gap

Apache is functioning normally

With the never-ending changes and challenges affecting the U.S. financial landscape, multiple community development entities are helping to counter some of their adverse effects by fostering community development initiatives.

Some examples include Community Development Financial Institutions (CDFIs) and Community Development (CD) Banks. These play a significant role in promoting economic growth and inclusion for underserved communities.

This article thoroughly explores CDFIs and the institutions that support CDFIs, outlining their significance, objectives, and how they meet capacity building initiative requirements. We also highlight the federal government’s involvement, explaining its role evolution and the numerous related economic development activities available to those who need them.

What is a Community Development Financial Institution (CDFI)?

Community Development Financial Institutions (CDFIs) are a type of financial institution that provides products and services to financially disadvantaged communities for economic development purposes.

They are essential and critical in promoting inclusion and economic growth to marginalized communities in urban and rural communities countrywide. Legislations like the Community Reinvestment Act help encourage these programs. However, the Community Reinvestment Act is not the only reason for their existence.

CDFI Certification

To become a CDFI, a financial institution must apply for a CDFI certification. This certification ensures that the institution can receive the right federal assistance resources and allows people to benefit from the CDFI fund’s programs.

How did the concept of CDFIs start?

The roots of Community Development Financial Institutions (CDFIs) extend to the 1880s, when minority-owned banks began serving economically disadvantaged communities. These organizations provided essential financial services to areas that mainstream financial institutions neglected or could not reach.

As the years progressed, new types of mission-driven financial institutions emerged. For example, the development of credit unions in the 1930s and 1940s offered alternatives to the traditional community bank that had limited services.

Moreover, new community development corporations emerged in the 1960s and 1970s, providing additional resources and support for underserved areas. These institutions gradually paved the way for the rise of nonprofit loan funds in the 1980s, establishing the groundwork for today’s modern CDFI model.

The Riegle Community Development and Regulatory Improvement Act of 1994 recognized the need to support the growing community development finance sector. With that in mind, it established the Community Development Financial Institutions Fund (CDFI Fund). This fund aimed to promote economic revitalization and community development in low-income areas by investing in and providing assistance to CDFIs.

Since its inception, the CDFI Fund played a substantial role in the growth and impact of CDFIs, enabling them to serve the financial needs of economically disadvantaged communities and contribute to their overall development and prosperity.

Types of CDFIs

Currently, multiple types of Community Development Financial Institutions (CDFIs) exist, each catering to the unique needs and challenges economically disadvantaged communities face. We explore their types and roles below.

Community Development Banks

Community Development Banks are for-profit, federal government supported and regulated financial institutions. These institutions have a board of directors that includes community representatives. CD banks provide affordable banking services, loans, and other financial products to economically distressed and underserved communities.

Operating in these communities creates jobs, improves infrastructure, and promotes economic growth. They also help increase access to capital for small businesses, including affordable housing projects and community service facilities.

Community Development Credit Unions

Community Development Credit Unions (CDCUs) are nonprofit financial cooperatives owned and controlled by their members. As is the case with traditional credit unions, they provide financial services such as savings accounts, checking accounts, and loans.

CDCUs only cater to low-income and underserved communities, offering affordable rates and financial education programs to promote inclusion and help people build credit and assets. The National Credit Union Administration (NCUA), an independent federal agency, regulates these credit unions.

Community Development Loan Funds

Community Development Loan Funds, or CDLFs, are nonprofit entities that finance community development projects by offering loans and technical assistance to marginalized communities. They facilitate access to affordable housing, promote small businesses, and help establish community service facilities to sustain growth. They also serve as an alternative source of capital for those who cannot access traditional bank financing services by offering flexible terms and underwriting criteria.

Community Development Venture Capital Funds

Community Development Venture Capital Funds offer equity and debt-with-equity investments to small and medium-sized businesses in economically distressed areas. They can be for-profit corporations or nonprofit entities.

By offering long-term capital, they help businesses grow, create jobs, and foster innovation. They also provide technical assistance, mentoring, and business development support to maintain the long-term success of their portfolio companies.

Microenterprise Development Loan Funds

Microenterprise Development Loan Funds are loan funds that provide small-scale loans, or microloans, to entrepreneurs and small businesses that might not qualify for traditional financing. They offer small capital amounts that range from hundreds to a few thousand. These loan funds help low-income people, women, and minority entrepreneurs who need smaller loan amounts and more flexible terms.

Community Development Financial Institution (CDFI) Consortia

CDFI Consortia are collaborative networks of CDFIs that pool resources, experience, and capital to increase their impact on community development services. They can access larger funding opportunities and share best practices to serve their target communities by working together. They can also provide joint technical assistance and support services, helping to strengthen individual CDFIs that are part of the network.

Understanding Community Development Financial Institutions

The main goal of CDFI fund programs is to provide affordable loans, community development banking services, financial help, and technical assistance to low-income communities. They foster economic development and empower small business owners, minorities, and marginalized communities by offering access to investment capital and other resources with fewer demands than traditional finance institutions.

CDFIs differ from traditional financial institutions because they focus on community development and serving minority communities. They also collaborate with religious institutions, community service organizations, and rely on federal funding and agencies to address the needs of their target populations.

What’s the federal government’s role in CDFIs?

The Federal Reserve Bank supports CDFIs through various initiatives, tax credits, and programs. One such program is the CDFI Fund, which the U.S. Department of the Treasury administers. The CDFI Fund provides financial, technical, and other resources to CDFIs, casting a wider net to help low income people and communities access their services.

In addition to the CDFI Fund, the Federal Reserve Bank supports CDFIs through programs and training initiatives such as:

  • Bank Enterprise Award Program
  • Capital Magnet Fund
  • CDFI Bond Guarantee Program
  • CDFI Equitable Recovery Program
  • CDFI Program
  • Rapid Response Program
  • Native Initiatives
  • New Markets Tax Credit Program
  • Small Dollar Loan Program

These initiatives by the Federal Reserve Bank provide financial incentives and resources for CDFIs and community development entities to invest in eligible community projects, promote economic growth, and create jobs.

How has that federal role changed over time?

The federal government’s role in supporting the CDFI industry changes over time to respond to the changing needs of disadvantaged communities and the growing recognition of the importance of financial inclusion.

Early efforts, for example, provided seed capital and technical assistance to establish and grow CDFIs. With the maturation and evolution of the industry, the government started focusing on building capacity, collaboration, and supporting innovative endeavors.

Recent changes emphasize leveraging private sector investments, regulatory relief, and encouraging partnerships between the CDFI industry and other financial institutions. Examples include minority depository institutions (MDIs) and mainstream banks.

CDFIs’ Role in Financial Inclusion

Financial inclusion is an essential part of CDFI initiatives. Access to affordable financial products and services helps bridge the gap between poor communities and mainstream financial institutions. CDFIs also promote financial knowledge, support small businesses, finance affordable housing activities, and facilitate economic development initiatives.

CDFIs also ensure that economically distressed communities can access essential community services facilities like healthcare centers, schools, and childcare. Their work helps contribute to these communities’ overall well-being and stability. It creates a solid foundation for long-term economic growth.

Business Model

CDFI business models are unique in combining traditional financial services with a strong emphasis on developing and positively impacting the communities they cater to.

They generate revenue by collecting interest and fees on loans, investments, and other financial products. However, they also rely on grants, donations, and especially government funding like the CDFI fund to support their operations.

CDFIs collaborate with organizations like government agencies, nonprofits, and private sector partners to attain their goals. Additionally, they leverage tax credits, guarantees, and other financial tools to attract more investment capital and support their lending activities.

CDFIs Provide Opportunity for All

CDFIs provide real opportunities by addressing the financial needs of underserved communities to help them succeed and promote their economic growth. To do this, they offer access to affordable financial products and services to communities that experienced systematic lockouts from these programs.

By emphasizing their needs and giving them more accessible and affordable ways to prosper, low-income individuals and businesses have access to essential financial tools. These tools were traditionally out of reach for mainstream financial institutions.

Moreover, CDFIs support small businesses owned by women, minorities, and individuals in economically distressed communities. By offering tailored financing solutions, technical assistance, and business planning resources, CDFIs help these entrepreneurs overcome barriers to entry, create jobs, and contribute to local economies.

Another significant aspect of CDFIs’ work is their focus on affordable housing and community development projects. They finance the construction and rehabilitation of affordable housing units and invest in community facilities like schools, healthcare facilities, and childcare. These are essential to the well-being and stability of low-income communities and help them worry less about factors beyond their control or that are too expensive to access otherwise.

CDFIs also promote financial education and empowerment by providing resources and training to help people develop financial literacy skills, manage their finances, and build assets. These initiatives contribute to breaking the cycle of poverty and promoting economic self-sufficiency.

By partnering with various stakeholders, such as government agencies, nonprofit organizations, and private sector partners, CDFIs leverage resources and expertise to maximize their impact. This creates a ripple effect that extends beyond the immediate recipients, fostering inclusive and resilient communities.

Types of CDFIs

Many community development financial institutions focus on addressing the needs of economically disadvantaged communities. These include community development banks, credit unions, loan funds, and venture capital funds.

Federal agencies like the Federal Deposit Insurance Corporation (FDIC) and the National Credit Union Administration (NCUA) regulate community development banks and credit unions. They offer various banking services, from deposit accounts to loans, catering to low-income communities.

Loan funds make affordable housing possible, support small businesses, and help community facilities. On the other hand, venture capital funds offer equity investments that support small businesses and startups in underserved communities.

“Newer” CDFI Resources

As community development financial institutions evolve, multiple resources and programs are emerging to support their growth and impact. Examples include:

CDFIs as Capital Plus Institutions

Sometimes, community development financial institutions are called “Capital Plus” institutions. This is because they provide investment capital, development services, technical assistance, and financial education to support the long-term success of their clients.

