You might be asking yourself. how much house can I afford? And to tell you the truth, that’s the right approach when wanting to buy a property. Before reading on, if you’d like to watch my YouTubevideo about this click right here.
Too often people jump into real estate really fast and end up becoming what is commonly know in the personal finance world as “house poor”. Which is just a not-so-fun way to say that someone has way too high of a monthly payment based on their income to be able to hit other financial goals.
That last part is the big takeaway, hit other financial goals.
You hear it all the time that a home is the biggest financial decision you’ll probably make. While that may be true for most, a lot of people tend to forget that they will have other financial goals they will want/need to achieve. That brings us to the big question in today’s article. How much house can I afford?
Of course, there isn’t a one size fits all for the answer, but fear not because there is a good rule of thumb you can go by. The big rule of thumb is having a house payment (that includes taxes, insurance, and HOA) at around 25%-30% of your income. The range is there because of the “no size fits all” thing we just talked about.
Now you might be asking some questions in your head. Why that range? How can I figure this percentage out? and “Why is Denis the coolest?”
Okay, that last one maybe not so much, but I can help with the first two.
Why 25%-30%? This is because you don’t want to be house poor like we talked about. Anything more than 30% of your income is going to make it difficult to save, invest and plan for other financial goals. Keep in mind too that there are other expenses associated with the home that are in the monthly budget. Such as utilities, maintenance, repairs, etc.
So how do you figure out that percentage? Simple. You take what your monthly payment is estimated to be and divide that by your monthly income and you get your percentage.
If you want an easy clean spreadsheet that has all the math set up you can purchase the one I made click this link here.
This spreadsheet allows you to plug in the basic information you have and it will do all the calculations for you. If you’re looking for a new house, this is a great tool to give you an idea of how much house you can afford.
You can watch my YouTube video as well to see how to use the spreadsheet. Just click right here to take you to YouTube! Best of luck on your journey to getting a house you can afford!
Your friendly neighborhood personal finance guy, Denis
Some of the links included in this post are affiliate links. Read my disclosure policy.
Hey Money Nerds!
Today I wanted to do a first look at SoFi Money. Now, over the last few years, I’ve been pretty much doing all my banking online with Capital One 360 and love it. So when I hear of new online banks (especially ones offering sweets sign-up bonuses) I’m all ears and ready to go. This first look isn’t my full review, I will be doing that after I’ve had a few weeks/months under my belt with this account. That will be a full pros/cons post.
So while doing research for a video about churning bank accounts to make extra money, SoFi Money was one of the banks that popped up. I’ve known of SoFi because of my article on The Best Student Loan Companies. They are a big player in the refinance game. So when I found out about them getting into online banking I was excited.
The first thing to note with SoFi Money is that it’s pretty much a savings and checking account rolled into one. And as of this writing, you can only have one account overall (I really hope this changes for the future). The interest rate when I first opened the account was 2.25% which is on the higher end of most online banks*. I love earning money on my money that’s just sitting there. This interest is earned daily and paid out once a month.
*Update: As of 1/16/20 the interest rate dropped to 1.60% For me, getting only one account would make it tough to use this as my overall bank. I prefer to have multiple checking and saving accounts as it keeps my money well organized. Now on the other hand, if you’re wanting a place to store your emergency fund or other types of sinking funds in a bank with a high-interest rate, this might just work.
When I transfer funds into the account, just like most online banks it does take some time to process. So far it’s about 2-3 business days before the money is available to use. That can hold some people off because to be real, that’s a long time to wait. With all the Free Money Transfer Apps out there that typically take 1 business day to transfer, and even Zelle that’s almost instant, 3 days is an eternity.
Check out my video on YouTube for the SoFi Set-Up Tutorial right here👇
Fees are killer when it comes to traditional banks and thankfully SoFi money has no fees when it comes to managing your account. I haven’t tested what would happen if I charged more than what I had available but based on what I’ve read in the terms, I wouldn’t be crazy fees.
You do also get a debit card to go with your online bank. It took about 5 business days for my card to arrive at my home (you put in the address during the sign-up process). Which is nice and makes using your money in the account much easier, no need to transfer to your regular bank at that point.
SoFi Money does provide an account number and routing number for you which may seem like a no-brainer but other cash management systems such as Venmo and Cash App don’t. So why is this important? For paying bills! You can pay bills, deposit checks and send money all with the app.
