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الثلاثاء، 25 يوليو 2017

Having This Much in Savings Could Help You Survive a Financial Emergency

Think quick! At the end of the day, your boss tells you the company is downsizing and you’re being let go. Sorry, no severance package.

How long can you survive on your savings?

If you’re like many Americans, “What savings?” may come to mind, according to the 2017 Prosperity Now Scorecard — an annual report that takes the pulse of the finances of American households.

The startling conclusion from this year’s scorecard is that 36.8% of American households do not have enough savings to support themselves for three months at the poverty level.

Uncle Sam says a single person needs $3,015 to live at the poverty level for three months, while a four-person household needs $6,150 to do the same.

So what happens when these people find themselves in a financial emergency? Debt. They borrow to deal with the new crisis and hurt their chances of getting ahead in the future.

It’s hard to achieve prosperity if any little setback can be catastrophic. So how can you protect yourself and your family? The answer is saving.

How Much Money Do I Really Need to Save?

The good news is that you should be able to save up that kind of money just by paying attention to your monthly bills or even making better use of free library programs. But could you afford to live at the poverty level for three months while you try to find a new job?

Instead of aiming for a random number or the bare minimum of poverty-level living, take a few minutes to look at your monthly budget. Focus on the basics.

  • Rent or mortgage
  • Utilities
  • Groceries
  • Car payment
  • Cell phone
  • Internet

Decide for yourself just how bare bones you really want to get. Perhaps you can get by without internet in your home and temporarily downgrade to a cheaper cell phone plan. Even so, chances are your total expenses for three months are significantly higher than that poverty level. That’s OK. In fact, that’s good.

So how much should you save? Money guru Dave Ramsey says you should build an emergency fund that can support you for three to six months. For some, that could be as much as $10,000 to $15,000.

If that seems too daunting, start small and save just one month of expenses. Then continue what you’re doing, and watch that emergency fund grow. Once you have savings in place to ward off financial emergencies, you can stay out of debt for good. That’s the difference between survival and prosperity.

Tyler Omoth is a senior writer at The Penny Hoarder who loves soaking up the sun and finding creative ways to help others. Catch him on Twitter at @Tyomoth.

This was originally published on The Penny Hoarder, one of the largest personal finance websites. We help millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. In 2016, Inc. 500 ranked The Penny Hoarder as the No. 1 fastest-growing private media company in the U.S.



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This Debt Payoff Calculator Will Make You Feel Good About Keeping Netflix

What sacrifices would help you pay off your debt faster? Which ones only look like you’re saving but don’t move the needle much?

NerdWallet’s new debt-free calculator can help you figure out which budget changes can help you get out of debt fastest.

“Defeating debt is a delicate balance,” NerdWallet staffers Sean Pyles and Daniel Tonkovich wrote. “You need to figure out where you can cut — and how long you can live that way.”

The pair looked at “common” and “extreme” methods of paying off debt to test how long they would take to “offset $15,000, a nice round number close to the average credit card debt in the U.S.”

They found the small changes that may make you feel like you’re making progress — canceling Pandora, Spotify or Netflix chief among them — do the least to free up cash to put toward your debt.

Meanwhile, big actions like getting a roommate, renting through Airbnb, moving back in with your parents, switching to transit or sleeping in your car can help you put aside $800 or more per month.

Why We’re Into NerdWallet’s Debt Payoff Tool

While it includes some of the more complex tasks to save or earn more to put toward your debt, NerdWallet still takes a fairly simplistic view of how much money those actions will put in your pocket each month.

Picking up a second job may earn you a few hundred bucks each month, but it doesn’t take into account the money you’ll spend on gas or transit to get there. Canceling your cable or gym plan can save you $50 to $100 per month, as long as you don’t have to pay a fee to get out of your contract. You can brown-bag your lunch, but you still have to buy groceries to make it.

For every action you take to pay off your debt, there’s a reaction that will force you to continually adjust your plan and timeline for wiping out that balance. Those reactions may be small, but they force you to be vigilant every day that you’re in debt.

Still, NerdWallet’s tool is one of the easiest to use calculators we’ve seen for determining the mixture of actions you need to take to pay off your debt. Use the slider to select how much debt you have, then choose a variety of saving or earning options.

Try a mix of small and larger actions to see how much you could put toward your debt each month and how long it would take to pay it off.

Just remember, the calculator doesn’t consider the amount of interest you’ll have to pay as you work toward paying off that balance.

Lisa Rowan is a writer and producer at The Penny Hoarder. If you are considering sleeping in your car because of your debt, she recommends calling a nonprofit credit counseling service.

This was originally published on The Penny Hoarder, one of the largest personal finance websites. We help millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. In 2016, Inc. 500 ranked The Penny Hoarder as the No. 1 fastest-growing private media company in the U.S.



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This Little-Known Tool Could Help You Save Thousands on a Mortgage

That three-digit number that floats out there in cyberspace can have a big ole influence your big life decisions — including purchasing a home.

