Investment Money Ideas for Families

September 24, 2021 by Leave a Comment

Today, I’m sharing parenting tips on investment money ideas. Money can be tight for many families. Raising children isn’t cheap.  And, all parents want to create a brighter future for their family. Investing your money is one option to consider if you want to improve your financial future.  Most importantly, investing your money will help give your kids the best possible start in life.

 

 

investment money ideas

 

 

Many people think that investing money is for the rich. This couldn’t be further from the truth.  Furthermore, there are many investments available for beginners.  Those investments can be a great way to grow your money. And, you don’t need a million dollars to invest either.  A little money each month will start a nice investment portfolio for your family.  

Investment Money Ideas

 

Yes, investing can be risky, but there are ways to mitigate the risk while also giving yourself a chance at a significant financial upside. However, if you are going to invest in order to boost your family’s finances, you need to diversify your investment portfolio. Putting all your eggs in one basket is setting yourself up for disaster.

 

So, there are lots of different ways to invest, and it doesn’t have to involve investing large sums. Simply setting aside a little money each month and investing it should help you to eventually build  an investment portfolio that’s continually growing. Of course, if you’re investing for the good of your family’s finances, you should stick to safe investment options.

 

Investment Money Ideas for Self-Directed IRA

 

For example, if you’re focused on creating a diversified and varied way of investing, consider a self-directed IRA. These investment vehicles allow you to spread your investment across a range of alternative investment types. Find out more about them below: 

 

 


Infographic designed by: https://www.accuplan.net/

 

Finally, do a little homework or better yet talk to a financial planner.  They will be able to answer any questions you may have.   

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Types of Personal Loans You Can Obtain

May 21, 2021 by Leave a Comment

Today, I’m sharing financial tips on the types of personal loans for individuals. Have you considered applying for a personal loan? This type of decision is generally made by individuals or families who need to consolidate debt, cover unexpected expenses, make large purchases, or pay for home repairs. 

Whatever the reason, borrowing a specific sum of money can help you handle the situation without feeling financial stress. There are various types of personal loans, depending on one’s financial situation, such as unsecured, secured, cosigned, and a personal line of credit. The interest rates and repayment periods are determined by the level of risk lenders take. If shopping for a personal loan, learn more about the most popular types.

 

 

 

types of personal loans

 

Types of Personal Loans: 

 

Unsecured

A large number of borrowers opt for unsecured personal loans since lenders require no collateral.  Furthermore, there’s no physical asset to back up the money you’ve borrowed.  So, lenders have no power to take any of your assets in the event of failing to pay the installments. The credit history of the borrowers and co-signers is what usually serves as a backup.

Moreover, individuals shopping for an unsecured personal loan need a minimum credit score of a  670 to 739 points or higher.  The amount of the loan will depend on the credit score, ranging between $1,000 and $50,000. The better your score, the higher the amount you can borrow. The repayment period is generally between one and six years.

In terms of the interest rates, unsecured loans typically come with high interest. Despite the absence of collateral, individuals might face serious consequences when being late with the payments.  For example, late payments could wreck their credit scores.

 

Secured

Secured personal loans are the complete opposite of the unsecured loan.  For example, you must have collateral for a secured loan.  The collateral usually takes the form of a vehicle, deposit certificate, savings account, or other types of assets. In case the borrower fails to repay the loan, the lender has the right to seize his/her asset to cover the debt.  See this website to check out how secured loans work.

Nevertheless, the interest rates are much lower because of the higher level of security. Consequently, the majority of lenders show greater flexibility when it comes to credit score requirements. The collateral serves as some sort of compensation for not having a solid score. This alternative is considered the best for individuals with a mediocre or poor score.

 

 

 

types of personal loans

 

Cosigned

If you have a cosigner, you can obtain an unsecured or secured loan.  In the event of a poor score or non-existent credit history, lenders tend to ask borrowers to have a cosigner whose credit score is significantly higher than yours. The responsibility of the cosigner would be to pay off the debt in case you default.

Instead of collateral, you’ll have a person serving as backup. This scenario will help you get approval as well as more favorable terms. While borrowers stand to gain from such an agreement, cosigners take the risk of experiencing disadvantages.

For instance, the loan will appear on the credit report of the cosigner along with any late payments, which have a negative effect on the score. Therefore, every borrower considering such an option should factor in the financial risk involved in the decision. Any wrong move on your end could mean a damaged personal relationship with the cosigner.  The following link, explains what cosigners are liable and responsible for.

 

Debt consolidation

A debt consolidation loan is a perfect option for individuals having multiple debts. It’s a chance for borrowers to combine all their debts into a single loan so they will just have one monthly payment. This offer is convenient for individuals who wish to reduce their monthly expenses by avoiding multiple interest rates and hefty late fees.

Furthermore, you will only pay one interest rates. However, have to be in control of your debt for this solution to be successful. You should refrain from applying for new personal loans until you pay off the consolidated debt.

 

Personal line of credit

This type of loan is similar to having a credit card; only the borrowed sum isn’t repaid in monthly installments. Borrowers are provided with access to a given amount of money, which means they can borrow from it whenever necessary. Interest is charged only on the balance that remains.

This option is believed to be the best choice in times of emergency when individuals have to cover unplanned expenses. In order to be considered eligible, you should have a remarkable credit score and credit history.

