Ways to Pay Off Your Debt so You Can Afford to Move Out

More and more young people are living at home to save money. This is a smart move, especially if you’re struggling to pay back common debts like credit card or student loan debt. A recent study from the Pew Research Center shows that 33% of 25-10-year-olds live with their parents. This is the highest this number has ever been, and it shows just how expensive housing costs nowadays.

 

However, there comes a time in every young person’s life when it’s time to get out on your own. If you’re on the road to moving out, you’re probably looking for ways to pay off your debt so you can afford to move out. In this guide, we’ll list the most effective ways to pay off your debt quickly so you’ll be on your own in no time.

 

 

1. Pay More Than the Minimum

The first and most effective way to get out of debt faster is to simply pay more than the minimum payment on your debts. It’s easy to fall into complacency by only paying the minimum, but you might not be paying down more than the interest when you do this.

 

If you want to get out from under your debt so you can move out, you need a more aggressive approach. Since you’re living at home, you’re likely saving big on housing costs. Put all of this extra savings towards your debt payments to see massive improvements.

 

2. Use the Snowball Method

The debt snowball method was developed by Dave Ramsey, and it’s a highly effective way to tackle your debt without getting overwhelmed. Using this method, you start by listing all of your debts from smallest to largest.

 

Once you know all of your debts, you start aggressively paying the smallest balance first. Continue making minimum payments on your larger loans, but really focus on that small balance. Once you’ve paid off your smallest balance, move to the next smallest balance, and so on. Do you see how this starts to “snowball” over time?

 

You’ll be motivated by your achievements every time you pay off a debt, no matter how small. It’s this motivation that makes the snowball method so effective.

 

3. Choose a Side Hustle

Side hustles are on the rise today, and with good reason. The average pay isn’t rising nearly as quickly as the costs of living in many places, so young people are looking for new ways to fill in the gaps in their income.

 

Luckily, thanks to the internet, it’s never been easier to make money on your own time. Even if you can’t pick up an extra part-time job, odds are you can find a way to make money online. You can sell a craft, deliver food on Uber Eats, or even work as a freelancer selling your skills online. Putting this side hustle money towards your debt will yield fast results.

 

4. Negotiate Your Bills

Are you drowning under too many expensive expenses? Did you know you don’t have to accept these bills for what they are? It’s true. If you’ve been a responsible consumer and you’ve paid your debts and bills on time, you have room for negotiation.

 

Talk to your credit card company about lowing your interest rates. If you’ve always made payments on time and if you’ve improved your credit score since you first applied, you’re in a good position to get a lower rate.

 

The same goes for your bills. By calling your cable company, for instance, you can likely negotiate a lower rate, especially if they have any specials going on. You won’t know if you don’t ask, so why pass up free money you could put towards your debt?

 

5. Do a No Spend Challenge

Do you pay close attention to the small things you spend money on every day? If you’re like most consumers, you probably don’t. Those small coffee runs and lunches out add up quickly.

 

Challenge yourself to a “no spend” month. That means that throughout the month, you won’t spend any more than your allotted budget. You’ll pack lunches for work or school, you’ll bring coffee from home, and you’ll find free activities on the weekend. If a month sounds too intimidating, just start with a week.

 

Not only can you put these extra savings towards your debts, but you’ll also have a clearer picture of the spending you do every month. You might learn about some unhealthy money habits that you can change for the future.

 

Working Towards Moving Out

Are you looking for ways to pay off your debt so you can move out? This list is a great place to start. As long as you have a debt payoff plan that works with your budget, you can be in your new place in no time.

 

From side hustles to no spend challenges, it’s all about being smarter with the money you have. While the costs of housing are on the rise, you can still live a cheap lifestyle without any compromises. Once you’ve paid off your debt, you can use this money you’ve saved for a down payment on a home or for your security deposit if you plan to rent. The possibilities are endless.

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How To Have Great Open House Etiquette

Open houses are a great way to show off your home and generate more interest from buyers. This gives people the opportunity to walk through your home, get to know the area, and decide whether or not they are interested in making an offer.

