utilities Archives - Hanover Mortgages

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

Invest spare change, invest while you bank, earn bonus investments, grow your knowledge and more.

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.

Get Started

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.

Virtual Savvy

If you’ve ever wanted to make a full-time income while working from home, you’re in the right place!

This intensive training combines thousands of hours of research, years of experience in growing a virtual assistant business, and the power of a coach who has helped thousands of students launch and grow their own businesses from scratch.

Swipe our exact methods to start earning a living from anywhere as a VA – no experience needed!

Learn More

Download Free Checklist

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.

eMortgage

Ready to buy a new home or refinance your mortgage?

eMortgage® shops home loans across multiple lenders to help you find a mortgage rate that fits your needs.

Get Started

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.

Save 40% on New Memberships

Our Review

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 6, 2023 by Brett Tams

Are you looking for the best consignment stores near you and online? Consignment shops are great places to find really nice, secondhand things that cost much less than when they were brand new. You can find clothes, furniture, or valuable older items. These stores have a lot of good quality, used things just waiting for…

Are you looking for the best consignment stores near you and online?

Consignment shops are great places to find really nice, secondhand things that cost much less than when they were brand new. You can find clothes, furniture, or valuable older items. These stores have a lot of good quality, used things just waiting for someone to find them.

And, consignment shops can be a great place to sell your stuff too, and make some extra money.

I have personally worked at a secondhand shop when I was younger for several years – so I understand how great they are, especially when it comes to being able to make some extra money.

10

This free workshop will teach you how to get into the flipping business. It will teach you how to resell furniture, electronics, appliances, and anything else you can find.

Key Takeaways on the best consignment shops

Consignment stores are a great way to sell your stuff for cash
There are many stores, both on the internet and in person, where you can sell your stuff
Some favorite places to sell clothes include Poshmark and Plato’s Closet. For jewelry, Worthy is a great site to sell on. Decluttr is super easy if you want to sell electronics, like a cell phone or a game system.

What Is A Consignment Store?

A consignment store is a retail store where you can buy and sell gently used items, such as clothing, jewelry, furniture, and more.

Why Sell At Consignment Shops?

Selling at consignment shops has many positives.

It’s a good way to clean up your closet or home in a way that’s good for the environment because you’re recycling and reusing things instead of just throwing them away.

You can also make some extra money from things you don’t use anymore. It’s also really easy because the consignment store takes care of everything, like deciding the price, advertising, and talking to customers.

What items do consignment stores accept?

Consignment stores accept many different kinds of items, such as:

Clothing: dresses, tops, pants, jackets, and shoes
Accessories: jewelry, bags, belts, and hats
Furniture: chairs, tables, sofas, and other household items
Toys, games, and collectibles

Recommended reading: 8 Items To Sell Around Your Home For Extra Money

What percentage do most consignment shops take?

The consignment shop usually takes a percentage of the selling price, which can be anywhere from 30% to 60%.

So, if your item sells for $50, you might get between $20 to $35, and the store keeps the rest. This fee helps the store pay for things like rent, utilities, advertising, and paying their employees. When you sell your items through a consignment shop, they do almost all the work for you, which saves you a lot of time and effort.

Many of the stores below will pay you up front for your items, and some will pay you after the item sells. I do realize that traditionally a consignment shop is one that pays you AFTER the item sells, but I didn’t want to limit this blog post to just that – as getting paid up front is, of course, quite nice.

Recommended reading: How I Made $40,000 In One Year Flipping Items

Best Consignment Stores Online To Sell Your Stuff

Below are the best consignment stores online to sell at.

1. Poshmark

Poshmark is an app and website that has a marketplace for gently used clothing, shoes, bags, and jewelry. You just take a photo, list your item, and make extra money.

Recommended reading: 20 Best Places to Sell Shoes Online And Near You

2. Decluttr

Decluttr is a great place if you want to sell old electronics like phones, tablets, and gaming systems.

Decluttr gives you a free shipping label. Just pack your items in a box and send them to Decluttr. They take care of the shipping costs, so it’s easy for sellers.

Recommended reading: 11 Best Ways To Sell Used DVDs Online And Locally

3. thredUP

ThredUP is an online store that sells clothes and accessories for women and kids. All you have to do is ask for a Clean Out Kit, send in your items, and thredUP takes care of everything else.

4. Facebook Marketplace

Using Facebook Marketplace is an easy way to sell things to people located near you. It makes it easy to find buyers for items like furniture, appliances, and clothes.

5. Worthy

Worthy sells wedding rings, loose diamonds, earrings, necklaces, bracelets, and luxury watches. Their team handles everything from appraisals to receiving payment from the buyer.

You simply just send in your jewelry to them using a prepaid and insured FedEx label they provide. When they receive it, your item is then put up for auction where professional jewelry buyers can bid on it (you can choose a minimum price you’re comfortable with). Once the auction ends, you’ll get the final sale amount after Worthy takes their fee.

The whole process usually takes about 2 weeks from sending the ring to getting paid.

You can sell your jewelry on Worthy by clicking here.

Recommended reading: How To Sell An Engagement Ring For The Most Money

6. eBay

eBay is a popular selling site that has been around for a long time and is used all over the world. You can sell pretty much anything and everything, from clothes to special collectibles.

I have sold many items on eBay over the years, mainly clothing. But, I know people who have sold anything from collectible toys all the way to classic cars on eBay successfully.

7. The RealReal

The RealReal is a high-end consignment online store that sells luxury items, such as designer clothing, shoes, and jewelry. You can earn up to 85% of the selling price for your items.

8. Mercari

Mercari is an online marketplace where you can sell clothing, electronics, and collectibles, and it is a really popular choice with over 350,000 listings posted every day!

Listing your item is easy – just upload photos, pick a category, set your price, and you’re all set. Mercari takes a 10% commission fee.

9. Chairish

Chairish is a site where you can sell your furniture and home decor and they charge a commission based on how many things you list.

They also have a program called Chairish Drop Off & Go. You can print a shipping label provided by Chairish, then drop off your item at a nearby UPS Store when it sells. You don’t even need to pack it – UPS will take care of that for you.

