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Apache is functioning normally

September 13, 2024 by Brett Tams

Discover has released the 5% categories on the Discover IT card for Q4 2024:

Amazon.com
Target and Target.com

Not very useful for those of us with the 5% cards from Amazon and Target. The Target deal can still be useful for buying Target gift cards since those do not earn 5% on the REDcard, but will earn 5% with Discover in Q4. Target usually runs a 10% off deal on their gift cards during the Q4 holiday season.

Login, then click this link to see you how far along the $1,500 you are.

Activate to earn 5% Cashback Bonus at Amazon.com and Target from 10/1/24 (or the date on which you activate 5%, whichever is later) through 12/31/24, on up to $1,500 in purchases. Amazon.com purchases include those made through the Amazon.com checkout, like digital downloads, Amazon Fresh orders, Amazon Local Deals, Amazon Prime subscriptions, and items sold by third party merchants through Amazon.com’s marketplace. This also includes purchases in-store at Amazon Go and Amazon Fresh. Purchases made online and in-store with Whole Foods Market are not included in the promotion. Amazon, the Amazon.com logo, the smile logo, and all related marks are trademarks of Amazon.com, Inc. or its affiliates. Target purchases include those made in-store at Target, Target.com, or through the Target app. Purchases from individual merchants and stand-alone stores within physical Target locations may not be eligible for this promotion. Purchases made online or through the Target app from Target affiliates, individual merchants, or stand-alone stores may not be eligible for this promotion, including, but not limited to, targetoptical.com and targetphoto.com. Target and the Bullseye Design are registered trademarks of Target Brands, Inc. Listed merchants are in no way sponsoring or affiliated with this program.

Hat tip to reader RJ

Source: doctorofcredit.com

Apache is functioning normally

September 13, 2024 by Brett Tams

Buying a house is a major step, and planning to purchase a home can be a lot of fun. You get to figure out where you’d hang your favorite artwork, plant a vegetable garden, put the PlayStation — and maybe contemplate taking on some DIY projects yourself.

But there’s another, more nuts-and-bolts aspect to your pursuit of the American Dream: how to budget for a house. Most people in the U.S. are homeowners, with the latest Census data revealing that 65.6% had attained this status in the second quarter of 2024. So that’s a good indicator that buying your own home is within reach.

Doing so will likely require you to be smart about your finances, both as you save and then take on the responsibility of owning a home. To help you be successful in this pursuit, read on for the intel you need, such as:

• How do I know how much house I can afford?

• What are the costs/fees to consider?

• What will my ongoing costs be?

• How can I budget for a house?

Up-front Expenses

First, consider how much you would have to fork over if you find that perfect center-hall Colonial or loft-style condo. Once an offer on a new home is accepted, there are certain costs the buyer needs to pay right off the bat and, in most cases, out of their own pocket. These are called up-front expenses. Here are a few to prepare for as you consider how to budget for a house:

Down Payment

You may have heard of the traditional 20% down payment guideline, which helps you avoid paying private mortgage insurance (PMI) on applicable loan programs. Additionally, a higher down payment can sometimes result in better mortgage loan terms (such as a lower interest rate) which may translate into lower monthly mortgage payments.

Yep, it’s a lot of money to try to save, but if you can swing it, in the long run, applying a 20% down payment will likely save you from paying thousands of dollars in additional mortgage interest over the life of the loan. Can’t pull together that big a chunk of change? Look into your options for a mortgage lender with lower or no down payment. Some options:

• The minimum down payment for a first-time homebuyer on a conventional loan can be as low as 3%. You may also need a certain credit score of, say, 620, to qualify for this kind of mortgage.

• An FHA government loan that is open to everyone typically requires a down payment of at least 3.5%.

• Veteran VA loans or government USDA loans may allow eligible borrowers to finance up to 100% of their home’s cost. In other words, no down payment is required.

It’s worth noting that, regardless of the size of your down payment, buying may still significantly reduce your overall monthly expenses, compared to your current rent and real-estate market conditions.

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3% to 5% Closing Costs

You can likely expect to pay an estimated 3% to 5% of your home price for closing costs, and should save accordingly. For example, if you buy a home that costs $300,000, you may be required to pay between $9,000 and $15,000 in closing costs.

Worth noting: Some costs are fixed and not tied to the price. In these cases, the percentage can be higher for the lower range and lower for the higher purchase price range.

What exactly comprises closing costs? This can be bank charges like origination fees and any points you may have purchased to buy down your interest rate. There are also costs like the appraisal fee, a title search, and others.

Keep in mind that there are alternatives to paying the closing costs out-of-pocket, such as requesting a seller credit, requesting a lender credit, or tapping an applicable down payment assistance program. These can help you minimize this expense.

Moving Costs

Don’t forget when budgeting for buying a house that you will need funds to actually move in. Unless you’re lucky enough to have a generous pal with a van, you are probably going to have to hire a moving company when it’s time to get settled in your new home. The average cost of moving the contents of a three-bedroom home 1,000 miles is $4,800 according to research by U.S. News & World Report.

These costs can vary widely, of course. If you are moving with just a bedroom’s worth of furniture versus a whole house, your price tag will be lower. It’s wise to comparison-shop for moving companies and factor this expense into your own budgeting for a home move.

If you are moving for work reasons, check with your company to see if it offers a relocation package to help cover some or all of the moving costs.

New Furniture and Appliances

Your new house may not have the same dimensions and style of your old house. That could mean that you need to buy new furniture and appliances. When budgeting for buying a house, you might want to talk to friends or relatives who have moved recently and inquire about unexpected expenses as well. For example, it’s not uncommon when you move to have to purchase such items as new locks, shower rods, and window treatments. These can add up quickly.

You might want to start a savings account for these types of purchases — some of them may be unexpected and costlier than you imagined.

