8 Money-Saving Tips for Improving Your Bathroom’s Design

I don’t know about you, but for me, a bathroom goes well beyond its practical uses; within the past years, I’ve come to think about it as a sanctuary of sorts, that room of the house that’s dedicated to pampering, relaxing, and deconnecting — a place where I can enjoy some alone time and use that alone time to take care of my skin, hair, body, and mind.

And just like any other space in my house, the more beautiful my bathroom is, the more I can enjoy the time I spend in it. But re-designing a bathroom or remodeling it altogether is quite an investment. That’s why today we’re going to look at a few handy ways in which we can improve our bathroom’s design without having to spend a ton of money in the process. Here are some tips to help you maximize your bathroom’s function and style while saving money — both on the short and long run:

#1 Choose décor materials wisely

When designing your bathroom, one of the most important things to take into consideration is choosing the right materials. And I’m not talking about the tile (which we all know ceramic is the way to go); but rather furniture and appliances. Since this space is expected to be exposed to water, humidity, and moisture, it’s best to use waterproof materials for all furniture, décor items, and appliances.

For example, solid wood or plywood may not be a good choice for furniture, as it will likely warp and crack (and it can even lead to mold). Instead, a way better — and longer-lasting — choice would be PVC, which is extremely durable, completely waterproof and offers a great look and feel as well for bathroom cabinets. When buying blinds for your bathroom windows, choose waterproof blinds because they are stain and mold resistant, as well as fade-free. When picking appliances, make sure to avoid any metal that might rust, and preferably stay away from plastic; some of your best choices are brass, stainless steel, and zinc (or zinc alloys), as they stand the test of time and add a note of style to your bathroom.

Overall, focus on materials that can withstand humidity and water. This way, you don’t have to spend money replacing them and you can rest assured that your bathroom will maintain its clean and brand-new look over the years.

#2 Widen and brighten your space with mirrors

Instead of adding a skylight or a new window to brighten a rather gloomy bathroom (which would call for a pricy renovation), consider using a large mirror, re-painting your walls in a light color, or adding extra light fixtures. These can all help create the illusion of space, making your bathroom look wider and brighter. Obviously, this technique is much more affordable than having to install an additional window to your bathroom space and you’d be surprised at how much of a difference adding a large mirror can make.

If you feel like you don’t have the space to add an additional mirror to your bathroom, consider replacing the mirror above your vanity with a far larger one. Bonus tip: choosing an unusual shape or a unique frame for the vanity mirror (like the one in the image below) can give an impressive look to your bathroom, and act as the centerpiece of the room.

bathroom vanity with large, unique mirror

#3 Update by regrouting

If you’re looking to update your bathroom quickly and on a tight budget, consider replacing the existing tile grout. Regrouting is a two-step manual process by which you first remove the hardened old grout from the seams, or joints, between the tiles in your bathroom, then apply fresh new grout to make it seem like you have just installed your tiles (here’s a full walkthrough of the process). You’d be surprised how big of a difference this fairly simple update can make — especially since tiles rarely show signs of wear and tear, but the grout’s initial color fades away, and often gives a sense that it’s dirty, discolored and old.

This idea works best if the tiles in your space are still in great shape, that is, they don’t have cracks or missing pieces. Although it may take a bit of work, it’s surely faster and cheaper than a major bathroom overhaul. Fresh grout will make the tiled area look brand new, and you can even apply a new grout color to make a more dramatic change to your bathroom. 

pink bathroom tiles

#4 Get creative with designer tiles

Now, if you’re looking to add a splash of sophistication to your shower or bathroom tiles, but don’t have the budget to splurge on designer tiles, there’s a super easy trick you can turn to: use regular, budget friendly tiles across the walls of your bathroom, then add a pop of design and color in a small area using more expensive designer tiles. 

Or, you can keep it simple and use classic tiles, but arrange them in an unusual pattern or install them at an angle to create an eye-catching effect. If you’re looking for the maximum effect, create an accent wall (preferably right where either the shower or bathroom vanity go, to highlight that space), like the one pictured below. It won’t cost as much as replacing all of your bathroom tiles, but will definitely give your space a great, updated look.

bathroom shower tiles

#5 Try to avoid current trends

We all like to think that we’re aligned with the latest trends and fads. But the truth of the matter is, the best way to waste money is to follow fads that in a couple of years will seem so outdated that you’ll feel the need to renovate your bathroom all over again. You can make your design last way longer if you’ll use natural finishes and neutral colors.

Classics also tend to be considerably less expensive than their trending counterparts, and they’re much more likely to stand the test of time. See below for a marble-themed bathroom that was all the rage a few years back, but that seems a little out of place in the more minimalist-inclined era that we live in today.

marble bathroom with gold fixtures

#6 Use traditional finishes

This goes hand in hand with our last point: using fancy fixtures and embellishments on your faucets and cabinet hardware may seem like a good way to add some personality, but they can turn out to be rather costly without having the desired effect over the years. These kinds of fixtures are pricier than standard ones and their unusual colors, trimmings, and shapes can be more difficult to match with the rest of the décor — and limit any improvements you might decide to make in the near future.

Because of this, you may be forced to buy new coordinating pieces, too. However, if you’ll stick with traditional finishes, it will be simpler for you to create a cohesive look while still sticking to your budget. 

bathroom sink and fixtures

#7 Re-use old furniture to create a unique look

If you have an old desk, table, dresser, or TV stand, consider using it in your bathroom (provided it can withstand humidity and isn’t easily prone to water damage, as we’ve stated above). Repurposing old furniture will give you a chance to show your personality while adding much-needed bathroom storage. Consider doing this as a DIY project, which can help you save money while also being earth-friendly. 

