Tips for Successful Personal Finances
It’s Day 20 of Financial Literacy Month – time to make a list of things you really want. Maybe it’s money to pay for your children’s college? Maybe it’s more money to save for retirement? Maybe it’s enough money to be able to live monthly and not worry about how to pay your bills? Whatever you want, today is the day to make a list and meditate on your goals.
Do you spend lots of money on greeting cards and postage? Do you forget to send cards? Try an online greeting card service. I use one that’s less than $10 per year (with no postage). I get reminders for special dates, and can schedule ahead of time, or send right away. No special day slips by me. …Of course, nothing beats markers, paper, and hand-delivery. 🙂
Board games aren’t just for kids. Lately, teens, college students and adults have rediscovered game night parties thanks to new games like Apples to Apples, Ticket to Ride, Last Night on Earth (a zombie game), Pandemic (a plague game), Settlers of Catan, and the crazy fun Quelf. Personally, I love a fast-paced game of Mexican Train (dominoes).
How about a movie marathon at home? Go to your local library, borrow several movies, and watch them on your own TV with homemade popped corn. If the library doesn’t have what you want, rent them from your local grocery store movie kiosk for minimal cost. Netflix members can use a Roku or compatible game console.
If you want something more than pot luck but don’t want to pay a fortune for dinner out, try a BYOB restaurant. Check around, some restaurants will let you bring your own bottle of wine. Ask first, because there could be a “corkage fee” for bringing your own bottle. When you buy wine from a restaurant, your favorite bottle can be double the price of what you would pay retail. Check with your state, because some states will let you bring the partial bottle home, and others won’t. This is one way wine lovers can enjoy dinner out and still save some money.
Want to spend time with a friend at no cost?
Try going for a walk and having a chat with your friend. Save the cost of food and get your exercise in.
This is a fun thing to do and has many health benefits.
Do you ever want to spend time with friends, but don’t want to spend lots of money on a restaurant? I know that I really want to spend time with people. Consider a potluck dinner.
You can select the house (yours or theirs) and then everyone brings something. To kick it up a notch, try having a menu based on a certain cuisine. I and some friends got together at a friend’s home and the theme was Chinese food. The hostess made moo shoo pork and the rest of us brought the sides.
I know people who get together on a regular basis for dinner clubs, wine tastings, movie nights and more. What appeals to you? Think about which of your friends would find it fun to have an inexpensive dinner party. Make a plan with your friends.
I was brought up with a family that had a backyard garden. Especially now when I am making a great effort to eat more fresh and locally grown food, the garden makes sense. The garden my grandparents had when I was growing up took most of the backyard. Unfortunately, that doesn’t work for me. I have to keep mine small so that it’s something that I can manage and is not too overwhelming for me. I start around March with seeds inside (although in some years I buy plants in another month).
You can do this too. You can have a garden in your backyard or a container on your deck – whatever works for your situation. You can grow whatever appeals to you, from herbs to tomatoes. There is nothing better than going out and picking what you want to eat when you are ready to eat it.
You are probably thinking, “What does this have to do with saving money?” Lots! The more you grow the less money you spend at the grocery store.
Lettuce is a very easy vegetable to grow. Put seeds in the soil and within two weeks you have lettuce for your salads. No more buying lettuce at the grocery store, or wanting a salad only to find out that the lettuce in your fridge is bad. You pick the lettuce leaves as you need them.
Think about what you would like to grow today.
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So, you were cooped up together all winter and realized you had fallen out of love… with your house. You stared at the same walls and little things started to drive you crazy… like that one crack in the corner, or the picture window without a view. Maybe the bedroom’s too small or the kitchen galley leaves no room to cook.
This is completely normal. Spring is the time of year when people get out and attend real estate open houses hoping to make a meaningful connection with a new home.
This year would actually be a great time to make the leap because mortgage rates are low. You could even refinance to a lower rate. (Don’t be discouraged if you’re underwater and were denied last year, because you might qualify under new regulations.)
First, you should get preapproved so you know what you can afford. The mortgage application process can be tricky. Here are some areas that could cause you trouble:
Poor Credit Score. The average credit score is rising as people are paying more attention to their credit. The better your score, the better your interest rate will be. FICO scores in the mid-700’s will get you the best rate.
Employment History. We all know that these are difficult times, and your employment will affect your application. If you’re newly employed, or there are unexplained gaps in your employment history, it can cause you trouble.
Compensation. This means income. If you’re like most people, your weekly employment check is your only source of compensation. Or, you could have a fluctuating income because you’re self-employed, or work in a field where bonuses and commissions make up the biggest portion of your salary. If that’s your situation, your lender will view your up-and-down income as a red flag. Can you make monthly payments if you have cash flow issues depending on the season?
Down Payment. Gone are the days of the zero down mortgage with 100% financing (meaning the bank gives you a loan for the whole sale price). If you can put a big chunk of cash towards down payment, and still keep a nice buffer in savings for emergencies, you’re going to look really attractive to the lender.
Excessive Debt. This can hurt you two ways – first by lowering your credit score and secondly by giving you a higher debt to income ratio. The lender’s going to wonder if you can make mortgage payments when you have so many other monthly payments on your plate already.
The number 1 thing you can do to avoid these issues, is to plan ahead.
1. Have money in savings to show the lender you can deal with whatever happens.
2. Pay down your debt, but don’t close your credit cards. You need to show you have a current credit history (ideally a minimum of 2 years and 3 creditors minimum).
3. Review your credit reports and correct any errors.
4. Take steps to improve your credit score.
5. Don’t make a big purchase just before taking out a mortgage. Don’t take out a car loan or lease, and don’t make a big purchase with cash. The first increases your debt and the second reduces your savings.
If you take some time to plan for your new mortgage, you’ll get the best interest rate possible for you. This is a great time to take advantage of those new low rates.
Do you shop on the web? Do always go to the same website without comparing the price elsewhere?
You might want to think about price shopping for the lowest price. I know that this can take up your precious time. The website www.Billeo.com offers a way to search, and even notify you, of discount coupons.
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