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Apache is functioning normally

July 26, 2023 by Brett Tams

As the world navigates the COVID-19 crisis together, there have been far-reaching economic impacts. With unprecedented unemployment rates and a shaky stock market, some are questioning whether or not the FIRE movement will continue to exist.

In case you didn’t know, the FIRE (Financial Independence/Retire Early) movement is a collection of avid savers that are aggressively investing in pursuit of early retirement decades before hitting 65. With the most recent economic downturn, some critics are skeptical of the community’s ability to continue moving forward amidst continued economic uncertainty.

What’s Ahead:

Is it still possible to retire early with the financial impact of COVID-19?

The major question that critics, and those in the FIRE community, have is whether or not is it still possible to retire early with the current economic crisis. Has COVID-19 crushed the early retirement dreams of everyone in the community?

The economic impacts of COVID-19 have been pronounced. But there is hope. There have been several examples of early retirees that are successfully navigating the financial impacts of the pandemic. Some have even taken the leap into early retirement in the midst of the COVID crisis. Even with the significant impacts of COVID-19, success stories show that it is still completely possible to retire early.

The quickly changing economic landscape can be a hurdle. But as an early retiree, you should expect several big market dips throughout early retirement. If you plan to retire for decades, it is only a matter of time before you experience a major market disruption. In fact, six major market collapses have been recorded throughout U.S. history. In those crashes, the stock market has lost over 10% of its value. These crashes remind us that investing in the stock market is fraught with risk.

In 2008, the stock market took a scary nose dive that signaled the start of the Great Recession. At the time, the nerve-wracking sight didn’t kill early retirement dreams. With a more realistic grasp on the downside of being dependent on a paycheck during a financial crisis, many joined the FIRE movement as the economy began to recover. Since the crash in 2008, many people have been able to build their net worth and retire early successfully.

As we live through another major economic downturn, the importance of achieving financial independence is more pronounced than ever. Although it was never easy, it is still possible to retire early. The market will likely recover at some point, just as it has throughout the rest of history. With that, retiring early should remain a possibility in your life if you want to pursue it.

How to make sure you can still retire early

Of course, you will need to make some adjustments to compensate for the impact of this crisis. But if you are pursuing early retirement, it is still a possibility.

If you are struggling to stay on track to your FI goal, here are some strategies that can help you create more realistic FIRE goals.

Evaluate your investment strategy

An essential component of a successful early retirement is a carefully executed investment strategy. Since you will be relying on your investments for an income in early retirement, you must create a portfolio that accounts for your risk tolerance. Otherwise, every market dip will leave you in a panic.

With the importance of a strong investment strategy in mind, you may want to consider using an app like Public. Public has outstanding educational tools built into the experience to help you learn more.

Many FIRE enthusiasts rely on the traditional 4% rule, which states that you can withdraw 4% of your principal balance every year. In theory, you’ll be able to safely withdraw 4% every year. But the amount that equates to can change quickly. As we saw in the dramatic market drops earlier this year, it is easy for a portfolio to lose a substantial amount of value overnight. You can lower your risk of running out of money by lowering your withdrawal rate. But if you still aren’t comfortable with that potential risk, then rebalancing your portfolio to account for your risk tolerance is a good move.

Rebalancing to suit your priorities can be easy when using a DIY investment platform like Robinhood. With Robinhood, you can set up an investment portfolio and make trades as you wish. This can provide some peace of mind as you move forward.

A final piece of your investment strategy that you need to evaluate is the fees. Although you may have done your research to find a low-cost taxable account, some employer-sponsored options could be riddled with fees.

Luckily, blooom can help you figure out how much you are losing to fees and how to make adjustments to minimize these fees. If you are looking for guidance surrounding your employer-sponsored plan, then check out blooom as an optimization option.

Advertiser Disclosure – This advertisement contains information and materials provided by Robinhood Financial LLC and its affiliates (“Robinhood”) and MoneyUnder30, a third party not affiliated with Robinhood. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Securities offered through Robinhood Financial LLC and Robinhood Securities LLC, which are members of FINRA and SIPC. MoneyUnder30 is not a member of FINRA or SIPC.”

Beef up your emergency fund

Although a safe investment strategy is important, cash on hand will help you weather any financial storms that come your way. That is why you need to have an emergency fund on hand to cover expenses when the market is in the midst of a major downturn.

While you are working, an emergency fund with a few months of expenses is likely sufficient. But if you are planning to leave the workforce, then a stockpile of cash to sustain you for several years might be in order.

The exact amount of cash you keep on hand will vary based on your goals and risk tolerance. However, you should plan to keep your savings in a high yield emergency fund such as the CIT Savings Builder. The account offers a competitive interest rate to help your savings keep up with potential inflation risks.

Look for expenses to cut

If you are a part of the FIRE community, then you likely have a somewhat frugal nature. Although you may enjoy the finer things in life, you know the difference between needs and wants. With that, you may need to take the opportunity to cut some wants out of your life.

You may need to get creative when looking for expenses to cut. A few ideas to consider include running your errands on the way home from work to avoid additional transportation costs on the weekends, tackling your yard work without the help of a handyman, and tapping into your DIY side when you need to replace household items.

As you explore your options to cut expenses, consider enlisting the help of a service like Trim. The ‘personal finance assistant’ can help you cancel unwanted subscriptions and negotiate with bill providers to lower your monthly costs.

Taking the opportunity to lower your expenses can help you stretch your savings farther.

Consider other income opportunities

Keeping your expenses low is one side of the FIRE equation. On the other side, a higher income can help you meet your savings goals more quickly.

With the spike in unemployment, it may be a good time to consider broadening your income horizons. That means looking beyond your nine-five for income streams. Usually, this means investing in a cash flow positive rental property or building a new skill set to boost your income. But you should consider any side hustle opportunities that strike your fancy. You might try delivering groceries, selling home decor on Etsy, or becoming a juror in a mock online trial.

Get creative as you seek out other income ideas. You never know what life will throw your way!

Adjust your retirement timeline

Even if you slash expenses and boost your income, you may not meet your savings goals due to circumstances beyond your control. If you’ve lost your income as a result of the pandemic, then you will likely need to adjust your retirement timeline.

Take a look at your net worth and the current amount you are able to tuck away into your investments each year. Once you have a better idea of your trajectory, you can line this up with your FI number. This should help you understand when you will be able to retire.

However, the changing math can get tricky. With that, I would recommend using MU30’s FIRE calculator to play with your changing scenario. With your real numbers, the calculator can help you determine what you’ll need to do in order to retire early.

It is okay to make adjustments! Even if you aren’t able to retire as early as you would like to, you will likely be able to retire at some point if you work towards your goals.

Consider flexible retirement plans

When you think about retirement, also consider the idea of scaling back on work. Flexible work arrangements can be the perfect gateway into early retirement.

Instead of retiring completely when you reach FI, consider working part-time or switching to a passion project. You may not earn as much with these options, but you can continue beefing up your retirement savings before you make the jump into retirement.

Plus, you can always return to the workforce if you need to. In many cases, you’ll be able to find a job if you want to start working again. But you’ll need to keep your skills sharp and resume updated if you are considering this option.

