How to Avoid Money Mistakes in your 30’s

In our 20’s, we are faced with countless money problems while we learn how to navigate through our newly found financial independence. However, if these problems are propelled into our 30’s—we could find ourselves in a pool of a jeopardized financial future.

As by nature, the older we get the more financial responsibilities are place on our shoulders; and if we don’t manage them efficiently, we are bound to face immense financial difficulties. These worries are not only limited to money matters but also affects negatively on a mental and personal level.

So, keep reading to find out how you can avoid money mistakes and worries when in 30’s!

Credit over Cash—A Big No!

In your 30’s the idea of having a credit card can sound pretty exciting as it comes with multiple benefits, such as rewards, discounts, convenience, and of course the security of knowing that credit cards are easily replaced, whereas, cash isn’t. While it may bring numerous benefits, it can also cause a financial downfall when used needlessly and irresponsibly.

Studies have revealed that, people who spend through their credit cards are bound to spend more, when compared to those making cash payments. With a credit card, it is easy for people to spend and afford products/services that they could otherwise not afford through cash. However, little do they realize about the debts and interest rates being accumulated. And, if you fail to make timely payments, your credit score takes a hit.

Therefore, a smart way to save from the distress is to shop with cash. Of course you can keep your credit card but to only spend on goods that you can afford to pay off later.

Neglecting life insurance/retirement savings

Matters such as life insurance and retirement savings are easy to neglect, especially when you are in your 30’s. This is because; during this time you are bound to face complex financial issues, such as: spending on marriage, babies, house mortgage, etc.

However, during this process, people often tend to overlook the unpredictable. Life insurance can help your loved ones live in the comfort as provided by you, given that you are faced with sudden death. As a result, your demise will not have a dramatic change in their lifestyle. Therefore, consider having an insurance policy as well as a retirement plan to save immense amount of money by the time you roll into your 60’s.

Not going budget friendly

Going over the budget is one of the biggest mistakes people tend to make around the world. If you want to be smart with your finances, start with mapping out a budget plan on an annual basis. Without a budget, you are bound to spend beyond your pockets.

Budget helps you to stick to reality. Such as, realistically afford a house mortgage, car and other expenses. Often times, people avoid budgeting as they feel it limits and deprives them of their wants. But, as a matter of fact, it only shows you in black and white how much you can afford to spend in relation to your earnings.

Your 30’s are the time of life where you should be straight and serious about our finances. Hence, if you want to achieve a debt free financial security in your 30’s combine the aforementioned ways to keep financial worries at bay.

Should Millennials Take Advantage of Long Term Loans?

Millennials are part of the generation that was brought up in times of extreme economical volatility and insecure job market. They have witnessed the disrupting ripples in the value of real estate owned by their parents, and the crashing investment and retirement schemes. As a result, they have become extremely cautious with the plans that can impact their future.

If you ask a millennial about their view regarding long term loans, which forms a part of future plan in itself, they may not appreciate the prospect. Their reservations are justified; but on some fronts, these financial tools can also help them.

Cut the Bulk

Millennials were not blessed with cheaper education unlike previous generations; neither does the cost of living seems to be stalling anytime soon. Despite exercising extreme caution with their spending, they have still found themselves in all types of debts, which they are struggling to pay off. Worst of all, they are applying for more and more payday loans every day. As a result, their credit score is taking a hit.

But, this is where long term loans can help the out. Acquiring a loan, which is substantial enough to meet their current expenses and debts while allowing the terms of repayment that can be tailored according to their capabilities, may help them out. Through a long-term loan, millennials can work towards not only arranging up for their short term and long term finances but also towards restoring their credit score.

Suits Their Conserved Nature

Millenials tend to be more conservative with their spending and stick to budgeting practices. Acquiring a long-term loan with fixed interest rates can help them to plan their budget more appropriately as they won’t have to worry about the market uncertainties in terms of varying interest rates.

Millenials Believe Less in Investments and More in Savings

In order to safeguard their future, millenials tend to take the route of saving rather than investing in a project and enjoying the returns. A research suggests that more than half of the millennials in UK prefer to have cash assets and only 28 percent of their assets forms part of an equity. But this is where they may be getting it all wrong. Royal London suggests that the cost of living is expected to rise by 150% over the next 30 years. Hoarding your savings in the form of cash in such a climate may not be a wise idea after all.

Much better plan would be to take advantage of a long term loan investment like buy-to-let mortgages and not only boost your savings through the returns but also generate a healthy source of income.

Millennials are Dutiful

Millenials are pretty obedient with the task and duties they are entrusted with. At least they try to be. They can use this trait to be regular with their payments of long term loans which may help them to get an incentivized interest rate in future.

