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Educate Yourself On The Impacts Of A Student Loan

April 9th, 2017 Posted in student debt, student finances
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Educate Yourself On The Impacts Of A Student Loan - graduation image

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While we would love the opportunity to go back in time and use what we know now, we’re not jealous of Millennials in the slightest. Why? Because they are the most indebted generation of college students in history. Part of the reason they are so indebted is because students are naturally inexperienced with money, meaning they take out more loans than they perhaps have to.

This simple form of mismanaging money can have a substantial impact on a person’s life. That is why it so important you know exactly what the minimum amount money you need to borrow is, as well as understand how a student loan can negatively impact your life.

No Grad School

A student loan can massively affect your chances of going to grad school because the average accumulation of student debt is $30,000, which can see them seriously struggle to get their hands on another loan after their undergraduate program or, worse, seriously struggle with repayments.

No Home Buying

Having debts already in place can seriously affect a person’s chances of getting a mortgage. There are numerous reasons for this. Firstly, having substantial debts already can affect your credit score and thus your eligibility for a mortgage, although this can be helped by experts like those at https://www.bestdebtconsolidationloans.com/national-debt-relief-review.php who specialize in debt consolidation. Secondly, you may not be able to afford the monthly payments due to your current repayment plans. And thirdly, having to put money aside to pay back your student loans may see you struggle to save up for the required down-payment.

No Dream Job

When someone applies for a job, a company more often than not will undergo a background check. This will include a person’s criminal record, professional history, and credit checks. In fact, almost 40% of companies will perform a credit check. This may not be a problem if you have a flawless repayment history, but if you have made late payments it will show up and this could be held against you. It could be the determining factor between you and another candidate.

No Good Credit

Most major banks and financial establishments treat a student loan just like any other form of a loan. They call it an instalment loan, which affects your FICO score, something you can read more about here http://www.investopedia.com/terms/f/ficoscore.asp. As such, if you fail to make your repayments on time as set out in your agreement you will see your credit score get affected, and a low credit score can prohibit you greatly. You see, the lower your credit score is the more a lender will consider you to be high risk, and thus it will be harder to extend other lines of credit. This could affect home buying, as we mentioned above, as well as other purchases like a vehicle or a business. It will also affect your insurance premiums.

The world we live in now means that the majority of students have to take out student loans if they want to go to college; it is their only means of affording it. We are not trying to warn you off college. What we want you to understand is the consequences of borrowing money and the importance of being disciplined when it comes to how much you borrow. Less is best.

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The Modern Investments

April 5th, 2017 Posted in learning about money, millionaire mindset, Money Tips, Property Investment
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Since the global crash in 2008, the wealthy have been looking for new places to invest their money. Banks seemed like a safe option but for the super rich, they became a worry zone, this was because most banks would only guarantee the safety of set limits of cash. So if you had 500k sitting in the bank and the bank went bust, you would only get 75k of your money back.

Ok, so most of us aren’t sitting around with half a million dollars in the bank. However, that doesn’t mean we can’t draw some inspiration from the High Net Worth Individuals (HNWI) and invest some of our money into the trends they are setting.

Property is always a good place to stash your cash. Firstly you have a tangible asset, something that might lose money but will, at some point make money. You are far more likely to break even over a few decades than end up with a loss. So this could be seen as a safer bet than your bank. The interest rate on savings at most banks is rubbish. Investing money in property and renting it out could see you making a far better return than you were in your savings account. There are two safe options for investing into a property. One is to find any new houses for sale, especially ones which are being built in areas that aren’t currently fashionable. If you find out information about any potential projects in this neighborhood, you may see that house prices will go up. Eg, if there is a new school or business applying for application. This could push up home prices. The other option is to go old. Look for the worst house on the best street, invest a little time and money into doing it up, then sell it.

Another great alternative investment has been the classic car market. You need to stay ahead of the game here, making smart purchases before the rest of the world cotton on. For making smart purchases before the rest of the world cotton on. For example, the BMW Z3 is a cute little car which is set to be a future classic. You can pick one up for a few thousand dollars, in fact, you can find them for under 1000 dollars, you can then invest a little time and love into restoring it, and in 5 years time, you could have a car worth 15,000 dollars.

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What about investing in wine, companies like Woolfsung have been advising HNWI on the wine investment sector. Here the idea is that you buy up predicted good years and then stash them away in a cellar for ten years. Most vineyards have a pattern when it comes to years so experts can predict which will be good. Of course, there is always the risk that you may get it wrong, or that you haven’t stored it the right way. Then the wine will be ruined, and you lose the investment.

Check out what the elite pack is investing their money in and see if you can replicate it on a smaller level. You never know, your horse might come in.

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The Financial Plights of Adulthood

April 3rd, 2017 Posted in learning about money, Money Tips
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Once out of college and dropped into the world of adulthood there are a lot of things that you have to face, even if you don’t feel ready to or didn’t expect to have to for many years, if you don’t want to find yourself in the midst of a financial fiasco. Life after education can seem daunting, what with aspects such as buying a home for the first time, establishing a career and forming a family on the horizon, so it’s important not to add any problems in the form of financial problems.

First and foremost, you can’t be afraid to face some difficult financial aspects that you may deem to be slightly morbid. For instance, if you find yourself prospering financially shortly after college, no matter what age you are, there is no harm in writing out a will in order to ensure that the finances and assets that you have managed to accumulate go in the direction you would want them to after your passing. Writing a will can be a daunting, and sometimes upsetting task so it’s important to seek as much professional and personable assistance with as possible, such as those found in the services offered at Gillard Lawyers. Although this may seem to be something that is done only by people a lot of older than yourself, it is never too early to protect yourself financially; even those that are just starting out in the world of adulthood in their twenties should write a will if they have people and assets to protect.

