The transaction will be funded through a mix of $1.8 billion in cash and $3.7 billion in Ares shares. A long-term incentive plan for GLP’s leadership could see an additional payout of up to $1.5 billion by 2027, with Ares likely using stock to fulfill part of that payment. Ares’ growth strategy has been heavily … [Read more…]
A debt instrument is a contract that enables one party to loan funds to another party, who promises to repay the loan plus interest. Debt instruments are also referred to as fixed income assets because the lender receives a fixed amount of interest during the lifetime of the instrument.
Debt instruments come in many forms. Some are obvious, such as mortgages and different types of small business loans; while others are less so, such as rental leases, bonds, and treasuries. With some debt instruments, you are the borrower, such as when you take out a mortgage or open a credit card. In other cases, you are the lender, such as when you purchase a bond or treasury.
Here’s what you need to know about debt instruments, the different types of debt instruments, how these instruments work, and the pros and cons of debt financing.
Key Points
• Debt instruments are financial assets that represent a loan made by an investor to a borrower, typically involving fixed payments over time.
• Common types of debt instruments include mortgages, small business loans, bonds, U.S. treasuries, and leases.
• Debt instruments come with a defined maturity date when the principal amount must be repaid.
• All debt securities are debt instruments, but not all debt instruments are securities.
A debt instrument is a fixed income asset that legally binds a debtor to pay back any amount borrowed plus interest. Debt instruments can be issued by individuals, businesses, local and state governments, and the U.S. government.
Businesses often use debt instruments to raise capital to purchase additional assets (such as manufacturing equipment) or to raise working capital, while local governments may do so to fund the building of infrastructure (such as a new highway or a bridge). Debt instruments also give participants the option to transfer the ownership of debt obligation (or instrument) from one party to another.
Debt instruments can be short-term (repaid within a year) or long-term (paid over a year or more). Credit cards and treasury notes are examples of short-term debt instruments, while long-term business loans and mortgages fall into the category of long-term debt instruments.
Recommended: 10 Steps to Starting a Small Business
Debt instruments are broad financial tools representing a loan made by a lender to a borrower, including mortgages, business loans, and leases. They may or may not be tradable.
In contrast, debt securities are a specific subset of debt instruments that are tradable on financial markets, such as government and corporate bonds. Debt securities provide liquidity, allowing investors to buy or sell them before maturity.
The key difference is that all debt securities are debt instruments, but not all debt instruments are tradable securities, emphasizing market accessibility and liquidity for debt securities.
If you’ve ever taken out a loan or opened a credit card, you probably already understand the basics of how debt instruments work. Debt instrument contracts include detailed provisions on the deal, including collateral involved, the rate of interest, the schedule for interest payments, and the term of the loan (or timeframe to maturity).
While any type of vehicle classified as debt can be considered a debt instrument, the term is most often applied to debt capital raised by institutions, such as companies and governments. In this scenario, the investor is the lender: You issue money to a business, municipality, or the U.S. government. In exchange for capital, you are paid back the amount you loaned over time with interest. Examples of this type of debt instrument include U.S. treasuries, municipal bonds, and corporate bonds.
Recommended: Lease or Purchase Equipment
Below is a breakdown of some of the most common debt instruments used by individuals, governments, and companies to raise capital.
U.S. Treasury Securities (also called treasuries) are government debt instruments issued by the U.S. Department of the Treasury to finance government spending as an alternative to taxation. Treasury securities are backed by the full faith and credit of the U.S., meaning that the government promises to raise money by any legally available means to repay them.
U.S. treasuries tend to be more affordable than many other debt instruments. Investors can buy them in increments of $100 either through brokerage firms, banks, or the U.S. Treasury website. There are three types of treasuries: treasury bills, treasury notes, and treasury bonds. Each treasury comes with its own maturity option.
Municipal bonds are offered by various U.S. government agencies (towns, cities, counties, or states) to fund current and future expenditures. Programs often funded by municipal bonds include the building of schools, roads, and bridges. Think of a municipal bond as a loan an investor makes to a local government.
There are two types of municipal bonds: general obligation bonds and revenue bonds. General obligation bonds are not paid back by any revenue resulting from the completion of the project. Instead, they are paid back to investors through property taxes or overall general funds.
Revenue bonds are paid back by the issuer through either sales, taxes, or some other type of revenue generated by the project.
Municipal bonds are attractive to many investors because they are tax-exempt bonds — meaning the investor doesn’t have to pay taxes on any interest received.
Recommended: How to Buy Bonds: A Guide for Beginners
A corporate bond is a debt security that a corporation can use to raise money. Funding is typically available to anyone who is interested. As with other bonds, corporate bonds are essentially an IOU from the company to the investor. It differs from stock in that, instead of being paid dividends when the company is profitable, investors are always paid regardless of whether the company is doing well.
Typically, corporate bond investors are paid interest until the bond matures. When it matures, the entire principal is paid back. For example, a $1,000 corporate bond with an interest rate (or coupon rate) of 5% would bring an investor $50 every year until the bond matures. This means that, after 10 years, the investor would see a gross return of $500.
With secured bonds, the company puts up collateral (such as property or equipment) as security for the bond. If the company defaults, secured bond holders can foreclose on the collateral to reclaim their money. With an unsecured bond, a holder may or may not be able to fully reclaim their investment.
There are many types of structured debt security products on the market, many of which are issued by financial institutions. A common occurrence is for these institutions to bundle assets together as a single debt security product. By doing this, they are able to raise capital for the financial institution while also segregating the bundled assets.
Recommended: What Are the Different Types of Debt?
A residential or commercial lease is a legally binding contract between an owner of a property and a tenant, where the tenant agrees to pay money for a set period of time in exchange for use of the rented property. A lease is a type of debt instrument because it secures a regular payment from the tenant, thus creating a secured long-term debt.
Mortgages are a type of debt instrument used to purchase a home, commercial property, or vacant land. The loan is secured by the property being purchased, which the lender can seize if the borrower defaults on the loan.
As with many other consumer loan products, mortgages are amortized, meaning the borrower makes a series of equal monthly payments that provides the lender with an interest payment (based on the unpaid principal balance as of the beginning of the month) and a principal payment that will cause the unpaid principal balance to decrease each month so that the principal balance will be zero at the time of the final payment.
Recommended: What Is a Financial Instrument?
Understanding the pros and cons of debt instruments helps borrowers make informed decisions about their financing options.
Debt instruments can be mutually beneficial in that both parties become better off as a result. If a company takes out a small business loan and invests those funds wisely, for example, it can increase its profitability. Ideally, the increase in profits exceeds the cost of the loan, a concept known as leveraging in business. Borrowing money also allows a company to raise capital without losing equity.
Debt instruments also benefit individuals and governments. Without mortgage debt, many people would never be able to buy a house; without student loans, many individuals would not be able to go to college. For governments, debt instruments allow them to build infrastructure for the public good.
On the lender’s or investor’s side, debt instruments can provide a regular and guaranteed source of income and are considered a safe investment, provided the loan is secured.
But there are downsides to debt instruments, as well. Loans often come with restrictions on how they can be used and, if you don’t have good credit, interest rates can be high. Borrowing money also involves risk. Most commercial institutions will require you to put up collateral in the form of a property asset. If you lose your income or your business hits hard times and you cannot repay your loan, the lender can reclaim its debt by liquidating whatever you proposed as security, which means you can lose a valuable asset.
