Category Auto Rental Guides

A Parent’s Guide to Setting a Successful Budget for a College Student

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The post A Parent’s Guide to Setting a Successful Budget for a College Student appeared first on Penny Pinchin' Mom.

 You are getting ready to send your child off to college. Before you start helping them pack their belongings, there is one thing you need to do.

You need to help them create a budget. You need to teach them how to manage their money so they can learn the tools they’ll use long after they graduate.

WHY DO COLLEGE STUDENTS NEED A BUDGET?

The truth is everyone needs a budget. It does not matter your age. If you are dealing with money, a budget is necessary.

  1. Allows you to control your money. Rather than your money telling you what it wants to do, you get to tell your money where it needs to go. You are always in control when you have a budget.
  2. It teaches financial skills. A budget helps ensure that expenses such as rent, tuition, food, insurance, transportation, and housing are paid – before spending money on the fun stuff. (It also helps to make sure you don’t spend more than you make.)
  3. Makes you aware of where your money goes. When you use a budget, you see how you spend. It is very simple to see if too much is going toward dining out when you should be building your savings.
  4. Helps you track your goals. You need to cover expenses but you should also work on building savings at the same time. Your budget allows you to not only see those goals but track them in real time.

DOESN’T A BUDGET MEAN YOU CAN’T HAVE FUN?

Not at all! If anything, your budget will allow you to have guilt-free fun.

For example, the budget may allow you to spend $50 a week dining out. That means you can go to dinner with friends once (possibly twice) a week and enjoy yourself. You won’t be left wondering how you are now going to make rent.

WHAT TYPE OF BUDGET SHOULD YOUR STUDENT USE?

There are various methods of budgeting such as the 50/30/20 and the zero-based budget. For most college students, the zero-based is the simplest and easiest to follow.

The reason is that you track everything. You give every penny a job. That means if you earn $1,500 for the month that you “spend” the entire $1,500.

You will first cover the needs (food, shelter, transportation) and then your wants. If there is money “leftover” after this is done, it can be added to your savings.

You can use other types but if you have never budgeted before, using this method is the simplest.

WHAT SHOULD A COLLEGE STUDENT INCLUDE IN A BUDGET?

The budget will vary for each person, as the income and expense will be different. However, these are the most common categories that need to be included in a budget:

  • Rent
  • Renter’s insurance
  • Car payment
  • Car insurance (also saving for annual renewal fees)
  • Food
  • Clothes
  • Utilities (phone, electricity, gas, water, etc.)
  • Tuition
  • Fees
  • Entertainment (movies, games, concerts)
  • Dining out
  • Emergency fund savings

Again, you may have items that are not included above or see some that you do not need.

However, the most important thing of all is that every penny is given a job. Account for everything you will spend each month so you never have too much month and not enough money.

HOW DO YOU KEEP TRACK OF YOUR BUDGET?

For most college students, apps or digital trackers are the best options.  But, before you rush and sign up, keep the following in mind.

  1. Cost. Many apps are free and they will work perfectly fine. Other apps have a monthly fee attached to them. If you plan to use one of them, make sure you include that as one of your regular expenses. However, do not let the cost alone be a single factor when it comes to clicking the sign-up button.
  2. Security. Your security trumps all else. You need to make sure the app uses encryption as well as two-factor authorization.

Some of the best apps include:

  • Mint
  • You Need a Budget (YNAB)
  • PocketGuard
  • Mvelopes

However, your student may also like the traditional paper and pencil method – and that is OK as well.

Find the right one that works best for your student. That is all that matters.

TEACHING THEM TO BUDGET

Knowing you need a budget and where to track it is just the beginning. You need to teach your child how to budget.

Start by looking at each category that they need on their budget. You may already know the cost for each category but if not, you may need to make phone calls or do research to know.

For example, you know the rent for the apartment is $850 a month but how much are the average utilities? Ask the manager for these costs so you can include them in the budget.

Next, decide how much they want to allow themselves to spend on food. Show them how much a meal costs for a single person at each restaurant you eat at so they can create an average.

You will then have them decide how much “fun money” they want to include as well. You can base this on them wanting to go to the movies two times a month, one concert a month, or attending three events.

Now you can see the expenses for your student. Add their income to the budget and deduct the expenses. They will see if they are operating in the black (money left over) or in the red (spending more than they make).

Show them how to adjust the numbers by increasing their savings or lowering the amount they can spend on clothes – until the budget equals zero. Zero meaning they are spending every penny they earn.

And making them keep track now will help ensure they stay on track well into the future.