Recommended reading: 15 Best Places To Sell Used Furniture For Cash

10. Grailed

Grailed is a marketplace for men’s clothing, and they mainly sell high end and streetwear brands. You can post any item for free and if an item sells, Grailed charges a commission fee of 9%.

11. Craigslist

Craigslist is a great way to sell items to people near you, and you can quickly list items like furniture, appliances, and clothing without paying any fees. I have sold many items on Craigslist over the years, such as tires, clothes, and even a Jeep hardtop (these show that anything can be sold on Craigslist!).

12. Depop

Depop is an app for shopping and geared toward younger customers. You can sell all sorts of things, like clothes.

13. GOAT

GOAT is a site where you can sell high-end sneakers. The commission fee is 9.5% plus a seller fee for a seller in good standing.

14. Vestiaire Collective (formerly known as Tradesy)

Vestiaire Collective is a website where you can sell designer clothes, handbags, and accessories for women. They make it really simple to list your items, and brands that they sell include Louis Vuitton, Gucci, Chanel, Prada, Hermes, and more.

15. Kidizen

Kidizen is a site for selling and buying kids’ clothes. If you have children’s clothing that you’d like to sell, this is a great place to start if you want to sell online.

16. Rebag

Rebag is an online consignment store that sells high-end designer handbags as well as shoes, watches, apparel, and other accessories. They buy items and pay up front.

Best Consignment Shops Near You To Sell Your Stuff

Here are some of the best local consignment stores for you to check out.

17. Plato’s Closet

Plato’s Closet is a popular store that sells trendy, gently used clothing and accessories for teens and young adults. Plato’s Closet is also one of the most popular consignment shops that pay cash up front too.

I personally worked at Plato’s Closet when I was younger for around 5 years, so I have both bought and sold items and paid cash up front. I have probably sold thousands of dollars of clothes to Plato’s Closet over the years!

18. Buffalo Exchange

Buffalo Exchange is a popular chain of secondhand stores in the U.S. where you can both buy and sell lots of different types of clothes and accessories. You get 25% of their selling price in cash or 50% in store credit for anything they’re able to buy.

19. Crossroads Trading

Crossroads Trading sells clothing, shoes, and accessories at their brick-and-mortar shops in California. They pay cash up front or you can choose to get a little more in trade-in credit.

20. Wasteland

Wasteland is a high-end clothing shop that sells new, gently used, and vintage women’s and men’s designer clothing. They pay cash up front of 30% of what they price the item at in their store.

21. Uptown Cheapskate

Uptown Cheapskate is another great store for selling clothing and accessories.

22. Once Upon A Child

Once Upon A Child sells gently used children’s clothing, toys, and equipment (such as strollers). They don’t typically pay a ton, but they also price things relatively low.

23. Music Go Round

Music Go Round is a great place for musicians to buy and sell used musical instruments and gear. Due to the typical higher price of musical items, they usually pay with a check.

24. Play It Again Sports

Play It Again Sports sells sporting goods. From team sports (such as baseball and football) to fitness equipment (like weights and even treadmills), you can trade in your stuff at Play It Again Sports.

25. Guitar Center

Guitar Center buys used musical instruments, such as guitars, amps, drums, keyboards, and more.

26. Awoke Vintage

Awoke Vintage sells vintage clothing items at their in-person secondhand shop as well as on their Instagram. If you have vintage items to sell, this is a great place to start with.

27. Beacon’s Closet

Beacon’s Closet is a New York store where you can sell clothing and accessories. You can sell items by bringing it to their store or mailing it to them. They pay 30% cash or 50% store credit of what they price the item at whether you sell it to them by mail or in person.

How To Find Local Consignment Shops Near You

There are many more local consignment shops other than just the list above. Here are some easy ways to find the best consignment shops near you:

Search online – The easiest way is to search on Google, Yelp, or on your phone’s map using words like “consignment shops near me” or “local consignment stores.” There are probably several near you that you may not know about.
Ask your friends – Ask your friends, family members, or coworkers for advice on local consignment shops they’ve had good experiences with.

Remember, when selling at local consignment shops, you should check their policies on what items they take and the process for buying or selling. You’ll also want to see when they look through items, as some may not purchase items on Saturdays or in the evenings, for example.

Recommended reading: Everything You Need To Know About Selling Your Stuff For Cash

Frequently Asked Questions

Below are answers to common questions about how to find the best consignment stores to sell at.

Is selling to a consignment shop worth it?

Selling to a consignment shop can be worth it if you have items that are in good condition and if you’re looking for an easy way to make extra money.

What are the best consignment stores for clothes?

The best consignment stores for clothes depend on what you’re looking for. For example, if you want to sell your clothes quickly and get cash up front, then Plato’s Closet is one of the easiest. If you’re looking to make a little more money, then selling your clothes online on Poshmark or eBay may earn you a little more, but these types of sites do require a little more work from you (such as taking pictures and actually shipping the clothing items).

What should I know before selling to a consignment shop?

Before selling your items to a consignment shop, you should know their rules. This includes finding out how long they’ll keep your items (will they try to sell the item for a month? A year?), how much of the sale price they’ll take, and when you’ll get paid (do you have to chase them for payment?).

What’s the difference between consignment shops and thrift stores?

The main difference is in how items are obtained. Thrift stores sell items that they receive from donations, while consignment shops buy items for resale (not through donations).

How can I maximize my earnings from consignment sales?

If you want to make the most money from consignment sales, pick a store that’s known for selling the kind of things you have and is popular with buyers (this helps because they probably sell items a little quicker!).

The Best Consignment Shops Near You And Online – Summary

I hope you enjoyed this article on how to find the best consignment shops online and near you.

The shops mentioned above are known for being easy and trustworthy when selling your items. They have an easy process and a way to get cash either up front or after the item sells.

Pick the consignment shop that suits you best and start making money from your stuff.

What’s your favorite consignment shop to sell at?

Source: makingsenseofcents.com

Apache is functioning normally

December 6, 2023 by Brett Tams

Combined into a series of federal, state and local laws, your specific renter’s rights get dictated by where you live. They’re in place to prevent things like housing discrimination and rent gouging. These basic rights ensure you have a safe, clean place to live as well as detailed courses of action when things are going wrong.