On the lender’s or investor’s side, debt instruments also come with risk. Unless you purchase a secured bond, you may not receive your principal back as the investor. Also, during periods of high inflation, bonds can actually have a negative rate of return. And, if you invest in corporate bonds, there is always the possibility that the issuer will default on payment.
| Pros of Debt Instruments | Cons of Debt Instruments |
|---|---|
| Allows companies to expedite their growth | If a borrower has poor credit, interest rates can be high |
| Allows companies to raise capital without diluting equity | Loans often come with restrictions on how they can be used |
| Enables individuals to buy a home or pay for college | Loans often require collateral, which can be lost if debtor defaults on loan |
| For lenders/investors, secured debt is a safe investment | Investors can lose money if bond value declines |
| For lenders/investors, debt instruments provide steady income | Bond investors can lose money during periods of high inflation |
A debt instrument is a way for an investor to get a return on their money by loaning to either an individual, business, municipality, or the U.S. government. If you have a credit card or mortgage, or you own any bonds or treasuries in your investment portfolio, debt instruments play a role in your life.
Small business owners can also take advantage of debt instruments. You might not be able to issue corporate bonds at this stage of the game, but you may be able to access an affordable small business loan.
If you’re seeking financing for your business, SoFi can help. On SoFi’s marketplace, you can shop top providers today to access the capital you need. Find a personalized business financing option today in minutes.
With SoFi’s marketplace, it’s fast and easy to search for your small business financing options.
Common examples of debt instruments include personal loans, business loans, mortgages, leases, bonds, treasuries, promissory notes, and debentures.
With a debt instrument, the investor does not own any portion of the company. With equity, the investor is buying a portion of the company.
Debt instruments have three characteristics: principal, coupon rate, and maturity. Principal refers to the amount that is borrowed. The coupon rate is the interest amount paid by the borrower to the lender. Maturity is the end date of the debt instrument. It refers to when the debt is completely paid off with interest.
Photo credit: iStock/insta_photos
SoFi’s marketplace is owned and operated by SoFi Lending Corp. See SoFi Lending Corp. licensing information below. Advertising Disclosures: SoFi receives compensation in the event you obtain a loan through SoFi’s marketplace. This affects whether a product or service is featured on this site and could affect the order of presentation. SoFi does not include all products and services in the market. All rates, terms, and conditions vary by provider.
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.
SOSMB-Q324-046
Source: sofi.com
When Halloween rolls around, it’s time to transform your space into a spooky wonderland. Drawing inspiration from the whimsical yet eerie aesthetic that Tim Burton is known for, you can create a haunted yet enchanting vibe. Whether you’re aiming for a full-on fright fest in your Austin, Texas home or just a touch of spooky charm in your Cincinnati apartment or Charleston rental home, these decor ideas will help you bring out your inner Burtonesque style while keeping it playful and festive.
Halloween is the perfect time to get creative with your decor, blending spooky vibes with a touch of whimsy. From unique color palettes to gothic-inspired displays, even the most imaginative minds — like Tim Burton himself — would be impressed by these hauntingly captivating setups.
For extra flair, without breaking the bank, consider repurposing everyday household items to show gothic glam. “Repurpose vintage vases or drinkware as eerie candle holders, adding a touch of gothic elegance to your home,” Courtney and John Achilli, proprietors of Content + Co. recommend.
They add, “Give new life to thrifted frames by painting them black, filling them with creepy crawly artwork or prints, and creating a Halloween-themed gallery. You can also make your home even spookier by creating a haunting atmosphere with stacks of dusty, vintage books or cut-out creepy images or passages that you can transform into a book of spells.”
Julie Boston, with Capturing Wonderland, emphasizes the beauty of utilizing vintage finds. “Incorporating antique finds like weathered books, brass candlesticks, and old-fashioned lanterns into your Halloween décor is perfect for the vintage-inspired or literary lover. Choose rich, muted tones like burgundy, mustard yellow, and faded black to evoke an old-world charm. Decorate with vintage postcards, old keys, or even literary prints from classic Gothic novels to add a literary twist. Thrifted lace curtains or tattered doilies can create an eerie yet elegant look when paired with aged furniture or dark wood accents.”
Skeletons are a Halloween staple, but how you display them can make all the difference. “Create an eerie yet elegant atmosphere by combining deep purples and blacks with flickering candlelight, as mentioned earlier,” shares Muhammad Muneeb Ali with My Spirit Halloween. “Add vintage, gothic-inspired pieces like candelabras or skull-adorned mirrors for a sophisticated twist. For a hauntingly cozy touch, drape faux cobwebs and spooky garlands around doorways and windows.”
Add a playful element to your Halloween decor by incorporating spooky but whimsical figurines. Think plush creatures with large eyes, toothy grins, or stitched-up mouths that are more fun than frightening. Look for figurines of bats, witches, or black cats with exaggerated features, creating a Burtonesque twist while keeping it family-friendly. Scatter these characters throughout your home — on bookshelves, by the entryway, or even as table centerpieces.
Image courtesy of Laura’s Books and Blogs
Lighting sets the tone for any Halloween setup, and can often be overlooked. “Setting the perfect scene for Halloween starts with the right lighting,” emphasizes Daisies in Clover LLC. “Consider swapping out regular bulbs for purple, green, or orange bulbs in lamps and fixtures throughout your home. String lights with pumpkins, bats, or ghosts are perfect for parties, but even purple fairy lights can take your space from plain to spooky with just the touch of a button.”
It’s essential to consider outdoor lighting too when crafting a ghoulish grouping. “You can never have too many lights, especially outside,” emphasizes Laura Smith with Laura’s Books and Blogs. When it comes to pairing lighting with other decor, Laura recommends getting crafty. “Make your own simple decorations that you can display or give away as gifts, and take into account how much shelf space you have before buying or making more indoor decor and lighting.”
“Halloween doesn’t necessarily mean you have to stick to a black and orange theme. You can easily transition to spooky season with non-traditional colors like terracotta, sage, teal, olive green, navy blue, burgundy, plum, or brown to name a few,” Lauren O’Malley with The Styled Abode shares. “For an elegant yet spooky take on Halloween, incorporate lighter tones of neutrals, peach, or pink with pops of black, bronze, or gold. Dress a poseable skeleton in satin or lace, and accessorize with large fresh or dried floral displays, elegant glassware, and plenty of glowing candles.
“If you prefer a dark and moody theme, think deep jewel tones like burgundy, emerald, or maroon and accessorize with metallic pumpkins, black tapered candles in a gold or bronze base, and dark Halloween decor like black spider webs, skulls, and vintage apothecary jars,” O’Malley concludes.
As Lauren mentioned, florals and topiaries are a subtle way to bring Halloween into your space while keeping it stylish. Create eerie, twisted topiary shapes out of faux plants, like black spirals or gnarled branches. For indoor arrangements, dark florals like black roses, blood-red dahlias, or deep purple hydrangeas make for the perfect haunted bouquet. Place them in worn-out or distressed vases and layer in some fake cobwebs or skull accents for a spooky touch.