 

However, while open houses are a great selling tactic, they can also do more harm than good. Sellers who don’t know how to properly hold an open house can end up turning away buyers rather than increasing interest in their home.

 

Fortunately, open house etiquette is easy to learn. By following a few simple tips, you can ensure that your viewers have a good experience at your open house.

 

Food & Drinks

When holding an open house, it’s always a good idea to offer a variety of food and drinks to help your guests feel more comfortable when touring your home.

 

You don’t have to feed every guest an entire meal, but you should be sure to provide enough food for everyone who visits. Some suggestions include:

 

• Vegetable Platters
• Charcuterie Boards
• Tea, Coffee, and Water
• Cookies
• Fruit

 

By providing food and refreshments, you can help potential buyers have a much more enjoyable open house experience.

 

Avoid Strong Scents

It’s common for sellers to prepare their home for an open house by lighting candles, using air fresheners, or using other products to try to make their house smell good.

 

However, using strong scents can be incredibly irritating to buyers and can turn them away from your home. Instead of adding scents, you should deodorize your home.

 

Keep Pets Out of Sight

It’s no secret that not everyone is comfortable around pets. Whether they are scared of animals, have allergies, or simply don’t like animals, buyers can be very bothered by pets.

 

When holding an open house, it’s important to ensure that any pets are kept out of sight so that they can’t make a mess or irritate viewers.

 

If you do have any pets, learn how you can occupy your pets during a showing.

 

Clean and Declutter

Cleaning your home thoroughly should be an obvious step before holding an open house.

 

In addition to cleaning, though, be sure to declutter as much as possible. The focus should be on your home itself, not your furniture, personal belongings, or decorations.

 

Getting rid of clutter can depersonalize your home so that buyers can see it as their own.

 

Landscaping

Lastly, be sure to prepare the exterior of your home before holding a viewing.

 

Your home’s lawn and entryway are the first things potential buyers will see, so it’s important to leave a good first impression. You don’t have to go overboard, but you should be sure to mow the lawn, get rid of dirt and debris, and decorate your entryway modestly.

 

It’s important for any seller to learn proper open house etiquette. By following these tips, you can hold a successful viewing that is sure to encourage offers from interested buyers.

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The Top 5 Qualities Of A Good Neighbor

One of the few things you need to be conscious of when getting a real estate property is your neighbor. They can make your experience your new home worthwhile or challenging. As a result, you need to always hope for the best neighbor that would not only help you socialize better but would also improve your cost of living. No matter what, here are five qualities of a good neighbor.

 

 

Good Neighbors are Noise Conscious

Will you want someone to disturb you with noise when you are reading or sleeping? No! You won’t. To any of the activities mentioned above, you would probably find a quiet place.

 

As a good neighbor, you need to be noise-conscious because your noise could disrupt the activities of people around you.

 

If you are planning of hosting a loud party, it is advisable for you to contact your neighbors and keep them informed before doing so. You should also avoid playing music at very high volume during the night or mowing your law in the early hours of the day like 5am.

 

 

Good Neighbors are Friendly

One thing that differentiates a good neighbor from a bad one is the friendliness. Well, you might not care about making friends with them. But the fact that your neighbors smile at you while driving will give you a form of security in the compound.

 

Well, won’t you feel insecure or awkward if all the neighbors give a grumpy face at you when you first enter the community? However, the fact that a neighbor is grumpy doesn’t mean you should give up on him. Smile at him and say hello. You do not know may this gesture would create some sort of relationship with you.

 

 

Cleanliness Determines your Health

Not everyone likes a messy compound or neighbors. They believe that the neatness of a compound has a lot to do with other compounds in the neighborhood.  I am sure you won’t want to be considered a bad neighbor because of your messy house. Well, this is also true based on the general standard of living, which requires hygiene and tidiness.