Landlord-tenant law helps you live peacefully in your rental. Do you know your tenant’s rights?

Fair housing

Before even taking a tour of a potential apartment, it’s your right to have fair access to housing. This means your rental application will not get rejected based on:

Race
Color
Religion
Age
Sex
National origin
Family status
Mental or physical disabilities

Your renter’s rights in this case receive protection at the federal level by the Fair Housing Act. State and local laws may reinforce the Fair Housing Act and even add more categories to this list to ensure everyone has equal access to apply for housing.

Not only can your rental application not get refused based on these factors, but, if you have a disability, landlord-tenant law requires they make reasonable accommodations for you to access the apartment. This could mean installing ramps or making a unit on a lower floor available.

Legal documentation

Another piece to your renter’s rights is the lease. It’s the responsibility of the property manager to give you a legal rental contract to sign that abides by all laws.

In addition to specifics about the property, and breakdowns for processes like requesting repairs, using common areas and more, a lease must clearly indicate the leasing period and your monthly rent. It should also have your name, and any roommates, on the document.

The lease should also include a series of general disclosures. The law requires these, although it varies by state which specific ones must get listed. A few common disclosures you may see in your lease if they’re applicable to the rental unit, include:

Notice of mold
Lead-based paint disclosure
Notice of sex offenders, recent deaths and any potential health or safety hazards

Living space

A variety of rules govern your living space when you’re a renter. This ensures you have somewhere to live that’s actually livable. Tenants’ rights, when it comes to your actual apartment get pretty involved, so make sure you know the highlights.

Habitable housing

It’s not enough for a property manager to provide you with an apartment; the apartment must be safe for you to live in it. This means more than a lack of dangerous conditions. Your renter’s rights entitle you to a home with usable utilities, including heat, electricity and water.

This area of your renter’s rights also means you have a home that’s safe and livable in other ways. Specifics within these guidelines require an apartment to have functioning locks on doors and windows, smoke detectors and a dedicated way to escape in case of fire.

Repairs

This area of landlord-tenant law requires action on both sides. To ensure you have a habitable home, it’s up to you to report any maintenance issues using the process that’s outlined in your lease. Find out the best way to report issues like this to your landlord (such as through email or an online portal).

On the management side, their responsibility is to complete repairs in a timely manner. Your lease will define what this means, but different repairs rank higher in priority. For example, failure to repair a heater in winter can quickly lead to an uninhabitable living space for safety reasons, whereas a garbage broken disposal doesn’t create that serious of an impact.

If your property manager fails to make repairs in a timely manner, you have additional rights. Check with state and local laws about what’s within your rights.

Privacy

Although you’re only renting a home, and someone else owns it, your rights as a tenant mean a certain level of privacy. Once your rental agreement is in place, a property manager cannot come into your home without proper notice.

Notice is also required for more than just repairs. If you’re getting ready to move, and the property manager wants to start showing your unit to prospective tenants, for example, they must give you notice each time.

Security deposit refund

Each state usually handles security deposits differently as far as how much you’re required to put down. It’s normal for you to pay a security deposit though since that protects the property manager from having to pay out-of-pocket for any damages you may cause while living in your rental.

As far a payment goes, some states set caps on how much a property manager can ask for. They also can’t impose a higher deposit for your rental, when compared to other units in the building, without a specific reason, like having a pet.

It’s also within your renter’s rights to get the security deposit back, in a timely manner, if it’s not covering any damages. Most state laws set the time frame at 30 days, and you’ll not only receive your security deposit back but any interest that accrued as well.

If any of your deposit is withheld, you can ask for written documentation of the damages it’s paying for, and the property manager must comply.

Eviction

The situations where your property manager has the right to evict needs clear stating within your lease. Make sure to review them before you sign it.

Standard landlord-tenant law states that you can get evicted if you break your lease in specific ways, such as:

Failing to pay rent
Allowing prohibited animals to live with you
Having roommates that aren’t on your lease
Committing a crime on the premises

As a renter, your tenant rights enable you to address evictable issues within a specified time frame before an eviction can take place. You will receive notice of a pending eviction from your property manager. If you fail to fix the issue, they can then file an eviction with the courts resulting in legal removal from your rental.

State-specific renter’s rights

Although you’ll find many standard regulations associated with renting if you move between states, expect additional laws everywhere you go. Since renter’s rights get regulated on both the state and local level, if you’re relocating to a different part of the country — familiarize yourself with local tenant laws.

Some unique landlord-tenant laws include:

In Hawaii, security deposits with no deductions must get returned within 14 days
A property manager must give 48 hours notice before entering your apartment in Delaware
West Virginia has no minimum notice required for a rent increase on month-to-month rentals
In North Carolina, two month’s rent is the required minimum for a security deposit on a one-year lease
A lease can get terminated once rent is only five days late in Arkansas

As you can see, some states have pretty extreme rules. Being aware of them can help you maintain a positive relationship with your property manager while also protecting your own rights as a renter.

Know your renter’s rights

No matter how great, or rocky, your relationship is with a property manager, you should always follow the law as it pertains to your situation. This not only protects you, but it ensures your property manager gets held accountable when anything isn’t up to par.

Familiarize yourself with state and local landlord-tenant laws, read your lease thoroughly before signing and do your research when faced with a potential issue. Protect yourself by knowing your tenant’s rights.

The information contained in this article is for educational purposes only and does not, and is not intended to, constitute legal or financial advice. Readers are encouraged to seek professional legal or financial advice as they may deem it necessary.

Lesly Gregory has over 15 years of marketing experience, ranging from community management to blogging to creating marketing collateral for a variety of industries. A graduate of Boston University, Lesly holds a B.S. in Journalism. She currently lives in Atlanta with her husband, two young children, three cats and assorted fish.

