You just learned of the passing of a loved one. During this stressful and emotionally taxing time, you also find out that you’re receiving an inheritance. While you’re grateful for the unexpected windfall, knowing what to do with an inheritance can bring its own share of stress.
While the amounts vary greatly, the Federal Reserve Board’s Survey of Consumer Finances reports that an average of roughly 1.7 million households receive an inheritance each year. First words of wisdomâresist the urge to spend it all at once. According to a study funded by the Bureau of Labor Statistics, one-third of people who receive an inheritance spend all of itâand even dip into other savingsâin the first two years.
Not me, you say? Still, you might be asking, “What should I do with my inheritance money?” Follow these four steps to help you make smart decisions with your newfound wealth:
1. Take time to grieve your loss
Deciding what to do with an inheritance can bring with it mixed emotions: a sense of reprieve for this unexpected financial gain and sadness for the loss of a loved one, says Robert Pagliarini, certified financial planner and president of Pacifica Wealth Advisors.
During this time, you might feel confused, upset and overwhelmed. âA large inheritance that pushes you out of your financial comfort zone can create anxiety about how to best manage the money,” Pagliarini says. As an inheritor, Pagliarini adds that you may feel the need to be extra careful with the funds; even though you know it is your money, it could feel borrowed.
The last thing you want to do when deciding what to do with an inheritance is make financial decisions under an emotional haze. Avoid making any drastic moves right away, such as quitting your job or selling your home. Some experts suggest giving yourself a six-month buffer before using any of your inheritance, using the time instead to develop a financial plan. While you are thinking about things to do with an inheritance, you can park any funds in a high-yield savings account or certificate of deposit.
âA large inheritance that pushes you out of your financial comfort zone can create anxiety about how to best manage the money.â
2. Know what you’re inheriting
Before you determine the things to do with an inheritance, you need to know what you’re getting. Certified financial planner and wealth manager Alex Caswell says how you use your inheritance will largely depend on its source. Typically, Caswell says an inheritance will come in the form of assets from one of three places:
Real estate, such as a house or property. As Caswell explains, if you receive assets from real estate, you will transfer them into your name. As the inheritor, you can choose what to do with the assetsâtypically sell, rent or live in them.
A trust account, a legal arrangement through which funds are held by a third party (the trustee) for the benefit of another party (the beneficiary), which may be an individual or a group. The creator of the trust is known as a grantor. âIf someone inherits assets through a trust, the trust documents will stipulate how these assets will be distributed and who ultimately decides how they are to be invested,” Caswell says. In some cases, the assets get distributed outright to you; in other instances, the trust stays intact and you get paid in installments.
A retirement account, such as an IRA, Roth IRA or 401(k). These accounts can be distributed in one lump sum, however, there may be requirements related to the amount of a distribution and the cadence of distributions.
When considering things to do with an inheritance, know that inherited assets can be designated as Transfer on Death (TOD) or beneficiary deeds (in the case of real estate), which means the assets can be transferred to beneficiaries without the often lengthy probate process. An individual may also bequeath cash or valuables, like jewelry or family heirlooms, as well as life insurance or stock certificates.
Caswell says if your inheritance comes in the form of investment assets, such as stocks or mutual funds, you’ll want to think of them as part of your own financial picture. âAll too often, we see individuals end up treating inherited assets as a living extension of their passed relative,” Caswell says. Consider how the investments can be used to support your financial goals when thinking about things to do when you get an inheritance.
An average of roughly 1.7 million households receive an inheritance each year.
3. Plan what to do with your financial gain
Just like doing your household budgeting, it’s important to “assign” your inheritance to specific purposes or goals, says Pacifica Wealth Advisors’ Pagliarini. Depending on your financial situation, the simple concepts of save, spend and give may be a good place to start when deciding on things to do when you get an inheritance:
SAVE:
Bolster your emergency fund: You should have at least three to six months of living expenses saved up to avoid unexpected financial shocks, such as job loss, car repairs or medical expenses. If you don’t and you’re deciding what things to do with an inheritance, consider parking some cash in this bucket.
Save for big goals: Now could be a good time to boost your long-term savings goals and pay it forward. Things to do when you get an inheritance could include putting money toward a child’s college fund or getting your retirement savings on track.
SPEND:
Tackle debt: If you’re evaluating what to do with an inheritance, high-interest debt is something you could consider paying off. Spending on debt repayment can help you save on hefty interest charges.
Reduce or pay off your mortgage: Getting closer to paying off your homeâor paying it off entirelyâcan also save you in interest and significantly lower your monthly expenses. Allocating cash here is a win-win.
Enjoy a little bit of it: It’s okay to use a portion of your inheritance on something you enjoy or find rewarding. Planning a vacation, investing in more education or paying for a big purchase could be good moves.
GIVE:
Donate funds to charity: Thinking about your loved one’s causes or your own can continue legacy goals and provide tax benefits.
When deciding what to do with an inheritance, taxes will need to be considered. “It is extremely important to be aware of all tax ramifications of any decision around inherited assets,” Caswell says. You could be required to pay a capital gains tax if you sell the gift (like property) that was passed down to you, for example. Also, depending on where you live, your inherited money could be taxed. In addition to federal estate taxes, several U.S. states impose an inheritance tax and/or an estate tax.
Since every situation is unique and tax laws can change, when considering things to do with an inheritance, consult a financial advisor or tax professional for guidance.
Make your windfall count
Receiving an inheritance has the potential to change your financial picture for good. When thinking about the things to do when you get an inheritance, be sure to give yourself ample time to grieve and to understand all of your options. Don’t be afraid to lean on the experts to get up to speed on any tax and legal implications you need to consider.
Planning can go a long way toward making the right decisions concerning your newfound wealth. Being responsible with your inheritance not only helps ensure your financial future, but will also honor your loved one’s legacy.
The post 4 Smart Things to Do When You Get an Inheritance appeared first on Discover Bank – Banking Topics Blog.
If the stock market crashed again, would you respond by investing more? Is day trading your sport of choice? Do you smirk at the idea of keeping money in a savings account instead of investing it?
If you answered yes to these questions, youâre probably an investor with a high risk tolerance.
Hold up, Evel Knievel.
Itâs fine to embrace a âno-risk, no-rewardâ philosophy. But some investments are so high-risk that they arenât worth the rewards.
10 Risky Investments That Could Lead to Huge Losses
Weâre not saying no one should ever consider investing in any of the following. But even if youâre a personal finance daredevil, these investments should give you serious pause.
Sure, if things go well, youâd make money â lots of it. But if things go south, the potential losses are huge. In some cases, you could lose your entire investment.
1. Penny Stocks
Thereâs usually a good reason penny stocks are so cheap. Often they have zero history of earning a profit. Or theyâve run into trouble and have been delisted by a major stock exchange.
Penny stocks usually trade infrequently, meaning you could have trouble selling your shares if you want to get out. And because the issuing company is small, a single piece of good or bad news can make or break it.
Fraud is also rampant in the penny stock world. One common tactic is the âpump and dump.â Scammers create false hype, often using investing websites and newsletters, to pump up the price. Then they dump their shares on unknowing investors.
2. IPOs
You and I probably arenât rich or connected enough to invest in an IPO, or initial public offering, at its actual offering price. Thatâs usually reserved for company insiders and investors with deep pockets.
Instead, weâre more likely to be swayed by the hype that a popular company gets when it goes public and the shares start trading on the stock market. Then, weâre at risk of paying overinflated prices because we think weâre buying the next Amazon.
