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Apache is functioning normally

May 23, 2023 by Brett Tams

The more time we spend indoors, the more we feel a need (read: itch) to update our spaces.

And while we might not have a budget to set aside for costly renovations right now, that doesn’t mean we can’t use some handy tricks at our disposal to freshen up our interiors — maybe even add a touch of elegance and luxury without the costs that normally come with that.

Sure, in an ideal setting, you would probably have a renowned designer at your fingertips to make your rooms exude comfort, luxury, and elegance.

But until that lucky day comes, let’s look at some alternatives that are more within reach. With some clever techniques of strategic design, you can create a space on a shoestring budget that still feels regal.

So what are some of the easiest ways to incorporate a touch of lavish life into your home? Read on below and adapt these suggestions to add a touch of luxury to your interiors:

#1 Work with what you already have

Many times when decorating our homes, we’re so focused on what they lack that we completely forget to pay attention to the lovely little details that are already there.

If you plan on adding to the luxury feel of your home, start by making an inventory of what is it that already makes your house special.

Details like crown molding, planks of wood, wooden floors, bookshelves, and backsplashes made of decorative tiles are all deserving of attention. Keep them as prevalent as possible — keep them alive, free of clutter, and make sure they are the room’s focal point.

Sometimes, simply updating an exquisite — but slightly ignored — staircase with some polish and a new paint can breathe new life into a room. Same goes for neglected fireplaces or striking wooden bookshelves.

As you go on with your changes to achieve that lux-feel, remember that you don’t have to overspend on pricey additions. Instead, you can make do with what you have. Most times, we get so accustomed with our homes (or lust for bigger, more expensive ones), that we completely forget why we fell in love with them in the first place.

#2 Adopt variation

I know what you’re going to say; there’s a certain beauty that comes from simplicity, and uniformity gives a sense of tidiness to a room.

But when it comes to luxury, bold is beautiful, and it’s difficult to make a space stand out if you don’t have the courage to adopt variation.

A couch, throw pillows, side table, rugs, and curtains that have the same pattern and style will almost definitely make your space lose steam.

Swap out plain throw pillows to conveniently add dimension to a range of shapes and sizes, and bring in some luxurious velvet curtains to really light up a space.

Even if you’re opposed to color, throwing in a few shades that are a different version of the natural glow can make the environment more vibrant.

As for your bedroom, when you can’t stick to a lighter color choice, seek soft mustard, rusty violet, or gentle lilac.

These hues are pleasing to the eye and add a soothing ambiance on top of all the luxury. As a tip, head on to BedAdvisor.com for some bedroom styling tips and bedroom essentials that you can incorporate.

#3 Try layered lighting

Very few things bring a room together quite like proper lighting. We don’t often give it the credit it deserves, but proper lighting (and bold choices when it comes to light fixtures) sets the mood and tone of your space — and preps everything else to be properly admired.

Ideally, you’ll want a selection of light sources to add diversity and dimension to the space. Layered lighting is said to be the most effective — not to mention appealing — way to light up a room.

It consists of overall lighting (your main source of light), task lighting (the one you use for specific tasks, like reading or applying make-up), and accent lighting (meant to add to the appeal of your decor).

A well-placed table lamp can be a great focal point for the room, or you could also hang a lovely pendant light with a striking design — or opulent feel.

Note that, with so many options for light fixtures nowadays, you don’t have to pick an expensive one; sometimes, simply replacing a dull, outdated one with a more modern version can do wonders.

Another inexpensive trick that should take little work is plug-in light fixtures. Placing such accessories next to furniture may be an inexpensive way to upgrade a room without needing to carry the burden of electrical rewiring.

Using lamps is also another less expensive renovation since it helps you change the light setting so that the room feels nice, cozy, and luxurious. And don’t forget about some luxury candles to pepper around the house.

#4 Always have fresh flowers

Now onto one of the easiest — and most enjoyable — tricks on the list; stacking up on fresh flowers every week, and using them to complement your decor for a more vibrant and inviting feel.

There’s a reason high society dames always had fresh flowers in the house. Elegant, colorful, and delicate, flowers are one of nature’s most precious and exquisite gifts; when you add them to your home (especially coupled with eye-grabbing vases), they give a note of sophistication, while making the space come alive. Doesn’t hurt that they also make your home smell amazing.

And the best part: that’s one of your design elements that can be forever changing, and you can adapt every week to your mood. You can also opt for seasonal flowers, giving your home a theme for the month you’re in.

#5 Hanging art on walls

One more affordable and straightforward concept for interior design for your living room is to hang exciting pieces of art on the walls.

Framed pieces, from family portraits to DIY art, will make a room look extravagant. And if you go the extra step and add a little lighting around your art, it will create an inescapable focal point.

However, before installing artwork, you must plan out where and how to put it, and how to fit everything correctly. See that the masterpiece you pick is the perfect height and scale for the wall you’re furnishing. Also, note that you don’t need works of art for every empty wall.

If you feel creative, creating your own is an excellent option to get cheap artwork. Visit your neighborhood craft store, and you might find everything you need to make a stunning canvas or personalized artwork.

#6 Deceive the eye with clever curtains

Most spacious and costly houses have high ceilings that are conveniently overflowing with ambient light. Trick your eyes to achieve the result by hanging curtains that are as high as the ceiling — not just over the window frame.

This will give the illusion of more space, and also opens up a lot of possibilities for picking interesting fabrics and patterns.

Apache is functioning normally

May 23, 2023 by Brett Tams

Save more, spend smarter, and make your money go further

Stock markets and major commodities such as oil and gold seem to get most of the mainstream financial market headlines these days. Despite being the largest and most liquid trading markets in the world, the global currency markets do not nearly get the same attention.

There are a few key reasons for this – the lack of a true central currency exchange, the relatively small daily price changes and the seemingly opaque reasons for changes in currencies.

However, the value of our nation’s currency can have a strong affect on the stock market and the commodities markets as well as have a real affect on our lives. Our currency’s value is a basic fundamental component of our wealth and our ability to purchase goods – especially in this age of globalization. If we pay attention to the currency market trends, we can benefit by using this information to plan ahead for a vacation, search out deals on foreign products or take this knowledge into account when making our investment decisions.

For businesses, the value of a local currency can be even more important. A strong currency will make our exports more expensive to foreign buyers while possibly making imports downright cheap for us to buy.

As a currency trader, I can tell you that there are many economic factors to take into consideration when it comes to evaluating a currency’s strength. Some economic factors can have more influence at different times and for different countries.

Below, I touch upon four factors that I believe to be among the most important economic indicators anyone can follow by reading the news.

1. Interest Rates

The first factor contributing to the general strength or weakness of a currency is a country’s interest rate. Simply, interest rates are the amount it costs to borrow money. The interest rate level is moved higher or lower by a country’s central bank to either stimulate or slow down an economy. Higher interest rates impose a more costly fee to borrow money while lower interest rates lessen the fee and usually spur more borrowing (or access to cheap credit) in an economy.

When it comes to demand for a particular currency, however, the higher the interest rate usually means the higher the demand for that currency. Lower interest rates usually decrease the demand for a currency. The reason investors look to buy currencies with higher interest rates is it creates an additional rate of return on their currency exchange. A trader is compensated by the interest rate differential when the trader buys the currency with the higher interest rate compared to the lower interest rate currency. There is a popular currency trading strategy called the “carry trade” that seeks to exploit the differences in country’s interest rates (see more on the carry trade here).

