Money Management

Amazon Prime Day 2023 is almost here, but you don’t have to wait until July 11 to save money. Find out about the best early Prime Day shopping deals. 

Amazon Prime Day is a popular sales event for online shoppers. By taking advantage of these deals, consumers can keep more money in their checking accounts. This year’s event starts on July 11, but you don’t have to wait until Prime Day to get a discount. Amazon has some early deals available to Prime members. I’ll discuss a few can’t-miss deals below.

1. Amazon Fire HD 10 Tablet

Amazon has you covered if you need a new tablet. Prime members can get the Amazon Fire HD 10 Tablet at a discounted price. The 10.1-inch ad-supported version of the tablet is on sale for $89.99 instead of the usual $189.99 price tag. That’s a great price for a portable device.

2. BLUEAIR Air Purifier, Classic 480i

For anyone looking to reduce allergens and other irritants from the air in their home, the BLUEAIR Air Purifier, Classic 480i is on sale for $275.99. This air purifier can improve your home’s indoor air quality by removing airborne particles like dust, pollen, and pet dander. The 480i model is ideal for rooms up to 434 square feet and features HEPASilent filtration technology. You’ll get a 60% discount by purchasing it from Amazon.

3. Amazon Fire TV 43″ 4-Series 4K UHD smart TV

For anyone looking for a new television, Amazon Fire TVs are on sale ahead of Prime Day. You can purchase the Amazon Fire TV 43″ 4-Series 4K UHD smart TV for $259.99. This is a 30% discount from the usual sticker price of $369.99. The 43″ model features 4 HDMI input so you can easily connect your gaming systems and cable and audio equipment.

4. Get three months of Kindle Unlimited for free

If you’re a bookworm, you’re going to like this deal. Prime members can sign up for three months of Kindle Unlimited for free. Kindle Unlimited users get access to over 4 million digital titles. Audiobooks are also available if you enjoy listening to books.

5. Samsonite Centric 2 Hardside Expandable Luggage

A sale is an excellent time to upgrade your luggage. Amazon has the Samsonite Centric 2 Hardside Expandable Luggage with Spinner Wheels on sale for $142.32 instead of $279.99. The 28-inch bag is available in various colors and is ideal for checked luggage. If you have a trip planned soon, you may want to take advantage of this discounted offer.

6. Shark RV1001AE IQ Robot Self-Empty XL

A robot vacuum can make it easier to keep your home clean. Prime members can scoop up the Shark RV1001AE IQ Robot Self-Empty XL model for $299.99. This robot vacuum is usually priced at $599.99, so you’ll get a 50% discount buying it through Amazon. It connects to wifi and works with Amazon Alexa and Google Assistant.

Additional deals will be available on July 11 and July 12

If these deals aren’t for you, that’s okay. There will be plenty more sales to shop during Prime Day 2023. Mark your calendar for July 11 and July 12 so you don’t miss out on the best shopping discounts. You’ll need to be a Prime member to shop Prime Day deals. You can join Prime for $14.99 monthly or $139 per year, and Amazon also offers a 30-day free trial.

It can be a win for your personal finances when you shop during major sales events like this. Before Prime Day starts, we recommend making a shopping list so you don’t feel tempted to overspend by purchasing items you don’t need. You can use cash back credit cards at checkout to get rewarded for shopping. Earning cash back on purchases you already plan to make can feel like a win and help you boost your savings account balance.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Natasha Gabrielle has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet and Amazon.com. The Motley Fool has a disclosure policy.

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Many things are different when you’re self-employed, including getting a mortgage. Learn what to expect when going through the application process. 

I’ll never regret the day I made the decision to stop being an employee and work for myself. But I’ll also be the first to tell you that it’s not for everyone. Many, many things are more complicated when you’re self-employed, from finding health insurance to paying taxes.

If the stories are to be believed, getting a mortgage is also one of those things that is made unnecessarily complex when you work for yourself. So I was understandably anxious when I took the plunge.

When all was said and done, I don’t think the process was actually any worse for me as a freelancer than it would have been for a regular employee. However, it is different, and everything will take longer and be more frustrating if you’re not prepared. Let’s take a look at what to expect.

The terrible twos

Your first roadblock is going to be the age of your business. In general, you need to have been self-employed — in the same industry — for at least two years.

Note the callout to “the same industry.” This is key.

Lenders like consistency. They want to know your income is consistent and reliable enough that you can make all of your mortgage payments.

While some freelancers might have the same clients for years, that’s not always standard. And it’s certainly not the same thing as having the same employer for years. So, lenders settle for knowing you’ve been doing the same sort of work in the same industry — and making the same (or more) money.

