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To avoid some of this frustration and exhaustion, hire professional movers to transport your items from your old apartment to your new one. Hiring a moving company is helpful, yet there are different steps you’ll need to take to prepare for your move than if you were doing it all on your own.

To make the moving process run smoothly, you’ll need to get some things ready before the movers show up to tow your belongings over to the new rental. Here’s our comprehensive list of preparations to help you get your place ready for the movers.

How to get ready for movers

Movers will make things much easier on you, but you’ll still need to do a few things to get ready for them to help. You know your apartment and your belongings better than the moving company does, so they’ll be relying on you to help them navigate!

Have a plan

When you hire a moving crew to take care of the heavy lifting for you, don’t assume that once you’ve made the call and set the appointment that takes care of everything. Moving companies are pretty good about asking questions to get clarification on what you need and expect, but you’ll still need to plan things on your end to get ready for the movers moving day.

Create a basic plan to get everyone on the same page. The main things that you’ll want to include in your planning are the time that movers come and where you’ll be moving. However, any additional details for the plan will be immensely appreciated by the movers.

A few questions to answer as you create your plan:

  • How much stuff do you need to move/how many rooms will you be moving?
  • What time will you need the movers to show up?
  • Will you require packing services, where hired professional packers pack up your belongings for you?
  • Do you have lots of large items?
  • Does your apartment have an elevator or will movers go up and down stairs?
  • How far away is your new place/how long will it take to get there?

As you answer these questions, it can give you an idea of the timing and how long you’ll need to have movers reserved. Plus, it will make moving day much easier and you hopefully won’t feel so stressed.

Clean out unwanted items

We all accumulate a variety of items throughout life, many of which we only use once or very seldom. Before you move is the perfect time to clean out all your belongings you no longer need to keep around.

Cleaning things out before you move versus after means you’ll be packing and moving less stuff! You don’t need to go full Marie Kondo and get rid of lots of items to make your move a little easier. Even cleaning out a few items from each room will make a difference, especially if they’re bigger ones.

Cleaning out can become profitable to you, too! You hold a garage sale or sell used items on Facebook Marketplace or Craigslist to pocket a little bit of extra cash while you move. Or, if you’d rather not go through the hassle of posting the items and waiting for buyers, you can donate unwanted items to thrift stores.

As an additional note, you’ll need to dispose of any hazardous materials yourself. Movers won’t handle any hazardous waste or extremely flammable items, so take care to dispose of them properly beforehand.

Clean up

To get ready for the movers to arrive to haul your belongings to your new apartment, you’ll need to clear pathways for them to walk. They’ll be carrying heavy furniture and boxes with fragile items inside, so you don’t want them to trip and get hurt or damage your belongings while they walk through your apartment.

If you’re paying a moving company to do all of the packing and boxing for you, clean up your apartment, but don’t remove items from the rooms they’re in. Professional movers have a system they follow to pack and properly label boxes that will make it easier to move, unload and unpack in the proper room of your new place. So, leave the professionals to their business and keep things out of their way.

Set aside items you don’t want movers to take

Obviously, there are items you own that you don’t want movers to take in their truck with the bulk of your belongings. These are valuable items that you’re extra nervous about breaking during the moving process, such as jewelry, family heirlooms or personal documents. As well as delicate items like plants that are finicky and need an extra bit of care as you transport them.

Create an “essentials box” for such items and make sure you put them in their own area of the apartment or a separate room and make it clear that you don’t want them taken with the rest of your stuff. Verbally communicate it to the movers and have obvious labels on the items so there isn’t any mistaking whether or not the items go in the moving truck.

Make an inventory of your belongings

It might seem excessive to document your belongings, but you’ll be glad you did! Creating a detailed inventory or comprehensive list of the items you own will help you stay more organized as you pack, unpack and figure out how to box things up to get ready for the movers.

This doesn’t necessarily mean you need to write down each individual item you own. Rather, you can make a general list and combine like items so it all still makes sense. For example, you might just put “makeup bag” as an item since you don’t need to document every little piece of makeup you have for your record.

The easiest way to make a moving inventory of your belongings is to use some type of online document that you can access from anywhere. You may choose a simple note on your phone or you might be the type that likes a spreadsheet. Whatever documentation method you choose is fine as long as it makes sense to you!

Grab packing supplies

Before you start packing things up, you’ll want to get the supplies to do so. Getting everything beforehand will keep you from having to make multiple trips to the store to buy things you need mid-move and it will ensure that you have the proper supplies to safely pack your fragile pieces.

At the very least, here are the basic packing supplies you’ll need:

  • Moving boxes
  • Packing tape
  • Masking tape
  • Permanent markers
  • Bubble wrap

You’ll use these supplies to not only pack, but protect and label your belongings for the movers.

Box everything before movers arrive

Have everything packed up in moving boxes before the movers arrive. When you prepare for movers by putting your belongings into boxes, it makes the process easier for everyone.

If the movers you hire charge by the hour, it will save you lots of time and money by having things already boxed up and ready to carry out. If the movers have to wait for you to finish packing things into boxes, your moving costs will go up and it makes the movers’ job a little harder as they can’t do much while they wait for you.

Packing small items

While packing up really small items like jewelry and office supplies, you’ll want to find a way to keep everything contained so it’s not a mess when you unpack. You don’t want to sift through all of your paperclips or makeup brushes out of the bottom of a big box. Some good ways to keep small items together for packing are:

  • Ziploc bags
  • Rubber bands
  • Travel containers
  • Makeup travel bags
  • Extra small containers

When you pre-pack small items before putting them into larger boxes, it will help each box stay neat and tidy.

Put a lid on

Most moving companies won’t take boxes and bins without lids on them, so keep that in mind as you box up your belongings. Make sure everything you want movers to pack up in the truck has a lid so you can stack boxes and items don’t fall out.

Pack food items accordingly

There’s a good chance you’ll want to take all of the food from your refrigerator and freezer and move it to your new apartment. But perishable food items will thaw and melt or go bad if you put them in normal moving boxes.

Pack cold items into a cooler to keep them from going bad. In most cases, a simple cooler will do the trick if you pack it the day of your move and unpack it the same day. But, if you’re doing a cross-country move, you’ll want to give yourself reminders to add or replace the ice inside the cooler so you can maintain the food.

