A Missouri judge ruled that the Education Department could not continue forgiving small principal student loan balances in just 10 years under the SAVE plan. And in Kansas, a judge blocked the department from rolling out the final components of the SAVE plan as scheduled on July 1 that would have cut monthly bills in half for borrowers with undergraduate loans only, among other benefits.
“We strongly disagree with the Kansas and Missouri District Court rulings, which block components of the SAVE Plan that help student loan borrowers have affordable monthly payments and stay out of default. The Department of Justice will continue to vigorously defend the SAVE Plan,” U.S. Secretary of Education Miguel Cardona said in a statement.
SAVE, which debuted in August, offers lower payments and more benefits than other income-driven repayment (IDR) plans. It forgives remaining debt in as little as 10 years for those with an original principal balance of $12,000 or less instead of 20 or 25 years on other IDR plans. It waives any interest left over after borrowers make their assigned monthly payments, preventing ballooning student loan balances. Those earning less than $67,500 as a family of four, or less than $32,800 as an individual, even qualify for $0 payments.
About 8 million borrowers are enrolled in SAVE, representing 1 in 5 borrowers with outstanding federal student loans. Of the 8 million SAVE borrowers, 4.6 million have a low enough income to qualify for $0 payments.
How the rulings impact SAVE borrowers
The most immediate impact of the Kansas court order: As many as 3.4 million borrowers who owe payments under SAVE won’t see smaller bills starting in July. The Education Department was gearing up to shrink monthly payments for borrowers with only undergraduate loans, from 10% of their discretionary income to 5%. (Borrowers with both undergraduate and graduate loans would have seen payments calculated at a weighted average between 5% and 10%.)
Other SAVE provisions slated to go into effect July 1 won’t happen as scheduled, either. That includes automatic SAVE enrollment for borrowers who are at least 75 days behind on payments, which could reduce default rates. Another provision would have given borrowers automatic credit toward SAVE forgiveness for most past periods of forbearance and deferment.
The Missouri ruling blocks borrowers with lower principal balances from getting accelerated forgiveness going forward. Since February, the department has already approved about $5.5 billion worth of student debt forgiveness for 414,000 SAVE borrowers.
Previous waves of SAVE forgiveness are likely safe, says Mike Pierce, executive director and co-founder of the Student Borrower Protection Center, a nonprofit organization that advocates for student debt relief. The court order does not impact the 20- or 25-year forgiveness timeline for SAVE borrowers who took out amounts of debt greater than $12,000.
“I would not expect, no matter where this goes, for people who are now debt-free to have to worry about the government coming back to them and saying, ‘No, actually, the court says we got it wrong, so you have to pay your bills now,’” Pierce says. “But for everybody else, people who are relying on these lower monthly payments, that’s very much in peril.”
Student loan servicers recently notified some borrowers about a July administrative forbearance due to SAVE plan changes. Most likely, that July forbearance will continue as planned and payments will resume in August, though servicers are still waiting on official Education Department direction, says Scott Buchanan, executive director of the Student Loan Servicing Alliance. If you have questions about the July forbearance, wait a few days before contacting your servicer.
“I would encourage borrowers to hold off and wait until we get more information about how the government is going to proceed here, because if they call today and say, ‘Hey, what’s happening in August?’ I don’t think anyone’s going to have an answer,” Buchanan says.
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What could happen next with the SAVE lawsuits
The dual court orders were both preliminary injunctions, which means they are not yet final rulings.
“The court has not made a decision about whether or not the SAVE plan is legal, so the states asked the court to temporarily pause the full SAVE regulations while the court considers whether or not the actions by the administration were lawful,” explains Pierce.
Next, the Justice Department will decide whether it will appeal these injunctions and ask an appellate court to review them or litigate the cases in front of these judges and try to prove that the SAVE plan is legal.
In either case, it’s unlikely that SAVE borrowers will be impacted by further legal updates in the “very near-term,” Pierce says. “It’s possible the administration is going to fight tooth and nail to roll back these injunctions. We’ll know more in the coming days, but as of right now, assuming these cases stay in front of these trial court judges, we’re talking about months here.”
The future of the SAVE plan remains uncertain. In the meantime, SAVE continues to stand in its current form, minus the forgiveness portion. Borrowers enrolled in the plan should continue to make payments as usual, and borrowers who aren’t yet on SAVE can still sign up.
“While we continue to review these rulings, the SAVE plan still means lower monthly payments for millions of borrowers — including more than 4 million borrowers who owe no payments at all, and protections for borrowers facing runaway interest when they are making their monthly payments,” Education Secretary Cardona said.
The fund’s strategy involves acquiring these potentially undervalued properties, taking public real estate companies private, and forming investment platforms. As of May 31, TRS assets reached a record $70.98 billion, up from $70.4 billion at the end of March. The board also elected to maintain the 7% rate of return assumption for the pension fund. … [Read more…]
For a 30-year fixed-rate mortgage, the average rate you’ll pay is 6.96% today, up 0.02% over the last week. The average rate for a 15-year fixed mortgage is 6.45%, which is an increase of 0.07% since last week. For a look at mortgage rate movement, see the chart below.
The Federal Reserve has been pushing off interest rate cuts because inflation has been slow to improve. While experts still expect mortgage rates to gradually move lower in the coming months, housing market predictions can always change in response to economic data, geopolitical events and more.
Today’s average mortgage rates
Today’s average mortgage rates on Jun. 27, 2024, compared with one week ago. We use rate data collected by Bankrate as reported by lenders across the US.
Lower mortgage rates make buying a home more affordable. Experts recommend shopping around with different mortgage lenders to find the best deal. Enter your information below to get a custom quote from one of CNET’s partner lenders.
About these rates: Like CNET, Bankrate is owned by Red Ventures. This tool features partner rates from lenders that you can use when comparing multiple mortgage rates.
What is a good mortgage type and term?
Each mortgage has a loan term, or payment schedule. The most common mortgage terms are 15 and 30 years, although 10-, 20- and 40-year mortgages also exist. With a fixed-rate mortgage, the interest rate is set for the duration of the loan, offering stability. With an adjustable-rate mortgage, the interest rate is only fixed for a certain amount of time (commonly five, seven or 10 years), after which the rate adjusts annually based on the market. Fixed-rate mortgages are a better option if you plan to live in a home in the long term, but adjustable-rate mortgages may offer lower interest rates upfront.
30-year fixed-rate mortgages
The average 30-year fixed mortgage interest rate is 6.96% today. A 30-year fixed mortgage is the most common loan term. It will often have a higher interest rate than a 15-year mortgage, but you’ll have a lower monthly payment.
15-year fixed-rate mortgages
Today, the average rate for a 15-year, fixed mortgage is 6.45%. Though you’ll have a bigger monthly payment than a 30-year fixed mortgage, a 15-year loan usually comes with a lower interest rate, allowing you to pay less interest in the long run and pay off your mortgage sooner.
5/1 adjustable-rate mortgages
A 5/1 adjustable-rate mortgage has an average rate of 6.52% today. You’ll typically get a lower introductory interest rate with a 5/1 ARM in the first five years of the mortgage. But you could pay more after that period, depending on how the rate adjusts annually. If you plan to sell or refinance your house within five years, an ARM could be a good option.
