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Apache is functioning normally

August 5, 2024 by Brett Tams

This month marks 13 years of blogging for me. Here’s what I think about blogging after earning over $5,000,000 and over a decade of working online. When I started my blog in August 2011, I had no idea what I was jumping into. At first, it was just a hobby. I wanted to talk about…

This month marks 13 years of blogging for me. Here’s what I think about blogging after earning over $5,000,000 and over a decade of working online.

When I started my blog in August 2011, I had no idea what I was jumping into. At first, it was just a hobby. I wanted to talk about personal finance and share my own experiences. I didn’t know that blogging could actually make money!

As time went on, my blog grew. I went from writing in secret to having a community of readers who followed my journey. Blogging turned into a way of life for me. It allowed me to leave my day job and do something I love. And now, I get to share my story and tips with millions of readers each year.

Thirteen years ago, I never would have guessed this for myself!

And, I have never been more grateful, especially lately.

Running my own business and working fewer hours means I can spend lots of free time with my husband and our daughter.

It’s a dream come true.

My blog has become a great business that lets me enjoy my work, have a flexible schedule, and make a good living.

What amazes me is how little I knew about blogging when I started.

I’m not a tech person, and I’ve never thought of myself as a writer. I mention this because many people think you need to be both to start a successful blog.

Blogging was something I started and worked on in addition to my full-time day job as a financial analyst, and around two years after I started this blog, I quit my day job to blog full-time (that was back in 2013).

Some fun stats about Making Sense of Cents:

My first blog post was published on August 10, 2011. You can read it here.
I have written over 2,000 articles on Making Sense of Cents, but I deleted a bunch last year and currently have 1,379 published.
I have received 151,762 emails (this does not even include the countless emails I have deleted over the years, so the number is probably over 1 million, haha!). I haven’t included promotional emails either – the 151,762 are simply emails from my readers.
I have 65,342 comments on my blog posts. This was higher but I deleted over 6,000 comments that had broken links.
It took me six months to earn my first $100 from Making Sense of Cents.
While I no longer publish blog income reports nor share my income (you can find them all here – Blog Income Reports From A Multi-Million Blog), from 2011 to 2018, I made around $5,000,000 total. Since 2018, I have still made a healthy income each year.

Related content:

After 13 years of blogging, I have literally 2 photos of me on my laptop (the other is the featured image at the top of this blog post). Here I am in the RV we used to travel full-time in.

Here’s what I love and have learned about blogging.

1. I enjoy the freedom of being my own boss

When I first started my blog, I realized quickly that being my own boss was what I wanted.

I enjoy making my own schedule, setting my business goals, and doing what I love each day. It’s great to have total control over my work. I avoid tasks that I dislike, making my work-life balance much better.

From writing to promoting, every part of blogging is something I love doing (well, nearly every part – it’s still hard work!).

2. A flexible schedule changed my life

One of the biggest perks of being a blogger is having a flexible schedule. I can work whenever I want, whether it’s in the morning, at night, or on weekends.

This flexibility allows me to enjoy my day doing fun activities, and I can still get my work done later.

3. Freedom to work from anywhere is amazing

Another great thing about blogging is being location independent. I’ve had some amazing experiences living in different places, like in an RV or on a sailboat.

As long as I have my laptop and an internet connection, I can work. Separating work and personal life can be challenging, but the freedom it provides is worth it.

4. Success takes time

Too many bloggers give up too quickly.

Starting a blog can feel overwhelming, and not seeing quick results can be disheartening. It took me six months to earn my first $100, but that persistence has paid off in the long run.

Remember, good things take time.

5. Write when you feel inspired

I found that I write my best content when I’m not forced to write. Writing on a tight deadline used to stress me out, and now I write posts well before they’re due, allowing me to write when I’m inspired.

Currently, I have enough content to be about one month ahead, and it feels great!

Even after 13 years of writing, it is still something that I really enjoy. And, I’m nowhere out of topics to write about just yet!

Work with a view.

6. Get ready to learn

Blogging is a continuous learning journey. From understanding social media to running a website, there’s always something new to learn. Blogging isn’t an easy task, and making an income takes hard work.

But that’s what makes it interesting – it’s never boring because there’s always a new challenge.

7. Stop seeing other bloggers as competition

It’s important to see other bloggers as possible friends rather than competition.

Networking with other bloggers is important for success, such as by sharing each other’s content, attending conferences, and supporting each other. This can help everyone grow.

I’ve made great friends who are bloggers and influencers, and it’s truly a great community to be in.

8. You don’t need experience to start a blog

When I started blogging, I had no experience and didn’t know much about it. You don’t need to be a social media expert or a tech wizard to get started.

Everything can be learned along the way. Every successful blogger started without knowing everything, and with time, they learned and grew.

This is something that I love about blogging.

I’m proof that you can succeed even if you don’t know much at the start. When I began Making Sense of Cents, I didn’t even know blogs existed or that you could make money from them. I learned how to build a blog from scratch and worked hard to get where I am today. It’s not always easy, but it’s been very rewarding!

9. It’s possible to make a living blogging

One of the best things I realized is that you can actually make a good living from blogging.

Many bloggers start as a hobby and turn it into a money-making career. While it’s not a get-rich-quick scheme, consistent (and real) effort can sometimes lead to you being able to make a full-time income from blogging.

10. I love this career path

Before blogging, I absolutely dreaded the workweek.

Now, I wake up excited to work on my blog. While there are tough days, like dealing with rude comments or the algorithms changing, the joy I get from blogging makes it worth it.

I genuinely love what I do every day and I look forward to working.

11. Expect a tough beginning

I get a lot of emails from readers who are scared to start a blog and share their thoughts. They want to know my best advice for starting.

My best advice is – just go for it!

Almost every blogger I know (even the really successful ones) was scared to start too.

This is totally normal.

12. Connecting with readers is incredibly rewarding

One of the most fulfilling aspects of blogging is the connection with readers. Hearing from people who have benefited from my advice or have been inspired by my blog is amazing.

Knowing that my words can make a positive impact on someone’s life keeps me motivated to continue writing. The feedback and support from readers creates a sense of community and make all the hard work worthwhile.

I enjoy helping people around the world with my blog, and it’s truly an amazing feeling.

13. I’m very grateful for the life I get to live

Okay, I’ve kind of said this throughout most of the sections above, but I want to say it out loud – I’m so very grateful!

Blogging has given me the chance to live a life I truly enjoy. I’m grateful for the opportunities it has provided, from financial freedom to personal growth. I’ve met amazing people, traveled to incredible places, and built a career that I’m passionate about.

Every day, I wake up excited to work on my blog and connect with my readers. This journey has brought so much joy and fulfillment into my life, and I’m thankful for every moment of it.

A recent random hike on a weekday. I love having a flexible schedule.

What’s next?

Blogging is always changing. I’m always trying to find new ways to make my blog better. There are so many possibilities, and I’m excited to explore them.

Currently, I’m looking to grow my blog, like always. I have been writing more, which has been nice, and I’ve been filling content gaps on my website.

If there’s anything you’d like me to write about on Making Sense of Cents, please send me an email at [email protected] or leave a comment below.

