Early Settlement on Your Car Loan

Debt has become a way of life in the USA, and many other countries in the developed world. Of course, only a small number of people have the resources to buy real estate without taking out a mortgage or fund their children’s college education without a student loan.  Sometimes other forms of debt are not quite so justified; they can be a sign of a family living a lifestyle beyond its means. Car loans can perhaps be justified because they fund a fairly large purchase but whether living with almost a permanent car installment loans online makes sense is another question. Often people seem to change cars as soon as their last loan is fully paid off; it is not unusual for them to change cars even before the last loan is full paid. Is this you? Do you really need to change your car that frequently? It appears that it is just a minority that feels uncomfortable with debt and wants to pay everything off a quickly as possible.

Settle a Car Loan Early

If you do this you will save yourself interest, and it will do no harm to your credit score that is such an important factor in both your getting finance, and even if you are looking for a new job. Prospective employers sometimes refer to your credit score as part of the recruitment process because it is one sign of your reliability.

Your level is debt plays a part in your credit score. The ration between your debt and existing available credit is important. Your credit score will drop if you take on more debt, but if you pay on time, and settle early, those entries in your credit history will boost it.  If your credit score is borderline for borrowing, around 600, you cannot afford that initial drop as comfortably.

How Can You Do It?

Well, obviously, you have a fixed monthly repayment for the term of the car loan. If you arrange with your bank to pay more each month, you will finish the car loan earlier. You can accelerate that process for adding more each month as you progress through the term. For example. if your payment is $265 a month, why not pay $300? You will hardly notice the extra going out each month. You can do the calculations for yourself but you will be reducing your term by a few months if it is a five-year agreement.

Biweekly Payments

If you make 26 payments in a year, paying half the monthly figure due, rather than 12 which is based on the months in the calendar, you will effectively pay an extra payment annually. You need to discuss this with your lender to ensure there are no penalties involved in doing this.

You’re only required to make auto loan payments on a monthly basis, but if you strike a deal with your auto lender,

An Extra Payment

If the bi-weekly payments are difficult because of your cashflow then consider an extra month’s payment each year. You may get the chance to pay more if you receive a tax refund or a bonus at work. If your monthly payment is that $260 described above, calculate your annual payment, add a further $260. If you divide that total by 12, pay that as your monthly remittance.

Introductory Option

Some lenders may give you a month off. It might be Christmas when your spending may be higher. If you avoid taking the first month off, or a subsequent month like December, you will pay off your loan earlier. Remember, the lender is not giving you a free month.

Conclusion

It is a good feeling to pay off any loan early. You should really try to avoid living with a permanent car loan, taking out a new one as soon as the last one finishes. If you take out a loan and finish it six month’s early, even that is breathing space for you to use money in a different way. You will find yourself paying out less interest to your lender and with your credit score receiving a boost, you might even get a better interest rate next time round.

How to Buy Tax Liens

Tax liens are an excellent way to invest in property, if you know what you are doing. After tax liens are issued, the municipality that issues the return creates a tax lien certificate. A tax lien certificate is then auctioned off to the highest bidder. These auctions are generally one of the only ways how to buy tax liens, but it certainly isn’t the only way. It’s also possible to purchase a tax lien directly from a third-party. These third-parties purchase the lien themselves and then sell them on for a fixed price.

These tax lien auctions are held online through websites, and offline in physical settings. Investors bid down on the interest rate or bid up a premium they will pay for the lien. The investor who takes on the lowest interest rate or pays the highest premium is the one that ultimately gets the lien. Sometimes investors can get stuck in bidding wars. It’s important that you avoid them when you can. Bidding wars drive up the price of a lien, which reduces the potential return on investment. Remember the first rule of investing; buy low, sell high. There is also the potential risk of buying a property that needs repairs. Having to repair a property before you can sell it also reduces the potential return on investment. Not to mention the issue of having to deal with evicting the people currently living in the house, which could require the help for an attorney or a property manager.

Buying tax liens is a relatively simple process. Start out by going to the tax collector or county treasurer website of your county, or the county you wish to purchase a tax lien in. Or just do a quick Google search for buying tax liens in your area. Either way, you’ll end up at a website where you should be able to find a list of properties subject to sale.

