BUSHKILL — Fernwood Hotel has been sold to a Buddhist temple group. The Jinyin Temple of Sino Esoteric Buddhism, Inc. paid $2.55 million for the former resort in Bushkill, Pike and Monroe County tax records show.“It’s going to be a world peace center,” said Judy Acosta, zoning administrator for Middle Smithfield Township. “I believe they're going to incorporate some prayer gardens on the property and have it be like a retreat center."A [...]
Source Business - poconorecord.com http://ift.tt/2BhhNy2
الثلاثاء، 19 ديسمبر 2017
Compare Loans
Thinking of taking out a loan? Start by comparing your options to find the loan that’s right for you!
Many of life’s biggest moment also require a large amount of money, which is where loans come in. If you’re looking for a house, buying a new car, or getting married, you may need a loan. The questions then become: Which one, and for how much? To answer these questions, you’ll need to compare loans.
Comparing loans helps you find the right loan for you. For instance, if you’re remodeling your kitchen, should you choose a home equity loan or a home equity line of credit? Should you compare personal loans with those two options as well? Finding the right loan for you is important to ensure you get the best rate and terms. If the APR is too high or the terms too aggressive, you could end up damaging your finances.
We’ll go through the most common types of loans, their pros and cons, how to compare loans, and how to compare loan rates to help you make an informed decision!
Why do I need a loan?
In order to compare loans and narrow down your options, you need to understand why you need a loan in the first place. Most people need to secure financing because they don’t have thousands of dollars sitting around to pay for large expenses.
Some of the most common scenarios that require a loan include:
- Buying a car
- Consolidating debts
- Emergency expenses
- Funeral expenses
- Home improvement
- Medical expenses
- Pay off credit cards
- School tuition
- Special event
- Starting a business
- Vacation
- Wedding
What types of loans are available?
While there are several different types of loans based on your needs, they each fall into one of two main categories — secured or unsecured.
- Secured: These loans are backed by collateral, which means you put something up (typically your car, house, or other valuable asset) to guarantee that you’ll repay the loan. In the event that you don’t repay the loan and default, the asset can then be forfeited or seized.
- Unsecured: On the flip side is unsecured loans. These are loans that are not backed by an asset and therefore consider to be “higher risk” loans. Because the lending institution is taking a chance on you and your ability to repay, unsecured loans typically come with higher interest rates.
Within these two categories, there are several different types of loans you can choose from (some you’re probably familiar with, such as a mortgage or auto loan). The type of loan you get and whether it is secured or unsecured will determine how you pay it back and what happens if, for some reason, you’re unable to pay.
Types of secured loans:
- Auto loan – A loan is granted to help you pay for your car over a certain person of time and your car can be repossessed if you fail to pay.
- Business loan – These can be both secured and unsecured. Secured business loans will require you to put something up as collateral, but you may get a lower interest rate.
- CD or savings loan – A hold is placed on your certificate of deposit or savings account allowing you to borrow up to 95% of its funds.
- Home equity loan – This allows you to borrow against your home’s equity for a lump sum, fixed-installment loan.
- Home equity line of credit – A HELOC allows you to draw money from your home’s equity as needed for up to 10 years before repaying.
- Mortgage – Your new home is put up as collateral and can be foreclosed if you fail to pay your mortgage.
- Personal loan – These can be both secured and unsecured. Typically, if you have a lower credit score, you’ll be required to take out a secured personal loan.
Types of unsecured loans:
- Business loan – These can be both secured and unsecured. Unsecured business loans typically have higher interest rates and shorter term lengths since there is more risk.
- Personal loan – These can be both secured and unsecured. If you have a good to excellent credit score, you can probably negotiate better interest rates and terms for an unsecured personal loan.
- Student loan – Both federal and private student loans are considered unsecured debt; however, they do differ in their interest rates and terms.
Pros and cons of secured loans
Some of the positive aspects of secured loans include:
- Build your credit< – Secured loans are great for anyone with bad or poor credit because they minimize risk for the lender while helping you build credit when you make payments in full and on time./li>
- Lower interest rates – Because you’re putting something up as collateral to cover the loan, lenders will often give you lower interest rates since their risk is now minimized.
- Bigger loan amount – By securing your loan with collateral (your house or your car), lenders will often grant larger loans to cover these big purchases.
- More favorable terms – With a secured loan, you’re more like to get a longer repayment window and a better interest rate, such as a 30-year fixed 3% interest mortgage.
Some of the potential negative aspects of secured loans include:
- Loss of asset – If you default on your loan, then you may need to forfeit the asset you put up for collateral, or the lender can seize it.
- Damaged credit – As with any loan (secured or unsecured), failure to meet the loan terms could result in your credit score decreasing.
Pros and cons of unsecured loans
Some of the positive aspects of unsecured loans include:
- Build your credit – Making payments on time and in full on any type of line of credit will help boost your credit score over time.
- No risk of assets – Since unsecured loans don’t require collateral, you won’t typically have to worry about losing your home or car if you fall on hard times and can’t make payments.
- Easier application – For the most part, unsecured loan applications are easier to fill out since there’s no need to evaluate collateral.
Some of the potential negative aspects of unsecured loans include:
- Still held responsible – Just because you didn’t put up collateral doesn’t mean a lender won’t take action if you stop making payments altogether. Lenders can sue you in court and place a lien on your assets to secure payment.
- Smaller loan amount – Since your loan isn’t backed by an asset (and therefore considered riskier), lenders may not be as willing to lend you large amounts.
- Higher interest rates – Again, since unsecured loans are considered riskier without collateral, they usually have higher interest rates and may come with other fees.
- Damaged credit – As with any loan (secured or unsecured), your credit score could take a hit if you fail to make payments.
How to compare loans and loan rates
Once you understand why you need a loan and what type of loans are available to you, it’s time to start comparing the loans and loan rates to find the best option to meet your needs.
Here’s how to get started:
Step 1: Decide which type of lender is best for your needs
Before you can get a loan, you’ll need to decide which type of lender — bank, credit union, or online lender — is right for you. Each type of lender has their own pros and cons, so which one you choose will ultimately come down to the type of loan you want and the financial institution you feel most comfortable working with.
Some things to consider:
- Bank – Getting a loan from a bank is the most common option. You can easily keep all of your finances under one roof (if you already have a bank for checking or savings), there are brick-and-mortar locations, and you may be able to secure better terms if you’re a longtime customer. On the downside, there may be fewer unsecured options and applicants with bad or poor credit may have a harder time getting approved.
- Credit union – You’ll need to be a member of a credit union to take advantage of their loan options so be sure to inquire about that first and make sure they offer the loan you’re interested in. Once you’re a member, though, you may enjoy lower interest rates and an easier approval process. Additionally, there are brick-and-mortar locations you can visit in person.
- Online lender – Typically with online lenders, you’ll be limited to only unsecured loan options, so you may get a higher APR. However, the process is generally more convenient with easier approval (it’s all online!). Exercise caution when looking at online lenders, though. There are many predatory sites out there, so make sure you’re working with a reputable lender.
Step 2: Get multiple quotes
Once you have a general idea of what type of lending institutions may be right for you, it’s time to get quotes. It’s important to shop around — try to get at least three quotes — so you can compare the terms of each loan.
Some quote options to consider:
- Get quotes from multiple financial institutions – If you’re open to working with all three types of financial institutions, you can get quotes from a bank, a credit union, and an online lender to see who has the best rate.
- Get quotes from multiple lenders – If you know you want to just work with a bank, for instance, you can get quotes from multiple banks to compare their terms and rates.
