Money Management

Have some time? Answer questions online for money! 

Did you know that you can make money by taking surveys online from the comfort of your own home? It’s true. While you won’t get wealthy doing it, based on the time you spend, you could earn a few hundred to a couple thousand dollars a year. There are a number of sites out there that will pay you cash or rewards for participating in their surveys. Here are three sites to take online surveys and give your budget a boost!

1. Survey Junkie

Survey Junkie is one of the most popular survey sites out there. With Survey Junkie, users can earn points for completing surveys which can then be exchanged for e-gift cards or PayPal payments. The site offers a variety of different surveys, so you’re likely to find something that interests you. Additionally, Survey Junkie has a low payout threshold, meaning that once you reach a certain amount of points, you’ll be able to cash out your earnings quickly and easily. Survey Junkie offers additional rewards for participating in focus groups and behavioral research.

2. Swagbucks

Another great option for earning money through surveys is Swagbucks. Swagbucks is similar to Survey Junkie in that it pays users in points which can then be converted into gift cards or cash back from PayPal. Swagbucks gives out 7,000 free gift cards every day and has paid out over $800 million worth of rewards to its members. In addition to getting free gift cards when you answer online surveys, the site also offers coupons and cash back shopping.

3. MyPoints

MyPoints is another great option for those who want to make money by taking paid online surveys. Like the other sites, MyPoints also pays users in points, which can then be converted into e-gift cards or PayPal payments. MyPoints offers coupons and deals on a wide variety of products. You can earn points by trying out new products or signing up for trial services from hundreds of brands. The site also offers cash back rewards when you shop through its site.

These three sites are just several among dozens of different sites giving free rewards away. Other popular sites are LifePoints, InboxDollars, Toluna Influencers, and Opinion Outpost. Taking paid surveys online is an easy way to make money from home with little effort required on your part. You won’t become rich overnight, but if you have a few moments to spare, it could be a great way to add to your savings account or investments. By signing up with survey sites like SurveyJunkie, Swagbucks and MyPoints, you’ll be able to start earning rewards such as gift cards or PayPal payments with just a few clicks of your mouse.

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Even with a lower credit score, you have options. 

Your credit score is a major cornerstone of your personal finances, and sometimes it feels as if that three-digit number plays a role in just about every money move you want to make. Getting a mortgage loan is no exception, and if your credit has seen better days, you may think you’ll never be able to qualify for one.

While it’s always a good move to take the time to improve your credit (such as by paying down high-interest debt and going through your credit report to find errors you can have removed) before trying to buy a home, you may not have the time to do so. If your housing situation has deteriorated or you need to move quickly in the homeownership process, keep reading to learn how you might be able to get approved for a mortgage loan, even without a good credit score.

1. Consider an FHA (or other government-backed) loan

Mortgage loans backed by the Federal Housing Administration (FHA) are how many Americans get on the property ladder. FHA loans are easier to qualify for based on having a smaller down payment requirement and a lower required credit score. They’re offered by many regular mortgage lenders, with the understanding that the loan is backed by the FHA, meaning that if you default on it, the federal government will repay the lender (you will not get off scot-free in this situation, but the risk of lending to you is mitigated by this guarantee).

If you have a credit score of at least 580, you’ll be able to make a down payment of just 3.5% (if your credit score is lower than this but at least 500, you’ll need a 10% down payment). Other government-backed loans, such as those offered by the VA or USDA, may also have less stringent credit requirements than conventional mortgages, but requirements vary based on lender.

2. Make a larger down payment

If your credit isn’t great but you can afford to make a healthy down payment on a home, you may find it easier to get approved by a lender. That’s because the more money you can put down, the less of a risk the lender will be taking by extending you a loan, as you’ll have more of your own money to lose if you stop making your mortgage payments. Making a larger down payment will also save you money over the life of the loan, as you may be able to pay less in mortgage insurance (or avoid it altogether, if you can put at least 20% of home’s purchase price down).

3. Get a cosigner

If you’re unable to get approved for a mortgage loan based on the strength of your credit, you may have more luck if someone with good credit will cosign a loan with you. This person won’t appear on the title or have any ownership of the home whatsoever, but they’re agreeing to pay the lender back if you can’t. It’s a big ask, and you may not have anyone in your life willing to do this (it’s a huge risk for them). But if you do, you might consider it.