The mechanics behind this can take some time and effort to fully comprehend, but the general take away is: Higher interest rates make a currency more attractive.

2. Inflation

Inflation is next in our economic factors list and is defined by the rise in prices of goods and services. When a product rises in price, it signals that there is an underlying demand for that product. Higher prices may not seem good to a consumer, but it is generally considered healthy for a country to have a moderate increase in inflation in a growing economy. Many central banks have a target inflation rate for their economy of around 2 percent a year.

When an economy sees too much inflation, the central bank will try to cool off rising prices and access to cheap credit with an increase in interest rates. This brings us back to number one in our list, where we see that higher interest rates make a currency more attractive. So in a growing economic environment, rising inflation rates will tend to increase expectations that interest rates will rise, which will in turn make traders have a positive outlook for the rise of the currency.

There are also downsides to inflation when not accompanied by a growing economy called stagflation (high unemployment, low growth, high inflation) and the dreaded deflation, which is when prices are in decline. This is usually a drag on an economy as prices of goods are falling, leading to declining wages in worker paychecks and less money workers will have to buy goods.

3. Economic Growth

The strength of an economy can go a long way to boosting the strength of the nation’s currency. A strong growth rate in a country will see a growing demand for products and services with better job prospects for workers as well as being an attractive destination for capital and investments.

The easiest way to watch a country’s economic standing is to pay attention to the gross domestic product (GDP). A strong GDP reading is growth of 3 percent or more in many cases, while growth close to zero percent or a negative reading shows that the economy could be headed for a recession. A typical definition of a recession is two consecutive quarters of negative GDP growth.

In an economy like the United States, which is driven by consumer spending, expanding growth that produces more jobs and better wages will allow workers to feel wealthier and help to further stimulate the economy through domestic consumption. More growth can bring higher inflation rates and the expectations for interest rate increases. Foreign investment and demand from companies abroad can also play an important factor in boosting the local currency of a strong economy.

4. Current Account Balance

The last on our list is the current account balance. It is considered to be the most extensive gauge of cross-border transactions of a country. Simply put, it is the total amount of goods, services, income and current transfers of a country against all of its trading partners. A positive current account balance signals that a country lends more to its trading partners than it borrows, and a deficit current account balance shows that the country borrows more from its trading partners than it lends.

This total amount of trade can influence the country’s exchange rate positively if there is more demand for that country’s goods (and currency) from other countries. A deficit or borrower country will see less demand for its own local goods and currency overall.

Conclusion

Economics and currency forecasting are both very much inexact sciences. Price movements can seem volatile and hard to understand, but for those seeking basic insight into currency trends, these important economic factors can go a long way.

Zachary Storella is the CEO of currency news website CountingPips.com.

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Apache is functioning normally

May 23, 2023 by Brett Tams

We all like to think of ourselves as good people, right? Or at least, we try to be. But this looks different for everybody. Some protest and march, some volunteer, some change their shopping habits, and some spread the word. Others take a little more time to choose where their investment dollars go.

If doing your part to make the world a better place might look like investing in companies making a positive impact, here’s what you should know about socially responsible investing.

What’s Ahead:

What is socially responsible investing (SRI)?: Definition

Socially responsible investing or SRI is an investment strategy that involves choosing investments according to your personal beliefs and values as well as financial factors.

This strategy is also called ethical investing, sustainable investing, or values-based investing.

Socially responsible investing is about putting your personal values before or alongside financial gain. You’re thinking about causes you care about and your goal is to drive positive change by supporting the “good” companies and not supporting the “bad” ones. Yes, you want to make money. But you also want to make a difference.

The term “socially responsible investing” is commonly used as an umbrella term for many different strategies. You might see ESG investing — or environmental, social, and governance investing — and impact investing simply called socially responsible investing. All of these refer to the practice of investing with your beliefs.

What are socially responsible investments?

There are so many different types of ethical investments. And since it’s personal, there are really no “wrong answers.”

Here are just a few examples of causes and issues you can support with socially responsible investments.

Environmental sustainability
Human rights
Community growth
Animal welfare
Fair wages and workplace equality
Gender empowerment
Affordable housing
Healthcare access
International aid

Socially responsible investments can be almost anything. If there’s a social issue you care about, chances are you can find companies to invest in that also care about that issue and others.

Types of socially responsible investments

Socially responsible assets come in many different shapes and sizes. But here are two main types:

Individual investments: Stocks or even fractional shares of socially responsible companies.
SRI funds: Socially responsible mutual funds and exchange-traded funds (or ETFs) made up of companies from a variety of different industries.

Choose individual investments if you want to handpick your assets and research each company. This option is better for investors who want to actively trade and maximize their profits by looking for growth opportunities.

Choose a fund if you want to invest in many different companies at once. This is an ideal option for investors with less capital and a good long-term strategy overall. But while SRI funds can be easier for diversifying and much more passive, you’re not in control. It’s up to fund managers to decide what socially responsible means, and you might not always agree with their picks.

Socially responsible investing vs. ESG investing

Socially responsible investing (SRI) and ESG investing are two different strategies. But they’re often confused, so we’ll set the record straight.

While ESG uses scores and metrics to grade investments objectively, SRI is personal and ethically driven. It requires investors to consider their values when choosing investments, which is possible with ESG investing but not necessarily the point.

ESG is a system for measuring a company’s sustainability and impact using environmental, social, and corporate governance factors. ESG investing considers how these factors affect a company’s performance and overall responsibility. It uses both financial and non-financial considerations to choose investments with the goal of reducing risk and increasing returns.

Socially responsible investing is about values. You choose investments that align with causes you support and you specifically don’t invest in ones that have a negative impact.

Read more: ESG vs. sin stock investing: Which option will give you the best returns?

How they’re used together

As you might imagine, there is often an overlap between ESG investing and SRI. For example, many SRI investors take ESG factors into account when comparing investments. Here’s how it works.

With ESG investing, all investments are scored and the highest scores are considered to be the best opportunities. With SRI, investments are weighed against criteria and may be disqualified if they conflict with values. Even investments that could be profitable might not be included as an option if they aren’t seen as socially responsible.

It is very common for investors to use SRI strategies to narrow down their options and then ESG metrics to choose the most promising investments. And it works the other way too.

How SRI screening works

A lot of us don’t realize that the companies we support and invest in are not only not acting in socially responsible ways, but sometimes having a significant negative impact on society.

This is what SRI screening aims to address. It’s about boosting the companies doing the right things and not letting companies doing the wrong things get away with it.

SRI usually uses a combination of negative screening and positive screening to narrow down investment opportunities. With negative screening, you weed out companies with business practices that are actively harmful. Then, with positive screening, you put a spotlight on companies doing good. From there, you have a pool of SRI investments to select from.

This isn’t the only way to do it, but it is one of the most common. You can also use a positive investing strategy to skip right to the companies with a positive impact, but this can take longer.

How to build an SRI portfolio

The process of finding responsible investments varies from investor to investor since it’s all about personal values.

For example, one investor might automatically rule out any companies known to take part in animal testing while another might rule out companies with massive carbon footprints. This would probably leave them with some of the same choices and at least a handful of different ones (since a company can do some things “right” and other things “wrong”).

Most investors start by excluding investments because this makes the process of identifying opportunities less overwhelming. But this can still be time-consuming as it requires a lot of research into a business’s practices, policies, ethics, and more.

