The Penny Hoarder |
- Job Ideas for Boomers Who Need More Work to Get Social Security
- 7 Money Lessons You Didn’t Learn In School
- What Is Upstart? Personal Loans (Even If You Have Imperfect Credit)
- The 7 Best Home Buying Apps for 2022
- Earnings from Survey Sites are Taxable Income
- How to Create a Single Mom Budget (or Single Dad Budget)
- Wells Fargo Personal Loan Review 2022
| Job Ideas for Boomers Who Need More Work to Get Social Security Posted: 09 Apr 2022 07:00 AM PDT For whatever reason, you do not yet qualify to receive Social Security benefits, but you are old enough to begin thinking about your retirement. What can you do about that? One of those reasons you haven't paid enough into the system to qualify may be that you stayed home to raise children. That's a big job for sure, but an unpaid one. Now that the children are grown, you might want to get back into the workplace to earn Social Security benefits. Or, perhaps you worked for a public entity that had its own retirement program and did not pay into the federal system. You could retire from that job with 25 years experience and if you're in your early 50s still have enough time to work to qualify for Social Security benefits. What kind of job can you get after age 50 that will build up your credits? The simple answer is any job where the employer pays Social Security taxes, and we will give suggestions on that later in this post. How Social Security Credits Are AccruedSocial Security benefits are earned through your work history. To be eligible for benefits, you must work full time for 10 years, earning a maximum of four Social Security credits a year. (You could also work part-time over a number of years and earn enough credits.) In 2022, a worker gets one credit for each $1,510 earned, so that earning $6,040 in one year gets you the four credits for the year. Social Security taxes are taken out of your salary to fund the Social Security program. You must have 40 credits to qualify for Social Security benefits when you reach 62½ years of age. The good news is that what credits you have earned over the years are still in your account even if you didn't work for a number of years. You can add to your account by acquiring a job that takes Social Security taxes out of your salary. Go to ssa.gov to find out how many credits you already have in the system. You'll need to set up an account first. Almost Any Job Can Build CreditsJobs where the employer takes money out of your salary to pay into the Social Security system will build your credits. Keep in mind, though, there are jobs — such as state, county or municipal positions, and some teaching jobs — that have opted out of the Social Security program. That means jobs as public school substitute teachers or part-time work at your local City Hall will not likely earn you any credits. However, most every other job that takes taxes out of your paycheck is paying into Social Security. So, the key to earning Social Security benefits is to get a job. If you are talking to an employer, you can ask them if Social Security taxes are taken out of your paycheck since that is one of the main goals of your working. As stated above, as long as you are making $6,040 in a year, you are going to earn your four credits for Social Security in that year. The more you earn, the more money you will get back in Social Security benefits when you are ready to access them. What if I Have Been Self-Employed?Self-employed people (freelancers, gig workers, contractors, etc.) earn Social Security credits at the same rate as others, up to the four credits per year. When you indicate your earnings on your tax return from self-employment, your earnings are taken into account and you earn Social Security benefits. Your taxes to pay for your Social Security benefits are taken out of your taxes at the time you file your tax return. Want to work part-time from home? More and more companies are offering work from home opportunities. Jobs That Will Hire Employees at Age 50+Many people today begin new careers at the age of 50+. The days of passing over older workers are long-gone because of remote opportunities and perceptions of increased reliability for older workers. Also, there are many job opportunities because of the pandemic-caused Great Resignation. Because the salary to qualify for Social Security credits is so low ($1,510 per quarter), most part-time jobs that take out Social Security taxes will qualify you for Social Security credits. How many credits you need — the full 40 or something less — will determine if you need to work full-time or part-time in the limited time you have to accrue credits. Here are some possibilities from our list of part-time jobs for retirees that will work for anyone. It's imperative, though, that you work for a company that is taking out Society Security taxes or you are paying them yourself if you are self-employed.