In addition to considering different work arrangements, you may need to consider different living arrangements in early retirement. As the pandemic has illuminated, global travel can grind to a halt. With that, many early retirement dreams of globetrotting to exotic places have been put on hold. Consider where you would be happy to spend your newfound free time if you weren’t able to travel in early retirement.

Prepare for future economic downturns

Achieving financial independence will not happen overnight, it will take many years to reach that pinnacle. You will likely run into many bumps in the road on your way to retiring early.

But the speed bumps don’t stop there! Once you’ve committed to early retirement, you will likely encounter more trying economic downturns. It is especially likely that you’ll encounter multiple downturns in your retirement since you’ll be retired for several decades!

As with this economic crisis, the solution is to remain flexible in your retirement. Depending on the extent of the economic damage, you may need to cut back on expenses or consider picking up a part-time job. That may mean that your retirement looks different than you originally envisioned. But a flexible attitude will keep your FIRE dreams alive and well in this downturn and the ones that will follow.

Summary

The FIRE movement is based on the idea of living below your means and achieving a permanent level of financial stability. If you are currently on the path to FI, then you are likely in a better financial position than most. Hopefully, you have enough cash in your emergency fund to weather the storm and a flexible attitude that can keep your expenses in check.

Although members of the FIRE community will need to stay agile in the coming months, the movement is not extinguished. In fact, it may burn even brighter in the future as more people crave the financial stability that many on the path to FI have attained.

Apache is functioning normally

July 25, 2023 by Brett Tams

Moody’s strategists say high mortgage rates will weigh on the housing market for years to come.
They see central banks keeping monetary policy tight this year, and think mortgage rates will stay stubbornly high even after easing begins.
They says prospective homebuyers and homeowners looking to refinance will feel the most pressure.

Apache is functioning normally

July 25, 2023 by Brett Tams

Moving into a new apartment is exciting but also expensive. There are a lot of costs and fees associated with renting an apartment. Some, like monthly rent and the security deposit, are immediately obvious and expected. But, you’ll also encounter unexpected costs or hidden fees during this process, like move-in costs or needing new furniture.

All the costs involved can stack up quickly, ballooning well past just the cost of the rent. So, how much do you actually need to save toward renting an apartment before moving in? You want to save enough money to cover all costs involved in renting an apartment, as well as standard, day-to-day living expenses. Here are all the costs you need to budget and save for before renting an apartment and how much you should save.

Why do you need to save money before renting an apartment?

Rent money is just the tip of the iceberg regarding apartment costs. Here’s a list of all the upfront costs and expenses your apartment savings fund should include and cover:

First month’s rent and last month’s rent

When moving in, you’ll have to pay the first month’s rent. Many landlords or property managers may also require that you pay rent for the last month, as well, prior to moving in.

Security deposit

To rent an apartment, you’ll also need to put down a security deposit. Security deposits are usually the same amount as one month’s rent, but sometimes they’re less if you have good credit or a co-signer.

Many landlords also require a security deposit if you’re moving in with a pet, better known as a pet deposit.

Application fees

Most landlords charge an application fee for them to consider your rental application. These application fees are usually between $25 and $50 but can get as high as $100. You may also have to pay for a background check screening, which is generally in a similar price range.

Since you’ll likely submit several applications, you should set aside $100-$200 to cover these fees. While generally non-refundable, if they accept your application, sometimes, the application fee gets put toward your security deposit.

Utilities

While not necessary, it’s a good idea to also save for your first month’s worth of utilities. You’ll spend a lot of money all at once during the rental process, so you may as well plan ahead and budget for utilities.

The cost of utility bills like electricity, internet and water varies depending on factors like usage and time of year. But, you can make a rough estimate based on average utility costs.

The average monthly cost of electricity is $115, while the average water bill is $70. Internet usually costs $60 and trash and recycling is $15. Taken all together, that’s $260. So, you should save between $250-$300 for the first month of utilities.

Many apartment complexes include some or all utilities in the rental rates. But, it depends on the apartment complex. In some cases, you’ll need to pay monthly bills directly to the utility companies.

Appliances, furniture and apartment furnishings

If this is your first apartment or you’ve gotten rid of a lot of stuff before moving, you may need to budget for new furniture, décor and other necessities.

Many apartments come with appliances included, but not always. If you choose an apartment with a washer and dryer hook-up but no machine, you may need to set aside money for a washing machine.

How much you should save for these expenses depends on personal needs and preferences. You may only need several hundred dollars if you already have most of the things you need. But if you have a big list of things you buy, it could go up into the thousands.

Insurance and additional fees

Along with application fees, some apartment complexes will also charge apartment fees for things like move-in cleaning or parking fees. You’ll likely also have to get renter’s insurance.

Moving costs

Moving expenses and moving costs are especially important expenses to consider, as they range anywhere from $1,400 to $5,700. Even if you don’t opt for a professional moving company, you’ll still need to pay for a moving truck and moving supplies.

Miscellaneous costs

Now that you have the essentials down, it’s time to account for the assorted miscellaneous costs that pop up during the apartment rental process.

There are tons of little expenses and costs that go into getting an apartment. Moving into your first apartment or even just a new apartment, you’ll have to buy basic items like cleaning supplies and food. If you want cable or to use a specific internet provider, you may have to pay an installation fee.

Overall, there are a million tiny things that you’ll need around your apartment, as well, like a shower curtain or a doormat.

With so many other things to pay for, you also can’t forget regular monthly expenses like car payments as well.

How much do you need to save for your first apartment?

Now, the big question: How much money do I actually need to set aside for an apartment?

Based on the above categories, you should save an amount equal to at least 3-4 months’ rent. That will cover paying rent for the first month, security deposits and last month’s rent. But, how much should that be? The amount of money you should save toward your apartment depends on apartment prices, which, of course, are variable and subjective.

As an example, the national average rent for a one-bedroom apartment is $1,701. That comes out to $5,103 for three months’ rent. You’ll need $6,144 to cover the average rent for a two-bedroom apartment of $2,048.

Remember, that’s just for monthly rent and deposits. You’ll need to set aside even more money for all other living expenses like utilities. Going back to the one-bedroom apartment example, add $260 to that $5,103. Tack on $100 for apartment and application fees and $168 for renter’s insurance. Let’s roughly say $500 for assorted costs like stocking the fridge and buying some new furniture. That comes out to a minimum savings of $6,131.

You should also save more money than you think you’ll need in case of emergencies or unexpected expenses.

How long does it take to save up money for an apartment?

How long it takes you to save up money for your apartment depends on your monthly income and pre-existing expenses.

If you’re a high earner in good financial standing with a high gross income, it may only take a few months to save enough. Even if you don’t make a ton of money, there are ways you can reach your savings goal faster.

How to start saving money for an apartment

Needing to save thousands of dollars for an apartment can seem like a daunting task, especially for young adults who don’t make a ton of money. But, these tips will help you save money toward getting that apartment.

Know what you can afford to pay in rent

Most importantly, don’t bite off more than you can chew when it comes to renting. You need to know how much rent you can afford to pay each month while having money left over for other essentials like food and utilities.

First, check your pay stubs to figure out how much you make each month. You should also know what other expenses you make on a monthly basis. Once you know what you earn, you can calculate your rent.