This approach allows community development financial institutions to significantly impact low-income and economically distressed communities, promoting economic opportunity and inclusion.

Emergency Capital Investment Program (ECIP)

The Emergency Capital Investment Program (ECIP) is a federal initiative that provides capital to CDFIs and MDIs to support their lending activities after the economic challenges caused by COVID-19. This program helps ensure that these institutions have the resources to continue providing essential financial services to underserved communities, small businesses, and minority-owned businesses during times of crisis.

Paycheck Protection Program Liquidity Facility (PPPLF)

The Paycheck Protection Program Liquidity Facility (PPPLF) is another federal initiative that supports the lending activities of CDFIs and other financial institutions participating in the Small Business Administration (SBA) Paycheck Protection Program (PPP). By providing liquidity to these institutions, the PPPLF enables them to continue offering loans to small businesses needing financial assistance during challenging economic times.

CDFI Rapid Response Program

The Rapid Response Program from the CDFI Fund provides immediate financial assistance during crises or natural disasters. CDFIs can quickly access funds for disaster recovery, emergency relief efforts, and other needs, serving as “financial first responders” for the communities they support.

These newer resources and programs demonstrate how the federal government, private sector, and other stakeholders support the work of CDFIs and promote financial inclusion and economic opportunity. By leveraging these resources, CDFIs can better address the needs of low-income communities nationwide and foster economic development in urban and rural communities.

Source: crediful.com

Apache is functioning normally

Gap years are a hotly debated topic.

Some love the idea of taking a year off from your life’s traditional trajectory to explore the unknown. But others prefer to stick to their determined path. 

No matter where you stand in life, a gap year could be the right choice for you. However, it is not the right choice for everyone. 

What’s Ahead:

What is a gap year?

According to the Gap Year Association, a gap year is:

“a semester or year or experiential learning, typically taken after high school and prior to career or post-secondary education, in order to deepen one’s practical, professional, and personal awareness.”

That’s a lot to take in!

Ultimately, a gap year is a period in which you choose to step away from the current trajectory of your life. Traditionally, people choose to take gap years before or after college. But technically, you can take a gap year at any point throughout your career. 

Why you should take a gap year

You’ll find plenty of reasons why you should take a gap year. Some of the most prominent reasons include:

Self-exploration

As you move through life, it is normal to run into some confusion along the way. After all, there are so many directions you can take in life. It can be hard to know which way to turn. The right gap year could help the perfect way to sort through your feelings and determine what you want your life to look like. 

Thomas Jespen, CEO of Passion Plans, says:

“I felt confused after high school. I had in fact gotten into the college I had wanted to go for but remember I woke up one day thinking I was making a mistake. My gap year was the best self-exploration journey I have ever undertaken.”

Avoid burnout

Constantly staying engaged in our school or work can be draining. Unfortunately, many students say they are burnt out in school. In fact, a study conducted by the Ohio State University’s Office of Chief Wellness Officer found that 71% of students reported burnout in April 2021. Kassandra Marsh, owner of Lakazdi, says:

“Going straight from high school into university seemed like no big deal at the time, but after a semester at university, it was clear that I needed a break after so many years of continuous education.”

When she returned from the gap year, Marsh had more enthusiasm to tackle the degree. 

Gain work experience

Work experience can help you decide what you like, and perhaps more importantly, what you don’t like. In a gap year, you can choose to work in any field to see what is out there. 

June Escalada, co-founder of PhotoshopBuzz, took a gap year between high school and college. The overarching goal was to study for a big exam. But Escalada says, “I also took some time to work part-time and travel.” The experience helped her learn how to be part of a team and deal with coworkers.

Save for school

College can be incredibly expensive. Depending on the path you take, you might not be comfortable taking out too many student loans. With that, a gap year could serve as the perfect opportunity to work and save for your degree. 

Need some help saving for college? Here are our top tips for teenagers. 

Explore while you have the chance

A gap year is an incredible opportunity to see the world or explore whatever your heart desires. 

Jeremy Yamaguchi, CEO of Lawn Love, didn’t have the opportunity to take a gap year. But looking back, he sometimes wishes he had.

“At this stage in my life and with all of the responsibilities that I have, taking a gap year really isn’t possible anymore, so I do sometimes wish that I had done it while I had the chance.”

Should you take a gap year?

As with every big decision in life, there are some major advantages and disadvantages to taking a gap year. You can weigh the benefits in your own life. Ultimately, it may come down to a gut decision that only you can make with your heart. 

At the end of the day, you need to take a few things into account before you make a decision:

  1. Can you afford to take a gap year? This entirely depends on what you want to do with your gap year. If you’re looking to travel the world, consider if your finances can handle that.
  2. Does taking a gap year align with your future goals? If school is going well, then you might not want to break up your momentum. This is especially true if you are already set on a particular career path that you don’t have any doubts about.

How to make the most of your gap year

If you decide to take a gap year, here’s how to get the most out of it. 

Determine what you want to gain from your gap year

A gap year will be a highly personal experience. With that, you should have a general idea of what you want to gain from your gap year before jumping in. 

Here are a few ideas to consider:

  • Satisfy your wanderlust by traveling around the globe.
  • Save for college with a job.
  • Volunteer your community to see what types of work you enjoy. 
  • Learn a new skill. 
  • Explore another part of yourself. 

The reasons why you take a gap year will vary. But without a broad purpose in mind, it can be tempting to settle into an easy routine around the house. After all, it is all too easy to dive into a Netflix series or escape reality in your favorite virtual world instead of getting the most out of this unique year. 

Sketch out a plan

Depending on your personality, you may want a plan that covers all the details. But even a plan that covers just the broad strokes can be very helpful. 

For example, you may set up your first volunteering gig. But decide to see where that takes you. Or you might map out a tour of the places you want to visit. 

As you embark on this adventure, it might be a good idea to enter the experience with an open mind and a willingness to make changes along the way. 

Consider your finances

Personal finances will play some role in your gap year. If you have funds available, that might open the door to travel. If you are light on funds, you might decide to pursue opportunities closer to home. 

You can get creative with your finances to make a gap year successful. If you need funds, consider picking up a flexible side hustle or learning an in-demand skill that can travel with you. 

Summary

A gap year could be the right move for your future. But only you can decide if it is a good choice for your life. 

Don’t forget to consider the finances required to fund this adventure. You may want to build savings before jumping in. 

Read more:

Source: moneyunder30.com

Apache is functioning normally

Arts, athletics and so much more are all at your fingertips in Ohio’s best college towns.

Ohio has become a magnet for young minds seeking a top-notch higher education experience. With a plethora of colleges and universities peppered throughout the state, it’s no wonder that Ohio has nurtured some of the most vibrant and diverse college towns in the country.

Nestled in the rolling hills of southeastern Ohio, Athens is home to Ohio University, one of the oldest public institutions of higher learning in the United States. The city’s picturesque setting is matched by its vibrant culture, with an eclectic array of shops, restaurants and bars lining the historic brick Court Street area, the town’s main artery.

Athens is also renowned for its music scene, which has spawned a number of notable acts like New Bomb Turks and Skeletonwitch. With its verdant parks, thriving arts community and the annual Halloween Block Party, Athens is a true gem among college towns in Ohio.

Dayton is a hub of innovation and creativity and home to the University of Dayton and Wright State University. This bustling city offers a thriving academic environment for students, while also boasting a rich aviation history as the birthplace of the Wright brothers. The National Museum of the United States Air Force and Carillon Historical Park are just a few of the attractions that add to the city’s unique charm.

A dynamic arts scene, bustling Oregon neighborhood and an array of restaurants and breweries make Dayton an enticing destination for students and visitors alike. Pro tip: be sure to hit Dewey’s Pizza just a few blocks off the UD campus.

Dayton is also located near Yellow Springs, which is home to legendary comedian Dave Chappelle. This small village is quickly emerging as one of the premier places for artists of all disciplines in the Midwest to call home.

Located in the southwest corner of Ohio, Oxford is a quintessential college town and home to Miami University. With its stunning Georgian architecture and tree-lined streets, the campus is often referred to as one of the most beautiful in the country.

Uptown Oxford, the historic heart of the city, offers a delightful mix of shops, eateries and galleries, which cater to the diverse tastes of students and locals. Outdoor enthusiasts will appreciate the abundance of parks and hiking trails in and around Oxford, while fans of college sports can cheer on the Miami RedHawks at various games throughout the year.

Columbus is a city brimming with energy and excitement, making it an ideal location for college students. As the home of The Ohio State University, one of the largest and most respected public institutions in the country, Columbus offers an unparalleled blend of academic rigor and vibrant city life.

Students and visitors can explore the trendy Short North Arts District, catch a concert at the Nationwide Arena, or peruse the shops and cafes of the historic German Village. The annual Ohio State Fair and the beloved Buckeyes football team only add to the city’s allure.

Nestled along the banks of the Ohio River, Cincinnati is a city steeped in history and culture, making it an exciting destination for college students. Home to the University of Cincinnati and Xavier University, the city offers a wealth of academic and social opportunities for students of all interests and persuasions.

The Over-the-Rhine neighborhood, known for its stunning 19th-century architecture, has transformed into an arts hub, dining destination and entertainment anchor, while the banks of the river have picturesque parks and riverboat cruises. Sports fans can catch a Reds baseball game at the Great American Ball Park, or cheer on the Bengals at Paycor Stadium.

Gambier, a small village in central Ohio, is the idyllic home to Kenyon College, one of the nation’s most prestigious liberal arts institutions. With its beautiful, Gothic-inspired campus and close-knit community, Gambier is a serene and intellectually stimulating environment for students.

