoFi members with Qualifying Deposits can earn 4.60% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Qualifying Deposits means one or more deposits that, in the aggregate, are equal to or greater than $5,000 to an account holder’s SoFi Checking and Savings account (“Qualifying Deposits”) during a 30-day Evaluation Period (as defined below). Qualifying Deposits only include those deposits from the following eligible sources: (i) ACH transfers, (ii) inbound wire transfers, (iii) peer-to-peer transfers (i.e., external transfers from PayPal, Venmo, etc. and internal peer-to-peer transfers from a SoFi account belonging to another account holder), (iv) check deposits, (v) instant funding to your SoFi Bank Debit Card, (vi) push payments to your SoFi Bank Debit Card, and (vii) cash deposits. Qualifying Deposits do not include: (i) transfers between an account holder’s Checking account, Savings account, and/or Vaults; (ii) interest payments; (iii) bonuses issued by SoFi Bank or its affiliates; or (iv) credits, reversals, and refunds from SoFi Bank, N.A. (“SoFi Bank”) or from a merchant.

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SoFi Bank reserves the right to grant a grace period to account holders following a change in Direct Deposit activity or Qualifying Deposits activity before adjusting rates. If SoFi Bank grants you a grace period, the dates for such grace period will be reflected on the APY Details page of your account. If SoFi Bank determines that you did not have Direct Deposit activity or $5,000 in Qualifying Deposits during the current 30-day Evaluation Period and, if applicable, the grace period, then you will begin earning the rates earned by account holders without either Direct Deposit or Qualifying Deposits until you have Direct Deposit activity or $5,000 in Qualifying Deposits in a subsequent 30-Day Evaluation Period. For the avoidance of doubt, an account holder with both Direct Deposit activity and Qualifying Deposits will earn the rates earned by account holders with Direct Deposit.

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Source: sofi.com

Apache is functioning normally

December 2, 2023 by Brett Tams

Inside: Do you find it difficult to stick to a budget, despite trying your best? If so, you’re not alone. Budgeting can be a tricky task, but by understanding flexible vs variable expenses, you will better manage your money.

Creating a budget is a fundamental step in shaping your financial well-being, and understanding how your expenses fit within this budget is essential.

These are expenses that can be easily modified or eliminated when monetary constraints arise, thus playing a significant role in stabilizing your financial health.

This post may contain affiliate links, which helps us to continue providing relevant content and we receive a small commission at no cost to you. As an Amazon Associate, I earn from qualifying purchases. Please read the full disclosure here.

What is a flexible expense?

A flexible expense is a budget item you can adjust or modify as per your financial situation. This wiggle room inherent in such costs is not vital for survival, unlike the rigidity of fixed costs such as rent or health insurance.

Typically, flexible expenses mirror variable expenses.

You can manage these flexible expenses depending on your financial goals or constraints, making them an important part of budget planning.

Fixed Expenses	Variable Expenses	Flexible Expenses
A fixed expense is a cost that remains constant and is paid at regular intervals, such as mortgage payments, car insurance, or cell phone bills, making it predictable and crucial for budgeting purposes.	A variable expense is a cost that changes over time, fluctuating based on individual decisions and circumstances, encompassing both essential spending like groceries and discretionary purchases like movie tickets.	A flexible expense is a non-essential cost in your budget that you can adjust, reduce, or eliminate to save money, encompassing diverse categories like vacation spending, beauty treatments, electronics, dining out, and entertainment services.

What is an example of a flexible expense?

There are countless opportunities for flexible spending, some of which we might not even realize. Common examples include:

Vacations: A sunny beach holiday might be highly appealing, but not always financially feasible. There are alternative, less expensive options such as a staycation.
Beauty treatments: Items like haircuts, manicures, and massages fall into this category.
Electronics: The urge to upgrade to the latest smartphone or tablet model is understandable, but if your current device works fine, that’s an expense you can postpone.
Food and dining: While we all need to eat, the amount spent on eating out, or grabbing a latte on the go can be adjusted.
Entertainment: Expenses here include streaming services, cable television, concerts, or movie outings. There are plenty of free things to do that don’t cost money.

Remember, the trick lies in distinguishing between what you need and what you want.

Distinguishing fixed expenses from flexible expenses

The main difference between fixed and flexible expenses lies in their ability to change.

Fixed expenses, like your rent, or more specific elements such as a lease payment, represent costs that you’re obligated to cover regularly. They’re usually consistent in amount and include items such as utilities, phone bills, insurance premiums, and car payments. Handling these sensibly is crucial as postponing or canceling these could lead to severe consequences.

On the flip side, flexible expenses vary and can be adjusted or cut out entirely depending on your financial situation. These can range from dining out and entertainment costs to clothing purchases and vacation expenses. By taking control of your flexible expenses, you can ensure financial stability, even when incomes fluctuate.

Flexible Expense List Questions to Ask

Are you incurring this expense out of necessity or is it more of a luxury or desire?
Do I have control over the total amount spent on this expense or is it a constant obligatory payment?
Can this expense be eliminated or reduced without drastically affecting your lifestyle or basic needs?
Does this expense vary from month to month or can it be controlled based on your financial situation?
If you were to face financial constraints, could this expense be readily cut back or postponed?