Here are some options for building an SRI investment portfolio more easily:

These options can at least give you a good place to start. Then, you can select for the investments you want after doing your own research to determine which ones best align with your values.

Read more: An easier way to get into socially responsible investing

How to get started with socially responsible investing

There isn’t just one way to get started with SRI. There are many ways to incorporate this investment strategy into your life and an infinite number of causes to invest in.

Here are some steps you would take to get going with socially responsible investing.

Choose your causes

The first step is to decide what you care about. Not all socially responsible investors invest in the same causes, and thinking about this ahead of time can help make every other decision easier.

Remember, a socially responsible investment is anything you want it to be. You just invest in what you’re passionate about. If that’s gender equality, focus on companies without gender pay gaps. If it’s being green, invest in carbon-neutral or carbon-negative companies. Etc., etc., etc.

You’re trying to make a positive social impact by supporting the right companies and not supporting the wrong ones. So you should also think about the things you stand against.

You can choose as many causes to invest in as you like and change your mind about your priorities as you go. Thinking about what you stand for before sitting down to choose your investments can also remind you why you’re doing this.

Plan your portfolio

Consider how socially responsible investments will fit into your portfolio and routine.

There is no golden percentage or perfect rule for everyone. It all depends on your risk tolerance and other strategies. You could replace a stock or two with sustainable alternatives or create a completely separate SRI portfolio, but refrain from changing your entire investment portfolio at once.

If you have questions about your asset allocation, talk to a financial advisor.

Decide how involved you want to be

Will you choose every investment yourself, or would you rather invest in a fund or with a robo-advisor? Both of these options are perfectly fine, but one is a lot simpler for you.

Only create an SRI portfolio yourself if you have some experience with investing and you’re confident in your ability to compare assets. There are unique risks with SRI, and your investment decisions will take time.

If you’re newer to investing or you want a more hands-off approach to SRI, consider a robo-advisor. These screen for you and help you find the right assets and allocation.

There are advantages and disadvantages to each of these options. Choosing individual investments lets you build your perfect SRI portfolio but requires more effort. Going instead with a robo-advisor offers the advantage of convenience and easy diversification but might mean you get an asset or two you’re not jazzed about. Consider these trade-offs.

Choose a platform

After you decide how involved you want to be, you can choose a platform. A stock brokerage or trading platform is best for those who want to handpick their investments. For something more passive, a robo-advisor is a good choice.

Best robo-advisors for SRI

Wealthfront and M1 are two great platforms that simplify SRI. Wealthfront is a robo-advisor offering pre-built SRI portfolios you can tweak and customize, and M1 is a hybrid robo-advisor and brokerage with SRI “pies” created by the platform and even pies shared by the community.

Read more: M1 vs. Wealthfront: Which robo-advisor is right for your investing style?

Best stock brokerages for SRI

Public is one of our top recommendations for SRI-friendly platforms. This social investing app makes it easier than most to research company profiles, and the social aspect also lets you see what other investors are saying about any given investment. And because it allows fractional investing, it’s good for diversifying with less money.

Another great option is TD Ameritrade. This brokerage has long been one of the best for affordable trading, with no fees for stock and ETF trades and no minimum investment requirement. It offers a wide selection of funds including many no-transaction-fee mutual funds, making it a solid choice for active investors who need options.

Do your research

This is less of a one-and-done step and more of an ongoing task. A socially responsible investing strategy requires a little more due diligence than a traditional strategy that’s all about numbers and performance. You have to know what a company is actually up to.

Sometimes socially responsible companies are easy to spot and other times not so much. You’ll need to find out more about business practices by digging into reports, mission statements, news articles, forums, and more.

Many investing platforms offer free resources, including market research and company profiles, so you can do all your digging in one place. Always take advantage of these.

Pros and cons of socially responsible investing

SRI comes with many potential benefits, but it also comes with risks. Here are some of the possible advantages and disadvantages of choosing this particular strategy.

👍 Pros

With socially responsible investing, you get to feel good about where your money is going and invest in the futures of companies and brands worth supporting. You can claim a small role in any progress that happens as a result of these businesses prospering and fulfill some of your sense of social responsibility.

If more people were to financially support businesses working to make the world a better place, these businesses would grow in prominence and likely have a ripple effect on the market as a whole.

SRI can also offer financial benefits. There is evidence to suggest that SRI is a safer alternative to traditional investing because socially responsible companies are more competitive since they’re open about their practices and responsible. Usually, consumers recognize when businesses care about more than just profits and choose these over others.

👎 Cons

With SRI, you have to be comfortable with a certain level of risk and involvement.

Although SRI is personal, performance depends on other people too. If you invest in a cause not a lot of investors care about, support a business that some find controversial, or your chosen niches ebb and flow in popularity, your portfolio could be negatively impacted.

Financial returns also vary considerably based on which causes you support. For example, if you invest in eco-friendly companies, you might earn a profit fairly quickly as sustainability is becoming more important to consumers as a whole. But if you invest in a company doing something more outside the box, the public could take a while to catch up.

Another potential disadvantage of SRI is effort. If you choose investments for yourself, you’ll be spending a lot of time researching. And even if you pick mutual funds and robo-advisors to save time, it can still be pretty hands-on.

Is socially responsible investing right for you?

You might be a good candidate for socially responsible investing if you like the idea of investing in positive change. This strategy offers a lot of benefits and may even give you better financial returns than what you’re doing now if you’re smart and you take your time. It can also make you feel like you’re making a difference.

But going against the flow can also be bad news. It can mean that your portfolio takes a hit if people disagree with you, that growth is slow or nonexistent, or that companies that are making a positive impact but not much profit don’t succeed (and that the “bad ones” win). SRI can also be more work for you as an investor.

If you do decide that SRI is right for you, it’s important to find the right asset allocation and the right approach. Consult a professional such as a financial advisor to talk through this if you want help.

Alternatives to SRI

If you’re on the fence about sustainable investing but you still want to do good with your dollars, there are many alternatives to SRI that accomplish the same end goal in different ways.

Investing by purchasing shares and stock isn’t the only way to financially support businesses you believe in and support causes you care about. You can also:

Shop intentionally: Conscious consumerism is the practice of being mindful of the impact your spending has and buying from companies that are making a positive difference. Being loyal to brands doing good things can help them thrive, and even just one passionate consumer can go a long way in promoting these businesses.
Pick ethical banks: Choose ethical banks for your money and other financial needs. Financial institutions have a huge impact on the market and economy, influencing policy and change. Where you bank matters.
Make community investments: Community investing, also called impact investing, involves supporting groups directly helping people. For example, investing in a bank providing lending to borrowers who couldn’t get it otherwise or a loan fund for affordable housing. This is like charitable donating but can lead to profit.

Read more: 12 easy ways to make your money green and protect our planet

Summary

Socially responsible investing (SRI) is an increasingly popular strategy with investors who want their investment dollars to have a positive societal impact. If that sounds like something you could be into, consider adding socially responsible investments to your portfolio. SRI is more accessible than ever, with a variety of platforms creating resources and options for passionate investors to try it out.

Just make sure you understand the inherent risks of SRI, the best ways to choose investments, and how to tell if a company or fund is really socially responsible or not.