Current mortgage rate trends
At the start of the pandemic, mortgage rates were near record lows, around 3%. That all changed as inflation began to surge and the Federal Reserve kicked off a series of aggressive interest rate hikes starting in March 2022 to slow the economy, which indirectly drove up mortgage rates.
Now, more than two years later, mortgage rates are still around 7%. Over the last several months, mortgage rates have fluctuated in response to economic data and investors’ expectations as to when the Fed will start to lower rates.
Today’s homebuyers have less room in their budget to afford the cost of a home due to elevated mortgage rates and steep home prices. Limited housing inventory and low wage growth are also contributing to the affordability crisis and keeping mortgage demand down.
Will mortgage rates go down this year?
Most experts predict mortgage rates will fall below 7% in the coming months. However, a sustained downward trend will depend on several factors, including upcoming inflation and labor data.
The Fed hasn’t hiked interest rates in almost a year, but an actual rate cut doesn’t appear imminent. Some experts say the first cut could come as early as July, though it’s more likely we see the Fed lower rates in September or November.
“If the Fed makes any moves later this year, the signal would be sufficient for the mortgage market, and mortgage rates would start falling,” said Selma Hepp, chief economist at CoreLogic. “In that case, we could see the mortgage rates around 6.5% at the year-end.”
One thing is for sure: Homebuyers won’t see lower mortgage overnight, and a return to the 2-3% mortgage rates from just a few years ago is unlikely.
Here’s a look at where some major housing authorities expect average mortgage rates to land.
Calculate your monthly mortgage payment
Getting a mortgage should always depend on your financial situation and long-term goals. The most important thing is to make a budget and try to stay within your means. CNET’s mortgage calculator below can help homebuyers prepare for monthly mortgage payments.
How can I get the lowest mortgage rates?
Though mortgage rates and home prices are high, the housing market won’t be unaffordable forever. It’s always a good time to save for a down payment and improve your credit score to help you secure a competitive mortgage rate when the time is right.
Save for a bigger down payment: Though a 20% down payment isn’t required, a larger upfront payment means taking out a smaller mortgage, which will help you save in interest.
Boost your credit score: You can qualify for a conventional mortgage with a 620 credit score, but a higher score of at least 740 will get you better rates.
Pay off debt: Experts recommend a debt-to-income ratio of 36% or less to help you qualify for the best rates. Not carrying other debt will put you in a better position to handle your monthly payments.
Research loans and assistance: Government-sponsored loans have more flexible borrowing requirements than conventional loans. Some government-sponsored or private programs can also help with your down payment and closing costs.
Shop around for lenders: Researching and comparing multiple loan offers from different lenders can help you secure the lowest mortgage rate for your situation.
Each week, Alexa is rounding up the buzziest fashion drops, hotel openings, restaurant debuts and celeb-studded cultural happenings in NYC.
It’s our curated guide to the very best things to see, shop, taste and experience around the city.
What’s making our luxury list this week?
A celebrity favorite home furnishings shop opens a New York outpost, Lele Sadoughi gets inspired by art and a beloved British brand crosses the pond.
Over the years, accessories designer Lele Sadoughi has partnered with SJP by Sarah Jessica Parker, J.Crew and Swarovski.
But she says she’s “always done a lot of painting, drawing and collage work,” so her latest collab — with The Metropolitan Museum of Art in NYC — seems spot-on.
Sadoughi chose six artists from the Met’s collection — Paul Cézanne, Edgar Degas, Gustav Klimt, Claude Monet, Pierre-Auguste Renoir and Vincent Van Gogh — and “interpreted masterpieces into wearable, three-dimensional art.”
The new collection (which launched yesterday) includes almost three dozen pieces, ranging from the designer’s iconic headbands and hair accessories to earrings, belts and bags.
From $55 at Lele Sadoughi and The Met Store.
Me And Em
Giovanni Panerai opened his first shop and watchmaking school in Florence, Italy, in 1860.
In the ensuing years, the company supplied the Italian Royal Navy with various instruments, including diving watches, which debuted in the 1930s and ’40s. Luminor, the brand’s first watch for the “civilian market,” was introduced in 1993.
Many of Panerai’s styles, including this new Luminor Dieci Giorni, have not veered far from the originals. But there have, of course, been technological improvements, innovations and evolutions, following the whims of fashion.
This latest edition — released in time for Father’s Day and water resistant to 100 meters — has a 10-day power reserve, noted in Italian as “10 Giorni.”
It also boasts a very on-trend navy blue face and alligator leather strap. Snap it up.
Luminor Dieci Giorni watch, $15,200 at Panerai
After a bit of a hibernation, Sundays has finally reopened in Hudson Yards, in a much easier to find space on the third floor, next to Pandora (as opposed to a random corner near restrooms).
Not familiar?
Billed as a “non-toxic nail studio,” Sundays offers manis and pedis using products that are vegan and cruelty free in a space that seems designed for relaxation.
The new Hudson Yards studio includes a treatment room (the company is developing a menu of specialized body and face treatments) and offers a new Red Light manicure, which adds 10 minutes of “soothing light therapy” to drying time.
20 Hudson Yards, 500 W. 33rd St.; Dear Sundays
For many lovers of design, no trip to Los Angeles would be complete without a stop at Nickey Kehoe.
The shop on Beverly Boulevard, in an area just east of The Grove, opened 16 years ago, following on the success of Todd Nickey and Amy Kehoe’s design firm (named to the AD100 last year).
Over the years it’s developed an extremely loyal following on both coasts, and earlier this month the company opened a New York City outpost, on two floors of a historic brownstone on the same street where Jackson Pollock once lived.
The location is apropos, as the duo behind the interior design firm (which celebratates its 20th anniversary this year) originally met in NYC in the ’90s.
Everything in the new space ascribes to their description “lovers of simplicity without fear of flair” in layers of vintage and new furniture, lighting, textiles and objects.
The City Beautiful, Orlando, FL, is known for its vibrant neighborhoods, picturesque lakes, and iconic theme parks like Walt Disney World and Universal Studios. With a population of about 287,000 residents, Orlando is a popular destination for renters looking to experience the magic of this city. If you’re looking to rent an apartment in Orlando, you’ll find that the average rent for a one-bedroom apartment is $1,749. We’ve compiled a list of the most expensive Orlando neighborhoods to rent an apartment in this year.
12 Most Expensive Neighborhoods in Orlando
From the planned community of Baldwin Park to the bungalows of Colonialtown North, there are plenty of charming neighborhoods in Orlando. Whether you’re looking for a sleek home to rent in Orlando or wondering where to live in the city, read on to find out what neighborhoods made the list.
1. North Orange 2. Lakeside Village 3. Baldwin Park 4. Lake Nona 5. Airport North 6. Park Central 7. Englewood Park 8. College Park 9. South Eola 10. Vista East 11. Horizon West 12. Colonialtown North
Let’s jump in and see what these neighborhoods have to offer.