The village’s quaint downtown area, featuring the iconic Middle Path, is lined with charming boutiques, cafes and an iconic independent bookstore, providing a perfect setting for leisurely strolls and study breaks. The nearby Kokosing Gap Trail, a 14-mile recreational path, offers opportunities for biking, walking and enjoying the picturesque Ohio countryside, making Gambier a true haven for those seeking a peaceful college town experience.

Located in central Ohio, Granville is the picturesque home of Denison University, a top-rated liberal arts college. This charming New England-style village offers a warm and welcoming atmosphere for students of all walks of life, with its tree-lined streets and historic architecture.

The downtown area, centered around the village green, boasts a variety of shops, restaurants and galleries, perfect for students looking to unwind after a long day in the classroom. Nearby, the Dawes Arboretum and the Bryn Du Mansion provide beautiful outdoor settings for relaxation and exploration. With its strong sense of community and commitment to the arts, Granville stands out among the best college towns in Ohio as a place where both students and visitors can feel at home from the moment they set foot in the city.

Cleveland is an exciting destination for students attending Case Western Reserve University and Cleveland State University. Known for its rich industrial history and vibrant arts scene, Cleveland offers a wealth of cultural and recreational opportunities for students with a wide range of interests.

The city’s renowned Rock and Roll Hall of Fame and the West Side Market are just a few of the attractions that make Cleveland an enticing destination for college students. In addition, the city’s booming craft beer scene (be sure to check out Noble Beast Brewing Co.), dynamic neighborhoods, like Tremont and Ohio City, and professional sports teams ensure that there is always something happening in this lively Midwestern metropolis.

Located in the northwest part of the state, Bowling Green is home to Bowling Green State University. This vibrant college town offers a wealth of activities for students and visitors, including a thriving downtown area with shops, restaurants and ample entertainment options.

The city’s annual Black Swamp Arts Festival celebrates the local arts community by sowcasing a variety of visual, musical and culinary talents. In addition, the nearby Slippery Elm Trail and the Bowling Green Wind Farm provide unique outdoor experiences for outdoorsy types.

Known as the ‘Rubber Capital of the World,’ Akron is home to the University of Akron. This lively college town offers a wide range of cultural and recreational activities for students, from exploring the historic Stan Hywet Hall & Gardens to enjoying the bustling downtown area with its array of dining and entertainment options. The Akron Civic Theatre and the annual Akron Marathon are just a few of the attractions that contribute to the city’s vibrant atmosphere and keep college students around after receiving the cap and gown.

Up your quality of life in one of these Ohio college towns

The college towns in Ohio featured above offer a unique blend of academic excellence, rich culture and engaging social scenes. From bustling cities like Cleveland and Cincinnati to the serene and historic charm of Gambier and Granville, Ohio’s top college towns cater to a wide range of interests and lifestyles.

Whether you are a prospective student, a visitor passing through or simply looking to explore the rich tapestry of experiences these towns have to offer, there is no doubt that you will find something special somewhere in the Buckeye State.

Source: rent.com

Apache is functioning normally

It’s nearly 2023, which means it’s time for a fresh batch of mortgage and real estate predictions for the new year.

My assumption is everyone wants 2022 to come to an end as quickly as possible, as it hasn’t been kind to anyone.

Much higher mortgage rates have completely derailed the housing market, leading to lots of layoffs and closures across the industry.

And there remains a lot of uncertainty about what next year will bring, though I’m somewhat optimistic.

Read on to see what I think 2023 has in store for the housing market and the mortgage industry.

1. Mortgage rates will move lower in 2023

Let’s start with the elephant in the room; mortgage rates.

They’ve been the story of 2022, without question. Sadly, because they increased at an unprecedented clip and derailed the hot housing market’s decade-long bull run.

Of course, this was by design as the Fed believed the U.S. housing market was in bubble territory and unsustainable.

However, I believe interest rates overshot the mark and are due to see some relief in 2023.

The 30-year fixed has already fallen from its 2022-highs, and could continue to drop back in the 5% range and even the high-4% range.

So that’s something to look forward to. See my 2023 mortgage rate predictions for more details on that.

2. The housing market won’t crash in 2023

Related to lower mortgage rates is the health of the housing market. Ultimately, the housing market only really stalled because of much higher mortgage rates.

It’s not struggling due to questionable mortgage underwriting, dubious loan programs, or massive unemployment.

Ultimately, the Fed saw that demand for housing was too strong and took measures to address it.

If you remove the mortgage rate piece from the equation, we don’t have a big drop in home prices.

So if mortgage rates continue to improve, or even stay flat, home prices don’t plummet and there isn’t a housing crash in 2023.

At the same time, areas of the country that saw massive home price increases may be more susceptible to price declines.

The good news is home prices increased so much in the past couple years that even a 20% decline is just a paper loss for most homeowners.

In other words, your home is still worth way more than you bought it for, but perhaps not as much as it once was.

3. But we’ll see more consolidation in the mortgage market

Sadly, there have been tons of mortgage layoffs and lender closures in 2022, pretty much all thanks to the sharp rise in mortgage rates.

It was the perfect storm of record low mortgage rates meeting the highest mortgage rates in decades, all within half a year.

Simply put, lenders hired and hired to deal with unprecedented refinance demand, but once that ran dry, had to let a lot of staff go to cut costs.

Demand is down so much that many lenders have had to close down permanently, especially those focused solely on mortgage refinances versus purchases.

While more companies exit the mortgage space, we’ll see consolidation at the top as the big players get bigger and gobble up market share.

This means fewer lenders to choose from and a more commoditized product.

4. Home prices will be mostly flat in 2023

While there’s been a lot of doom and gloom lately, there have been bright spots, like a positive CPI report and an easing in inflation.

Perhaps home price declines will also slow as we enter the new year. If the damage already done is enough to re-balance the housing market, we could see falling home prices steady.

After all, we’ve already experienced a big drop in prices from spring until now, so the ice-cold housing market could warm if rates drop and prospective buyers renew their interest.

While I’m not convinced of the NAR (Realtor) prediction of a 5.4% increase in home prices next year, I do believe flat or nearly positive prices is a possibility.

Zillow’s prediction of home values posting 0.8% growth by the end of October 2023 sounds right. The MBA also puts YOY home prices up 0.7%.

Of course, price movements will be local, as they always are, with some markets faring better (or worse) than others.

Get to know your local market to determine the temperature if you’re in the market to buy or sell.

5. The spring home buying market will actually be decent

Despite a lot of recent headwinds, the 2023 spring home buying season will be alright.

No, it’s not going to be riddled with bidding wars and offers above asking. Nor will total home sales be as high as they were in 2022, and certainly not 2021.

But I do think a combination of lower asking prices and improved interest rates will bolster the market.

Remember, there are a ton of prospective, coming-of-age home buyers out there who want and need a house.

If mortgage rates were 7% in 2022, and fall to the high-5% range, that, coupled with a 20% haircut on price could re-energize the stalled housing market.

So much so that home prices could steady in 2023 after seeing some pretty big markdowns in the second half of 2022.

6. Buy downs and ARMs will become more common

As mortgage rates remain elevated, mortgage buydowns and adjustable-rate mortgages will gain in popularity.

The ARM share is already around 9%, but there’s a lot of room for it to grow if lenders continue to offer products like the 5/1 ARM or 7/1 ARM.

That’s the rub though – if lenders don’t offer ARMs, or don’t extend a significant discount on the ARM, most borrowers will be forced to go with more expensive fixed-rate mortgages.

To offset some of the pain related to higher-rate 30-year fixed mortgages, buydowns will become more and more commonplace.

A lot of home builders are already offering buydowns, and even big lenders like Rocket Mortgage have their so-called Inflation Buster.

These buydowns provide payment relief for the first year or two before reverting to the higher note rate.

The question remains whether that’ll be enough time to bridge the gap to lower interest rates.

7. The underwater share of mortgage holders will rise

Because home prices have been under intense pressure lately, there will inevitably be more underwater homeowners soon.

Black Knight recently noted that 8% of those who purchased a home in 2022 “are now at least marginally underwater.”

And nearly 40% of these home buyers have less than 10% equity in their home, which if property values fall a bit more would plunge these folks into negative equity positions.

It’s most pronounced with FHA and VA borrowers, with more than 20% of 2022 of home buyers in negative equity positions, and nearly two-thirds having less than 10% equity.

This illustrates one of the problems with ARMs, buydowns, and other ostensibly temporary financing solutions. They work until they don’t.

If these homeowners are underwater, it’ll be difficult to refinance aside from leaning on streamline refinance programs that allow high loan-to-value (LTV) ratios.

8. Foreclosures and other distressed sales will continue to be rare

Those looking to snap up a bargain will need to be patient. Despite decelerating appreciation and markdowns on existing inventory, prices remain historically high.

At the same time, mortgage defaults and foreclosure starts remain very low, despite recent increases.

Per Black Knight, the national delinquency rate rose to 2.91% in October, well below the 4.54% average seen between 2000-2005.

And the 19,600 foreclosure starts in October were a full 55% below “pre-pandemic norms.”

It’s not to say homes won’t be lost, especially if home prices plummet and unemployment worsens, but it’s not 2008 all over again.

In short, today’s homeowner has a lot more equity to work with and there are better loss mitigation options that were born out of the prior mortgage crisis.

They may also have the option to rent out their property and cash flow positive.

9. Home equity lending and the home improvement trend will stay hot

One bright spot in the mortgage financing space might be home equity lending, including home equity loans and lines of credit (HELOCs).

This plays into the trend of keeping the property instead of selling it, since selling isn’t nearly as sweet as it once was.

There’s also the issue of where to go next if you sell. And because first mortgage rates are so high relative to levels a year ago, most will opt to finance improvements with a second mortgage.