Leave cleaning supplies behind

When you’re moving out of an apartment, cleaning is usually the last thing you need to do and you’ll need to have cleaning supplies around to complete the job! Set aside your cleaning items so you can clean the place once your belongings are all moved out. This will keep you from having to dig them out of your boxed items or from running to the store and spending a bunch of money on new cleaning items.

Don’t forget about collecting trash before you leave. Keep a garbage bag around to throw away any of the disposable hand towels you used for wiping things down or any extra household items lying around after the movers have taken the big stuff.

Bubble wrap fragile items

For large items that you’re afraid of damaging, wrap them in bubble wrap. This includes things like paintings, picture frames and mirrors that you can’t fit in a moving box and are easily breakable.

There are also small, fragile pieces you might want to consider bubble wrapping before you put them into boxes. You should wrap anything glass and there are some wooden items you should wrap — glass dishes, wooden or porcelain figurines and candles in glass jars are some common items that need a little cushioning to avoid breaking during the mover.

Label everything

Once you’ve got things packed away in their boxes, label everything in a way that makes sense to you and communicate the meaning of the labels to movers. Don’t forget to label all your furniture with their proper rooms, along with each individual box!

Simple labels

One of the most common and convenient ways to label boxes for both you and the movers is by room — simply label everything from the kitchen “kitchen,” bathroom items “bathroom” and the same applies to all other rooms. This makes it easy for movers when they arrive at your new house or apartment and need to know which room each box belongs in.

In-depth labels

If you want to get more granular for your own personal use when unpacking, you can also make note of all the items in each box either on the top or sides of the boxes. For the movers, this probably isn’t helpful as they just need to know which rooms to put boxes in, but it can help you when you’re putting things away.

Ways to label

Depending on the boxes you use and how you transport large items, you may want to change the way you label things. If using cardboard boxes, you can use a marker to write directly on the box. If you have plastic bins, you may want to write the label on a strip of masking tape and apply it to the bin. And, the same goes for bubble-wrapped items — write the label on a piece of masking tape and put the tape right on the bubble wrap.

Make room for the moving truck

Most apartment buildings have limited parking and there probably aren’t many places to put big moving trucks. Some complexes have specific zones for large vehicles, but they can only park there for a limited time or they may need a special permit.

If you communicate with the building’s property management, they can usually help you figure out where to park and load the moving truck. They’ll also let you know how to get a parking permit if needed.

Make sure you figure out these details at least a few days before the moving company arrives or else it could delay things or cause issues with parking and loading the truck. You’ll also want to check with your new place and make arrangements for the movers to park and unload in your new apartment. Inform the movers of the parking details before the moving truck arrives so you can save time and improve the process on moving day.

If you’re lucky enough to have your own personal driveway at your old or new apartment, this makes the moving day much easier as you can simply pull the truck into the driveway without blocking parking spaces or needing a special permit.

Stay out of the way

Nothing is more frustrating than trying to do your job and someone constantly getting in the way of it. Professional movers are not the exception here and if you, your family, your friends and even your pets are getting in the way, it will make things exponentially more difficult and frustrating for the movers as they try to work. Let everyone else know to stay out of the way of movers so they have the space to do what they need.

If you have pets or young children, you may even want to get a babysitter for the day or have an adult family member watch them just to guarantee they won’t get in the way of things. This is for the safety of both your loved ones and the movers.

As you get ready for the movers, remember our tips above! It may seem like a lot in the moment, but it’s well worth all of the planning and preparation for a successful move. So, check company reviews and find the best moving company for you and get moving!

Source: rent.com

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I discuss the risk of a housing bubble from time to time because let’s face it; it’s always going to be a concern in this day and age.

Real estate has become extremely speculative, and with that comes quicker highs and lows. So when’s the next bubble coming, you ask?

In the past, I’ve written that some housing markets may have already experienced a new bubble since the latest outright crisis, while others may simply be suffering from an affordability crisis.

There’s also an early warning system for housing bubbles now.

Regardless of these opinions, with the home price gains we’ve realized since the housing bust, there’s certainly reason enough to worry.

After all, when home prices swing markedly higher in such a short period of time, it’s not unreasonable to expect some giving back.

Housing Market Healthiest Since 2001

Believe it or not, the housing market is apparently the healthiest it has been since 2001. In fact, it hasn’t ever been healthier, per the Leading Index of Healthy Housing Markets (LIHHM) from Nationwide, which began 14 years ago.

The current value of the LIHHM is 109.8, up slightly from a quarter earlier but well above the 100 “breakeven value.” In other words, there’s little risk at the moment. And if anything, more upside ahead for the housing market.

Put another way, the reading means we have little reason to worry about a downturn over the next year, despite the recent home price gains.

In fact, none of the nation’s largest metropolitan statistical areas (MSAs) are in negative territory, and just six are neutral.

Further, only two MSAs in the nation are negative (Bismarck, ND and Atlantic City, NJ), and they’re even close to being neutral.

Interestingly, the only thing really holding back the market from being even healthier is “a continued tight mortgage lending environment,” per Nationwide’s associated Health of Housing Markets (HoHM) Report.

But with new low down payment options like the Fannie 97 LTV mortgage and existing programs from the VA, FHA, and USDA, it would seem that might not be an issue any longer.

For the record, the LIHHM is based on four factors, including:

1. Employment
2. Demographics
3. Mortgage Market
4. House Prices

A score between 75 and 125 is possible, with 100 being neutral. There are also performance ratings for each MSA, from -4 (very negative) to +4 (very positive).

Predict the Future by Looking at the Past

Take a look at the map above. As you can see, much of the country is currently in the green, which is a good thing. As previously mentioned, there are just two negative (red) spots in the country, and they are only at -1, not -4.

And those tan colors are all neutral zones.

Now look at the map below, which is the same map from the fourth quarter of 2005.

Full of red, some neutral, and just a few green spots in places like Texas.

The national index fell below 100 in early 2005, recovered somewhat in 2006 (while staying below 100), and then kept dropping until 2010.

During that time the housing market was a mess, so this indicator has actually proven itself in the past.

Assuming it continues to be accurate, we don’t have any pressing concerns at the moment because the current map looks a lot better than it did in 2005, just before the real estate market began to peak and then crash.

Furthermore, there seems to be a time lag between when the map turns red and when home prices take a hit.

It went red in 2005, but home prices continued to rise before peaking in 2006 and 2007. Additionally, home prices didn’t really rebound until 2012, despite the LIHHM reading hitting 100 at the start of 2011.

