I barely brushed the surface of combating food waste in a recent article, but the comments added so much to the article that I thought I could stop at just one. And then I found some more statistics.
In the U.S.:
We waste 40 percent of edible food
It costs $750 million just to dispose of the food we waste
And when you consider the extra costs of packaging, transporting, and storing wasted food, the overall cost of wasting food goes up to $165 billion.
But there’s more — 33 percent of purchased meat is wasted, followed by 25 percent of seafood. Even 15 percent of purchased fruit is wasted. That’s not good, especially when you consider that meat is so expensive, not to mention all food.
But what matters most is what happens in your household. And according to the same statistics, each U.S. household wastes between $28-43 per month on food. I’ve seen other statistics that put that number closer to $600 annually per household. That’s not a huge amount of money, but wasting money on food doesn’t make sense any way you slice (or dice or julienne or…) it.
Smart storage
Food storage has changed a lot since my grandparents were growing up in the 30s. They preserved their meat by smoking it. They killed a chicken after lunch and dressed it for dinner. They say that they ate bad apples all winter. They started out eating the not-so-good apples first, but by the time they got to the good apples, they weren’t very good, either. (But I don’t know. This comes from the same grandfather who walked up hill to school both ways. And I think he was barefoot in the winter, too.)
Without question, freezers and refrigerators have extended the life of produce and other foods, but I still waste food. I am getting better as using up the produce, but I am also trying to learn the best ways to store produce so it lasts as long as possible.
This winter, I noticed that my onions were getting moldy more quickly than they ever had before. After throwing out a handful of onions three times, I looked at how and where I was storing the onions. In a plastic bag, in a warm cabinet, next to a heat register. Well, according to the National Onion Association (doesn’t that make you want to cry?), there was nothing right about that. Onions should be not be stored in plastic bags; they need to breathe and prefer a cool, dry, well-ventilated environment.
Potatoes also prefer a cool and dark, ventilated environment. A refrigerator, kept slightly warmer than normal, was recommended as a good place to store pounds of potatoes through the winter.
Refrigerator management
If you have produce drawers in your refrigerator that have different humidity settings, in general, vegetables should be at a high humidity setting. This keeps the water vapor inside the drawer which prevents vegetables from wilting.
On the other hand, fruits usually emit more ethylene gas and need low humidity settings. Some vegetables, like peppers and mushrooms, prefer low humidity. In general, foods that emit more gas usually have a shorter shelf life.
If you don’t store your greens in the high humidity drawer, you can wash the greens and wrap them in damp paper towels. That makes them last much longer.
Tomatoes get mealy when placed in the refridgerator. So when we have a garden, I leave the tomatoes on the plant as long as possible. When we don’t have a garden, I let the supermarket be my storage unit for tomatoes. But if I must store them at my house, I do my best to eat them quickly. If not, I may store them in the refrigerator.
Consider the temperatures of different parts of the refrigerator. The door is warmest, so foods with lots of sugar, salt, or vinegar are fine on the door. Milk can be kept on one of the middle shelves. Since the bottom of the fridge is coldest, keep meat there.
My leftovers get stored in a selection of containers, but my favorite ones are clear glass. Why? I waste much less food when I can see what’s in each container when I open the refrigerator door.
Along with all these other tips, one more method of food storage extension is to not wash your produce until you’re ready to use it (with the possible exception of greens).
Products to extend produce life
Other than storing items properly, using up produce quickly, and selecting quality produce in the first place, there are also other ways to extend the life of produce.
The BluApple absorbs ethylene gas which hastens ripening. When used in fruit bowls, dark areas where you store potatoes and onions, and produce drawers in the fridge, it triples the life of the produce — at least, that’s the claim. I haven’t used this product, so I can’t say for sure. It costs $19.90 for two BluApples and a 12-month refill kit.
Tupperware sells another option. The FridgeSmart containers regulate airflow and have ridges on the bottom to prevent the fruits and veggies from sitting in condensation. I have used these. Not only do they keep my fridge organized, but things like celery seem to last much longer. A four piece set is $84, though you can purchase different sizes individually for less than $20.
Some people choose to fight food waste by allowing the supermarkets to store the produce for them. I think that’s a great idea, but I live 15-20 minutes from a decent-sized grocery store. Also, we’re going to be growing more of our own food this year which means I will probably (hopefully!) have lots of produce life to extend.
