Are you struggling with poor credit? If so, you may have been approached by companies offering credit builder loans as a payday loan alternative. With the promise of improving your credit score at a record pace, it’s time to see if they really do work, and if so, how quickly.

This post will cover all the different aspects of a credit builder loan, the pros and cons, and my opinion on the best way to repair or build your credit.

What Type Of Loan Helps Build Credit?

Loans, in general, can help you build credit if you make your payments on time. If you need to establish credit or improve your credit rating, people who have no credit may apply for unsecured loans, secure loans, or credit builder loans to help them create their credit.

Credit is commonly associated with a person’s credit score, which attempts to define a person’s creditworthiness based on their past ability to repay loans promptly.

Secured Credit Cards

Individuals with no credit rating may find it challenging to initially get a loan or a credit card that does not require a cosigner. Adults can get a secured credit card, which will allow them to build credit based on the money they have as backup in a savings account.

With a secured credit card, after funding a savings account attached to the card, you may charge the credit card from a secured account into an unsecured loan. Essentially, you are “borrowing” your own money under the premise of building credit through a third party.

What Is A Credit Builder Program?

Credit builder programs claim to help borrowers re-establish their credit as a payday loan alternative. Many organizations such as banks, nonprofit organizations, and federal credit unions offer these programs to consumers.

How A Credit Builder Loan Works

A credit builder loan is a loan that allows an individual to establish or re-establish their credit. Individuals who may have experienced some financial setback can use a credit builder loan to improve their credit rating if they’re willing to pay interest and fees. People who do not have a credit history may also use a credit builder loan to establish their positive payment history.

The loans individuals can take out to begin a credit builder program include small loans of up to $1,000. These loans are usually required to be repaid within two years.

Secured Loans

Credit builder loans come in many different shapes and sizes, but the most common option is a secured loan, which is backed by collateral. The collateral in a bank credit builder program would consist of having a loan that’s backed by a security deposit held in a savings account on behalf of the individual.

A credit builder loan holds the amount of money an individual borrows in an account while the borrower repays the loan. After the loan is paid in full, a borrower receives their money back in cash. In essence, you are borrowing your own money to build credit.

Unsecured Loans

Credit-builder programs also utilize unsecured loans. This type of loan consists of a person paying back the money they borrow each month at a specific interest rate. An unsecured credit builder loan is best for someone who needs to have cash flow every month and cannot wait to access savings later.

After a few months, lenders report this loan to the credit bureaus, which helps to raise credit scores.

Self (Formerly Self Lender)

Self is a program that charges fees for the service. The company charges a non-refundable $15 fee to assist people with improving or establishing a credit history.

This account is a credit-builder account that puts money aside into a certificate of deposit. After the loan is repaid, a borrower receives the funds initially placed in the certificate of deposit. Self requires the borrower to pay all the account fees before they received the balance from the CD.

How Fast Can I Build Credit?

Experian, one of the major three consumer credit reporting agencies, reported it takes up to six months for individuals to have a credit file established or significantly altered.

7 Fast Ways To Build Credit

There are several ways to “quickly” build or improve your credit. Quickly is a relative term because this is not going to happen overnight. However, some of the techniques involve the following:

1. Become an authorized user on a friend or family member’s account

As you can imagine, there are many ways this plan can end badly, including financial ruin for all account holders, as well as personal relationship issues. This is not the best way to improve credit if you previously have had repayment problems.

2. Make multiple payments each month on your current credit cards

When individuals make more than one payment throughout the month on an account, this allows individuals to lower the amount of outstanding unpaid credit. Knocking down the outstanding debt you have will help your credit score improve.

As stated by the reporting agencies, credit utilization makes up 30% of an individual’s overall credit score. The more credit an individual has available, but is not using, the better their score will be as long as they remain current on payments.

3. Ask lenders to increase credit limits on credit cards

If you have a plan to get out of debt and hold yourself accountable with your debt payoff, this may be an option. If you continue to struggle with your finances, this strategy can quickly backfire.

By getting a higher credit limit, individuals can improve their credit score as long as they don’t use the additional credit provided. This shows lenders that the borrower can demonstrate discipline with their available credit.

4. Resolve any errors on your credit reports

It’s required that each credit reporting agency offer a free credit report every 12 months to borrowers. You can access your reports for free at Annual Credit Report.com. These reports will not provide you with a free credit score but rather your overall payment history.

By accessing your credit report every year, you can clean up any errors on each report as well as identify any potential identity theft issues. The three major credit bureaus are Equifax, Experian, and TransUnion, and all three credit bureaus statements should be reviewed annually.

5. Ask creditors to remove old items from credit reports

If items on the credit scores of the three credit reporting agencies are older than the required time limits, you can ask creditors to remove these items. Should an individual dispute any issues they see on their credit reports, the credit reporting agencies have 30 days to review these items and send a response to the consumer.