Not sure how to fit old furniture with your bathroom décor? Repurposing doesn’t mean using the piece of furniture in the same way it was intended by its makers; so you can get as creative as you want, by say turning an old desk into a vanity, parts of a table into shelves, an old painting frame into a mirror frame, you name it. See below for a great example of how this stunning bathroom with matching his and hers vanities uses old crates to frame the bathtub.

elegant bathroom with matching his and hers vanities

#8 Refinish rather than replace

Replacing bathroom elements will usually require removing or replacing plumbing fixtures, which comes with additional costs. It can also involve construction changes, demolition work, and new installation. Before deciding on replacing any of these fixtures, determine if they really need replacement. If you’re replacing them for aesthetic reasons, you might have the option to refinish them instead of replacing them altogether. 

For example, you can refinish your old tub with a nice-looking, protective coating instead of completely replacing it. You can also paint your cabinet anew instead of purchasing a new one — and you can even get creative with the color you use. Check out this elegant bathroom below, whose owners chose to refinish the bathtub and paint it in a slight pinkish hue. Isn’t it just lovely?

pink bathtub in elegant bathroom

Final thoughts

The bathroom is one part of the house that needs some upgrading every now and then, and said upgrades can turn out to be quite expensive. However, with some rather small, but well-thought changes, you can spruce up your bathroom design without spending a pretty penny. And if our suggestions are not to your liking, there’s tons of helpful resources out there that can give you some great ideas to get you started.

More interior design tips

Here’s Everything You Need to Set Up a Meditation Corner in Your House
How to Turn Your Kitchen Into Every Coffee Lover’s Dream
Design Trends that Add Extra Flair to Your Fancy Home
How to Add a Touch of Luxury to Your Home without a Costly Renovation

The post 8 Money-Saving Tips for Improving Your Bathroom’s Design appeared first on Fancy Pants Homes.

Source: fancypantshomes.com

How To Get A Car Loan in 5 Easy Steps

Need a car loan soon? Whether you’re about to buy a car soon or just thinking about it, chances are you will likely finance it (unless, of course, you have the cash to buy it right away). So why not learn a few steps along the way to help you get a car loan. A little knowledge about the process can go a long way; so far as saving you thousands of dollars in the long run!

Ready to start comparing car loan already? Start now… it’s Free.

Step One: Review your credit file

You may need to get a free credit report and make sure you have a good credit score before applying for a car loan. The better your credit score, the higher your chance to get approved and save on interest.

Step Two: Compare interest rates

You should shop around, compare auto rates and fees before you apply for a car loan. The worst thing you can do to yourself is to apply for multiple loans at the same time, as this can affect your credit score.

So, look at multiple rates at one place so you can make the best decision. Also, remember you can choose a fixed rate or variable rate on a car loan.

Whichever you choose depends on what you’re comfortable with. Remember that a fixed rate will stay the same for all of the term of the loan. That means, your repayment will be predictable and you’ll be able to budget for a lot easier than with a variable rate.

Click here to compare car loan rates through LendingTree.

Step Three: Dealer Finance or Car loan?

You should always compare bank/independent loan to dealer finance.

Granted dealer financing may get you a auto loan with a very low rate, but that does not mean you get the best deal. Sometimes dealer financing can be more expensive in the long run. So you may want to compare rates from 2-3 lenders with a dealer finance rate to make sure you get the best rate possible.

Step Four: Get pre-approved

Before you commit to a car you should get pre-approved first. Plus, walking into the car dealership with a pre-approval letter in your hand, gives you greater negotiating power.

Step Five: Gather your documents and go car shopping

Once you decide on an auto loan that you’re happy with, it’s time to go car shopping! So gather your financial documents such as your pay stubs, bank statements, tax returns, and W2s.

Want to explore your car loan options? Visit LendingTree to compare the best car loan rates.

Related: How to save money for a car

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The post How To Get A Car Loan in 5 Easy Steps appeared first on GrowthRapidly.

Source: growthrapidly.com

What Is a Mortgage Refinance? 5 Ways to Know If It’s a Good Idea

Jason says:

Hi, Money Girl. I’m interested in refinancing and getting a lower interest rate on my mortgage; however, I may need to sell my home and relocate in a year or so. In that case, does a refinance still make sense? If so, what factors should I consider?

Jason, thanks for your question! It’s a perfect time for homeowners to consider refinancing because interest rates are at historic lows.

If you’re a homeowner, your mortgage payment is probably your largest monthly expense, so it’s wise to stay alert for opportunities to reduce it by refinancing. Plus, your financial circumstances and needs today may be very different than they were when you originally got your mortgage.

It’s a perfect time for homeowners to consider refinancing because interest rates are at historic lows.

I'll answer Jason’s question by reviewing what a mortgage refinance is, explaining common reasons to consider doing one, and covering five ways to know if it’s a good idea for your situation.

What is a mortgage refinance?

Refinancing is when you apply for a new loan to pay off an existing loan balance. The new loan could be with your same institution or with a different lender. The idea is to swap out a higher-interest loan for a lower-interest one, which decreases the amount of interest you have to pay and may also reduce your monthly payments.

When you take out a mortgage to buy a home, various factors determine the interest rate you get offered. While your credit, down payment, and income history are critical, lenders base mortgages on the prevailing interest rates. 

An interest rate is simply the cost of money for borrowers. Rates in the U.S. fluctuate according to the monetary policy of the Federal Reserve or Fed, which is our central bank. 

A good rule of thumb is to consider refinancing when the current rate dips at least one percentage point below what you’re paying for your mortgage.

When interest rates are low, it’s like money’s on sale, as strange as that sounds! Banks should display a big banner on their front door or website that reads “bargain basement prices on dollars” or “we sell money cheap” because that’s what happens when interest rates go down. Low rates are great for borrowers, but not so good for lenders. 

The Freddie Mac website shows historical data for interest rates on 30-year mortgages since 1971. In August 2020, the average for a fixed-rate, 30-year mortgage was 2.94%. A year earlier, the same loan was 3.62%, and ten years before, it was 4.43%. 