- Get quotes for multiple types of loans – Depending on your financial needs, there may be a few loan options available to you. For instance, with our kitchen remodel example above, you’ll probably want to get a quote for a home equity loan, a home equity line of credit, and a personal loan to see which offers the best terms based on your creditworthiness.
Step 3: Compare the offers side-by-side
After you receive multiple quotes, it’s time to compare the offers side-by-side. Unfortunately, no two loan offers will look the same, so you’ll have to put in some work to compare loan rates. Create a spreadsheet or list that you can fill in based on each offer.
Here are some items you’ll want to consider:
- Type of loan
- Amount you’re borrowing
- Interest rate
- Annual percentage rate (APR)
- Monthly payment amount
- Lender fees
- Late payment fees
- Other fees or points
- Term of loan
- Prepayment penalty
- Adjustments
- Lock-in period
- Terms of defaulting
Make sure you completely understand the terms of each offer before you make a decision.
Step 4: Negotiate
If you want the best deal, you have to be willing to speak up and negotiate. Don’t be afraid to ask the lender if they’d be willing to waive or reduce certain fees, or if they would agree to a lower interest rate. In some cases, they may agree on the spot, but in other cases, they may propose a compromise (for instance, put an extra $1,000 down to waive $1,500 in fees). The bottom line is, though, that it doesn’t hurt to ask.
Once you feel confident that you’ve found a loan offer that meets your needs, you understand the terms completely, and you’ve negotiated as much as you could, you’re ready to sign!
The post Compare Loans appeared first on The Simple Dollar.
Source The Simple Dollar http://ift.tt/2BNrFiK
What are Personal Loans?
In short, a personal loan is a loan that can be spent on whatever you want. Each loan is a lump sum lent to a borrower with the expectation it will be repaid in fixed payments over one to five years.
Personal loans are some of the custom loan options available. Consumers can seek secured or unsecured personal loans from a bank, credit union, or personal lender, and the loan itself can be used for financing cars, housing costs, education, debt consolidation, or any other major expense.
As you can see, when it comes to a personal loan, there are a lot of variables. So, before you decide which personal loan is best for you (or if you should even choose a personal loan over other types of loans), ask yourself a few questions:
- What kind of debt am I trying to cover?
- Should I choose a bank, credit union, or private lender for my personal loan?
- How can I get the best personal loan rate?
- What questions do I need to ask my lender?
Before we begin, here are some terms you should be familiar with.
Personal loan terms and definitions
- Annual Percentage Rate (APR): APR refers to the additional costs — both in interest and fees — borrowers must repay in addition to the principal of their loan. APRs are always expressed as a percentage, and determined by credit history, the length of the loan, the amount borrowed, and debt-to-income ratio.
- Debt-to-Income Ratio (DTI): This is how much you owe, versus how much you currently make. To find your DTI, add up your total monthly payments and divide that number by your gross monthly income. Lower ratios (up to 35%) signal to lenders that you’re fiscally responsible, and thus a good investment. Maintaining a low DTI is one of the keys to earning a lower APR.
- Fixed vs. Variable Rate: These terms refer to the stability of interest rates over the course of a loan.
- Fixed interest rates do not change throughout a loan’s duration. If your rate is 5%, it will always be 5%.
- Variable interest rates can fluctuate according to a number of factors, such as the U.S. Prime Rate index or paying down your principal. For example, your loan could start with a 3% variable interest rate, then increase to 7% if the U.S. Prime Rate index jumps.
- Prepayment Fees: Prepayment, or exit fees, are extra fees charged when you fully repay loans within a certain time period (such as paying off early). These are usually associated with mortgages, but could come with personal loans as well.
- Prequalification: During prequalification, lenders examine your credit history, and determine whether or not you’d qualify for a loan. Prequalification is very casual — you won’t receive official offers, and the process can be done remotely with nothing more than a soft credit pull.
- Secured vs. Unsecured Loans: These terms refer to any and all collateral you might be expected to put up as part of your loan.
- An unsecured loan isn’t protected by collateral (such as your car or home which could be forfeited if you default).
- A secured loan is protected by collateral as well as an agreement that the lender can take possession of a specific piece of property if you fail to make payments.
-
- In general, secured loans have higher rates and more terms; however, in some cases (such as high DTI or low credit score), you may need a secured loan in order to rebuild your credit.
- Soft vs. Hard Credit Pull: Also known as “credit inquiries” or “credit checks,” a credit pull is when any organization checks your credit report.
- Soft credit pulls are unofficial and can be initiated by potential lenders, financial institutions, or even by the individual themselves. They do not affect your credit score.
- Hard credit pulls are official credit checks made by institutions that are considering whether or not to lend you money. As a result, you appear to be taking on more debt, and thus your credit score may decrease.
Is a personal loan right for me?
A personal loan is just that: personal. Once you receive a personal loan, you’re free to spend it on whatever you want, so long as you’re able to pay it back via monthly payments for a specified period of time.
But as a result, personal loan lenders often compete against other types of loans. For example, a homeowner that’s looking to refinance their property can choose between a personal loan, a home equity loan, and a home equity line of credit (HELOC).
Simply put, personal loans aren’t always the best option. We’ve compared personal loans against other common types of loans to help you determine which loan works the best for you.
You can start by taking our quiz here:
What’s my optimal loan?
Personal loans for debt consolidation
Personal loans are most commonly used for debt consolidation. Individuals with multiple sources of debt often have varying payments each month. Their existing loans may come with a high APR, disreputable lenders, steep monthly payments, or other unfavorable terms.
Borrowers in this situation have the option of taking out a personal loan to pay off all existing sources of debt, and instead simply pay off a single loan with fixed monthly payments. It’s an attractive option for many borrowers, and can actually cause a jump in credit score.
This is the ideal option for anyone with a lower credit score, higher DTI, and multiple sources of debt — in fact, it may be the only option available. You may have to take out a secured loan with a higher APR, but so long as you make monthly payments consistently and on time, you’ll be able to put your debt to rest.
Personal loans vs. balance transfers
| Criteria | Personal Loan | Balance Transfer |
| Average APR | 10% – 28% | 11.99% – 24.99% |
| Loan / transfer duration | 12 – 60months | 0% intro APR for 9 – 18 months, regular interest after |
| Additional fees | 0% – 10% loan origination fees | Up to 3% balance transfer fees |
| Ideal credit score | Poor, Fair, Good, Excellent | Good, Excellent |
| Best for | Debt consolidation | Credit Card debt |
| Type of debt | Fixed installment | Revolving |
If you have good to excellent credit, and you’re confident you’ll be able to pay off your debts entirely within nine to 18 months, you might want to consider a balance transfer instead of a personal loan.
The best balance transfer credit cards aren’t like traditional credit cards. They’re not meant to be used to cover day-to-day purchases. Instead, they’re meant to be used for debt consolidation. Any existing credit card debt can be transferred to your balance transfer card (with up to 3% transfer fee), and paid off without any APR for up to 18 months.
If you choose to take out a balance transfer credit card, be very careful about paying off your balance in full within the introductory 0% APR period. Otherwise, you’ll be hit with a considerable APR — averaging between 12% and 25%.
Personal loans vs. home equity loans
| Criteria | Personal Loan | Home Equity Loan |
| Average APR | 10% – 28% | 4% – 6% |
| Loan duration | 1 – 5 years | 10 – 15 years |
| Additional fees | 0% – 10% loan origination fees | 2% – 5% in closing costs |
| Ideal credit score | Poor, Fair, Good, Excellent | Fair, Good, Excellent |
| Best for | Debt consolidation | Refinancing or remodeling home |
| Type of debt | Fixed installment | Fixed installment |
Home equity loans are lump sum, fixed-installment loans that borrow against a property’s equity. A homeowner’s equity is determined by the property’s total value, minus the debt still owed on said property. (Home equity loans are also commonly known as “second mortgages.”)
