Personal Finance

Here’s What The CARES Act Could Mean For You

April 3, 2020 By Tamila McDonald Leave a Comment

With the financial impact of the coronavirus (Covid-19) tearing at the very fabric of our economy, many Americans are in search of relief. The government has finally passed a $2 trillion dollar stimulus bill that will go a long way in helping not only businesses, but individuals and families alike. If you are need of some assistance, here’s what the Coronavirus Aid, Relief, Economic Security (CARES) Act could mean for you.

You Get A Check and You Get A Check and You Get A Check!

The CARES Act will provide economic impact payments to millions of Americans suffering from the impact of the Coronavirus. The amount of the checks will be $1200 for individuals, $2500 for couples and $500 per child. In order to be eligible for the funds, you must have filed your income taxes. If you haven’t filed in 2019, the IRS will use your tax information from 2018.

In order to receive the full amount of the stimulus check, you can’t have an adjusted gross income (AGI) more than $75K per year. A couple can’t have an AGI more than $150K per year. For taxpayers that exceed these limits, the amount will be reduced with a phase out at $99K for individuals and $198K for couples.

Unemployment Boost and Help For Freelancers and Gig Workers

When the unemployment numbers were reported on Thursday, the numbers were over 6 million. With so many people out of work, the CARES Act has provided relief with additional boost of $600 per week to unemployment benefits. This money is available on top of the regular unemployment benefits provided by your state. The boost is available until July 31st, 2020.

There is also expanded eligibility for unemployment for independent contractors, gig workers, part-time and furloughed employees that are unable to work due to the coronavirus. You’ll even be covered if you recently started your job, but due to the pandemic now find yourself out of work.

If you’re under one of these categories, you’ll receive 50% off the unemployment benefits, plus the $600 boost per week.

Small Business Help – Paycheck Protection Program

If you’re running a small business and are in need of help to ensure you can keep your employees. The Payment Protection Program could be an option. The program is available to small businesses with less than 500 employees who were in business prior to Feb 15, 2020 and paid salaries to their employees as well as payroll taxes. This includes payments to independent contractors.

The loans may be used to cover operating expenses, payroll and interest on debts that were incurred prior to Feb 15th, 2020. Applications are being accepted as of today. At the time of this publication, only Bank of America was actually processing these loans.

A small business can borrow as much as 2 months of payroll costs based on last year’s payroll, plus an additional 25%. Payroll is capped at $100K and the overall loan amount can’t exceed $10 million dollars. Even better news, the loans under certain circumstances, can qualify for forgiveness.

Oh, Those Student Loans

Many consumers have found themselves drowning in massive debt due to student loans even before the coronavirus hit. The CARES Act has made provisions for student loan debt as well as well. Student loans owned by the Department of Education have been suspended until September 30th, 2020. This includes wage garnishments and collections. The loans also won’t accrue any interest during the suspension.

Unfortunately, if you have private loans; you’re not eligible for suspension.

What is the biggest benefit that you’ll receive from the CARES Act? Please let us know in the comments below.

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How To Send Your Kids to Summer Camp for Free

March 27, 2020 By Tamila McDonald Leave a Comment

For many children, summer camp is the highlight of their year. They get to spend time with kids their age. They can take part in fun activities. And learn along the way. Plus, summer camps are great for working parents. It also ensures their child is taken care of and entertained when school isn’t in session. But, in many cases, summer camps are expensive and can be unaffordable for a number of households. Luckily, that doesn’t have to be the end of the story. There are ways to send a child to summer camp for free. Here are some options worth exploring.

Ask About Summer Camp Scholarships

Even higher cost summer camps may let some children attend for free. Through their scholarship programs, students who qualify might be eligible for free financial aid that covers the cost of the camp.

Typically, any scholarship funds are given out on a first-come, first-serve basis from the pool of qualified applicants. Additionally, they aren’t always widely advertised. You may need to contact the camp’s director to learn more about any scholarship programs, and it’s wise to do so as soon as possible.

