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Experts estimate that there are around 2.5 trillion PDF files in the world today.
The file format isn’t so popular without good reason. Storing information in PDF format has a huge number of advantages, especially for businesses.
Read on as we look at the key advantages of the PDF file format.
February was a great month for us. We are getting situated with my husband’s new job as well as focusing on improving our health – physically, mentally, and financially. We made progress in all of those areas last month, which feels SO great. Here’s our February recap…
One of the best things about the debt freedom journey is watching how paying off debt will help you improve other areas of your life too. Our credit scores have gone up, especially within the past two months. At the beginning of the year, both of us stood in the “poor” area of the credit gauge and we’ve now graduated to “fair.”
There is still a lot of progress to be had, but overall, we are super proud of this progress. Not to mention, being able to improve our credit scores can help us land a consolidation loan (which is something we’ve been discussing, especially for my pesky IRS debt).
As always, at the end of the month, I liked to give you all an update on the numbers. In January, our debt counts looked something like this…
Overall, we put about $1,600 towards debt payments in February. At the end of the month, here are our updated numbers (with interest accounted for)…
One of the biggest things we are looking forward to in March (outside of our first wedding anniversary) is paying off yet another account. This account, once it is paid, will free up an extra $106 per month. While that isn’t a ton of money, it will allow us to pay off our credit card fairly quickly. Having our line of credit open will help us further improve our credit scores as well.
Then we will switch our focus to what we have in collections and get that paid off. Because those items have the highest impact on our credit, we’d like to focus on those. In about two years, our goal is to be in a place financially where we may be able to start looking at homes to buy.
Once collections are paid off, we will refocus on paying his tools off, student loans, and then our car loan. By July, we hope to double our monthly payments towards debts ($3,200 per month). Doing that will help us pay it off even more quickly.
Readers, where are you in your debt journey? Let’s chat!
Homeownership in 2020 is a monumental financial decision. Years ago, buying a home wasn’t as difficult because debt wasn’t as big of an issue as it is today. Most younger generations have to battle student loans, car loans, and credit card debt on a large scale. For example, the average graduate of a four year university in the United States owes on average between $27,000 and $33,000 in student loans. With this many people struggling with debt as it is, homeownership might seem like a fantasy instead of a reality.
However, this isn’t the case. While the road from “debt-free to homeowner” might be a rocky one, it is certainly possible. Here are some tips to get you there.
Target High Interest Debt First
The higher the interest on the loans you owe is, the more you’ll have paid cumulatively once the loan is paid off. Additionally, high interest loans also tend to come with higher monthly payments. There are a few ways you can tackle high interest debt. First, have you considered refinancing? Refinancing is when a bank or lender essentially pays off your loan and provides you with a new one at a lower interest rate. This can both lower your monthly payment and help you pay off the loan faster.
Another way to target high interest debt is to pay as much towards it whenever you have the opportunity to. Put tax returns, bonuses, and gifts towards that loan or debt. It might not feel like it’s making a difference at first, but down the road, it will drastically affect how much money you would have paid in interest.
Create a Savings Plan
When creating a savings plan for purchasing a home, consider both how much of a house you can afford and how long it will take you to save up for a down payment. The amount that you can afford will depend on how much money you’re making/will be making, how much you owe in loan payments and bills each money, and how much you’re able to save for a down payment. Use these factors to calculate when you’ll be able to afford a house. After all of your bills and payments are made for the month, put a portion of your earnings into a savings account and the other portion towards debt. While most financially savvy people will suggest putting the larger portion towards debt, we suggest doing what is right for your financial goal.
Budget, budget, budget
If you want to buy a house down the road, now is the time to put in the work. Pay very close attention to your spending habits by creating a monthly budget. Track your bills, monthly payments, saving, and spending either with a budgeting software, a spreadsheet, or even a pen and paper. Once all is said and done, go back and find ways to cut spending. This can include getting a better rate on car insurance, lowering your internet bill, cutting out buying coffee or lunches, or really anything that you don’t need to spend money on. You’ll be saving up for your dream home before you know it!
Our Debt Free Family wants to provide those both young and old with real life advice on how to conquer debt and live a financially stable life. We hope you enjoyed this post and invite you to visit regularly for more posts and advice.
Are you looking to buy a home in Ontario? Whether you’re looking to buy in Toronto, Hamilton or Kitchener, it’s a good idea to work with a real estate agent. By working with a local real estate agent who knows the real estate market well, you’re more likely to find your dream home sooner and pay a reasonable price for it.
When working with a real estate agent, you may be asked to sign a buyer agency agreement. The buyer agency agreement is a legal document that outlines the relationship with the brokerage. (In Ontario, it’s the BRA , for “buyer representation agreement,” which may be a funny acronym, but don’t let it fool you—it’s an important legal document.) It includes information such as your desired property type, location, commission and the amount of time of the agreement. It also places fiduciary duty on the brokerage to promote and protect your best interests.