 

 

 

The post A Parent’s Guide to Setting a Successful Budget for a College Student appeared first on Penny Pinchin' Mom.

Source: pennypinchinmom.com

Prenup vs Postnup: What is the Difference?

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couple on couch with laptop

They’re certainly not as romantic to discuss as your dream house or your honeymoon, but prenups and postnups can be a financial lifesaver in the event your marriage does come to an end.

Both prenups and postnups are about figuring out who gets what if you and your spouse get divorced.

But these two types of agreements have some important distinctions, and circumstances may make one better suited to your relationship than the other.

Here are some key things it can be helpful to understand about prenups vs. postnups, plus how to decide if you and your significant other might benefit from getting one.

What is a Prenup?

Short for “prenuptial agreement,” a prenup is a legally binding document set up before a couple gets married — hence the “pre” suffix.

These contracts typically list each party’s assets, including property and wealth, as well as any debts either soon-to-be-spouse might carry.

It then details how these assets will be divided in case the marriage comes to an end, either through a divorce or the death of a spouse.

Who Needs a Prenup?

Prenups may also be known as “antenuptial agreements” or “premarital agreements,” but the bottom line is, they’re contracts drafted before vows are made.

Couples who are getting married for the first time and are bringing little to no assets into the marriage may not need to bother with drawing up a prenup.

However, a prenup can be particularly useful if one spouse is coming into the marriage with children from a previous partnership, or if one partner has a large inheritance or a significant estate, or is expecting to receive a large inheritance or distribution from a family trust.

debt the other spouse brought into the marriage.

What is a Postnup?

A postnup, or postnuptial agreement, is almost identical to a prenup — except that it’s drafted after a marriage has been established.

They may not be as well known as prenups, but postnups have grown increasingly common in recent years, with nearly all 50 U.S. states now allowing them.

A postup may be created soon after the wedding, if the couple meant to do so but simply didn’t get around to it before the big day, or well afterwards, especially if some significant financial change has taken place in the family.

Either way, a postnup, much like a prenup, does the job of outlining exactly how assets will be allocated if the partnership comes to an end.

Who Needs a Postnup?

Along with being drafted whole cloth, a postnup can be used to amend an existing prenuptial agreement if there have been big changes that mean the initial contract is now outdated.

And although it’s not fun to think about, if a couple feels they’ll soon be facing divorce, a postnup can help simplify one important part of the process before the rest of the legal proceedings take place.

A postnup, like a prenup, can help separate out assets that would otherwise be considered shared, “marital property,” which can be important if one partner obtains an inheritance, trust, piece of real estate, or other possession they want to maintain full ownership over.

Postnups can also be part of a renewed effort for a couple to commit to a marriage that may be facing some obstacles and challenges.

Prenup vs. Postnup: Which is Right for Your Relationship?

While it may be a difficult conversation to face with your fiance or spouse, creating a prenup or postnup can be an important step to help you avoid both headache and heartache later on.

If you don’t make a pre- or post-nup, your state’s laws determine who owns the assets that you acquire in your marriage, as well as what happens to that property in the event of divorce or death. State law may also determine what happens to some of the assets you owned before marriage.

While almost any couple can benefit from a frank discussion of who gets what in the worst-case scenario, here are the situations in which you might specifically want to consider a prenup vs. postnup.

Prenup:

•   If one or both partners have existing children from a previous partnership, to whom they want to lay out specific inheritances in case of death.
•   If one partner has a larger estate or net worth (i.e., if one spouse is significantly wealthier than the other).
•   If one or both partners want to protect earnings made and possessions acquired during the marriage from “shared ownership.”

Postnup:

•   If you intended to create a prenup but ran out of time or otherwise didn’t do so before the wedding.
•   If significant financial changes have made it necessary to change an existing prenup or draft a new postnup.
•   If divorce is looking likely or inevitable, and the couple wishes to streamline the process of dividing marital assets before undergoing the rest of the process.

In all cases, prenuptial and postnuptial agreements can help simplify the division of assets in the case of either death or divorce—and in either of those extremely emotionally charged scenarios, every little bit of simplification can help.

However, prenups are sometimes considered more straightforward, since they’re made before assets are combined to become marital property.

Prenups may be more likely to be enforceable than postnups should one partner attempt to dispute it after a divorce.

How to Get a Prenup or Postnup

For a prenup or postnup agreement to be considered valid by judge, it must be clear, legally sound and fair.

Couples looking to save money may be able to use a template to create a prenup or postnup themselves.

It may still be a good idea, however, for each partner to at least have separate attorneys review the document before either one signs.