Source: rent.com

Apache is functioning normally

December 5, 2023 by Brett Tams

VantageScore Credit Score Ranges	Americans With Credit Scores in This Range
Very poor (300 – 499)	5%
Poor (500 – 600)	21%
Fair (601 – 660)	13%
Good (661 – 780)	38%
Excellent (781 – 850)	23%

While FICO and VantageScore take some of the same factors into account, VantageScore determines your credit score based on six different factors. Let’s look at how VantageScore weighs each factor:

Payment history (41%): Your past ability to pay bills on time.
Depth of credit (20%): The ages and types of credit accounts you have.
Credit utilization (20%): How much of your credit limit you’re using.
Recent credit (11%): The number of hard inquiries on your credit report.
Balances (6%): The total balances on your credit accounts.
Available credit (2%): The amount of credit you have available to you.

What Kind of Loan Can I Get With a 720 Credit Score?

As mentioned above, a good credit score can help you qualify for better rates and terms for loans. However, it’s important to keep in mind that your credit score isn’t the only factor that lenders look at when reviewing your loan application. Your income, employment, credit history, and debt-to-income ratio are also taken into consideration during the approval process.

With that in mind, here’s a look into the loans you can generally expect to qualify for with a 720 credit score. Assuming you also qualify for income thresholds as well.

Mortgages

Generally, mortgage lenders require a minimum credit score of 620, so you should have no problem qualifying for a mortgage with a 720 credit score. You’ll also likely qualify for low interest rates, although you might not get the best rate available. Borrowers who qualify for the lowest interest rates typically have a 760 credit score or higher.

Additionally, how much of a down payment you put down may influence your interest rates. A larger down payment provides less risk to the lender because you have additional stake in the house.

Auto Loans

A 720 credit score will allow you to qualify for an auto loan. When looking at the average car loan interest rates, borrowers with credit scores between 661 and 780 qualify for an average used car APR of 7.83% and an average new car APR of 5.82%. However, if you bring your score to 781 or above, you can expect a 1.84% lower interest rate for used cars and a 1.07% lower interest rate for new cars, on average.

Personal Loans

With a 720 credit score, you’ll have many options for personal loans, so you should shop around for the best rates. Personal loan interest rates can range from 6% to 36%, although a good credit score should allow you to qualify for rates on the lower end of that spectrum. According to recent personal loan statistics, the average interest rate is 11.2%.

Student Loans

While federal student loans don’t have credit score requirements, private student loan lenders typically require a good credit score. With a 720 score, you’ll likely get approved by most lenders and may even qualify for the best interest rates.

Credit Cards

Most credit card issuers will approve borrowers with a 720 credit score and potentially offer the lowest interest rates. You can likely even get approved for a 0% APR card. Keep in mind that certain prestigious credit cards that provide luxurious perks require excellent credit to qualify plus additional requirements. Therefore, you may need to improve your credit score before applying for an exclusive credit card.

How to Further Improve Your 720 Credit Score

If you have a good credit score but want to reach the very good or excellent range, here are some tips for how to make your good credit score even better:

Pay your bills on time: Since 720 is a high credit score, a single late payment can cause a significant drop in points. Make sure to continue paying your bills on time to further improve your credit.
Make payments more frequently: Making multiple payments on your credit card bill each month can help keep your credit utilization low.
Request a credit limit increase: Another way to lower your credit utilization is to increase your credit limit.
Leave credit accounts open: Avoid closing old credit accounts to maintain the length of your credit history.
Space out new credit applications: Wait six months between credit card applications to limit the number of hard inquiries on your credit report.
Get credit for rent and utility payments: If you regularly pay your bills on time, a rent and utility reporting service can report your payments to the credit bureaus, which may help improve your credit.
Dispute any errors: Check your credit report at least once a year and challenge any inaccurate information you find.

While a 720 credit score is considered good, there’s still room for you to stay on top of your credit—that’s where ExtraCredit® comes in. ExtraCredit is a credit management product that helps you check your FICO® scores, view your credit reports from all three credit bureaus, report rent and utilities, and more. Start your free trial* today.

*Your 7-day trial will begin after agreeing to these terms and submitting your ExtraCredit® sign-up. After your trial period, your subscription will automatically continue on the same day every month as the day you started your trial membership. The free trial is available for new ExtraCredit customers only. The credit card you provided will be charged $24.99 (plus any applicable tax) on the next business day and monthly; after your trial period unless you cancel. You may cancel at any time by downgrading your service level in your settings or by contacting us at [email protected]. Dishonored payments will result in an automatic downgrade to the free credit.com product.

Source: credit.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.

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

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.

Raisin

Simply select one of the high-yield savings products offered by their network of federally insured banks and credit unions to begin your savings journey.

You can open a free Raisin account in just a few minutes!

Compare Rates

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.

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

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

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

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.

Chime

Chime offers mobile and online financial services with an award-winning app that allows you to manage your money on-the-go!

Set up direct deposit and get your paycheck up to 2 days earlier!

Sign Up

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 3, 2023 by Brett Tams

The decision to become a physician assistant, or PA, is a noble but big one. PAs work at hospitals, medical offices, nursing homes, retail clinics, community health centers, and in the federal government.

Becoming a PA often means taking on student loans, which begs the question: Is PA school worth the debt?

Average Cost of PA School

In the 2019-2020 school year, the average cost of PA school was $56,850 for two years at an in-state school and $101,500 for an out-of-state school, according to the American Academy of Physician Assistants.

Before sticker shock sets in, the average salary of certified PAs in 2022 was $125,270 per year. Those working in outpatient care centers, one of the highest paying locations, average a mean annual salary of $137,040.

Once those salaries are claimed and regularly earned, there’s the matter of loan repayment. This guide will help readers consider strategies to handle PA school debt.

Recommended: How Much Does PA School Cost?

Physician Assistant (PA) School Repayment Options

Fortunately, there are options available for PAs who are mindful of interest and debt accumulating in their name. The big one is the federal government’s Public Service Loan Forgiveness program, which kicks in “if you are employed by a U.S. federal, state, local, or tribal government or not-for-profit organization.” PSLF forgives the remaining balance on Direct Loans after 120 qualifying payments (a big number that can often boil down to 10 years’ worth of payments) under a qualifying repayment plan.

Another option for PAs is an income-driven repayment plan. There are four plans to choose from, including Income-Contingent Repayment, Pay As You Earn, Revised Pay As You Earn, and Income-Based Repayment. Similar to Public Service Loan Forgiveness, the motivation for these plans is working toward student loan forgiveness — if PAs can’t qualify for PSLF, possibly because they work for a private employer, they could still receive loan forgiveness after 20 or 25 years of repayment under an income-driven repayment plan.
💡 Quick Tip: Some student loan refinance lenders offer no fees, saving borrowers money.