To address this, you’ll need to answer a number of questions about your business, such as the date it was started and the type of work you do. In some cases, you may need to provide a copy of your business license or your DBA documentation. If you have a particularly difficult lender, it may even ask for recent invoices or letters from current clients.

Proving your income

No matter where your income comes from, the bank will want to see it. If you’re a regular employee, you typically need to provide your most recent W2, as well as your most recent pay stub.

For the self-employed, lenders are a bit more thorough. To start, you’ll need to provide the last two years of completed tax returns. The mortgage lender will use the average of your income from the two years (add the totals together and divide by two) as your annual income during your mortgage calculations.

Depending on the time of year, you may also need to submit a year-to-date profit and loss (P&L) statement. This is to show that you’re on track to match — or exceed — your previous years’ income.

Many lenders will accept the P&L you can generate within your accounting software. If you don’t use software, or have a stricter lender, you may need to work with an actual accountant.

A letter from your “employer”

Any time you’re buying far from a bank’s location, the bank will need to be reassured that the move won’t hurt your income. For regular employees, this usually means getting a letter from your employer.

But what if you are your employer? Well, you write the letter, of course!

In my experience, it was exactly as easy as it sounds. I drafted a short note explaining that my business wouldn’t be negatively impacted by my move to another state. And that was it.

A not-so-horrible story

Despite the horror stories you may hear, getting a mortgage while self-employed doesn’t have to be a nightmare. Is it a little more complicated than it is for traditional employees? Sure. There are some specific documents to provide and requirements to meet. But it’s like anything else: How easy it is depends on how prepared you are. Do your homework and you can have a smooth experience.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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Inflation can make borrowing more expensive. Read on to learn why. 

Personal loans are often touted as an affordable means of borrowing. And this especially holds true for borrowers with excellent credit. Plus, personal loans allow you to borrow money for any purpose, whether it’s a home renovation or a car repair. You can even take out a personal loan to start a business.

But personal loans are more expensive to sign these days than they’ve been in the past. And inflation is a big driver of that.

The connection between inflation and the cost of personal loans

Inflation has been rampant since mid-2021, and it’s forced many consumers to do things like raid their savings and rack up balances on credit cards just to cover essential expenses. The Federal Reserve, meanwhile, has not taken inflation lightly.

Quite the contrary — the central bank has raised interest rates 10 times since March 2022 in an effort to slow the pace of inflation and give consumers some much-needed relief. But while those rate hikes have, in fact, helped bring inflation down to a more moderate level, they’ve also made borrowing more expensive across the board.

These days, it’s more expensive to sign an auto loan, home equity loan, and just about any type of loan — including a personal loan. And if inflation persists, the Fed may need to raise interest rates again.

At its last meeting, the Fed actually paused rate hikes, noting the progress that’s been made in fighting inflation. But the Fed also signaled that inflation is still higher than what the central bank wants.

In May, the Consumer Price Index (CPI), which measures changes in the cost of consumer goods and services, was up 4% on an annual basis. That’s a vast improvement from June 2022, when annual inflation, as measured by the CPI, came in at 9.1%.

But still, 4% inflation is not what the Federal Reserve wants. Rather, the Fed is committed to bringing inflation down to 2%. It’s this level, the central bank feels, that’s most conducive to economic stability. So while the Fed may have taken a break from rate hikes temporarily, it might very well resume that practice if the next CPI reading doesn’t show more improvement.

And this is precisely why anyone looking to take out a personal loan should be paying attention to what’s happening with inflation. Another rate hike could make a loan even more expensive.

Should you wait on a personal loan?

Since it’s already more expensive to take out a personal loan now, you may want to wait to borrow money if you’re not in an urgent situation. Say you want to finish your basement and borrow $30,000 to do it. If you’re able to wait a year, you may find that it’s less expensive to borrow at that point. So you’ll need to weigh the inconvenience of waiting against potential savings.

Now if your need to borrow is more pressing, waiting may not be an option. But in that case, you may want to apply for a loan sooner rather than later — before it potentially gets more expensive.

Our picks for the best credit cards

Our experts vetted the most popular offers to land on the select picks that are worthy of a spot in your wallet. These best-in-class cards pack in rich perks, such as big sign-up bonuses, long 0% intro APR offers, and robust rewards. Get started today with our recommended credit cards.

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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There are a lot of horror stories about getting a mortgage as a freelancer. This writer had a different — better — experience. Read on for the details. 

I’ve heard a lot of horror stories over the years about all of the hoops you have to jump through to get a mortgage as a freelancer. As you might assume, banks like to see regular income, and they tend to prefer if that income is from a traditional salary.

However, it’s definitely not impossible to get a mortgage while self-employed. In fact, my experience was so surprisingly painless that I needed to share it.