If your estate is more complex, you may want to consider hiring an attorney to draft the agreement.

Either way, having an attorney review the document will help protect your interests and also help ensure that a judge will deem the agreement is valid.

Reducing the Odds You’ll Ever Need to Use that Prenup or Postnup

While creating a prenup or postnup can be a smart move for even the most hopeful and romantic of couples, the ideal scenario is a happily-ever-after that leaves those contracts to gather dust.

Fighting about money is one of the top causes of strife among couples, and one of the main reasons married couples land in divorce court.

retirement account, can help partners feel empowered and able to focus on other important relationship goals.

Financial transparency, starting before and/or early in marriage, can also help mitigate marital tension over money.

To achieve more transparency, some couples may want to consider opening up a joint bank account, either after they tie the knot or before if they are living together and sharing household expenses.

While there are pros and cons to having a shared account, merging at least some of your money can help make it easier to track spending and stick to a household budget, while also fostering openness and teamwork.

For couples who’d rather not share every penny (or explain every purchase), having two separate accounts along with one joint account can be a good solution that helps keep money from becoming a source of tension in a marriage.

The Takeaway

Prenuptial and postnuptial agreements are both legal documents that address what will happen to marital assets if a married couple divorces or one of them dies.

A prenup is drafted before marriage, while a postnup can be drafted soon after or many years into marriage.

Both agreements can make divorce or the death of a partner significantly less traumatic.

These agreements can be particularly useful if one spouse has children from a previous marriage, has significant assets, and/or expects to receive a large inheritance or distribution from a family trust during the marriage.

It can be helpful to use an attorney to draw up or look over one of these agreements to make sure it’s legally sound.

For couples who are ready to integrate their finances, SoFi Money® makes it easy to create a joint account that gives couples shared access to their money.

Prefer to keep some (or all) of your finances separate? The SoFi Money app makes splitting bills and expenses easy by allowing you to send money directly from the app. If your partner is also a member of SoFi Money, he or she will get the money instantly.

Learn more about SoFi Money today.


SoFi Money®
SoFi Money is a cash management account, which is a brokerage product, offered by SoFi Securities LLC, member FINRA / SIPC . Neither SoFi nor its affiliates is a bank. SoFi has partnered with Allpoint to provide consumers with ATM access at any of the 55,000+ ATMs within the Allpoint network. Consumers will not be charged a fee when using an in-network ATM, however, third party fees incurred when using out-of-network ATMs are not subject to reimbursement. SoFi’s ATM policies are subject to change at our discretion at any time.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

SOMN20116

The post Prenup vs Postnup: What is the Difference? appeared first on SoFi.

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How to Include Some Guilt-Free Spending in Your Budget

By in Auto Rental Guides, Budgeting Tag , , , , , , , , , , , , , , , , , , , , , ,

With so many of us dealing with the coronavirus pandemic (plus the financial fallout from it) and spending more time at home this year, there’s a very good chance your family budget looks different. Our own budget had some big adjustments (transportation costs went down to basically nothing) along with some minor changes (buying supplies and items around the house for projects).

Our money dates have had us reevaluate some things and redirect money to other expenses and savings. Besides making sure that you’re taking care of essential expenses and building up your financial cushion, you want to want to make sure you include another key area in your budget – some guilt-free spending in there as well.

Why Budgets Need to Include Some Guilt-Free Spending

First off what exactly is guilt-free spending? And why should families include it when planning out their budget. Basically, it covers the expenses that you enjoy. Every family has different ways they use that money. It could be travel, eating out together, adding another pair of shoes to your collection, or gadgets. With families having to deal with so many decisions and challenges, there has been an increasing awareness of having proper self-care as part of the routine. Families are now including that in their budgets.

The key part of keeping these expenses guilt-free is that they bring you joy without breaking the bank. These aren’t frivolous spending sprees. They can be meaningful purchases such as supplies for a hobby like painting that enriches your life. Second, these expenses are planned ahead of time and baked into your budget so you’re not taking on debt or upsetting your family’s cash flow.

Why Budgets Typically Fail

One of the reasons why I think having some fun money in your budget is a wise move is because it’ll help make your budget more sustainable. How? If I asked you what the point of a budget is, what would you say? Most tell me it’s to keep their spending in check.

It makes sense to believe that because for most families that’s what it’s about – restrictions. However, the best budgets I’ve seen are geared towards the direction of the money. I’ve interviewed families who have retired early or have knocked out a ton of debt and something they had in common was that their budgets reflected their priorities and circumstances.