(Cough, cough… we’re talking about your credit score, which is influenced by your credit report.)

“Just about any financial decision could be affected by a person’s credit history,” says Rod Griffin, the director of public education at Experian.

Including buying a home.

There’s No Doubt Credit Scores Influence Mortgages

Many of us know credit scores can greatly affect mortgage rates and terms.

But just how much?

Aside from the loan-to-value ratio (LTV), credit scores are THE most influential factor in determining interest rates and costs, according to Debra Killian, a certified residential mortgage specialist.

“Even a small increase in a mortgage interest rate can cost the borrower thousands of dollars in interest over the life of the loan,” she says

Here’s an example: A $300,000, 30-year loan can cost $15,420 more with a 0.25% higher interest rate.

And it’s not just your interest rates, either.

If you’re taking out a mortgage, you’re required to have homeowner’s insurance, which is also affected by your credit score. People with poor credit scores can get stuck paying 114% more on that.

But don’t give up your home-buying dreams just yet.

If you really want to buy a home and are relying on a mortgage, there’s a little-known tool that you’ll want to ask your mortgage broker about.

It’s called a rapid rescore.

You Ask: What’s a Rapid Rescore, and Why Would I Need It?

Confession: I’d never heard of a rapid rescore until fellow Penny Hoarder Branndon Coelho asked if we’d written about it.

Nope — not until now, at least.

He’d first heard about it while chatting with his current landlord about buying a house. Coelho told the landlord that his family had worked hard to pay off their credit card debt, and now they were just waiting for their credit score to reflect that.

That’s when his landlord mentioned rapid rescoring.

When asked to define rapid rescores, Killian, the mortgage broker, said: “It’s a process that lenders use to update a credit report to correct accurate information and then have that same credit report rescored.”

The service is performed by credit services and is most predominantly used in conjunction with mortgages.

Coelho has been waiting about six weeks to see his hard work reflected in his credit score. He says two of the three bureaus have reflected the change thus far.

He’s not in a hurry to buy a home, but if he was, he could’ve requested a rapid rescore through a lender. He’d have needed written proof from the creditor, but those changes would’ve been reflected within about 48 hours, helping to drive down his mortgage rates.

Not only is the service used to quickly update information about bills paid, it’s also used in the case of accidents. Credit reporting agencies can accidentally misreport information — which isn’t rare, seeing as they’re taking care of millions of reports.

That’s when you’d file a dispute with the agency, followed by a rapid rescore request to see the changes reflected more quickly.

Here’s What You Need to Know About Rapid Rescores

There are a few things you need to understand when it comes to rapid rescores.

1. It’s Not Magic

Unfortunately, a rapid rescore isn’t just a bandaid you can put on your credit report. There must actually be errors or changes in your credit history for it to work.

“You have to take some action,” Killian says.

2. Not All Lenders Accept Rapid Rescore Reports

Killian warns: Some lenders don’t accept a rescore, so be sure to always ask before moving forward.

3. This is a Business-to-Business Service

Remember: This is a business-to-business service between the lender and the creditor. You can’t simply Google rapid rescore and do it yourself.

4. Consumers Should Never Have to Pay

Because the consumer isn’t even involved in this process, it shouldn’t cost a thing, but always ask your lender.

Some credit reporting agencies require the lender to take care of it. That’s what Killian does. She says she pays $35 per tradeline per credit bureau.

5. Follow Directions

If you’ve worked with your lender to initiate a rapid score, stay on track. Don’t do anything to chance your finances.

“They really need to follow directions and keep paying everything on time and not incur or open new debt,” Killian says.

6. Nothing’s Guaranteed

“I can never guarantee I can get your score to 750,” Killian says.

However, there are systems she can use to run “what if” scenarios that will pretty closely predict how your credit score will adjust if, say, you pay off that $500 Visa card. That’s as long as everything else stays the same. (Revisit No. 5.)

7. A Consumer Credit Report Isn’t the Same — But That’s OK

Unfortunately, the credit report you pull isn’t going to be the same one your lender pulls. However, it’s a perfectly fine reflection, Griffin, from Experian says:

“The scores you get probably won't match what the lender has — or the numbers will be different — and that's OK,” Griffin explains. “The risk factors tend to be very, very similar if not the same from one score to another. They tell you what to work on in your credit report.”

Before you even visit your lender, you can start taking steps to address the risk factors on your credit report (like credit card debt) and to see just how much your score can increase when negative marks go away.

And also know that you should never pay for your credit report, either. Go ahead and pull a free copy of yours here.

8. Rapid Rescores Can Save You Thousands

“A 690 to a 750 could be a difference between a quarter of a percent — or more — of the life of a loan,” Killian says. “We’ve saved people thousands and thousands of dollars.”

It all depends on the type of loan you take out, your down payment and, yes, your credit score.

So if you’re looking into buying a house soon, keep this tool in mind. It could save you tons in the long run.

Carson Kohler (@CarsonKohler) is a junior writer at The Penny Hoarder.



