5 Tips That Will Help You Take Better Control of Your Personal Finances

By on July 19, 2019

The first time you ever get paid for the work you put in is an incredibly rewarding experience.

Suddenly, you realize that all those years of studying and preparing yourself to become a member of the workforce have paid off because your performance has been deemed good enough to warrant compensation.

You may be tempted to celebrate to your heart’s content with that first paycheck, but of course, that’s not exactly the responsible way to handle things. As the person in charge of your own money, you must handle and manage it carefully.

Financial experts such as Trout Associates can offer all kinds of personal finance tips that should prove helpful. For this article, you’ll be learning more about the fundamentals – the basics of personal finance that will help you get on the right track and stay there.

Without further ado, it’s time to check out the tips that will help you stay in good financial shape long-term.

1. Set Money aside for Your Living Expenses

The first thing you need to do in order to get your personal finances in order is to create a budget. This budget should account for all the things you have to spend on to get through every day.

Save some money for your groceries or trips to the farmer’s market if you want to eat healthier.

If you have a car, make sure that there’s money earmarked for gas. For those planning to take advantage of public transportation, you can set aside a little less and save more money in the short-term.

Don’t forget about those bills that you have to pay at certain times over the course of a month. Be as detailed as you can be while putting together your budget because you don’t want to be short on cash when an important payment is due.

2. Stay Committed to Paying Off Your Debts

Taking out loans is almost a rite of passage among members of the working world. Student and auto loans are among the types of debts that many people have.

Having debt is no issue, but being unable to pay it off is a different matter altogether.

As soon as you start earning a set salary, make sure that at least some portion of your paycheck goes towards your total debt. Try to pay more than the minimum amount if you can afford to as well.

If you want to make things less confusing, you can also opt to consolidate your debts. That move is worth considering if you can secure a low-interest debt consolidation loan and have enough cash coming in to cover the scheduled payments, according to Nerd Wallet.

3. Manage Your Credit

Another reason why it’s a wise move to pay off your debts is because that can positively impact your credit rating.

In the event that you need to take out a larger loan to purchase your dream home, having bad credit can really make things more difficult. You may only be offered high interest rates together with a mortgage loan or you may even have to provide collateral. Some people with truly poor credit may not even be offered a loan at all.

Experian has a handy guide you can use to determine what kind of credit score you can have. Adopt the financial habits necessary to keep your credit score in the “good” range at the very least, because anything worse than that can spell bad things for your financial future.

4. Save for Emergencies and Retirement

Emergencies will inevitably happen.

Hopefully, it’s something relatively minor in the grand scheme of things like your car breaking down instead of you needing a trip to the hospital. In any case, you should have some money set aside for those rainy days.

While crafting your budget, make sure that at least some of your money is going into an emergency fund. That way, no emergency will catch you completely off guard.

It’s also a good idea to start saving as early as you can for retirement. Per CNN Money, financial planners urge people to save at least 10 to 15 percent of their income and put that money into a retirement fund.

5. Invest in Insurance

Considering that you’re already being asked to create a budget, pay off debts, set aside money for emergencies and retirement, you may think that you can just skip insurance for now, but that wouldn’t be a wise move.

By securing health insurance, you can save a significant amount of money on your medical bills. You may not even have to use your emergency fund. Renter’s or homeowner’s insurance can also help you out of some potentially tight spots that could have otherwise exhausted your current finances.

By tightening your belt a little further and paying for insurance today, you can avoid having to drain your bank accounts in the future if something unfortunate happens.

Authorities in the financial industry such as Trout Associates understand how difficult it can be for people to manage their personal finances, but it can be done. As long as you stay smart, disciplined, and determined, taking control of your personal finances should not prove to be an overwhelming endeavor.

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Interstate Associates Shares What You Need to Know About Purchasing a Home When You Have Credit Card Debt

By on July 17, 2019

It is possible to buy a home if you have credit card debt. However, lenders will want to make sure that it doesn’t interfere with your ability to make a mortgage payment on time each month. Let’s look at what you need to know about buying a home if you owe money to credit card companies.