But donât assume that a company is profitable just because its CEO is ringing the opening bell on Wall Street. Many companies that go public have yet to make money.
The average first-day returns of a newly public company have consistently been between 10% to 20% since the 1990s, according to a 2019 report by investment firm UBS. But after five years, about 60% of IPOs had negative total returns.
3. Bitcoin
Proponents of bitcoin believe the cryptocurrency will eventually become a widespread way to pay for things. But its usage now as an actual way to pay for things remains extremely limited.
For now, bitcoin remains a speculative investment. People invest in it primarily because they think other investors will continue to drive up the price, not because they see value in it.
All that speculation creates wild price fluctuations. In December 2017, bitcoin peaked at nearly $20,000 per coin, then plummeted in 2018 to well below $4,000. That volatility makes bitcoin useless as a currency, as Bankrateâs James Royal writes.
Unless you can afford to part ways with a huge percentage of your investment, bitcoin is best avoided.
4. Anything You Buy on Margin
Margining gives you more money to invest, which sounds like a win. You borrow money from your broker using the stocks you own as collateral. Of course, you have to pay your broker back, plus interest.
If it goes well, you amplify your returns. But when margining goes badly, it can end really, really badly.
Suppose you buy $5,000 of stock and it drops 50%. Normally, youâd lose $2,500.
But if youâd put down $2,500 of your own money to buy the stock and used margin for the other 50%? Youâd be left with $0 because youâd have to use the remaining $2,500 to pay back your broker.
That 50% drop has wiped out 100% of your investment â and thatâs before we account for interest.
5. Leveraged ETFs
Buying a leveraged ETF is like margaining on steroids.
Like regular exchange-traded funds, or ETFs, leveraged ETFs give you a bundle of investments designed to mirror a stock index. But leveraged ETFs seek to earn two or three times the benchmark index by using a bunch of complicated financing maneuvers that give you greater exposure.
Essentially, a leveraged ETF that aims for twice the benchmark indexâs returns (known as a 2x leveraged ETF) is letting you invest $2 for every $1 youâve actually invested.
We wonât bore you with the nitty-gritty, but the risk here is similar to buying stocks on margin: It can lead to big profits but it can also magnify your losses.
But hereâs whatâs especially tricky about leveraged ETFs: Theyâre required to rebalance every day to reflect the makeup of the underlying index. That means you canât sit back and enjoy the long-haul growth. Every day, youâre essentially investing in a different product.
For this reason, leveraged ETFs are only appropriate for day traders â specifically, day traders with very deep pockets who can stomach huge losses.
6. Collectibles
A lot of people collect cars, stamps, art, even Pokemon cards as a hobby. But some collectors hope their hobby will turn into a profitable investment.
Itâs OK to spend a reasonable amount of money curating that collection if you enjoy it. But if your plans are contingent on selling the collection for a profit someday, youâre taking a big risk.
Collectibles are illiquid assets. Thatâs a jargony way of saying theyâre often hard to sell.
If you need to cash out, you may not be able to find a buyer. Or you may need to sell at a steep discount. Itâs also hard to figure out the actual value of collectibles. After all, thereâs no New York Stock Exchange for Pokemon cards. And if you do sell, youâll pay 28% tax on the gains. Stocks held long-term, on the other hand, are taxed at 15% for most middle-income earners.
Plus, thereâs also the risk of losing your entire investment if your collection is physically destroyed.
7. Junk Bonds
If you have a low credit score, youâll pay a high interest rate when you borrow money because banks think thereâs a good chance you wonât pay them back. With corporations, it works the same way.
Companies issue bonds when they need to take on debt. The higher their risk of defaulting, the more interest they pay to those who invest in bonds. Junk bonds are the riskiest of bonds.
If you own bonds in a company that ends up declaring bankruptcy, you could lose your entire investment. Secured creditors â the ones whose claim is backed by actual property, like a bank that holds a mortgage â get paid back 100% in bankruptcy court before bondholders get anything.
8. Shares of a Bankrupt Company
Bondholders may be left empty-handed when a corporation declares bankruptcy. But guess whoâs dead last in terms of priority for who gets paid? Common shareholders.
Secured creditors, bondholders and owners of preferred stock (itâs kind of like a stock/bond hybrid) all get paid in full before shareholders get a dime.
Typically when a company files for bankruptcy, its stock prices crash. Yet recently, eager investors have flocked in to buy those ultracheap shares and temporarily driven up the prices. (Ahem, ahem: Hertz.)
That post-bankruptcy filing surge is usually a temporary case of FOMO. Remember: The likelihood that those shares will eventually be worth $0 is high.
You may be planning on turning a quick profit during the run-up, but the spike in share prices is usually short-lived. If you donât get the timing exactly right here, you could lose big when the uptick reverses.
9. Gold and Silver
If youâre worried about the stock market or high inflation, you may be tempted to invest in gold or silver.
Both precious metals are often thought of as hedges against a bear market because theyâve held their value throughout history. Plus in uncertain times, many investors seek out tangible assets, i.e., stuff you can touch.
Having a small amount invested in gold and silver can help you diversify your portfolio. But anything above 5% to 10% is risky.
Both gold and silver are highly volatile. Gold is much rarer, so discovery of a new source can bring down its price. Silver is even more volatile than gold because the value of its supply is much smaller. That means small price changes have a bigger impact. Both metals tend to underperform the S&P 500 in the long term.
The riskiest way to invest in gold and silver is by buying the physical metals because theyâre difficult to store and sell. A less risky way to invest is by purchasing a gold or silver ETF that contains a variety of assets, such as mining company stocks and physical metals.
10. Options Trading
Options give you the right to buy or sell a stock at a certain price before a certain date. The right to buy is a call. You buy a call when you think a stock price will rise. The right to sell is a put. You buy a put when you think a stock price will drop.
What makes options trading unique is that thereâs one clear winner and one clear loser. With most investments, you can sell for a profit to an investor who also goes on to sell at a profit. Hypothetically, this can continue forever.
But suppose you buy a call or a put. If your bet was correct, you exercise the option. You get to buy a winning stock at a bargain price, or you get to offload a tanking stock at a premium price. If you lose, youâre out the entire amount you paid for the option.
Options trading gets even riskier, though, when youâre the one selling the call or put. When you win, you pocket the entire amount you were paid.
But if you end up on the losing side: You could have to pay that high price for the stock that just crashed or sell a soaring stock at a deep discount.
FROM THE INVESTMENT FORUM
Investing 6/10/20 @ 6:48 PM
Question- equity for work 12/29/20 @ 2:51 PM
Home Repair 9/28/20 @ 3:53 PM
See more in Investment or ask a money question
What Are the Signs That an Investment Is Too Risky?
The 10 things we just described certainly arenât the only risky investments out there. So letâs review some common themes. Consider any of these traits a red flag when youâre making an investment decision.
Theyâre confusing. Are you perplexed by bitcoin and options trading? So is pretty much everyone else.If you donât understand how something works, itâs a sign you shouldnât invest in it.
Theyâre volatile. Dramatic price swings may be exciting compared with the tried-and-true approach of investing across the stock market. But investing is downright dangerous when everything hinges on getting the timing just right.
The price is way too low. Just because an investment is cheap doesnât mean itâs a good value.
The price is way too high. Before you invest in the latest hype, ask yourself if the investment actually delivers value. Or are the high prices based on speculation?
The bottom line: If you can afford to put a small amount of money in high-risk investments just for the thrill of it, fine â as long as you can deal with losing it all.