Public Disclosures: This does not constitute investment advice. Investing involves the risk of loss, including the potential loss of principal. Brokerage services for US-listed, registered securities available on Public are offered by Open to the Public Investing, Inc. (OTTP), a member of FINRA & SIPC, and a wholly-owned subsidiary of Public Holdings, Inc. Brokerage services for alternative investments are offered by the Dalmore Group, LLC, a member of FINRA & SIPC. Alternative investments are over-the-counter equity securities that have been issued pursuant to Regulation A of the Securities Act of 1933. Cryptocurrency trading is provided by Apex Crypto LLC (NMLS ID 1828849). Apex Crypto is licensed to engage in the virtual currency business by the New York State Department of Financial Services. New customers of OTTP receive free stock valued between $3 – $1,000 (0.3% receive the maximum value).

Apache is functioning normally

May 23, 2023 by Brett Tams

Save more, spend smarter, and make your money go further

The temptation to overspend is seemingly everywhere you go. Whether you’re at the grocery store, checking your email, or scrolling on Instagram, ads are everywhere you look. These days, targeted ads are getting better at stealing your attention and your budget. While shopping never goes out of style, you may be wondering how to stop spending money on unnecessary items. Luckily, we have a few tricks up our sleeve.

From becoming your own chef to creating and sticking to a budget, there are a few ways to avoid temptations to overspend. Not only does overspending impact your finances, it could hinder your chances of meeting your financial goals. Curb your temptation to spend money with our 13 budget savers below.

1. Know Your Weaknesses

While you’re gearing up to end overspending, first find out where you spend the most money. Look through your recent statements and highlight any unnecessary expenses. Where are you spending the most on items or services that benefit your finances, or steal from them? Once you’ve recognized your unnecessary expenses, limit your spending.

Bonus step: Create your ideal budget and set specific financial goals using the Mint app. Enable alerts to notify you anytime you’re nearing your budget’s limit.

2. Create a Budget and Stick to It

Now that you’ve identified where you overspend, it’s time to create a budget to keep your temptations at bay. As a general rule of thumb, you should follow the 50/30/20 rule — 50 percent of your income going to necessities, 30 percent towards extras, and 20 percent towards your savings.

After figuring out how much money comes in versus out, set your monthly budget goals. As each month may have different expenses, plan for the adjustments. Sit down at the end of each month to readjust your budget for the next month ahead.

Bonus step: Schedule budget check-ins once a month to hold yourself accountable.

3. Give Every Dollar a Purpose

When creating your budget, try budgeting to zero. When you have extra money laying around in your account, you may feel tempted to spend it on things you don’t need. Once you’ve accounted for your necessary expenses like rent, electricity, and WiFi, divide up your leftovers to put towards your savings, extra debt payments, and investments until you reach zero.

Bonus step: Set up automatic savings contributions to make sure your income is directly deposited where you want it to go.

4. Only Shop With a List

Write out a shopping list before you enter the store to ensure you get everything you need without any extras. While you’re shopping, only stick to what’s on your list. If it’s not on the list and you haven’t budgeted for it, put it down and just keep walking.

Bonus step: To avoid impulse purchases, unsubscribe from all your email newsletters and delete shopping apps from your phone.

5. Check Your Budget Before You Spend

If you do find yourself eyeing an item that you haven’t budgeted for (it happens!), check in on your bank account before making the purchase. If it fits your budget, ask yourself the hard questions. Do you really need this item? If so, how would it benefit you and your lifestyle? Could it save you time or money? If yes, follow through with the purchase while respecting your budget.

Bonus step: Wait three days before purchasing an unneeded item. After 72 hours, if you’re still interested and it fits your budget, go back and get it.

6. Invest In Multi-Use Products

While your monthly goal may be to save as much as you can, be open to higher-priced items that could help you reach that goal. For example, buying reusable paper towels means you’ll spend less on disposable ones over time. Another way to save on small expenses is to become your own barista, which can save you between $1,934 to $2,327 a year.

Bonus step: Consider adopting some minimalist lifestyle ideas to help spend less and declutter.

7. Ditch Food Delivery and Cook at Home

The average American spends $3,459 on eating out every year. Instead of ordering food for lunch every day, meal prep at home. You can work this into your weekly routine by designating a day for meal planning and a day for grocery shopping and cooking. Planning your meals saves you from overspending while still making your favorite gourmet meals. You can save eating out for special occasions.

Bonus step: Delete all your food delivery apps from your phone to avoid the urge to order a speedy, but expensive, meal.

8. Pack Leftovers the Night Before

When your calendar’s booked, you’re most likely looking for the easiest way to get food for lunch. Nix your takeout food budget and pack your leftovers from the night before. While some nights you may be booked with events or virtual get-togethers, meal prep once or twice a week to ensure you have food for lunch every day. Simple dishes like chicken and veggies are easy meals to make on a budget.

Bonus step: Organize a “lunch swap” with your coworker so you don’t get bored of eating the same meal.

9. Squash Sale Shopping

If items on your shopping list aren’t on sale, don’t go looking for unnecessary items on the sale racks. You may walk out of the store buying something you don’t need because “it was only five bucks!” Kick discount shopping to the curb unless the items you need are part of the sale.

Bonus step: Save time and money by avoiding discount catalogs and sale sections.

10. Opt For Generic Over Name Brand

While checking off your shopping list, see if there are any generic alternatives to big-name brands. Most big box stores make the same products at a discounted price in exchange for the branded packaging. Compare the ingredients of a generic item against name brand products to see if you can spot a difference. Purchasing generic food products alone could save you 30 to 60 percent.

Bonus step: Google online coupons at checkout to see if you can get an added discount.

11. Cancel Unnecessary Subscriptions

While your gym membership and TV streaming system may have served you a few years ago, it may not now. Audit your expenses each month to see what you’re able to cut out. Instead of paying for a gym membership that costs on average $696 each year, purchase weights and a yoga mat for your own home gym. Not only could it save you money year after year, it could save you the commute to the gym and back.

Bonus step: As 65% of people don’t keep track of their monthly spending, schedule budget audits on your calendar every three months.

12. Challenge Yourself to a No-Spend Challenge

Participate in daily, weekly, or monthly savings challenges to make penny-pinching more fun. Ask your friends and family to join in on a no-spend challenge to up the stakes. Spark some friendly competition while giving back to your bank account. Once the month has come to a wrap, treat yourself to your favorite snack in celebration of your achievements.

Bonus step: Set an alert on your phone for a no-spend day each week. One New Yorker saved $18,432 in six months from having one no-spend day a week.

13. Set New Budget Goals and Repeat

Challenges help keep your eyes on the prize. Set different goals as you audit your budget each month. One month you may want to focus on contributing to your emergency fund, while the other you may want to increase your student loan payments. Get creative with your goals and set up budget alerts to ensure you’re meeting them.

Bonus step: Tell your friends and family about your goals each month to increase your odds of meeting them.

Invest Your Time and Money On Things That Help You Save

What else could you do with your money to earn more? Simply investing a hundred dollars in home gym equipment could pay for itself (and more) instead of purchasing an annual gym membership. Below are a few more options that could save you time and money year after year.

Make your coffee at home: Buy yourself a coffee maker and cup that you love. Use your machine and reusable cup every day to save hundreds of dollars on takeout coffee.
Become a beautician: Order hair shears, at-home dye supplies, and nail kits to save on the tremendous beauty industry markup prices. Ask your friend to do your hair or take it upon yourself to learn.
Use reusable products: Reduce your waste and purchase reusable products. Swap your paper towels for reusable towels to save the earth and budget.
Shop quality over quantity: For instance, invest in staple clothing pieces over fast fashion. You could save money and time on constantly shopping for new clothes.
Create an at-home gym: Purchase a few weights, a yoga mat, and a water bottle and get a sweaty workout done at home. You may even feel less stressed about beating traffic to make it to your fitness class on time.
Track your spending on the fly: Download our free app to track your spending habits, even when you’re out and about. Set up alerts to ensure you’re always on track with your budget.
Divvy up time for your passion projects: Say no to events that don’t benefit you and use that time to create passive income projects that last a lifetime.