Community Organizations May Offer Summer Camp For Free

Some community organizations, such as the YMCA and the Salvation Army, have tons of low-cost programs, including day camps and overnight camps. Both the Boy Scouts and Girl Scouts operate camps, many of which cost less than commercial versions.

Additionally, many community organizations have financial assistance programs that help alleviate the financial burden of sending a child to camp for low-income households. Eligible families usually qualify for at least a cost reduction according to a sliding scale. However, there can also be some locations or programs that could end up free. Ultimately, it doesn’t hurt to see how low the price can go through community organizations, as you can always make a decision about whether you want to send your child after you find out.

Consider Religious Summer Camps

If you attend services at a church, synagogue, mosque, or another place of worship, you may have access to a summer camp through that organization. Some of them also welcome children from families that aren’t associated with the faith-based community.

Many of them operate religion-oriented programs for kids, such as vacation bible study school. However, they can also focus on other activities. Low-income families may qualify for financial assistance or may be allowed to send their children for free.

Don’t Overlook City and State Programs

Many local and state parks programs operate summer camps every year. Like many community organizations, the cost of the camps tends to be lower than many commercial alternatives. Additionally, lower-income households may be able to send their children for free.

You’ll want to check with your city and state parks and recreation departments to learn about any camps that may be available. If you find a solid option, request financial assistance (if available) as soon as possible. Usually, funds are provided first-come, first-serve, so you want to apply quickly.

Look for Sibling Discounts

If you have more than one child and can’t shoulder the cost to send them all to camp at full price, don’t fret. Some camps off sibling discounts, reducing the cost-per-child. At times, they may even let your one of your children attend for free, especially if your family is larger or they have participated in the camp before.

Sibling discounts are usually standardized and may be advertised on the camp’s website. If you don’t find details, reach out to the camp director. Often, they’ll be able to tell you about any options that may be available.

An Important Note About Summer Camp Discounts

In nearly all of the cases above, eligibility requirements can vary dramatically from one camp to the next. Every camp has the ability to set its own pricing structure and determine who may qualify for aid or discounts. There aren’t necessarily required to follow the same rules across organizations.

Additionally, the qualifications may shift from year to year. Since funding for cost-reductions may be donation-based, the amount of money available can change. As a result, camps may have to adjust their financial aid approach accordingly.

If you want to benefit from a program, apply as early as possible. That way, if you’re eligible, you’re more likely to be able to send your child to summer camp for free.

Do you have any other tips that can help parents save on the cost of summer camp? Let us know in the comments below.

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Should You Buy Your First Home After Age 60?

March 25, 2020 By Tamila McDonald Leave a Comment

Not everyone becomes a homeowner during their 30s, 40s, or even 50s. Some people wait intentionally while others don’t find themselves in the position to take the leap until they pass age 60. But many of them wonder, “Should you buy your first home after age 60?” If you fall into that category, here’s what you need to know.

You’re Never Too Old to Buy a House

First and foremost, there’s no cutoff age for buying a home. A bank won’t automatically prevent you from getting a loan just because you’ve reached Social Security age or using money from a 401(k) or IRA disbursement to make your payments. As long as you can afford the down payment and mortgage (or the full purchase price outright), your age typically won’t be a factor.

But You Do Want to Consider Mortgage Options Carefully

Unless you’re buying a house with cash, you’re probably going to use a mortgage to make your home purchase. If that’s the case, then you need to weigh your options carefully, especially if you are over the age of 60.

After all, mortgages can last up to 30 years. If you’re 62 today and follow the regular payment schedule, you won’t be done with your mortgage until your 92. That may not be ideal. You’re committing a ton of your retirement savings to that loan, and it may leave your account pretty depleted toward the end.

Deciding Whether Buying Is Right for You

Whenever anyone buys a house, regardless of their age, they have to determine if it’s the best financial move for them. Along with mortgage payments, homes also come with a ton of expenses. Maintenance and upkeep alone can get extremely costly, so it’s important to factor that into the equation. Plus, you need to review how certain recurring expenses may change – like homeowner’s insurance and utilities – as they impact your budget.