For extra decorative flair, craft a Halloween wreath (and save yourself a few cents). “I recently made this Halloween wreath. The use of purple, black, and orange really brings the holiday to light,” Diana Callaghan with Sew Very Crafty shares. “A trip through the Dollar Tree store can give you so many ideas, especially during the holidays, Halloween in particular. Dollar Tree crafts are simple and inexpensive to make, making it my go-to for easy design projects.”
Consider using black lace or intricate macramé that mimics the web-like designs but in a more elegant fashion. “Cover your pillows and stacks of books (pages front-facing) in black spiderweb lace to create a spooky, haunted effect,” recommends Alexandra of Home with Alexandra. “Drape your yard and house with loads of white webbing too. Place white webbing in your yard and inside for a truly creepy forest atmosphere. With a little creativity and a lot of Halloween spirit, you can create a home that’s as spooky as it is fun.”
The greatest way to elevate your Halloween decor is to gain inspiration from others. Explore social media, browse Pinterest, or host a decorating contest to discover new and creative ideas that can add a unique twist to your own spooky setup. “Halloween is such a fun holiday,” explains Melanie at Next Phase Parenting.
“A great way for a student to get involved at college is to participate in a decorating contest for their dorm room or apartment! If you only purchase small and flat things, the need for storage is minimal. There are so many great ideas for a small space!” With the right combination of creativity and compact decor, even small spaces can deliver a big, spooky impact that’s perfect for the holiday.
These Halloween decor ideas will transform your home into a spooky yet stylish setting. By combining gothic elements, playful characters, and haunting details, you can strike a balance between creepy and charming — something that would surely make Tim Burton smile. Whether you want to go all out or keep it simple, these ideas will help you create a Halloween atmosphere that is uniquely enchanting.
Source: rent.com
The best place to buy a used car — whether it’s a traditional car dealership, used-car website or private seller — depends on your priorities and needs. When you know the various options for buying a used car, along with the advantages and disadvantages of each, it can help you target those that are best for you.
If you want to browse a selection of used cars in person, take a test drive and negotiate price, a traditional car dealership may be a good option for you. You can get financing on site, although it’s always best to come with a preapproved auto loan for comparison. Also, the dealership will handle most of the paperwork for you.
On the downside, you can expect higher prices than you’ll find at other places and possible sales pressure from employees driven by quotas and commissions.
Before you visit a dealership, browse their online auto listings and read customer reviews. Also, be aware that different types of used-car dealerships exist, and one may be a better fit for you than another. Here’s a brief rundown:
Franchise dealerships are affiliated with certain car manufacturers, and they sell both new and used vehicles. New cars in their inventory are limited to makes and models of the affiliated car maker, but used cars could be different brands, usually obtained from customer trade-ins. Franchise dealerships also sell certified pre-owned cars (CPO cars), which are used cars of that dealership’s brand. CPO cars have been inspected, reconditioned with factory parts and typically come with the best warranties, so they’re considered to be among the most reliable used cars.
If you have a specific make and model in mind, you’re likely to find a better selection at a franchise dealership.
Franchise dealerships with CPO cars are an opportunity to buy a used car in like-new condition.
This type of dealership usually has a larger network of lending partners to help you find a competitive rate on an auto loan.
If you’re looking for a range of makes and models, the used-car lot at a franchise dealership is less likely to offer that.
Franchise dealers often have the expense of bigger showrooms and employee teams, which can result in higher car prices.
If you buy a CPO car, expect it to have a higher price tag than a non-certified pre-owned car.
Independent dealerships aren’t affiliated with a certain car manufacturer and are usually owned and operated locally. They can be a single location on a corner lot or a full-sized dealership with multiple locations around town.
Independent dealerships have a mix of makes and models, since they aren’t affiliated with a specific car manufacturer.
Independent dealers usually don’t have as much overhead, so they’re able to sell used cars for less.
Smaller independent dealerships may have limited inventory.
Independent dealerships often have fewer financing connections and options, so you may be offered a higher loan rate than you could get elsewhere.
National dealerships have many locations across multiple states. They have a big online presence, with car listings searchable by area and an ability to handle the sales process remotely.
One national car dealer is AutoNation, which has more than 300 locations in 20 states and more than 18,000 used vehicles, including CPO cars, listed for sale online. Another is CarMax with 200-plus stores nationwide and an inventory of more than 45,000 cars listed online. If you aren’t near a national dealer’s location, you can pay to have the car you buy shipped to your home.
National dealerships, compared to other types of dealerships, have the largest inventories and variety of makes and models.
You can easily search their website listings and manage the entire buying process online.
National dealerships usually have no-haggle pricing.
Cars purchased from national chains often come with a limited money-back guarantee and warranty. For example, CarMax allows you to return a car within 10 days of its purchase, and cars come with 90-day or 4,000-mile warranty.
If the car you find is located across the country, test driving can be difficult. You might be able to pay to have the vehicle sent to a nearby location for a test drive, with no obligation to buy.
If you prefer negotiating on price, that isn’t likely to be an option.
Money-back guarantees may not apply for cars delivered to customers out of state, so check the fine print.
Car rental companies update their fleet of vehicles every year or two, and many of those cars are sold by their sales divisions. Rental companies have a limited number of used-car dealerships, with available cars also listed on their websites.
Used rental cars usually sell for competitive prices.
Rental cars have a strict maintenance schedule, which isn’t always the case for other used cars.
Rental cars are often sold with an extended warranty.
Rental cars may have higher mileage or more wear and tear than other used cars.
Inventory for used rental cars is limited, and you may not be able to find a specific make and model.
Many car-buying websites are operated by companies that don’t have their own car lots or showrooms. These sites differ in how they operate and obtain vehicles, so the best websites to buy used cars won’t be the same for everyone. Here are a few examples:
Online auto retailers, like Carvana, operate much like a dealership but without traditional dealer locations. They have their own inventory to sell, and they may list cars from dealership partners.
Online car retailers have a large inventory and variety of makes and models.
The retailer can handle all or most of the car-buying process for you, including financing and title transfer/registration if allowed in your state.
Cars purchased from online retailers usually come with a limited money-back guarantee and warranty. For example, Carvana provides a seven-day money-back guarantee (with a limit of 400 miles) and a warranty covering 100 days or 4,189 miles.
Prices aren’t typically negotiable, so you can avoid the stress of haggling.
You may have to pay to have a car shipped or delivered to your home or other agreed location.
You probably won’t be able to test drive a car until it’s delivered.
If you like to negotiate on price, that may not be an option.
Websites like Autotrader and Cars.com aggregate listings for used cars from dealerships and private sellers. Online aggregators may include listings from sites like CarMax and Carvana.
Auto marketplaces provide an easy way to view cars for sale without having to visit multiple websites.
Because they pull listings from many sources, these sites can have millions of listings from across the country.
Aggregator sites enable you to connect directly with a seller to ask questions or set up a test drive. An identity check is done for private sellers.
Since you’re not purchasing from the aggregator, many details — like whether you can negotiate or receive a warranty — will depend on the seller.
If the car you find isn’t located nearby, it may be difficult to test drive it.
You may have to pay to have a car shipped or delivered to you.
Also commonly referred to as a private-party sale, individual car owners are another source for buying a used car. “Cars for sale by owner” can be found through websites like Facebook Marketplace and Craigslist.