From here, you can find all the properties that are tentatively up for auction. Choose a property that interests you and do due diligence on the property. Find out everything you can about the property from the website of the property appraiser. There should also be a lot of information about the property on the website that has the lien listing, including the tax information.

It’s also a good idea to contact the local zoning department. From them, you can find out if the property is indeed zoned for residential, agricultural, industrial, or commercial use; depending on which kind of property it is and what your plans for the property is. Every property your purchase at a tax lien auction is sold as-is. That’s why you need to put in all the hard work before the property goes up for auction. You need to ensure that the property is going to be worth your time and money, after all.

When you’ve settled on a property that you think is a good choice and will offer a good return on investment, it’s time to complete and mail your bidder registration form and Deed Information Sheet. These forms can be found on the website where you found the property. The county in question must have these forms on file if you want to get into the auction.

After securing your place in the auction, the only thing left to do is to attend the auction itself and make your bid. The winning bidder receives the deed from the county treasurer around four weeks after the auction is over, and then it’s up to you what you do with it. There are plenty of benefits and risks of buying tax liens, but hopefully you’ve learned a little more about how to buy tax liens with the help of this guide.

Year to Year: 5 Reasons Why More Millennials Are Choosing to Rent

A recent census study found that millennials (those born between 1982 and 2000) now outnumber all other age groups in the United States. At a staggering 83.1 million people, millennials now represent over a quarter of the U.S. population, and consequently have a significant portion of the nation’s buying power. When considering their impact on the housing market, it’s clear that the future of real estate is in their hands.

The most prominent trend emerging from millennial real estate activities is the consistent choice to rent rather than buy a home. This can be chalked up to an array of reasons, including their experience with the housing market, the desire for convenience and differential spending habits, as opposed to the preceding generations. Nonetheless, year over year millennial are choosing to rent properties rather than purchase, and understanding their characteristics and personalities will provide insight as to why they are doing so. Here are a few reasons:

Less of a Financial Commitment

A recent study found that the foremost priority for millennials in choosing their housing situation is affordability. Since the monthly cost of renting a home is often far less than that of monthly mortgage payments, millennials have opted to go with the more affordable option. Not to mention, a quick comparison of renters insurance with homeowners insurance also shows a much more affordable and attractive rate for millennials who are looking to save their money.

Freedom in Renting

In line with lower levels of financial commitment, millennials tend to lean towards renting due to the freedom it grants them. Millennial lifestyles have been characterized as being fast-moving and adaptable to change. They also have a desire to live in urbanized areas. When considering the long-term commitment that home buying entails, this generation is turned off by the idea of committing to a specific city or neighborhood for long periods of time.

Millennials are attracted to the freedom of renting a property, as it allows them to keep their options open to new experiences and lifestyles as they so choose.

Investing in Themselves, Not a Home

In previous generations, a major component of the American Dream entailed working hard to save money in order to buy in a house. Millennials are changing this whole perception, and creating their own versions of the American Dream. This generation is more focused on investing in themselves as opposed to real estate, as a means of enriching and fulfilling their own experiences. Rather than saving their money to invest in material items (i.e. a home), millennials have been more adamant about spending their hard-earned money on self-enriching things such as travel, education and personal development.

Minimizing Debt Levels

One key issue that is plaguing millennials’ financial situations is their overwhelming debt levels. Fresh out of college or graduate school, this generation has had a difficult time dealing with the debt accrued from student loans, which has impacted their capabilities as consumers. For many, buying a home means taking on even more amounts of debt, which is both daunting and unappealing. As a result, many millennials are turning towards rental properties as a means of keeping their debt levels as low as possible in the face of an unstable job market.

Convenience of Apartment Amenities

One of the more well-known characteristics of this generation is that they love convenience. Growing up in the technological boom, millennials have grown accustomed to an ease of access that was unparalleled in the previous generation.

Apartment complexes provide an array of amenities for millennials that are both appealing due to their convenience, but also in the costs they are able to offset. For example, a major selling point of apartment amenities are the fitness centers or swimming pools dedicated to residents. These features are both easily accessible for millennial renters, and offset the costs of having to purchase gym memberships outside of their complexes.