Millenials although highly educated lack the basic understanding of the finance industry and it is to no surprise that they don’t consider long term loans as a wise idea. With a bit of help and tutoring, they can be educated over the advantages that long term loans hold for them.

You Saved a Lot of Money? Is it Okay to Reward Yourself Now?

Saving money requires time and vigilance. Smart people take part in effective savings plans and ensure that they do not overspend on the luxuries that they cannot afford with their income. Good money savers may find that they are in an excellent financial position with savings of just a few years. A question that often arrives at this stage is that “What is the right time to reward yourself?” It is always better to answer this question by deeply studying your lifestyle and the way you want your future to pan out.

You cannot save the money that you have in a few months. You must have saved a large sum by calculating your financial requirements over a period of time and ensured that you always spent under the available income. You must have limited your expenses and you may have been living a frugal life. Are you ready to let go of this lifestyle and reward yourself handsomely? Consider these factors first before making the final decision.

Reward Sparingly

It is good to reward yourself if you have maintained good spending habits and ensured that there is a lot of money in your coffers. However, always ensure that your rewarding act should not empty your savings nor put a large dent in them. Plan your rewards so that your monthly savings are always increasing your main saving. There should never be a month with negative saving.

Reward when Your Reach a Goal

This means that you should reward once you reach an important financial goal. You need to plan financial goals for you and break them down in important steps. You can then give yourself incentives by planning a reward after achieving a particular number of objectives. Be sure to design a reward activity that in turn may be good for your finances.

This means that you can enjoy an international trip to countries where you may find good opportunities for business activities. You may also plan to go to a spa where you possibly meet people who can be your future clients.

Reward to Save More

This is an amazing kind of reward often employed by hard core money savers and frugal life experts. They believe that once you are able to save a particular amount of money through healthy habits, it is simply time to expand your range and find healthier spending habits to further increase your routine savings.

This means that you need to become further efficient as a reward of achieving a particular goal of saving.

Never Reward with Emergency Money

If you have put your savings with the intent of using them in an emergency, then you should never reward yourself with this money. You may ideally reward yourself in terms of buying a book or going to watch a movie when you save the next sum of money.

These are few important points that you need to consider before you decide to lavishly reward yourself for saving a lot of money. If you saved a sum of money, then you ideally target a greater sum rather than spending it all on expensive rewards.

How To Apply For USDA Home Loan

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The USDA (United States Department of Agriculture) Rural Development Branch offers low-interest home loans to low-income families. You will only qualify for this low of an interest rate if you are very low income. Another requirement is that the house or property needs to be “rural.”

It doesn’t necessarily mean that you need to live in the village. Maybe a city with 30,000 populations and 30 minutes from the larger city is fine. One of other requirement is the homes are required to be no more than 10 years old. USDA home loan also finance land/home packages with manufactured homes and land up to five acres, this just for the new one. The officer will also complete an inspection of the home and property for you to make sure that the property meet the requirement.

This is the steps to qualify yourself for a USDA Home Loan:

Go to the USDA income and property eligibility site. There you can see if the home or property you want to buy qualifies as “rural,” and if you are belong to their income limitations.

After you are sure that you meet income and location are eligible, go to the USDA site and find the nearest local office. After that You should contact their office and ask for “pre-qualify.” The office will send you pre-qualification forms, if They think You meet the requirement You will be forwarded to a loan application.

When filling out your forms, keep in mind that you can count child support and food stamps as part of your income. After filling the form, usually there is a waiting list, so don’t procrastinate with your application!

After application process, The next steps is pretty much like any other home loan. The USDA loan officer that you are working with will guide you on the process. You will need to provide certain proofs of income and they require you to pay down your debt sometime.

Once you are officially qualified for a loan, you can find home or property. The USDA-RD will fund loans up to five acres and manufactured home packages. For manufactured homes it has to be brand new, so you can’t buy existing home/land. For the home, It can’t be more than 10 years old.

So Let’s take action, get your USDA loan now, also if You’re interested in agriculture You may consider to read some of the info about agriculture in agriculture guide. Actually USDA Home Loan is mainly focused for the development of agriculture in the United States.

6 Reasons You Didn’t Be Eligible For Home Financing

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For most people, the paying for an aspiration house is unavoidably associated with home financing application. What goes on whenever your application for the loan is rejected? In most instances, you will end up shocked, because you can possess a reasonably decent salary and you also may additionally have your advance payment ready. In such situations, the financial institution could have specific top reasons to reject your house application for the loan.

Let’s now discuss the six most probable explanations why your house application for the loan could possibly be rejected.