Many factors increase food waste which means there are many factors to improve to decrease food waste. Which methods do you use? Do you think you waste as much food as these statistics say you do?
When the snow melts and bulbs are blooming, buyers are out in force. If you’ve heard that spring (and leading into summer) is a good time to sell, you can tell whoever told you that they’re right for the most part! In many areas, the warmer weather means that people are eager to get out of the house, move while the kids are out of school, and are ready to look at homes with beautifully manicured yards. While hotter climates might have a slight downturn in the market during the 100+ degree weather, other markets thrive. If you’re considering listing your home this spring, you can optimize your home for higher offers with these seven timely tips.
1. Embrace Every Blooming Thing
Crocuses, hyacinth, and tulips peeking through your soil? Great. Blooms can be one of your greatest spring selling assets. If you don’t currently have bulbs in your yard, hit the nursery and purchase sprouted bulbs or opt for plants like pansies and primrose that look great and can withstand an unpredictable spring. Add additional color and curb appeal with planters and pots. You can even plant blooming daffodils or tulips to beds that need a refresh.
Brighten up porches, decks or balconies with potted blooms.
2. Touch Up the Yard and Exterior
When the snow melts, it reveals all the blemishes and flaws that were covered all winter. Before you list, give your home’s exterior a good once-over. Note any dead grass, chipping or fading paint, and damaged sections of fence. Turn your observations into a to-do list and get to work. Rake the grass, clean out beds, fertilize, lay sod, and edge the lawn. Do you need to repair fences, railings, steps, or decks? What about adding paint and stain in those well-worn areas? Even if you don’t find much to fix, consider giving your home an instant facelift by rubbing mineral oil on a painted front door or adding new house numbers.
Paint your front door new leaf green or robins egg blue to make your home one to remember when it comes time to put in offers.
3. Deep Clean
It’s called spring cleaning for a reason. After months shut inside the house, everything can use a good, thorough scrubbing. Have carpets cleaned and wash the windows both inside and out. Clean out closets and attack junk drawers. Wipe down the walls, make tiles and counters gleam, and pay attention to smaller things like grout, which can take a room or wall from dull to sparkling with just a little elbow grease. Clean the oven, and organize and wipe down the laundry room. Sort through towels, sponges, and other cleaning tools and toss ones that are shabby or smelly. Have slipcovers, upholstery, and pillow covers cleaned.
Do your spring cleaning before you list; they might want to buy the furniture too!
4. Perform Pre-inspection Repairs
If you’re selling your house, then you know a buyer is going to want to have ahome inspection completed before they seal the deal. Why not perform a preemptive strike and do your own inspection first? Identify small things that you can update or repair before the buyer can point them out. Often small issues lead buyers to fear there are larger maintenance issues, so making simple repairs before you list is smart. Change out filters, fix that wobbly banister, and take care of small things like torn screens or loose shingles.
Free painted-shut windows, repair screens, and fix broken panes.
5. Box Up Winter
You can make your house and yard feel bigger by simply packing away winter toys, tools, and clothes. Put your winter wardrobe in storage to make closets feel larger. Box up mittens, gloves, hats, and boots. Trade out ice melt and shovels for watering cans and gardening tools. If possible, store winter items neatly in sealed boxes or containers in a shed or off-site storage facility. You don’t want to crowd the garage or yard with items you’ve packed up. Trade out heavy, wintry throws and pillows for brighter, lighter pieces that feel more like spring.
Don’t crowd the garage when you clean out the house; organize it or get a storage unit.
6. Brighten the View
After you’ve cleaned those windows, let the sun shine in. Wash window coverings and trade out dark, dingy drapes for sheers that give your home an airy feeling. Clean blinds and make sure to keep them open during showings. Consider removing valances, which tend to box windows in and create a more formal, stuffy feeling. Add brighter light bulbs to every room to add more light. Outside, add window boxes full of flowers or herbs to set off windows and provide a pleasing view from every angle.
Add sheer drapes inside heavier ones.