If you answered yes to these questions, then you have a flexible expense.

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Which budgeting method works best for flexible expenses?

Choosing the best budgeting method varies greatly depending on your financial habits, goals, and discipline.

Regardless of the budgeting method you choose, remember that flexible expenses are the last thing that you prioritize in your budget.

Option #1 – Envelope System

The “Cash Envelope System” works well for many, where you allocate a specific amount of money for each flexible expense category in separate envelopes. You only spend what’s set aside in each envelope, assisting in keeping variable and flexible costs in check.

The envelope system allows you to save in advance for flexible expenses you want like a vacation or new car or even new clothing.

Option #2 – Pay Yourself First

Alternatively, the “Pay Yourself First” budget prioritizes savings. Something we like to do around here at Money Bliss.

Right after receiving your paycheck, you immediately transfer a designated amount into your savings or investments. The remaining money is then divided among your fixed, variable, and flexible costs.

Option #3 – Zero Based Budget

Lastly, the “Zero-Based Budget” is a method where every dollar you earn is allocated to a particular expense category, leaving you with a zero balance at the end of the month.

This 3 layer system starts with your fixed expenses, then moves to variable expenses. If you have money left over, then you can work on including those fun money flexible items or a deposit into savings account.

In essence, the best budgeting technique is one that fits your needs and aids in achieving your financial goals.

YNAB

Enjoy guilt-free spending and effortless saving with a friendly, flexible method for managing your finances.

Pros:

Comprehensive approach to budgeting, helping you plan monthly budgets based on your income.
Offers expert advice, making it suitable for those who require an in-depth, forward-thinking budgeting strategy.
Superior synchronization skills make it the winner in this area.
YNAB has extra features like goal setting for budgeting, shared budgeting tools for partners.
Option to manually add and upload transactions from accounts each month.
YNAB prioritizes user privacy.

Start 34 Day Free Trial

YNAB vs Mint

How do you budget for flexible expenses?

Budgeting flexible expenses may seem daunting initially, but with a systematic approach, it becomes manageable.

Here are the steps to follow:

Calculate Your Income: Identify your total monthly income after taxes, this is your starting point.
Identify Your Monthly Expenses: Take your bank and credit card statements; evaluate your spending habits to identify your expenses. Start with your fixed expenses as those are priority. Then move to variable and flexible expenses as your budget allows.
Set a Budget: Employ the 50/30/20 rule (or any other method that works best for you) to divide your income between essentials, flexible expenses, and savings.
Track Spending: Regularly monitor your spending against the budget set.
Adjust and Control: After monitoring, make necessary adjustments to control your expenditures.
Consistency: Continually follow these steps for a few months, change gets easier over time, and so will managing flexible costs.

Budgeting, especially flexible budgeting, allows for financial adaptability, enabling companies to seize unexpected opportunities or navigate emergencies without severe monetary strain.

How tracking your spending can help

Learning to recognize your overspending by diligently tracking can offer an enlightening picture of your financial habits. It aids in understanding where your money is being utilized and exposes any neglected ‘financial leaks’. A no spend challenge can help you pinpoint these issues.

Planning and then tracking your spending is crucial in forming an effective budgeting strategy. This is where a calendar can come in handy.

Tracking can be achieved manually via saving receipts, noting down amounts, or through digital means such as online budgeting tools or apps like YNAB or Tiller Money. With regular tracking, you can regulate your spending. Thus, ensuring you stick to your set budget, and make informed future financial decisions.

Tiller Money

Your financial life in a spreadsheet, automatically updated each day.

Tiller is the fastest, easiest way to manage your money with the unlimited flexibility of a spreadsheet.

Update your finances in one place, so you can take control of spending, optimize cash flow, and confidently plan your financial future.

Pros:

Tiller automatically updates Google Sheets and Microsoft Excel with your latest spending, balances, and transactions each day.
No more tedious data entry, CSV files, or logging into multiple accounts.
You can customize everything and finally track your money, your way.

Try Tiller Free

Tips and tricks for handling flexible expenses in your budget

Optimizing your budget while dealing with flexible expenses need not be a daunting task. Here are some tips to help:

Prioritize Savings: Always try to prioritize savings. One of our money saving challenges can help you.
Use Sinking Funds: This is money set aside to be used at a future time for a specific purchase.
Control Impulsive Spending: Limit frequent shopping trips, reduce eating out, and avoid buying unnecessary gadgets.
Substitute Luxuries with Alternatives: Option for budget-friendly alternatives like watching movies at home instead of the cinema, or cooking at home instead of dining out.
Utilize Budgeting Tools: Make use of budgeting apps or financial management tools that can track spending and help maintain your flexible expenses.
Practice Mindful Spending: Stay aware of your financial goals and make purchasing decisions that align with those goals.
Utilize Discounts: Seek opportunities for discounts that can contribute to these savings. For instance, some car insurance companies provide a discount for annual payments rather than monthly.

Remember, the goal isn’t to eliminate flexible spending entirely. But to strike a healthy balance that aligns with your long-term financial health.

Quicken

Personal finance and money management software allows you to manage spending, create monthly budgets, track investments, retirement and more.

I have used this platform for over 20 years now.