Before they put pen to paper (or tap the app), they sat down and defined what goals they wanted to achieve. If you had to break down a budget the three key areas are basically:

  1. Paying your essential bills.
  2. Building long term financial stability.
  3. Have the money you can use now to enjoy.

Many times, the disagreements, arguments, and sometimes sabotage with budgets come from friction on finding a balance between spending money with long term stability and enjoying now. If you skew too much to saving up for the future, one or more of you in the family could start getting resentful. Financial infidelity or set back with keeping the budget can occur for many reasons, but some spouses say one reason is there’s absolutely no wiggle room in the budget for fun. If you’re only focused on the now when something comes up – hello 2020! – you’re left without a safety net.

For families with kids, that’s an additional source of stress they don’t need. I noticed that the families who hit their goals had found a way to balance things. They save towards their long term goals as well as set aside money to enjoy now. How? By redoing how they approached their budgets.

Easy Budget Framework to Use

Let’s go back to those three key goals of any budget – taking care of essentials, saving for the future, and spending on the present. Families looking to include all of these goals need a budget that can weave them together. If you’re just starting out with a budget and are still trying to figure out a framework, an easy foundational budget is the 50/20/30 budget. It divides up your money into those three key goals, with 50% going to necessary expenses, 20% towards financial stability and wealth, and 30% towards discretionary or fun money.

Feel free to adjust the percentages based on your circumstances, but for many families that three-bucket approach is easy enough to set up and it gives them enough wiggle room where there can enjoy some of their money now. Once you’ve created that budget, you can then take the next step – automating your money. We’ve done this for over a decade and it has been incredibly helpful. We have our bills automated every paycheck plus our savings and investments are scheduled monthly. With those necessary things taken care of first, we know whatever spending we do won’t harm our expenses.

Staying on Top of Your and Budget – The Easy Way

Now that you have a budget and you’re including some guilt-free spending, how do you make sure you’re staying on track? There are some wonderful options out there including money apps like Mint. You can stay on top of your money without losing your mind because the apps can pull that data from your accounts and give you an easy and clear way to see where your money is going. You can also use Mint to track your goals like paying down debt or saving up for a house. With that information in front of you can quickly and easily see how you’re doing anytime.

Another handy tool with Mint is how simple it is to set up alerts on certain spending. So if you have set aside $200 for your ‘fun’ account, Mint can notify you when your spending is getting close to your limit. It’s a more proactive and real-time way to manage your money without having to worry about every single penny.

Your Take on Budgets

As you can see, with a little planning you can be financially savvy and enjoy some fun now. I’d love to get your thoughts – how do you approach your budget? What are some must-have expenses in yours?

The post How to Include Some Guilt-Free Spending in Your Budget appeared first on MintLife Blog.

Source: mint.intuit.com

3 Lessons From GameStop Stock’s Shocking Highs and Lows

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Pretend you invested $10,000 in GameStop stock at 10 a.m. Eastern time Thursday. You would’ve had $2,684 by 11:20 a.m. By 2:10 p.m., you’d have been back in the black with $10,481. By Wall Street’s close at 4 p.m., your $10,000 investment would have come crashing back down to $4,124. By 5:41 p.m., after-hour trading […]

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: thepennyhoarder.com

6 Reasons Why Your Budget Doesn’t Work (And How To Fix It)

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The post 6 Reasons Why Your Budget Doesn’t Work (And How To Fix It) appeared first on Penny Pinchin' Mom.

If you are not using a written budget (paper, spreadsheet or even an app), you are not alone.  According to a 2016 study, only 41% of Americans have a written budget.  That means more than 50% of American households are operating without a budget!!

 

how to make a budget work

Just because you have a budget does not mean you will be successful.  Following a budget is not easy. If it were, we would see more people using one than trying to ignore it altogether.

Even the most diligent people can have a tough time getting used to, and implementing, spending constraints within a budget. This can cause those budgets to bust and quite often fail.

Why does this happen? Why is it that so many budgets never work?  We’ve got six of the most common reasons budgets do not work.

WHY YOUR BUDGET IS NOT WORKING (AND HOW TO FIX IT)

1. Your budget is unrealistic

Who wouldn’t love to spend just $50 a month on fuel and $200 on groceries?  That would be incredible, wouldn’t it?  However, that is not the way it works.  You need to be completely honest about the numbers you include in your budget.

The fix:  One of the easiest ways to do this is by creating and reviewing a spending plan.This simple form will help you analyze and track your real life spending over the course of a month.  You might want to see that your budget shows $200 for groceries.  But, if you are spending $550, your budget will not work. Be honest and make sure your budget truly reflects the way you shop.