These are the timelines for when things should fall off your credit report automatically:

Type Of Content On Report: Time Frame To Be Removed:

Open Account: Good Standing Remain Until Account Closed

Closed Account: Good Standing 10 Years

Late / Missed Payments 7 Years

Accounts In Collection 7 Years

Chapter 7 Bankruptcy 10 Years

Chapter 13 Bankruptcy 7 Years

Credit Inquiries 2 Years

6. Don’t close credit card accounts

By maintaining open lines of credit, individuals can build good credit scores. If they do not use these credit cards but leave them open, it can help to raise their credit score. By closing an account, individuals reduce the amount of available credit they have access to, which no longer shows if they are responsible with credit.

Rather than closing out a credit card account, to maintain a high credit rating, you can make purchases periodically with the credit card and pay off the balance each month.

7. Pay loans on time

Paying bills on time will help you raise your credit score. On-time payments have more impact to build good credit than many of the other factors. Those who pay their bills on time usually qualify for the best-rated credit cards.

Making payments on time can help an individual improve their credit score at a faster rate by establishing a positive track history.

8. Add bills you are already paying to your credit report

This may include things such as rent payments and utility bills. This will improve a credit score because it is documenting things that an individual is already paying.

Services like RentTrack report rent payments to credit reporting agencies.

9. Sign up for Experian Boost.

Experian Boost is a service offered by Experian to help improve your FICO score. According to their data, the average increase using this service is 13 points. This allows a person to receive credit for their utility and phone bills they’re already paying.

How To Get A Loan With Poor Credit

If you have poor credit, the annual percentage rates you are offered are going to be much higher than average. Even a percentage point difference in an interest rate can mean the difference between tens of thousands of dollars over the life of the loan.

Loans commonly available to people with bad credit include personal loans with high-interest rates, debt consolidation loans, secured credit cards, or payday loans. These loans will have high-interest rates, which may hurt a person’s ability to afford monthly necessities such as food and shelter.

If you’re stuck with poor credit, avoid taking out a loan that you can not pay off each month. Avoid vehicle loans or other long term loans that may inhibit your ability to ever get ahead in the debt cycle.

Hard Inquiries Hurt

Each time you apply for a loan and your credit is run, a “hard inquiry” is recorded on your credit report. Unsuccessful loan attempts can take a year for those inquiries to no longer impact a credit score. However, hard inquiries remain on a credit report for two years.

Unsecured Personal Loans

Borrowers can apply for unsecured personal loans to help them establish their good credit. These loans can be up to $50,000. Individuals with imperfect credit can also apply for unsecured personal loans, which will result in a higher interest rate.

With an unsecured personal loan, the borrower receives money in a single payment and may use this same money to repay the debt. These loans have fees and a high APR, so this may be a costly way of establishing or raising a credit score.

When an individual uses a secured credit card, these loans have interest rates that are much higher than an unsecured credit card. Interest rates, depending on your credit score, may reach 25%!

One of the benefits of having a secured credit card is it is a simple way to restore credit or establish credit – if you can pay off the balance in full each month. After making payments on time, borrowers have a better chance of being approved for a traditional credit card from the lender.

Debt Consolidation

Borrowers may get a debt consolidation loan to combine their credit payments into one payment.

In some circumstances, a debt consolidation loan can help relieve the stress related to debt. At times, by consolidating debt into one payment, borrowers can gain control of their finances.

However, just because a debt consolidation may result in lower monthly payments, you should avoid taking on any new debt after the consolidation.

Because of the amount of credit card debt in the United States, debt consolidation is a common option people explore to lower their monthly payment amounts. If an individual finds they are having problems making on-time payments, then it may be essential to consider debt consolidation or generating more income.

I wrote a detailed article about debt consolidation here if you need more information. Debt consolidation is not always a wise choice because it will add more time to your debt repayment plan, and you could end up paying more in fees than you should.

Installment Loans

Installment loans are traditional loans most consumers are familiar with. These are loans such as vehicle loans, mortgages, and personal loans.

An installment loan has a specific annual percentage rate throughout the contract unless you acquire a lease with an adjustable-rate.

How Can I Get Emergency Money Fast?

There are various ways you can scrape up extra money if you’re in a bind. If you’re desperate, think outside of the box for ways to make money or lower debt. Here are a few ideas to create additional income quickly:

Work a side hustle for additional income

Rent a room in your home

Get a roommate

If you can, work extra hours at work

Have a garage sale

Ask friends or family members for help

Sell items you no longer need on Mercari

Recycle aluminum cans

Open a new bank account with a signup cash bonus

Sign-up for multiple mystery shopping companies

Work research sites that pay online within a week

Negotiate lower interest on your high-interest loans

Become a rideshare driver for Uber or Lyft

What App Gives Instant Loans?