Pros:

Birds-eye view of your complete financial picture.
Conveniently download your spending activities, and automatically categorize them (Quicken connects to over 14,000 financial institutions).
Track investments with it’s features like portfolio analytics, retirement goals, and market comparison.

Cons:

Little complex to use at first, the learning curve is moderate.
Yearly subscription-based model to use the platform.

Save 40% on New Memberships

Our Review

FAQ

By tracking and managing these expenses, you can have more control and insight into your finances as this is where most unmindful spending happens.

It enables you to understand better where your money goes each month and helps avoid unnecessary spending. When you curtail these expenses, you free up money that can be used to pay off debts, save for future goals, or invest.

Therefore, skillful handling of flexible expenses allows you to maintain a well-rounded and healthy financial state.

Rent generally falls under the category of fixed expenses rather than flexible ones as it is typically a set amount due regularly.

Ready to Solidify Your Budget with these Examples of Flexible Expenses

Conclusively, budgeting with flexible expenses is an essential skill for effective financial management and becoming financially stable.

The key lies in balancing your needs and wants, recognizing and eliminating unnecessary spending while prioritizing necessities. Making use of budgeting tools, like the 50/30/20 rule, can also be advantageous and strategic.

Remember, it’s crucial to be aware not only of your income but also of where your money is spent, as gaining control over your flexible expenses can help avoid financial strain and achieve your financial goals. Always strive to adapt your spending habits to best fit your financial situation.

Now, learn how to handle unplanned expenses.

Did the post resonate with you?

More importantly, did I answer the questions you have about this topic? Let me know in the comments if I can help in some other way!

Your comments are not just welcomed; they’re an integral part of our community. Let’s continue the conversation and explore how these ideas align with your journey towards Money Bliss.

Source: moneybliss.org

Apache is functioning normally

December 1, 2023 by Brett Tams

[Note from editor: The “Mastermind Showcase” highlights companies and news from members of the GEM. Today’s showcase: Bluestreak IoT]

BlueStreak IoT optimizes operational processes for commercial business owners and facility managers by adding an intelligence layer to existing products and enabling smart and connected features. It sits at the center of information from sensors, devices, networks, and software that combine to deliver valuable, actionable data and automate functions across retail, hospitality, entertainment, health & fitness, real estate, and other commercial venues. Its services are uniquely positioned to enhance the efficiency and performance of services in commercial real estate, including ScentBridge’s ambient scent delivery, indoor air quality monitoring, clean air as a service, resource utilization, replenishment management and performance compliance.

It works with companies to explore “Smart Products as a Service” opportunities and offers a comprehensive range of services, which includes strategy and IP consulting, hardware and software design, as well as commercialization support.

What we like: Offering differentiated IoT solutions by adding a smart layer to existing operational tools that increases performance and uptime of “Product as a Service” tools while lowering operational costs.

Learn More

*Part of 2023 REACH Commercial Class

Source: geekestateblog.com

Apache is functioning normally

December 1, 2023 by Brett Tams

Most of us have experienced getting fired from our jobs at some point in our lives. Some were for petty and weird reasons, others were valid—whichever it is, here are the 18 reasons people get fired!

Caution! Some were so crazy and hilarious that you won’t believe they really happened.

1. Exchanging Alcohol for Shrimp

Photo Credit: Shutterstock.

One person shared, “I gave the fry guy an alcoholic beverage from the bar in a kids cup. He used to hook me up with coconut shrimp and fiesta rolls. They fired both of us lol. I wonder how Jamaar is doing nowadays.”

The second person replied, “I drank alcohol from a kid’s cup and got fired. I just wanted to try Angry Orchard. It wasn’t even good. I made the mistake of leaving the cup amongst other employee cups and a manager found it. I don’t even like drinking and it was just extra. But I am glad I am not the only person let go for drinking alcohol from a kid’s cup out there! Lol.”

2. Manager Scheduled Me During Class

Photo Credit: Shutterstock.

Somebody commented, “My manager kept losing my class schedule. Worked at a subway. I had class two days a week. Several times he put me on those days anyway. I gave him multiple copies every time. Owner took me off the schedule for ‘Calling out too much’. When I showed the owner proof he said it was too late and they already hired someone else. This was 12 years ago. I’m still mad.”

Another Redditor replied, “I always hated the ‘taken off the schedule’ bull. Just fire me officially instead of taking the cowards route. This happened to me as well when I did not tell the general manager about a floor manager switching a product display TV to football one day. To be clear, she asked me, ‘Why did you not tell me?’ So she already knew it happened and was mad that I did not say anything. So I got ‘taken off the schedule’ because the other manager did something against policy and I did not narc.”

3. They Fired Me Before I Started

Photo Credit: Shutterstock.

“A business I went to long ago was hiring, and I got the job. Right after I signed all the paperwork, the department manager comes in and asked who I am. I tell him I was just hired as a temp. Manager says he never authorized any hiring and fired both me and my boss on the spot. I did not work for this company at all, and they fired me,” said one.

The second person replied, “I had a similar experience. I was interviewing for a sales position and I made it all the way up the ladder through three different managers, to the advertising director. Had a great interview. He told me I would be the future of this industry shook my hand, led me to the HR manager’s office, clapped me on the back, and said to her, ‘We’re hiring him. Start the paperwork and I’ll see you Monday.’

