Money Management

Failing to pay your rent could leave you without a home. Read on to see how the eviction process works. 

It’s important to crunch your numbers carefully before signing a lease on a home, just as it’s important to figure out how large of a mortgage loan you can afford before buying one. That’s because falling behind on your housing payments could have serious consequences.

If you buy a home and fall behind on your mortgage payments, you could face foreclosure. Similarly, if you rent a home and fall behind on your rent payments, you could face eviction. And that’s not something you want.

When you don’t pay when you’re supposed to

When you sign a rental contract, you’re locked into a binding agreement that requires you to pay your rent at a certain time each month. If you don’t pay your rent, you could face eviction. It’s as simple as that.

Now this isn’t to say that you’ll face eviction for missing one rent payment, or being late a couple of times. But if you consistently fail to pay your rent, it’s conceivable that your landlord will aim to evict you unless you agree to move out on your own.

However, there’s a process landlords need to follow when it comes to evicting tenants. And it’s important to know your rights in that situation.

Nolo says that for a landlord to evict you, they first need to serve you with a notice telling you that you must pay past-due rent within a certain period of time (often, a few days) or otherwise agree to move out. If you fail to pay your rent within the specified time frame, your landlord has the right to pursue an eviction by filing a notice in court.

From there, you’ll be given a hearing date where a judge will rule on whether your landlord can evict you. If you don’t show up to that hearing, there’s a good chance that eviction will get approved.

Once that happens, you’ll be given a date by which you must vacate your home. If you don’t adhere to that date, your landlord may have the right to enlist the help of law enforcement to remove you and your belongings from their property.

Don’t get to the point of being evicted

Landlords generally do not enjoy evicting tenants. It can be a lengthy, time-consuming process that’s painful for everyone involved. That’s why it’s best to have a conversation with your landlord if your financial situation has worsened and you’re no longer able to pay your rent.

In some cases, your landlord might agree to reduced payments for a period of time if you can’t swing your rent in full. They may also agree to pause your rent payments for a few months if you’re in the midst of a temporary hardship — for example, you lost your job and you’re in the process of trying to find another.

But all told, as a tenant, you’re required to pay rent. And your landlord has a right to collect it in exchange for putting a roof over your head. If you’re unable to pay your rent, you may want to agree to move out on your own terms rather than let things reach the point where your landlord has no choice but to evict you.

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Social media can be a powerful tool for connecting with others and discovering new ideas. But read on for bad financial advice you might find there. 

Social media has become an integral part of our daily lives. These are places where we can connect with friends and family, share our opinions, and discover new ideas. Unfortunately, social media is a double-edged sword when it comes to financial education. On the one hand, it offers free access to financial information that can help you make smarter decisions. But on the other hand, it also perpetuates financial myths and half-truths that can do more harm than good.

2 out of 5 Americans receive financial advice from social media

According to a recent survey, 39% of Americans receive their financial advice online or from social media. The most popular place to get financial advice is YouTube for Generation Z (63%) and millennials (71%). TikTok is quickly gaining ground as a platform for financial advice, especially with Gen Z (56%).

More than 60% of those surveyed stated that they have acted on the advice they received online. While social media and online advice have made it easier to access financial tips, there are scammers or supposed financial experts giving bad advice out there.

Let’s debunk five financial lies that are commonly spread on social media.

1. You can get rich quick with no effort or risk

We’ve all seen the posts about the latest “get rich quick” scheme or the overnight success story that promises millions with no risk or effort. While it’s true that some people have struck it rich through investing or entrepreneurship, the reality is that it takes hard work, patience, and a bit of luck to build wealth.

Investing always comes with risk, and there’s no guarantee of success. Don’t fall for the myth that you can become an overnight millionaire without putting in any effort or taking any risks.

2. Debt is always bad

Debt is a tool that can be used to achieve your financial goals, such as buying a home or starting a business. While it’s true that high levels of debt can be dangerous and lead to financial hardship, not all debt is created equal.

Mortgage debt, for example, can help you build equity and provide a stable place to live. Don’t fall for the myth that all debt is bad; instead, learn to manage your debt responsibly and use it to your advantage.