7. Bring Spring Inside
Don’t let buyers lose that bouncy, spring feeling once they cross the threshold of your front door. Continue the colors and scents of spring throughout your house. Open windows and let fresh air blow away the remnants of a closed-up winter. Add fresh flowers to mantles, side tables, and the dining room. Display fresh fruit in the kitchen. Use diffusers and candles to bring the crisp, inviting scents of spring inside. Trade out linens, towels, and accents for light, bright colors and clean patterns that make buyers want to cozy up and call your house home.
Fresh flowers will put a spring in buyers’ steps.
Spring is a time for new beginnings, and it can be the perfect time to sell your home, especially when you use Homie! With our low flat fee, you get a dedicated agent who can advise you on how to make your home appealing to buyers, from staging to pricing! Click here to learn more about listing your home with Homie.
School’s almost back in session, the kids are getting antsy to return to school, and your house is on the market. It’s difficult enough to manage showings and staging with children underfoot all summer long, but the back-to-school rush can feel like it overwhelms you while you are trying to sell your home. To keep yourself (and your little ones) sane as you try to sell your home in the last days of summer, here are the must-do tips you can’t live without.
1. Create a Blank Slate
Personalizing a house is one of the things that makes it feel like home. However, when you’re trying to sell, you want the buyers to feel at home. If you’ve got children’s art and report cards all over the walls and fridge, it will be hard for buyers to see past it. It’s time to clear out the school year’s display of accomplishments and replace it with more universal, homey touches like a calendar, notices of neighborhood events, and other items that help buyers feel like your home is where they belong.
2. Box It Up
Back to school is chaos, with a flurry of new shoes, supplies, and clothes littering the floors. Manage the chaos by creating attractive, easy storage for the must-have items – both inside and out. Look for large bins or storage benches that can double as decor or furniture, and make sure that everything fits. If you have more items on the loose than can easily be thrown in the bench, you’re going to end up frustrated. If needed, ask kids to help identify the most critical every-day items, and the sad process of wrapping up summer by moving sunny-day toys to the garage or long-term storage.
3. Increase Storage
Whether it’s renting a storage unit or expanding use of the attic, garage, or shed, adequate storage is a necessity. Make sure everything is boxed and labeled nicely and tucked safely out of sight. To make your home as presentable as possible consider putting the following in storage: winter clothes and sports equipment, unused toys, memorabilia and art work, playroom furniture, and excessive stuffed animals.
4. Be Prepared
Don’t let showings catch you off-guard. Create a prep checklist and establish a one or two-hour buffer zone for all tours. As soon as you get word that someone wants to take a look around, grab the checklist and get started tidying, dusting, sweeping, and hiding all evidence of an exuberant summer break turned back to school chaos. Don’t forget the outside, either. Include a sweep of the lawn to make sure that potential buyers won’t trip on a bicycle or overlook the flower garden for piles of summer toys. You can even turn prep time into a game that helps the kids feel included and gives you a few extra hands.
5. Have an Escape Plan
Identify a number of places where you and the kids can go to pass the time during a tour. If the kids are behind on summer reading, a tour is a great opportunity to find them a quiet place to get serious about summer assignments. Or make a date of celebrating the end of summer with a few more fun trips like a nearby park, swimming pool, a friend’s house, the library, the movies, or an ice cream parlor.
6. Pack in Advance
Have backpacks and diaper bags ready to go with all the supplies you’ll need while you’re out and the prospective buyers are in. In fact, start scheduling some of your back to school errands while you have buyers touring. Need to make a quick trip to school to get some last-minute registration items done? See if you can’t use selling your home as an opportunity to get out of the house and manage getting back into school.
7. Leave Room in the Trunk
No matter how well you plan, sometimes you may still get caught off-guard. For those times when getting ready for a showing just doesn’t go your way, an empty or well-organized trunk can be your best friend. It’s probably not your first choice, but it’s such a relief to be able to throw extra toys and other messy items in the trunk of your car at the last minute. This emergency storage trick can be a lifesaver when you’re up against the clock.
Selling a house always presents challenges, but with these tips and a little preparation, there’s no reason you can’t go back to school and still present your home’s best side to buyers. Tell us your tips for selling a house and keeping your sanity during summer break in the comments.
COASTAL COMFORT: For outdoors and in, ‘if you’re looking for something to make your house stand out, you’re going to find it here,’ invited the home and garden store operator. The elements are here, and design is also in mind.(Photos by Jack Reynolds)
Sea Scape Home and Garden in Surf City has outfitted coastal living outdoors and indoors since it opened two years ago; now that concept will expand as the store joins into a collaboration with Tuckerton Lumber Co.