Other Payment Programs

There are also federal and state programs that reimburse health care workers in underserved areas, also called Health Professional Shortage Areas. The Health Resources & Services Administration offers a searchable online database of shortage areas by state and county, and a tool to check if a location has been officially designated as an underserved area.

Then there are State-based Loan Repayment Programs, whose financial incentive can vary depending on specialty. Colorado, for example, offers $90,000 for a full-time PA ($45,000 for a part-time PA), and PAs must “agree to work for a term of three years at an approved site, work part-time or full-time with a minimum of clinical contact hours, and also meet the hourly requirements during the entire service obligation.”

States vary in requirements and awards. The Health Resources & Services Administration also is of help in looking into SLRPs.

Planning for the Future

One way to minimize the shock of shouldering PA school debt is to build a budget — and stick to it. Although pretty much everyone knows that budgeting is a smart idea, few actually put it into practice: According to the National Foundation for Credit Counseling, more than half the population (56%) did not have a budget in 2021.

A simple way to create a budget is to list out all of your fixed expenses. Fixed expenses do not change month-to-month and include things like rent or mortgage payments, car payments, student loan payments, daycare costs, cell phone services, gym memberships, and more. Next, list out your variable expenses, which do change depending on the month. Variable expenses include food, gas, entertainment, utilities, clothing, and emergency expenses. If your income does not exceed your spending, create spending limits for your variable expenses. Make sure to budget for retirement, emergency savings, and other miscellaneous expenses that may crop up.

Refinancing School Debt

It’s no secret that pretty much any type of higher education career often means taking on considerable student loan debt. If it reaches a point where making real progress on repaying the loans feels nearly impossible, federal student loan repayment and forgiveness programs either don’t apply or aren’t the right fit, or personal loans are involved, then refinancing with a private lender might be a good option.

With refinancing, a new loan is used to pay off one or more existing federal or private loans. In addition to combining multiple loans into one, qualified borrowers may also land a better interest rate, reducing the amount they pay in interest over the life of the loan assuming the loan term does not change.

Recommended: Student Loan Refinancing Calculator

However, refinancing federal student loans with a private lender means a borrower is no longer eligible for many of the state and federal programs mentioned above, or other protections and benefits extended to federal student loan borrowers. Those looking to combine federal loans only can consider a student loan consolidation.

Refinancing Student Loans With SoFi

Looking to lower your monthly student loan payment? Refinancing may be one way to do it — by extending your loan term, getting a lower interest rate than what you currently have, or both. (Please note that refinancing federal loans makes them ineligible for federal forgiveness and protections. Also, lengthening your loan term may mean paying more in interest over the life of the loan.) SoFi student loan refinancing offers flexible terms that fit your budget.

With SoFi, refinancing is fast, easy, and all online. We offer competitive fixed and variable rates.

SoFi Student Loan Refinance
If you are a federal student loan borrower, you should consider all of your repayment opportunities including the opportunity to refinance your student loan debt at a lower APR or to extend your term to achieve a lower monthly payment. Please note that once you refinance federal student loans you will no longer be eligible for current or future flexible payment options available to federal loan borrowers, including but not limited to income-based repayment plans or extended repayment plans.

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

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.

SOSL0623051

Source: sofi.com

Apache is functioning normally

December 3, 2023 by Brett Tams

San Antonio is the second-largest city in Texas by population and the seventh-largest city in the United States. The city has been a popular living option because of its abundant activities, rich history, green spaces and trails and affordability. If you’re planning on moving into the Military city, here are we found the best apartments in San Antonio for you.

Photo source: Tara Apartments / Rent.

This newly-renovated Alamo Heights community contains one- to three-bedroom units starting in the low $800s. Apartments are sleek and modern, featuring quartz countertops and stainless-steel appliances.

Residents enjoy a plethora of community amenities, including basketball and tennis courts, a children’s playground, a swimming pool and on-site laundry facilities. These amenities make it one of best apartments in San Antonio.

Photo source: Pure View at TPC / Rent.

An excellent location and modern style collide at Pure View at TPC. In addition to being minutes from the famous JW Marriott San Antonio Hill Country Resort & Spa, Pure View at TPC offers luxury amenities such as in-unit garden tubs and a resort-style on-site pool.

Residents can enjoy a tanning area, a Starbucks Wi-Fi lounge, game rooms and a fitness center. If you’re concerned about security, you’ll be relieved to know that this complex is also a limited-access gated community.

Photo source: Alamo Park / Rent.

With its convenient proximity to the lively Alamo Heights area of the city, Alamo Park offers a stellar location with the living space you need to live comfortably.

At this apartment, you’ll also find two swimming pools, a dog park, a sand volleyball court and pavilion and barbecue picnic areas for when you want to enjoy the many days of San Antonio sunshine.

Photo source: The Valencia on Four 10 / Rent.

In addition to its stellar location near Loop 410 and Lackland Air Force Base, Valencia on Four 10 provides everything you could need on-site, including a spa, fitness center, hot tub, two swimming pools, tennis court and laundry facilities.

The units range from a 722-square-foot one-bedroom to 1,454-square-foot two-bedroom apartments, so whichever option you choose, you’ll have plenty of space to relax.

Photo source: Vineyard Springs / Rent.

Vineyard Springs offers resident amenities such as valet trash, poolside Wi-Fi, a theatre and putting green, just to mention a few. If you find your wardrobe overflowing these days, the Vineyard also boasts oversized closets.

Even with these amenities, rent prices are very affordable, starting in the low $800s, making it an excellent value.

Photo source: Villa de Valencia / Rent.

Villa de Valencia is conveniently off Interstate 35, which can take you anywhere in the city. This is a bonus and why it makes our best apartments in San Antonio list.

In addition to the on-site children’s playscape, the community is pet-friendly and offers some paid utilities included in the rent total. The community is also currently under renovations, so future residents can look forward to newly-upgraded units.

Photo source: Apartments at Westover Hills / Rent.

