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Buying a new designer item is quite the rush, but finding a high-end look for less is a whole new level of thrilling. And while Target is the ideal spot to shop for cleaning supplies, storage solutions and household essentials, it isn’t always easy to parse through the massive selection of clothing, accessories, furniture and decor. It just so happens, though, that this retail treasure hunt is one of our all-time favorite activities.
Target has more than 45 private labels and knowing which ones to shop is the best place to start. When it comes to apparel, jewelry and bags, A New Day is our go-to pick for classic, elevated closet staples.
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For modern farmhouse furniture, decor and kitchen accessories, it doesn’t get much better than celebrity design duo Chip and Joanna Gaines’ Target-exclusive home and lifestyle brand Hearth & Hand With Magnolia.
Two other favorites are Threshold designed with Studio McGee by designer Shea McGee and Opalhouse designed with Jungalow by designer Justina Blakeney.
With this in mind, we rounded up 20 luxe Targé finds that look like they’re from the biggest high-end retailers. From on-trend handbags and chunky earrings to marble catchalls and carved ceramic vases, check out our top Target fashion and home finds that appear ten times more expensive than they actually are.
The Best Target Fashion Finds
A New Day Woven Slouchy Shoulder Handbag
Also available in beige and coral orange, this shoulder bag is simultaneously on-trend and timeless.
Wild Fable Elsa Mary Jane Ballet Flats
These are also available in tan mesh with sparkles. (Check out all our favorite mesh ballet flats here.)
A New Day Pearl Drop Earrings
An easy way to elevate any summer soirée look.
A New Day Nina Slide Sandals
These sandals epitomize versatility.
A New Day Large Boxy Tote Handbag
This easy tote is the perfect work or travel bag.
A New Day 14K Gold Plated Paperlink Chain Necklace
A dainty everyday necklace you can totally dress up.
A New Day Modern Work Tote Handbag
The definition of effortlessly chic.
A New Day Tamara Strappy Heels
Strappy heeled sandals are the party shoe of the summer.
The Best Target Home Finds
Threshold Designed With Studio McGee Ceramic Vase
$24.50 $35 30% off
This ceramic vase will make the prettiest addition to your coffee table, dining area or kitchen.
Cortney’s Collection Crosby Bouclé Swivel Chair
Bouclé never goes out of style, and this under-$500 model rivals the high-end versions.
Threshold Designed With Studio McGee Marble Taper Candle Holder
$14 $20 30% off
This looks just as good with or without taper candlesticks inside.
Threshold Designed With Studio McGee Clarkdale Channel Tufted Ottoman
Threshold’s sculptural ottoman is also available in olive velvet and white bouclé.
Nuloom Natural Sheepskin Area Rug
$105.29 $228 54% off
This ultra-plush rug is handmade from 100-percent natural sheepskin wool.
Threshold Designed With Studio McGee Toronto Marble Dish
You can truly never have enough trinket dishes. This would also make the most gorgeous gift.
Standard Textile Home Cashmere Reversible Throw
$109.99 $125 12% off
Where else can you find a cashmere blanket for under $100?
A New Day Leather Jewelry Organizer
Store your jewelry in this woven leather box with a divided removable tray and perforated sections to hold earrings.
Threshold Designed With Studio McGee Ceramic Table Lamp
The sleek linen shade beautifully juxtaposes the textured ceramic base.
Hearth & Hand With Magnolia Round Stripe Braided Jute Rug
This circular jute rug is giving major Serena & Lily energy.
Hearth & Hand With Magnolia Footed Wood Serving Trivet
The most charming way to serve bread, pastries and desserts.
Hearth & Hand With Magnolia Marble Salt and Pepper Shakers
Take your tablescape up a couple notches with this three-piece mixed-material salt and pepper shaker set.
Constantly feeling tired and lazy? There might be more than meets the eye. One Reddit user shared with the Reddit community how she struggled with extreme laziness and how she didn’t want to do anything with her life—even the simplest things.
Here’s an excerpt of the OP’s problem:
“I (32f) am the laziest person I know. It’s a huge problem and I know I need to fix it. I just don’t know how. Aside from relying on motivation (which I don’t have) to get me off my a-, I have no idea what I’m meant to do.
“I’ve always been this way, for as long as I can remember. As a kid/teen my parents would refuse to come into my room because it was such a mess. They would eventually force me to clean it up. After it was all clean, my mum would say to me, ‘Doesn’t it feel good to have a tidy room and actually have accomplished something?’. But I would never feel ‘good’ for having done it, just exhausted from the effort.
I think that’s part of the issue; I have never got a ‘good feeling’ from finishing or accomplishing something. Not from small things, like cleaning or meeting gym goals or work targets, etc. Not even for big things, like scoring 97% in an exam or getting a new job. It just doesn’t happen for me. I don’t know if I’m the weird one or if my mum exaggerated this ‘good feeling’ that people get but I have no clue what it’s even supposed to feel like.
“And my laziness just keeps getting worse. I’ve lost out on money (that I can’t really afford to lose) by not returning clothes that don’t fit because going back to the shop is too much effort. Once I ordered something online that got rerouted to a collection point (less than a 10 minute walk from my house). It was non refundable. I never collected it. Picking it up was too much effort so I just accepted that I would lose the money. I have wasted money on takeout when I have food in the fridge because I can’t be bothered cooking. I’ve bought disposable plates because I have no clean ones left but I’m too lazy to do the dishes.”
Is it just the lack of motivation, discipline, and accountability, or is it more than that? Here’s what the Reddit community says!
1. Executive Dysfunction
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One person said, “Sounds like executive dysfunction, which is super common with depression, anxiety, and ADHD. You may wanna get checked out if you can.”
The second person replied, “Came to say this: OP, get evaluated ASAP. I identify with so much of what you said and recently found out I had ADHD. I’ve done a 180 since beginning treatment involving both behavioral aspects and meds. It’s taking time to build the habits, but it’s a totally different worldview now.”
Then somebody else agreed who also feel the same, “This. It’s usually not just laziness. I feel ‘lazy’ when I’m off ADHD meds.”
2. See if You Have ADHD or Ptsd
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Somebody commented with some helpful tips to help OP, “You might also want to look into ADHD or PTSD. Both can lead to this awful feeling of WANTING to do things but feeling unmotivated, even if you think they are things that will bring joy. Here are a couple tricks I use:
“Sometimes I try to do something in an odd way to get a bit of dopamine (I’m going to hop to the kitchen or stand up and pat my head three times, etc. to jolt myself out of those periods where I’m ‘stuck’.
“I also gamify things (loads of digital apps and websites like Chore Wars) or I write a list of tasks on a loot box (I play DD and you can get mini figure loot boxes, I find it has to be something I’m excited about but don’t know what’s in it, so loot boxes are perfect). If I do all the things on the list, I get the loot box.
“I’ve also been working on mindfulness, just focusing deeply on the action at the moment and not how overwhelming the whole action is. As a messy person, I’ve had to ask for help getting my space to ground zero, and now I work on it. When I leave a room, I challenge myself to clean the space I left in 20 seconds.
“Since you like books, try audiobooks while you do chores. Assign a book to each chore. Only way to get further in the book is to do the chore. Do the things that should bring you joy, even if they don’t until they do. I read that in an ADHD book, its frustrating when things we love don’t bring us joy. But the advice is to do it anyway, and eventually, that joy comes back.
“Get an occupational therapist. Mine was cheap and gave me lots of tricks to manage this stuff and also I had to call him and be accountable each week. If you can’t afford that, set up a weekly call with a family member where you discuss your goals and are held accountable.
“Finally, involve other people! Sign up for a class in the mornings so the guilt motivates you to go. Schedule a weekly morning walk with a friend. Let your family know you are overwhelmed and stuck and ask if they can come over to help you reset your space. Hope something here helped.”
3. The Secret Is Discipline and Consistency
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“Motivation only carries so far. You need discipline and consistency. I know this because I have the same problem. Set schedules for things; I study at 7 am, work out at 8, work, practice guitar, etc. Some days you really won’t want to but getting into the habit is important.
“There are two options: either you are content with your lifestyle and won’t change it, or you’re so unhappy that you are willing to do anything to change it. Figure that part out and the rest will come together,” shared somebody.
“This much executive dysfunction sounds extreme for a willpower problem; it might be a medical thing,” replied another.
“She won’t have discipline for things she absolutely doesn’t care about. I can be a bit lazy but I still make my bed or wash my sheets or floor because I love the way it looks and feels. She feels no joy from it and should probably look into why she gets no joy or satisfaction from having a clean room, etc.; that’s not really normal and possible depression,” added another with a different view.
