Moneycontrol

Planning for college is one of those things that sneaks up on you right? If you are a parent, you can’t believe how time has flown. As a student, you have no idea what you’re doing. With no concept of what college life is, and how expensive college really is, the parent-son/daughter team jetsets into the unknown.

But what if there was a way to get a leg up? To get inside tips on how to be financially prepared for college while still in high school? Here at Golden Financial Services we love getting our friends a head start on the right track. With that in mind, here are some tips to be as financially prepared as possible for college, while still in high school.

Avoid Student Loans at (Almost) All Other Costs

The term “student loan,” in reality, is akin to the term “predatory loan” but just with a nicer sounding name. Student loans are designed to reach a youthful audience, where students are backed by parents with the best intentions for their grown children as they step off into another world, away from parental guidance. The lender is banking on the idea that they can secure a high-interest loan with the student, and have a safety net of a guarantee by having the parents as back-up in case the student either can’t pay the loan, or if the parents are paying for the loan from the beginning.

Oftentimes students are presented with the loan application on the spot, without the consultation of parents. Knowing the terms of the loan before signing any paperwork, if you must take out a student loan, is vital. Just remember: You can take the form without signing anything, and consult together on the need for a student loan. According to Forbes, student loan debtors owe a combined $1.5 trillion as of 2019. The student loan debt epidemic has become so large, it is affecting the housing market as collegiate graduates continue to spurn home ownership in favor of staying longer in their parents’ homes, or renting with several roommates. The primary cause: Mounting student loan debt that is crippling their early careers at entry-level positions.

DaveRamsey.com drops some perspective this way: “For example, did you know that 55% of millennials who are paying on student loans say they are postponing having children? Or that 41% are delaying getting married? Or that 86% have made career sacrifices because of their student loan payments? Y’all, that’s ridiculous.” We’d suggest exploring other options and using student loans as a last resort.

Take a Seat, Use Online Tools to Calculate Your Expenses and Come up with a Budget Plan

While you might be thinking, “Why didn’t this blog start here?” we actually are that serious about student loans that we had to put it first. And we’ll probably mention it again further down in this blog.

Moving on, the first step in actually planning finances is to sit down with some tools and figure out what your real income vs. expenses spread looks like. Golden Financial Services has a few free tools you can use to calculate your budget and debt. Specifically, start with a Debt Calculator and account for every expense, no matter how small. Once you know your monthly debt amount, slide over to the Budget Calculator so you can compare monthly obligations to monthly income. Additionally, if you can budget aggressive debt payments early, use our Snowball Payment Calculator to start making a dent in your debt today.

It’s not as simple as simply having extra money, as we all well know. Living within your means is the other element to this tip. Aptly named TheBalance.com shares some insights: “A budget helps you see what you’re spending so you can avoid going into debt to maintain your lifestyle. As a college student, expensive electronics, going out with your friends and eating out multiple times a week are likely going to become a thing of the past. Make sure that you’re meeting your financial obligations before you start to spend on frivolous items that aren’t necessary for your survival. Remember, college is probably going to be a time of your life when you make very little money, so you had better be prepared to make some sacrifices.”

Now armed with concrete tools, knowing what you have in extra income at the end of each month can prepare you for payments on tuition and textbooks.

Open a Savings Account

Specifically, open a 529 college savings account. These types of savings account offer tax-deferred earnings and tax-free distributions on education expenses. SEC.gov offers a longer summary: “A 529 plan is a tax-advantaged savings plan designed to encourage saving for future education costs. 529 plans, legally known as “qualified tuition plans,” are sponsored by states, state agencies, or educational institutions and are authorized by Section 529 of the Internal Revenue Code.”

The piece continues: “There are two types of 529 plans: prepaid tuition plans and education savings plans. All fifty states and the District of Columbia sponsor at least one type of 529 plan. In addition, a group of private colleges and universities sponsor a prepaid tuition plan.”

Final Thoughts

Finding the right college for a specific set of skills (and dreams) is still the top priority. However, taking the necessary steps to be prepared for college is just as important. It’s never too early to start planning. Use online tools to know your limits, look into government-funded programs to assist you with creating wiggle room in your income, and avoid student loans at all costs!

If you found this blog post while looking for financial advice or assistance with credit card debt relief or debt consolidation, call Golden Financial Services today at (866)-376-9846 or info@goldenfs.org. 

 

There is no worse fear than feeling like you’ve lost total control of your finances. Not hostile takeovers or anything nefarious. No, just through a series of poor decisions and unfortunate events, your credit is less than desirable, and you’re spending more than you make.