Why are millennials refusing to put a down payment on a house? They’re trying to save money! Renting is more affordable and offers millennials the chance to travel and wander at a moment’s notice. Really, who would want the added burden of a mortgage payment if you could travel cross-country instead? Millennials know what they’re doing.

How to make it to your next payday 

If you’re finding it tough to stretch your money to the end of the month then you’re not alone. A lot of people are living paycheque to paycheque these days and getting stuck in a cycle of only having just enough to get by. If this is you, here are some tips on how you can ensure that your money will last until payday.

Organise your expenses

If you’re uncertain about having enough money to last you until the end of the month you first need to find out how much money you need to get you to payday and how much of it is going where. This means making a list of all of your important bills that absolutely cannot go unpaid as well as any vital living expenses that you can’t go without, like gas and food money. Once you have an idea of how much you need you’ll find it a lot easier to put it together.

Get the bills out of the way

Skipping on bill payments is one of the worst things you could do when you’re in a tough financial situation. You could end up incurring fines and interest if you skip payments or you could damage your credit score. So, before you start making shopping lists, get your bills paid first or put aside enough money to pay them when the time comes. If you come up short you can look into safe short term loans to pay your bills but only if you’re confident that you can pay them back as soon as possible. Short term loans should only be used for serious emergencies, like urgent bills and emergency expenses that need paying, to avoid bigger bills or serious consequences later on. Once you’ve got the bills out of the way, you know exactly how much you’re living on for the rest of the month and can start planning out your budget.

Save

If you always feel like you’re teetering on the brink of bankruptcy, you need to start rethinking your priorities as well as how you’re spending your money. Little, everyday expenses often add up to unexpectedly significant amounts without us even realising it. If you’re not sure where your money is going, bring a notebook around with you for a week and write down everything you buy and how much it costs. You’ll quickly notice that little luxuries quickly add up and giving them up could improve your financial situation.  An extra $10 a month in your bank account might not seem like much, but that might be the exact amount you need to keep you going until your next payday.

Make money on the side

If you really are strapped for cash there are lots of ways you can make extra money on the side and get your paycheque on the day. Babysitting, housesitting, dog walking and tutoring are all jobs that you could easily pick up over the weekend. If you’re a creative, now might be the time for you to write that book you’ve been saving and sell it online, or sell those knitted blankets you made by hand. If you’re short on free time and can’t pick up an extra job, the internet is the answer for you. Get all of your old junk on Ebay and auction it off, or sign up with online survey websites where you can get rewards for filling out survey. It’s easy money with minimal effort. 

The Four Big Reasons Most Newbie Investors Totally Fail

“Yeah, I’ve thought about investing. It’s a tough gig, though. Too risky, too confusing, too expensive.”

Whether you’ve heard such a statement or find yourself echoing the exact same sentiment, you’re certainly not alone. There’s an often-cited statistic that 90% of investors never make a dime; however, the sources for such a stat are dubious.

Besides, in the digital era with so much information available, there’s perhaps no better time to succeed as an investor. The technology is easier than ever to manage and you can come by tips on investments at a moment’s notice.

That being said, if it is true that most investors fall flat, what’s the deal? What separates the success stories from those who end up losing it all?

The frequent failure of financial newbies is rooted in ffour rookie mistakes. Some of these snafus may seem glaringly obvious; however, newcomers to the field of finance still make them time and time again.

They Don’t Have a Mentor

When it comes to managing your money, flying blind simply is not an option. However, newbies often find themselves in the same snag: there’s so much investment advice out there but they have no idea who to listen to. Therefore they end up listening to their gut and losing out as a result.

Having a mentor who can show you the ropes is a crucial piece of financial success. For example, you may want to familiarize yourself with success stories from the Tim Sykes Challenge who’ve made fortunes from small investments via penny stocks.

While there are plenty of “gurus” out there to guide you, it certainly pays to have someone with tried-and-tested experience helping you understand what to do and what not to do.

They Try to Invest Too Much, Too Fast

If you expect to dump a boatload of cash into any given investment and see fat returns, you’ve got another thing coming.

In the world of investing, slow and steady often wins the race. For starters, don’t invest what you can’t afford to part with. Start with your disposable income and use anything you’ve gained through previous investments to reinvest versus dipping into your checking and savings accounts. Once you’ve gotten your feet wet and are seeing legitimate returns, only then can you think about spending big.