Negotiating with a private-party seller may be easier than negotiating with a trained salesperson at a dealership.
If you’re looking for an exact make and model, you may be able to cast a wide net online and find it for sale by owner.
Private sellers won’t push expensive add-ons, like paint protection packages.
Since you’ll be responsible for paperwork typically handled by a dealership, buying from a private party is more time-consuming.
You’ll need to be cautious to avoid potential scammers.
Your car won’t have warranty coverage, unless it’s still covered under the original manufacturer’s warranty.
Auto-auction businesses provide many used cars to dealerships that then resell them, but some auctions are public so anyone can participate. Auctions may be in person, online or a combination of both.
Buying a used car at an auction can be a way to get a good deal.
Auctions usually have a wide variety of used cars.
If the auction is nearby, you should be able to inspect the car before bidding.
Fast-paced bidding can run prices up and cause you to overspend.
Auctions usually sell cars “as-is,” so you have no recourse if the car is defective and in need of costly repairs.
You typically can’t test drive the vehicle before buying it.
Ultimately, the best place to buy a used car is wherever you can find the best deal on a reliable vehicle. You can improve your chance of doing that if you follow these basic tips before buying a used car:
Look at the car’s vehicle history report, such as Carfax or AutoCheck, for information about the car’s past, such as major accidents, maintenance and title information. Most dealerships offer buyers a free vehicle history report, but you may have to pay for one yourself if you buy from an individual.
Enter the car’s vehicle identification number (VIN) on the National Highway Traffic Safety Administration website to find its recall history and see if any problems still need to be addressed.
Research the car’s current market value using online pricing guides like Kelley Blue Book or the National Automobile Dealers Association to ensure it’s listed at a fair price. If you’ll be trading in a car, research the trade-in amount you should expect too.
Test drive the car to see how it accelerates, handles and drives. Driving a car can alert you to potential problems that might not be evident any other way. Test driving is important, so if it isn’t an option at all — for example, if you buy at an auto auction — it could be a reason not to buy a car that way.
Get the car inspected by an independent mechanic that you trust. Used car inspections cost several hundred dollars, but they can prevent you from later paying thousands of dollars for car repairs. Note that CPO cars receive thorough inspections, so it isn’t necessary to have a separate one. Also, if you have a car shipped to you, make sure to have it inspected and test drive it before any money-back guarantee expires.
Source: nerdwallet.com
Homeowners who purchased in the last year or so could drive themselves nuts trying to find the perfect time to refinance. After all, it hurt bad enough to miss out on those once-in-a-lifetime low rates of 2020 and 2021, and it’s hard to pull the trigger when refinancing today could potentially mean missing out on even lower rates next week.
This week was a great example of how much mortgage interest rates can change in a short window of time. The 30-year fixed-rate mortgage rate spiked 21 basis points to an average of 6.4%. That’s a whopping 51 basis points more than in the week ending Sept. 19, immediately following the last Federal Reserve meeting. A basis point is one one-hundredth of a percentage point.
Rather than waiting for rates to hit their lowest, homeowners may be better off calculating what rate would give them a reasonable break-even point — the number of months or years it would take to recoup the refinancing costs — and make that their goal.
For instance, suppose a borrower got a $300,000 30-year conventional mortgage in early October 2023 at a rate of 7.5%, which was typical for that time. Refinancing to 6.12% — the average rate posted by Freddie Mac on Oct. 3, 2024 — would result in monthly savings of nearly $300 and savings of $80,155 over the entire life of the loan. Assuming the borrower pays $6,500 in closing costs, the break-even point would be 22 months, or just under two years.
Explore mortgages today and get started on your homeownership goals
Get personalized rates. Your lender matches are just a few questions away.
While Fed watchers are predicting further cuts to the federal funds rate through the rest of this year, mortgage rates don’t have to vary much to create sizable implications for the refi market. According to an October report from real estate tech firm ICE Mortgage Technology, rates falling from 6.4% in August to 6.1% in September grew the number of households who would benefit from refinancing by 1.3 million. An additional mortgage rate drop of 25 basis points (which is within a fair range of normal weekly or even daily changes) would add another 1.2 million to that pool of potential refi candidates.
On the flip side, an Oct. 9 Zillow analysis of homebuying data estimates that approximately 275,000 more households would benefit by refinancing at 6.1% than at 6.6%. According to Zillow, that 0.5-percentage-point rate increase represents a combined loss of over $6 billion in potential refinance savings over five years.
If you find that refinancing may soon be on the table after you’ve calculated your target rate, you can prepare by getting your financial profile in shape. Get a copy of your credit report, and contact the credit reporting bureaus if you note any mistakes. Pay down existing debts as much as possible, as lowering your debt-to-income ratio will make you a more attractive borrower and can get you a lower interest rate. You should also avoid making any large purchases on credit, like buying a new car or financing new furniture.
Additionally, if you’ve only recently purchased your home, review your closing contract to see if there’s a prepayment penalty for refinancing before a certain number of months have passed. If you’re stuck with that fee, you’ll want to factor that into your break-even calculations and see if that affects your goal rate.
Explore mortgages today and get started on your homeownership goals
Get personalized rates. Your lender matches are just a few questions away.
Source: nerdwallet.com
As summer’s warmth gives way to the crisp embrace of autumn, Coeur d’Alene, ID transforms into a vibrant tapestry of colors, inviting locals and visitors alike to revel in the season’s splendor. Seated between stunning mountains and the shimmering shores of Lake Coeur d’Alene, this charming town offers extensive things to do in Coeur d’Alene that celebrate both nature and community.
Whether you’re thinking about renting a house or an apartment in Coeur d’Alene, ID, contemplating buying a home, or just starting to envision your life in this beautiful area, we’ll provide a glimpse of what this town has to offer during the fall season.
Start off your Coeur d’Alene bucket list with a brews cruise to have an unforgettable experience that combines an exciting meander around town with the thrill of local craft beers. As you take a ride through downtown, you can sample a variety of brews from nearby breweries, all while soaking in the breathtaking scenery of the surrounding mountains.
Meredith Bennett, blogger at Idaho Wanderer, shares, “I highly recommend booking a tour with Coeur d’Alene Brews Cruise for the perfect weekend outing to unwind, explore, and raise a glass to beautiful Coeur d’Alene, warmly known by locals as CDA.”
Bennett continues, “The guides take you behind the scenes to see the brewing and distilling magic first-hand, all while enjoying delicious tastings. It’s the perfect way to take in the local breweries.”
Whether you’re a beer enthusiast or simply seeking a fun outing, the brews cruise is sure to impress. Plus, the new knowledge you’ll have about the process makes every sip even more enjoyable.
At Grandpa Woody’s Pumpkin Patch, fall feels like stepping back in time to a simpler era. The small family-owned farm is filled with old-fashioned charm, offering visitors a warm and welcoming experience, just like visiting grandma and grandpa’s house.
Enjoy roasting marshmallows over a fire with warm apple cider and visiting the friendly sheep and goats after choosing your pumpkin of the year. Don’t forget to indulge in delicious homemade Greek pastries, while perusing their gift shop that supports the farm animals. If you’re looking for fall things to do in Coeur d’Alene, this farm is a must-visit.