Be Aware of Debt-to-Income Rules

To have the best odds of obtaining a home loan, keep your debt-to-income (DTI) ratio at 28% or less before accounting for the mortgage. Furthermore, your DTI should be no more than 36% after adding the mortgage to your budget. It is worth noting that you could still get a loan even if you don’t fall within these guidelines.

In many cases, homebuyers seeking FHA or USDA loans can be approved with a DTI as high as 50%. However, this will depend on how much money you make, how long you have been employed and other criteria that a lender feels is relevant when making a loan decision.

Credit Card Debt Can Influence Your Credit Score

Your credit score is partially determined by your credit utilization rate. Ideally, you will use no more than 30 to 35% of your overall available credit, and it is also a good idea to use no more than 30 to 35% of any individual line of credit. When you go above this threshold, lenders may start to doubt your ability to manage debt properly.

Therefore, your credit score will likely be lower than it could be assuming that you make your payments on time and have a sufficient credit history. If you don’t make payments on time, it could have a serious impact on your credit score. In some cases, a missed payment can reduce your score by 100 points or more.

Interest Payments Can Hinder Your Ability to Save for a Down Payment

Financial professionals such as those at Interstate Associates know that credit cards come with high-interest rates. If you have average to poor credit, you could be paying an interest rate as high as 29.99%. This can result in hundreds or thousands of dollars being paid to lenders each year without making much a debt in the principal balance.

If you didn’t have credit card debt, you could put that money away to make a down payment on a home. Although you can get a mortgage without making a down payment, it can cost more to do so. Most borrowers have to purchase private mortgage insurance (PMI) if they don’t put at least 20% of the purchase price down at closing.

Monthly PMI payments are equal to about 1% of the home’s value on an annualized basis. Therefore, if your home was purchased for $100,000, you will pay about $1,000 a year in mortgage insurance. The good news is that someone from Interstate Associates or another financial firm may be able to help you pay off your credit card debt faster and avoid this extra payment.

Credit card debt can make it harder to afford the home that you really want or get approved for a loan at all. In some cases, it can make a home more expensive than you anticipated. Therefore, it is important to take such debt seriously and make a plan to pay it off before looking for homes or applying for mortgages.

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Graylock Advisors on the Basics of Personal Finance

By on July 12, 2019

Unfortunately, our schools don’t teach us enough about personal finance to help us survive in the adult world. Without this knowledge, it becomes all too easy to fall into a bad financial situation. This overview can provide you with the basics, so you can improve your finances, regardless of what stage of life you may be in at the moment.

Build an Actionable Budget

To get started, you have to work out a budget that will work for you. This means writing out your total monthly income and comparing it to your total expenses. If your expenses are more than your income, you either need to reduce what you owe or increase your income. As your situation changes (higher pay, additional expense, etc.), you should work out a new budget that accounts for those lifestyle changes. Instead of making a budget once and trying to force your changing life to fit within it, your budget should be regularly re-evaluated.

Cut Expenses

Even if your budget is fairly comfortable, you can still look for ways to cut expenses. There’s no reason to waste money that you don’t have to spend, especially when that can be put towards your savings. If you stream television online, there’s no reason to maintain cable or satellite service. If everyone in the household has a cell phone, you can also get rid of your land line. There may be dozens of other ways you can cut expenses without really sacrificing comfort.

Pay Down Your Debt

Now, it’s time to look at the amount you owe to your creditors. Imagine how much you could save by eliminating that debt. One of the best strategies for tackling debt is to use the snowball principle, which involves paying off the smallest debts first. As you pay off each debt, use the money you were devoting to that creditor to pay off the next smallest debt. If your debts seem too heavy to tackle, using a debt consolidation service, such as that which is offered by Graylock Advisors, can help you. By using this type of service, you can make your debts more manageable without having to resort to bankruptcy.

Rebuild Your Credit

You have already started to rebuild your credit by paying off what you owe. You can also improve your credit rating by ensuring every bill is paid on time each month. Even accounts that wouldn’t normally be reported to the credit bureaus, such as utility payments, will be reported for being late or delinquent. Another good way to rebuild your credit is to get a secured credit card with a low limit. Since a secured card is linked to a checking account, they’re easier to get and can help you rebuild a positive credit rating.