Recommended: First-Time Homebuyer Guide

First-time homebuyers can
prequalify for a SoFi mortgage loan,
with as little as 3% down.

Ongoing Expenses

Now that you’ve figured out the details related to the actual purchase, consider the expenses that will accrue once you are a homeowner. This is a very important step when budgeting for buying a house. These recurring charges are a vital part of the calculations of how much home you can afford.

Monthly Charges

First, consider how much you’ll be spending every month on your monthly mortgage payment and related costs. PITIA (principal, interest, property taxes, homeowners insurance, and other assessments) is an acronym describing all the components of a mortgage payment. Here’s how it breaks down:

• P: The principal is the “meat” of the monthly payment amount — paying down the principal will reduce the loan balance.

• I: Interest is what you are charged for borrowing the money.

• T: Taxes refer to your property taxes.

• I: This “I” refers to insurance. This includes both your homeowners and mortgage insurance, if applicable.

• A: The other assessments refer to things that may be applicable to the home you purchase such as homeowners association dues, flood or earthquake insurance, and more.

HOA Dues

HOA stands for homeowners association. These dues usually apply to a condo, co-op, or property owned in a planned community.

The charge is usually monthly (but it could also be charged quarterly or annually), and it typically goes to maintaining the community (landscaping, garbage collection, repairs, and upgrades).

Before purchasing a property with HOA dues, it can be important to ask the Homeowners Association for a complete HOA questionnaire. With this in hand, you can view how healthy the association is, whether there is any outstanding litigation due to structural or other issues, etc. These could mean increased costs down the road.

Maintenance and Lawn Care

Your budgeting probably won’t stop once you’ve moved and settled into your new home. Expenses will likely continue to knock on your door — landscaping, roof repair, and water heater replacement are just a few items that might require ongoing financial consideration.

You may want to budget for 1% to 4% of the cost of your home in maintenance each year to pay for these expenses. However, deferred maintenance costs may require more funding, depending on the age, quality of construction, where you live, and more.

Pest Control, Security, Utilities

The cost of electricity, gas, water, and internet services differ from market to market. This is also true with pest control, and services that help ensure your home is secure and safe. You could find yourself paying more (or even less) for these services in your new home.

How Much House Can You Afford Quiz

Planning Ahead

So now that you understand the costs associated with homeownership, whether they are one-time or ongoing, you can get to work on how to budget for a house.

Ideally, you want to cover the homebuying costs and then be able to afford your monthly carrying costs without racking up debt. The standard advice is that your monthly housing expenses should account for up to 28% of your monthly pre-tax income. Given how expensive some housing markets can be, it’s not uncommon to find people spending more than that right now.

Here, some advice on figuring out what you can afford.

Target Mortgage Costs

Do your research on the different types of mortgage loan programs. Determine what your price range is given the current interest rates. Find the programs that may best suit you, so you’ll feel confident you can bid and afford a home once you have your down payment saved. Don’t forget to factor in those other PITIA expenses mentioned above as you think about your own monthly income and cash outflow when you’re a homeowner.

Build a Budget

Once you have these costs calculated, you can then start budgeting for buying a house. You’ll want to accumulate your down payment, while taking care of current bills and other financial obligations, of course.

• Create a line item budget. You’ll want to note how much money you have coming in and how much goes out toward your needs (housing, food, medical expenses, debt repayment). Then you’ll see what’s left for your wants (think travel, dining out, clothes, entertainment) and start saving it, whether for your future home or retirement.

Don’t skimp, though, on establishing an emergency fund. In a pinch, these funds can keep you from using your credit card and running up even more debt.

• Assess where you can save more. To ramp up your savings for your house, look for ways to economize. Could you drop a subscription or two to streaming channels, or perhaps eat out less often?

Also see what you can do to avoid high-interest credit card debt, which can take a bite out of anyone’s budget. You might want to take advantage of a zero-interest balance transfer credit card offer, or investigate whether a lower-interest personal loan could help you pay off your debt and save money.

• Use automatic transfers. Help yourself hit your savings goals by automating payday transfers from checking to savings. That way, you won’t see the cash in your account and be tempted to spend more.

• Bring in more moolah. If the numbers aren’t adding up to bring your homebuying plans within reach fast enough, consider using windfalls (a tax refund, a bonus at work, a birthday gift of cash from a relative) to plump up your savings. Also think about ways to bring in more income, whether by asking for a raise or pursuing a side hustle.

The Takeaway

Budgeting for buying a house requires thinking about both short-term costs, such as a down payment, closing costs, and moving expenses, as well as long-term costs such as homeowner’s insurance and maintenance expenses. It’s wise to look at both before you pursue a mortgage preapproval or make an offer on a home.

Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% – 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It’s online, with access to one-on-one help.

SoFi Mortgages: simple, smart, and so affordable.

FAQ

How much money should you save before buying a house?

If possible, you should save enough money for a down payment on a house in the price range you’re thinking about. But you don’t need to make a 20% down payment — many homebuyers put down less, and some government programs will allow you to buy with no down payment at all. You’ll also want to have closing costs on hand (3% to 6% of the home’s price). And it’s wise to always have an emergency fund in case of an unexpected setback.

How much do I need to earn to afford a house?

How much you need to earn to afford a house depends on the housing market you’re looking in and the area’s overall cost of living. The national average salary is $63,795 and at that salary you may be able to afford a home priced at $180,000. Use a home affordability calculator to explore the numbers for your specific situation.

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 Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility for more information.

*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.

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.

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.

^¹FHA loans are subject to unique terms and conditions established by FHA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. FHA loans require an Upfront Mortgage Insurance Premium (UFMIP), which may be financed or paid at closing, in addition to monthly Mortgage Insurance Premiums (MIP). Maximum loan amounts vary by county. The minimum FHA mortgage down payment is 3.5% for those who qualify financially for a primary purchase. SoFi is not affiliated with any government agency.