They Expect Speedy Results

Overnight results simply aren’t going to happen, plain and simple. It may take years before you actually see returns; however, your persistence is exactly what separates you from those who fail.

But persistence doesn’t mean dumping money into risky investments. Instead, combine the aforementioned steps (think: smart, proven investments with small capital) and build up from there. Don’t assume that just because you haven’t become a millionaire overnight that you’ve somehow failed.

They Don’t Actually Try

Finally, you won’t make a dime through investing until you actually try. That means less reading books and speculating and actually getting started. Likewise, trying also means putting effort into your portfolio and paying close attention to your investments versus expecting them to sit there and net you cash.

The barrier to entry to becoming a successful investor is arguably lower than ever. Rather than fall prey to the problems that plague newbies, take the necessary steps toward making smart, sensible investments.

……..

What You Should Know Before Starting a Property Rental Business

Starting your own rental business can be a rewarding venture if you know the right approach. The business of property rental is not for the faint hearted, it requires a lot of capital and efforts to make it work. That is why you need to protect your properties with the appropriate insurance policies from any potential loss. Nobody wants to lose money in their business that is why being successful in rental business, requires certain skills set apart from your desire to start.

The first thing you need to consider is the capital. Owning a property in the UK no matter the location requires you to have a worthy startup capital. No business survives without a startup capital. Before venturing into property rental, you need to have enough capital. This would cover your expenses in buying the property needed for the business, as well as all your insurance. For instance, you need to buy land, or an already built apartment. Even if you have one, you still need money to furnish it, or get an agent who will take care of the negotiation process.

Another important thing you need to know before you start up your rental business is protecting yourself from any potential loss by getting an insurance policy. No matter how big or small you want to go in your rental business, there is always the need for you to have insurance policy that will protect you from any loss or damages. You may argue that you already have a home insurance, and you are not licensed to have property insurance; that is why insurance companies offers insurance policies that are flexible and covers you from certain risks that an ordinary home insurance policy will not.

While seeking for a property insurance company, you should ask yourself questions like what do they cover? For instance, you’ll want your landlord insurance policy to cover important areas like; Property owners’ liability, buildings insurance to repair or rebuild your property; re-house your tenants in alternative accommodation cables and underground pipes among others, are covered.

Other important things you need to consider are; the location of the property as it plays a major role in how much you get or spend; getting a broker or an agent for your contract negotiation.

Applying For a Personal Loan

Once you have decided to apply for a personal loan, it’s natural to worry a little about its application procedure. But this shouldn’t bother you too much since applying for a loan is quite easy. You only need to produce the required documents to obtain a personal loan. Since these personal loans are unsecured loans, you need not even worry about any collaterals. You only have to apply for the loan and pay the estimated Equated Monthly Installments every month, and that’s it!

Before you apply online for a personal loan, some other things to keep in mind are:

  • Credit Score: You need to ensure that you clear all your pending dues before applying for the loan
  • Interest Rates: They can vary as per the amount of the applied personal loan, total salary of the applicant, and reputation of financial institution
  • Paperwork: This usually includes identity and address proofs, although additional requirements may vary from an institution to institution

However, the first thing to be aware of are Equated Monthly Installments or EMIs, in simpler terms. So, what are EMIs? An EMI is a fixed payment amount made by a borrower to a financial institution at a specified interval of time. EMIs are used to pay for both interest and principal amount over a specified number of years (or months), in order to repay the borrowed amount of funds.

It is actually that simple. Personal loans, with their easy repayment method, have given people the power to purchase what they want when they want it, for as long as they can pay off the loan. It proves to be quite advantageous, especially when it comes to purchasing a house, a car or other expensive items.

The freedom that comes with EMIs is one of the biggest benefits. The time tenure is chosen according to the convenience of the borrower and rules of the financial institution. Once the tenure has been chosen, however, it is then fixed and needs to be strictly adhered to. Failing to make regular payments for the same could lead to several problems occurring in future.

Understanding how EMIs work is essential and crucial because it affects the amount of personal loan you choose to opt for. One way of doing so is, using the EMI calculator, which will help you accurately calculate your EMI amount. This is definitely not as difficult as using a set of formulae to calculate the same. With the help of this calculator, you will know exactly how much you need to pay per month in a matter of a minute.