4. Get Yourself Checked or Get Out of Your Comfort Zone
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Somebody commented, “Many people who have chronic depression, autism, or ADHD show signs of ‘laziness’—you mention you suffered depression previously and know what it feels like, then you went on to mention your mood. Do you realize that depression often has no mood-related symptoms? It doesn’t feel ‘sad’ oftentimes. It feels like exhaustion and laziness—exactly what you described. However, if you’re unwilling to even entertain the idea, then look into autism and ADHD instead.
“Another factor is need. People are capable of incredible things when necessitated, but if you’re comfortable and the people around you have allowed you not to do things that require significant effort, then you likely have no reason to push yourself. If you feel the issue isn’t related to an illness or disorder, then get out of your comfort zone and put yourself in an uneasy situation.”
5. Start Small Until It Becomes a Habit
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“I am in the same boat. Here is what I try to do: (1) I do 1 task I don’t like per day. Don’t try to do them all on the same day. (2) Basic hygiene is very important should be done everyday. (3) I try to give myself rewards on Monday and Friday. Monday would be like buying myself a really good coffee before work and on Friday I would be eating out instead of making a lunch.
“I can talk to you about depression, discipline, and all that. But all of those never stuck in my brain. The answer is to start small and keep track of what you do. I like to make a to do list and just looking at the end of the week and what I have accomplished motivates me to do more. I think we are not made to find happiness every day or in everything we do. So need to take it when we can,” shared somebody.
“I second this! Start slow. Pick one section of your house, the bathroom, the living room, and just clean that section only. Set a timer and see how much you can do in 5-10 minutes, then reward yourself with TV or a snack. The next day, another 5-10 minutes. Make a list, cross things off. It’s not easy, but please be kind to yourself. You may not be depressed, but the drudgery of life can definitely get to you,” agreed the second person.
6. It’s Not Your Identity
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One user said, “First, and most importantly, stop using it as an identity marker. This goes for anything you want to overcome. When you say, ‘I am lazy,’ your mind reinforces that identity. Instead, say, ‘I’m working my lazy behavior. See how the language separates you from it? Even better, say something like, ‘I’m working on getting more things done.’ That’s more positive and affirming, and it focuses your mind in that direction.”
7. Start With the Two-Minute Rule
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“Start with the 2-minute rule. As soon as you think of something you need to do that takes 2 minutes or less, you top what you are doing and get it done. Don’t wait for the TV commercials, don’t wait for the YouTube video you’re watching to end, just do it. This will start to strengthen your self-control,” stated somebody.
8. Set a Timer for 20 Minutes
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Somebody said, “I set a timer for 20 minutes every night. I then challenge myself to see how much I can clean. When you first start, it may feel like you’re not accomplishing much but eventually you’ll find yourself searching for things to clean.”
9. Put Yourself in a “Swim or Sink” Situation
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“Put yourself in a ‘sink or swim’ situation … I was never really ‘lazy’ per se but when my parents kicked me out at 26 for doing fraud with their credit cards I had to make it on my own. I slept in my old a- truck with an expired registration at night, took my showers in a gym, and survived mostly on microwaved food at convenience stores. I had to work my a- off to get to where I’m at now. I’m a homeowner, have paid off two vehicles since then and I still work two jobs and consistently save and invest portions of my income,” shared somebody.
10. Get Yourself Accountable
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Somebody said, “You behave the way you do because you’ve not yet encountered a consequence important enough for you to behave differently. It sounds like no one or nothing in your life is holding you accountable to behave differently, and you’re not choosing to hold yourself accountable, so I don’t think you’re going to change. If you were well and truly disgusted with your own behavior, you would change it.”
What do you think the OP should do? Have you struggled with the same? Let us know in the comments!
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Source: Reddit
10 Actors Perfectly Cast for Their Character Roles
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Have you ever watched a movie or show and been completely lost in it because of how well an actor or actress became their character? Check out this article for a whole list of actors who were perfectly cast!
11 Vampire Movies That Will Make You Thirst for More
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You know that feeling where you’re on a movie kick in a certain genre, but you seem to run out of good movies to watch? Well, if you’re down for a vampire movie or three, check out this article for the best ones out there!
10 Incredible Movies That People Rated 10 Out of 10
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It’s pretty hard to replicate the experience of watching your favorite movie for the first time, but we’ve put together a list of movies that people have rated at a perfect 10/10. Next time you need a good movie to watch, check this out!
10 Famous People Who Canceled Themselves With Their Own Stupidity
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We’ve all been there: you make a comment you haven’t thought through at all, and the whole room goes silent at what you’ve just said. But can you imagine doing that as a famous person—and getting canceled? Check out this list of celebrities who did just that!
13 Things You Shouldn’t Do When You’re in the US
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Are you planning a trip to the US? Culture varies a lot between countries, even countries that share borders. So if you’re headed to the good old U. S. of A, here are a few pointers to make your travels go more smoothly!
Some credit cards offer a promotional interest rate, as low as 0% APR, for purchases and/or balance transfers. Often, these promotional interest rates are offered for a limited period of time when you apply for a new card, though some issuers offer promotional rates for existing cardholders as well.
If you have a large purchase coming up, or an existing credit card balance that you want to transfer over, these cards can save you a significant amount of interest. You’ll just want to make sure to pay off the full balance by the end of the promotional period, as your interest rate will likely jump significantly when your promotional APR expires.
What Are Credit Card Promotional Interest Rates?
A credit card promotional interest rate is an interest rate that is offered for a limited amount of time, as a promotion. During the promotional period, you’ll be charged a lower interest rate than your typical interest rate.
It’s common for credit cards to offer these introductory promotional interest rates for new members when you open a credit card account. However, it’s also possible for issuers to offer promotional interest rates to existing cardholders.
Recommended: How to Avoid Interest On a Credit Card
How Credit Card Promotional Interest Rates Work
One common scenario for how credit card promotional interest rates work is that an issuer might offer a 0% promotional interest rate on purchases and/or balance transfers for a certain period of time. When you’re using a credit card during the promotional interest period, you won’t pay any interest.
It’s important to note that there are two major types of promotional interest rates, and they vary slightly. With a 0% interest promotion, you won’t pay any interest during the promotional period. If there’s any balance remaining at the end of the promotional period, you’ll begin paying interest at that time. With a deferred interest promotional rate, on the other hand, you’ll pay interest on any outstanding balance back to the date of the initial purchase.
Benefits of Credit Card Promotional Rates
As you may have guessed, there are certainly upsides to taking advantage of credit card promotional interest rates. Here’s a look at the major benefits.
Low Interest Rate During the Promotional Period
One benefit of credit card promotional interest rates is the ability to take advantage of a low or even 0% interest rate during the promotional period. Having access to these promotional rates can give you added flexibility as you plan your financial future.
Ability to Make Balance Transfers
One possibility to maximize a credit card promotional rate is if you have existing consumer debt like a credit card balance. By using a balance transfer promotional interest rate, you can transfer your existing balance and save on interest. This can help lower the amount of time it takes to pay off your debt.
Can Pay For a Large Purchase Over Time
If your credit card has a 0% promotional interest rate on purchases, you can take advantage of that to pay for a large purchase over time. That way, you can spread out the cost of a large purchase over several months rather than needing to pay it off within one billing period.
Just make sure to pay your purchase off completely before the end of the promotional period to avoid paying any interest.
Drawbacks of Credit Card Promotional Rates
There are downsides to these offers to consider as well. Specifically, here are the drawbacks of credit card promotional interest rates.
Deferred Interest
You need to be careful if your credit card promotional rate is a deferred interest rate, rather than a 0% interest rate. Because of how credit cards work with a deferred interest rate promotion, you’ll pay interest on any outstanding balance at the end of the promotional period — back to the date of the initial purchase. This amount will get added to your existing balance, driving it higher.
Penalty Interest Rates
You still have to make the minimum monthly payment on your credit card during the promotional period. If you don’t make your regularly scheduled payment, the issuer may cancel your promotional interest rate. They may even impose an additional credit card penalty interest rate that’s higher than the standard interest rate on your card.
May Encourage Poor Spending Habits
Establishing good saving habits and living within your means is an important financial concept to live by. While it may not always be possible, it’s generally considered a good idea to save up your money before making a purchase. While a 0% interest promotional rate means you won’t pay any interest, it can contribute to a mindset of buying things you don’t truly need.
Recommended: Tips for Using a Credit Card Responsibly
How Long Do Credit Card Promotional Interest Rates Last?
By law, credit card promotional interest rates must last at least six months, but it is common for them to last longer. You may see introductory interest rates lasting 12 to 21 months, or even longer.