Start an Emergency Fund

The primary reason people fall into debt is because they get hit with unexpected financial emergencies. Expensive home repairs, car trouble, and medical care expenses are among the top reasons people end up relying on credit to survive. Remember that money you were using to pay off your creditors? Stop spending it. Instead, put it into a savings account and leave it there until you really need it. Finance experts, such as those at Graylock Advisors, recommend saving enough money each month to make your budget feel snug. You shouldn’t be putting away so much that you’re sacrificing the essentials, but you also shouldn’t have large amounts left over to spend, either.

Start a Retirement Investment Account

In addition to starting an emergency savings fund, you should also be contributing to a retirement account. You’re never too young to start investing in your future. You never know when illness or injury will strike and leave you facing a lifetime of healthcare costs. Additionally, cognitive and physical decline happens to everyone, sooner or later. Having a decent nest egg will help you take better care of yourself when you do reach your senior years.

Create an Estate Plan

Consider what you will leave behind for your spouse and children. While most states will distribute your assets among your spouse and children by default, it’s far better to have estate plans in place. This can help you ensure specific assets go to those beneficiaries you choose, such as leaving your home to a spouse. Additionally, a will can help ensure you get to choose who will be appointed guardianship of your minor children.

Arranging for Your End of Life Care

Many people don’t realize this, but estate planning also includes arranging for powers of attorney. Your estate attorney can help you set up a financial power of attorney, who will be responsible for managing your finances in the event that you’re unable to act on your own behalf. Similarly, a medical proxy can help you determine who will be trusted to make your medical care decisions. These documents will go into effect at a time when you may be physically unable to act for yourself, or when you may be mentally compromised. Failing to make these plans in advance may mean letting the courts appoint proxies whom you do not trust.


Using these guidelines, you can begin to create a better future for yourself. While it may take a few years, depending on your current circumstances, following a well-planned strategy can help you improve your financial situation. In just a few years, your economic struggles will seem like a bad dream.

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Benefits of a Consolidation Loan Like Those Offered by Brice Capital

By on June 29, 2019

A life filled with debt is stressful because you never get peace with creditors and debt collectors running after you. As much as you want to pretend that debt doesn’t exist, collectors come to haunt you in the mail, via text, or on your phone. Debt consolidation may just be the answer to this predicament because it lumps your multiple debt into one single, low-interest loan, which also gives you ample time to pay it off. How do you know when this is the right choice? Read below to find out when to consider a consolidation loan.

Quash Those Headaches from Too Many Debts

If you have excessive debts like a mortgage, car loans, student loans, and credit card debt, and you’re having a difficult time paying it off, a consolidation loan is a good option for you. Brice Capital, a private funding firm that specializes in debt consolidation, mentioned that consolidating multiple loans into a single, lower-interest payment plan makes it easier for you to pay all your debt off. Keep in mind that your debt can be significant but it must still be manageable for you, so your consolidation loan can be effective.

Banish Confusion from Multiple Billing Cycles

Having numerous loans mean you also have to keep track of all the details like payment due dates, varied interest rates, companies owed, and methods of payment (ex. check, auto-debit, on-site). Consolidating these multiple sources of debt into one single loan option makes your financial life more organized. One loan translates to one due date, making the task of tracking the monthly premiums easier. Now, you have no more excuse for forgetting to settle that monthly loan payment. 

Benefit from Zero Percent or Low Interest Options

If your credit score is decent enough to warrant a zero percent credit card, then by all means take that chance to consolidate all your loans. Hopefully the zero percent installment payment plan lasts for two years or more. Sometimes, there are low-interest debt consolidation loans offered by banks, which are much better than the higher interest rates you pay with your numerous credit cards. Using this option minimizes the accrued interest over time. 