A good rule of thumb is to only spend 30 percent of your income on rent. Many landlords also require a rent-to-income ratio of one to three. In other words, you need to earn three times more than your rent.

For instance, if you’re paying $1,701 for a one-bedroom apartment, you need to bring in at least $5,670 monthly.

Set up a savings plan

To start reaching your savings goal, get organized. Based on your income and expenses, set up a savings plan that allows you to set aside a certain amount per month. The more you’re able to save each month, the faster you’ll reach your goal.

You can even check with a financial advisor to help you set up a plan and save.

Set up a separate bank account

Open a savings account specifically dedicated to your apartment fund. That way, you won’t spend it and it’s removed from your regular savings and spending.

Cut back on expenses

You can boost your savings and reach your goal faster by cutting back on non-essential expenses like streaming services or magazine subscriptions. If you’re paying for a subscription that you don’t use or need, that’s just wasting money that could go toward your apartment fund.

It’s hard to cut back on fun activities or services, but it’s just temporary. Once you’re settling into your new apartment, you can renew any expenses you took a break from during your savings period.

Shop smart

Along with cutting back on unnecessary spending, you can stretch your budget even more by becoming a thrifty, bargain-seeking shopper. The less you’re spending on things like food, the more you can put into your savings.

At grocery stores, buy generic brands to take advantage of lower prices. You can also buy things in bulk, like toilet paper, to save more. Using coupons or shopping sales are other handy ways to spend less and save more.

For bigger items like furniture, go to thrift stores or garage sales. This option may not work for everyone. Buying second-hand items sometimes means they’re not in the best shape, or it may take a while to find the exact item you’re looking for. But, with patience and persistence, you’ll find good, high-quality items at greatly reduced prices.

In this expensive rental market, you’ll have to save thousands of dollars for an apartment

With high rents and rising prices, it’s getting more and more expensive to rent an apartment. You’ll need to set aside and save thousands of dollars for even a one-bedroom apartment. But, the amount of savings you’ll need does depend on the cost of rent, so you can find more affordable apartments that require lower levels of savings.

The information contained in this article is for educational purposes only and does not, and is not intended to, constitute legal or financial advice. Readers are encouraged to seek professional legal or financial advice as they may deem it necessary.

Source: rent.com

Apache is functioning normally

July 25, 2023 by Brett Tams

We’re looking at more movement in the bond market today, which is certainly putting some upward pressure on mortgage rates. This is a trend that we think will continue over the coming weeks and months. So if you’re looking to buy or refinance, you might want to consider taking action soon. Read on for more details.

[embedded content]

Market Outlook 1.8.17 from Total Mortgage on Vimeo.

Where are mortgage rates going?

Bond sell-off continues

First Japan, now China. The big news this week has been the international news surrounding the bond market. We saw the Bank of Japan announce yesterday that they are reducing their bond buying program.

Click here to get today’s latest mortgage rates (Jul. 25, 2023).

Now, we have China reportedly looking to follow suit and cut back on their U.S. Treasury holdings. All of this has had a marked effect on the 10-year Treasury yield, which is the best market indicator of where mortgage rates are going.

We’ve seen that yield move about twelve basis points higher this week, pushing it up past the significant milestone of 2.50%. In fact, right now it’s all the way up to 2.58%. This is the highest it’s been since last March.

Mortgage rates tend to move in the same direction as the 10-year yield, so we’ve seen rates move higher this week. This is something that we’ve been anticipating would happen for a while, but not quite for the reasons we’re seeing now.

The way the market has been trending, it seems reasonable to expect that current mortgage rates will continue to rise.

Rate/Float Recommendation

Lock now while rates are low

Mortgage rates are poised to rise throughout 2018, so the sooner you lock, the more likely it is you’ll get a better deal on a purchase or refinance.

Click here to head to our Mortgage Builder and figure out how much you could save.

Today’s economic data:

Import and Export Prices

Import prices rose by 0.1% in December, putting them at 3.0% year over year. Export prices ticked down by 0.1%, bringing them to 2.6% year over year.

Fedspeak

Chicago Fed President Charles Evans at 9:00am
Dallas Fed President Robert Kaplan at 9:10am
St. Louis Fed President James Bullard at 1:30pm

EIA Petroleum Status

Crude oil: -4.9 M barrels
Gasoline: 4.1 M barrels
Distillates: 4.3 M barrels

10-Yr Note Auction

Get the GreenLight and close in 21 days*

Notable events this week:

Monday:

Tuesday:

Fedspeak
JOLTS

Wednesday:

Import and Export Prices
Fedspeak
EIA Petroleum Status
10-Yr Note Auction

Thursday:

Jobless Claims
PPI-FD

Friday:

Consumer Price Index
Retail Sales
Business Inventories

*Terms and conditions apply.

Carter Wessman

Carter Wessman is originally from the charming town of Norfolk, Massachusetts. When he isn’t busy writing about mortgage related topics, you can find him playing table tennis, or jamming on his bass guitar.

Source: totalmortgage.com

Apache is functioning normally

July 25, 2023 by Brett Tams

As a mom, finding clever ways to save money can help secure your family’s financial future.

Yes, I know, there are many other, more impactful ways to build wealth, and in the grand scheme of things, saving a buck here and there might not seem like the recipe for propelling yourself (with your entire brood in tow) to millionaire status, but hear me out.

Unless you stop the bleeding (in this case, frivolous spending), it will take you a lot longer to get there.

In my mind, building generational wealth is a combination of developing marketable skills, earning from those skills, investing wisely, and frugal spending.

…And putting your foot down when any member of your brood wants to splash $1,000 on a pair of, in my view, hideous sneakers.

That’s why I rave about How to Create a Budget and Everything You Need to Know to Start Using Coupons.

A Mom’s Guide to Saving Money the Smart Way

Of course, as with everything worth doing, it’s much easier said than done. Believe me; I’ve had moments of taking on unnecessary expenses at the grocery store despite having blown past our monthly budget.

It happens; you are going to slip up sometimes. The key is to have a solid hold on your spending habits and a savings system. That way, even if you go off the rails occasionally, you can recover and stay focused on your ultimate savings goals.

With that in mind, here are my top-secret (shhhhhh) creative ways to save money monthly.

1. Start Budgeting

It sounds obvious, doesn’t it?

Would it surprise you to learn that only 30% of American households actually have a detailed monthly budget prepared? Yes, according to a Gallup poll, two in every three Americans don’t have a monthly budget, nor do they have a long-term financial plan or investment goals.

I kid you not; budgeting is one of those things that everyone knows they should do, yet up to two-thirds of us don’t!

Having a detailed monthly budget will open your eyes to the reckless spending on everyday purchases you are currently engaging in.

From unnecessary online shopping sprees to pizza deliveries, even your grocery bill might have something you don’t need, or you can find cheaper alternatives if you just look.

You won’t know where all the money is going until you have an actual, written-down budget. THEN you will see just how badly you’ve been throwing cash around.

Here’s a quick guide on budgeting categories for the family if you want to get started right away.

2. Use Money Saving Apps

If you are anything like me, you put most of your grocery shopping, utility bills, and monthly bills on your credit or debit cards. While most of these offer rewards when you use them, you can go further and use savings apps.

Here’s why. Many of these apps highlight saving opportunities and fetch rewards such as cash back on many purchases you would make anyway.