Regardless of how long your promotional period lasts, make sure you have a plan to pay your balance off in full by the end of it. Credit card purchase interest charges will kick in once your promotional period is over.
Zero Interest vs Deferred Interest Promotions
Both 0% interest rates and deferred interest rates are different kinds of promotional rates where you don’t pay any interest during the promotional period. However, they come with some key differences:
Zero Interest
Deferred Interest
Often marketed with terms like “0% intro APR for 21 months””
Often marketed as “No interest if paid in full in 6 months”
No interest charged during the promotional period
No interest charged during the promotional period
Interest charged on any outstanding balance starting at the end of the promotional period
At the end of the promotional period, interest is charged on any outstanding balance, back-dated to the date of the initial purchase
What to Consider When Getting a Card With a Zero-Interest or Deferred Interest Promotion
One of the top credit card rules is to make sure you pay off your credit card balance in full, each and every month. But if you’re carrying a balance with a promotional credit card rate, you’ll want to make sure you understand if it’s a 0% rate or a deferred interest promotion.
With a 0% promotional rate, you’ll start paying interest on any balance at the end of the promo period. But with a deferred interest promotional rate, you’ll pay interest on any balance, back-dated to the date of the initial purchase.
In either case, the best option is to make sure that you have a plan in place to pay off the balance by the end of the promotional period.
Paying off Balances With Promotional Rates
You’ll want to have a gameplan for how to pay off your balance before the end of the promotional period. That’s because at the end of the promotional period, your credit card interest rate will increase significantly.
If you still are carrying a balance, you will have to start paying interest on the balance. And if you were under a deferred interest promotional rate, that interest will be calculated back from the initial date of purchase.
Watch Out for High Post-Promotional APRs
Using a 0% promotional interest rate can seem like an attractive option, but it can lull you into a false sense of financial security. You should always be aware that the 0% interest rate won’t last forever. Your interest rate will go up at the end of the promotional period, and if you’re still carrying a credit card balance, you’ll start paying interest on the balance.
Exploring Other Credit Card Options
There are some other credit card options besides getting a card with a promotional interest rate. For instance, you might look for a credit card that offers cash back or other credit card rewards with each purchase.
Before focusing on credit card rewards or cash back, however, you’ll want to make sure that you first focus on paying off your balance. Otherwise, the interest that you pay each month will more than offset any rewards you earn.
If you’re carrying a balance, you can also attempt to get a good credit card APR by making on-time payments and asking your issuer to lower your interest rate. By simply securing a good APR, you won’t have to worry about it expiring and then spiking like you would with a promotional APR.
The Takeaway
Some credit cards offer promotional interest rates to new and/or existing cardholders. These promotional interest rates could be a 0% interest rate for a specific period of time, or a lower interest rate to encourage balance transfers.
While taking advantage of promotional interest rates can be a savvy financial move if you have existing consumer debt or need to make a large purchase, you’ll want to make sure you have a plan to pay off your balance in full before the promotional period ends. That way, you avoid having to pay any interest.
Whether you’re looking to build credit, apply for a new credit card, or save money with the cards you have, it’s important to understand the options that are best for you. Learn more about credit cards by exploring this credit card guide.
FAQ
Will my interest rate spike after a promotional deal ends?
Yes, generally credit card promotional interest rates last only for a specific number of months. The way credit cards work is to charge interest on balances that are not paid off. So, while your credit card may charge 0% or a lower promotional rate for a period of time, the interest rate will rise once the promotional period is over and will apply to any outstanding balance on the card.
How does promo APR work?
Promotional APR offers are generally put forward by credit card companies as a way to entice new applicants. Cards may offer a 0% introductory APR for a certain number of months on purchases and/or balance transfers. Once the promotional period is over, your interest rate will rise to its normal level.
Should you close a credit card with a high interest rate?
Having a credit card with a high interest rate will not negatively impact your credit or your finances if you’re not carrying a balance. So, simply having a high interest rate is not a reason, in and of itself, to close a credit card. But if you have a balance on a credit card with a high interest rate, you might want to consider doing a balance transfer to a card with a promotional 0% interest rate while you work to pay it off.
Is my credit card’s promotional rate too good to be true?
Promotional interest rates are a legitimate marketing strategy used by many credit card companies. While you shouldn’t treat them as a scam, you also need to make sure that you are aware of the terms of the promotional rate and how long the rate is good for. Make a plan to completely pay off your balance by the end of the promotional period before your interest rate increases.
Photo credit: iStock/Jakkapan Sookjaroen
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.
The upcoming Fed meeting could have an impact on whether mortgage rates decline in the near future, experts say.
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After the latest report revealed that inflation remains high at 3.4% — and after the May Consumer Price Index All Urban Consumers report showed a 0.3% increase in April — the Federal Reserve elected to hold the federal funds rate steady for the sixth consecutive meeting. This, in turn, further delayed the anticipated rate cuts that had, at one point, been expected to occur in mid-2024.
While the Federal Reserve doesn’t directly set mortgage rates, the rates offered by lenders tend to follow the agency’s lead. As such, mortgage rates remain elevated, and once again have climbed over the 7% mark on average, with the 30-year fixed-rate mortgage rate averaging 7.18% as of June 4, 2024.
The Fed’s next meeting is set for June 11 and 12, and many potential borrowers are hopeful that a rate cut will occur, followed by a drop to mortgage rates. Late last year, the agency hinted at multiple rate cuts in 2024, but persistent inflation has delayed such cuts. So, any rate drop would be welcome news for potential homebuyers looking for lower borrowing costs. But will mortgage rates fall after the June Fed meeting? Here’s what experts say.
Compare today’s top mortgage loan options and get started today.
Will mortgage rates fall after the June Fed meeting? Here’s what experts think
We consulted several experts to get their take on the Federal Reserve’s potential course and how it could influence mortgage rates. Here’s what they had to say.
Joseph Camberato, CEO at NationalBusinessCapital.com:
“I highly doubt we’re going to get a rate cut just yet. I really believe we’re finally headed in the right direction, albeit very slowly. Inflation still rose 0.3% in April, which was better than expected, but it’s still up 3.4% for the year and unemployment remains the same. The Fed is looking for it to worsen to lower rates.
If the Fed keeps rates the same, mortgage rates will probably remain unchanged in the short term.”
Daniel McKeever, assistant professor at the School of Management at Binghamton University, State University of New York:
“I think the probability of a June rate cut is pretty low. Just take a look at the minutes from the Fed’s most recent policy meeting (April 30 and May 1). There appears to be a pretty clear consensus to continue chasing a 2% inflation target, even if it takes longer than initially thought. Rate hikes aren’t off the table, either, in the event that persistent rates in the 5.25% to 5.50% range don’t appear to have the same impact that they once did.
The most probable outcome is that the Fed doesn’t change rates. Mortgage rates track extremely closely with the Fed’s benchmark rate. Since the Fed completed the bulk of its aggressive rate hikes in spring 2022, average 30-year fixed-rate mortgage rates have hovered around 7% pretty consistently. I’d expect to see them stay there if the Fed keeps its benchmark rate the same at the upcoming meeting.”
Find out the best mortgage rates you could qualify for now.
Van Hesser, chief strategist at Kroll Bond Rating Agency:
“No (the Fed will not cut rates). Inflation remains meaningfully above the Fed’s 2% target, and it is taking longer than usual for restrictive rates to slow the economy. That has a lot to do with the extraordinary amount of stimulus deployed in the pandemic era.
Over the near term, with the Fed keeping rates elevated, we do not expect mortgage rates to fall materially. As the economy slows in 2024’s second half and the Fed begins to ease monetary policy, we would expect mortgage rates to fall gradually and modestly but remain well above the sub-3% lows hit during the pandemic.”
Emily Overton, capital markets analyst at Veterans United Home Loans:
“It is widely expected that the Federal Reserve will keep rates unchanged at this month’s meeting. While this decision is expected, markets eagerly anticipate what the Fed’s new dot plot and summary of economic projections will reveal.
Markets currently anticipate one cut this year, so if the Fed keeps three cuts on the table, we should see a small improvement in mortgage rates. However, if the Fed were to match market expectations, then mortgage rates should remain relatively unchanged.”
The bottom line
The consensus among these experts suggests the Federal Reserve is likely to keep the federal funds rate where it is, but it could lower rates later in the year. Consequently, mortgage rates are likely to stay in the current 7% range, with little room to drop much lower, at least in the near future, experts say.
“If a prospective buyer is looking to buy a home this year, waiting for lower rates may not necessarily result in more savings as rates are likely to hover near current levels,” says Overton. “For a seller, waiting for home prices to rise may also not be a feasible option because we haven’t seen a huge uptick in buying activity, and recent data suggests home prices may have peaked as delistings and price drops are increasing.”