Robin Hartill is a certified financial planner and a senior editor at The Penny Hoarder. She writes the Dear Penny personal finance advice column. Send your tricky money questions to DearPenny@thepennyhoarder.com.
This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017.
When homeowners get ready to sell their property, they often spruce it up to improve curb appeal to make the home more marketable. Improvements varyâ¦
The post Thinking of Selling Your Commercial Property? Here are 5 Improvements That Can Help Increase Your Return first appeared on Century 21®.
Reality TV star Ty Pennington, known for changing peopleâs lives with his energetic personality on the original version of Extreme Makeover: Home Edition, is now looking to cash in on his own home makeover. Pennington has just listed his house — a beautiful and bright 1927 Craftsman in Venice, Calif. — for $2,795,000.
Pennington put his home design expertise to good use and carefully restored the property earlier this year with the help of his trusted interior designer, Patrick Delanty. Delanty, also known to be Halle Berry’s designer, has long been working alongside Ty Pennington, serving as his design director for Extreme Makeover and running his on-air design segments, most notably his presence on The Oprah Winfrey Show, Rachel Ray Show, NBCâs Nightline and Good Morning America.
Just like its reality TV star owner, the home is bright, cheerful and quirky, with colorful interiors exuding creativity and style. The property is listed by Patrice Meepos of Compass.
Ty Pennington’s house in Venice, CA. Image credit: Anthony Barcelo
Tucked away on a one-way street near the beach, Venice Boardwalk, canals and Abbot Kinney’s hot spots, the original 1927 dwelling has 3 beds, 3 baths, and a sizable living room with decorative fireplace, along with a sunken family room with large windows overlooking a newly landscaped, private back yard with koi pond.
Ty Pennington’s house in Venice, CA. Image credit: Anthony Barcelo Ty Pennington’s house in Venice, CA. Image credit: Anthony Barcelo Ty Pennington’s house in Venice, CA. Image credit: Anthony Barcelo Ty Pennington’s house in Venice, CA. Image credit: Anthony Barcelo Ty Pennington’s house in Venice, CA. Image credit: Anthony Barcelo
The ground level hosts the kitchen, laundry room, and bedroom with direct backyard access, as well as a full bath. On the upper level, there’s a master retreat and a second bedroom.
Ty Pennington added quite a few special touches to the 2,102-square-foot home, including bamboo flooring, baths adorned in vintage-inspired ceramic tile, a master bath sporting a standalone shower and an antique cast-iron freestanding tub, kitchen with concrete countertops and a wraparound, porcelain-tiled porch. There’s also a beautiful backyard that looks like a great place to entertain guests.
Ty Pennington’s house in Venice, CA. Image credit: Anthony Barcelo Ty Pennington’s house in Venice, CA. Image credit: Anthony Barcelo Ty Pennington’s house in Venice, CA. Image credit: Anthony Barcelo Ty Pennington’s house in Venice, CA. Image credit: Anthony Barcelo
While Ty Pennington did not return to host HGTV’s 2020 version of Extreme Makeover: Home Edition (which is hosted by Modern Family‘s Jesse Tyler Ferguson), you can catch the two time Emmy award winner in his other home improvement series, Trading Spaces — which recently restarted airing after a 10-year hiatus.
Morgan Brown Re-Lists Stunning West Hollywood Home Amid Split from Actor Gerard Butler Wayne Gretzky is Selling his $22.9M California Home Designed by âThe Megamansion Kingâ Chrissy Teigen & John Legend Buy $17.5M Beverly Hills Mansion After Cashing Big on Previous Home 5 Fabulous Homes of Your Favorite Formula 1 Drivers
The post Extreme Makeover’s Ty Pennington Lists Bright and Beautiful Venice Beach Home appeared first on Fancy Pants Homes.
Millions of Americans struggling to make their monthly mortgage payments because of COVID-19 have received relief through the Coronavirus Aid, Relief, and Economic Security Act.
But mortgage forbearance is only temporary, and set to expire soon, leaving many homeowners who are still struggling perplexed on what to do next.
Enacted in March, the CARES Act initially granted a 180-day forbearance, or pause in payments, to homeowners with mortgages backed by the federal government or a government-sponsored enterprise such as Fannie Mae or Freddie Mac. Furthermore, some private lenders also granted mortgage forbearance of 90 days or more to financially distressed homeowners.
According to the Mortgage Bankers Association, 8.39% of loans were in forbearance as of June 28, representing an estimated 4.2 million homeowners nationwide.
So what are affected homeowners to do when the forbearance goes away? You have options, so it’s well worth contacting your lender to explore what’s best for you.
âIf you know you’re going to be unable to meet the terms of your forbearance agreement at its maturity, you should call your loan servicer immediately and see what options they may be able to offer to you,” says Abel Carrasco, mortgage loan originator at Motto Mortgage Advisors in St. Petersburg, FL.
Exactly whatâs available depends on the fine print in the terms of your mortgage forbearance agreement. Hereâs an overview of some possible avenues to explore if you still canât pay your mortgage after the forbearance period ends.
Extend your mortgage forbearance
One simple option is to contact your lender to request an extension.
Homeowners granted forbearance under the CARES Act can request a 180-day extension, giving them a total of 360 days of forbearance, according to the Consumer Financial Protection Bureau.
The key is to contact your lender well before your forbearance expires. If you let it expire without an extension, your lender could impose penalties.
âIf you just stop making regular, scheduled payments, you could have a late mortgage payment on your credit,” warns Carrasco. “That could severely impact refinancing or purchasing another property in the immediate future and potentially subject you to foreclosure.â
Keep in mind, though, a forbearance simply delays payments, meaning theyâll still need to be made in the future. It doesnât mean payments are forgiven.
Refinance to lower your mortgage payment
Mortgage interest rates are at all-time lows, hovering around 3%. So if you can swing it, this may be a great time to refinance your home, says Tendayi Kapfidze, chief economist at LendingTree.
Refinancing could come with some hefty fees, however, ranging from 2% to 6% of your loan amount. But it could be worth it.
A lower interest rate will likely lower your monthly payment and save you thousands over the life of your mortgage. Dropping your interest rate from 4.125% to 3% could save more than $40,000 over 30 years, for example, according to the Consumer Financial Protection Bureau.
âLenders have tightened standards, though, so you will need to show that you are a good candidate for refinancing,â Kapfidze says. Youâll need a good credit score of 620 or higher.
As long as youâve kept up your end of the forbearance terms, having a mortgage forbearance shouldnât affect your credit score, or your ability to refinance or qualify for another mortgage.
Ask for a loan modification
Many lenders are offering an assortment of programs to help homeowners under hardship because of the pandemic, says Christopher Sailus, vice president and mortgage product manager at WaFd Bank.
âLenders quickly recognized the severity of the economic situation due to the pandemic, and put programs into place to defer payments or help reduce them,â he says.
A loan modification is one such option. This enables homeowners at risk of default to change the terms of their original mortgageâsuch as payment amount, interest rate, or length of the loanâto reduce monthly payments and clear up any delinquencies.
Loan modifications may affect your credit score, but not as much as a foreclosure. Some lenders charge fees for loan modifications, but others, like WaFd, provide them at no cost.
âââ
Watch: 5 Things to Know About Selling a Home Amid the Pandemic
âââ
Put your home on the market
It may seem like a strange time to sell your home, with COVID-19 cases growing, unemployment rising, and the economy on shaky ground. But, itâs actually a great time to sell a house.
Pending home sales jumped 44.3% in May, according to the National Association of Realtors娉 Pending Home Sales Index, the largest month-over-month growth since the index began in 2001.