There are three steps to follow:

  1. Enter in your desired personal loan amount (For example, INR 70,000)
  2. Enter in the loan tenure (For example, 8 months)
  3. Enter in the interest rate (For example, 13%)

The EMI calculator will calculate your total payable amount, your monthly payment, and the total payable interest. You can be sure of the accuracy of its end-result. This easy-to-use personal loan EMI calculator ensures that you find out your EMI amount in a hassle-free manner and aids your decision in choosing the right loan plan.

Funding Your Dream Vacation

It’s a sad irony that we often can’t afford the trips we want when we’re young enough to want them. Like the middle-age crisis car, they’re financially out of reach until many years down the road.

The good news is that it doesn’t have to be that way. There are ways to get enough money–even in your young, cash-strapped position–to make the trip of your dreams before kids, jobs, and commitments tie you down until retirement.

The first step is to plan a realistic trip, and then get to work on the details of what you’ll do and how you’ll pay for it. Here’s a guide to get you started.

Economize Your Travel

You can find lots of ways to cut the cost of your trip before you even start saving up for it. That goes from the attractions you visit to the mode of travel you use and the places you stay.

When we shoot for the stars in our travel dreams, we often include the number of stars on the hotels we want. And yes, there are lots of wonderful amenities associated with high-end lodging. But you don’t necessarily have to spend 4-star money to enjoy your trip. Remember that Chicago is Chicago no matter where you spend the night. 

And if you do stay in a nice hotel, remember that procuring a great rate on the room doesn’t affect the quality of your stay. You are in the same hotel as the people who paid 30% more, so invest some time in digging around!

Start With The Little Things

Once you know how much you need, you just have to figure out how to get it. Obviously, this is the hard part. Your overhead can really stretch your funds when you’re young, so that’s a great place to start looking.

You can save a bundle with bundling. Putting your TV and internet together through the same provider will help you save on the overall cost. DIRECTV Internet bundles provide substantial savings over purchasing the services separately.

And don’t be afraid of coupons. While we often imagine these tools as a way to get 2-for-1 shampoo and other boring necessities, but they are available for countless other functions. Many restaurants provide coupons with significant savings just for joining their loyalty program or downloading their app. The same is true of clothing stores and even vehicle maintenance providers. Saving 10% here and 15% there can really add up, so do it!

Track your Progress

Once you know approximately what your trip is going to cost, you have your goal set. It’s just a matter of plowing money into the travel fund until you hit that level.

The problem many people encounter is temptation. They see that pickle jar or (preferably) lock box where the travel money is stashed, and it becomes a tempting target when a new outfit is on sale, or when a “once-in-a-lifetime” concert comes to town.

You need accountability when money is so freely accessible. You’ve seen those giant thermometers used by many charities to track their progress. Adapt that to your own trip, with a personal twist. If it’s Vegas you want to hit, draw a growing stack of poker chips on a poster. If it’s Rio, draw an outline of the “Christ The Redeemer” status and gradually color it in. You get the idea. When you’re faced with a physical reminder of the progress you’ve made, it’s easier to resist the urge to rob yourself!

When you’re still slugging through grad school or just getting started in your career, vacation can be the furthest thing from your mind. But like any goal, it will never be reached if you never start taking steps. Once you begin to plan what to do and how to fund it, your dream vacation can turn out to be much closer than you think.

Earning Money with Real Estate

It doesn’t matter if you are curious about real estate and its investment potential, or if you are just really tired of those infomercials that promise untold amounts of money in return for a newfangled way to invest in real estate. It really can be worth your while to see how money can be generated by using real estate.

Mortgages

Did you know that your average mortgage loan officer makes about 2% on each home mortgage that he closes? This is a rate that is mostly standard throughout the industry because of regulations set forth in 2011 by the Federal Reserve Board. That means that if you close a mortgage of $250,000, your earnings will be $5,000. This is an excellent way to make money in real estate while not having to invest in it personally. Also, mortgage loan officers have a schedule that is flexible and are doing something that matters by helping people realize their dream of owning a home.