There are various apps individuals can use to borrow money as a payday loan alternative. The following list of apps can help individuals find loans that may provide them with cash they need to pay their expenses.

MoneyLion

MoneyLion gives individuals a membership that provides similar services banks offer, with fewer headaches. Members have C Rewards benefits and checking accounts with no fees. The company also offers members investment options.

This service has a credit builder loan with a 5.9% APR. It provides individuals with $500 for the credit building loan to assist individuals who have low credit scores. Borrowers can get a payday loan of $250 before their payday. When individuals receive paychecks in advance, the service cost $29 each month if they have a PLUS account.

The service also has a free account that allows individuals to get a cash advance. If an account holder logs into the app each day, they can receive $1 added to their investment account, which makes up for the fee of the PLUS account service.

Dave

Dave allows individuals to get the money they need before payday. This payday loan alternative app is focused on helping people budget their money more efficiently. It tells you if you have bills due soon by sending you a push notification. With these notifications, users can avoid overdrawing their accounts if they are spending too much early on in the month.

A Dave account allows individuals to get an advance of $75 at 0% interest without a credit check. The app will put the borrowed money into a bank account and withdraw it on your payday.

The Cost?

There is a $1 a month fee for membership. The service may be worth it if you struggle with overdraft fees or are tempted to get a high-interest payday loan.

Rainy Day Lending

This is an app that connects borrowers to personal loan lenders. The app itself does not provide loans. If approved, you can receive money in your account as soon as the next business day.

LoanSolo

LoanSolo connects borrowers to lenders on their app, similar to Rainy Day Lending. Once approved, lenders make direct deposits into your account for the agreed-upon amount. The maximum amount an individual can receive for a personal loan is $3,000. A borrower can receive a maximum loan amount of $1,000 for a payday advance.

PockBox

PockBox is a payday loan alternative app that allows individuals to borrow a maximum loan amount of $2,500 from lenders. This service enables people to access lenders that direct deposit money in their account. These loans have annual percentage rates that are lower than what a payday loan company would charge.

Earnin

Earnin gives an individual early access to their paycheck. The borrower logs in to the app while they are at work, and the app tracks their work hours for them. After the borrower receives their “paycheck” from Earnin, the Earnin app would deduct the money that it advanced them.

Earnin makes money by “tips” given by borrowers. There is no interest paid on the loan.

Daily Pay

Daily pay is an app that works with employers. If an employee wants to receive money from their paycheck, they do this by taking money out of the balance their employer placed in their account for the hours they worked.

This allows access to money throughout the month rather than waiting to receive a paycheck at the end of the month from their employer. This can help people with unexpected expenses that arise during the month.

PayActiv

This service allows individuals to receive payday advances as well as pay bills through PayActiv. To access your money before payday, PayActiv charges a $5 fee.

FlexWage

Employees can access their paychecks in advance using FlexWage. This app gives individuals a debit card that is connected to their FlexWage account. For people who do not have a bank account, this gives them the ability to have their checks sent to FlexWage with direct deposit.

To access the FlexWage account, customers are charged $5. While not the ideal way to handle money, it’s cheaper than using a payday loan company for an advance on income.

The Pros Of A Credit Builder Loan

If utilized correctly, a credit builder loan can help people improve their credit ratings within 3 to 6 months, and for the price, they may be a reasonable payday loan alternative. The time it takes to grow a credit rating also depends on if an individual is improving their credit or if they are establishing credit from scratch.

Keep in mind, it is easier to move the needle up if you have no credit than it is to fix previous credit issues that resulted in a lower score.

A benefit of a credit builder loan is the savings account option. If you struggle with saving money, credit builder loans that require you to put up collateral can help you learn to save money. In theory, this can help you with establishing good money management habits.

When individuals make payments on time, it helps them develop good money habits that show financial responsibility. This will allow them to apply for more substantial loans in the future.

The Cons Of A Credit Builder Loan

Credit builder loans have higher interest rates than traditional loans and can contribute to a downward debt spiral. Also, most credit builder programs charge a substantial amount of money to enroll. While interest rates are higher, there are also administration fees.

How Do I Get A Credit Builder Loan?

Borrowers can find credit builder loans at small banks such as community banks. If an individual has a bank account, they can ask their bank if they offer this service or review information from other banks to determine if they have credit builder options available.

If you bank with a federal credit union, keep in mind that only about 15% of credit unions offer a credit builder program. Individuals must review the website information provided by the credit union to determine if credit unions in your area offer this service. Traditional large banks usually have these services.

Credit Builder Loans – My Opinion

This post gave you a detailed look into the credit builder loan process. However, I would not advise anyone to actually use a credit builder loan. In a similar vein to debt consolidation, there are ways for you to improve your credit score without giving away more of your hard-earned money.