Since interest rates change periodically, the rate you’re currently paying on a mortgage may be significantly different than the going rate. A good rule of thumb is to consider refinancing when the current rate dips at least one percentage point below what you’re paying for your mortgage.

What’s the cost to refinance a mortgage?

You need at least one percentage point between the going rate and yours because there’s a cost to do a refinance. Closing a loan means you must pay fees to various companies, including your lender or mortgage broker, property appraiser, closing agent or attorney, and surveyor. Plus, there are fees required by the local government for recording the mortgage, and maybe more costs, depending on where you live. 

The total upfront cost of a refinance depends on the lender and property location. It could be as high as 3% to 6% of your outstanding loan balance. The trick to knowing if it’s worth it is to figure out when you’d break even on those costs. In other words, when do you go from the red to black on the deal? 

If you pay for a refinance but don’t keep your home long enough to recoup the cost, you’ll lose money. But if you do keep the property beyond the financial break-even point (BEP), you’ll feel like a genius because you saved money in the long run!

If you pay for a refinance but don’t keep your home long enough to recoup the cost, you’ll lose money.

You may be able to roll closing costs for a refinance into the new loan, which means you would have nothing or little to pay out-of-pocket. But adding them increases the amount you borrow and may also increase the interest rate you pay for the life of the loan. For that reason, it’s essential to ask the lender for a side-by-side comparison of all the terms for each loan option so you can carefully evaluate them. 

So, how do you figure the BEP to know if doing a refinance is wise? Here’s a simple BEP formula: Refinance break-even point = Total closing costs / Monthly savings.

For instance, if your closing costs are $5,000 and you save $150 a month on your mortgage payment by refinancing, it would take 34 months or almost three years to recoup the cost. The calculation is $5,000 total costs / $150 savings per month = 33.3 months to break even.

For help crunching your numbers, check out the Refinance Breakeven Calculator at dinkytown.com.

Since how long you own your home after a refinance is critical for making it worthwhile, I’m glad that Jason brought it up in his question. For instance, if he finds out that he’d need to own his home for five years to break-even, but he only plans on staying in it for two years, that should be a deal-breaker.

How to get approved for a mortgage refinance

If you believe that doing a refinance could be wise, you’ll also need to consider if you qualify. Lenders have different underwriting requirements, but most require you to have a minimum amount of equity in your property.

Equity is the difference between your home’s market value today and what you owe on it. A critical ratio for refinancing is known as the loan-to-value or LTV.

For example, if your home value is $300,000 and you have a $150,000 mortgage outstanding, you have $150,000 in equity, an LTV ratio of 50%. But if you owed $250,000, that would be an LTV of 83%. 

You typically need an LTV less than 80% to qualify for a mortgage refinance.

You typically need an LTV less than 80% to qualify for a mortgage refinance. So, Jason should do some quick math to make sure he doesn’t owe more for his home than this threshold based on the current market value. Lenders may still work with you if you have a high LTV and good credit, but they may charge a higher interest rate.

If you have an existing FHA or VA mortgage, you may qualify for a “streamlined” refinance program that requires less paperwork and less equity than a conventional refinance. Check out the FHA Refinance program and the VA Refinance program to learn more.

Reasons to consider refinancing your mortgage

There are a variety of reasons why it may make sense for you to refinance a mortgage. Here are some situations when doing a refinance may be a good solution.

  • Rate-and-term refinance. This is when you get a new loan with a lower interest rate, a different term (length of the loan), or both. It’s probably the most common reason why homeowners refinance their mortgages. 

    Example: If you have a 30-year, fixed-rate mortgage at 5%, you could refinance with a 30-year mortgage at 3%. That would reduce your monthly payments and the amount of interest you pay over the life of the loan.
     

  • Cash-out refinance. This is when you get a larger loan than your existing mortgage, so you walk away from the closing with cash. 

    Example: Let’s say your home’s market value is $200,000, and your mortgage balance is $100,000. If you need $25,000 to pay for college or renovate your home, you could do a cash-out refinance for $125,000. After paying off the original mortgage of $100,000, you’d have $25,000 left over to spend any way you like.  
     

  • Cash-in refinance. This is when you pay cash at the closing to pay off an existing mortgage balance. That could be necessary if you don’t have enough equity to qualify for a refinance, or you owe more than your home is worth. 

    Example: You might do a cash-in refinance if having a lower LTV qualifies you for a lower mortgage rate or allows you to get rid of private mortgage insurance (PMI) payments. Read or listen to How to Avoid PMI on Your Home Loan for more information.

You may also need to refinance a mortgage if you want to remove a co-borrower, such as an ex-spouse, from your loan. But if one spouse doesn’t have sufficient income and credit to qualify for a refinance on his or her own, your best option may be to sell the property instead of refinancing the mortgage.

5 ways to know if it’s the right time to refinance

Here are five ways to know if doing a rate-and-term refinance is a good idea.

1. You have an adjustable-rate mortgage (ARM)

Buying a home with an adjustable-rate mortgage comes with lots of advantages like a lower rate, a lower monthly payment, and being able to qualify for a larger loan compared to a fixed-rate mortgage. With an ARM, when interest rates go down, your monthly payments get smaller. 

Instead of worrying about how high your adjustable-rate payment could go, you might refinance to a fixed-rate loan.

But when ARM rates go up, you can feel panicked as your mortgage payment increases month after month. There are caps on annual increases, but your rate could double within just a few years if rates have a significant spike.

Instead of worrying about how high your adjustable-rate payment could go, you might refinance to a fixed-rate loan. That move would lock in a reasonable rate that will never change and make it easier to manage money and stick to a spending plan.

2. You could get a lower interest rate

If you bought a home when mortgage rates were higher than they are now, you’re in a great position to consider refinancing. As I mentioned, you need to do your homework to understand the cost and BEP fully. 

I recommend shopping for a refinance with the lender who holds your current mortgage, plus one or two different companies. Let your mortgage company know that you’re shopping for the best offer. They may be willing to waive specific fees if some of the necessary work, such as a title search, survey, or appraisal, is still current for your home.