Access to Proper Cash Flow

Choosing to get a consolidation loan is a smart move, but make sure you have access to sufficient cash flow. Brice Capital, a leading finance institution, noted that private lenders are more than willing to work out debt consolidation terms with their clients. Most importantly, work on having access to a steady flow of income, which can consistently cover your monthly debt payments and other expenses. Consolidation will likely reduce what you owe, but it won’t make your debts disappear on their own.

Resolve to Break Free from Debt

When you have firmed up your resolve to break free from the vicious cycle of debt, it is time to consider a consolidation loan. If you are still stuck with your old money-wasting ways and bad spending habits, then no amount of financial intervention can help bail you out. Make a financial get-out-of-debt plan and stick to it no matter what happens. This can be as simple as limiting yourself to one credit card or choosing to consolidate all outstanding debt in one account. 

In conclusion, you have to be mindful that you’re cutting expenses, altering your lifestyle, and hiding those credit cards away to make a significant improvement on your financial health. Success with consolidation requires a firm resolution to never rack up more debt until you have fully paid for existing ones. Having self-control, being determined, and possessing a strong sense of responsibility to follow through with your financial plans are all critical components to help you break the vicious debt cycle and be able to live financially free. 

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Craig Nassi Shares Things to Know Before Starting Your Real Estate Portfolio

By on June 28, 2019

There are fortunes to be made in real estate provided you know what you’re getting yourself into. Craig Nassi, a licensed real estate broker in New York, said that there are three ways to make money from real estate:


• Benefiting from an increase in property value.
• Gaining rental income from leased properties.
• Generating profits from real estate operations (such as vending machines in your office buildings, coin-op washing machines in your condominiums, and the like). 

He also shared that real estate investment is just like any other business that carries some degree of risk. Thus, it is critical to be informed so you can mitigate these risks, ensure profit on your investment, and save yourself from huge losses. He mentions taking note of these considerations before buying the first property or even any property to add to your portfolio.

Don’t Let Your Emotions Rule You

Real estate is not about emotions but economics. Most people listen to their heart when buying their first home. It may be fine if you foresee yourself growing old and living there for years. However, it is different when it comes to a purely investment property. Logically negotiate the lowest possible price because the lower it is, the higher your profit margin will be. Use analytical tools and financial assessments rather than relying on personal likes and dislikes. Data is king when it comes to investments.

Do Extensive Research

First, identify what you will be using the property for. Is it primarily for rental income? Are you looking to hold on to it as a vacation home, while waiting for its property value to increase? Research the area around the investment property you are buying. Are there any future construction plans near the area? Know all these as it will impact your property’s value down the line. Craig Nassi noted that the most important consideration is location. Ensure that the property is situated in an area that will attract the clients you hope to rent or sell the property to. 

Secure A Down Payment

Any home you purchase will require a down payment. Anyone can close the deal with as little as a 3% down payment. However, an investment property requires at least a 20% down payment because mortgage insurance does not apply to investment properties. On top of that, these properties have a more stringent approval process and requirements. 

Calculate Total Expenses

You have to calculate the total expenses if you are indeed going to be making a profit. Aside from calculating how much money you have, your loan amount, and the expenses that come with closing the contract, you need to prepare for other eventualities. Will the property need renovation and how much are the estimated costs? Also keep in mind the operation costs of maintaining the property. Do you have enough to tide you over while your units have no tenants? Finally, make an estimate of the price you will eventually sell your property for, minus the possible expenses that this will entail. These are all the details you need to consider before signing a contract. 

Consider Your Overall Financial Standing 

Before plunging into another big debt for your investment property, compare it with your other financial obligations. Do you still have student loans and medical bills? Those monthly payments can pile up, so it is better to study your whole financial standing before taking a big risk. Do all your calculations, factoring in these details along with your daily expenses, to see if you can actually afford the investment property. You need to be in the safe zone, otherwise, you’ll be stressing on how to find the money for the monthly payments for your investment. 

Like every other business, investing in real estate has the potential to bring you up or down. It has the capacity to bring you large profits, but it can also turn into a disastrous experience leaving your bank account in shambles. The important thing to remember is to take a calculated risk and to play it safe. If you do your research and plan well from the very start, you increase your chances of coming out on the winning side. 