The best home equity loans are one of two loan options (along with a HELOC) designed to refinance a property.
Lenders require potential borrowers to own at least 20% to 25% equity in their home, have at least a fair credit score, and have a consistent record of employment with a steady stream of income.
In addition, home equity loans are often secured by the home itself. While that might give potential borrowers more favorable rates, if it’s a source of concern you may want to consider taking out a personal loan instead.
Personal loans vs. home equity lines of credit (HELOC)
| Criteria | Personal Loan | Home Equity Line of Credit (HELOC) |
| Average APR | 10% – 28% | 3% – 6% variable |
| Loan / transfer duration | 12 – 60 months | 5 – 10 year draw period, 10 – 25 year payment period |
| Additional fees | 0% – 10% loan origination fees | $50 – $100 yearly maintenance fees, average 2 – 5% closing costs |
| Types of credit accepted | Poor, Fair, Good, Excellent | Good, Excellent |
| Best for | Debt consolidation | Remodeling home |
| Type of debt | Fixed installment | Revolving |
Both home equity loans and HELOCs provide loans by borrowing against the equity of your property. But while a home equity loan is a lump sum with a fixed repayment period, HELOCs operate as revolving lines of credit, much like a credit card does. Here’s how it works:
When a homeowner signs up for a HELOC, they’re allowed to draw money out of their home’s equity for 5 to 10 years. This is known as the HELOC “draw period.” During this time, homeowners can use the money for a variety of reasons, same as a personal loan, up to a certain amount.
During the draw period, borrowers are allowed to make interest-only payments. They won’t be able to repay the principal, however, until the repayment period.
Once the draw period concludes, borrowers enter a repayment period that can last anywhere between 10 to 25 years. During this time, they’re expected to repay all of the money they borrowed (principal), as well as any remaining interest.
What makes home equity line of credit loans distinct is their variable APR, meaning that borrowers take a gamble on what the interest rate might be when payment comes due. HELOCs work best for homeowners with excellent credit that are using multiple organizations for home renovation and have bills with different costs coming due at different times. For everyone else, personal loans or home equity loans may be a better choice.
Personal loans vs. auto loans
| Criteria | Personal Loan | Auto Loan |
| Average APR | 10% – 28% | 0% – 10% |
| Loan / transfer duration | 12 – 60 months | 3 – 6 years |
| Additional fees | 0% – 10% loan origination fees | Varies by state and dealer |
| Types of credit accepted | Poor, Fair, Good, Excellent | Bad, Poor, Fair, Good, Excellent |
| Best for | Debt consolidation | Financing a new or used car |
| Type of debt | Fixed installment | Fixed – simple or pre-computed interest |
Cars are a notoriously bad investment. New cars lose approximately 10% of their value the moment you drive them off the lot. So finding a favorable auto loan is important, to say the least.
When it comes to auto financing, you’re likely to be presented with an auto loan through your dealer. Dealers are well aware of how fast cars depreciate, so they’re willing to offer a lower APR to potential customers with better credit. But if your credit’s on the lower side, you’re likely to see higher interest rates.
In addition, auto loans come with two different types of interest — simple, and pre-computed interest. Simple interest acts like fixed interest meaning your monthly interest will remain fixed for the duration of the loan. Pre-computed interest is more variable, offering less interest on higher payments but increasing the percentage as the principal goes down.
If your credit score is on the higher side, and you’re able to afford a down payment of at least 20% of the car’s total, one of the best auto loans may offer more favorable terms. Otherwise, personal loans offer better financing, and can even be used as a negotiating tactic.
Personal loan vs. small business loan
| Criteria | Personal Loan | Small Business Loan (Standard 7a) |
| Average APR | 10% – 28% | 6.5% – 9% (Varies per loan) |
| Loan / transfer duration | 12 – 60 months | 7 – 25 years depending on industry |
| Additional fees | 0% – 10% loan origination fees | 0% – 3.5% (varies by size of loan) |
| Types of credit accepted | Fair, Good, Excellent | Fair, Good, Excellent |
| Best for | Credit card debt | Growing or starting a business |
| Type of debt | Fixed installment | Fixed or variable |
Note: There’s such a large variety of small business loans, that we don’t have the space to cover them here. We’ve chosen to focus on a Standard 7a loan for $20,000.
If you need financing in order to grow or start a business, then you’ve entered the world of small business loans. The best small business loans are unique from other types of loans, in the sense that they can offer both revolving and fixed capital.
In addition, small business loans are guaranteed by the U.S. Small Business Association (SBA). So if your business defaults, the SBA will cover a certain percentage of the remaining loan.
Business loan durations can vary from repayment within seven years, as in a Standard 7a small business loan, or more than seven years, as in a Standard 7b.
Proceeds can only be used to help finance your business and cannot be used to reimburse owners for any money they’ve already put in. Nor can they be used to refinance existing debt.
If you’re confident in your business and you need a considerable amount of capital, along with backing from and access to business experts, a small business loan will be the most helpful. For everything else, consider a personal loan.
Which personal loan lender is best for me?
When you’re shopping for a personal loan, you want to get the most favorable terms. Banks, credit unions, and online lenders all offer personal loans at competitive rates, but each gives borrowers a different experience.
Your decision should be based on your current financial status, the reason for your loan, and the financial institution you feel you’ll work the best with.
You can start by taking our quiz here:
What type of lender works best for me?
Using a bank
Pros:
- Variety of loan options
- Multiple brick-and-mortar locations
- Lower rates for good standing
Cons:
- Higher interest rates
- Difficult for poorer credit
- Few unsecured loan options
Large financial institutions such as banks are still the most traditional way to get a private loan. And even though their reputation took a hit after the Great Recession, they’re still some of the most popular lenders in the nation.
Banks work best for anyone with fair to excellent credit, and they’re ideal for borrowers that already have an existing relationship with a financial institution. For example, if you’ve been banking with Wells Fargo for five years, you’re likely to find more favorable terms there than anywhere else.
Banks also have a variety of loan options — meaning that if you feel you’d rather pursue an auto or home equity loan instead of a personal loan, you’ll be able to deal with the same organization and still retain those favorable terms.
But banks are for-profit institutions run by shareholders, that do emphasize making money. As a result, interest rates are higher, and they want to be sure that all their borrowers are in good financial standing.
If you’re looking to use a personal loan to consolidate your debt, you may be better off with a credit union or online lender.
Using a credit union
Pros:
- Lower interest rates
- Member-owned institutions
- Easier approval
Cons:
- Fewer services
- Membership criteria
- Fewer loan options
If you’re looking to compare banks and credit unions, you’ll find a lot of similarities and a few key differences:
While banks are for-profit owned by investors, credit unions are non-profits owned and operated by members. And while banks are open to everyone, credit unions are limited to members that meet certain criteria (known as the “field of membership”).
Beyond that, banks and credit unions offer a lot of the same financial services: You’ll be able to take out personal loans, auto loans, home equity loans, etc. However, since credit unions are smaller institutions, they don’t offer as wide a variety of loans as banks do.
They do, however, offer lower rates and easier approval for those with poor to average credit. That makes credit unions one of the best options for anyone looking to rebuild their finances via debt consolidation. Just be sure to check the field of membership criteria first.