Thank you so much for being a reader of Making Sense of Cents!

Frequently Asked Questions

Below are answers to common questions about starting a blog. I thought I’d include these here because I’m sure some of you may have questions!

How can I start my own successful blog?

Starting a successful blog involves a few key steps. First, choose a topic that you are passionate about and that others are interested in. It’s important to be consistent with your posts and to write quality content that provides value to your readers. Setting up your blog is easier with platforms like self-hosted WordPress. Remember to promote your blog on social media to reach a wider audience. I recommend reading How To Start A Successful Blog In 10 Steps to learn more.

What are some tips for keeping a blog going for over a decade?

Staying motivated to blog for a long time can be hard. One way to keep going is by setting goals you can reach and celebrating small wins. Talking with your readers and building a community can also keep you excited. It’s good to stay updated on new blogging trends and keep learning new skills.

How has the blogging landscape changed in the past 13 years?

Blogging has changed a lot in the past 13 years. At first, shorter blog posts were common, but now longer blog posts are more popular. SEO has become more important, and there are more tools to help bloggers improve their content. Social media also plays a bigger role in bringing people to blogs today.

What are effective ways to engage with readers on a long-term blog?

Engaging with readers is key to having a successful long-term blog. I recommend replying to comments and emails to make readers feel valued (because they are!). Hosting Q&A sessions and making interactive content like polls or surveys can boost engagement too. Regularly updating your blog with new content also keeps readers coming back.

Can sharing personal stories on a blog attract a steady readership?

Yes, sharing personal stories can attract and retain readers. People love connecting with real-life experiences. Personal stories make your blog more relatable and can build a loyal readership. It’s important to be genuine and honest when sharing your experiences. For me, I always try to add something personal to all of my blog posts, and I like to see that when I’m reading other people’s content as well.

If you want to start your own blog, I recommend signing up for my free How To Start a Blog Course here. In this free course, I show you how to create a blog, from the technical side to earning your first income and attracting readers.

Are you interested in starting a blog or your own business? What questions do you have for me?

Source: makingsenseofcents.com

Apache is functioning normally

August 5, 2024 by Brett Tams

Two lenders based in New Jersey have struck an M&A deal. OceanFirst Bank N.A. is acquiring Garden State Home Loans Inc., which will become a new division for the regional depositary bank, HousingWire has learned.

Garden State’s president and CEO, Justin DeJoseph, emailed employees on July 25 to announce the transaction.

In the message reviewed by HousingWire, DeJoseph wrote that by becoming part of a larger organization, Garden State gains access to a “national lending platform, greater resources, enhanced career development opportunities, and the ability to offer more comprehensive services to our clients, well beyond residential mortgage lending.”

Garden State’s website and social media page reflect the status of a “division of OceanFirst Bank N.A.”

A spokesperson for OceanFirst Financial Corp, parent of OceanFirst Bank, and DeJoseph did not reply to requests for comments.

Garden State had 34 sponsored loan officers and two active branches—in Medford (New Jersey) and Maitland (Florida)—as of Friday, per the Nationwide Multistate Licensing System (NMLS).

The company, founded in 2011 as a mortgage broker, transitioned to a mortgage lender in 2017. Its website says the lender has funded over $5.6 billion in 19,000 loans since its foundation. Meanwhile, OceanFirst Bank, founded in 1902, had about 200 loan officers as of Friday, the NMLS data shows.

In the email to employees, DeJoseph wrote that selling the company will enable Garden State to provide more products without changing its processes.

DeJoseph also wrote that the deal did not change the company’s expansion plans. “We are actively hiring both operational and sales personnel to strengthen our team,” he said. “The goal is increasing our volume year over year and double our staff by mid-next year. This will allow us to hit our goals of doing $2 billion in volume in 2025.”

Apache is functioning normally

August 5, 2024 by Brett Tams

Managing your personal finances can feel overwhelming, but with the right steps, you can take control and gain peace of mind. Whether you’re looking to pay off debt, save for a big purchase, or just want to feel more in control, these steps will guide you to financial stability.

In this post, you’ll discover 12 fail-proof steps to organize your personal finances. These practical tips will help you create a budget, track your expenses, and plan for the future, ensuring you can make smart financial decisions and stay on top of your money. Let’s get started on the path to better financial organization!

Why Organize your Finances?

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Organizing your finances makes life easier and less stressful. You can see where your money goes and save more. Thus, knowing your bills are paid in full.

1. Inventory all of Your Accounts

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List every bank, credit, and investment account you have. Knowing what you have helps manage your money better.

Learn More: Grab a copy of our POPULAR budget binder!

2. Figure Out Your Net Worth

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Calculate your net worth by subtracting debts from assets. This gives a clear picture of your financial health. Even if your net worth is negative, there is only one way up.

To learn more: How to Calculate Your Liquid Net Worth and Know What You’re Worth

3. Create a Budget Binder

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Use a budget binder to track spending and savings. It helps keep your financial life organized and on track.

To learn more: How to Make a Budget Binder to Motivate Your Financial Goals

4. Separate Email for Finances

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Create a separate email for all financial matters. It keeps everything organized and easy to find when needed.

5. Use a Bill Payment Organizer

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Track all your bills with a bill payment organizer. This ensures you never miss a payment and stay on budget.

To learn more: 5 Effective Bill Calendar Strategies That Boost Your Finances

6. Set Money Goals

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Define your financial goals, like saving for a car or paying off debt. Clear goals help you stay focused. This is something that should not be overlooked.

To learn more: Powerful Truth Behind Money Goals that you Need to Know

7. Know Your Income and Expenses

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Track your income and expenses to see where your money goes. This helps in making informed financial decisions.

To learn more: What is Annual Income? Meaning, Gross, Net, and How to Calculate

8. Find Out Your Credit Score Number

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Check your credit score regularly. Knowing your score helps you improve it and get better interest rates.

9. Update Your Estate Documents

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Keep your estate documents up to date. This protects your assets and ensures your wishes are followed. This is something that must be reviewed every couple of years.

10. Review Your Insurance

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Regularly review insurance policies to ensure you have adequate coverage at the best price. This is for auto, homeowners, or umbrella policies.

11. Use a Password Manager

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Store all your financial passwords securely in a password manager. This keeps your accounts safe and accessible. Bitwarden is a preferred choice by many security analysts.

12. Tell Someone

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Share your financial plans with a trusted person. Having someone to talk to helps stay accountable and focused.

What is your next step to organize your personal finances?

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Now that you know the steps, start today. A little organization can make a big difference in your financial life. Plus you can relieve stress.

To learn more: How to Organize Personal Finances in 8 Simple Steps

Did the post resonate with you?

More importantly, did I answer the questions you have about this topic? Let me know in the comments if I can help in some other way!

Your comments are not just welcomed; they’re an integral part of our community. Let’s continue the conversation and explore how these ideas align with your journey towards Money Bliss.

Source: moneybliss.org

Apache is functioning normally

August 4, 2024 by Brett Tams

Living frugally doesn’t mean giving up the things you love. It’s about making smart choices and finding ways to save money without sacrificing comfort.