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4 Ways to Update the Exterior of Your Home Without Blowing Your Budget

By on June 17, 2019

It is important to spend time and money keeping a home’s exterior in good condition. Doing so can make the home more aesthetically pleasing while also helping to protect it against the elements. The good news is that there are many ways to update or upgrade the outside of your house without going over your budget.

Add a Fresh Coat of Paint

One of the easiest ways to make your home’s exterior look better and protect it against the elements is to add a new coat of paint. In a matter of hours, you can transform your dull, cracked and generally lifeless siding into something that is bold, clean and vibrant. 

Ideally, you will paint the outside of your home every five years or so depending on weather conditions. This can be especially important if you have wood siding as it can be vulnerable to rain or pests without the protection that paint offers. If you don’t want to do the work yourself, most contractors can handle the job with ease. 

Install New Windows

Adding new windows to a home can help to better regulate the temperature throughout your property. This is because newer windows tend to use materials that make them more efficient. New windows will also look nicer because they are less prone to fogging up during rainy or humid weather. Furthermore, they are designed to be easier to clean, which helps to extend their useful life. 

Generally speaking, you can expect to spend anywhere from $300 to $800 per window, and the cost of replacing every window in a home can be anywhere from $3,000 to $10,000. In many cases, window manufacturers will offer warranties or similar guarantees to protect your investment. 

If your windows are still relatively new, it may be easier and cheaper to have them cleaned instead of replaced. Individuals such as Jason McLaughlan may be able to provide other solutions to help upgrade your windows or exterior in general. 

Landscaping Is an Affordable Way to Make a Home Look Nice

Landscaping your entire yard could cost anywhere from $1,000 to $2,000 depending on how much work you choose to do. In many cases, simply adding a garden or planting a couple of trees can revitalize your property. Conversely, cutting down dead trees or trimming overgrown hedges can make your yard a more comfortable and safer place to be.

If you are trying to mitigate a pest problem, you may want to consider switching from real grass to artificial turf. While the turf itself may require a significant upfront investment, you can save money on mowing and watering your lawn. Getting rid of pests can also save money on home repair costs in the future.

Install a Deck, Fence or Patio

Individuals such as Jason McLaughlan may be able to talk about the benefits of a fence, patio or deck on your property. Fences can provide privacy while you enjoy a drink or while your children play outside. Decks and patios can be the perfect spot to grill a steak or to watch the sun go down on a warm summer evening. These items may cost less than $1,000 depending on the materials used and how much of the work you do yourself. 

It is important that you continually maintain and upgrade your property. Doing so can help to prevent structural or other problems that may cost even more to fix in the future. Furthermore, making improvements to a home’s exterior can make it easier to sell for top dollar when you’re ready to move on.

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August Funding Highlight the Dangers of Untrustworthy Lenders

By on May 17, 2019

Finding a trustworthy lender can be a difficult proposition. Borrowers should follow a concrete list of guidelines which will tell them whether the lender is above board before initiating the loan. When working with an untrustworthy lender, borrowers’ credit scores and financial reputation can be damaged, leading to future problems with getting loans later on. August Funding offers 9 ways to tell whether your lender is disreputable and will not help you achieve your business goals.


1. Compare Lenders and Terms

Before borrowing money, it is smart to contact a variety of lenders and find out about their pros and cons. A reputable lender will gladly give you their terms and will not pressure you into taking a loan on the spot. Watch out for companies that give you the hard sell and push you into financial terms you are not ready to accept. Beware of any language that states that the loan is only offered for a limited time. These are pressure tactics that can cause an artificial sense of urgency.

Some of the criteria that you should study are the credit score required, the payment schedule, the amount of collateral required to secure the loan, the length of the terms of repayment, and whether it is possible to suspend payments if there are any financial problems with your company.


2. Watch Out for Changes in Terms

If your lender wants to change the terms of your loan, that is a serious red flag that you are dealing with an unscrupulous company. A good lender will adhere to the conditions that are originally put forth. If a lender wants to change the terms of repayment right before the deal is signed, that tells a borrower that they should not do business with this company.