Even though you may be looking to save more and spend less, you don’t have to cut all your favorite things out of your budget. Instead, practice spending with a purpose. Your weekly dinners out on the town may not as mean as much as they do when you treat yourself to a nice steak made at home. If you’re frequently tempted to spend your money instead of saving, create a budget to ensure you’re always keeping up with and sticking to your savings goals.

Save more, spend smarter, and make your money go further

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Apache is functioning normally

May 22, 2023 by Brett Tams

A checking account is a deposit account held at a financial institution that allows withdrawals and deposits. Its purpose is to provide an easily accessible avenue for frequent transactions such as paying bills. As a tool in your money management kit, understanding how much money you should keep in your checking account is crucial for optimal financial health.

Factors to Consider When Determining How Much Money to Keep in Your Checking Account

Monthly Expenses

Your checking account balance should reflect your exact living expenses, plus a little extra for safety. Monthly expenses vary for everyone. They can be divided into fixed expenses (like rent and utilities) and variable expenses (like groceries, entertainment, seasonal and occasional expenses).

Income Frequency and Stability

If you have a regular income and know exactly how much money you’re getting every pay period, you can plan to keep just enough to cover a couple months worth of expenses plus your extra safety net. If your income fluctuates, it might be prudent to keep a bit more.

Personal Comfort Level and Financial Goals

Everyone’s financial situation and goals are different. Some might feel comfortable with a larger buffer in their checking accounts, while others might prefer to invest or move their excess into savings accounts to earn interest.

Emergency Expenses and Financial Buffer

Life is unpredictable. Having an emergency fund in your checking account for unexpected expenses such as medical emergencies or urgent car repairs can save you from financial distress. A rule of thumb is to have 3–6 months’ worth of living expenses set aside in your emergency savings.

General Rules of Thumb for Checking Account Balances

Covering Monthly Bills

The balance in your checking account should always be able to cover your monthly bills without resorting to overdrafts. Overdraft fees can add up and end up being a significant drain on your finances.

Overdraft Protection

It’s wise to keep a buffer against unanticipated expenses. This isn’t just an ATM transaction that went over your available balance, but also potentially a check that was cashed later than expected. An overdraft protection plan can prevent an empty or overstuffed checking account.

Extra Cushion

Even with all your expenses accounted for and a buffer for emergencies, it can be prudent to maintain an additional cushion. This can help cover seasonal and occasional expenses without the risk of an overdrawn account.

Benefits and Risks of Keeping Large Balances in Your Checking Account

Benefits

There’s convenience and flexibility in having a robust checking account. It serves as overdraft protection and ensures you have enough money for just about anything. Moreover, having that much money at hand can feel comforting.

Risks

Having too much money in your checking account comes with risks, such as missed investment opportunities. Money in a checking account typically doesn’t earn interest, or if it does, the interest rates are often significantly lower than savings or money market accounts.

There’s also the risk of exposure to fraud and theft. While financial institutions do their best to protect your checking account numbers and other data, no system is completely foolproof.

Strategies to Optimize Checking Account Use

Regular Monitoring and Rebalancing

Understanding how much cash you’re spending and keeping track of your available checking account balance is key. It allows you to adjust your balance based on your spending habits and helps keep your checking account well-funded without being overstuffed.

Use of Budgeting Tools and Apps

Budgeting tools can help you understand your monthly spending better. They can automate the tracking process and give you a clear picture of how much money you need in your checking account each month.

Automatic Transfers

Setting up automatic transfers to your savings account or emergency fund can help you grow those funds consistently. Just ensure that this doesn’t leave your checking account underfunded.

Splitting Direct Deposits

You can opt to split your direct deposit into different accounts. This can be a valuable tool for maintaining an adequate balance in your checking account while also ensuring your savings accounts and investment accounts are consistently growing.

Regularly Reviewing and Adjusting Based on Changing Financial Situations

Life changes can significantly affect how much money you need in your checking account. Regular reviews of your finances can help you adjust to changes like new monthly bills, increased living expenses, or changes in your income.

Alternatives to Keeping Excess Money in a Checking Account

Savings Accounts

Savings accounts typically offer higher interest rates than checking accounts. Transferring excess money into a savings account can help you earn more over time, making it a safer bet for your surplus funds.

Investments

Investing can offer higher returns than deposit accounts that pay interest at a bank, though it comes with more risk. If you find you have too much cash in your checking account regularly, it might be worth speaking with a financial advisor about investment opportunities.

Money Market Accounts and High-Yield Checking Accounts

Money market accounts and high-yield checking accounts can provide higher annual percentage yield than regular checking and savings accounts. These accounts can be a good place to keep excess money that’s still relatively accessible.

Bottom Line

While the average checking account balance varies by individual, a rule of thumb is to keep enough to cover a month or two of expenses. In addition, keep a cushion for emergencies and any potential bank failures.

Maintaining a balance that is too high means your money isn’t working for you, and could be better used in a high yield savings account or investment. On the flip side, you don’t want to risk overdraft fees from an empty or overdrawn account.

Ultimately, the best way to determine how much money to keep in your checking account is to monitor your finances closely. Understand your monthly expenses and personal comfort level, and regularly review your situation.

The key is balance. An overstuffed checking account means missed opportunities elsewhere, but a checking account well funded enough to cover your bills, a buffer for emergencies, and a bit extra for unexpected expenses will keep your financial life running smoothly.

No matter what, it’s your money. Understanding the ins and outs of bank accounts, especially your checking account, is key to ensuring your money works best for you.

Frequently Asked Questions

Can my bank account balance affect my credit score?

No, the amount of money in your checking or savings account doesn’t directly impact your credit score. However, good money management habits like avoiding overdrafts, paying bills on time, and maintaining a healthy balance can indirectly contribute to your overall financial health.

Is my money safe in a checking account?

Yes, your money is typically safe in a checking account. Most checking accounts are insured by the Federal Deposit Insurance Corporation (FDIC) up to a limit of $250,000. However, always verify that your bank is FDIC-insured.

What if my checking account balance goes negative?

If your account balance goes negative, you’ll likely face overdraft fees. Some banks offer overdraft protection programs that link your checking account to a savings account or credit card to cover the shortfall. However, these services often come with fees, so it’s better to avoid overdrawing your account whenever possible.

Should I have multiple checking accounts?

Having multiple checking accounts can be beneficial for managing different financial objectives or expenses. However, keep in mind that each account may have its own set of fees and minimum balance requirements.

What happens to the money in my checking account when I use my debit card?

When you use your debit card, the amount of the transaction is subtracted from your balance. So, it’s crucial to ensure that you have enough money in your account to cover any purchases made with your debit card.

What happens if I don’t meet the minimum balance requirement for my checking account?

If you don’t meet the required minimum balance, your bank may charge you a monthly maintenance fee. The specifics can vary widely from bank to bank, so it’s best to check with your financial institution about their policies.

How can I avoid monthly maintenance fees on my checking account?