Neat, huh?!!

Here are a few that I like using. You can check them out and see what you think:

Ibotta: I get cash back for most purchases.
Acorns: This one helps me save and invest.
Rakuten: These guys give you cash back on online purchases you make in over 3,500 stores.

3. Try Out Capital One Shopping

Now this is a tool I simply love! Capital One Shopping is not only free, but it also works in the background. So you don’t need to remember to use it every time.

If you want to find the best deals online and gift cards and coupons, you must install Capital One Shopping on your browser.

You will save a ton of money. Trust me on this one! It is by far one of my favorite and most clever ways to save money.

4. Create a Meal Plan

Have you ever found yourself at the grocery store buying things that weren’t on your list because they looked “interesting to try out?” I know I have!

I’m not saying you shouldn’t try new things and new recipes (what would life be without these little adventures?). I’m saying that meal planning will help you cut back on a lot of unnecessary expenditures when it comes to groceries.

Here’s why I meal plan:

It helps us avoid food wastage (leftovers are planned for)
Encourages a better diet
Saves money on impulse purchases at the grocery store

But most importantly, meal planning helps me save money and curb my spending habits on those nights I don’t know what my family will eat. I will already have a plan in place to help cut down on ordering in and eating out.

Check out my free printable meal plan!

5. Conduct a Personal Finance Audit

I know! I know! That sounds like what the IRS is for, but hear me out.

There are things you are paying for now that you either don’t need or don’t even remember that you are paying for unless you run a complete audit of your finances.

When was the last time you actually saw your husband reading that “Monster Trucks Forever” magazine that keeps coming in the mail?

How about you? Are you really going to visit all those vineyards someday? Then why are you paying for that subscription?

We often put so many little $1-a-month subscriptions on our cards because they seem important at the time, or a dollar a month doesn’t seem like that much. But they add up.

Run a quick audit on your bank statements to find out what you are paying for that you no longer use or don’t actually need, and cut it out.

These are just some creative ways I use to reduce our spending and save money. Saving money doesn’t have to be painful. You just need to find ways to reduce your living expenses (not necessarily lifestyle) and channel all that extra cash into your savings account.

Also see: How to get out of debt fast when you don’t have much money

How about you? What are some of your clever ways to save money?

Source: pennypinchinmom.com

Apache is functioning normally

July 24, 2023 by Brett Tams

Today we’re going to look at ten notorious “bad guys” in history who, as it turns out, may not have been all that bad. From misunderstood Greek gods to uncredited dentists, we’re diving into the stories behind some of history’s most vilified figures. Here are who folks from a popular online community volunteered as “not the bad guys.”

1. Robert the Bruce from Braveheart

Photo Credit: Icon Productions.

Historical portrayals can always be contested for accuracy, and Braveheart’s case proves just that. For example, someone pointed out how Robert the Bruce was loyal to William Wallace, unlike what the movie showcases.

1. Robert the Bruce from Braveheart

Photo Credit: Shutterstock.

While sometimes events are rewritten for entertainment value, one person argued that the original story was more exciting and could’ve been portrayed as is. Someone should have told Mel Gibson to do his research.

2. Niccolo Machiavelli

Photo Credit: Shutterstock.

History is full of stories about unfortunate, misunderstood men, and Machiavelli is one of them. As many pointed out, his name is wrongly muddled with vices such as dishonesty, manipulation, and lies.

2. Niccolo Machiavelli

Photo Credit: Shutterstock.

In reality, The Prince was more of an observation about how governments are rather than a suggestion regarding how they should be.

3. The First Persian Empire from 300

Photo Credit: Shutterstock.

Okay, this is no longer about bad guys but bad empires. But hear me out. If you recall the film 300, you can remember how the First Persian Empire really got the short end of the stick. As someone mentioned, the movie was made from a Spartan point of view, making it a biased depiction.

3. The First Persian Empire from 300

Photo Credit: Shutterstock.

Of course, no empire was perfect, but it is always important to point out if a negative characterization is unwarranted.

4. Captain Hazelwood of the Exxon Valdez

Photo Credit: Johnathan Weiss / Shutterstock.

Finding someone talking passionately about Captain Hazelwood in immense detail was amusing. However, to cut it short, the man is often considered a drunk captain who couldn’t manage his ship.

4. Captain Hazelwood of the Exxon Valdez

Photo Credit: JHVEPhoto / Shutterstock.

In reality, Hazelwood was not even in command during the spill. The man just wanted a nap, and suddenly he’s a drunken pirate? Give him a break!

5. William McMaster Murdoch from Titanic

Photo Credit: Paramount Pictures and 20th Century Fox.

I can’t think of anyone who hasn’t seen the film Titanic. Inevitably, most of us thought of Murdoch as a horrible person.

5. William McMaster Murdoch from Titanic

Photo Credit: Anton_Ivanov / Shutterstock.

It is often forgotten that he was a real guy who saved many lives during the incident.

6. Hades from Greek Mythology

Photo Credit: Shutterstock.

Hades wasn’t a bad guy, or at least not as bad as other Greek Gods. As one person mentioned, he was loyal to his wife (for the most part, at least).

6. Hades from Greek Mythology

Photo Credit: xNick / Shutterstock.

He’s not as bad as everyone thinks. I mean, he named his dog Spot. That’s just too cute!

7. Tom from Tom & Jerry

Photo Credit: HI_Pictures / Shutterstock.

Let’s delve into the classic skirmish between Tom and Jerry. Controversial, I know! However, many folks think that Tom wasn’t all that bad. One person speculated that the duo was putting on a show to avoid getting kicked out by their owners.

7. Tom from Tom & Jerry

Photo Credit: moaarif / Shutterstock.

Of course, most episodes are disconnected from each other and portray vastly different versions of the relationship between Tom and Jerry.

8. William Thomas Green Morton

Photo Credit: Shutterstock.

William Thomas was an unfortunate dentist who did not get enough attention to discovering anesthesia. This may be because doctors at the time didn’t take him seriously.

8. William Thomas Green Morton

Photo Credit: Shutterstock.

Many folks commented that his discovery is the only reason modern-day surgery is possible. It’s a shame he didn’t get the credit he deserved, but dentists and doctors have always been at odds.

9. Herbert Hoover

Photo Credit: Shutterstock.

Hoover won the 1929 elections and took office as the US President. Unfortunately, he was subject to too much criticism as the world faced a horrific economic depression shortly after his tenure began.

9. Herbert Hoover

Photo Credit: Joseph Sohm / Shutterstock.

In reality, as someone commented, Hoover had brilliant administrative skills, which led him to win in the first place. However, a series of unfortunate circumstances brought forth a lot of criticism.

10. Pharaoh Cleopatra

Photo Credit: Shutterstock.

Contrary to popular belief, Cleopatra was not an exploitative ruler. She’s not just a pretty face, folks. She was intelligent and dedicated as a leader. So let’s give credit where credit is due!

10. Pharaoh Cleopatra

Photo Credit: Shutterstock.

In truth, one person mentioned how she was incredibly focused on the development and welfare of her nation. “You get a pyramid, and you get a pyramid, and you get a pyramid!”

Source: Reddit.