In this post, you’ll find the top frugal living tips for around the house. These practical ideas will help you cut costs on everyday expenses, reduce waste, and make your home more efficient. Whether you’re looking to save on your utility bills, groceries, or household items, these tips will help you stretch your budget and make the most of what you have.

Adjust the temperature

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Turn down the heat or air conditioning at night to save on energy bills. It’s good for your wallet and your health.

Cut back cell phone plan

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Save money by reducing your cell phone plan’s data plan. Make sure it still meets your needs. This is especially true for preteen or teen cell phone plans.

Make clothes last longer

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Wash clothes less often and use gentle detergents to keep them looking new. This helps you spend less on clothes.

Shop for clothing on clearance

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Buy clothes on clearance to save money. I have found that shopping off-season can get you great deals. Plus only buy what you truly need.

Learn More: How to Shop for Clothes on a Budget

Eliminate cable or satellite TV

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Save money by streaming shows online instead of paying for cable or satellite TV. You may opt for monthly billing to binge watch shows.

Switch cell phones

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Consider switching to a cheaper cell phone provider. There are so many new providers to the market. Just check if they offer good service in your area.

Look into your energy usage

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Adjust your thermostat a few degrees to save money on energy. Invest in a comfy sweatshirt to stay warm.

Limit trips to the salon

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Save money by cutting your own hair or letting your natural color grow out. This was one of the ways we paid off debt faster!

Turn off unused lights

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Turn off lights when you leave a room to save on your electricity bill. This is a simple adage, but it still holds true.

Buy in bulk

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Save money by buying items like toilet paper and toothpaste in bulk. Be wise with what you buy that will you actually use the extra items.

Save money on laundry

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Wash clothes at night and hang them up to dry. This saves money and keeps clothes in good shape. For U.K. folks, this is a normal practice.

Check out the Must Haves for a Frugal Home

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Incorporating these frugal living tips into your home can significantly reduce your overall costs. By embracing a minimalist approach, being mindful of your spending, and making smart choices, you can create a comfortable and budget-friendly living space that aligns with your financial goals. Remember, small changes can lead to big savings over time, so start implementing these frugal home essentials today for a brighter and more financially secure future.

To learn more: 25 Frugal Home Must Haves To Save Money for Clean and Organized Home

Did the post resonate with you?

More importantly, did I answer the questions you have about this topic? Let me know in the comments if I can help in some other way!

Your comments are not just welcomed; they’re an integral part of our community. Let’s continue the conversation and explore how these ideas align with your journey towards Money Bliss.

Source: moneybliss.org

Apache is functioning normally

August 3, 2024 by Brett Tams

In addition to spoiling them with toys and ice cream, many grandparents also want to help secure a solid financial future for their grandkids. That can mean setting up a custodial account, considering tax-advantaged savings options, and exploring other ways to start building a child’s wealth.

Below, you’ll learn about the different ways to save money for your grandkids, plus the pros and cons of each.

Why Open an Account for Grandchildren?

Sure, your grandkids might prefer a new video game or Lego set, but you’ll do them a favor, today and tomorrow, by opening a savings account for them. Here are a couple of good reasons to open a savings account for your grandchildren.

Teaching Financial Literacy Early

Money management skills are crucial, but personal finance education can be virtually nonexistent during school. It’s not typical for schools to teach kids how to balance a checkbook, how to invest in stocks, how to save for a down payment on a house, and how to file taxes.

Thus, it’s up to parents — and grandparents — to equip the next generation with financial literacy. Opening an account for your grandchildren can help teach them concepts such as interest, budgeting, and investing.

Getting a Head Start for College and Life

While teaching children how to manage money can give them a head start on the path to financial wellness, so too can providing them with a nest egg that can grow over time through various savings and investing accounts. Consider these options:

• When you open a savings account for grandchildren early on, they could wind up having a sizable chunk of cash in young adulthood to put toward their first car or even a house down payment.

• A 529 college savings plan could help them avoid taking on too much debt from student loans.

• Retirement accounts, such as a Roth IRA, can help them achieve their retirement goals, even if those are more than half a century away. Remember, the earlier someone starts investing, the more they stand to earn in the long run.

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Types of Accounts to Consider

Grandparents have many options when it comes to opening an account for their grandchildren, including:

Savings, CDs, and Bonds

Many banks and credit unions offer savings accounts designed for kids. Do a quick search for “best savings accounts for grandchildren” or you could start by seeing if your own bank offers such an account.

Having money in savings at an early age will let your grandkids benefit from compounding interest, especially if you find a high-yield savings account for kids.

You can also consider opening a certificate of deposit (CD) or purchasing savings bonds for your grandchildren. CDs are savings accounts that typically provide a higher interest rate than a standard savings account in exchange for keeping your money in the account for a fixed period of time. Savings bonds, issued by the U.S. Department of Treasury, are a very low risk, longer-term investment that provides interest in return for lending the government money.

With both of these options, the money is less liquid, but if the CD or bond matures when your grandchild is older, they stand to have a reliable source of funds they can use in future years.

Custodial Accounts (UGMA/UTMA)

Beyond savings accounts for grandchildren, you can consider helping your grandkids actually start investing with a custodial account, through the Uniform Gifts to Minors Act (UGMA) or the Uniform Transfers to Minors Act (UTMA). Once your grandchild is between 18 and 25 (the exact age varies by state), they’ll take control of the account.

These accounts are taxable (meaning you will owe taxes on interest earned) and have no contribution limits. They’re an easy way to purchase stocks, mutual funds, and other securities for your grandchild — and you can even transfer your own securities into the custodial account.

529 College Savings Plans

The cost of college tuition continues to skyrocket, meaning it’s never too early to start saving. There are several benefits of a 529 college savings plan: While the contributions to this qualified tuition plan aren’t tax-deductible, your grandchild’s distributions from the account tax-free at the federal level, as long as the money is used for qualifying expenses.

A 529 college savings may have “college” in the name, but your grandchild can also use it for other higher education programs, such as a trade or vocational school. You can also roll over 529 funds into a Roth IRA if your grandkids don’t use all (or any) of the funds.

Contributions to a grandchild’s 529 account are not deductible on your federal income tax return. However, close to 30 states offer either a deduction or credit for this kind of contribution.
Another consideration: There’s an annual limit to how much you can give as a gift without triggering taxes. For 2024, for instance, the figure is $18,000 per giftee. If you were to put more than that into a 529 for a grandchild, you would have to pay a gift tax bill.

IRAs for Minors

Similar to custodial investment accounts, you can open custodial retirement accounts for your grandchildren, including a traditional IRA and a Roth IRA. While your grandkid won’t benefit from this account for decades, starting them early on the path to retirement savings means they could have considerably more money to work with when they reach retirement age.

However, it’s important to note that opening an IRA requires the child to have earned income in a given year. For teens, this can make sense. For a newborn, it is unlikely to be a viable option.

When making contributions to an IRA for a grandchild, note that the amount you deposit is subject to a gift tax exclusion before it becomes taxable. For 2024, this allows up to $18,000 per giftee. Funds given beyond that amount might mean you, the donor, are liable for taxes, though other factors will need to be considered to determine any tax burden.

