Money Management Archives - Page 5 of 22

Apache is functioning normally

November 21, 2023 by Brett Tams

Looking to know where to cash coins for free near you? Saving coins can be a great way to save money without even noticing it. However, when you end up with a jar full of loose change, finding an easy way to cash in your coins without paying a fee can feel like a challenge….

Looking to know where to cash coins for free near you?

Saving coins can be a great way to save money without even noticing it. However, when you end up with a jar full of loose change, finding an easy way to cash in your coins without paying a fee can feel like a challenge. Places that have free coin cashing services do exist, so you can enjoy the full value of the money that you have saved.

In this article, I will be talking about places where you can exchange your coins for free near you. We’ll also discuss the pros and cons of using Coinstar machines and tips on how to find coin exchanges in your area. Rolling coins might be an option for you too, and I will explain how to wrap coins as well.

Key Takeaways

Several places will cash coins without charging a fee.
Local banks and credit unions are a great choice for coin exchange.
Coinstar machines are a popular option but may come with a fee. They do have many no fee e-gift cards, though.
Rolling your coins and using free services from banks can save you money.

9 Places To Cash Coins For Free (Or Cheap!)

Finding the right place to exchange your coins can make a big difference. It’s not just about convenience, it’s about keeping more of your money too. Many people hoard coins without realizing the actual value. Dumping your coins into the first machine you see can cost you.

Did you know that some coin exchange machines charge up to 11.9% to convert your change into cash? If you have $100 in coins, that’s nearly $12 lost. It might not seem like much initially, but imagine losing $12 for every $100 in coins you have.

That’s why it’s important to choose the best place to convert your coins into cash. Below are the best places to cash coins for free near you.

1. Wells Fargo

Wells Fargo is a popular bank that allows you to cash your coins for free if you are a customer. You can visit your local branch and ask the teller for help with processing your coins to get cash in return.

2. Credit unions

Credit unions are similar to banks and also have coin exchange services for their members at no additional cost. There are some credit unions that don’t charge for nonmembers as well, so you may be able to call around and see if there is one near you that can exchange your coins for cash for you.

3. Bank of America

As one of the largest banks in the United States, Bank of America allows its customers to cash coins for free. They do require that your coins be rolled, so you will have to remember to do that first.

4. Chase

Chase is another popular banking institution where you can cash your coins without any extra fees. However, you need to be a Chase customer to access this service. Before you go, though, make sure to check Chase’s branch location to make sure that they accept coins as there are some locations that do not.

5. US Bank

If you have an account with U.S. Bank, you can cash your coins free of charge. Just bring your coins and account details to the branch, and their staff can help you. You don’t even need to roll your coins either.

6. QuikTrip

QuikTrip is a convenience store and gas station chain that often allows you to cash your coins for free. Depending on the location, QuikTrip may or may not charge service fees for coin exchanges. QuikTrip’s coin exchange program is a great option for those who need to cash coins quickly without the hassle of becoming a bank member.

They do this because there is a shortage of coins, and they are in need of coins. I do recommend rolling them ahead of time so that you are saving everyone time.

7. Target

Target stores with Coinstar machines allow you to cash your coins for a fee (generally 11.9% or more). Coinstar machines are convenient and can be found in many places.

8. Citi Bank

As a large financial institution, Citibank also permits its customers to cash coins for free. Visit your local branch with your account details and coins, and their staff will help you with converting your coins into cash.

9. Coinstar coin counting machines

I wanted Coinstar to have its own section in this article because it is so well-known as a coin counting machine. Whether you have just some loose change or if you have a busting piggy bank, Coinstar does make it easy.

Below, I will be diving further into Coinstar. And, yes, there is a way to use these coin counting machines near you for free.

What is Coinstar?

Coinstar is a service that has coin counting machines, commonly found in grocery stores, retailers, and more. These kiosks make it easy for you to convert loose change into cash, gift cards, or even donate to charity.

Charity options include the American Red Cross, Children’s Miracle Network Hospitals, Make-A-Wish, NAACP, The Humane Society of the United States, United Nations Children’s Fund (UNICEF), and more.

How to find Coinstar machines

To locate a Coinstar kiosk near you, simply use Google Maps or visit Coinstar’s website and access their Coinstar Kiosk Locator. I used their locator and I found 30 Coinstar machines within just around 30 minutes of me – so there are probably a few coin counting machines near you as well!

There are Coinstar coin sorter machines at Walmart, Safeway, CVS, Winn-Dixie, local credit unions, Target, and more.

Coinstar fees

While it’s convenient to use Coinstar to count and exchange your coins, it’s important to know of the fees associated with cashing in your change when using their machines. Coinstar charges an 11.9% coin processing fee when you convert your coins into cash.

How do I avoid Coinstar fees?

There is a way to cash in your coins at a Coinstar counting machine for free.

If you choose an e-gift card option instead of cash, coin counting is free at most locations in the United States. With a wide variety of eGift Card options from popular stores and restaurants, you can avoid the fees while still benefiting from your collected coins. Some of the places where you can get Coinstar gift cards include AMC Movie Theaters, Amazon, Apple, Cabela’s, Dominos, DoorDash, Lowe’s, Starbucks, Chili’s, Nike, GameStop, Applebee’s, Outback Steakhouse, and more.

How does Coinstar work?

Cashing in your coins is easy with Coinstar. You simply:

Find a Coinstar coin machine near you.
Put your coins into the machine.
Choose to get cash (which has around an 11.9% fee), receive a no-fee gift card, or give a charity donation.
Check the return tray for any coins that were rejected.
Receive your payment. If you chose cash, then you will receive a voucher that you will need to redeem, and you should redeem it on the same day. If you chose a gift card, you can use the unique code printed at the top of the voucher anytime to redeem your gift card.

How to roll coins

If you want to turn your coins into cash, then you may want to learn how to roll coins.

Rolling coins can be an easy way to organize and store your loose change, making it easier to cash them in for free at banks or credit unions. This can help you save on any fees that might be charged by coin counting machines.

First, gather all the coins you’d like to roll. Separate them by denomination (pennies, nickels, dimes, quarters) to make the process easier. Next, you’ll need coin rolls, which are paper or plastic tubes designed to hold a specific number of coins. You can often find these at your local bank or credit union, or buy coin wrappers online on Amazon. These rolls not only help you keep track of your savings but also make it easier for places to accept your coins.

Once you have your coin rolls, start filling them with the appropriate coins. Be sure to use the correct roll for each denomination, as follows:

Pennies: 50 per roll
Nickels: 40 per roll
Dimes: 50 per roll
Quarters: 40 per roll

After filling the rolls, fold or twist the open ends to secure the coins inside. It’s important to have the correct number of coins in each roll to have accurate counting when you take them to the bank.

Now that your coins are rolled, you can cash them in for free at various locations. Banks and credit unions are often the best places to exchange coins, especially if you’re an account holder. It’s always a good idea to call ahead and confirm that they accept rolled coins. Some institutions may have specific requirements for accepting rolled coins, such as labeling the rolls with your account number or providing a deposit slip.

In addition, some stores or gas stations might cash coins for free during a coin shortage, like QuikTrip. Be sure to keep an eye out for such opportunities in your area.

By taking the time to roll your coins, you’re not only organizing your spare change but also potentially improving your overall savings. Rolling coins is a simple process that can provide a great way to turn your loose coins into cash without any additional fees.

Frequently Asked Questions About Where To Cash Coins For Free

Below are answers to common questions about where to cash coins for free.

Where can I cash in coins for free?

You can cash in coins for free at several banks, credit unions, and some stores. Banks like Bank of America, Wells Fargo, and U.S. Bank are known to have this service. Additionally, some credit unions (like American Eagle Federal Credit Union and Westerra Credit Union) and QuikTrip stores also have free coin exchanges.

Where can I find a free coin counting machine?

Free coin counting machines can be found at certain banks and credit unions, as well as some stores like QuikTrip.

Do all banks cash coins for free?

Not all banks have free coin-cashing services, and this service depends on the bank and whether or not you hold an account with them. Some banks may charge noncustomers a fee for coin-cashing services while providing the same for their customers free of cost.

Which banks offer free coin exchange services?

Banks that have free coin exchange services include Bank of America, Wells Fargo, U.S. Bank, Citibank, Capital One, Chase, Citizens Bank, PNC Bank, TD Bank, and more. Credit unions can also be a great option for exchanging coins without a fee.

Are coin sorting and counting machines accurate?

Yes, most coin sorting and counting machines are accurate. However, like all machines, there may be a margin of error, and the accuracy can also largely depend on the specific machine and its maintenance.

Are there any alternatives to Coinstar for cashing in coins?

Yes, there are alternatives to Coinstar for cashing in coins. Going to a bank, credit union, or QuikTrip store can be a better option, as many have free coin counting machines and exchanges, but you should always call ahead to make sure they will change your coins into cash.

How much does Coinstar take out of $100?

Coinstar charges a fee of around 11.9% for cashing in your coins. So, if you cash in $100 worth of coins, Coinstar would take about $11.90, leaving you with $88.10 in cash.

Does Walmart have free coin exchange services?

Walmart doesn’t have free coin exchange services themselves, but some locations have Coinstar coin counter machines. Keep in mind that Coinstar charges a fee, but you can avoid this by choosing a gift card option instead.

Are there any free coin deposit options at Bank of America?

Bank of America has free coin deposit options for its customers. However, you should call your local branch beforehand to make sure they have a coin counting machine available, as not all locations may provide this service.

How To Find Free Coin Counting Machines Near You – Summary

I hope you enjoyed this article on how to find the best places to cash coins for free.

Finding free coin counting machines near you can help you turn your loose change into cash or even gift cards without any additional fees. The best places to turn your coins into cash include:

Local banks and credit unions – Many banks and credit unions have free coin counting services for their customers.
QuikTrip gas stations – QuikTrip has gas stations across 11 states, with 800 locations in total. Some of these locations have free coin counting and exchange services to make up for the coin shortage. You can check the availability of coin counting machines at your local QuikTrip by giving a location a call.
Retailers with coin counting machines – Some stores have coin counting machines that can be used for free or for a very low fee.

As you look for free coin counting machines near you, remember to give them a call first. The fees or services will vary so you will want to check with them directly first.

When was the last time you turned your coins into cash?

Apache is functioning normally

November 15, 2023 by Brett Tams

Are you looking for the best places to get money orders near you? Sometimes, companies and people do not accept personal checks or other forms of payment, and they may prefer a money order instead. If you need a safe way to pay for things when you can’t use a credit card or online transfer,…

Are you looking for the best places to get money orders near you?

Sometimes, companies and people do not accept personal checks or other forms of payment, and they may prefer a money order instead.

If you need a safe way to pay for things when you can’t use a credit card or online transfer, then money orders can be an easy way around this. They are easy to get and accepted in many places for different payments.

But where can you get a money order close by?

There’s a good chance that you’ve never gotten a money order before or maybe not very often so you don’t remember. I have only ever had to get just a few money orders in my life, so I understand!

In this article, I’ll talk about some of the top places to get money orders near your home, work, or school. You can find them at places like grocery stores, banks, and more, and many of these might be really close by.

Key Takeaways

Many people like using money orders to make payments, and there are lots of places where you can get them nearby.
Some of the top places to get money orders include 7-Eleven, Walmart, the post office, your local grocery store, and more.
To find the best option for you, see what their money order amount limit is (it’s usually either $500 or $1,000) and what their money order fee is.

What is a Money Order?

A money order is a payment method that’s guaranteed and you can buy it from different places. It’s usually a safer option compared to sending cash or personal checks.

Some benefits of using money orders include:

They are safe – Money orders are a secure means of sending money because they don’t contain your bank account information. This reduces the risk of your account being compromised in case your personal check gets lost. It is also much safer than putting straight cash in the mail.
They are widely accepted – Money orders are accepted by most recipients, as they are considered a guaranteed form of payment.
They are easy to get – You can purchase money orders at many different places, such as Walmart, post offices, grocery stores, and banks.

There are some risks when it comes to money orders too, though. There are a lot of scams that involve money orders, both receiving them and sending them out. You also don’t want to lose a money order, as it can be hard to recover the funds from it. Also, there are fees – some places may charge fees for the purchase or cashing of money orders.

Recommended reading: How To Write a Check: A Step-by-Step Guide To Fill Out A Check

11 Places to Get Money Orders Near Me

Below are the best places to get money orders near you.

1. Walmart

At your local Walmart, you can easily purchase money orders at their customer service counter or their Money Services Center.

They usually have affordable fees (money orders at Walmart are typically only around $1), and it’s an easy option if you’re already shopping there. Plus, even if you’re not shopping at Walmart, there is probably one near you because they have thousands of locations – so, this may be an easy stop for you.

Walmart’s limit for a money order is $1,000, and the money orders are issued by MoneyGram.