Read More: How to Create a Spending Plan

 

2. Forgetting items

When planning out a budget, did you remember that you have that birthday next week?  What about needing to purchase new tires for your vehicle?  You need to make sure that you are accounting for every expense which might come up over the course of the month.

The fix: Take time at the end of each month to look ahead and determine events and things coming up, such as the vacation or the birthday.  Make adjustments to the next month’s budget (but if you are really smart, you are already saving for these monthly, and the payments can come from your savings account rather than your budget).

 

3. You keep overspending

Another reason your budget doesn’t work is that you spend more than you make.   You have to make changes to your budget.

The issue is that many do not want to do this.  They just can’t.  If you are spending more than you make, your budget will never work.  You must change your spending habits to have a successful budget.

The fix: You may need to scale back on dining out or entertainment. It could be extreme enough that you need to cut expenses, such as cable, directly from your budget.

Read More:  How to Prevent Overspending

 

4. Not monitoring it

A budget is not a “one and done” financial goal.  A budget is always changing to due to income fluctuations, life events and more. Your budget will need to be frequently checked to make sure it aligns with your needs.

The fix:  Update your budget monthly, by scheduling a due date on your calendar.  There are times when adjustments will not be needed, but other times, you will need to tweak it.  You might find that you are budgeting $500 for groceries, but costs have gone up, and so now you spend $575.  That means you have to fix the budget to stay in line with what you need.

Read More:  How to Create and Use a Cash Budget

 

5. Forgetting emergencies

Life has a funny way of throwing curveballs your way when you least expect it.  What happens if the furnace goes out or your son breaks his arm?  These items are not on your budget, and there was no way to plan for them.

The fix:  You need must have an emergency fund.  Money needs to be set aside each month to cover these expenses which come up.  That means you need to add it as a line item on your budget and always save so you don’t blow your budget in these moments.

Read More:  How to Quickly Boost Your Emergency Fund

6. Not giving it enough time

Another reason your budget does not work is that you quit before it has a chance to work.

If all professional athletes quit practicing after just one month, we would have no professional sports.  The same is true with your budget.  If you give up when it gets hard or don’t try, then you are destined to fail.

The fix:  Keep in mind that the first 3 – 4 months are going to be rough.  These are the months when you are going to have to make a lot of changes to the budget so that it will work for you.  Once you get through this period, it will get easier, and you will be glad you did not quit or give up.

 

A budget is not fun. If it were everyone would have one, and it would work perfectly. No one would fail.  However, that is not reality.  It takes a lot of hard work and dedication, but when you stick to it, the rewards will be worth it.

budget doesn't work

The post 6 Reasons Why Your Budget Doesn’t Work (And How To Fix It) appeared first on Penny Pinchin' Mom.

Source: pennypinchinmom.com

4 Tips for Handling Finances After a Pay Cut

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woman sitting on the floor doing work on her computer

Millions of Americans faced pay cuts as the coronavirus pandemic affected industries. While many workers were laid off, some were furloughed, and others kept their jobs but at lower salaries as businesses struggled to stay afloat.

Some workers are reexamining their budgets to cut some of their expenses until they get another job or their employer restores pay cuts. Taking a pay cut means facing the reality of no longer living the same financial life.

Americans often aren’t so good at saving for emergencies such as a car repair or sudden illness, or for their retirement. A recent survey found that 59% of U.S. residents say they live paycheck to paycheck.

Less than 40% of working adults think their retirement savings are on track, and 25% have no retirement savings or pension at all, according to the latest Federal Reserve Report on the Economic Well-Being of U.S. Households.

Another alarming fact is that 4 in 10 adults have said that if they had an emergency and had to pay a bill of $400, they would have to borrow the money or sell an item they own. And that is in so-called normal times. Here are four strategies to handle finances after a pay cut.

1. Update Your Budget

There are several ways to deal with the changes to your budget after a change to your salary. Create a budget if you do not already have one. List all your expenses for weekly purchases, from groceries to gasoline and parking fees. Add monthly bills, including rent or mortgage, car loan, cable, cellphone, utility bills, credit cards, student loans, and any other debt such as personal loans.

Update your budget and examine all your expenses to see which ones you can lower or eliminate, even temporarily, for the next six months. Add your income and include part-time jobs, tax refunds, bonuses, and any child support, alimony, or help from parents. This will help you determine how much money you can spend for necessities, expenses, entertainment, and other items such as doctor visits.