Choosing the Right Account

Not sure how to choose the right savings account for your grandchildren? Here are some things to consider:

Comparing Interest Rates and Fees

If you’re opening a savings account, compare interest rates — you want an account with a high yield so that the money compounds more quickly over time. For example, currently the average interest rate for standard savings accounts is 0.45%, while the figure for high-yield savings accounts (often from online-only banks) can be several times that number.

For custodial accounts, you’ll want options with low or no fees. It can be wise to shop around and see what options you have from different banks and brokerage firms.

Recommended: How Old Do You Have to Be to Open a Bank Account?

Accessibility and Withdrawal Rules

Certain accounts allow your grandchildren to access funds sooner, while others (like IRAs) have strict rules about when they can withdraw funds and what the funds can be used for (as is the case with 529 plans). Think about the specific timeline and use case you envision for your grandchildren. Sometimes, opening more than one type of account makes sense, depending on how many goals you want to enable for your children’s kids.

Tax Implications and Benefits

Some accounts have tax-deductible contributions; others have tax-free withdrawals. For example, withdrawals from a 529 account are not usually taxable, provided they are used for qualified educational expenses. With a Roth IRA, withdrawals made after your child is older than 59 ½ (as hard as that may be to imagine) are not taxable. With a traditional IRA, taxes are paid when the money is withdrawn, usually in retirement, and are taxable.

Speaking with a financial advisor can help you understand the tax implications of each type of account you’re considering to better understand what you might pay — and what your grandchild might pay.

Setting up and Contributing to the Account

Ready to open a savings account for your grandchildren? Here’s how it works:

Opening and Funding the Account

Follow the bank’s or investment firm’s guidelines for opening the account. You will likely need some specific information from the grandchild’s parents to open the account. You’ll also need to deposit money into the account to start the nest egg. Custodial accounts may even let you transfer your own assets into the account.

Automatic Transfers and Recurring Contributions

If you’d like, you may be able to set up recurring transfers into the account. Perhaps you want a recurring transfer every holiday season or on your grandchild’s birthday. Work with the financial institution to set up these contributions — and perhaps find out how other loved ones might be able to contribute as well.

Monitoring and Managing the Account

After opening an account, it’s important to monitor it and see how the funds grow over time. Just as importantly, once your grandchild is a little older, it’s a good idea to sit down and review the account with them:

• If it’s a savings account, walk them through how compound interest works.

• If it’s a 529 plan, talk to them about college costs and how student loans work.

• If it’s a custodial account, talk to them about the basics of investing and the importance of saving for retirement.

The Takeaway

It’s never too early to start thinking about your grandchild’s future. Savings accounts, 529 plans, and custodial accounts offer several ways for you to give them money that will help them with college, general expenses, and even retirement.

While saving for grandkids is important, it’s also crucial that you take care of your own finances.

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FAQ

What are the contribution limits for custodial accounts?

There are no contribution limits for UGMA/UTMA custodial accounts, but you can only contribute up to a certain amount to avoid gift-tax implications (this changes each year). Contribution limits apply for custodial IRAs just as they would for regular IRAs.

Can grandparents open a 529 plan for grandchildren?

Yes, grandparents can open a 529 plan for grandchildren. If the grandchild’s parents have already set up a 529 plan, grandparents can also contribute to that plan directly. This will simplify account management and withdrawals for the recipient of the funds.

What happens to the account if the grandchild doesn’t need the funds?

If a grandchild doesn’t need funds from a 529 plan for college, they can still use them for trade or vocational schools or roll them into an IRA. Grandparents can also reassign the 529 plan to another grandchild.

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The SoFi Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

SoFi members with direct deposit activity can earn 4.60% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Direct Deposit”) via the Automated Clearing House (“ACH”) Network during a 30-day Evaluation Period (as defined below). Deposits that are not from an employer or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Direct Deposit activity. There is no minimum Direct Deposit amount required to qualify for the stated interest rate.

As an alternative to direct deposit, SoFi members with Qualifying Deposits can earn 4.60% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Qualifying Deposits means one or more deposits that, in the aggregate, are equal to or greater than $5,000 to an account holder’s SoFi Checking and Savings account (“Qualifying Deposits”) during a 30-day Evaluation Period (as defined below). Qualifying Deposits only include those deposits from the following eligible sources: (i) ACH transfers, (ii) inbound wire transfers, (iii) peer-to-peer transfers (i.e., external transfers from PayPal, Venmo, etc. and internal peer-to-peer transfers from a SoFi account belonging to another account holder), (iv) check deposits, (v) instant funding to your SoFi Bank Debit Card, (vi) push payments to your SoFi Bank Debit Card, and (vii) cash deposits. Qualifying Deposits do not include: (i) transfers between an account holder’s Checking account, Savings account, and/or Vaults; (ii) interest payments; (iii) bonuses issued by SoFi Bank or its affiliates; or (iv) credits, reversals, and refunds from SoFi Bank, N.A. (“SoFi Bank”) or from a merchant.

SoFi Bank shall, in its sole discretion, assess each account holder’s Direct Deposit activity and Qualifying Deposits throughout each 30-Day Evaluation Period to determine the applicability of rates and may request additional documentation for verification of eligibility. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the “30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Upon receiving a Direct Deposit or $5,000 in Qualifying Deposits to your account, you will begin earning 4.60% APY on savings balances (including Vaults) and 0.50% on checking balances on or before the following calendar day. You will continue to earn these APYs for (i) the remainder of the current 30-Day Evaluation Period and through the end of the subsequent 30-Day Evaluation Period and (ii) any following 30-day Evaluation Periods during which SoFi Bank determines you to have Direct Deposit activity or $5,000 in Qualifying Deposits without interruption.

SoFi Bank reserves the right to grant a grace period to account holders following a change in Direct Deposit activity or Qualifying Deposits activity before adjusting rates. If SoFi Bank grants you a grace period, the dates for such grace period will be reflected on the APY Details page of your account. If SoFi Bank determines that you did not have Direct Deposit activity or $5,000 in Qualifying Deposits during the current 30-day Evaluation Period and, if applicable, the grace period, then you will begin earning the rates earned by account holders without either Direct Deposit or Qualifying Deposits until you have Direct Deposit activity or $5,000 in Qualifying Deposits in a subsequent 30-Day Evaluation Period. For the avoidance of doubt, an account holder with both Direct Deposit activity and Qualifying Deposits will earn the rates earned by account holders with Direct Deposit.

Members without either Direct Deposit activity or Qualifying Deposits, as determined by SoFi Bank, during a 30-Day Evaluation Period and, if applicable, the grace period, will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances.

Interest rates are variable and subject to change at any time. These rates are current as of 10/24/2023. There is no minimum balance requirement. Additional information can be found at https://www.sofi.com/legal/banking-rate-sheet.

*Awards or rankings from NerdWallet are not indicative of future success or results. This award and its ratings are independently determined and awarded by their respective publications.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.

SOBNK-Q324-008

Source: sofi.com

Apache is functioning normally

August 3, 2024 by Brett Tams

It’s almost become a trope at this point. Your friend’s aunt bought some Apple stock way back when and now lives full-time on a yacht. Or your cousin knows somebody who knows somebody who bought some Microsoft stock for a few dollars a share in the ’80s, and now they’re a multimillionaire.