With rents starting at $712 a month, the Apartments at Westover Hills offer excellent amenities at a great value. This pet-friendly community boasts a jogging trail, pet park, fitness center and an outdoor cooking area.

Lastly, units range from one to three bedrooms, so there are plenty of options depending on the amount of living space you need.

Photo source: The Place at Houston Street Townhomes / Rent.

The Place at Houston Street is a townhome community with five different floor plans and a long list of community amenities. The community is pet-friendly and close to public parks, giving you plenty to do in the area with your furry friends. There is a playscape for the kids, full-size garages for your vehicle and guest parking for your visitors.

If you enjoy apartment living but crave a little more space, this is a great option.

Photo source: Broad Viewe / Rent.

Starting in the mid-$600s, Broad Viewe is a pet-friendly community featuring in-unit amenities such as built-in bookshelves and butcher-block countertops. Within this community, you’ll also find newly renovated laundry facilities, an inline skating track and a large playground for the kids.

When you’re ready to soak up some sunshine, enjoy one of the two pools or barbecue at one of the picnic areas. The amenities combined with the modest rent prices make it a truly excellent value.

Photo source: Apartments at the Medical Center / Rent.

If you’re looking for an apartment in the heart of the Medical Center, look no further.

The Apartments at the Medical Center range from one- to three-bedroom units with amenities such as granite countertops, a resort-style pool, a clubhouse and tennis courts. Residents also enjoy gated access in this pet-friendly community.

Photo source: Costa Dorada / Rent.

Relax in the hot tub or venture out to the clubhouse as a resident at Costa Dorada. The community is on SE Military Drive, a major roadway close to shopping, food and the historic San Antonio Missions Park.

Plus, the community also features limited-access gates, providing extra security for residents.

Photo source: Stone Oak / Rent.

Luckily, the Stone Oak area is known for its abundant shopping and new development, and the location of the Apartments at Stone Oak allows you to stay right in the middle of all of the action. This luxury complex offers in-unit garden tubs, oversized closets and vaulted ceilings.

Residents can also enjoy on-site tennis courts, a recreation room, a fitness center and a media center, too.

Photo source: Apartments at University Heights / Rent.

Located minutes from Six Flags Fiesta Texas, the Apartments at University Heights are in an excellent location for theme-park enthusiasts.

Even if you don’t feel like venturing out, the community offers resident amenities such as basketball courts, a fitness center, a playground and a swimming pool. In addition to the on-site offerings, the units also feature garden tubs, oversized closets and hardwood floors.

Photo source: The Place at Castle Hills / Rent.

If high ceilings are on your wish list, the Place at Castle Hills features 9-foot ceilings and crown molding. The community offers a greenbelt and walking trail in conjunction with a swimming pool, fitness center and business center for resident use.

Additionally, it’s also close to I-10 and I-410, making the daily commute easier.

Photo source: Ventura Ridge / Rent.

Work-from-home employees will love Ventura Ridge, which features AT&T fiber internet. If you find yourself getting stir crazy during the workday, Ventura Ridge also offers an expansive outdoor area with amenities such as a resort-style pool, a fitness center and a clubhouse with multi-screen televisions for residents to enjoy. All in all, that’s a deal when working remote these days.

In fact, Tthe location provides easy access to I-10 and Loop 1604, so even commuters will find their niche in this modern community. Rents start at a little over $1,000, making luxury affordable.

Photo source: Oak Valley Apartments / Rent.

If you’re looking for a pet-friendly affordable housing option, Oak Valley Apartment Homes are income-restricted units close to I-35.

There is no shortage of amenities. This gated community offers a fitness center, a swimming pool, a business center, a community clubhouse, on-site laundry facilities and a children’s playground.

Photo source: Gateway Residents / Rent.

The Gateway Residences at Port San Antonio is a townhome community with unit options ranging from two to four bedrooms. The community displays large greenspace areas, which pair nicely with pet-friendly policies.

Located just minutes from the hustle and bustle of downtown San Antonio, the location of this community is excellent for those wanting to explore the city with easy access to the amenities that downtown has to offer.

Photo source: Alamo Heights / Rent.

Affordable luxury starts at $833 a month at the Apartments at Alamo Heights. This gated community’s amenities include a hot tub, running and biking trails, a pet park and a fitness center.

Not to mention, the location of this community puts you in the middle of the desirable Alamo Heights neighborhood, which is close to downtown and landmarks like the San Antonio Zoo.

Photo source: The Meadows at Bentley Drive / Rent.

If you’re looking for something on the east side of San Antonio, The Meadows at Bentley Drive is an excellent choice.

Located in the middle of east San Antonio near Randolph Air Force Base, the complex offers a barbecue pit, on-site laundry, a community clubhouse with a full kitchen and a children’s playground.

Photo source: Woodlake Trails / Rent.

The large three- and four-bedroom units at Woodlake Trails balance extra space with an excellent location.

Located 20 minutes from downtown San Antonio, this community offers spacious three- and four-bedroom homes surrounded by trees and greenspace. It also features a pool, a clubhouse and a children’s playscape.

Photo source: Woodlake Villas / Rent.

If cathedral ceilings appeal to you, take a look at Woodlake Villas. This East San Antonio community is newly renovated, with one- and two-bedroom units within driving distance of everything the city offers.

On the other hand, if you prefer to take the bus, the community is close to public transportation options too.

Photo source: The Enclave at Buckhorn Crossing / Rent.

Starting at just $720 a month, The Enclave at Buckhorn Crossing balances value with amenities. One- to three-bedroom units feature built-ins such as book shelving, computer desks and entertainment centers.

The community amenities are great, too. They include a heated spa, a sand volleyball court and a swimming pool with a wading area. This pet-friendly place even has a dog ranch.

Photo source: Village at Roosevelt Apartments / Rent.

In all honesty, if you find yourself wanting to live within a stone’s throw of Downtown, the Village at Roosevelt Apartments is ideal.

This gated community has a playground, a laundry facility and a business center available for residents. It also features bike storage, which is perfect if you intend to hit the various nearby bike trails.

Photo source: Military Village Apartments / Rent.