There are several free apps that can help you manage your debt easily and update it as your financial circumstances change. To track your spending, decide if you want to track it daily, weekly, or biweekly. You might try different time periods before you decide on one. Some people prefer to keep up with their spending on old-fashioned pen and paper.

SoFi Relay.

After you track your spending for two or three months, you will see a pattern emerge of where most of your money goes. You can also look at older bank and credit card statements to see what you were spending money on last year compared to this year. This will help determine if you had one-time expenses such as medical bills, airplane tickets, hotel stays, wedding gifts, or a vacation. You might be surprised at what you’re spending your money on. For instance, you might be spending a lot of money on entertainment or buying gifts.

In addition to a budget, create a financial plan for both short- and long-term goals. A plan will help you determine when you can pay off any loans and how much you want to save, say, for a down payment on a house.

2. Cut Expenses

One place many consumers can cut costs is from entertainment, such as their cable bill or streaming services. These can really add up. Canceling all or some of these services can improve your cash flow, which is how much money you have left over at the end of the month. Another place where you can slash expenses is from your food budget. Consider using digital coupons, shopping at warehouse clubs, or going out to eat for lunch instead of dinner.

Your expenses include debt such as credit cards, student loans, and personal loans. Paying more than the minimum balance, refinancing to a lower interest rate. and making extra payments can help you pay down the principal amount, or the original amount that you borrowed, sooner.

Consider refinancing your student loans by checking out both fixed and variable rates. Interest rates are at historic lows. You might be able to pay down your credit card bills faster by taking out a personal loan; those interest rates are often lower. And if that’s the case, the debt could be paid sooner.

Automating the payment of bills can make your life easier. This will also help you avoid paying late fees. You can either have your bills paid automatically through your checking account or set yourself a reminder on your calendar if you have some bills such as utilities that are a different amount each month.

You can also automate your savings. You can have money taken out of your checking or savings account each month and have it automatically invested into your workplace 401(k) plan or an individual retirement account.

Snip, Snip, Snip

When your salary has been slashed, there are several ways you can save money immediately and long term.

Call your mortgage, auto loan, utilities, credit card, and student loan companies to see if you can defer payments for several months. Skipping a few payments can help you get back on your feet sooner. If the company cannot provide this option, see if the interest rate can be lowered on, say, credit cards.

Check with your local nonprofit organizations. Many provide food or partial payments for utility bills. Your local food bank is a good place to start; this can help you lower your monthly grocery bill.

Look online to see if stores are offering deals. Stock up on staples such as beans, rice, and pasta if they are on sale.

If you are still short of money, you might consider talking to family members and friends about obtaining a short-term loan or working on a small project to earn some extra money.

cash management account that keeps track of weekly spending—which then allows creation of a budget based on habits.

There are no account fees for SoFi Money® and you can earn cash-back rewards on spending. And SoFi members can gain financial advice—at no cost.

Learn more about SoFi Money® today.


SoFi Money®
SoFi Money is a cash management account, which is a brokerage product, offered by SoFi Securities LLC, member FINRA / SIPC . Neither SoFi nor its affiliates is a bank.
Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.
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Advisory services are offered through SoFi Wealth, LLC an SEC-registered Investment adviser. Information about SoFi Wealth’s advisory operations, services, and fees is set forth in SoFi Wealth’s current Form ADV Part 2 (Brochure), a copy of which is available upon request and at adviserinfo.sec.gov .
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7 Budget Friendly Tips for a Room Makeover

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Sometimes the need to redecorate a room doesn’t line up with when the budget allows for a full makeover. In those times, it’s good to have a few budget friendly ideas to spruce up the space. These seven tips are things that can be done even when funds are tight.

1 – Rearrange or Swap with Other Rooms

The most budget friendly thing you can do when redecorating is to look for inspiration from the other rooms in your home. Often times, especially in larger homes, there are pieces of furniture and other décor that could be moved from one room to another to make a free update to the space. If you are thinking about updating your master bedroom, consider using pieces from your office, the living room, and even the outside patio. Taking a piece from another room can provide just the change you are craving in the space you want to update.

2 – Paint Furniture

If you found a piece of furniture in another room that can work based on the shape and size, but it doesn’t quite match, consider painting the furniture. This is also a great option for updating old wood furniture that you’ve had in the room for years, or even furniture that you just found at a thrift store or rummage sale. Changing the color of furniture with spray paint is a quick and easy way to give it an entirely new look in less than a day’s time.

