Finally, ‘Fixer Upper’ Is Back! Watch Chip and Jo Tackle One Hot Mess of a House

fixer upperDiscovery+

At long last, Chip and Joanna Gaines and their smash hit show “Fixer Upper” have returned, although with some changes. For one, the show is now called “Fixer Upper: Welcome Home”—and the season premiere has them faced with renovating the messiest house we’ve ever seen them tackle.

In the episode “A Neglected Home for Newlyweds,” Chip and Jo meet Laney and Lucas, an engaged couple in Waco, TX, who have bought a house filled, quite literally, with trash. The Gaineses will need to work hard to give the couple the honeymoon home they deserve, and have a $150,000 renovation budget to do it.

Here’s how they whip this wreck of a house into shape, which suggests that this season of “Fixer Upper” will be filled with surprises and inspiration galore.

Use indoor windows for a creative way to open up sightlines

office
This window cleverly connects the office to the kitchen.

Discovery+

The house includes a large front room, which Lucas plans to use as an office.

While workspaces are normally private, Jo and Chip want to open up this space and improve the home’s sightlines. So they install industrial windows into the office that look into the kitchen and living room.

While some designers might have busted down the office walls to give the whole house an open layout, these windows are a creative alternative to demolition.They make the office feel less isolated while still giving Lucas the quiet and privacy he’ll need when working.

When the room is finished, Joanna is happy with not only the function, but also the clean, industrial design.

“The industrial window looks amazing, and I think the idea of trying to bring in a little bit of that industrial feel to this, really kind of modern, minimal space, feels really unique,” Joanna says.

A dark stone fireplace lends an industrial look

fireplace
Joanna Gaines needed to bring some style into this living room.

Discovery+

When Chip and Jo first see Lucas and Laney’s new house, they’re not only shocked by the mess, they’re also disappointed by the old-fashioned design.

The living room is especially dated, with a fireplace that desperately needs a refresh. Jo plans to update the feature with a sleek, dark stone that’s perfect for Laney’s industrial tastes.

fireplace
Laney wanted wood storage in her new fireplace, even if it wasn’t in the original design plans.

Discovery+

Yet instead of keeping the slab looking plain and minimalist, Laney makes a change to Jo’s design, requesting a cubby for wood storage. This doesn’t necessarily go with the industrial look Jo planned for, but this designer is willing to make a change. In the end, the wood ends up making the fireplace look even cozier than before.

Centered windows give a room balance

window
Chip and Jo realized, at the last minute, this window wasn’t centered.

Discovery+

Chip and Jo want to give this young couple a cozy dining space, so they design a built-in banquette with midcentury modern charm. However, in the middle of renovation, they realize that the window isn’t centered on the wall, making the space feel awkward.

They know that the wonky window will make the new table look strange, so they put in the extra effort to move the window. They finish the room with the banquette, a midcentury-inspired light fixture, and a beautiful wood table. The furnishings look great and they’re all perfectly centered—giving the room a balanced look.

table
This centered window makes the space look larger.

Discovery+

When the dining space is finished, Joanna explains that the new window placement makes the space feel so much bigger.

“This window is really close to this door here, and everything was, like, shoved this way, so we had to center your window,” she says. “Now, I feel like the space was really tiny, but now you’ve got space.”

Use wood paneling as an accent wall

bedroom
This bedroom was a catastrophe when Jo and Chip found it!

Discovery+

Laney loves simple, Scandinavian looks, but also digs midcentury modern style. So for the bedroom, Joanna installs a feature wall that works for both styles.

“I like the idea of this really cool focal wall, really minimal but highly textural,” Joanna says.

bedroom
The wood paneling gives this bedroom that midcentury modern look Laney and Lucas love.

Discovery+

She uses vertical wood paneling, which are reminiscent of paneling from midcentury homes, while choosing a light color and a simple black handle for the hidden bathroom door, which is in line with Scandinavian design.

The feature wall ends up looking gorgeous. It brings so much style to the room while seeming versatile enough to work with almost any style.

Dark colors in the bathroom add a moody vibe

bathroom
This bathroom was covered in wallpaper.

Discovery+

Laney says she likes dark tones, so Joanna wants to give Lucas and Laney’s master bathroom a moody makeover in dark green. She chooses a deep green paint color, then pairs it with green tile and wood vanities, and lightens it all up with light floors and counters.

When the room is painted and nearly finished, it looks great, but Joanna isn’t satisfied with the ceiling.

“When I walked into the bathroom, I really love what’s going on with all the textures and the pattern and the colors. Then when I look up, when I see the white ceiling, it’s almost like we stopped,” Joanna says. “The ceilings are kind of cut in a weird angle, and I don’t want to highlight that.”

So she has the ceiling painted dark green to match the walls.

While Chip is concerned this will make the space feel too dark, once the room is finished, it’s clear that painting was the right choice. The darker ceiling gives the space a cozy but glamorous feel that highlights the beautiful tiles and clean, white bathtub.

bathroom
This dark green color makes the white finishes stand out.

Discovery+

The post Finally, ‘Fixer Upper’ Is Back! Watch Chip and Jo Tackle One Hot Mess of a House appeared first on Real Estate News & Insights | realtor.com®.

Source: realtor.com

How Much Money Do You Need to Buy a House?

Understanding how much money you need to buy a house can give you an idea of how much you should expect to save.

You’re probably excited about the thought of buying your first home? If so, you have every right to be.