Image Credit: Shutterstock – Denis Makarenko

Who is one actress you can never stand watching, no matter their role? After polling the internet, these were the top-voted actresses that people couldn’t stand watching.

10 Actresses People Despise Watching Regardless of Their Role

These 7 Celebrities are Genuinely Good People

Photo Credit: Shutterstock.

We’ve all heard the famous adage that “no publicity is bad publicity,” and while it tends to be accurate, there are certainly exceptions. But what about those few stars who stay out of the limelight and get along without a hint of trouble?

These 7 Celebrities are Genuinely Good People

Photo Credit: Shutterstock

Have you ever known someone and thought you liked them—until you learned about their hobbies? Then you get to know them and then you’re like, “Wow, red flag.” Well, you’re not alone.

These 10 Activities Are an Immediate Red Flag

Photo Credit: Shutterstock.

Some celebrities definitely seem to enjoy the limelight and keep working to stay in the public eye. While others quickly move out of the spotlight. Many of these actors and actresses stepped out of the spotlight to live a more private life without constant media pressures.

10 Celebrities That Made the Big Times Then Disappeared Off The Face of the Earth

Image Credit: Troma Entertainment

We’ve all been there – sitting through a movie that we can’t help but cringe at, but somehow it still manages to hold a special place in our hearts.

These 10 Terrible Movies Are Still People’s Favorites

About the Author

Saad Muzaffar

Source: financequickfix.com

Apache is functioning normally

July 24, 2023 by Brett Tams

People have wondered for decades whether it’s more worthwhile to have a high-paying, stressful job or a more peaceful job with a smaller paycheck. One gives you better resources but less time or energy to enjoy them. The other offers you time to enjoy your hobbies but less capital to invest in them or in luxury. As a 20-something, which one would you choose?

1. Consider the Cost of Living

Photo Credit: Shutterstock.

When you’re making a difficult choice that would affect you long-term, consider other factors like the cost of living. For instance, will the lower-paying job still allow you to live comfortably, or will you be existing paycheck to paycheck? And beyond that: if you take a higher salary, will you be required to move somewhere with a much higher cost of living, which will essentially keep you paycheck to paycheck? It’s important to ask those questions before you move across the country for a glamorous job that still barely pays the bills.

The point is that not all high salaries are good, especially if you live in a very expensive city like New York. So before you take a new job, do some research. Figure out the average cost of rent and basic needs like groceries and clothing, so you can make a more informed choice.

2. Stress-Free Salary

Photo Credit: Shutterstock.

One user stated, “I’ve been working for 30-40% less than everyone else my entire career just so I can have a stress-free life with more time for family and have my weekends for me. Sure, I don’t have a million-dollar nest egg or drive fancy cars and have a big house, but I’m [really] happy.”

Another person replied, “I used to work doubles all the time because I thought I needed to keep making money to finally get out of restaurant work. Did this throughout my entire 20s, I also had depression for 15 years. Found a restaurant where I can make a living only working 4 days a week, 25ish hours a week when I was 33. I’m almost 35 now, but my depression is gone, I have more time for my hobbies, and I’m happier than I’ve ever been. I cannot begin to stress how important a work-life balance is. I don’t think I can ever go back to 5 days a week.”

Another commenter added, “This x100. All my friends that work a lot and make a lot of money have nothing to talk about when we hang out aside from how much they work.”

3. Prioritize Your Health

Photo Credit: Shutterstock.

It’s true when they say, “Health is wealth.” Give it the priority, whether it’s about your physical or mental health. After all, you can’t enjoy all the money you’ve earned when you’re sick.

One person shared, “Your health and happiness is more important than money. You have all your life to work, OP. Don’t listen to the ghouls, money will come and go, but your time is irreplaceable. Go and find happiness.”

4. Minimize Your Stress

Photo Credit: Shutterstock.

For some people, money is everything. They’ll do anything—even if it will cost their mental health—to build wealth as soon as possible. However, some people are against it.

One user said, “I had the most stressful job of my entire life at age 20. The lesson I learned from that is to aim for the least possible stress in any scenario that results with me getting what I want. From choosing the least stressful routes for my daily commute (as opposed to the fastest or shortest) to taking the jobs that would be easiest on my mental well-being and my family’s health. I actively seek to put myself in less stressful situations. I’m 40 now, healthy, well-off, and with a happy family. Your mileage may vary.”

5. Cultural Environment Matters

Photo Credit: Shutterstock.

Choosing between a high-salary job and a low-stress environment is not always enough. Sometimes it’s good to check on the culture of the place you’re considering moving to as well. Are you moving from one large city to another? There may not be a huge change. Then again, if you’re going from the East or west coast to a large city in the Midwest, there may be some culture shock.

“I think quality of life matters a lot, but I would offer that culture is important as well. If you are going from Philly to Austin, ok, sure not a huge change. If you are going from NYC to Selma, Alabama you might notice your life is very different. The money is one factor, and lower stress is almost always good, but what you do every day with that free time is worth considering,” one commenter said.

6. Pay Cuts may be Worth It

Photo Credit: Shutterstock.

When you hear the word “pay cut,” people are usually reluctant to consider the job further. However, some people are giving up their current jobs with high paychecks for another job with 20-40% less than what they receive.

“I took a 45% pay cut at 31 from a 90-100k a year job to a 50k a year, and it was the best decision of my life. The work-life balance is much better. It’s not commission based, so the stress is so much lower. And with COVID happening, my position is now also 100% WFH,” one user stated.

7. Don’t Fall for Big Money

Photo Credit: Shutterstock.

One user shared, “A lot of people fall into the trap of $$$ is what makes the job attractive. That shouldn’t be the case. For example, I work for a very popular entertainment company and could make anywhere from 25%-30% more at a different company. Though my quality of life would take a massive hit, the extra money is not worth it. I am currently on paternity leave at full salary for 6 months. That is huge. Not only that, but I get: Weekends off (rare in the entertainment world), unlimited vacation, work from home, learning or promotional opportunities, and great company culture. Those are priceless.”

Don’t just consider the large dollar signs; look at the other benefits as well. Your high salary may not be worth it if it takes a toll on your mental health.

8. Earn While You Can

Photo Credit: Shutterstock.

While this might be a different take, some people would choose a high-paying job and hold on it to build wealth for retirement. Building wealth early means that you can take advantage of the power of compounding.

One person commented, “Nah lol. Get paid while you can, man. $30,000 today, minus 17% taxes, call it $25,000. You’re 27. Not that you’ll invest it, but let’s say you did. Expect 8% return on investments… round that down to 7.2%, where your money will double every 10 years. 40 years from now you’ll be at the retirement age. So double that $25,000 four times. 25… 50… 100… 200… $400,000. Every $30,000 you don’t make today is $400,000 you don’t have 40 years from now. Seems crazy, but that’s the math.”

9. Don’t Jump at Every Glowing Offer

Photo Credit: Shutterstock.

One person stated, “I will not tell you either way, but I will say that on the other side, a 15 to 30% raise for a stressful, high pressure, long hours job wouldn’t get me to quit my current job of 14 years that has excellent life-work balance, decent benefits, I get to WFH and I get treated well and with respect and my input to the company matters. I don’t get paid the very best, but I can afford my life, I have saving and retirement, and my stress in life isn’t from work. I actually had to battle with this question when I got offered a job that was a pretty good pay raise but the reviews on the company really sounded like they ran you in to the ground and have a very high turnover. I opted to stay with my current company for less money but for more flexibility, respect, and job security.”