When determining if a piece of furniture can be painted, look for pieces that have good structure and very few flaws to the shape. When you paint, gouges and scratches can become more pronounced, so if you find a few imperfections, fill them with wood filler and sand them smooth before painting. If you are painting metal furniture, make sure to sand off any rust spots to ensure the rust doesn’t spread after you complete the makeover.

3 – Paint the Walls

If you want to make a bigger impact in a space, consider investing in a can or two of paint. Many rooms can be completed with one can of paint, but for more drastic color changes (like from white walls to dark blue walls or vise versa), you may need two cans to allow for multiple coats to get the walls fully covered.

If you don’t want to paint the entire room, consider painting an accent wall to give it a pop of color. If you have more time than funds, you can invest a few hours, a quart of paint, and a roll of painters tape into making a design on a wall instead. You might add a single stripe, a chevron stripe, or some free-hand circles around the room. You can get creative with the accent designs to make the room as fun as you want it to be.

4 – Have a Plan

One of the biggest things you can do to keep a makeover project budget friendly is to have a plan and a little patience. Think about it like this: if your car dies and you need a new car, you are at the mercy of the people who are selling cars at that exact time. If you are able to plan ahead on the purchase of your new car, you have significantly more bargaining power because you don’t NEED to purchase it immediately. You can wait for a better price to come along.

The exact same thing is true when it comes to purchases for your home. If you are determined to buy things on a certain day, you are at the mercy of what’s available on that exact day in the shops you can get to. If you’re able to instead plan the project, decide what you are going to look for, and then purchase when you find the items at the right price, you are in a much better position to find bargain pieces.

5 – Keep Your Eyes Peeled

Once you have your budget makeover plan in place, keep your eyes open for the perfect pieces everywhere you possibly can. Tour your neighborhood on the weekends to see if any of the neighbors are selling the perfect pieces on rummage sales. Search Craigslist and online rummage sale sites to catch when the items you need pop up for sale. Walk through thrift stores on a weekly basis and keep your eyes peeled for the perfect used items. And don’t forget to watch the clearance racks at your favorite stores to see what goes on super sale. I personally love walking through Target on the days they mark down their home décor items. It feels like a treasure hunt to find just the right throw pillows or wall art to fit my plan. When the items are on clearance, it’s an even bigger success knowing that I didn’t spend even close to full price on the perfect pieces.

6 – Change Light Fixtures

If you are handy, or you have a friend who is familiar with electrical wiring, you may want to consider changing out the light fixtures in your home to quickly update the space. Having light fixtures that are decades old often means that they are in an outdated style or finish, which can make the entire space look out of date. By swapping them out with an eye catching light fixture that you found on sale or at a thrift store, you can make a big impact change in that one item. One of my favorite stores to check for items like light fixtures is the Habitat for Humanity ReStore. Many cities and towns that have a Habitat for Humanity program also have a Restore where they sell good quality home fixtures that have been removed from homes that were remodeled. It is a store where one man’s trash truly is another man’s treasure.

7 – Change Flooring

The final tip is definitely more hands-on, but can make a large impact in a room if you have just a little bit more money to spend and a weekend’s worth of time. Changing the flooring in a room can create a big change for not as much money as you are probably imagining.

Laminate flooring has come a long way in the last 5 years, and you can now buy a variety of great looking laminate flooring for less than $1/square foot. This lightweight, easy to install flooring can be printed with images of wood, stone, or other designs to give your room a totally new feel. Considering most bedrooms in homes are close to 12’ x 12’, that means you could change the flooring in a room for under $150.

If that is outside your budget, you still have options. Consider getting a large area rug to anchor the room. These are typically available at stores like Ross and Home Goods for $50 or less. Not only can they add a pop of color to your floor, but you can move them into new rooms if you ever feel like rearranging in the future.

Having a strict budget shouldn’t keep you from having a space that you love. For under $200 there are a number of quick changes you can make to your home. Mix and match a few ideas and you’ll be surprised at how quickly a little time and a few dollars can change the feel of your home.

Until next time, I’m the Domestic CEO, helping you love your home.

Source: quickanddirtytips.com

Under the Influence: 40% of Americans Have Purchased Something Seen on Social Media

By in Auto Rental Guides, Budgeting Tag , , , ,

Social media has wormed its way into most aspects of our lives. It’s how many adults make friends, find dates, and even build career networks. It’s a virtual portfolio of our personal and public selves, and of course many of us want to show our best online. Which presents the question — how do you influence others, and how do others influence you on social media?

More than a third of Americans admit that social media has influenced their spending habits and that they overspend to keep up with their friends’ fun. Meanwhile, 64 percent of Americans are wondering how their friends can afford the expensive trips and trends they’re sharing online.