Home inventory remains low, and buyer demand is up with many hoping to jump on the low interest rates. Prices are up, too. The national median home price increased 7.7% in the first quarter of 2020, to $274,600, according to NAR.
So if you can no longer afford your home and have plenty of equity built up, listing your home may be a smart move. (Home equity is the market value of your home minus how much you still owe on your mortgage.)
Consider foreclosure as a last resort
Foreclosure may be the only option for many homeowners, especially if you fall too behind on your mortgage payments and canât afford to sell or refinance. In May, more than 7% of mortgages were delinquent, a 20% increase from April, according to mortgage data and analytics firm Black Knight.
âWhen to begin a foreclosure process will vary from lender to lender and client to client,â Sailus says. âCurrent and future state and federal legislation, statutes, or regulations will impact the process, as will the individual homeownerâs situation and their ability to repay.â
Foreclosures wonât begin until after a forbearance period ends, he adds.
The CARES Act prohibited lenders from foreclosing on mortgages backed by the government or government-sponsored enterprise until at least Aug. 31. Several states, including California and Connecticut, also issued temporary foreclosure moratoriums and stays.
Once these grace periods (and forbearance timelines) end, and homeowners miss payments, they could face foreclosure, Carrasco says. When a loan is flagged as being in foreclosure, the balance is due and legal fees accumulate, requiring homeowners to pay off the loan (usually by selling) and vacating the property.
âAbsent participation in an agreed-upon forbearance, deferment, repayment plan, or loan modification, loan servicers historically may begin the foreclosure process after as few as three months of missed mortgage payments,â he explains. âThis is unfortunately often the point of no return.â
The post Is Your Mortgage Forbearance Ending Soon? What To Do Next appeared first on Real Estate News & Insights | realtor.com®.
Purchasing a home is both exciting and a major milestone in your life, so you’ll want to be prepared for what to expect to avoid a stressful process. Having an in-depth look at the buyer’s journey can help you make informed and confident decisions.
From finding a real estate agent, negotiating offers to getting your keys on closing day, we’ve outlined all the steps of a home buyer’s journey in our free Buyer’s Guide, which you can download here.
The Buyer’s Guide will cover the buyer’s timeline from meeting an agent to preparing for closing day. We’ve outlined the 8 steps in a home buyer’s journey below.
1. Working With An Agent
Every city is filled with thousands of agents, but not all are equal. We believe it is important to choose an agent that you feel confident with. Before you commit to working with an agent, make sure you have a good understanding of the knowledge and experience they offer. It’s important that you ask your questions before making the decision to work with them.
2. Financing Your Purchase
Before you set a budget and start looking for a home, you’ll have to understand what costs to expect when purchasing a home. Here are some of the major costs involved:
Deposits
Down payments
Mortgage insurance
Closing costs
You’ll also want to calculate a rough estimate of the down payment that you will be expected to pay. Depending on the price of your home, your minimum down payment can range from 5% to 20%. If you’re interested in learning more about how to finance your home, you can get our free Financing Your Purchase guide here.
3. Searching For A Home
An important part of searching for a home is understanding how the home will fit with your needs and your lifestyle. You’ll want to consider home ownership as well as different types of properties and features.
Types of Home Ownership
Freehold Ownership
You purchase the home and directly own the lot of land it sits on
Condominium Ownership
For condos, you own specific parts of one building: titled ownership of your unit, along with shared ownership in the condo corporation that owns the common spaces and amenities
Co-Op Ownership
You own an exact portion of the building as a whole and also have exclusive use of your unit
Types of Properties
Detached houses
Semi-detached houses
Attached houses
Condos and apartments
Multi-unit
Tip: Depending on your budget and desired location, you may need to be flexible to find a home that meets your needs. By being willing to trade some features for others, you’ll have more options to choose from.
4. Negotiating An Offer
When you are making an offer to purchase a home, the purchase agreement should include the essential components listed below. Your agent can help put together an offer that is compelling, while safeguarding your interests and puts you in a competitive position to secure your new home.
You’ll also have the opportunity to choose the conditions that you’ll want in your offer. Some of these may include a home inspection or a status certificate review.
5. Financial Due Diligence
Whenever you make an offer on a house, you need to provide a deposit to secure the offer. The deposit is in the form of a certified cheque, bank draft, or wire transfer; it’s held in trust by the selling brokerage and is applied towards your down payment if your offer is successful.
There are two types of deposits:
Upon acceptance
The deposit is provided within 24 hours of the seller choosing your offer
Herewith
The deposit is provided when the offer is made
6. Property Due Diligence
To firm up a deal or educate yourself more on the state of the property, you’ll likely want to have a home inspection if you’re purchasing a house. If you’re purchasing a condo, then your lawyer will review the building’s status certificate.
Home Inspection
A home inspector will assess elements of the home such as the walls, windows, plumbing, heating and roof to judge the condition of the home. This process is non-invasive and is essential to help provide buyers with a good idea of the home’s current condition and the confidence of putting in an offer.
Tip: The home inspector will provide a summary of suggested work along with a minimum budget estimate for the repairs needed.
Status Certificates
If you’re purchasing a condominium, you’ll need to obtain a status certificate from the condo board or management for your lawyer’s review. This document will include valuable information about the condo’s budget, legal issues, reserve fund, maintenance fees and future fees increases – and the lawyer can help identify potential red flags
7. Preparing For Closing
Before the big day, you’ll want to keep a checklist of what to do ahead of time. Some of these include:
Review your contract
Complete a final walkthrough of the home
Purchase home insurance
Meet with your lawyer
Know how much cash you’ll need
Secure cash required for closing
8. Closing Day
Closing Day is when you’ll finally get the keys to your new home! In addition to bringing the cash required for closing, you’ll have to sign a few more documents which will include:
Mortgage loan
Title transfer
Statement of adjustments
Tax certificates
For the full details on the home buyer’s journey including examples, advice, pictures and sample calculations, download a copy of our free Buyer’s Guide here.
The post Home Buyer’s Guide: How to Purchase a Property, From Start to Finish [Free Download] appeared first on Zoocasa Blog.
The Federal Reserve recently lowered interest rates in an effort to stimulate the economy during the coronavirus pandemic. As a result, more and more people are becoming interested in refinancing their mortgage. Depending on the situation, refinancing your mortgage can prove to be a savvy financial decision that can save you massive amounts of money in the long-term. But is it right for you?Â
If youâre curious about refinancing your mortgage, this article should answer many of your questions, including:Â
How Does Refinancing Work?
When Should I Refinance My Mortgage?Â
What is the Downside of Refinancing My Home?Â
How Do I Calculate if I Should Refinance My Mortgage?Â
What are My Refinancing Options?Â
How Does Refinancing Work?Â
âRefinancing your mortgage allows you to pay off your existing mortgage and take out a new mortgage on new terms,â according to usa.gov. So when you refinance your mortgage, youâre essentially trading in your old mortgage for a new one. The new loan that you take out pays off the remainder of the original mortgage and takes its place. That means the terms of the old mortgage no longer apply, and youâre instead bound by the terms of the new one.Â
There are many reasons why homeowners choose to refinance their mortgage. They may want to secure a loan with a lower interest rate, switch from an adjustable rate mortgage (ARM) to a fixed-rate, shorten or lengthen their repayment term, change mortgage companies, or come up with some cash in order to pay off debts or deal with miscellaneous expenses. As you can see, there are a vast number of reasons why someone might be interested in refinancing.Â
There are also a couple of different ways to go about refinancing. A standard rate-and-term refinance is the most common way to do it. With this method, you simply adjust the interest rate youâre paying and the terms of your mortgage so that they become more beneficial to you.Â
However, you could also do a cash out refinance, where you pull equity out of your home and receive it in the form of a cash payment, or take out a new loan thatâs greater than the remaining debt on the original mortgage. Even though youâll get an influx of cash in the short-term, a cash out refinance can be a risky option because it increases your debt and itâll likely cost you in interest payments in the long-term.