While not a 2-3% interest rate, home equity rates will still be better than most other options, and allow homeowners to freshen things up while enjoying their ultra-low first mortgage rate.

This should be a boon to banks, mortgage companies, and fintechs that are able to sell a compelling product.

It may also benefit the likes of Home Depot and Lowe’s as more folks stick with what they’ve got and make improvements.

Of course, it’ll mean fewer home sales, which is a clear negative for real estate agents.

10. iBuyers will offer you lowball prices for your home

In case you’re not aware, your home isn’t worth quite as much as it was.

Of course, you may have never noticed if you didn’t attempt to sell earlier this year. Or obsess over your Zestimate or Redfin Estimate.

What you might see in 2023 is more bargain hunters, especially iBuyers trying to make up for perhaps paying too much in 2022 and earlier.

These companies will give you a cash offer on the spot (basically) for your home without having to jump through hoops or use an agent.

The tradeoff is that the price will likely be a lot lower than what you might fetch on the open market.

This is probably how these types of businesses should operate in theory, but we didn’t see that in a rising home price environment.

You might see more realistic offers from iBuyers and other companies/agents that approach you to buy your home in 2023.

It’s ultimately a reinforcement of the new reality in the housing market. There’s more of an equilibrium where neither buyer or seller have much of an upper hand.

But those who must sell in 2023 might get a raw deal with uncertainty in terms of which way the housing market is headed.

Source: thetruthaboutmortgage.com

Apache is functioning normally

Let’s start at the beginning: What is an HOA and why do communities have them?

According to Investopedia, “a homeowners association (HOA) is an organization in a subdivision, planned community or condominium that makes and enforces rules for the properties within its jurisdiction. Those who purchase property within an HOA’s jurisdiction automatically become members and are required to pay dues, known as HOA fees. Some associations can be very restrictive about what members can do with their properties.”

An HOA is typically established to make and enforce rules regarding the properties within the jurisdiction. And while they play an essential role in maintaining a community’s guidelines, HOAs can, at times, feel overbearing because of the many guidelines and restrictions they put in place.

And since many people wonder what makes living in a neighborhood with an HOA such a pain, we thought we’d share some of the crazy HOA stories people have posted on Quora — and let you decide whether living in a community with an HOA is the best option for you.

Bad experiences with homeowners associations

#1 Ken’s wooden beams, cherry tree and propane tank

“You do give up certain freedoms regarding maintenance of your home and property, as well as having to adhere to certain standards of conduct. For the most part, these rules are for the good of all and serve to enhance the quality of life in the community and help to maintain property values.

However, it all depends on the individuals who run the HOA. Unfortunately, these organizations are often controlled by retired people with a lot of time on their hands who delight in enforcing mindless rules.

I had several negative experiences with these organizations. The first two were in the Pittsburgh area.”

The wooden beams

“My home’s driveway was lined by wooden beams embedded in the ground. I had only lived there for about a year, and these timbers were rotting. I received a letter from the HOA telling me that these timbers must be removed or replaced in two weeks or I would be fined. Two weeks seemed pretty unreasonable for a considerable amount of work. These timbers were really only visible to someone actually on my property, so they weren’t a community eyesore. They had to have been rotting for quite some time, yet the former owners were not asked to replace them. I did agree that the work needed to be done, but two weeks was an unreasonable time frame. I asked for and received an extension to six months.”

The cherry tree

“My next incident was when I was having some trees pruned. There was a cherry tree planted very close to the house. When the worker was about to prune it, he discovered that the tree was basically hollow and infested with carpenter ants. I had actually noticed the occasional ant in my house. The tree was dying. Rather than pruning, I had it removed. The HOA was upset because I had the tree removed without permission. They tried to fine me $100. Apparently, I should have sent my worker home and then requested permission to remove a dying tree from my property, one that was leading to carpenter ants entering and potentially damaging my home. I sent them a rather nasty letter telling them that I would not pay a fine when the need to remove the tree was obvious. I didn’t need permission to get it pruned, and I only had it taken down because it was diseased. Obviously, permission would have been granted to remove a tree in this condition. They backed off the fine.” 

The tank

“I’ve since moved to Hilton Head, SC, where most homes are in gated communities with HOAs. I had an recent run-in with them. On the side of my home, there was a propane tank. It had been there at least ten years prior to my buying the house. It was concealed behind some hedges. Someone from the HOA saw this and I was sent a letter informing me that, according to the rules, the tank must be enclosed in a service yard or have some sort of structure around it. Having it behind hedges was not acceptable.

The former owner who installed this tank, who still lives in the community, was once the head of the HOA. No action was ever taken against him. I am the third person to purchase this house since the tank was originally installed. None of the prior owners were fined. The HOA allowed the house to be put up for sale three different times while it was out of compliance with the community rules. Then out of the blue, they decided to fine me for a tank that had been in place for at least nine years and three owners before I ever owned the house.

I tried to protest, as the tank is not at all visible from the road (one of their stated reasons for this rule in the first place), but I was basically told that regardless of its history (and their failure to enforce the rules before), it was my tank now and I had to move it. So I had to pay nearly $300 for the propane company (which actually owns the tank) to move the tank into a service yard.“

Source and link to full comment

#2 Katrina’s grass length and nephew’s bike

Her thoughts on why you should never move in a neighborhood governed by an HOA?

“Because they control everything!

The height of your lawn, the color of your siding, how many cars in your driveway, what plants are grown out front, if you can have a fence, how high the fence is, what color of the fence…. I can go on and on and on. You have limited control of your own property, and you pay dues…. Yea!!”

The cars in the driveway

“My sister and her husband moved to a community with a HOA, she moved 200 miles away from us. Naturally, myself and my parents helped her move.

We decided to spend the night there, my they had a long driveway. It was meant for cars and boats because the community was near the water. So we pulled our 4 cars into the driveway. The last car had about 12 feet extra before reaching the sidewalk.

We were unloading her belongings when the local community police department showed up, they wanted to speak to my sister.

Apparently she broke an ordnance because more than 3 cars were in her driveway, we didn’t get the stuff out the car first…. It was a fine, our first 15 minutes at the property.”

The nephew’s bike

“Another time (same place) my nephew left his bike on the front porch, the same people show up to fine my sister for the bike… Yes a 6 year old’s bike barely visible on a porch was fine worthy.”

The length of the grass

“Grass, in Maryland it is hot and humid and the grass grows so fast, neglect your yard for a week and the grass is knee high. My sister’s husband cut the grass, almost weekly. They would routinely (every week) go on to the property with a ruler and check the grass height.

They were just over a bit and they came on to their property and cut the grass for them, fined them and charged them for the cut.”

Source and link to full comment

#3 Ted and his A/C-less summer

“One spring, found my A/C quit working at my townhouse. The compressor was located off a mini deck built one floor up specially constructed to hold the compressor. Problem is, I had to have it replaced. Another problem, they didn’t make SEER 10 anymore and had to get SEER 13. SEER 13 units are bigger, heavier and wouldn’t fit on the mini deck. I had a structural engineer check it out, would cost me about $13k to have that deck made bigger (long story). Alternative was to move the compressor to the front of my unit.

HOA made me contact three neighbors and have them sign off on my architectural mod. Then they took all summer to approve the job.

Read that part again.

I found the problem in spring, immediately complied by getting the neighbors signatures, and I didn’t have A/C until the job was approved in August.“

The window unit 

“Oh, and as a stop gap measure, I bought a window unit to get me by the summer months until they allowed me to install the new unit. It took the edge off, kept it from getting over 90°F inside.

Took about a week before I got a nasty gram telling me to remove the window unit (against the rules) or get a hefty fine. So, I put it in the window where it shared space by the broken a/c compressor (in other words, hard to see). Got a nasty gram within two days threatening a fine.“

The grey front stoop

“Another story – my next door neighbor bought his place with his front stoop painted grey. He didn’t paint it; the prior home owner did. He gets a nasty gram saying painted stoops are against the rules. It’s gray paint, I didn’t even notice it was painted until it was pointed out. Neighbor fought it at the next meeting. Had pictures of other painted stoops throughout the community (a few others did exist). He made sure he also captured unit numbers. It was noted during the meeting that one of the painted stoops happened to be the porch of the HOA president. They dropped the complaint against him.”

Source and link to full comment

Now, we’re not saying that all HOAs are bad. Nor are we encouraging anyone to move to a neighborhood governed by one. But since knowledge is key when making a life-changing decision like buying a home, we thought these stories will give you a better understanding of some of the challenges you might face when moving to a neighborhood with an HOA.

Have any stories you’d like to share? Maybe some stories of how your HOA is doing a great job for your neighborhood? Drop us a line at [email protected] 

More helpful tips:

Can You Sell a House and Buy Another at the Same Time? We Explore Your Options
How Much Do Modern Prefab Homes Cost?
A Step-by-Step Guide to Buying a Property for Airbnb

Source: fancypantshomes.com

Apache is functioning normally


Written by


Reviewed by

Updated Mar 09, 2023

At Bankrate, we strive to help you make smarter financial decisions. To help readers understand how insurance affects their finances, we have licensed insurance professionals on staff who have spent a combined 47 years in the auto, home and life insurance industries. While we adhere to strict
,
this post may contain references to products from our partners. Here’s an explanation of
.
Our content is backed by
Coverage.com, LLC, a licensed entity (NPN: 19966249). For more information, please see our
.

At a glance

3.5

Bankrate Score


Caret Down

Auto

3.8


Caret Down

Cost & ratings

4.0



Coverage

3.5



Support

3.5


Home

3.1


Caret Down

Cost & ratings

2.8



Coverage

4.0



Support

2.3


About Bankrate Score

Bottom Line

If you live in Erie’s 12-state service area, the company could be a great choice for robust coverage and affordable premiums. Erie’s digital tools are lacking compared to its competitors, though, so it may not be the best choice for tech-focused customers.