Being an agent can be tough. When your agent helps you look for a home, they won’t get paid unless you buy a home with them. The BRA at least guarantees you won’t go behind your agent’s back and use another agent.
Should you sign a buyer agency agreement? In my experience, it’s usually the newer agents who ask you to sign one. When you do, you’re committed to working exclusively with the real estate brokerage for the length of the agreement. If your agent is a rock star, it shouldn’t be a problem. But what if they’re not a good fit? Unless they let you end the agreement early, you’re stuck working with the same brokerage until the agreement expires. If you buy a home with an agent at another brokerage, your first agent could sue both the second agent and you for breaching the agreement.
When you’re asked to sign a buyer agency agreement, think of yourself like the franchise player on an NBA team. Would Kyle Lowry or LeBron James sign the first contract offer put in front of them? I don’t think so. Take time to think it over. If you do decide to sign an agreement, give your agent a trial run. Start with 30 days and see how it goes (signing any longer than three months is nuts!). You can extend it once your agent proves they’re a rock star. Also, make sure the agreement is limited to a specific geographic area and property type (e.g., houses, townhouses, or condos).
Check with the regulator in the jurisdiction you’re buying in for the rules on buyer agency.
Brought to you by Sean Cooper
Recently, it seems more people are boycotting Valentine’s Day. In fact, businesses have begun to capitalize on it by offering “Galentine’s Day” events or “anti-Valentine’s” activities. Even though it appears many of the people in our generation aren’t a huge fan of the holiday, my husband and I are. This year, we are celebrating our fourth Valentine’s Day together and our first Valentine’s married. Here’s how we are celebrating…
So, first, we splurged on one another a bit. Altogether, we spent $300 on each other for the holiday, but we don’t get to do that very often and we’ve both been hustling to be able to afford it. On Valentine’s, I’ll be headed to the spa for a couple of hours, thanks to my hubby. His gift from me was his first flying lesson (yay).
On the 14th, unlike many other couples, we won’t be headed out for a fancy dinner or anything extravagant. Instead, we will be hanging out at home. I’m going to make one of Drew’s favorite meals and we are going to watch movies (see my list of frugal date ideas here). I also have his favorite dessert planned. Otherwise, it’ll be a nice, quiet night at home.
I know some of you are probably reading this like, “Amanda, $300 on Valentine’s Day, really?” It is definitely a splurge for us both, but something we haven’t gotten to do recently with financial struggles we’ve faced. Also, as I mentioned, we both took on a little side work to be able to afford a little splurge for the holiday.
This is because we both believe celebrating our relationship is important to maintain it. Also, being able to celebrate each other and milestones in our relationship helps us look at the big picture. Instead of focusing on whatever else is going on in our lives, we stop and take a second to just enjoy one another and celebrating us.
So, even if you don’t have much of a budget for Valentine’s (or no budget at all), be sure you take a moment to really appreciate and celebrate those you love. Doing so can strengthen your relationships and help you remember what’s important to you.
Readers, what are your plans for the romantic holiday?
Taxes are a part and parcel of our employed lives, and we must pay them one way or the other. If you delay or fail to pay your taxes or file your tax returns on time, the Internal Revenue Service (IRS) will levy penalties on you. This article will help you understand the types of penalties, exemptions, and tips for quashing your tax debt for good.
Part of being on a debt-free journey means finding ways to cut costs and spend less. With Valentine’s Day coming up, my hubby and I are brainstorming ways to celebrate. Here are a few frugal date ideas we’ve come up with.
We both have trouble not spending money on each other. When we have extra cash, we love buying one another gifts and treating each other to something special. However, this can cause serious budgeting issues. Because of this, we’ve had to get a little creative to save money.
Something my husband and I love to do is make pizza at home for date night. It only takes about 25 minutes and keeps you from spending too much eating out or ordering in. Plus, we have a great recipe that keeps costs low too.
For the dough:
Mix these together to form pizza dough (it makes a single-serve pizza). Roll the dough out on a floured pan and bake at 400 for 10 minutes. Take the baked dough out of the oven, add sauce and your desired toppings. Put the pizza back in for an additional 15 minutes.
Because we are kids at heart, we still enjoy a good pillow fort. The best thing about that is it literally costs nothing. We also have Amazon Prime and other subscriptions that don’t cost us anything extra. So, we can pitch our pillow fort, curl up and watch a new movie or binge a TV series. Super cheap and so much fun!
Both my husband and I love to play cards. We also own several video games we can play together. Find a game you both enjoy, buy it (and some snacks) and just play around for the evening. If you’re competitive with each other, like we are, you can even hold small tournaments. It can be great fun.
I love going for a good hike or a nice walk. Grab your significant other and head outside. Walk around your neighborhood, drive to the park, or find a nearby trail to hike. It is a great way to spend time together and chat.
Ice cream is personally a favorite treat of mine. If you live close to a creamery, set out on a walk for some ice cream. You can also hop in the car and grab a sundae to split. Either way, ice cream is a delicious and frugal date.