When Should I Refinance My Mortgage?
Maybe youâve been wondering, âShould I refinance my mortgage?â If you can save money, pay off your mortgage faster, and build equity in your home by doing so, then the answer is yes. Whether you can achieve this is dependent on a variety of things. Take a look at these refinance tips in order to get a better idea of when you should refinance your mortgage.Â
Capitalize on Low Interest RatesÂ
When mortgage rates go down, a lot of people consider refinancing their mortgage in order to take advantage of that new lower rate. And this makes perfect senseâby paying a lower interest rate on your mortgage, you could end up saving thousands of dollars over time. But when it comes to refinancing your mortgage, there are a number of other factors you should consider as well.Â
Regarding interest rates, you should take a look at how steeply they drop before making any refinancing decisions. It might be a good idea to refinance your mortgage if you can lower your interest rate by at least 2 percent. It ultimately depends on the amount of your mortgage, but anything less than that amount likely wonât be worth it in the long run.Â
Switch to Fixed-Rate Mortgage
Itâs also very common for people to refinance in order to get out of an adjustable rate mortgage and instead convert to a fixed-rate. An adjustable rate mortgage usually starts off with a lower interest rate than a fixed-rate, but that rate eventually changes and it can end up costing you. Thatâs because the interest rate on an adjustable rate mortgage changes over time based on an index of interest rates. It can alter based on the mortgage market, the LIBOR market index, and the federal funds rate.Â
By converting to a fixed-rate mortgageâwhere the interest rate is set when you initially take out the loanâbefore the low rates on your adjustable rate mortgage increase, you can minimize the amount you have to pay in interest. If youâre able to lock in a low fixed interest rate, youâll be less susceptible to market volatility and more capable of devising a long-term payment strategy.  Â
GRAPHIC 2
When debating the question of âShould I refinance my mortgage or not?â, you should also keep in mind what lenders will look at when determining the terms of your loan. In order to come up with an interest rate and approve you for a refinancing loan, lenders will take the following factors into consideration:Â
Payment history on your original mortgage: Before issuing a refinancing loan, lenders will review the payment history on your initial mortgage to make sure that you made payments on time.Â
Credit score: With good credit, youâll have more flexibility and options when refinancing. A high credit score will allow you to take out loans with more favorable terms at a lower interest rate.Â
Income: Lenders will want to see that you generate a steady, reliable income that can comfortably cover the monthly mortgage payments. Â
Equity: Home equity is the loan-to-value ratio of a borrower. You can calculate it by dividing the amount owed on the current mortgage loan by the homeâs current value. Before you consider refinancing, you should ideally have at least 20% equity in your home. If your equity is under 20% but your credit is good, you still may be able to secure a loan, but youâll likely be charged a higher interest rate or have to pay for mortgage insurance, which is not ideal.
What is the Downside of Refinancing My Home?Â
Refinancing a mortgage isnât for everyone. If you donât take the time to do your research, calculate savings, and weigh the benefits versus the potential risks, you could end up spending more money on refinancing than you would have had you stuck with the original loan.Â
When refinancing, you run the risk of placing yourself in a precarious financial position. This is especially true when it comes to a cash out refinance, as this can put you on the hook for even more money and bury you in interest payments.Â
Donât refinance your home and pull out equity just to get quick cash, make luxury purchases, and buy things you donât needâdoing this is an easy way to dig yourself into a deep financial hole. In reality, you should only refinance your mortgage if you know that you can save money doing it.Â
How Do I Calculate if I Should Refinance My Mortgage?Â
Before you refinance your mortgage, itâs crucial to crunch the numbers and determine whether itâs worth it in the long-run. To do this, youâll first have to consider how much refinancing actually costs.Â
Consider Closing Costs
So how much does it cost to refinance? One of the most significant expenses to take into account when refinancing is the closing costs. All refinancing loans come with closing costs, which depend on the lender and the amount of your loan, but average around three to six percent of the principal amount of the loan. So, for example, if you took out a loan of $200,000, you would end up paying another $8,000 if closing costs were set at 4%.Â
These closing costs are most often paid upfront, but in some cases lenders will permit you to make the closing costs part of the principal amount, thus incorporating them into the new loan. While closing costs generally donât cover property taxes, homeownerâs insurance, and mortgage insurance, they do tend to include the following:Â
Refinance application fee
Credit feesÂ
Home appraisal and inspection feesÂ
Points fee
Escrow and title feesÂ
Lender fee
Determine Your Break-Even Point
To make an informed decision as to whether refinancing your mortgage is a sound financial decision, you should calculate how long it will take for the refinancing to pay for itself. In other words, youâll want to determine your break-even point. To calculate your break-even point, divide the total closing costs by the amount youâll save on a monthly basis as a result of your refinance loan.Â
The basic equation for figuring out your break-even point is as follows:Â [Closing Costs] / [Monthly Savings] = [# of Months to Break Even]Â
Taking this into consideration, you can see how the length of time you plan on staying in a home can make a big difference as to whether or not refinancing your mortgage is the right option for you. If youâre thinking of moving away and selling your house in a few years, then refinancing your mortgage is probably not the right move. You likely wonât save enough in those few years to cover the additional costs of refinancing.Â
However, if you plan on remaining at the house youâre in for a long stretch of time, then refinancing could potentially save you a lot of money. To make an informed decision, you have to do the math yourselfâor, to make the calculations even simpler, use Mintâs online loan repayment calculator.Â
What are My Refinancing Options?Â
As stated above, you have options when it comes to refinancing loans. You could refinance your mortgage in order to secure a lower interest fee and a change in the terms of your loan; or you might opt for a cash out refinance that lets you turn your homeâs equity into extra income that you can use to pay for home improvement, tuition costs, high-interest debt payments, and more.Â
In order to actually start refinancing your home, youâll have to find a lender and fill out a loan application. Shop around at large and small banks alike to see who will offer you the lowest interest rates and the best terms. How long does a refinance take? The timeline depends on a few things, including the lender you borrow from and your own financial situation. But, in general, it takes an average of 45 days to refinance a mortgage.Â
You might also consider forgoing the traditional banks and dealing with an online non-banking company instead. Alternative lenders often offer greater flexibility in terms of who qualifies for a loan and they can, in some cases, expedite the refinancing process. For example, Freddie Mac is a government-sponsored mortgage loan company that, in addition to offering no cash out and cash out refinancing, has a third option available for borrowers whose loan-to-value ratio is too high to qualify for the traditional refinancing routes. Learn more by visiting freddiemac.com.Â
When tackling any big financial decision, itâs important that youâre informed and organized. Learn the facts, do the calculations, and research your options before beginning the refinancing process to make sure itâs the right choice for you.Â
The post Should I Refinance My Mortgage? When to Refinance appeared first on MintLife Blog.
The real estate market is constantly changing, especially in the local Denver market. We like to keep an eye on it for you, so we can let you know whatâs going on! Hereâs the latest update:
Data from ReColorado from November 1, 2020 to November 30, 2020.
