Pilots are a critical touchpoint for property companies and PropTech firms alike. They give real estate businesses an inside track to innovative technologies and provide tech startups with crucial real-world information on what works, what doesn’t, and ultimately, what is saleable. Getting pilots with the right partners can dramatically reshape the growth trajectory of startups and provide traditional real estate businesses with a big competitive edge, but the actual process can be daunting, particularly for property companies with limited tech experience.
We’re changing that with this article. We spoke to experts at real estate companies and a rapidly growing PropTech firm to get the inside story on what property firms should do to optimize for their next pilot partnership, and set the stage for a winning, long-term program.
Homework
If you’re considering launching a pilot at your property company, it might be tempting to jump straight to looking for partner candidates. Before you do that, though, take some time to get your ducks in a row. Identify where solutions could be most helpful for your organization, and ensure that you have the infrastructure in place to actually execute on what you sign yourself up for.
“If you’re going to do a pilot it is probably worth going through the effort to map out the entire process,” said Aki Karja, head of Fairstead Ventures, the PropTech arm of Fairstead, a New York-based developer specializing in affordable housing.
“It’s not something you can really do ad hoc. You need to set up champions in your organization who are responsible for seeing the pilot through to success, and this can become very complicated.”
Identifying champions within your team will help not only give your pilot program some internal momentum, it’ll also make collaboration a lot easier for your future PropTech partners. A big part of this is understanding how inherently friendly your organizational structure is to nimble partnerships like tech pilots. If you’re at a major real estate company with levels of bureaucracy, you may find it difficult to get buy-in, and represent all of your stakeholders’ concerns. For a pilot to be effective, “you need to get buy-in from a lot of people,” Aki said.
Identifying a strong pilot partner
With your ducks in a row, finding a pilot partner will be much easier. The more you engage with the PropTech community as a real estate firm, the more startups you’ll have reaching out to you, hoping to partner. HLC Equity, a multifamily investor based in Pittsburgh, also runs the tech conference PropTech360. This has led to many PropTech firms contacting HLC to discuss partnership opportunities.
David Molitor, head of operations for HLC, said that his firm has a few high-priority criteria any tech solution needs to meet if it is to be considered. “How does it work in our portfolio, at our size, in our locations? The next big item is whether it integrates with our existing technology systems.” If it checks these boxes, David said that’s when he would consider a demo, and speak with other users of the system to get their feedback.
Once you get that far in the process, it’s critical that you give the pilot the bandwidth it deserves. “You have to bring the startup founder under the hood and with them look very pragmatically at the problem, what the solution is, and how much money it will take. It’s a very long sales cycle,” Aki said. “Once you gain that conviction on both sides, that there is a value add and a path to something reasonable, you can move forward.” If this process reveals fit, you’ve likely identified your next pilot partner.
As a real estate professional, you may wonder if there are negotiating table faux pas to be aware of when making first contact with a startup. Aki said he doesn’t worry too much about concerns like that. “If it’s an interesting project that will generate value for us while being good business for the startup, I’m certainly interested,” he said. “A lot of startups are founded by very smart engineers. They are not marketing people and what they lack is developing the value proposition for their product. Through discussion, we can help them understand that value proposition from our perspective. Even if the discussion doesn’t amount to anything, this is still a learning process for the startups we partner with.” At this stage of the partnership, trust and openness is very important. You’ll need to rely on your tech partner to communicate and perhaps iterate in a direction that aligns with your goals, and they will need to trust you to be upfront with your feedback and stick with them through potentially challenging implementation roadblocks. Beginning the relationship with a guarded, overly protective perspective is a recipe for failure.
Ideally, the first contact between real estate firm and PropTech team will be more of a low-key informative chat and less of a sales pitch. Wouter Merkestein is CEO of laiout, a PropTech startup that produces automated floorplans for architects and property companies. “We’re PhDs and physicists, not some big sales engine,” he said.
“For us every conversation starts casually: ‘‘We are a bunch of people very excited about actually solving this problem. We were told it is of significance for similar companies to yours and someone mentioned you might be interested. Can we have a chat to see if we could make this tool work for your workflow?’”
This kind of to-the-point early discussion of problems and goals is important for boosting your chances of pilot success.
In terms of vetting specific startup partners, there are few one-size-fits-all red flags to be aware of ahead of time. However, you should keep in mind the risks that your tech partner may be exposed to. Daniel Farber, CEO of HLC Equity, said that you will occasionally see tech companies that are dependent on venture funding fail as a result of being unable to raise a round. “If they close, where does that leave our data, especially with regard to security? When the market was going up people weren’t really thinking about it, but people are thinking more about downside protection now.”
Finally, when you’re going into your first pilot, be aware of timing. One of laiout’s pilot partners is Areim, a large Nordic property owner. Philip Knis, junior asset manager with Areim, explained that “One crucial factor to consider when we are piloting a tech tool is the element of time. We typically establish clear timelines and deadlines to keep the pilot on track and ensure that all stakeholders have sufficient time to provide their feedback. Real cases or applications of the tool also provide a sturdy foundation for evaluation, enabling a better understanding of the tool’s functionality and limitations, and empowering us to provide more constructive feedback.”
Opportunities and pitfalls during the pilot process
With a partner in place, the pilot can begin in earnest. Depending on your business and the type of technology in play, this may be as simple as gaining access to a web-based platform or as complex as working through an on-site hardware system install.
During the pilot, you should be constantly measuring the costs and benefits of the tool being trialed. You also have an opportunity to embrace organizational best practices even before concluding the pilot. If an IoT pilot reveals an opportunity for substantial energy savings outcomes, that is a lesson that you may want to internalize and explore, with or without your pilot partner. Aki suggested focusing in particular on identifying opportunities to boost your measurement and control capabilities, in that order.
The best way to avoid subpar outcomes during the pilot itself is to deliberately stay in very close contact with your tech partner. Consider establishing a cadence of touchpoints at the beginning of the engagement, and then sticking to it over time, using each call as a chance to collect new information and represent the perspectives and feedback of your internal stakeholders.
Winding down a pilot: outcomes
The ideal result for a pilot is the long-term implementation of the tool being trialed. Of course, this is not always the outcome. If you realize that your pilot is not yielding satisfactory returns, it may be time to consider a parting of ways with your partner.
If the time comes that you need to end your pilot, don’t necessarily consider it a failure. A pilot that fails to convert into a long-term partnership could be indicative of misaligned needs more than a specific failing on either party’s side. For Aki, a discontinued partnership is still a chance to educate and guide the startup partner. “Explain what is missing in what they offered. That is hugely valuable for them.” Wouter, of laiout, agrees with Aki’s assessment, saying that he goes into pilots hopeful but not assuming a sale is the most likely outcome. In the event of a pilot failure, “I’d like to know what would make them happy,” he said. Property firms, take note: Even while parting ways you have an opportunity to add value to a once, and perhaps future, partner.
If your first pilot doesn’t meet expectations, don’t be discouraged. Make a frank assessment of where things went off track. Was there a misalignment in terms of desired outcomes, or was it simply a failing on the part of one party or the other? If you find that your pilot program lacks support throughout your organization, and that you have to pull teeth to get stakeholder engagement, consider cutting your losses and holding off on future pilot engagements until you
can marshal more internal support. Otherwise, once you’ve internalized the lessons of your first pilot, it’s on to the next one.
Conclusion
Every PropTech pilot program will be different based on the unique DNA of the real estate company running it. Nonetheless, these best practices are relevant regardless of your particular niche, strategy, or market.
If there is any final take away from the conversations we had with experts on both sides of the pilot, it’s the importance of communication. If you communicate with your tech partner thoroughly from day one, setting clear expectations and then staying in contact on what is working and what is a pain point, you stand the highest chance of turning a short-term pilot into a long-term boost to your business.
California-based Pennymac launched a product that can freeze mortgage rates as many as 90 days, in a bid to attract more borrowers to the market amid volatile rates.