“She was pregnant, tired, and annoyed. She looked at me with disgust and said, ‘We eliminated that position yesterday. We’re not hiring anyone.’ I asked if the director or managers knew that. She said they should. What followed was an embarrassing two weeks of promises that they would make a spot for me and weak apologies from the hiring managers. Ooof. Hired and fired within seconds.”

Finally, the third added, “They did you a favor. Working for a company that is broken and dysfunctional would be a nightmare.”

4. I Requested a Raise

Photo Credit: Shutterstock.

One user commented, “I was denied a raise by HR after consistently working 60-70 hours weeks, and my VP (who had supported and requested the raise for me) told me to stop putting in the extra time, work my 40, and spend that extra time applying to new jobs. Within a month, a meeting was called to ‘mutually part ways’ because my work wasn’t getting done. I was gratified to learn that they had to hire two people to do my job after I left.”

Somebody else added, “Bet that felt good knowing they had to pay two people for what you did all by yourself. Glad you got outta there though!”

5. Fired for Putting in My Two-Week Notice

Photo Credit: Shutterstock.

Somebody shared, “I got fired once for putting in my 2-week notice. The only other time I’ve gotten fired was working for a trade company during the first week. I was a supervisor, and there was a second supervisor on site. I got a call that my wife had been rushed to the hospital, which was literally less than a mile away. I asked the other supervisor if I could go to attend to her, and he said, ‘Sure, no problem, I’ve got things here. Go.’

“I returned to the job site later to find the boss there, and he let me go on the spot for leaving the team ‘Without a supervisor’. He knew what had happened, and still fired me. I won’t lie, that one kind of [made me mad].”

Then somebody else added with a similar experience with their wife, “Happened to my wife. She was due her first commission check, but they fired her on the spot when she gave notice. Literally about 100 bucks too.”

6. Fired for Sitting Down

Photo Credit: Shutterstock.

One user said, “For doing my job too quickly and sitting down the rest of the time. Gas station cashier 3rd shift.

“Me: ‘Why should I stand when I’m the only person in the store?’

“Manager: ‘It’s more professional to stand than sit.’

“Me: ‘Then why do you sit in your office?’”

Another one replied, “I never understood that. Not once have I walked into an establishment, seen an employee sitting, and gone, ‘Wow. He’s unprofessional.’ I literally don’t give a f-, as long as you do your job.”

“Especially gas stations. If anything, they’re the kind of jobs I would expect to see someone sitting,” added another.

7. “I’m Only Here Until Something Better Comes Along…”

Photo Credit: Shutterstock.

Somebody shared their hilarious job-related experience during the interview, “This isn’t why I got fired, but this is why I didn’t get a job. I was 16 and looking to work at a Dairy Queen as my first job. My mom drove me to the interview and I was super nervous.

“She looked me in the eye and said, ‘Just be honest and be yourself, and you’ll do fine.’ I walked into that interview, and when he asked me, ‘How long do you think you’ll work here?’ I responded, ‘Until something better comes along…’”

“OMG. My parents had to coach me on how to get a job when I started hunting. They were wondering why none of the jobs I had applied to had called me back so they started asking questions about the application process. Turns out you shouldn’t be honest on those personality assessments, at least not to the extent I was. They basically told me to answer as if I were another person,” added the second person with a similar experience.

Then somebody else added, “Amazing! Around the same age I was asked, ‘How would your friends describe you?’ and honestly answered. ‘They say I’m the crazy one.’ Weirdly did not get that job.”

8. They Handed Me a Check and Walked Me Outside

Photo Credit: Shutterstock.

“I talked my way into a job at a software company when they put a hiring notice in a local paper. I had no idea what the software did. I still don’t. They hired me as a trainer and no one ever explained what the product was. I did a few weeks where I was trained on the software but literally none of it ever made sense to me. It was like they were speaking gibberish.

“One day I showed up, a lady I had never seen before gave me a check, and walked me out to the parking lot. No one even ever said ‘you’re fired’ or anything. It’s one of the strangest things that ever happened to me,” shared somebody.

“That reminds me of a time that I got escorted out early from a group interview. The company was a little suspicious altogether, and the interviewer was even more sus because he was just wearing all black (polo and jeans) and was absolutely decked out in gold jewelry. Looked like he stepped out of a mob movie or something,” the second person replied.

9. Because My Wife Was Ill

Photo Credit: Shutterstock.

One user said, “I missed a lot of work because my wife got brain cancer. They called me in for a meeting and said, ‘Sorry, we are downsizing and letting a lot of people go’. They didn’t fire anyone else, including a co-worker who was caught fabricating reports.”

Then another one added with a question: “They didn’t announce the layoffs over the intercom in alphabetical order, did they?”

10. Job Abandonment; But I Was at the ER

Photo Credit: Shutterstock.

Somebody stated, “I went to the emergency room instead of work. Came back with an ER note and they said, ‘We won’t be needing that. Can you come with us?’ I was 18 and it was my first full-time job.”

