Money-Saving Tips for the Holidays

With the holiday season just around the corner, you may find some of the following money-saving tips to be helpful!

1. Automate Your Savings (pay yourself first):

Set up those automatic transfers from your checking to savings each month. Watch your money grow without lifting a finger, especially handy for goals like building an emergency fund or saving up for that dream vacation.

2. Count Your Change:

Throw your spare change into a jar each night. Once you’ve got a stash, deposit it into your savings. Using cash instead of cards helps you keep an eye on spending, and this slow-and-steady approach builds up savings over time.

 3. Grocery Shopping Game Plan:

Before hitting the grocery store, check your pantry, make a list, and look for coupons or loyalty programs. Cash-back credit cards and store apps can add extra savings to your cart.

4. Trim Down Restaurant Bills:

Cut back on eating out to save big. When you do indulge, use credit cards with restaurant rewards, share entrees, or skip the extras to keep your budget intact.

 5. Entertainment on a Budget:

Take advantage of free museum days, local events, and community concerts. Don’t forget to explore discounts for different groups. Save big while still having a good time.

6. Smart Shopping for Big Buys:

Time major purchases for sales, track prices using online tools, and make sure that deal is really a deal. Shop smart to save on appliances, furniture, and more.

 7. Online Shopping Hurdles:

Make it a bit harder to online shop by not saving billing info. More steps mean fewer impulse buys and more money saved (especially if your kids have your credit card saved on Amazon!).

8. 30-Day Rule for Purchases:

Avoid impulse buys by waiting 30 days before making a purchase. Put items in your cart and let them marinate. You might even score a discount if you’re patient.

 9. Thoughtful Gifting:

Save on gifts by getting creative. DIY gifts or experiences show you care without breaking the bank.

10. Cut Car Costs:

Refinance your auto loan (if your credit score improves) , shop around for insurance, and make small changes like removing heavy items from your car. Little tweaks can lead to big savings.

 11. Trim Gas Usage:

Use gas apps to save on fuel costs. While you can’t control gas prices, you can control how efficiently you use your fuel. Reward credit cards may also save you up to 5% at the pump.

12. Bundle and Cut Cable Costs:

Downsize your cable package or bundle cable and internet to save. My family just cancelled Direct TV and started with Hulu. That saved us about $70 per month.

13. Cell Phone Savings:

Change your plan, sign up for autopay, and go paperless to save on your cell phone bill. Don’t forget to shop around for the best deal.

14. Cut Electric Bills:

Small changes, like adjusting your thermostat and using smart power strips, can add up to significant savings on your electricity bill. One other option may be adding solar to your home. Make sure you get a few quotes and understand the terms of your agreement and the time to recoup the investment as well as the tax benefit.

15. Student Loan Strategies:

Enroll in income-driven repayment, refinance, or make extra payments to manage student loan debt. Explore options that fit your financial goals.

 16. Subscription Audit:

Review your subscriptions regularly to eliminate unused ones. Be cautious with free trials to avoid unexpected charges.

17. Mortgage Refinancing:

Refinance your mortgage to pay off high-interest debt and save on monthly payments.

 18. Set Savings Goals:

Define specific, realistic financial goals and use a savings calculator to plan how much to save each month.

19. Track Spending:

Monitor your monthly cash flow with budget apps. It helps you stay on track and see progress toward your savings goals.

 20. Pay Off High-Interest Debt:

Tackle high-interest debt with strategies like the snowball or avalanche method. Redirect the money saved towards your savings.

 21. High-Yield Savings:

Put your savings in a high-yield online account for maximum returns. Rates today are they have been in many years.

22. 50/30/20 Budget:

Manage your money wisely with a budget. Allocate 50% to needs, 30% to wants, and 20% to savings.

23. Thrift Store Treasures:

Shop at consignment or thrift stores for affordable finds. Online platforms like ThredUp offer both buying and selling options. Our teenagers love to shop at Goodwill and have been able to find some great things!

 24. Freebie Initiatives:

Join groups like The Freecycle Network for free items. Participate in community swap events for a sustainable way to get what you need.

25. Car Sharing or Carpooling Savings:

Consider nontraditional car-sharing services for affordable rental options. We have started carpooling with others in our neighborhood for drop off and pick ups, saving time and money! Plus you get to know your neighbors as well.

 26. Smart Shopping for Supplies:

Stock up on household supplies when they’re on sale or use subscription services to save on regular shipments.