When this happens, it can often feel like there is no way out of your current situation. Well, not without filing for bankruptcy. And while it is important to know when bankruptcy is necessary, it doesn’t have to come to that.

Before pushing the panic button and filing for bankruptcy, check out these great tips and tricks for taking control of your finances today!

Cut Down Monthly Expenses

Monthly bills can get out of hand all too easy. That’s not to say every decision you made financially was wrong, or you’re intentionally living above your means.

Often times, people fall into financial trouble because of trial offers. Those 7-day or 30-day free trial subscriptions are a killer when you forget about them. Reviewing your bills for any unnecessary or even forgotten about expenses is always a good idea.

This is also the time to start asking yourself what expenses are “need” versus “want.” Not all the wants have to go; you do need to have some fun in life. But maybe you don’t need all those premium channel subscriptions or even cable at all. Especially with steaming and cord cutting options available.

Reviewing your monthly expenses to see where you can trim some of the fat is the first step to regaining control of your finances. The next step is to consolidate/pay-off your debt.

Consolidate/Pay-Off Debt

Once you dealt with your monthly expenses and canceled those unwanted services, it’s time to take a look at your actual debt. This is where you should be looking at the amount left on your credit cards, auto and home loans, as well as any other installment or revolving line of credit.

This is different from your monthly expenses because these have a balance to pay off. Meaning eventually, they will go away. However, having too many installment loans and revolving lines of credit with high balances is a turn off to creditors.

A great way to handle your debt and make it more manageable is to consolidate your debt into one monthly payment. Online loans are a great way for this. Even if you think your credit isn’t good enough, there are online loans for bad credit.

Consolidating your debt basically means taking out a personal loan and using the money to pay off your other debt. The theory being that you will only be left with one monthly payment to one creditor lender.

This can help you when it comes to budgeting in the future, improving your credit score, and making yourself more appealing to creditors and lenders.

Emergency Fund/Savings Account

Presumably, you’re in this position because you don’t have an emergency fund or savings account. Or as is more often the case, neither was big enough for what you needed them for. And that’s ok.

Everyone is always told to have a little cushion for themselves, start savings account, or open an emergency fund. But then, no one says how much you should set aside.

For emergency funds, it’s wise to have at least 3 to 8 months’ worth of your monthly expenses set aside. But, that’s not realistic right now. No matter the amount you start out with, it will help you in any emergency.

The trick is to not stop at the initial investment. Be sure to add the emergency fund deposit to your new budget and to add to the fund continuously. The bigger your cushion, the more it can handle.

If you opt for a personal loan to consolidate debt, you can use any leftover funds to deposit into your emergency fund or savings account. Because of this, there are many online loans for bad credit and good credit alike.

Only You Can Prevent Financial Fires

Emergencies are, by design, impossible to plan for. But that doesn’t mean you can’t set yourself up for success. You may not be able to account for every eventuality, but you can certainly prepare for most.

Having an emergency fund and savings account is the best way to prepare for any emergency. But, even simple things like reviewing your monthly expenses to trim the fat and big things like paying off debt will stave off a real financial forest fire.

Don’t wait until it’s so bad, you need to call in the big guns, take control of your own finances today and keep those financial forest fires at bay. Remember, only you can prevent financial fires.

To read more on topics like this, check out the money control category.

 

The concept of equity release loans is quite simple. You borrow a certain amount of money, but you secure it with a property. You can decide the amount that you will borrow, which is usually a percentage of the total value of the property. Some people hesitate to get this loan due to the sky-high interest rates. The amount might keep increasing over the years. The creditor does not require you to pay the loan soon. However, for every year that you are alive, the creditor will add a high-interest rate. Since you use your property against the loan, you have no choice but to oblige. Despite that, it is still safe to say that this loan is fair.

Tax-free cash

When you receive the amount borrowed, you are getting it in full. You do not need to pay taxes, unlike other loans.

You can stay at home

Even if you already used your property against the loan, you do not need to leave any time soon. You can remain in your property until your death, or you need to go to a hospice care facility. You can even try home improvements that are suitable to your needs.

You can spend the borrowed money as you wish

Another benefit of this equity release loan is that you can decide how you are going to spend the money. Whether you use it to start a business or travel the world, it is your call. Since you do not need to pay it back any time soon, you will not worry about the repercussions of your decision. You can enjoy life since you already reached a stage when you do not need to worry about work. Your kids are also pretty stable, and you do not need to spend money on them.

There is no negative equity policy

Before, many people disliked the idea of equity release since the interest rates could be so high that when it was time to sell the property, the beneficiaries received nothing. Worse, they even needed to worry about how to pay the remaining loan balance. Now, with the implementation of the no negative equity policy, the beneficiaries do not need to worry even if the total loan is higher than the sale value of the property.