  • Affordable average premiums for both homeowners and car insurance policies compared to the national average

  • Strong customer satisfaction rankings from J.D. Power

  • Erie’s home insurance offers guaranteed replacement for dwelling coverage in most states

  • Erie auto and home insurance is only available in 12 states and Washington D.C.

  • No usage-based auto insurance program available

  • Only a few homeowners endorsements available

Answer a few questions to see personalized rates from top carriers


Info

What’s new with Erie?

In August 2022, Erie Insurance established Erie Strategic Ventures to help fund entrepreneurs who create innovative products and services for customers and Erie’s independent agents. The company also recently announced the addition of optional extended water coverage for homeowners policies.

Erie car insurance

Founded in 1925, Erie Insurance Group started in Pennsylvania but has since expanded to 12 states and Washington D.C. The company offers coverage options that may be difficult to find among its competitors. Its standard auto insurance policies feature a diminishing deductible, first accident forgiveness for eligible policyholders and Erie Rate Lock, depending on the state. Additional coverage options include roadside assistance, auto glass repair and personal item coverage.

Erie car insurance earned a Bankrate Score of 3.8 out of 5. This Score reflects the company’s coverage options, financial strength, customer satisfaction and available discounts. Erie lost points due to its regional availability and limited digital tools (for example, the mobile app doesn’t have a claims filing option). Erie earned an A+ (Superior) AM Best financial strength rating and placed third in J.D. Power’s 2022 U.S. Auto Claims Satisfaction Study.

Pros and cons of Erie car insurance

Erie’s coverage options and customer satisfaction scores make it one of the best car insurance companies in states where it writes policies. Comparing pros and cons of Erie auto insurance may help you decide if the company could be a good fit for your needs.

PROS


  • Checkmark

    Roadside assistance and rental car reimbursement available


  • Checkmark

    Erie Rate Lock may help keep rates stable over time


  • Checkmark

    Auto policies include pet coverage

CONS


  • Close X

    Available in just 12 states and the District of Columbia


  • Close X

    No telematics or usage-based insurance program available


  • Close X

    Mobile app does not enable policyholders to file a claim from their mobile devices

Erie car insurance cost

Erie is one of the cheapest car insurance companies based on our research of average premiums analyzed from Quadrant Information Services. Erie’s full coverage car insurance costs an average of $1,356 per year, while minimum coverage averages $486 per year. 

Comparatively, the national average cost of car insurance for both coverage levels is higher, at $2,014 per year for full coverage and $622 per year for minimum coverage. Actual rates may vary based on car insurance rating factors, but the premium data below may be a useful comparison tool.

Erie car insurance rates by driving history

Bankrate bases the following average rates on data provided by Quadrant Information Services. This may not represent the price you will pay for car insurance. We do not include average rates for drivers with a history of driving under the influence (DUI) because some insurers may not write policies for motorists with a DUI conviction. If you have a DUI conviction, you may contact your insurance agent to find out how it could impact your car insurance premium.

this.select(this.$id(‘tab’, 1)))
},
select(id)
this.selectedId = id
,
isSelected(id)
return this.selectedId === id
,
whichChild(el, parent)
return Array.from(parent.children).indexOf(el) + 1

}” x-id=”[‘tab’]”>

Erie average monthly full coverage premium Erie average annual full coverage premium National average annual full coverage premium
Clean driving history $113 $1,356 $2,014
Speeding ticket conviction $123 $1,476 $2,427
At-fault accident $134 $1,607 $2,854
Erie average monthly minimum coverage premium Erie average annual minimum coverage premium National average annual minimum coverage premium
Clean driving history $41 $486 $622
Speeding ticket conviction $44 $527 $748
At-fault accident $49 $592 $892

Erie car insurance quotes by age

Young drivers typically pay some of the highest average car insurance rates. Teens and other young drivers may save by remaining on their parents’ auto insurance policy until they’ve established their own households. The following average rates are based on a motorist on their parents’ policy with a clean driving record, as well as drivers listed on their own policies.

Average cost of car insurance for drivers on their parent’s policy

this.select(this.$id(‘tab’, 1)))
},
select(id)
this.selectedId = id
,
isSelected(id)
return this.selectedId === id
,
whichChild(el, parent)
return Array.from(parent.children).indexOf(el) + 1

}” x-id=”[‘tab’]”>

Erie average monthly full coverage premium Erie average annual full coverage premium National average annual full coverage premium
Age 16 $240 $2,876 $4,392
Age 17 $225 $2,700 $4,102
Age 18 $219 $2,630 $3,837
Age 19 $209 $2,512 $3,345
Age 20 $205 $2,456 $3,149
Erie average monthly minimum coverage premium Erie average annual minimum coverage premium National average annual minimum coverage premium
Age 16 $86 $1,035 $1,470
Age 17 $81 $970 $1,362
Age 18 $79 $944 $1,261
Age 19 $74 $892 $1,070
Age 20 $73 $876 $995

Average cost of car insurance for drivers on their own policy

this.select(this.$id(‘tab’, 1)))
},
select(id)
this.selectedId = id
,
isSelected(id)
return this.selectedId === id
,
whichChild(el, parent)
return Array.from(parent.children).indexOf(el) + 1

}” x-id=”[‘tab’]”>

Erie average monthly full coverage premium Erie average annual full coverage premium National average annual full coverage premium
Age 18 $249 $2,988 $6,110
Age 25 $136 $1,630 $2,473
Age 30 $122 $1,461 $2,125
Age 40 $113 $1,356 $2,014
Age 60 $107 $1,279 $1,824
Erie average monthly minimum coverage premium Erie average annual minimum coverage premium National average annual minimum coverage premium
Age 18 $90 $1,081 $1,967
Age 25 $48 $579 $747
Age 30 $43 $520 $647
Age 40 $41 $486 $622
Age 60 $39 $462 $578

Your deductible may be reduced by $100 for each claim-free policy year, up to a $500 maximum. This discount is only available to policyholders who purchase the Auto Plus endorsement, and its availability may vary by state.

Erie may extend both bundling and multi-policy discounts to policyholders who carry more than one insurance policy with the company.

Vehicles equipped with safety and security devices, such as airbags, anti-lock brakes and anti-theft devices, may qualify for a discount.

Erie may extend a discount to policyholders who pay their annual car insurance premium in one lump sum, rather than monthly installments.

Erie car tools and benefits

Erie extends a coverage option for non-owned autos including cars, moving vans and trailers that you use but do not own. This may be ideal for Erie drivers who do not own a vehicle but do drive on occasion.

Erie also sells boat, class car and motorcycle insurance, along with coverage for ATVs, golf carts and snowmobiles.

Erie home insurance

Erie home insurance receives high customer satisfaction scores from J.D. Power as well as 24/7 support for policyholders and a variety of coverage options. Erie offers guaranteed replacement cost coverage as part of its standard homeowners policies as well as additional living expenses.

Although Erie does not allow policyholders to file a claim through their mobile app, the company has more than 13,000 local agents and advertises a 90 percent customer retention rate year over year.

Pros and cons of Erie homeowners insurance

If you’re considering Erie for your homeowners insurance needs, it may be helpful to compare perks and drawbacks you may experience with the carrier. Here are a few of the key pros and cons Bankrate’s editorial team identified:

PROS


  • Checkmark

    Guaranteed dwelling replacement cost coverage included in standard homeowners policies


  • Checkmark

    Ranked 7th in J.D. Power’s 2022 U.S. Home Insurance Study


  • Checkmark

    Standard home insurance policies include up to $500 in pet coverage

CONS


  • Close X

    Only a few discounts available


  • Close X

    Few optional coverages available


  • Close X

    Not available in all states

Dwelling coverage limit Erie average annual premium National average annual premium
$150,000 $659 $975
$250,000 $957 $1,428
$350,000 $1,269 $1,879
$450,000 $1,601 $2,343
$750,000 $2,597 $3,761

Erie home insurance discounts

Home insurance discounts may help you save on your premium. Advertised home insurance discounts with Erie include:

You may earn a discount if your home is equipped with safety features like smoke alarms, security systems and an automatic sprinkler system.

Obtain an Erie homeowners insurance quote seven to 60 days before your current policy’s renewal date and you might earn a discount.

Customers who purchase a life insurance policy in addition to a car or homeowners insurance policy with Erie could earn a multi-policy discount.

Erie home tools and benefits

Erie’s home insurance coverage comes with unique options not found with other carriers. Its home insurance pet coverage extends coverage to up to $500 for animals, including birds and fish.

Erie offers gift card and gift certificate reimbursement coverage for its ErieSecure Home policies. Customers may receive reimbursement for up to $250 per gift card purchased from businesses within 100 miles of their home, with a maximum of $500 per policy period.

Erie life insurance

Erie offers four life insurance products: term life, whole life, universal life and Erie’s exclusive ERIExpress Life. Erie’s term life insurance may be a good option for those who want a fixed coverage term and intend for the policy to pay for expenses that may be burdensome to loved ones, such as funeral costs and mortgage or credit card debt. Whole and universal life have no fixed terms, but universal life offers the most flexible death benefit. Erie’s unique ERIExpress Life policy may be ideal for people looking for a simplified application and fast approval.

Pros and cons of Erie life insurance

The best life insurance company may be different for everyone, and each policy type serves a different purpose. The following pros and cons may help you decide if Erie life insurance is right for you.

PROS


  • Checkmark

    Multi-policy discounts available for policyholders with a life and home or auto policy.


  • Checkmark

    ERIExpress may be available without a medical exam.


  • Checkmark

    Variety of policy types to choose from

CONS


  • Close X

    Only one rider advertised to customize coverage.