These stories are practically the stuff of urban legend. But if you’re looking to buy a first tech stock or want to add some diversity to your portfolio, you may find the reality to be slightly different from the stories. There are many kinds of tech stocks, each with its own performance trends, pros, and cons. Here are a few fundamental truths worth knowing about investing in tech stocks.

Why Investors Are Investing in Technology

Much of the recent growth in the stock market overall has been concentrated in the shares of technology companies. Technology stocks, as measured by the S&P Technology Select Sector Index, rose 129.8%, or 18.11% annually, during the past five years. In contrast, during that period, the broad S&P 500 Index grew by 60.2%, or 9.9% annually.

The top five most valuable companies in the S&P 500 are technology-related companies. These firms — Apple, Microsoft, Alphabet (the parent company of Google), Amazon, and Tesla — have an average market capitalization, or overall stock value, near $1 trillion or more. And during the past five years, the stocks of these companies have experienced substantial growth.

Five Largest Companies in the S&P 500 Index
Company	Ticker	Market Cap^*	5-year growth^*
Apple	AAPL	$2.5 trillion	302.5%
Microsoft	MSFT	$1.9 trillion	256.0%
Alphabet	GOOGL	$1.4 trillion	134.7%
Amazon	AMZN	$1.3 trillion	170.6%
Tesla	TSLA	$868.5 billion	1,104.6%
^*As of Sep. 2, 2022

Investors flock to technology companies, especially the previously mentioned tech giants, because they’re often considered solid businesses.

The products of technology companies — especially software companies — are relatively cheap to reproduce but can be quite expensive to buy. Apple, for example, prices iPhones ahead of their competitors, sells a lot of them, and then operates an ecosystem of apps and services that generate steady revenue. Amazon’s success is attributed to the effectiveness of its operations and low prices. For Alphabet, the sheer scope of its networks and the popularity of its services allows them to sell more ads than its competitors.

Aside from the giants that have established business models, many investors pour money into tech companies due to the promise of future earnings. Even when tech companies are not profitable or see regular cash flows, investors will still support the stocks because of the potential for future earnings. Companies like Amazon and Tesla took years before they turned steady profits.

Get up to $1,000 in stock when you fund a new Active Invest account.*

Access stock trading, options, auto investing, IRAs, and more. Get started in just a few minutes.

Popular Technology Stocks to Own

The technology industry is incredibly diverse. Beyond the five companies mentioned above, these are some of investors’ most widely held technology stocks.

Companies in the S&P Technology Select Sector Index
Company	Ticker	Technology Sector	Market Cap^*	5-year growth^*
Nvidia	NVDA	Semiconductors	$539.4 billion	233.8%
Broadcom	AVGO	Semiconductors	$198.7 billion	104.7%
Adobe	ADBE	Software	$219.7 billion	137.0%
Cisco Systems	CSCO	Communications Equipment	$187.5 billion	41.6%
Salesforce	CRM	Software	$153.5 billion	59.9%
^*As of Sep. 2, 2022

How Can You Invest in Tech Stocks?

At the most basic level, you can invest in tech stock by buying the individual stocks of an appealing company.

Another way to invest in tech is by trading technology-focused exchange-traded funds (ETFs) or mutual funds. Tech ETFs and mutual funds allow investors to diversify their investments in a single security, which may be less risky than buying a specific company’s stock.

If you are interested in a particular tech sector — like artificial intelligence or green tech — you can invest in more targeted funds rather than broad-based technology-focused ETFs.

Different Sectors for Technological Investment

The technology industry is vast, filled with companies specializing in different areas of the market. For an investor, this means it’s possible to diversify, investing in tech stocks across various sectors.

Artificial Intelligence

Artificial intelligence (AI), which refers to ways that computers can process data and automate decision-making that humans would otherwise do, is a burgeoning tech sector. Many companies are operating in this sector, using new technologies to support fields like finance and healthcare. Artificial Intelligence, along with the related field of Machine Learning (ML), has long been one of the most exciting technology areas.

Transportation

Another bustling sector of the industry is transportation. Tech underlies all transportation, and some of the most exciting companies are building electric cars, creating the batteries and software that support the navigation and operational systems in automobiles, or using software to connect drivers and passengers.

💡 Recommended: Investing in Transportation Stocks for Beginners

Streaming

Streaming companies have completely revolutionized the entertainment industry. These companies offer direct-to-consumer content, including shows and movies, that is bundled in a monthly subscription. There are standalone streaming companies, companies that include streaming as an ever-growing part of their business, and companies that build digital and physical infrastructure to support streaming services.

Information Technology

Information technology (IT) is one of the broadest and most valuable sectors of the technology industry. It typically refers to how businesses store, transmit, and use information and data within and between networks of computers.

Semiconductor Technology

Semiconductors are arguably the foundation of all technology. Semiconductor companies make components found in phones, computers, and other electronic devices. The manufacturing process for semiconductors is incredibly precise and expensive, making the industry ruthlessly competitive.

Web 3.0

In recent years, cryptocurrency, blockchain technology, and Web 3.0 have been the focus of many investors. That’s because computer engineers and companies are now developing new technologies that will allow users to interact with the web in a more interactive, personal, and secure way. These new technologies, like blockchain, crypto, and the metaverse, may usher in new opportunities for investors.

💡 Recommended: Web 3.0 Guide for Beginners

Evaluating a Tech Stock Before Investing

When investing, you must carefully evaluate the stocks you’re interested in.

Technology companies, in particular, tend to have high price-to-earnings (P/E) ratios, meaning that the company’s profits may seem low compared to the price of their shares. This is often because investors are expecting rapid future growth.

Other key metrics include price-to-sales, which compares the stock price to the company’s revenue. This is something to consider in the case of a fast-growing company that doesn’t yet have substantial profits.

Another critical factor is the company’s overall revenue growth — the pace at which revenue increases year-over-year or even quarter-over-quarter.

A more detailed metric that can be useful for tech companies is “gross margins,” which is the difference between a company’s revenue or sales and the cost of generating those sales, divided by total revenue. The resulting percentage indicates whether the company can make money on the actual product it sells and how much. If the company’s other costs can go down as a percentage of total revenue, profits can grow more quickly.

💡 Recommended: The Ultimate List of Financial Ratios

Pros of Adding Tech Stocks to a Portfolio

There are many benefits to investing in tech stocks, most notably attractive returns. With artificial intelligence, blockchain, and Web 3.0 technologies on the horizon, there are increasing opportunities to invest in this sector. These are some possible benefits of adding tech stocks to a portfolio.

• There are many blue chip tech companies. Blue chip stocks typically refer to stocks from long-established companies with good returns. Today’s blue chips include huge tech companies like Apple, Alphabet, and Amazon.

• Some tech stocks pay dividends. There can be benefits to dividend-paying stocks, including consistent earnings, which might indicate that the company is positioned to deliver strong performance.

• Investors can buy shares in things they use. Most people use some tech in their daily routines. You might have a smartphone, or a laptop, hop on a social network, or order groceries or clothing online. With a tech stock, investors can buy a little piece of the companies they know and like.