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The Cost of College Tuition Isn’t Increasing as Quickly as It Used to

As current and former college students continue to grapple with more than $1.4 trillion in outstanding student loan debt, they’re foregoing homeownership, marriage and buying cars.

Thanks to these stark realities and a strong job market, fewer Generation Z-ers are attending college, and they’re becoming more prudent about which schools to attend.

This has created a bright spot in an otherwise dark financial arena: The skyrocketing growth in tuition costs at universities has slowed to less than 2%, according to an article by the Wall Street Journal.

That’s down from the 6% annual growth rate in tuition prices the country experienced between 1990 and 2016. That means the price of college is finally falling back in line with inflation.

Really? So millennials can’t put down the avocado toast, but Generation Z has the fiscal discipline to compare — and even forego — college tuition costs? What’s really behind this massive shift in the trend?

Market Forces and Demographic Shifts Rein in College Tuition Costs

“The competition is bigger now than it has been, and I think we have more informed consumers,” College of Saint Mary Chief Financial Officer Sarah Kottich told the Journal.

Data from the National Center for Educational Statistics show that overall college enrollment fell 4.5% between 2010 and 2016, but the number of two- and four-year colleges has stayed roughly the same, with only a 0.3% decline.

Fewer students and the same number of universities means that these colleges have had to implement cost-cutting measures to lure potential undergraduates. The tuition discount rate, a measure of grant and financial aid, for all first-year students grew to 49.1% this school year from 48% in 2016, the WSJ reports.

But demographics are also playing a role in the tuition cost slowdown. The total amount of college-aged students isn’t growing at the rate it was in the 2000s, as the number of high-school graduates jumped 18% in the aughts, but only 2% since 2010, the Journal reports.

Will This College Tuition Trend Continue?

Even though annual college tuition cost hikes have fallen below 2%, you might want to wait before taking the GMAT to go back and get a master’s degree.

That’s because as state budgets face looming shortfalls, funding for public education is likely to be on the chopping block, according to the WSJ article.

And even though the number of colleges isn’t declining by a huge amount (0.3%  since 2010), it has still been trending downward every year since 2012. If it catches up to the decline in demand for college tuition, we might see prices start creeping back up.

Until then, let’s tap a keg and celebrate the little wins we can when it comes to paying for college.

And be sure to check out The Penny Hoarder College page on Facebook for more university news.

Alex Mahadevan is a data journalist at The Penny Hoarder.

This was originally published on The Penny Hoarder, one of the largest personal finance websites. We help millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. In 2016, Inc. 500 ranked The Penny Hoarder as the No. 1 fastest-growing private media company in the U.S.



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Financial Experts Say This is Why Millennials are Blowing It With Money

What am I doing wrong? That’s what I always want to know.

Sure, I like positive reinforcement, too: Don’t worry, you’re doing a great job as an employee/spouse/parent/human being.

But, good vibes aside, I need to know what I’m doing wrong. What do I stink at?

This also applies to managing my money. What could I be doing better? What am I not thinking of? What are my blind spots?

No one tells us this stuff, you know? Especially when we’re young and just starting out.

We need money advice!

That’s why The Penny Hoarder asked a panel of eight whiz-bang financial advisors this question:

What is a common financial mistake that beginners make?

Kevin Gahagan

“Failing to take advantage of company retirement plans is a common mistake that younger people make. Many plans will offer matching contributions when an employee contributes to a 401(k) retirement plan. For those who participate, this is an immediate and substantial return on their savings investment.”

— Kevin Gahagan, chief investment officer, Mosaic Financial Partners, San Francisco

Warren A. Ward

“Beginning investors are presented with literally a once in a lifetime offer. They can start their investing early and allow the benefits of compounded growth to work for them.”

“We speak with people every week who say that they want to invest in such a way as to avoid risk, so they’re thinking a CD or U.S. savings bond. We like to point out that taking moderate risk at the beginning … is likely to be the least risky approach over their entire lifetime.”

Warren A. Ward, WWA Planning & Investments, Columbus, Indiana

Penny Hoarder tip: One way to start investing early is to use an app like Acorns. Once you connect it to a debit or credit card, it rounds your purchases up to the nearest dollar and funnels your digital change into a savings or investment account. Because the money comes out in increments of less than $1, you’re less likely to feel an impact in your bank account.

Justin Chidester

“Procrastinating saving for retirement even when they know they need to start early. I’ve noticed that millennials are a generation comfortable with digesting large amounts of content online. When we have a question, we Google it. We’re used to finding our own answers and tend to hold a ‘do-it-yourself’ attitude.”

“With financial and investment decision-making, however, this can become a crutch — there is so much information to wrap your head around that it’s easy to suffer from ‘analysis paralysis’ and keep putting off investing because you want to do it perfectly.”

— Justin Chidester, owner of Wealth Mode Financial Planning in Logan, Utah

Penny Hoarder tip: Keep it simple. Stash, a super basic investing app, automatically pulls a few bucks from your checking account each week. It invests your money in a set of portfolios reflecting your beliefs, interests and goals. It does everything for you. No paralysis from analysis.