Given these reasons, it is fair to say that over 55 equity release is not a terrible idea. You also do not need to worry about the application process since it is not too difficult. You can wake up one day and decide to obtain this loan. As long as you show proof that you own the property and you already sought help from a valuation officer to determine the exact value, you can proceed with the loan application.

If you are unsure about this type of loan, you can always hire an equity release adviser to help you. The information you receive will make it easy to decide if the loan is worth pursuing or not.

If you want to learn more about our blog, please click here.

Saving money for a house, car, or vacation doesn’t have to mean depriving yourself of life’s luxuries. Having said that, it does mean taking thoughtful steps towards a better financial future.

So let’s ask: where can you start?

Let’s take a look at seven amazing ways to save money this year.

Improve Your Credit Score

If there’s one small thing you can do today that can save you thousands of dollars over your lifetime, it’s improving your credit score. Believe it or not, a good credit score is one of the easiest ways to save. According to research, the difference between having excellent and poor credit saves a typical male in his 30s nearly $300,000.

Earn Free Gift Cards to Stores

There are actually ways that you can save money by watching entertaining videos and shopping online. The website and app Swagbucks allows you to earn free gift cards to stores like Amazon, Walmart, or cash through PayPal by doing basic things you’re probably already doing online or on your smartphone.

Don’t Give More Money to Banks Than Required

According to research, approximately 20 percent of households with mortgages could have refinanced profitably but failed to do so. Since your mortgage is one of your largest expenses, you definitely want to make sure you’re not one of those 20%.

As interest rates are on the rise, time may be running out to save money. It’s important to take a few minutes now to make sure you’re not giving more money to a bank than necessary, always keeping an eye out for mortgage refinance rates from a company like Credible in case you are able to refinance.

Earn Cash Back

There are many sites that will give you money just for signing up with them. For example, Ebates is a popular cash back shopping site that helps you make money.

Refinance Your Student Loans

If you have student loans, you do not want to overlook this option. Refinancing alone can save you thousands.

What exactly is refinancing?

When you refinance, you’re taking your existing student loan(s) and rolling them over into a new, single loan. The goal here is to obtain a lower interest rate then what you’re currently paying. This lower interest rate saves you money by either reducing the amount of time it takes to payoff the loan and/or lowering your monthly payment.

Analyze your 401(k) Fees and Retire Richer

Most people think of their 401(k) as a place to save money — not actually a way to reduce their expenses. However, here’s something that may surprise you. According to one study, a typical American worker earning an average salary starting at age 25, will pay nearly $150,000 in 401(k) fees over their lifetime!

With employer-sponsored plans, there are two layers of fees: Account management fees and mutual fund fees.

Scottsdale personal bankruptcy attorneys note that fees can often be hidden. Having said that, Blooom (a free tool) can help you uncover hidden fees in your 401(k). If you haven’t heard of Blooom, they’re an SEC-registered investment advisory firm that can give you a detailed review of your 401k in minutes.

You would like to apply to get an EIN for your business through the online application process. A lot of small businesses need it. It is possible that your business would require this as well. This is a number used by the IRS to identify the different employers but you can very much use it to your advantage. Knowing how to apply EIN online will be an advantage for you.

These are some things that you ought to remember so that you can complete and make use of the EIN filing service with ease.

• Make sure that you have a copy of the form SS-4. This will allow you to know what the questions will be ahead of time. If there are documents that you need to answer the questions written there, you can prepare yourself ahead of time.
• Allow the EIN assistant to help you with the application process. The EIN assistant will make sure that you will know what to do.
• Expect to spend some time in answering the questions. You have to be very meticulous because a single mistake will be very hard to change.
• If in case you become idle for more than 15 minutes, expect that your session will close. When you come back, you have to repeat it again from the very beginning. The website will not save the previous information you have placed. You need to do it again.
• There will always be some differences with the application for the EIN depending on your current situation. All businesses have slight differences. Once you are there, you cannot seek for legal advice anymore. You may have to do that before you file for an EIN.

Why Are You Requesting for an EIN?

This is one of the questions that you are expected to answer. You need to be specific about your reason for requesting for an EIN. Some of the possible answers are the following:

• Banking Purposes
• This is a new business that you want to register.
• The organization has changed from sole proprietorship to partnership or vice versa.
• You are in need of hiring new employees to help you with your business within a year.

Any of these reasons will require you to get your EIN. Check out https://www.govdocfiling.com/ if you would like to learn more.