 

Some of these activities include lawn mowing, clutters removal, regular trimming of the trees, neat environment, among others. Overall, a good neighbor must ensure that all is always free from wastes from the kitchen or other sources.

 

 

Trust is an Important Quality

Neighbors often have some knowledge about what goes on in a particular house. This is because they can hear voices and see who comes and goes out of the house. Basically, they can gossip about what they hear, they would never leak out family secrets to third parties.

 

A good neighbor is expected to be a person who will not compromise your security for his personal gain. In fact, they are always ready to help in time of problems or issues.

 

 

Respect for the Building and People

Respect is one of the hallmarks of a good neighbor. A good neighbor will never leave junks or garbage at the hallways, parking lot or common areas in the neighborhood. The neighbor will also never accumulate junks to the extent that it will disrespect the people around. In addition to this, a good neighbor will handle every situation maturely in case there is a dispute or brawl in the locality.

 

While you need a good neighbor, you also are not expected to act in such a way that you will fall short of your expected qualities. Always work hard to ensure that you connect with your neighbors and relate

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How Much of My Income Should I Budget for My Rent or Mortgage?

Whether you’re renting or buying a home, you need to be careful with your monthly budget. Budgeting is one of the best ways to manage your finances, and that means keeping track of your monthly income and expenses.

 

One of the biggest questions when it comes to budgeting is how much to spend on housing. A lot of people are asking themselves, “How much of my income should I budget for my rent or mortgage?” If you’re asking this question, you’ve come to the right place. As the costs of rent and mortgages go up across the country, it’s time to answer this question once and for all.

 

 

The 30% Rule

If you’ve tried to rent an apartment recently, you might have come across the 30% rule. This rule states that your rent can’t exceed more than 30% of your monthly income. Using this rule, you’d need an income of over $3,333 a month to afford a monthly rent of $1,000.

 

Where does this rule come from? It’s actually been around since the 1980s. In 1981, the U.S. government agreed that spending over 30% of your income on housing makes you “cost burdened.” Those who spend over 50% of their income on rent are considered to be “severely cost burdened.”

 

This doesn’t just apply to rent. The same 30% rule applies to mortgages as well, and this monthly payment will be taken into account when you apply for a mortgage. However, as you might realize, the world isn’t so cut and dry. There might be instances where you can’t afford your housing payment to be 30%, and there are also situations where you might be able to pay more.

 

When Can You Pay Over 30%?

According to some money experts, there are instances when you can afford to pay more than 30% of their income on rent or a mortgage payment. It all comes down to what you owe. If you have no debt, you can pay as much as 41% of your income on housing.

 

The opposite is also true. If you’re currently struggling with debt or recovering your credit score, you might not be in a position to afford to pay 30% of your monthly income on housing.

 

Another popular guideline for paying housing costs is known as the 28/26 rule. In this rule, you should spend no more than 28% of your gross monthly income on housing costs and no more than 36% of your income on total debt. Ultimately, everyone’s financial situation is different, and there’s no single answer for how much you should pay on your rent or your mortgage every month.

 

How to Determine How Much You Can Pay on Housing

Since everyone’s situation is different, let’s talk about how to decide just how much you can afford to pay. Follow these steps to create your own housing budget.

 

• Check for rules. First, if you’re applying for a rental home or a mortgage, check for any rules about just how much you need to afford. This should guide your process. Many landlords and mortgage companies uphold the 30% rule.
• Calculate your income. Next, determine just how much money you bring in each month. If you’re married or living with someone, calculate their income as well.
• Subtract monthly expenses. Subtract all of your monthly expenses outside of your housing. Include things like insurance, food, transportation, etc.
• Subtract debt payments. Subtract any debt payments like credit card payments, student loans, and so on.
• What’s left? Now, you’re left with any remaining funds that you have after all other expenses have been calculated. How much of this remaining income can you afford to part with each month?

 

There are always ways to make housing costs more affordable. You could find a roommate, rent a room, or downsize. Finding a home or rental you can afford is a major step to finding financial freedom.