I have personally gotten a money order from Walmart in the past, and it only took a few minutes.

2. Post office

The United States Postal Service (USPS) has money orders at their post office locations. Simply bring cash, a debit card, or a traveler’s check (you cannot pay with a credit card), and fill out the money order at the counter with a worker. There are over 30,000 post offices in the United States, so there is most definitely one near you.

USPS money order fees are:

From $0.01 to $500.00, the fee is $2.00
From $500.01 to $1,000.00, the fee is $2.90
For Postal Military Money Orders (issued by military facilities), the fee is $0.65

USPS has a limit of $1,000 for a money order.

I have personally gotten a money order from the post office in the past, and it only took a few minutes.

3. 7-Eleven

Your nearby 7-Eleven may be another option to get money orders and it is a popular choice. Availability can vary by location, so it’s a good idea to call ahead and check if they provide this service.

7-Eleven fees for money orders are around 1% to 3% of the amount you put on the money order. It depends on the location as they charge different fees. 7-Eleven uses MoneyGram or Western Union, and this also depends on the location.

The limit for a money order at 7-Eleven is $500.

4. CVS

In addition to picking up your prescriptions and everyday essentials, you can visit a CVS store to get a money order. Money orders can be purchased at the counter, making it an easy stop for this service.

CVS sells MoneyGram money orders for $1.25.

The limit for a money order at CVS is $500.

5. Kroger (and other grocery stores)

Kroger, along with many other grocery stores like King Soopers, Fred Meyer, Fry’s, and Meijer also have money order services. These options are great because you can go grocery shopping and get a money order at the same place.

The exact fees for a Western Union money order from Kroger depend on the state you are in. It is typically around $1.00 if you have a Kroger card (which is free) and $1.10 without a card.

Kroger’s limit for a money order is $1,000, but it could be $500 at some locations.

6. Western Union

Western Union is a popular choice for its money transfer services, which also include buying money orders.

This may be confusing, but Western Union also has in-person locations where you can get money orders as well. So, you can get them at some of the places listed above, as well as Western Union locations.

The fee for a money order from Western Union is anywhere from around $0.50 to $2.99.

Western Union’s limit for a money order is $1,000.

7. MoneyGram

Similar to Western Union, MoneyGram is another popular service for money transfers and money orders. You can find MoneyGram service locations in retailers, banks, and even some grocery stores. They also have their own locations as well.

The fee for a money order from MoneyGram is as little as $0.70.

MoneyGram’s limit for a money order is $1,000.

8. Publix

Publix is another grocery store where you can get money orders near you. There are Publix locations in Alabama, Florida, Georgia, North Carolina, South Carolina, Tennessee, and Virginia. Simply head to their customer service desk and see if they have money orders.

The fee for a Western Union money order from Publix costs $0.85.

The limit for a money order at Publix is $500.

9. Local credit union

Credit unions are usually a preferred choice for money orders since they are owned by their members. Your local credit union may have money orders at competitive rates. It’s worth checking if you already have an account or are considering joining one.

I have personally gotten a money order from my local credit union in the past, and it only took a few minutes.

10. Chase and other banks

Many banks, such as Chase, Wells Fargo, Bank of America or even your local bank, have money order services for their customers. The fees may differ between banks, but it’s an easy option if you already bank with them.

The fee for a money order from Chase costs $5.00, but it can be waived and free for certain categories of members.

Chase’s limit for a money order is $1,000.

11. Local check cashing company

Lastly, local check cashing companies usually have money order services. While fees are typically higher, these companies are easy options for people who need a money order quickly or don’t have an account with a traditional bank.

Remember to always compare fees, convenience, and reliability when choosing the best place for your money order needs.

Steps to get a money order

Wondering how money orders work? Makes sense, you may have never used one or probably not very often. I can count on my two hands how many times I have needed to get a money order!

With that being said, even if you don’t get a money order very often, they are easy to get and are pretty painless.

How to buy a money order

Here are the steps you can follow to buy a money order near you:

Choose a money order provider – Based on your preference, location, and fees, find a place where you can purchase a money order.
Gather the required information – Make sure you know the recipient’s name and address, as well as the amount of the money order.
Bring a valid form of payment – Money orders usually require cash, a debit card, or a traveler’s check. Credit cards are usually not accepted.
Bring a valid form of ID – At some locations, you may need an ID, such as your driver’s license.
Fill out the money order – This may include writing the recipient’s name, your address, and the amount. Be sure to carefully fill in all required fields.
Pay the face value, plus the money order service fee – Keep in mind that fees will depend on who is selling the money order.
Keep your receipt – This is very important as it will help you track the money order and provide proof of purchase if needed.

Keep in mind that domestic money orders typically have higher limits than international money orders.

Possible problems with money orders

Money orders can be a safe and easy way to send money, but they come with some possible problems. In this section, we’ll talk about things like losing or having a money order stolen, the chance of fraud, and how to know if a money order is real.

Lost or stolen money orders

Losing a money order or having it stolen can be a frustrating experience. If you find yourself in this situation, it’s important to act quickly:

Contact the issuer – Reach out to the company that issued the money order (such as Western Union, MoneyGram, or USPS) and provide them with the relevant details including the money order number and purchase date (this is why it’s important to keep your receipt!).
Complete a claim form – Most issuers will require you to fill out a claim form with information about the lost or stolen money order.
Pay a processing fee – There may be a small fee to process your claim and issue a replacement money order.
Wait for a resolution – It can take several weeks for the issuer to complete their investigation and issue a refund or replacement.

Keep your receipt and any other documentation related to your money order, as you may need these for evidence of your purchase to the issuer.

When I need a money order, I usually keep the receipt, but I also take a picture of it with my phone just in case I lose the receipt.

Potential for fraud

Unfortunately, there are money order scams because scammers might try to make fake money orders or change the amount on real ones. To stay safe from fraud, don’t take money orders from people you don’t know, and be extra careful if you’re dealing with large amounts of money orders as well.

Here are a few tips to avoid falling victim to money order fraud:

Check to make sure that the money order is from a reputable financial institution or money transfer service. Also make sure that you actually know the person who is sending or receiving the money order!
Authentic money orders will typically have specific security features, such as watermarks or security threads, to help prevent counterfeiting.
Trust your instincts and if something seems off or too good to be true, then be cautious.

Frequently Asked Questions About Money Orders Near Me

Below are answers to common questions about how to purchase a money order.

Where is the easiest place to get a money order?

The easiest place to get a money order would be your local post office, as they usually have lower fees and there are post offices all over. Also, some retail stores, like Walmart and grocery stores, have money orders for a low price. I have bought money orders from many different places, and I usually just go for whatever is the closest as the fees are typically quite similar.

Where can I purchase a money order nearby?

You can buy a money order in different places like post offices, banks, credit unions, and stores like Walmart. You can also get them from money transfer services like MoneyGram or Western Union. To find a place close to you, search on your cell phone’s map for “where to get a money order near me.”

Do supermarkets have money orders?

Lots of big grocery stores have a service where you can get a money order right at their customer service desks. Some include Kroger, Publix, and Safeway.

Can I buy a money order at a bank?

Yes, definitely. Most banks and credit unions have money orders for their customers. Note that bank fees for money orders might be higher than those at other locations. It’s also a good idea to see if the bank requires you to be an account holder to purchase a money order.

Are money orders available at Walgreens or CVS?

CVS locations have money orders, usually through money transfer services like MoneyGram. Keep in mind that not all locations offer this service, so it’s best to call your local store and confirm before visiting. Walgreens used to have money order services, but they no longer have this service.

Do gas stations sell money orders?

Some gas stations do sell money orders through providers like MoneyGram or Western Union. A common way to get one is by getting a 7-Eleven money order. However, availability may vary depending on the specific gas station, so it’s a good idea to call ahead and check if they offer the service and confirm any fees.

How much does a money order cost?

When you decide to purchase a money order, it’s important to be aware of the costs and fees associated. Generally, money orders involve two primary costs: the face value of the money order and the service fee for issuing the money order. Fees might vary depending on the provider and the amount. It is generally around $1 to $2 for a money order.

Who sells the cheapest money orders near me?

The cheapest money orders are usually sold at Walmart. Some banks give them for free to their account members as well.

How do you cash a money order?

To cash a money order, you’ll need to visit a location that has this service, such as a bank or Walmart. You’ll need to endorse the money order by signing the back (just like you would with a check), and provide identification to prove that you’re the person on the money order. There will also be a fee to cash a money order.

Where to purchase money orders near me? – Summary

I hope you enjoyed this article on where you can buy money orders near you.

To find a place to purchase a money order near you, use a search engine or your phone’s map and search for “where to get money orders near me.”

This will usually give you a list of nearby money order locations, such as post offices, banks, retail stores, or money transfer services. Check their websites or call to confirm availability, fees, and payment methods accepted.

How often do you need to use a money order?

Source: makingsenseofcents.com

Apache is functioning normally

November 13, 2023 by Brett Tams

This is a sponsored partnership with The Entrust Group. Having more options for your retirement savings is always nice. And that’s where self-directed IRAs (SDIRAs) come in. These tax-advantaged accounts allow you to invest in real estate, small businesses, private equity, gold, oil, and more. An SDIRA differs significantly from an IRA or a 401k…

This is a sponsored partnership with The Entrust Group.

Having more options for your retirement savings is always nice.

And that’s where self-directed IRAs (SDIRAs) come in. These tax-advantaged accounts allow you to invest in real estate, small businesses, private equity, gold, oil, and more. An SDIRA differs significantly from an IRA or a 401k from a brokerage, where your options are limited to traditional assets like stocks, bonds, and mutual funds.

SDIRAs do give you more choices, but there is more work needed from you as they are a tad more complicated.

Key Takeaways

Self-directed IRAs can diversify your portfolio with different kinds of alternative assets.
SDIRAs can be set up as traditional or Roth IRAs.
There are cons to having an SDIRA, such as possible scams and the need for increased due diligence on the part of the account holder.

What is a Self-Directed IRA? – Complete Guide

So, what is a self-directed IRA?

A self-directed IRA (SDIRA) is simply an IRA in the eyes of the IRS.

But there is a big difference.

The most significant change with using an SDIRA is that you can invest in assets that are different from a standard retirement account (such as real estate, gold, bitcoin, and more – otherwise known as “alternative assets”), AND you can still use the same tax benefits as any other IRA.

Every investment and transaction is made on your request – not at the discretion of a financial institution.

Why have I never heard of a self-directed IRA?

Okay, so until recently, I had yet to hear of a self-directed IRA. You may not have either.

This is because SDIRAs are less common than the typical IRA you might already have. There are many different options for building your retirement portfolio out there, and this one requires more work on your end, so it’s less commonly used.

But, SDIRAs do have a wide range of potential. They are helpful for investors who want to diversify their retirement portfolio with assets beyond the usual stocks and bonds. In particular, they are an excellent option for investors with expertise in a specific area, like real estate or startups. They allow investors to use their existing retirement funds to invest in these types of assets to better take advantage of their own experiences.

How is a self-directed IRA different from a regular IRA?

The main difference between a self-directed IRA and one that is not self-directed is the different investment options available. SDIRAs can invest in alternative assets such as real estate, private businesses, precious metals, etc. However, standard IRAs are limited to stocks, bonds, and mutual funds.

If you’re looking to diversify your assets, then this may be a retirement account that could be great for you.

Types of self-directed IRAs

With SDIRAs, you can still receive the same tax benefits as an IRA holding publicly traded assets.

There are two main categories of self-directed accounts: traditional and Roth. Both have tax advantages, but they differ in how your contributions and withdrawals are taxed.

Traditional self-directed IRA – Your contributions are made with pre-tax dollars, which could lower your taxable income. There are also no income limits on contributions. When withdrawing the funds at retirement, you pay taxes on the distributions.
Roth self-directed IRA – Your contributions are made with after-tax dollars, so they don’t reduce your taxable income. All qualified withdrawals at retirement will be tax-free, including any gains your investments have made.

It’s essential to evaluate your financial situation and goals when choosing the type of SDIRA that’s best for you. There are also income and contribution limits to remember, mainly as these are updated annually.

How does a self-directed IRA work?

To invest with a self-directed IRA, you’ll have to open an account with a financial institution offering SDIRAs, often called a custodian, administrator, or recordkeeper.

After that, you can transfer or rollover money from an existing IRA or 401(k) into your SDIRA and look for an asset to invest in. You’ll be in charge of all asset decisions (this means that it’s your job to do as much research as you can), as well as ongoing account management.

It’s crucial to remember: per IRS rules, the custodian you choose does not help you to make investment choices. There are also other rules and regulations you must follow (you can read more about this at Self-Directed IRA Rules), such as avoiding prohibited transactions and staying within the annual contribution limits.