Using that logic, there’s still plenty of time before we need to really start worrying again…

Source: thetruthaboutmortgage.com

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Parents and grad students have options when it comes to paying for college. Federal aid, institutional scholarships and grants…prepaid tuition plans. But sometimes there’s a leftover cost.

Federal PLUS Loans are an accessible option for graduate students and parents of college students.

Parent PLUS Loans are federal loans for parents of full time students. They offer flexible repayment options, fixed interest rates, and higher borrowing limits.

Direct PLUS Loans are available to graduate or professional degree students. They are also known as “grad PLUS Loans.” Both Parent and Grad loans fall under the Direct Loan Program operated by the federal government.

What Is a Parent PLUS Loan?

As mentioned, Parent PLUS Loans can be borrowed by parents of undergraduate students, in order to help their child pay for college. These loans are funded by the U.S. Department of Education and are part of the Direct Loan Program.

Unlike other types of federal student loans, Parent PLUS Loans do require a credit check. If an applicant has an adverse credit history, they may not be approved to borrow a Parent PLUS Loan.

Recommended: What Is a Parent PLUS Loan?

How Do Parent PLUS Loans Work?

As noted previously, Parent PLUS loans are available to all qualifying parents of undergraduate students. Borrowers with poor credit history can ask an “endorser” to cosign the loan or borrowers can send a report clarifying their credit history to be considered.

The loan amount is limited to your child’s Cost of Attendance (COA), less any other aid awarded to the student. The interest rate is fixed for both loan types and interest accrues the moment it’s released, even during deferment. Also, PLUS loans have an origination fee of 4.228% for the 2023-2024 academic year.

Like other loans in the Direct Loan program, a third party company called a “loan servicer” manages customer service around general billing requests such as repayment and deferment.

Parent PLUS Loan Application Process

The first step in borrowing a Parent PLUS Loan is to have your child fill out the FAFSA® or Free Application for Federal Student Aid. This is required before a parent can request a PLUS Loan. After the FAFSA is taken care of, parents can submit an online application for a PLUS Loan.

Note that while most schools offer an online application, some schools may have a different process. If you have any questions, check in with the financial aid office at the school your child attends.

Before applying, remove any security freezes on your credit bureau files. Any active credit freezes will prevent an application from being processed.

It may take upwards of 20 minutes to complete the application. And you’ll generally need the following information:

•   Verified FSA ID

•   School Name

•   Student Information

•   Personal Information

•   Employer’s Information (such as the employer’s name, address, and phone)

A verified FSA ID is a unique ID that acts as a legal electronic signature. It should only be used by that applicant.

After being approved for the PLUS Loan, borrowers will be required to fill out the Master Promissory Note (MPN). This indicates that you agree to the terms of the loan.

Recommended: Do You Have to Apply for a Parent Plus Loan Every Year?

Filling Out FAFSA

The FAFSA is required for all forms of federal student aid, including grants, work-studies, and federal loans. Some state and school-specific aid may also be awarded based on information included on a student’s FAFSA form.

Applicants who submit a FAFSA get a Student Aid Report (SAR) that summarizes the form’s information. It will include your Student Aid Index (SAI; formerly, the Expected Family Contribution) and your eligibility for federal grants and loans among other details. Schools listed on your FAFSA get a copy of this report to determine aid.

Recommended: FAFSA Guide

Determining Your Eligibility

Borrowers must fulfill the following basic requirements:

•   Be the legal guardian of an undergraduate enrolled in a higher ed program part-time or full-time

•   Fulfill general Federal Student Aid requirements, such as citizenship

•   Not have an adverse credit history

How Much Can You Borrow?

Parent PLUS Loan borrowers can take out the total cost of attendance of the program their child is enrolled in, less the amount of scholarships or other forms of aid.

How Much Do You Want to Borrow?

It can be tempting to borrow to make paying for college easier, but be cautious of overborrowing. Parent PLUS loans have costlier fees and rates, with the latest interest rate at 8.05% combined with a 4.228% origination fee.

For income-earning parents, it may be easier to measure the amount of student debt you should take on. As a general rule of thumb, all debt, including student loans, should not exceed more than 20% of your annual or projected annual take home pay.

Filling Out Your Parent PLUS Loan Application

Prospective students and parents of prospective undergraduates fill out a parent plus loan application online. Grad PLUS loan applications are separate online forms.

Enrollees will have the option to sign up for deferment and get a credit check on the spot — so be prepared to know which decision works best for you to apply for student loan. Finally, borrowers can view a demo to tailor the prep-work.

Recommended: Grad PLUS Loans, Explained

Signing a Promissory Note

Once you complete the plus loan application, you’ll be directed to complete a Master Promissory Note (MPN). An MPN spells out a borrower’s rights and responsibilities in the loan agreement.

Loans will not be awarded until an MPN is completed.

You’ll be asked to fill out personal information and provide two references as future contacts in case you’re unreachable.

What to Expect After Applying

Approved loans will be disbursed to the school you’re enrolled in and they’ll apply the loan to outstanding fees, tuition, and/or room and board. If there are funds leftover, you can cancel the remainder or choose to keep it for discretionary expenses related to higher ed day-to-day living.

What If You Are Denied?

If you are denied a loan, you may be able to add an endorser to your application. An endorser is someone who agrees to pay your loan if you are unable. If you were denied for having an adverse credit history, you will likely need to complete an online PLUS Credit Counseling course.

How Long Until the Loan Is Disbursed?

Each school pays out loans on a different schedule. Once the federal government has processed your paperwork and released funds, schools handle the process afterwards. If you have questions about when your loan will be disbursed, contact the financial aid office at your child’s school.

When Do You Need to Begin Repayment?

Repayment for Parent PLUS Loans may begin immediately upon disbursement or after deferment, depending on the repayment plan you select.

If you request a deferment, you are able to pause payments until six-months after your child graduates from college. If you are interested in this option, you can make this selection on the PLUS Loan application or request it directly with the loan servicer. Interest will accrue even while the loan is in deferment.

Applicants who do not choose deferment must begin repayment as soon as the loan is disbursed.

Income-Driven Repayment Options for Parent PLUS Loans

Parent PLUS Loan borrowers are able to enroll in an income-driven repayment plan if they first consolidate the loan through the Direct Consolidation Loan Program. Income-driven repayment plans tie the monthly payments to your income and repayment takes place over a period of 20 to 25 years.

On these plans, your loan payment may fluctuate each year, depending on your income and family size. At the end of your repayment period, any outstanding balance is forgiven, but under certain circumstances, this forgen amount may be considered taxable income by the IRS.