The growth venture is designed to work well for both businesses. Having Sea Scape on board will expand on Tuckerton Lumber’s coastal destination for customers. Meanwhile, Sea Scape’s Michele Tallent is excited that the shop will now offer a broader scope of services, notably that Keli Lynch of Tuckerton Lumber, as an interior designer, will expand the shop’s home interior services.
Located at 1808 Long Beach Blvd., Sea Scape Home and Garden is about creating comfortable coastal living to make memories every day. Quality patio furniture, grills, fire pits, plants, home decor, pottery, baskets, candles and even cozy sweaters are among the shop’s specialties.
The pairing of Tuckerton Lumber Co. resources with Sea Scape’s creative vision is a match made on LBI.
It occurred when Sea Scape had needed more storage space, and Tallent had gone to rent a SurfBox storage unit. That caused a chance meeting with Tuckerton Lumber owner Joseph Lynch, which started a conversation on what the two businesses could each offer the other. Tallent was excited at the prospect of being able to bring in Tuckerton Lumber’s special brand of poly furniture, lines of grills and so much more.
The collaboration comes just in time to wind into the season of LBI shore living.
New outdoor furniture beckons as customers enter the front display grounds at the shop.
“Going into our third summer, we will be bringing back some of our past favorites – teak tables, teak and rope chairs, concrete composite tops for our dining tables, counter-height tables and bars – but we have expanded with some really beautiful new pieces,” said Tallent, listing “beautiful teak and black rope sets, the grapevine set, and our Big Beautiful Black Chair.
“The response has been great so far. We like to stock our furniture, so you can sit on it and try it out.”
Sea Scape is now a source for outdoor kitchens, thanks to the venture with Tuckerton Lumber. And onsite already at Sea Scape are some of the grills that Tuckerton Lumber carries, including Traegar, Napoleon, Weber and Primo brands, Tallent said. Gozny pizza ovens for sale will fire up a fun meal for friends and family.
Portable outside patio heaters and smokeless fire pits from Tuckerton Lumber will warm the atmosphere for relaxation. Solo stoves and smokeless fire pits are among other features made for a nice time. Solar bug torches – Sea Scape Home and Garden has them.
As yet another feature, custom sheds are an inviting escape, or they can give a gardener’s supplies a handy home. “They can be designed to match your house,” Tallent added.
Comfort, as the store’s vision delivers it, extends to clothing that wears well in a shore-side haven. A travel wrap comes with a matching pillow.
“We have a nice clothing line, one size fits all, that has its own cult following,” Tallent described. “Once a person buys one piece, they come back for more and bring a friend. The sweaters look good on everybody.”
The home decor offerings inside the store range from art and beautiful blankets to flatware, tablecloths and “the best-smelling candles,” to picnic baskets. As Tallent encompasses, “If you’re looking for something a little bit different to make your house stand out, you’re going to find it here.”
“With Keli on board, we can do more interior decorating,” noted Tallent. The shop is a source for furniture, rugs, lamps, wall art, pillows, throws, bedding – Sea Scape puts it all together.
Imagine durable teak patio pieces in an oyster-colored finish paired with a distinctive set of vintage beach umbrellas and beach chairs, then adorned with the accessories that finish setting the scene.
Added Tallent, “We have a casual approach to design. It doesn’t all have to be new furniture; think of a new table mixed with different old chairs. We love to find new uses for old furniture.”
Splash on a new coat of paint; remove doors from cabinets to reveal new possibilities; accent with new hardware.
Tallent’s passion for design is often inspired by the seashore as she incorporates natural elements. “I love working with different grasses, and we sell blooming hydrangeas, blooming hanging plants, other outdoor plants, and interior houseplants.”
Spaces can be created to be peaceful, simple, spa-like, or very busy with lots of greens, flowers and vines. The philosophy is to create a space outside that will be as comfortable as the inside, or an extension of the inside – a place to unwind to enjoy the beach air.