Andy Yadro

The biggest mistake I see millennials making is being duped by insurance salesmen. Everyone needs insurance, but a very small subset of young people need the insurance that is sold by most ‘financial advisors.’”

“ALWAYS get a second opinion from someone that does not focus on life insurance before moving forward with any recommendation.”

— Andy Yadro, financial planner with Googins Advisors in Madison, Wisconsin

Penny Hoarder tip: You might still consider a basic life insurance policy, which could be useful for paying off your funeral, mortgage or car loans. Companies like Haven Life offer streamlined ways to get it. Unlike traditional providers, this online-only platform provides instant decisions on coverage applications. Some qualified, healthy applicants up to the age of 45 may even get to skip the medical exam most providers require.

Karen Lee

“Accruing credit card debt is by far the biggest financial mistake young people will make. They have grown up with credit cards as a norm, and don’t understand the concept of the interest and the need to pay those bills off monthly.”

— Karen Lee, president, Karen Lee & Associates, Atlanta, Georgia

Penny Hoarder tip: Pay off your credit card balance religiously every month to avoid falling behind and getting swamped by interest charges. Plus, with a cash-back rewards card, you can get paid for every dollar you spend. We recommend checking out the Barclaycard CashForward World MasterCard. You’ll earn 1.5% cash back, plus a $200 bonus for signing up.

James Matthews

Common financial mistakes young people make:

  • Overspending on lifestyle without paying yourself first
  • Using credit cards to make purchases you can’t afford
  • Taking on too much student loan debt relative to starting salary of future occupation
  • Not taking full advantage of employee benefits like 401(k), HSA, FSA, tuition reimbursement, matching charitable donations, etc.
  • Buying a home based on what the bank pre-qualifies you for, not what your budget allows
  • Cashing out old retirement plans with small balances when changing jobs vs. rolling them over

— James M. Matthews, managing director of Blueprint, a financial planning firm in Charlotte, N.C.

Penny Hoarder tip: Always, always roll over that 401(k) from your last job! That stuff is gold! Never cash it out. The online robo-investing company Betterment will roll your old 401(k) fund into a tax-free IRA. It funnels your investment money into a portfolio of low-cost index funds that track the stock market as a whole.

Brett Anderson

They don’t save enough. They should work on hitting at a minimum of 15% of their GROSS income. I suspect the millennials are going to live longer than any other generation to date. This is going to require them to work longer and save more.”

— Brett Anderson, president, St. Croix Advisors in Hudson, Wisconsin

Penny Hoarder tip: Not all of us are in a position to save 15% of our gross annual income. But most of us could probably be saving more.

Ben Westerman

The biggest mistakes young people make are:

  • Not taking full advantage of a company 401(k) match, as many are giving up free money!
  • Not starting with investing. My suggestion is to start by investing in a target-date age based fund, which corresponds to the year of retirement (or age 65).

— Ben Westerman, senior vice president, HM Capital Management, St. Louis

There. Now you know everything you’re doing wrong. Enjoy your free money advice.

Time for some positive reinforcement: You made it to the end of the article! You’re obviously very smart and focused and have a bright financial future ahead of you!

Mike Brassfield (mike@thepennyhoarder.com) is a senior writer at The Penny Hoarder. He has made so many mistakes. So many.

This was originally published on The Penny Hoarder, one of the largest personal finance websites. We help millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. In 2016, Inc. 500 ranked The Penny Hoarder as the No. 1 fastest-growing private media company in the U.S.



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Stephen Moore Pitches Tax Plan at White House: How to Get the Economy Booming

CBN News contributing writer and economist Stephen Moore is at the White House Tuesday as the National Economic Council reviews his plan for tax reform. Here's his 3-part plan to jumpstart the economy...  

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Fund Briefing: UK Equities

Skyline of the City of London from the south bank

These are unsettling times for the investors in UK equities, the word for shares in companies listed on the London Stock Exchange. A string of terrorist attacks in major UK cities, high-profile marches against austerity, and devastating tragedies such as the Grenfell Tower fire have contributed to a widespread feeling of unease.

Voters are also divided on political issues. Last year’s decision to leave the European Union was extraordinarily close, while the general election saw the Conservatives win with a reduced majority, forcing them to pursue a power-sharing deal with the Democratic Unionist Party.

The general concerns were illustrated in a YouGov poll for The Share Centre, which found more than six in 10 people believe the outcome of the general election will negatively impact markets.

Richard Stone, chief executive of The Share Centre, isn’t surprised. “Investors do not like uncertainty and the prospect of political wrangling, an unstable government and increased doubts over the nature of the Brexit deal we may be able to negotiate have all surfaced due to the general election,” he says.

However, the past 12 months have been surprisingly good for investors, with the FTSE 100 index, which tracks performance of the 100 biggest companies traded on the London Stock Exchange, up almost 12% to 7,377 points in early July, despite the constant diet of terrible news. The FTSE 250 index of medium-sized companies, which tracks performance of the 101st to the 350th largest companies listed on the London Stock Exchange, is 14% higher over the same period, at 18,833 points.