The Takeaway

Parent PLUS loans are federally funded loans available to parents of undergraduate students. PLUS loans and private student loans meet different needs. Parents might like the idea of their children learning independence, and getting a loan in their name — even as a cosigner — might be a more attractive option.

Also, a key difference between PLUS loans and private student loans is credit score impact on borrowing limit and interest rates. Parents who have lower, but not adverse credit scores, might get higher interest rates and lower borrowing limits for a private loan versus a PLUS loan.

SoFi offers the same benefits as most federal loans, including deferment and flexible repayment plans. Our interest rates for private student loans are competitively low — and we have a no-fee policy.

Check out our private loans for undergrads today and find out your rate in minutes.

FAQ

How long does it take for approval for a parent PLUS loan for college?

Loan applications are approved or denied on submission and schools are notified within 24 hours. Applicants must pass eligibility requirements after completing the application. An MPN and FAFSA also must be completed prior to loan awards. Disbursement processing times differ with each school.

Can you be denied a parent PLUS student loan?

Yes, if you have an adverse credit history. You can get a PLUS loan with an endorser or documentation proving extenuating circumstances around your history. Examples include foreclosure or bankruptcy.

What is the maximum borrowable amount for a parent PLUS loan?

The maximum amount allowed is your child or your Cost of Attendance (COA). COAs are determined by schools.

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

SoFi Private Student Loans
Please borrow responsibly. SoFi Private Student Loans are not a substitute for federal loans, grants, and work-study programs. You should exhaust all your federal student aid options before you consider any private loans, including ours. Read our FAQs.
SoFi Private Student Loans are subject to program terms and restrictions, and applicants must meet SoFi’s eligibility and underwriting requirements. See SoFi.com/eligibility-criteria for more information. To view payment examples, click here. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change.

Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.

Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Photo credit: iStock/solidcolours
SOPS0222009

Source: sofi.com

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Chances are you’ve heard the term financial plan in a news story or in conversation with coworkers or family. Having a financial plan sounds smart, but not everyone knows what goes into a proper document and why they need one.

Thankfully, these plans aren’t difficult to put together. If you want, you can create a simple financial plan yourself. Those that prefer a more in-depth document can hire a financial planner to put one together for them.

So what exactly is a financial plan and how do you create one? Here’s what you need to know.

What’s Ahead:

What does a financial plan include?

A financial plan is a document you or a professional put together that guides your personal finances. The plan can be as detailed or minimal as you’d like. It should inspire you to make progress both over the short-term and long-term. 

While many people end up with a written financial plan, your plan isn’t set in stone. You can adjust it as your life and goals change over time. That’s why it is essential to revisit and revise your financial plan regularly.

If you’re financially savvy, you may be able to create a financial plan yourself. After all, it’s just a document that outlines your current financial situation, where you want it to be, and how to get there. You could easily use Google Docs, Google Sheets, and free investment calculators to put together a document you could call your financial plan.

That said, a well thought out financial plan should include the following sections.

Current situation

In order to figure out where to go, you must first know where you’re starting. A financial plan can gather valuable information about your current finances including your income, expenses, cash flow, debt, savings, and investments. 

If you track your finances, coming up with this data is much easier than starting from scratch. Either way, it’s important to know what tools you have to work with.

Look at your bank, debt, and investment statements to find relevant information about each financial item. Once you have a list of your current financial positions, you can find out how much money you can put toward your goals. You can also use this starting point to come up with realistic near-term and long-term goals.

Future financial goals and how you’ll achieve them

A financial plan is a road map for your finances’ future. You should set short-term, mid-term, and long-term goals for your money within your plan. Goals can include getting out of consumer debt, building an emergency fund, reaching a specific dollar amount of investments before retirement, and more.

A financial advisor can help you think of goals you might miss. Since they create financial plans for a wide variety of clients, they can fill in the spots you may not be thinking of that are still extremely important.

Retirement planning

One of the biggest goals is being able to retire. Your plan should address how you plan to fund your retirement and how you will build the financial means to do so.

Retirement planning is more than picking a retirement number. You have to decide how much to invest each year, what types of accounts to invest in, and which investments to choose. Once you reach retirement age, you have to have a drawdown strategy that preserves your funds so you have money until you pass away.

Tax planning

Tax planning is another important concept you should include in your financial plan. It allows you to keep more of your money to put toward your goals. It does this by making smart decisions about your money to reduce the total amount of taxes you’ll owe over your lifetime.

Some tax planning strategies are as simple as putting the right types of investments in the correct tax-advantaged accounts. Other strategies are more complex. For example, one requires keeping track of the basis of your investments so you can perform tax-loss harvesting. Financial advisors can help expose you to strategies you may not know of. By learning more strategies, you may be able to keep more of your hard-earned money.

How you’re protecting your finances

It’s also crucial to manage how you’re protecting your family and finances. Insurance is often a vital tool people use to do this. You’ll want to consider your needs for car insurance, homeowners insurance, renters insurance, life insurance, disability insurance, long-term care insurance, and umbrella insurance, among many other types. 

In addition to insurance, you’ll want to make sure you’re taking care of any estate planning that needs to be done. You may want to set up a will, trust, advance medical directive, or other estate planning documents to make sure your wishes are respected when you pass away. Your plan can use specific strategies to make sure there are as few tax impacts as possible when you die. 

What’s the purpose of a financial plan?

The purpose of a financial plan is to develop a thoughtful representation of how to reach your financial goals while protecting your family and finances. It should give you a roadmap about how to reach your goals and secure a bright financial future.

Creating a financial plan makes you think critically about what you want your future life to look like. This can be a great way to set bigger goals or make adjustments if you’re not happy with your current life or lifestyle.

Who needs a financial plan?

You may think only people with large amounts of money need a financial plan. That couldn’t be more wrong. Honestly, anyone can benefit from having one. 

Financial plans can help you figure out what you need to do to have a successful financial future. It gives you a snapshot of where you’re starting and what you need to do to get where you want to go. A lot of what a financial planner helps you with when developing your document isn’t common knowledge to someone that doesn’t know a lot about finances. 

Once you know what goals you need to accomplish and when you need to achieve them, you can be more motivated to move forward faster. Often, having a financial plan that you review and update regularly can be a great motivating factor. It can assist with getting your finances in good shape for your future and retirement.

How do you make a financial plan?