Some of Keli Lynch and Tallent’s favorite spaces are covered porches. Tallent set a possible scene one recent spring day as she was getting the shop ready for a busy week. Bring out an old cabinet … a fresh coat of paint … some pillows and throws for some comfy furniture … the use of a rug to define the space … a plug-in small fireplace … finish off with a nice-scented candle. Adorn with plants and hanging baskets, like the big hanging ferns and ficus lyrata, better known as fiddle leaf.
The outside of the home becomes outdoor living, with coastal style. The seaside property is a seascape. It’s going to be a very nice season with Sea Scape Home and Garden. The store phone number is 609-494-5454.
Your debt-to-income ratio, or DTI, is your total monthly debt payments divided by your total monthly gross income. DTI ratio is one of the criteria lenders use to determine whether you can realistically pay back a loan. As a general rule of thumb, you want to have a DTI ratio between 35% and 50%.
Save more, spend smarter, and make your money go further
If you’ve been shopping around for a mortgage, then you’ve probably run into the term “debt-to-income ratio”. This can be a confusing term for someone with limited knowledge when it comes to finance. But, when you apply for a major loan, your debt-to-income ratio can have a significant impact on whether or not a lender approves your application.
So knowing what a debt-to-income ratio is, and how to calculate debt-to-income ratio, is essential if you plan on taking out a mortgage or any other major personal loans in the near future. In this article, we’ll cover the following questions and topics:
What is a Debt-to-Income Ratio?
How to Calculate Your Debt-to-Income Ratio
What is an Ideal Debt-to-Income Ratio?
What is the 43% Rule?
Does Your DTI Ratio Impact Your Credit?
How to Improve Your DTI Ratio
What is a Debt-to-Income Ratio?
A debt-to-income ratio, or DTI ratio, is a metric that measures an individual’s gross monthly income against their total monthly debt payments. What your DTI ratio ultimately represents is the percentage of your monthly income that is used to pay off your outstanding debts.
This ratio is commonly used by lenders to evaluate potential borrowers, determine whether or not they’re able to take on additional debt, and assess the likelihood that they will be able to repay a loan. While a low DTI ratio indicates that you have been able to manage a healthy balance between debt and income, a high DTI ratio indicates the opposite—namely, that you owe a high amount of debt relative to your income, likely aren’t able to save much money each month, and are essentially living paycheck to paycheck.
Now that you have a foundational understanding of DTI’s meaning and application, let’s dive a bit deeper.
What Factors Make Up Your DTI Ratio?
The sum of your monthly debt payments includes credit card payments, your mortgage, child support, alimony, and any other loans you may have taken out. However, some recurring monthly payments aren’t included in your DTI ratio. According to moneyfit.org, you shouldn’t factor in non-debt payments such as:
Insurance premiums
Phone bill
Childcare expenses
Home utilities, such as your electric, heating, water, sewer, and trash bills
Gym membership
Music, cable, and streaming subscriptions
Internet bill
Landscaping costs
Storage unit rent
Income tax
Your gross monthly income is just your monthly pay before things like taxes and other deductions are taken out. Some common types of income that are factored into your DTI ratio, are as follows:
Gross income, whether hourly or salaried
Tips and bonuses
Any income earned from a side gig
Pension income
Rental property income
Self-employment income
Social Security benefits
Alimony received
Child support received
How to Calculate Your Debt-to-Income Ratio
Learning how to figure out your debt-to-income ratio is a valuable skill that can help you with more than just your mortgage applications. We’ve provided step-by-step instructions for how to calculate your DTI below.
You can calculate your debt-to-income ratio by dividing the sum of your monthly debt payments by your gross monthly income. Once you figure out your total monthly debts payments and add up your gross monthly income, you’ll be ready to divide those numbers and calculate your DTI ratio.
Dividing your monthly debt payments by your gross monthly income will give you a decimal number. In order to view your DTI as a percentage, you’ll have to multiply the decimal outcome by 100.
Example Calculation
To get a better understanding of how to calculate your DTI ratio, let’s take a look at a fictional example.
Here’s the situation: Mike has a gross monthly income of $5,000. He pays $1,000 on his mortgage, $400 for his car, $400 in child support, and $200 for other debts.
So, following the equation above to calculate Mike’s DTI ratio, we end up with:
$1,000 + $400 + $400 + $200 = $2,000
Therefore, Mike’s DTI ratio = $2,000 / $5,000 = 0.4 x 100 = 40%
What is an Ideal Debt-to-Income Ratio?