Dubbed “Lock & Shop,” the product, rolled out in mid-June, has three terms, all of which include a shopping period, plus a built-in, 30-day period in which to close on the contract. The terms vary based on how much time a borrower anticipates needing to find their dream home: The 60-day lock gives borrowers 30 days to find their new home; the 75-day lock gives borrowers 45 days to shop; and the 90-day lock gives customers 60 days to select a home.
The product also allows a one-time “float down,” should rates decline. It’s available for all loan types, except for jumbo.
“As we know, the Federal Reserve has indicated they’re going to continue to raise rates, so we can lock in the loan with today’s rate for up to 90 days,” said Scott Bridges, senior managing director of direct consumer lending. “That might prevent you from either not buying the house you wanted or having to buy a lower-priced house because your payment would be higher with a higher rate.”
Pennymac’s product allows borrowers to extend their lock-in period at an updated rate if they do not find a house during the term length selected. Bridges said there’s no upfront fee, but the lender requires pre-approval to ensure borrowers qualify for a mortgage loan – in this case, the lender gives 50 basis points on the closing costs.
“There’s no point doing a Lock & Shop if your purchase is going to be fairly imminent, but we are seeing it to be a very popular product for our borrowers,” Bridges said. Pennymac has locked more than 100 applications with the product since mid-June.
Creating a path to success in today’s purchase market
Meeting the needs of a new generation of homebuyers while managing the ebbs and flows of a volatile housing market is a major endeavor for any mortgage lender. So, what should lenders be doing to thrive in the face of a post-pandemic housing market rife with new hurdles?
Presented by: Calyx
Pennymac is the latest mortgage lender to freeze rates for borrowers. In late June, fintech startup Tomoalsoannounced a “Lock & Shop” product, allowing borrowers to lock in a mortgage rate for as many as 120 days, about twice as long as most lenders.
The product does not require a property address to guarantee a mortgage rate. Founded in 2020 by former Zillow executives Greg Schwartz and Carey Armstrong, the fintech startup focuses on the $1.6 trillion purchase mortgage sector.
“Consumers had seen so much news coverage on a threatened recession, inflation and interest rate increases that they got stuck,” Tomo’s co-founder and CEO Greg Schwartz said. “They are saying: ‘I’m afraid that if I start shopping now, by the time I find a place — because there’s still limited inventory, I still have to make multiple offers — and, by the time I find a home, I may have much less buying power.’”
Since January, mortgage rates have risen quickly due to high inflation and the Federal Reserve’s plan to tighten monetary policy. And that has put pressure on mortgage lenders with extended lock-in periods.
When rates are surging, lenders’ capital markets teams have trouble selling loans locked at a lower rate because investors demand higher returns. That often forces lenders to sell at par or take a loss.
But Pennymac and Tomo said they can offer extended lock-in periods because their capital markets teams are hedging the transactions (so they can avoid losses when selling loans at the current mortgage rate in the secondary market in the future) and the companies have strong balance sheets.
Last summer, Tomo launched its platform after raising $70 million in seed capital and achieving “unicorn” status. In 2022, Tomo said it raised another $40 million in a Series A round led by SVB Capital, which more than doubled the company’s valuation to $640 million.
Tomo, however, is not immune to the volatility in the markets. The digital mortgage lender laid off nearly one-third of its workforce in late May. The company does not disclose its origination volume.
Pennymac reported $490 million in cash as of March 31, according to Securities and Exchange Commission (SEC) filings.
The company delivered a pretax net income of $234.5 million in the first quarter, essentially unchanged from the prior quarter. Pennymac expects to lay off 207 employees in June and July following a workforce reduction filing of more than 230 employees in March.
Editor’s Note: This article was updated July 14 to indicate Pennymac offers three term options for its “Lock & Shop” product. After publication, a spokeswoman provided additional information about a 60-day lock term, which had not been initially disclosed.
Today we’ll explore one of the nation’s largest loan servicers that happens to be a major mortgage lender as well, “Lakeview Loan Servicing.”
As their name implies, they service mortgage loans, meaning they collect monthly payments from customers after the loan funds.
These days, a lot of mortgage lenders don’t do that, and instead focus on making new loans and selling them off quickly so they can fund even more.
But Lakeview has adopted a strategy some of the largest mortgage lenders in the country have, doing both.
This means aside from servicing loans, they also originate billions in mortgages annually. Let’s see if they could be a good fit for a new mortgage.
Lakeview Loan Servicing Fast Facts
Direct-to-consumer mortgage lender that offers home purchase and refinance loans
Founded in 2010, headquartered in Coral Gables, Florida
Funded $41 billion in home loans last year (a top-25 mortgage lender nationally)
The 4th largest loan servicer in the country
Licensed to lend in 48 states and the District of Columbia
Also operates a wholesale and correspondent lending business
As noted, Lakeview Loan Servicing operates as both a loan servicer and a direct-to-consumer mortgage lender. This is similar to a NewRez or a Rocket Mortgage.
They are currently the nation’s fourth largest loan servicer in the country, and help more than 1.4 million customers manage their home loans annually.
The company also recently became the largest servicer of Ginnie Mae mortgages, aka FHA loans and VA loans.
To clarify, they own the servicing rights to all these mortgages, and actually partner with subservicers like LoanCare to process payments, manage escrow, etc.
At the same time, they mustered an impressive $40.7 billion in home loan origination last year, landing them in the top-25 lender list.
They did a near-equal amount of home purchase loans and mortgage refinances, so they could be a worthwhile choice for both a new home buyer or an existing homeowner.
My guess is they tap into their massive loan servicing portfolio to find new refinance candidates. So if they service your loan, they may have reached out.
As I always say, when a lender reaches out, reach out to other lenders! That way you can comparison shop.
At the moment, they are licensed in 48 states and D.C., with Hawaii and New York the exceptions.
How to Apply for a Mortgage with Lakeview Loan Servicing
If you’re a current loan servicing customer, you may have received solicitations from Lakeview Loan Servicing to refinance your loan.
But they’re also a big originator of home purchase loans, so home buyers with no prior relationship could also choose them as their lender.
They say they’ve got more than 100 loan officers in four locations across the country to serve home buyers and refinancers.
And both loan processing and underwriting are done in-house to ensure fast turn times. Those who need to get pre-approved for a mortgage can do so in as little as 24 hours.
To get started, you can visit their website or call them directly. If you go online, you can create an account and submit a new mortgage request.
At that point, a licensed loan officer will get in touch to discuss loan pricing and eligibility.
They offer a digital mortgage application powered by ICE Mortgage Technology that allows you to complete most tasks electronically.
And once your loan is submitted, you’ll be able to manage it and check status via the online borrower portal.
Once the loan funds, it’ll be serviced by them as well via one of their subservicing partners.
Lakeview Home Rewards
One perk to using them for a home purchase loan is the “Lakeview Home Rewards” program.
In short, it’s a real estate agent referral program and mortgage lender all rolled into one.
Once you sign up, you’ll be matched with a top local real estate agent and a dedicated mortgage loan officer from Lakeview.
After your loan funds, you’ll receive up to $6,500 cash back, depending on the home’s purchase price.
Those who sell and buy a home using the service can receive up to $13,000 in rebates once both transactions close.
Note that these rewards aren’t offered in some states (AK, IA, LA, and MO) and are limited in others.
They say they only work with “premier brokerages across the United States,” and pick the top real estate agents from those companies.
This includes real estate agents with at least five years of experience who maintain a 90%+ satisfaction rating.
If you aren’t already working with an agent, this program could be a money-saver and provide the convenience of an end-to-end home buying process.
Loan Programs Offered by Lakeview Loan Servicing
Home purchase loans
Refinance loans: rate and term, cash out, streamline
Conforming loans backed by Fannie Mae and Freddie Mac
Jumbo loans
FHA loans
VA loans
USDA loans
Home equity loans
Lakeview Loan Servicing offers home purchase loans and mortgage refinance loans, meaning they serve both existing homeowners and prospective home buyers.
If you already own a home, you can refinance to obtain a lower mortgage rate and/or get cash out. Streamline options are offered as well.
All the major loan types are available, including conforming loans backed by Fannie Mae and Freddie Mac, and government-backed loans like FHA, VA, and USDA loans.