3. Investing in cryptocurrencies is the fastest way to get rich

Cryptocurrencies have become a hot topic on social media, with many individuals touting their success stories from investing in digital currencies such as Bitcoin. However, investing in cryptocurrencies can be incredibly risky and volatile.

The value of a cryptocurrency can fluctuate significantly in a short amount of time, leaving investors vulnerable to significant losses. Additionally, digital currencies are currently unregulated, making them an easy target for scams and fraud.

If you are interested in investing in cryptocurrencies, it is essential to understand the risks involved and to invest only what you can afford to lose.

4. Credit cards are evil, and you should avoid them at all costs

Credit cards have become a financial tool that many people love to hate. While it is true that credit cards can lead to debt and financial hardship, if they’re used responsibly, they can be a valuable financial asset.

Credit cards can help you build your credit score, earn rewards points, and provide you with a safety net in case of emergencies. Fraudulent purchases made on your credit card are also protected by federal law. Many credit card companies offer a $0 liability policy, so you aren’t held liable for fraudulent activity.

However, it is crucial to use credit cards responsibly and only charge what you can afford to pay off each month. Additionally, you should avoid carrying a balance so you don’t rack up high interest charges and fees.

5. The higher the income, the happier you’ll be

It is easy to fall into the trap of believing that a higher income equals a higher quality of life. While having financial stability and security can certainly contribute to happiness, it is not the only factor.

In fact, studies have shown that once basic needs are met, there is little correlation between income and happiness. Instead, focusing on meaningful relationships, a healthy work-life balance, and engaging in activities that bring you joy are more significant predictors of overall life satisfaction.

Social media can be a great source of financial education, but it’s important to learn to separate fact from fiction. By avoiding these five financial lies and educating yourself on the basics of personal finance, you’ll be better equipped to make smart financial decisions and achieve your goals. Remember, building wealth takes time and effort, but it’s worth it in the end.

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Not everyone is interested in learning how to invest. Read on for a great option if you don’t want to spend time researching stocks. 

A friend of mine (who I’ll call Jane) is a wonderful human who works hard at her job and is constantly running around to take her kids to soccer, dance, and the myriad other activities they’re enrolled in. She’s also a smart, kind person who wouldn’t hesitate to go out of her way for a friend in need.

But one thing my friend Jane is not good at is investing. In fact, if you were to ask her how the stock market works, she’d probably say something along the lines of “I dunno.”

Not only does Jane really not know much about investing, but she’s not particularly eager to learn. As she’s told me, she’s busy enough between a 40-hour-a-week job and a busy household. She just doesn’t have the brain space to learn how to analyze stocks and choose the right ones.

That said, Jane wants to be able to retire eventually. And she wants to retire with a decent pile of money to her name. So she opened an IRA a few years ago and has been trying to fund it consistently ever since.

When she asked for my advice on how to invest her IRA, I told her that maintaining a diversified portfolio was important. And when she, in turn, looked at me like I had four heads, I told her not to worry, because I was about to recommend an investment that could easily set her up for success.

When ETFs come to the rescue

Since Jane admits that she’s a clueless investor with no plans to get educated, I recommended that she load her portfolio with S&P 500 ETFs, or exchange-traded funds. By choosing these specific ETFs, Jane gets exposure to the broad stock market. Only she doesn’t have to spend her time researching 500 different stocks individually, or even a few different companies.

Now I explained to Jane that there’s technically no guarantee that her portfolio will perform well over time with this strategy. That said, over the past 50 years, the S&P 500 index has delivered an average annual return of 10% before inflation. This doesn’t mean that every year has been a winning one for the index, but over time, it’s performed well.

Meanwhile, if Jane invests $300 a month in S&P 500 index funds over the next 30 years, and her portfolio delivers an average annual 10% return, she’ll end up with about $592,000. That’s not too shabby for someone who really doesn’t know a thing about buying stocks.

It’s okay to take the easy way out

Analyzing stocks isn’t something everyone wants to do. If you’re looking to build wealth over time without having to do a ton of research, it’s perfectly okay to fall back on broad market ETFs. The key is to put your money to work over many years so you can grow wealth gradually and set yourself up to retire without financial worries.