If you’re financially savvy, you may be able to create a financial plan yourself. After all, it’s just a document that outlines your current financial situation, where you want it to be, and how to get there.

You could easily use Google Docs, Google Sheets, and free investment calculators to put together a document you could call your financial plan.

Take inventory of your current situation

The first thing you should do is see where you’re starting. First, work on tracking your spending and income. You can do this manually or by using free software like Empower. Next, calculate your net worth. This involves gathering information about your assets (such as cash and investments) and debt (such as car loans and mortgages). It can be done with a simple spreadsheet or using a service like Empower.

Once you have this information, make sure you keep it up to date. Continue tracking your spending on a monthly basis. Consider updating your net worth once per month, quarter, or year based on your goals.

(Personal Capital is now Empower)

Set goals you want to reach on a timeline

After you know where you’re starting, you get to figure out where you want to go. There are several financial goals you can set depending on your current situation and where you want to end up. One key is setting a timeline for reaching your goals. This helps you calculate whether it is realistic to meet your goals on the timeline you want.

For instance, if you want to save $20,000 in three years, you’d have to save $556 per month. If that isn’t realistic, you either need to find a way to make more money, cut spending, or find a more suitable goal.

Goals could include:

Make sure to include realistic timelines so you don’t get discouraged and throw out your financial plan.

Determine what actions are needed to reach your goals and take action

After you have your goals and your timelines, it’s time to start strategizing. Goals are only useful if you’re trying to actively reach them.

Based on your timeline and available financial resources, figure out how to allocate your money toward your goals. For some goals, such as preparing for retirement, you’ll need to figure out what investments to invest in. For other goals, such as paying off debt aggressively, you may need to find ways to increase your income to achieve them faster.

Based on these results, take action and set up systems to make reaching these goals a reality.

Monitor your progress

A financial plan works best when you monitor your progress. If you create one and never look at it again, it doesn’t do much good. Set up monthly, quarterly or yearly check-ins to look back at your financial plan so you can see how you’re making progress.

No one is perfect. You may not reach your goals on the timeline you had hoped or a favorable market may help you reach your goals ahead of schedule. The key is knowing where you are compared to your plan.

Make changes and update your plan as needed

If things aren’t going as planned, it’s time to take action again. If you’re falling behind on your goals, find a way to catch up and change your plan to reflect that. Catching up may not always be possible, though. In these cases, you may need to change your goal timelines.

Keeping your financial plan and goals up to date doesn’t mean you failed. It means you’re taking control of your finances. People that have information and measure their progress often make much more progress than those that financially float along in life without these tools.

It may be a good idea to hire a professional

However, you may not be aware of blind spots or better strategies financial experts could help you implement. That’s why most people prefer to hire a financial planner or financial advisor to draft the document for you. They do this for a living. Good financial advisors know the ins and outs of what you need in your plan. But, more on this below!

Do you need a financial planner or advisor?

There are several types of financial advisors you can hire to create a financial plan. Some financial advisors try to get you in their ecosystem to earn commissions on trades or by selling you insurance products. Ideally, you want to avoid these types of advisors. There are exceptions, such as when you’re confident they have your best interests in mind.

Instead, you’ll want to hire a fee-only fiduciary financial advisor who is legally required to make decisions in your best interests. These advisors don’t receive a commission for selling products. Instead, you have to pay them.

Their advisors aren’t incentivized to sell. You’re only charged a flat annual fee based on the services you need. You don’t have to pay an assets under management (AUM) fee, either. They offer several types of planning including retirement, education, life, income tax, insurance, estate, legacy, retirement income, and asset management planning.

If you’d rather work with a financial advisor in person, you can find one using the Paladin Registry. The Paladin Registry is a free service that matches you with a financial fiduciary that can address your concerns and financial planning needs. 

The service has you fill out some basic information about your situation. Then, Paladin Registry searches its database to connect you with one to three suitable financial fiduciary matches for you to compare. They even vet and document the suggested advisors’ qualifications for you.

Once you get your list of potential advisors, you get to interview the candidates and select the best one. Paladin Registry even offers a complimentary guide to help you figure out the best way to interview your financial advisor candidates. Once you choose an advisor, they can create a financial plan for you.

Summary

Putting together a financial plan can be a great exercise. It allows you to understand where your finances are today. It also makes you think about where you want your finances to be in the future and how to get there. You can put together a financial plan yourself. That said, you could miss things you aren’t aware you need to include or strategies that could help you achieve your goals faster.

Many people choose to hire a financial advisor to put together a financial plan. You can hire a service or find an advisor to meet in person using a service such as Paladin Registry. No matter how you decide to create your financial plan, make sure you have one. That way, you know what goals you’re working toward to have a successful financial future.

Read more:

Empower Personal Wealth, LLC (“EPW”) compensates Webpals Systems S. C LTD for new leads. Webpals Systems S. C LTD is not an investment client of Personal Capital Advisors Corporation or Empower Advisory Group, LLC.

Source: moneyunder30.com

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Are you a fan of Shark Week?

If so, you’re in luck if you’ll fly with Southwest Airlines within the next couple of weeks. For the 10th consecutive year, the carrier will offer special Shark Week programming on its flights as part of a partnership with Discovery Channel, the network that produces the special.

Beyond the inflight programming, Southwest is also organizing shark-themed pop-ups at airports in Atlanta, Dallas and New York, according to a Southwest spokesperson.

Want more airline-specific news? Sign up for TPG’s free biweekly Aviation newsletter.

The airline hosted one of these pop-ups at New York’s LaGuardia Airport (LGA) on Thursday. Marine biologist and Shark Week presenter Dr. Craig O’Connell shared fun facts about sharks and hosted trivia.

Dr. Craig O’ Connell poses with passengers at LGA on Thursday. SOUTHWEST

During the events, passengers received Shark Week fin hats during boarding. The program’s mascot, known as “Chompie,” made a surprise appearance in Dallas earlier this week.

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Related: The best Southwest Airlines credit card for family travelers

In previous years, Southwest featured shark-themed Boeing 737s and partnered with flight tracking site FlightAware to track these shark-themed jets.

There won’t be a special livery to commemorate the week this year. However, a spokesperson for Southwest said Discovery Channel’s inflight Shark Week programming has been some of the most popular television for the carrier’s customers.

Launched in 1988, Discovery Channel’s Shark Week programming is devoted to all things sharks. The release of the 1975 movie “Jaws” led to misconceptions about sharks. Discovery Channel launched Shark Week programming to educate viewers and quell fears they may have of sharks.