10. Acknowledge Your Own Burnout

Photo Credit: Shutterstock.

Someone stated, “I burnt out at 26 and had to take a one-year hiatus where I moved back in with my parents and didn’t work at all. The lesson I learned was that if you feel you might be burning out, then take the hit and recover before you have to take an even bigger hit.”

If you think you’ve been burned out from your previous job, take a rest. Spend more time by yourself and do your thing until you recover.

11. Life is Greater than money

Photo Credit: Shutterstock.

One user shared, “Older guy here. I realized that more money doesn’t equate to my happiness when it comes to increase work demands. I could have moved up several notches at my job over the last 5 years and just chose not to. More responsibility and working longer hours will not make me happy. Life is short, man. Enjoy the ride.”

Source: Reddit.

Image Credit: Shutterstock – Denis Makarenko

Who is one actress you can never stand watching, no matter their role? After polling the internet, these were the top-voted actresses that people couldn’t stand watching.

10 Actresses People Despise Watching Regardless of Their Role

These 7 Celebrities are Genuinely Good People

Photo Credit: Shutterstock.

We’ve all heard the famous adage that “no publicity is bad publicity,” and while it tends to be accurate, there are certainly exceptions. But what about those few stars who stay out of the limelight and get along without a hint of trouble?

These 7 Celebrities are Genuinely Good People

Photo Credit: Shutterstock

Have you ever known someone and thought you liked them—until you learned about their hobbies? Then you get to know them and then you’re like, “Wow, red flag.” Well, you’re not alone.

These 10 Activities Are an Immediate Red Flag

Photo Credit: Shutterstock.

Some celebrities definitely seem to enjoy the limelight and keep working to stay in the public eye. While others quickly move out of the spotlight. Many of these actors and actresses stepped out of the spotlight to live a more private life without constant media pressures.

10 Celebrities That Made the Big Times Then Disappeared Off The Face of the Earth

Image Credit: Troma Entertainment

We’ve all been there – sitting through a movie that we can’t help but cringe at, but somehow it still manages to hold a special place in our hearts.

These 10 Terrible Movies Are Still People’s Favorites

About the Author

Source: financequickfix.com

Apache is functioning normally

July 24, 2023 by Brett Tams

Before we fire off the gun to start the ‘Compound Return Marathon’, let’s cover some basics on what compound returns are and why you should care.

What is compound interest?
You probably became familiar with the term ‘compound interest’ when you first started placing money in your bank accounts. Most of us recognize compound interest as the interest we receive from holding money in a savings account, certificate of deposit, or other low rate of return investment at the bank. Any form of compound interest is great, but this post isn’t about avoiding depreciation in cash value by earning just enough to out-pace inflation with low rate returns (which is about all no risk interest accounts are able to do). Let’s discuss a different type of compound interest.

Compound returns
When you purchase index or mutual funds, you are often asked what you would like to do with any dividend or capital gains disbursements from that particular investment’s holdings. When you select that you would like to ‘re-invest’, you are, in effect, compounding your returns. The same goes for dividend producing stocks. You are offered the choice of receiving your dividend in the form of a cash payout, or re-investing the amount into more stock.

Why should I care about compound returns?
When fully harnessing the power of compound returns, you can save less, make more, and retire early. There is sacrifice. You will need to start saving at a time when many of your peers are getting takeout food every night, leasing vehicles they can’t afford, and buying all the latest tech gadgets. If you’re in your 20’s or 30’s, this post should instill a sense of urgency in you. If you’re a little older, you have some making up to do, but it’s not too late. Additionally, maybe there’s a young adult in your life whom you can help get off to a financial running start with the aid compound returns.

The Compound Return Marathon
Let’s take a look at five different retirement strategies in the form of five hypothetical “marathon” participants (based on personas that we are all familiar with) and crunch some numbers to see who wins. Before we test the strategies, let’s take a look at the rules:

The average annualized rate of return for U.S. stocks was 13.4% from 1926 to 2000. The worst average annual rate of return for U.S. stocks in any 65 consecutive year period has been 8.5%. For this Marathon, let’s take the average between the two, and assume our participants are able to get a 10.95% return on our investments every year for each participant that invests in stocks.
Our conservative participant invests in a CD, which will earn 5%, compounded annually.
For simplicity, we’ll ignore taxes.
Everyone invests until age 67, the projected official retirement age in the future.

And now, let’s meet the participants:

Early Bird Bob: Bob didn’t follow the urge to blow his cash flow and ‘make up for it later’. He has decided to follow his own rules to utilize the power of compound returns. He invests $5,000 per year in domestic stock funds (earning 10.95% annualized) starting at age 20, and stopping at 40. Because he sacrificed early, he’s also able to stop investing 27 years before anyone else does.
Conservative Carrie: Carrie invests $5,000 per year in certificates of deposit (earning 5% annualized) starting at age 20 until age 67. Carrie sees the value in compound interest and has the right idea in saving early. She could get a reward for her consistency, but the fear of a market crash paralyzes her willingness to invest in stocks.
Live-it-up Larry: Larry invests $10,000 yearly in domestic stock funds (earning 10.95% annualized) starting at age 30. Larry discovered the power of compound returns after living it up in his 20’s, but regrets not discovering it 10 years earlier, so he is making up for it by doubling Bob’s yearly contribution amount.
Late bloomer Bill: Bill invests $20,000 yearly in domestic stock funds (earning 10.95% annualized) starting at age 40, until age 67. Bill has a high income job and is trying to make up for lost time with huge contribution amounts. He has downgraded from a Benz to a Lexus and cut back from three times a week at the golf club to two.
Mid-life crisis Melissa: Melissa invests $40,000 yearly in domestic stock funds (earning 10.95% annualized) starting at age 50, until age 67. Melissa spent most of her money throughout life to impress her friends, but since they all left her because she was too materialistic, she now has a load of time to make extra income to apply towards retirement. Is it too late for Melissa?

You can view the results of the Compound Return Marathon in a free Google Doc. Here you can see how much each participant was able to amass up through age 67. Additionally, you can see how much money they personally contributed to their retirement efforts.

Here’s how they finished:

Early Bird Bob contributed $5,000/yr. for 20 years ($100,000 total contribution). His nest egg at age 67 is $5,938,625.
Conservative Carrie contributed $5,000/yr. for 48 years ($240,000 total contribution). Her nest egg at age 67 is $940,127.
Live it up Larry contributed $10,000/yr. for 38 years ($380,000 total contribution). His nest egg at age 67 is $4,644,805.
Late bloomer Bill contributed $20,000/yr. for 28 years ($560,000 total contribution). His nest egg at age 67 is $3,168,398.
Mid-life crisis Melissa contributed $40,000/yr. for 18 years ($720,000 total contribution). Her nest egg at age 67 is $2,005,735.

Now that the race is over, let’s see what we’ve learned.