In addition, in the year to 30 June 2017, the average fund in the Investment Association (IA) UK All Companies sector has gone up 22%, while there has been a 36% uptick for the average IA UK Smaller Companies fund, according to Morningstar data.

The first half of the year has certainly seen some very strong performances from UK equity funds, with Old Mutual UK Smaller Companies Focus coming out on top.

Adrian Lowcock, investment director at Architas, says: “Its performance is a reminder that stock picking and active management can really add value. Manager Nick Williamson runs a diverse portfolio and is ably supported by a strong UK team at Old Mutual.”

Patrick Connolly, a certified financial planner with Chase de Vere, agrees that the UK stock market has continued to be resilient and perform well, despite the economic and political uncertainty that investors have witnessed in recent months.

“There is not a direct and immediate relationship between stock market performance and economic growth or political events,” he says. “Performance is more linked to general investor sentiment and to the performance and outlook for individual companies.”

He points out that investor sentiment has been particularly positive towards large companies in the FTSE 100 index due to Sterling’s weakness since the EU referendum vote. This is because it makes the overseas earnings of large companies worth more when converted into Sterling.

David Coombs, head of multiasset investments at Rathbone Unit Trust Management, believes investors need to acknowledge we have a two-tier UK stock market.

He points out that on one side you have large cap, international companies whose prospects are less dependent on the UK, and on the other there are more domestically-focused names.

“I own overseas earners such as Rentokil and Carnival and don’t need to take risks on companies focusing on UK customers,” he says. “I’m concerned about the housing market, inflation, and the UK consumer.”

It’s a view echoed by James de Bunsen, a multi-asset manager with Janus Henderson Investors. “The UK has been remarkably resilient, mainly held up by the consumer, but you’re seeing a real weakening in consumer sentiment and retail spending,” he says.

How to choose a UK equity fund For those wanting UK equity exposure there are plenty of funds from which to choose. In fact, there are more than 260 funds in the IA UK All Companies sector and around 50 available within IA UK Smaller Companies.

Given the fact people like putting money into their ‘home’ market, it’s no surprise that UK All Companies has £166.4 billion of assets under management – £78.1 billion more than IA Global, the second most popular sector. IA UK Smaller Companies, meanwhile, is home to £14.4 billion.

Juliet Schooling Latter, research director at Chelsea Financial Services, believes future returns from UK equities will be conservative.

She points out that the FTSE 100 and FTSE 250 indices are near all-time highs and expects Brexit negotiation-inspired wobbles.

“Companies are looking on the expensive side and earnings growth is not strong enough to give me much comfort,” she says. “If Sterling strengthens, companies that have benefited from its fall will also see their fortunes reversed to some extent.”

She suggests a multi-cap fund could be a good place to start for UK equity investors because these funds tend to be more defensive in nature. While smaller companies funds have done well, she points out that they can be risky and more volatile.

“I prefer a good stock-picking actively managed fund to a tracker, but this is a market where investors shouldn’t tolerate bad performance for too long,” she says. “They also need to make sure a fund doesn’t get too big that its investment process is compromised.”

Fund to watch: Old Mutual UK Mid Cap fund

This fund, a member of the Moneywise First 50 Funds for beginners, aims to provide capital growth from investing primarily in a portfolio of medium-sized UK companies.

Mark Dampier, research director at Hargreaves Lansdown, says the fund has generated significant long-term outperformance of its benchmark.

“Our analysis suggests the manager’s performance has been driven by astute stock picking,” he says. “With the support of a talented team of fund managers investing in the UK, we feel he has the ability to deliver good long-term returns.”

The 10 largest holdings in the portfolio include Boohoo.com, the fast-growing international fashion e-tailer, that represents a 7.7% share of the fund’s assets under management.

Paysafe Group, the online payments company, is the next biggest investment for the fund at 6.5% of the portfolio, followed by 4.9% in Ascential, the business-to-business media fi rm.

The fund also holds investments in retailer JD Sports Fashion, property developer Taylor Wimpey, packaging company RPC, and Shawbrook Group, the savings and lending bank.

The fund’s largest sector weightings, meanwhile, are in industrials (26%), financials (25%) and consumer services (24%). Other sectors with significant weightings include consumer goods (10%), technology (4%) and telecommunications (2%).

QUICK GUIDE: Is this area right for me?

Consider investing in UK equity funds if…

  • You want access to UK-listed companies
  • You believe the FTSE 100 will rise
  • You feel comfortable investing in names you recognise

How much should I invest in this sector?

Low-risk investors: 20%

Medium-risk investors: 25%

High-risk investors: 25%

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14 Cost-Effective Things You Can Easily Find at a Secondhand Store

Over the last few weeks, I’ve found myself in several different secondhand stores, wandering about and admiring the goods on display. I often go to secondhand stores to seek out specific things that I’m looking for, but it had really been a while since I simply walked the aisles and looked around at what was on sale there. Along the way, I found quite a few items that were incredibly worthwhile and surprisingly inexpensive.