^†Veterans, Service members, and members of the National Guard or Reserve may be eligible for a loan guaranteed by the U.S. Department of Veterans Affairs. VA loans are subject to unique terms and conditions established by VA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. VA loans typically require a one-time funding fee except as may be exempted by VA guidelines. The fee may be financed or paid at closing. The amount of the fee depends on the type of loan, the total amount of the loan, and, depending on loan type, prior use of VA eligibility and down payment amount. The VA funding fee is typically non-refundable. SoFi is not affiliated with any government agency.

SOHL-Q324-053

Source: sofi.com

Apache is functioning normally

September 13, 2024 by Brett Tams

Do you want to know how to save for a baby in 9 months? Having a baby is exciting and joyful, but it also brings new costs. Getting your finances ready in the months before your baby arrives can make things easier. Saving for a baby in just nine months is possible if you plan…

Do you want to know how to save for a baby in 9 months?

Having a baby is exciting and joyful, but it also brings new costs. Getting your finances ready in the months before your baby arrives can make things easier. Saving for a baby in just nine months is possible if you plan and budget well.

To get ready for these changes, you might need to change how you spend money now and save up for future costs. It’s a good time to think about where you can save and how to use your money wisely for your growing family.

Best Ways To Save for a Baby in 9 Months

Below is how to save for a baby in nine months.

1. Set a budget

The very first thing you should do if you want to learn how to save for a baby in nine months is look at your budget.

Setting a budget involves taking a good look at your current finances and figuring out how much money you’ll need to save for baby-related expenses. This will help you plan and avoid any big financial surprises.

First, you need to know where your money is going. Track all your income and spending for a month or two. Include everything like rent, groceries, utilities, health insurance, life insurance policy, and entertainment. Also, don’t forget about annual or longer-term expenses, like possibly a car insurance payment that only comes up every six months or a property tax bill.

Use a spreadsheet or budgeting app to list all your expenses. And, break down your spending into categories like housing, food, transport, and bills.

Next, review your financial statements, such as bank accounts, credit cards, and any loans. Note any areas where you might be able to cut costs. For example, can you dine out less or cancel unused subscriptions? Can you negotiate any of your bills or shop around to get a better rate?

Finally, total up your monthly income and compare this with your total expenses. This will help you see if you need to make changes to save for baby expenses.

You can learn more at How To Create A Budget That Works.

2. Calculate baby-related expenses

Now, let’s figure out how much money you’ll need for the baby. As everyone knows, having a baby can be expensive!

You can start by listing one-time larger expenses for things like a crib, stroller, and car seat. Then, there are many smaller expenses, like blankets, changing table, diaper bag, swing, rocking chair, dresser, crib mattress, and more (you don’t need everything on this list, though).

Next, think about monthly expenses such as diapers, formula, and baby clothes. And, if you plan on breastfeeding, don’t forget that there may be higher costs with that as well (many people think that breastfeeding is free, but that’s not always the case). Even if you are breastfeeding, you may have costs related to creams, pads, a breast pump, a lactation consultant, and more.

Medical costs can also add up quickly, so you will want to check what your insurance covers for prenatal and postnatal care. You will want to think about what you may have to pay out-of-pocket when/if you go to the hospital for labor, any midwives you may use, and more.

You may also want to think about childcare costs, whether it’s daycare, a nanny, or a babysitter.

Don’t forget to include potential changes in income, especially if you or your partner plan to take time off work.

And then, there are bigger-picture expenses that you may eventually want to start thinking about as well, such as college savings and starting a college fund.

Remember to adjust your budget as needed. Babies grow fast, so your spending will change. Be flexible, and update your budget to meet your baby’s needs.

3. Cut unnecessary expenses

If you need to find more money in your budget and stretch your paycheck, then I recommend looking at your current spending and finding areas where you can cut back. Every dollar saved can go toward your new baby.

Here are some ideas:

Skip eating out frequently. Cooking at home saves a lot of money. Plus, you can make extra portions for leftovers.
Evaluate your subscriptions. Do you need all those streaming services? Cancel the ones you use the least.
Stop buying expensive coffee every day. Brew your coffee at home instead. It’s much cheaper and can be just as tasty (plus, it saves you valuable time).
Limit buying new clothes. See if you can make do with what you already have or shop at thrift stores.
Avoid impulsive buys. Always make a shopping list and stick to it. This helps you avoid buying items you don’t need.
Cut down on travel costs. Save on gas by combining errands into one trip and using public transportation when possible.
Reduce utility bills. Simple actions like turning off lights and unplugging devices can lower your electricity costs.
Look for deals and coupons for groceries and household items. Many stores offer discounts that can help you save a lot.

Now, of course, not everyone will want to do everything on the list. You may want to just try one or two, or you may decide to do them all. It is personal and it all depends on how much money you want or need to save.

Every little bit helps. By cutting unnecessary expenses, you’ll free up money that can go toward preparing for your baby’s arrival.

4. Meal plan and bulk cook

One smart way to save money and reduce stress is by meal planning and bulk cooking freezer meals before your baby is born.

This strategy allows you to prepare meals in advance and freeze them, so you’ll have ready-to-eat options when you’re too busy with the baby to cook.

By buying ingredients in bulk and preparing meals ahead of time, you can save a significant amount on groceries, avoid the temptation of takeout, and make sure you’re eating well during those hectic early days of parenthood.

Plus, having meals ready to go in the freezer means one less thing to worry about as you adjust to life with a newborn.