Of course, it’s always a good thing to try to educate yourself on investing so you’re equipped to make savvy decisions with your long-term savings. But if you just don’t have the head space for getting deep into the nitty gritty, you don’t have to feel ashamed in any way.

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Amazon Prime Day isn’t only about discounts, you can also get credits for signing up for its services in the coming weeks. Find out how to save even more. 

Amazon Prime Day is almost upon us, with the promise of huge discounts on all kinds of products. This year’s Amazon Prime Day will take place on July 11 and 12. If you want to score some extra savings, take these steps before then.

How to get Amazon Prime Day credits

In addition to bonus games and discounts on Prime Video and other subscriptions, Amazon is offering an instant $200 gift card to Prime customers who sign up for its Prime Visa card between June 29 and July 26. It also has the following specific credits for Prime Day spending.

Get $5 credit when you buy a $50 eGift card

If you buy an eGift card on Amazon between July 3 and July 10, you can get a $5 credit to be used during Prime Day. To qualify, you’ll need to be a Prime member and click the button in the offer terms and conditions section.

Get $15 credit when you use the Amazon Photos app

Eligible customers can get a $15 credit to spend during the Prime Day event if they download the Amazon photos app and upload a photo before 11:59 p.m. on July 7. The offer isn’t available to people with a trial Amazon Prime membership.

Amazon says it will send an email within four days confirming that the credit has been applied to your account. The app gives you unlimited photo storage and 5GB of video storage. If you need more space, you’ll need to pay a monthly fee.

Amazon’s big sale is much more than a day

Prime Day is somewhat of a misnomer. Not only is the sale itself actually two days long, there are several offers that run before and after the main event. For example, from June 21 to July 10, Prime members can get 20% off when they spend $50 or more at Amazon Fresh. Prime members can also access early deals with big brands starting June 21.

It’s also worth knowing that Amazon isn’t the only show in town, sales wise. Other big stores such as Target and Walmart will have sales at similar times to Amazon, so it’s worth shopping around for the best deals. Target’s Circle Week sale runs from July 9 to 15 and Walmart Plus Week runs from July 10 to 13.

Avoid buyer’s remorse

I am a sucker for a good sale and I’ve been watching out for Amazon Prime Day for months. There are several items I’ve been holding off on buying in case I can get Prime Day discounts. But sales can also be dangerous spending wise, especially when you can see the timer ticking down or the percentage of the items that have been claimed ticking up.

Make a list of the things you need and set a budget for how much you can spend. One trick to stop yourself from overspending during sales is to be ruthless about needs and wants. You probably don’t need that Hawaiian shaved ice machine or rotary cheese grater. You might, however, need back-to-school supplies or replacement headphones that you’ll use for work.

That isn’t to say you can’t splurge a bit if you’ve got the cash. But if you don’t have enough money in your checking account, don’t let these discounts send you into the red. It can be tempting to put sale items on your credit card, even when you know you won’t be able to pay off the balance at the end of the month. Try to resist taking on debt for a special offer — if you can’t pay it off quickly, you may wind up paying more in interest than you save.

Consider whether Prime membership is worth it

Think about whether you’ll save enough to warrant paying the $14.99 monthly Amazon Prime fee. It’s true that if you can qualify for the $20 in credits above, it will cover one month’s subscription. Plus, if you haven’t used Prime in the past year, you may be able to get a free trial (though that could stop you qualifying for the credits).

You might also be able to get a discount on your Prime membership. If you receive government assistance such as SNAP benefits or Medicaid, the price may come down to $6.99 a month. The discounted rate for students is $7.49 per month.

Amazon Prime membership can offer some decent perks. If you’re going to use the free shipping, music, movie and TV streaming, or Whole Foods discounts, it may pay for itself. But if not, consider only signing up for a month’s worth of membership around Prime Day or not at all.

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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.John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Emma Newbery has positions in Amazon.com. The Motley Fool has positions in and recommends Amazon.com, Target, Visa, and Walmart. The Motley Fool has a disclosure policy.

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It’s smart to move money out of an old 401(k) when you leave a job. Read on to see why. 

When you work for a company that offers a 401(k) plan, it can often make sense to participate. Not only is funding a 401(k) plan a great way to save money on taxes in the course of socking money away for retirement, but you might end up snagging free money in your account. That’s because many companies that offer 401(k)s also match worker contributions to varying degrees.