Rentals

Another good way to make money through real estate is by having rental properties. You might invest in single family homes, duplex, triplexes, or quads, small apartments, or even office or warehouse space. Any of these options will give you easy purchase and financing options while serving as solid investments and can even serve as spaces for your personal use if necessary. 

Tax Benefits

One of the ways that real estate can be a great way to make money is through tax benefits. Depending on which country you live in, many times you will be able to deduct the interest of the mortgage from your income from rental and this creates a profit for you that is tax-free. Another way to get a tax benefit from rental property is by deducting the cost of improvements to the rental property from the income from the rental. You get the deduction as well as the extra value the improvements added to the property.

Wholesale Real Estate

Most of the time, when people hear about real estate investing, they think about buying and renting property or flipping real estate. In reality, there are quite a few different strategies out there for investing in real estate. Some of them don’t even involve tracking down rental payments or making any sort of renovations to the property in question. They key to this is knowing exactly which strategy to use at which times. For people just starting out with real estate investing, real estate wholesaling might be a good option. There is almost no risk in this, too. You don’t need a real estate license and you don’t even need to use any money of your own to do this. Profits on sales like this might rarely go over $40,000 per sale, but you will be able to work on quite a few of them at once and often, these take less than a month to close.

Appreciation

The single most common source of profits in real estate is in appreciation. This is the increase in the value of a property. For different kinds of real estate, this is achieved in a variety of ways. However, it is important to know that this appreciation is only ever realized when the property is either refinanced or sold.

MICs and REITs

If you are unfamiliar with these anagrams, they stand for Mortgage Investment corporations and Real Estate Investment Trusts respectively. These are typically thought of as being fantastic ways to get income from real estate. While this can be true, it is only in the sense that the underlying security is the real estate itself. With REITs, a person who owns many commercial properties will sell shares to his investors. This is usually done in an effort to fund the purchasing of more property. Then, the rental from these properties is passed to the investors. The REIT is actually the landlord for any tenants, but the people who are the owners get the income after the expenses from the REIT and running the properties are taken out.

MICs invest in private mortgages as opposed to any sort of underlying property. They hold the whole mortgage and pass on any interest from the payments to their investors, as opposed to any interest streams that are independent of the mortgage. 

Any and all of these ways are excellent when it comes to generating income from real estate.

Cheap Ways to Relieve Stress in Your Life

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Unfortunately, stress is a frequent part of most people’s lives. Whether it is over our jobs, money, health or family, stress can occur and wreak havoc on our bodies. While massages are great for relieving stress, not everyone can afford that luxury. Here are a few cheap ways to shake that stress from your day.

Exercise

We know, we know. You’ve heard it before, but that’s because it’s true. Exercising for a mere 30 minutes every day can help alleviate anxiety. Plus, working out can boost your mood, making you a happier and healthier version of yourself.

Journal

You don’t have to be a writer to journal. Journaling offers an outlet for working through your stressors. Also, you don’t have to write specifically about what is causing your stress. Just write whatever thoughts comes to mind. After a few entries, you will start to notice a difference in your stress levels.

Cuddle Your Pet

That’s right! Your furball could help lower your stress levels, and there’s scientific evidence to prove it. So give your pet a little extra love today. If you don’t own a pet, visit a local shelter. Volunteer to help with the routine cleaning or management and you can visit with the animals when you’re done. Both of those actions can help relieve some of your stress.

Sleep Well

Sleeping isn’t enough to curb that stress. You need to sleep well, and that means turning off all of your electronics at least 30 minutes before bed and getting a full eight hours of undisturbed rest.

Breathe Deep

Breathing exercises have been around for a long time, and for good reason. Focusing on your breathing will help you not focus on the things causing stress. Try taking a deep breath in through the nose and slowly out through the mouth.

Nap Time

Head back to grade school with this tactic! Naps are some of the best ways to relieve stress, just don’t push it too far. A 20 minute nap is just enough to help you refreshed.

Create a Budget

Is money getting you down? Creating a budget can help you take control of your finances and the stress that follows them. Need help? CreditGUARD is a trusted nonprofit that works to help people find their way out of debt. Give one of their certified credit counselors a call today for more information on their nonprofit debt management, debt consolidation and credit counseling services.

We hope these tips help you become a little less stressed!