What Can You Invest In With A Self-Directed IRA?

A self-directed IRA lets you invest in various assets compared to regular IRAs.

Common investment choices

With a self-directed IRA, you can invest in assets such as:

Real estate – This could be rental properties, hotels, parking garages, or even empty land.
Precious metals – You can invest in physical gold, silver, platinum, and palladium.
Private equity – This includes investing in private companies not listed on public stock exchanges, including small businesses and start-ups.
Cryptocurrencies – Some self-directed IRAs allow investing in digital currencies like Bitcoin and Ethereum.
Commodities – You can invest in oil, gas, sustainable energy, and more.

Prohibited investments in self-directed IRAs

While there are many new things that you can invest in with an SDIRA that you may not normally do, there are some that are not allowed. Here are some examples of investments that are not allowed:

Collectibles – You cannot invest in antiques, artwork, and stamps.
Life insurance
S Corporations

Explore over 90 alternative assets you can invest in with a self-directed IRA (and learn more about the ones you can’t) here!

Understanding a Self-Directed IRA (SDIRA)

Here are some essential things to think about when it comes to self-directed IRAs:

Due diligence

Due diligence means doing careful research and checking everything thoroughly before making an important decision. Since you are responsible for all the investment choices, you’ll want to do your homework beforehand to make sure you know all the facts and risks involved.

Legalities and regulations

You should be aware of the legalities and regulations surrounding SDIRAs. As mentioned before, certain transactions, such as investing in life insurance or collectibles, may be prohibited. There are also separate IRS deadlines for some types of assets.

In addition to the prohibited transactions listed above, it’s also essential to remember that the IRS has strict regulations concerning who can materially benefit from or transact with the SDIRA – known as “disqualified persons.” These are people like your spouse and children. For example, if you purchase a rental property, you (and your family) cannot use it for a family vacation.

Fees and expenses

SDIRAs have fees for recordkeeping and making transactions. Knowing the costs can impact how much money you make from your investments and may change your decisions.

Contribution limits and rules

Like IRAs from a bank or brokerage, SDIRAs have annual contribution limits. Be mindful of the limitations and make sure that your contributions follow the rules set by the IRS.

Withdrawal rules and penalties

You should be aware of the self-directed IRA withdrawal rules and penalties. Early withdrawals made before the age of 59.5 years may be subject to a 10% penalty and additional taxes. Additionally, if the funds are tax-deferred, you must also pay income taxes on the distributed amount.

Pros and cons of a self-directed IRA

Advantages of self-directed IRA:

Diversification – You can invest in real estate, private equity, precious metals, and other alternative assets.
Tax benefits – SDIRAs have the same tax advantages as regular IRAs. You can enjoy tax benefits based on the type of IRA (traditional or Roth) you choose.
Potential for higher returns – With a self-directed IRA, you can go after investments that might earn you more money than the usual choices. This could mean your retirement savings grow faster in the long run.

Disadvantages of self-directed IRA:

Can be more complex – Managing an SDIRA can be a more complicated process due to having more responsibility in choosing suitable investments and having to do more research. There is also less transparency surrounding alternative assets than those traded on the public market.
Higher risk – There may be higher risks, such as illiquidity, lack of regulatory oversight, and market volatility. There are also more scams in the SDIRA world because the investments differ and don’t have as much oversight.
Fees and expenses – SDIRAs often have higher fees, such as custodial, transaction, and recordkeeping fees.

How to Open a Self-Directed IRA

Setting up a self-directed IRA requires a bit more work than opening one through a bank or brokerage.

Here are some steps:

Find an SDIRA provider. Often referred to as an administrator or custodian, this entity is a financial institution that handles alternative investments and fulfills IRS-mandated recordkeeping requirements associated with your self-directed IRA.
Ensure they can hold the asset you want to invest in. For example, not all SDIRA custodians allow single-member LLCs or cryptocurrencies.
Choose between a traditional or Roth SDIRA
Create your account and pay your account establishment fee
Fund your SDIRA via a transfer, rollover, or contribution

Note: Having an experienced financial advisor can be super helpful in handling your SDIRA, as they can give you expert advice on what you should do.

The Entrust Group Review

Want to open a self-directed IRA? A popular administrator option is The Entrust Group, which has been in the business for over 40 years, with over 45,000 investors and $4 billion in assets under custody.

Opening an account with The Entrust Group makes the process easy, and you can choose your funding type, including rolling over an old 401(k), transferring an existing IRA, or making a new contribution.

Keep in mind that there are increased fees associated with an SDIRA. But, The Entrust Group is open about their fee structure, which you can find on their website here. Some of their fees include:

Account establishment fee – This one-time fee covers the cost of opening an account.
Annual recordkeeping fee – This is the fee that covers IRS reporting, recordkeeping, and admin.
Purchase and sale of asset fees – This one-time fee covers the paperwork required to execute the purchase or sale of an asset.
Transaction fees – These fees are charged for transactions.

The Entrust Group has a quick calculator that you can play around with to see what your fees are. I spent some time with it to better understand the different fees; for example, if I have one asset valued at $45,000, my one-time setup fee would be around $50, and my recordkeeping fee would be $199. If I have two assets with a total value of $100,000, then my set up fee is $50, plus the recordkeeping fees of $374. However, any undirected cash in your account isn’t subject to recordkeeping fees; so you won’t be subject to these when you’re between investments.

In summary, The Entrust Group is a reputable and experienced provider of self-directed IRA services, giving you the power to invest in many different alternative assets. If you want to diversify your investment portfolio simply, The Entrust Group may be a choice for your self-directed IRA.

Download their free Self-Directed IRAs: The Basics Guide to learn how you can take control of your financial future with an SDIRA with The Entrust Group.

Frequently Asked Questions About Self-Directed IRAs

Below are answers to common questions about self-directed IRAs.

What are the risks of a self-directed IRA?

Some risks of self-directed IRAs include the potential for fraud, and higher fees, and it may be a little more challenging to manage your alternative investments because there are more rules. And you are entirely in control of your account – so it requires more of a time investment. Also, self-directed IRAs require a custodian, and fees for these services can be higher than with a regular IRA.

Do you pay taxes on a self-directed IRA?

Yes, you do pay taxes on a self-directed IRA, but as with a regular IRA, the matter of “when” depends on what type of account you have. With a self-directed traditional IRA, your contributions may be tax-deferred, and you will pay taxes on withdrawals during retirement. Comparatively, a self-directed Roth IRA holder contributes after-tax dollars and can make tax-free qualified withdrawals.

Is a self-directed IRA better than a 401k?

It depends on your financial goals and investment preferences. A self-directed IRA can give you more control over your investments, while a 401(k) has limited investment options but may include employer-matching contributions.

How do self-directed IRA fees work?

Self-directed IRAs typically have higher fees than traditional IRAs due to the increased administrative costs associated with alternative assets. Some of the fees you may come across with SDIRAs include set-up fees, annual maintenance fees, and transaction fees.

Can I invest in real estate with a Self-Directed Roth IRA?

Yes, you can invest in real estate with a Self-Directed Roth IRA. You can also learn more about this at Self Directed IRA for Real Estate: Benefits, Risks, & Next Steps.

Are Self-Directed IRAs a Good Idea? – Summary

I hope you enjoyed this self-directed IRA guide.

While it is great that you have more options in what you can invest in, SDIRAs do require a little more work on your end.

But, if you’re looking to invest in different kinds of assets than just stocks and bonds, then SDIRAs are worth considering.

Are you interested in opening a self-directed IRA? Visit The Entrust Group to schedule a consultation with one of their experienced IRA experts.

Source: makingsenseofcents.com

Apache is functioning normally

November 5, 2023 by Brett Tams

Inside: Are you unsure about how much to tip your valet? This guide will help you understand valet parking tips and the dollar amount for tipping at hotels and restaurants.

Navigating the ins and outs of tipping etiquette can be daunting, particularly when it comes to highly personalized services such as valet at five-star hotels.

You certainly want to show appreciation and respect for the quality service they provide, while inherently being cognizant of not going over the top. From the length of your stay to the level of service rendered, the cost of parking, and even the locale, several factors can sway this figure.

Parking can be a hassle, and that’s where valets step in. They’ve got your back, navigating tight spaces and dodging traffic to park your vehicle. But what do you owe them in return for their hard work and risk?

Honestly, this is a similar question of wondering how much to give for high school graduation.

This guide dissects the intricacies surrounding valet tipping, helping you confidently reward exceptional services without breaking any unwritten societal norms.

This post may contain affiliate links, which helps us to continue providing relevant content and we receive a small commission at no cost to you. As an Amazon Associate, I earn from qualifying purchases. Please read the full disclosure here.

How much should you be tipping your valet?

The rule of thumb for tipping valets is $3 to $5 when dropping off and picking up your vehicle.

This is your baseline, but don’t hesitate to scale up if your driver impresses you with their service. If you’re staying at a place just for a night, a tip of $5 to $10 is seen as appropriate. For multiple nights, you may tip more generously on your first and last night.

Always remember, that your generosity reflects the level of service you’ve received.

The average tipping amount will vary in areas like New York City, Boston, Chicago, anywhere in California, or even Aspen, Colorado as these areas demand a higher tip.

What is proper etiquette for tipping valet?

Proper etiquette for tipping valet is about communication, patience, and gratitude. Ease into the drop-off zone without creating chaos, let your valet know about any special needs or quirks about your car, and stay patient. Afterward, express your thanks with a tip.

Yes, that means you need to have cash on hand.

It’s no crime to ask your valet what’s common for a tip if you’re not sure. This opens up a dialogue and they’ll understand you’re considering their efforts. Whether you tip before or after is wholly your call, but keep in mind that a tip at the start might earn you that extra mile of service.

Be generous, but fair. If you’re pulling up in a more luxurious car, consider a higher tip. The value of your vehicle is a good indicator of your tipping ability.

That said, only tip if you want to and think the service merits it. If your experience was less than satisfactory, bring it up to management instead of slipping a bill. Not tipping isn’t rudeness on your part if the service didn’t meet your standards. But if it did, good etiquette is acknowledging that quality service with a tip.

Valet Parking 101

Valet parking is an efficient service often offered in high-end restaurants and accommodations, providing a hassle-free parking experience, especially in areas that are limited in parking space.

The basics to avail of these services is to drive into the drop-off zone and hand over your vehicle to the attendant, ensuring you’ve removed any personal items and communicated any particularities about the car.

Valet parking etiquette isn’t complex. However, if you are well prepared, it makes the experience more delightful.

Be Alert at Drop-off. Drive with care into the drop-off zone and follow any directions from the valet. Don’t be in a hurry!
Prepare Your Vehicle. Have your car ready for valet parking by removing all personal and valuable items before arrival.
Communicate. Brief the valet about your vehicle’s quirks and intricacies, like touchy brakes or an alarm system.
Show Patience. Give the valet time to park, retrieve, and return your vehicle. They could be overwhelmed with multiple tasks during peak hours, so don’t rush them.
Show Gratitude. Beyond tipping your valet, express your gratitude verbally. A simple ‘please’ and ‘thank you’ can make their day.
Keep the Ticket Safe. You don’t want to hold up the process because you misplaced the claim ticket.
Respect the Flow. Respect the orderliness at the vehicle drop-off zone. The valets have an efficient system for quick drop-offs and pick-ups.
Prep for the Evening. Make sure you have everything you need for your event or stay. The valet can retrieve items from your car, but it’s best to avoid extra trips.

Remember, these simple considerations can greatly affect the smoothness of your valet experience.

An important note – if the driver who retrieves your car is not the same one you gave it to, you might want to tip both.

To Tip or Not To Tip? The Valet Parking Conundrum

With tip-flation out of control in the United States, you may be wondering if tipping your valid is worth it.

Sometimes, tipping can get situational. Let’s consider times when you might tweak the ‘usual’ amounts.

If you’re arriving during peak hours or on a busy weekend, tip more generously. Your valet is juggling a higher volume of cars and more stress, so your tip is a recognition of that hard work. On the other hand, slower hours might warrant a more modest tip.
Your vehicle type should also influence your tip. Driving a luxury or high-end car? That’s a premium charge for your valet, too. Running a more modest set of wheels doesn’t demand the same generosity.
Did your valet go above and beyond? Offering assistance with bags, driving directions or just a friendly demeanor might earn them a little extra.
Forget something in your car? Ask your valet to bring it back, but remember to compensate for their time. If you’re accessing your vehicle multiple times in a single day, consider an additional tip for the added service.
And finally, if you want to ensure your car gets a prime spot, or preferential service, tipping more upfront can help.

All in all, pay attention to how much to tip a valet given the situation. Tip when you feel the service warrants it and remember, it’s not just about the money – the thought counts too!

Should service quality affect your tip?