Many people, when they consider going to Goodwill or another secondhand store, imagine things like ragged sweaters and mildewy couches, but that’s not where the value is. Here are more than a dozen items I saw at most of the stores I visited that actually provided quite a lot of value for the dollar. The best part? If they don’t provide value to you, you can often flip them on Craigslist and get back what you paid for them (which usually isn’t much).

Here are 14 items I’d always look for in a secondhand store.

T-shirts

Secondhand t-shirts can usually be bought for just a couple of dollars. They’re perfect for weekend wear or activewear and then, when they’re completely worn out, you can add them right to the rag bag and use them for cleanup tasks (I really like using them for washing windows, for example). T-shirts are so utilitarian, and that’s why they’re valuable.

When you go to a secondhand store, browse through the t-shirts they have in your size or in the size of your family members. You’ll often find them for just a dollar or two and, quite often, they look practically new. At that price, you’ll feel completely fine getting them dirty on a workday or on a hike and it won’t feel like a big loss when they end up in the rag bag after a bunch of wearings.

Pants

The story that one can tell with t-shirts almost exactly replicates itself when it comes to pants. Quite often, pants of various kinds are incredibly cheap at secondhand stores. They’re perfectly fine for weekend wear and for outdoor tasks or other messy tasks. You won’t feel bad when they wear out completely because you only spent a few bucks on them. Not only that, some pants can have a second life in a rag bag, too.

I have several pairs of pants bought for just a couple of bucks at secondhand stores that I wear when I’m working in the yard or going on a hike or just being lazy around the house on a weekend. I don’t ever intend to wear them in a social situation or at a community event. They’re just perfect for messy tasks like cleaning the garage or fixing a bicycle or hiking somewhere or fixing a fountain pen. If I spill some oil on them or stain them, so what? They’re still wearable for weekend tasks.

Name-brand clothing, or clothing with tags still attached

The third category of clothing that I always look for in secondhand stores is clothing that either has a tag still attached or has an easily identifiable brand name on it. I own Ralph Lauren polos that were bought for a few bucks at a Goodwill, for example, and I’ve found several brand new articles of clothing on the racks there.

It’s easy to find items like these. Just look for garments with the original tag attached or for specific design elements. I usually look for items that are clearly made of good material and just fly by everything else – lo and behold, when I grab an item that’s made of good cloth and see that the stitching is well-executed, I’ve almost always heard of the clothing brand. That’s the only stuff I buy at used stores (aside from super-cheap t-shirts and pants that I intend to wear into oblivion on the weekends).

Books

I consider secondhand bookstores – and the book section at any secondhand store – to be a treasure trove for anyone who enjoys reading. If you spend a few minutes there, you can’t help but find treasures that you’re excited to read or books that might be useful for some project or another. For example, I recently found this wonderful older book with amazing full page color sketches of garden herbs that would look gorgeous in a kitchen in a frame. The cost of the book? $0.75.

I almost always make a beeline straight for the book section in a secondhand store. I’ll look at all the titles, find interesting ones for $0.50 or $1, and walk out of there with two or three volumes. Usually, one or two are for reading for pleasure or learning, while the other one is for some kind of reference or other use – a cookbook, perhaps, or a book that I’ll take apart and use the pages in some artistic way.

Pyrex dishes and cookware

I’m often astonished at the amount of dishes and cookware that one can find in a secondhand store, and while much of it is just mishmashed plates, you’ll often find some really high-quality stuff in there. I almost always look for Pyrex items, because Pyrex stuff is practically indestructible in a home kitchen and can often be found for just a buck or two at secondhand shops.

In fact, it’s because of this constant hunting for Pyrex that we have Pyrex baking dishes that we can use for freezer meals. If you can find a Pyrex baking dish with a lid in a secondhand shop and you cook at home at all, it’s probably worth picking it up because it’ll probably have a $1 or $2 sticker on it. You will find uses for it. I find such items every few visits to a secondhand store with a kitchen section.

Cast iron cookware

Another kitchen item that I find regularly in secondhand stores, though perhaps not as often as Pyrex, is cast iron items, whether enameled or otherwise. Almost always, when I find these items, they basically look new but they have a price tag on them that’s about 10% of what they would cost in the store.

Cast iron cookware will basically last forever, so if you can find an enameled cast iron pot for $5-10 at a store, it’s one of the best items you can find. You can use it on the stovetop, in the oven, and in the freezer, and it’ll roll through all of it.

Admittedly, cast iron items are a bit rarer than Pyrex in secondhand stores, but I find them regularly enough that I probably have no need to ever buy anything cast iron again for the rest of my life.

Small kitchen appliances

On the other hand, something more common than cast iron in secondhand stores are small kitchen appliances. You almost can’t go into a secondhand store without finding a bread maker or a food dehydrator or a rice cooker or a vegetable steamer or a stand mixer or a toaster oven, often marked down to just a buck or two. I would almost never buy any of these items new if I was interested in trying one; instead, I’d just visit a few secondhand stores.