3. You don’t plan on moving for several years

Once you know what a refinance will cost, make sure you’ll own your home long enough to pass the BEP, or you’ll end up losing money. For most homeowners, it typically takes owning your home for at least three years after a refinance to make it worthwhile.

4. You have enough home equity

As I mentioned, you typically need at least 20% equity to qualify for a refinance. If you have less, you may still find lenders that will work with you. However, unless your credit is excellent, you’ll typically pay a higher interest rate when you have low equity.

Also, if you don’t have 20% equity, lenders charge PMI. Adding that to your new loan could cut your savings and give you a much longer break-even point. 

5. Your finances are in good shape.

The higher your income and credit, and the lower your debt, the better your refinancing terms will be. If you’re unemployed or your credit took a dive due to a hardship, wait until your overall financial situation has improved before making a mortgage application. Good credit can save thousands in mortgage interest.

Good credit can save thousands in mortgage interest.

If you investigate doing a refinance and decide that it’s not worth the cost, another strategy to save money is to ask your lender for a mortgage modification on your existing loan. You may be able to negotiate modified terms, such as a lower interest rate, without having to pay for a full-blown refinance.

If you’re unsure how much home equity you have or know that you have very little, don’t let that stop you from inquiring about your refinancing options and saving money. Getting advice and refinancing quotes from your lender is free and will help you understand your range of financial options.

Source: quickanddirtytips.com

7 Best Short-Term Bonds Funds to Buy in 2020

For investors with short-term saving goals, short-term bonds can be appropriate investments for your money.

They are stable and they certainly provide a higher return than a money market fund.

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However, even with the best short term bond funds, there’s also a risk of losing a percent or two in principal value if interest rates rise.

There are many options available to you, but your best option is to invest in taxable short-term bond funds, U.S. Treasury short-term bond funds and federally tax-free bond funds.

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What are short-term bonds?

Short-term bonds, or any bonds for that matter, are debts instruments that companies and the government issue. They typically mature in 1 to 3 years.

When you buy a bond, you are essentially lending money to the issuing company or government agency.

They are obligated  to pay back the full purchase price at a particular time, which is called the “maturity date.” 

Short-term bonds are low risk investments and you can have access to your money fairly quickly.

As with all bond funds, one of the risk of short term bond funds is that when interest rates rise, the prices of the bonds in the fund decrease.

But short term bond funds have a reduced risk of default, because the bond funds are backed by the full faith and credit of the U.S. government.

Moreover, because the term is short, you will earn less money on it than on an immediate-term or long term bond fund.

Nonetheless, they are still competitive and produce higher returns than money market funds, Certificate of Deposits (CDs), and banks savings accounts. And short-term bonds are more stable in value than stocks.

At a minimum, don’t buy a short-term bond fund if you’re saving for retirement or if you want to hold your money longer.

If you’re looking to invest your money for the long term and are still looking for safety, consider investing in Vanguard index funds. 

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Short-term bonds: why do you need to invest in them?

You should invest in short-bonds if you intend to use the money in a few years or so. However, don’t push your emergency cash into bonds. That is what a bank savings account is for.

Also, you should not put too much of your long term investment money into bonds, either. If you have a long term goal for your money, it’s best to invest in mutual funds such as Vanguard mutual funds, real estate, or your own business.

Here are some situations where you should invest in short term bonds.

  • You want to stabilize your investment portfolio. If you have other aggressive investments, you may need to balance it out with short term bond funds. The reason is because short term bonds are safer comparing to stocks.
  • Buying a house.
  • Retirement. If you’re thinking of retiring in a few years, short-term bonds are appropriate.
  • Purchasing a car.
  • You’re a conservative investor. Not all investors can stomach the risk of losing all of their money due to the market volatility. So instead of investing in stocks, which falls on the riskier end of the securities spectrum, you should invest in short term bond funds.

Best short-term bond funds to consider:

Most people prefer to buy bonds through a broker such as Vanguard or Fidelity.

If you’re looking for the best short-term bond funds to buy now, consider these options:

  • Vanguard Short-Term Treasury Index Fund Admiral Shares (VSBSX)
  • Vanguard Limited-Term Tax Exempt Fund Investor Shares (VMLTX)
  • The Fidelity Short Term Bond Fund (FSHBX)
  • Vanguard Short-Term Tax-Exempt Fund Investor Share (VWSTX)
  • Vanguard Short-Term Investment Grade fund (VFSTX)
  • T. Rowe Price Short-Term Bond Fund (PRWBX)
  • Vanguard Short-Term Bond Index Fund (VBIRX)

Tax free short-term bonds

There are some short-term bond funds that are both state and federally tax free. But there are not too many out there.

However, the ones that are available are good investments. So, if you are in a low state bracket and in a high federal bracket, consider investing in these Vanguard bond funds.These are federally tax free bond funds:

Vanguard Limited-Term Tax Exempt Fund Investor Shares (VMLTX)

This Vanguard bond fund seeks to provide investors current income exempt from federal taxes. The fund invests in high-quality short-term municipal bonds.

This bond fund has a maturity of 2 years. So, if you are looking for a fund that provides modest income and is federal tax-exempt, the Vanguard Limited-Term Tax Exempt Fund is for you.

The fund has an expense ratio of 0.17% and a minimum investment of $3,000. This makes it one of the best short term bonds to buy.

Vanguard Short-Term Tax-Exempt Fund Investor Share (VWSTX)

Like the Vanguard Limited Short Term fund, this fund also provides investors with current income that is exempt from federal income taxes.

The majority of the fund invests in municipal bonds in the top three credit ratings categories. It also invests in medium grade quality bonds.

This fund too has an expense ratio of 0.17% and a minimum investment of $3,000, making it one of the best short term bond funds.