“I had pneumonia and a doctor’s note. Came back to work a week later wheezing and puffing an inhaler. Got fired the next week. Jokes on them. I still got unemployment benefits when they tried to fight it. Doctor’s notes are good things,” added another person.

Finally, the third added, “I went to a funeral and took the three paid days off and called off a fourth because it was my grandmother and we were very close. They called it job abandonment.”

11. Working With a Felony

Photo Credit: Shutterstock.

Somebody commented, “My parole officer wanted to make sure I actually had a job, so he went to my employer listed on my file to surprise visit me on the job. I did home wiring so I worked at different job sites and rarely in the office. He called me to say he was going to charge me with a violation for lying to him about my whereabouts (this could’ve landed me back in prison for my remaining 10.5 years sentence).

“The owner of the company had to speak with him and vouch for me. My parole office didn’t charge me, but the owner sure did fire me that day. Finding a job with a felony isn’t an easy thing, and it wasn’t long before my PO threatened to charge me with a violation if I didn’t find a job soon.”

The second person replied, “What a f- clown process. I’m sorry you went through that.”

12. Let Go to Hire the Manager’s Girlfriend

Photo Credit: Shutterstock.

Somebody said, “I was a kid and just started at a local pizza place. I was let go couple weeks later because a pizza chef from Chicago had moved into the area and needed a job so it was a business decision that I totally understood. Week later, went to go get my last check and asked how he was doing, the girl up front was like, ‘pizza chef from Chicago? The only new hire was the manager’s new gf.’”

Somebody else replied, “I got let go in favor of hiring the manager’s gf once too. Very irritating.”

13. Fired for Being 10 Minutes Early Instead of 20

Photo Credit: Shutterstock.

“I refused to come in 15-20 mins early unpaid for my shift. I was always 5-10 min early but they decided they wanted me there earlier. I carried on as normal as I’m not coming in if I’m not being paid. Turned up for a 12pm shift at 11:49, no one would look at me when I arrived, then was thrown in a meeting and fired for being ‘late’. Was out the door before it even hit 12. It was the only time I’ve ever been fired,” shared somebody.

14. Building a Snow Sculpture

Photo Credit: Shutterstock.

“I built a snow scorpion sculpture (I used ketchup for the red glowing eyes and everything) on a particularly miserable day at a ski resort. The guests enjoyed my sculpture very much, management weren’t so happy,” said one.

“Sounds like crap management. Sad. I’m glad to hear you made the guests happy, though,” the second person added.

15. For Sneezing

Photo Credit: Shutterstock.

One person stated, “They sent me home because I sneezed and I was forced to get tested for Covid. Then, when I tested negative, I was terminated for ‘Abusing pandemic policies to stay home.’”

“That has to be illegal in some form,” replied somebody.

16. The CNA Lied About What Happened

Photo Credit: Shutterstock.

“I asked the CNA I was working with to stay with a confused patient, while I went and put a new IV in another patient. The CNA left the patient alone. She fell out of bed and got a big bloody skin tear on her arm. After I took care of that, I went and found the CNA and told her the patient was injured because of her insubordination. The CNA cussed at me, and left the unit. I did not see her again that shift. She and another CNA decided on their own to trade assignments.

“I wrote the CNA up. The CNA went to mgmt and lied about me. She said I called her by a racial slur and yelled at her. I did neither. Mgmt fired me rather than deal with a false claim of racism. I collected unemployment.

“The CNA did something similar with another nurse a couple of weeks later, and was fired. My mgr asked if I could be rehired. HR said no. When my mgr quit to start her own nursing agency a year later, she hired me,” one person stated.

“You can’t pay me enough to go back to work in a nursing home. I have so many stories of problems between nurses and CNA’s getting each other in trouble and the residents caught in the middle,” replied another.

17. They Lowered My Pay So I Slept During My Shift

Photo Credit: Shutterstock.

“They lowered my pay, so I started sleeping at work and did only half the task they wanted me to do. Took them 3 years to fire me,” shared one Redditor.

“I’m amazed at how long it can take sometimes to fire a person. I had a boss who got shoulder surgery and was wildly add*cted to pain meds. Dude would show up to work high as a kite and started at the ceiling for hours. He got away with it for about 2 years before anyone said anything,” the second person replied.

18. I Gave My Employee Meal to My Mother

Photo Credit: Shutterstock.

Somebody commented, “I gave my employee meal to my mother. That’s literally it. I didn’t like eating the food there, so I had my mom bring me lunch, and I just gave my employee meal to her. Apparently, that was considered theft, so I was fired.”

Wow, some of the reasons above for getting fired were just crazy! Did you experience the same? Let us know in the comments!

And if you want more of this content, simply hit the thumbs-up button and share it with your friends and family.

Source: Reddit

10 Actors Perfectly Cast for Their Character Roles

Photo Credit: Warner Bros.

Have you ever watched a movie or show and been completely lost in it because of how well an actor or actress became their character? Check out this article for a whole list of actors who were perfectly cast!

11 Vampire Movies That Will Make You Thirst for More

Photo Credit: Columbia Pictures.

You know that feeling where you’re on a movie kick in a certain genre, but you seem to run out of good movies to watch? Well, if you’re down for a vampire movie or three, check out this article for the best ones out there!