  • Close X

    Online quoting is not available


  • Close X

    Only writes policies in 12 states and the District of Columbia

Erie life insurance endorsements

Life insurance endorsements, also called riders, may modify and extend your life insurance coverage. Erie’s life insurance coverage only offers one rider, a long-term care rider. Erie’s long-term care rider is only available for universal and whole life insurance policies. The long-term care rider provides an accelerated death benefit, which pays a portion of your policy’s death benefit to help pay medical expenses incurred following a covered accident or illness that requires long-term care.

Erie life tools and benefits

Erie provides a life insurance calculator on its website to help customers decide which type of policy may best fit their needs. From there, customers can request to be paired with an independent Erie agent to get a quote.

Erie customer satisfaction

Researching third-party ratings may help you decide which insurer best fits your needs. J.D. Power produces annual car insurance and home insurance studies that rate and rank insurers based on their customer satisfaction. These include the national U.S. Auto Claims Satisfaction Study and more regional U.S. Auto Insurance Study.

Agencies such as AM Best, Moody’s and Standard and Poor’s analyze the financial strength of insurers and produce ratings that may indicate the financial strength of individual companies. Erie has earned an A+ (Superior) AM Best financial strength rating.

Lastly, the National Association of Insurance Commissioners (NAIC) produces an annual complaint index report to track the prevalence of complaints lodged against insurance companies. The index employs a baseline of 1.0. Scores below 1.0 indicate that a provider had fewer complaints than expected for a company its size and vice versa.

Erie auto satisfaction

In J.D. Power’s 2022 U.S. Auto Claims Satisfaction Study, Erie ranked third in the market, with an overall customer satisfaction score of 893 out of 1,000. More regionally, Erie came in first for overall customer satisfaction in the mid-Atlantic and North Central regions. Erie has an NAIC Complaint Index of 0.56 for its private passenger policies, indicating fewer customer complaints than expected for a company its size.

Erie homeowners satisfaction

Erie ranked above average in J.D. Power’s 2022 U.S. Home Insurance Study, earning an overall customer satisfaction score of 827 out of 1,000. Erie’s homeowner policies have an impressive NAIC Complaint Index of 0.09, indicating very few complaints from policyholders.

Erie life satisfaction

Erie wasn’t rated in the annual life insurance study conducted by J.D. Power, potentially due to the company’s small size when compared to national life insurance carriers. However, the Erie Family Life company, which underwrites Erie’s life insurance products, has an NAIC Complaint Index of 0.46, which is less than half of the 1.00 baseline. Based on this data, Erie’s life insurance customers may be satisfied with the service they receive, since fewer-than-average complaints were filed.

How to file a claim with Erie

Erie gives auto and home insurance policyholders two ways to file a claim. They can contact their Erie agent or call the 24/7 claims center at 800-367-3743. Life insurance customers can file a claim by contacting their Erie agent or by calling 800-458-0811.

Erie availability

Erie writes car and home insurance policies in the District of Columbia and the following states:

  • Illinois
  • Indiana
  • Kentucky
  • Maryland
  • New York
  • North Carolina
  • Ohio
  • Pennsylvania
  • Tennessee
  • Virginia
  • West Virginia
  • Wisconsin

Erie sells life insurance in the District of Columbia and all of the aforementioned states, except New York.

Other Erie perks worth considering

Erie also offers business insurance including business automobile insurance. Business policies may protect a variety of businesses, including breweries, contractors, religious organizations, retailers and veterinarians.

Erie also offers a long list of other insurance and financial products for customers, including:

  • Financial services: Erie offers Medicare supplemental coverage (Medigap) and retirement accounts, including annuities and individual retirement accounts (IRAs).
  • Renters, condo and mobile home insurance: Erie offers a variety of insurance policies for other dwellings and living situations.
  • Flood insurance: Erie sells standalone flood insurance policies for homeowners and business owners.
  • Personal valuables insurance: This coverage may be purchased to financially protect jewelry, art, sports equipment, collections, musical instruments and more.

Erie corporate sustainability

Through The Giving Network, Erie and its employees volunteer time and money with organizations focussed on community building, environmental responsibility and safety. These initiatives include partnering with United Way and American Red Cross, as well as supporting other culture and arts organizations, entrepreneurship, education and environmental responsibility. In November 2022, the provider’s The Giving Network awarded $50,000 in grants to 10 northwest Pennsylvania environmental organizations.

With the company’s ERIE Service Corps, employees are encouraged to use a full work-day volunteering in their local community. The Corps also has a matching donation program and established the H.O. Hirt Scholarship Fund and the F.W. Hirt Employee Emergency Fund to more immediately meet the financial needs of their community.

Not sure if Erie is right for you?

Erie offers a variety of auto, home and life insurance products, but it does not write policies in all states. If you live outside Erie’s service area or need an insurer that offers a more diverse portfolio of products, you might consider one of these carriers:

Erie vs. Allstate

Allstate sells car and homeowners policies in the District of Columbia, Puerto Rico and all states except New Jersey. While Erie extends a multi-policy discount to policyholders, Allstate offers more ways to potentially reduce your premium. For instance, if you switch to Allstate, you might earn up to a 10 percent discount, plus an additional 10 percent savings each time you renew your policy. Allstate also offers a robust mobile app that allows policyholders to file claims virtually.

Learn more: Allstate insurance review

Erie vs. Travelers

Unlike Erie, Travelers offers optional rideshare coverage and gap insurance. Travelers extends many potential home insurance discounts including potential discounts for purchasing a new home and owning a LEED-certified green home. However, Travelers ranks lower than Erie in the 2022 U.S. Home Insurance Study and does not sell life insurance products.

Learn more: Travelers Insurance review

Erie vs. AAA

AAA Life Insurance Company sells term life, universal life and whole life insurance policies. AAA’s traditional term life policies offer coverage up to $5 million and give you the option to add a child term endorsement, which provides up to $20,000 in coverage for each eligible child. AAA’s roadside assistance program is robust and enables you to request battery, flat tire, emergency fuel delivery, locksmith, mechanical first aid and towing services from the convenience of the AAA mobile app. Bear in mind that AAA coverages, discounts and optional coverages may vary by location.

Learn more: AAA insurance review

Is Erie a good insurance company?

Erie has excellent financial strength ratings and earned high marks in J.D. Power’s customer and claims satisfaction studies. Additionally, the provider has NAIC Complaint Indexes that are far lower than baseline.

While Erie includes some perks in its standard auto insurance policies, like roadside assistance and rental car reimbursement, the carrier falls behind in the market by not offering a comprehensive mobile app or telematics program.

Erie’s standard homeowners policies feature guaranteed dwelling replacement cost coverage, which most insurers only offer as an endorsement, but they extend few optional coverages and discounts. Overall, Erie offers a solid portfolio of auto, home and life insurance products, but the provider only writes policies in a handful of states.

Clock Wait

46

years of industry expertise

122

carriers reviewed

20.7K

ZIP codes examined

Dollar Coin

1.2M

quotes analyzed

Methodology

Bankrate utilizes Quadrant Information Services to analyze 2023 rates for ZIP codes and carriers in all 50 states and Washington, D.C. Rates are weighted based on the population density in each geographic region. Quoted rates are based on 40-year-old male and female homeowners with a clean claim history, good credit and the following coverage limits:

Auto

  • $100,000 bodily injury liability per person
  • $300,000 bodily injury liability per accident
  • $50,000 property damage liability per accident
  • $100,000 uninsured motorist bodily injury per person
  • $300,000 uninsured motorist bodily injury per accident
  • $500 collision deductible
  • $500 comprehensive deductible

To determine minimum coverage limits, Bankrate used minimum coverage that meets each state’s requirements. Our sample drivers own a 2021 Toyota Camry, commute five days a week and drive 12,000 miles annually.

Age: Rates were calculated by evaluating our base profile with the ages 16-60 (base: 40 years) applied. Depending on age, drivers may be a renter or homeowner. Age is not a contributing rating factor in Hawaii and Massachusetts.

The rates for drivers ages 16–20 added to their parent’s policy reflect the good student and driver’s training discounts applied. The rates for drivers aged 16-20 on their own policy do not include the good student and driver’s training discounts. Additionally, 25-year-old rates are based on the driver as a renter and 30+ on the driver as a homeowner.

Incidents: Rates were calculated by evaluating our base profile with the following incidents applied: clean record (base), single speeding ticket and single at-fault accident.

Homeowners

  • Coverage A, Dwelling: $150,000, $250,000, $350,000, $450,000, $750,000
  • Coverage B, Other Structures: $15,000, $25,000, $35,000, $45,000, $75,000
  • Coverage C, Personal Property: $75,000, $125,000, $175,000, $225,000, $375,000
  • Coverage D, Loss of Use: $30,000, $50,000, $70,000, $90,000, $150,000
  • Coverage E, Liability: $300,000, $300,000, $300,000, $300,000, $500,000
  • Coverage F, Medical Payments: $1,000

The homeowners also have a $1,000 deductible and a separate wind and hail deductible (if required).

These are sample rates and should be used for comparative purposes only. Your quotes will differ.

Bankrate Scores

Our 2023 Bankrate Score considers variables our insurance editorial team determined impacts policyholders’ experiences with an insurance company. These rating factors include a robust assessment of each company’s product availability, financial strength ratings, online capabilities and customer and claims support accessibility. Each factor was added to a category, and these categories were weighted in a tiered approach to analyze how companies perform in key customer-impacting categories.

Like our previous Bankrate Scores, each category was assigned a metric to determine performance, and the weighted sum adds up to a company’s total Bankrate Score — out of 5 points. This year, our 2023 scoring model provides a more comprehensive view, indicating when companies excel across several key areas and better highlighting where they fall short.