Absolutely! Service quality is a big factor in how much to tip a valet. Just like you might adjust a restaurant tip based on service quality, you should do the same with valet parking.

For example, if the valet is unfriendly, rude, or handles your vehicle poorly, they shouldn’t expect a hefty tip. At its core, the tip signifies gratitude for good service. Do keep in mind that errors happen, though. If a mishap occurs, such as a delay or a minor mistake, consider informing the manager rather than taking it out on the tip.

Conversely, if your valet provides outstanding service, they should be rewarded appropriately. So, if they treat your vehicle with care, offer assistance with luggage, close your trunk, or provide useful information about the locale, you might want to tip more.

Remember: Adjusting your tip based on the quality of service is not being stingy or overly generous; it’s fair compensation for service rendered.

Do you tip valet before or after?

Tipping before or after for valet service is rather circumstantial and both have their merits.

Tipping upfront might ensure your valet goes the extra mile for you.
Whereas, tipping at the end allows you to assess the service quality first.

The choice is entirely up to your discretion and how you feel about the service!

The misconception is you can get away with not tipping at all.

How much do you tip a valet at a hotel?

The standard courtesy tip for a hotel valet hovers around $5 per car. But hold on, as these aren’t hard-set.

Staying the night? Then consider a tip of $5 to $10; more if it’s for multiple nights.
Meanwhile, high-end hotels usually see higher tip values. A $5 to $10 tip per vehicle is considered suitable given the upscale services rendered.

Remember, the situation might vary depending on a gazillion factors like the destination, hotel class, length of stay, and level of service received. So equip yourself with a tipping strategy best suited for your specific scenario.

When they retrieve your car after your meal, how much should the valet parking tip be?

The baseline remains the same, you’re looking at a minimum of $3 to $5 per car.

But say the meal was special, the night was beautiful, or maybe you’re just in a good mood. Feel free to upgrade a little more to that tip. After all, it’s a token of appreciation for the valet who’s been managing your car while you dined in comfort.

In contrast, suppose their service was not up to your expectations. Maybe they made you wait too long or were discourteous. You then have a valid reason to tip less.

What if you don’t have enough cash?

If you are like me and find yourself without enough cash, there are still a few options to consider.

Ask if their valet services allow tipping through a credit or debit card or even Venmo, although cash is generally preferred.
Give a larger dollar bill when you are leaving the restaurant or checking out of the hotel.

When trying to determine how much cash should I have in my wallet, remember what you may need for tipping your valet.

Regardless, it’s always a good idea to keep some cash on hand for gratuities, to avoid inconvenience or potential embarrassment.

Hospitality Valet Expert Speaks

Jorge, a seasoned valet from the Grand Hyatt Vail, shared some fascinating insights into his job.

Despite the physical demands, Jorge takes pride in delivering exceptional service, swiftly handling numerous vehicles, and making guests’ transitions as smooth as possible. He underlined that gratuity is a crucial appreciation of this labor-intensive service.

Much like the data-driven research suggests, Jorge finds that guests who tip considerably when dropping their car off often get retrieval of faster service.

Also, he noted that tips are shared each day among the valets. This was to ensure there wasn’t favoritism and that all guests received the same service.

Why tip valets?

Valets offer a luxury service. They work hard to save you the hassle of parking, allow you to directly access your venue of choice, and take care of your vehicle in the process.

Valets are also part of the service industry, which means their income often depends heavily on the tips they receive. They brave the elements, handle the stress of navigating unaccustomed vehicles through tight spots, and often do so with a smile on their faces.

Not to mention, they’re on their feet for entire shifts, often dealing with demanding clientele and long working hours. By tipping your valet, you show appreciation for their hard work and encourage them to keep up the high level of service.

Why not show your gratitude with a few extra bucks? It’s a small price to pay for convenience and quality service. So, the next time you pull up to the drop-off zone, remember, your valet deserves that tip.

What do valets expect?

Valets, like other service industry professionals, expect respect and decent compensation for their hard work. This not only includes a fair hourly wage but also tips for the service they provide.

Valets typically expect a tip of around $3 to $5 per vehicle, although this can vary based on location, type of establishment, and how busy it is. In upscale areas, tips can range from $5 to $10 per car.

Additionally, valets appreciate when customers are understanding and patient, especially during peak hours. They also value clear communication about any special requirements or characteristics of your vehicle.

What’s considered a “good” tip?

A “good” tip for a valet typically starts at $5 per vehicle. This is generally considered the norm at most establishments.

However, a “good” tip can depend on several factors, like the establishment and service quality. At high-end hotels or restaurants, or in more upscale locations, a “good” tip might start around $10 or even $15.

With that in mind, treat your personable, hard-working valets to a good tip when they provide a great service. After all, a good tip results in good karma!

FAQs

Yes, you should still tip even if the valet service is complimentary. The valet is parking your car, often in the tight valet lot. Their service saves you time and stress, and that’s worth a tip.

Remember, many valets earn a small hourly base pay and rely heavily on tips. Their pay may not correlate with the price you pay or don’t pay, for the service.

A $20 tip for valet is usually seen as generous. It’s well above the typical range of $3 to $5. However, if you feel the service was exceptional, you have a high-end vehicle, or if the valet went above and beyond, such a tip could be appropriate.

Tipping valets at 5-star hotels usually follow a higher standard. Considering the upscale locale and high level of service, a good starting point is around $5 to $10 per vehicle. So, yes, $20 is a good tip for valet.

Furthermore, if the service exceeded your expectations, or if the valet provided additional help like carrying your baggage, a tip on the more generous side might be appropriate

Now, How Much to Tip Valet Driver?

In the United States, tipping is very much a part of our culture and how many people make their living.

Tipping valet can seem intricate, but it’s straightforward once you know the ground rules: anticipate, be kind, respect the service, and tip accordingly. It all comes down to recognition of the efforts your valet puts in to make your experience easier and classier.

The takeaways are the general tip range ($3 to $5).

However, you need to base your tip on the type of establishment, time of day, and quality of service. Be aware of the situation and tip accordingly. But, above all, remember to appreciate good service and acknowledge it accordingly.

Now, be careful, you need to know how much cash can you fly with.

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.

Source: moneybliss.org

Apache is functioning normally

November 3, 2023 by Brett Tams

Want to learn how to get a free cell phone and even a free monthly phone plan? Cell phones can be expensive, so I get it. From buying the actual phone to paying for the monthly service plan, it can all add up so quickly. Learning how to get free stuff can really help you…

Want to learn how to get a free cell phone and even a free monthly phone plan?

Cell phones can be expensive, so I get it. From buying the actual phone to paying for the monthly service plan, it can all add up so quickly.

Learning how to get free stuff can really help you to save a lot of money.

Luckily, there are ways to get a free cell phone, and there are even affordable cell phone plans for those who need it.

Some of these programs are through the government, while others are given by wireless carriers competing for your business. Government-sponsored programs like the Lifeline program help low-income families stay connected by giving them free cell phones and discounted wireless plans. On the other hand, wireless carriers also give away free things occasionally to try and get new customers to switch to them.

Below, I will be talking about how to get a free cell phone from the government, how to sign up for free monthly cell phone plans, and how to get a phone and service if you don’t qualify for one from the government. Even if you don’t qualify, there are ways to get a cell phone or service for free.

Why Are There Free Cell Phones And Plans?

Free phones exist for a few different reasons. Below, I will be talking about free government cell phones specifically. In a further section, I will tell you how you can get a free cell phone if you don’t qualify for a free government cell phone.

Free government phone program

There are free cell phones offered by the U.S. government through two programs – Lifeline and the Affordable Connectivity Program (ACP).

These programs help low-income individuals stay connected, as phone service is important for daily tasks such as finding a job, allowing U.S. residents to call emergency services, and staying in touch with friends and family.

Lifeline and ACP give subsidies to the phone companies, which, in turn, provide free phones and service to eligible customers.

Overall, free government cell phones support the goal of changing lives positively by making sure that even those who don’t have enough money can still have access to a phone.

How to qualify for a free government cell phone

To qualify for a free government cell phone, you need to meet specific eligibility requirements. You may be eligible if:

Your income is at or below 135% of the federal poverty guidelines for Lifeline and 200% for ACP.
You participate in a qualifying federal assistance program such as:
- Medicaid
- Supplemental Nutrition Assistance Program (SNAP)
- Supplemental Security Income (SSI)
- Women, Infants, and Children (WIC)
- Federal Public Housing Assistance (FPHA)
- Veterans Pension and Survivors Benefit
There are also tribal assistance programs. If you live on Tribal lands, you can get Lifeline if your household income is at or below 135% or if you participate in any of the programs listed above, as well as Bureau of Indian Affairs General Assistance, Tribal Head Start, Tribal Temporary Assistance for Needy Families (Tribal TANF), or Food Distribution Program on Indian Reservations Assistance.

Only one ACP or Lifeline benefit is allowed per household (not per person).

Please visit the Lifeline Support website and ACP website to determine your eligibility and apply for the programs. You can also learn more about this on the Federal Communications Commission’s (FCC) website.

What kind of free government cell phone do you get?

If you are eligible for the ACP benefit or the Lifeline program, you may receive a one-time free cell phone from one of the phone companies partnered with the government.

The specific models of phones that you can get may vary, but they are usually basic smartphones and you won’t know the specific device until it is shipped to you in the mail.

Please note that the government doesn’t offer free iPhones as part of either program (but you may be able to get a free iPhone from one of the carriers below for switching to them).

Free government cell phone plans

If you are looking for a free wireless plan or a monthly service discount, there are many options for you.

When looking for a free government cell phone plan, it’s important to consider the options that are available to you. Different providers have their services through government programs like Lifeline and the Affordable Connectivity Program.

When comparing plans, think about factors such as:

Unlimited talk and text
Data allowances and the amount of high speed internet you get
5G or 4G LTE coverage

The specific plans and devices will vary depending on the provider and your location.

Step-by-step to getting a free government cell phone and service

Eligibility – First, you must figure out if your household is eligible for a free government cell phone plan. This usually depends on your household income, and the National Verifier uses data from different databases to determine if you are eligible or you may be required to show documents for proof.
Application – If you qualify, the next step is to apply for a plan. You can usually do this through the phone provider’s website or in person at a local office or retail location, and you will want to make sure you have documentation proving your household income when you apply.
Device selection – Based on availability, you’ll be able to choose your device, such as an Android smartphone or a Samsung Galaxy device. Some plans may offer iPhones or tablets as well, but it’s not as common.
Activate and use your new phone – Once you receive your device, follow the instructions for activating your new phone, and enjoy your new free government cell phone plan and service.

As you can see, getting a free government cell phone plan is a pretty easy process that can save you money.

Best Places To Get A Free Cell Phone And Plan

In this guide, you will learn about the best places to find a free cell phone. Here are the best places that give free phones:

1. Life Wireless

Life Wireless, a participant in the federal Lifeline program, gives free mobile phones and monthly service plans to eligible low-income households.

You can get free unlimited data, talk, text, and even hotspot if you qualify.

To see if you qualify, visit their website and check their eligibility criteria. Once approved, Life Wireless will provide you with a free phone and service plan that suits your needs.

2. TruConnect

TruConnect is another provider that participates in the Lifeline program. They give free smartphones and monthly service plans to qualifying customers.

TruConnect specifically gives out new Android smartphones. Their wireless plans include unlimited talk and text, unlimited monthly data, and unlimited international calling.

To apply, visit the TruConnect website and check if you’re eligible for their services. After verifying your eligibility, you’ll receive a free cell phone along with a monthly plan.

3. Assurance Wireless

Assurance Wireless is an ACP program participant that gives free phones and monthly plans to qualified low-income customers.

You can get free unlimited talk/text as well as 25 GB of high speed data plus 2.5 GB of mobile hotspot data each month on the T-Mobile network.

You can visit the Assurance Wireless website and check if you meet their eligibility criteria. Once approved, they will provide you with a free Android smartphone and a monthly service plan.

4. SafeLink Wireless

SafeLink Wireless, another Lifeline and ACP provider, gives a free cell phone and monthly service to eligible customers.

Their monthly plans come with unlimited data, unlimited talk/text, and 10 GB of hotspot data.

Simply head to the SafeLink Wireless website to determine your eligibility for their services. If you qualify, you’ll receive a free cell phone and a plan.

5. Q Link Wireless

Q Link Wireless is a Lifeline program participant that gives free cell phones and monthly plans to eligible individuals.

Their monthly plans come with unlimited data, unlimited talk/text, and sometimes even a free tablet (ACP subscribers under their network must pay a one-time $10.01 co-pay).

Visit the Q Link website, verify your eligibility, and apply for their service. Once approved, you’ll receive a free smartphone and a monthly service plan.

6. Craigslist

Craigslist is a popular site for buying, selling, and trading items, including cell phones. You might find people giving away free phones or trading them for other items.