Right now, as I type this, there is a loaf of bread in our kitchen being cooked in a bread maker from a Goodwill store. We have a secondhand stand mixer and a secondhand vegetable steamer in the garage as well (we use the garage for a bit of extra storage for these kinds of small appliances).

Here’s the truth: these kinds of small kitchen appliances probably aren’t a wise idea if you’re paying full price (unless you use them constantly and know exactly what features you need), but if you’re interested in trying them and seeing how much time they can save you at home, buying one for $5 at Goodwill is a good bargain. Plus, if you ever tire of it, you can usually flip it and get most of your $5 investment back on Craigslist.

Video games

If you go into a secondhand shop and spot games for a current generation console (PS4, Xbox One, 3DS, and Switch, as of this writing), you can almost always flip them for a profit. They’re one of the easiest things to profit from at a secondhand shop – I’ve done it more times than I can count. Just check eBay quickly for current used prices on those games.

On the other hand, I have fond memories of visiting my aunt when I was a child. She had a box that contained a video game console and piles of games for it – sometimes, it was already hooked up and ready to play. It wasn’t a current generation console, but there were so many games to try that we really didn’t care. I later learned that everything she had was acquired for pennies at a secondhand shop. She spent maybe $10 or $15 over the course of a few years and maybe $1 or $2 here and there after that to have an item that visiting children were thrilled to play, always with fresh games to play. If you can find a used console for a few bucks at a store (and the store verifies that it works and would allow you to return it if there’s a problem), pick it up. You can find oodles of games for dollars or even pennies for previous generation consoles at used game stores. Having an Xbox or a PS2 with a dozen games in a box somewhere is going to make visiting relatives love you. Plus, you can eventually flip them back for what you paid for them.

Board games

Here’s the trick with board games: most of what you find in a secondhand store is utter trash that people simply don’t want to play. What you’re looking for, in terms of flipping or in terms of family fun, are games that you don’t expect to see. Ignore the copies of Monopoly and Scene It! and look for games with less familiar titles. Almost always, these are the most enjoyable games available for sale there, and they’re usually priced for just a dollar or two because the person handling pricing doesn’t know what they are.

Take a peek at BoardGameGeek if you spy an unfamiliar game. That site will tell you quickly if a game is worthwhile – if it has a rating above a 6.5, it’s a well regarded game. Having a few well-regarded board games in your closet for a few bucks is perfect for situations where you have guests or family visiting. Similarly, it’ll also tell you what you might be able to flip the game for – and you’d be shocked how much they can flip for. I flipped a recent board game bought at a thrift store for $3 and received about $100 in return for it.

Tools

Many secondhand stores have a robust supply of tools of different times, from simple things like hammers and screwdrivers and wrenches and socket sets to small power tools. The best part is that these tools can often be had for pennies, whereas the same item might cost you $10 or so at a hardware store.

If you simply need to have a few Phillips screwdrivers of various sizes around the house for various screws (something that’s a good idea for almost everyone), the place to find them is a secondhand store. Just be patient, as different stores will have different items available. Having said that, much of our toolbox in our garage has been filled with items from secondhand stores.

Frames

You can often find many empty photo and portrait frames in secondhand stores, and you’ll sometimes find them with items already inside, ready for display. In either case, it can be a great way to acquire a frame for hanging almost any kind of decoration.

I love it when I can find an 8″ by 10″ frame for a dollar in one part of a secondhand store, and then head over to another part and find a record cover to crop or a book with some beautiful drawings in it that can be removed. For just two or three bucks, you suddenly have a beautiful and interesting and unique wall hanging for your home. The best part? These are the types of hangings that are easy to rotate. Just move the different frames around in your home and put different items in the frames and it’ll look like you redecorated at virtually no cost.

Mirrors

Another item that often shows up in secondhand stores is the humble mirror. You’ll find full sized ones or small ones intended to be hung on the wall. You’ll find ones with ornate framing and ones that have no framing at all. Again, it just requires patience.

Mirrors make for great wall hangings. You can almost never go wrong having a mirror or two hanging in a bathroom or a guest bedroom in your home. In fact, you can find a nice mirror along with a few empty frames and a book with some interesting pictures to cut out and you have the full decor you need for a very distinctive guest bedroom for less than twenty bucks; it’ll be completely unique, very colorful, and convenient for guests, too.

Baskets

Baskets have so many uses around the house. They’re perfect for storage, particularly when you want to keep a bunch of items together for a single hobby (like, for example, knitting supplies and yarn). They’re wonderful for picnics or other out-of-the-house excursions. They even work well for giving larger gifts, as I’ve given gifts in a basket and included the basket as part of the gift itself (just putting a bow on top of it).

The best part? Baskets show up at secondhand shops all the time. They might be a bit dusty, but it doesn’t take much effort for them to look wonderful once again, at which point they become perfect for all kinds of household uses. They usually only cost a dollar or two as well.