Using an online lender
Pros:
- Easy approval
- Unsecured loans
- Convenient
Cons:
- Can be predatory
- Higher APR
- High payday loan presence
Online lenders (sometimes known as peer-to-peer or “P2P” lenders) are at the cutting edge of financial tech. The best online personal loan lenders pair banks and other financial institutions that are looking to fund specific types of loans with borrowers looking to take out the same type of loan.
As a result, online lenders are the most customizable lenders in the marketplace. They also have the largest approval rate. If your credit score is on the lower side, you’re more likely to find a personal loan with an online lender than a bank. However, that’s a double-edged sword.
Online lenders are for-profits that make money off of their loans. As a result, the APR tends to be higher with many online lenders than it would be with a bank or credit union. In addition, there’s a number of illegitimate or predatory online lenders that are likely to sell your personal information.
Payday lenders also have a strong presence in the online lending space, so be wary of any lender that offers loans with no credit checks, short terms, and high fees.
The bottom line
Personal loans can be one of the most versatile financial services out there: You can use one to rebuild credit or finance a big purchase. But you need to be sure that a personal loan is your best option, and that you’re choosing the best lender. Once you’re sure about both, you’re all set!
The post What are Personal Loans? appeared first on The Simple Dollar.
Source The Simple Dollar http://ift.tt/2CFwqrd
21 States Across the U.S. Will Be Raising the Minimum Wage in 2018
A new year means new resolutions — and for people in 21 states and the District of Columbia, it could mean more money.
In the coming year, states, cities and counties across the U.S. will raise their minimum wage due to either new rulings or automatic cost-of-living increases. Some of these places will participate in multi-year phase-ins of relatively large minimum wage hikes.
As the debates over minimum wage continue, however, we’ll probably be seeing even more raises that are not related to the cost of living in the future.
States That Will Raise the Minimum Wage in 2018
These states will see a rise in the minimum wage effective January 1, 2018:
Alaska: $9.84 (+4 cents)
Arizona: $10.50 (+50 cents)
California (large companies with more than 25 employees): $11 (+50 cents)
California (small companies with 25 or fewer employees): $10.50 (+50 cents)
Colorado: $10.20 (+90 cents)
Florida: $8.25 (+15 cents)
Hawaii: $10.10 (+85 cents)
Maine: $10.00 (+$1.00)
Michigan: $9.25 (+35 cents)
Minnesota (large companies with more than $500,000 in annual sales): $9.65 (+15 cents)
Minnesota (small companies with less than $500,000 in annual sales): $7.87 (+12 cents)
Missouri: $7.85 (+15 cents)
Montana: $8.30 (+15 cents)
New Jersey: $8.60 (+16 cents)
New York: Varies greatly by area and sector
Ohio: $8.30 (+15 cents)
Rhode Island: $10.10 (+50 cents)
South Dakota: $8.85 (+20 cents)
Vermont: $10.50 (+50 cents)
Washington: $11.50 (+50 cents)
The following states will raise the minimum wage on July 1, 2018:
District of Columbia: $13.25 (+75 cents)
Maryland: $10.10 (+85 cents)
Nevada: TBD (current wage: $8.15)
Oregon (standard): $10.75 (+50 cents)
Oregon (urban): $12.00 (+75 cents)
Oregon (non-urban): $10.50 (+50 cents)
Additionally, many cities and counties, both within the states listed above and not, will raise their minimum wage individually on either Jan. 1 or July 1, 2018.
In those places, the minimum wage is generally higher than either the state or federal minimum wage (which is currently set at $7.25).
Grace Schweizer is a junior writer at The Penny Hoarder.
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.
source The Penny Hoarder http://ift.tt/2CGTLcj
I Followed This Gift-Giving Theme to Save on Christmas for My Four Kids
Those of us who have planned princess-worthy tea parties for a daughter’s first birthday understand the value of a theme. But I might be one of the few who believe a theme can save my Christmas this year. Because four kids. Because unemployment. Because Santa gets too much credit. Because something’s gotta give.
The holidays are supposed to feel magical, yet moms of many kids, like myself, are burdened with “giving” guilt. Will they cry because I bought Anna instead of Elsa? Did I get them enough? Will I permanently ruin Christmas if I sneak a piece of coal into their stockings?
The list goes on. But this is the year I decided it doesn’t have to.
Recently, after I was laid off from my job, I came to terms with the fact that less money was coming into my bank account than coming out. So naturally, I turned to Facebook — the place where us millennial moms go for answers. Surely one of the many local mom groups I joined four years ago would have some ideas for me.
“Dear moms on Facebook, how can I buy my children everything if I’m lacking all the monies?”
The answers varied. Donate toys here. Join my workout class. Sell this lipstick and cosmetics line.
But then… somewhere in all of it, the comments got me thinking about what children really want.
What would bring them magic? Kids want tradition. Personalization. That toy you wouldn’t buy at Target last week. More time together. And lucky for me, these things don’t cost an entire invisible paycheck.
Luckily social media came to the rescue and my mom group let me in on a little gift-giving idea to narrow my focus to something more specific. This year’s theme, a variation on the four-gift rule, gave me a narrower gift gifting focus that has saved me, believe it or not, hundreds of monies. Here’s what I’ve learned about it so far:
Something They Want
This is where you can show them you heard them (see, magic!) and put some thought into it. Go ahead and get the gift they circled in that catalog or saw on a TV commercial, but set your budget for this present right as soon as possible — it can get fancy. It will be your shiny object with a bow on top, so make it count and make it work for you.
Did I mention I have four kids? Coupons really help get this one under control. Here’s what I scored on that big shopping day that shall not be named:
Keegan, 11 years old: Smart watch
Landon, 7 years old: New bike
Kinley, 4 years old: Shopkins mall court
Rylan, 2 years old: Baby Alive doll
Something They Need
I have to admit I pushed this category a little to the edge. I found that I could be creative and get something that we both can agree they need. This is a no-brainer if your kids play sports and their gear is getting a little worn.
Maybe your boys are shoe fanatics like mine and would really appreciate a new pair. Or, maybe your daughter loves playing dress up but might actually need a jewelry music box (Swan Lake anyone?) to store some of that bling. See, there’s more to this category than just socks and underwear.
Something to Wear
But really though — socks and underwear. Do it. Or go for something a little more exciting: headphones, dress up shoes, hats or headbands.
Joggers are apparently back in style so that was a big request from my boys. If you were under your budget on your shiny gift, maybe you could package up an entire outfit. The hardest part for me was making this category meaningful, when I badly wanted to buy my girls adorable dresses from my favorite children’s store.
But, I stopped shopping for me this year and got a fuzzy sweater with a subtle, glittery Minnie Mouse outline instead.
Something to Read
Books, magazines, readers oh my! This one is quite easy if you save it for last and see what’s left in your budget. It can be as simple as a paperback, or as grand as an e-reader.
For my oldest, I picked the junior novel version of the film “Coco.” He hasn’t seen it yet, so I put a note at the end of the book indicating that he gets a free pass to see that movie once he finishes the book.
I expect a full book report on the similarities and differences of each after! Kidding, but kinda not.
And Then There’s Santa
We didn’t forget about him! I went with one gift for each kid from Santa that I knew they would love and a fun collection of small items for their stockings.
The best part is, I didn’t have to go over the top with this. In previous years our gifting strategy was reversed. Most of the presents under the tree were from Santa and one or two were from mom and dad. This way, the kids know how hard we worked to get them the gifts they wanted making the meaning of giving goes a little further.
I don’t claim to be an expert on parenting (can any of us really say that?), but I do know that Christmas can get out of control in my family. There’s also some research that suggests a child in a room with six toys plays much less with each toy than a child in a room with two. And don’t we want to encourage our littles ones to play longer?