  • Tier 1 (Cost & ratings): To determine how well auto and home insurance companies satisfy these priorities, 2023 quoted premiums from Quadrant Information Services (if available), as well as any of the latest third-party agency ratings from J.D. Power, AM Best and the NAIC, were analyzed.
  • Tier 2 (Coverage & savings): We assessed companies’ coverage options and availability to help policyholders find a provider that balances cost with coverage. Additionally, we evaluated each company’s discount options listed on its website.
  • Tier 3 (Support): To encompass the many ways an auto and home insurance company can support policyholders, we analyzed avenues of customer accessibility along with community support. This analysis incorporated additional financial strength ratings from S&P and Moody’s and factored a company’s corporate sustainability efforts.

Tier scores are unweighted to show the company’s true score in each category out of a possible five points.


Savings

Compare rates and save on auto insurance today!

Source: thesimpledollar.com

Apache is functioning normally

Are you wanting to learn how to be productive?

Are you feeling like you aren’t as productive as you usually are? Or, perhaps life is really busy right now and you want to be able to manage it all better.

Many people struggle with how to be productive. We all have lots of things to do and sometimes we can accomplish them all, and other times it is very difficult.

I go through productivity spurts.

At times, I feel like I can accomplish anything and everything, and other days I don’t even know what (if anything) I did all day. 

This is an area that I am constantly working on, and perhaps you are too.

Sometimes I am distracted by so many different things that it has caused me to waste a huge amount of time. Therefore, I have not been able to live in the moment like I would really like to.

Currently, though, I am trying to be as productive as I can, and trying to get ahead on as much work as possible. We are about to sail away from Florida after a very busy summer traveling in the van, and being more productive now means I’ll have a better time when we are sailing.

That is one of the best benefits of learning how to be productive – you will have more time to focus on what you really love doing. You won’t be stressed out by things you still need to do, and you can just live in the moment without any distractions.

However, learning how to be productive can be very difficult for some people. It’s easy to get overwhelmed by a long to-do list. Negative thoughts can hold you back from believing you can accomplish your goals or tasks. And, social media can be a huge distraction.

While those things can prevent you from being productive, they are also a huge waste of time. 

And, the thing about wasting time is that it can hold you back from reaching your goals.

By learning how to be productive, you may be able to:

  • Begin a side hustle.
  • Eliminate your debt.
  • Spend more time with your those that you love.
  • Learn a new skill.
  • Enjoy life more.
  • Travel more.
  • Increase your income.
  • Reach your dreams, and more!

If you start today with just one of the ideas for how to be more productive, you will be that much closer to reaching your goals. So, when you read through this article, pick one idea you’d like to try today. You can try more once you see how well just one of them works.

Related reads:

Hopefully the productivity tips in today’s article will help you find hours in your week, no matter how you lose them.

How to be productive – 17 tips for success

 

1. Realize how much time you have to work with.

The first step is to be realistic with yourself.

Everyone has the same 24 hours in a day, but others may be more limited with their time. I understand that different situations can make a person quite busy, so you need to be honest with yourself about much available time you have.

You don’t want to run yourself ragged, forget about the things that truly matter in life, hurt your work performance, and more.

However, many people do have extra time in their days but just don’t realize it. For one week, I recommend keeping track of the time you spend on various tasks and see how much time you waste and how you can improve.

You’ll most likely be very surprised!

 

2. Leave your negative outlook behind and find positivity.

I know what you’re thinking – How is this related to learning how to be productive?!

According to the National Science Foundation, the average person has about 12,000 to 60,000 thoughts per day. Of those, 80% are negative and 95% are repetitive thoughts. (statistic found on Medium)

That is a lot of time wasted on negative thoughts!

Lately, though, I’ve been realizing that I waste a lot of time with negative and repetitive thoughts. It’s been crazy to realize how easy it is to turn something so little and simple into something negative.

This is one of the productivity tips that may be hard to adapt to, but learning to be positive will really help you in the long run.

Instead of focusing on negatives like regret, guilt, comparisons, and more, you can be more productive by using this time for things that actually matter.

When you find that you are thinking in a negative way, take a moment to think of something that makes you happy. Is it your family? Do you love what you do? Did someone do something nice for you today?

A positive outlook can be life changing.

Related articles that will help you learn how to have a productive and positive day:

 

3. Check your email less. Way less.

This is one area that I have always struggled with. Even though I am guilty of checking my email numerous times throughout the day, I am starting to take my own advice and checking it less often.

I think the problem for me is that I feel obligated to keep checking my email in case something pops up with my business or if a reader has a question. I want to be as available as much possible, but that means I am constantly checking my email. 

While it may not feel like you are spending that much time checking your email, the time and focus it takes to switch back and forth can really add up. It can also cause you to lose your train of thought when you should actually be doing something else.

If this is an issue for you and you want to learn how to be productive, I recommend setting time aside throughout the day to check your email. You can even set a rule that you only check after you finish a task. You can also turn off email notifications if they are distracting you.

You may want to work down to only checking your email just a few times a day, or even (EEEK!!!) once a day.

 

4. Unsubscribe from unnecessary emails.

Subscribing to emails is really easy to do. We’ve all done it to get a coupon code, at the cash register to get a receipt (isn’t that annoying?!), and sometimes you just mysteriously land on an email list.

Over the years, I’ve subscribed to plenty of different websites and companies. I got hundreds of unnecessary emails every day, and even though I set up tabs to organize my email, I was still spending so much time filtering through them. 

It was tedious, and they were mostly junk. But, sometimes real emails got lost in the mix as well!

So, I unsubscribed from almost all emails, except for blogs that I enjoy and whatever is absolutely necessary.

Everything else has been removed.

If you find that you are spending too much time everyday checking, reading, and deleting emails that it isn’t allowing you to live in the moment and live your best life, I definitely suggest unsubscribing to the ones that aren’t meaningful to you.

You can find an unsubscribe button on the bottom of most emails, and it just takes a couple of clicks to get off an email list. 

 

5. Wake up earlier.

Some say that they are most productive early in the morning. If this is the case, then use this to your advantage!

When I had my day job, I would usually wake up around one to two hours before I had to start getting ready for work. I would use this time to work on my side hustles, which included replying to emails, brainstorming ideas, managing my blog, finding mystery shop jobs, and more.

Sometimes, waking up early was extremely rough, but it was nice to get everything done before I went to work. This was also one of the ways I learned how to be productive at home, because I could also use this time to straighten things up around the house or clean.

If you’re not a morning person, you can always try to fit in time before you go to bed. Often I would even work on my side hustles for a few hours before I went to bed.

Related: 9 Tips To Wake Up Early & Why It Feels So Good

 

6. Organization is your friend.

Your productivity can be greatly influenced by how organized you are. 

Here are some surprising statistics I found from Simply Orderly about being unorganized:

  • The average person spends 12 days per year looking for things they can’t find.
  • Every day, the average office worker spends 1.5 hours looking for things.
  • In a recent survey, 55% of consumers stated they would save anywhere from 16 to 60 minutes a day if they were organized.
  • 23% of people pay bills late and have to pay late fees because they are unable to find their bills.

Becoming more organized can be hard at first, but it can really help you reclaim time in your day. If you want to learn how to be productive by organizing your life, here are several helpful tips:

  • Put things away when you are finished using them.
  • Make a schedule and stick to it.
  • Write things down in a notebook or planner so you don’t forget anything.
  • Regularly tidy things up.
  • Switch to a minimalist lifestyle.

Like I said, learning good organizational skills can be difficult, and you will have to commit if you really want to take part in this tip. But, being organized will ensure that your living and working spaces are functional, and it will probably even clear some mental clutter.

Posts related to minimalist living:

Also, organize your finances!

This is one of the tips that won’t just help you learn how to be productive with your time, it will help you gain control of your financial situation. Organizing your finances includes things like setting up auto pay on your bills, creating a budget, and using an online platform to show you all of your accounts.

My favorite online tool for keeping track of my finances is Personal Capital. Personal Capital allows you to aggregate your financial accounts so that you can easily see your financial situation. You can connect accounts such as your mortgage, bank accounts, credit card accounts, investment accounts, retirement accounts, and more. And, it is FREE.

 

7. Use short gaps in your day wisely.

Everyone has gaps of time in their day. This could be a gap before you have a meeting, a gap between your day job and night classes, a gap before you have to pick up the kids from school, or something else.

Maybe you have 15 to 30 minutes or an hour. Most people will just plunk down on the couch and watch TV or browse Facebook.

However, if you want to learn how to be productive, find ways to wisely use these gaps in your day. 

Here are some examples of how you can take advantage of short gaps in your day:

  • You can use a gap to write out tomorrow’s to do list. 
  • You can pay a bill or two.
  • If you’re a freelancer, you can use this time to bill your clients. 
  • Use this time to schedule appointments.
  • Make a meal plan and grocery list.

 

8. Watch less TV.

Fun fact: I haven’t watched TV in over a month!

Less fun fact: I’m not perfect and often binge watch TV shows when I happen to find a good one.

TV absolutely kills my productivity level. I know how easily I can get sucked into the world of Netflix, so I haven’t even tried watching anything lately.

I love a good TV show, and I can honestly say that I once wasted a lot of time by watching too much TV. The average person watches TV for over 35 hours per week! I’m not sure if I was watching that much, but I know I was close.

Can you imagine what you could do by reclaiming just half of those hours each week?

Cutting out the amount of TV you watch will really help you if you want to learn how to be more productive. By cutting back on TV, you will have a few more hours everyday to focus on more important things.

Related: 16 Alternatives To Cable TV That WILL Save You Money

 

9. Spend less time getting ready.

Being more productive often involves saving time on littles aspects of your daily life. These things are often overlooked and can add up to a lot of wasted time, like taking forever to get ready. There are lots of people who spend way too much time picking out outfits and trying to get ready, and I was once one of them.