I recommend looking at your local Craigslist “Free Stuff” section to see if there are any free phones near you that you can get.

7. Buy Nothing groups

Buy Nothing groups are local groups that give free items and services to their members. People like you and me give away, lend, or share items in these groups all the time.

I have personally given away many items in Buy Nothing groups, and it is such a great resource.

You can look for a local Buy Nothing group on Facebook and ask to join – you can start by searching for “Your town name + Buy Nothing group” on Facebook. Then, look for posts in the group, or post a new thread asking to see if anyone has a free cell phone to give away.

Companies That Give A Free Phone When You Switch Providers

One of the most common ways to get free cell phones is directly from the phone companies themselves. These companies give free phones or device discounts as part of their service contracts.

The cost of the phone is usually built into the monthly payment for the contract many times (and makes the monthly cost much more expensive). Most companies have a wide range of phones, from the latest iPhone to the newest Android device. It’s important to know, however, that these are typically tied to long-term contracts, which could last for up to two years or more and also may have high monthly plan costs.

To get a free phone, some of the companies may require you to trade in your old phone, while others give the free phone to new customers as a way to get you to switch from your current company.

If you’re thinking about switching cell phone providers, it’s helpful to know which companies give free phones as a bonus. Below, we look at four major cell service companies and their free phone deals for customers who make the switch.

Note: You won’t get a free monthly plan with the below providers.

8. AT&T

AT&T usually has promotions for new customers that include free phones. The devices that they give away can vary, but it’s usually for the most popular phone choices, such as Apple, Samsung, and Google Pixel.

In the past, I have personally received a free cell phone for signing up for a new plan with AT&T, so I know it’s real!

9. Verizon

Verizon is another company known for giving free phones to customers who switch to them. They usually have deals on smartphones like the latest iPhone, Samsung Galaxy, and Google Pixel devices.

10. T-Mobile

T-Mobile also has free phone deals for customers who make the switch to them. These deals usually include cell phones like Apple and Android.

11. Cricket Wireless

Cricket Wireless gives free phone deals to customers who switch from another carrier. The devices available as part of these deals often include budget-friendly options from major phone companies.

Before making any decisions, it’s important to compare these free phone offers with your current mobile plan and provider. Think about factors like phone coverage (will the new service plan have coverage where you live?), the amount of data you get, and contract length when deciding which deal is right for you.

Places To Get Cheap Cell Phone Service

If you don’t qualify for free cell phone service, then you may be interested in learning how you can save money with your monthly cell phone bill. Below are the best places to get a cheap monthly cell phone service.

Google Fi Wireless

Google Fi has affordable wireless plans depending on your needs, and it is what I have used for several years.

Their Flexible plan starts at just $20 per month, per line. This is a great option if you are looking for a plan that doesn’t break the bank and still has reliable service.

Mint Mobile

Mint Mobile is known for its very budget-friendly cell phone plans that start at just $15 a month for 5 GB. An unlimited plan is just $30 a month.

Mint Mobile runs on a reliable network, making it a great choice for someone who is trying to save money but still wants to be able to have service that they can count on.

Boost Infinite (formerly Republic Wireless)

Republic Wireless has affordable phone plans with a focus on simplicity and user flexibility. Their no-contract plans start at $15 per month for unlimited talk and text with the option to add data as needed.

I have several family members who were on Republic Wireless for years, and they liked how budget-friendly the service was.

Tello

Tello has plans that start at just $10 per month for 1 GB with unlimited minutes and free text messaging. Their Unlimited everything is only $29 per month.

They also provide a no-contract flexible option, allowing you to change your plan anytime to adjust to your needs.

FreedomPop

FreedomPop is a company that has both free and very cheap cell phone plans. Through the Affordable Connectivity Program, you can get unlimited wireless service (10 GB at 5G speeds) for just $0 a month.

If you don’t qualify for the government cell phone assistance program, they also have a free plan which looks to be a really good deal. You pay a one-time fee of $10 for the SIM card kit and the free plan includes 10 minutes of voice calling, 10 text messages, and 25 MB of high speed data each month. Yes, it’s not much data each month, but they also have plans for $30 a month that include unlimited texting and 10 GB of data.

Frequently Asked Questions About How To Get A Free Cell Phone

Below are answers to common questions about how to get a free cell phone and plan.

What programs give free phones to low-income individuals?

The Lifeline program is a government benefit that gives free or discounted phone services to qualifying low-income customers, including a free cell phone in some cases.

What are the top free phone plans in the US?

There are many popular free phone plans in the U.S. where you can get free cell service. Some popular options include the Lifeline Assistance program, which gives free or discounted cell phone service to eligible low-income consumers. Plus, carriers like Life Wireless have free monthly unlimited data, talk, and text through Lifeline and the Affordable Connectivity Program.

Who has the best free government phones? Which free government phone company is the best? What Lifeline provider sends the best free phones?

There are many different companies that participate in the free government phone program such as Life Wireless, Assurance Wireless, SafeLink, and Q Link Wireless. Each company is a little different, and you should choose the best one for you based on their coverage map, plan options (how much data do you need?), and phone device.

How do I qualify for a government assisted phone? Who is eligible for a free cell phone from the government?

To get a free government-assisted phone, you will have to meet certain income requirements or participate in a government assistance program such as the Supplemental Nutrition Assistance Program (SNAP), Medicaid, or Veterans Pension program.

Which carriers give free cell phones to seniors?

Some phone carriers have special deals and discounts for senior citizens, but I don’t know of any free phones that are targeted specifically for seniors. However, if you are a senior who qualifies for any of the government assistance programs mentioned earlier, you might be eligible for a free cell phone or a discounted service.

How do I apply for a free government phone?

Getting a free government phone is usually pretty simple and can be done on the phone company’s website directly. You can visit the website of a cell phone company that participates in the program, such as Life Wireless, and see if you qualify. They have easy instructions to follow, and you can find out if you are eligible for a free phone.

How To Get A Free Cell Phone – Summary

If you need a free cell phone or wireless service, there are many different options to look into.

Free cell phones can have a big impact on the lives of individuals and families. With these phones, they can:

Connect with potential employers
Call for emergency services
Stay up to date about news and important events

Both government-sponsored programs and wireless carriers have ways to get free phones.

The government programs are designed to provide free cell phones and service to eligible households, usually those who meet specific income or program participation requirements.

Telecommunication companies (like AT&T and Verizon) sometimes have deals to get potential customers to switch to them, such as free cell phone deals that are usually tied to specific contract terms (1 or 2 years long).

Do you want to know how to get a free phone? Did you know that you can get a free government cell phone?

Source: makingsenseofcents.com

Apache is functioning normally

October 31, 2023 by Brett Tams

Inside: Are you thinking about moving out? This guide will help you identify the costs of moving, calculate how much you need to save, and advice on expenses. You need to learn and plan for the practicalities of living on your own.

Taking the leap to move out and start living independently is a significant milestone.

However, it’s important to ensure you’re financially prepared for this exciting new chapter in your life.

One vital step you need to take is to start saving money, essential for covering your future expenses, emergency fund, and even fun activities. Through careful budgeting, consistent saving, and efficient spending, you can make the transition smoother and stress-free.

Around here at Money Bliss, we focus on the need to save money before making a purchase or taking the next step, so you will be better equipped and stay debt free.

This way, you can fully enjoy the freedom and responsibilities that come with having your own place.

This post may contain affiliate links, which helps us to continue providing relevant content and we receive a small commission at no cost to you. As an Amazon Associate, I earn from qualifying purchases. Please read the full disclosure here.

Why is Moving Out on Your Own Important?

There comes a time in one’s life when one feels the need to spread their wings and live independently. We all wanted to move out at 18 – I remember!

This crucial step, however, requires substantial planning. Yet, most just jump right to moving out.

The key thing you must do? Save. But, why so important?

Here’s why: independence means bearing your own expenses. Rent, groceries, utilities, they’re all on you.

Plus, unforeseen emergencies are less shocking when you have a well-stocked safety net.

What’s a good amount of money to have before moving out?

The amount you need to move out depends on many factors.

However, on average, you should aim to have between $6,000 and $12,000 stashed away before you pack your bags.

This sum would cover initial moving costs, deposits, furniture, essentials, and a few months of rent.

Remember, it’s not just about surviving your first month. You’ll need enough to keep you comfortable while you’re settling into your new life.

How much should I save before moving out?

Remember, there isn’t a “magic number.”

Yet, many wonder is $5000 enough to move out?

Your savings should cater to your housing costs, which ideally should not exceed 1/3 of your monthly income. Besides, factor in regional cost of living, moving expenses, and an emergency fund.

What determines the amount needed?

The amount to save before moving out varies greatly. It hinges on factors like your targeted living area because there is a wide fluctuation of HCOL vs LCOL areas, your projected expenses, and your income level. The rent in one city might be higher than in another.

As well as your personal lifestyle choices and spending habits will greatly affect monthly expenses.

Evaluation: Your Financial Status

Your financial status, including current income and expenditures, plays a crucial role in determining the proportion of your earnings you should save before moving out.

If you have a higher income with lower outlays, you can save more, whereas having roommates can significantly cut down your living expenses, enabling better savings.

A careful review of these factors allows you to create a realistic saving plan tailored to your unique financial circumstances.

You need to make sure you are on track to how much money should you have saved by 25.

Assessing your current income

Take a deep look at your income. How much do you earn each month? How regular is this income? These are vital questions.

Your net income (what you earn after taxes) sets the tone for what you can afford. This is the amount listed on your paycheck.

Learn more about gross pay vs net pay.

Understanding your debt load

Debt can be a significant hindrance when contemplating moving out. How much do you owe monthly?

You need to consider your debt-to-income ratio. This is what mortgage lenders do to figure out if I make 70000 a year, how much house can I afford.

If your debt is taking up more than 30% of your income, you need to be careful on how much you spend on rent and other mandatory expenses.

Learn how to pay off your debt faster using Undebt.it.

Know Your Expenses: Breaking Down the Costs

I’ll be honest. This is what most people overlook when they move out or even purchase a new home.

For instance, the couch I loved couldn’t fit into our new house. Sigh.

Now, is the time to learn how to save 5000 in 6 months.

Identifying the cost of moving

Moving costs can bite! They depend on relocation distance, packing supplies, and the complexity of the move.

Movers can range from hundreds to thousands. According to Moving.com, the average costs for a studio or one bedroom range from $501 – $985. ¹

Thankfully, you are young and you can pay friends for help with pizza. But, you still need to account for a moving truck if needed.

Hidden costs you need to consider

When moving out, some costs aren’t glaring. These include fees for installing new services, delivery fees for new furniture, or penalties if foregoing a current lease. Yes, these hidden costs can pile up!

Even, the costs to put blinds up at your new place! A room darkening shade can easily set you back $50; I know, I like my sleep.

So, be sure to consider them when saving for your move.

Setting Up a Personal Budget

A budget plays a crucial role in being financially stable. Period.

Call it adulting if you want to, but you cannot spend more money than you make. That is a recipe for a disaster and way too much debt.

By adhering to a well-planned budget, one can prevent financial stress to ensure financial security and start your journey to financial independence.

How to start a personal budget

Starting a personal budget is simple.

List your income and expenditures. Include rent, groceries, utilities, subscriptions, and yes, even luxuries.
The goal is to spend less than you earn.
Then, you can save and plan for your future.

That means you may not be able to afford everything you want. And using credit cards to fill the gap isn’t smart.

The 50/30/20 budget rule explained

For many, the 50/30/20 rule serves as a rough guide for managing your finances.

It suggests allocating 50% of your income to necessities, 30% to wants, and 20% to savings.

This is a beginner-friendly method to manage spending without feeling overwhelmed.

Starting to use a budget app is extremely helpful.

YNAB

Enjoy guilt-free spending and effortless saving with a friendly, flexible method for managing your finances.

Pros:

Comprehensive approach to budgeting, helping you plan monthly budgets based on your income.
Offers expert advice, making it suitable for those who require an in-depth, forward-thinking budgeting strategy.
Superior synchronization skills make it the winner in this area.
YNAB has extra features like goal setting for budgeting, shared budgeting tools for partners.
Option to manually add and upload transactions from accounts each month.
YNAB prioritizes user privacy.

Avoid These Budget Downfall

The most common expenses that are forgotten are irregular expenses such as vacations, weddings, or holiday spending. These variable expenses do not occur on a consistent schedule.

To manage these, note these big-ticket events on a calendar, estimate their cost, divide by 12, and contribute that amount to a high-yield savings account each month, offering you a guilt-free way to cover these costs without stressing over money.

Make sure you remember all of your expenses by checking out this full list of personal budget categories.

Creating and Managing an Emergency Fund

Why an emergency fund? It provides you with a safety cushion.