Coeur d’Alene Coffee Co. is the ideal fall destination for a cup of pumpkin delight. The crisp air carries the aroma of freshly brewed coffee as vibrant autumn leaves paint the landscape outside. Inside, the warm fireplace invites you to sip on a Cider Cloud Brew or a Pumpkin Patch, a tasty chai sweetened with homemade pumpkin sauce.
It’s the perfect spot to unwind with a good book or catch up with loved ones amid the beauty of fall in downtown CDA.
Wine tasting is a delightful journey for the senses, where you can explore a variety of flavors and aromas. Bring the wine to your Idaho home with a tasting class hosted by Sharon Irvine, a certified American Wine Expert and owner of North Idaho Wine Maven.
With options ranging from wine and cheese pairings to exclusive wine dinners with a private chef, there’s no shortage of exciting choices. For both beginners and seasoned enthusiasts, this hands-on experience is guaranteed to enhance your palate and provide an enjoyable fall night in.
“Fall in Coeur d’Alene is a beautiful time of year, as the long summer days retreat and the days get shorter, we distract ourselves from thinking about the long winter ahead with the Oktoberfest celebrations at restaurants, pubs, and breweries downtown,” adorns Krista Spencer-French at Stylus Wine and Vinyl Bar.
The certified sommelier proceeds to share, “Our local farmers markets have gorgeous produce and baked goods that are perfect for fall meals and celebrations. They also sell beautiful artisanal crafts that are ideal for holiday gift shopping. With the beautiful fall foliage and the lake as a backdrop, CDA is the place to visit in the fall.”
You don’t need a pros and cons list to know that farmers markets are all the rave in these small Idaho towns. Strolling through the vibrant stands, you can find everything from fresh fruits and vegetables to handmade crafts and gourmet treats. The friendly vendors are always eager to share their stories and tips, making it a great opportunity to connect with the community.
North Idaho photographer Stephanie Florence at Lens & Light Photography, suggests, “For fans of Halloween and theme parks, Scarywood Theme Park is definitely worth the trip. I love the Timber Terror coaster which you can ride backward in the dark.”
Visiting Scarywood Theme Park during the fall is one of the most exhilarating things to do in Coeur d’Alene. Filled with thrilling rides and spooky attractions, Silverwood Theme Park transforms for Halloween to give guests bone-chilling haunts, hair-raising scare zones, and rides that come alive with eerie twists—it’s the perfect way to get you into that spooky season spirit.
“This year, Scarywood Haunted Nights features ten scare zones and five haunted attractions to keep your blood pumping this Halloween season,” states Tyler Proffet, co-owner of The Scare Factor, an online directory of America’s best haunted houses.
Whether you’re a horror enthusiast or just looking for some spooky fun, Scarywood delivers unforgettable excitement for all. Face your fears and make memories that will haunt you until next season.
Known as one of the best places to live in Idaho, Coeur d’Alene is a breathtaking spectacle in the fall, with vibrant hues of red, orange, and yellow painting the landscape. “One of the best fall things to do in Coeur d’Alene is hiking Tubbs Hill and seeing the beautiful changing foliage,” recommends Nicola Manning, marketing manager at Barrel 33 Sandpoint.
The fall leaves transform the region into a stunning tapestry of colors, drawing nature lovers and photographers from near and far. As the days grow shorter, the golden light of autumn enhances the landscape, creating picture-perfect moments that capture the essence of this enchanting season.
“You can’t beat the fall season when planning a trip to visit CDA,” shares Jennifer Bailey, events coordinator and social media content creator at Blackwell Boutique Hotel. To fully appreciate and take in the season, Jennifer suggests taking a nice easy walk, hike, or bike ride along Centennial Trail to Higgins Point, a breathtaking natural area with a beautiful view of the shores of Lake Coeur d’Alene.
Biking during the fall is one of the top things to do in Coeur d’Alene, as the crisp air and bright leaves create an autumnal backdrop. The trails wind through stunning landscapes, with leaves crunching under your tires and the brilliant colors of autumn surrounding you.
Darrell Dlouhy, co-owner of Daft Badger Brewing, Coeur d’Alene’s first brewpub, shares, “One of the top biking trails in the nation, Trail of the Coeur d’Alenes, is a 73-mile bike trail that follows the Coeur d’Alene River which feeds our picturesque lake.”
The breathtaking views are just one of the many perks of biking, as you also have the chance to encounter diverse wildlife along the trails. Dlouhy continues, “More often than not, you might encounter a moose on the trail or in the wetland nearby. On a recent ride, I saw six moose in a 10-mile stretch.”
“One of my favorite fall things to do in Coeur d’Alene is to make a trip to Green Bluff, a cooperative of farms located in a nearby town,” proposes Andrea Nagel, a blogger at Stuck in North Idaho, an adventure blog featuring local activities in North Idaho.
“Each year they host the Apple Festival, ripe with apple and pumpkin picking, fresh ciders and pies, and our personal favorite, pumpkin donuts. Nothing puts me in the fall spirit more than the beautiful drive surrounded by fall colors and a festive atmosphere,” shares Nagel. “Each farm offers something different including activities for families (mazes and hayrides) and unique breweries, wineries, and a meadery that supports a local animal rescue.”
Visiting local farms in the Pacific Northwest is a delightful way to experience the region’s rich agricultural heritage. Whether you’re looking for fresh ingredients or a fun family outing, the local farms offer a unique and memorable fall experience.
Idaho is a paradise for outdoor enthusiasts, offering a diverse array of activities year-round. From hiking and biking along scenic trails to kayaking and paddleboarding on beautiful lakes, there’s no shortage of ways to immerse yourself in nature. “Coeur d’Alene is a stunning outdoor haven, surrounded by lush forests, shimmering lakes, and endless hiking trails, offering boating, camping, and scenic beauty at every turn.” Joe Santiago at Real Estate Photography of Coeur d’Alene states.
In late November and early December, this area draws wildlife enthusiasts and photographers from around the globe, providing them a rare chance to observe hundreds of bald eagles in their natural habitat.
“The eagles come here yearly to feast on the spawning bright red Kokanee Salmon. On any given day during this time of fall, you can see hundreds of these majestic birds,” says Jennifer Bailey at Blackwell Boutique Hotel. “One day in December 2023, there was a record of 409 eagles.”
Seeing bald eagles in their natural habitat is truly awe-inspiring, as these majestic birds soar gracefully in the sky. Experiencing this iconic symbol of freedom in the wilderness of Idaho fosters a deep appreciation for wildlife and the importance of preserving their habitats.
Visiting local farms in Coeur d’Alene during the fall and winter festivities is an engaging and exciting way to celebrate the seasons. From pumpkin patches and corn mazes in the autumn to holiday markets featuring fresh produce and handmade gifts in the winter, each farm offers a unique experience filled with seasonal charm. Families can enjoy hayrides, festive decorations, and the joy of picking their own produce.
“There are some great farm things to do in Coeur d’Alene this fall. Prairie Home Farm, Grandpa Woody’s Pumpkin Patch, and Taking Root Flower Farm all have fun fall events taking place,” recommends the Panhandle Farm Corridor Team.