3. Constantly Suggests Larger Loans

When borrowing money, it is crucial to live within your means. Borrowing more than you need means that the lender will be able to reap more benefits from fees and interest charges. Give your business to lenders that respect the amount of money you are willing to borrow without trying to push you into their own terms.


4. Suggesting That You Lie about Income

If your business does not make the revenue needed to receive the loan, bad lenders may suggest that you inflate your income on the application. This can get you into trouble if you are caught, and it is another way to give the lender an unfair advantage in the deal. It can also cause you to get into a loan that you cannot repay under those terms. This can seriously damage your business’s financial prospects.


5. Not Being Up Front about Fees

A good lender will always state their fees clearly and be open to answering questions about any part of the process. A bad lender may give you the runaround and avoid answering the question directly. If you sense that your lender has something to hide, it is time to take your business elsewhere.


6. Be Aware of Your Debt to Income Ratio

Just as you would take this into consideration if you were applying for a personal loan, you should be careful with your company’s debt-to-income ratio. Companies which cater to borrowers with less favorable credit histories are often predatory and will take advantage of the borrower’s needs.


7. Watch for Companies That Do Not Check Credit Ratings

When a loan is offered, make sure that the company goes through the expected procedure of checking your credit score. If a company does not check your credit score, it could be a sign that they are planning to charge you many hidden fees to cover their risk.


8. Interest Rates Per Week or Per Day

This can be a huge problem for borrowers. When interest is charged on a weekly or daily basis, this is a red flag that the company is not operating above board. Interest should be charged on a monthly or annual basis.


9. Non-Traditional Advertising

If a business lender cold calls you or is advertising their services on Facebook, Craigslist, and other similar sites, that is a sign that they are not reputable. Online listings are fine, but you should be careful to find out whether the company has a physical address and office telephone number. Call this number and make sure that someone answers and is able to handle your questions.


Reputable Lenders

These 9 areas can help you find a reputable lender to grow your business. Be cautious when engaging with a business lender, and make sure that all of their terms are clearly stated before signing the loan agreement. August Funding reminds businesses to be cautious and to take all loan proceedings seriously.

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Truman Advisors on How to Build Credit Responsibly

By on May 10, 2019

Whether you’re just starting out, or you had a troubled financial past, you may now be challenged with building a good credit profile. While you may know what not to do, taking a more proactive stance on building credit is just as important. These tips can help you build a good credit score without forcing you to take on debt that you really don’t need.

Get a Secured Credit Card

A secured credit card provides a safe way for you to build your credit by linking the card to a checking account in your name. Your credit limit will be based on the amount you maintain in the checking account. For instance, if you keep a balance of $200 in the checking account, your credit card may have a credit limit for that same amount. This helps you build credit without the possibility of falling into a cycle of growing debt. 

Get Credit for Paying Your Rent

Typically, financial advisors or debt experts such as Truman Advisors recommend buying a home over renting, simply because you don’t benefit from paying rent. While that is true, there are a few new apps on the market that are starting to change that. Traditionally, paying rent was akin to tossing your money into a black hole. You aren’t earning equity, and you aren’t helping your credit score. Rental Kharma and RentTrack are just a couple of the apps changing that by ensuring your on-time rent payments are calculated as a part of your credit score. This can be enough to build up your score and make it easier to get the home loan you want.

Be Cautious About Borrowing

Before you apply for a personal loan, take the time to examine your budget. You should create a new budget that will include the installment payments that you’ll have to make on the loan. If it looks like you’ll have problems making your payments on time, it may be best to look for another alternative. Even one late payment can result on negative hits on your credit report, which will bring your credit score down. You may be better off looking for an alternative source of income, rather than risking the possibility of sabotaging your credit.

Use Credit Cards Wisely

It’s common for people to use credit cards to buy big ticket items, but this is actually an unwise way to use your credit cards. Instead, you should only use your cards for small purchases which you can pay off within the same billing cycle. This can help you avoid the interest charges that make credit card debt so difficult to clear up. Once you begin drawing out those debts, your minimum monthly payments will be primarily comprised of interest, and you’ll find it next to impossible to pay off that debt. 