• It’s easy to diversify in tech. Tech stocks aren’t a monolith. Investors can add diversity to their portfolio by purchasing different aspects of the tech sector, for example, buying stock in social media companies, smartphone glass manufacturers, hardware makers, software companies, and even green tech companies.

A great thing about the tech sector investing space is that there’s so much of it out there, and investors should be able to find something that works for their goals, ambition, and knowledge base.

💡 Recommended: How to Invest in Web 3.0 for Beginners

Cons of Investing in Technology

All stocks come with their own risks and potential downsides. Tech stocks are no different. As with any stock purchase, it’s helpful to do a good amount of research before buying a stock. Take these considerations into account before deciding to pull the trigger on a tech stock.

• The potential for tech backlash. Some experts think increased regulation and government scrutiny could lead to a backlash against tech stocks that could affect their prospects. They cite 2018’s passage of the European Union’s General Data Protection Regulation (GDPR) and Facebook’s hearings before Congress as evidence that even more regulation might be coming in the future. But like many other sectors of the stock market, various tech stocks react differently in the face of volatility.

• Buying what you know can be complicated. You might have a solid grasp on some social media giants, for example, but some of the nuances of emerging semiconductor firms might be a little harder to wrap your head around. You may have to ask yourself if you want to invest in a company that you might not fully understand.

• Stocks may be priced too high. Some tech companies, like Amazon and Google, often have shares that venture into the four figures, so for a first-time tech stock investor, those companies may feel out of reach. However, many tech companies occasionally engage in a stock split to decrease their share prices.

Do You See the Most Returns When Investing in Tech Stocks?

Most returns when investing in tech stock can vary depending on the specific company and the current market conditions. Nonetheless, many investors believe that tech stocks generally have a higher potential for growth than other types of stocks, making them a good choice for those looking to generate returns. During the past five years, technology stocks rose a total of 129.8%, while the broad S&P 500 Index grew by 60.2%.

But just because tech stocks have outperformed other industries, it doesn’t mean that it will always be that way. During 2022, for example, tech stocks have declined 22.7% through Aug., while the S&P 500 fell 16.8% year-to-date.

💡 Recommended: Lessons From the Dotcom Bubble

How Frequently Should You Invest in Tech Stocks?

The frequency you invest in tech stocks will depend on your individual investment goals and risk tolerance. Some investors may choose to trade tech stocks monthly or quarterly to take advantage of any short-term price fluctuations. Others may invest in tech stocks on a more long-term basis, holding onto their shares for several years to benefit from any potential long-term growth.

What Percentage of Your Portfolio Should Be Tech Stocks?

The percentage of a portfolio allocated to tech stocks differs for every investor. Some experts recommend that investors allocate no more than 20-30% of their investment portfolio to tech stocks, but this percentage may be higher or lower depending on the investor’s risk tolerance, investment goals, and other factors.

Mistakes to Avoid When Investing in Tech Stocks

Many investors are drawn to tech stocks because of the potential for a significant return. But the allure of large gains may cause investors to take on too much risk or lose sight of their overall investment goals.

For example, you don’t want to invest in a tech stock just because it’s popular. It’s easy to fear you are missing out when you see a particular stock’s price skyrocket. You may hear about a tech stock lot in the financial media, and you know many people who say they own it, but that doesn’t mean it’s a good investment.

Additionally, you should avoid investing in a stock just because the company is a household name. While sometimes the stocks of well-known companies do well, there are other cases of these companies not being well run and thus not being a good investment.

The Takeaway

The tech sector is vast and getting bigger by the moment as blockchain, artificial intelligence, and other technologies push boundaries. New founders are working on startups in garages and basements, potentially developing the next new thing that could change the world. Investors looking to invest in tech stocks can find a stock or ETF out there that could meet their needs. For instance, SoFi ETFs can remove some of the headache from picking individual stocks by allowing you to invest in a bundle of companies all at once.

SoFi makes it easy to invest in tech stocks and more with an online brokerage account. With the SoFi app, you can trade stocks, ETFs, and fractional shares with no commissions for as little as $5. You’ll also get real time investing news, curated content, and other relevant data for the stocks that matter most to you. For a limited time, funding an account gives you the opportunity to win up to $1,000 in the stock of your choice. All you have to do is open and fund a SoFi Invest account.

Get started trading technology stocks and ETFs with SoFi Invest® today

FAQ

Why is investing in tech stocks so popular?

Tech stocks are popular because they are some of the largest and best performing assets in the financial markets. As a whole, the technology sector is one of the fastest growing sectors in the economy. This means that there are a lot of new and innovative companies that are constantly coming out with new products and services. This provides investors with a lot of growth potential.

How can you start investing in tech stocks today?

You can start investing in tech stocks by trading individual stocks, invest in a tech-focused mutual fund or ETF, or invest in a more general stock market index fund that includes a mix of tech and non-tech companies.

SoFi Invest®

INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUE

SoFi Invest encompasses two distinct companies, with various products and services offered to investors as described below:
Individual customer accounts may be subject to the terms applicable to one or more of these platforms.

1) Automated Investing and advisory services are provided by SoFi Wealth LLC, an SEC-registered investment adviser (“SoFi Wealth“). Brokerage services are provided to SoFi Wealth LLC by SoFi Securities LLC.

2) Active Investing and brokerage services are provided by SoFi Securities LLC, Member FINRA (www.finra.org)/SIPC(www.sipc.org). Clearing and custody of all securities are provided by APEX Clearing Corporation.

For additional disclosures related to the SoFi Invest platforms described above please visit SoFi.com/legal.

Neither the Investment Advisor Representatives of SoFi Wealth, nor the Registered Representatives of SoFi Securities are compensated for the sale of any product or service sold through any SoFi Invest platform.

Exchange Traded Funds (ETFs): Investors should carefully consider the information contained in the prospectus, which contains the Fund’s investment objectives, risks, charges, expenses, and other relevant information. You may obtain a prospectus from the Fund company’s website or by email customer service at [email protected]. Please read the prospectus carefully prior to investing.

Shares of ETFs must be bought and sold at market price, which can vary significantly from the Fund’s net asset value (NAV). Investment returns are subject to market volatility and shares may be worth more or less their original value when redeemed. The diversification of an ETF will not protect against loss. An ETF may not achieve its stated investment objective. Rebalancing and other activities within the fund may be subject to tax consequences.

Claw Promotion: Customer must fund their Active Invest account with at least $25 within 30 days of opening the account. Probability of customer receiving $1,000 is 0.028%. See full terms and conditions.

SOIN0822023

Source: sofi.com

Apache is functioning normally

August 1, 2024 by Brett Tams

Learning the best shopping habits can make a big difference in how much money you save. Whether you’re shopping for groceries, clothes, or everyday essentials, smart spending habits can help you keep more money in your pocket. This post will guide you through the top shopping habits that can help you spend less and save more.

Stay out of stores

Image Credit: Zhudifeng from Getty Images.

Avoid the mall. This simple change can save a lot on your budget. Find frugal alternatives to buying everything from food to clothes in big stores. And if you must shop, make sure to use a list!