If you’re currently thinking about buying a home, or somehow in a position to refinance an existing loan, current mortgage rates don’t look great.
While they might not be as high as they were in the 1980s (when they averaged 18%), the rapid ascent from sub-3% to 7% is no doubt painful.
The obvious issue is that a higher mortgage rate equates to a much larger monthly payment.
You pay more each month and that’s both undesirable and potentially unaffordable.
But assuming you are still able to qualify a mortgage, there’s another huge downside to a higher rate.
Look at the Mortgage Payment Composition
Home buyers tend to focus solely on the total monthly mortgage payment
But it’s important to look at the allocation between principal and interest
When mortgage rates are high a large portion of the payment goes toward interest
When mortgage rates are low much more of the payment goes toward principal (aka paying down the loan!)
As I’ve written before, a mortgage payment consists of four components: principal, interest, taxes, and insurance.
For short, we refer to it as PITI (see more mortgage lingo here).
The tax and insurance piece is mostly driven by the purchase price, while the principal and interest is dictated by the loan amount and mortgage rate.
Simply put, the higher your mortgage rate, the higher your monthly payment, all else equal.
So if you took out a $500,000 (30-year fixed loan) at 7%, it’d be a lot more expensive than the same loan amount at a rate of 3%.
In fact, it’d be roughly $1,200 more per month, which is clearly nothing to sneeze at.
It’d be more difficult to qualify for the loan thanks to a higher DTI ratio, and harder to make monthly payments during the loan term.
But perhaps just as important, a much smaller portion of your monthly payment would go toward paying off the loan.
Payment 1 @3%: $858.02 in principal, $1,250.00 in interest Payment 1 @7%: $409.84 in principal, $2,916.67 in interest
For example, the very first payment on the 7% mortgage would consist of a staggering $2,916.67 in interest and just $409.84 in principal.
Meanwhile, the 3% mortgage would consist of just $1,250.00 in interest and $858.02 in principal.
In other words, about 40% of the 3% rate mortgage consists of principal in month one. That means nearly half of your monthly payment from day one is going toward paying off the loan.
Conversely, only about 12% of the 7% rate mortgage goes toward the principal balance in month one. And interest accounts for the other 88%. Ouch!
Here’s what’s even crazier.
It would take more than 10 years of paying down the loan at the higher rate for the principal portion to be equal to what it was on the first month of the lower-rate loan.
That just gives you an idea of how far behind a higher-rate home loan can make you.
What You Can Do About It
Paying More to Save on Interest
$500,000 Loan Amount
Standard repayment
Paying $500 extra monthly
Mortgage Rate
7%
7%
Monthly Payment
$3,326.51
$3,826.51
Extra Payment
$0
$500
Loan Balance After 60 Months
$470,657.95
$434,861.50
Total Interest Over Full Term
$697,544.49
$445,008.69
Possible Savings
$250,535.80
By now, you probably realize that a higher mortgage rate isn’t just a higher monthly payment.
It’s also a lot more interest paid over the loan term, and a lot less of your outstanding loan balance whittled down for many years to come.
While this is unfortunate, there is something relatively simple that you can do about it, assuming you’ve got some extra cash handy.
Simply pay extra toward the mortgage and you can substantially reduce the interest expense and ensure a lot more goes toward principal as opposed to interest.
Using the same example from above, imagine if you put $500 extra toward the principal balance each month from the very beginning of the loan term.
In month one, you’d pay $909.84 toward the principal balance, which would be about $50 more than the 3% rate loan.
And while you’d still pay more interest overall versus the 3% rate loan, you could cut your total interest expense by more than $250,000.
Total interest would fall to around $445,000 compared to $698,000 if you just paid the loan as scheduled.
Not quite as good as the $259,000 in interest on the 3% rate loan, but we’re talking about an interest rate that is 133% higher. So it’s still a decent win.
You’d also pay off the mortgage early, by about a decade, turning a 30-year fixed into a 20-year loan.
In the meantime, you could look for an opportunity to do a rate and term refinance to get a lower rate, assuming rates ease in the future.
Speaking of, your loan balance would be a lot lower in just a few years, potentially making it easier to qualify at a lower LTV, which could result in an even lower rate.
So, you have only one day in Fort Worth to experience all this city has to offer – you’ve come to the right place! Whether you’re exploring the town for vacation or trying to decide on renting an apartment in Fort Worth or buying a home in Fort Worth, ApartmentGuide can help you plan the ideal day.
In this article, you’ll find a treasure trove of restaurants, activities, and parks handpicked by Fort Worth locals. Your task is to look through the list and select one item from each step to create your ideal itinerary. Feel free to choose more than one option if you wish! Think of this as a “Choose Your Own Adventure” for exploring a new city. The goal is for you to get a crash course in what it’s like to live in Fort Worth.
Step one:
Try a new experience
During your time in Fort Worth, make sure to take advantage of all the great experiences this city has to offer. See below for a myriad of experiences, from glass art classes to the oldest bookstore in Texas. Choose one or a few to explore during your stay.
SiNaCa Studios: “Escape the humdrum and head to SiNaCa Studios for some fun and excitement. You will have a blast with glass art classes at SiNaCa Studios. Whether you want to try glass blowing or flamework glass art, you will have a hot time at SiNaCa Studios.” – Clarissa M. of Romantic Spots Fort Worth.
Casa Mañana: “Casa Mañana is known for bringing captivating performances to life on stage. At Casa Mañana, you can enjoy a wide range of theatrical productions from Broadway favorites to family-friendly productions. From the moment you walk into the domed building, to the rise of the curtain to open the show, to the final applause, you will be fully immersed in the magic that is Casa Mañana.” – Clarissa M. of Romantic Spots Fort Worth.
Barber’s Bookstore: “Come visit the oldest bookstore in the state. We are one of the last independent bookstores in Tarrant County. We buy libraries and do appraisals.” – Brian Perkins, owner of Barber’s Bookstore and author of online stories.
Rooftop Cinema Club: “Enjoy a unique experience at Rooftop Cinema Club. You will have a scenic view of downtown Fort Worth at night while you enjoy a movie under the moonlight. The cinema provides personal headphones for each person, concessions where you buy drinks and classic movie snacks. Check out their website for exclusive screenings like Wooftop!, Singles Night, and movies that provide closed captions.” – Giselle Jimenez of Pax & Beneficia.
Tubman Gallery: “Visiting the newly opened Tubman Gallery to view beautiful art from local artists is a great way to connect with the east side of the city. The experience is unique, inviting, and inspiring.” – Black Coffee FW.
The Fort Worth Botanic Garden: “One of my favorite places to photograph couples is the Fort Worth Botanic Garden! The garden offers a variety of landscapes, from meticulously manicured lawns to wildflower-filled meadows and, my favorite, the Japanese garden. The landscapes there are especially beautiful in the fall and winter, bursting with warm and vibrant colors.” – Elizabeth Couch of Elizabeth Couch Photography.
Wanna try something else? Check out WhatsUpFortWorth.com: “If you are looking for something to do in Fort Worth, you just have to make one click to WhatsUpFortWorth.com. Whether it’s live music for the upcoming weekend, festivals in and around Fort Worth, or the live theater selections, WhatsUpFortWorth is your one-stop click for ‘what’s up’ in Fort Worth. Select the area of town and date, and you will know everything that is going on in Fort Worth.” – Greg Heitzman of WhatsUpFortWorth.com.
Step two:
Go on a scavenger hunt around town
If you’re looking for a unique experience, consider exploring the town through one of the scavenger hunts put on by DFW Scavenger Hunt. Travel on foot as your host sends you on a quest to solve a puzzle before time runs out. If you like escape rooms, this will be right up your alley, testing your wits while exposing you to the art, culture, and history of Fort Worth. DFW Scavenger Hunt has provided a few destinations to get you started. Visit them for more!
Butch Cassidy and the Sundance Kid: “Lawmen dreamed of nabbing Butch Cassidy and the Sundance Kid for years, but here in Fort Worth they’ve been truly captured, in bronze, along with the rest of the Wild Bunch. Visit the Flatiron Building to see this unique piece of art, and snap a selfie with the gang.” – DFW Scavenger Hunt.
Find the panthers: “A 19th-century insult hurled at the city claimed it was so quiet that a panther was spotted sleeping undisturbed on the streets. The city reclaimed the slight, and now panthers can be found throughout town, including at the Sleeping Panther Fountain in Hyde Park.” – DFW Scavenger Hunt.