U.S Treasury Short-term Bond Funds: Vanguard Short-Term Treasury

If you’re interested in a bond fund that invests in U.S. Treasuries, then U.S.Treasury bond funds are a great choice for you. One of the best U.S.Treasury bond funds is the Vanguard Short-Term Treasury.

This bond fund seeks to track the performance of the Bloomberg Barclays US Treasury 1-3 Year Bond Index. The Vanguard Short-Term Treasury invests in fixed income securities with a maturity between 1 to 3 years.

This bond fund has an expense ratio of 0.07% and an initial minimum investment of $3,000. Currently, this short term bond fund has a 1-year yield of 4.51%, making it one of the best short term bond funds.

Of note, this fund is also available as an ETF, starting at the price of one share.

The Fidelity Short-Term Bond Fund (FSHBX)

The Fidelity Short Term Bond Fund is one of the best out there for those investors who want to preserve their capital. This fund was established in March of 1986 and seeks to provides investors with current income.

The fund managers invests in corporate bonds, U.S. Treasury bonds, and assets backed securities. Over the last 10 years, this bond fund has a yield of 1.98% and a 30-day yield of 1.98%. This Fidelity bond fund as an expense ratio of 0.45%. There is no minimum investment requirement.

Taxable short-term bond funds: Vanguard Short-Term Investment Grade fund (VFSTX)

If you are not in a high tax bracket, then you should consider investing in a taxable short term bond fund. One of the best out there is the Vanguard Short-Term Investment Grade fund.

This bond fund provides investors exposure to high and medium quality investment grade bonds, such as corporate bonds and US government bonds. This fund has an expense ratio of 0.20% and an initial minimum investment of $3,000, making it one of the best short term bond funds out there. 

T. Rowe Price Short-Term Bond Fund (PRWBX)

The T. Rowe Price Short-Term Bond Fund invests in diversified portfolio of short term investment-grade corporate, government, asset and mortgage-backed securities. This bond fund also invests in some bank mortgages and foreign securities. This fund produce a higher return than a money market fund, but less return than a long-term bond fund. The T. Rowe Price Short-Term Bond Fund has a minimum investment requirement of $2500, making it one the most favorite short term bond funds out there.

Vanguard Short-Term Bond Index Fund (VBIRX)

The Vanguard Short-Term bond is a good choice for the conservative investor. It offers a low cost, diversified exposure to U.S. investment-grade bonds. This has fund has a maturity date between 1 to 5 years. Moreover, the fund invests about 70% in US government bonds and 30% in corporate bonds. The bond fund as an expense ratio of 0.07% and a minimum investment requirement of $3,000.

How to Invest in Short-Term Bonds

If you’re considering in investing in these or any of Vanguard bond funds, you need to do your due diligence.

First, think about what you need the bond fund in the first place. Is it to diversify your investment portfolio?

Are you a conservative investor who need a minimize risk at all cost? Or, do you want to invest in a short term bond fund because you need the money to use in a few years for a vacation, buying a house, or planning for a wedding?

Once, you have come up with answers to this question, the next step is to do your research about the best bond fund available to you.

Use this list to start. If it’s not enough, do your own research.

Look into how much the initial minimum investment is to buy a bond fund. Most Vanguard short term bond funds require a $3,000 minimum deposit.

Some Fidelity bond funds, however, have a 0$ minimum deposit requirement.

Next compare expense rations, performance for different funds to see if they match your investment goals. But you have to remember that past performance is not an indication of future performance.

Your final step is to open an account to buy your bond funds. If you choose Vanguard, you can do so at their website.

How do you make money with short-term bonds?

You can make money with short-term bonds the same ways you make money with a mutual fund (i.e., dividends, capital gains, and appreciation). But most of your returns in a bond fund comes from dividends.

The bottom line

In brief, short-term bonds are great investment choices if you have short term saving goals. You may be interested in buying these bonds because you expect to tap into your investment within a few years or so. Or, you want a more conservative investment portfolio.

Short term bonds produce higher yields than money market funds.

The only problem is that the share prices can fluctuate. So, if you don’t mind market volatility, you may wish to consider short-term bonds.

Speak with the Right Financial Advisor

  • If you have questions beyond short-term bonds, you can talk to a financial advisor who can review your finances and help you reach your goals (whether it is making more money, paying off debt, investing, buying a house, planning for retirement, saving, etc).
  • Find one who meets your needs with SmartAsset’s free financial advisor matching service. You answer a few questions and they match you with up to three financial advisors in your area. So, if you want help developing a plan to reach your financial goals, get started now.
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The post 7 Best Short-Term Bonds Funds to Buy in 2020 appeared first on GrowthRapidly.

Source: growthrapidly.com

How to Invest Like Mark Cuban

Mark Cuban’s advice is universal: Focus on eliminating debt, saving money, and living cheaply. Here’s more advice from the man worth $4.1 billion.

The post How to Invest Like Mark Cuban appeared first on The Dough Roller.

Source: doughroller.net

Do You Have The Right Retirement Account? Check Out The Top 6 Best Retirement Accounts For 2021

Taking control of your retirement begins with investing in retirement accounts. Here, I examine the best retirement accounts to get you on track.Taking control of your retirement begins with investing in retirement accounts. Here, I examine the best retirement accounts to get you on track.

The post Do You Have The Right Retirement Account? Check Out The Top 6 Best Retirement Accounts For 2021 appeared first on Money Under 30.

Source: moneyunder30.com

3 Credit Cards for Retirement Investing

The age of the pension has swiftly declined since the 1980s, and more Americans than ever before must invest in their own retirement. Retirement planning and investing is crucial, as it can help you get through your golden years comfortably.

When you have many other financial obligations, it can be difficult to set aside funds for retirement. But some credit cards can help by earning rewards that can be redeemed directly into an investment account.

Here are three credit cards with retirement or investing rewards.

  1. Fidelity Rewards Visa Signature Credit Card

Rewards: Two points per dollar spent on all purchases.