Have I cured that “giving guilt” yet?
Meghan McAtasney is a freelance writer, megamom of four, and savvy solutionist. She once took the wrong ferry in San Francisco and learned how far her pennies could really take her.
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.
source The Penny Hoarder http://ift.tt/2D6fewd
Will Grad School Actually Pay Off? Use This Calculator to Find Out
Graduate school can be a great way to improve your hiring prospects, add new skills to your toolbox and generally beef up your resume.
Oh, and you get to spend a few extra years at the old university watering hole.
It seems like a solid move, especially considering those with a graduate degree made about $16,700 more than folks with a bachelor’s degree in 2016, according to data from the U.S. Census Bureau. And over the last decade, there were 2.5% more applications for graduate schools each year, says a report by the Council of Graduate Schools.
Whoa, pump the brakes. Don’t quit your job and start sending off college applications just yet.
When you look at the cost of grad school, along with the lost wages you could be collecting with a full-time job, it could take decades for you to pay off that shiny new diploma.
Luckily for you, Quartz has a new tool to help you figure out if it’s worth the price tag.
This Calculator Will Help You Decide if Grad School Is Worth It
You shouldn’t just think about income when you consider higher education. Net worth will tell you whether the investment in the degree actually paid off.
This calculator from Quartz will collect some financial information and then spit out how long it will take you to see an actual financial return from that new degree.
You’ll need the cost of the college you’re eyeing for a graduate degree, which makes it a great resource for comparing universities if you’ve already made up your mind about going to grad school.
So there you have it. Instead of barreling into a decision that could saddle you with a lifetime of debt, check out the long-term implications before you make your call.
Alex Mahadevan is a data journalist at The Penny Hoarder.
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.
source The Penny Hoarder http://ift.tt/2BhIbIk
If Your Name is Sydney, You Could Win a Free Trip to Australia! Here’s How
If your name is “Sydney,” then boy, oh boy do we have some exciting news for you!
If your name is literally anything else, well, you’re out of luck.
Why? Because to celebrate the upcoming launch of non-stop flights from Houston, Texas, to Sydney, Australia, United is giving free trips on the new route to five people named Sydney.
Yeah, really.
How to Win a Free Flight to Sydney for You and a Friend
Here’s the deal: United is looking for five people with the first or last (legal) name Sydney to send to Australia when the non-stop route starts up on January 18, 2018.
The five winning Sydneys will each receive two free economy-class round-trip tickets for January 18-25. The lucky few will stay at the Westin Sydney and will receive a $500 gift card for spending money. They will also tour the famous Sydney Opera House, go on a Sydney Harbour sightseeing cruise and adventure out on a day trip to the breathtaking Blue Mountains.
(In case you’re wondering, five lucky Houstons from down under will win a similar trip to Texas on the return flights.)
The contest is open to U.S. residents — minus those of us living in Florida and New York — who are at least 18 years old. (And named Sydney, of course.)
If you’re a Sidnee or a Sidney or a Cydney or even a Cidneigh, though, don’t freak out: Your spelling (along with several others) is acceptable per the official contest rules, and you’re just as eligible as the traditionally named Sydneys of the world.
Those who share the Harbour City’s moniker can enter here by filling out a short form. The contest closes on Dec. 27, and the five winners will be selected on Dec. 28.
In the meantime, I guess it wouldn’t hurt to thank your parents for having the foresight to name you after such a cool destination.
Grace Schweizer is a junior writer at The Penny Hoarder.
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.
source The Penny Hoarder http://ift.tt/2BKvbtX
You Can Haz Internship: This Animal Talent Agency is Looking For Interns
Grumpy Cat. Doug the Pug. Lil Bub. Tuna.
You know who I’m talking about, since these pets are some of the most popular animal influencers on the Internet. Yes, that’s a thing, and there are millions of dollars in product endorsement, merchandise and licensing agreements that go along with their furry fame.
But not every animal can hack it as an influencer.
Take my dog Josie for example. She may have an adorable underbite, but the most Instagram likes I’ve managed to scrounge up with a photo of her barely racked up 20.
Doug the Pug’s Christmas portraits, however, have regularly cracked 100,000 likes.
Here’s your chance to get in with a company that manages more than 100 animal influencers: The Dog Agency is looking for an intern in the New York City area.
Of All the Animal Internships, This One is the Most Internet-y
First, we have to mention that this is an unpaid internship, but Dog Agency talent relations manager Calla Chuy said in an email that college credit will be awarded.
For this semester-long internship, you’ll be responsible for writing articles for the agency’s content website, PetInsider. You’ll also create content for the firm’s social media pages, help build its online audience and assist with marketing initiatives. The hours are flexible, and will depend on your class schedule.
To apply, fill out the form on this website, then email your cover letter and resume to Lisa@TheDogAgency.com.
Oh yeah, you must love pets.
Alex Mahadevan is a data journalist at The Penny Hoarder.
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.
source The Penny Hoarder http://ift.tt/2BJnUL4
College Application Fees Are Expensive — Here’s How to Score a Waiver
College is a major investment — an expensive one at that.
With all the talk about rising tuition and increasing student loan debt, one expense that typically flies under the radar occurs before you even get accepted: college application fees.
You can expect to spend about $42 a pop to submit a college application, according to the U.S. News and World Report.
College decision website Cappex lists nearly 50 schools where the application fees are $75 or more. Be prepared to fork over $85 if you want to attend Columbia University, $90 for Stanford University or $150 for Berklee College of Music — and that’s just to see if you’ll be accepted.
College application fees can be a financial barrier for some families. Luckily, there are ways to lower or eliminate them, as writer Kelly Anne Smith discussed in this post.
Getting an application fee waiver is an option for low-income families or students with a certain need. In order to get a fee waiver, students typically must meet one of the following criteria:
- The student is enrolled in or eligible to participate in a federal free or reduced-price lunch program at school.
- The family’s income level is at or below USDA levels for free or reduced-price lunch.
- The student is enrolled in a program for economically disadvantaged students (such as Upward Bound or GEAR UP).
- The family receives income-based public assistance or lives in federally subsidized public housing.
- The student resides in a foster home, is a ward of the state, is an orphan or is homeless.
Even if you don’t fall into one of the situations above, it doesn’t hurt to check with the school or write a letter to the admissions department to see if there are any other instances in which it will waive application fees. Perhaps your family has a unique circumstance, such as great deal of financial hardship due to medical expenses for an ill family member.
For those who do fall into one of the criteria listed above, here are some common routes to scoring an application fee waiver.
1. The National Association for College Admission Counseling
The National Association for College Admission Counseling (NACAC) provides students in need with fee waivers for college applications.
Eligible students can fill out this waiver form to send to the schools of their choice, though NACAC recommends students use the form no more than four times.
2. College Board
If you qualified to have fees waived for taking the SAT, you may be able to get your college application fees waived as well.
The College Board, which administers the SAT, states on its site that students can apply to four participating schools for free if they took the SAT or SAT subject tests using a test fee waiver.
The College Board sends college application fee waivers to eligible students upon receiving their SAT scores (or if they’re a junior, in the fall of their senior year).
3. The ACT
If you took the ACT for free, you can request to have college application fees waived using this form. According to the eligibility requirements for the 2017-18 school year, there is no cap on how many schools students can apply to using the waiver form.
4. The Common Application
If you are applying to multiple schools using the Common Application, you can request application fee waivers through this process.
When completing your profile for the Common Application, request a waiver in the Common Application Fee Waiver section.