Spot the knights: “Here’s a mini-scavenger hunt for you. See if you can find the knight guarding Sundance Square. Here’s a hint: the figure stands on a ledge a few stories up from Main Street in a full suit of armor, a symbol of a secret society that once called this building its home.” – DFW Scavenger Hunt.
Step three:
Enjoy the local food and coffee
If you’re kicking around the idea of renting a home in Fort Worth, make sure to try the local cuisine. Fort Worth does not disappoint, with everything from hip coffee shops to mouthwatering Mexican food.
Joe T Garcia’s: “Joe T Garcia’s serves up more than just delicious Mexican food and drinks. Joe T Garcia’s also serves up the most enchanting garden oasis vibes. You will feel like you’ve found a little piece of heaven while you dig into delicious enchiladas surrounded by lush greenery.” – Clarissa M. of Romantic Spots Fort Worth.
Dr. Sue’s Chocolates: “Dr. Sue’s Chocolates is a great local chocolatier crafting all natural chocolates that are perfect pairings with wine or for gift giving.” – Gina Graves of Messina Hof Winery.
Pax and Beneficia Coffee: “Enjoy a hot or iced coffee at Pax & Beneficia Coffee in the heart of downtown Fort Worth. Each coffee bean is roasted at their Grapevine HQ by their very own roaster, Joan Juan. They take pride in making the best quality of specialty coffee and handmade syrups used in each of their locations and drinks. You also have the option to take their packaged coffee and syrups for an at-home experience.” – Giselle Jimenez of Pax & Beneficia.
Carpenter’s Cafe: “Having the most flavorful chicken salad at Carpenter’s Cafe & Catering will satisfy anyone’s hunger, and call them back to do it all over again. They also have amazing Asian zing nachos and the best smoked turkey club sandwich.” – Black Coffee FW.
Black Coffee FW: “Stop by Black Coffee to start your day with the best latte, cappuccino, or drip coffee you can have in the city. Our staff is friendly and always ready to quench your caffeinated thirst.” – Black Coffee FW.
Step four:
Explore a different part of the city
Fort Worth is a city of rich history and culture. In fact, locals preferred to recommend exploring a specific part of the city in full before moving on. Below are different parts of Fort Worth that each present their own unique culture. Pick one and enjoy all it has to offer!
Take a stroll in the Cultural District: “One of our favorite days spent in Fort Worth is in the Cultural District, specifically strolling the Kimbell Art Museum and the Amon Carter Museum of American Art, both within walking distance to the hotel. Afterwards, you can pop in to The Circle Bar or the patio at Emilia’s at The Crescent Hotel Fort Worth for festive cocktails and dinner in the stunning atmosphere, and enjoy the impressive art program throughout the hotel along the way. After dinner, catch a concert or performance at Dickie’s Arena, less than a five-minute drive from the hotel.” – Lauren Lamp of The Crescent Hotel Fort Worth.
Explore South Main Street: “Beignets, breweries, and The Bearded Lady (It’s a restaurant): if you’re looking for an eclectic neighborhood to explore, ‘SoMa’ is it. You could spend a morning working from Roots Coffeehouse, grab Hawaiian food for lunch at the always-packed Coco Shrimp, finish the afternoon off with a few beers from HopFusion Ale Works and then grab dinner once the sun goes down at Funky Calavera, which has the best birria tacos in Ft. Worth. You might even be able to catch one of your favorite indie bands at Tulips FTW if you time it right!” – Justin Runyon of Runyon Coffee.
Discover Sundance Square: “I have a deep love for Fort Worth and its unique charm. Sundance Square in downtown Fort Worth screams COWTOWN! The architecture, light, and colors in the area are a recipe for success during any photoshoot! Elopements at the Tarrant County Courthouse are becoming very popular and are a joy to photograph. When you visit downtown Fort Worth, she’s right there in all her glory: The courthouse – a stunning pink granite building that’s a true work of art. Inside, it’s like stepping back in time, with ornate staircases, gold accents, and light that make everything feel romantic and magical. Getting hitched at the historic 1895 Tarrant County Courthouse is memorable and special.” – Elizabeth Couch of Elizabeth Couch Photography.
Walk along the Trinity River: “When the weather is nice (say, spring or fall), a stroll along the Trinity River is a fantastic way to get some exercise and enjoy this small river that runs all the way through Ft. Worth. One of my favorite things is to start or end the day at restaurants along the river, like Press Cafe or Woodshed Smokehouse. If you’re a long-distance runner, there’s no better place to train as the trail is around 18 miles long from start to finish!” – Justin Runyon of Runyon Coffee.
Head North for a touch of nature: “As the owner of a portrait studio in North Fort Worth for the past 15 years, I can genuinely say that I love this vibrant community. Nestled in an area rich with scenic beauty and bustling with activity, North Fort Worth has provided the perfect backdrop for my work as a photographer. From the picturesque state parks to the charming downtown area and the iconic Stockyards, I have found endless inspiration for portrait sessions that truly capture the essence of this wonderful region.” – Jennifer Braly of Braly Studios.
Step five:
Grab a drink and reflect
Now that you’ve spent time exploring Fort Worth, it’s time to end the day with a drink and some time to reflect. What did you like about the city? What did you not like? Could you see yourself renting a house in Fort Worth or even buying a home in nearby Dallas?
Atlas Fort Worth: “Get ready for a trip around the world at Atlas. Atlas is a sophisticated, Edgar Allan Poe-inspired, cocktail bar with sophisticated decor, low lighting, and a refined ambiance. At Atlas, you can enjoy great cocktails inspired by a variety of global cultures.” – Clarissa M. of Romantic Spots Fort Worth.
Free Play: “Free Play is the place to be for fun and nostalgia. This epic arcade bar with a huge selection of classic arcade games and pinball machines that provide endless entertainment. Whether you are a Pac-Man fan or Street Fighter is more your vibe, you can enjoy unlimited play on a variety of your favorite retro games while enjoying a craft cocktail or beer.” – Clarissa M. of Romantic Spots Fort Worth.
Messina Hof Grapevine Winery: “We are an urban winery featuring multiple tasting areas with over 40 different wines, premium flights, wine on tap, and delectable small plates. Take in the sunshine as you sip and savor on the patio or balcony and enjoy the view of downtown Main Street. Messina Hof is the most awarded winery in Texas with over 45 years of winemaking experience and is committed to old-world hospitality.” – Gina Graves of Messina Hof Winery.
Martin House Brewing Company and TopGolf: “Nobody puts on a party quite like Martin House. Bring your favorite folding chair and sit alongside the Trinity River while enjoying one of their many, many events throughout the year. After enjoying a few beers for less than $20 and filling up on their food truck offerings, traipse over to TopGolf across the river and tee off for a few hours. You’ll get an action-packed evening with great views of downtown Ft. Worth.” – Justin Runyon of Runyon Coffee.
jhorrocks/ Getty Images; Illustration by Austin Courregé/Bankrate
Key takeaways
Home equity is the difference between your home’s value and the amount you still owe on your mortgage. It represents the paid-off portion of your home.
You’ll start off with a certain level of equity when you make your down payment. Your home equity can increase through making mortgage payments and home improvements. You’ll also build equity over time as your home’s value increases.
You can tap your equity and use it for various expenses, primarily via home equity loans and home equity lines of credit (HELOCs).
It’s important to use your home equity in ways that will strengthen your financial profile.
What is home equity and how does it work?
Home equity is the difference between the current value of your home and the outstanding balance of your mortgage — in other words, the portion of your home’s value you own outright.
When you purchase a home, your stake equals your down payment or however much money you’re contributing out-of-pocket (as opposed to financing with the mortgage). So, if you put 20 percent down on a $400,000 home, you start with $80,000 worth of equity. But if you pay all cash for the home, you have $400,000 or 100 percent equity.
“As you pay down your mortgage and your home’s value hopefully increases, your equity also grows, contributing to your overall net worth,” says Linda Bell, senior writer on Bankrate’s Home Lending team. “The best part is that your equity isn’t just there collecting dust. When used the right way and for the right reasons, your home’s equity can provide you with financial flexibility and liquidity when you need it the most.”
How to use your home equity
Here are some of the most common reasons homeowners leverage their equity — that is, borrow against it:
Finance home improvements: You can use your equity to reinvest in your home by using the cash for a renovation. If the money goes towards upgrading the home and you itemize deductions, you could deduct the interest, as well.
Settle outstanding balances: You can use a home equity loan or line of credit to consolidate debt, especially credit card balances charging double-digit interest rates, or medical expenses uncovered by health insurance.
Get a business going: If you’re starting up a side hustle, home equity loans might offer better terms than small business loans, and be easier to qualify for.