Some easy meals that you can make ahead include:

Lasagna – A classic dish that freezes well. You can make a big batch, portion it out, and freeze it. When you’re ready to eat, just pop it in the oven.
Stir-fry – Cook chicken and your favorite vegetables with a simple sauce. Freeze in portions and serve over rice or noodles.
Chili – A hearty and versatile meal that’s easy to freeze. Make a large pot, and freeze it in individual portions. It’s perfect for quick lunches or dinners.
Casseroles – Dishes like shepherd’s pie or chicken and rice casseroles are ideal for freezing. They can be made in bulk and heated up in the oven.
Soups and stews – These are some of the easiest meals to freeze. Options like vegetable soup, beef stew, or chicken noodle soup can be made in large batches and stored in the freezer for later use.
Burritos – Assemble burritos with fillings like beans, rice, chicken, or beef. Wrap them individually and freeze. They’re great for quick, handheld meals.
Meatballs – Cook and freeze meatballs in marinara sauce. They can be served with pasta, in a sub, or as a quick protein-packed snack.
Quiche – A versatile dish that can be filled with various vegetables, meats, and cheeses. Bake, cool, and freeze for a quick breakfast, lunch, or dinner.

These meals are easy to prepare in large quantities, freeze well, and can be reheated with minimal effort – perfect for those busy days after the baby arrives.

I really wish I would have done this before I had my daughter. I think it would have been a lifesaver! I have a friend who recently had a get-together (during her pregnancy) with all of her friends and they spent all day prepping meals for her. I thought this was a wonderful idea and so sweet.

I recommend reading 15 Delicious, Easy Freezer Meals For New Moms & Dads to see more ideas.

5. Use cash back apps

Cash back apps can be a great way to save money. These apps give you a percentage of your spending back in cash or rewards.

My favorite cash back apps are:

Fetch Rewards – This is my absolute favorite cash back app, and you can get points back on ANY grocery store receipt, and then eventually turn your points into gift cards.
Swagbucks – This is a rewards site that will give you cash back as well as help you make some extra money online.
Rakuten – This is my favorite cash back site for when shopping online as almost every store is listed on this website.
Upside – This app is a great way to get cash back on your gas purchases.
Honey – This app is great for online shopping and coupon codes.

Cashback apps can make a difference. Every little bit adds up when you are preparing for a baby.

6. Buy secondhand baby gear

One of the best ways to save money when preparing for a baby is to buy secondhand baby gear. Babies grow quickly and tend to use items for only a short time. This means you can find gently used gear at a fraction of the cost.

And, you can often find high-quality brands that are built to last when shopping secondhand! Baby strollers, cribs, and high chairs are usually available in good condition if you shop around. Make sure you inspect these items carefully for any damage or missing parts.

Shopping for used baby clothes can also save you a lot of money. Babies outgrow clothes so fast that you can often find barely worn outfits at thrift stores or online marketplaces.

You can find secondhand baby items at places like thrift stores, online marketplaces, and even through friends and family.

Some of the most popular ways to find used baby gear include:

Once Upon a Child
Goodwill
Salvation Army
Poshmark
Facebook Marketplace
Buy Nothing groups on Facebook
Local parent groups on Facebook – I’m a part of a local mom group in my area, and moms are always giving away free things, such as strollers, clothes, diapers, and more.

7. Find ways to make extra money

There are many ways to make money while preparing for a baby.

Here are some ideas:

Freelancing – You can freelance in areas like writing, graphic design, proofreading, or social media management.
Selling unused items – Go through your home and sell items you no longer need, like clothes, electronics, or furniture. Platforms like eBay, Poshmark, and Facebook Marketplace make it easy to sell your items locally or online.
Taking online surveys – Answer online surveys through platforms like Swagbucks, Survey Junkie, or Branded Surveys. While not a huge income, surveys can help you make some extra cash or gift cards that can be used for baby-related expenses.
Providing babysitting or pet sitting services – If you have experience with kids or pets, you may want to babysit or pet sit. Websites like Care.com, local Facebook groups, and Rover can help you find clients.
Starting a side hustle – You may want to try starting a small side business, like selling printables on Etsy, blogging (this is what I do so that I can work from home!), or bookkeeping. A side hustle can grow into a steady source of income over time.

You can learn more at 16 Best Jobs for Pregnant Women.

8. Find cheap or free diapers

Diapers can be one of the biggest expenses for a new parent. Buying them on sale or even finding them for free is a smart way to save money.

Some ways to get free or cheap diapers include:

Ask in a Buy Nothing group on Facebook – Join local groups where people give away items they no longer need, including diapers.
Join rewards programs – Sign up for programs like Pampers Club or Huggies Rewards to earn points that can be redeemed for free diapers.
Sign up for diaper coupons – Register on diaper brand websites to receive coupons and promotions via email.
Check online marketplaces – Look for free diapers on Craigslist, Facebook Marketplace, and Freecycle.
Visit local diaper banks – Access free diapers through local community organizations or diaper banks.
Apply for government assistance – Explore programs like TANF that may offer diaper allowances.
Use the National Diaper Bank Network – Find a nearby diaper bank through this network’s resources.
Reach out to nonprofit playgroups – Connect with local playgroups that provide free diapers to families in need.
Add diapers to your registry – Include diapers on your baby registry or create a diaper fund for your baby shower.
Use cloth diapers – Save money by using reusable cloth diapers instead of disposable diapers.

I recommend reading How To Get Free Diapers: Free Diaper Boxes, Samples, Coupons to learn more.

9. Build an emergency fund

An emergency fund is a savings account for unexpected expenses. This might include medical bills, car repairs, or sudden job loss.

This is something that I highly recommend having because it will help to lessen your stress level a little bit once the baby comes. This money gives you peace of mind when life throws you a curveball.

I recommend that you aim to save enough to cover 3 to 6 months of living expenses. But, you should definitely start small if you need to. Setting aside $1,000 is a good first goal. Even a little cushion can prevent you from going into debt.