But what if the time has come to leave your job? If so, you may have the option to leave your 401(k) where it is. But a better bet is generally to roll that money into a new retirement plan.

Now if you’ve already gotten a new job and know you’ll have access to a 401(k) plan through your future employer, then rolling your old 401(k) into that new 401(k) could make sense. But if you’re not sure whether you’ll have access to a new 401(k), then it generally pays to roll an old 401(k) into an IRA.

You don’t want to forget about that money

When you leave an old 401(k) alone, you run the risk of losing it. And if you’re thinking “there’s no way I’ll forget about my money,” know this. Capitalize estimates that there are a good 29.2 million forgotten 401(k)s holding about $1.65 trillion in assets. Wowza. So if you’re leaving a job, it pays to roll your old 401(k) into a new retirement plan.

When you do a rollover to an IRA

There are two ways to roll a 401(k) into an IRA. One is to do a direct rollover, where your money transfers from your old retirement account to your IRA so you never get a chance to touch it. The other is to do an indirect rollover, where you get a check for the balance of your 401(k) and it’s on you to deposit those funds into your IRA.

If you’re given the choice, a direct rollover is generally your best bet. That’s because a direct rollover ensures that your money will land in your IRA as it’s supposed to.

With an indirect rollover, you only get 60 days to move the funds from your old retirement plan into a new one. If you don’t deposit those funds in time, the money you’ve received from your old plan will generally be treated as a distribution.

If you’re not yet age 59 ½, an IRA or 401(k) distribution will be subject to a 10% early withdrawal penalty. Plus, you might face taxes on your distribution right away if your money is in a non-Roth account. You really don’t want either of these things to occur.

Many people who leave a job with a 401(k) opt to roll that money into a new 401(k). But if that’s not an option for you, you can always roll an old 401(k) into an existing IRA or a new one you open. But either way, be careful about doing that rollover, because you don’t want to risk a scenario where you end up facing taxes and penalties in the course of moving your retirement savings around.

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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.
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Time away from work might seem undoable. Read on for tips on pulling it off. 

Running a small business is no easy feat — namely, because you’re responsible for pretty much everything. Even if you have an accountant to manage your books, you might still feel compelled to check up on your banking records frequently to keep tabs on your company’s finances. And even if you have an HR manager, you might still feel compelled to intervene when on-the-job conflicts arise, or when new hires come on board.

As such, the idea of taking a vacation this summer might seem downright laughable. And you wouldn’t be alone in that feeling.

Data from OnDeck reveals that only 57% of small business owners take vacations. But not getting a break from the grind could wreak havoc on your mental health. It could also cause tension within your household if the rest of your family is desperate for a getaway and you refuse to travel because you’re afraid of being away from work.

If you’re interested in taking a summer vacation this year, you should know that it can be done. You just need a little advanced planning and the right strategy.

Allow yourself to get away

Not taking the occasional vacation and break from work could lead to a serious case of burnout. And that has the potential to impact your long-term productivity. So think of a summer vacation as an investment in your long-term performance on the job.

With that said, there are steps you can take to make a summer vacation more feasible. First, commit to a date in advance and let everyone at your company know. That will set the expectation that you won’t be available for a period of time, and that certain tasks requiring your approval or oversight will have to be completed ahead of your travels or otherwise postponed until you get back.

Next, make a list of the various tasks you do — even the small ones that only take 10 minutes a week — and delegate each and every one of them to another employee. That way, you won’t have to worry about things falling apart if you’re away for a period of time. It will also give the people assigned those tasks an opportunity to ask questions and make sure they understand what’s expected of them while you’re gone.

Finally, think about the general flow of business during the summer. Is July busier than August? Do things tend to calm down in the weeks before school starts? If so, you may want to plan your trip for late August, or whenever it makes the most sense for your business.

Don’t assume a vacation is off the table

The idea of taking an extended break from your small business might seem overwhelming. But if you don’t allow yourself to get away, you might get overwhelmed by the constant pressure that comes with being the person in charge. And so it’s worth making the effort to treat yourself to a vacation, even if it means having to do a fair amount of planning ahead of time.

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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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