Build an emergency fund: A HELOC or HELoan can be a relatively quick, cost-effective way to cover sudden or unexpected expenses.
How to use your home equity to eliminate PMI
If you made a less-than-standard down payment when you bought your home, there’s a special reason to keep an eye on your equity stake. It’s key to helping you get rid of private mortgage insurance (PMI) premiums.
On most conventional loans, lenders usually charge PMI if you put less than 20 percent down on the home, financing more than 80 percent. Your initial equity stake equals the amount of your down payment. However, as you make your mortgage payments, your equity stake rises. When it reaches the 20 percent level, you can request that your lender remove the PMI from your payments — saving you some money. And when your loan-to-value ratio (LTV) is at 78 percent (meaning your HE stake is 22 percent), the lender must remove it by law.
46%
Percent of U.S. mortgaged homes that are “equity-rich” (meaning their outstanding loan balances total no more than half their estimated market values).
Source:
ATTOM “Q4 2023 U.S. Home Equity & Underwater Report”
How to calculate home equity
To calculate the equity in your home, follow these steps:
Find your home’s estimated current market value. What you paid for your home a few years ago or even last year might not be its value today. If you’re just exploring home equity options, you can use an online home price estimator to get an idea of its worth. The most accurate assessment would be from a licensed appraiser.
Subtract your mortgage balance. Once you know the value of your home, check your latest mortgage statement. Subtract the amount you still owe on your mortgage and any other debts secured by your home. The result is your home equity.
Home Equity
Example of home equity
Say you bought a home for $390,000, putting 3 percent down with a 30-year fixed rate mortgage at 7.83 percent. From the outset, you’d have $11,700 in equity (3% of $390,000).
Five years later, your home’s value has appreciated to about $440,000, and you still owe roughly $359,000 on your loan. At this point, you’d have $81,000 in equity ($440,000 – 359,000).
How to increase the equity in your home
Your home equity can increase in a few different ways:
As you make mortgage payments: Every month when you make your regular mortgage payment, you’re paying down your mortgage balance and increasing your home equity. You can also make additional mortgage principal payments to build your equity even faster.
When you improve your home: Increasing the value of your home also increases your home equity. (Keep in mind that some home renovations add more value than others.)
As you ride the appreciation wave: Often (but not always), property values rise over time. This appreciation can be another way for you to build equity. Because your property increasing in value depends on several factors, such as its location and the economy, there’s no way to tell how long you’ll have to stay in your home to see a significant rise in value. The historical price data of homes in your area might give you some insight as to whether values have been trending upward or downward.
How to tap your home equity
$16 trillion
The amount of home equity collectively held by U.S. borrowers as of December 2023. $10.3T of that is considered “tappable,” meaning it can be withdrawn while maintaining an 80% combined loan-to-value ratio.
Source:
ICE Mortgage Monitor Report February 2024
Home equity loans: A home equity loan is a second mortgage for a fixed amount at a fixed interest rate. The amount you can borrow is based on the equity in your home, and you can use the funds for any purpose. This option can be ideal if you have a specific large expense or debt to pay off. It also comes with the stability of predictable monthly payments. If you use the funds to remodel your home, the interest might be tax-deductible.
Home equity lines of credit (HELOCs): A home equity line of credit, or HELOC, is also secured by your property and works like a credit card, charging interest at a variable rate. You can withdraw as much as you want up to the credit limit during an initial draw period, usually up to 10 years; after that, withdrawals cease and you have to pay back the principal. During the draw period, you can make repayments too, so that the credit line goes back up and you can withdraw again. This gives you flexibility to get money as you need it.
Cash-out refinancing: A cash-out refinance replaces your current mortgage with another, bigger loan. This loan includes the balance you owe on the existing mortgage and a portion of your home’s equity, withdrawn as cash. You can use these funds for any purpose. Unlike a HELOC or home equity loan, a cash-out refi might allow you to get a lower rate on your main mortgage, depending on market conditions, and shorten the term so you can repay it sooner.
Reverse mortgage: For those who are 62 and older (or 55 and older with some products), a reverse mortgage offers another way to tap home equity. Unlike a HELOC or a home equity loan, the money withdrawn using a reverse mortgage doesn’t have to be repaid in monthly installments. Instead, the lender pays you each month while you continue to live in the home. The loan, plus interest, must be repaid when the borrower dies, permanently vacates or sells the home.
Shared equity agreement: A shared equity agreement is a formal arrangement between a professional investor (or investment company) and a homeowner. You can receive a lump sum of cash in exchange for a percentage of ownership in your home and/or a portion of its future appreciation; the investor receives compensation when the agreement ends on a designated date, or when you sell the home. You make no monthly payments in the meantime. These agreements cater to credit-challenged borrowers or those experiencing financial obstacles that prevent them from securing a traditional loan.
Home Equity
Why home equity loans are popular now
Why are people cashing in their home equity? Largely because they can. The rapid rise in property values of the last few years has sent ownership stakes soaring. According to Corelogic’s Homeowner Equity Insights, in the fourth quarter of 2023, U.S. mortgage-holding homeowners saw their equity increase $1.3 trillion in value compared to the same time the previous year. For the average borrower, that’s a gain of $24,000 in their ownership stake. Also, mortgage rates have risen significantly since the pandemic years, which has impacted the cost of cash-out refinancing (previously, the most common way to tap home equity). Admittedly, HELOC and home equity loan rates have increased, as well; hovering around 9 percent currently, they aren’t the bargain they once were. Still, they are more affordable than other forms of financing, such as credit cards and personal loans, and can be a little easier and quicker to obtain than a refi. Plus, you won’t need to give up your low mortgage rate, if you have one.
Should you borrow against home equity?
Pros of using home equity
Lower interest rates: Since your home is the collateral for a home equity loan or line of credit, they are considered less risky for the lender. These products also tend to offer better rates than unsecured credit cards or personal loans.
Flexible use: You can use the funds however you see fit.
Tax benefits: If you itemize deductions on your tax returns, you might be able to deduct the interest on home equity loans or lines of credit, provided the money is used to “buy, build or substantially improve” the home.
Cons of using home equity
Risk of losing your home: Home equity debt is secured by your home, so if you fail to make payments, your lender can foreclose. If home values drop, you could also wind up owing more on your home than it’s worth. That can make it more difficult to sell your home if you need to.
Some variable-rate products: Most HELOCs have a variable rate, which means you could be paying more in interest over time.
Borrowing costs: Some lenders charge additional fees for home equity loans or HELOCs; you often have to pay closing costs as you would on a mortgage.
Misusing the money: It’s best to use home equity to finance expenses that’ll serve as investments, like renovating a home to increase its value, starting a business or eliminating debt. Stick to needs versus wants; otherwise, you could be perpetuating a cycle of living beyond your means.
Your home’s equity can provide you with financial flexibility and liquidity when you need it the most.
— Linda Bell, Senior Writer, Bankrate
What not to do with home equity
Your home is an asset. So if you’re going to tap its value, you should make the money work for you in some way. You may want to rethink using your home equity if it won’t improve your financial position in the long run.
This means avoiding spending the funds you pull from your home on luxury purchases/big-ticket items (especially things that depreciate, like cars), holiday shopping, vacations or other short-term or discretionary expenses. Nor is it a good idea to use equity to meet everyday expenses if your income is falling short. Covering an emergency or unexpected cost is ok, but not repeatedly or for a long time.
What about educational expenses? It’s not the worst idea in the world, but investigate other financing first: The interest rate on a federal student loan is likely less than the rate on a home equity loan nowadays. Buying other property might be feasible, but again, check out mortgage rates on second homes before using an HELoan or HELOC.
“While you may be tempted to use your home equity to invest in the stock market or to buy an investment property, proceed with extreme caution,” says Bell. “While stocks and real estate are ways you can build wealth, with any investment, there are risks. If the investment fails, there’s a possibility of losing your home. Before tapping into your home’s equity, make sure you can comfortably afford the monthly payments and have a solid plan for repayment.”
FAQ about home equity
How fast your home builds equity depends on a number of factors. The easiest and most consistent way to build equity is by making your regular monthly mortgage payments. Each payment will build hundreds of dollars in equity. You can also build home equity if your home appreciates, but a rise in real estate property values is beyond an individual’s control.
Most lenders allow you to borrow only a percentage of your home’s equity for a home equity loan or HELOC. The exact terms and percentage rates vary by lender, but it’s common for the maximum loan-to-value (LTV) ratio to be 80 percent or 85 percent of your home’s appraised value.