Then, save what you can each month. Even small amounts add up over time, and this makes your emergency fund grow slowly and steadily. If you get a tax refund, use it to increase your emergency fund. Extra money can help you reach your goal faster.

And, keep your emergency fund in a separate savings account. It should be easy to access but not too easy to spend.

I personally use Marcus by Goldman Sachs for my emergency fund as they have a very high rate. You can get up to 4.40% at the time of this writing through a referral link bonus. According to this high-yield savings account calculator, if you have $10,000 saved, you could earn $440 with a high-yield savings account in a year. Whereas with normal banks, your earnings would only be $46. That’s a big difference!

Building an emergency fund takes time, so be patient. Consistency is key and I recommend that you keep contributing whenever you can.

Frequently Asked Questions

Saving for a baby can be tough, but it’s doable with the right plan. Here are some common questions and helpful tips to guide you as you get your finances ready for your new family member.

What are the top ways to save money for my baby’s first year?

To save money for your baby’s first year, I recommend that you find ways to cut unnecessary expenses wherever you can. Try meal planning and bulk cooking to save on food, use cash back apps to get some money back on purchases, and find ways to make extra money.

How much to save for baby’s first year?

Deciding how much to save for your baby’s first year is hard. You can expect to spend on things like diapers, formula (or breastfeeding items), and baby gear. Diapers and wipes might cost around $50 to $100 per month. Formula can add another $100 to $150 each month. Also, include costs for clothes, toys, and medical bills.

What to do if not financially ready for a baby but pregnant?

If you are not financially ready for a baby, but you are currently pregnant, there are things that you can do. I recommend that you reach out to community resources or government assistance programs for help as many areas give free or low-cost baby supplies. You can also ask friends and family for hand-me-downs. Start saving whatever you can now; even small amounts help.

Is 9 months enough time to prepare for a baby?

Yes, nine months can be enough time to prepare for a baby. Start by making a plan and budget right away. Cut back on unnecessary spending, use this time to save as much as you can, and look for deals on baby items.

How expensive is having a baby?

Having a baby can be expensive. The first year alone can cost several thousand dollars. Baby gear, diapers, formula, and medical bills add up quickly. Planning, budgeting, and finding ways to save can make these costs more manageable.

How To Save for a Baby in 9 Months – Summary

I hope you enjoyed this article on how to save for a baby in nine months.

Getting ready financially for a baby in nine months might feel like a lot, but with some planning, it can be doable.

By making a budget, cutting out extra spending, and thinking ahead about baby costs, you can save a good amount of money before your baby comes. You can save even more by planning meals, cooking in bulk, using cash back apps, and buying used baby items.

Every bit of savings helps, and by starting now, you’ll be more prepared to welcome your baby without worrying about money.

What do you think are the best ways to save for a baby in 9 months?

Recommended reading:

Source: makingsenseofcents.com

Apache is functioning normally

September 10, 2024 by Brett Tams

Doom spending is spending money to cope with stress when the future seems uncertain or troubling, such as when the economic or political outlook appears grim. For example, a person might be feeling anxious about how high their housing costs are and what will happen in an upcoming election. To distract themselves from these worries, they might splash out on a special sushi dinner, concert tickets, or new clothes. The thinking here? “What’s ahead looks dicey; I might as well enjoy myself now.”

If you can relate to this, read on to learn more about the causes of doom spending and how not to let it harm your financial standing.

Key Points

• Doom spending is when individuals spend money to cope with stress and anxiety about the future, such as a gloomy economic or political outlook.

• A significant portion of Americans, especially the younger Gen Z and millennial generations, engage in doom spending.

• Psychological triggers for doom spending may include stress, anxiety, impulse control issues, and societal and peer pressure.

• Doom spending can lead to increased debt and reduced savings, negatively impacting financial stability.

• Strategies to break the cycle of doom spending may include creating and sticking to a budget, setting up automatic savings transfers, and seeking alternative stress relief methods.

Understanding Doom Spending

Doom spending is a phenomenon in which people may overspend in response to stressful times. For instance, when the world is filled with political and economic uncertainty, consumers (especially younger ones) may feel there’s no point in saving. A voice inside their head may ask, “Why bother?” Instead, they decide to live in the moment and go shopping as a distraction and mood lifter.

A November 2023 survey by Qualtrics on behalf of Credit Karma found that 27% of all Americans engage in doom spending, and it’s especially prevalent among younger adults. In fact, 43% of millennials and 35% of Gen Zers admit they have spent money in this way.

Financial experts say these generations may be especially vulnerable to feelings of hopelessness and doom spending, as they came of age in a time of economic uncertainty and are living in an era with high housing costs, massive student debt, and considerable inflation (consumer prices rose approximately 20% between January 2020 and January 2024). Many may find that they currently have a lot less in their bank accounts that they’d like.

While there is nothing wrong with occasional rewards, doom spending can result in credit card debt and a reduced ability to save for the future. In the Qualtrics/Credit Karma study, about one-third of Americans reported an increase in debt in the past six months, and nearly half said the amount of money they’re saving has gone down.

Recommended: What Are Fixed vs. Variable Expenses?

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Psychological Triggers Behind Doom Spending

Here’s a closer look at some of the causes of doom spending.

Stress and Anxiety

Stress and anxiety can trigger doom spending, and there’s little doubt that they are rampant right now. According to the American Psychological Association (APA), many people in the U.S. have been negatively impacted by the trauma of the pandemic, global conflict, racial injustice, inflation, and environmental challenges around us. All of those issues can swirl together and create a feeling of future doom.

According to a June 2024 Axios Vibes/Harris Poll survey, a majority of millennials and Gen Zers agree that it is better to treat themselves now rather than hold off for a future “that feels like it could change at any moment.”