Monthly Sales
At 5,236, monthly sales are up 22% from this same time last year in the Denver metro area. While the sales are up from November 2019, they are 19% lower than sales in October. A decrease in monthly sales between October and November is fairly common.
Data retrieved from RE Colorado.
New Listings
November saw 3,695 new listings in Denver. This is a 1% increase from the previous November and a 40% decrease from October of this year, continuing the trend of a slow down as we move into the colder months.
Data retrieved from RE Colorado.
Sale Price
The average sale price for homes in the Denver metro area in November was $547,094. This is a 13% increase from November 2019 and just a decrease of 2% from October of this year. Single-family homes are selling for higher prices than multi-family residences, such as townhomes and condos. The average sale price for a single-family home was $224,195 higher than multi-family residences.
Data retrieved from RE Colorado.
Days on Market (DOM)
The number of days on market continues to drop, with an average of 22 days and a median of six days during November. The average is a 13-day decrease from last Novemberâs average and a 2-day decrease from this October, while the median is a 13-day decrease from last November and a 2-day decrease from this October.
Single-family residences spent an average of 6 days fewer on the market than multi-family residences.
Data retrieved from RE Colorado.
Turn to a Homie
Whether youâre looking to buy or sell, Homie has experienced, local real estate agents who are excited to work with you. These agents understand the nuances of the local real estate market and are willing to go the extra mile to get you the deal youâre looking for. Click to start selling or buying and to get in touch with your dedicated agent.
Get more tips on navigating the Colorado real estate market!
5 Tips to Help You Afford Your First Home
Common Home Buying Fears and How to Overcome Them
Can You Buy and Sell a Home at the Same Time?
Want to learn more about buying or selling? Sign up to get more info directly to your inbox!
The post Homieâs Denver Housing Market Update November 2020 appeared first on Homie Blog.
Some of the links in this post are from our sponsors. We provide you with accurate, reliable information. Learn more about how we make money and select our advertising partners.
Take a moment. Think about being your best self â living your best life.
What do you really want to do with your life? Raise a happy family? Travel the world? Buy a nice house? Start your own business?
Reality check: To accomplish any of those things, youâre going to need to know how to save money.
Unfortunately, Americans are bad at saving money, and weâre getting worse. Thanks to rising costs, stagnant salaries and student loan debt, weâre saving less than ever.
Table of ContentsÂ
Step 1: Develop Savings Goals and Strategies
Step 2: Pick Budgeting and Debt Repayment Methods
Step 3: Choose a Financial Institution and Accounts
Step 4: Automate Your Finances
Step 5: Establish a Budget-Conscious Lifestyle
Step 6: Make More Money
Here Are Our Best Tips to Save Money
Are you ready to actually start saving money? What youâre reading is a step-by-step guide on how to do it â how to come up with savings strategies, choose a budgeting method, pick the right financial institution, automate your finances and live a budget-conscious lifestyle.
Pour yourself a cup of coffee and buckle up. Itâs time to get serious about this.
Step 1: Develop Savings Goals and Strategies
Youâre probably asking yourself, âHow much should I save?â
Your first move is to set specific savings goals for yourself â emphasis on specific. Naming your goals will make them more real to you. Itâll help you resist the temptation to spend your money on other stuff.
Think Long Term and Short Term
What exactly do you want to save money for? How much will you need to save? And what do you need to save for first? Think short- and long-term:
Short-term: Save for a real vacation or nice holiday gifts. But first, save enough to have a decent emergency fund â three to six monthsâ worth of living expenses, in case you run into an unexpected car-repair bill or lose your job, for example.
Long-term: This involves big-picture thinking. Here, youâre saving money for things like your childrenâs college fund or for your retirement plan.
Analyze Your Income
How much can you realistically save for these goals, now that youâre making them a priority?
Write down your income and expenses â all of your expenses, from utility bills to your Netflix subscription. There are probably more ways to save money than you realize. Donât forget your student loans or credit card debt. Make sure you know what youâre spending in every budget category. Pay special attention to what youâre spending on non-essentials, such as eating out.
An easy way to automate this process is to use Trim, a little bot thatâll keep track of all your transactions.
Connect your checking account, credit card and savings account for a big-picture look at your spending habits. Then, take a closer look by checking out each of your transactions. Set alerts thatâll let you know when bills are due, when youâve hit a spending cap or when youâve (hopefully not) overdrafted. This will help you stick with your savings plan.
Check in on Your Credit
Do your own credit check. Keeping tabs on your credit score and your credit reports can help guide you to a financially healthier life â especially if you use a free credit-monitoring service like Credit Sesame. It gives you personalized suggestions for improving your credit.
The better your credit, the better off youâll be when youâre getting a home or car loan. Credit Sesame can estimate how big a mortgage you might qualify for, for example.
Hereâs our ultimate guide to using Credit Sesame.
Step 2: Pick Budgeting and Debt Repayment Methods
Itâs time to start making a monthly budget and sticking to it â especially if you have debt.
This way, you can put savings right into your budget. Itâs never an afterthought.
Here are five different budgeting methods. We canât tell you which one to choose. Be honest with yourself, and choose the one you think is most likely to work for you. This is how to save money on a tight budget.
The 50/30/20 Rule
This one was popularized by U.S. Sen. Elizabeth Warren, a bankruptcy expert, and her business-executive daughter Amelia Warren Tyagi.
Split your income into three spending categories: 50% goes to essential bills and monthly expenses, 20% toward financial goals and 30% to personal spending (all the stuff you like to spend money on but donât really need). Put the money earmarked for your financial goals into a separate savings account.
Good for: People who worry they wonât have a life if theyâre on a budget. Hereâs our complete guide to 50/30/20 budgeting.
Envelope Budgeting
So-called envelope budgeting is traditionally a cash-only budget. Every month, you use cash for different categories of spending, and you keep that cash for each category in separate envelopes â labeled for groceries, housing, phone, etc.
Prefer plastic? Hereâs our review of Mvelopes, an app that lets you digitize this method.
Good for: People who know they need help with self-control. If thereâs nothing left in one envelope toward the end of the month, thereâs no more money to spend on that category, period.
Zero-Based Budget
Hereâs how you draw up this budget: Your income minus your expenses (including savings) equals zero. This way, you have to justify every expense.
Good for: People who need a simple, straightforward method that accounts for every dollar. Hereâs our guide to the zero-based budget.
Debt Avalanche
This debt-repayment method helps you budget when you have debt. Pay off your debts with the highest interest rates first â most likely your credit cards. Doing that can save you a lot of money over time.
Good for: People with a lot of credit card debt. Credit cards generally charge you higher interest than other lenders do. Learn more about the debt avalanche method here.
Debt Snowball
Money management guru Dave Ramsey champions the debt snowball method of debt repayment. Pay off your debts with the smallest balances first. This allows you to eliminate debts from your list faster, which can motivate you to keep going.
Good for: People who owe a lot of different kinds of debts â credit cards, student loans, etc. â and who need motivation. Hereâs how to use the debt snowball method to eliminate debt.
FROM THE DEBT FORUM
Zero % Credit Cards 1/1/21 @ 4:33 PM
Eviction on credit report 9/30/19 @ 3:17 PM
Helping Covid-19 Victims 1/5/21 @ 2:56 PM
Struggling to pay debt or going bankrupt 12/29/20 @ 8:02 PM
See more in Debt or ask a money question
Step 3: Choose a Financial Institution and Accounts
You might be thinking, I already have a bank. And of course you do. If youâre like most of us, youâve had the same bank for years.
Most people donât give this a second thought. They figure itâs too inconvenient to switch. But itâs worth shopping around for a better option, because where you bank can make a real difference in how much you save.