Yes, you can use the proceeds of a home equity loan or HELOC for anything you want. Whether you should is another matter. In general, tapping home equity is better for major home renovations or other goals that will further your financial life, such as paying off debt.
Assuming you have enough equity and your credit and finances are in order, you can get a home equity loan or HELOC by applying with a lender. Many banks provide home equity loans, and increasing numbers of online lenders do, too. To help narrow down your options, review home equity lender reviews and testimonials. Once you find the lender that meets your needs and offers the best rates, check its eligibility requirements to make sure you qualify.
Inside: Learn how to save $5000 in 6 months by following these easy, useful tips. Get a head start on saving for your money goals and save more.
It is no secret that saving money for the future has never been more important.
The Recession of 2008-2009 and the upheaval in 2020 brought a significant increase in how we think about long-term investing, retirement readiness, and the importance of saving for emergencies.
Savings is not easy, and it takes time to save up for your dream future. Saving can seem frustrating at times with all the forms of fees and interest rates.
But saving even a little bit each month will go a long way so don’t give up!
While these are often looked at as individual or personal concerns, they can easily be translated into family finances with some simple changes to your spending habits.
Save $5,000 in six months requires a little bit of discipline, some careful planning, and actual execution.
While it is possible to save money without any difficulty, some additional effort can help make this goal much more attainable.
If you are looking for ways to save money, this post has quick tips that should help you cut down on spending while still getting your needs met.
We will give you seven simple steps that anyone can follow in order to start saving more money today so they have enough saved for their desires.
How to save $5,000 in 6 months
If you are looking to save $5,000 in 6 months, it is important to set a specific goal for yourself.
For example, if you want to save $1,000 per month, write down that goal in your calendar or on paper. Another option is to save more upfront and less throughout or vice versa.
To save $5,000 in a year, there are only 7 easy steps to follow.
You just have to commit to the money saving plan.
This post may contain affiliate links, which helps us to continue providing relevant content and we receive a small commission at no cost to you. As an Amazon Associate, I earn from qualifying purchases. Please read the full disclosure here.
1. Why Save $5,000?
Saving money is a lot easier than you think.
I’ve seen it happen time and time again: people make the mistake of thinking that saving money will be difficult or take too long, but they often realize how wrong they were once they start making progress.
To keep your motivation moving forward, you need to decide why are you starting to save money. What are the exact reasons for saving 5000 in 6 months?
Action Step: Write down your reason for saving $5k in 6 months.
2. Designate a Separate Bank Account
Next, you have a plan of where you want the money to go. You cannot just assume you will leave it alone in your checking account or won’t touch the case..
Put all your extra income in a separate bank account. If you have extra money at the end of the month, roll it over and put it in savings.
Action Step: Open a separate bank account.
3. Review Your Budget
Next, you need to review your budget for the last month. Take note of the expenses that are missing from this month’s plan.
You must be spending less than you make.
Since you are adding a saving goal of 5000, you must spend less than your current expenses plus your monthly saving goal.
Look for expenses to cut; if needed, you can drastically cut expenses.
Now, make your new budget based on this month’s income, saving goal, and expenses. You can use this budget to calculate your monthly spending plan for the next month!
Action Step: Create a new zero based budget based on this month’s income and expenses with a priority to your saving goals.
4. Set Goals
You need to set goals on how fast you are going to save money. You need set time deadlines and protect that money for this saving challenge.
Other goals you need to set include:
How to reduce expenses
How to increase income
You can make progress much faster by kicking off your saving period with a no spend month.
Action Step: Create your money goals to make saving 5000 in 6 months actually happen.
5. Create Your Action Plan
You need to find ways to save at least $500 per month. That happens one of two ways – either reduce spending or increase income.
Now, you must decide are you going to save money when you get paid or whatever is left at the end of the month.
Regardless of what you choose, you must stick to your action plan. Period.
The recommendation is to save a determined dollar amount each time you are paid. At the end of the month, if you have money left over, then you can save the extra amount.
Below we will list specific tips and examples of ways to save more money.
Action Step: Write out how you plan to save money. Don’t just keep the plan in your head. Actually, write it and post it somewhere you see it often.
Many people prefer one of these challenges to save $5k:
6. Make Periodic Transfers to Savings Account
In order to be successful, you must actually move the money to another account.
On payday or a certain day of the month, you need to deposit money into your designated $5k bank account to complete this challenge.
This is something you need to set up in advance!
Action Step: Make it a habit to make transfers to that saving account. That is how you consistently save money and not spend it. Build good habits.
7. Reward Success
Keep yourself motivated with a celebration.
It’s a “treat” that should not cost a lot of money.
Reward success for creating the proper money habits just like rewarding your kids for doing well at school. It’s important to make sure that you are rewarding the right things, and not just because it feels good.
You can earn a reward for every month that you stay on track to save $5,000 in a year.
You will be happier and more motivated to complete the $5000 saving challenge. In addition, it will keep you saving money and increasing your saving percentage each year.
This is exactly how to make saving money always fun!
Action Step: Select your rewards for each month of completing the transfer of money! This is your reward for sticking to saving 5000 in 6 months.
Bonus Tip – Tell Others for Accountability
Tell a close family member or friend about your money goal. They are the people closest to you and help build support for your cause.
You need to be on the same page with your spouse or partner. So, make sure that you are aiming and wanting to achieve the same savings goals.
How can I save 5000 fast?
You are ready to start saving money fast.
But the reality is not everyone has that extra money at their disposal (especially right now). What are some things you will need to get started on this challenge?
Saving 5000 in 6 months is possible by simply following these steps:
-Save $193.00 per week.
-Pay off your debts each time they come due, including all credit card and loan balances. This will make sure you don’t stop your money saving plan.
-Save $500.00 each month for a total of $6,000.
-Shred old receipts and throw away your bank statement to avoid seeing your balance.
-Use your savings to buy a mutual fund that will provide an average annual return of 5% over the next year.
Tips to Save 5000 in 6 Months:
Saving money is hard. It is not easy to find ways that are both quick and easy, but also useful in the long run.
That said if you’re struggling with your finances these days I have got a handful of quick-and-easy tips for saving thousands of dollars each year without much effort at all!
Just think about how many times a day you might be tempted by an impulse purchase or two.
You probably don’t make them every time because it would cost too much. But if you start thinking about these small purchases as a cost of living, it’s easy to see how the little things add up, and why saving money is so important.
Reduces expenses by $500 each month.
Increase income with overtime, find a side hustle or a 2nd job to make an additional $500 a month.
Limit Groceries Costs: Cancel food delivery service, resume weekly meal prep, and limit store visits.
Transportation: Consolidate trips, limit toll lane usage and take the free buses instead of Uber.
Memberships: Canceled unused memberships and subscriptions.
Credit card rewards: Redeem credit card rewards to help fund the things you cut from your budget or items for reward milestones.
Limit Impulse Purchases: Wait 24 hours before buying things.
Stop Getting Takeout Foods: Cook at home and save the difference.
Review Bills: Review bills and see if you can change plans or save money. There are many areas to look at, such as insurance plans, cell phone plan or other expenses. See if there are cheaper alternatives out there with better services for your family.
Sell Extra Stuff: Sell off extra things you no longer need and make a little bit of pocket money. You can sell your old clothes, shoes, books, games consoles or other items on sites like Amazon or Craigslist to earn some extra cash.
Side Gig Ideas: Side gigs can help you meet your savings goals. You might be able to make $5,000 or more in 6 months by doing something you are already doing. There are easy ways to earn a few extra dollars per day, so save up your money and get started today!
Start Investing: While you won’t make money fast, you will be making money on your money. That is called passive income and something everyone needs to learn. Start investing with this easy to follow course.
How to Save 5k in 6 months Chart
This chart provides a quick, easy, and useful guide for saving 5000. There are many ways to save 5000 in 6 months.
By Month – Same Amount
Total
Month 1
$834
$834
Month 2
$834
$1,668
Month 3
$833
$2,501
Month 4
$833
$3,334
Month 5
$833
$4,167
Month 6
$833
$5,000
This is how you can save up to be debt free or have a rainy day fund or larger emergency fund.
By Month – Lump Sum Amount
Total
Month 1
$1,500
$1,500
Month 2
$500
$2,000
Month 3
$500
$2,500
Month 4
$1,500
$4,000
Month 5
$500
$4,500
Month 6
$500
$5,000
Find more money saving charts.
How to save 5000 in 6 Months Bi Weekly?
Have you ever thought about how to save money, but all of the saving advice is based on month? Do you know what the best ways are or do not know where to start?
This is how to save 5000 in 6 months bi-weekly income.
Since you will be paid 13 times over the 6-month time period, you would have to save $385 from each biweekly paycheck.