This fund prevents unexpected expenses from ruining your plans or sending you spiraling into debt. It acts as your financial parachute when you need it the most.

Around here at Money Bliss, we consider it a staple in financial wisdom.

Ideal size of an emergency fund

As a rule of thumb, your emergency fund should cover at least $1000-2000 in savings. This will provide money to cover a car breakdown or new car tires. Honestly, the goal is never to use your emergency fund.

However, you may look at a bigger rainy day fund that will cover 3-6 months of living expenses. This will provide you with a comfortable safety net against unexpected events like job loss or medical emergencies.

But remember: start small. Even $1,000 can buffer you from financial shocks. Check out these mini savings challenges.

Enough Money for One Year

A year’s worth of savings may sound excessive.

However, it provides unmatched stress relief and financial stability that can be life-changing, especially for young adults.

This tip will change your financial landscape immensely and provide you with more opportunities than you can imagine.

You can handle life’s ups and downs more easily when you have an entire year’s expenses sitting in your bank account.

Raisin

Simply select one of the high-yield savings products offered by their network of federally insured banks and credit unions to begin your savings journey.

You can open a free Raisin account in just a few minutes!

Compare Rates

Better Planning for Potential Bills and Fees

When preparing to live independently, don’t forget to plan for unanticipated costs.

Rental fees and deposits explained

When you rent, you’re likely to encounter a range of fees.

First off, you’ll have to foot a security deposit – typically equal to one and a half month’s rent. This upfront cost acts as insurance for landlords against damages. If you leave the place in top shape, you’ll get your full deposit back!
Additional fees could include application fees or non-refundable move-in fees like background checks. Know what you’re paying for before you sign the lease.

Utilities and recurring expenses

Electricity, gas, water, and internet – these utilities fall on your shoulders when you’re living solo.

These costs can eat a hole in your wallet if unchecked!

To avoid surprises, ask for estimates before signing a lease or find a place that includes utilities.

Other recurring expenses? Consider subscriptions. Gym, Netflix, Spotify – they all add up!

Trim

Perfect for the person who hates to hassle with canceling subscriptions and checking spending.

Trim adds value in such ways as canceling old subscriptions, setting spending alerts, checking how much users spent on ride-sharing apps the previous month, and automatically fighting fees.

Learn More

Go for a Trial Run Before Moving Out

Adopt the practice of “paying rent” beforehand by setting aside a third of your income into a dedicated savings account which can test your financial readiness for the move. See if you can move out and afford it before you actually move.

Remember, being savvy with money while planning to move out involves carefully auditing your spending over the last 3-6 months and developing a budget that accounts for future expenses, savings, and essential purchases.

This may save you headaches in the future.

Smart Moves: Making Rent Like a Boss

You need to understand how you are starting to make financial decisions.

In fact, reading this financial advice for young adults would be helpful.

Understanding rent payments.

Rent payments can be daunting as prices for a single bedroom apartment are $1700/month. ²

Many landlords may tenants to earn at least three times their rent.
Payments are usually due on the first day of the month. Late payments can lead to hefty fees!

Stay organized by setting reminders or setting up auto-pay.

Considering a roommate.

On the fence about getting a roommate? It’s worth considering!

A roommate can drastically cut your living expenses. Half the rent, half the utility costs… that sounds like a sweet deal.

On the flip side, you may have less privacy and there can be disputes.

However, with clear communication and shared responsibilities, it can be a great experience. It’s a great option if your income is tight. Choose wisely!

Opting for second-hand furniture

Furniture expenses can add up quickly, but there’s a savvy solution: opt for second-hand furniture! Yes, it’s cool to be frugal.

In fact, vintage pieces can add character to your home. Perhaps snag a few items from your parent’s home, Buy Nothing Group, or thrift stores. It’s not about being cheap, but about being smart!

You can always upgrade later.

Key Takeaways Before Taking That Leap

Moving out with roommates not only gave me a firsthand experience of independent living but also exposed me to the nuances of financial management. These initial steps helped me understand budgeting and the importance of balancing expenditures with earnings.

Then transitioning into renting my own place, I was armed with the knowledge I gained and was better prepared to face the challenges, creating a smooth transition to living completely on my own.

Checklist before getting your own place

Before making the big move, have you:

Saved enough to cover deposit, rent, moving, and utility hook-up fees?
Started a personal budget, tracking income and expenses?
Drafted a rough spending plan using the 50/30/20 budget rule.
Built an emergency fund?
Discussed potential apartment rental fees and deposits?
Considered recurring expenses and variable expenses?
Weighed the pros and cons of having a roommate.
Looked into second-hand furniture?
Can you comfortably cover living expenses with your income?
Have you accounted for all possible costs? Think of moving costs, utilities, groceries, health insurance, and more.
Have you considered the cost of living in your preferred location?
How stable is your income? Can it sustain your independence long-term?

Check out this first apartment checklist.

Frequently Asked Questions (FAQs)

Before moving out of your parents’ house, aim to save at least $5,000. But, you want to start off financially sound, so aim higher like $10,000. This amount would ideally cover your moving costs, early rent payments, and the setting up of utilities.

Remember, the real magic figure depends on your cost of living and your current income.

Put simply, saving $1,000 a month is excellent!

As an expert, Money Bliss often recommends saving at least 20% of your income each month. If you can stash away $1,000, you’re well above this bar.

Remember, every little helps when working towards financial independence. Check out our 52 week money saving challenge to get started.

Start Saving for How Much Money I Need to Move Out

Taking the leap into independent living can feel daunting. But with careful planning, budgeting, and saving, it’s an exhilarating journey.

The best advice I can give someone who is looking to move out is to plan ahead for the journey in front of you.

Remember, having anything between $6000 and $10,000 saved up is an excellent starting point.

As you navigate your financial freedom, adopt the 50/30/20 rule for managing expenses. Around here we call it the Cents Plan Formula.

Most importantly, stay prepared for life’s unexpected twists with an emergency fund. And don’t be shy to make some smart moves like considering a roommate or opting for second-hand furniture.

The journey towards independence is rewarding and fun – as long as you’re financially prepared. So pop that calculator, get budgeting, and start saving for your own place!

Source

Moving.com. “Moving Cost Calculator for Moving Estimates.” https://www.moving.com/movers/moving-cost-calculator.asp. Accessed October 25, 2023.
Rent Cafe. “Average Rent in the U.S.” https://www.rentcafe.com/average-rent-market-trends/us/. Accessed October 25, 2023.

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.

Source: moneybliss.org

Apache is functioning normally

October 27, 2023 by Brett Tams

Inside: Do you want to claim your partner as a dependent on your taxes? This guide will explain the rules of claiming dependents whether girlfriend or boyfriend and help you take the necessary steps to do so.

Navigating the waters of tax credits can be tricky, especially when it involves claiming an unmarried partner as a dependent.

The Internal Revenue Service (IRS) does permit the declaration of a non-relative adult as a dependent, provided certain conditions are met.

And that is where it gets tricky for the tax novice.

That is where we are going to reference the IRS guidance, so you can determine whether or not you qualify for this deduction.

By pointing you in the right direction, you can understand the specific tests and requirements to avoid any tax-related complications.

This post may contain affiliate links, which helps us to continue providing relevant content and we receive a small commission at no cost to you. As an Amazon Associate, I earn from qualifying purchases. Please read the full disclosure here.

Understanding dependency in the context of taxes

The word “dependent” might remind you of a newborn baby or an elderly family member. But in tax terms, the meaning broadens.

In the IRS terms, a “dependent is a person, other than the taxpayer or spouse, who entitles the taxpayer to claim a dependency exemption.” ¹

This might be a child, an adult family member, a significant other, or even a close friend. This term “qualifying relative” is crucial in IRS parlance for its implications on your tax dues.

Typically, any person can qualify as a dependent if more than half of their financial support, including living and medical expenses, is taken care of. Also, it’s an opportunity to boost one’s tax return by up to $500 with the Other Dependent Tax Credit.

What qualifies a person as a dependent?

The IRS bases dependents on two categories: “Qualifying children” and “Qualifying relatives.”_² You might think of a qualifying child as your son or daughter. Expanding the scope, a qualifying relative can be a sibling, a parent, or even a significant other.

The essence lies in their financial reliance on you and the nature of your relationship. They ought to:

Be related to you via blood, marriage, or adoption;
You provide over 50% of their financial support including housing, food, medical care, and other expenses
They are U.S. citizen.
The income of the possible dependent.

These nuanced rules might sound overwhelming, but IRS guidance and tax experts like TurboTax can help lighten the load.

Now, let’s address this sticking point: Can you actually claim your partner as a dependent? The following section unravels the mystique.

TurboTax

TurboTax® is the #1 best-selling tax preparation software to file taxes online. Easily file federal and state income tax returns with 100% accuracy.

This is how I have filed my personal taxes for many years.

Get Started

Can I Claim My Partner as a Dependent?

You can claim your partner as a dependent on your tax return, provided they meet certain criteria explained by the IRS, including passing the non-qualifying child test, the citizen or resident test, the joint return test, the income test, and the dependent taxpayer test.

I know this is where it gets difficult to follow for the average person.

So, we are here, to break this terminology down into layman’s terms, as such you can then make the best decision for your tax situation.

If you are still confused, then consult with an online tax software like TurboTax or a tax professional for guidance on your personal taxes.

Basic requirements for claiming your partner as a dependent

This essentially means that your partner should be financially dependent on you, where you bear more than half of their living expenses.

In essence, claiming your partner as a dependent revolves around these fundamentals: ²

Residency: Your partner must have been living with you for the full tax year.
Income limit: Your partner’s gross income should not exceed $4,700 for the year 2023.
Support Requirement: You are the main pillar for your partner’s financial needs by covering over half of their total expenses.
Anyone Else Claiming Them: None else should claim your partner as their dependent.
Unmarried. Your partner must be unmarried legally.

All fulfillment of these criteria moves you a step closer to enjoying some tax relief.

Confirm with an accountant or tax expert as exceptions can exist, such as temporary absences due to illness, education, business, and others.

Common scenarios where you can claim your partner as a dependent

Claiming a partner as a dependent isn’t as fancy as it sounds, but it’s plausible. Here are common scenarios enabling you to do so:

Co-habiting Before Marriage: You and your partner share a home, and you pay more than half of your partner’s living costs. However, your living situation cannot violate local laws, as in some states, “cohabitation” by unmarried people is against the law.
Unemployed Partner: Your partner’s tie with working life is severed (e.g., due to health issues or being laid off), and you bear most of the living expenses.
Supporting Student Partner: Your partner pursues their education, and you shoulder the majority of their expenses.

Take this interactive IRS quiz to determine whom I may claim as a dependent.

How much will I get if I claim my girlfriend as a dependent?

Now the pivotal question: what’s the advantage in dollars and cents?

In essence, claiming your partner as a dependent will slash your taxable income by $500 with the Other Dependent Tax Credit. ³

If you already qualify for Head of Household status with another dependent, then it is possible your deduction may be more. ⁴

Remember, there’s no one-size-fits-all answer. When tax complexities strike, consult an expert!

Is it better to claim my girlfriend as a dependent?

Honestly, like most tax questions, the answer is: it depends.

If you’re covering your partner’s majority expenses and they’re fulfilling all IRS criteria, then claiming them can bring solid tax savings.

Yet, bear in mind:

If your partner earns substantial income (greater than $4,700), they might lose personal benefits by becoming your dependent.
By claiming your partner, their Social Security or medical benefits may take a hit.

So, assess your partner’s income, benefit entitlements, and your tax situation. Then, tread wisely.

e-file

E-file makes tax season a breeze with its user-friendly interface, ensuring a seamless and stress-free experience for filers.

Simplify your tax journey by choosing E-file.

Start Now

Important Rules to Keep in Mind When Claiming Your Partner

When filing taxes, it’s crucial to understand that both parties are responsible for the accuracy of each other’s tax reporting and liability.

It’s worth noting that tax advantages and disadvantages exist in the scenario of being married and filing jointly, such as potential reductions in your tax bracket and sharing of business losses. So, it may be something to consider.

Can I claim my girlfriend as a dependent if she has no income?

In a nutshell, yes! If your girlfriend had no income in the tax year, you might claim her as a dependent. Given you provide over half of her total support and she lived with you all year, you’re golden.

For 2023, your partner’s gross income should not exceed $4,700.

However, keep in mind that in cases where public assistance or Social Security benefits are her primary financial sources, claiming her could negatively impact those benefits.

Learn the answer to do you have to file taxes if you have no income.

Remember: tax waters are often murky. When in doubt, lean on a tax professional’s shoulder!

Support factors

Answering the support question plays a hefty role in determining who qualifies as a dependent.