Ready for the holiday season to come a little faster? The Panhandle Farm Corridor Team assures, “Coming up in November is Cable Creek Christmas Tree Farm for Christmas trees and wreaths.” These upcoming events make North Idaho the perfect place to embrace the spirit of the season in the heart of the community.
From picturesque hikes adorned with golden leaves to cozy events that capture the spirit of the season, there’s no shortage of ways to immerse yourself in the beauty of fall. Whether you’re a thrill-seeker, a nature lover, or simply looking for a cozy weekend escape, Coeur d’Alene has more than what Idaho is more commonly known for, it has something special waiting for you that promises an unforgettable experience to capture the essence of the season.
Source: rent.com
Looking for the best Amazon hacks to save money? If you’re like me, you’re always looking for ways to save a little extra cash, especially when shopping on Amazon. Sure, Amazon already has great prices, but what if I told you there are even more ways to cut down your costs? Over the years, I’ve…
Looking for the best Amazon hacks to save money?
If you’re like me, you’re always looking for ways to save a little extra cash, especially when shopping on Amazon. Sure, Amazon already has great prices, but what if I told you there are even more ways to cut down your costs?
Over the years, I’ve found so many helpful tips and tricks that I couldn’t wait to share them with you.
Whether you’re a frequent shopper or just looking to make the most of your Prime membership, these 15 Amazon hacks will help you save money you didn’t even know you could! From using price-tracking tools to earning free gift cards, this list covers everything you need to know to save money.
Recommended reading: 7 Ways To Get Paid For Amazon Reviews
Below is what you need to know about the best Amazon hacks to save money.
Amazon often offers promo codes for thousands of products, and sometimes they’re automatically applied at checkout.
To find coupons and deals, go to Amazon’s homepage, “Today’s Deals” or search “Amazon coupons” in the search bar. Doing this will show you a list of the best deals on Amazon for the day which can include items like cosmetics, household supplies, electronics, and almost anything else you can think of.
Some items are reduced automatically, while others make you clip a coupon on the item’s link to get the savings. When you’re ready to check out, make sure the coupon has been clipped and added to your order summary.
Occasionally, the app will have exclusive coupons and discounts, so it’s worth it to have the app if you shop on Amazon a lot.
Tools, like Capital One Shopping, can help you find the best deals by tracking price drops. This comes in handy for Amazon products since the prices change so often. For example, a lot of people were finding that Amazon Prime Day items were actually more expensive than before Prime Day.
Other popular price-match tools are Honey and Camelcamelcamel.
To make things more convenient for you (and so you don’t forget to use these price-matching tools), I recommend installing a browser extension on your computer. These extensions make it easy to check any item you’re looking at on Amazon instantly.
You can also set up price drop alerts that will notify you when a price drops to your target price.
Recommended reading: Capital One Shopping Review: Is It Worth It?
There are ways to never pay Amazon shipping, and here are just a few.
Thanks to the above tips, I never pay for shipping on Amazon.
Amazon has a special offer for users called “No-Rush Delivery” where they’ll give you free credits.
Instead of getting your product in two days or less, you’ll get your items a few days later. You can choose this item during checkout.
These credits can be used towards digital content (eBooks, music, movies). The reward credit is usually between $1-$5.
Credit cards are a fantastic way to get cash back and make money back from your purchase.
I use an Amazon Chase card that gives me 5% cash back on all purchases that I make at Amazon as an Amazon Prime member. Nonmembers get 3% cash back on all purchases made on Amazon.
This can add up to hundreds of dollars over the year.
Amazon’s Subscribe and Save is a handy way to save money on items you regularly buy on Amazon like cleaning supplies (such as paper towels and toilet paper), cosmetics, groceries and food, vitamins, baby items (like diapers), and so much more. This also includes free shipping and a discount.
For example, if you buy 5 or more subscribe & save products, you can save up to 15% on your order.
Yes, you can get free Amazon gift cards by filling out surveys.
This isn’t a fast way to make extra money, but it’s something you can easily do on your couch or when you’re trying to pass the time.
Here’s a list of the best survey sites:
You can also earn free Amazon gift cards by playing games on your phone. My sister recently earned $300 in free Amazon gift cards by playing Bingo on the Freecash app. She made this much in just one week!
Recommended reading: 20 Best Survey Sites To Make $100+ Per Month
Did you know that you can get hundreds of free products, worth thousands of dollars every year from the Amazon Vine Program?
This program is easy to join and gives you access to thousands of items you can use or gift to friends and family. The Vine program lets you request up to 8 items per day, so you can find all sorts of things you need or totally random items for starting a new hobby.
You may be eligible to be an Amazon Vine Voice Reviewer if:
Recommended reading: How I Received $4,500 in Free Amazon Products by Writing Reviews
If you’re a student and enrolled in a college or university, you can probably get a free trial or reduced subscription rate on Amazon Prime. Amazon Prime benefits are awesome because you usually get lower prices and free 2-day shipping.
This can make your Amazon Prime account as low as free or around $7 a month (after the 6-month trial period), so this is definitely one of the best Amazon hacks to save money on a Prime membership.
To qualify for an Amazon Prime Student account, you need to have an active .edu email address to sign up for your Prime membership. Amazon will send a verification email to your school email address. This is how Amazon confirms that you’re a student.
You can sign up for an Amazon Prime Student account by clicking here.
With certain credit cards, you can automatically apply your points to your Amazon purchase.
For example, I have an Amazon Chase credit card that makes it really easy to use points when I’m checking out on Amazon.
When I’m at the checkout page on Amazon, the payment area includes a section where I can use my Amazon cash-back points on Amazon purchases.
Amazon has a trade-in program that helps you turn your old and unwanted electronics into money.
To do this, just go to the Amazon Trade-In page and tell Amazon about the device you want to trade in. If the electronic is eligible for a trade-in, Amazon will either give you an Amazon gift card or a 20% off coupon, or sometimes both.
You’ll then ship your electronics via UPS for free or drop your old devices off at an approved trade-in location within 45 days. This is a great option for people who like to get the latest tech gadgets or want to declutter.
Amazon Outlet is a section on Amazon that features Amazon warehouse and overstock items that are on discount. This section features discounted items across all categories including:
Use the filter and sort items to narrow down your search to make the shopping process less overwhelming. Also, make sure to check customer reviews and check product descriptions to make sure the item is of good quality.
If you’re a fan of audiobooks, Audible usually has promotions offering free audiobooks and free trials. As of this writing, Audible has a 3-month offer for only .99 cents, then $14.99 each month after.
Audible includes:
You can find free Audible books by clicking here.
Amazon has lightning deals that are time-sensitive and limited in quantity across different categories.
On the Deals page, look out for the lightning deal badge next to products. Here you’ll see how long the deal lasts or how much of the item is left.
You can also filter deals by category to help you narrow down items. This makes it easier to find items you’re interested in. If an item you’re interested in is 100% claimed, get on the waitlist. If someone doesn’t complete their purchase, you’ll get a notification. You’ll have a short window of time to complete the purchase before the item goes to the next person on the waitlist.
Creating an Amazon registry is a great idea whether you’re having a wedding, expecting a baby, or celebrating another event.
This is also a great way to get a discount on items.