10 Incredible Movies That People Rated 10 Out of 10

Photo Credit: Universal Studios.

It’s pretty hard to replicate the experience of watching your favorite movie for the first time, but we’ve put together a list of movies that people have rated at a perfect 10/10. Next time you need a good movie to watch, check this out!

10 Famous People Who Canceled Themselves With Their Own Stupidity

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We’ve all been there: you make a comment you haven’t thought through at all, and the whole room goes silent at what you’ve just said. But can you imagine doing that as a famous person—and getting canceled? Check out this list of celebrities who did just that!

13 Things You Shouldn’t Do When You’re in the US

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Are you planning a trip to the US? Culture varies a lot between countries, even countries that share borders. So if you’re headed to the good old U. S. of A, here are a few pointers to make your travels go more smoothly!

About the Author

Source: financequickfix.com

Apache is functioning normally

December 1, 2023 by Brett Tams

Inside: Are you struggling to keep up with your variable expenses? Whether it’s groceries, gas, or rent, managing these costs can be daunting. This guide will teach you how to budget for variable expenses and reduce the strain they put on your wallet.

Understanding and effectively managing your variable expenses is a crucial aspect of maintaining financial health.

These are expenses that fluctuate on a monthly basis, such as groceries, fuel, and entertainment. Their inconsistency can make budgeting a challenging task.

For many people, this is where they give up on budgeting because variable costs can sway too much for the average budgeter to know what to do.

Around here at Money Bliss, we know those who efficiently manage their variable expenses tend to fare better in achieving their financial goals. Furthermore, it empowers you to anticipate, plan and manage costs better, and avoid unnecessary financial stress.

Our focus here will be on explaining how variable expenses can make notable changes to your personal budget and offer strategies to manage them effectively.

This post may contain affiliate links, which helps us to continue providing relevant content and we receive a small commission at no cost to you. As an Amazon Associate, I earn from qualifying purchases. Please read the full disclosure here.

What is a Variable Expense?

A variable expense is a cost that changes from month to month.

Unlike fixed costs that are paid at regular intervals and may endure only slight fluctuations, variable expenses undergo a higher degree of fluctuation depending on consumption or quantity used. These expenses can comprise costs such as groceries, entertainment, and fuel for your car.

What primarily distinguishes a variable expense is its potential to vary from one period to the next, making it an important calculation in accounting for a comprehensive monthly budget.

Knowing the intervals of these variable costs can enhance the accuracy of your budgeting, turning this challenging aspect into an opportunity to reduce costs.

What is an Example of a Variable Expense?

Variable expenses typically entail a high degree of personal discretion and vary substantially between individuals. While one person may see dining out as a variable expense, for another, it may be a rare treat. Either way, it is still an example of variable expenses.

Here are a few typical examples:

Groceries: You decide what food to buy, and it depends on your food preference, the number of people at home, and special dietary needs.
Gasoline: This expense is dependent on how much and how far you drive.
Utilities: Electric, water, and gas bills fluctuate based on usage.
Clothing: The cost can vary each month depending on how often and how much you choose to buy, such as seasonal shopping, special occasions, or replacing worn-out items.
Gifts: Costs can fluctuate depending on the occasion, person, and your personal budget for the period, making them unpredictable and potentially impacting your monthly budget plans. Especially for Christmas gifts.
Entertainment: Costs such as movie tickets, concerts, or amusement parks may vary depending on your social life.
Repairs: Costs for home and car repairs are unpredictable and can markedly vary. Essentially, any expense that is not fixed (like rent or car payment) can be considered a variable expense.
Taxes: Yes, even your taxes are variable based on your income.

Don’t forget to use a savings account with one of the popular money saving challenges.

Difference between Fixed and Variable Expenses

Understanding this difference is a significant step toward setting realistic savings goals

Fixed expenses are constant costs that remain the same each month, like rent, insurance premiums, car payments, or childcare. They’re predictable, making them easier to incorporate into your budget without unexpected surprises.

On the contrary, variable expenses fluctuate month-to-month and include items like groceries, utilities, gas for your car, or entertainment. The unpredictability of these costs can cause potential challenges in budgeting and limit the consistency of your financial output.

Nevertheless, variable expenses often present more opportunities for saving.

You have greater control over these costs, giving you a chance to limit expenditure and prioritize savings.

How to Budget for Variable Expenses

Personal budgeting is an essential tool. Despite variable expense’s unpredictability, it is possible to plan for these expenditures by applying practical tactics and strategies.

From using budget apps to examining previous spending patterns, this type of budgeting enables you to maintain control over your finances and make adjustments as necessary.

50/30/20 Budget: An Effective Approach

The 50/30/20 budgeting approach is a simple yet effective method that can help you manage both fixed and variable expenses.

This method suggests you divide your after-tax income into three categories: 50% on necessities, 30% on wants, and 20% on savings or debt repayment.

By categorizing this way, you ensure your most critical outlays (the necessities ) first. You then allocate your income towards discretionary spending (your wants), and finally squirrel away a portion for savings (hopefully 20%) or paying off debts. This budget calculator strategy can serve as a foundation to guide your spending, helping you to stay on top of your finances.