Have a no-spend weekend

Image Credit: Nopphon Pattanasri from Getty Images.

A no-spend weekend is when you try to save money by not spending. It’s a great way to get back on track financially. Try using our no-spend printables to help.

To learn more: No Spend Challenge: The #1 Fastest Way To Save Money

Write down what you want to buy

Image Credit: Rido

When you’re tempted by a purchase, take five minutes to write down what you want. Wait at least three days before deciding. This helps you avoid impulse buys.

To learn more: 5 Effective Bill Calendar Strategies That Boost Your Finances

Buy only used items

Image Credit: Cyano66 from Getty Images.

Buying used items saves money. You might not find exactly what you want, but it’s worth it for the savings. Also, start looking for used items on a Buy Nothing Group.

Skip paying the full price

Image Credit: Juanmonino from Getty Images Signature.

Many thrifty people avoid paying full price by looking for discounts and promotions. This helps you spend less money on the things you need.

Learn More: Why a Thrifty Lifestyle is Something You Need Today

Be wary of subscriptions

Image Credit: AndreyPopov from Getty Images.

Many online subscriptions seem cheap but can add up. Review your subscriptions to make sure you’re getting your money’s worth.

Trim unused subscriptions

Image Credit: Ilonakozhevnikova.

Unused subscriptions can waste money. Cancel any that you don’t use to save money. This is especially true if you started with a free trial and forgot to cancel.

Get cashback on everyday products

Image Credit: Kaspars Grinvalds.

Online shopping can help you get cashback on everyday products. Use comparison websites to find the best deals and save money.

Learn More: Best Cash Back Apps: How to Earn Money and Save Money

Free Stuff

Image Credit: Andrii Dodonov from Getty Images.

Enjoy free events and activities in your area. There are many fun things to do that don’t cost any money. Free fun equals more money in your bank!

Learn More: 105 Fun Things To Do With No Money

Use the Library

Image Credit: Ozgurdonmaz from Getty Images Signature.

For magazines or books, check the library instead of buying new ones. It’s a great way to save money. Only buy a book if you absolutely love it or need it for reference.

Buy clothes during the off season

Image Credit: ND3000 from Getty Images.

Buying clothes during the off season means finding great deals. Wait for sales to get the best prices. Be a savvy shopper!

To learn more: How to Shop for Clothes on a Budget

Shop thrift stores

Image Credit: Daisy-Daisy from Getty Images.

Visit thrift stores and garage sales for cheap finds. You might even flip items for a profit.

To learn more: 76 Easy Thrifty Tips & Tricks to Live a More Frugal Lifestyle

Avoid Impulse Purchases

Image Credit: Dean Drobot.

When tempted by an impulse purchase, wait 24 hours before buying. This gives you time to decide if you really need the item.

Try to reduce waste

Image Credit: Doidam10.

Reduce waste by thinking about what you really need. This helps you save money and be more mindful about your purchases.

To learn more: How to Be Frugal Green: 91+ Tips to Save Money and Environment

Set Savings Goals

Image Credit: Shutthiphong Chandaeng from Getty Images.

Set specific savings goals and track your progress. This can motivate you to save more and spend less.

To learn more: 10 Must Have Financial Goals to Achieve

See More ideas to Save Money

Image Credit: Professor25 from Getty Images Signature.

Saving money doesn’t have to be complicated. By incorporating these simple habits into your daily routine, you can make a big difference in your financial situation. Start today, and watch how these changes can lead to a more secure and stress-free future. Remember, it’s the small actions that add up to big savings.

To learn more: Top 10 Hot Frugal Living Tips You Need Now

Did the post resonate with you?

More importantly, did I answer the questions you have about this topic? Let me know in the comments if I can help in some other way!

Your comments are not just welcomed; they’re an integral part of our community. Let’s continue the conversation and explore how these ideas align with your journey towards Money Bliss.

Source: moneybliss.org

Apache is functioning normally

August 1, 2024 by Brett Tams

The outlook for first-time home buyers in the US may seem bleak with high borrowing costs, home prices, and inflation. This may lead many prospective buyers to continue renting, as it’s generally seen as more affordable. But is renting truly the most cost-effective option? We crunched the numbers and found that in several cities across the US, it is still possible to achieve your homeownership dreams without depleting your savings. In some cities, it’s even possible to transition from renting to owning while saving money in the process.

Zoocasa analyzed data for 111 markets across the US and compared monthly rental prices and monthly mortgage payments for the median single-family home in each. Additional costs for each were not considered, such as utilities or property taxes. Rental price numbers were sourced from Zumper’s June national rent report, while the monthly mortgage payments were calculated using Nerd Wallet’s Mortgage Payment Calculator assuming an 8% down payment, a 30-year amortization, and a fixed rate of 6.78%. According to the National Association of Realtor’s 2023 Profile of Home Buyers and Sellers, the typical down payment for first-time buyers was 8%. Median single-family home prices were sourced from the National Association of Realtors.

In the majority of cities analyzed, renters transitioning to homeownership will face higher monthly mortgage payments compared to the average rent for a 2-bedroom apartment. However, there are 12 cities where homeownership is more affordable than renting.

New York, NY has the largest gap between monthly rent and mortgage payments at $781, but it also has some of the highest average rents and mortgage payments in the country, making it a challenging city for both renters and buyers.

Pittsburgh, PA, and Syracuse, NY are two more affordable cities for first-time home buyers thanks to their low median home prices. In Pittsburgh, the monthly cost of renting a 2-bedroom apartment is $1,550 while the average monthly mortgage payment is $1,240, a $310 difference. Similarly, in Syracuse, the monthly cost of renting a 2-bedroom apartment is $1,500, while the average monthly mortgage payment is $310 lower at $1,190.

The least expensive mortgage payments can be found in Peoria, IL, and South Bend, IN, with monthly mortgage payments of $761 and $1,077, respectively. The difference between monthly rent and mortgage payments is greater in Peoria, where the monthly mortgage payment is $289 lower. In South Bend, the difference is much smaller, at just $55.

The six other cities where owning is more affordable than renting are Chicago, Rochester, Miami, Cleveland, Charleston, Buffalo, and New Orleans. Among these, Cleveland has the lowest median single-family home price at $191,900, bringing the average monthly mortgage payment to $1,149. In comparison, renting a 2-bedroom apartment in Cleveland would cost $1,250, which is about $100 more than the monthly mortgage payment.

Although buying is more expensive than renting in most U.S. cities, the difference is relatively minor in 48 cities, where the gap between rent and mortgage is less than $500. This includes cities such as San Antonio, Nashville, and Arlington. First-time home buyers in cities like Atlanta, Louisville, and Dallas will have an even easier time transitioning from renting to buying, with the difference between monthly rent and mortgage payments being under $300. By budgeting accordingly, first-time buyers can find that investing an extra few hundred dollars a month in homeownership can be a worthwhile and feasible decision.