But how much money do you need to buy a house? A calculator can help you determine that. But the average cost of buying a $300,000 is typically around $17,000.

In this article, we’ll go over the main costs of buying a house including the down payment, inspection cost, appraisal cost, closing cost, etc.

Check Current Mortgage Rate

How much money do you need to buy a house?

Out of Pocket Cost of buying a house

The five main out of pocket costs of buying a house are 1) the down payment; 2) inspection cost; 3) the appraisal cost; 4) earnest money and 5) closing costs. These out of pocket costs or upfront costs are money yo need to pay before you become the owner of the property.

In addition, some lenders also require you have some cash reserves to cover 2 to 3 months of the mortgage repayments.

Determining how much cash needed to buy a house depends on the type of loan you’re using.

Let’s suppose you’re buying a $300,000 house with an FHA loan.

An FHA loan requires a 3.5% of the home purchase price as a down payment as long as you have a 580 credit score. So, for the down payment alone, you will need $10,500.

Here’s a quick breakdown for how much cash needed to buy a $300,000 house:

  • Down payment: $10,500
  • Inspection cost: $300
  • Appraisal cost: $300
  • Closing cost: $6000

So, $ 17,100 is how much money you need to buy a house.

Whether you’re buying a house with a 20% down payment or 3.5% down payment, you can certainly find a loan with both the price and features to suit your needs as a first time home buyer. You can compare First Time Home Buyer home loans on the LendingTree website.

The down payment

The biggest cost of buying a house is obviously your down payment. But that depends on the type of loan you are looking for.

For example, a conventional loan requires a 20% down payment. You can pay less than that, but you will have to pay for a private mortgage insurance – which covers the lender in case you default on your loan.

A 20% down payment however can also mean that you’ll get a better interest rate, which also means you’ll save money on interest.

For an FHA loan, you only need 3.5% down payment as long as your credit score is 580.

FHA loans are very popular these days. Not only it’s easier to get qualified (low down payment and low credit score), but also your down payment can come from a friend, a relative or your employer.

Using our example above, you only need $10,500 for a down payment for a $300,000 house.

If you’re using a VA loan then you pay $0 down payment.

Check to see if you’re eligible for an FHA loan or VA loan

How much money do you need to buy a house also depends on other factors, such as whether you are a first time home buyer or not. Your state may have a range of programs that may contribute toward your down payment.

So visit your local government office to find out if you are eligible for any down payment assistance for first time home buyers.

Inspection cost

Another upfront cost of buying a home is the inspection cost.

It is highly recommended to perform inspection for your home for any defects so there are no surprises later on.

Inspections typically cost between $300 to $500, but it depends on the property and your local rates.

Compare home loans for first time home buyers with LendingTree

Appraisal cost

Before a lender can give you a loan to finance a house, they will want to know how much the house is worth. So appraisal means an estimate of the home’s value. A home’s appraisal usually costs between $300 to $500. A home appraisal will also determine what your property tax will likely be.

If you’re pay the home appraisal, it will be deducted from the closing cost. (see below).

Earnest money

Earnest money is a deposit you will have to pay upfront as soon as an offer is accepted, while you working on other aspects such as getting the home inspected, etc…

This deposit is part of the down payment, and it is usually between 1% to 3% of the final sale price. It is held by an escrow firm or attorney until the closing process is completed.

So if the sale is successful, that money is applied to your down payment. If it’s not, you get 100% of your money back.

Closing costs

The closing costs are fees by the lenders. They typically cost 2% to 5% of the final price. The costs include fees for homeowner’s insurance, title insurance, title insurance, property tax, HOA dues, private mortgage insurance.

It’s possible to lower these costs by comparing mortgage options.

Other costs of buying a home:

In addition to upfront costs, there are other recurring costs associated with buying a home. They include moving fees, repair costs, furniture, remodeling, etc. So consider these costs when making your budget to buy a house.

So how much money do you need to buy a house? The answer is it depends on the type of loans you’ re using. But if you’re buying a $300,000 house with an FHA loan, which requires a 3.5% down payment, $ 17,100 is how much money you need.

For more information about upfront costs of buying a house, check out this guide.

Read more cost of buying a house:

  • How Much House Can I Afford?
  • How Long Does It Take to Buy a House?
  • Buying a House for the First Time? Avoid these Mistakes
  • 5 Signs You’re Not Ready to Buy a House

Work with the Right Financial Advisor

You can talk to a financial advisor who can review your finances and help you reach your goals (whether it is making more money, paying off debt, investing, buying a house, planning for retirement, saving, etc). So, find one who meets your needs with SmartAsset’s free financial advisor matching service. You answer a few questions and they match you with up to three financial advisors in your area. So, if you want help developing a plan to reach your financial goals, get started now.

The post How Much Money Do You Need to Buy a House? appeared first on GrowthRapidly.

Source: growthrapidly.com

How to Teach Your Teen to Budget Like a Pro

It amazes us how quickly our girls are growing up. Next month when school starts up again, we’ll have a fourth-grader and a kindergartener.

Even though we have some time before they are ready to move out of the house, we want to spend time now prepare them for the big transition. As a parent, you probably feel the same way too. 

One crucial piece of a financial foundation kids and in particular, teens, need to master is learning to budget (and sticking with it),

While they’re home now, you have a fantastic opportunity to get them comfortable with handling their money.

If you’re not sure where to start, here are some tips from fellow parents and experts in the personal finance space to make teaching this life skill a bit easier less stressful for you and your teen!