Some ways to avoid monthly fees include meeting balance requirements, setting up direct deposit, or using your debit card a certain number of times per month. Each bank has different policies, so it’s important to understand what your bank requires to waive these fees.

Source: crediful.com

Apache is functioning normally

May 22, 2023 by Brett Tams

In early March, Brown Harris Stevens broker Mindy Diane Feldman had reservations about a First Republic Bank loan.

A buyer had offered to purchase a New York City co-op from Feldman’s client and had pre-approval from First Republic for a below-market-rate mortgage — the bank’s specialty. Feldman wanted to ensure that if interest rates rose, it wouldn’t affect the closing or the buyer’s ability to meet the co-op board’s financial requirements.

“If they were the lowest rates that the bank was offering, then we had volatility risk,” she said.

Two days after the broker asked for details about the mortgage, Silicon Valley Bank collapsed. Fearing that First Republic could get caught in the maelstrom, Feldman urged her client to take another bidder’s all-cash offer.

First Republic’s rock-bottom rates did more than make agents nervous — they led to the bank’s downfall.

Its seizure Monday by the Federal Deposit Insurance Corporation and sale to JPMorgan Chase ended weeks of turmoil for the bank, which saw its stock plummet 89 percent in March as customers pulled out over $100 billion in deposits.

But the drama now shifts to First Republic’s residential and multifamily borrowers — its largest lending pools — and to lending in those markets.

Game over

Early Monday morning, the FDIC took control of First Republic and sold the “substantial majority” of its loans and assets to JPMorgan Chase, the country’s largest bank with more than $3.7 trillion in assets.

JPMorgan acquired $203 billion in loans and other securities, but passed on assuming First Republic’s corporate debt or preferred stock.

Some insiders believe the sale includes $103 billion in residential mortgages, about $23 billion in multifamily loans and nearly $11 billion in other commercial real estate debt.

That contrasts with New York Community Bank’s purchase of Signature Bank’s assets in March, which excluded Signature’s commercial real estate loan book — inviting speculation that the debt was toxic.

Experts say the First Republic sale gives little insight into the health of its assets. But the FDIC committed to covering 80 percent of losses incurred on that debt over the next five to seven years, implying a degree of distress and a “downside risk of significant losses in the portfolio,” said Sam Chandan, director of NYU’s Institute of Global Real Estate Finance.

The FDIC pegged its own loss on the deal at about $13 billion.

First Republic reported $549 million in loans with “high volatility commercial real estate exposure” in the first quarter, more than twice the $252 million it reported a year earlier, according to the FDIC. The first-quarter figure represents a fraction of its $139 billion real estate loan book.

But the bank did not report any non-performing commercial or multifamily loans on its books as of March 31.

Rather, the problem was rising interest rates, which meant First Republic had to pay more on its customers’ deposits while the vast majority of its long-term residential mortgages were issued in a low-rate environment.

For now, brokers don’t expect First Republic’s residential borrowers to experience much disruption. JPMorgan plans to keep all of its branches open, allowing existing loan customers to “bank as usual,” it said Monday in an investor presentation.

Brad Lagomarsino, a Colliers multifamily broker in San Francisco, said he touched base with his personal banker at First Republic on Monday morning, hours after the sale, and said nothing had changed.

“Every loan I have is with them,” Lagomarsino said.

Still, residential brokers including Feldman say they have spent the past month advising clients considering a First Republic loan to line up alternatives.

“Just so there’s a plan A, a plan B and maybe even a plan C,” Feldman said.

David Cohen, a broker at City Real Estate in San Francisco, said some clients have opted to “double-dip” with pre-approval letters, one with a low rate from First Republic and a second from another lender to avoid delaying a closing if First Republic fell.

“We joked that a pre-approval letter from First Republic was the Rolls Royce of pre-approval letters,” Cohen said.

“A gaping hole”

Though it was known for catering to the rich and famous — providing mortgages to Ben Affleck, Mark Zuckerberg and, as recently as last month, actress and socialite Julia Fox — First Republic was also a prominent lender to landlords.

The bank was San Francisco’s top multifamily lender in the first quarter, financing eight out of the quarter’s 20 deals, according to Colliers.

If rival banks were offering a senior loan with an interest rate of 5.5 percent, First Republic was offering one in the lower 5 percent range, Lagomarsino said. Account holders especially often scored preferential terms.

“If you had a ton of money there, you were able to get very good debt,” he said.

No longer.

“They are going to leave a gaping hole in this market in the short-term,” Lagomarsino added, noting that multifamily buyers are already stepping away from regional banks. “You’re seeing people gravitate towards the Chases of the world.”

First Republic was generally conservative in its underwriting, offering lower loan-to-value ratios — generally between 50 and 60 percent — but low rates.

For CRE, First Republic Bank was always a low leverage lender.

50-60% LTV, in my experience.

Perhaps their CRE book is actually ok –

I guess the larger issue would probably be overall market conditions reducing the value of these loans/assets.

But from a conservative lending…

— Jeff Feldman (@JeffFeldman_) April 30, 2023

As high interest rates eat into banks’ profits, regional lenders figure to offer less competitive loan terms, leaving a void in the market.

“It’ll be interesting to see if JPMorgan wants to fill that gap,” said Mark Weinstein, the founder of Santa Monica-based multifamily firm MJW Investments.

What is certain is that JPMorgan’s purchase of First Republic consolidates the residential and multifamily lending markets, narrowing options for borrowers.

First Republic was New York’s ninth-largest provider of home mortgages in 2021 with nearly $5 billion in loan volume, according to Home Mortgage Disclosure Act data. It was eighth in California and 23rd nationally.

JPMorgan, by comparison, took the top spot in New York, with $21 billion in volume, and ranked fourth in California and nationally.

First Republic’s sale eliminates one national home-loan heavyweight while inflating another, JPMorgan.

That could be bad news for residential borrowers, Feldman said. With less competition, lenders can set higher rates and stricter requirements while offering fewer loan products.

Other banks “don’t have to compete” with First Republic’s low rates anymore, said Michael Nourmand, head of the Los Angeles residential brokerage Nourmand & Associates.

Rivals including Wells Fargo, PNC Bank, City National Bank and Citibank have spent the past two months snapping up First Republic’s market share after the bank began offering less generous mortgage rates.

Some First Republic borrowers are also concerned about JPMorgan’s size.

“[It] is like Bank of America — too big for personalized service,” Artem Tepler, who runs multifamily developer Schon Tepler Partners in L.A. and held personal loans with First Republic, wrote in a text.

First Republic often sweetened deals by offering potential borrowers interest-only loans. It’s unclear whether JPMorgan will continue that, but insiders say it’s unlikely.

“I don’t think JPMorgan is going to continue the kind of business that First Republic was doing that they weren’t doing themselves,” said Morris Pearl, a former managing director at BlackRock who now chairs the lobbying group Patriotic Millionaires.

JPMorgan plans to spend $2 billion restructuring the bank, according to its investor presentation. It plans to convert certain branches into new wealth centers and said the loans will be placed into its banking divisions.

Beyond that, details are vague. Restructurings typically involve layoffs, selling loans, closing offices and refinancing debt.

Run risk

JPMorgan CEO Jamie Dimon touted the First Republic acquisition as a salve for lingering fears of a banking crisis.

The executive told CNN Monday that the deal “helps stabilize the system” and the threat of bank failures is “getting near the end.”

“Down the road — rates are going way up, real estate recession, that’s a whole different issue,” he said on a call with analysts Monday. “But for now we should just take a deep breath.”