Impulse Control Issues

Shopping can bring joy in a few different ways. Research has shown that purchasing an item you desire can empower you with a sense of control. It can also flood your brain with dopamine, a “feel good” neurotransmitter.

When people feel that the future is gloomy, they may crave that “feel good” flood even more and, therefore, easily give in to impulse purchases. Spending money in this way can be a relief and a release. It’s a distraction that lets you treat yourself and temporarily escape your worries.

Societal and Peer Pressure

Social media can exacerbate doom spending by driving you to spend money to “keep up with the Joneses.” It can also lead to FOMO (fear of missing out) spending and YOLO (you only live once) spending.

Because the future seems cloudy and so expensive, you may not bother to plan for it. Instead, you might follow a friend’s, coworker’s, or social media influencer’s lead and spend money on the latest trendy purchase or experience. It can create a feeling of belonging and help you escape all the doom-driven anxiety.

Recommended: Financial Planning Tips for Young Adults in Their 20s

Consequences of Doom Spending

The consequences of doom spending can be mild or more significant, but typically include the following:

• Blowing your budget. Additional spending can make it hard to stick to a budget. If you’re buying more non-essentials, you may come up short when it’s time to make your student loan payment. Or you might have to stop contributing to your retirement plan so you can make ends meet.

• Credit card debt. Credit card debt in the U.S. reached a record high in the second quarter of 2024 (hitting $1.142 trillion). That’s a whole lot of swiping and tapping going on, and doom spending may be a contributing factor. Shopping with credit cards can feel as if purchases don’t cost anything since no hard cash changes hands. But if you go overboard with doom spending, you may get an eye-watering bill. Given today’s ultra-high credit card interest rates (currently averaging over 20%), it can be hard to get out from under credit card debt once it starts racking up.

• Ability to save. When you spend money on fun treats and impulse purchases to relieve stress and buoy your spirits, it may well be “borrowed” from money you were going to save. Whether those dollars were earmarked for an emergency fund, retirement account, the down payment on a house, or other purpose, doom spending can set you back in terms of your short- and long-term financial goals.

• Increased stress. Knowing that you’ve overspent can heighten the anxiety you are already feeling. Many people feel guilty about spending money, and a doom-triggered spending spree can create more worries about your financial future.

Strategies To Manage and Prevent Doom Spending

If you’ve been doom spending (or tempted to), these strategies can help you reign in the impulse.

Setting a Budget

A good budget helps organize your money and keep your spending on track; it can provide guardrails for how your income will be spent and saved. There are many different types of budgets, so you may need to experiment to find the method that works best for you. One popular approach is the 50/30/20 budget rule, which says that 50% of your take-home pay should go to needs, 30% to wants, and 20% to savings and/or additional debt payments. With a budget like this in place, you know just how much (30%) can go toward fun expenditures and can stick to that figure.

Once you determine how much you want to put towards savings each month, it’s a good idea to set up an automated transfer from your checking account to your savings account for the same day each month (perhaps right after you get paid). That way, the money gets whisked away and won’t sit there, tempting you to spend it.

You can set a budget and track your spending with pen and paper, or you might want to download a budgeting and spending app to your phone to simplify the process.

Self-Control Techniques

Being aware of what triggers you to doom spend can help you stop. For example, if you know you tend to shop on Sundays when you start feeling anxious about the week ahead and life in general, fill your calendar. You might set up a standing date to go walking or running with a friend or take on a volunteer gig or side hustle so you are too busy to spend.

Many people impulse buy online or on social media. If you tend to overspend in this way, consider disabling one-click shopping. It’s also a good idea to delete your credit card details from your devices — that way, it won’t be so easy to mindlessly spend while scrolling.

Recommended: How to Stop Spending Money

Seeking Professional Help

If you feel your doom spending isn’t yielding to the above techniques, you might want to enlist the help of a professional. A financial planner could help with budgeting or a therapist could guide you to uncover and address the emotional aspects of your spending.

A financial therapist could also be helpful. They merge money know-how and an understanding of human behavior to resolve issues such as doom spending.

The Takeaway

Doom spending is a way of coping with stress by spending money. When you feel as if the world is uncertain and anxiety-provoking, you may find relief by shopping. But this can negatively impact your finances and create more money worries. Fortunately, there are several strategies that can help you control doom spending and stick to a budget.

The right banking partner can also help by giving you tools to help you track and grow your money.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.

Better banking is here with SoFi, NerdWallet’s 2024 winner for Best Checking Account Overall.* Enjoy up to 4.50% APY on SoFi Checking and Savings.

FAQ

What are the common signs of doom spending?

Common signs of doom spending include:

• Making impulsive purchases in response to feeling stressed or anxious about the future

• Feeling temporary relief or pleasure after spending but later regretting the purchase

• Frequently buying things you don’t need

• Neglecting to save for the future

How can I break the cycle of doom spending?

Here’s a look at some strategies that can help you break the cycle of doom spending:

• Create a monthly spending budget.

• Set up a recurring monthly transfer from checking to savings.

• Uncover your spending triggers and work to avoid or eliminate them.

• Practice mindful spending by pausing before each purchase and assessing if it’s truly necessary.

• Seek alternatives for stress relief, such as exercise or hobbies, to replace spending as a coping mechanism.

• Work with a financial advisor or psychologist/therapist

Are there tools or apps to help manage spending habits?

Yes, there are a number of online tools and apps that can help you manage your spending habits, set up a budget, and monitor financial goals. Popular options include YNAB (You Need a Budget), Goodbudget, and EveryDollar. You might also check with your bank to see what tools they offer to track and organize your finances.