Teach Your Teen to Budget for Real Life

Teens or not, whenever most people hear the word budget, they also hear the word ‘no’. To them, budgets feel like a strict diet. Just as fad diets fail, an unrealistic or extreme budget will more than likely discourage your teen and they will quit.

The first step before you even talk about the numbers is to discuss exactly what a successful and sustainable budget should be. When done right, a budget is something that helps you move your money towards your goals. Explain to them that at its root, budget is simply a plan about what they’d like to do.

You want a budget that can cover:

  •     Essential bills
  •     Future goals
  •     Discretionary expenses

When your teen’s budget covers those goals, they’re not only putting their finances in a good spot, but they’re moving closer to their specific long term dreams.

Creating a Doable Budget (They’ll Actually Enjoy!)

Once your teen(s) understands how a budget works, it’s important for them to create a budget that they can use in the real world. You can honestly budget however you want, but an easy budget to get your teen started is the 50/20/30.

Quite simplify, the 50/20/30 budget puts money into those three main buckets:

  •     50%  goes towards essentials
  •     20% towards savings (or investing)
  •     30% for fun and discretionary expenses

I appreciate how easy and flexible this budget can be. You can adjust the percentages for your teen’s needs, but it gives them some ballpark idea of how to portion their finances when they are out on their own.

How do you start them out on this budget?

With teens, you may have expenses like clothing or their cellphone bill count as essentials, or you may want to give your child the experience of being responsible for a small, shared family bill while they are still at home.

For older teens, you could even charge them a nominal ‘rent’ to offset their portion of the bills. In some cases, parents give that money back to their child as a gift to help with moving expenses (like for their security deposit) or use as additional savings. 

However you decide, talk it over so your teen understands why you’re doing it this way.

Share Your Family Budget

Creating a budget isn’t complicated, but it can difficult if your teen has no idea what to expect. Knowledge can be empowering.

While we may take it for granted since have to deal with the numbers, but your teen may not be aware of how much it takes to keep the lights on and roof over their heads. If you haven’t already shared your own budget already, now is the time.

Not knowing also puts them at a disadvantage when they start searching for a place or are comparing prices on expenses. Being armed with the numbers makes your teenager a more informed consumer.

When Your Teen Breaks Their Budget

Will there be times where your teenager will mess up with their budget? Probably so. However, that’s not necessarily a bad thing. As parents, we tend to want to protect our kids, but we also have to prepare them for the real world. As Ron Lieber, author of The Opposite of Spoiled, pointed out we should let our kids make financial mistakes. 

Wouldn’t it be better for your child to break the clothing budget while they’re still at home allowing you to help guide them through rather than having break their monthly budget while they are on their own and have bills to pay?

Mistakes will happen, they’re a part of life so giving your teen time to work those them and adjust their budget is a blessing for their future selves.

Essential Accounts for Your Teen  to Have

Since we’re talking about budgets, we should also mention some essential accounts you’d want your kid to have so they can practice managing their money.

Opening up student checking and savings accounts (usually free low on fees as well as not having minimum balance requirements) are good foundational accounts for your teen. They can deal with real-world situations pending charges, automatic transfers, and direct deposits.

As Family Balance Sheet founder Kristia Ludwick pointed out, teens should have the skill of balancing a checkbook even if they decide to go all-digital with their banking.

If they work, talk it over together and see if they can open up an IRA and start contributing. It doesn’t have to be much. The idea is to get them familiar and comfortable with the basics of investing.

Even if they put in $25 a paycheck, having them practice setting aside money in their budget for both long and short term goals is an invaluable lesson. You can also encourage them to contribute by offering a match for what they put in.

How Teens Can Easily Stay on Top of Their Money

With several accounts to keep tabs on, your teen is going to need an easy system to track their budget and goals.

With Mint, they can link up their accounts in one secure spot. They can also add their budget along with any savings goals they want to hit and make sure they stick with them.

Hopefully, these ideas and tips will make it easier to help your teen transition into a self-sufficient adult.

The post How to Teach Your Teen to Budget Like a Pro appeared first on MintLife Blog.

Source: mint.intuit.com

Why Set Impossible Goals for 2021? [The Ultimate New Year’s Savings Hack]

In the 1980s, self-driving cars and smartphones without antennas were only things you’d see in movies — unimaginable futuristic goals. Now, these “impossible” inventions are part of people’s everyday lives. These innovative ideas were thought to be outlandish years ago until creators like Elon Musk and IBM’s team put their impossible goals to the test.

Impossible goals are things you want to achieve that seem out of the ordinary — ones that feel as if you may never reach them, even in your wildest dreams. These goals could be turning your dream side hustle into a full-time job or building your savings from zero in the next year to buy your dream home.

While the end result seems unreachable, a mix of motivation, determination, and hard work can get you further than you think. To see the strategic process of setting and achieving your biggest life goals, keep reading our jump to our infographic below.

What’s an Impossible Goal?

An impossible goal is a goal you think you could never achieve. Becoming a millionaire, buying your dream home, or starting a business may be your life goal, but one too big that you never set out to achieve. Instead, you may stick to your current routine and believe you should live life in the comfort zone.

Becoming a millionaire usually requires investing time, confidence, and a lot of hard work — things that may challenge you. But when you think about the highest achievers, most of them had to put in the effort and believe in themselves when nobody else did.

Flashback to 1995 when nobody believed in the “internet store” that came to be Amazon. While that was considered impossible years ago, Amazon’s now made over $280 billion dollars.