Can you work and get Social Security? Yes, but know the limits for working while collecting Society Security so that you don't get penalized. Frequently Asked Questions (FAQ) About Social Security CreditsWe've rounded up the answers to the most commonly asked questions about how to accrue Society Security credits so you can get retirement benefits. What Happens if I Don't Earn 40 Credits for Social Security? If you are or were married for at least 10 years, you are eligible for spousal benefits assuming your spouse is or was eligible for Social Security. Spouses and ex-spouses generally are eligible for up to half of the spouse's entitlement. Widows and widowers can receive up to 100%. If you have not been married for 10 years or your spouse or ex-spouse is not eligible for Social Security, then you should begin a retirement savings plan (Individual Retirement Account) that will accrue interest and Can I Buy Social Security Credits? No. There is no way to make up for lost time with the Social Security program. You get 1 credit for each quarter in which you earn the qualifying amount up to 4 credits per year, and you need 40 to be able to someday receive your Social Security benefits. Can I be Denied Social Security Retirement Benefits? If you have accrued enough credits, you will not be denied benefits except under some circumstances. You will be able to collect Social Security benefits even if you move to a foreign country after you retire. Cuba and North Korea are currently the only two countries where you will be denied benefits if you move there. If you are serving time in prison, your benefits may be suspended during that time, however, the general rule is that felons can receive their benefits after being released. Can I Get Social Security if I Never Worked? If you never had a job for which you paid taxes, then you cannot receive Social Security benefits on your own, however, you still may qualify to receive benefits after a qualifying spouse's death. If you were self-employed and made enough money for at least 10 years, you are eligible for Social Security as long as you filed a tax return for those years. The Social Security system is an investment plan which accrues interest on your investments and then pays you back when you retire. Kent McDill is a veteran journalist who has specialized in personal finance topics since 2013. He is a contributor to The Penny Hoarder. This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017. This posting includes an audio/video/photo media file: Download Now | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| 7 Money Lessons You Didn’t Learn In School Posted: 08 Apr 2022 01:30 PM PDT Some of the links in this post are from our sponsors. We provide you with accurate, reliable information. Learn more about how we make money and select our advertising partners. In school, they'll teach you all the algebra you can take. They'll teach you about geometry and trigonometry. They might even teach you about calculus. But they don't teach you diddly-squat about money. No sirree. All the differential equations in the world aren't gonna show you how to handle your money like a grown adult. Despite all our education, our overall state of financial literacy is way too low. In fact, only about a third of U.S. states require their high school students to take any kind of personal finance class. Let's refresh our financial education with these money lessons you didn't learn in school. Doing these could save you thousands this year. 1. Grow Your Money 16x Faster — Without Risking Any of ItHere's a simple lesson we'll expand on: You've probably heard one of the best ways to grow your money is to stick it in a savings account and leave it there for, well, ever. But that's not always the best strategy. If you're just looking for a place to safely stash it away — but still earn money — under your mattress or in a safe will get you nothing. And a typical savings account won't do you much better. (Ahem, 0.06% is nothing these days.) But a debit card called Aspiration lets you earn up to 5% cash back and up to 16 times the average interest on the money in your account. Not too shabby! Enter your email address here to get a free Aspiration Spend and Save account. After you confirm your email, securely link your bank account so they can start helping you get extra cash. Your money is FDIC insured, and they use a military-grade encryption, which is nerd talk for "this is totally safe."
2. Spend $1 to Own a Piece of Amazon, Google or Other Companies Here's something to study: Take a look at the Forbes Richest People list, and you'll notice almost all the billionaires have one thing in common — they own a company. But if you work for a living and don't happen to have millions of dollars lying around, that can sound totally out of reach. That's why a lot of people use automated micro-investing apps like Stash. It lets you be a part of something that's normally exclusive to the richest of the rich — buying pieces of other companies for as little as $1.* That's right — you can invest in pieces of well-known companies, such as Amazon, Google or Apple, for as little as $1. The best part? When these companies profit, so can you. Some companies even send you a check every quarter for your share of the profits, called dividends. It takes two minutes to sign up, plus Stash will give you a $5 sign-up bonus once you deposit $5 into your account. Subscription plans start at $1 a month.** 3. Knock Up To $715/Year Off Your Car Insurance in MinutesWhen was the last time you compared car insurance rates? Chances are you're seriously overpaying with your current policy. If it's been more than six months since your last car insurance quote, you should look again. And if you look through a digital marketplace called SmartFinancial, you could be getting rates as low as $22 a month — and saving yourself more than $700 a year. It takes one minute to get quotes from multiple insurers, so you can see all the best rates side-by-side. Yep — in just one minute you could save yourself $715 this year. That's some major cash back in your pocket. So if you haven't checked car insurance rates in a while, see how much you can save with a new policy. 4. Secure Up to $1 Million in Life Insurance; Rates Start at Just $16/MonthHave you thought about how your family would manage without your income after you're gone? How will they pay the bills? Send the kids through school? Now's a good time to start planning for the future by looking into a term life insurance policy. You're probably thinking: I don't have the time or money for that. But here's a lesson for the long term: Your application can take minutes — and you could leave your family up to $1 million with a company called Bestow. Rates start at just $16 a month. The peace of mind knowing your family is taken care of is priceless. If you're under the age of 54 and want to get a fast life insurance quote without a medical exam or even getting up from the couch, get a free quote from Bestow. 