It’s also possible to get a jumbo home loan, and even a second mortgage in the way of a home equity loan.
They seem to offer mostly fixed-rate mortgages, including the 30-year fixed, 15-year fixed, and other less common loan terms.
I’m not sure if they also originate adjustable-rate mortgages, which aren’t very popular at the moment.
But they should have enough options to suit most home buyers and homeowners out there.
Lakeview Loan Servicing Rates
They say they offer low interest rates, but that’s about it. You won’t find their daily mortgage rates listed online to compare to other lenders.
As such, you’ll need to call them up and get in touch with a loan officer to obtain the latest pricing.
Be sure to inquire about lender fees when you do that to get the full picture. It’s unclear if they charge a loan origination fee or other fees for processing, underwriting, and so on.
My guess is they’re a middle-of-the-road lender in terms of pricing, though that’s just an assumption.
At the end of the day, they might be priced lower than the big banks and national brands, but perhaps higher than the low-cost mortgage lenders out there.
But you won’t know until you call and speak to a human.
Lakeview Loan Servicing Reviews
On Zillow, they have a 4.84-star rating out of 5 from about 400 reviews. A decent number of recent reviews indicated the interest rate was lower than expected.
Their Zillow rating might be the best representation of their home lending division, while other reviews you come across could be more related to their servicing business.
For example, over at Google it’s more of a mixed bag, with a much lower 2.5-star rating from over 600 reviews. The caveat is this may include both lender customers and servicing customers.
This is one of the problems with operating as both types of companies under the same brand. Take the time to read the reviews to see if they relate to new loans or existing, serviced loans.
While they aren’t accredited with the Better Business Bureau (BBB), they do have an ‘A+’ rating based on complaint history.
In summary, Lakeview Loan Servicing could be a good choice for a home purchase loan due to their rebate program, and potentially good for refinancers if the rates are low.
The only question marks are pricing and customer service, the latter of which might be muddled because they are also a loan servicer.
Lakeview Loan Servicing Pros and Cons
The Pros
Can apply for a home loan online in minutes
Digital mortgage application powered by ICE Mortgage Technology
Lots of home loan programs to choose from including second mortgages
Lakeview Home Rewards offers up to $6,500 cash back
A+ BBB rating
They’ll service your loan after closing
Free mortgage calculator and mortgage glossary online
The Cons
Not licensed in Hawaii or New York
No physical branches
Do not publicize mortgage rates or lender fees
Lots of mixed reviews (which may be due to servicing)
A credit card grace period is the time between the end of your billing cycle and your payment due date that allows you to pay your balance without incurring interest or penalties.
The information provided on this website does not, and is not intended to, act as legal, financial or credit advice. See Lexington Law’s editorial disclosure for more information.
What is a credit card grace period, and how does it affect you? Credit card grace periods are the time between when your billing cycle ends and when you’re required to make your credit card payment. During this time, you typically won’t be charged interest on your balance. This guide reviews what credit card grace periods are and how you can use them to limit your interest fees.
How does a credit card grace period work?
Credit card companies charge interest on balances that haven’t been paid in full. However, a grace period gives you extra time to pay off your balance before the interest will start accruing. If the balance is paid in full during the grace period, the credit card company usually won’t charge any interest fees.
When you get your credit card bill, you’re informed of what your balance is for that statement and given a due date for either making a minimum or partial payment or paying the entire balance in full. If you leave a balance by making a partial payment, your interest rate determines what your additional costs will be until you pay the rest.
There are several things you should pay attention to when you receive your bill.
The statement balance is what’s included on the current bill, which may exclude some transactions if you made them after the closing date.
The closing date is the day the statement is generated, which means if you made purchases after the closing date, you don’t need to pay them off until the following due date.
The minimum payment is what you’re required to pay before the due date to avoid late payment fees.
The due date is when your payment is due, and this is usually at the end of your grace period.
How long is a typical credit card grace period?
The grace period is normally 21 – 25 days after your closing date. This means credit card companies give customers three weeks to pay their bills after the statement closes before charging interest. You can find your card’s grace period in the terms and conditions section of your credit card agreement or by contacting your card provider.
Some credit card companies offer an introductory interest rate for balance transfers that can be as low as 0 percent APR, so you might not care about your grace period at first, but once the introductory period runs out, you’ll need to watch out for interest charges.
Not every credit card has an introductory rate for balance transfers, so if you transfer a balance, you might be paying interest on it right away. Pay attention to the fine print when you select a card so you aren’t taken by surprise.
What happens if you don’t pay the full amount due by the end of the grace period?
If you don’t pay the full balance, you must pay interest on your balance after the date the payment was due. Once you’re being charged interest, your fees are based on your balance each day. If you were to make payments throughout the month to lower your balance, you could reduce the amount of interest you would be charged.
Once you carry a balance of $0, you’re no longer charged interest for the days that your balance is paid off. However, you likely won’t get your grace period back until you’ve paid the entire balance for two consecutive months. For example, if in April you made only the minimum payment and then paid your entire balance in May, you wouldn’t get a new grace period until June.
If you don’t pay your entire balance or you’re late making your minimum payment, it can impact your credit score. Late payments show up on your credit reports and generally have a negative impact on your score. Plus, carrying a balance increases your credit utilization. This figure reflects how much of your available credit you’re currently using, and if your utilization is above 30 percent, it could make you seem less creditworthy.
Do all credit cards have a grace period?
Credit card companies aren’t required to offer grace periods, so it’s a good idea to look into whether your credit card provider offers one. The good news is that most major credit cards do have grace periods. As previously mentioned, there may also be an extended grace period available for balance transfers.
Even if a credit card has a grace period, it won’t apply to cash advances, so only take a cash advance if you’re willing to pay interest on what you take. A cash advance and getting cash back with cards that allow it on normal purchases aren’t the same thing. So, if you’re at the grocery store and get cash back, the amount you take is simply added to the transaction total.
What does the CARD Act say about grace periods?
The Credit Card Accountability, Responsibility and Disclosure (CARD) Act was signed into law in 2009 and altered how credit card companies could charge fees and interest. It’s one of many consumer rights laws that have been passed to protect consumers. This law requires credit card companies to have specific policies regarding grace periods and interest rate changes.
According to the CARD Act, if your credit card has a grace period, you must be given at least 21 days to pay your bill before the company can begin charging interest on your purchases. While grace periods differ slightly between credit card companies, three weeks is the minimum period.
Maximize your credit card grace period
If you plan your purchases correctly, you can stretch your grace period to up to 55 days. If you make a purchase one day after your statement closes, for example, it won’t show up on your current statement. The transaction shows up on your next statement instead, giving you an extra month before you’re required to pay interest on what you’ve bought.
Some savvy consumers plan larger purchases for a day or two after their statement closes to get almost two months to pay their bill interest-free.
If you’d like to line up your due dates with when you get paid, most credit card companies allow you to request a new billing cycle and due date. If you change the due date to a couple of days after you’re paid, it makes it much easier for you to pay the full balance each month.
If the credit card company agrees to change your due date, there might be a waiting period before you can request a change again.
Protect your credit score
While paying your credit card balance in full each month is a great way to build your credit, there may be errors on your credit reports that are costing you money. You should check your score at least once a year and see if there are negative marks on any of your reports that might keep you from getting a better interest rate on your next loan.
If you’ve lost the grace period on your credit cards, interest fees can make it more difficult for you to manage your debt and keep your credit healthy. Our credit repair consultants can help by providing personalized credit advice and looking into whether the derogatory marks on your credit report are fair and accurate.
Note: Articles have only been reviewed by the indicated attorney, not written by them. The information provided on this website does not, and is not intended to, act as legal, financial or credit advice; instead, it is for general informational purposes only. Use of, and access to, this website or any of the links or resources contained within the site do not create an attorney-client or fiduciary relationship between the reader, user, or browser and website owner, authors, reviewers, contributors, contributing firms, or their respective agents or employers.
Reviewed By
Vince R. Mayr
Supervising Attorney of Bankruptcies
Vince has considerable expertise in the field of bankruptcy law.