Quicken

Personal finance and money management software allows you to manage spending, create monthly budgets, track investments, retirement and more.

I have used this platform for over 20 years now.

Pros:

Birds-eye view of your complete financial picture.
Conveniently download your spending activities, and automatically categorize them (Quicken connects to over 14,000 financial institutions).
Track investments with it’s features like portfolio analytics, retirement goals, and market comparison.

Cons:

Little complex to use at first, the learning curve is moderate.
Yearly subscription-based model to use the platform.

Zero-Based Budget

A zero-based budget is a technique where you make a budget from scratch or “zero” and allocate every dollar of income towards different categories of expenses until they sum up to zero at the end of the month.

This budgeting strategy, very popular due to the budgeting app, YNAB, can be a rewarding technique that solicits justifying every expense’s worth as you give every dollar a job.

Distributing money toward fixed costs is usually shoo-in, but budgeting for variable costs can be tricky because you won’t know how much you’ll spend on them. The solution is to estimate as closely as possible.

The beauty of a zero-based budget is that it ensures your money is purposefully allocated, leaving no room for unexplained spending especially when used with sinking funds.

YNAB

Enjoy guilt-free spending and effortless saving with a friendly, flexible method for managing your finances.

Pros:

Comprehensive approach to budgeting, helping you plan monthly budgets based on your income.
Offers expert advice, making it suitable for those who require an in-depth, forward-thinking budgeting strategy.
Superior synchronization skills make it the winner in this area.
YNAB has extra features like goal setting for budgeting, shared budgeting tools for partners.
Option to manually add and upload transactions from accounts each month.
YNAB prioritizes user privacy.

Envelope Budgeting System

The envelope budgeting system is a successful method for managing variable expenses. By dividing your income into envelopes assigned to different categories like entertainment, groceries, or transportation, control over fluctuating costs is established.

With each paycheck, you determine a specific amount for each category and stuff that envelope with cash. By strictly adhering to this limit, you thereby avoid overspending.

This hands-on approach provides an exact idea of available cash and creates a stronger sense of financial accountability. In fact, recent data indicates that the envelope system has successfully helped many people stay within their budget, primarily by making expenditures more tangible and easier to track.¹

What is most likely the reason variable expenses should be planned after fixed expenses?

When preparing a budget, it’s typically suggested to plan for fixed expenses first before variable expenses.

The primary reason is that fixed expenses are generally non-negotiable costs that are essential to your daily life and take up much of your budget. These costs are predictable and regular, making them easier to budget for.

Variable expenses, on the other hand, tend to fluctuate and often include discretionary spending like dining out, shopping, or entertainment. This category, despite its variability, carries a certain upside as you possess more control over these expenses than your fixed ones.

By planning for fixed expenses first, you ensure to cover your essential needs before budgeting for lifestyle choices and discretionary spending, which can flex more easily around your remaining income.

Tiller Money

Your financial life in a spreadsheet, automatically updated each day.

Tiller is the fastest, easiest way to manage your money with the unlimited flexibility of a spreadsheet.

Update your finances in one place, so you can take control of spending, optimize cash flow, and confidently plan your financial future.

Pros:

Tiller automatically updates Google Sheets and Microsoft Excel with your latest spending, balances, and transactions each day.
No more tedious data entry, CSV files, or logging into multiple accounts.
You can customize everything and finally track your money, your way.

Tips to Control Variable Expenditures

Managing and controlling variable spending is an essential aspect of sound financial planning.

Honestly, the more proactive you are in monitoring the continuous changes in variable expenses and introducing strategies to suppress any unnecessary hikes, the faster you will reach your goals.

This section will provide insights into various effective methods to control variable spending, as well as the behavioral adjustments needed for successful implementation.

Tip #1 – Save on fixed and variable costs

Everyone wants to save money and here are a few tips on reducing both fixed and variable costs:

Fixed costs: Considering these costs are more constant, savings can usually only be achieved by longer-term changes. This could be refinancing your mortgage for a lower rate, negotiating a lower car insurance premium, or switching to a cheaper phone plan.
Variable costs: Changes in habits can lead to significant savings. For instance, cooking at home instead of dining out, carpooling or using public transport to save on gas, or unplugging electronics when not in use to save on utilities.

By scrutinizing both types of costs, you can identify opportunities to cut back and increase your savings over time. Being frugal green is a huge topic! Remember, the little things can add up!

Tip #2 – Set expense limits and find ways to save

Budgeting requires discipline, and setting limits on your variable expenses is a big part of that. You can do this in three ways:

Start by reviewing your spending patterns: examine your transaction history to identify areas of overspending. Once you’re aware of these, set spending limits that align with your financial goals. Drawing from my experience, I can assure you that awareness of overspending areas, followed by setting spending limits, can significantly align with your financial goals.
Consider taking part in a no spend challenge. Personally, that is when I realized I spent a lot of money on things that didn’t matter to me in the end.
Adopt practical money-saving habits like adopting DIY approaches (e.g., home repairs, sewing, cooking), utilizing coupons and cash backs, shopping secondhand, or carpooling.

Remember, you have control over your variable expenses, and setting restrictions doesn’t mean depriving yourself. It just means making informed decisions and prioritizing your spending according to your financial goals.