In other words, when you make your impossible goals a priority, you may be pleasantly surprised by your progress. We share how to set hard financial goals, why you should set them, and how these goals could transform your financial portfolio this year.

Impossible Goals Set by the Rich and Famous

4 Reasons to Reach for the “Impossible”

Impossible goals challenge you to shift your way of thinking — getting comfortable out of the safety zone. They help fine-tune your focus for daunting tasks you’re willing to put in the time and work for. Whether you’re looking to become a millionaire, buy your dream house, or pay down your debts, here’s why you should set goals for things you think you could never achieve.

1. You May Be Pleasantly Surprised

Everything seems impossible until you do it. When you’re in elementary school, maybe you thought getting a four-year college degree would be out of reach. Regardless, you put in the time and hard work to become a college grad years later. The same goes for your potential goal to write a book. You may think it’s hopeless to write a few hundred pages in the next year, but you may find it attainable once you hit the halfway point.

2. You Check Off Micro-Goals Along the Way

It’s hard to set your goals too low when you’re trying to reach for the stars. In the past, you may have set small goals like being more mindful with your money. While mindfulness practices are extremely beneficial for your budget, you may need more of a push to save for your dream home. By setting impossible goals, you may find it easier to reach your savings goal this year. You may have no idea how to do it, but your goal is to figure it out. Side hustles, a new job, or starting a business are all potential starting points.

3. It May Not Be as Hard as You Think

It can be uncomfortable to try something for the first time, so to avoid the doubts of reaching your goals, create a strategic plan. Download and print out our printable to breakdown each impossible goal. Start with your big goals and break them down into mini-goals. For example, if you want to start an online ecommerce store, researching the perfect website platform is a good starting point.

4. What Do You Have to Lose?

If you already live a comfortable life, you may only have experiences to gain and nothing to lose. When embarking on this journey, check in with yourself every month. Note all the lessons you learned and how far you’ve come. You most likely will face failures, but you’ll be failing forward rather than backwards. Your first ecommerce product launch may not have gone smoothly, but you may know how to improve for the next time around.

Impossible Goals Roadmap

Impossible Goals Download Button

How To Set Impossible Budgeting Goals in 6 Steps

If your impossible goal is related to finances, your mindfulness, time, and dedication will be required to put you on a path towards your dream life. To get started, follow our step-by-step guide below.

Step 1: Map Out Your Dream Lifestyle

  • Get out a journal and map out your dream life. Some starter questions may be:
  • Do you want to afford that house you’ve always dreamt about?
  • Do you want to have a certain amount of money in your savings?
  • Are you hoping to turn your side hustle into a full-time job?
  • What do you find yourself daydreaming about?

Track all these daydreams in a notebook and curate the perfect action plan to achieve each goal.

Step 2: Outline Micro-goals to Reach Your Financial Goals

Now, list out mini-goals to achieve your desires. Start with the big “unachievable” goal and break it down into medium and small goals, then assign each mini-goal a due date. For example, saving $10,000 this year may take more than your current monthly earnings. To achieve this, you may create passive income streams. If that side hustle is to start a money-making blog, you may need to research steps to successfully launch your website.

Step 3: Believe and Act Like Your Future Self

Think of yourself as the future self you want to be. You may picture yourself with a certain home, financial portfolio, and lifestyle, but your current actions may not reflect your future self. Your future self may invest, but your current self is too intimidated to start. To act like your future self, consider doing the research and finding low-risk investments that suit you and your budget.

Step 4: If You Fail, Learn from Your Mistakes

When working towards your dream life, you may hit roadblocks and experience failures. As Oprah explains it, “there is no such thing as failure. Failure is just life trying to move us in another direction.” While failure may happen, you’re able to learn from it and pivot. Every mistake you make, analyze it in your journal. Note what worked, what didn’t, and what you want to do better tomorrow to surpass this roadblock.

Step 5: Track Your Results Consistently

Host monthly meetings with yourself to see how far you’ve come. Consider creating a goal tracking system that suits you best. That may include checking your budgeting goals off in our app month after month. Find a system that works for you and note your growth at the end of each month. If you’re putting in the time and hard work, you’ll get closer to your goals in no time.

Step 6: Be Patient With Your Budget Goals

Throughout this journey, practice patience. Setting goals may be exciting and motivating, but when you’re faced with failures, you may feel hints of disappointment. To avoid a failure slump, be patient and open to learn from your mistakes. If you didn’t make what you wanted from your side hustle the first year, you’re that much closer than you were last year.

Why set your sights on hard goals? Everything feels out of reach until you do it. All it takes is motivation and determination to achieve the impossible. To boost your lifestyle, budget, and drive this New Year, consider setting goals that feel out of reach. Keep reading to see why these goals may be perfect for you. Why Set Impossible Goals for 2021? [The Ultimate New Year’s Savings Hack] appeared first on MintLife Blog.

Source: mint.intuit.com

The Ultimate Guide to Using a Cash Budget

The post The Ultimate Guide to Using a Cash Budget appeared first on Penny Pinchin' Mom.

There are many types of budgets you can try.  A quick Google search will show you lots of options – including the cash envelope budget.  If you say it will not work for you, it means you did not try doing it the right way.

cash envelope budget system

Whether you are getting out of debt or not, you can probably use some help in making sure you control your spending. Contrary to what many people say, the best way to do this is to use cash.  If you are trying to get out of debt, this is the next step you need to follow!  The cash envelope system is an important step to your debt paydown plan.