He has represented clients in more than 3,000 bankruptcy matters under chapters 7, 11, 12, and 13 of the U.S. Bankruptcy Code. Vince earned his Bachelor of Science Degree in Government from the University of Maryland. His Masters of Public Administration degree was earned from Golden Gate University School of Public Administration. His Juris Doctor was earned at Golden Gate University School of Law, San Francisco, California. Vince is licensed to practice law in Arizona, Nevada, and Colorado. He is located in the Phoenix office.
Credit matters when looking to buy a house, car or any other pricey asset. Unless a consumer is flush with cash, the path to home and vehicle ownership may go through a mortgage or a loan. Good credit can provide you with terms and privileges not available to a person with poor credit, including lower interest rates and increased borrowing capacity.
We delve into what constitutes a good credit score and the reasons why it is important to have a good credit score.
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What’s Considered Good Credit?
Consumers with standard credit scores of 661 or greater are considered to have good credit, because they rank as prime or super prime in terms of their risk assessment. A bad credit score falls on the lower end of the range and a good credit score falls on the higher end of the range.
Many credit scoring models, including the standard FICO® Scores and VantageScore 4.0, measure an individual’s credit risk on a three-digit scale ranging from 300 to 850. The highest risk group are consumers with deep subprime credit scores from 300 to 500, and the lowest risk group are consumers with super prime credit scores from 781 to 850, according to Experian.
Consumers may build and attain good credit by paying their bills on time, maintaining a mix of accounts and keeping their revolving balances under 30% of credit limits.
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Check your score with SoFi Insights
Track your credit score for free. Sign up and get $10.*
8 Benefits of Good Credit
Here are the eight core benefits of good credit, which highlight why it is important to have a good credit score:
Benefit #1: Easier Access to Credit
Good credit may provide you with easier access to additional credit. When a consumer applies for a credit card or personal loan, lenders may analyze the consumer’s credit report and credit score to make an informed decision on whether to approve or deny the application. A person with good credit is considered low-risk and therefore has an easier time getting approved for a personal loan compared to high-risk borrowers.
Benefit #2: Lower Interest Rates
Consumers with good credit may qualify for lower interest rates when borrowing money. For example, available financing data for new vehicle purchases in the first quarter of 2022 show consumers in the deep subprime category of bad credit have obtained auto loans with 14.76% interest on average. Meanwhile, consumers in the super prime category of excellent credit secured 2.40% interest rates on average. That amounts to an over 12 percentage point difference in interest rates.
Benefit #3: Lower Car Insurance Premiums
Many auto insurance companies use credit-based insurance scores to help categorize consumers by risk and determine what premiums they may pay. Under this practice, higher-risk consumers may pay higher auto insurance premiums than lower-risk consumers. In some states, having good credit or improving your credit score may lead to lower auto insurance premiums over time.
Benefit #4: Increased Borrowing Capacity
Consumers with good credit may obtain larger credit limits than those with poor credit. This could translate to greater spending power on a credit card and the ability to make larger purchases on credit. Having good credit also puts you in a better position to apply for and obtain new credit.
A bolstered borrowing capacity is not limited to credit cards either — credit unions and banks may offer personal loans to consumers with good credit. Such loans can help you consolidate debt, finance large purchases or obtain fast cash to weather an unforeseen emergency. Personal loans also may command lower interest rates than credit cards.
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Benefit #5: Easier to Buy a Home or Car
Good credit can help you buy a house with a good mortgage rate or a car with affordable financing. Borrowing money to own a home or vehicle comes at a price that includes principal and interest. Consumers with good credit may qualify for 0% annual percentage rate loans for a car, where no APR means no interest or finance charges. Establishing good credit may also improve your likelihood of obtaining a low-APR mortgage, which translates to lower debt repayment obligations.
Automotive consumers had an average credit score of 738 for new vehicle purchases and 678 for used vehicle purchases in the fourth quarter of 2022, according to Experian’s quarterly report. This shows the average automotive consumer boasted good credit within the prime category of low risk.
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Benefit #6: More Apartment Lease Options
Signing a lease to an apartment may require good credit. Landlords who conduct credit checks might deny lease applications if a prospective tenant has bad credit. Or, those with poor credit may have to provide a higher security deposit for rental housing compared with a prospective tenant who boasts good credit. Tenants with good credit also may have more leverage to negotiate for lower rent.
Jobseekers can benefit from good credit, as some employers may consider a person’s credit score when making hiring decisions. The U.S. Department of Housing and Urban Development says that a low credit score or credit invisibility is a burden that can “limit housing choice and employment opportunity,” whereas “a good credit score is part of the pathway to self-sufficiency and economic opportunity.” The term “credit invisible” refers to consumers who lack a credit score or credit history.
Benefit #8: Ability to Obtain Security Clearances
Law enforcement officers with good credit could gain privileged access to classified national security information and FBI facilities. Any state or local law enforcement officer seeking a security clearance has to first satisfy a comprehensive background check that includes a review of credit history. The FBI shares secret or top secret information with local law enforcement officers who have obtained security clearances.
Poor credit history would not necessarily disqualify an officer from obtaining a security clearance, but significant credit history issues “may prevent a clearance from being approved,” according to information posted on the FBI’s website.
The Takeaway
Good credit is important for anyone who wishes to borrow money to help finance key purchases. Many consumers rely upon mortgages and loans to buy houses and cars, while many cash-strapped individuals turn to credit cards to buy essential goods and services ranging from food and electricity to water and rent for housing.
The eight benefits of good credit highlighted above showcase why it is critical to pay your bills on time and practice good budgeting. SoFi Insights is a money tracker app that allows you to monitor and keep track of your credit score, among other perks that could assist with financial planning and managing your net worth.
Check out the features SoFi Insights offers to help bolster your financial success.
Photo credit: iStock/AndreyPopov
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SoFi’s Insights tool offers users the ability to connect both in-house accounts and external accounts using Plaid, Inc’s service. When you use the service to connect an account, you authorize SoFi to obtain account information from any external accounts as set forth in SoFi’s Terms of Use. SoFi assumes no responsibility for the timeliness, accuracy, deletion, non-delivery or failure to store any user data, loss of user data, communications, or personalization settings. You shall confirm the accuracy of Plaid data through sources independent of SoFi. The credit score provided to you is a Vantage Score® based on TransUnion™ (the “Processing Agent”) data. Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit. Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website . SORL0523023
While perhaps the most advantageous reason to use a mortgage broker is their ability to shop your rate with multiple lenders, you still need to put in the time to comparison shop.
There are three main reasons I can think of offhand to explain this argument. And while you’re at it, don’t forget to compare banks vs. brokers too if you want to truly exhaust all your options.
Remember, gathering several mortgage quotes is a proven method to land a lower interest rate on your home loan, backed up by real studies.
Yes, it takes more time, but the return on investment can be enormous when you look at the fraction of time involved to the potential money saved.
Different Skill Sets and Personalities
Mortgage brokers are individuals just like real estate agents
This means they can have various experience levels and unique personalities
You’ll want to choose one that is both competent and easy to work with
Who takes the time to explain how everything works and answers your questions
First off, mortgage brokers are often just individuals, though larger shops exist as well.
This means they may have various personalities and hold different skill sets, with some more experienced than others.
You might find one broker that’s been working in the mortgage industry for two years, and another that’s been at it for 30 years or longer.
Chances are you’re going to favor the veteran if faced with a decision between the two, but if you don’t even put in the time to check out more than one, you’re doing yourself a disservice.
This isn’t much different than only obtaining a single mortgage rate quote from a retail mortgage lender.
Sure, the broker has the advantage of shopping your loan scenario with multiple lenders on your behalf, thereby providing you with several quotes, but it’s still not an exhaustive search.
Obviously, you want to choose a broker that is competent enough to get your loan to the finish line, especially if it’s an important, time-sensitive home purchase.
And you’ll also want to work with someone who is honest, trustworthy, and perhaps friendly and available if and when you have questions.