What to Look for in a Bank Account
Does your checking account pay you interest? What are the fees like? What other perks does it offer?
Did you know the biggest U.S. banks are collecting more than $6 billion a year in overdraft and ATM fees?
Maybe itâs time to try another financial institution. Weâve found some great online bank accounts to help you avoid fees and get features you wonât find with the brick-and-mortar banks.
Hereâs one example: Thereâs a mobile baking app called Varo Money.
The FDIC reports that the average savings account pays a paltry .08% APY*, but when you open an online checking and savings account with Varo, it will pay you more than 20 times that amount on your savings account.Â
We know opening a new bank account isnât exactly everyoneâs idea of fun, but Varo makes it easy. You can open an account with just a penny, and more than 750,000 people have already signed up.
Oh, and there are no monthly fees.Â
Want more options? Hereâs our ultimate guide to help you choose the right account.
To free up more money for savings, try to spend less paying interest on your debts â especially if you have high-interest credit card debt.
These days, credit card interest rates often climb north of 20%. How can you avoid paying all that interest? Your best bet is to cut back on your expenses and pay off your balance as soon as you realistically can.
Start by using the right credit card for you, based on your situation and needs. Would you prefer a card that gives you cash back or travel incentives, a balance-transfer card, or a card thatâll help you build credit?
Also consider paying off your high-interest debt with a low-interest personal loan. Itâs easier than you might think. Go window-shopping at an online marketplace for personal loans. Here are some weâve test-driven for you:
AmOne allows you to compare rates side-by-side from multiple lenders who are competing against each other for your business. Itâs best for borrowers who have good credit scores and just want to consolidate their debt.
Fiona is also a marketplace but allows you to borrow more money and borrow it for a longer period of time â if thatâs what you want to do.
Upstart tends to be helpful for recent grads, who have a young credit history and a mound of student debt. It can help you find a loan without relying on only your conventional credit score.
Step 4: Automate Your Finances
Thatâs right. Weâre deep into the 21st century, here, so make technology do the work for you.
The best ways to save include automation. Youâll save time, and time is money. Here are a few money-management steps you can take today to ensure you wonât have to think about money for more than a few minutes every month.Â
Automate Bill Pay
Most bills are paid online now, reports the Credit Union Times. But you can take it a step further. Set it up so youâll receive and pay all of your bills online through your bank. That simplifies things so youâll never miss a payment.
Hereâs how: Go to your bankâs online bill-pay feature. Enter all the companies that bill you, and the account numbers for each. Arrange to receive e-bills from whichever billers will do that.
You can also have your bank send digital payments to individuals (like a landlord).
Automate Savings
Whatever you need done financially, thereâs an app for that. Weâve put several to the test.
Digit is an automated savings platform that calculates how much money you can save. Hereâs our review of Digit.
Long Game Savings combines online games and saving money.
Also, see whether your bank offers automatic savings transfers that will move money from your checking account to your savings account each month.
Automate Investing
You donât have to be Warren Buffett to be an investor. You donât even have to follow the stock market, read The Wall Street Journal or watch CNBC.
You can take advantage of these apps offering easy, automatic ways to start investing â the âset it and forget itâ method. Theyâre useful for tricking your brain into saving more. Youâll do it without even realizing youâre doing it.
Stash lets you start investing with as little as $5 and for just a $1 monthly fee for balances under $5,000. Bonus: Penny Hoarders get $5 just for signing up!
Acorns connects to your checking account, credit and debit cards to save your digital change. It automatically rounds up purchases with your connected cards and invests the digital change into your chosen portfolio. Bonus: Penny Hoarders get $5 just for signing up! Read our full review of Acorns here.
Blooom is a company that offers a free âhealth check-upâ for your 401(k). Then, for only $10 a month (Penny Hoarders get the first month free!), itâll optimize and manage your retirement savings for you. See how Blooom helped one Penny Hoarder make the most of her 401(k).
Automate Budgeting
You can automate your budget, too. Thereâs an app for that. Actually, weâve found several.
Charlie is a money-saving penguin who lives in your SMS text messages or Facebook Messenger (your choice, though Charlie is more fun and reliable on Messenger). He helps you save money through things like making sure youâre getting the best deals around (ahem, overpaying $24 a month on that cell phone bill?).
Mint lets you see all your accounts, cards, bills and investments in one place.
Medean for iOS ranks your finances based on how they stack up to those of people of similar age, income, location and gender. It calls itself a âhealth index for your finances,â and helps assess your situation and find ways to save money.
MoneyLion offers rewards to help you develop healthy financial habits and will literally pay you for logging onto the app. You can earn points in the rewards program by paying bills on time, connecting your bank account or downloading the mobile app.
Step 5: Establish a Budget-Conscious Lifestyle
Hereâs the harsh reality: To save more money, youâll need to spend less money. (Or make more money, but weâll get to that next.)
That doesnât mean you have to live like a monk. Nor do you have to survive on ramen noodles and the dollar menu, wear scuffed shoes and patchy clothes, or cut your own hair with hedge clippers.
You just have to be smart and strategic. Here are some of our best tips to help you spend less:
Save Money Around the House
Your home is your castle. But castles are so, like, expensive. Fortunately, there are lots of ways to save money around the house.
Your priciest purchases â like appliances and furniture â are a natural place to look for savings. Try repairing your appliances instead of replacing them. And hereâs a good list of other tricks for saving on furniture and appliances.
The cost of cooling, heating and lighting your home is massive. Try installing thermal curtains and a programmable thermostat. Or check out these creative, energy-saving ways to slash your utility bills.
Find Free Entertainment
Entertainment can cost an arm and a leg. But hey, we have to live, right? So do it for free! Next time youâre planning a night out, take advantage of one of these free date nights or group outings.
If youâre going to stay in, cut the cord. More and more people are doing this, because their cable bill has gotten so expensive.
If youâre thinking of switching to an online streaming service and youâre wondering which would be best, weâve got you covered with our comparison of Netflix, Prime Video and Hulu. We compared costs, type of content, number of available titles and more.
You also should reconsider that gym membership if youâre not really using it.
Cut Your Food Budget
Groceries are a huge part of everyoneâs budget, so theyâre a big target for savings. Next time youâre putting together your shopping list, make sure to check out our favorite tricks to save money at the grocery store:
Look for free printable coupons.
Compare your local grocery prices using this worksheet.
Ibotta pays you cash back on purchases if you take pictures of your grocery store receipts. Plus, youâll get a $10 bonus for signing up!
Scan grocery storesâ websites for deals and hit more than one store.
Not loving the supermarket? Nearly 70% of us say we spend too much on take-out or going out to eat. Hereâs how to save money at restaurants, too.
Find out If Youâre Wasting Money on Insurance
Buying insurance can be confusing and overwhelming, because there are so many options.
Hereâs how to find affordable insurance:
For Your Car: Auto Insurance
Here are the blunt facts about how to get lower car insurance premiums: Have fewer accidents, get fewer traffic tickets and boost your credit score.
Automotive experts also gave us the following tips:
Buy a used car.
Participate in your insurerâs safe-driving program.
Shop around for better rates. One easy way is The Zebra, a car insurance search engine that compares your options from more than 200 providers in less than 60 seconds. Hereâs how one guy is saving $360 this year on car insurance because of The Zebra.
For Yourself: Health Insurance
Letâs face it: Health insurance can be confusing and intimidating.
If youâre buying insurance for yourself, start with the federal health insurance marketplace at Healthcare.gov to see whether you qualify for any discounts or assistance.