Sign-Up Bonus: None

Annual Fee: $0

Annual Percentage Rate (APR): Variable 15.24% APR on purchases and balance transfers.

Why We Picked It: You can redeem your rewards directly into Fidelity retirement accounts.
For Your Retirement:
Every purchase earns two rewards points on the dollar. Points can be redeemed as deposits into eligible Fidelity retirement accounts, including a Traditional IRA, Roth IRA, Rollover IRA, or SEP IRA. Every $2,500 you spend is worth a $50 rewards deposit.
Drawbacks:
If you aren’t a Fidelity member, you won’t see much value from this card.

  1. Bank Americard Cash Rewards Credit Card

Rewards: 3% cash back on gas and 2% cash back at grocery stores and wholesale clubs on up to $2,500 in purchases each quarter; 1% back on all other purchases.

Signup Bonus: $150 bonus cash if you spend $500 in the first 90 days.
Annual Fee:
None

APR: 0% APR for 12 months on purchases and balance transfers, then variable 14.24% to 24.24% APR.

Why We Picked It: Merrill Lynch investors can use this card to boost their investments.
For Your Retirement:
If you use a Merrill Lynch Cash Management Account to invest in your retirement, this card can help you increase your contributions. Cash back can be redeemed for an electronic deposit into an eligible Cash Management Account, and those redemption types earn an extra 10% bonus every time you redeem.
Drawbacks:
If you don’t have an eligible Bank of America or Merrill Lynch account, you’ll lose out on the 10% redemption bonus.

  1. Edward Jones World Card

Rewards: One point per dollar spent on all purchases.

Signup Bonus: $100 account deposit if you spend $500 in the first 90 days.
Annual Fee:
None

APR: Variable 14.24% APR on purchases; 0% APR for 12 months on balance transfers, then variable 14.24% APR.

Why We Picked It: Edward Jones members can redeem rewards for account deposits.
For Your Retirement:
Every purchase you make earns one point on the dollar. Your points can be redeemed for cash deposits into an eligible Edward Jones account, including IRAs.
Drawbacks:
You can only access this card if you’re an Edward Jones customer.

Choosing a Credit Card to Help You Save for Retirement

There are many ways to save for retirement: 401(k) plans, IRAs, and more. If you aren’t saving for retirement yet (or you think you need to save more), the time to start is now. The earlier you begin, the better shot you have of reaching your retirement goals. Until you decide on the best investment strategy, credit cards should be a secondary concern at best.

When you set up an investment account, you should understand all the different ways you can contribute, and find out if credit card rewards are an option (some investment accounts are more flexible than others).

Credit cards that let you directly redeem your rewards for an investment deposit are convenient, but they’re not the only way to contribute rewards to retirement. If you have a retirement account that accepts cash contributions, you can simply redeem any credit card’s cash back rewards for a check or bank deposit, then turn around and put that money in your account.

Whether you choose a rewards card with investment redemptions or not, try to find one that fits your spending habits. If you spend the most money at one or two merchant types, you should try to find a card that rewards those purchases. If your spending is unpredictable, you should find a card with a flat rewards rate on every purchase.

What Is Required to Get a Credit Card for Retirement Investing?

The best rewards cards require good or excellent credit. Before you apply, you should check your credit score to see if you’ll make the cut. You can check your credit score for free at Credit.com.

You can also carry on the conversation on our social media platforms. Like and follow us on Facebook and leave us a tweet on Twitter.

Note: It’s important to remember that interest rates, fees, and terms for credit cards, loans, and other financial products frequently change. As a result, rates, fees, and terms for credit cards, loans, and other financial products cited in these articles may have changed since the date of publication. Please be sure to verify current rates, fees, and terms with credit card issuers, banks, or other financial institutions directly.

Image: iStock

The post 3 Credit Cards for Retirement Investing appeared first on Credit.com.

Source: credit.com

How Much Should You Spend on Rent?

One of the most exciting parts of becoming an adult is moving out of your old place and starting your own life. However, as is the case with most major life events, moving out comes with a lot of added responsibility. Part of this duty is knowing and understanding your budget when shopping for the perfect apartment, condo, duplex, or rental house. So how much should you really spend on rent?

The 30 Percent Threshold

The first step in deciding how much you should spend on rent is calculating how much rent you can afford. This is done by finding your fixed income-to-rent ratio. Simply put, this is the percentage of your income that is budgeted towards rent.

As a general rule of thumb, allocating 30 percent of your net income towards rent is a good place to start. Government studies consider people who spend more than 30 percent on living expenses to be “cost-burdened,” and those who spend 50 percent or more to be “severely cost-burdened.”

When calculating your income-to-rent ratio, keep in mind that you should be using your total household income. If you live with a roommate or partner, be sure to factor in their income as well to ensure you’re finding a rent range that’s appropriate for your income level.

If you’re still unsure as to how much rent you can afford, consider an affordability calculator. Remember to consult a financial advisor before entering into a lease if you’re unsure if you’ll be able to make rent.

Consider the 50/30/20 Rule

Consider the 50:30:20 Rule

After you’ve set a fixed income-to-rent ratio, consider the 50/20/30 rule to round out your budget. This rule suggests that 50 percent of your income goes to essentials, 20 percent goes to savings, and the remaining 30 percent goes to non-essential, personal expenses. In this case, rent falls under “essentials.” Also included in this category are any expenses that are absolutely necessary, such as utilities, food, and transportation.

Let’s consider a hypothetical situation in which you make $4,000 per month. Under the 50/20/30 rule with a fixed income-to-rent ratio of 30 percent, you have $2,000 (50 percent) per month to spend on essential living expenses. $1,200 (30 percent) goes to rent, leaving you with $800 per month for other necessary expenses such as utilities and food.

Remember to Budget for Additional Expenses

Now that you’ve budgeted for rent and essential utilities, it’s time to make a plan for how you’re going to furnish your apartment. One of the biggest shocks of moving out on your own is how expensive filling a home can be. From kitchen utensils to lightbulbs and everything in between, it can be pricey to make your space perfect.