In general the lower your debt-to-income ratio is, the more likely it is that you’ll be approved for a loan you’re applying for. According to incharge.org, DTI ratios that fall between zero to 35% are considered healthy according to the standards of most major lenders, since they indicate that your debt is at a manageable level relative to your monthly income.
So what is a bad DTI ratio? Having a DTI ratio of 50% and above is considered an unhealthy level of debt in most cases, and can severely limit the kinds of loans you qualify for. Such a high ratio indicates that you likely don’t have much money to save or spend each month after making your current debt payments.
What is the 43% Rule?
The 43% rule is a rule of thumb used by banks and lenders to determine who is able to be approved for a Qualified Mortgage. Generally speaking, 43% is the highest DTI ratio you can have in order to be approved for a Qualified Mortgage by a lender.
If you’re unfamiliar with what a Qualified Mortgage is, it’s a category of loans that meet a particular set of standards and certain safety features that protect both the borrower and the lender. In order for a lender to offer you a Qualified Mortgage, they must adhere to certain requirements and make a good faith effort to evaluate your finances and determine whether you’ll be able to repay the loan or not.
The upside of a Qualified Mortgage is that it has a number of parameters in place that are supposed to help prevent you from taking out a loan you can’t afford. Some of the requirements for a Qualified Mortgage include:
The restriction of risky loan features, such as interest-only periods and balloon payments
A limit on your debt-to-income ratio, the maximum typically being 43%
Caps—dependent on the size of your loan—on the amount of upfront points and fees a lender is able to charge
Legal protections for lenders, since it’s assumed that they did their due diligence to ensure you had the ability to pay back your loan
Maximum loan term is required to be no longer than 30 years
All of this isn’t to say that you can’t take out a mortgage at all if your DTI ratio exceeds 43%. You may still qualify for other mortgages with a high DTI ratio, but you generally won’t be able to get approved for a Qualified Mortgage.
Does Your DTI Ratio Impact Your Credit?
While your DTI ratio has no direct impact on your credit score and won’t show up on your credit report, it can affect your ability to secure loans from banks and other lenders. A low DTI ratio increases the likelihood that you will be approved for the loans you apply for. That’s because lenders take a low DTI ratio as a sign that you are competent when it comes to money management and they can rely on you to pay back any debt you accrue according to the agreed-upon terms. Lenders also take a loan applicant’s DTI ratio into consideration because they want to ensure that borrowers aren’t taking out more debt than they can realistically pay back.
Although a lower DTI ratio typically makes it easier to get approved for a loan, keep in mind that it’s only one out of many factors that lenders take into consideration. When evaluating a mortgage loan application, lenders will also take a look at a potential borrower’s gross monthly income, the amount they can afford on a down payment, their credit history, and their credit score.
How to Improve Your DTI Ratio
There are two variables that go into calculating your DTI ratio—your total monthly debt payments and your gross monthly income. Therefore, to improve your DTI ratio you’ll need to either reduce your total monthly debt payments or increase your gross monthly income.
Reduce Your Monthly Debt Payments
Completely paying off debts is a great way to lower your monthly debts payments, but of course this is much easier said than done. Your first step should be to take a look at any loans you’ve already taken out and your current credit card debt and come up with a comprehensive repayment plan. For example, check out our money tips for recent college grads to get some advice on how to formulate a repayment plan for your student loans.
To avoid going further into debt, you should also make an effort to work on your personal finance skills. Try creating a monthly budget for yourself that can help you prioritize essentials, track your spending, and save money, made easy when you use the Mint app.
If you’ve already done some research on how to lower your monthly debt payments, you may be asking yourself, “Is debt consolidation a good idea?” Debt consolidation is when you combine all of your various debts together into one monthly payment with a fixed interest rate, and it may be a good idea depending on your circumstances.
If you don’t think you’ll be able to make a payment on one or several debts, then you can potentially avoid a late payment by consolidating that debt. However, you must have good credit to get approved for a debt consolidation loan and you should be certain that your financial situation will improve in the near future. If you don’t think you’ll be able to pay back your debts, even with debt consolidation, then you’d likely be better off trying to settle the debts directly with your creditors.