5. The Coalition Application
Similar to the process for the Common Application, students who apply to schools that are members of the Coalition for Access, Affordability and Success may be eligible for fee waivers.
Students will need to answer related questions when filling out their Coalition profile. If they qualify, they’ll bypass the payment page when submitting their application to participating schools that accept the Coalition waivers.
Nicole Dow is a staff writer at The Penny Hoarder.
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.
source The Penny Hoarder http://ift.tt/2kL6xPH
Get started with low-risk investing
If you don’t want to see your investments fall in value, then choose a strategy that doesn’t invite risk. We explain where to start.
Investment markets have more than doubled over the past eight years. It’s tempting to think stock prices will carry on rising, but no one knows whether this ‘bull run’ will continue.
Regardless of what the pundits might say, if you can’t afford to see your investments go down or are the sort of person who can’t bear the thought of that happening, low-risk investing is right for you.
A cautious investment fund or portfolio of assets won’t shoot the lights out, but nor will it crash and burn if markets take a turn for the worse. Conversely, a higher-risk portfolio will probably deliver higher returns, but this outperformance is not guaranteed. If markets turn sour, then your pot will be hit hard. Professionals call this effect the risk/reward ratio.
Which level of risk is right for you?
You need to understand both your personal attitude to risk and the amount of risk you can afford to take.
The less spare cash you have, the less risk you can afford to take. For example, if you are retired and your only resource, aside from your state pension, is a fixed amount of savings, then your priority must be to secure sufficient income to guarantee you can meet your essential outgoings. If you already have enough income to meet your essential outgoings – for example, from your earnings, a final salary pension or buy-to-let property – you can afford to take more risk with other assets.
Your personal attitude to risk is determined by hard-wired psychological traits that make up your personality. Ask yourself how important is trying to achieve high returns and what emotional response would you have to a 30% drop in the value of your investments?
Lower-risk investments
Cash on deposit is secure and easily accessible. However, with inflation running at 3% and average interest rates running below that, your money may be safe, but it is likely to be losing value in real terms. Deposits are government backed up to £85,000 per institution, so if you have more than that, spread your cash between different institutions.
Annuities are a secure way to deliver a guaranteed income in retirement, insuring you against outliving your fund by paying out for as long as you live. They can also hedge you against inflation increases. A healthy 65-year-old would pay £100,000 for an index-linked annuity paying £3,100 a year.
Peer-to-peer (P2P) platforms allow investors to lend money directly to individuals and businesses at higher rates of return than cash on deposit. In return, they receive an attractive yield – provided the borrower does not default. They have delivered (mostly) without problems for several years, but if things go wrong, your cash is not guaranteed.
Investing directly into the stock market is one way that low-risk investors can beat cash deposit rates, but this is not guaranteed. Most financial advisers offer risk-graded portfolios for investors of different risk profiles.
Structuring risk on a scale of one to 11
My own firm, Addidi Wealth, structures portfolios on a scale of one to 11. The portfolio that is risk grade 1 is ultra-cautious, comprising of cash on deposit, gilts (government bonds) and high-grade corporate bonds (loans to companies). It doesn’t contain high-risk assets, such as company shares (also called equities), commercial property, and derivatives (contracts to buy or sell underlying assets – they include options, swaps and futures contracts).
As the portfolios move up the dial from one to 11, the exposure to high-risk assets is increased by 10%. Portfolio risk grade 11 comprises entirely of high-risk assets.
We analysed the performance of portfolios with different risk levels in the 27 years between 1989 and 2016. We looked at rolling time period returns – the annualised average return for a period ending with a particular month. Rolling returns are useful for examining the behaviour of returns for holding periods similar to those actually experienced by investors.
The research highlights three key issues for investors:
- The more risk you take, the more likely you are, on average, to achieve a higher return.
- The more risk you take, the greater the chance of you either overshooting or falling short of that potentially higher return by a big margin. Conversely, the more cautious you are, the closer your actual return is likely to be to the predicted target return.
- The length of time over which the investment is held is very important. For all portfolios, the difference between the best and the worst outcomes shrank over time. The key message here is that the longer your investment horizon, the more risk you can afford to take, even if you are a cautious investor. Over 20 years, the worst-case scenario average annual return for the 100% risk assets portfolio is, at 4.2%, higher than the 3.8% average annual return for the zero risk assets portfolio. So a cautious investor would probably be at ease with a 20% risk assets for a 10- year investment horizon, but could stomach 50% risk assets for a 20- to 30-year investment horizon, such as saving for a pension.
CASE STUDY 1: When a cautious approach pays off
Peter, Paul and Mary are all 55 and each have £100,000 they want to invest for 10 years to spend on enjoying their retirement. Their final salary pensions will cover their basic income requirements.
Peter has invested in the stock market before and is comfortable with risk. He opts for an aggressive 100% risk-based portfolio.
Paul hasn’t really thought about his attitude to risk, but is impressed with Peter’s track record of making big money from investments, so copies his 100% risk-based portfolio.
Mary has conducted an online risk assessment, and has concluded she is a low-risk investor. She opts for a 20% risk, 80% non-risk portfolio.
Unluckily, for all three, markets nose-dive just after they invest. Three years later, as the bear market persists, Peter and Paul’s £100,000 pot has shrunk to £64,005.
Peter holds his nerve and remains invested because he is confident that his fund will rebound within the 10-year period. But Paul finds he can’t take the prospect of further falls and withdraws his cash and puts it on deposit at the bank. Mary’s more cautious pot has fallen to £95,771, but she feels confident riding out the storm.
Markets recover slowly, but unluckily for all three, this 10-year period is the worst on record.
At the end of the 10 years Peter’s pot has grown – but only to £101,083. Paul has subsequently earned just 1% a year at a building society, making his fund worth £65,944. Mary’s fund was back in the black within five years and at the end of the 10-year term had risen to £120,828. On average over all the years in the stock market, Peter’s strategy would have beaten Mary’s but, on this occasion, it did not.
CASE STUDY 2: Picking a safe withdrawal rate for retirement
Jane is 62 and plans to retire from work at 65. She owns her own home and is on course to receive an annual state pension of £5,000 and a final salary pension income of £2,000 a year. She also has £100,000 in a defined contribution pension pot, after having taken her tax-free cash to clear some debts, and a further £120,000 in a stocks and shares Isa. She is no longer contributing into either pot.
She thinks that £12,000 a year will be just enough to live the lifestyle she wants to live, with £15,000 a year for her to feel comfortable. She describes herself as very risk-averse. By converting her £100,000 pot into an annuity, Jane can secure herself a guaranteed income for life of £3,100 a year, index-linked.
Her £5,000 a year pension – £100 a week – is well short of the £159.55 a week full state pension, but she buys 10 years’ extra benefit at the rate of £741 for each extra ‘year’ of NI contributions, worth £230 a year. By using £7,410 from her Isa, she boosts her state pension by £2,300 a year.
She now has secured, inflation-protected income of £10,400, just £1,600 short of her £12,000 comfort target.
She needs the remaining £112,590 in her Stocks and Shares Isa to deliver at least £1,600, and ideally £4,600 a year for her to be comfortable.
Deciding on a safe withdrawal rate for a retirement pot is not easy. If markets fall in the early years, big withdrawals will erode the pot further, giving it less scope to recover when markets come back. She opts for a cautious 20% risk asset portfolio and holds two years’ income in cash as a buffer to enable her to see out troughs in the market.
A 4% withdrawal rate would give her £4,500 a year, just short of her target, but Jane decides to only takes this level of income in good years, and trim her withdrawals to half that figure in years when markets fall by 20%. This considerably increases her chance of making her pot last.