4. Shop around

In getting a mortgage loan, as in all financial dealings, you have options, so it pays to take advantage of them. There’s a wide range of mortgage lenders to choose from, from big national banks all the way down to your friendly neighborhood credit union. Call around, have various lenders run your numbers, and see if one of them offers you a better rate than the others, in spite of not having great credit.

If you’re ready to buy a home of your very own but are afraid your credit score might keep you from achieving it, fear not. Look into government-backed mortgages, save extra for a down payment, and don’t talk to multiple lenders to find the best deal for you.

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It’s better than keeping cash under your mattress. 

Banking is big business in the United States. A 2022 report from the Board of Governors of the Federal Reserve System found that 81% of Americans are fully banked, meaning they have a bank account and didn’t use any alternative financial services asked about (such as payday loans or check cashing services). Ultimately, banks offer valuable services, and keeping your money in one is convenient and makes it easier to pay for your expenses.

In addition to the convenience of being able to write a check to pay a bill, or save money for future expenses, when you have a bank account, you also gain a safe place to keep that money. For the following reasons, it’s a far better idea to keep your money in the bank rather than as cash in your home.

1. Your deposits are insured

One of the hallmarks of the Great Depression in the United States was bank failures, as people in dire financial straits ran on banks to withdraw all their money, and those banks were unable to fill all account holders’ requests. As a response to this, President Franklin D. Roosevelt signed the Banking Act on June 16, 1933, which established the Federal Deposit Insurance Corporation. It went into effect Jan. 1, 1934.

The FDIC is an independent federal government agency that provides protection for up to $250,000 kept in each eligible account should your bank fail. Eligible accounts include savings accounts, checking accounts, money market accounts, and certificates of deposit (CDs). If you keep your money with a credit union rather than a bank, your deposits are insured by the National Credit Union Administration (NCUA) rather than the FDIC.

2. Your money is protected from theft and disasters

Sometimes the threat to your money is closer to home. While we like to think that something bad could never happen to us, the fact is that you could be impacted by a natural disaster like a hurricane or wildfire. While you may have time to evacuate with your important possessions, it isn’t guaranteed. You could also fall victim to a house fire or even a robbery, neither of which can be predicted with any surety. On the worst day of your life, and facing property destruction and many calls to your insurance agent, your bank is doing its part to keep your money safe. If you had kept your money under your mattress instead, you may not be so lucky.

3. Your bank monitors your account and offers ways to secure it

Finally, your bank has your back by keeping track of your account’s finer details and giving you the opportunity to add more security settings. You can opt for paperless statements, meaning that potential scammers and thieves won’t find your financial data in your mailbox. You can also lock your debit card or report it lost or stolen via your bank’s website or mobile app. And if you use your debit card for an unusual purchase or in a different place, your bank may well take action to prevent you from being scammed.

For example, I once forgot to alert my bank that I’d be traveling, and ended up needing to call so my account would be unfrozen (I was attempting to use my debit card to buy groceries during a vacation visit to a beach town). While I was annoyed in the moment, I was happy later that my bank was keeping my funds safe in this way.

Your trusty bank account comes with some excellent protections for your money that you just won’t get from keeping all your cash at home. And best of all, if your current bank isn’t paying you enough interest on your savings, or is charging you nonsense fees, you can switch banks at any time to find the right fit for you and your money.

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Should you follow this guideline to calculate your housing costs? 

When it comes to financial advice, there are few people as well-known and respected in the money management world as Dave Ramsey. Millions of people have read his books or listened to his radio show and have seen their personal finances improve after taking his advice. One of the most popular pieces of advice he gives is to limit your monthly mortgage payment to no more than 25% of your take-home pay. Here’s why he recommends this amount specifically.

Limit your monthly mortgage payments

Dave Ramsey’s rule for mortgage payments is based on the idea that you need to allocate enough funds each month to cover all your other expenses while still making sure you can make your mortgage payment on time each month. He suggests that no more than 25% of your monthly take-home pay should go toward a housing payment. It is important to understand that your take-home pay is what’s left over after you pay your taxes, benefits, any contributions to your 401(k), etc.