5. Earn Cash While Watching Cooking Videos Online We remember watching a lot of videos in school. The teacher would turn on a video to buy time to grade papers while we watched it. But what if we told you that you could get paid to watch videos on your computer? It's too good to be true, right? But we're serious. A website called InboxDollars will pay you to watch short video clips online. One minute you might watch someone bake brownies and the next you might get the latest updates on Kardashian drama. All you have to do is choose which videos you want to watch and answer a few quick questions about them afterward. No, InboxDollars won't replace your full-time job, but it's something easy you can do while you're already on the couch tonight wasting time on your phone. Unlike other sites, InboxDollars pays you in cash — no points or gift cards. It's already paid its users more than $56 million. It takes about one minute to sign up, and you'll immediately get a $5 bonus to get you started. 6. You Don't Have to Pay Your Credit Card Bill This MonthIf you have credit card debt, you know. The anxiety, the interest rates, the fear you're never going to escape… And the truth is, your credit card company doesn't really care. It's just getting rich by ripping you off with high interest rates. But a website called AmOne wants to help. If you owe your credit card companies $50,000 or less, AmOne will match you with a low-interest loan you can use to pay off every single one of your balances. The benefit? You'll be left with one bill to pay each month. And because personal loans have lower interest rates (AmOne rates start at 3.99% APR), you'll get out of debt that much faster. Plus: No credit card payment this month. AmOne keeps your information confidential and secure, which is probably why after 20 years in business, it still has an A+ rating with the Better Business Bureau. It takes two minutes to see if you qualify for up to $50,000 online. You do need to give AmOne a real phone number in order to qualify, but don't worry — they won't spam you with phone calls. Not in the Classroom AnymoreWe're way past trigonometry here, and you're definitely not in the classroom anymore. So, how much money could you save yourself by employing these strategies? It's hard to say. It ultimately depends on how hard you go. But between the cash-back, investment earnings, other savings, and cheaper deals on car and home insurance, you should be able to see a big difference in your bottom line this year. Mike Brassfield (mike@thepennyhoarder.com) is a senior writer at The Penny Hoarder. *For Securities priced over $1,000, purchase of fractional shares starts at $0.05. **You'll also bear the standard fees and expenses reflected in the pricing of the ETFs in your account, plus fees for various ancillary services charged by Stash and the custodian. The Penny Hoarder is a Paid Affiliate/partner of Stash. Investment advisory services offered by Stash Investments LLC, an SEC registered investment adviser. This material has been distributed for informational and educational purposes only, and is not intended as investment, legal, accounting, or tax advice. Investing involves risk. This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017. This posting includes an audio/video/photo media file: Download Now | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| What Is Upstart? Personal Loans (Even If You Have Imperfect Credit) Posted: 08 Apr 2022 11:13 AM PDT Some of the links in this post are from our sponsors. We provide you with accurate, reliable information. Learn more about how we make money and select our advertising partners. You've been Googling ways to alleviate your debt. Many experts suggest refinancing or consolidating. In the next breath you ask: What's the best company? Upon more research, you find there are something like one zillion options, but you keep hearing mentions of Upstart, a non-traditional lending platform. What's so special about it? In addition to assessing your ability to pay back a loan based on your credit score, it takes other factors into consideration, like your education and employment history. "We really customize rates to the individual, meaning we're [pricing] specific to each person based on the information they're giving us," Jungwon Byun, the head of growth at Upstart, said in an email. "You get the rate you deserve — not the rate a pool of people assigned to you deserves." So… What Is Upstart?Upstart is a lending platform that's striving to change the personal loan game. Many lenders are stuck in a traditional approach of determining creditworthiness based on your credit history. But Byun explains this leaves out an entire segment of the population — even though they're totally creditworthy. "By considering these other aspects, we can bring those people back into the conversation and help them get lower and better rates," she said. Before diving too deeply, here are some specifics on loans from Upstart:
Who's Upstart Best for?Deciding to secure a loan is a personal decision. Upstart tends to be especially helpful for recent grads, who have a short credit history and a mound of student debt. Byun said she recently spoke to a borrower who graduated with hundreds of thousands of dollars in student loan debt and eventually got stuck in credit card debt, too. "'When I graduated from school, I had negative net worth and to the world, I had negative value,'" Byun recalled the recent grad saying. Byun said the young professional secured a loan on Upstart and immediately breathed a sigh of relief. "She said it was an empowering experience for her because finally her education was worth something." Is Upstart Safe? Anytime you apply for a loan — or even simply request a quote — you have to submit some private information. That's because these lending companies need to review your credit report and verify the information on your application, which requires some personal information. This leads us to an important question: Is Upstart safe? To demonstrate its reliability, we've chatted with real people who've shared their experiences using Upstart. Kelsey Buxton, at 26, sat on a $22,000 pile of credit card debt. She couldn't qualify for other refinancing options, but Upstart gave her a chance, thanks in part to her education and employment history. Then there was Nick, who reached out to us after reading Buxton's story. At 27, he had about $26,000 in debt. He took a chance and applied for a loan on Upstart. Within 24 hours, the money was in his account. What Are the Eligibility Requirements for Loans on Upstart?Upstart has these minimum eligibility requirements:
For complete credit requirements, Upstart has more information in its Help section. There are also a few general requirements. These include:
What's the Upstart Verification Process Like? If you meet these basic requirements, congrats — you can apply for an Upstart loan. The verification process for a loan on Upstart is super simple and super quick. Byun explained that Upstart prioritizes speed and efficiency. "If you think about the traditional banking system, it's pretty crazy to expect that someone could even make it into a bank in the hours that they're open," she said. Upstart's online application is open 24/7, and support staff is available seven days a week as well. Here's what it'll look like when you apply for a loan on Upstart:
Nick, who took out a loan on Upstart to consolidate his credit card debt, applied for a loan on Jan. 8. He was approved, and when he woke up on Jan. 9, the funds were sitting in his account. Pros and Cons of a Loan on UpstartIn case you're in a hurry, here's a quick summary of the pros and cons of a loan on Upstart: Pros:
Cons:
Is Upstart the Best Debt-Consolidation Company to Use?Which marketplace or lending platform should you use? We can't actually answer that for you. Because personal loans are so, well, personal, you should shop around for your best fit. We did, however, put together a chart to compare Upstart against some of its peer-to-peer lending competitors to help you find what you need. Upstart vs. Lending Club vs. Prosper vs. SoFi
Ready for a Personal Loan? Securing a quote from Upstart is quick and won't impact your credit score. If your application is approved and you accept your loan terms, Upstart typically transfers funds into your account within a business day. By refinancing or consolidating your debt through Upstart, you could potentially save thousands over time. *Your loan amount will be determined based on your credit, income, and certain other information provided in your loan application. Not all applicants will qualify for the full amount. Loans are not available in West Virginia or Iowa. Loans in Maryland, Massachusetts, Nevada, and Nebraska are made by Cross River Bank, an FDIC-insured New Jersey state chartered commercial bank. 2The full range of available rates varies by state. The average 3-year loan offered across all lenders using the Upstart Platform will have an APR of 21% and 36 monthly payments of $35 per $1,000 borrowed. There is no down payment and no prepayment penalty. Average APR is calculated based on 3-year rates offered in the last 1 month. Your APR will be determined based on your credit, income, and certain other information provided in your loan application. Not all applicants will be approved. Carson Kohler (carson@thepennyhoarder.com) is a staff writer at The Penny Hoarder. This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017. This posting includes an audio/video/photo media file: Download Now | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| The 7 Best Home Buying Apps for 2022 Posted: 08 Apr 2022 09:00 AM PDT As rent prices continue to soar all over the country, you may be finding yourself entering your first real estate search. You're not alone. According to the National Association of Realtors, millennials are ending their leases and buying homes in large numbers. Those in their late 20's to early 30's now make up the fastest-growing segment of buyers today. But how to even shop for a home these days? First-time buyers might remember being dragged to Sunday open houses with their looky-loo parents, but those days are gone. Everything is online, and many real estate apps have sprung up to help buyers find their dream homes. The 7 Best House-Hunting AppsZillow, Trulia, HomeSnap, Redfin and even Realtor.com are among the house-listing websites that have become an essential part of the home-buying process, and all of them have mobile apps to make it even easier to jump into the real estate game. We assessed seven of them keeping first-time buyers in mind by looking at ease of use, connection to calculators, photo quality and more. Best House Hunting Apps at a Glance
ZillowPro
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The Zillow house-hunting app app is the most downloaded real estate app on the Apple store and Google Play — and for good reason. Its database constantly updates and has 36 million users monthly. You can set up push notifications for new real estate listings that meet your search criteria so you'll never miss out on your potential dream home. The app allows you to filter real estate listings by price, ZIP code, square footage, must-have features and more. You can even coordinate your search with a partner or roommate by tagging home features and sharing your favorites. Zillow provides 3-D tours and a scheduling feature to set up an in-person tour. One of its best features is self tours of Zillow-owned homes, a feature available in some markets that allows house hunters to stop by the property at their convenience and simply unlock the house with the app. Realtor.comPro
Con
Realtor.com is one of the best home buying apps out there for on-market listings. Being the official search portal for the National Association of Realtors means you can trust the home listings that pop up in your search. The data is directly mined from the MLS (multiple listing service) and refreshes every 15 minutes. The search features include a wide variety of filters and provides the most detailed real estate listing descriptions, which include things like crime rates, school ratings, property tax and history of home value estimates — even things like the neighborhood noise levels or whether a home is in a FEMA flood zone. Because the app updates so often, setting up push notifications means you'll quickly know when a new property hits the local market. You'll also have the power of the "Sign Snap" tool in your pocket the next time you drive by a "for sale" sign. All you have to do is take a photo and Realtor.com pulls all of the home's details instantly. TruliaPro
Con
Acquired by Zillow in 2015, Trulia has access to most of Zillow's database of over 135 million active listings and has become one of the best real estate apps. What sets it apart is the focus on community insight provided by those who are located in the area you are searching. You'll not only get details on the property, but information on what it's like to live in that specific neighborhood. You'll be alerted about price reductions and upcoming open houses, and the app will recommend new listings. Insights sourced straight from locals and 34 neighborhood map overlays offer details on commute times, nearby businesses, crime rates, nearby schools, and more. Two other features added in 2018, "what locals say" and "local legal protections," combine local feedback and public data to provide information about what a neighborhood is like, from level of dog-friendliness, day-in-the-life details, and even how folks decorate for the holidays. You'll also be able to see whether there is legislation in the area to protect against discrimination for gender identity or sexual orientation in employment, housing or public accommodations. Rocket HomesPro