Ask many financial experts such as Dave Ramsey or Clark Howard and they will agree that using cash is an important factor in controlling your spending. And it is not a system only for people trying to get out of debt, but everyone as it really makes you think more about your spending.

If you are just learning about budgeting, you will want to check out our page — How to Budget. There, you will learn everything you want to know about budgets and budgeting.

 

HOW TO USE THE CASH BUDGET

WHY A CASH ENVELOPE SYSTEM?

Cash is King!!  I say this all of the time because I genuinely believe this.  When I bring up using cash, the first rebuttal I get is “If I have cash, I spend it far too easily.”  Sorry, I don’t buy it.  The main reason that people fail on a cash budget is a lack of tracking what they spend and assigning it a task.

[clickToTweet tweet=”The truth is that when you use cash, you spend more wisely. ” quote=”The truth is that when you use cash, you spend more wisely. “]

When you have only $200 for groceries, and you also know that it must last for two weeks.  It forces you to think twice before you buy that extra item.  A cash budget never lets you overspend because once the money is gone – it’s gone.

 

CASH ENVELOPE CATEGORIES

Getting started using the envelope system for budgeting is pretty simple.  To begin, look at your budget.  The following are cash envelope categories you should consider using:

  • Groceries
  • Clothing
  • Dining Out
  • Hair Cuts/ Beauty
  • Doctor Visits
  • Random Spending (which is your spend as you want – only if you can afford it)
  • Medicine
  • Doctor/Dentist Visits

You will notice that I didn’t include gasoline on my list.  The reason I didn’t is that most people won’t overspend at the pump.  Most of us just fill up our tanks and go about our merry way.  You also don’t drive around and burn fuel or decide to fuel up because your neighbor did.  It is on your budget but is not one you where you will overspend. Not only that, it is usually much more convenient to pay at the pump.

 

PRINTABLE DIY CASH ENVELOPE TEMPLATE

When it comes to using the cash envelope system, you can purchase one such as that sold by Dave Ramsey or you can just use the envelopes in your desk drawer.  I’ve even got a cash envelope template you can use as well (purchase HERE for $2.99).

 

HOW MUCH CASH DO I NEED?

Once you have your categories, you have to determine how much cash you need for each group.  You will figure the amount based on your pay period.

For example, if payday is every two weeks, take the total monthly grocery budgeted amount and divide it by 2.  You will then know how much money you will need for each of the two pay periods for that month.  It is important you have a budget that works (including using budget printables as needed).

Next, review, each category you will use cash for and figure up the amount you will need.  Once you have done that, you will also want to figure out how many of each denomination of bill you will need.  List the total amount, by denomination, on a piece of paper.  Take that, along with a check from your account for the amount, to the bank.  You will make a withdrawal and then split up the cash into each envelope.

 

HOW TO USE THE DAVE RAMSEY ENVELOPE SYSTEM

Sometimes, it is easier to understand something if you can see it in action.  Follow this simple cash budget example to see how it works.

 

START WITH YOUR REGULAR BUDGET

Let’s say you bring home $2,500 per month. You have completed your written budget and have items such as your mortgage, utilities, food, dining out, debts and other expenses.  Most of your expenses are paid with a check or electronic transfer. Those are not the categories to consider for your cash budget.  Instead, look at those items that you don’t pay for all at once, but rather over time.

These are the items that will work best if you use cash.  In this case, you will include groceries, clothing, random spending, doctor visits and dining out.  (We don’t include fuel because there is never a chance you will overspend on fuel).

In this example, we will only use cash for these items:

MONTHLY BUDGET

Groceries – $500
Clothing – $100
Random Spending – $80
Doctor – $50
Dining Out – $100

DETERMINE HOW MUCH CASH YOU NEED PER PAYCHECK

As you can see, the budget above is based on your monthly income.  Since you are paid every two weeks, that means your take-home pay is $1,250 twice a month.  You only need enough money to cover half of each of these categories.  Your spending for each will look like this for each pay period:

MONTHLY BUDGET DIVIDED FOR BI-WEEKLY PAY

Groceries – $250
Clothing – $50
Random Spending – $40
Doctor – $25
Dining Out – $50
Total cash needed:  $415 per pay period

Now that you see what you have budgeted to spend on each category each pay period, you need to determine how many bills of each denomination you will need to get from the bank.

 

KNOWING HOW MUCH CASH YOU NEED FOR A CASH SYSTEM

Using the same cash budget example above, here is how you will do that:

Groceries – $250 —- 3 $50 bills, 5 $20 bills
Clothing – $50 — 2 $20 bills, 1 $10 bill
Random spending – $40 —- 2 $20 bills
Doctor – $25 —- 1 $20 bill, 1 $5 bill
Dining Out – $50 —- 2 $20 bills, 1 $10 bill

You need to get this cash from the bank.  You can’t use the ATM as it will spit out only $20s and $10s and will not give you the correct number of bills.  Make a note to hand to the teller that shows how to break down the cash:

3 $50 bills
12 $20 bills
2 $10 bills
1 $5 bill

Write a check for $415, payable to “CASH” and take it, along with your slip of paper to your bank.  The teller will cash the check and give you the bills you need.

 

FILL YOUR CASH ENVELOPES

When you get home with your cash, it is time to add it to each envelope.  Find the one for each category listed above.  Pull the cash from the bank envelope and split it into each envelope, per the list above.  Add the amount of the deposit to the front of the envelope, adding to any amounts that may be left from the prior pay period.