For those who commute to Lackland Air Force Base, the Military Village Apartments provide an excellent location. This pet-friendly community features upgraded fixtures, wood plank flooring and open kitchens with plenty of counter space.

This community is also close to shopping at Ingram Park Mall and has easy access to Loop 410.

Photo source: Culebra Creek Apartments / Rent.

Located on the west side of the city, Culebra Creek Apartment Homes offer units with one to four bedrooms featuring oversized closets and fully-appointed kitchens. Since this is a modern community, expect bike racks, a covered picnic pavilion, a children’s playground and a swimming pool.

Starting in the mid-$700s, it offers great value combined with spacious units.

The Best Apartments in San Antonio

Finding a great place to live in San Antonio doesn’t need to get complicated. If you’re ready to move, get started and find apartments for rent in San Antonio.

Furthermore, we looked at all available multifamily rental property inventory from January to June 2021 on Rent. to determine which properties with a San Antonio mailing address are most viewed by organic internet searches. The information included in this article is used for illustrative purposes only. The data contained herein does not constitute financial advice, availability, or a pricing guarantee for any apartment.

Source: rent.com

Apache is functioning normally

December 3, 2023 by Brett Tams

Young attractive beautiful female entrepreneur fund borrower crazy joyful ecstatic face gesture hand yes feeling amazed in peer to peer P2P lending finance or crowdfunding network microfinance approve

Launching a business often involves acquiring funding, which can come from personal savings, angel investors, or loans. However, these options may not always be readily available, leaving businesses reliant on lenders such as banks and government programs.

To assess a business’s creditworthiness and determine its suitability for a line of credit, lenders review the company’s credit profile. This assessment considers factors like payment history, credit usage, credit mix, and other financial indicators that reflect the business’s financial responsibility.

Establishing Business Credit: The Foundation for Growth

Building business credit is crucial for new businesses as it allows them to access financing, secure favorable terms on contracts, and establish a strong financial reputation. Here’s a step-by-step guide to establishing business credit:

Incorporate Your Business: Business credit is separate from personal credit, so incorporating your business as an LLC, C or S corporation, or LLP is essential for building a distinct credit profile.
Obtain an Employer Identification Number (EIN): An EIN serves as the IRS’s reference for tracking a company’s tax filings and is required for businesses with employees. Sole proprietorships are not mandated to have an EIN, but it’s recommended to protect personal credit from business liabilities.
Explore Supplier Credit: Supplier credit involves extending payment terms for purchases, allowing businesses to access supplies and pay for them later. This option is particularly beneficial for startups with limited cash flow.
Leverage Vendor Credit: Vendor credit provides essential services or products on short-term financing terms, typically with minimal requirements. Net 30 accounts, where payment is due within 30 days, are a common form of vendor credit.
Utilize Service Credit: Consistent and timely payments for services like internet, web hosting, cable, power, and cellphone airtime can also contribute to building business credit. These deferred payment contracts demonstrate a business’s commitment to financial obligations.
Consider Retail Credit Cards: Retail credit cards are often easier to obtain than traditional business credit cards and may offer rewards like cashback, points, and discounts. These cards are typically limited to a single store or a major retailer’s network.
Apply for Business Credit Cards: Business credit cards provide access to revolving credit, allowing businesses to charge company expenses and steadily build their credit profile. These cards can be used for various expenses, including licenses, insurance, taxes, utilities, payroll, supplies, and marketing.

The Path to Success: Building Credit Over Time

Establishing business credit takes time, especially for startups. However, by utilizing financial tools like supplier credit, retail credit, and business credit cards, businesses can cultivate a strong credit profile and pave the way for future growth and success.

Source: creditabsolute.com

Apache is functioning normally

December 2, 2023 by Brett Tams

The information provided on this website does not, and is not intended to, act as legal, financial or credit advice. See Lexington Law’s editorial disclosure for more information.

The debt snowball method is a repayment plan that involves paying off debts in order of lowest to highest principal sums. As you pay off small loans, you gain the confidence and money needed to repay larger ones.

Paying multiple debts is a juggling act. On one hand, paying all debts at once is tempting but expensive. On the other hand, paying one at a time is more affordable, but that takes long-term financial management. Thankfully, you can use the debt snowball method to simplify your debt payoff plan..

The debt snowball method is a debt repayment plan in which you quickly pay off small debts to focus on larger ones. Even though it’s simple in concept, you may have questions about the execution. To help you out, we’ll explain the method in detail, walk you through its steps and share a few best practices.

Table of contents:

What is the debt snowball method?
How to snowball debt in 4 steps
Snowball method example
Best practices for the snowball method of paying off debt
The snowball method vs. avalanche method of debt consolidation
Pay off debt and improve your credit with Lexington Law Firm

What is the debt snowball method?

The snowball method is a debt repayment approach where you pay off debts in order of smallest to largest principal sums. After making the minimum payment on all debts, spenders invest all they can into debts with the smallest principal. Once you pay off these small debts, you can roll funds over to the next highest.

Unlike other debt consolidation and payoff strategies, the snowball method doesn’t factor in interest rates. Instead, this approach focuses on principal payments. With each debt repaid, you should feel better equipped to tackle the next in line.

Who should use the snowball method?

Anyone juggling multiple debts should consider the snowball method. It provides a simple strategy for organizing your debts. As you knock out small debts, the snowball effect offers the momentum and confidence you need to get out of debt.

Pros of the snowball method

The snowball method of debt repayment offers distinct benefits over other approaches. The main advantages include:

Actionability: Small changes to your budgeting make this approach actionable. It doesn’t come with any prerequisite or additional charges. As a result, jumping in is fast and straightforward.
Empowerment: If you can’t pay your bills or keep up with debt, the snowball method mentally and financially empowers you. With every small debt cleared, you see progress and stay motivated as you pay off greater debts.
Simplicity: The snowball method is easy to wrap your head around. It also breaks large chunks of debt into smaller, approachable pieces.

Cons of the snowball method

Despite its strengths, the snowball method comes with a few downsides, including:

Interest accrual: If your larger loans have a higher interest rate, the snowball method may not work as well. According to these credit facts, if you follow the strategy, higher interest rates may cost you more over time.
Emphasis on small debts: This approach works best when knocking out small debts back to back. You won’t see the same immediate results if you’re juggling a few large loans.
Inflexibility: The snowball method doesn’t leave much room for customization. You may want to consider another option if you want a malleable strategy you can modify.