1. North Orange
Average 1-bedroom rent: $2,491 Apartments for rent in North Orange
North Orange is the most expensive neighborhood in Orlando, as the average rent for a one-bedroom unit is $2,491. The area is known for its high-end shopping and dining options, such as those found at the Winter Park Village, which features luxury retailers, fine dining restaurants, and boutique shops. The neighborhood is also close to cultural attractions such as the Orlando Museum of Art and the Dr. Phillips Center for the Performing Arts, offering residents access to world-class entertainment and cultural experiences. Additionally, North Orange is home to beautiful parks and green spaces, including the scenic Lake Eola Park, which provides a picturesque setting for outdoor activities and community events. The presence of top-rated schools and well-maintained residential areas with modern amenities further contributes to the appeal of the neighborhood.
2. Lakeside Village
Average 1-bedroom rent: $2,220 Apartments for rent in Lakeside Village
Lakeside Village, southwest of downtown Orlando, comes in at number 2 on our list. The neighborhood features beautiful, well-maintained lakes and green spaces, such as the serene Lake Cherokee Park, which provides residents with opportunities for leisurely walks, kayaking, and scenic picnics. Local dining gems like The Strand offer farm-to-table cuisine in an intimate setting, contributing to the area’s upscale dining scene. Art and culture enthusiasts appreciate the nearby Orlando Repertory Theatre, known for its engaging performances and community events. Additionally, the area’s proximity to boutique fitness centers like Peaceful Peacock Orlando, which offers specialized yoga and wellness programs, adds to the neighborhood’s allure, making it a highly sought-after and costly place to live.The average rent for one-bedroom apartments is $2,220, which is about $450 above the city’s average, making it a pricier neighborhood. However, residents say Lakeside Village’s charm and amenities are worth it.
3. Baldwin Park
Average 1-bedroom rent: $2,036 Apartments for rent in Baldwin Park
With an average one-bedroom rent of $2,036, Baldwin Park is the third most expensive neighborhood in Orlando. This meticulously planned community features a variety of high-end local establishments, such as The Osprey, a stylish seafood restaurant known for its fresh, locally sourced dishes and sophisticated atmosphere. Baldwin Park is home to beautiful parks and outdoor spaces, including Lake Baldwin Park, which offers scenic walking trails, a dog-friendly beach, and stunning lake views. Additionally, the community’s emphasis on walkability, with tree-lined streets and a central village center hosting regular events and farmers markets, adds to the neighborhood’s exclusive appeal. The proximity to top-rated schools and recreational facilities like the Baldwin Park Village Center’s fitness and wellness offerings further contribute to its popularity.
4. Lake Nona
Average 1-bedroom rent: $2,000 Apartments for rent in Lake Nona
Lake Nona is the next most expensive neighborhood in Orlando. This neighborhood is known for its central location near Lake Nona and the Orlando International Airport. The area is home to the Lake Nona Medical City, a landmark for medical research and healthcare with institutions like the UCF College of Medicine and Nemours Children’s Hospital, attracting professionals and driving demand for housing. Local dining gems, such as Canvas Restaurant & Market, offer residents farm-to-table cuisine with stunning lake views. The Lake Nona Golf & Country Club provides an exclusive, world-class golfing experience, adding to the neighborhood’s allure. Additionally, the neighborhood’s emphasis on wellness is evident in facilities like the Lake Nona Performance Club, a state-of-the-art fitness center promoting health and well-being, further contributing to the area’s high cost of living.
5. Airport North
Average 1-bedroom rent: $1,975 Apartments for rent in Airport North
Airport North is the fifth most expensive neighborhood in Orlando. Residents are attracted to Airport North thanks to its strategic location, high-quality amenities, and proximity to key attractions. The neighborhood is adjacent to the Orlando Executive Airport, which provides convenience for frequent travelers and aviation enthusiasts. Local parks such as Lake Underhill Park offer residents beautiful green spaces with scenic walking trails, a boat ramp, and a fitness area, enhancing the community’s appeal. The area also features unique establishments like the Orlando Watersports Complex, where residents can enjoy activities such as wakeboarding and paddleboarding in a state-of-the-art facility. Additionally, cultural attractions like the Dr. Phillips Center for the Performing Arts are easily accessible, providing top-notch entertainment and cultural enrichment, contributing to the area’s desirability and higher cost of living.
6. Park Central
Average 1-bedroom rent: $1,954 Apartments for rent in Park Central
Next up is Park Central, the sixth most expensive neighborhood in Orlando and its no wonder the rents are above average. The area is renowned for its upscale residential complexes, featuring modern architectural styles with high-end finishes and amenities such as resort-style pools, fitness centers, and private clubhouses. Local establishments like The Boheme, an elegant restaurant known for its artistic ambiance and fine dining experience, contribute to the neighborhood’s allure. Residents enjoy proximity to beautiful parks such as Cypress Grove Park, which offers scenic walking trails, picnic areas, and a historic estate overlooking Lake Jessamine. Additionally, the neighborhood is close to cultural attractions like the Dr. Phillips Center for the Performing Arts, providing residents with easy access to world-class performances and events.
7. Englewood Park
Average 1-bedroom rent: $1,951 Apartments for rent in Englewood Park
Located east of downtown, Englewood Park is the next neighborhood on our list. The area is home to lush green spaces like Englewood Park itself, which provides residents with well-maintained walking trails, sports facilities, and playgrounds, making it an ideal spot for outdoor activities. Local establishments offer unique dining experiences with organic, locally sourced food in a charming setting. The neighborhood’s architecture features a mix of beautifully preserved mid-century homes and modern renovations, adding to its aesthetic appeal. Additionally, Englewood Park is close to cultural attractions like the Orlando Science Center and the Mennello Museum of American Art.
8. College Park
Average 1-bedroom rent: $1,950 Apartments for rent in College Park
College Park takes the eighth spot on our list of most expensive neighborhoods in Orlando. The average rent for a one-bedroom unit is roughly $100 more than the city’s average. The neighborhood features beautiful parks like Dartmouth Park and Lake Ivanhoe Park, offering residents lush green spaces for recreation and relaxation. Local establishments such as Infusion Tea, a popular spot for organic teas and light bites, add to the neighborhood’s allure. The area is also home to the historic Dubsdread Golf Course, providing a scenic and challenging course for golf enthusiasts. Architecturally, College Park is notable for its mix of historic bungalows, mid-century homes, and modern renovations, creating a visually appealing and diverse streetscape.
9. South Eola
Average 1-bedroom rent: $1,907 Apartments for rent in South Eola
A well-loved Orlando neighborhood, South Eola is the next area on our list. The neighborhood offers a unique combination of city living with a touch of nature. The area is home to the picturesque Lake Eola Park, where residents can enjoy community events like farmers markets and outdoor concerts. South Eola also boasts a variety of local establishments, such as The Stubborn Mule, known for its innovative American cuisine, and Eola Wine Company, a cozy spot for wine enthusiasts. Cultural attractions, including the nearby Dr. Phillips Center for the Performing Arts, provide a rich array of entertainment options. Architecturally, South Eola features a mix of modern high-rise condos and charming historic homes, catering to diverse tastes and offering a range of housing styles.