Since we had to downsize to travel full-time, I had to get rid of a lot of my clothes. It was a little hard at first because I had so many! But, by having less clothing options and/or choosing your outfit the night before, you can save valuable minutes each day.

Before we downsized, I couldn’t even remember all of the clothes I had, but now I save time each day because I know what I have and what looks good together.

For more information, I recommend checking out Becoming Minimalist’s blog post, Capsule Wardrobe: Why Some Are Wearing the Same Thing Every Day.

 

10. Have a to do list and use your calendar.

I love my constant to do list and having a full calendar.

Without these two things in my life, I would feel lost, unorganized, and probably even confused about what to do! 

Yes, I rely heavily on my to do list, but putting a to do list together doesn’t have to be hard. I keep my to do list on my phone, and it’s just a simple list of things I need to do throughout the day, week, month, and year. I can even set reminders so I don’t forget when things need to be done. Others find that planners work for well for them too.

This is a tip that will help you learn how to be productive in every aspect of your life, as you can have a to do list for work, home, etc. Your to do list will keep you on track so you don’t forget what needs to be done on a daily, weekly, or monthly basis. This will keep you motivated and working towards your goals.

Related: 15 Of My Best Working From Home Tips So You Can Succeed

11. Make sure your to do list is doable.

Even though I have an on-going to do list, many people benefit from having a smaller and more approachable list. 

You can start by asking yourself, “is this something I can really do today?” If the answer is “yes,” then add it to your list. If you are unsure, you might want to break it down into smaller tasks or save it for another day.

By having a smaller list, you may feel a greater sense of accomplishment knowing that you’ve crossed everything off your list for the day, even if it is just a couple of things. This can motivate you to work on bigger tasks and goals over time.

12. Practice self-care.

Yes, self-care is important for your productivity levels!

Self-care is simply doing something to protect your mental or physical health. It can be something like taking a nice long bath, meditating, drinking more water, etc.

It’s spending a little bit of time to put yourself first.

When you are busy or overwhelmed with other aspects of your life, self-care is one of the last things you think you should do. But, when you take a small break to take care of yourself, the effects can ripple out through the rest of your life.

You may find that your stress is reduced, you’re more productive, happier, and more.

This tip is often overlooked when people want to learn how to be productive, but it’s always important to take care of yourself.

 

13. Procrastinating doesn’t help anyone.

Procrastination can waste time and kill your productivity as you may find anything else you can possibly do before completing a certain task.

Then, you might do things that waste even more time, such as just standing around, watching TV, cleaning the same area you’ve already cleaned 10 times that day, and more.

People procrastinate for all sorts of reasons, like anxiety, avoidance, etc. When you figure out why you are procrastinating, you can then create an action plan. By focusing on what you need to do, you will stop wasting time!

 

14. Get off social media.

Okay, you’re probably thinking, “there’s no way that I can cut out social media!” I’m not saying that you need to cut it out entirely, but if you spend a little less time everyday on social media, you will find valuable hours each week.

Social Media Today found that the average person spends nearly two hours a day on social media. When you add all of that time up, it equals to wasting over 5 YEARS of your life on social media. That’s shocking!

If you find that you are spending too much time on social media and that it’s preventing you from being productive, you may want to close the accounts you are spending too much time on. You can even create a time block so you cannot access your accounts during certain periods of the day, and so on.

 

15. Singletask more.

There are some people who say that learning to multitask can help you learn how to be productive, but I don’t 100% agree with that. 

Now, some people can multitask successfully, but many people cannot with the large amount of time it takes to refocus on a new task. So, when you are constantly switching back and forth, you waste time refocusing.

This is one tip that is helpful if you want to learn how to be more productive at work.

It’s best to realize your strengths and weaknesses to know whether or not multitasking actually helps you save time. For myself, I’ve found that focusing on one thing at a time is actually how I save the most time when working.

16. The snooze button is probably hurting you.

Getting an extra five minutes of sleep after your alarm goes off isn’t going to change your life. There are many scientific studies proving that hitting the snooze button does nothing good for you.

I know many people who set their alarms to go off anywhere from 30 minutes to an hour before they actually want to wake up. 

I’m not going to lie. I used to do this as well and thought it was the only way I could get up. It definitely did not work, as I always felt extremely groggy and sometimes even more tired!

If you want to learn how to be productive, wake up when your alarm first goes off to use those minutes valuably. If you are so tired in the morning that you feel you need to hit the snooze button, then you should either start going to sleep earlier in the evening or set your alarm for when you actually need to get out of bed.

17. Know your peak hours.

Each of us has certain hours of the day that we work more efficiently. For some people, it’s in the morning, while others work well late at night. I’ve even read that many people are the most productive right before lunch because they are hungry.

You can learn how to be productive by spending a week paying attention to the times of the day when you are most focused. Those are your peak hours, and most people have two peak hours per day.

Knowing your peak hours will help you learn how to concentrate and complete high-priority tasks. This will help you get the most important or complicated things done.

What are your top tips on how to be productive? Do you think you waste time each day?

Related Posts

<!–

–>

Source: makingsenseofcents.com

Apache is functioning normally

For the past two years, the topic of women and money has come up in my life quite a bit. I’m guessing it has something to do with the fact that I’m a woman who writes about money.

But as a woman who writes about personal finance, I feel have given the topic less attention than it deserves — not just in my writing, but in my own thoughts too. I suppose I figured personal finance is something that we all struggle with, not just women. But the more I learn, the more it hits home, and the more I realize we should embrace the topic so we can do something about it.

The Confidence Gap

Last year, when I read Barbara Stanny’s “Secrets of Six-Figure Women,” I found myself nodding in agreement to just about everything she’d written. Some of her points were an unsettling confirmation of my own career shortcomings — particularly, her chapter on the “traits of underearners.” A few of these traits: We have a high tolerance for low pay; we underestimate our worth; we’re terrible negotiators. Check, check and check.

Around the same time, I came across a study that found women are considerably less confident than men when it comes to investing. That hit home as well. I’d started saving for retirement, but I was really intimidated to learn more about investing beyond that. Then, recently, I went to an event hosted by Fidelity and Vanity Fair which was all about women, power and money. Their research echoed the findings of pretty much all previous research on this topic: Women lack confidence with personal finance. Kathy Murphy, their President of Personal Investing, called it a “confidence gap.”

It’s a weird thing to say, but sometimes I forget I’m a woman. I forget that, statistically, I might be getting the short end of the stick in some circumstances. I forget that what holds me back might have something to do with my gender. Then I read the stats and I think, “Oh, snap. That’s totally me.”

Learning about this issue and embracing it has changed the way I think about myself, my gender role and my money. And that change has made a tremendous difference in my finances.

Earning More and Overcoming Insecurity

Like a lot of people, I am insecure. It’s okay to be insecure to a point, I think. I am not a big Bukowski fan, but I do like this quote: “The problem with the world is that the intelligent people are full of doubts, while the stupid ones are full of confidence.” I’m not saying I’m smarter than anyone; I’m just saying — a little self-doubt isn’t necessarily a bad thing. It keeps you open-minded and educated.

But insecurity can hold you back. For example, I’ve always been afraid to speak up. In third grade, a scientist visited our classroom and brought crystals. We each got one, but I lost mine and reported this to my teacher. She said Rob N.* probably had it because, somehow, he got two crystals.

My teacher brought Rob to me. “Is this yours?” she asked. Sure enough, my own crystal was shining in his palm.

But I was afraid to speak up. I thought if I said yes, I’d be seen as a greedy, crystal-grubbing brat.

I shook my head. Rob shrugged and walked away with it — who could blame him?

I’ve never really thought about it before, but this is a painfully accurate metaphor for the problems women face with negotiating. If we speak up, we are perceived differently. The statistics show it, and many of us have experienced it. No wonder we’re afraid to ask.

I didn’t really start asking for raises or negotiating rates until I hit 30. I had a high tolerance for low pay, and it didn’t do me any favors. But I realized that, gender gap or not, if I wanted to reach my money goals, I needed to speak up. I have no idea if clients now view me negatively after I’ve asked for more money. But as a woman trying to reach financial freedom and close whatever pay gap might exist between me and a hypothetical male counterpart, I can’t let that stop me. Not speaking up would only reinforce that awful statistic.

*Name has been changed to protect his identity, as he was actually a nice boy. But “Rob” if you’re reading this, give me back my damn crystal.

The Role of Empowerment in Financial Freedom

Since reading and learning about this issue, I’ve also forced myself to learn more about investing. And you know, it’s not that hard. I get it. And my net worth has grown quite a bit since figuring it out.

I still think it is okay to second-guess myself and admit that I don’t have all the answers. But I am getting tired of the little things — the small, subtle bullshit I come across and can’t help but think, “If I were a man, would this be an issue?” Like when I wrote about being frugal and a commenter, assuming I don’t have my finances in order, asked why anyone should listen to me. Or the time I chimed into a conversation among clueless male investors, who were talking about how index funds are stupid, and they completely ignored me. Or even the fact that I feel self-conscious about taking ownership of my financial accomplishments. I’m afraid of coming across as cocky.

It might seem like focusing on all of this is victimizing, and maybe that is part of the reason I ignored it for so long. But it isn’t victimizing; it is empowering. It reminds me that it’s not just me. Many women are also afraid to ask for a raise or to speak up or exude the confidence they possess because modesty and meekness and silence are more socially acceptable for our gender. Acknowledging the issue also makes me proud of the financial accomplishments I have made so far — I have found financial security despite the stats not being in my favor.

And finally, I feel thankful to have worked for people who “get it.” For the most part, my bosses have always been encouraging, supportive and understanding. Considering the statistics, that’s pretty remarkable.

Source: getrichslowly.org