Pay Your Bills on Time

While this may seem simple and insignificant, how good you are at paying off your debts will affect your credit score. As Truman Advisors and other financial experts warn, late and missed payments can negatively affect your credit rating. On the other hand, keeping up with your bills and taking steps to ensure each bill is paid on time will help you build a stronger credit profile. Think of your credit history as your financial reputation. It shows potential lenders how trustworthy you are in terms of repaying your debts.

Don’t Max Out Your Credit Cards

Another way that lenders look at credit is by analyzing your credit to debt ratio. This means comparing your total available credit against how much debt you have amassed. For instance, suppose you have three cards with a credit limit of $1,000 on each card, but you have only used a total of $700 of that credit. This is an example of a good credit to debt ratio. On the other hand, if you have charged up to $2,500 on your cards, this indicates that you manage your finances poorly, and you’re less likely to be approved for a loan with reasonable terms.

Hold onto the Same Cards

While it may be tempting to ditch your current card in order to get a good deal on a new card, just closing an account can harm your credit score. Maintaining a credit card account for a longer period of time can help show that you’re financially responsible, which will reflect well to lenders. On the other hand, a history of trading one card for another just to get that introductory offer will suggest that you’re a more whimsical consumer. This can leave lenders, and others who may review your credit report, to feel that you pose a greater risk.


Following these suggestions can help you build up your credit. A good score can help you function in society in more ways than you may realize. We need to rely on our credit scores for everything from renting an apartment to running a business. Taking the time to build a strong score by employing these suggestions will help you live an easier life well into the future.

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3 Ways to Reduce Debt According to Roseland Associates

By on May 1, 2019

Student loan debt has risen so high that Senator Elizabeth Warren is making a proposal to cancel $50,000 in student loan debt for those who make $100,000 or less per year. Right now, the average student loan debt stands at over $37,000 per person, according to a CNN article. b

However, it isn’t just students in America who are in trouble with debt. The average American holds more than $6000 in credit card debt and owes almost $25,000 in what’s called non-mortgage debt. This would include debts such as car loans, personal loans, and the like.

With debts reaching staggering amounts, many are left wondering what they can do about the debt that they have. The truth of the matter is the answer is simple but not easy. Getting out of debt in our experience comes down to a few critical elements.

A Word About Creating Debt

An article on The Balance admits that not creating new debt won’t get you out of debt. However, it won’t add to your debt either. 

This is an important point that not just The Balance recommends. Financial guru Dave Ramsey tells those saddled with debt to stop creating it. He recommends that those who are heavily in debt use cash to help them keep track of their money and to prevent them from overspending. 

All of the work that you do to get out of debt will be for naught if you don’t take this step before you implement any other debt reduction strategies. Not doing so is a bit like bailing water out of a sinking boat and expecting the leak to stop on its own.


1. Do a Side Job

Tackling debt with a side job or a side business counts as one of the fastest ways for you to get out of debt. Taking on a job at the local Starbucks, for example, could net you anywhere from $800-$1000 extra a month if you are paid around $10 an hour and work between 15 and 20 hours a week.

You would apply this extra money toward your debt. Usually, when people are deeply in debt, they will very often only pay the minimum payments. By doing so, you will remain in debt for a lot longer period of time. 

The extra money that you earn from a side gig at a coffee shop or a business of your own allows you to put more money toward your balances than just the minimum, helping you get out of debt at a much faster rate.


2. Create an Emergency Fund

The financial advisors, and the debt experts at Roseland Associates, recommend that you have between three and six months worth of income in savings. Some financial planners go as far as to recommend not only having the three to six months of salary in savings but also some extra money for smaller emergencies. 

Here’s how this works. You should first save about $1000. This is the fund will be used to pay for smaller emergencies, like a broken faucet in the bathroom or a random trip to the emergency room. The idea behind this money is that when you have such an emergency you don’t use your credit card. 

Rather, you use the money that you have in your emergency fund. If you do dip into the emergency fund you must replace it once you have the opportunity.