Speaking of the app, it’s straight forward in what it can do. Nothing special about the app right off the bat and all the important information is easy to find. They have a nice weekly spending chart to help you keep track of how much is going out of the account. If you have any other loans or invest with SoFi this will actually be the same app. Everything is in one location which depending on the person can be a good or bad thing.
Overall as a first look, I’m pretty excited for more online banks to become the norm for people. With little to no fees, high yield interest rates, and almost all the features of a regular bank. What’s not to love? I think the lack of multiple accounts will be the biggest drawback in the long run for me but I’m still excited to test out the app and see how it works for a few weeks/months. I’ll post my full review here on-site and YouTube in the coming months.
SoFi Money First Look: 3.8/5
Sign-up with SoFi money right here today with this referral link to earn a sign-up bonus. Deposit $100 within the first 14 days of opening the account. *The sign-up bonus can change at any time.
Some of the links included in this post are affiliate links. Read my disclosure policy.
There are many great reasons to start a side hustle to make some extra money. From paying off debt to building up extra savings or even some extra fun money it’s always nice to earn some extra dough. Here’s a list of side hustles that you can get started with to make some extra money. I will also have my video linked below from my YouTube channel if you prefer to watch. 👇
1. YouTube I’ve been doing YouTube for about two years as a side hustle and at this point, I’m making around $1,300-$1,800 a month. As a side hustle, this one does take some time to build but highly rewarding down the road. Many of the videos are continuing to get views and earn money months and even years after creating them.
This side hustle allows you to earn money from creating content around the things you love, which helps keep you driven and excited to come up with video ideas. If you’d like to see what you can earn with YouTube check out my video where I go over my ad revenue here.
2. Teaching English Online Some of the best side hustles are the ones you can do directly from home or from anywhere. Teaching English online is one of those side hustle that can be flexible for any schedule.
One of the most popular teaching platforms is called VIPKid, I’ll link it up right here.
This is the company my wife ended up going with when she started her side hustle of teaching online. Some of these companies do have requirements such as a college degree and some require other certifications. But once you are approved you get to choose when you want to work and for how long, of course, it’s partially dictated by the busy hours of when students are typically online.
3. Rent Out Your Space This one can seem pretty daunting to get started but thanks to Airbnb has made renting out your space simple and easy to do it.
Most people think you need to rent out your entire home, which isn’t the case. You can rent out rooms to make some extra money. As well as if you have an empty rental property, using Airbnbcan be a great solution while you’re looking for full-time tenants.
**Please check with your city policies on renting out your space. This side hustle might not be for everyone, but can be a great way to make some change every now and then. Use the link hereto start listing your extra space.
4. Sell your skills In this sharing economy, you can more easily share your skills with the world. Fiverr is a great platform to connect you with people who need your help. This includes graphic designers, musicians, accountants, and much more. Originally Fiverrwas a place where you were limited to selling your skills for $5 (hence the name) but has since evolved to have many different price points. In fact, I think more often than not I pay for a job well over $5 nowadays. Check out the Fiverr website and see what skills are being offered and if you have something similar to give.
5. Sell Your Crafts/Products If you are the creative type or just love making spreadsheets for others to use check out Etsy. This site allows you to have a shop in their marketplace to sell your products to a whole world of people.
You would be surprised at how many amazing, creative and unique storefronts there are on the site. Similar to selling your skills, check out the Etsy website and see for yourself what people are selling and for how much. This will give you a really good idea of what’s possible on the site.
6. Dog Walking Apps Why not have a ton of fun while making some side money. Dog walking apps are becoming bigger and bigger every year. The two biggest that I know of in this space are Wag! and Rover.
There are many options that you can set to make sure you only have to do the things you are willing to do; such as just walking the dog, having it stay in your home, or just check in on them.
7. Blog/Podcast Similar to making YouTube videos, blogs and podcasts are great for those who have something passionate they’d like to share with the world.
These can also take time to build up an audience and income but can become semi-passive as you earn from past work. For some people, these typically get started as a hobby and the money isn’t an issue since the passion drives you to continue producing content.
With how much content is out there in the world you can check out YouTube videos, blogs, and podcasts to learn how to get started on your blog/podcast side hustle. If you’re curious, I use Bluehostfor running this site and I absolutely love how simple and easy it is to use over others such as wordpress or hostgator.
8. Refer-A-Friend/Affiliate This one is an interesting one and maybe one you haven’t seen on a list before, at least the refer-a-friend part. So how is this part of the list? Well, many refer-a-friend programs are associated with the services you might already be using and a great way to make some extra money. This is similar to affiliate programs that allow companies to pay you for sending people over to their site.