How to save $5000 in 6 Months Bi Weekly?
Total
Week 1
$385
$385
Week 3
$385
$770
Week 5
$385
$1,155
Week 7
$385
$1,540
Week 9
$385
$1,925
Week 11
$385
$2,310
Week 13
$385
$2,695
Week 15
$385
$3,080
Week 17
$385
$3,465
Week 19
$385
$3,850
Week 21
$385
$4,235
Week 23
$385
$4,620
Week 25
$380
$5,000
All of the other steps apply to make this saving challenge happen.
How can I save $5,000 in 6 Months with Envelopes?
The 100 day envelope challenge is super popular right now.
To save $5,000 in 6 months with envelopes, you have one of two options either to save daily or weekly with a random drawing of an envelope.
Consistent Amounts Weekly Envelope to Save $5000:
Write the numbers 1-26 on each envelope.
For each envelope, you will save $193.
If you prefer to round to a flat $200 each week, you will save $5,200 or an extra two hundred dollars.
Various Amounts Weekly Envelope to Save $5040:
Write the numbers 1-26 on each envelope.
Envelope #1 you save $70.
On each envelope, you add another $10 to the previous amount. (Envelope #2 = $80, Envelope #3 = $90, etc)
On envelopes #24, 25, and 26, you save $300 those weeks
Don’t lose your envelopes!
How can I save $5,000 in 3 months?
Feeling a little bit more ambitious! That is great!
The 100 day money saving envelope challenge saves exactly $5,000. The idea is to save $100 every day for 100 days and then spend the saved amount in one month on whatever you need or want.
Learn more about the 100 day money challenge.
However, this is not feasible for many people because it takes a lot of discipline to do that consistently.
How to Save 5000 in 6 Months Calculator
A calculator helps a person figure out how much they can save in six months.
You know your income and expenses. Grab our free budget sheet and a calculator to figure out how much money you can save.
Saving $5,000 under 6 months is not attainable for everyone because some people will give up after 3 months when they realize how much sacrifice was involved with their savings plan.
That is where you need to stay strong and realize that even accomplishing 30% or 70% of your goal is more than doing nothing and saving zero dollars!
What will your life be like if you reach that goal?
Motivating yourself through small goals is easier when the reason why you’re saving is clear. Talk with family or friends about your reasons for wanting to save more and what it means to you.
More than likely at the end of saving 5000 in 6 months, you have done one of the following:
Whatever your goal is, that is the reason to stay motivated!
Update your progress on saving by sharing monthly updates of your savings progress as well as any important financial news that could inspire others!
Time to Save 5000 in 6 Months
The best way to save $5,000 in 2021 is to live below your means by not spending more than you earn.
Saving money is a great first step, but the next step is to invest your money.
Investing in the stock market is a good way to make sure your savings will grow and you can also take advantage of compounding interest.
This post provides seven quick tips for getting started with your savings goals in no more than 30 minutes a day over the course of six months (which adds up to about $500).
Are you up for the $5k money challenge?
Know someone else that needs this, too? Then, please share!!
Did the post resonate with you?
More importantly, did I answer the questions you have about this topic? Let me know in the comments if I can help in some other way!
Your comments are not just welcomed; they’re an integral part of our community. Let’s continue the conversation and explore how these ideas align with your journey towards Money Bliss.
Rate drops, even marginal ones, are generally welcomed by home buyers sensitive to rates, yet buying activity has stayed persistently low. Although the inventory of homes for sale is growing and increasing choices for buyers, the pressure from high rates and high home prices is still squeezing affordability. “We know the reason [for low demand]: record-high home prices hitting affordability, and also mortgage rates [are] much higher compared to a couple of years ago,” said Lawrence Yun, chief economist at the National Association of Realtors®. The “lock-in effect,” in which many homeowners sitting on low-rate mortgages are choosing to stay put rather than sell, may be wearing off for households needing a change. “Some people need a different size home because they have additional child[ren] in the family, or some people want to change the school district, or jobs have changed, and they want to change based on their commute pattern,” Yun said. “Even at a higher mortgage rate, life changes.” He added that people are starting to normalize higher rates. Still, this doesn’t mean supply is back to normal or pre-COVID levels. April’s supply remains 34% below the same month in 2019. “We still have tight inventory despite the fact that we have this increase from one year ago,” Yun said. “It is just a testimony of how tight the market was in the last year and in the years prior.”
Los Angeles-based home designers Todd Nickey and Amy Kehoe have come full circle, opening a new store in a historic, 4,000-square-foot Greenwich Village brownstone. It’s a homecoming for the pair who met at a dinner party in New York City in the early 2000s when he was a retail designer for Donna Karan and Ralph Lauren, and she was working in hotel design for Starwood Group.
The designers formed a partnership and launched their brand in L.A. in 2004, where they’ve remained somewhat under-the-radar compared to the city’s celebrity design gurus, eschewing TV offers and mass market brand collaborations to focus on building their business more discreetly.
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Blending vintage and bohemian influences with an approachable comfort and warmth, they’ve designed homes for Sarah Paulson, Natalie Portman, Mark Ruffalo, Suzanne Goin and others, as well as stores for Doen.
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They’ve created signature pieces under their own label such as the Spindle Back Viewing Chair, Tuxedo Sofa, Scallop Sconce and String Pendant Lamp, and curated retail boutiques in L.A. and now New York that are must-shops for the fashion and design crowds, whether they are browsing one-of-a-kind vintage pieces, or gifts like hand-painted floral taper candles, Astier de Villatte incense holders and Grainne Morton earrings.
The New York space, located at 49 East 10th Street, is decorated like a home, naturally, with a parlor, sun room, salon, outdoor garden and a marketplace of household gifts. About 70 percent of the business is trade, and the rest is shoppers and enthusiasts.
Nickey Kehoe New York
Kate S Jordan
“Because of our meeting point and shared experience…when shopping used to be amazing, pre e-commerce and Instagram, we’re using that era and the time of discovery, joy and point of view as our reference,” Kehoe said of curating the retail spaces.
In New York, a pair of Swedish Biedermeier stools, French Deco bucket chairs and a French leather two-drawer chest are among the chic vintage offerings.
They buy vintage twice a year in Europe, and have a trip planned to Japan in September. “We try to buy a big mix and New York opens up even more opportunity for a different style,” Nickey said.
Nickey Kehoe New York
Kate S Jordan
Where did they get their eye? “Polo was such a big part of it, it just felt like a boot camp for finding an aesthetic and then so many aesthetics within an aesthetic,” said Nickey of working at Ralph Lauren. “I loved doing the windows, and I started there when it wasn’t a public company so money was no object. We were given the clothes then were able to create the backdrop and figure out where these people lived and vacationed.”
“I worked for Laura Kirar who was really an artist, very boutique, and I got to be part of a process where she considered everything custom. She made all of her furniture for the most part, and made the lighting, so that was an interesting foundation for not buying things off the shelf,” Kehoe said.
When they got to L.A., the design scene was smaller — Kelly Wearstler’s Hollywood Regency style reigned, and Joel Chen, Blackman Cruz and Peter Dunham were the big dealers.
Nickey Kehoe New York
Kate S Jordan
“We got to open in a very gentle time, pre-Instagram, and L.A. is very welcoming of a sort of entrepreneurial passion.…I’m saying this sort of abstractly, but you don’t need references if you’ve got a little bit of talent and a lot of chutzpah, like that’s what Hollywood’s founded on. So people get excited about that kind of energy,” Kehoe said. “We did everything together for probably eight years, and now we divide and conquer.”
They took their time honing their style and introducing their own products. Some of the early hits were a tufted headboard and round coffee table, which morphed into a dining table.
“We released 12 new pieces in the last six months. It’s really interesting to see how it takes a minute sometimes for people to see it number one, even if it’s here, and then use it,” Kehoe said of their slow and steady approach.
Nickey Kehoe New York Household goods.
They also have a full range of household items, some their own, like iron hardware, enamelware dishes and “Painted Lady” waste bins, and others sourced globally, like Frida Kahlo ceramic wine stoppers by Andrea Kashanipour, and the bestselling hand-painted candles by Esme Saleh. “All stuff that brings little bits of beauty,” Kehoe said.
Next up, they’re refreshing the lobby of Shutters on the Beach in Santa Monica, working on more residential projects, and continuing to build out their crafting workshops in both stores, which have had customers trying their hand at botanical watercolor painting, lampshade making, plaster casting and more.
And they’ll continue to fly under the radar — by choice. “We’re both very naturally shy and we would rather go with that very slow burn and see what happens, as opposed to try and be something that we’re not,” Nickey said.