Over the years, programming morphed into a platform for scientists to advocate for one of the Earth’s oldest animals.

Shark Week runs on Discovery Channel from July 23 to July 29.

Related reading:

Editorial disclaimer: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airline or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.

Source: thepointsguy.com

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So you are in the market for a Roth IRA, that popular, flexible, tax-advantaged vehicle that can be used to save for retirement — smart choice — but here comes the next question: which investments are best for a Roth IRA?

Roth IRA Mutual Fund Options For Investment

There are three basic options for your Roth IRA investments:

  1. Index funds
  2. Exchange traded funds (or ETFs)
  3. Managed mutual funds

It’s essential whatever you choose it has as low an expense ratio as possible. Small fees can really add up. The expense ratio is what the fund charges you to run it, reflecting operating expenses such as compliance and other administrative costs. Even the cost of marketing the fund to you is passed down in some way through the expense ratio.

One very popular investment vehicle, The Vanguard Fund, has an average fund expense ratio of 0.18% and many investors see it as a low-cost leader. Regardless of what you choose, make sure you know the fund expense ratio and it’s as low as possible, for sure under 1%.

Here’s more about each:

Index Funds

A mutual fund that invests in indexes which are compiled and calculated independently, such as the Standard & Poor’s 500.

Two main attractions with index funds:

  1. Index funds typically offer the lowest cost to manage your investments. (Since you are not doing it yourself, there’s no escaping having to pay someone else. The goal, of course, is to keep that amount as low as possible.)
  2. Index funds generally outperform managed funds. You would think a paid professional who runs a mutual fund would do better than a market average, but history has consistently proven that to be a false expectation.

Related >> How to Start a Roth IRA

By far, the most popular index funds mimic the S&P 500 stock market index. There are other funds which purport to be index funds; however, they don’t track an actual index. (Bond funds, for example, are called index funds simply because they offer the low management costs commonly associated with index funds.)

Exchange Traded Funds (ETFs)

One of the benefits of investing for your retirement through a Roth IRA (or a traditional IRA, for that matter) is the fact that you are not restricted solely to mutual funds. Through an IRA, you can invest in individual stocks, which opens the door to ETFs, which are nothing more than mutual funds which trade on a stock exchange just like stocks.

Related >> Considering EFTs

Most ETFs are index funds, but they offer a wider array of specialized investments. For instance, if you want to invest in gold, there are several ETFs which allow you to do that. One such ETF (which uses the GLD symbol) owns the actual gold bars, and they hold more gold than all national governments except the big three.

ETFs offer low costs, but not always quite as low and the index funds referred to above. If cost is an important consideration for you — and it should be take the time to check out all the costs of anything you want to invest in before you take the plunge.

Managed Mutual Funds

Although somewhat maligned recently, managed mutual funds still account for more than 70 percent of all retirement investment funds. There are a few reasons for that:

  1. Convenience. Managed mutual funds are usually the most convenient way to invest as an employee.
  2. Low risk. They are the oldest of the three options listed here, and have proven themselves to be pretty safe in terms of risk.
  3. Variety. They offer by far the widest variety of specialized investment options. For instance, if you don’t want any investment dealing with GMO, tobacco, or other issues, you are more likely to find a managed mutual fund to meet your needs than an ETF or index fund.

Related >> A primer on mutual funds

The popularity and wide variety of managed mutual funds come with two penalties, though:

  1. High cost. Of the three options, managed funds usually are by far the most expensive. You may see rates which look low, e.g., 1.5 percent. Remember, though, that your long-term return is unlikely to be more than 7 or 8 percent. That means they will take 20 to 50 percent of your annual growth. That’s a steep price for many.
  2. Bewilderment. It is not easy to distinguish between the bewildering arrays of managed mutual funds. They all seem to offer things like value and growth, and you never know which buzzwords are simply marketing gimmicks to get you to pick their fund.

When you consider that index funds and ETFs are generally simpler and cheaper, it’s easy to understand why they have grown much more in recent years at the expense of managed funds.

Conclusion

Most people consider the best way to invest through a Roth IRA is by putting your money every month into index funds. They typify the get-rich-slowly ideology. Some of you will want to purchase individual stocks in your Roth IRA. Some will want to purchase real estate or invest in precious metals. If you make educated decisions, these can be excellent moves. However, for most investors, index funds are a smart way to own a piece of the market while mitigating risk.

Part 1: The extraordinary power of compound interest
Part 2: What is a Roth IRA and why should you care?
Part 3: How to open a Roth IRA (and where to do it)
Part 4: Which investments are best for a Roth IRA?
Part 5: Questions and answers about Roth IRAs

Learn More:

Safety – the Main Objective for Retirement Investments

The main objective of any investment for retirement is safety: You don’t want to invest in anything risky. You may enjoy investing in things like individual stocks or property, but we all know those can be risky investments. When it comes to your retirement funds, you want to stay away from things with inordinate risk.

Flexibility is a Good Thing (Unless It’s a Bad Thing)

The fact that you can use a Roth IRA to hold a variety of investments is good news – it offers flexibility. What’s good about it is that you can invest in pretty much any type of investment through your Roth IRA – stocks, bonds, exchange-traded funds (ETFs), mutual funds (including index funds), and even real estate.

The bad news is that you can invest in pretty much anything – including things which might not work for you. For instance, if you thought Twitter was going to be a good stock to invest in, you would be banging your head against a wall right now.

Consider This When Selecting an Investment

With a clear understanding of the purpose of an IRA – a tax-advantaged vehicle designed to help you save for retirement – we can begin to answer the question about which investments are best for a Roth IRA. Here’s what to consider:

Funding

By far, the majority of the population earns their living from a job, which typically gives them two paychecks every month. The Roth IRA is perfect for that since you can easily put away a certain amount every month, a little bit at a time. But investing in rental property is quite a bit more difficult (effectively precluding that type of investment for many) because it requires a big chunk of money at a time.

Automation

If you’re like most people, setting time aside to make investment decisions is a challenge because your life is a daily whirl of activity. The tactic most successful people use is automation: They have a set amount deducted from every paycheck which is then automatically deposited into their Roth IRA account. For automation to work, you want to pick an investment which lends itself to a set amount invested every two weeks or so.

Basic Investing Concepts

It’s a mistake to jump into investing and make your decisions blindly. Before you begin any investment program, it’s important to have an understanding of basic concepts. Here are a few posts on some important topics:

Source: getrichslowly.org

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It’s no secret that homes just aren’t as affordable as they used to be.