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Similar to Trulia, Rocket Homes puts an emphasis on getting to know your soon-to-be neighborhood, but from a market statistics perspective. This real estate knowledge will come in handy when searching for a home. You can compare properties in the area, seeing how long they've been on the market and what they sold for. If you're not planning on living in your first home forever, this will help give you an idea of what kind of return on investment you can expect from your purchase in the future. Rocket Homes is a product of Quicken Loans, giving you the opportunity to shop for homes from new and updated listings and have access to lending services all in one place. This real estate app also helps you stay on track when it comes to some of the more boring parts of purchasing a home, like tracking your credit score. Rocket Homes gives you access to a free TransUnion credit report that is updated frequently, so you know exactly where you stand before starting the mortgage application process. HomesnapPro
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The Homesnap real estate app is perfect for the on-the-go house hunter. You can simply snap a photo of a home and get all of the data available. This feature means you have real-time connection to your local multiple listing service from the road. If you choose to search from the comfort of your home instead, the Homesnap app allows you to search for open houses by date, and even provides live-broadcast, virtual showings if you want to avoid mingling with other buyers in person. You can collaborate with your real estate agent through a built-in private messaging function that automatically saves your listings for quick reference. Like most real estate apps, you have a ton of customizable filters for efficient searching, and will be provided with up to date information about the home and neighborhood like commute times, satellite photos and more. RedfinPro
Con
Redfin's out-of-the-box-business model combines the convenience of a high-performance app and the expertise you can only get by working with a real estate agent directly. Because Redfin is also a brokerage firm, you'll have access to their top-quality real estate agents. Working with a real estate agent gives you more in-depth market insights so you can make smart home buying decisions. And through the "Hot Homes" feature you'll know which homes are more likely to sell fast so you don't miss your chance of putting in an offer while house hunting. The most unique perk of using the Redfin app is the opportunity to pocket some cash. You'll get a percentage of your agent's commission from the home seller when you purchase a home with a Redfin agent. Homes.comPro
Con
The Homes.com app is partnered with the MLS to bring you quality leads on your home buying search. The app offers a plethora of filter criteria like the other apps, such as square footage, ZIP code, number of bedrooms and bathrooms, but has an emphasis on lifestyle. Not only will you find the best house, but in the neighborhood that's right for you. The exclamation icon makes it easy to spot new real estate listings when scrolling through your search results. You also have the option to "favorite" or "block" certain properties in your feed so you can revisit the ones you love and eliminate the ones you don't. The mortgage calculator on Homes.com includes specific financing options like FHA (Federal Housing Administration) loans and special rates for active military members or retired veterans. The Bottom Line About Home-Buying AppsAs you can see, if you're ready to break up with your landlord, calculate what down payment you can afford and start your journey to home ownership, you have plenty of house-hunting apps to take advantage of. Along with all the other details involved in this adventure, it may take some trial and error to find the app that hones in on your specific house-hunting search criteria. But it's worth spending the time if it helps you get everything you want in your first home. Contributor Tiffany Beyer is a social media coordinator and marketer specializing based in St. Petersburg, Florida. She specializes in real estate and lifestyle issues stories. This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017. This posting includes an audio/video/photo media file: Download Now | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Earnings from Survey Sites are Taxable Income Posted: 08 Apr 2022 07:05 AM PDT Some of the links in this post are from our sponsors. We provide you with accurate, reliable information. Learn more about how we make money and select our advertising partners. Paid survey sites can be a simple way to earn a little extra cash in your free time. And although surveys aren't our favorite way to make extra money, they can be a convenient side hustle to take on while you're doing other things— like waiting on-hold with your bank or in line at the grocery store. Why not turn those empty moments into extra cash by clicking a few buttons? While many survey sites simply aren't worth the hype, InboxDollars is one of the rare legitimate paid survey companies out there. Sites like these typically pay in points instead of direct cash, but you can use those points to purchase gift cards with actual cash value. Should you prefer cash over the cards, you can aso turn around and sell any gift cards you earn. Which leads us to a common question… Do Paid Surveys Count Toward Taxable Income?Whatever you earn through survey sites — or any other apps you use to earn money — counts toward your gross income come tax time. A reader wrote to ask us about this: "Is there any way to make money or (earn) gift cards that isn't going to have to be filed on our taxes as income?" Short answer: Not really. Longer answer: Taxes are complicated, but let's quickly break it down. The IRS files all the money you receive into tons of different categories. It taxes most of them, including those you probably expect:
Here's why: Yes, technically you're receiving the income as a "gift card," but it isn't a gift, per se. To the IRS, cash equivalent items look just like income, so you count them as part of your wages (unless it's something small, like donuts from your boss). More Things That Count Come Tax TimeBecause we know you like finding creative ways to make money, here are some taxable items you might not expect:
What You Don't Have to Count as Income for Tax PurposesBack to that reader question … here are a few things you don't have to report as taxable income:
There are a few more untaxables, but they get pretty particular. Bottom line: You'll pay taxes on pretty much any money you bring in — including the stuff you get from survey sites and other apps. If you want to keep your taxable income low, make sure you claim as many deductions as possible. Contributor Dana Miranda is a Certified Educator in Personal Finance® who has written about work and money for publications including Forbes, The New York Times, CNBC, Insider, NextAdvisor and Inc. Magazine. Contributor Larissa Runkle added additional reporting. This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017. This posting includes an audio/video/photo media file: Download Now | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| How to Create a Single Mom Budget (or Single Dad Budget) Posted: 08 Apr 2022 05:00 AM PDT Raising a child — or children — is an incredibly rewarding experience. It can also be a very expensive one — and doing it alone can be a major source of financial stress. Being a single parent means you have to become a pro at making your money stretch and establishing your own financial safety net. We spoke with three financial professionals — who have personally experienced life as a single parent — to get the best tips on how to budget and save money when raising children alone. 10 Money Management Tips for Single ParentsThese strategies and advice will help you create a workable single mom budget (or single dad budget). 1. Know Your Cash FlowFirst things first — you've got to know how much money is coming into your household and how much is going out. This is especially important if you recently separated from or lost a partner who used to handle all the finances. "The first thing [to do] is to face the reality of the situation," said Molly Ward, a Certified Financial Planner with Equitable Advisors and a single mom of three. "Knowing that you really have little and that things are tight isn't as scary as not knowing [where you stand financially]." If you don't have awareness of your cash flow, you could end up easily spending more than you make. Ward recommends establishing a regular time — weekly or monthly — where you sit down and review your finances. You can also check past bank statements to get a better idea of money habits you might have. Don't just focus on your spending. Make sure you're clear on your sources of income, including any child support or alimony. 2. Create a Values-Based Budget"Once you know where your money is going, it's time to make hard decisions," said Kumiko Love, an Accredited Financial Counselor and founder of The Budget Mom. "Is your spending honoring you and what you want to accomplish?" Your budget should reflect what you value most. For example, if you really want to live in a sought-after school district, you might spend more on housing or be willing to move to a smaller home. Or perhaps having your kids participate in certain extracurricular activities is worth more to you than having a big cable package with hundreds of channels. Lakisha Simmons, a financial coach and author of The Unlikely AchieveHer workbook, said after divorcing her sons' father, she went through her budget and cut out expenses that didn't align with her goals of spending more time with her kids and traveling with them. "I started to think: Does this choice that I'm making, do I value it or is there a different decision that I would value more or a different experience I would value more?" Simmons said. Pro Tip Learn more about how to create a values-based budget. 3. Use a Cash Envelope SystemCreating a budget is essential — but only if you're able to stick to that budget. Implementing a cash envelope system can help. "I am a huge advocate of the cash envelope method," Love said. "With this method, you determine a budget for different variable spending categories, like clothing, gas, food, etc. Once you have your budget limits figured out, you then pull out cash for each category and that's what you have to spend until your next paycheck." This budgeting approach prohibits you from sabotaging your financial plan by swiping your debit or credit card past your self-imposed spending limits.  4. Slash SpendingAfter reviewing your cash flow and creating a budget that honors your values and financial goals, you'll likely be able to identify expenses that you can reduce or eliminate. Look at non-essential expenses first. Can you spend less in areas like entertainment, clothing or eating out? Seeking out free activities, hosting a clothing swap and meal prepping at home can help. Save money by using promo codes and coupons. Be careful not to overspend in an attempt to compensate for what you feel like your kids might be lacking from living in a single parent household. "There are all kinds of justifications for spending, which could blow the budget up," Ward said. She said one of her favorite ways to save money is to ask businesses if they offer a single parent discount, even if it's not advertised. "If I have a repair person come to my house or anything that's negotiable, I will say: Do you give discounts to single moms?" Ward said. "And a lot of times, [they'll say] yes. You don't know until you ask." Another approach to cutting expenses is to examine your essential bills — like your rent or mortgage, your phone bill and your utility bills — to see if there are less expensive service providers or other options. For Simmons, that meant selling her five-bedroom house and downsizing to a small two-bedroom apartment. "I could have stayed in the house, but I would not have been able to save, and I would have continued to feel stressed," she said. Simmons said she was able to shave $1,000 off her monthly expenses by moving. Child care is another costly, but necessary, expense. Love recommends looking into financial assistance programs, if you're eligible. Employer-based child care benefits and flexible spending accounts are other ways you can save money on child care. 5. Automate SavingsWith only one income to rely on, it's important that single parents have an adequate emergency fund — at least three to six months worth of expenses. "It will help to alleviate some of the stress that single parents feel," Simmons said. Prioritize saving by paying yourself first — setting aside money when you first get paid rather than hoping you have money left over at the end of the month to save. Automate your savings