TOP TIP
A good way to assess your attitude to risk is through an online risk profiler. I recommend the one from Standard Life at http://ift.tt/2klZQUJ. It has been developed by Oxford Risk, an independent team of leading psychology academics originating from Oxford University.
Anna Sofat is managing director of Addidi Wealth, the financial services planning company specialising in female finance.
Section
Free Tag
Related stories
Source Moneywise http://ift.tt/2kNHzzd
Some Reflections on “My Year of No Shopping”
This past Sunday, a wonderful essay by Ann Patchett appeared in the New York Times, entitled “My Year of No Shopping.” In it, Patchett describes how she spent most of 2017 without shopping for anything besides essentials. Well, mostly – she made an exception for books, as she’s a writer and reading books is part of her career path, and she excepted a few other things that seemed heavily tied to her career.
Mostly, however, she gave up buying anything she didn’t need. She gave up buying clothing. She gave up buying electronics. She gave up buying lots of little personal care nonessentials, such as new lip balm.
While I haven’t given up shopping for a full year as Patchett did, I have done so for some extended periods in the past – months, in fact – and I found that many of my own conclusions from the experience matched her own. So I thought I’d interlace some of Patchett’s insights with some of the things I’ve learned from my own “no shopping” experiences.
Although I quoted a lot of bits from Patchett’s essay, I really encourage you to read the whole thing, as it’s really a beautiful little piece of writing.
I couldn’t settle down to read or write, and in my anxiety I found myself mindlessly scrolling through two particular shopping websites, numbing my fears with pictures of shoes, clothes, purses and jewelry. I was trying to distract myself, but the distraction left me feeling worse, the way a late night in a bar smoking Winstons and drinking gin leaves you feeling worse. The unspoken question of shopping is “What do I need?” What I needed was less.
The feeling of browsing e-commerce sites when I am bored or anxious is incredibly familiar. For me, the big things that I look at are books and board games, with occasional sojourns into home brewing supplies (though I at least recognize that I have everything that I need in that department… for the most part).
Browsing shopping sites becomes something of a reflexive reaction to not having the right word when I’m writing, or to a bit of anxiety, or to a fleeting thought.
Similarly, while e-commerce browsing helped numb that immediate impulse, I usually ended up feeling worse afterwards. “What did I just waste the last fifteen minutes doing?” “Did I really buy that? Can I cancel that order… no?”
I’ve learned a lot of little things that help with this. Blocking lots of websites helps break the reflexive habit. Keeping my phone turned off and put away in another room unless I actually need it helps, too. I also have found that general tactics that reduce anxiety and improve focus, like daily meditation and some exercise and journaling, help as well.
My first few months of no shopping were full of gleeful discoveries. I ran out of lip balm early on and before making a decision about whether lip balm constituted a need, I looked in my desk drawers and coat pockets. I found five lip balms. Once I started digging around under the bathroom sink I realized I could probably run this experiment for three more years before using up all the lotion, soap and dental floss. It turns out I hadn’t thrown away the hair products and face creams I’d bought over the years and didn’t like; I’d just tossed them all under the sink. I’m using them now, and they’re fine.
Those little moments of discovery while trying to be frugal can be amazing.
I recall that for a good month, I kept experimenting with how much toothpaste is the right amount to use. I used to just squirt a whole bunch of toothpaste onto my brush, a big streak like one will often see in toothpaste commercials. It turns out that such a huge amount is overkill. The right amount, it turns out, is basically a perfect little ball – a squeeze from the tube that’s about as long as it is wide. That’s just the perfect amount, as far as I can tell – you don’t have a bunch of extra toothpaste foam in your mouth, but you have enough to keep things clean.
I remember finding a whole bunch of bars of Lever 2000 bought at a sale at some point and stuck in the cupboard for what must have been months and months. I bought those bars before I got a better grip on my spending; finding those bars was like finding money because I realized I didn’t have to buy soap for several months.
I’ve found that “no shopping” periods really cultivate an appreciation of little things like this. They feel good, whereas beforehand they would have been almost completely forgotten moments.
In March I wished I had a Fitbit, the new one that looked like a bracelet and didn’t need to be connected to a smartphone. For four days I really wanted a Fitbit. And then — poof! — I didn’t want one. I remember my parents trying to teach me this lesson when I was a child: If you want something, wait awhile. Chances are the feeling will pass.
This is the old “thirty day rule” popping up, as it does again and again.
One really effective principle I’ve used is that if I’m about to make a non-essential purchase, I simply agree to wait thirty days and if I still want the item, I buy it then. To “take action” on the item, I write it down somewhere with the intent of reviewing it in a month or two.
Again and again, I find that desire fading away pretty directly, and I find that if I come across that jotting in a month or two, I wonder why on earth I wanted that item so badly.
Most of our desires are momentary rushes, things that fade away in just a few days. The “thirty day rule” is a great test to make sure that the desire is worthwhile. If it manages to last a month or two, it’s probably important enough to you that it’s worth taking action. In truth, very few desires will last that long.
The trick of no shopping isn’t just that you don’t buy things. You don’t shop. That means no trawling the sale section of the J. Crew website in idle moments. It means the catalogs go into the recycle bin unopened on the theory that if I don’t see it, I don’t want it. Halfway through the year I could go to a store with my mother and sister if they asked me. I could tell them if the dress they were trying on looked good without wishing I could try it on myself.
Not shopping saves an astonishing amount of time.
Not only is “no shopping” a money saver, it’s a time saver as well.
Consider the time one invests browsing shopping websites or going to stores that sell non-essentials or every time you go shopping without a specific need-based purpose in mind or the time you spend browsing a catalog. That’s time that you recover by simply saying no to shopping.
Sure, you might misuse that time, too, but it at least gives you the opportunity to do something worthwhile with it. If you shave 15 minutes out of a typical day, that’s 15 minutes of sleep or a load of laundry or a vacuuming session or reading a meaningful article. If you cut an hour out of your weekend… well, that can be anything!
Once I stopped looking for things to buy, I became tremendously grateful for the things I received.
This is something I’ve noticed during the holiday season. During years where I was far more adamant about not shopping, I found that I really appreciated every single gift that I received. During other years, when I was far more open with my spending, my appreciation of gifts was significantly diminished.
Why? When I felt I could spend freely, I knew that I could just go buy everything that I received and I probably would not have selected that exact item that I received. I was critical.
When I had actively chosen not to spend freely, the gift seemed genuinely like a gift. I appreciated it. I hadn’t spent time thinking and stewing over what I might buy because I wasn’t actively shopping, so the item itself seemed like a wonderful thing.
The simple choice of not shopping strongly encourages gratitude and positive feelings when people are kind to you.
The trickier part was living with the startling abundance that had become glaringly obvious when I stopped trying to get more. Once I could see what I already had, and what actually mattered, I was left with a feeling that was somewhere between sickened and humbled. When did I amass so many things, and did someone else need them?
When I look around my own home, I see abundance. In fact, when I reflect on my life, I see abundance at almost every step, except for perhaps a few points in my childhood and a very lean stretch during my college years.
I have tons of things. I have lots and lots of clothes. I have tons of board games and books and other hobby supplies, so much so that I rarely have time to actually enjoy them to the extent that I want to.
Buying something new means not only will I have just a sliver of time to devote to it, but it devours even more time from the other things I care about that I already can’t devote adequate time to. What good is it?
I look around at all of the things I own now and I wonder the same thing to myself. Wouldn’t some of this stuff be better off in the hands of someone else, someone who might have adequate time to use it? When you’re thinking that way, adding more to the pile seems silly.