You’re better off starting late and taking risk than starting early and taking no risk. Being risk averse is dangerous in many ways. When looking at Conservative Carrie’s results, you’ll see that despite starting earlier than three other participants and investing every year, she wound up earning the least for retirement, in dramatic fashion. With that being said, starting early and welcoming a little extra risk can pay the biggest dividends.
Even if you start extremely late (Melissa), you can still drastically impact your future. Despite investing only 18 years, Melissa is still able to triple her total contributions.
Fully taking advantage of compound returns is your only opportunity to retire early. Take a look at all participants at age 50. Bob could realistically retire at age 50 and live off the interest, at least to get him up to retirement age and social security. None of the other participants stand a chance of retiring early.
Compound returns are pretty darn powerful.Early bird Bob contributed much less than anyone else, and stopped contributing at age 40 (27 years before everyone else), yet ended up with over $1.3 million more than any other participant. He contributed much less, quit early, and still wound up beating everyone else easily. In fact, he almost made 60 times his original return. Compare that to only three times for Melissa, the latest adapter.

The Bottom line: If you’re not maxing out your contributions as early as you possibly can, you’re falling behind.

J.D.’s note: As with some of the commenters, I believe the 13.4% average annualized return isn’t realistic. I used 8% for my own article on compound interest this morning. I’ll do some research to explore the notion of compound returns over various time periods, and share the results in the next couple weeks.

Source: getrichslowly.org

Apache is functioning normally

July 24, 2023 by Brett Tams

Mortgage rates are getting a little relief from the upward pressure that we’ve seen over the past few days. There’s really no telling when they will be in for another surge, though, which is why we’re recommending that borrowers act now on a purchase or refinance. Read on for more details.

Where are mortgage rates going?

Rates flat today

There’s been a lot of action this week but so far today things are relatively calm. The big news yesterday was a Bloomberg report that China is looking to cut back on its purchases of Treasurys.

Click here to get today’s latest mortgage rates (Jul. 24, 2023).

Later in the day there was some push back from China’s foreign-exchange regulator that the report wasn’t completely accurate, triggering a slight retreat but not enough to undo all of the day’s shift.

If we take a look at the yield on the 10-year Treasury note (the best market indicator of where mortgage rates are going), we can see that it’s up a little over ten basis points right now.

That puts it at 2.56%, which is up at levels not seen since March. Mortgage rates typically move in the same direction as the 10-year yield, and have been dealing with some significant upward pressure this week.

Here’s the latest data from the Freddie Mac Primary Mortgage Market Survey (PMMS):

The average rate on a 30-year fixed rate mortgage is up four basis points this week to 3.99% (0.5 points)
The average rate on a 15-year fixed rate mortgage is up six basis points this week to 3.44% (0.5 points)
The average rate on a 5/1 year adjustable rate mortgage is up one basis point to 3.46% (0.4 points)

Here is what the Freddie Mac Economic and Housing Research group had to say about rates this week:

“After dipping slightly last week, Treasury yields surged this week amidst sell-offs in the bond market. The 10-year Treasury yield, for instance, reached its highest point since March of last year. Mortgage rates followed Treasury yields and ticked up modestly across the board. The 30-year fixed-rate mortgage averaged 3.99 percent, up 4 basis points from a week ago.”

Rate/Float Recommendation

Lock now while rates are low

Mortgage rates are moving higher. It’s something that we expect to continue throughout 2018, so we believe the smart decision for borrowers is to take action sooner rather than later.

For many, this will mean locking in a rate on a purchase or refinance, but at the very least you should be figuring out what your next steps are.

It only takes a few minutes online to fill out our Mortgage Builder and get a free rate quote, or a quick phone call to one of our mortgage specialists to get started.

Click here to head to our Mortgage Builder and figure out how much you could save.

Today’s economic data:

Jobless Claims

Applications filed for U.S. unemployment benefits came in at 261,000 for the week of 1/6/18.

PPI-FD

Producer prices for December fell 0.1%, bringing the year over year reading down to 2.6%. PPI less food and energy also fell 0.1%, putting the year over year reading at 2.3%. PPI less food, energy and trade services rose 0.1% month over month, making it 2.3% year over year.

Get the GreenLight and close in 21 days*

Notable events this week:

Monday:

Tuesday:

Fedspeak
JOLTS

Wednesday:

Import and Export Prices
Fedspeak
EIA Petroleum Status
10-Yr Note Auction

Thursday:

Jobless Claims
PPI-FD

Friday:

Consumer Price Index
Retail Sales
Business Inventories

*Terms and conditions apply.

Carter Wessman

Carter Wessman is originally from the charming town of Norfolk, Massachusetts. When he isn’t busy writing about mortgage related topics, you can find him playing table tennis, or jamming on his bass guitar.

Source: totalmortgage.com

Apache is functioning normally

July 24, 2023 by Brett Tams

From rent to the security deposit to utilities to the million other costs and living expenses involved, renting an apartment is an expensive endeavor. Saving up enough to afford everything can seem like a daunting task, especially if you’re not good with savings or it’s your first apartment. But fear not. This complete guide to budgeting for an apartment will give you a framework to follow, allowing you to easily start budgeting and reach your financial goals.

How to budget for apartment expenses in 5 easy steps

While there are all sorts of ways to save, creating or following a budget system will help keep you accountable, motivated and consistent. Here’s how to create a budget and start setting aside money for your apartment. These easy-to-follow steps will help everyone, whether you have to budget for your first apartment and you’re doing this process for the first time or you’re a seasoned renter.

1. Figure out your monthly income

The first step is to determine where you stand financially. While annual income is important, it’s your monthly income that matters the most. This is what dictates how much you can afford to pay in rent and for other necessities.

Looking at your pay stubs or paychecks, you’ll be able to determine your take-home pay. Your take-home pay is different than your gross income because your employer has already deducted things like income tax, payroll tax and social security.

If you’re only paid once a month, you can easily identify how much you make each month. If you get your paycheck every other week, you’ll need to add up your monthly paychecks.

This process is usually easiest for salaried employees, as they get paid a set amount for each pay period. Hourly employees may need to create a rough average of how much they make each month.

2. Determine your monthly expenses

Then, calculate your monthly costs. These are living expenses you’ll pay on a monthly basis like rent, utilities, renter’s insurance, health insurance, food and more.

It’s OK if you don’t have exact figures for all these expenses. If you’re still apartment hunting, you can sub in the average rent for the city or area. You can also estimate things like food. Err on the side of caution and make your expenses higher than you expect.

3. Subtract your expenses from your income to determine what’s left

After determining how much you make and then spend each month, deduct your monthly expenses from your income.

If your projected expenses are higher than your income, you’ll need to go back and see where you can cut costs. Likely, it means you’ll need to spend less on rent.

4. Calculate what you can afford to pay in rent

You should only spend 30 percent of your income each month on rent. Most landlords also require that your income be three times more than the rent. Using your income and expenses, you can calculate how much you should spend on rent using our rent calculator.

5. Choose a budgeting system that works for you

As you start this budgeting process, you’ll find that there are tons of different budgeting methods and systems out there. If this is your first time having to budget for an apartment, you may need to try several different systems before finding the one that works for you.

Nowadays, many people enjoy using budgeting apps to track their savings. These are great options because most are affordable and easy to use, and there are tons of different apps to try. Apart from apps, other popular budget methods include the envelope method and the pay-yourself-first method. But lots of people swear by the 50/30/20 budget method.