Increase Your Gross Monthly Income
Just like reducing your monthly debt payments, increasing your gross monthly income is a lot easier said than done. After all, it’s not every day that you’re given a raise or offered a job with a high-paying salary. Nevertheless, there are still ways to potentially increase your gross monthly income. Research passive income ideas or check out these examples of things you can do to make a little extra money:
Take up a side hustle, such as driving for a ride share company, taking on freelance writing projects, babysitting, etc.
Rent out an extra room in your home (if you have more than one property, consider turning one of them into a vacation rental)
Get a relevant certification or license that would either increase the salary of your current position or help you find a new, higher-paying job
If possible, try to pick up more shifts or get extra hours at work
If you’re in the market for a sizable loan, such as a mortgage loan, you’ll have an easier time securing financing with a lower debt-to-income ratio. If your DTI ratio is higher than 43%, then you might consider waiting to purchase a home until you can lower that number and qualify for a better loan. You should generally try to keep your DTI ratio as low as possible even when you aren’t shopping around for loans. This means minimizing your monthly debt payments and maximizing your gross monthly income—two things that can be hard to achieve, but not impossible. Having a well-thought-out personal finance strategy will make it easier to achieve these goals, keep your DTI ratio consistently low, improve your overall financial health, and provide both you and potential lenders with a sense of financial security.
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Both of my grandpas with me as a young girl on Easter.
TIAA-CREF recently surveyed a number of grandparents and grandchildren across the country. I was interested to read that this was one of the findings from their survey:
We discovered that grandchildren not only want to talk to grandparents about money and savings, but also that they view their grandparents as positive role models when it comes to the importance and ability to save money.
Read more here.
I so agreed with this, because I attribute much of my own personal financial success to my grandparents — my grandpas especially. My parents were highly, highly instrumental in shaping my thoughts on finances, debt, spending, and saving, but it was my grandparents who first laid the foundation for them.
There is so much I could share about how my grandparents impacted me. My grandmas taught me so much and set such great examples for me in many areas. But when it comes to finances, it’s hard to think of anyone who has impacted me more than my grandpas.
Here are six things my grandpas taught me about financial success:
1) Be a Disciplined and Diligent Person
Both of my grandpas have lived lives of productivity.
My dad’s dad (whom we affectionately call “Pop”) was one of the hardest working men I’ve met — right up until he passed away. He was usually up before 6 a.m. and he’d go out and walk and then start in on his day. Even after he retired, he never stopped working. He was always fixing things, building things, and looking for people to help.
My mom’s dad, Grandpa Duane, is still going strong. He keeps everything in their home and in his shop in meticulous order. He cares for his wife, my step-grandma, and is always thinking of others. It amazes me how much he does, even in his eighties! In fact, just recently, he was out on my parents’ property flying one of his planes. I hope that I’m still as active and driven as he is when I’m a great-grandma!
Pop helping me with a present I’d just opened for my birthday while my older sister, Brigette, looks on.
2) Save Your Money Carefully
I can’t think of any time I’ve seen either of my grandpas spend money frivolously or extravagantly. Every purchase they’ve made has been made carefully. Time and time again, I’ve seen them wait to buy something they wanted until they had saved up for it and were sure they were getting a good deal.
At the same time, I’ve also seen them be generous with their wives, their children and their grandchildren. I truly believe that the thought and intention they put into wisely managing their money gave them the opportunity to be able to bless others more.
3) Never Pay Full Price for Anything
I remember when Pop passed away and we were going through his house, we found multiple brand-new pairs of the same kind of shoe he always wore. We were curious what this was about until we realized that he’d found a great sale on them (they still had the clearance prices on them), so he’d bought extra for the coming years.
Not only do I love this story because it shows his wisdom in always planning ahead, but I also love it because it shows how simple he liked to keep things. He always wore the same kinds of clothes and shoes and once he found a brand/make that worked well and held up, he just stuck with that.
We’d often tease Pop about how he would buy extra of items like peanut butter if they were on a great sale. Looking back, I’m pretty sure he’s somewhat to blame for my bargain-shopping nature. And I’m incredibly grateful for the example he set and all the money he’s inspired me to save over the years!
Grandpa Duane with my brother, Dustin, my sister, Brigette, and me — yup, fingers in my mouth and all! 😉
4) Think Through Purchases
I’ve observed both of my grandpas purchase a house in my lifetime. In both cases, I saw them think through the purchases very carefully.