So if you make $50,000, that means you can afford to pay a monthly mortgage of $1,041, right? Not exactly. If you make $50,000 and live in California, then your take-home pay is $39,758 after you pay your state and federal taxes. This amounts to $3,313 per month. Using Ramsey’s rule of thumb, you can allocate about $830 a month toward your mortgage. The total cost of home ownership also includes homeowners insurance, property taxes, any homeowners association fees, and if you make less than a 20% down payment, private mortgage insurance (PMI). So the actual amount dedicated to the price of a home is much less.

Why does Ramsey suggest 25%?

Capping the total cost of homeownership to 25% of your income ensures you’ll have enough money available each month to cover all your expenses without having to dip into your emergency fund or put yourself in debt due to late payments. According to Ramsey, this guideline will determine how much house you can afford without stretching your budget.

In addition, by limiting your mortgage payment amount, it allows you the opportunity to save for long-term financial goals, such as retirement. Having enough saved for retirement is important because it ensures you won’t have to rely solely on Social Security or other government programs during your golden years.

There are many other rules for determining housing costs. Some say to limit your monthly mortgage payment to 28% of your gross income, while others use the 35%/45% model. This rule states you should limit your mortgage payment to 35% of your pre-tax income or 45% of your after-tax income.

These rules allow for a higher amount to be used for your mortgage, but there is less money left that you can put toward food, clothing, savings, and other essential bills. Ramsey’s 25% rule is more conservative and may be best if you have other debt such as credit card debt or loans you need to pay off. You may have less money to spend on a home, but your finances won’t be overstretched, especially if something unexpected occurs.

Dave Ramsey’s rule for mortgage payments is sound advice that should be taken seriously by anyone looking to purchase a home or refinance their current loan. By following this rule, you’ll be able to ensure that all necessary bills are paid each month and also leave money for emergency savings and retirement planning. Not only will this give you peace of mind, but also provide financial stability in case anything unexpected happens in your life.

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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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It’s one small step for you, and one giant leap for your young adult finances. 

Like some young Americans, I had a halfway step between living with my parents and living in an apartment of my own: living in college dorm rooms as an undergraduate student. As a result, it wasn’t until I was ready to start graduate school in my early 20s that I finally got my first-ever apartment and signed that first lease. It was an exciting but scary time, and while I have had my share of financial missteps in the past, thankfully I managed to avoid the following renting mistakes that first time. Make sure you do, too.

1. Budgeting only for rent

If you’re a new renter, it’s possible you’ve never had a full slate of household bills to be responsible for before, so it’s vital you understand what costs you’ll be paying. In some housing situations (such as certain apartment complexes), your monthly rent payment may include some or all of your utilities, which could make things very easy for you. I wouldn’t count on this being the case, however.

Even if your rent payment includes, say, your water bill, it’s likely you’ll have to cover your electricity, internet, and other household expenses. So before you decide if you can afford rent on that beautiful sunlit apartment, ensure your budget can support all the bills it will entail.

2. Not reading/understanding your lease

Ideally, you’ll be given a copy of a lease to review before signing on the dotted line and taking possession of your new rental. If it’s your first time as a renter, you may find unfamiliar terminology in that lease, or be unsure of what your landlord’s requirements of you will be. For example, you may not be allowed to have someone else move in with you without having them added to the lease officially.

If you’re confused by anything, now is your chance to ask questions of the landlord or property management company you’re dealing with. If they’re unwilling to answer your questions, or are rushing you to sign without reading, or if anything feels off, don’t sign that lease. Find another place to live, as you don’t want to be stuck in a lease agreement that’s unfair or shady in any way.

3. Agreeing to rent a home without seeing it first

Full disclosure, I have had to do this twice in my life as a renter (though thankfully not for my first several leases). My old career had me moving states and cities frequently for new jobs, and sometimes a lack of time and money prevented me from being able to see a place for myself before deciding to live there.

In one instance, this worked out fine. In the other, I ended up having to find legal help to break an (invalid) lease with a dishonest property management company and find a new place to live just 10 weeks after moving to the state I currently call home. It was a stressful situation, and I don’t want you to go through that. Make every effort to see a rental yourself and meet the people you’ll be dealing with before agreeing to move in.

4. Not getting renters insurance

Your landlord will have homeowners insurance on the property you rent, but that policy won’t cover you or your belongings in the event of a catastrophe like a house fire or flood. Do yourself a massive favor and get your own renters insurance policy. It won’t cost very much, and you can likely get a deal by bundling it with your auto insurance policy, if you have one.