Once you have funded your emergency fund, then you start putting away money for those bigger emergencies, like a job loss or an illness. Having a savings account filled with enough money to get you by for three to six months will allow you to not borrow money on your credit cards and other credit tools.


3. Getting a Refund? Use it to Pay Down Your Debt

The AARP cautions debtors not to use that tax return to go on a splurge. Instead, they should use it to pay down their debt. Anytime you get extra funds like this, you should automatically plan to put it towards your debt until you are out of debt. 

Doing this allows you to compound the power of the other debt reduction strategies that you’re already doing. Anytime you can put extra money toward your debt, do so.


Final Words

Debt experts at organizations like Roseland Associates offer some standard advice to those who want to get out of debt. First of all, if it’s in your power at all to get a second job or to create a side business, you should consider it. This extra money, which might be equal $1000 a month or more goes a long way toward putting a dent in your debt.

Second, you should have an emergency fund. The emergency fund prevents you from having to use your credit card when a job loss or even a smaller emergency, like a new set of tires or a trip to the emergency room befalls you. After all, the best way to get out of debt is to try to stay out of debt in the first place. 

Finally, if you get any kind of refund like a tax refund, then you should also put that money towards your debt.

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The Pitbull Trader Explains the Most Popular Commodities That You Can Trade

By on April 26, 2019

One of the most important traits of a successful trader is understanding the instrument that you are trading. This means that you understand how it responds to news events, economic events and other variables within the market. It also means understanding how markets move and how to take advantage of patterns that often develop. Let’s look at a few popular commodities and why traders are so enamored with them. 

Oil

Oil is one of the first commodities that traders will want to buy or sell when they first enter the market. This is because it is among the most volatile instruments that you can trade. It isn’t unusual for the price of oil to move $10 or more in a single hour, and it is not uncommon for brokers to give you a dollar for every 10 cents the market moves up or down. Therefore, it is possible to make hundreds of dollars in a short period of time. 

Of course, it is also possible to lose massive amounts of money in a short period of time as well. The good news is that there are many ways that you can trade in the oil market with as much success as the Pitbull Trader. For example, you can trade oil stocks, oil ETFs and oil futures. You can also invest in mutual funds that invest heavily in oil companies or the oil sector itself. 

Gold

Gold is among the most popular commodities to trade because everyone knows what it is. Furthermore, it is a commodity that moves in a relatively predictable pattern. If there is economic uncertainty, gold tends to appreciate. The same is true if political strife emerges in a specific country or region of the world. When there are fewer economic or political worries around the globe, gold tends to sink in value, which can create opportunities for short sellers. 

As with oil, there are many ways to trade gold. You can buy the stocks of companies that mine gold or buy futures contracts that are traded throughout the week. It may also be possible to buy options contracts in gold producing companies or in ETFs that track the gold sector. It may also be possible to buy and sell physical gold such as coins, jewelry or anything else that has this material in it. 

Corn

Corn is more than the vegetable that most people enjoy with friends on a warm summer day. It is a commodity that can help you earn a lot of money if you understand how to trade it. Typically, the price of corn is influenced by the strength of the United States dollar as well as the types of regulations that the government imposes on farmers.

The strength of the economy will also play a strong role in determining the price of corn. You may be able to learn more about these and other factors by working with the Pitbull Trader or other investment advisors. As corn is used to create ethanol, the price of oil and other energy products may also play a role in corn prices. Therefore, some traders could choose to create a trading system in which they enter or exit corn trades based on price action in the oil or natural gas sectors.

Other Popular Commodities

While oil, gold and corn are among the most popular commodities to trade, they are not the only options. You can also trade natural gas, silver and soybeans if those are the markets that you feel more comfortable with. Individuals such as the Pitbull Trader may be able to help you determine the commodities that you would have the most success trading.

Being a commodities trader is a lot like being a stock or currency trader. You must have a solid understanding of how markets move, how the commodity in question moves and how to identify ideal setups. Furthermore, you need to be able to have discipline and good money management skills to maximize your potential to be profitable.

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