If you stop thinking about what you might want, it’s a whole lot easier to see what other people don’t have. There’s a reason that just about every religion regards material belongings as an impediment to peace. This is why Siddhartha had to leave his palace to become the Buddha. This is why Jesus said, “Blessed are the poor.”
Focusing on what you don’t have makes it hard to see what other people don’t have. If you stop thinking about it and recognize that you do have enough – that, in fact, you have abundance – the fact that lots of other people are missing out on really important things in their lives that they don’t have access to.
It’s hard to see the world when all you see is you.
For the record, I still have more than plenty. I know there is a vast difference between not buying things and not being able to buy things. Not shopping for a year hardly makes me one with the poor, but it has put me on the path of figuring out what I can do to help.
There is a huge gap between choosing not to buy things and not being able to buy things. One is a personal choice that a person can renew (or not) at any moment. The other might be the outcome of a chain of personal choices, but it also typically involves a lot of bad luck and it isn’t something that can be undone on a whim.
This, to me, is the difference between frugality and poverty. Frugality is a choice. Poverty is not. Frugality is deciding to allocate your resources – time, money, energy – in a way that enables access to different opportunities. Poverty is spending as little as possible because you have to. They’re far from the same thing.
I understand that buying things is the backbone of the economy and job growth. I appreciate all the people who shop in the bookstore. But taking some time off from consumerism isn’t going to make the financial markets collapse.
One very common misconception that I hear is an overriding fear that if everyone became frugal the economy would collapse. What would happen if everyone stopped shopping for nonessentials?
The truth is that 78% of Americans live paycheck to paycheck, spending virtually everything they bring in. Even if this became a movement of some kind, it would not have enough disruptive impact on the economy to amount to much. Ideas that involve making a more challenging personal choice in the moment rarely become widespread.
Instead, one should think about choosing not to shop solely in a personal context. What can it do for you? Your choice won’t affect the broad economy.
If you’re looking for a New Year’s resolution, I have to tell you: This one’s great.
A year of no shopping does seem like a pretty good New Year’s resolution, does it not?
“I realized I had too many decisions to make that were actually important,” she said. “There were people to help, things to do. Not shopping frees up a lot of space in your brain.”
In the end, the key to a year of no shopping isn’t that you’re buying less stuff, but that you become more mindful of the multitude of things that you already have and the relatively tiny impact of adding more to it. Most of us live lives so abundantly full of opportunities and things that we’re almost drowning in them; it’s hard to appreciate all that we have, particularly when our mind bounces quickly along to the next thing that we want.
It is never, ever a bad time to consider checking out of that mindset for a while. Simply make a choice not to shop for anything nonessential. You can decide for yourself how long to do it, but a month is definitely a good start. A year is ambitious – you may want to think of some personal limitations to that.
Good luck!
The post Some Reflections on “My Year of No Shopping” appeared first on The Simple Dollar.
Source The Simple Dollar http://ift.tt/2oMkWQO
WIN £12,500 of prizes for schools with our 2018 Personal Finance Teacher of the Year Competition
At Moneywise, we believe it’s never too soon for young people to learn about their finances. By mastering money basics early on in life, they can grow up to be the most financially savvy generation yet.
In fact, it’s so important to us that children are taught well about money that we have teamed up with Foreign & Colonial Investment Trust to offer schools with the best personal finance teachers £12,500 to spend on equipment. Teachers at both primary and secondary level in UK schools are eligible for the competition.
This year, the prize money pot is much greater than it was for the same awards last year. So we will be making separate awards to teachers at primary and secondary school level, splitting the £12,500 between the winners and runners-up in several categories.
Are you a parent, pupil, school governor or teacher? Do you know someone who is teaching personal finance at school? Would you like to nominate someone for this award? We want to know how they make the teaching of personal finance fun, interactive and relevant.
To put forward your nominations, please email editor@moneywise.co.uk the name of the teacher(s) and the name and address of the school(s), plus your reasons for nominating them.
Personal finance teachers can also enter the awards directly. For an entry form, please email editor@moneywise.co.uk.
Moneywise will then contact teachers who have entered the competition, inviting them to submit their entry, including three favourite personal finance lessons.
The competition is open for nominations and entries until the end of March. Moneywise will then shortlist the best entries to be put to our judging panel, which includes Moira O’Neill, editor of Moneywise, Jeff Prestridge, the personal finance editor of the Mail on Sunday and columnist for Moneywise, plus experts at the Money Advice Service and our sponsor Foreign & Colonial Investment Trust.
The winners and runners-up will be announced at Moneywise’s flagship Customer Service Awards on 7 June 2018. The prize funds will be sent to the teachers’ schools by the end of the summer term.
Last year’s Personal Finance Teacher of the Year
Last year’s entries for the Moneywise Personal Finance Teacher of the Year award revealed a wide range of strategies and approaches to teaching money issues.
Some teachers used thought provoking questions to make the children question their beliefs about money. Others worked with the children to create financial values that are displayed around the school.
Some schools showed how they ran personal finance days or week-long projects, influenced by My Money Week, a source of free teaching resources and activities that runs every summer to bring money management to life in schools.
The competition winner, Claire Fovargue (pictured below with her 'bank workers'), gives up her own time to create and supervise a school bank and shop for the 500 children at Kirton Primary School in Boston, Lincolnshire, where she is assistant headteacher.
The school has its own currency – the Kirt, worth about 3p. All children can earn Kirts as rewards for full school attendance over a term, getting full marks in spelling or times tables tests (earning one Kirt) and representing the school at sport, music or other events. The store and bank are run by older children who are paid in Kirts after a rigorous application and interview process, plus training.
The shop sells merchandise at prices ranging from three Kirts to 100 Kirts. Every child, from ages five to 11, has their own ‘bank account’ and they can choose whether to bank their Kirts to save for expensive purchases (earning 10% interest each half term) or to spend them in the school store on bouncy balls, novelty rubbers, glitter pens, or more expensive items such as paddling pools and board games.
Through the innovative project, the children experience the responsibility of earning their own money and the reward of long-term saving for larger items over the immediate gratification of spending on smaller items.
Claire says: “They know what something is worth in Kirts because it is their world, but they wouldn’t know in pounds. A Kirt is worth 3p but if you’ve worked hard for it, it’s a lot of money.”
The big surprise is the project’s significant impact on standards. Serving a deprived community, Kirton Primary School has a higher-than-average proportion of students with special educational needs, English as an additional language, and those predicted to be low attainers. But the school is now in the top 2% of schools in England for progress in mathematics and writing, and the top 1% for the progress of disadvantaged children. Attendance continues to improve as well.
Claire says: “We developed the school bank originally to stretch and challenge the more able children. We didn’t expect it to be so successful and powerful.”
Why we need financial education in schools
In November 2016, research published by the Money Advice Service (MAS) found that just four in 10 young people aged seven to 17 are receiving financial education at school.
But the same research found that nine in 10 children who had received financial education lessons found them useful.
When young people don’t receive financial education, it can mean that they’re poorly prepared to manage their own money as they approach adulthood. The MAS research among children aged 16 to 17 found 32% didn’t have experience of putting money into a bank account, 39% didn’t have a current account and 59% couldn’t read a payslip.
A 2013 study by the MAS confirmed that adult money habits are set by the age of seven years old, underlining how crucial it is that financial education begins at a young age. Financial education is not yet on the primary curriculum.
Section
Free Tag
Related stories
Source Moneywise http://ift.tt/2yYN1nH
الاشتراك في:
الرسائل (Atom)