Investors are not convinced. The KBW Regional Banking Index slid 2 percent on Monday, then 6 percent Tuesday morning to hit $81.59 per share, the lowest in more than two years.

Trading of Pacific Western Bank, a regional L.A.-based lender, was halted for volatility multiple times Tuesday after the stock plummeted more than 39 percent, CNBC reported. Valley Bank has dropped 25 percent since the markets closed on Friday.

Chandan, speaking as regional bank shares tumbled Monday, said First Republic’s seizure could reignite fears about withdrawals at smaller institutions.

As the FDIC can only insure up to $250,000 in a customer’s deposits at any one bank, Chandan said a risk remains that smaller lenders could see clients rush to the perceived safety of larger banks. First Republic suffered nearly $102 billion in outflows in the first quarter as clients, anxious about market turmoil, yanked funds.

“This leaves the door open for further runs on deposits from institutions that are perceived to be a significant risk,” the professor said.

David Hunt, CEO of global asset manager PGIM, alluded to that in remarks at the Milken Institute Global Conference in L.A. on Monday.

“There’s a tendency to breathe a sigh of relief on mornings like this,” he said. “Actually, we are just getting started.”

Source: therealdeal.com

Apache is functioning normally

May 21, 2023 by Brett Tams

If you’ve bought life insurance before, you know it can be a bumpy ride.

The process can easily become overwhelming as you’re trying to decide between the thousands of different companies that are on the market. Luckily, there are independent insurance agents to make it simple for you. For the many in search of life insurance, an independent life insurance agent can play a vital part in obtaining the best policy.

While an exclusive agent is only able to offer insurance options from one company, an independent agent can offer insurance alternatives from a number of carriers. This has some similarities to the way that some insurance agencies will compare the rates of other companies.

What makes going through an independent agent more valuable than just receiving rate comparisons is that an agent can compare all the ins and outs of life insurance policies available through various companies.

Going through an agent can take a lot of the tedium out of wading through each insurer’s health and lifestyle requirements, premiums, coverage and the like.

Why Choose An Independent Agent

If a person seeking life insurance has conditions that might make obtaining a policy difficult, an independent life insurance agent may be able to assist in easing that process. An independent agent that concentrates in this area is known as an impaired risk specialist. This type of independent agent is well versed in the nuances of policies offered by several companies.

One insurance company may be more likely to insure someone with a heart health issue or be more prone to insure someone with a history substance misuse. One insurance company may be willing to offer more affordable premiums to someone who enjoys skydiving than any of the others. Some specialists can even pave the way with inquiries to companies before making an official submission. Whatever the case may be, an independent agent can navigate this so that a high risk client gets the best insurance choice possible.

No Conflict Of Compensation

Since an independent life insurance agent is considered an independent contractor, the agent draws no salary from any of the insurance companies that they represent. They work on a commission basis and as such have less interest in making sure that a person looking to be insured sign up with one particular company or another. This also increases the chances that both the insurer and the insured are pleased with their match. Through an independent agent, a person seeking to be insured may end up with the most suitable life insurance policy for them being with a company that hadn’t even been previously considered. This is also a way for insurance companies to reach out to previously untapped markets.

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Finding An Independent Life Insurance Agent

Through a bit of searching online, someone in search of life insurance can find an independent agent to work with. There are even independent insurance agencies through which one can find an agent. Anyone working as an independent agent has have proper state certification to sell life insurance in that state. An independent agent also has to have the permission of the insurance companies in order to represent them. For those looking to work with an independent agent, there are methods to verify an agent’s certification in that state. If an independent life insurance agent is needed, the right one for the job can be found.

Getting Lower Rates through an Independent Insurance Agent

We mentioned that working with an independent agent is a great way to do that, but it’s not the only get cheap coverage.They can search through all of the carriers and find the most affordable plan. Aside from working with independent brokers, there are some changes you can make yourself to save money.

Your rates are tied to your health. The better shape you’re in, the lower premiums you qualify for. Before you apply for a plan, get in shape. Your rate category is going to determine your rates, and if you want to be placed in a better category, improve your health.

After you’ve gotten in shape, you can continue your health journey by quitting your habits like smoking. Smokers are automatically given higher rates. You can’t smoke and get cheap life insurance, the two don’t mix.

Calculating Your Life Insurance Needs

Before you apply, you have to do some groundwork. One of the most important things to do is add up how much life insurance your family needs.

To get started with these calculations, gather all of your debts and add them up. Step one is to make sure your life insurance is big enough to pay off your debts.

Step two is to take your annual income and multiply it. We are assuming you have people who rely on your income. If you have those people, your life insurance needs to replace your paycheck.

There is no “perfect amount” of life insurance that works well for everyone. Each situation is different and everyone will have different needs, but most life insurance experts suggest getting anywhere from seven to ten times your annual income. In most cases, this will work fine, but it’s important that you calculate what your exact needs are.

Getting Life Insurance With An Independent Insurance Agent

Working with an independent agent is not only the best way to get affordable life insurance, it’s one of the easiest as well. Our agents can bring you all of the best rates and policies directly to you, which means that you don’t have to spend hours on the phone calling dozens of companies.

Don’t wait another day to get life insurance coverage.

Source: goodfinancialcents.com

Apache is functioning normally

May 20, 2023 by Brett Tams

10’000 Hours/Getty Images

As of Jan. 6, 2023, Marcus by Goldman Sachs stopped offering personal loan products through Bankrate. It is also pulling back from unsecured personal loans on the whole, though existing loans will still be serviced by the bank.

Marcus — the online branch of Goldman Sachs Bank — also still offers savings products and credit cards. For those interested in an online personal loan like those Marcus provided, there are plenty of lenders to choose from that offer similar services and competitive rates.

Alternatives to Marcus by Goldman Sachs loans

While shopping around will help you find the best personal loan for your financial situation, here are a few online lenders that offer similar APR ranges and eligibility requirements to Marcus personal loans.

SoFi

SoFi is a great option for borrowers who make a steady, decent income, have a good credit score and a positive repayment history. SoFi’s loan amounts range from $5,000 to $100,000 and it doesn’t charge any origination, prepayment or late payment fees. Plus, the lender offers prequalification which allows you to check your eligibility odds and predicted rates without impacting your credit.

LightStream

LightStream offers a wide range of loan amounts and repayment terms, making it ideal for borrowers who need to consolidate high interest debt or take on large home improvement projects.

The lender boasts a low APR, but does require a good to excellent credit score. If you don’t meet the eligibility criteria, you can enlist the help of a co-borrower to boost your approval odds or to score a more competitive rate.

Achieve

Formerly known as Freedom Plus, Achieve is an online lender that offers personal loans up to $50,000. It offers competitive rates for the most creditworthy borrowers, but has a relatively low credit requirement of 620.

Plus, the lender allows for joint loans and is known for its speedy application process and same-day approval. However, it does have a high minimum amount and depending on your loan amount and repayment term, you may be on the hook for an origination fee.

Why doesn’t Marcus by Goldman Sachs offer personal loans anymore?

Marcus hasn’t publicly disclosed why it shut its doors on personal loan products. However, a 2022 Bloomberg report asserts that the online branch of Goldman Sachs Bank has been scaling back its consumer lending division. “Consumer lending is being reigned in,” the report read. “While the bank will keep credit-card partnerships, it will be very selective about adding to the list.”