An unwelcome combination of significantly higher mortgage rates coupled with ever-higher asking prices has put a major dent in affordability.

In May, the monthly mortgage payment on a median-priced home ($401,100) was over $2,000, up from around $1,000 back in 2020, according to the National Association of Realtors.

And that assumes a 20% down payment, something that just isn’t a reality for many home buyers these days.

The good news is there are lots of creative financing options out there, whether it’s from a state housing agency or even a national lender.

What Is Homebuyer Assistance?

In short, homebuyer assistance is a special program or series of programs offered by a local municipality, state, or private lender that reduces borrowing costs and promotes homeownership.

This can come via down payment assistance, closing cost assistance, reduced interest rates and mortgage insurance premiums, or a combination of these and other programs.

Collectively, it makes homeownership more attainable, especially for first-time home buyers and/or those with low-to-moderate income.

As noted, there are countless homebuyer assistance programs available, many of which are offered at the state or municipality level.

For example, the California Housing Finance Agency, or CalHFA for short, offers a series of homebuyer assistance programs.

The same goes for every other state in the nation. Programs are also offered for certain cities or underserved areas throughout the nation.

At the city level, one example is LA’s Home Ownership Program (HOP) loan, which provides a second mortgage for first-time home buyers up to $85,000, or 20% of the purchase price (whichever is less).

Beyond that, there are also homebuyer assistance programs offered by individual mortgage lenders, banks, and credit unions.

Private companies often have affordable housing goals and initiatives, which are sometimes geared at specific areas or priorities like increasing minority homeownership.

These offerings include both government options (FHA loans, USDA loans, VA loans) and conventional options (Fannie Mae and Freddie Mac).

Homebuyer Assistance Program Examples

The CalHFA has been around since 1975, with a stated goal of helping low- and moderate-income renters and home buyers via down payment and closing cost assistance.

It’s important to note that they aren’t a lender, but rather offer their products through private loan officers who have been trained and approved to originate them.

It may also be possible to work with an independent mortgage broker who is approved to work with a CalHFA-approved wholesale lender.

Anyway, to give you an idea of what they offer, let’s look at their CalHFA Conventional loan, which is a Fannie Mae HFA Preferred first mortgage.

This means the loan isn’t subject to costly loan-level price adjustments (LLPAs), and reduced mortgage insurance coverage is offered to those with limited incomes.

But wait, there’s more. This loan may be combined with the MyHome Assistance Program, which is a deferred-payment junior loan (second mortgage) that can be used to cover down payment and/or closing costs.

As you can see in the table above, which is just a sample, the monthly payment is deferred ($0) until the loan is refinanced, paid off, or the home sold.

But interest does accrue on the balance over time if you don’t pay it off.

There’s also the CalPLUS Conventional Loan Program, which combines a conventional 30-year fixed first mortgage with the CalHFA Zero Interest Program (ZIP) for closing costs.

That ZIP loan is both deferred and interest-free, meaning no payments or interest, as seen in the table.

Your closing costs can effectively be set aside until you refinance or pay off your loan, or sell your home.

You can actually combine all three programs if needed to get a more affordable first mortgage, a second mortgage for the down payment, and a third mortgage for the closing costs.

Aside from these standard offerings, the agency also launched the “Dream For All Shared Appreciation Loan” earlier this year.

As the name suggests, borrowers share future appreciation in lieu of a down payment.

Regarding the LA City homeownership program known as HOP, you get a 0% interest loan with a deferred payment.

And repayment is required if the home is sold, if there’s a title transfer, or the home is no longer owner-occupied.

You must be a first-time home buyer, income limits apply, and the property must be in an eligible area.

Tip: If you work with a housing agency, inquire about a mortgage credit certificate before you apply to potentially save money on taxes.

Homebuyer Assistance Via Private Banks and Mortgage Lenders

To give you an idea of a private offering, there is the recently launched U.S. Bank Access Home Loan.

It comes with up to $12,500 in down payment assistance and a lender credit up to $5,000.

Then there’s the Guild Mortgage 1% Down Payment Advantage, which combines a 2% non-repayable grant offered by the company and a 1% temporary buydown in year one.

Speaking of grants, some may be fully forgivable, while others might be required to be paid back when you refinance or sell.

Be sure to pay attention to details like that when researching potential down payment assistance or homebuyer assistance programs.

One such example is Movement Boost from Movement Mortgage, which is a zero down FHA loan that features a repayable second mortgage.

Despite having to be paid back, it eliminates the roadblock of needing cash at closing, and instead spreads it out slowly over a 10-year loan term.

Then there’s Rocket Mortgage ONE+, which offers a 2% grant from the Detroit-based lender and private mortgage insurance at no cost.

I could go on and on, but you should get the idea. There are lots of grants, credits, special purpose credit programs (SPCP), and other specials out there.

But it’s up to you to do some digging to find them. So when you’re shopping around for the lowest rate, also inquire about homebuyer assistance if you want/need it.

Who Qualifies for Homebuyer Assistance?

  • Typically need to be a first-time home buyer (but not always)
  • Area income limits often apply to those receiving assistance
  • May also need to purchase a property in a specific location/city
  • Property must be owner-occupied and usually only 1-unit is permitted
  • Still must qualify for a mortgage (e.g. min. FICO score and max DTI ratio)

While it might sound pretty good to buy a home with little or nothing down (and sans closing costs), not everyone will qualify.

Many of these programs are geared toward first-time home buyers, generally defined as someone who hasn’t had ownership interest in the past three years.

This means those who have never owned a home, or an individual who sold their former home three or more years ago and hasn’t owned since.

Depending on the program, you may be required to complete homebuyer education and counseling. While it might seem like a pain, you may actually learn something valuable along the way.

Beyond that, income limits often apply as well, typically based on the state agency’s limits or area median income (AMI) limits.

You can look up income limits via Fannie Mae’s website to see where they stand in your desired purchasing area.

Speaking of income, non-occupant co-borrowers or co-signers are typically not permitted.

There are also loan limits to worry about, which are usually based on the conforming loan limit, but sometimes even lower.

And in most cases, the property is going to need to be your primary residence, aka the one you occupy full time.

Homebuyer assistance programs are geared toward those in need, not investors or second home buyers.

To that end, 2-4 unit properties are generally not permitted, though condos/townhomes, and manufactured housing are.