The two-year rule of thumb

Part of what made my personal experience so simple is that I’ve been doing the same kind of freelance work for several years. In general, mortgage lenders want to see that you’ve been self-employed in the same industry for at least two years.

Essentially, the mortgage lender wants to know that you’re not only getting work in your field, but that you’ve been able to do so consistently for multiple years. This helps assure them that you’ll continue to be able to support yourself — and, more importantly, make your mortgage payments — in the future.

You don’t need to have the same clients or work on the same specific projects for that two-year period. You simply need to stay within your industry.

Depending on your lender’s rules, you might get away with having a little less than two years of freelancing if you were previously employed in the same industry. For instance, if you were an employee for a publishing company, then decided to become a freelance editor, this might count. This will vary a lot by lender, so it’s best to ask about it upfront.

The paperwork

Now that that’s out of the way, let’s get to the real meat and potatoes: the paperwork. Here’s a look at the income-related documents that I needed to provide to get my mortgage:

Two years of tax returns: I had to submit the previous two years of completed tax returns. The lender was looking to see if my income grew, or at least stayed the same, during that time. (Regular applicants typically only need the previous year’s W2.) The lender will average your income over those years and use that number for your application.A profit-and-loss (P&L) statement: I applied for my mortgage in late spring, after the first quarter was over, so my lender wanted to see a year-to-date P&L. This was to show that my income was still on track to match previous years. Since I use accounting software, this was easy to generate. Depending on your situation, you may need to have an accountant provide the document.A personal letter: Because I was buying in another state, I had to show that my income wouldn’t be impacted by the move. As an employee, you would do this with a letter from your employer. Since I am my own employer, I wrote a short personal letter explaining that my self-employment income was independent of my location.

And that’s basically it. Well, alright, there was a ton more paperwork to get a mortgage, but these are the things that were unique to my freelancer status. The rest of the mountain of documents involved will be the same no matter how you make your money.

Extra help from great credit and a small bank

Any time you’re getting new credit, be it a credit card or a loan, your credit history is going to be a big factor. While I can’t say for certain, I believe that my excellent credit history helped smooth my journey just as much as my years of freelancing experience and consistent income.

I also need to give some of the credit (forgive the pun) to my bank. I went with a small, local bank that was very happy to get my business. Had I chosen a multinational banking conglomerate that didn’t need — or even want — to provide my mortgage, there’s a good chance the process would have been a lot more complicated.

In the end, I don’t think that my experience getting a mortgage was any more complicated than it would have been had I been a regular employee. Some of the documents were different, but they weren’t any harder to gather. (If anything, not needing to do any back and forth with an employer may have even sped things along.)

Your personal experience will most likely vary, but hopefully this helps assure all you freelancers out there that homeownership is entirely within your realm of possibility.

Our picks for the best credit cards

Our experts vetted the most popular offers to land on the select picks that are worthy of a spot in your wallet. These best-in-class cards pack in rich perks, such as big sign-up bonuses, long 0% intro APR offers, and robust rewards. Get started today with our recommended credit cards.

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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These are two solid options to help get rid of your debt, but there are some key differences. Find out what you need to know. 

Credit card balance transfers and personal loans can both be useful tools to help you get out of debt faster. However, there are some big differences between the two, and one might be far superior to the other for your situation. In this article, we’ll take a look at some of the most important things to keep in mind on your debt reduction journey.

Reasons to consider a balance transfer

Even in the rising interest rate environment we’re in, there is no shortage of excellent credit card products that offer balance transfers with 0% APR for as long as 18 months. Because of this, balance transfer cards can be an economical way to pay off debt. After all, if you transfer a balance at 0% APR, every penny you pay the credit card company reduces the principal.

It’s important to point out that most balance transfer offers come with a one-time fee. It typically ranges from 3% to 5% of the amount transferred. But this can still save you tons of money on interest when paying off debt, especially considering the current average credit card APR is about 24%.

In addition to offering a 0% APR on balance transfers, many of our favorite balance transfer credit cards also offer a 0% intro APR for new purchases, in addition to rewards programs that allow you to earn cash back or reward points.

Advantages of a personal loan

The biggest advantage of a credit card balance transfer is cost. There are some of our favorite personal lenders that still offer relatively low interest rates, but you aren’t going to find a 0% APR. However, the biggest advantage of using a personal loan to consolidate and pay off debt is time.

Typical balance transfer offers are for 12 months or so, and even the best offers typically extend to 18 months or 21 months. The catch is that if you don’t pay off the entire balance before the introductory term expires, the credit card’s normal purchase APR kicks in.