They took their time. They asked for counsel of others. They considered their options.
And they didn’t just run ahead and get something because it looked like a great option. They wanted to make sure it was the best option. And in each case, the time and thought they put into these big purchases turned out to serve them well.
5) Use It Up, Wear It Out
My grandpas were experts at this! Why buy something new when the old one will do just as well? They took very good care of all of their possessions and made them last as long as they could. And it’s amazing how long they could make something last!
We would often joke with Pop about the fact that maybe he should replace his hole-y sweat pants or t-shirts, but he’d keep wearing them until they were completely and 100% worn out. While I haven’t quite gone this far, I do wear and wear and wear my clothes and shoes, usually until they are very well-worn. And this not only simplifies my life, but it saves us a lot of money.
My dad’s mom holding me for the first time while Pop looks on and holds my older sister, Brigette.
6) Don’t Go Into Debt — Except for a House
One thing that Pop ingrained in my dad was that you should never go into debt for anything except a house. From the beginning of my parents’ marriage, they followed this principle.
And then they took it one step further.
When I was around six years old, my parents decided to do something radical and work hard to pay off their house. They then saved up everything they could.
When I was ten years old, we sold that house and bought land out in the country. My dad bought an old single-wide trailer for a few thousand dollars and moved it to the land.
The trailer didn’t have an oven, didn’t have heat or air conditioning, leaked crazily every time it rained, had a bad mice problem, and was in fairly disgusting shape when we got it. But after days of elbow grease, we got it in livable shape, moved most of our possessions into a storage unit, and moved the basic necessities into that trailer.
We spent seven months in that trailer while we were building our house. I could write a book of stories from that experience. But most all of the memories are very happy memories and I wouldn’t trade the experience for the world.
At the end of seven months, our new house was finished enough that we could move into it. And it was a huge celebration to make it to that day… and for my parents to have realized their dream of building a house debt-free.
Let me tell you: Pop’s encouragement to my dad to never go into debt except for a house and then seeing my parents take that advice and go even further with it, well, that has a profound effect on you as a child. Especially when you then see your parents go on and be in position to be able to give generously because they worked so hard to no longer have a house payment.
Truly, my husband and I owe so much to our parents and grandparents. I know beyond any shadow of a doubt that we would never be in the position we are in financially nor would we have paid cash for our first house were it not for my grandparents influence and examples. And we are eternally grateful.
Want to start a conversation between your kids and their grandparents about money and finances? Or are you a grandparent who would love to know how to talk to your grandkids about money? Check out these free downloadable resources for tips and ideas to start the conversation.
Note: This post was underwritten by TIAA-CREF. See my disclosure policy here.
Some reader stories contain general advice; others are examples of how a GRS reader achieved financial success or failure. These stories feature folks with all levels of financial maturity and income.
I don’t spend lavishly on clothes, hair appointments, or travel. I drive a 12-year-old Honda Civic. I got into debt by trying different business investments, including real estate and selling refurbished tablets. I also took out a student loan that I really didn’t need but couldn’t turn down the money I automatically qualified for. Those are the main sources of my debt.
My debt payments began to total more than $1,100 a month. I moved in with an aunt and uncle to make ends meet. When they wanted to raise the rent, it was the straw that broke the camel’s back. I was fed up with my situation. I couldn’t even afford to rent a room anymore.
Retirement travel is in. Out is the era of spending unending retirement days on a golf course in plaid pants and interminable games of bridge with the blue-rinse set.
The new generation of retirees is looking for more adventure, with more activity ⦠and lower costs. Few strategies deliver like the recreational vehicle (RV) retirement lifestyle.</
It’s fun to meet readers for coffee or lunch. It used to seem a little strange that random strangers knew so much about my life, but nowadays it just makes conversations easier.
People always want to know about three things:
How’s Kris, my ex-wife? (Answer: Kris is fine. We see each other often. I help her with tech stuff and share my Portland Timbers tickets with her and her boyfriend. She gives me pickles.)
How are the cats? (Answer: The cats are also fine. They all live with Kris. They’re getting older and fatter and lazier, as cats will do.)
How’s my comic book collection?
The answer to that last question is actually vastly more complicated than the answers to the first two. You see, I’ve (almost) given up comics completely.