 

Final Thoughts

Are you wondering how much you should budget for your rent or mortgage? If so, you’re not alone. It’s not always clear just how much you need to save for your housing payment each month.

 

Hopefully, this guide will help narrow your search when looking for a rental or mortgage. Now you know just how much you can afford to stay on top of your financial goals.

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Things to Consider About a Neighborhood Before Buying

Finding the perfect home in the ideal neighborhood is no easy feat, especially if you’re not familiar with the area. It can be especially hard to decide whether a neighborhood is for you if you’re relocating from out of town.

 

Due to the Fair Housing Act of 1968, real estate agents are limited in what they can tell you about a neighborhood, and prefer to stick to the facts of the property only. This is because there are laws against what agents can share with buyers, in order to reduce discrimination against certain protected classes such as race and religion.  The responsibility, therefore, falls to the buyer to conduct their due diligence on the neighborhood they are interested in.

 

Here are five things to consider when deciding whether a neighborhood is for you.

 

 

Is It Safe?

Your home should be a safe haven away from the outside world, but if you decide to buy in a neighborhood that doesn’t offer you this security, you could end up bitterly regretting your choice.

 

There are several tools to utilize in order to decide if a neighborhood is safe by your standards. Websites such as CrimeReports gather police and crime report information for the public to view. Simply go to the site and type in your potential address to view all of the crimes that have been committed in your new neighborhood.

 

Other websites such as Neighborhood Scout also allow you to compare various crime rates of areas to your current neighborhood; this can help you to decide if you will feel safe enough.

 

 

Get A Feel For The Area

Visiting an area during the middle of the day can be a very different experience to going there once darkness falls. To get an accurate picture of the neighborhood you’re planning to move to, try and visit it more than once at different times of the day. You will also get the opportunity to see how well maintained the community is and if you feel safe walking around there.

 

The weekend can be a great time to get a realistic picture of an area, as there are usually residents out and about that you can chat to. These are the best people to give you advice and information on the neighborhood and what they like about it.

 

 

 

What Is The School Zone Like?

When it comes to resale value, one of the essential factors that affect the price of a home is the school zone it falls into.  Even if you don’t have children, you should still consider the school district you’re buying in to.

 

Websites such as Great Schools are excellent resources that enable you to look up school rankings, as well as test scores and student to teacher ratios.

 

It is prudent to note, however, that while school zones are usually a good indication of a neighborhood, they are fluid and can change with each new evaluation a school receives.

 

 

What Is The Walkability Like?

Walk Score is an excellent online resource that ranks the walkability of over 3,000 cities and 10,000 neighborhoods. They score aspects of areas such as proximity to local amenities and entertainment, as well as traffic patterns and access to public transport. If walkability is important to you, you need to determine how walkable your new neighborhood is — before you buy a home there.

 

 

Learn The Dynamics Of The Area

Taking the time to understand the dynamics of an area can save you a lot of buyers remorse in the long-term. Website such as AreaVibes can help you to find neighborhoods that have aspects you prioritize, for example, if you like spending time outdoors you might choose a community that has plenty of recreational areas around it.

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Things To Consider Before Turning Your Home Into A Rental

If you want to move soon, you may want to consider turning your present home into a rental property instead of selling it. Having a rental, otherwise known as an “investment property”, can be extremely beneficial.

 

If you are looking to turn your primary residence into a rental or investment property, here is a list of things that you should consider first:

 

 

1. Do You Want To Hold On To Your Home’s Value?

When people move from one house to the next, they will typically take the equity from one home that they’ve accrued over the years and apply it to buying the next one. One of the main reasons that homeowners decide to turn their homes into rental properties is that the housing market has lowered their home’s value.

 

By continuing to rent out a home that is at a lesser value, you can hope that the home’s value will rise over the time it is a rental so that you can eventually sell it for a good price. This is a great way to keep afloat when the market isn’t looking so hot.