 

USING THE CASH ENVELOPE SYSTEM

Once you have your cash and your envelopes, it is time to put them to work.  The only – and I mean only – way that this will work is if you track every. Single. Transaction.  I am not joking.  Doing this can help you stay on track, and you also have to account for everything you spend.

For example, shop as usual at the grocery store.  If your total is $20.17, you will pay with the cash from your groceries envelope.  Place any cash you get back into the envelope and then deduct your purchase from the balance.  So, if you had $100 and spent $20.17, the new total cash you have left will be $79.83.

The printable cash envelope template above includes lines on the envelope, so you have a place to track your balance.  If you use your own, add it to the outside or keep a slip of paper inside.

Make sure you track every purchase. You can always see how much money you have left and where it was spent.  It helps you monitor your spending at a glance.  Once the cash is gone  – you are done spending money.

USING THE VIRTUAL CASH ENVELOPE SYSTEM

I also get that sometimes, cash is just something you can’t do. You need (or just really prefer) using your debit or credit card instead. Is there a way you can apply this method when you spend using plastic?

Of course!

Rather than get paper money to put into your envelopes, you can use either a virtual envelope or paper tracking to monitor your spending.

Virtual envelope systems, such as ProActive, help you monitor and control your spending but allow you the convenience of using your credit or debit card.  Rather than paying with cash, you swipe but know how much you have left to spend on each category in your budget.

If you would rather opt for something that is free, you can print out cashless envelopes instead.  They work in the same fashion as cash envelopes.  You still write down the amount you have to spend on each form and as you shop, you keep track.  When you are out of “money” according to your envelope tally, you are done shopping.

You can read even more and get started with different ways to use the envelope method even if you don’t use cash.

 

HOW TO USE A CASH METHOD WHEN SHOPPING ONLINE

So, what if you don’t shop in the store, but rather, make purchases online, how would that work with a cash budget?  Can you even do that?  Yes, you can.  You just have to handle it a little differently.

The first option is to leave some of the money you normally get in cash, in your account.  For example, if you spend $100 every paycheck through online purchases, get $100 less in cash.  You can still account for it by using cashless envelopes instead.  That way, you still monitor your spending and don’t blow your budget.

The other option is to still get all of the cash you normally need.  Then, if you buy something online, head to the bank and re-deposit that back into your account.  You still get the full benefit of using cash and seeing the money come out of your envelopes.

You still can use cash when you shop online, you just have to make some adjustments.

 

WHY THE CASH ENVELOPE SYSTEM WORKS

The reason why the cash envelope system works is pretty simple.  Accountability.

When you have to make yourself accountable for your spending, you are taking control.  It also will help you spend less.  If you only have $100 to spend on dining out over the next two weeks, you think twice about ordering take out three days in a row. When the money is gone – you are done spending!!!

It isn’t entirely about cash.  It is learning self-control.  That is the one thing everyone will gain in going through this process.  It enforces this way of thinking.  You will quickly learn to love using cash, and you will feel more in control of your finances.

Cash also has more emotion attached to it. You don’t think about the consequences of a purchase when you swipe a card.  However, handing over that cold, hard cash sometimes hurts.  You do think about each purchase a bit more.

We’ve been doing this for so long that I don’t know how to shop without my envelopes!   It is routine, and it helps us always know, in a matter of minutes, how much money we have available for the things we need.

The post The Ultimate Guide to Using a Cash Budget appeared first on Penny Pinchin' Mom.

Source: pennypinchinmom.com

6 Cheap Super Bowl Snacks to Serve With the Big Game

Everyone knows that Super Bowl time is snack time.

But this year, given the ongoing coronavirus pandemic, you may be staying home to watch the game rather than heading to a big bash or going to a bar or restaurant and plunking down big bucks.

However you decide to watch the game, you can still enjoy some classic Super Bowl snacks.

6 Cheap Super Bowl Snacks to Enjoy With the Big Game

1. Chex Party Mix

Everyone loves this crunchy, salty snack. While there are thousands of different ways to make it, this time-tested recipe from The Spruce Eats is super easy and will appeal to the garlic lovers in your crowd.

Prep time: 15 minutes

Cook time: 60 minutes

You’ll need:

  • ½ cup butter
  • 2 tablespoons Worcestershire sauce
  • 1 teaspoon seasoned salt
  • 1 teaspoon garlic salt
  • ½ teaspoon onion powder
  • 3 cups corn Chex cereal
  • 2 cups wheat Chex cereal
  • 1 ½ cups mixed nuts
  • 1 cup small pretzels
  • 1 cup garlic-flavored bagel chips
  • 1 cup mini pretzel rods

Preheat the oven to 250 degrees. Melt the butter in a large pan and stir in Worcestershire sauce, seasoned salt, garlic salt and onion powder. Add everything else and toss thoroughly until well-coated. Bake for one hour, stirring the batch every 15 minutes. Let cool and store in an airtight container.

2. Honey Garlic Crockpot Meatballs

For a hearty main course, this incredibly easy meatball recipe from Family Fresh Meals will keep your crew happy. Serve them over noodles or rice for a main dish, or just let people enjoy them as an appetizer.

Prep time: 5 minutes

Cook time: 4 hours

You’ll need:

  • ¼ cup brown sugar
  • 1/3 cup honey
  • ½ cup ketchup
  • 2 tablespoons soy sauce
  • 3 minced garlic cloves
  • 1 (28 oz) bag fully cooked, frozen meatballs

Mix together the brown sugar, honey, ketchup, soy sauce and garlic. Next, place the meatballs in a three- or four-quart crockpot and cover in sauce, tossing to coat. Turn the crockpot on low for four hours and stir occasionally.