This is one of my favorite frugal date ideas and something we do on a regular basis. Normally, we grab food at a drive-thru (usually super cheap) and drive somewhere with a great view. We eat together in the car, listen to a podcast or show, talk, and enjoy our surroundings.
You all know we have a pup who loves going on walks and being social with other dogs. If you’re a dog lover too, consider heading to the dog park for a date. You and your partner can enjoy the company of all the dogs, get your pet some exercise, and meet other people. It is a fun date that you can do completely for free.
Nerf guns are fairly cheap and something you can keep around. Grab a pair of guns (and ammo) and stage a war in your home or outside. This is unbelievably fun and relatively cheap as far as dates go.
Chances are, there is something free going on nearby. Look for festivals, fairs, museums, and free events to visit. You and your partner will be able to walk around the event, have fun, and spend little-to-no money.
Massage oil can be purchased fairly cheaply. All you need is that and a couple of candles to set the mood. Treating one another to massages can be romantic and give you a chance to talk to your spouse or significant other about their day.
Readers, do you have any fun frugal date ideas you enjoy on a regular basis? Share them with me in the comments.
The emergence of advanced computer applications has eased the automation of forex trading in Hong Kong and other parts of the world. As a result, the use of trading software is fast becoming popular for various activities such as day trading. Many traders, however, are yet to find out the amount of profit they can gain from using trading platforms to execute day trading.
Investing while you still have a debt to pay off is a controversial topic amongst debt-free communities. However, many people still find it difficult to climb out of the debt holes they’ve dug. Many have to search for side jobs, part-time gigs, and other ways to pay off what they owe. In some cases, individuals have started to invest to pay off debt. Is this a good way to reach financial freedom?
If you follow the teachings of Dave Ramsey or any other debt-freedom-focused financial advice, you know that most don’t recommend you invest at all until all your debts have been paid. This is typically because the quicker you pay off your debt, the sooner you’ll be able to put all of your extra resources into investments, retirement planning, and other financial goals.
In fact, paying off your debts early may be one of the best investments you can make. Paying off your mortgage early, for instance, has a guaranteed return on investment. You’ll save money on interest. However, the same guaranteed return isn’t there when you are investing. In some cases, you may even lose money that you couldn’t really afford to (especially if you are holding debt).
I frequent the debt-free subreddit looking for good advice and interesting topics. One Reddit user took to the forum to ask others about their thoughts on using investments to pay off debt. Essentially, they were wondering if they could invest to pay off debt, meaning they wanted to make minimum payments on their debts while using any other money to invest in the stock market. Then, eventually, they’d cash out and pay their debts in full.
Most, if not all, Redditors advised against doing this. Here’s why…
So, all in all, it isn’t advisable to invest to pay off debt. Instead, use all of the “extra” money you have to snowball your debts. Once you’re finally debt-free, then look into investing your money.
In my last update, we celebrated having paid off $20,000 or so in debt within one year. However, there have been a lot of changes with our cashflow in the house that has hindered the speed of that continuing. Mostly, we are down to one (main) salary.
My husband is breaking off on his own a bit and has been considering starting his own business. Because of this, cash flow on his end hasn’t been consistent. We’ve lived on one salary multiple times in the past, but every time it is different. Here’s how we’ve learned to live on one salary (and benefits of doing so).
Living on one income isn’t as hard as it sounds. First, you have to come up with a budget that only requires a single budget. For us, it is my income because it is more stable. Your family may want to choose the larger (or smaller) income, depending on your financial goals.
If you are over budget when you tally up your expenses, see where you can cut costs. Do you really need Hulu, Amazon, and Netflix? Or, if you’re looking for a bigger decrease, consider downsizing to a smaller home to better fit your new one-income budget. Others may find it beneficial to move to a more pedestrian-friendly area to cut down to one (or no) car payment or walk more places. If you’re comfortable doing so, you may even consider taking in a roommate or renter.
Consider giving up your indulgent behaviors like going out to eat, junk food, and other items as well. You certainly don’t need to eat out every Friday and spend tons of money on junk foods. This will help cut down the cost of food in your budget as well.
You’re probably thinking, why would anyone willing to live on a single income? It can be difficult and, at times, hinders you from being able to do everything you want to. It can also help you achieve some of your financial goals and feel more secure with your finances as a result.
Not to mention, if you live on one salary, you will always be ready if something happens to one of your jobs. You’ll have some savings, and you will be able to continue your current lifestyle until your spouse finds a new job (or starts earning more).
So, while we are adjusting to living on a single income again, our debt freedom progress has been slow. However, today we paid the final $175 payment to completely pay off a credit card. That will free up an additional $175 for us each month to redirect towards other debts and savings.
In the next few months, we will be paying off other accounts and see our debt freedom progress continue. I will be in a wedding in October, which will be a small cost (around $200 total). We have prepared for that cost though. Both of us are planning to spend the holidays at home as well, to cut down on travel costs.
Readers, have you lived on one income? Tell me about your experience in the comments!