5. Waiting until the last minute to start looking

The last mistake to avoid when you’re ready to find a rental is waiting too long to start your search. Thankfully, I’ve not had the experience of being unable to find a place to live when I needed one, but depending on where you call home, the rental market in your area might be extremely competitive.

You might also have specific requirements for a rental and will need more time to vet multiple possibilities. Either way, build yourself a nice time cushion if you can. If you know that come May 1, you need to be in a new home, start looking at the beginning of March. This way, you won’t have to rush and you can take some of the stress out of the process.

It’s a major step to get your first rental and truly be on your own for the first time. If you can avoid the above mistakes, you’re sure to find success in your quest for a new home.

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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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Goodbye, cubicles. Hello, potential for distractions. 

As I write this, I’m sharing my desk chair with my cranky elderly cat. We’re listening to music, being warmed by a space heater, and I’m wearing slippers. It’s freezing outside, but I haven’t had to step foot out of my apartment to go to work. What’s my secret? I’m a fully remote worker.

It wasn’t always this way, though — aside from a few months in 2020, I always worked in person before I changed careers. One of the few positive developments we’ve seen in the wake of COVID-19 is the increasing acceptability of remote work. In fact, the U.S. Census Bureau found that the number of Americans primarily working from home tripled between 2019 and 2021, going from 9 million to 27.6 million.

Despite increasing desperation from some employers who are determined to get staff back into fluorescent-lit cubicles and neckties, many Americans like remote work. It’s a time-saver and can make achieving work-life balance easier.

If you’re ready to find a remote job, it’s important to realize that it’s not all pet snuggles and getting to use your own bathroom during the work day. You could also fall prey to the following mistakes in the course of working from home, even as you pad your checking account.

1. Not communicating effectively

Unless your job is truly self-sufficient and you have no need to communicate with anyone else ever, being a poor communicator can negatively impact your remote working life. While you may not be chatting to colleagues or customers in person, you’ll likely be expected to keep your manager abreast of your progress on assignments by way of email or instant messaging software.

It’s important to keep on top of any digital communications coming in and respond to them promptly. If you tend to submerge yourself in work, try setting aside a few minutes once per hour to check and reply to messages.

2. Getting distracted easily

We’ve all had one of those days where you just can’t focus on the task at hand, and working from home has the ability to magnify this feeling. You might hear the siren song of that basket of laundry that needs folding, or a pet who absolutely cannot be deterred from climbing in your lap. But if you’re expected to be actively engaged in your work during certain hours of the day, do your best to stay focused.

One technique that can help is building set break times into your day (say, 15 minutes each in the morning and the afternoon), so you can get a quick breather away from your desk. Having a dedicated work space (such as a home office) helps immensely as well, especially if you can close the door on all those potential distractions.

3. Working too much

If you have workaholic tendencies, being able to do your job from anywhere at any time can definitely exacerbate them. While on its face, this may not seem like a bad thing (especially if your role pays hourly or per task rather than a set salary), if you overwork, you could find yourself facing burnout.

This is another instance in which having a dedicated work space can help. At the end of your work day, get up, leave your desk, and pretend you’re actually commuting home from the office rather than just walking to a different part of your home. Remember to take actual time off, too. Just because you work from home doesn’t mean you always have to be on the clock.

4. Relying on old technology

If you’re a W-2 employee, you’re likely dependent on whatever equipment your employer issues you, for better or for worse (I had to use some seriously ancient computers during my years working for nonprofits). But if you’re a freelancer or run your own business, you can purchase whatever equipment you want to help your productivity.

While it may be tempting to work on the same old laptop you’ve used for years to save money, consider upgrading your technology to find more success with remote work. A newer machine with a faster processor and better webcam will make it easier to work and stay in touch with your colleagues via video calls. Try buying a refurbished computer to get the most bang for your buck. And remember, you can write off work expenses on your freelance or small business taxes.

If you’re ready to embrace that remote work lifestyle, take care to ensure that you can maintain communication with your colleagues, avoid distractions and overworking, and source equipment that will help you do your job better. If you can overcome these challenges, you may just find that working remotely is great for your mental health, career, and personal finances.

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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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