For the most part, furniture falls under the 30 percent of personal, non-essential expenses. Consider planning ahead before a move and saving for home goods so that you don’t go into major debt when it comes time to move out.

Be on the Lookout for Savings

If your budget is slightly out of reach for your dream apartment, try to nix unnecessary costs to see if you can make it work. Look for ways to cut down on utilities, insurance, groceries, and rent.

Utilities: Water, heat, and electricity are all necessities, but your TV service isn’t. Cut the cord on TV and mobile services that may not serve you and your budget anymore. Consider swapping out your light bulbs for eco-friendly and energy-efficient light bulbs to cut down your electric bill.

Insurance: Instead of paying monthly renters insurance rates, save a fraction of the cost by paying your yearly cost in full. If you have a roommate, ask to share a policy together at a premium rate.

Groceries: Swap your nights out for a homemade meal. You can save up to $832 a year with this simple habit change. When grocery shopping, add up costs as you shop to ensure your budget stays on track.

Rent: One of the best ways to save on rent is to split the bill. Consider getting roommates to save 50 percent or more on your monthly rent.

A lease is not something to be entered into lightly. Biting off more rent than you can chew can lead to unpaid rent, which can damage your credit score and make it harder to find an apartment or buy a home in the future. By implementing these best practices, you’ll hopefully find a balance between finding a place you love and still having room in your budget for a little bit of fun.

Sources: US Census Bureau

The post How Much Should You Spend on Rent? appeared first on MintLife Blog.

Source: mint.intuit.com

How to Budget Groceries: 11 Easy Tips

Have you ever sat down to go over your budget only to find out that you’ve outrageously overspent on food? Local, organic, artisan goods and trendy new restaurant outings with friends make it easy to do. With food being the second highest household expense behind mortgage or rent, our food choices have a huge impact on our budget. Using this monthly budget calculator can also help guide how to budget for food. 

You may be surprised to find out that the most nutrient-dense foods are often the most budget-friendly. It’s not only possible, but fun and easy to eat nourishing, delicious food while still sticking to your budget. Here are 11 ways to help you learn how to budget groceries.

1. Track Current Spending

Before you figure out what you should be spending on food, it’s important to figure out what you are spending on food. Keep grocery store receipts to get a realistic picture of your current spending habits. If you feel inclined, create a spreadsheet to break down your spending by category, including beverages, produce, etc. Once you’ve done this, you can get an idea of where to trim down spending.

2. Allocate a Percentage of Your Income

How much each household spends on food varies based on income level and how many people need to be fed. Consider using a grocery calculator if you’re not sure where to start. While people spent about 30 percent of their income on food in 1950, this percentage has dropped to 9–12 today. Consider allocating 10 percent of your income to food as a starting point, and increase from there if necessary.

3. Avoid Eating Out

This is the least fun tip, we promise. Eating out is a quick and easy way to ruin your food budget. If you’re actively dating or enjoy going out to eat with friends, be sure to factor restaurants into your food budget — and strictly adhere to your limit. Coffee drinkers, consider making your favorite concoctions at home.

4. Plan Your Meals

It’s much easier to stick to a budget when you have a plan. Plus, having a purpose for each grocery item you buy will ensure nothing goes to waste or just sits in your pantry unused. Don’t be afraid of simple salads or meatless Mondays. Not every meal has to be a gourmet, grandiose experience.

5. Keep a Fridge Grocery List

Keep a magnetized grocery list on your fridge so that you can replace items as needed. This ensures you’re buying food you know you’ll eat because you’re already used to buying it. Sticking to a list in the grocery store is an effective way to keep yourself accountable and not spend money on processed or pricey items — there’s no need to take a stroll down the candy aisle if it’s not on the list.

6. Eat Before You Go to the Store

If your mother gave you this advice growing up, she was onto something: according to a survey, shoppers spend an average of 64 percent more when hungry. Sticking to a budget is all about eliminating temptations, so plan to eat beforehand to eliminate tantalizing foods that will cause you to go over-budget.

7. Be Careful with Coupons

50 percent off ketchup is a great deal — unless you don’t need ketchup. Beware of coupons that claim you’ll “save” money. If the item isn’t on your list, you’re not saving at all, but rather spending on something you don’t truly need. This discretion is key to saving money at the grocery store.

8. Embrace the Bulk Section

Not only is the bulk section of your grocery store great for cheap, filling staples, but it’s also the perfect way to discover new foods and bring variety into your diet. Take the time to compare the price of buying pre-packaged goods versus bulk — it’s almost always cheaper to buy in bulk, plus eliminating unnecessary packaging is good for the planet.

Bonus: a diet rich in unprocessed, whole plant foods provides virtually every nutrient, ensuring optimal health and keeping you from spending an excess amount on healthcare costs.

9. Bring Lunch to Work

Picture this: you’re trying to stick to a strict food budget, and one day at work you realize it’s lunchtime and you’re hungry. But alas, you forgot to pack a lunch. All the meal planning and smart shopping in the world won’t solve the work-lunch-dilemma. Brown-bagging your lunch is key to ensuring your food budget is successful. Plus, it can be fun! Think mason jar salads and Thai curry bowls.

10. Love Your Leftovers

Would you ever consider throwing $640 cash into the trash? This is what the average American household does every year — only instead of cash, it’s $640 worth of food that’s wasted. With millions of undernourished people around the globe, throwing away food not only hurts our budget but is a waste of the world’s resources. Tossing food is no joke. Eat your leftovers.

11. Freeze Foods That Are Going Bad

To avoid wasting food, freeze things that look like they’re about to go bad. Fruit that’s past its prime can be frozen and used in smoothies. Make double batches of soups, sauces, and baked goods so you’ll always have an alternative to ordering takeout when you don’t feel like cooking.