But it’s also important to recognize that the overall price isn’t the only factor. You have to decide if owning a home aligns with your ideal retirement vision. A house is a commitment. For some, it gives them a sense of security. They enjoy being homebodies, so having a space that’s entirely theirs is how they envision their golden years. Also, they don’t mind the maintenance, as they find activities like gardening peaceful.

Ensure A House Won’t Be An Anchor

For others, a house is more like an anchor that drags them down. It may make traveling harder or prevent them from moving to a new location with ease at another time. The maintenance is a chore or is generally too difficult to shoulder.

At times, it may make transitioning into an assisted living or care facility cost-prohibitive, even if it would be the best choice. If they can’t sell, they simply might not be able to afford it.

Ultimately, if buying a house is going to give you the life you want without depleting your retirement account, then it can be a good move. But it isn’t a necessity. Renting can give you a sense of freedom, so that’ll be better for some people. In the end, the decision of whether to buy your first home after you pass age 60 is yours, so do what feels right to you.

Do you think it’s wise to wait to buy your first home after age 60? Why or why not? Should your thoughts in the comments below.

If you enjoy reading our blog posts and would like to try your hand at blogging, we have good news for you; you can do exactly that on Saving Advice. Just click here to get started.

How Do You Budget With Irregular Income?

March 25, 2020 By Trey LaRocca Leave a Comment

Sometimes it feels like the only thing I write about is budgeting. This is something I am extremely proud of. Budgeting is one of the most valuable disciplines one can master in life, and it can bring balance and peace to so many other aspects of life. Some people, though, struggle to get a solid monthly budget plan because they have no idea when or what they will be paid. Commission workers, small business owners, and independent contractors all have widely varying payment schedules and amounts. This can cause stress when coming up with a monthly budget when there is no real solid “monthly income” figure. No need to fret, though; we are here to help. there are ways to strategize and work around this obstacle, and we have some ideas. So, without further adieu, this is you budget with irregular income.

Cost Deduction Method

The Cost Deduction Method is really a fancy name I am using to flip the roles on traditional budgeting. Where your monthly income is usually the anchor to your budget, cost deduction makes your monthly expenses the new focus. Instead of subtracting figure after figure from your monthly total income, you add up your expenses starting with your needs. The way this works in practice is you mark down the bare necessities, and you dedicate all of the money you make to those until your income surpasses them. After which, you check those off. Then, as the income starts to move past those expenses, you move to the traditional strategy of deducting from income, except you use the difference between the cost of your needs and your total income for that month.

Priority List Method

This one is much simpler. The priority list method involves making a list, in descending order from most important to least important, and marking down their costs next to them. As your income comes in, you start to check things off of that list, and you stick to the order. The great thing about this method is that you organize your priorities when you are in a logical and rational mental space. After doing this, it is pretty much on autopilot. You have already decided how you are going to spend your money, and once you have exhausted the list, everything is extra to be saved! This one is similar to the first in the sense that you are using expenses as your anchor point, which takes the stress out of trying to predict what your monthly income will be.

In Summary

Despite the fact that there are only two options here, I really think there is something for everybody. Budgeting should be simple, and these are two very simple ways to get it done. I’m not going to try to make you do financial gymnastics, as that is really the fear assigned to budgeting in the first place. Just pick a method, and let the tools do the work. This will make your finances feel much less unpredictable, and bring a lot more stability in your life.

Want to Save Money on Your Electric Bills? Follow These 3 Tips!