You shouldn’t just share the living cost; you should pay more than half of it. Remember, it includes an array of expenses, like food, clothing, education, or medical expenses.

The implication of your partner being claimed by someone else

Here’s a key rule: if someone else is claiming your partner as a dependent, you’re out of the game. The IRS rules say a person can be claimed as a dependent by only one taxpayer in a single tax year.

This could happen if your partner perhaps lives part of the year with someone else like a parent.
Another possibility is if your partner is legally married still, then they would have to file a married, filing separately return.

So, if your partner qualifies as someone else’s dependent, even if they don’t claim them, you can’t claim your partner.

Frequent Situations Where You Can’t Claim Your Partner as a Dependent

Considerations for Non-resident or Non-citizen partners

If your partner isn’t a U.S. citizen, resident, or national, the dependent claiming game changes. Notably, nonresident aliens cannot be claimed as dependents.

However, if your partner is a resident of Canada or Mexico or a U.S. national, you may claim them. But they should be living with you full-time. ²

This rule extends to partners awaiting changes in their residency or citizenship status. In such cases, you must wait until their status changes before claiming them.

When your partner earns more than the stipulated income threshold

When your partner’s income level sails past the IRS limit ($4,700 in 2023), claiming them as a dependent slips off the table. ²

Any part-time job, seasonal work, or income source counts, even those seemingly negligible. As soon as they cross this threshold, regardless of how heavily they rely on you or where they reside, they can’t qualify as your dependent.

Make sure to stay updated on IRS rules. They adjust the income limit for inflation annually, which changes this income ceiling. Keep an eye peeled for those IRS updates!

TurboTax

TurboTax® is the #1 best-selling tax preparation software to file taxes online. Easily file federal and state income tax returns with 100% accuracy.

This is how I have filed my personal taxes for many years.

Get Started

How to Officially Claim Your Partner on Your Taxes

To officially claim your partner as a dependent on your tax return, you will do this when you file your taxes.

Thankfully, this is made easier with online software companies like TurboTax or H&R Block.

The same is true when you are trying to figure out how to file taxes without a W2.

Necessary steps to claim your partner on your taxes

You will first identify them as “other qualifying dependent” or “other qualifying relative”.

Gather the facts first: Confirm your partner’s income, residency, and who has been supporting them for more than half the year.
Document expenses: Keep track of all relevant bills and receipts to demonstrate your majority support.
Use tax software or a professional: Follow prompts about dependents in tax software like TurboTax. They could guide you through the process and specifics.
Complete relevant Tax Forms: Prepare the necessary forms such as Form 1040 and Schedule H and have proof of residency, financial support, gross income information, and certification of your domestic partnership to support your claim.
File your return: Don’t forget to include your partner’s details and tick the correct boxes.

Remember, the devil is in the details. So carefully evaluate your situation to avoid missteps, and consult with a tax professional when in doubt.

Pitfalls to avoid while filing tax returns

While preparing to file your tax returns, beware of these common pitfalls:

Incorrect income calculation: Ensure you tally your partner’s gross income accurately. Reminder: it should not eclipse $4,700 in 2023.
Overlooked Living Qualification: Your partner must have resided with you the entire year. Temporary absences (illness, education) can be exceptions.
Ignoring Other Claimants: If someone else is poised to claim your partner as a dependent – even if they don’t – you can’t claim them.
Emergency Funds Consideration: If your partner taps into their savings for a large expense, this could speak against you providing most of their support.
Forgotten Documents: Maintain a record of bills, receipts, and other expense documents.

The IRS overlooks no mistakes, so take care and stay informed. When in doubt, professional tax help is a button away.

Frequently Asked Questions (FAQ)

Intriguing question! Here’s the short answer: Your partner’s marital status may indeed affect your ability to claim them as a dependent.

For instance, if your partner is married and files a joint tax return with their spouse, you can’t claim them as a dependent.

Remember, tax rules are lock-key specific, and bending them can lead to penalties. Always seek advice from a tax professional.

While you might be able to claim your partner as a dependent, laying claim on their children as dependents is unlikely. IRS rules are clear: you can claim a dependent only if they’re your child or relative.

Since your partner’s children don’t fulfill this requirement, you can’t claim them unless they can be considered your qualifying relative AND you provide more than half of their support.

As always, it’s best to run this by a tax professional for clarity on your unique situation. All we tax-seers can do is guide; the decision falls on your shoulders.

Here’s the hard truth: if your partner didn’t live with you all year, you couldn’t claim them as a dependent. IRS rules are stringent about this: your partner must have the same home as you for the entire year. That is 365 days, no less.

However, IRS grants a green light to temporary separations due to special circumstances like illness, education, military service, or even a holiday. The key lies in their intent to return and, of course, their follow-through.

Stay wise and stay informed, and consult with a tax analyst to seal your decision with assurance.

Get Online Help

Navigating tax rules and regulations doesn’t need to be overwhelming. With the advent of online help, understanding whether you can claim your partner as a dependent becomes considerably more manageable. Here are a few benefits of seeking online help:

Convenience: With online help, you can access the information you need anywhere, anytime. No need to schedule appointments or deal with traffic to get to a tax office. You can get the updates and instructions right from the comfort of your own home.
Accessibility: Some great examples of accessible platforms are TurboTax, e-File, and H&R Block which provide 24/7 support and resources. They offer a wealth of information and experts at your fingertips.
Expertise: Apart from the convenience, these websites employ tax experts who deliver professional analysis and guidance tailored to your specific needs. Specifically, you can use TurboTax Live Full Service for someone to do your taxes from start to finish. Or you can ask questions with TurboTax Live Assisted.

File your own taxes with confidence using TurboTax. This can greatly simplify the process and minimize potential missteps.

Now, Can I Claim my Unmarried Partner as a Dependent is Up to You

As they say, “Ignorance of the law is no excuse”. The same holds true for tax rules.

Falsely claiming a dependent can lead to severe penalties, not just a dinging of your wallet. You’d be sailing the choppy waters of tax evasion, which can bring on hefty fines or even dark days behind bars.

In blatant cases, the IRS could impose a Civil Fraud Penalty. That means a penalty amounting to 75% of the unpaid tax amount resulting from fraud. ⁵

In short, play by the rules! Accurate and clear tax filing may seem tedious, yet it will steer clear of any legal trouble. Remember, it’s always safer to ask if you are unsure!

Now, are you wondering why do I owe taxes this year?

Source

Internal Revenue Service. “Tax Tutorial.” https://apps.irs.gov/app/understandingTaxes/hows/tax_tutorials/mod04/tt_mod04_glossary.jsp?backPage=tt_mod04_01.jsp#dependent. Accessed October 23, 2023.
Internal Revenue Service. “About Publication 501, Dependents, Standard Deduction, and Filing Information.” https://www.irs.gov/forms-pubs/about-publication-501. Accessed October 23, 2023.
Internal Revenue Service. “About Publication 501, Dependents, Standard DeductionUnderstanding the Credit for Other Dependents.” https://www.irs.gov/newsroom/understanding-the-credit-for-other-dependents. Accessed October 23, 2023.
Intuit TurboTax. “Guide to Filing Taxes as Head of Household.” https://turbotax.intuit.com/tax-tips/family/guide-to-filing-taxes-as-head-of-household/L4Nx6DYu9. Accessed October 23, 2023.
Internal Revenue Service. “25.1.6 Civil Fraud.” https://www.irs.gov/irm/part25/irm_25-001-006. Accessed October 23, 2023.

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.

Source: moneybliss.org

Apache is functioning normally

October 9, 2023 by Brett Tams

How to Budget Money on Low Income – Make Every Penny Count

Please ensure Javascript is enabled for purposes of website accessibility

Source: pennypinchinmom.com

Apache is functioning normally

October 8, 2023 by Brett Tams

Which Debt to Pay Off First – How to Prioritize Your Debts

Please ensure Javascript is enabled for purposes of website accessibility

Source: pennypinchinmom.com

Apache is functioning normally

September 20, 2023 by Brett Tams

Here’s how this social worker has paid off $28,000 of student loan debt in 15 months.

Today, I have a great debt payoff progress story to share from Taylor. Taylor is a social worker who is working on paying off $277,000 of debt and retiring early. She shares tips on how she is cutting her expenses, the ways they’ve increased their income through various side hustles, house hacking advice, and how she qualified for an $88,000 student loan award. Enjoy!

Now, don’t let the title deceive you into thinking we are debt free; we most certainly are not.

As of this writing, we still have $251,195.39 of debt (all student loans).

This is our story about the debt payoff strategies we used in paying off $28,026.02 of debt and our goals for the future!

Who are we?

My name is Taylor, and I am a 29-year-old medical social worker who finished grad school in 2018. I am also a part-time social media coordinator and with both jobs combined, I make $96,000 (gross).

I live with my husband, Bret, who I have been with for 11 years and married for 3. He is a full-time student and has been in grad school since September 2020 (he has about 2 more years left). We love to travel, try new restaurants, hang out with our friends and family, and just have a good time.

I also have a blog at Social Work to Wealth.

Related articles:

How did we get here?

First, I need to give you some background before we get into the nitty gritty of our debt numbers and payoff strategies.

2012: We met when both of us were in college. I was 18 and Bret was 22. Soon after we met, Bret took a few years off from school while I finished my bachelor’s. I relied entirely on student loans, and don’t remember applying to any scholarships. When Bret returned to school to finish his bachelor’s, he did receive some scholarships and worked a summer job to pay forhousing but still needed to rely on student loans to pay the bulk of his tuition.

I will speak for myself when I say I didn’t take the time to calculate how much loan money I actually needed and blindly accepted the total amount. Looking back, maybe I would have needed it all or maybe not, but I wish I would have at least done the exercise.

We have always been open with talking about our debt and money in general, but I remember us both expressing the thought that we would probably always have our student loans. We would just live our life, pay our minimum payments, and that would be that. There was never any talk about debt payoff strategies, or any money management strategies, really.

We went through many life transitions. Living apart for two years while I went to grad school, him returning to school to finish his bachelor’s, various jobs, and a post-bach program.

2019: Bret was finishing up his post-bach program and got accepted into grad school. We were newly engaged and began planning and saving for our wedding scheduled for July 11^th, 2020. Such exciting stuff!

March 2020: We got the news our wedding venue was closing for the foreseeable future due to the COVID-19 pandemic, and we decide to cancel our wedding. We switched gears and used the money we saved for a down payment on a new home. Then, we had a small intimate wedding featuring a hot-air balloon with 18 of our closest family members! We personally saved a ton and also had tremendous help from our family.

September 2020: I start a new job and Bret starts grad school. We are newlyweds and settling into our new home in a new city.

I wish I could talk more about 2020 because it was a HUGE year for us with buying a home, moving, getting married, Bret starting grad school and me starting a new job, but that’s a conversation for another day!

Our wedding

From frugal to spenders

When we were saving for our wedding, we were very frugal. Any extra money we had, we put toward our wedding savings (which again, ended up being used for the down payment on our house and a smaller wedding ceremony).

We went from frugal to swiping our cards left and right to prepare for our wedding and furnish our house. It was sooo nice to finally be able to spend the money we had been saving for so long! But this continued into 2020… and 2021…

We were mostly spending on eating out and experiences. We do like to buy “things” but we definitely value food and experiences a lot more. We even decided to put a trip to Hawaii on our credit card costing us around $5,000, along with other expenses, because why not? We deserved it!

We didn’t have much of a budget, our bills were getting paid, but the credit card bill kept increasing. Since I was the only one bringing in income, we took out some student loans to help with a portion of our living expenses. And the credit card bill continued to increase.

The “wake-up call”

The “wake-up call” is such a theme throughout many debt payoff stories. So, here’s mine.

I went to breakfast with two friends in December 2021, and one of them brought up high-yield savings accounts (HYSA). I had never heard of this type of account before and was shocked to learn that these savings accounts had a way better interest rate than a regular savings account.

How was I just hearing about this at 28 years old? My mind was blown!

I thought, what else don’t I know? So of course, that led me to deep dive into the world of personal finance. I consumed any book, video, blog, or podcast I could get my hands on. I read stories after stories of people paying off thousands of dollars’ worth of debt, leveraging credit card points for free travel, investing, and so much more!

It was so motivating. I was hooked! (And still am.)

Bret was open and willing for me to share with him what I was learning. We started realizing that for the last year and a half, we hadn’t been telling ourselves “No”. We had just been buying whatever we wanted, and we had the credit card bill and no savings to show for it.

We learned that we could pay off all our debt and it didn’t have to stay with us forever. We learned there was a way to use a credit card responsibly (we thought we were). We learned that we could even retire early. That one sounded real nice! We dreamed of having more time doing our hobbies, traveling and being with our friends and family. And if we ever had kids, we dreamed of being able to work part-time so we could be home more with them and available for school activities.