 

Make sure you choose the right type so as to avoid unplanned scenarios in the future.  Consult a professional if necessary to help you with any decisions!

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Teaching Your Children Finances

October 28, 2020 by 2 Comments

Today, I’m sharing parenting advice on teaching children finances.  It can be hard to get your teenager to take money seriously.  What’s even more frustrating is the fact that they mostly source their funds from you regardless of if they’re not old enough to work yet or not.  So, the value of money is still a flimsy thing in their mind. Of course, not all teens are like this.  But, if yours is it’s time to sit them down and show them what they really need to know about money. Here is a quick list of what they need to know for their financial future.  

 

teaching children finances

 

Teaching Your Children Finances:

 

Savings are Important

Saving is the number one thing your teen should learn about.  They must understand how to save for college, an apartment or house or just to travel.   

Furthermore, they must learn to save on a regular basis.  Having a savings account is like having a safety net. Most importantly, it teaches them to not rely on you.  This point must be impressed; it’s imperative that they learn this point so they can stand on their own two feet.  It will also give them a sense of independence, which is what every teen wants.  

 

Money Dangers

There’s a lot we need to teach teens about the world. That it’s a tough place, that it’s rarely fair, and sometimes, it gets really hard out there.  Unfortunately, they’ll need to turn to someone for help.  So, it’s okay to help teens through difficult teens.  It’s key to teach them that the world of money is filled with danger.  

For example, credit and debt and living paycheck to paycheck are dangerous.  So far you’ve provided everything they’ve needed, so they might not truly understand just how hard things times can get. 

There are plenty of resources out there for them to help them make use of their money.  Let them go online to learn more about the biggest expenses in life, such as mortgages, finding good utility deals, and being able to save their money week by week. 

 

 

teaching children finances

 

 

Making Money Takes Time 

Finally, make sure you reiterate the point that ‘money doesn’t grow on trees’! Making money takes time, and being able to save it takes even longer.  Sadly, being able to get a job is harder than ever before. Encourage them through the difficult times and support them whenever they get rejected for a position. Make sure you point them in the right direction, and remind them of their strengths.  This simple step will empower them.  Just as importantly, it will give them confidence to enter the working world.  Which, is what they need to make money. 

Finally, your teens will need to know a lot about the world.  However, teaching your children finances will help them take the right steps to money management. 

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5 Financial Planning Tips Parents Should Consider

September 24, 2019 by Leave a Comment

Proper financial planning can save you a lot of stress and headaches.  Taking the right financial planning steps can also help protect your family.  Furthermore, it can provide a secure and stable future. Most parents know how to save money and pay down debts.  But, if you really want to empower yourself and provide your family with long-term financial peace of mind, consider these financial planning tips:

financial planning tips

 

Shop Online for Your Life Insurance Policy

As HavenLife describes, a life insurance policy is “a contract between you and a life insurance company that helps protect your loved ones financially if you pass away.”  Fortunately, the task of buying life insurance is made simpler by shopping online.  You can compare rates and purchase a policy without leaving the comfort of your home.  And, you use insurance calculators to figure out exactly how much coverage your family needs.  Finding the right life insurance can provide peace of mind.  It can also provide a huge relief for your family during a difficult time.  For example, it can help pay funeral expenses, medical costs, and even cover lost income.  Also, consider taking care of other estate planning steps for your family.

 

Earn More Money With Your Emergency Fund

Savvy parents know the importance of savings.  You can use online calculators to determine how much you need to save for common family goals.  Your goals can be raising a baby to purchasing a new car.  In addition to saving for the expected, you should also be saving for the unexpected. Having enough saved for up to 6 months of expenses in an emergency savings fund can eliminate stress from unexpected illnesses or other financial burdens.  So, consider keeping your money in a high-interest savings account.  Furthermore, you should understand how interest on savings accounts can benefit you.

financial planning tips

 

Start Saving for Your Retirement Before College

Recent surveys show that more than half of all parents in America are saving for their kids’ future college tuition before they begin saving for their own retirement.  While saving for college can provide stability for your children, they may end up having to support you during your retirement years.  So, do yourself and your children a favor by saving enough to keep yourself financially secure during retirement.

 

 


 

 

Invest in Real Estate for Your Children’s Future

Buying a home can come with some pretty incredible perks.  For example, tax breaks, consistent housing costs, and equity.  These perks can benefit your children as well.  If you can swing it, an investment property can be an even smarter way to provide financial security for your family. In fact, buying an investment property first can help you create a passive form of extra income.  It can be used buy a first home or pay off debts.

 

Consider Padding Your Income With a Side Gig

If investing in real estate is out of the question right now, there is still a fairly simple way to add some extra income to your family’s budget: Get started with a side gig. Second jobs are becoming increasingly popular as an added source of income.  That’s because working a second job typically involves flexible hours.  Also, many jobs can be performed remotely which can be beneficial for time-strapped parents. If you want to bulk up your budget, think about driving for a rideshare company, taking online surveys from home, or searching for other side job opportunities.

You’re used to going the extra mile to provide a life of happiness and health for your family. Do the same with your financial planning by taking some extra steps.  With a little more effort and implementing a few of these financially planning tips, you can ensure a brighter financial future for your children and your family.

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