by adjusting your direct deposit so that a percentage of your paychecks goes to your savings account. That way, you're saving money without even thinking about it. Besides your emergency fund, you might want to have sinking funds to break up big expenses like family vacations, summer camp tuition and holiday gifts. To save up for your child's future college education, consider setting up a 529 college savings plan and scheduling automatic transfers into that account each month. Pro Tip Having debt, especially high-interest consumer debt, can make it difficult to save money. Here are 11 tips to pay off credit card debt fast. 6. Protect Your WealthAs a single parent, it's essential to have a plan in place in case you aren't able to bring in income or care for your child. "You could have your emergency savings built up, but if you lost your job due to an illness or a disability, that emergency savings is only going to last so long," Ward said. Disability insurance pays you a portion of your salary if you get injured or suffer a medical condition that prevents you from working. If you're an older parent, you might want to think about long-term care insurance, which can defray the costs of a home health aide or home modifications, like building a ramp for a wheelchair. Having life insurance can provide funds for a relative or another trusted individual to raise your children in the event of your death. It's also vital to have a will that names who you'd want to be their guardian. "When the burden of building a future you want for yourself and your child falls solely on your shoulders, identifying how you want your wealth distributed and managed if you are no longer living is important," Love said. "You can dictate how your wealth will be transferred to your child, and how those resources will be used." 7. Don't Forget to Invest for Your FutureRetirement may feel so far away, but it's never too early to save. In fact, the earlier you save up for retirement, the better chance you have for your money to really grow thanks to the power of compound interest. If you don't have much room in your budget, it's okay to start small. Simmons said she started with meeting the company match for her workplace retirement account and then increased her contribution amounts over time. "Eventually, I got to the point where I was investing 60% of my gross income," she said. Simmons' focus on investing led her to retire from her career as a tenured college professor by age 41. "I really encourage single parents to spend time learning how the stock market works, spend time learning the differences in the types of accounts that you can invest in," she said. Pro Tip Learn more about how single parents can save for retirement. 8. Establish a Positive Money MindsetIt may be easy to fall into the trap of focusing on what you lack as a single parent. But it's beneficial to maintain a positive money mindset. "Believe in yourself," Simmons said. "Know that you are worthy of being wealthy." A positive money mindset won't magically solve all your financial problems, but it'll help you recognize your potential to reach your financial goals. A negative mindset, on the other hand, can hold you back subconsciously. "The moment that you accept that you can do it and it's possible for you, no matter where you are today, the future is yours and you can do it," Simmons said. "You just have to start taking steps to get there." 9. Partner With a Financial CounselorOne of the struggles of single parenting is not having a partner to bounce ideas off of or to help make big decisions. To make up for that, Ward said it can be helpful to meet with a financial planner or money counselor. While you'll ultimately be making all the decisions, it can be helpful to discuss the pros and cons of big financial choices — like buying a house or saving for your kid's college education — with a professional. Use these directories to find an Accredited Financial Counselor or a Certified Financial Planner near you. 10. Teach Your Children How to Be Successful With MoneyIt's not enough to just get your financial house in order. Teaching your kids how to earn, save and grow money will set themselves up for a prosperous financial future. "I teach my children to create their own income," Simmons said. "I'm teaching them to be creators and not consumers." She assisted her 11-year-old son in writing and publishing a children's book about divorce. She also helps him invest the income he earns. Love said she involves her son in her family's finances by sharing the ups and the downs with him. "I don't just share with my son all of the success and accomplishments with my money," she said. "I also share the struggle and hard decisions. I believe this will help my son learn not only how to navigate the good times, but also the bad times." Nicole Dow is a senior writer at The Penny Hoarder. This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017. This posting includes an audio/video/photo media file: Download Now | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Wells Fargo Personal Loan Review 2022 Posted: 08 Apr 2022 04:55 AM PDT Wells Fargo landed in hot water several years ago when it was revealed that employees had created millions of fraudulent accounts in order to make their sales targets. Increased consumer acceptance of online banking, where customers can expect better interest rates and mobile apps, has also posed a problem for Wells Fargo, whose core checking account is not interest-bearing and whose savings account earns a meager 0.01% APY. On top of that, large banks like Citibank and Capital One have finally begun to embrace a no-overdraft-fee policy, but Wells Fargo lags behind. The bank has announced some changes to overdraft fees but so far no complete elimination. It's fair to say that Wells Fargo has a consumer perception problem. However, while Wells Fargo's bank account options are less than desirable and the brand is still working to regain consumer trust, the Wells Fargo personal loan offering is decent. Check out The Penny Hoarder's Wells Fargo review for a full run-down of the bank's features and offerings. Wells Fargo Personal LoansBest for Current Wells Fargo Customers    Key Features
Wells Fargo offers a solid personal loan option. With APRs that are capped at 19.99% (many competitors go up to 35.99%) and loan amounts as large as $100,000, Wells Fargo personal loans can be a top offer. The lack of origination fee and prepayment penalties are also a bonus. Wells Fargo Personal Loans  APR 5.74% to 19.99% Loan terms 1 to 7 years Loan amounts $3,000 to $100,000 Origination fees n/a Prepayment Penalty n/a Minimum credit score requirement Not disclosed Wells Fargo Loans: At a GlancePersonal loans are just one of the loan options offered at Wells Fargo. Borrowers can turn to Wells Fargo for:
While you can get a personal loan for any use case, Wells Fargo specifically advertises home improvement loans and debt consolidation loans. Wells Fargo is a full-suite bank that also offers multiple checking and savings accounts, CDs and investment options. In addition, Wells Fargo offers both small business banking and commercial banking. However, the Big Four bank no longer offers student loans. Wells Fargo Personal Loan ReviewStill not sure if a Wells Fargo personal loan is right for you? Let's dive in a little deeper to the specifics of the unsecured personal loans on offer. TransparencyTransparency continues to be Wells Fargo's largest problem. When applying for a personal loan, you cannot see your options unless you're an existing Wells Fargo customer. More frustrating, Wells Fargo does not disclose its minimum credit score requirement for personal loans. While the bank does sometimes approve bad credit loans, you're most likely to be successful in applying for a personal loan with Wells Fargo if your credit score is 600+, but the bank's website does not overtly state this. ConvenienceExisting Wells Fargo customers can easily apply for personal loans online. However, you cannot apply online or over the phone if you are not a current customer. Instead, you'll have to go into a physical location to apply with a Wells Fargo banker. While that's a big strike for convenience for non-customers, current customers will have a better experience. In fact, Wells Fargo banking customers can connect their checking account for a discount on their personal loan APR. Plus, the monthly payments are automatic, so you don't have to sweat late payments. Wells Fargo also funds most loans on the same day of approval or the next business day. Though the bank does not share statistics, the Big Four financial institution maintains that there are few exceptions to this quick funding process. Even more convenient: If you are using Wells Fargo specifically for a debt consolidation loan, the bank will coordinate direct payment to creditors. Want to open a loan with a co-borrower? You can get a joint loan, which may help you reduce the interest rate (and thus your monthly payment) and/or increase your max loan amount allowance. Need more help? Wells Fargo is one of the Big Four banks, meaning you can easily find a brick-and-mortar location (in all 50 states) to visit if you have questions before opening or during the life of your loan. The website is easy to use, and the Wells Fargo app in the Apple App Store carries a 4.8 star rating based on nearly 6.75 million reviews. FlexibilityPersonal loans from Wells Fargo have a fair bit of flexibility. You can secure a loan for up to $100,000, making it ideal for tackling large home renovations. However, if you are looking for a small loan amount, you will struggle with Wells Fargo, where the minimum threshold is $3,000. For $3,000 to $5,000 loans, loan terms are less flexible (1 to 3 years), but the range opens up when you apply for a larger loan (1 to 7 years). RatesWhile the 5.74% starting APR looks attractive, you will find lower rates elsewhere. In addition, this rate includes a 0.25% discount for being an existing Wells Fargo customer and setting up automatic payments. Wells Fargo says that at least 10% of approved applicants receive the 5.74% rate. However, the rate maxes out at 19.99%. Borrowers with bad credit can expect to fall on this end of the range. This high APR is actually not bad compared to some competitors, with rates as high as 35.99%. The reason? Wells Fargo is stricter about whom it approves. Bad credit borrowers are more likely to get rejected here, meaning online lenders with rates as high as 36% may be their only viable option. Wells Fargo Personal Loan: Pros and ConsIf you're specifically looking for an unsecured personal loan, whether for a home renovation, debt consolidation or emergency expense, you'll want to weigh the pros and cons of opening a Wells Fargo loan. Pros
Cons
Frequently Asked Questions (FAQs) About Wells Fargo Personal LoansStill have questions about opening a Wells Fargo personal loan? Here are the answers to some of the most common questions. How Much Can Wells Fargo Loan You? Wells Fargo offers personal loans up to $100,000, pending approval. You can get larger loans if applying specifically for a mortgage. What Credit Score is Needed for Wells Fargo Financing? Wells Fargo does not disclose a minimum credit score requirement for unsecured loans. However, a credit score of 600 or higher will improve your chances of approval. If you have bad credit, prepare for rejection or a higher interest rate. Do I Have to be a Wells Fargo Customer to Get a Loan? Only current Wells Fargo customers can apply for a personal loan over the phone or online. Non-customers must apply in person, but you'll get a slight discount if you have a Wells Fargo checking account. What is an APR? When looking at Wells Fargo personal loans, you'll notice an advertised APR as a leading feature. APR, or annual percentage rate, is the yearly interest rate charged on your personal loan. What Factors Does Wells Fargo Look at for Loan Approval? While Wells Fargo doesn't disclose its minimum credit score requirement, the bank does look at your credit report and credit history when reviewing your loan application. If you have a low credit score or no credit history, you are not likely to be approved and should consider personal loans for bad credit. Can I Get a Personal Loan with Bad Credit? It's possible to get a personal loan from Wells Fargo with bad credit, though it's not guaranteed. There are other online lenders that specifically target borrowers with poor credit scores, but beware: APRs are likely to be high, and they might cap you at a low credit limit. Does Wells Fargo do Small Personal Loans? The smallest loan option available through Wells Fargo is $3,000. Some online lenders offer loans as small as $1,000 — or even $500. The Bottom LineWells Fargo's personal loan option is decent if you have a fair to strong credit score, but the bank is still working on winning back customer trust and improving its core savings and checking account offerings. Timothy Moore covers banking and investing for The Penny Hoarder from his home base in Cincinnati. He has worked in editing and graphic design for a marketing agency, a global research firm and a major print publication. He covers a variety of other topics, including insurance, taxes, retirement and budgeting and has worked in the field since 2012. This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017. This posting includes an audio/video/photo media file: Download Now |
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