Similar to a real estate agent, it can be worth your time to speak to a few different brokers to feel them out before proceeding to work with one.
Sure, referrals are great, but make sure you like the person as well, and vet them yourself to ensure they’re a good fit.
Distinct Wholesale Lender Partners
Brokers can work with an unlimited number of wholesale lenders
Some may be approved with a ton of different companies, while others only work with a few
Their mortgage rates and available loan programs will be dictated by who they choose to partner with
This means you might have more options and/or lower rates with one broker versus another
That brings us to reason number two why you need to compare mortgage brokers. They may have different wholesale lender partners.
Remember, one of the main reasons to use a mortgage broker is their ability to shop your loan with several lenders.
As opposed to a retail bank, which just has one set of loan programs, rates, and fees, a broker can explore their entire rolodex to find a good home for your loan.
However, this search really depends on who that particular broker is partnered with, or if they take the time to present you with a full range of options.
Not all brokers are approved to work with the same wholesale lenders. For example, some may work with United Wholesale Mortgage (UWM), while others may work with Quicken Loans’ Rocket Pro TPO.
As such, the broker you choose may only be able to quote you mortgage rates from one of these companies.
Along those same lines, one broker may be approved with a dozen wholesale lenders, while another only two or three.
Additionally, they may just have a preferred wholesale lender that they send most of their loans to, and you might not get to see all there is to offer.
Ultimately, you want choice when using a broker, otherwise it’s kind of a waste of time, even if they provide exceptional service and are highly competent.
Varying Compensation Levels
Brokers get to choose their lender-paid compensation plans with each company they partner with
Two different brokers can select completely different plans with the same exact lender
This means one broker could earn double that of another while offering the same loan from the same company
The result could be a higher or lower mortgage rate depending on which broker you wind up working with
I saved the best for last – brokers get to choose their compensation levels with their wholesale partners.
They might get the choice to earn one, two, or even three points on every mortgage they close, along with numbers in between like 1.75% or 2.50%.
While what they earn is totally their prerogative, it does mean you could partner with a broker that earns double or even triple that of another who is working with the same exact lender, and providing the same exact loan.
For example, let’s say you’ve got a $400,000 loan amount and the broker you decided to work with has a compensation plan of 2.50% with Lender A.
This means they’ll earn $11,000 in lender-paid compensation for your loan, which is paid directly by the wholesaler to the broker.
While it doesn’t come out of your pocket directly, higher commission equates to a higher mortgage rate.
Now imagine a different broker who works with that same lender chose a compensation plan of just 1% per loan, in order to snag more business (increased volume, smaller margins).
They’d only be paid $4,000 on our hypothetical loan, which means you’ll probably get a lower interest rate as a result.
And remember, it’s the same exact loan from the same exact lender. The only difference would be the individual who is handling your loan.
Again, that can matter, as not all brokers are created equal, as mentioned above, but this does illustrate the importance of comparing mortgage brokers, just as you would banks and direct lenders.
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I have recently become fascinated by the idea of Billionaire Morning Routines.
The premise is that if you want to be successful in life, then you must wake up at an early hour and dedicate time or energy towards your goals. I am still not sure how this translates into a morning routine for me, but what I do know is:
You don’t need much money to become wealthy.
Your mindset can drastically change the trajectory of your day and life.
Sometimes it can feel like the odds are stacked against you. But there’s always hope.
Personally, I have found success by following this simple morning routine that will help get me through each day and set my path for success.
Successful millionaires have certain habits that can help you be more productive each and every day! While not everyone aspires to be a millionaire, these habits can still be useful for anyone looking to increase their productivity levels.
In this post, we are going to dig into billionaire morning routines and look at some millionaire morning routines as well.
Is a cup of strong coffee enough? Or do you need to layer some more key habits of billionaires on top?
So, if you’re looking for some tips on how to be more productive, following in the footsteps of some successful millionaires is a great place to start!
Remember these are the people making 10 figures…
What is a Billionaire Morning Routine?
A Billionaire Morning Routine is a set of habits that wealthy individuals use to start their day in order to increase their chances of success. This usually involves waking up early, exercising, eating a healthy breakfast, and spending time on personal development.
These routines are a set of designated activities that can help you stay on track. A millionaire or billionaire morning routine helps you organize your day from the moment you wake up until the time you leave for work. The difference between what you’re doing and a millionaire morning routine is the way you manage your time.
Every day is different for billionaires, but their morning routine should always be prioritized by their lifestyle needs first.
A billionaire morning routine should focus on managing your time in a way that allows for consistency with priorities of lifestyle needs and productivity goals.
Why is a Millionaires Morning Routine or even a Billionaires Important?
The reason a Millionaire’s Morning Routine is important is that it sets the tone for the rest of the day. If you start your day by working on your goals and taking care of yourself, you’re more likely to have a successful day.
Don’t you want to maximize your time and get the most out of your day?
These are the key benefits of following a billionaires morning routine:
Stay focused on the important tasks at hand each morning.
Help you better prioritize your time in the morning and throughout your day.
Increase your productivity all day long.
Reduce the stress you feel each morning.
Boost your energy levels throughout the day.
In addition, a millionaire or billionaire’s lifestyle is associated with a number of benefits, including increased happiness, improved focus, and more time to accomplish goals.
There are many reasons why having a billionaires morning routine, or even a millionaires morning routine, is so important.
A millionaire morning routine is empowering because it gives you control over your life–and who doesn’t want that?
Billionaire Morning Routines
There are a lot of different opinions on how to achieve success in life, but one thing is for sure: you have to get up early if you want to be a millionaire.
You have heard the saying, “the early bird gets the worm.”
They use these routines to set themselves up for success and make the most of their time. Plus there are a few key things that all millionaire morning routines have in common.
This allows them to get centered and focus on what they want to achieve.
The billionaires’ morning routines are a good place to start when trying to improve your own routine.
Billionaire morning routines are the first place to start when trying to change your daily habits for the better. These practices provide a foundation that you can build off of as you work towards reaching your goals.
#1 – Wake up early
Wake up early to get more done in the morning.
Go to bed at a reasonable time so you can sleep well and be refreshed for the day.
Here are some tips to make waking up easier:
Have a wind-down process before bedtime.
Switch off screens an hour or two before you plan to go to bed so you sleep easily when the sun rises at 5 am.
Wake up five minutes earlier than you do now and work your way up until you wake up an hour earlier.
Waking up early is a simple change that anyone can make!
To get up early, go to bed earlier. The key to getting up early is going to bed early and having a wind-down routine so you sleep easily when you get into bed.
#2 – Meditate
Meditation can aid in concentration, creativity and reduce stress.
There are a variety of ways to meditate, including sitting quietly and focusing on your breathing.
When it comes to improving productivity, many people think that meditation is a waste of time. However, this could not be further from the truth.
In fact, there are a number of reasons why you should meditate every day:
Lowers your stress levels
Helps you focus
Improves creativity
Provides answers to unexpected problems
Helps make decision making easier
Keeps you less distracted throughout the day.
The hardest part of meditation is getting started, but it’s worth it if you have the discipline to stick with it for even 5 minutes a day or do some other form of relaxation therapy before falling asleep at night.
It doesn’t matter how long you do it, as long as you’re getting the benefits from it.
#3 – Glass of Water
Drinking water in the morning can improve general health and well-being.
Celebrities including Kim Kardashian, Beyoncé, and Cameron Diaz have touted the benefits of drinking water regularly.
Water is essential for life. In fact, our body is composed of about 60% water. We lose water every day through sweating, breathing, and urination, so it’s important to replenish our fluid intake. Drinking a glass of water in the morning can reduce calorie intake and improve mental performance.
Drinking water in the morning can help you stay alert, make you more energetic, and provide the necessary fuel for your brain. It’s important to drink water first thing in the morning because it hydrates quickly and fuels your body. Drinking water is also a great way to hydrate for a long day of work or play later on that day.
#4 – Exercise
The wealthiest people in the world begin their days with some exercise. They choose to perform this activity in the morning so that it doesn’t get forgotten among all their other daily responsibilities.