1. You could have recently taken on a fresh job and may even not have access to high qualifications. As being a fresher inside them for hours a fresh job using a modest salary, the loan company won’t consider your repayment capacity as ideal. In an identical situation, an extremely qualified individual having a high paying job could have greater odds of securing that loan.

2. Your assets and bank statements may also be suggestive of your financial status. If there is a good bank balance, then it’s a solid reason for your favor; however in case your bank account is completely new and shows minimal savings and bank dealings, than the gets a negative point for you personally, as well as your likelihood of loan approval are considerably reduced.

In such situations, the lender might or might not accept the liability of considering the loan application. Understand that all lenders who’re ready to go ahead and take risk in these situations could have a high interest, and could adopt aggressive or unconventional method of recovery, in case there is a repayment default.

3. Your loved ones size and also the quantity of dependents will give a thought about your financial commitments as well as your monthly expenses. Another family members’ qualifications and job holdings may also offer considerable weight and increase chances for approval with the loan. Having one income and lots of dependants is a strong negative point, while several working adults in the household, who will make some pot application for the loan, would considerably increase the chances for securing a mortgage.

4. Balance sheet shows fewer assets and much more liabilities; this results in a negative picture within the mind from the lender. Finance institutions hesitate to provide loans to the people that have unhealthy balance sheets.

5. Your annual income ought to be no less than one-fifth from the amount borrowed you might be requesting, and you will have a minimum of 15-20% with the amount you borrow ready as deposit. If you’ve got requested a really large loan and also the lender sees you don’t have sufficient savings or monthly income, than the could have a poor influence on the credit approval.

6. Other concurrent loans like business loan, home-renovation loan, unsecured loan or auto loan will probably be thought to be liabilities, if they’re ongoing, and definately will considerably lessen your likelihood of securing home financing. However, when you have documented evidence of having cleared these plans with an above average repayment history, than the will certainly are employed in your favor.

Thus, mortgage loans could be accessible to everyone, so long as you retain at heart all of the above-mentioned points. It will be better to be grounded and do your house work before you apply for a financial loan. Planning your financial situation before-hand all night looking for a well-balanced approach regarding first payment would aid you in getting the loan approved.

Bear in mind how the lender can be looking for the borrower! Make an effort to clear off other loans and create a clean slate of the liabilities. Also begin saving far ahead of time before you apply for any house loan, and increase your bank statements. The habit of smoking of standard saving will considerably decrease the stress usually connected with house loan repayments. Keep in mind that your chances for any mortgage loan approval will improve just with time, along with advance planning.

4 Tips On Getting The Best Possible Loan For Your Home

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Bargaining power with the home loan lenders always help you to find the best deal on home loan rate. Below are some tips to get you the best possible deal on home loan rate:

1. Look for the Best Deal
Most home loan lenders usually provide very wide variety of rates and offer various different schemes with various flexible terms and conditions as well. Therefore, make sure to contact these lenders, check their company out on the internet and ask for no obligatory free quote. Get as many quotes as possible from as many lenders as possible in order to make an informed decision. Just confirm yourself that You’re choosing the best deal from those companies. Maybe You can also consider Special Offers and deals from the companies.

2. Compare the rate of the loan
home loan rate usually varies from one lender to the next depending on whether it is fixed or adjustable rate. You need to take into account the possible risks associated with choosing for an adjustable rate of interest. In addition, also do some research and find out on the associated fees and costs for the mortgage. Try to compare rates those lenders by using the same loan amount, term and type. By doing this , you compare on equal footing and thus can make a good decision.

3. Negotiating and Bargaining
After you have made decision what lender to go, Try negotiating and bargaining with the lender as much as is possible. They usually have sufficient leeway in offering you a good discount on the home loan rate. This can be your advantage. If You try to negotiate a discount, you’re possible to just get it! The lenders usually always be eager to get more and more business from you, hence a little bit of bargaining will stand in good stead.

4. Minimize the Associated Costs
You have to ask every possible fees and costs associated with the home loan. This will make you plan out your finances and budget much better. Make sure to list all possible fees associated with a deal. Also during the bargaining process, ask your lender to waive off certain fees or at least reduce some amounts.

Don’t stop here. Try negotiating on the terms and conditions as well. Many times your will be willing to ease up on the payment terms and agreement. For an example, simple things such as extension of the grace period, or reducing the interest rate etc. will work to your advantage, Think about it! You even could mention to your lender about the lucrative offers you had received from other lenders so You have a good bargain. This will prompt your lender to offer a good discounted rate to you. Simply because they don’t want to lose you on the business.