Sticking to a food budget takes planning and discipline. While it may not seem fun at first, you’ll likely find that you enjoy cooking and trying a variety of new foods you wouldn’t have thought to use before. Being resourceful and cooking healthfully is a skill that will benefit your wallet and waistline for years to come.

 

Sources: Turbo | Fool | Forbes | Medical Daily | GO Banking Rates | Value Penguin

The post How to Budget Groceries: 11 Easy Tips appeared first on MintLife Blog.

Source: mint.intuit.com

Mint Money Audit: Managing Money When You Make Enough

Anna’s email requesting help with her finances began with a unique confession.

“Farnoosh, my money problem garners little sympathy,” the 32-year-old wrote. “My issue is that I make too much of it.”

Now, THIS is interesting, I thought. I immediately followed up with many questions.

Here’s what I learned through our conversation:

The Denver-based Mint user earns $220,000 per year as an engineer. Anna’s also benefited from years of big bonuses and her net worth, not including her home equity, is close to a million dollars.

After paying taxes and health benefits and maxing out her 401(k), Anna takes home between $8,000 and $10,000 each month. Her expenses mainly consist of a $1,200 mortgage payment, car insurance, gas, food and utilities, amounting to maybe a few thousand dollars per month.

The rest either goes into savings where she stashes about $5,000 to $10,000 for unexpected expenses or into a brokerage account where she has roughly $800,000 invested. A wealth management firm manages that portfolio and charges, she says, an annual 1% fee.

Anna has no consumer debt, besides her mortgage, which amounts to about $338,000. It’s a 30-year fixed rate loan with a 2.85% interest rate. The home has appreciated in recent years with about $100,000 in equity (including Anna’s initial 20% down payment).

So, what is the problem, exactly?

“My big worry is that I don’t have the habits to manage money well,” Anna told me. Her sizeable bank balance has her feeling financially free, although she worries about getting carried away with spending sometimes.

“When I see money in my bank account I rationalize that ‘yea, that vacation is doable. I don’t hold back on the things that may seem frivolous,’” she says. But It seems she wants more financial grounding and to be able to evaluate expenditures and price tags more critically.

Anna’s situation may be unique, but I think relatable in the sense that we all would like to feel more thoughtful with how we spend, save and invest. And while some may do well with earning money, it should not be assumed that they can also manage that money well.

I applaud Anna for wanting to be sure that, even with an impressive net worth, she is actually making wise financial decisions.

Here’s my advice.

Take a Deep Breath

No need to panic when spending on things and experiences that you enjoy. From what I can tell Anna’s prioritizing the serious financial stuff first like contributing the max to her 401(k) and saving all of her annual bonuses in a brokerage account. She has no credit card debt and pays all her bills on time. That’s terrific.

Sometimes we just want to hear that we’re on the right track with our money and I have a very simple way to measure this:

If you manage each paycheck by saving, investing and paying all your bills first, then by all means, you’re entitled to have fun with whatever is left without any fear or regret. Am I right?

If you’ve done the good work of taking care of your future with your money, then don’t hesitate treating yourself and others with the remaining funds today. Splurge away and enjoy your hard-earned money. And remember to enjoy the moment.

Ditch Your Money Managers

I do think Anna could find a better home for her investments.

Paying one percent of her managed assets to this firm may not seem that high of an annual fee. But when you think about Anna’s balance of $800,000, that’s $8,000 this year. What about next year and the decades after that as she contributes more to the account? That fee, compounded over the next 30 years, will amount to – conservatively – over one million dollars. Ouch.

That doesn’t even factor in the expense ratios for each mutual fund that’s in her portfolio.

If all Anna seeks is investment assistance, she may be better suited stationing her money with an automated wealth platform or robo-advisor where her money is largely invested in low-fee index funds or exchange-traded funds (ETF) and the portfolio management fee is typically 0.50% or less.

Of course, breaking up with your financial advisor is not always so simple. It’s especially hard for Anna, as she equated her money managers to “father figures.”

If I were Anna, I would just explain to my advisors over email something like, “I want be more conservative with my money and that includes being extra mindful of the various fees that I’m paying. To that end, I’ve decided to manage my money more independently. I’m sure you can understand. I appreciate your help over the years. Please let me know next steps.”

Planners know the drill and are used to having clients end relationships.  Stay strong. Nobody can really argue with the fact that saving money is a good thing!

Establish Short and Long Term Goals

Anna wants to spend and save with more conviction. I think having some concrete, tangible goals can help.

For example, she shared that she’d like to get married, have a family and own two homes – one near her office downtown and another in the mountains as a getaway.

So, the next step is to understand what these goals cost. What are, say, the going prices on a vacation home in her state? How much might she want to stash in a separate account for the future down payment on this property? Knowing the underlying costs of her goals can better direct how much to spend elsewhere.

Next time she’s planning a vacation, she may be more inclined to price compare or hunt down better deals, as opposed to just judge whether the trip is financially “doable” by the amount of money in her bank account. Now she’ll have the image of that second home and its costs and will make a more informed choice.

Contribute to a Cause

Last but not least, when you feel you make more than enough, like Anna does, this is a great opportunity to be extra charitable. If she’s seeking a way to give her money more meaning and feel purposeful in her financial life, this is a truly wonderful way to go about it. Discover a cause that you’re passionate about and make an impact as a volunteer and donor.

Have a question for Farnoosh? You can submit your questions via Twitter @Farnoosh, Facebook or email at farnoosh@farnoosh.tv (please note “Mint Blog” in the subject line).

Farnoosh Torabi is America’s leading personal finance authority hooked on helping Americans live their richest, happiest lives. From her early days reporting for Money Magazine to now hosting a primetime series on CNBC and writing monthly for O, The Oprah Magazine, she’s become our favorite go-to money expert and friend.

The post Mint Money Audit: Managing Money When You Make Enough appeared first on MintLife Blog.

Source: mint.intuit.com