As of now, Marcus will continue to offer saving accounts and credit cards through its online portal. Current Marcus personal loan borrowers need to look out for communication from the lender for up-to-date information and next steps.

Source: thesimpledollar.com

Apache is functioning normally

May 18, 2023 by Brett Tams

Reverse mortgages were deemed both risky and costly for older homeowners, according to a report released this week by Consumer Reports.

The publication noted that many marketers of reverse mortgages, otherwise known as Home Equity Conversion Mortgages (HECMs), engage is “questionable sales tactics” and make misleading claims to minimize the associated risk of these types of loans.

Senior citizens also happen to be very susceptible to misleading marketing, so the danger is two-fold.

“Reverse mortgages are a very risky deal for borrowers who don’t understand the complicated terms of the loan and how quickly fees and interest charges can add up,” said Norma Garcia, senior staff attorney for Consumers Union, the nonprofit publisher of Consumer Reports, in a release.

“Reverse mortgages should only be a last resort for seniors who want to stay in their homes and have no other alternatives to supplement their income.”

The report also found that many mortgage lenders that sell reverse mortgages cross-promote products that homeowners may not need, including long term care insurance and annuities.

Reverse Mortgages Leading to More Foreclosures

As of March 2010, 20,631 reverse mortgage loans were in default, thanks to borrowers failing to pay their homeowners insurance premiums and taxes (what goes into a mortgage payment?).

“Reverse mortgages are likely to generate an even greater number of foreclosures when borrowers die and their heirs are not able to take possession of the home by paying off the mortgage,” the publication warned.

Additionally, the annual sum of reverse mortgages taken over by a federal insurance fund has more than quadrupled, from $81.3 million in 2004 to $381.3 million as of 2008.

Reverse mortgages are available to homeowners aged 62 or older with owner-occupied properties.

They allow borrowers with home equity to pull cash-out of their home on a monthly or lump sum basis without having to make monthly mortgage payments.

Source: thetruthaboutmortgage.com

Apache is functioning normally

May 18, 2023 by Brett Tams

Money orders are a form of payment that are sometimes very useful if you need to transfer funds to someone. They can be obtained from various outlets, at typically a low fee, and can be a good way to move cash when a person doesn’t have or doesn’t want to use a bank account.

Here, you’ll learn more about what money orders are, how they work, when to use them, and what alternatives to money orders exist.

What Is a Money Order?

Think of a money order as a paper check that can never bounce because it has been prepaid by the sender. It can be cashed or deposited just like a check, but it offers a few benefits over checks beyond never bouncing.

For one thing, if for whatever reason you don’t have a bank account, that isn’t a problem. You don’t need a bank account to get a money order, cash one, or even use money orders to pay bills.

To send a money order, here’s the protocol of the U.S. Postal Service:

1. Take cash, a debit card, or a traveler’s check. You cannot pay with a credit card.

2. Fill out the money order at the counter with a retail associate.

3. Pay the dollar value of the money order plus the issuing fee.

Recommended: Can You Buy a Money Order With a Credit Card?

Where to Get a Money Order

Many of the biggest banks offer money orders and often require that they be purchased at a branch. There can be a $5 to $10 fee when buying a money order worth up to $1,000 (though the fee may be waived for premium accounts).

Sometimes the money order fee is also waived for members of the military. However, many banks require that you already have an account with them to purchase a money order.

Money orders are also issued at places like Walmart (with a maximum fee of $1, and the exact fee varying by location), convenience stores, credit unions, and the Postal Service.

Postal Service fees for money orders are based on the dollar amount: $1.45 for a money order of up to $500, $1.95 for one from $500 to $1,000 (which is the maximum amount for a single money order), and 50 cents for postal military money orders issued by military facilities.

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Advantages of a Money Order

Money orders may be safer than some other forms of money. For example, while a check contains sensitive personal information like your home address, phone number, and bank account and routing number (plus the name of anyone else on the account), a money order usually only contains the names of the payer and payee.

So a money order is usually a more anonymous and therefore a potentially more secure method of payment than a check, although some money order issuers may require an address. That’s usually in case the check’s payee needs to contact the sender about the payment.

Sometimes both halves of the transaction may have to include this information. If you’re unsure, the best bet is to just ask.

Potential Drawbacks

Here are a few of the cons of money orders:

• Fees. While you can pay bills with money orders, the small fees can add up if you’re relying on them for that purpose.

Check cashing stores may charge a flat fee of $2.99 per money order, while some might charge around 4% to 5% to cash a money order. Many banks usually will do it for free. Also note that there are banks that will deposit a portion of the order and then after a couple of days release the rest.

• Payment limits. Usually $1,000 is the ceiling for most money orders.

• Inconvenience. The fact that many banks require your presence to process a money order may make putting money orders you receive into use less convenient.

The cap on a money order’s value also means there’s a time investment if, say, you need to pay $2,000 to someone — that’s two money orders, two fees, and twice as much time spent getting them issued.

In addition, not all businesses may accept money orders. If you are trying to use one to pay a bill, check with the payee first. Every now and then, you may encounter someone who accepts only, say, online bill paying.

• Use in scams. A big strike against money orders overall — and this is why banks can be somewhat cautious in accepting them — is that they can be used in banking scams. Money orders are perceived as a safe way to receive payments, and that is true when they are legitimate.

But the news can share stories about counterfeit money orders that revolve around suspicious prizes, employment opportunities, classified ads, and so on. Because money orders are not checks, it can make them harder to trace. It’s a good idea to keep your receipt for a money order until you are sure the order has been received and cashed.

Alternatives to Money Orders

Sometimes vendors or recipients aren’t able to accept a check, and a money order might make sense. But there are digital age options like peer-to-peer payments or P2P transfers.

P2P platforms are often a free service offered by financial institutions that lets users send and receive money, usually in minutes.

And P2P transfers are generally quick, as fast as a few seconds. Examples of services people use for P2P payments are PayPal and Venmo, as well as Zelle which moves money in a slightly different way, from bank account to bank account, but is usually mentioned in the same breath with the others.

Also, many banks now offer ways to transfer money from one bank to another as part of their services, making it easy to move money between your own accounts and to other individuals and businesses.

Recommended: Pros and Cons of Electronic Banking

The Takeaway

Money orders are a paper financial tool, which, like a check, can move funds. They have the added benefit of being able to be used even if you don’t have a bank account, and the fees involved in getting one can be quite low. However, there is typically a $1,000 cap on the amount of a money order, and it can take some time and energy to get one.

If you’re looking for a simple way to move money from your bank account to another person at any time, consider a SoFi Checking and Savings online banking account. You’ll be able to send funds to a recipient, whether or not they bank with SoFi.

What’s more, a SoFi Checking and Savings Account offers a competitive annual percentage yield (APY) and charges no account fees, which can help your money grow faster. And you get to spend and save in one convenient place.

SoFi Checking and Savings: The smart and simple way to bank.

SoFi® Checking and Savings is offered through SoFi Bank, N.A. ©2023 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender.

The SoFi Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

SoFi members with direct deposit can earn up to 4.20% annual percentage yield (APY) interest on Savings account balances (including Vaults) and up to 1.20% APY on Checking account balances. There is no minimum direct deposit amount required to qualify for these rates. Members without direct deposit will earn 1.20% APY on all account balances in Checking and Savings (including Vaults). Interest rates are variable and subject to change at any time. These rates are current as of 4/25/2023. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet.
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.
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.
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Source: sofi.com

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