 

 

2. Do You Want Some Extra Income?

One of the other main reasons that homeowners decide to turn their homes into rental properties is so that they can make some extra income. Many homeowners find excellent returns on investments.

 

The cool thing about turning a primary residence into a rental property is that you can retain the low interest rate that you likely obtained when purchasing it originally.

 

 

 

3. Do You Want To Save on Capital Gains?

Because the government wants to promote homeownership, they have created many tax exemptions that allow homeowners to sell their homes without paying taxes on the capital gains.

If you’re single, you can save yourself from paying taxes on up to $250,000 in gains. If you’re married, that number moves up to $500,000

 

Unfortunately, to take advantage of these massive savings, you must have lived in your home at least two out of the last five years. If you turn your home into an investment property instead of selling, you may be missing out on a huge pot of money.

 

 

Conclusion

If you are planning on turning your house into a rental property, here are a few action items that you need to take into consideration before you finally jump the gun.

For starters, figure out the equity in your property. Would it be more reasonable for you to take in some rental cash flow or wait to build those capital gains?

Secondly, are you looking to increase and expand your revenue streams or do you want to keep things straightforward?

 

Thirdly, try and determine where the market is headed in your area. Will you be able to make a good income by renting your property out because the area is on the rise or do your foresee an economic decrease?

We hope that this article has given you the necessary motivation to take the plunge and turn your home into a rental property! Have you had any experience with renting a property in the last? Let us know about it in the comments!

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Questions You Should Ask Before Buying a House With a Friend

Buying a home with a friend can be an exciting idea. Why wouldn’t you want to live with someone who you get along really well with?

 

While living with a friend can be a great experience, it can just as easily be a very poor experience. People often find that their best friends aren’t the best roommates.

 

Whether your friend is messy, irresponsible, inconsiderate, or isn’t able to pay rent, buying a home with a good friend isn’t always as great as it seems.

 

In order to make sure you and your friend are a good match, you should be sure to ask these questions before buying a house together.

 

What is Your Current Career and Financial Situation?

It may seem strange to talk to your friend about the details of their career and finances, but it is an absolute necessity if you plan on buying a home together.

 

Purchasing a home with a friend is a big investment. You want to know how much money your housemate makes, where that money comes from, and if the source of their income is stable.

 

Knowing each other’s financial situation will help you get a realistic idea of what you can afford and ensure that you don’t end up having to pay more than your share of the mortgage in the future.

 

How Should Chores be Divided?

You’d like to think that adults who are ready to buy a house could also be trusted to clean up after themselves and maintain your home’s appearance. However, this isn’t always the case.

 

It’s important to talk to your friend and come to an agreement regarding household chores and maintenance. Who is responsible for what?

 

This might not seem particularly important before buying a home. However, it can be very difficult to live with someone who expects you to do all the housework on your own.

 

What Are Your Wants and Needs?

You and your friend have likely already talked about the basic factors and amenities you’re looking for in your new home.

 

But it’s important to take it a step further and create a checklist for each of your wants and needs. This should include everything from location, amenities, size, architecture style, and more.

 

If you haven’t already talked through these details, you’ll be disappointed when you find the house of your dreams and your friend isn’t on board.

 

Have You Been Pre-Approved for a Mortgage?

Have you and your friend been pre-approved for a mortgage?

 

You and your friend can start the buying process by independently getting pre-approved for a mortgage and combining your approval amounts to get a good idea of what you can afford. This can also help you understand what your monthly payments might be.

 

Of course, you’ll typically have to get approved as co-borrowers on a single mortgage in the future, but pre-approval is a great first step.

 

What Happens If One of You Moves Out?

Lastly, what happens if one of you decides to move out?

 

It’s important to come to an agreement on what to do if either you or your friend decide to move on. Buying a house is a long-term investment, so you can’t always be sure that you and your friend are in it for the long haul.

 

It’s important to discuss this now so that you aren’t in a rush to decide what to do in case one of you makes the decision to leave.

 

By following these tips, you can buy a home with your friend with more confidence and clarity.

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