However, a more affordable home doesn’t necessarily mean an easier transition from renting to owning. Many cities with low single-family home prices still have significant gaps between the average monthly mortgage payment and the average monthly rent. For example, in Green Bay, WI, the median single-family home price is $288,000, resulting in an average monthly mortgage payment of $2,447. Meanwhile, the average monthly rent for a 2-bedroom apartment in Green Bay is just $1,094, which is $1,353 lower than the mortgage payment.

Similarly, Abilene, TX, Columbia, SC, and Bloomington, IL have median single-family home prices under $300,000 but a gap of more than $800 between the monthly mortgage and monthly rental payments. Prospective first-time buyers in these cities may find it easier to start by investing in a condo or townhouse, allowing them to build equity before moving into a larger home.

In many cases, first-time home buyers will face greater challenges in cities where the monthly mortgage payments exceed rent by more than $1,000. In Colorado Springs, San Diego, San Francisco, Anaheim, and San Jose, the challenge is even greater as the gap between monthly rent and the monthly mortgage payment is over $2,000.

Cities like Pensacola and Las Vegas, which are popular among tourists and retirees, have significant gaps between rental and homeownership costs. The influx of retirees and tourists likely drives up property values disproportionately compared to rental rates. Prospective first-time home buyers in these cities may want to consider more affordable locations within their state, such as Jacksonville, or Henderson, where the difference between monthly mortgage and rental costs is under $1,000. This move could make the transition from renting to owning more manageable.

First-time home buyers who are determined to live in less affordable cities may want to consider making a larger down payment. This strategy can save hundreds of dollars each month and make homeownership more financially manageable in the long run.

For example, if a first-time home buyer put down 15% in Phoenix, instead of 8%, the monthly mortgage payment would lower from $1,166 to $952. In Atlanta and St. Louis, the impact of a larger down payment is even more significant. With an 8% down payment, monthly mortgage payments in both cities are higher than rent. However, with a 15% down payment, the monthly mortgage payments in Atlanta and St. Louis drop below the average monthly rent, making homeownership more affordable.

By strategically selecting an affordable location or diligently saving for a larger down payment, first-time home buyers can significantly improve their chances of achieving their homeownership goals.

Do you have questions about entering the real estate market? Give us a call! Our experienced real estate agents will help you navigate the market to find the right home for you.

Looking for your first home?

We can help!

Source: zoocasa.com

Apache is functioning normally

July 31, 2024 by Brett Tams

In recent years, the rise of digital lenders like SoFi and Ally has transformed the lending landscape, offering borrowers new options for obtaining loans quickly and conveniently. But what sets these digital lenders apart from traditional banks and credit unions? And how can you navigate the process of shopping for a loan with them?

In this guide, we’ll explore everything you need to know about securing a loan from digital lenders, including the pros and cons, and key differences compared to traditional lenders.

Understanding Digital Lenders

Digital lenders are financial institutions that operate primarily online, offering a variety of loan products including personal loans, student loans, mortgages, and auto loans. Unlike traditional brick-and-mortar banks, digital lenders often boast streamlined application processes, competitive interest rates, and innovative features designed to appeal to tech-savvy consumers.

Shopping for a Loan with Digital Lenders

When shopping for a loan from digital lenders, it’s essential to approach the process with careful consideration and research. Here are the steps to follow:

1. Determine Your Loan Needs

Before you begin comparing loan options, take some time to assess your financial situation and determine your borrowing needs. Consider factors such as the loan amount you require, the purpose of the loan, your credit score, and your preferred repayment terms.

2. Research Lenders and Loan Products

Research digital lenders to compare their loan offerings, interest rates, fees, and eligibility requirements. Pay attention to customer reviews and ratings to gauge the lender’s reputation and customer service quality.

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3. Get Prequalified

Many digital lenders offer prequalification tools that allow you to check your eligibility and estimated loan terms without impacting your credit score. Take advantage of these tools to get a sense of the loan options available to you and compare offers from multiple lenders.

4. Compare Loan Terms

Once you’ve received prequalification offers, carefully compare the loan terms, including interest rates, loan amounts, repayment terms, and any fees associated with the loan. Consider how each offer aligns with your financial goals and choose the option that best meets your needs.

5. Submit Your Application

After selecting a lender and loan product, submit your loan application through the lender’s website or mobile app. Be prepared to provide personal and financial information, including your income, employment history, and identification documents.

6. Review and Accept the Loan Offer

If approved for the loan, carefully review the loan agreement, including the terms and conditions, interest rate, repayment schedule, and any fees or penalties. Once you’re satisfied with the terms, electronically sign the agreement to accept the loan offer.

Pros and Cons of Digital Lenders

At a glance, here are the pros and cons of working with a digital lender.

Pros:

Convenience: Digital lenders allow you to complete the entire loan application process online, from prequalification to funding, without the need to visit a physical branch.
Competitive Rates: Many digital lenders offer competitive interest rates and fees, making them an attractive option for borrowers seeking affordable financing.
Quick Approval: Digital lenders often use automated underwriting processes to expedite loan approvals, allowing borrowers to receive funding quickly, sometimes within a few business days.
Innovative Features: Some digital lenders offer innovative features such as flexible repayment options, financial education resources, and member benefits like career coaching and networking events.

Cons:

Limited Branch Access: Unlike traditional banks, digital lenders typically do not have physical branch locations, which may be a drawback for borrowers who prefer in-person banking services.
Less Personalized Service: Digital lenders may offer less personalized customer service compared to traditional banks, as interactions are primarily conducted online or over the phone.
Eligibility Requirements: Digital lenders may have stricter eligibility requirements or credit criteria than traditional lenders, making it more challenging for some borrowers to qualify for loans.

Key Differences from Traditional Lenders

Digital lenders differ from traditional lenders in several key ways:

Online-Only Operations: Digital lenders operate exclusively online, offering a fully digital loan application and funding process.
Technology-driven Approach: Digital lenders leverage technology and data analytics to streamline loan underwriting, approval, and servicing processes.
Focus on Customer Experience: Digital lenders prioritize delivering a seamless and user-friendly customer experience through intuitive online platforms and responsive customer support.
Innovative Products and Services: Digital lenders often offer innovative loan products and services designed to meet the evolving needs of modern borrowers, such as student loan refinancing, debt consolidation, and personalized financial planning tools.

In conclusion, shopping for a loan from digital lenders like SoFi and Ally offers borrowers a convenient and efficient way to secure financing for various purposes. By following the steps outlined in this guide and carefully weighing the pros and cons, you can find the right loan product and lender to meet your financial needs.

Source: credit.com

Apache is functioning normally

July 31, 2024 by Brett Tams

About 25 miles southwest of Charleston, South Carolina, lies the idyllic Kiawah Island.

This 10-mile stretch of land is known for its pristine natural beauty, luxurious resort amenities, and award-winning golf and tennis facilities. But it’s also home to some spectacular real estate — including a newly listed $9.2 million mansion that’s pure house goals.

And we’re not the only ones to say that: the 6-bedroom home at 39 Ocean Course Drive was recognized as one of Kiawah Island’s premier residences on the Charleston Symphony Tour of Homes.

Now, the Georgian-style mansion is being brought to the market for the first time ever, with Grace Connor, and the Katherine Cox + Co. team at Coldwell Banker Realty handling the listing.