After your event date, Amazon gives a one-time discount on items left on your registry. The discount is typically 10-15% off (higher for Prime members) and applies to select items. You can read about this on Amazon’s website here.
My sister made a baby registry on Amazon when she was pregnant and this Amazon shopping hack definitely works! She was able to save a good chunk of money on the baby registry items that were not bought at her baby shower. I also know of friends who did something similar after they made their wedding registry!
You can create your registry for free on Amazon by clicking here.
Below are answers to common questions about the best Amazon hacks to save money.
To save the most money on Amazon, take advantage of these money-saving hacks:
If you have a problem overspending on Amazon, use the following tips:
There are many ways to get free stuff on Amazon. Here are some of the best hacks:
If you’re a student, sign up for a 6-month free trial of Amazon Prime Student. The membership costs for students are usually half the cost of a regular Prime membership. You can get the discounted Prime membership rate for up to four years, as long as you have a .edu email address.
You can also pay for your Amazon Prime membership annually instead of monthly. This will give you a discounted per month price.
Another tip is to think about whether you need Amazon Prime year-round. Some people only need it for the holiday season when shopping picks up, while others use the membership year-round.
I hope you enjoyed my article on the best Amazon hacks to save money.
Using these 15 Amazon hacks can save you tons of money over time and help you use your Amazon Prime membership better.
Whether you’re using price tracking tools or trading in electronics you no longer use, these tips will help you get the most out of your Amazon shopping experience.
Happy saving!
What do you do to save money on Amazon? What do you think are the best Amazon hacks to save money?
Recommended reading:
Source: makingsenseofcents.com
You likely already know it can be wise to save money every month. Whatever your income or age, putting money aside for the future can help you maintain financial stability and achieve your goals.
But how much of your paycheck should you save each month? Financial professionals often recommend putting at least 20% of your monthly take-home income into savings for future financial goals, such as buying a home and funding your retirement.
Exactly how much you should save each month, however, will depend on your income, current living expenses and financial obligations, as well as your goals.
Here are some guidelines to help you figure out how much of your income you may want to set aside each month, plus some simple ways to jump start (or build) your savings.
Key Points
• Financial advisors often suggest saving at least 20% of your monthly take-home income for future goals.
• A common budgeting technique is using the 50/30/20 rule: putting 50% of income toward essentials, 30% toward non-essentials, and 20% toward savings.
• One easy way to increase savings is to automate recurring transfers from checking to savings accounts.
• Funneling windfalls into savings and using roundups – a tool that autosaves the difference between a purchase price and the nearest dollar — can also boost savings.
• One of the most effective ways to save money is to determine your near-term and long-term financial goals and to track spending and progress in a budget.
It can be difficult to know how much money you should save each month without having a sense of what you are saving for. Setting a few financial goals can also help motivate you to save, rather than spend all of your income.
There are some savings goals that can make sense for everyone. If you don’t already have at least three to six-months worth of living expenses stashed in an emergency fund, for example, that can be a good place to start. By this measure, many Americans don’t have enough emergency savings, according to SoFi’s April 2024 Banking survey of 500 U.S. adults.
| Amount in emergency savings | People who have saved that amount |
|---|---|
| Less than $500 | 45% |
| $500 to $1,000 | 16% |
| $1,000 to $5,000 | 19% |
| $5,000 to $10,000 | 9% |
| More $10,000 | 10% |
Source: SoFi’s April 2024 Banking Survey of 500 U.S. adults
Without a solid contingency fund, any financial set-back -– such as a job layoff, large medical bill, or costly home or car repair — can throw you off balance and cause you to rely on high interest credit cards.
Many people will also want to save for retirement. At the very least, savers may want to take advantage of company matches offered in their workplace retirement plan by contributing the maximum amount the company matches.
After emergency savings and retirement, goals may start to look different from person to person. One person may want to save up for a down payment on a home, another may want to save up to start a business, and yet another may be interested in college savings. Fifty-two percent of the respondents to SoFi’s survey said they are using their savings accounts to save for a specific goal.
|
Goals People Save For in a Savings Account |
|
|---|---|
| Short-term and long-term goals | 40% |
| Short-term goals like a vacation or holiday spending | 35% |
| Long-term goals like a child’s college education or a house | 26% |
Source: SoFi’s April 2024 Banking Survey of 500 U.S. adults
A rule of thumb that is sometimes used in personal financial planning is a spending/saving breakdown of 50/30/20. Using this guideline, you would spend 50% of your take-home income on essentials (including minimum payments towards debts), 30% on nonessential (or “fun”) spending, and 20% on savings goals, including debt payments beyond the minimum.
To use the 50/30/20 method to determine how much you should save, you can simply calculate 20% of your monthly after-tax pay. For example, if you earn $3,000 each month after taxes, $600 would go towards savings or other short term financial goals.
You may want to keep in mind that your 20% savings goal can include the money you’re saving for retirement. You can determine how much you’re putting toward retirement each month by looking at your pay stub or electronic payment record. If your employer is automatically depositing money into your 401(k), you may be able to put less into savings each month.
While the 50/30/20 can be a helpful guideline, how much you should — and can afford — to save each month will ultimately depend on your individual circumstances, such as your current income, monthly expenses, and future goals.
If the cost of living is high in your area, for example, you may not be able to swing 20% savings each month.
On the other hand, if you make a significant amount more than you need to live on each month, you may want to put away more than 20%, especially if you’re working towards a large short-term savings goal, such as buying a home in the next couple of years.
Recommended: Cost of Living by State Comparison
The best account for building savings will depend on what you are saving for.
If you are saving up for retirement, for example, you’ll likely want to use a designated retirement account, like a 401(k) or IRA, since they allow you to contribute pre-tax dollars (which can help lower your annual tax bill).
You may want to keep in mind, however, that there are annual contribution limits to retirement funds.
For an emergency fund or other short-term savings goals (within three to five years), you may want to open a separate savings account, such as a high-yield savings account, money market account, or a checking and savings account. These savings vehicles typically offer more interest than a traditional savings account, yet allow you to easily access your money when you need it.
Below are some strategies that can help make it easier to start — and build — your monthly savings.
One great way to make sure you stick to a money-saving plan is to automate the process. You may want to set up a recurring transfer from your checking into your savings account on the same day each month, perhaps the day after your paycheck clears. Even setting aside just a small amount of money each month now can, little by little, add up to a significant sum in the future.
There are apps that will automatically round-up any amount paid on a credit or debit card and then put that little bit of extra money into savings accounts or even invest it. This “pocket change” can add up over time.
If a lump sum of cash, such as a bonus or monetary gift, comes your way, you may want to consider funneling all or part of it right into savings.
Or, if you get a percentage raise on your salary, you might want to boost your automatic monthly transfer from your checking account to your savings account by the same percentage.
If you feel like your budget is too tight to save anything at the end of the month, you may want to review your monthly and habitual expenses. You can do this by combing through your checking and credit card statements and receipts for the past few months. Or, you may want to actually track your spending for a month or two.
You can then come up with a list of spending categories and determine how much you are spending on average for each.
There are online tools that can help make this process easier — in fact, 23% of people use budgeting tools offered by their bank, SoFi’s survey found. And of the 20% of respondents who have used AI to help manage their finances, 31% have used automated budgeting suggestions.