Richard Branson, a British billionaire, exercises every morning without fail.
Exercising boosts your confidence, has positive effects on your mood, and helps them focus throughout the day.
The key is to find a way to incorporate exercise into your routine each day. Find an exercise that works for you and stick with it.
Wake up early and exercise. Exercise is a great way to start your day off on the right foot. It gets your blood flowing and helps you wake up mentally and physically. Plus, it’s a great way to get in some extra fitness goals for the day!
#6 – Read a book
Reading can boost cognitive activity in the brain. This means that you’ll be more alert and prepared for whatever challenges the day throws your way!
Also, reading before bed can help calm the mind and prepare the body for sleep.
# 7 – Eat a healthy breakfast
Many successful people have made breakfast a key part of their morning routine.
Starting your day off with a filling meal can help you stay focused, give you more energy, and help you concentrate on the work you need to accomplish later in the day.
Breakfast is the most important meal of the day, and it’s especially important to eat a healthy breakfast. Eating breakfast helps your body and mind function at their best. It can give you energy for the day ahead, help you focus, and provide necessary nutrients for your brain.
There are many different types of healthy breakfasts that you can try. Some people like to have eggs, others prefer yogurt or granola. Kelly Ripa has coffee, yogurt, and granola as a breakfast routine; Barack Obama has eggs, potatoes, and wheat toast. Reese Witherspoon’s go-to green smoothie recipe has been her breakfast routine for the last nine years. Idris Elba keeps it simple with toast during his morning routine.
No matter what you choose to eat for breakfast, make sure you drink plenty of water as well.
On the flip side of the coin is fasting during breakfast and maybe even lunch.
#8 – Plan your day the night before
Plan out your day ahead of time. One of the best ways to ensure that you make the most of your time is by planning out your day ahead of time. This will help keep you organized and focused on what’s important.
Determining when during the day is the best time to tackle your toughest jobs can help reduce stress and increase performance.
Journal your thoughts, plan your day, and focus on what you want in life.
Goals don’t happen unless they are written down and acted upon.
One way to make sure you start your day off on the right foot is by planning your day the night before. This way, you can wake up knowing what you need to do and have a plan in place for how you’re going to get it done.
Reflecting in the evening about what you want for yourself can help solidify your intentions and give them power by writing them down for review each day.
#9 – Plan the day ahead
Others prefer to plan their day in the morning.
Getting out of bed and putting your best foot forward EVERY SINGLE DAY is important for having a successful morning routine.
By planning out your tasks, you will be better prepared to face any challenges that come your way during the day.
To help with this, try creating a morning routine that fosters a healthy mind, body, and spirit. This will get you ready to operate at peak performance.
In order to be successful, you have to know your schedule so you can plan time blocks for specific activities. There are only so many hours in a day – you must make sure they are well spent.
#10 – Create your routine
Creating a routine for your morning will help you accomplish more with your time, starting your day off on the right foot, and it will also give you a chance to start your day off with joy before any hustle or stress begins.
Some of the benefits of a millionaire morning routine include stress-free, accomplished things, and increased levels of happiness.
However, remember that the Millionaire Morning Routine is not the only one out there! You can start your day by hitting the ground running but don’t copy and paste a billionaire’s exact routine. Billionaires set their days apart with goals, so try our goal-setting worksheet to get a head start!
There are many factors to consider when deciding if a millionaire morning routine is for you, such as the goals you want to achieve and your schedule.
However, you need to create a routine that works for you. Below, you will see some samples from billionaires, but at the end of the day, it has to work for you.
When you have something to look forward to at the beginning of each day, it helps reduce stress and makes you happier. It’s also a way to get your day started on the right foot.
What time does the average billionaire wake up?
There is no average billionaire wake up time because there is no average billionaire.
However, it is well known that most millionaires and top executives wake up early in the morning. Some may be up by 4 am while others start their days between 6-7 am.
This gives them plenty of time to get ready for their day and start working on their goals.
Waking up early is a great way to start your day. You have more time to get things done, and you’re less likely to be stressed out. In addition, it’s a good opportunity to meditate and clear your mind before getting started on your work.
Billionaire Morning Routine Examples
There’s no one right way to have a successful morning routine, but many millionaires and billionaires have habits that they credit with helping them achieve their goals.
Others include setting priorities for the day and planning ahead.
There are many different morning routines that billionaires follow in order to achieve success. Some of these routines include waking up early, exercising, and reading. Others involve spending time with family and friends or networking.
No matter what a billionaire’s routine may be… the most important thing is that they stick to it and make sure they are taking steps each day to move closer to their goals.
These billionaires have different workdays, but all follow a similar daily routine to keep their minds and bodies in check.
Elon Musk Morning Routine
Elon Musk is a well-known entrepreneur and investor. He is the founder, CEO, and CTO of SpaceX, co-founder of Tesla Motors, and chairman of SolarCity. He also has a keen interest in artificial intelligence.
First of all, sleep for Musk is minimal with him going to bed around 1 am and back working by 7 am.
Musk has a routine that includes 5 minute blocks. In each block, he does one thing that is important to him. This could be making calls, sending emails, or working on a project. By doing this, he is able to focus on one task at a time and avoid distractions.
Musk’s routine also includes planning out how long it will take him to complete tasks throughout the day so that he can be sure not to waste time on tasks that are unnecessary or take too much time. This prevents him from feeling rushed and allows him to focus on the most important tasks. He makes a solid plan for his day in order to prioritize what he needs to accomplish – even though it may not go as he planned.
Kylie Jenner Morning Routine
Jenner wakes up early which is credited to her mom as setting an example for rising early. This self-made billionaire is not sleeping in at all, especially with her daughter.
The most intensive part of her morning routine is getting herself glammed up for the day. She will not eat breakfast without her makeup on. Workouts? She is known to work out 1-2 times a day depending on her schedule.
Finally, she eats breakfast and starts working on her business.
Waking up early and exercising sets the tone for the rest of her day and allows her to get things done efficiently.
Jack Dorsey Morning Routine
Jack Dorsey is the founder of Twitter and Square. He has a very unique morning routine that some people might find inspiring.
He wakes up at 5:00 am and spends his early hours on personal care.
First, Dorsey starts off by taking an ice bath to shock his system. This supposedly boosts mental confidence, which is necessary for running two major tech companies.
After the ice bath, he spends 60 minutes meditating in silence. This prepares him for his five-mile walk or jog to work. He skips breakfast, which many people find controversial.
He wraps up his day by journaling and reflecting on what went well and what could be improved.
Warren Buffet Morning Routine
Let’s be honest… many people look at Warren Buffet for inspiration and guidance. He is a wealth of knowledge that has lived throughout many of the toughest points in our nation’s history.
Billionaire Warren Buffet reportedly wakes up at 6:45 am and drinks a can of Coke. Then, he heads to the local McDonald’s for breakfast.
Very opposite of what most people would assume. But this morning routine has served Buffet well for years.
Warren gets down to business. He explains that most days, he just sits in his office and reads finance-related materials all day – specifically related to company financials, market materials, financial journals, and investor reports.
After leaving the office, Buffet goes home and might pick up fast food from time to time, but typically eats at home later in the day. A little reading before bed around 10 pm.
Oprah Winfrey Morning Routine
Oprah Winfrey is a famous American talk show host and actress. She wakes up at around 8:00 AM every day, brushes her teeth, lets the dogs out, and then starts her morning routine.
She places importance on reading at least five cards from her 365 Gathered Truths box each morning. More than likely she started with saying any of these money affirmations before she found her fame.
Oprah has a routine that includes a couple of hours spent on spiritual exercises, followed by an hour of low-impact strength-training program. She also spends time with her family and friends before finally starting work in the afternoon.
Jeff Bezos Morning Routine
Jeff Bezos has a very strict daily routine that he follows. He wakes up early (somewhere between 5:00 am -6:30 am) and begins by reading the news. After that, he spends time with family, eats breakfast, and does various activities that are not work-related.
His first business meeting starts at 10 am normally working on Amazon business matters. He has business meetings and visits fulfillment centers in the afternoon, but avoids important decisions late due to fatigue.