10. Vista East
Average 1-bedroom rent: $1,883 Apartments for rent in Vista East
Coming in at tenth on the list, Vista East in Orlando offers a blend of upscale amenities and scenic parks. The neighborhood is home to beautiful local parks such as Vista Park, which offers well-maintained walking trails, playgrounds, and serene picnic areas, providing residents with ample opportunities for outdoor recreation. Local establishments like Canvas Restaurant & Market provide a unique dining experience with locally sourced ingredients and waterfront views, enhancing the area’s appeal. Vista East is also close to Lake Nona Medical City, a state-of-the-art health and life sciences campus, attracting professionals and driving up demand for housing. Architecturally, Vista East features a mix of modern single-family homes and stylish townhouses, often with contemporary designs and high-end finishes, contributing to the neighborhood’s high property values.
11. Horizon West
Average 1-bedroom rent: $1,833 Apartments for rent in Horizon West
Number 11 on our list is Horizon West. The neighborhood is known for its well-planned communities that feature attractive architectural styles, including contemporary single-family homes, stylish townhomes, and luxury apartments, often designed with sustainability and modern living in mind. Local parks like Horizon West Regional Park offer residents expansive green spaces, sports fields, and playgrounds, making it a hub for outdoor activities and community events. The area is also home to unique local establishments such as The Vineyard Wine Bar & Healthy Bistro, which provides a refined dining experience with an emphasis on fresh, locally sourced ingredients. Nearby, the Horizon West Theater offers cultural enrichment with various performances and community events. Additionally, the neighborhood’s close proximity to popular attractions like the Orlando Health Horizon West Hospital ensures convenient access to top-notch healthcare.
12. Colonialtown North
Average 1-bedroom rent: $1,810 Apartments for rent in Colonialtown North
Taking the 12th spot is Colonialtown North. The average rent for a one-bedroom apartment is $1,810, about $60 more than the city’s average of $1,749. The area is home to several well-maintained parks, such as Colonialtown Square Park, which offers a serene environment with green spaces, playgrounds, and picnic areas. Local establishments like the Mills 50 District provide a unique cultural experience with a variety of independent cafes, art galleries, and specialty shops, contributing to the neighborhood’s lively atmosphere. The nearby Orlando Urban Trail offers residents a scenic route for biking, jogging, and walking, connecting various parts of the city. Architecturally, Colonialtown North is notable for its mix of early 20th-century bungalows and modern renovations, providing a diverse and attractive housing market.
Methodology: Whether a neighborhood has an average 1-bedroom rent price over the city’s average. Average rental data from Rent.com in June 2024.
The information provided on this website does not, and is not intended to, act as legal, financial or credit advice. See Lexington Law’s editorial disclosure for more information.
If you need to improve your credit health, you’re not alone. Millions of people have a bad credit score, often due to delinquencies, or late payments. According to a recent report from the New York Federal Reserve, credit card, and auto loan delinquencies are on the rise. Having poor credit can limit your financial options, but credit repair companies may be able to help.
Credit repair companies specialize in helping people fix their credit, but unfortunately, there are some companies that take advantage of people. It’s important to understand the laws of each state so you can protect yourself and choose the right credit repair company.
In this post, we teach you about credit repair laws for each state as well as the federal credit repair laws. Knowing your rights and the credit repair laws is the first step on your credit repair journey.
Credit repair laws for each state
In addition to federal laws, many states have laws that regulate the credit repair industry. The state consumer credit repair laws provide protection from companies that take advantage of people who are experiencing financial hardship. While many states have laws, there are some that don’t. Check the graphic below to see if your state is one of the few that doesn’t have specific laws for credit repair.
It’s helpful to know that the state credit repair laws are based on the state in which the credit repair organization is operating from. Not only must they comply with their state credit repair laws, but they must abide by federal laws as well.
Depending on the state, they may require that the credit repair company has:
A state registration requirement
A surety bond to cover potential damages to consumers
A required cancelation period after the consumer signs the contract
A refund period after the consumer signs the contract
Here is a list of each state and some specifics about their laws.
Credit Services Organization Act (UT. Code. §13-21-1 et seq.)
Yes
$100,000
5
10
Vermont
No state laws
N/A
N/A
N/A
N/A
Virginia
Credit Services Businesses Act (VA. Code. § 59.1-335.1 et seq.)
Yes
$50,000
3
10
Washington
Credit Services Organization Act (R.C.W. § 19.134 et seq.)
No
$10,000
5
10
West Virginia
Consumer Credit and Protection Act (W.V. Code Ch. 46A et seq)
Yes
$15,000
3
10
Wisconsin
Credit Services Organization (WI. Leg. § 422.501 et seq.)
Yes
$25,000
5
15
Wyoming
No state laws
N/A
N/A
N/A
N/A
Federal credit repair laws
There are many consumer protections for people in the United States, and some involve your credit. The primary credit repair law to familiarize yourself with is the Credit Repair Organizations Act (CROA). In addition to the CROA, you should also know about the Fair Credit Reporting Act (FCRA), which is what many credit repair companies use when helping their customers.
Credit Repair Organizations Act (CROA)
CROA dates back to 1996. The Federal Trade Commission (FTC) states that this act “prohibits untrue or misleading representations and requires certain affirmative disclosures in the offering or sale of ‘credit repair’ services.” The specifics of CROA state that the following are illegal:
Exaggerating or misrepresenting the service
Submitting false information to credit bureaus and data furnishers
Providing a new identity to clear your credit history
Charging customers up front
Requiring customers to waive their rights
Fair Credit Reporting Act (FCRA)
The Fair Credit Reporting Act (FCRA) is another federal law that helps ensure fair credit reporting practices for consumers. Credit repair companies work by utilizing the FCRA, so it’s helpful to understand what it says and how it works.
Some of your rights and protections according to the FCRA include:
You have the right to be told what’s in your file.
You must be told if any information in your file is being used against you.
You have the right to ask for your credit score.
Consumer reporting agencies must fix or remove inaccurate information.
Credit repair services are completely legal, but you’ll need to find credit repair companies that are operating under state and federal laws. The best credit repair companies follow these laws and can assist you with challenging errors on your credit report.
The following are some signs of a good credit repair company:
They don’t charge you up front
They don’t guarantee results
They don’t ask you to lie about your information to reporting agencies
Credit repair companies charge for their services, so it may be helpful to shop around and look at online reviews. When doing this, keep in mind that although a company may be the least expensive option, it may not provide the best services.
Work with a credit repair company who knows credit law
If you’re looking for a credit repair company that understands state and federal laws when it comes to your credit, work with Lexington Law Firm. We have a team of legal professionals who follow credit repair laws, and we also challenge credit reporting errors on your behalf.
In addition to providing you with regular updates about the credit repair process, we also provide various tools to help you better understand your credit health. To get started, sign up today.
Mortgage Q&A: “Can I mortgage a house that is paid off?”
When you own a home without any associated mortgages, it’s known as a “free and clear” property.