Knowing this, we started reining in our spending, trying to just be more “mindful”, but no major change was made.

We take on more debt

April 2022: People in our neighborhood were getting new fences. We started thinking, “Hey, we need a new fence, too…” In some areas it was broken, it hadn’t been stained so was rotting, and was 15 years old. We were also going to get an updated appraisal to see if we could get our primary mortgage insurance (PMI) removed after just two years of owning our home and thought a new fence might help.

A coworker told me she was using a home equity loan to buy a fence and to do some other home renovations. We investigated options and ended up opening a $20,000 home equity line of credit (HELOC) instead with about a 4% interest rate. We buy our fence which ends up being about ~10,000 and we were set on it…

The second “wake-up call”

When it was all said and done, we loved our fence. We still love our fence, it’s beautiful! (And it better be at that price!) We stained it and we believe it will last us for many years.

But we start talking again about our debt and how we probably didn’t need this fence right now. We know we didn’t need this fence right now. Our PMI was removed, and it could have maybe happened even without the fence. Who knows.

We began thinking we need to make some serious changes in the way we manage our money. We need to do more than just be “mindful” about our spending. We make a real plan. We plan to make an actual budget, stop taking on unnecessary debt, and take a break from using our credit cards for the foreseeable future.

May 2022: Beginning of our debt payoff journey

Since we were serious about our new money management changes, I documented how much debt we had so we could track our progress.

$277,721.41

Here was the breakdown:

$260,390.25 in student loans, Bret & I’s combined – various interest rates
$10,676.24 HELOC – 4% interest rate
$5,430.76 is from credit card spending – 4% interest rate*
$449 for furniture – 0% interest rate
$775.16 for Peloton bike – 0% interest rate

*We moved our credit card debt to our HELOC since our credit card was around a 25% interest rate.

July 2023: Current debt numbers

Our current debt balance is $251,195.39, * which are all student loans.

We have paid off a total of $28,026.02 of debt!

*Our current balance will increase to ~$255,000 once Bret gets his final student loan disbursement (more on that later).

I want to also mention that we do have our mortgage, but we aren’t trying to pay that down as quickly as possible for a few reasons: we have a 3% interest rate, we don’t plan on this being our forever home, and one day we might rent it out or sell it.

Actions that helped us pay off $28,026.02 of debt in 15 months

We found a budgeting method that worked for us

We realized we could live off my income alone and not take on anymore debt, but we would have to have a somewhat rigid budget.

Finding a budgeting method that worked for us took some time. I don’t know how many times over the years I have tried to track my expenses in a budget app or an excel sheet, only to find out it was too overwhelming and that I was still overspending!

I am a visual person and learned about the envelope budgeting method, so we decided to give that a try, but use a digital variation.

So, for our entire money management system we have 4 checking accounts and 2 savings accounts (short-term and emergency fund). Our checking accounts include bills, food and miscellaneous, and two personal spending accounts.

This may seem like a lot of accounts to some, but it has worked tremendously for us. I love having a separate account for each major category in our budget so I can easily see how much money we have left in a certain category without having to add every expense into an app or Excel spreadsheet. We are joint owners on all of these accounts.

We then use the zero-based budget method to determine how much goes into each account.

We do have multiple cards to manage, but the pros VERY MUCH outweigh the cons here.

And with our own spending accounts, we have a certain amount of money allotted to us each month, so we individually have some spending freedom. We don’t have to feel guilty and know this money is set aside specifically for our personal spending.

Cut expenses and increased our income

I know some people are tired of hearing about this recommendation, but it’s something that really did help us! We reined in our spending a bit but mostly we had to increase our income. At a certain point, there wasn’t much more to cut.

We didn’t have many streaming services, started to limit our eating out, we didn’t have car payments, and we meal planned and prepped. We did (and still do) aaalll the things. We had to increase our income somehow.

Ways we increased our income

My income increase

I continued with my second job as a social media manager and then started dog sitting.

I have been dog sitting for about 5 years and have primarily used the Rover platform to list myself as a dog sitter. I like this app because it’s easy to use and I can specify various services to offer (e.g., house sitting, boarding, drop in visits, day care, or dog walking).

It also allows me to mark which days I am available and then people reach out to me if I seem like a good fit and my availability matches with their needs! Setting up my profile took some time, but now that it’s done, everything else is fairly low maintenance.

I now just have to respond to inquiries in a timely manner and set up a meet and greet if it seems like a good fit.

I currently only offer house sitting and on Rover and I charge $65/night. Rover takes a cut, so I end up pocketing $52. I also have private clients who pay me directly, and I have gotten those by referrals from past Rover clients. I charge my private clients $40/night.

I recently increased my rates on Rover and have been slow to increase my price with my private clients because they’re loyal.

I don’t make a ton of money dog sitting, but I am able to make a couple hundred dollars a month. My schedule is very limited, but there are people with better availability who make significantly more than I do!

I love animals and we don’t have any due to our sporadic work schedules, so it’s a great way for me to spend time with pets and get paid, too!

Bret’s income increase

Last year, Bret decided to take a break from grad school and soon after, he was offered a summer job in Alaska.

When we first started dating, he used to spend almost every summer there working for a family who owned a set-netting fishery. His uncle had spent many summers in Alaska working for this family and one summer brought Bret to work with him. They would catch salmon and sell it to a buying station in their area.

He went up there for about 6 summers in a row, until he got too busy with school and couldn’t go anymore.

He hadn’t been to Alaska in over 5 years, but someone who worked for the buying station remembered Bret, called him, and asked if he’d be interested in working at the buying station! Since he was already on a break from school, he said yes and worked up there for 8 weeks.

We were able to put every paycheck he earned towards our debt because we could manage all our expenses on my income alone. It was also a great way for Bret to spend part of his summer and I was finally able to visit as I never gotten the chance in previous years.

House hacking

We also started house hacking! We had a spare bedroom and bathroom I would use for my office and occasionally, for guests. A friend of mine and her husband are really into the real estate space and gave us the idea to rent it out.

We weren’t comfortable with the idea of having a long-term roommate, and with both of us working in healthcare, we knew there was a need for short-term and furnished housing for travelling healthcare professionals.

For us, short-term meant renting for 1-6 months, but we were open to individuals staying longer if it worked well for everyone involved!

Some questions we had to address before renting:

Did we need a permit?
How much should we charge for the deposit, rent and pets?
What furniture and amenities are important for travelers?
Where should we list the room?
How to create a lease agreement?

In our county, we did not need a permit to rent out the room if we were renting for at least 30+ days at a time.

After researching rental prices in our area, I found rooms that were of similar caliber listed for $1,100 per month or more. We wanted to be competitive and so we initially settled on $900 per month and have steadily increased it. We have now landed on $995 per month which includes all utilities and internet.

We set the deposit at $995, with an additional $300 for a pet deposit, and no ongoing pet rent.

We wanted to upgrade the furniture in the room and IKEA was a great place for us to find affordable, durable, and aesthetically pleasing furniture. We made sure the room had a bed, large dresser, bedside table, and we kept my desk in there too.

I read it’s important for travelers to have their own TV available so they can unwind in their room. We were able to find a decently priced smart TV off Facebook Marketplace.

Furnished Finder is where we decided to list our room, which started out as a platform for traveling nurses to find furnished housing. It is now used heavily by many healthcare professionals, students, and professionals in other fields.

Travelers reach out to us through the Furnished Finder website and if the dates work out, we move forward with scheduling a video interview. It’s important for us to be able to talk to the person, even if it’s just over video, and we want them to see our faces and home in real time as well.

For the lease agreement, we used ez Landlord Forms, because they have leases for each state with specific information on what’s required to include.

We don’t ask for anything major from tenants. The most important things to us are that they are respectful of our space, don’t smoke in the house, and pay their rent on time. We also added a page at the end for tenants to add two emergency contacts in case we need to call someone on their behalf.

We have had 4 renters so far with the room being occupied for 13 out of the last 14 months. It has really helped us with our debt payoff goals and we have also met some awesome people through the process! We plan to continue renting it out for the foreseeable future.

Applied for in-state student loan help

My state offered a program called the Oregon Behavioral Health Loan Repayment Program where they help minorities in the behavioral health field, or those who serve them, pay back their student loans.

This program is funded by The Behavioral Health Workforce Initiative which has the goal of recruiting and retaining behavioral health providers who, “Are people of color, tribal members, or residents of rural areas of Oregon, and can provide culturally responsive care for diverse communities.”

To apply, I had to show I was employed and actively providing behavioral health services and give them detailed documentation about my student loans. I also had to answer two essay questions related to being a part of and/or working with communities who are underserved and how my training has equipped me with supporting these communities.

I applied last year and was a recipient of an award!

As a recipient, there is a two-year service commitment which means I have to continue providing some sort of behavioral health service during that time frame (which I planned to). Over the next two years, I will be getting ~$88,000 in quarterly disbursements to put towards my student loans. So far this year, I have received ~$11,000, and it’s been life changing to say the least!

Alongside this support, I am also pursuing Public Service Loan Forgiveness (PSLF) for additional student loan relief.

Managing our mental health while paying off debt

Since I am a social worker, I often think about how money and debt affect individuals’ mental health. It’s one of the reasons why I started my blog in the first place.

I realized managing money is a universal task and many of us don’t know what we are doing because talking about money is taboo. And when you have financial stress, it can really take a toll on your mental health. So, I wanted to share our journey in hopes of helping others.

Bret and I aren’t those individuals who want to avoid eating out and fun experiences until we are debt free. And, we are also privileged to not have to take those extreme measures either. It has been important for us to make this journey sustainable and not deprive ourselves of experiences while we are going through it.

Here’s how we are making our journey sustainable:

Still going out to eat
Budgeting for personal spending money, aka fun
Setting realistic debt payoff goals
Putting aside money for travel
Not comparing and thinking other people are better than us because they’re able to pay off their debt quicker
Tracking our debt payoff progress (we use Excel). With so much debt left to pay off, being able to see our progress is really motivating
Openly talking about our debt. Avoidance is a coping mechanism for many, for us, acknowledging and addressing it has been so freeing (but it wasn’t always this way).
Talking about our dreams and reminding ourselves why we want to do this in the first place

We know that if we eliminated going out to eat, budgeting for fun, or both, we could be paying off our debt much quicker. However, that sounds miserable to us. It’s worth it to still go out to dinner, travel, or buy plants (in my case) than to deprive ourselves of the joy these things bring.

We are making great progress and we know in time, we will be debt free.

Our debt payoff journey is not linear

A few months ago, we decided to take out $6,000 of student loans. Bret currently has a full tuition scholarship, so we are tremendously lucky in that regard, but he just learned about some conferences that would be really helpful to his professional growth. We have gotten $1,500 of this loan money already which is included in our current debt balance, but we haven’t received all of it yet.

We could have pinched and saved to avoid taking on any of this debt, but that would have caused me to work more than I currently am. Again, not in line with our current goal of making this journey sustainable!

We were very intentional about how much to take out. We estimated how much he would need for a few conferences and declined the rest. We even opened a separate savings account for the money to make sure it didn’t get accidentally spent on anything.

I’m SO proud of us for that!

The goal here is progress not perfection. So cliche, I know. But we are learning how to think critically about our money, spend thoughtfully, use our money as a tool to reach our goals, and enjoy our life along the way. And right now, that meant taking on a little more debt.

We are moving in the right direction, and we know when he starts working, that will really accelerate our debt payoff journey since we have proven to ourselves we can live on my income alone.

Our plan going forward

Bret is still in school which means his loans are on deferment, so we currently have his on the back burner.

With the loan payment assistance I am receiving, it’s allowing us to put any extra money we have each month towards our savings. Our priority right now is building up a good emergency fund of about $16,000 (~4 months’ worth of expenses).

This has been difficult because of inflation and just little emergencies that keep popping up, but we are slowly making progress.

I am also prioritizing investing in my employer retirement plan, but only up to the amount that gets me my employer match which is 6% of my income.

Bret will be graduating in 2025, so at that time, we will pivot to incorporating his loans into our budget. Our goal is to be debt free by 2028.

It will take a lot of discipline and persistence, but I think we can do it. I am manifesting it!

We want to continue to learn, implement, and grow. We want to keep having transparent discussions about money and building our money foundations. And I personally want to continue sharing our journey with hopes of inspiring, encouraging and educating others. Here’s to sharing the wealth.

Do you have debt? What are you doing to pay it off?

Taylor is a social worker and personal finance blogger at Social Work to Wealth where she shares tips, resources, and lessons learned on her family’s journey to paying off $277,000 of debt and retiring early. She hopes to inspire and empower social workers with financial education so they can have a better relationship with their money. When she’s not working or blogging, you can find her traveling, gardening, trying a new restaurant, or buying too many plants.

Source: makingsenseofcents.com