Once you can see exactly where your money is going each month, you may find places where you can fairly easily cut back, such as getting rid of streaming subscriptions you rarely watch, quitting the gym and working out at home, or cooking more and getting take-out less often.
The right amount to save each month will be unique to you and includes factors such as your financial goals, how much you earn, and how much you spend each month on essential expenses.
One of the most important keys to saving is consistency. No matter how much of your income you choose to set aside each month, depositing small amounts regularly can build to a large sum over time to achieve your goals.
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 4.30% APY on SoFi Checking and Savings.
SoFi® Checking and Savings is offered through SoFi Bank, N.A. ©2023 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender.
The SoFi Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.
SoFi members with direct deposit activity can earn 4.30% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Direct Deposit”) via the Automated Clearing House (“ACH”) Network during a 30-day Evaluation Period (as defined below). Deposits that are not from an employer or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Direct Deposit activity. There is no minimum Direct Deposit amount required to qualify for the stated interest rate. SoFi members with direct deposit are eligible for other SoFi Plus benefits.
As an alternative to direct deposit, SoFi members with Qualifying Deposits can earn 4.30% 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 4.30% 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 10/8/2024. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
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.
SOBK0623012
Source: sofi.com
A clogged toilet that backs up all over your bathroom. A sump pump breakdown that leaves your basement full of water. These scenarios can turn into a huge headache — and your insurance policy likely won’t pay for the damage. That’s why you might want to consider buying water backup coverage.
Get home insurance quotes in minutes
Answer a few questions to see custom quotes and find the right policy for you.
Water backup coverage is an optional type of insurance you can add to a homeowners, condo or renters policy. Because standard home insurance generally won’t cover water damage due to sewer backups or sump pump failure, this add-on coverage — also known as an “endorsement” — can help fill the gap.
As you’re shopping around, you may see other names for this insurance, such as water backup and sump overflow coverage.
Water backup coverage typically pays to repair damage from two scenarios:
Sewers or drains that back up into your home.
Failure or overflow of a sump pump.
The coverage may help with expenses such as buying new personal belongings, replacing damaged carpet or flooring and cleaning up mold.
With this endorsement you can also generally use your policy’s loss of use coverage. This part of your policy pays for additional living expenses if you need to stay somewhere else while your home is cleaned up.
Imagine that the shower in your only bathroom backs up, causing a soggy mess. Your policy may be able to reimburse you for a few nights in a hotel while the pipe is cleared and the damaged flooring is replaced.
🤓Nerdy Tip
Read your policy carefully. This article provides general guidance about what water backup insurance will cover, but the exact wording may vary from one company to another. For example, some companies may specify that damage from a backup is covered only if the water originates from your home.
You’ll usually have a deductible for water backup coverage. A deductible is the amount of a claim you’re responsible for. Your water backup deductible may be the same as your standard policy deductible or a separate amount.
For example, if a sewer backup causes $10,000 worth of damage and you have a $1,000 deductible on your water backup coverage, the insurance company would pay $9,000.
As with all insurance, water backup coverage has limitations. Below are a few scenarios this endorsement typically won’t cover.
Water backup coverage won’t pay for damage related to flooding, including tidal surges, overflowing rivers or lakes, or heavy rain. If you want coverage for these scenarios, you’ll need flood insurance.
Water that seeps or flows into your home from underground isn’t covered. For example, this could include a swimming pool that leaks into your foundation or moisture seeping into your home through small cracks.
Insurance is designed to cover sudden, unexpected problems, not lack of maintenance. If water damage happens because you’ve neglected to fix an issue that developed over time, your policy generally won’t cover it.
A standard homeowners, condo or renters policy typically pays for water damage from pipes that suddenly burst. You don’t need a water backup endorsement for this coverage.
Say there’s a clog in the sewer line that links your home with your city’s municipal system, and water backs up into your house. Water backup coverage would pay for the damage inside your home. However, if the sewer line itself needed to be replaced, it wouldn’t be covered. Because excavating and replacing the line can get expensive, you may want to consider service line coverage.
Water backup insurance can pay to clean up damage from a failed sump pump, but it won’t replace the device itself. For that, you could add equipment breakdown coverage to your policy.
If a water heater or other appliance suddenly breaks down, causing water to spew into your home, a standard home insurance policy should cover the damage. But again, it won’t pay to repair or replace the appliance itself unless you’ve added equipment breakdown coverage.
Some insurance agents recommend that all homeowners get water backup coverage. However, it may be particularly worth considering if any of the following risk factors apply to you:
You have a sump pump and/or a basement, especially a finished basement.
You live in an older home with aging pipes.
Your home has nearby trees with roots that could encroach on your plumbing system.
Your community has an older sewer system.
Did you know…
Water and freezing damage is the second most common type of homeowners insurance claim in the U.S., according to 2022 data from the Insurance Information Institute (the most recent data available). The only more common type of claim is wind and hail damage.
Renters don’t need to worry about building damage, but your landlord’s insurance usually won’t pay for your belongings if they’re ruined by a sewer backup. Having water backup coverage can help you replace them and even pay for somewhere else to stay if your apartment is unlivable during cleanup.
Water backup coverage limits often start around $5,000 per year. The upper limit may go up to the full replacement cost of your house or even more, depending on your insurer. To decide on the right amount of coverage, consider how much you might have to fix or replace.
For example, you might want more coverage if you have a large finished basement with lots of furniture and fixtures. Maybe you have a two-story house with several bathrooms on the second floor — if one of those sinks or toilets backed up, it could potentially damage the floor below, too.
Depending on where you live and how much coverage you need, water backup insurance can cost $50 to $250 per year. In our sample quotes, we saw rates as low as $39 for $5,000 of coverage.
Following these maintenance tips may help keep water backups from happening in the first place.
Be careful what you put down the drain. Grease, paper products and larger food items can easily clog pipes.
Manage tree roots. Avoid planting anything new near your sewer line, and consider having existing tree roots inspected periodically and cut as necessary.
Install backwater prevention valves. A plumber can put these valves into lower-level drains to keep sewage from coming back into your home.
Flush your plumbing lines regularly. This can help prevent clogs from building up and keep your pipes healthy.
Prevent further damage. As soon as you spot the problem, act quickly to keep it from getting worse — for example, by shutting off water or power.
Decide whether to file a claim. If the damage is minimal, submitting a claim may not be worth it. Remember that the insurance company will subtract your deductible from your payout and potentially raise your rates because you’ve filed a claim. You could end up paying more in future premiums than you’d get to repair a minor problem.
Document the damage. If you do decide to file a claim, take photos of damaged belongings, flooring and other items. Reach out to your insurance company promptly so they can assign an adjuster to examine the damage.
Make quick fixes. You won’t want to do major work until your adjuster has done their inspection, but you can do things like getting rid of wet items to keep mold from growing. If sewage is involved, wear protective equipment such as rubber gloves and boots.
Source: nerdwallet.com
Ellington Financial’s investment portfolio spans a wide range of financial assets, including residential and commercial mortgage loans, mortgage-backed securities, reverse mortgages, and other related investments. The company also holds consumer loans, asset-backed securities, collateralized loan obligations, and equity stakes in loan origination firms. The securitization comes as yield-seeking insurance companies increasingly shift their focus from … [Read more…]