Finding affordable health care coverage is a huge challenge for freelancers. Hereâs how to get covered if youâre self-employed.
For Your Family: Life Insurance
Life insurance pays your dependents a set amount of money if you die. Whether to buy it is a judgment call.
Life insurance is considered more important if youâre married or have children. You might also want a basic policy that would pay off your funeral, mortgage or other debt.
Youâll probably be asked to choose between two options: term or universal life insurance. If youâre like most of us, youâll choose term â the simplest, cheapest and most popular kind of life insurance policy.
To help you save money and navigate this complicated industry, modern companies are updating the old model:
Policygenius is an online-only platform that offers instant quotes from top carriers to help you make a quicker decision. Once you choose a life insurance company, you can apply right online, and a Policygenius rep will give you a quick call to ask a few follow-up questions.
Haven Life can insure you quickly based just on the health information you provide online.
Ethos can get you term life insurance in less than 10 minutes â with no medical exam â for coverage up to $1 million. Ethos offers a digital application, and customer service is available if you have questions.
Step 6: Make More Money
How can you increase your income? Itâs easier to save money if youâre bringing in more money to begin with.
Here are a couple of simple ways to make extra cash at home:
Share Your Opinion
You wonât get rich taking surveys, but if youâre just vegging out on the couch, why not click a couple buttons and earn a few bucks? Weâve tried a lot of paid survey sites, and two of the best weâve found are My Points and InboxDollars.
Clear Your Closets
Sell your old stuff! Use the Decluttr app to get paid for your old DVDs, Blu-Rays, CDs, video games, gaming consoles and phones.
You can also sell nearly anything through the Letgo app. Just snap a photo of your item and set up a listing in about 30 seconds. If you have more free time, try selling items on Craigslist or eBay.
Find a Side Gig
For our best ideas to boost your bottom line, check out the following:
Unique ways to make money at home.
How to make extra money online.
How to earn passive income.
The Penny Hoarderâs continually updated page on open work-from-home jobs.
Mike Brassfield (mike@thepennyhoarder.com) is a senior writer at The Penny Hoarder. Heâs slowly getting better about saving money.
This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017.
If you’re a die-hard Supernatural fan like us, you’re probably still reeling from the show’s finale and coping with the fact that there won’t be any new Winchester adventures for us to follow. But weâre not here to talk about that, but rather snoop into the private life of one of the series’ leading men. More specifically, Jensen Acklesâ house — which we actually think Dean Winchester would approve of.
The actor starring in CWâs longest running show and his wife Danneel opened up their 7,500-square-foot home in Austin, Texas to Architectural Digest, giving us a rare glimpse into the heartthrob’s home and personal life.
As the story goes, the couple was relocating from Los Angeles and initially considered buying a house down the road when they noticed this property (that wasnât even for sale). But since they fell in love with it, the couple went ahead and asked the previous owners if they’d be willing to sell. And since it’s not easy resisting Jensen Ackles’ charms, they managed to convince the owners so the Acklesâ moved on to the next step â- redecorating the house.
To help out, they hired architect Paul Lamb and interior designer Fern Santini and together they came up with some brilliant ideas on how to best revamp their already-stunning new house.
âIt was imperative that the house express the Ackleses — young, bold, and irreverent,â Lamb told AD.
Jensen Acklesâ house, which boasts five bedrooms, revolves around Danneelâs decorating outlook of âmore is more is more!â There is a lot of color, texture, a lot of wood work going on to make it look like a lake house and endless decorations with some of the coolest background stories.
Let there be music
In Supernatural, Jensen loves music. Remember his spontaneous Eye of a Tiger outtake? Still fun to watch! Thereâs definitely more of where that came from in real life, since Jensen did his best to create an amazing acoustic sound in his house.
The living room is scattered with guitars and all across the shag rug lie comfy and colored floor pillows. All this because the couple loves having friends over, sitting on the floor, singing and playing the guitar.
Jensen was excited to talk about one of his favorite features of the house: âThe hand-scraped wood floors undulate quite heavily, and weâve got these giant beams and wood all around that feel like youâre in the hull of a giant ship.â âWhat that does is it creates an amazing acoustic sound,â he continues. âWeâve always had music in our lives, and we wanted to pass on that tradition.â
Jensen Ackles home in Austin, Texas. Image credit: Jeff Wilson for AD
Jensen’s kick-ass bar
Theyâve taken care of the music, and to complete the ambiance they got rid of the formal dining room (that nobody used anyway) and replaced it with a kick-ass bar.
Placed on one end of the large living room, the bar is made out of black walnut with black and white veined marble. The cabinets were specially made to light the expensive bourbons it holds inside.
Jensen Ackles home in Austin, Texas. Image credit: Jeff Wilson for AD
The master suite
Thereâs a master bedroom swaddled in Trove wallpaper bearing vintage photography of 1920s opera boxes. The wallpaper is covered in sections by Japanese-inspired barn door panels âbecause sometimes you need an audience and sometimes you donâtâ.
Jensen Ackles home in Austin, Texas. Image credit: Douglas Friedman for AD
The master bathroom has a beautiful
bathtub sitting in front of a large window that provides a stunning view to the
lake.
The Mr. and Mrs. own two separate counters, because, you know, it just makes things easier in the mornings; and the inspiration for their master bathroom shower came from an Architectural Digest story featuring a steel and glass shower in the home of Neil Patrick Harris.
Jensen Ackles home in Austin, Texas. Image credit: Douglas Friedman for AD
Jensen Ackles’ bright, wood-framed home
Thanks to exposed beams, larger expanses of windows, and rich wooden ceilings, the architect managed to simplify and open the spaces. They simply tore down walls to let more natural light into the home.
Jensenâs favorite space is the breezy two-story screened porch that transformed the entire profile of the house; and his favorite piece â a custom long table made using a 2,000-year-old cypress log.
Parents of three
Jensen and Danneel have three beautiful children, so they had to choose the decor and furniture according to their needs as well. It appears that the coupleâs eldest daughter would make a great interior designer once she grows up. The six-year-old girl, JJ, helped pick out all her own bedroom decor.
Jensen Ackles home in Austin, Texas. Image credit: Douglas Friedman for AD
Unsurprisingly, the kidsâ favorite toy is a rolling acrylic table from the â50s, placed in the kitchen. Everybody loves a happy kitchen!
Jensen Ackles home in Austin, Texas. Image credit: Douglas Friedman for AD
Jensen Ackles’ home is full of hidden gems
The actorâs house is a personalized, eccentric, yet highly livable place. It was designed to resemble the Laurel Canyon bungalow the couple had once lived in and itâs a testament to the old school, Austin-style lake house.
The space is filled with all kinds of eccentric and eclectic objectsâsome useful, some decorative, some both. The decorations could be found in abundance in Austin during its bohemian period (the Acklesâ are active supporters of local art), as well as in late-60s California.
More beautiful celebrity homes
Rob Loweâs Gorgeous House in Montecito is Back on the Market for $42.5 Million Luxurious Malibu Estate Previously Owned by Kelsey Grammer On the Market for $20M âHunger Gamesâ Actor Josh Hutcherson is Selling His Celebrity-Magnet âTree Houseâ in Hollywood Hills Jessica Albaâs Los Angeles House is a Pinterest-Perfect Dream Home
The post Inside Supernatural Star Jensen Ackles’ ‘Very Hip’ Lake House in Austin appeared first on Fancy Pants Homes.
SEAN GLADWELL / Getty Images