On the other hand, personal loans generally range from three to seven years in length. They allow you to spread out your debt repayment over a term that results in a payment that fits your budget. Also, personal loans are structured so they will be completely paid off at the end of the term. Balance transfer credit cards have a minimum payment due each month, but it usually won’t be nearly enough to pay the entire balance off before the introductory period ends.

Yet another reason to use a personal loan is that installment debts are typically counted more favorably in the credit scoring formulas than revolving debts (like credit cards). And this can be especially true with balance transfers. Think of it this way — if you open a new balance transfer credit card with a $10,000 limit and proceed to transfer $9,000 worth of existing balances onto it, you’ll now have a nearly-maxed-out credit card weighing on your score.

Which is best for you?

Here’s the key takeaway. A balance transfer credit card is an economical way to consolidate and get rid of debt that you can manage to completely pay off relatively quickly. You’re not likely to find a personal loan with a 0% APR like most balance transfer offers, but it can give you a fixed monthly payment and term length that is manageable for your budget.

No two financial situations are the same. The best choice for you depends on how much debt you have, how much you can afford to pay each month, and more. But these are two excellent financial tools at your disposal, and both can help you tackle your debt.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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The average American household carries nearly $102,000 in debt. If debt is weighing you down, read on for seven things you can do to change your situation. 

If you find yourself deeply in debt, you have plenty of company. By the end of 2022, the average household carried $101,915 in debt. And according to the Federal Reserve Bank of New York, total household debt increased by $394 billion in the fourth quarter of 2022.

We Americans, for the most part, accept debt as a normal part of everyday life. However, debt can weigh on you, causing stress and sleepless nights. If you’re in too deep and rarely have enough left in your checking account each month, here are some key steps you can take — beginning today.

1. Know where you stand each month

According to Credit.com, 27% of Americans don’t believe they need a budget. If you’re one of them, it may help to know that a monthly budget can be simple, and there are budget apps designed to get you started.

You won’t be able to anticipate everything, but you can get close. For example, you may not know when you’ll need to pay a medical copay, but you can bet it will happen sometime in the future. That’s something you can plan for.

2. Trim the fat

Once you have a list of your monthly expenses, ensure you have everything. For example, if you have a streaming TV or satellite music subscription, make sure it’s on the list. Now look over each item in your budget to determine if there’s anything you can live without. It may be a gym membership you’re not using because you’re exercising outdoors this summer or a wine of the month club you can put on pause.

Also, look at goods and services that cost you money each month. For example, if you’re paying for a high-end hair salon, determine whether a less expensive salon will be sufficient until you’re back on solid financial footing. If you’re paying to have your lawn mowed, consider whether it’s a task you can take over.

Most people can find something in their budget they can cut without feeling a loss.

3. Speak with your creditors

If debt has caused you to miss or make partial payments, contact the creditor(s). Explain your situation and ask about options. Perhaps a creditor will forgive late fees, or if you’ve been a loyal customer, a creditor might reduce the interest rate you pay. If a creditor offers a break, ask them to put it in writing and mail you a copy.

4. Stop creating new debt

This may sound obvious, but when you’re in debt, you’re more likely to pull out a credit card to make a purchase. Make it a rule that you can only buy something if you can afford to pay cash. There’s no reason to dig the debt hole any deeper.

5. Consider a debt transfer

If your credit score remains in good shape, consider applying for a credit card with a 0% transfer promotion. Here’s how such a promotion works:

If approved, you transfer the high-interest debt from another card to the new card.Typically, the 0% promotional period lasts between 12 months and 18 months. That means you have that long to get the debt paid off before the interest rate jumps.

Let’s say you owe $5,000 and transfer it to a card with an 18-month promotional period. At 0% interest, you can have it paid off in 18 months by making a monthly payment of $278.

As long as you refrain from taking on new debt, transferring debt to a card with a 0% promotional rate can whittle down debt rapidly.

6. Carve out enough for an emergency fund

The rule of thumb is to put away enough money to cover your essential bills for three to six months. It may be the last thing you believe you can do when you’re in debt. However, even putting a little into an emergency fund can help. For example, if the most you can spare monthly is $50, that’s an extra $600 tucked away after 12 months. That’s enough to buy a couple of new tires, replace a broken window, or cover an emergency visit to the veterinarian.

The goal of an emergency fund is to prevent you from needing credit to pay for the small emergencies in life.

7. Seek help from a nonprofit credit counseling service

A nonprofit organization like the National Foundation for Credit Counseling (NFCC) are experts at working with people in your predicament. Nothing will shock them. A certified counselor can help you create a plan to tackle your debt. There are no loans, no fees, and no fear of getting deeper in debt.

The weight of debt can feel overwhelming, but don’t lose hope. Many of us have been in the same situation and come out the other side.

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Read our free review

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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