Online shopping has seen significant gains since the start of quarantine in the U.S. Recent reports find that 40 percent of consumers have increased their online spending to some degree. Food is the most popular item bought online, and 31 percent of Americans say they’ve ordered takeout. Hygiene is the second most popular online purchase with 27 percent of Americans shopping disinfectants and other items online, followed by clothing at 26 percent. 

The feeling of needing to keep up with friends and perform on social media is at the core of many poor online spending decisions and can be detrimental to your financial health. A $30 concert ticket may not seem like much, but this builds a habit of overspending that can impact savings goals and unbalance your budget. 

We surveyed 1,500 people to learn more about social media spending and found:

  • 40 percent of Americans have made a purchase because of social media influence
  • A quarter of Americans have bought clothing or accessories, the most popular category, because of social media
  • Nearly 20 percent of Americans admit to judging others for sharing their purchases

40% of Americans Have Made a Purchase Influenced by Social Media

Bar graph displaying what products Americans are buying after seeing them on social media.

Our survey found that 40 percent of Americans admit to purchasing an item or experience after viewing something similar on social media. Clothing and accessories was the most popular category, with 24 percent of respondents sharing that they’ve shopped new looks on social media. 

This percentage drops significantly to just 12 percent buying beauty and health products — the second most popular category. Vacation experiences were the least influential category with just 5 percent of Americans planning a trip because of social media. 

Generation X (ages 35–44) is the most likely to purchase with social media influence. Forty-four percent of Gen X respondents say they’ve purchased something they saw online, with clothing and accessories keeping its popularity at 27 percent.

On the other hand, Baby Boomers (ages 65+) were the least likely to buy from social media at 31 percent, followed by Generation Z (ages 18–24) at 36 percent. Only 40 percent of Baby Boomers use social media, while 70+ percent of other age groups connect online. This is likely why fewer Baby Boomers shop with social media. 

Additionally, 46 percent of women have purchased something they saw on social media while only 34 percent of men had done the same. Both women and men prefer clothing, but men put more value in experienced-based purchases, like events and vacations, than women seem to. 

Clothing and Accessories Have the Most Influence

Clothing and accessories remained the top influencer across age and gender groups. Gen X women are the most interested in fashion with 38 percent buying clothing or accessories they saw shared on social media. Men were less interested in fashion than women, and Gen Z and Baby Boomers were the least interested with just 14 percent of men in each generation buying fashion trends from social media. 

The fashion industry has built a huge market around the ability to control messaging and increase accessibility through visual apps. A quick and easy example of this is the 847+ million posts under #fashion on Instagram. 

Even among fashion influencers, 42 percent shop directly through Instagram. The cycle of trending fashion grows as 86 percent of influencers purchase items they’ve seen other influencers wear, and are likely to then share the trend on their own account. 

Nearly 20% of Users Judge Others for Sharing Their Purchases Online

20% of users judge others for sharing their purchases, 64% wonder how their friends afford these purchases

While a large percentage of Americans admit to making purchases they see on social media, a fifth of respondents also admit to judging others for sharing their purchases online. Interestingly, younger generations were the most judgemental. Twenty-three percent of Gen Z users judged their peers’ purchases, while just 15 percent of those 55 and older judged others’ purchases. 

It seems men are the most likely to judge others for sharing what they buy. Twenty-seven percent of Gen Z men admit to judging others’ purchases, while just 19 percent of the youngest generation’s women do the same. 

Recent research suggests that there may be a direct tie between envy and conspicuous consumption on apps such as Instagram. Preliminary research suggests that many users believe others are posting their purchases to flaunt exclusivity, which builds envy and may support why so many users are quick to judge others. Those who reported high levels of envy were also more likely to consciously purchase items they had seen in an attempt to close the perceived wealth gap. 

Social media trends are here to stay, and marketers are taking advantage of the authenticity of influencer marketing. A third of Americans admit to spending more than they can afford to keep up with their friends, and social media envy plays a large part in this influence. The best way to stay financially secure is to commit to a budget. Apps like Mint can help you plan and stick to your larger savings goals and combat the habit to impulse buy.

View the Social Media Influences infographic

Sources: Charles Schwab | Intellifluence | HelpGuide | Harvard School of Public Health | Medium 

 

Methodology 

This study consisted of two survey questions conducted using Google Surveys. The sample consisted of no less than 1,500 completed responses per question. Post-stratification weighting has been applied to ensure an accurate and reliable representation of the total population. This survey ran during August 2020. 

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Source: mint.intuit.com