Some view this as a good thing, while others see mortgages as a good debt that doesn’t need to be paid off ahead of schedule (or ever).
Others argue that you shouldn’t take a mortgage into retirement, as you’ll be on a fixed income and it can be a large expense.
If you do happen to have a home that is completely paid off, you might be wondering if you can take out another mortgage. Let’s talk about it.
Yes, You Can Take Out a Mortgage on a Home That’s Free and Clear
Without getting too technical here, the short answer is yes.
If your property is free and clear of any debts or liens, you can take out a mortgage, assuming you qualify otherwise.
This means having the income, assets, employment and credit history to qualify for the loan.
In truth, it shouldn’t be much different than when you got your original loan. Though it would be considered a cash out refinance as opposed to a home purchase loan.
If you own your home outright and there are no existing loans associated with the property, taking out a new loan means tapping equity.
When you tap equity, it’s known as a cash out refinance because you’re taking what you already own and depositing it into your bank account.
The loan process is mostly the same as a purchase transaction minus a few details, like a purchase contract and a down payment.
And instead of taking out a loan to purchase the home, any amount borrowed would go into your pocket, less closing costs.
You would then get a fresh loan term, mortgage rate, monthly payment, and so on.
The Loan Would Be Considered a Cash Out Refinance
As noted, mortgaging a home with no outstanding liens would be treated as a cash out refinance.
Typically, cash out refinances are priced higher than other types of loans and there are more restrictions in terms of how much you can borrow (lower max LTV ratio).
Of course, if the home were completely paid off, chances are you’d have quite a big cushion to take out what you need without hitting that threshold.
Anyway, the word refinance essentially means to finance again and that’s exactly what you’re doing when taking out a loan on a paid-off home.
But it differs from a rate and term refinance, which pays off an existing home loan and results in a new one.
Let’s look at an example:
Say you’ve got a home worth $500,000 that was paid off in full a couple years ago.
Now imagine you need cash for some other expense, such as college tuition or even a different home purchase, perhaps a vacation or investment property.
If mortgage rates aren’t bad, you might consider borrowing from your paid-off home.
Often, a mortgage can be the cheapest option relative to other loan types, whether it’s a credit card, personal loan, etc.
And the lengthy loan terms associated with a mortgage also keep monthly payments low, assuming that’s a feature you’re looking for.
Let’s say you want/need $200,000. You could simply refinance your home, pull out that cash, and you’d now have a $200,000 mortgage on a home valued at $500,000.
You obtain the cash you need but must pay off a $200,000 loan via a corresponding monthly payment, perhaps for the next 30 years.
As a result of the new lien, your home is no longer paid off. And it might be some time until it is, again.
You’ve now got a monthly mortgage payment to make, which can be expensive, especially if you were used to living without one.
And most mortgages feature 30-year loan terms, so it could be with you for a while (though there are shorter terms available like the 15-year fixed and even the 10-year fixed).
Can I Get a Home Equity Loan on a Paid-Off House?
Now I laid out one possible scenario above. But a cash out refinance isn’t the only way to get home equity out of a paid-off house.
There are several alternatives to a cash out refinance, including a home equity loan or a home equity line of credit (HELOC).
While home equity products are typically second mortgages taken out while the homeowner still has their first mortgage, they can be standalone products too.
So it’s entirely possible to take out a HELOC on a home you own outright, borrow only what you need, then pay it back quickly. Then use the credit line again if need be.
Or take a smaller lump sum via a home equity loan and pay it off over a shorter loan term to reduce the interest expense.
The tradeoff with a shorter term is that the monthly payment is higher, but much less interest is paid. That can be a win, but could make it more difficult to qualify too.
Ultimately, you’ll need to determine which loan product offers the best pricing and aligns with your payoff goals.
I’ve already written extensively about cash out vs. home equity loans vs. HELOCs. So if you want a handy guide to compare the programs, be sure to check it out.
Other than that, there are also reverse mortgages for seniors, which don’t carry a monthly payment but reduce your sales proceeds if and when you sell.
And home equity sharing arrangements, which don’t carry a monthly payment at all. But you forgo future home price appreciation, which can be much costlier (I’m not a fan).
In summary, a paid-off home means you’ve got numerous options to choose from if you need to borrow money, whether it’s a refinance or a home equity line/loan.
Just know what you’re getting into and realize that you could be restarting the clock if your goal is to own a home without a mortgage!
I’ve heard this argument many times, whether in real life or on social media. That if you hold a mortgage (or two), you don’t actually OWN your house.
The logic is that the bank/lender is the one that truly owns the property because they lent you the money to purchase the property.
And you must pay them each month for the right to continue living in the home. If you don’t, they have the right to repossess the property via the foreclosure process.
On top of that, many home buyers only put down 3-5%, meaning borrowers technically own very little and owe a whole lot to the bank.
So is it true that mortgage holders don’t actually own their homes?
You Still Own Things That Have Loans Attached
While there’s some logic to the idea that a home with loans attached isn’t truly owned, it’s a pretty abstract thought.
Sure, one can argue that if you have a mortgage, it means you only OWN the portion that is paid off.
For example, if you bought a house for $500,000 and put down 20%, you’ve only got $100,000 in ownership, also known as home equity.
When people refer to equity, it means the part of your real estate that is paid off, or simply the present value minus any outstanding liens.
Over time, this same $500,000 property will likely appreciate in value, and the loan will be paid down.
This means ownership will increase as time goes on and with each monthly payment, with a portion going toward the principal balance.
But it starts to become a matter of semantics for what ownership truly is. And it doesn’t serve much purpose to question it.
Homeowners Refi Their Properties and Still Own Them
Take another example. A property is owned free and clear, meaning there isn’t a mortgage. Then the borrower decides to apply for a cash out refinance.
Their property is worth $1,000,000 and they decide to pull out $400,000 to use for other expenses.
Does this mean they owned their home and now they don’t own their home? No, that would be a silly thought.
It simply means they had no loans on their property and now they have a loan. And that their equity fell from $1 million to $600,000.
What is does mean is they’ll have to make monthly mortgage payments to a bank or lender until the loan is paid off.
And it does mean they’ll receive less proceeds if they decide to sell the property (since they’ll need to repay the loan balance in the process).
But it doesn’t change the fact that the property is still in their name and owned by them.
Certain Rules Do Apply If You Have a Mortgage
While I don’t buy into the you don’t own it if you have a mortgage argument, there are some rules that apply if you’ve got a home loan.
For one, hazard insurance is compulsory. Since the lender does have a financial interest in your property (via that big mortgage), they want protection.
This means an insurance policy to protect them if something happens to it. They assume you won’t pay off their loan if the house is destroyed.
So they require insurance to shield themselves from any big losses.
If you happened to own your property free and clear, you could technically forgo the insurance requirement.
Would you though? Probably not unless the property was worth next to nothing.
The lender may also have restrictions if you wish to put the property into a trust, because again, they have an interest in the home.
Rich People Often Take Out Mortgages Even Though They Don’t Need Them
One more thing to consider when it comes to mortgages and ownership.