3. Baked Mozzarella Sticks

Enjoy the diner classic at home with The Spruce Eats recipe for baked mozzarella sticks.

Prep time: 15 minutes

Cook time: 5 minutes

You’ll need:

  • ½ cup brown rice flour
  • ¼ cup tapioca flour
  • 1/4 cup parmesan cheese, finely grated
  • 1/2 teaspoon garlic powder
  • 1/2 teaspoon salt
  • Freshly ground black pepper to taste
  • 2 large eggs
  • 6 sticks of low-moisture, part skim milk mozzarella string cheese (cut in half crosswise and frozen for 3-4 hours)
  • Grapeseed oil for frying
  • Marinara or other sauce for dipping

Add grapeseed oil to a skillet, and then mix the flours, parmesan, garlic powder, salt and black pepper in a shallow dish. Beat the eggs and add them to a separate dish. Coat the cheese, alternating between the dry mixture and the egg. Make sure to cover the entirety of the cheese pieces, including the ends.

Next, heat the oil in the pan to 360 degrees and then drop the frozen cheese into it. Turn them every 20 to 30 seconds until they are a golden brown color. Place the cheese on paper towels to absorb the excess oil, and then transfer them to a platter for serving.

4. Pigs in a Blanket

Prep time: 15 minutes

Cook time: 15 minutes

Go with the classic childhood favorite: buttery dough enveloping tasty mini-sausages. Pillsbury has a great recipe for pigs in a blanket. 

You’ll need:

  • 2 cans (8 ounces each) refrigerated crescent dinner rolls
  • 48 cocktail-sized smoked linked sausages

Preheat the oven to 375 degrees. Unroll all the dough and pull into 16 triangles. Cut each triangle into three narrow triangles. Roll a sausage link up in each triangle of dough. Place them on unlined baking sheets. Bake for 12 to 15 minutes until golden brown, rotating halfway through. Serve warm.

5. Crockpot Beer Cheese Dip

Prep time: 10 minutes

Cook time: 40 minutes

This snack from The Spruce Eats just may be the most indulgent one on this list. Have it with pretzels or tortilla chips — or even try something fancier like apples and vegetables.

  • 1/2 cup beer
  • 1/4 teaspoon Tabasco sauce
  • 1 pound processed cheese spread loaf, cut into 1-inch cubes
  • You’ll also need food to dip into it; The Spruce Eats suggests not only tortilla chips and hard and soft pretzels but also apples, crackers, bread cubes and assorted vegetables.

Combine the beer, Tabasco sauce and processed cheese spread in a slow cooker. Add more Tabasco sauce if you prefer a spicier treat. Cover and cook on high for 40 minutes. Once the cheese has melted, stir it to make it smooth. Keep it in the slow cooker on low and serve with the dippers.

FROM THE SAVE MONEY FORUM
No spend challenge
12/14/20 @ 9:48 AM
Debi Hoyt
Looking for a Financial Accountability Partner
1/15/21 @ 11:16 AM
K
Saving money
12/6/20 @ 8:17 PM
r
See more in Save Money or ask a money question

6. Restaurant-Style Buffalo Chicken Wings

It really is possible to enjoy restaurant-style buffalo chicken wings at home. This recipe from AllRecipes takes more time than others on the list, but that’s only because you need to chill the chicken before cooking it.

Prep time: 60-90 minutes (includes time to chill ingredients before cooking)

Cook time: 15 minutes

  • ½ cup all-purpose flour
  • ¼ teaspoon paprika
  • ¼ teaspoon cayenne pepper
  • ¼ teaspoon salt
  • 10 chicken wings
  • oil for deep frying
  • ¼ cup butter
  • ¼ cup hot sauce
  • 1 dash ground black pepper
  • 1 dash garlic powder

Mix flour, paprika, cayenne pepper and salt in a small bowl. Put the chicken wings in a nonporous glass dish or bowl and then sprinkle the flour mixture on top, evenly coating the wings. Cover the dish and refrigerate it for 60-90 minutes.

Heat the oil in a deep fryer to 375 degrees. Mix butter, hot sauce, pepper and garlic butter in a small saucepan and then put it over low heat. Stir until the butter melts and blend the mixture thoroughly. Then remove it from the heat.

Remove the wings from the refrigerator and fry them in the hot oil for 10 to 15 minutes. Remove them from the heat, put them in a serving bowl, add the hot sauce mixture and stir before serving.

Kristen Pope is a contributor to The Penny Hoarder. Editor Sushil Cheema contributed to this post.

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

Does Paying the Minimum Hurt Your Credit Score

Credit card bills can be confusing. If everything was straightforward and clear, credit card debt wouldn’t be such a big issue. But it’s not clear, and debt is a massive issue for millions of consumers. 

One of the most confusing aspects is the minimum payment, with few consumers understanding how this works, how much damage (if any) it does to their credit score, and why it’s important to pay more than the minimum.

We’ll address all of those things and more in this guide, looking at how minimum credit card payments can impact your FICO score and your credit report.

What is a Credit Card Minimum Payment?

The minimum payment is the lowest amount you need to pay during any given month. It’s often fixed as a fraction of your total balance and includes fees and interest.  