Sleep is important to this entrepreneur and goes to bed earlier than most.
What is the most successful morning routine?
The most successful morning routine for many people includes a mix of habits that help them start their day off on the right foot. This may include waking up early, drinking a glass of water, eating a healthy breakfast, and spending some time in prayer or meditation.
In order to be successful, it’s important to have a morning routine that incorporates good habits.
If you struggle with habits, then I highly recommend you read the book Atomic Habits. These habits are easy to incorporate into your own life and will help you accomplish more tasks and live like a billionaire.
How long does the 1 billion dollar morning routine take?
The 1 billion dollar morning routine was created by Jim Kwik, a YouTube creator.
It takes at least one hour to work through his 1 billion dollar morning routine.
Here are the key principles for Jim Kwik’s 1 billion dollar routine (source):
Recall your dreams
Make your bead
Drink water and take supplements
Focus on breathing
Meditate for 15-20 minutes
Move the body for 1-2 minutes
Take a cold shower
Enjoy a cup of tea
Journal
Create 3 lists: to-do list, to-be list, and to-feel list
Read for 20-30 minutes
Make a brain smoothie
Participate in brain training.
Start with the most difficult (and important) task
Self-care, self-love, and setting a vision and direction for the day are essential components of this routine. And don’t forget about hydration! A glass of water is a great way to start your day off on the right foot.
Journaling is another important part of this routine. It allows you to check-in with yourself about your stressors and how to navigate them. Consider implementing a few of these steps into your routine to see how they make you feel.
The 1 billion dollar morning routine may not be feasible for everyone, but some of the steps included are still worth considering (particularly the one about having a plan). Or moving some of the activities to other parts of the day.
What are the habits of a billionaire life?
In order to achieve success in life, it is important to emulate the habits of a billionaire. This may seem daunting at first, but if you take a closer look at what these individuals do on a daily basis, you will find that many of their habits are actually quite attainable.
For example, many billionaires are avid readers and they make sure to read something every day. They also have a strong focus on personal finance and know how to manage their money well. Additionally, they understand the importance of taking care of themselves both physically and mentally. All of these habits are important for anyone looking to achieve success in life!
These types of people are the opposite of I don’t want to work anymore.
What will your productive morning routines look like?
There’s no “right” way to have a productive morning routine – as long as you’re committed to it and conforms to the same principles.
For example, many successful people have different routines but they all commit to following them. This may include things like personal commitment, engagement, team building, and productive motion.
It’s also key to be flexible with your routine so that you can adjust when necessary. For instance, if something comes up or there’s a change in your schedule, you’ll be able to adapt without too much trouble.
The important thing is that you make time for the things that are important to you and that help you achieve your goals.
This might include exercise, breakfast preparation, or “mindful living.”
Whatever it is, make sure it works for you and that you’re actually going to stick with it!
What will go on your Billionaire Morning Routine List?
Most morning routines of millionaires and billionaires weren’t created overnight; they’re crafted over time. Same with buying their mansion.
So don’t worry if you don’t get everything right the first time around–just keep working at it and you’ll see results soon enough!
Get out of bed and put your best foot forward EVERY. SINGLE. DAY.
Each person’s journey to greatness will be unique, but by following the examples set by these successful individuals, you’ll be on your way to achieving anything you want!
Having a millionaire morning routine means that you start your day stress-free. It also helps you achieve your goals. The benefits of the millionaire morning routine vary depending on the schedule and personality of each individual.
But, in general, incorporating a project into your morning routine can help you feel more in control of your life, boost energy levels throughout the day, and make healthier choices.
In fact, check out these millionaire quotes.
The habits of successful millionaires can be applied to any area of your life for increased success.
Finding your own productive morning routine is better than leaving your luck up to left hand itching.
Know someone else that needs this, too? Then, please share!!
Last Updated: May 28, 2023 BY Michelle Schroeder-Gardner – 29 Comments
Disclosure: This post may contain affiliate links, meaning I get a commission if you decide to make a purchase through my links, at no cost to you. Please read my disclosure for more info.
Are you looking to start refinancing student loans? The average 2015 college graduate has slightly over $35,000 in student loan debt.
And, if you have a law or medical degree, you may find yourself with an average of around $150,000 or $200,000 in student loan debt, respectively.
That’s a lot of money!
One thing I haven’t talked about much here on Making Sense of Cents is that there are many options for paying off your debt, such as by consolidating or refinancing your student loans.
Many don’t realize that they may be able to refinance or consolidate their student loans. I personally know this because I never once thought about either back when I had student loan debt.
Before you make the leap of consolidating or refinancing student loans, though, there are many things to think about. Continue reading below to determine if either consolidating or refinancing student loans is the right decision for you.
Related: How I Paid Off $40,000 In Student Loan Debt In 7 Months
Consolidating Student Loans – Positives And Negatives
Consolidating your student loans is when you combine your student loans into one single loan.
If you have federal student loans, you may be able to do a federal loan consolidation. While federal student loan consolidation most likely won’t help you save money by combining, it may help you to better manage your loan payments. This is due to the fact that you will only have one bill each month after you consolidate (this is why it’s called “consolidation”).
Many graduates have over five different student loans to pay each month, which can cause a huge mess if you forget to pay one!
Disclosure: We receive compensation from the companies below if you click on a link. Amount of compensation does not impact the ranking or placement of a particular product. Not all available financial products and offers from all financial institutions have been reviewed by this website. This content is not provided by Credible or any of the Providers on the Credible website. Any opinions, analyses, reviews or recommendations expressed here are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by Credible.
Related tip: I highly recommend Credible for student loan refinancing (they are the top student loan refinancing company and have great customer service!). You can lower the interest rate on your student loans significantly by using Credible which may help you shave thousands off your student loan bill over time. Through Credible, you may be able to refinance your student loans to a rate as low as 2.47%! Plus, it’s free to apply.
Refinancing Student Loans: Positives And Negatives
Student loan refinancing is when you apply for a new loan that is then used to pay off your other student loans.
This is usually a great option if your credit history or credit score are better than when they were when you originally took out your student loans.
By refinancing your student loans, you may qualify for better repayment terms, a lower interest rate, and more. This is great because it may help you pay off your student loans quicker.
The positives of refinancing student loans include:
Companies, such as Credible (this is an affiliate link and I highly recommend them), allow you to refinance your federal student loans as well as your private student loans into one. The average person who refinances can save thousands of dollars on their loan, which is a great amount! You can save a lot of money through student loan consolidation such as with Credible, especially if you have high interest federal or private loans.
Before refinancing a federal student loan, though, you will want to think about different federal benefits that you may be giving up. You may give up income-based repayment plans, loan forgiveness for those who have certain public service jobs (such as certain jobs at public schools, the military, Peace Corps, and more). By refinancing federal student loans, you are giving up any future option to these.
However, keep in mind that by refinancing student loans, you may receive lower monthly payments, lower interest rates, and more. This may help you pay off your debt a lot more quickly.
Things you should think about before you take your next step.
Before you take your next step, I wanted to recap the above so that you are clear about what your choices are.
If you are able to take advantage of deferment, loan forgiveness, or some other sort of federal student loan program, you may want to think twice before you refinance federal student loans.
Be careful with variable interest rates. While they may seem appealing at times, remember that your interest rate may fluctuate. If you currently have a variable rate, you may want to refinance into a fixed-rate and this may make refinancing a great decision for you.
Consolidating your student loans usually leads to increasing your loan term, which may lead to lower monthly payments. However, it can also lead to higher interest charges over the life of your loan.
If your credit is better than it was when you first took out your student loans, you may be able to qualify for better terms and a better interest rate by refinancing student loans. I recommend shopping around to see what you can get. Start out by checking out Credible!
Do you have student loan debt? What’s your action plan to pay off student loans? Do you plan on refinancing your student loans?
You want to started investing but aren’t sure what steps to take. No worries. Let me walk you through the basics and you’ll soon be on your way.