March 24, 2020 By Trey LaRocca Leave a Comment

Depending on where you live, your electric bill could vary pretty widely. For many in the US, though, it becomes a major burden on a monthly budget. With summer coming down the line, a triple-digit bill in the mail is a reality for a solid portion of the population. With so many looking down the barrel of this issue, it is important to know how to cut these costs without living like a caveman. We don’t want anyone sweating like mad in their living room, and we aren’t gonna have you unplug everything in your place when you aren’t using it. With that said, here are our 3 tips on how to save money on your electric bills:

Get a Smart Thermostat

This one benefits you in two ways. The first is that many electric and gas companies will give bill credits for customers that buy a qualifying smart thermostat. These credits can pay for a substantial amount of the cost incurred by getting the device, and make sure to check how and if your providers participate in this kind of program before buying. The second way is the more obvious one: they are smart. These thermostats give you the ability to change and monitor home temperature from anywhere. They also often use a function that automatically turns off your climate control when you get far from home and turn it back on when you get back inside of the “geofence” radius. All of these functions work in the background to save you money on your electric bills. Not only are smart thermostats convenient, but they also save you some serious cash.

Use Your Windows

Sometimes when your house gets a little stuffy, it is still reasonably comfortable outside. The instinct to hit the thermostat is a strong one, but before you do, pop outside for a second. If it is still pretty nice and cool outside, consider just opening windows and sliders to get some airflow in. Use a fan in or near one of these windows, and see if that does the trick. Oftentimes this will serve the same purpose as the AC without the same hit to the budget. Not only that but it also just feels better to get some fresh air in the home, as stagnant air can often feel far more stuffy and muggy than what comes in from the window.

The “Dark Hour”

A really useful technique, financially and otherwise, is to take an hour every day to turn everything off. If it has to happen at night, a light or two is fine. The point of this time is to get off the screens, shut down all the tech and sit and enjoy your family. If you live alone, take some time to read a book or clean the place up a little bit. Hell, shut off the lights in the bathroom and take a relaxing candle-lit bath and just relax. This can be beneficial in so many different ways, so much so that the financial benefit is really just a bonus. this one is my favorite, as it costs nothing and really helps you connect with yourself and your family.

Never Pay Full Price For a Cell Phone Again With These Tips

March 18, 2020 By Trey LaRocca Leave a Comment

Cell phones are extremely important devices in this day and age. Sometimes it can feel like our entire world revolves around our phones. Work, school, friends, and family are all readily available at the touch of your finger. This makes having a reasonably current phone pretty dang important. The struggle here, though, is that you are often forced to pay out the nose to get a new phone. So, how do we make sure your phone is current and wallet-friendly? Here are the best tips to make sure you never pay full price for a cell phone again.

Used Market

Just like any tech purchase, the used market is a great place to start. Oftentimes, you don’t need the newest phone to stay current, and you can absolutely land a very similar experience from a generation older. This opens the door to great prices on the used market, where you can easily save half the cost of a new phone. Make sure you buy from sellers with good reputations on whatever marketplace you use, and verify the phone works before sending any sort of payment. This will ensure you get the best value without having to pay any installments on the phone itself. the best part about this one is you can always sell the phone for pretty close to the price you purchased it if you don’t like it.

Holiday Deals

Patience is a virtue, and you should use this to your advantage. Cell providers almost always have new-plan discounts around the holidays, and they can be very aggressive. So, if you are making your purchasing decision, and you have the ability to wait until the nearest holiday, definitely do so. This will allow you to roll the phone’s value into your cell payments if you don’t have the cash on hand. It also means you’ll have a brand-new phone, which matters a lot for some people.

Phone Leasing

Leasing is a touchy subject for most financially-inclined folk, but I think a phone is a perfect lease. It isn’t something people tend to hold onto for more than a couple of years, and the lease allows you to pay far less each month to own the phone for as long as 2 years before upgrading. The great news is, they don’t tend to require down payments. After your 2 years, you could easily find the next new phone for a similar payment, making the next update move a lot smoother.

At the end of the day, there are a lot of great ways to accomplish your goal here. With these tips, you definitely should never pay full price for a cell phone again. Just be smart, keep your eye out, and utilize patience when making any buying decisions. All of these together, as well as knowing what you need out of your phone, will ensure that you never pay more than you should.