It’s very common for the ultra-rich to take out mortgages on the homes they OWN, even if they’ve got the money to pay them off in full.
Ultimately, mortgages are a cheap form of financing (even if mortgage rates are no longer at record lows).
This provides opportunity for the wealthy to leverage their property to generate bigger profits elsewhere.
There are countless examples. Back in 2011, Facebook founder Mark Zuckerberg took out a $5.95 million mortgage on his $7 million Palo Alto, California home purchase.
We all know we could have paid all cash for the home, but he chose not to. Probably because the loan was set at 1.75% and it wouldn’t take much to beat that rate of return.
Remember, a mortgage can be viewed as an investment and its interest rate as the rate of return.
So if you have a 3% mortgage and a typical savings account pays 5%, you could already be ahead by not paying it off early.
Other examples include Jay-Z and Beyoncé’s $52.8 million-dollar mortgage on their Bel Air home.
And Warren Buffett arguing that it was a great time to take out a long-term mortgage in 2013 when rates were at historic lows.
Ultimately, a home loan is just a financial vehicle that can be used by a borrower to allocate money elsewhere.
It doesn’t mean they don’t own their home. It simply means they prefer to borrow instead of paying off their property, which arguably is an illiquid investment.
At the end of the day, this myth is often perpetuated by people who prefer to rent instead of buy.
There’s not a lot of truth to it, and it really only serves to make homeownership look less attractive than it really is.
The Biden Administration is awarding $85 million in grants to 21 local governments to build affordable housing in what officials call a “first-of-its-kind” program.
The Pathways to Remove Obstacles to Housing, or PRO Housing program, will deliver an additional $100 million out of the government’s fiscal year 2024 budget in an application process, officials said. The Department of Housing and Urban Development made the announcement Wednesday with Vice President Kamala Harris.
Cities, counties, states and other jurisdictional entities must describe how they’ll use the funds to address affordable housing barriers in zoning and permitting; financing gaps; infrastructure upgrades; and preservation of aging housing. HUD said combined requests from 175 communities exceeded $13 for every $1 available.
“We have lots of other money to actually build housing,” a senior housing official told the media, mentioning other HUD programs. “So this is not at all the only money that we have to address housing. We have billions of dollars here to help build more affordable housing.”
The Biden Administration asked for another $100 million in PRO Housing grants in its fiscal year 2025 budget, among $258 billion it’s proposed for housing efforts.
The awards come a day after HUD announced an unrelated $142 million in grants and loans, under its Green and Resilient Retrofit Program, to improve over 2,200 properties for low-income residents. The GRRP, created by the Inflation Reduction Act, has $754 million in funding and has aided over 16,400 rental properties.
In another unrelated move, the U.S. Department of the Treasury Monday said its Community Development FInancial Institutions Fund will provide $100 million over three years to support affordable housing production. Officials emphasized the Treasury announcement related to financing tools, while PRO Housing resources will be realized this summer.
Some of the PRO Housing funds will go to projects already underway, officials said. Some of Milwaukee’s $2.1 million award will address aging housing, while some of Denver’s $4.5 million will be used to upgrade utilities. While major cities won awards, Ketchum, Idaho, with a population under 4,000 residents, won $2.5 million.
“When people are doing affordable housing projects, and they find there’s an unexpected need for a new electrical line or sewer line, they can come and have infrastructure funding through PRO for their infrastructure remediation needs,” a senior housing official said.
The effort is part of President Biden’s moves to address the nation’s housing crisis, including a pending bill to provide $25,000 in down payment assistance to first-generation homebuyers.
Treasury Secretary Janet Yellen Monday separately suggested the Federal Home Loan Banks improve upon their affordable housing program, to expand their required net income contributions from a required 10% to 20%. Some banks have already upped their AHP funding to 20% voluntarily.
The Federal Housing Finance Agency last week requested public input on the Banks’ AHP, which critics have called overly complicated. The FHLBs’ contribution to affordable housing amounted to around $350 million last year.
Inside: Learn what 15 an hour is how much a year, month, and day. Plus tips to budget your money. Don’t miss the ways to increase your income.
You’re probably wondering if I made $15 a year, how much do I truly make? What will that add up to over the course of the year? Is $15 a living wage?
Is this wage something that I can actually live on? Or do I need to find ways that I can increase my hourly wage?
In this post, we’re going to detail exactly what $15 an hour is how much a year. Also, we are going to break it down to know how much is made per month, bi-weekly, per week, and daily.
That will help you immensely with how you spend your money. Because too many times the hard-earned cash is brought home, but there is no actual plan for how to spend that money.
By taking a step ahead and making a plan for the money, you are better able to decide how you want to live, make sure that you put your money goals first, and not just living paycheck to paycheck struggling to survive.
The ultimate goal with money success is to be wise with how you spend your money.
If that is something you want to do, then keep reading. You are in the right place.
$15 an Hour is How Much a Year?
When we ran all of our numbers to figure out how much is $15 per hour is as an annual salary, we used the average working day of 40 hours a week.
40 hours x 52 weeks x $15 = $31,200
$31,200 is the gross annual salary with a $15 per hour wage.
As of June 2023, the average hourly wage is $33.58 (source).
Let’s breakdown how that number is calculated.
Typically, the average work week is 40 hours and you can work 52 weeks a year. Take 40 hours times 52 weeks and that equals 2,080 working hours. Then, multiply the hourly salary of $15 times 2,080 working hours and the result is $31,200.
That number is the gross income before taxes, insurance, 401K or anything else is taken out. Net income is how much you deposit into your bank account.
That is just above the $30000 salary, which is a lower starter salary, but well below where you want to start about a $35000 salary.
Work Part Time?
But you may think, oh wait, I’m only working part time. So if you’re working part time, the assumption is working 20 hours a week at $15 an hour.
Only 20 hours per week. Then, take 20 hours times 52 weeks and that equals 1,040 working hours. Then, multiply the hourly salary of $15 times 1,040 working hours and the result is $15,600.
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How Much is $15 Per Month?
On average, the monthly amount would average $2,600.
Annual Amount of $31,200 ÷ 12 months = $2,600 per month
Since some months have more days and fewer days like February, you can expect months with more days to have a bigger paycheck. Also, this can be heavily influenced by how often you are paid on and on which days you get paid.
Work Part Time?
Only 20 hours per week. Then, the monthly amount would average $1,300.
How Much is $15 per Hour Per Week
This is a great number to know! How much do I make each week? When I roll out of bed and do my job, what can I expect to make at the end of the week?
Once again, the assumption is 40 hours worked.
40 hours x $15 = $600 per week.
Work Part Time?
Only 20 hours per week. Then, the weekly amount would be $300.
How Much is $15 per Hour Bi-Weekly
For this calculation, take the average weekly pay of $600 and double it.
$600 per week x 2 = $1,200
Also, the other way to calculate this is:
40 hours x 2 weeks x $15 an hour = $1,200.
Work Part Time?
Only 20 hours per week. Then, the bi-weekly amount would be $600.
How Much is $15 Per Hour Per Day
This depends on how many hours you work in a day. For this example, we are going to use an eight hour work day.