If you fail to make this minimum payment, you may be hit with late fees and if you still haven’t paid after 30 days, your creditor will report your activity to the major credit bureaus and your credit score will take a hit.

When this happens, you could lose up to 100 points and gain a derogatory mark that remains on your credit report for up to 7 years. Making minimum payments will not result in a derogatory mark, but it can indirectly affect your credit score and we’ll discuss that a little later.

Firstly, it’s important to understand why you’re being asked to pay a minimum amount and how you can avoid it.

How Much is a Minimum Credit Card Payment?

Prior to 2004, monthly payments could be as low as 2% of the balance. This caused all kinds of problems as most of your monthly payment is interest and will, therefore, inflate every month so that every time you reduce the balance it grows back. 

Regulators forced a change when they realized that some users were being locked into a cycle of credit card debt, one that could see them repaying thousands more than the balance and taking many years to repay in full.

These days, a minimum payment must be at least 1% of the balance plus all interest and fees that have accumulated during that month, ensuring the balance decreases by at least 1% if only the minimum payment is met.

Do I Need to Make the Minimum Payment?

If you have a rolling balance, you need to make the minimum monthly payment to avoid derogatory marks. If you fail to do so and keep missing those payments, your account will eventually default and cause all kinds of issues.

However, you can avoid the minimum payment by clearing your balance in full.

Let’s assume that you have a brand-new credit card and you spend $2,000 in the first billing cycle. In the next cycle, you will be required to pay this balance in full. However, you will also be offered a minimum payment, which will likely be anywhere from $30 to $100. If this is all that you pay, the issuer will start charging you interest on your balance and your problems will begin.

If you spend $2,000 in the next billing cycle, you have just doubled your debt (minus whatever principal the minimum payment cleared) and your problems.

This is a cycle that many consumers get locked into. They do what they can to pay off their balance in full, but then they have a difficult month and that minimum payment begins to look very tempting. They convince themselves that one month won’t hurt and they’ll repay the balance in full next month, but by that point they’ve spent more, it has grown more, and they just don’t have the funds.

To avoid falling into this trap, try the following tips:

  • Only Spend What You Have: A credit card should be used to spend money you have now or will have in the future. Don’t spend in the hope you’ll somehow come into some money before the billing period ends and the credit card balance rolls over.
  • Get an Introductory Interest Rate: Many credit card issuers offer a 0% intro APR for a fixed period of time, allowing you to accumulate debt without interest. This can help if you need to make some essential purchases, but it’s important not to abuse this as you’ll still need to clear the full balance before the intro period ends.
  • Use a Balance Transfer: If you’re in too deep and the intro rate is coming to an end, consider a balance transfer credit card. These cards allow you to move your full balance from one card (or cards) to another, taking advantage of yet another 0% APR and essentially extending the one you have.
  • Pay the Minimum: If you can’t pay the balance in full, make sure you at least pay the minimum. A missed payment or late payment can incur fees and may hurt your credit score. 

Why Pay More Than the Minimum?

You may have heard experts recommending that you pay more than the minimum every month, but why? If you’re locked into a cycle of credit card debt, it can seem counterproductive. After all, if you have a debt of $10,000 that’s costing you $400 a month, what’s the point of taking an extra $100 out of your budget?

Your interest and fees are covered by your minimum payment and account for a sizeable percentage of that minimum payment. By adding just 50% more, you could be doubling and even tripling the amount of the principal that you repay every month.

What’s more, your interest accumulates every single day and this interest compounds. Imagine, for instance, that you have a balance of $10,000 today and with interest, this grows to $10,040. The next day, the interest will be calculated based on that $10,040 figure, which means it could grow to $10,081, which will then become the new balance for the next day. 

This continues every single day, and the larger your balance is, the more interest will compound and the greater the amount will be due over the term. By paying more than your minimum payment when you can, you’re reducing the balance and slowing things down.

Does Paying the Minimum Hurt My Credit Score?

Paying the minimum amount every month ensures you are doing the bare minimum to avoid hurting your credit history or accumulating fees. However, it can indirectly reduce your score via your credit utilization ratio.

Your credit utilization ratio is a score that compares the credit limit of all available credit cards to the total debt on those cards. It accounts for 30% of your credit score and is, therefore, a very important aspect of the credit scoring process.

The more credit card debt you accumulate, the lower your credit utilization rate will be and the more your score will be impacted. If you only pay the minimum, this rate will become stagnant and may take years to improve. By increasing the payment amount, however, you can bring that ratio down and improve your credit score.

You can calculate your credit utilization score by adding together the total amount of credit limits and debts and then comparing the latter to the former. A combined credit limit of $10,000 and a balance of $5,000, for instance, would equate to a 50% ratio, which is on the high side.

Can Credit Card Fees Hurt My Credit Score?

As with interest charges, credit card fees will not directly reduce your score but may have an indirect effect. Cash advance fees, for instance, can be substantial, with many credit card companies (including Capital One) charging 3% with a $10 minimum charge. This means that every time you withdraw cash, you’re paying at least $10, even if you’re only withdrawing $10.

What many consumers don’t realize is that these fees are also charged every time you buy casino chips or pay for some other form of gambling, and every time you purchase money orders and other cash products. 

Along with foreign transaction fees and penalty fees, these can increase your balance and your minimum payment, making it harder to make on time payments and thus increasing the risk of a late payment.

Does Paying the Minimum Hurt Your Credit Score is a post from Pocket Your Dollars.

Source: pocketyourdollars.com