Wooden hangers

A final item that I always look for at secondhand stores is the humble wooden hanger. I hope to someday have nothing but wooden hangers in my closet. If bought new, wooden hangers can be fairly expensive, but they last practically forever (unlike plastic ones, which often break easily).

Quite often, estates will bring in lots of garments on wooden hangers, so if I find a garment on a wooden hanger, I’ll often find a similar garment that I actually want and swap the hangers (the stores typically don’t mind if you ask). That way, I walk out of the door not just with a new garment, but with a very nice hanger that will receive lifetime use in my home.

Some Final Thoughts

Secondhand stores might have a lot of junk in there that you don’t want, but if you go in there with a set of things that you consistently look for that may be useful to you, you can often find lots of insane bargains and items that you may be able to flip at a profit. I always look for several things when I’m in any secondhand store, from books to good vintage games, from Pyrex dishes to cast iron items, from small kitchen appliances I might want to try to tools I may need for my toolbox, from t-shirts to wear into oblivion and use as rags to name-brand clothing items hidden away with lesser materials. I rarely go away from a thrift store completely empty-handed and I rarely spend more than a few bucks on something that’s really useful to me.

May you have similar luck on your secondhand store visits!

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There Are Some Debts Even Bankruptcy Can’t Erase

Do severe financial issues have you fantasizing about a silver bullet that can make all your debts vanish? While it’s not exactly that easy, a Chapter 7 bankruptcy may be able to offer you some relief, and may also potentially protect you from your creditors if you’re facing serious debt problems.

There’s no question that bankruptcy can be a powerful tool to help you wipe out certain types of debt, but it’s important to understand that even bankruptcy has its limitations. For starters, bankruptcy can be very damaging to your credit, making it challenging or even downright impossible for you to secure new financing in the near term.

Additionally, there are certain debts your bankruptcy simply cannot wipe out. They aren’t what’s formally referred to as being “statutorily dischargeable.”

Debts Where Bankruptcy May Help

When you file a Chapter 7 or a Chapter 13 bankruptcy, there are a number of debts that will likely be eliminated upon the discharge of your bankruptcy. If you qualify for a Chapter 7 bankruptcy (yes, you have to qualify), these debts may be wiped out entirely. With a Chapter 13 bankruptcy, you’ll be required to pay a portion of these debts, but the remaining balances will likely be discharged upon the completion of your repayment plan.

Here’s a look at some types of debt that can typically be discharged in a bankruptcy:

  • Unsecured loans
  • Credit card debt
  • Medical debts
  • Judgments
  • Utility bills
  • Evictions/unpaid rent

Debts Where Bankruptcy Probably Can’t Help

Bankruptcy does not eliminate all types of debt, however. In fact, some debts may never be discharged, others may only be discharged if the consumer can prove extraordinary circumstances, and, finally, some debts may not be eligible for discharge if a creditor argues successfully that they should not be eliminated.

Here is a list — though certainly not an all-inclusive one –to help you understand some of the debts that may not be eligible for discharge in a bankruptcy:

Debts That Are Never Discharged, Even in Bankruptcy

  • Child support and alimony
  • Unlisted creditors: Debts owed to creditors not listed in your bankruptcy generally may not be discharged (unless the creditor has knowledge of your bankruptcy).
  • Government fines and penalties
  • Court-ordered restitution
  • Debts arising from DUI-related injuries or death
  • Certain condominium and HOA fees

Debts Only Discharged Under Certain, Extraordinary Circumstances

  • Student loans
  • Income taxes

Debts Not Discharged If a Creditor Argues Successfully

  • Debts you incurred fraudulently
  • Excessive credit card charges or cash advances made shortly before filing for bankruptcy

Bankruptcy and Your Credit Scores

Bankruptcy does have the potential to offer immense relief to consumers who find themselves in desperate financial situations. However, bankruptcy is not a cure-all for your problems either. If you’re considering filing for bankruptcy, it’s important to consider the impact it may have on your financial future.

Even if you’re fortunate enough to have all of your debts discharged when you complete your bankruptcy, this will not actually give you a clean slate from a credit perspective. Instead, when you file for bankruptcy, the actual filing will likely show up on your credit reports in the same amount of time it takes to boil an egg. After all, a bankruptcy is a public record.

Then, the filing will likely remain on your credit reports for up to 10 years. Additionally, each creditor whom you included in your bankruptcy filing will update their debt to show that it is subject to the bankruptcy filing. These debts can remain on your credit reports for no longer than seven years.

While bankruptcy should be your last option, it’s not necessarily the worst option. Some folks just need to hit the reset button, and bankruptcy does just that. And, in some wacky scenarios, the filing may actually improve your credit scores. If you already have very bad credit reports loaded with defaulted debts, the elimination of those debts can lead to modest improvements in your score. But, you’ll still be going from really poor credit scores to, well, really poor scores.

There just isn’t a silver bullet.

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