8 hours x $15 per hour = $120 per day.
If you work 10 hours a day for four days, then you would make $150 per day. (10 hours x $15 per hour)
Work Part Time?
Only 4 hours per day. Then, the daily amount would be $60.
$15 Per Hour is…
$15 per Hour – Full Time
Total Income
Yearly Salary (52 weeks)
$31,200
Yearly Salary (50 weeks)
$30,000
Monthly Wage (173 hours)
$2,600
Weekly Wage (40 Hours)
$600
Bi-Weekly Wage (80 Hours)
$1,200
Daily Wage (8 Hours)
$120
Net Estimated Monthly Income
$1,985
**These are assumptions based off simple scenarios.
Paid Time Off Earning 15 Dollars an Hour
Does your employer offer paid time off?
As an hourly employee, you may or may not get paid time off.
So, here are the scenarios for both cases.
For general purposes, we are going to assume you work 40 hours per week over the course of the year.
Case # 1 – With Paid Time Off
Most hourly employees get two weeks of paid time off which is equivalent to 2 weeks of paid time off.
In this case, you would make $31,200 per year.
This is the same as the example above for an annual salary making $15 per hour.
Case #2 – No Paid Time Off
Unfortunately, not all employers offer paid time off to their hourly employees. While that is unfortunate, it is best to plan for less income.
Life happens. There will be times you need to take time off for numerous of reasons – sick time, handling an emergency, or even vacation.
So, let’s assume you take 2 weeks off without paid time off.
That means you would only work 50 weeks of the year instead of all 52 weeks. Take 40 hours times 50 weeks and that equals 2,000 working hours. Then, multiply the hourly salary of $15 times 2,000 working hours and the result is $30,000.
40 hours x 50 weeks x $15 = $30,000
You would average $120 per working day and nothing when you don’t work.
$15 an Hour is How Much a year After Taxes
Let’s be honest… Taxes can take up a big chunk of your paycheck. Thus, you need to know how taxes can affect your hourly wage.
Also, every single person’s tax situation is different.
On the basic level, let’s assume a 12% federal tax rate and a 4% state rate. Plus a percentage is taken out for Social Security and Medicare (FICA) of 7.65%.
Gross Annual Salary: $31,200
Federal Taxes of 12%: $3,744
State Taxes of 4%: $1,248
Social Security and Medicare of 7.65%: $2,387
$15 an Hour per Year after Taxes: $23,821
This would be your net annual salary after taxes.
To turn that back into an hourly wage, the assumption is working 2,080 hours.
$23,821 ÷ 2,080 hours = $11.45 per hour
After estimated taxes and FICA, you are netting $11.45 an hour. That is $3.55 an hour less than what you planned.
This is a very highlighted example and can vary greatly depending on your personal situation. Therefore, here is a great tool to help you figure out how much your net paycheck would be.
Plus budgeting on a just over $11 an hour wage is much different.
$15 an hour Salary Calculator
Now, you get to figure out how much you make based on your hours worked or if you make a wage between $15.01-15.99.
This is super helpful if you make $15.25 or $15.35.
You are probably wondering can I live on my own making 15 dollars an hour? How much rent can you afford on 15 an hour?
Using our Cents Plan Formula, this is the best case scenario on how to budget your $15 per hour paycheck.
When using these percentages, it is best to use net income because taxes must be paid.
In this example, we calculated $15 an hour was $11.45 after taxes. That would average $1,985 per month.
According to the Cents Plan Formula, here is the high level view of a $15 per hour budget:
Basic Expenses of 50% = $992.55
Save Money of 20% = $397.02
Give Money of 10% = $198.51
Fun Spending of 20% = $397.02
Debt of 0% = $0
Obviously, that is not doable for everyone when living so close to minimum wage. So, you have to be strategic in ways to decrease your basic expenses and debt. Then, it will allow you more money to save and fun money.
To further break down an example budget of $15 per hour, then using the ideal household percentages is extremely helpful.
recommended budget percentages based on $15 per hour wage:
Category
Ideal Percentages
Sample Monthly Budget
Giving
10%
$130
Savings
15-25%
$312
Housing
20-30%
$780
Utilities
4-7%
$130
Groceries
5-12%
$208
Clothing
1-4%
$26
Transportation
4-10%
$104
Medical
5-12%
$130
Life Insurance
1%
$13
Education
1-4%
$26
Personal
2-7%
$48
Recreation / Entertainment
3-8%
$78
Debts
0% – Goal
$0
Government Tax (including Income Taxes, Social Security & Medicare)
15-25%
$615
Total Gross Income
$2,600
**In this budget, prioritization was given to basic expenses. Thus, some categories like giving and saving were less.
A great way to lower your transportation costs is to buy a beater car.
Can I Live off $15 Per Hour?
Living off close to minimum wage can be a very difficult situation.
Is it doable? Absolutely.
You just have to be wiser (or frugal) with your money and how you spend the hard-earned cash you have been blessed with.
A lot of times when people are making under near the minimum wage mark or slightly above, they feel like they are in this constant cycle that they can never keep up. They are not good enough to make more money. Feeling like they are constantly struggling to keep up with bills and expenses. And things just keep adding on top.
You need to do is change your money mindset.
This is what you say to yourself… Okay, this is my season of life right now. I have aspirations and goals to change how much I make, but for now, I am going to make sure that I am able to live on my 15 dollar per hour. No going into to debt for me.
In the next section, we will dig into ways to increase your income, but for now, is it possible to live on $15 an hour?
Yes, you can do it, and as you can see it is possible with the sample budget of $15 per hour.
Living in a higher cost of living area would be more difficult. So, you may have to get a little creative. For example, you might have to have a roommate. Move to a lower cost of living area where rent is cheaper.
Also, you must evaluate your “fun spending” items. Many of those expenses are not mandatory and will break your budget. You can find plenty of free things to do without spending money.
5 Ways to Increase Your Hourly Wage
This right here is the most important section of this post.
You need to figure out ways to increase your hourly income because I’m going to tell you…you deserve more. You do a good job and your value is higher than what your employers pay you.
Even an increase of 50 cents to $15.50 will add up over the year. Even better $16 an hour! The goal is $20 an hour or more!
1. Ask for a Raise
The first thing to do is ask for a raise. Walk right in and ask for a raise because you never know what the answer will be until you ask.
If you want the best tips on how specifically to ask for a raise and what the average wage is for somebody doing your job, then check out this book. In this book, the author gives you the exact way to increase your income. The purchase is worth it or go down to the library and check that book out.
2. Look for A New Job
Another way to increase your hourly wage is to look for a new job. Maybe a completely new industry.
It might be a total change for you, but many times, if you want to change your financial situation, then that starts with a career change. Maybe you’re stressed out at work. Making $15 an hour is too much for you and you’re not able to enjoy life, maybe changing jobs and finding another job may increase your pay, but it will also increase your quality of life.
3. Find a New Career
Because of student loans, too many employees feel like they are stuck in the career field they chose. They feel sucked into the job that they don’t like or have the potential they thought it would.