Tip #3 – Use Sinking Funds

A sinking fund is an effective money management strategy that can help handle variable costs. It’s a fund where you regularly set aside a certain amount of money for a specific expense. For instance, you might establish a sinking fund to cover property taxes or unexpected costs (but they will happen) like car maintenance, vet bills, or holiday gifts.

When the time comes for these expenses, you won’t have to scramble to find the money because you’ve already collected a fund over time.

This approach can ease financial stress and prevent unplanned debts, making sinking funds an excellent remedy to unexpected variable expenses. For us, this is when we maximize the placement of our hard-earned money across multiple bank accounts.

FAQs about Variable Costs and Budgeting

While all expenses matter, we generally advise budgeting for fixed expenses first. These are critical costs that typically stay constant month-to-month, like rent or mortgage payments, insurance, and fixed utilities.

Allocating money toward these essential costs first ensures that you’re covering your necessities. Once you’ve accounted for these, you can then budget for variable expenses which are discretionary and fluctuate based on personal usage.

Thus, it helps you realize your spending habits and identify areas where you can cut back if needed.

Yes, entertainment is typically considered a variable expense. These costs vary month-to-month based on your discretionary spending habits.

For instance, your spending on concerts, movies, dining out, or subscriptions can fluctuate based on your lifestyle, events, or personal choices. Remember, since entertainment costs are discretionary, they can often be trimmed when looking to make budget adjustments.

Ready to Master your Variable Budgets?

Understanding the ins and outs of variable expenses and strategizing accordingly can empower you to manage your money more effectively.

By distinguishing between your fixed and variable expenses, budgeting effectively, and identifying potential savings, you’re setting yourself up for financial success.

Whether you’re using the 50/30/20 budget approach, a zero-based budget, or sinking funds, the goal is to ensure your money is being used wisely. It’s all about creating a balance that nurtures a comfortable lifestyle while paving the way toward your future financial goals.

So review your inconsistent costs, implement new financial strategies, and take control of your variable expenses.

The key takeaways is a well-planned budget is not just beneficial for controlling spending, but also integral to your financial freedom.

Source

Ramsey Solutions. “How to Budget With the Cash Envelope System.” https://www.ramseysolutions.com/budgeting/envelope-system-explained. Accessed November 28, 2023.

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More importantly, did I answer the questions you have about this topic? Let me know in the comments if I can help in some other way!

Your comments are not just welcomed; they’re an integral part of our community. Let’s continue the conversation and explore how these ideas align with your journey towards Money Bliss.

Source: moneybliss.org

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What is a Shoestring Budget?

Shoestring Budget Idiom Definition

‘Shoestring Budget’ Origin

How to live on a shoestring budget?

How to travel on a shoestring budget?

How to Save Money on a shoestring budget?

Starting a business on a shoestring budget

Shoestring Budget Examples

Practical Tips for Surviving on a Shoestring Budget

1. Starting with a Budget: Your First Step

2. Make Saving Automatic

3. Cut Back on Expenses

4. Look for Ways to Make Extra Money

5. Utilize Free Resources

6. Look for Deals and Coupons

7. Utilize Household Resources

8. Get Rid of Unnecessary Expenses

9. Reduce Your Monthly Rent or Mortgage Payment

10. Be Creative When Paying Bills

11. Leverage Technology to Save Time and Money

12. Participate in a Mini Savings Challenge

Frequently Asked Questions (FAQ)

Key Takeaways: Managing Money Well on a Tight Budget

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1. Use Strong Passwords

2. Turn On Two-Factor Authentication

3. Always Use a Secure Connection

5. Check Your Credit Report

6. Monitor Your Credit Card and Bank Accounts

7. Make Social Media Profiles Private

8. Tap Into Online Tools for Help

9. Update Software

10. If Your Identity Has Been Stolen, Consider Placing a Credit Freeze on Your Files

11. Consider Placing a Fraud Alert on Your File If You Suspect Identity Theft

The Takeaway

What are Unexpected Expenses?

What is an example of unplanned spending?

Common Examples of Unexpected Expenses

1. Medical Emergencies and Healthcare Costs

2. Automatic Home or Vehicle Repair Needs

3. Natural disasters

4. Increase in Bills

5. Overlooked Taxes

6. Pet Emergencies

7. Delayed payments

8. Gifts and Special Occasions

9. Unexpected Travel Costs

10. What You Forget to Budget for

This helps you prepare for unexpected expenses

Tip #1 – Building an Emergency Fund

Tip #2 – Properly Utilizing Sinking Funds

Tip #3 – Saving for the Larger Rainy Day

Tip #4 – Pick up a Side Hustle

Tip #5 – Budget Properly and Stick to It

Tip #6 – Regular Review of Financial Plans

Tip #7 – Utilizing Digital Banking Features for Money Management

Tools to Ward Off Unexpected Expenses and Not Go into Debt

Dealing smartly with Credit Cards options

Profit from Asking for a Paycheck Advance

Exploring Personal Loans for Emergency Situations

Which of the following is true regarding unexpected expenses?

What is not true about unexpected expenses?

Frequently Asked Questions (FAQ)

Plan Ahead to Avoid Unforeseen Expenses

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Key Takeaways

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