27. Community Events for Fun:

Find low-cost or free events in your community for budget-friendly entertainment. Pack snacks for outdoor events to minimize spending.

*Thank you, to Jeff Sipes with Blue Water Credit for this blog content.

Valuable Information About Proposition 19

If you are a homeowner in California, please take a look at this brief video to see if this information may pertain to you.

As always, I am here to answer any questions you may have regarding the home buying process. Please use the contact information below if I can be of help. I look forward to hearing from you soon!

INVEST NOW. SAVE LATER.

Twelve Important Terms a First-time Homebuyer Should Know

Buying a home is one of the biggest and important purchases you will make. The homebuying process from making an offer on a home to having the keys in your hands can sometimes be stressful and overwhelming.

Familiarizing yourself with the terms below can give you a better understanding of what to expect throughout the home buying process and may help eliminate the confusion and stress.

Mortgage

A mortgage is a loan for residential real estate with 1 to 4 units the borrowers apply for and repay monthly over a set number of years.

Pre-approval

Having a pre-approval completed by your lender will provide leverage and create a competitive advantage when you submit an offer on a home you want to purchase.

Income

Income documented by the last two years of W-2s, pay stubs, and if you are self-employed your last two federal tax returns.

Credit score

Having a credit score over 700 makes it easier to get approved. A lower score may also result in a higher interest rate.

Debt-to-income ratio

(DTI) Calculation of total gross monthly debts or payments divided by total gross monthly income.

Earnest Money

Earnest Money Deposit (EMD) is money you put in escrow when the seller accepts your offer/contract. The EMD shows good faith, and you intend to obtain a mortgage to buy the property. If you have signed off on all contingencies and decide to cancel the contract, the seller has the right to keep your deposit.

Closing Costs

Closing costs are fees paid at the close of a real estate transaction. Closing costs are 1% to 2% of the purchase price, depending on which state you live in and how your offer is written and accepted.

Private Mortgage Insurance (PMI)

If your down payment is less than 20% on a Conventional or FHA loan of the purchase price, you will have Private Mortgage Insurance.

Down payment

The amount of money paid upfront in escrow when the loan closes. In general, the down payment is 3% to 20% of the sales price or value of the property, which ever amount is less.

Budget

Your mortgage should not be more than 36% of your gross income each month. Total debt including your PITI (Principle, Interest, Taxes, and Insurance) in most cases should not be more than 45% of your gross income.

Escrow

A non-interested third-party that receives instructions and monies from both sides of the sale.

Closing

Closing is the final phase of the mortgage process where the loan is funded and home transfers title from the seller to the buyer.

Both your mortgage lender and your real estate agent will be able to further assist you if you have additional questions about the process of becoming a first-time homeowner.

Millennials Are Buying Older Homes

Recent research from the National Association of Realtor’s shows that more young Americans are now purchasing older homes over new build homes.

In 2011, the average age of homes sold was 18 years. Now, the average age of a previously owned home is 28 years.

Younger buyers (aged 26 to 35) are showing more interest in older homes with many purchasing “fixer-uppers”.

Here are a few reasons why:

1. Longevity

Over all, the quality of construction in older homes will surpass a newly built home. There is a reason that older homes, some being 50-100 years old are still standing and are in very good condition given their age. Homes in the past were built better, with higher-quality materials and more attention to detail. For example, supports made from solid wood from old-growth trees, walls made of plaster and lathe, and real hardwood floors were all part of the detailed craftsmanship that went into older homes.

2. Affordability

Older homes can be more affordable because they aren’t necessarily made with today’s energy-efficient materials found in new builds. In addition, older homes pre-1970 may not have been updated, which can drive down the cost. Many younger home buyers are using this to their advantage by purchasing a fixer upper and taking on upgrades themselves.

3. Established Neighborhoods

Buying a home in an established neighborhood is preferable to many buyers because it already has many of the things that most people want in their neighborhood; established schools and nearby businesses; parks and green spaces; mature shade trees and more.

4. Spacious Yards

Many buyers wish to have a large yard for their growing family, pets or to entertain family and friends. Most older homes have larger yards with established trees and shrubs as well as space for family fun, a swimming pool or a large garden.

5. More Character

Most older homes have more character than a new build. Many of these homes had great detail put into molding, flooring, tile, built-ins, banisters and other unique architectural designs. If the home has been properly maintained by previous owners you may find a gem with many or all of its original charming details.