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Writing of a will

And the need to protect yourself no matter what age you are extends itself to the insurances you take out on your life. If you have financial dependants, i.e. a person that relies on your finances to retain a good standard of life, like a spouse, friend, parent or child, then taking out life insurance cover is the best way to ensure that they will be protected if you were ever to unfortunately pass away. However, with life insurance there is a set period of time, usually 10 to 25 years, in which that eventuality can take place — it if were to happen anytime after the set time that was agreed upon from the onset of the cover being taken out then the insurance wouldn’t compensate for it. But there is a type of cover that does in fact cover for death at any time: that is known as life assurance; this type of cover is far costlier in comparison to life insurance, so it’s important to know exactly what you want and need when choosing what to take out. The similarities between the two both in their name and in the cover that they offer makes for an interesting point: you should always be sure of what it is that you’re taking out, even when two things sound and almost act the same. Taking out a cover you don’t need or want can bind you to something for a long time, even for life, and thus can be very wasteful of your finances in the process. For more information on the differences between life insurance and life assurance, make sure to click here

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Life insurance could be for you

And if you do want to go back to school, first of all you shouldn’t do so just to recapture the ‘good old days’ and should only do so if it’s going to better your career, and second of all you shouldn’t do so if you haven’t got your finances sorted. Seeking further education can be a very costly procedure and the decision to seek it shouldn’t be taken lightly.

 

 

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Get Your Money Ready To Go Back To School

April 3rd, 2017 Posted in student debt, student finances
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It’s not uncommon to have a few false starts on your way to getting a degree and giving yourself some serious career prospects. Not all of us get a degree straight after high school even if we want to. Life gets in the way. But if you want to go back to school, it’s far from impossible. Even with more responsibilities, you should never be afraid to focus on taking paths that develop you even further. But you need to make sure your finances are as ready to go back to school as you are.

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Budget for student life

There’s no doubt that you’re going to have to deal with additional costs as a result of getting yourself back in education. Scholarships, loans and the like are options we’re going to cover further, but there are plenty of financial surprises that can pop up as a result of going to school. Extra childcare costs, supplies costs, and the like will add up. It’s a good idea to create a budget with the express aim of leaving more money aside as part of a college emergency fund. This might mean taking a look at the daily expenditures that you could better reduce. Now’s the time to audit your subscriptions and get rid of those that aren’t giving you your money’s worth and to start making energy efficient house rules.

See what scholarships are out there

Naturally, the biggest cost you’re going to be concerned with when it comes to going back to school is the cost of tuition and perhaps accommodation. To that end, you should take a look to see what scholarships you might be applicable for, first and foremost. Databases like the StudentScholarshipSearch are some of the first searches you must look up. Older and nontraditional students can have as many opportunities at getting a scholarship as the dependent student would. There are scholarships dependent on age, in fact, just as there are some for race, background, and more. Don’t count yourself out of getting one, get yourself matched.

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See what benefits are on offer

Besides scholarships, there might other ways to access benefits that could reduce your tuition costs. Like scholarships, grants don’t need to be repaid in the vast majority of cases. There are age-based programs like the Plus 50 Initiative from the Association of Community Colleges, for instance.  You could also consider going to your employer if you’re currently in work. Many larger companies offer reimbursement for tuition costs if you’re learning skills in education that can help in the workplace. Even if they’re not related to your current job, education policies in the workplace can cut thousands from the cost of tuition. If you’ve served in the military, then there are also programs run through funding from the Post-9/11 G.I. Bill worth looking into. Don’t leave any stone unturned. There are local, state, and federal level benefits and finding the right ones can help you avoid the next step.

Prepare for student debt

In the event that you can’t get a scholarship, grant, or reimbursement of any kind, then you are going to be dealing with a lot more student debt. But you don’t have to leave yourself resigned to having an oversized rock hung about your neck. You can take steps now to chip away at student debt so it’s much more manageable in future. For one, as with all debt, it’s dependent on your credit score. With help from places like CreditRepairCompanies you can ensure you’re not being taken for a ride by student debt. Make sure that your student debt is less than your expected annual starting salary or your current annual salary. That way, you can formulate a ten-year plan that you can reasonably stick to.

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Rent books, don’t buy

What about all the other expenses that chip away at your finances while you’re there? One that many new students will find a surprise is the sometimes-overwhelming cost of college textbooks. A small number of publishers control the market, meaning they can hike the prices up however they like. With professors choosing what product you have to buy; these companies are free to charge what they like because they know you have to pay. So, don’t play their game. Instead, rent your textbooks from places like BookRenter or take your time to shop around and find used copies.

Make use of your student discount

If you want to make sure you’re balancing the budget and spending your money wisely, then it’s a smart move to get an idea of all the different businesses that take part in the student discounts program. A student discount can help you save in all kinds of businesses. You can get clothes, tech (including any computers you might need to study), even entertainment at a reduced rate. There are also travel discounts and insurance deals offered specifically to students that can help you cut down the more regular costs in your day. Before you buy something or sign into a new deal, see if the provider offers a student discount. If they don’t, you can be sure there’s an alternative that does.

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Sell those notes

You can even make use of the money-smart college economy to earn a little more on the side. A whole new marketplace has started to sprout in the last few years. Thanks to the internet, it’s a lot easier for students to keep up with their studies when they might otherwise be struggling. For those willing to pay, they can simply buy their notes from someone else. That’s where you can come in. If you’re good at taking detailed notes, you could make some money. You just have to make sure that the college you’re attending doesn’t have any rules on it. In some, it could result in expulsion. Just check their policies before you start selling your work.

There are a lot of ways to make further education have a much more reasonable place in your finances. Many of the options simply don’t get considered by the majority of students. Hopefully, we’ve outlined a few options worth exploring.

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