Lastly, you will still be subject to a minimum credit score requirement and a maximum debt-to-income (DTI) ratio.

So you’ll still need to qualify for a mortgage like you would any other type of loan, though there may be more flexibility via state housing agencies.

In closing, if you’re not sure homeownership is in reach, take a moment to research the many homebuyer assistance programs out there. You might be surprised at what you come across.

Source: thetruthaboutmortgage.com

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Introducing Inside Voices with Kristin Messerli, a new interview video series hosting by Messerli, who’s research on NextGen homebuyers helps to inform tomorrow’s generation. She is also author of NextGen Homebuyer Research and a speaker and educator.

Today, she interviews Yanely Espinal, the Education Outreach Director for NextGen Personal Finance. She shares what every leader needs to know about reaching Gen Z, and the moment that made her decide to devote her career to personal financial education. 

As a child from an immigrant family, financial literacy was not something that was discussed at home, and Yanely struggled with personal finance as she entered adulthood. Conversations about personal finance can be something that starts at an early age, she says, to alleviate societal pressure and achieve confidence. 

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Yanely: I was really struggling myself with my personal finances because I’m first-generation American. I’m a daughter of immigrants. My parents are from the Dominican Republic. And so we grew up in a very traditional household. They pretty much were cash only for everything. And my parents never really had bank accounts, or debit cards, or credit cards, or anything like that.

And so we never talked about money. And when it was time for me to go off to college, I remember my parents being like, “Okay, sweetie, you better go and get some scholarships because we don’t have any money to give you to pay for college tuition.” And being that we’re low income, I did qualify for a lot of grants and I did qualify for PELL and a lot of different programs that did cover a lot of it, but there was still so much that I didn’t know about the cost of college and how to fill out your FAFSA and how to get additional scholarship dollars. And long story short, I got really lucky and I got a full scholarship to Brown University because they had a special program for low-income students, and there was just a pot of money that was meant for some of the neediest families to be able to graduate without student loan debt.

So I was in that program. Shout out to the Sidney Frank scholarship program at Brown. It was a great experience. And what that meant is that I dodged the whole student loan experience because I never really had to take on student loans, and I never had to compare interest rates or understand what it means to take on loans like that. So when I got to college, I wanted to have a laptop and I wanted to have name brand clothes and shoes, and I wanted to get Starbucks and go to the movies with my friends. And so I got my first credit card when I was in college, and that was my first entry point into the world of personal finance. I didn’t know what it even meant to use a credit card. I had no idea. And yet, I was swiping my little credit card up and down campus, buying everything, and it got out of control really quickly.

I went from $1,500 to $20,000 by the time I graduated, and I didn’t have anybody to explain to me how the compounding interest works, and how it was really growing and getting out of control. So I held onto that secret. And when I graduated and once I became a teacher, I realized this doesn’t make sense. My paycheck is not enough to pay all my bills, help out my family, get transportation to my job, pay for lunch, and also pay off these credit cards. So that was when I picked up a book about money and my real kind of education was a self-education, learning about money myself through reading books. And then later I decided, “You know what? I love teaching, but I think I want to teach specifically about financial literacy because it’s something that I never got myself when I was in school.”

Source: housingwire.com

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Lately, I’ve been making rumblings about getting in shape again. I want to get fit slowly. The trick is figuring out how to do it. It took a lot of reading and a lot of trial and error to take control of my finances, but I’ve finally achieved a healthy attitude toward money. Now I hope to do the same with physical fitness. But where to start?

One approach would be to just throw money at the problem. I’ve been looking at fitness clubs, for example; they offer great exercise equipment and motivational classes all in one facility. But they cost more than a frugal fellow like me wants to pay. (Yes, I’ve looked into the YMCA and local community centers — there’s nothing nearby.)

I’ve also been fighting the urge to purchase a new bicycle. The Redline 925 makes me drool, but do I really want to spend $800 on bike? What’s wrong with the bike I already own?

I was heading for a major expenditure if I didn’t formulate a plan, so I sat down and made a list of the free or low-cost fitness alternatives at my disposal. I was surprised to discover how much exercise equipment I already own:

  • We purchased a NordicTrack ski machine over ten years ago. It has received very little use during its lifetime.
  • I have a bare-bones weight set that I’m storing for a friend.
  • Last fall, some neighbors down the street were giving away exercise equipment they no longer used. They gave me a stationary cycle and a “health-rider”, both of which I dragged up the hill to our house. They’ve sat unused in storage ever since.
  • While working with my wellness coach last spring, I was fitted for (and purchased) a good pair of running shoes.
  • I own two bicycles. The first is a 1997 Bianchi Volpe touring bike that I purchased ten years ago. I rode it for a couple thousand miles during 1998-1999, but since then it’s been neglected. I’ve also fixed up an old mountain bike that my cousin gave me to use as a “commuter” of sorts. I use it to run errands.
  • We have a variety of sports equipment: several soccer balls, baseball gloves, golf clubs, racquetball stuff, a frisbee, and a jump-rope.
  • We own Dance Dance Revolution for the Wii.
  • I have a good pair of hiking boots and miles of great trails all around.

When I look at the list of fitness equipment I already have, it seems ludicrous to pay money to join a gym. I already have a gym. Sure, I don’t have a treadmill or an elliptical machine or a fancy weight set, but I have plenty to get me started. I’ve already paid for this equipment — I might as well get some use from it!

It also seems crazy to purchase a new bike. I have two bikes! What would I do with a third that I cannot do already? Instead, I pulled my touring bike out of storage. It was in sad shape, so I paid the local bike shop a couple hundred dollars to give it an overhaul. Spending this money hurt, but if it’s enough to get me back on the road to physical fitness, it’s well worth the cost. Good health pays dividends in the long run.

And you know what? It’s fantastic to be back on the road. Over the past week, I’ve put in about 40 miles. That’s not a lot, but it’s a start. It’s like saving your first $40 in an emergency fund. You save a little at a time, and eventually you have $2,000 set aside. By the end of the summer, I hope to have biked 2,000 miles. (Or more!)


I look like the biggest dork in the world. But I’m on my bike!

For more on this subject:

Oh yeah — I’ve signed up at We Endure, a social training log that lets you track your progress in a variety of endurance sports (such as cycling, running, and swimming). Here’s my profile. I’ve also created a Get Fit Slowly group that you’re welcome to join (even if you don’t read Get Fit Slowly). The more the merrier!

Source: getrichslowly.org