You can easily check with the services you’re using today by going on the app or even googling “<Example Company> refer-a-friend” and you’ll see what’s available.
If you have a platform with a decent amount of followers (1k+), you can make some nice extra change. Just make sure to only refer people to the things you like and would recommend anyways. Here is a great example of a refer-a-friend program. It’s with SoFi Money which is a simple fee-free online bank. If you have an account with them, you can refer others with a special link on your profile to make an extra $50. The best part of this one is the guest also receives a $50 bonus.
I’ll put my refer-a-friend link here for you to check out the bank and start recommending it to others if you end up enjoying the bank as much as I do.
Conclusion Test out some of these side hustles to see which one works best for you. Not all types of hustles work for everyone so it’s a good idea to keep trying until you find something that clicks best for you. So go out there and start making some extra money from side hustles!
Some of the links included in this post are affiliate links. Read my disclosure policy.
Today we’re taking a look at some of the best high-interest savings accounts out there right now. I personally have been using an online bank with Capital One 360 since 2011 and can’t really go back to traditional banks. Most online banks tend to offer some great interest rates and little to no fees. You can find my YouTube video about this topic below.
Let’s get into this list. This list won’t be in any particular order and keep in mind that these rates can change at any moment. Last updated: 1/16/2020
Check out these different companies and see which one offers the best overall benefits that fit your personal finance. Start earning more money on your money today and enjoy those higher interest rates!
Some of the links included in this post are affiliate links. Read my disclosure policy. Rates updated as of 11/19/19
Can refinancing help when it comes to paying off student loans?
I believe it can, if done correctly. Just like anything else it will depend on your own situation. Before getting to the top 5 student loan refinance companies I want to mention a few things that I think are important to note. And FYI I have my YouTube video linked below if you prefer to watch. Let’s get to the notes.
The first thing you want to be aware of is if you truly are getting a lower rate. It might sound silly but many people don’t know what their interest rate is for their current loan. Next up is to understand that going through the full process of refinancing, your credit score will be looked at. You want to be prepared by making sure there are no issues with your overall reports that can be causing a lower score.
Checking out what different companies offer is a good idea so you can be sure you’re getting the best rate and deal. You lastly want to pay close attention to the benefits you might be losing when refinancing such as disability and death benefits. Not all companies will offer the same thing, so read what each company offers. Some of these companies also offer a bonus for using the link provided.
Now onto the Top 5 Student Loan refinance companies:
5.Commonbond -Rates starting at Fixed rates from 3.21% APR to 8.16% APR Variable rates from 2.02% APR to 6.30% APR -No early pre-payment penalty -No fees for refinancing -Offers forbearance if needed -Can remove co-signer after 36 on-time payments Sign-up with Commonbond today
4. LendKey -Rates starting at Fixed rates from 3.49% APRVariable rates from 1.90% APR -No early pre-payment penalty -No fees for refinancing -Flexible payment options -Can remove cosigner after 12 on-time payments Sign-up with LendKey today and get a $200 bonus
3. Splash Financial -Rates starting at Fixed rates from 3.48% APRVariable rates from 1.99% APR -They do soft pulls when checking your rates (and a hard inquiry when going through the full process) -No early pre-payment penalty (this is important if you’re trying to pay them off early) -No fees for refinancing (also important) -You want a decent credit score to get their low rates Sign-up with Splash Financial today and get a $300 bonus if you refinance $30k or more.
2. SoFi -Rates starting at Fixed rates from 3.49% APR to 6.67% APR (with AutoPay). Variable rates from 3.50% APR to 6.67% APR (with AutoPay) -They will honor the first six months of any grace period (if you’re still in one) -No early pre-payment penalty -No fees for refinancing -$5k minimum -Can’t remove co-signer -They offer unemployment protection Check out SoFi today
1. Earnest -Rates starting at Fixed rates from 3.45% APRVariable rates from 1.81% APR -Analyzes information beyond your credit score -No early pre-payment penalty -No fees for refinancing -Option to skip one payment a year (and make it up later) -Disability or Death Discharge benefit Sign-up with Earnesttoday
Check out these different companies and see which one would fit your financial situation best.
Keep in mind the rates shown are as of 11.19.19 and can change without notice. Same goes for the sign-up bonus, they can change without notice. Some of the links in this post are affiliate links and I earn a small commission at no additional expense to you.