Before we start, you should know that the stock market offers a great way to grow your wealth. However, with the reward of earning 5%, 8%, or even 12% per year on your investments comes with the risk of losing money.
That means the value of your investments may drop one year. It may also take several years to recover from that loss. If you aren’t ready for the risks, then investing is not for you.
Think about These Issues Before You Start Investing
Investors are urged to invest for long term gain. This is due to changes in the market (those gains and losses you will see).
If you will not need your money for a minimum of 5 – 7 years, then you are the perfect candidate for investing. The between now and when you need your money is called the time horizon. For example, if you are investing toward buying a small cabin on the lake in 15 years, then your time horizon is 15 years. However, if your child will be heading off to college in 4 years, your time horizon would be 4 years.
Your time horizon is not the only thing you should know. Ask yourself a few other questions as well:
Am I investing for retirement, education, or another purpose?
How much do I have to invest, and is that money available in a lump sum, a regular monthly amount, or both?
Am I wanting to spend my time managing these investments?
How much money do I want to spend in investment fees?
What amount of fluctuation from the U.S. stock market performance am I willing to accept?
Your responses will guide your investing decisions, not only for the types of investments but also the brokerage firm you choose.
Consider Investing for Retirement with Low-Cost Index Funds
Let’s say you are investing for retirement, have an initial investment of $3,000. The plan is to add $100 each month to your account. You goal is to spend little time managing your investment. In addition, you would like to closely match U.S. stock performance (either the S&P 500 or the entire market). What should you do?
You can open an IRA with an online brokerage firm such as E*Trade, Fidelity, Schwab, TD Ameritrade, or Vanguard. To get started investing, you will need to fund your account. Funding is how the money moves from your account to your investment accounts.
In most cases, funding is arranged by setting up a link between your checking account and the brokerage account, and making transfers. The initial process can take a few days but after the connection is established, you can move funds to purchase shares of stocks, mutual funds, or ETFs.
Next, purchase either commission-free, market-index exchange-traded funds (ETFs) or no-load, no-transaction-fee market-index mutual funds. For example, you can buy shares in Vanguard Total Stock Market Index Fund Investor Shares (VTSMX) for a minimum initial investment of $3,000 and additional investments of at least $1. You will want to make sure you sign up for paperless statements so you can get the $20 account fee waived.
Or, you could purchase shares in commission-free Schwab U.S. Broad Market ETF (SCHB) for $1,000 (or any multiple of its market price, which is about $50 at this writing); and make additional minimum purchases that equal the fund’s share price.
Buy Individual Stocks If You Are Comfortable with Greater Risk
Alternatively, you may be interested in growing your wealth more aggressively and are willing to accept risks (and losses) associated with potentially greater rewards. You have plenty of time to spend evaluating and selecting individual stocks plus you don’t mind paying transaction fees associated with the purchase and sale of stocks (or sector or specialty mutual funds or ETFs).
Again, you could open a regular brokerage account with any of the online brokerage firms. You might look at investing with Acorns, E*Trade, Schwab, or Fidelity. Keep in mind that each on-line firm has minimum investment thresholds that you will need to meet. You could choose stocks on your own or find ones using screening tools available on each firm’s website.
After determining what you’d like to buy and the approximate quantity, you’ll want to set a price to indicate how much you are willing to pay for shares and then place your order. Fees to place orders typically run about $9.99 or less.
Decide Whether Innovative Brokerage Firms Are Right for You
You might also consider investing with a newer firm, such as Betterment, Motif Investing, or Loyal3; these companies all have unique approaches to serving customers that may or may not meet your needs.
Betterment makes investment decisions on your behalf and charges an account management fee rather than individual transaction fees; you may like this approach if you don’t have time to invest on your own. Motif Investing offers fee-free investing through its Horizon Motifs, which are comprised primarily of market index ETFs, along with its specialty motifs that trade for a flat $9.95 fee. Loyal3 has a totally fee-free platform in which you can buy shares (or even fractional shares) of certain stocks with an investment of as little as $10.
If you are ready, now is the time to get started in investing, regardless of whether the market is up or down today. The sooner you start, the more your money can grow.
Julie Rains is a freelance writer specializing in personal finance, mortgages, and investing. She writes for her own blogInvesting to Thrive as well as other media outlets including Wise Bread and Loans101.
Julie holds a Bachelor of Science in Business Administration with a concentration in Finance from The University of North Carolina at Chapel Hill. Julie started investing soon after graduation and has continued to invest and learn over the past 20+ years. In her free time, she enjoys cycling with friends and spending time with her husband and nearly grown sons.
Once upon a time, retirement in America was referred to as “a three-legged stool.” The first leg was your expected Social Security benefits, the second leg was your own personal savings and the third was something old-timers called a pension.
A financial advisor can help you create an income plan for retirement. Find a fiduciary advisor today.
A pension – also called a “defined benefit plan” – is a payment from a former employer that was (and sometimes still is) offered as a benefit with no contribution from you. The payment amount is based on years of service with that company. Once you’ve worked long enough to become “vested,” your benefit is guaranteed at a certain age and doesn’t end until you die. In many cases, a surviving spouse can receive a reduced benefit.
In 1975, there were 103,346 pension plans in the United States, a number that started to decline in the early 1990s and dwindled to just 46,577 plans by 2020. In many cases, the companies that promised those pensions have been sold, merged or gone out of business. However, many workers who are still entitled to receive those benefits lack any details about their pensions, including how to go about collecting them.
Unclaimed pensions are waiting to be claimed by at least 80,000 people, according to the Pension Benefit Guaranty Corp. (PBGC), the federal agency that oversees retirement security for Americans. In some cases, the people entitled to those pensions don’t even know they’re eligible to receive payments.
Resources For Locating an Unclaimed Pension
If you’re looking for a missing pension – or want to find out if you qualify to receive one, try these resources:
Previous employers. Keep your contact information updated with the benefits administrator at the companies where you worked or their successors.
Legal assistance. The Pension Rights Center is an information resource that also runs Pension Counseling and Information Programs in 31 states. These programs provide free legal assistance for help with pensions, profit-sharing and retirement savings plans.
In states without counseling and information programs, the Pension Rights Center’s Pension Help America offers assistance in finding counseling projects, government agencies and legal service providers.
Meanwhile, the National Pension Lawyer’s Network, an affiliate of the Pension Rights Center, is a free service that can refer you to lawyers who take pension cases, sometimes pro bono.
Employee Benefits Security Administration. The EBSA is part of the U.S. Department of Labor and has free counselors who can answer pension questions. The E-Fast feature on the agency’s website can find pension plan annual reports going back to 2010, which explain how to file a pension claim. The Abandoned Plan Search Tool is also on the agency’s website.
Other resources. Pension Benefit Guaranty Corp. (PBGC) can help with claiming a pension. You can call for assistance toll-free at 800-400-7242.
Meanwhile, the National Association of State Treasurers runs the National Association of Unclaimed Property Administrators, a network of to help locate unclaimed assets. Additionally, the National Registry of Unclaimed Retirement Benefits is run by PenChecks, the largest independent processor of retirement benefit distributions in the U.S.
Bottom Line
As defined-benefit pension plans have been phased out in favor of 401(k) and similar accounts, workers may not know that they qualified for a pension many years ago. In addition, as older companies have been sold, merged or closed pension plans can lose track of vested employees. Even when a company has declared bankruptcy, pension benefits may be protected by the federal Pension Benefit Guarantee Corp. (PBGC)
Tips for Claiming Your Pension
There are a number of resources, as listed above, for locating a missing or unclaimed pension. If you think you once qualified for a pension, don’t assume that you’ll be contacted to claim it. Remember, just because you once worked at a company that offered a pension plan you may not have worked there long enough to become vested. In that case, your pension benefits would have been forfeited when you left the company. To see how any pension income might figure in your retirement plans, try SmartAsset’s retirement calculator. This free tool will estimate how much you’ll have when the time comes to retire.
In most cases, an old pension likely won’t pay enough benefits to live on. You’ll still need to figure out when and how to claim your Social Security benefits and maintain your own savings to support yourself in retirement. A financial advisor can help. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you.