How to Stop Impulse Spending and Conquer Impulsive Online Shopping

Many people struggle with impulse spending at some point in – or throughout – their lives. Still, there are different factors influencing the severity of the impulsiveness and financial consequences of a dopamine-fuelled shopping spree. For instance, a 2016 study from Princeton Survey Research Associates International found that people were more likely to buy in-store than online – possibly due to the immediate gratification factor, compared to waiting for an item to arrive in the mail – and the most common impulse purchases are under $25. This may not sound like a problem, but little costs like unnecessary, impulsive purchases can really wreak havoc on your budget over time if you’re not careful. Furthermore, with millions of people stuck at … Read more

Why Timeshares Investments Are Bad and What to Do If You Own One

Ways to get out of bad financial decisions

Sales of timeshare vacation rentals have been consistently growing for the past 10 years, according to the American Resort Development Association (ARDA)’s State of the Vacation Timeshare Industry 2020 U.S. report. The same report also found the average weekly timeshare sold for more than $22,000, resulting in more than $10.5 billion in American consumer spending on timeshares in 2019. But how can this be? Aren’t timeshare investments known for being terrible money pits? Not necessarily. As this comparison from Consumer Reports shows, the first several years of timeshare ownership make little financial sense until you reach a point where the costs of renting similar accommodations for the same timeframe would have outweighed the costs of the initial timeshare buy-in and … Read more

Top 6 Critical Things to Do When Your Tenants Are Behind on Rent

house for rent

It’s a tricky situation for landlords and tenants alike when rent is due, and the tenants cannot pay it for whatever reason. On the one hand, many landlords strive to be compassionate, understanding that life circumstances like unexpected medical emergencies or job losses may be causing a tenant to fall behind on rent. On the other hand, being a landlord is not a charity venture; if you don’t receive the rent you’re owed, then you’re stuck footing the mortgage bill for as long as it takes them to repay you. What to Do When Your Tenants Are Behind on Rent Since most cities and states have their own unique tenants’ rights laws and eviction regulations, let’s explore some general options … Read more

Early Retirement Withdrawals – How and When to Conduct a Withdraw

Does Dollar Cost Averaging Really Work?

IRS data has shown that Americans lose approximately $5.7 billion per year on early withdrawal penalties when they take out funds from their 401k Retirement Plans or IRAs before meeting the minimum age requirements (59 ½). In 2020, Section 2202 of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) created an exemption for early distributions related to the coronavirus pandemic in which individuals could withdraw up to $100,000 from their retirement accounts without being subject to the 10% early withdrawal penalty (though they would have to count the distributions as part of their income for tax-reporting purposes for the next 3 years). To qualify for the no-penalty early withdrawal – which was extended into 2021 thanks to the … Read more

Top 5 Simple Things You Can Do When Your Car Insurance Rates Rise

Tips to Use When You Can't Afford Car Insurance

The National Association of Insurance Commissioners found that the average American’s car insurance premiums cost around $1,134 annually (or $95 per month), though this figure varies widely depending on where you live, how old you are, your driving history, what car you drive, how many miles you typically drive, and even your credit score. If you get a traffic ticket or minor fender bender involving insurance, you may see your rates go up next time your bill is due. Fortunately, you can switch to another provider if the new policy costs exorbitantly more, though you have other options available if most insurance providers quote you around the same price. Rather than shrugging off the cost of the premium hike, here … Read more

Jumbo Mortgage 101 – What You Need to Know: Definition, Rates, and Limits

mortgage

What happens if you find your dream home, but you’ll need to borrow more than half a million dollars to finance it? Even after the 2007/2008-era housing market crash, it’s still possible to access jumbo mortgage loans for pricier properties. However, you’ll likely face more restrictive borrowing requirements than you would with a conventional mortgage loan. Jumbo Mortgage – What You Need to Know While jumbo mortgages can be riskier for lenders, don’t let the name and tighter lending requirements deter you from a potentially favorable loan to finance your next property. What is a Jumbo Mortgage? Simply put, a jumbo loan is a type of mortgage financing that exceeds the Federal Housing Finance Agency’s (FHFA) maximum conforming loan limits, … Read more