For many years, I was in the same situation until I decided to do a complete career change. I am glad I did. I have the flexibility that I needed in my life to do what I wanted when I needed to do it. Plus I am able to enjoy my entrepreneurial spirit.
4. Find Alternative Ways to Make Money
In today’s society, you need to find ways to make more money. Period.
There is no way to get around it. You need to find additional income outside a traditional nine to five position or typical 40 hour a week job. You will reach a point where you are maxed on what you can make in your current position or title. There may be some advancement to move forward, but in many cases, there just is not much room for growth.
So, you need to find side hustle – another way to make money.
Do something that you enjoy, turn your hobby into a way to make money, turn something that you naturally do, and help others into a service business. In today’s society, the sky is the limit on how you can earn a freelancing income.
There are so many legit ways to make 300 dollars fast today!
5. Earn Passive Income
The last way to increase your hourly wage is to start earning passive income.
This can be from a variety of ways including the stock market, real estate, online courses, book sales, etc. This is where the differentiation between struggling financially and being financially sound happens.
By earning money passively, you are able to do the things that you enjoy doing and not be loaded down, with having a job that you need to work, and a place that you have to go to. And you still make money doing nothing.
Here is an example:
You can start a brokerage account and start trading stocks for $50. You need to learn and take the one and only investing class I recommend. Learn how the market works, watch videos, and practice in a simulator before you start using your own money.
One gentleman started with $5,000 in his trading account and now has well over $36,000 in a year. Just from practice and being consistent, he has learned that passive income is the way for him to increase his income and also not be a slave to his job.
Tips to Live on $15 an Hour
In this last section, grasp these tips on how to live on $15 an hour. On our site, you can find lots of money saving tips to help stretch your income further.
Here are the most important tips to live on $15 an hour. Highlight these!
1. Spend Less Than You Make
First, you must learn to spend less than you make.
If not you will be caught in the debt cycle and that is not where you want to be. You will be consistently living paycheck to paycheck.
In order to break that dreadful cycle, it means your expenses must be less than your income.
And when I say income, it’s not the $15 an hour. As we talked about earlier in the post, there are taxes. The amount of taxes taken out of your paycheck is called your net income which is $15 an hour minus all the taxes, FICA, Social Security, and Medicare are taken out. That is your net income.
So, your net income has to be less than your gross income.
2. Living Below Your Means
You need to be happy. And living on less can actually make you happier. Studies prove that less is better.
Finding contentment in life is one thing that is a struggle for most.
We are driven to want the new shiny toy, the thing next door, the stuff your friend or family member got. Our society has trained you that you need these things as well.
Have you ever taken a step back and looked at you really need?
Once you are able to find contentment with life, then you are going to be set for the long term with your finances.
Here is our story on owning less stuff. We have been happier since.
3. Make Saving Money Fun
You need to make saving money fun.
Save money with the popular 100 envelope challenge.
It could be participating in a no spend challenge for the month.
Start a billionaire morning routine to build a wealth mindset.
Maybe changing your habits and not picking up takeout and planning meals.
Whatever it is challenge yourself.
Find new ways of saving money and have fun with it.
Even better, get your family and kids involved in the challenge to save money. Tell them the reason why you are saving money and this is what you are doing.
Here are things to do with no money. Free activities without costing you a dime. That is an amazing resource for you and you will never be bored.
And you will learn a lot of things in life you can do for free. Personally, some of the best ones are getting outside and enjoying some fresh air.
4. Make More Money
If you want if you do not settle for less, then find ways to make more money. If you want more out of life, then increase your income.
You need to be an advocate for yourself.
Find ways to make more money.
It could be a side hustle, a second job, asking for a raise, going to school to change careers, or picking up extra hours.
Whatever path you take, that’s fine. Just find ways to make more money. Period.
5. No State Taxes
Paying taxes is one option to increase what you take home in each paycheck.
These are the states that don’t pay state income taxes on wages:
Alaska
Florida
Nevada
New Hampshire
South Dakota
Tennessee
Texas
Washington
Wyoming
It is very interesting if you take into account the amount of state taxes paid compared to a state with income taxes.
Also, if you live in one of the higher taxed states, then you may want to reconsider moving to a lower cost of living area. The higher taxes income tax states include California, Hawaii, New Jersey, Oregon, Minnesota, District of Columbia, New York, Vermont, Iowa, and Wisconsin. These states tax income somewhere between 7.65% – 13.3%.
6. Stick to a Budget
You need to learn how to start a budget. We have tons of budgeting resources for you.
While creating a budget is great, you need to learn how to use one.
You do not have to budget down to every last penny.
You need to make sure your expenses are less than your income and that you are creating sinking funds for those irregular expenses.
Budget Help:
7. Pay Off Debt Quickly
The amount that you pay interest on debt is absolutely absurd.
Unfortunately, that is how many of these companies make their money is from the interest you pay on debt.
If you are paying 5% to even 20-21% or higher, you need to find ways to lower that debt quickly.
Here’s a debt calculator to help you. Figure out your debt free date.
Make that paying off debt fast is your target and main focus. I can tell you from personal experience, that it was not until we paid off our debt that we finally rounded the corner financially. Once our debt was paid off, we could finally be able to save money. Set money aside in separate bank accounts and pay for cash for things.
It took us working hard to pay off debt. We needed persistence and patience while we had setbacks in our debt free journey.
Jobs that Pay $15 an Hour
You can find jobs that pay $15 per hour. Polish up that resume, cover letter, and interview skills.
Job Search Hint: Always send a written follow-up thank you note for your interview. That will help you get noticed and remembered.
First, look at the cities that require a minimum wage in their cities. That is the best place to start to find jobs that are going to pay higher than the federal minimum wage rate. Many of the cities are moving towards this model so, target and look for jobs in those areas.
Possible Ideas:
Customer service representatives
Paraeducators at schools
Warehouse workers
Retail workers
Cashiers
Housekeeper
Delivery Drivers
Overnight Stockers
Companies that pay more than $15 per hour:
L.L. Bean
Chick-Fil-A
Panera Bread
Torchy Tacos
McDonald’s
Five Guys
Costco
Wayfair
Amazon
Many grocery stores
Best Buy
Target
Wells Fargo
Disney World
Disney Land
Bank of America
JP Morgan
Cigna
Aetna
Maybe working as a virtual assistant with no experience is right for you??
$15 Per Hour Annual Salary
In this post, we detailed 15 an hour is how much a year. Plus all of the variables that can impact your net income. This is something that you can live off.
How much is 15 dollars an hour annually…
$31,200
In this post, we highlighted ways to increase your income as well as tips for living off your wage.
Use the sample budget as a starting point with your expenses.
You will have to be savvy and wise with your hard-earned income. But, with a plan, anything is possible!
Now, find low stress jobs that don’t need a degree and pay well!
Know someone else that needs this, too? Then, please share!!
Did the post resonate with you?
More importantly, did I answer the questions you have about this topic? Let me know in the comments if I can help in some other way!
Your comments are not just welcomed; they’re an integral part of our community. Let’s continue the conversation and explore how these ideas align with your journey towards Money Bliss.