Photo credit: iStock/YakobchukOlena

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As an alternative to direct deposit, SoFi members with Qualifying Deposits can earn 4.50% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Qualifying Deposits means one or more deposits that, in the aggregate, are equal to or greater than $5,000 to an account holder’s SoFi Checking and Savings account (“Qualifying Deposits”) during a 30-day Evaluation Period (as defined below). Qualifying Deposits only include those deposits from the following eligible sources: (i) ACH transfers, (ii) inbound wire transfers, (iii) peer-to-peer transfers (i.e., external transfers from PayPal, Venmo, etc. and internal peer-to-peer transfers from a SoFi account belonging to another account holder), (iv) check deposits, (v) instant funding to your SoFi Bank Debit Card, (vi) push payments to your SoFi Bank Debit Card, and (vii) cash deposits. Qualifying Deposits do not include: (i) transfers between an account holder’s Checking account, Savings account, and/or Vaults; (ii) interest payments; (iii) bonuses issued by SoFi Bank or its affiliates; or (iv) credits, reversals, and refunds from SoFi Bank, N.A. (“SoFi Bank”) or from a merchant. SoFi members with Qualifying Deposits are not eligible for other SoFi Plus benefits.

SoFi Bank shall, in its sole discretion, assess each account holder’s Direct Deposit activity and Qualifying Deposits throughout each 30-Day Evaluation Period to determine the applicability of rates and may request additional documentation for verification of eligibility. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the “30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Upon receiving a Direct Deposit or $5,000 in Qualifying Deposits to your account, you will begin earning 4.50% APY on savings balances (including Vaults) and 0.50% on checking balances on or before the following calendar day. You will continue to earn these APYs for (i) the remainder of the current 30-Day Evaluation Period and through the end of the subsequent 30-Day Evaluation Period and (ii) any following 30-day Evaluation Periods during which SoFi Bank determines you to have Direct Deposit activity or $5,000 in Qualifying Deposits without interruption.

SoFi Bank reserves the right to grant a grace period to account holders following a change in Direct Deposit activity or Qualifying Deposits activity before adjusting rates. If SoFi Bank grants you a grace period, the dates for such grace period will be reflected on the APY Details page of your account. If SoFi Bank determines that you did not have Direct Deposit activity or $5,000 in Qualifying Deposits during the current 30-day Evaluation Period and, if applicable, the grace period, then you will begin earning the rates earned by account holders without either Direct Deposit or Qualifying Deposits until you have Direct Deposit activity or $5,000 in Qualifying Deposits in a subsequent 30-Day Evaluation Period. For the avoidance of doubt, an account holder with both Direct Deposit activity and Qualifying Deposits will earn the rates earned by account holders with Direct Deposit.

Members without either Direct Deposit activity or Qualifying Deposits, as determined by SoFi Bank, during a 30-Day Evaluation Period and, if applicable, the grace period, will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances.

Interest rates are variable and subject to change at any time. These rates are current as of 8/27/2024. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet.

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SOBNK-Q324-033

Source: sofi.com

Apache is functioning normally

September 10, 2024 by Brett Tams

The Offer

Direct Link to offer (scroll down)

Barclays is offering increased bonuses on all three Wyndham cards of up to 80,000 points. The offers are as follows:
- Earner Rewards: Earn 45,000 bonus points after spending $2,000 on purchases in the first six months.
- Earner+ Rewards: Earn 75,000 bonus points after spending $2,000 on purchases in the first six months.
- Earner Rewards Business: Earn 40,000 bonus points after spending $4,000 on purchases in the first 90 days and earn 40,000 bonus points after spending $15,000 on purchases within the first 12 months.

Card Details

Earner Rewards:
- No annual fee
- Card earns
  - 5x points at Wyndham properties and on qualifying gas purchases
  - 2x points on eligible dining and grocery purchases
  - 1x points on all other purchases
- Automatic Wyndham gold status
- 10% discount on go free awards
- Anniversary bonus of 7,500 points after you spend $15,000 on eligible purchases
Earner+ Rewards:
- Annual fee of $75, not waived first year
- Card earns
  - 6x points at Wyndham properties and on qualifying gas purchases
  - 4x points on eligible dining and grocery purchases
  - 1x points on all other purchases
- Automatic Wyndham platinum status
- 10% discount on go free awards
- Anniversary bonus of 7,500 points
Earner Business:
- $95 annual fee
- Card earns
  - 8x points at Wyndham properties and on qualifying gas purchases
  - 5x points on marketing, advertising and utilities
  - 1x points on all other purchases
- Annual fee of $95, not waived first year
- Automatic Wyndham Diamond status
- 10% discount on go free awards
- Anniversary bonus of 15,00 points

Our Verdict

Not nearly as good as the 100,000 point offers. Given that was available so recently I’d recommend waiting for a higher offer to return unless you have an immediate need for the points. We won’t be adding these offers to our list of the best credit card bonuses.

Source: doctorofcredit.com

Apache is functioning normally

September 10, 2024 by Brett Tams

A substitute check is a legal copy of a check created by a bank from a digital image of the original check. Creating substitute checks allows banks to process checks electronically instead of sending paper checks through the system, which speeds up the process and cuts costs.

Not all copies of checks qualify as substitute checks, though. The images of checks you may get with your bank statement are not substitute checks; nor are the photos you take of a check when making a mobile deposit. As a result, substitute checks are often a source of confusion to consumers. Here, we shed light on what substitute checks are, how they work, and what happens to the original checks you write or deposit into your account.

Defining a Substitute Check

A substitute check is a special copy of an original check that contains all of the same information, including signatures, dollar amount, account numbers, and the MICR (magnetic ink character recognition) line. Banks create these checks by using high-speed scanners that capture the front and back of the original check. These checks are good for the same amount of time as the original check.

Once generated, the substitute check can be sent electronically to the payer’s bank. This process is faster than the old method of physically transporting paper checks. If a paper check is needed for certain processing or record-keeping purposes, a substitute check can be printed from that electronic image.