How to snowball debt in 4 steps

Thanks to its simplicity, you can implement the snowball method in only four steps. This is the process in detail:

Step 1: Take a debt inventory

The first step of the debt snowball method is to list all your debts from smallest to largest. While you can keep interest in mind, focus on the principal balance. If two debts share a similar principal, you can place the one with a higher interest rate first.

Step 2: Make minimum payments on all debts

Make the minimum payment on each of your debts every month. This step is crucial because you don’t want to incur any fees or penalties for not making payments on other debts even as you focus on one in particular.

Step 3: Pay down your smallest debt

On top of the minimum payment, invest as much as you can into your lowest principal balance. While you want to pay it off quickly, don’t forget to set money aside for:

Savings
Groceries, laundry and other household costs
Day-to-day expenses like eating out or investing in your hobbies

Step 4: Repeat until debt-free

As you pay off each debt, you can roll more money into larger ones. When you aren’t juggling as many debts, you’ll have the resources to focus on paying down the highest sums. Eventually, most or all of your debts should get paid off.

Snowball method example

To help explain the snowball method, here is an example of how you budget for it. Assume you make $2,500 a month and have to manage these expenses:

Rent: $700/month
Utilities: $150/month
Student debt: Minimum payment of $120/month (total principal: $21,000)
Medical debt: Minimum payment of $60/month (total principal: $4,500)
Auto debt: Minimum payment of $40/month (total principal: $1,800)
Credit card debt: Minimum payment of $15/month (total principal: $900)

You would implement the snowball method of paying off debt like this:

Pay necessary expenses like rent and utilities. This brings you down to $1,650.
Pay the minimum balance on all debts. Your spending money drops to $1,415.
Pay down your lowest debt. In this case, it’s the credit card debt. Let’s say you pay $500 and bring that principal down to $400. Your remaining balance comes out to $915.
Spend the remainder of your money on day-to-day expenses. Remember to save as much as you can. It never hurts to have an emergency fund ready.
Once you pay off the credit card debt, move on to the next lowest principal sum. So, you would pay off auto, medical and student loans in that order.

Best practices for the snowball method of paying off debt

To see the best returns on the snowball method, follow these tips:

Don’t base repayment order on interest: Anyone trying the snowball method should focus on principal balances. This approach relies on small wins to build up to bigger debts. Large, high-interest loans get in the way of that.
Mitigate high interest with lower rates: While focusing on small loans, try to reduce interest on larger ones. Negotiating a lower interest rate will help save money in the long run.
Track spending over time: You should avoid wasting money that could go toward paying off debt. Additionally, track the amount you spend on debt repayment. That way, you can stay on track as weeks or months pass.
Don’t fall behind on bills: Falling behind on bills or loans can lead to fees or a higher interest rate. In the long run, this will slow down your repayment.
Set aside emergency funds: You shouldn’t invest every cent in settling your debts. An emergency fund can help you avoid more debts after home repairs or health issues.

The snowball vs. avalanche method

The avalanche method is another way of paying off debt that determines payment order by interest rate. In both the avalanche and snowball approaches, you make minimum payments on all debt each month. From here, they diverge:

The avalanche method has spenders pay off the debt with the highest interest rate first. Once customers pay off this loan, they move to the one with the next highest interest rate.
The snowball method ignores interest rates to focus on principal payments.

While the snowball method quickly pays off small debts, the avalanche approach is slow and steady. It may take you longer to pay off your debts, but you will accrue less interest. So, depending on your interest rate and principal sum, you may pay less overall, which could make this option more appealing.

Which method is right for you?

The avalanche and snowball methods can both help with debt repayment. The right approach for you depends on personal preference and your financial situation. To find the right strategy, ask yourself:

Do you need help staying motivated to pay off debts? If so, the snowball method offers more small wins to keep you going.
Is your financial management style analytical and patient? Then the avalanche method will complement a slow and steady approach.
Do you have several small loans or a few high-interest loans? The snowball method suits the first situation, and the avalanche method fits the second.

Work to improve your finances and your credit with Lexington Law Firm

Whether you need to rebuild your credit or get out of debt quickly, the debt snowball method can help. Unlike other strategies, the snowball approach is easy to jump into. While paying off debts can take time, this method gives you the confidence and direction to pay down debts one by one. While using any debt repayment plan, you don’t want to forget about maintaining or even improving your credit. Stay current on all your bills, create a budget and track your spending. If you’re working on repairing your credit, Lexington Law Firm could help you on your journey with our credit repair services.

Note: Articles have only been reviewed by the indicated attorney, not written by them. The information provided on this website does not, and is not intended to, act as legal, financial or credit advice; instead, it is for general informational purposes only. Use of, and access to, this website or any of the links or resources contained within the site do not create an attorney-client or fiduciary relationship between the reader, user, or browser and website owner, authors, reviewers, contributors, contributing firms, or their respective agents or employers.

Reviewed By

Brittany Sifontes

Attorney

Prior to joining Lexington, Brittany practiced a mix of criminal law and family law.

Brittany began her legal career at the Maricopa County Public Defender’s Office, and then moved into private practice. Brittany represented clients with charges ranging from drug sales, to sexual related offenses, to homicides. Brittany appeared in several hundred criminal court hearings, including felony and misdemeanor trials, evidentiary hearings, and pretrial hearings. In addition to criminal cases, Brittany also represented persons and families in a variety of family court matters including dissolution of marriage, legal separation, child support, paternity, parenting time, legal decision-making (formerly “custody”), spousal maintenance, modifications and enforcement of existing orders, relocation, and orders of protection. As a result, Brittany has extensive courtroom experience. Brittany attended the University of Colorado at Boulder for her undergraduate degree and attended Arizona Summit Law School for her law degree. At Arizona Summit Law school, Brittany graduated Summa Cum Laude and ranked 11th in her graduating class.

Source: lexingtonlaw.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.

To further guide your financial decisions, sign up for our informative newsletter.

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