The 50/30/20 budget rule

If you’re looking for a monthly budget system that helps you consistently build savings while still covering all your needs with a little extra money left over for fun, the 50/30/20 method is a great apartment budget option.

It essentially works like this. You divide your monthly income into three sections. Fifty percent goes to needs or necessities. These can include paying monthly rent on your current apartment, renter’s insurance, paying the electric bill and other utilities and other essential needs. If you’re saving toward your first apartment budget and still live at home, the costs for your monthly needs probably aren’t too high.

Once you’ve paid for your needs, you still have 50 percent left over. Thirty percent should go toward wants. These are things you want but don’t necessarily need, like streaming services or dining out.

The remaining 20 percent gets automatically put away as savings. This budget ensures you pay for all the things you need and want while still consistently saving toward a goal. If you don’t have a ton of needs or wants, you can put more toward savings. The 50/30/20 rule serves as a framework and you can customize the savings and wants categories how you like. But always make sure that you cover your “needs,” like paying rent.

4 things to budget for when renting an apartment

Your apartment budget should cover the following:

Rent

When moving into an apartment, obviously you’ll need to pay the first month’s rent at move-in time. Some landlords also require that you pay for the last month’s rent upfront, as well.

Security deposit

Your budget needs to include the security deposit, which is usually the same amount as one month’s rent. In total, you need three months’ worth of rent saved before moving in.

Some landlords charge a pet deposit for pets, as well.

Utilities

It’s a good idea to budget for the first months’ worth of utility bills, as well. That includes electricity, water, natural gas, internet, sewer and garbage.

You can save money by finding an apartment complex that includes utilities. Apartment complexes that cover even some utilities like electricity or water are useful money-saving tools. Otherwise, you’ll be paying directly to the utility companies for everything and it adds up.

Miscellaneous fees and costs

On top of all that, you’ll also need to budget for the myriad other expenses that come with renting an apartment. That includes everything from application fees to cleaning supplies to actually furnishing the place. If you’re moving out and this is your first apartment budget, this handy checklist covers many of the things you’ll need.

You’ll also need to budget for moving costs like a moving truck or packing supplies. Sometimes, you can keep moving costs low if you don’t have a ton of stuff or aren’t moving far. But, if you have heavy furniture or are moving to a new city, you may have to pay for professional movers.

Renting an apartment also comes with the occasional additional fee or unexpected expense. It’s recommended to save more than you initially budgeted for to avoid nasty surprises.

What is a good budget for an apartment?

Along with the 50/30/20 rule, the 30 percent rule is a good rule of thumb for when you’ve moved into your apartment. As some monthly expenses like the cost of food can vary, the monthly rent will be one constant. You can use it as a set amount around which to anchor a budget.

Essentially, the 30 percent rule is that you should only spend 30 percent of your income each month on rent. This ensures you have 70 percent of your monthly take-home available for spending on other expenses like food.

How much money should you have saved when moving into an apartment?

There’s no straight answer about exactly how much money you need to save for your new apartment. The amount varies depending on factors like location and the cost of the rent. That’s why you’ll need to use the above steps to personalize the budget to your needs. If you’d like a rough estimate, check out this article about how big you should get your apartment savings.

If you’re saving for your first apartment, it’s always better to overbudget and save even more. On top of rent and other apartment living costs, you’ll need to actually furnish and outfit your apartment for living.

7 ways to save money for your apartment

Here are some other ways you can boost your budget.

1. Downsize

Smaller apartments like studio or one-bedroom apartments are generally more affordable and less expensive than bigger apartments. Plus, it’s always a good idea to live slightly below your means so you can constantly save money and not live paycheck-to-paycheck.

2. Have roommates

If you’re saving toward a two-bedroom apartment but it’s stretching your budget too much, add a roommate to the mix! Living with roommates cuts expenses down and opens the door to creating wonderful memories.

3. Don’t live near the city center

Beware the siren call of the city center. The cost of rent will nearly always be higher closer to the city center, especially in big cities. The promise of living just steps from big city amenities like dining and shopping is strong, but it’s better to live further away in a more affordable housing situation. On the plus side, you’ll have more money to enjoy those urban perks!

4. Set up a separate savings account

If you have the issue of constantly dipping into your savings account, set up a separate bank account. That way, the temptation to touch it is gone.

5. Reduce wasteful spending

While saving, cut back on unnecessary spending so you have extra cash to put toward your budget. Dine out less, cancel subscriptions you don’t need or use and the like. Have cable but don’t use it? Call the cable company and cancel. How about that gym membership you don’t actually use? It’s gone.

You can always take up those habits or wants-based spending again when you reach your goal.

6. Find bargains and deals to spend less

While saving toward an apartment, there are some things you still need to spend money on, like food. You still have to eat and food costs money. You still have to commute to work or get around for errands. But there are ways you can spend less on these activities and items.

For groceries, you can shop at bargain supermarkets, use coupons or buy cheaper, generic brands. Instead of driving everywhere and paying expensive gas prices, take public transportation.

You can also go thrifting or hit up garage sales for bargains and deals on big-ticket items. Need a new coffee table? Skip IKEA and hit up the local Goodwill. How about a couch? Check area neighborhoods for who’s having a garage sale.

7. Keep saving

Even after you’ve reached your goal and moved in, keep adding money to your savings. When the time comes for you to move again or upgrade apartments, you’ll already have a head start. You’re also prepared in the event you need a cushion in case of rent increases.

Whether it’s your first apartment or 10th, budgeting is easy with these tips and steps

It doesn’t matter if you’re a first-time renter or have been renting apartments for years. Creating and sticking to a budget is an important part of the rental process. Not only does it help you get a new place to live, but it teaches good financial practices you can use in other areas of your life. Above all, make a savings plan and stick to it.

Source: rent.com

Is it still possible to retire early with the financial impact of COVID-19?

How to make sure you can still retire early

Evaluate your investment strategy

Beef up your emergency fund

Look for expenses to cut

Consider other income opportunities

Adjust your retirement timeline

Consider flexible retirement plans

Prepare for future economic downturns

Summary

Read more:

Why do you need to save money before renting an apartment?

First month’s rent and last month’s rent

Security deposit

Application fees

Utilities

Appliances, furniture and apartment furnishings

Insurance and additional fees

Moving costs

Miscellaneous costs

How much do you need to save for your first apartment?

How long does it take to save up money for an apartment?

How to start saving money for an apartment

Know what you can afford to pay in rent

Set up a savings plan

Set up a separate bank account

Cut back on expenses

Shop smart

In this expensive rental market, you’ll have to save thousands of dollars for an apartment

The information contained in this article is for educational purposes only and does not, and is not intended to, constitute legal or financial advice. Readers are encouraged to seek professional legal or financial advice as they may deem it necessary.

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Carter Wessman

A Mom’s Guide to Saving Money the Smart Way

1. Start Budgeting

2. Use Money Saving Apps

3. Try Out Capital One Shopping

4. Create a Meal Plan

5. Conduct a Personal Finance Audit

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About the Author

Saad Muzaffar

1. Consider the Cost of Living

2. Stress-Free Salary

3. Prioritize Your Health

4. Minimize Your Stress

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