Banks can use photos of an original check to make a substitute check. But in order to be valid, the duplicate must be made by the bank. When you create an image of a paper check to complete a mobile check deposit into your bank account, your financial institution converts those images into a substitute check using their check-processing software platform.

Recommended: Guide to Outstanding Checks

Substitute Checks vs. Original Checks

A substitute check looks similar to the original but has a few differences: It will be slightly larger than the original and the front of the check will feature this statement: “This is a legal copy of your check. You can use it the same way you would use the original check.”

While substitute checks look somewhat different from the original checks, they are considered legally equivalent. This means that banks are no longer required to keep the original physical checks, as long as they have an authorized substitute check. In some cases, a bank will destroy original paper checks right away; in others they will store original checks for a set period of time and then destroy them.

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Legality and Usage of Substitute Checks

The Check Clearing for the 21st Century Act (often referred to as the Check 21 Act) authorized the use of substitute checks when it was passed in 2003. The act was designed to improve the efficiency of the check-clearing process by allowing banks to use electronic images of checks instead of physical paper. This legislation aimed to reduce costs, expedite check processing, and minimize the risks associated with transporting paper checks.

Thanks to the Check 21 act, checks now typically clear within one or two business days, providing faster access to funds for consumers and businesses. Due to the swift processing speed for checks, you want to be certain you have sufficient funds in your checking account before writing a check.

When Substitute Checks May Be Used

Banks use substitute checks to facilitate the check-clearing process, as these checks are accepted as legal tender by other financial institutions. While account holders typically don’t use substitute checks to make payments, they can be used as proof of payment. Upon request, your bank can provide you with a substitute check. They may provide one for free or it may involve a fee.

Recommended: Where to Cash a Check Without Paying a Fee

Advantages of Using Substitute Checks

Here’s a look at two of the main benefits of using substitute checks.

Faster Processing of Check Transactions

One of the biggest advantages of using substitute checks is that it allows for more convenient and faster processing of check transactions. Instead of having to send, track, and store the physical checks, banks can use electronic images of substitute checks to facilitate payments.

Easier Handling of Electronic Check Images

Substitute checks make it easier for banks and businesses to manage large volumes of checks without the need to physically transport or store them. Electronic check images can be transmitted, retrieved, and stored more efficiently than paper checks. This digital approach improves record-keeping and reduces the chances of checks getting lost or damaged. If a paper check is required for legal or practical reasons, a substitute check can be printed on demand from the stored image.

Potential Drawbacks of Substitute Checks

While substitute checks benefit banks and customers alike, they come with a few potential drawbacks. Here are two downsides to consider.

Authenticity Concerns

Since substitute checks are created from electronic images, it may be harder to verify their authenticity compared to original paper checks. While the Check 21 Act includes measures to ensure that substitute checks are legally valid, there is still the possibility of errors and check fraud. An inaccurate or altered image could lead to disputes or financial losses. In rare cases, fraudulent substitute checks may be used to manipulate transactions or deceive people.

Readability Issues

The process of converting a check into a digital image and then printing a substitute check may result in a lower-quality reproduction. In some cases, the substitute check may be difficult to read, especially if the original check had poor handwriting, smudges, or damage. This can lead to errors in processing or disputes if the substitute check cannot be interpreted accurately.

Handling Substitute Checks as a Consumer

Since substitute checks are now commonplace, you may occasionally encounter them in your banking activities. As a result, it’s important to understand your rights regarding substitute checks and how to handle any issues that may come up.

Your Rights Regarding Substitute Checks

Under the Check 21 Act, substitute checks are considered legally equivalent to original checks, which means that consumers and businesses can use them as proof of payment or for other legal purposes.

If you experience any errors or problems related to a substitute check (such as a discrepancy in the check amount or a transaction that appears incorrect), you have the right to file a dispute with your bank. The bank is required to investigate the issue and either correct the error or explain why the substitute check is valid.

Disputing Errors Involving Substitute Checks

If you notice an error involving a substitute check, such as an incorrect amount being withdrawn from your account or money being withdrawn for a check more than once, it’s important to contact your bank as quickly as possible. The bank is obligated to investigate and respond to your dispute within a reasonable timeframe. In some cases, you may be entitled to a refund if the substitute check was processed incorrectly, including any fees that may have been charged as a result of the error (such as a bounced check or non-sufficient funds fee) or any lost interest.

The Takeaway

Substitute checks have revolutionized the way checks are processed, making transactions faster and more efficient. By allowing physical checks to be converted into digital images and then reproduced as substitute checks, the Check 21 Act has modernized the check-clearing process.

While substitute checks look slightly different from original checks, they are considered the legal equivalents. If you have any concerns about a substitute check, or if you feel any errors were made in processing a check, it’s important to contact your bank.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.

Better banking is here with SoFi, NerdWallet’s 2024 winner for Best Checking Account Overall.* Enjoy up to 4.50% APY on SoFi Checking and Savings.

FAQ

What is the difference between a substitute check and an electronic check?

A substitute check is a copy of a check used by banks in place of the original. While a substitute check is usually processed electronically, it is not the same as an electronic check. An electronic check (e-check) is a completely digital version of a check where no paper copy exists. E-checks are processed electronically from start to finish, without any physical checks involved.

Are substitute checks legally valid as proof of payment?

Yes, substitute checks are considered the legal equivalent of the original check and contain all the essential information, including the check number, account information, and payer/payee details. Because substitute checks are considered the equivalent of original checks, they can be used in disputes, for record-keeping purposes, or as evidence of payment.

Can a substitute check be used in place of the original check?

Yes, a substitute check can be used in place of the original check. Under the Check 21 Act of 2003, a substitute check is considered legally equivalent to the original and can be used for all the same purposes, such as clearing transactions, providing proof of payment, or resolving disputes.

Photo credit: iStock/payphoto