To improve your credit, focus on the credit cards and other debts you currently have and do everything you can to make your loan payments on time. Staying current on your payments will improve your credit score over time and is just about as efficient as any of these credit builder programs that will charge you high-interest rates and fees to enroll.

Avoid the gimmicks and get your financial house in order right where you are. There are no quick fixes and improving your credit takes time. While I have not used it, Experian Boost seems like a decent option because it is free, and the average boost is 13 points. That’s the only program in this list I would recommend looking further into.

If you need help with debt and credit, check out my posts about how to create a monthly budget and a simple plan to pay off debt. Train yourself to make financial decisions based on plans rather than emotion.

Don’t become trapped in spending more money under the guise of improving your credit. Create a budget and a plan to take control of your finances. You got this!

This post originally appeared on Arrest Your Debt.

Roth IRAs can be an excellent tool for retirement savings in certain situations. A Roth IRA has the unique feature of tax-deferred growth and income tax-free distributions. But, are there any drawbacks to Roth IRAs, and is there an alternative to the Roth IRA that could serve as a good substitute or addition to your current retirement portfolio?

Since a Roth IRA is a qualified retirement plan, it must follow certain IRS rules for the account owner to receive the benefits. So, what are the rules you ask?

Roth IRA Income Limits

For starters, you must have earned income to contribute to a Roth IRA. This does not include pensions, social security, disability, and annuity payments. Basically, you must have income from a job (W2), a business, or other active work (could be 1099 income from self-employment such as off duty).

Once you have your “earned income,” there are contribution and income limitations. What this means is that some higher-income earners may not be able to contribute to a Roth IRA due to the amount of money they earn per year.

For 2020, individuals cannot have a modified adjusted gross income (modified AGI) of more than $139,000. If an individual’s modified AGI is over $124,000, their Roth IRA contribution limits are reduced. For those filling jointly, the modified AGI limits are $206,000 and reduced contributions at $196,000.

Roth IRA Contribution Limits

If your income limits meet the eligibility requirements, there are contribution limits for the year. Those that are eligible to contribute are capped at contributions of $6,000 per year ($7,000 if you are over age 50) in 2020.

You can make your contributions up until April 15 of the following year. For 2020, this deadline has been extended to July 15. This means that you can make 2019 Roth IRA contributions up until July 15, 2020.

When You Have Access To Your Roth IRA Money

Now for some good news about your Roth IRA. The three main eroding factors of any retirement account are taxes, volatility, and account/management fees. Therefore, the Roth IRA eliminates the eroding factor of taxes, provided that the Roth IRA owner is at least 59 ½ years of age AND has held the account for a minimum of 5 years.

This is a huge perk.

Additionally, there are NO required minimum distributions (RMD’s) like with a traditional IRA. This means that you are not forced to withdraw any money from your account at age 72 if you do not want to.

In theory, you can let the money sit in your Roth IRA for as long as you’d like.

Roth IRAs And Taxes

Your Roth IRA is funded with after-tax dollars. With a traditional IRA, you receive a tax deduction in the year you contribute and kick the tax bill down the road until later in life.

Personally, I like to get my taxes out of the way now. This is because right now we are experiencing some of the lowest tax brackets we will see in our lifetime. Also, there is no guarantee you will be in a lower tax bracket when you retire, and this is especially true for public employees.

This is partly because you may not be receiving many of the deductions you get while working (i.e., pension & deferred compensation plan contributions, healthcare, etc.). As we can see, the Roth IRA can provide some tax-free money later in life, which is huge!

However, beware that withdrawals that do not follow these rules are subject to a 10% penalty tax and, in some cases, income tax on your gains.

Roth IRA Drawbacks

Now we have established the rules of the Roth IRA, who is eligible, and what the major benefit is. But what are some of the potential drawbacks of a Roth IRA?

Remember, a Roth IRA is not an investment in and of itself. A Roth IRA is essentially a tax code, so the IRS knows how to treat your money when you withdraw it later. It is the investment(s) within your Roth IRA account that determine how your money will grow and appreciate over time.

A potential drawback is that many Roth IRA accounts are usually tied to stock market investments, which can be volatile and risky. These investments can include high fees that may erode a large portion of earnings.

A Real World Retirement Example

Imagine you open a Roth IRA at age 25 with $1,000, and you contribute $6,000 per year until age 59. Now we will pretend you earned 5% per year for those 34 years. This would give you an account value of $515,655.13 at age 59.

If we factor in a 1% annual fee each year for 34 years, this brings your account value down to $414,688.11.

This means that a tiny 1% fee each year ended up costing you $109,967.02! That is $109,967.02 that YOU could have had in your pocket, totally tax-free for your retirement.

Also, one last note on the drawbacks is that we must remember that Roth IRAs are included in the gross value of an estate, which may increase state and federal taxes paid upon your passing by your heirs or beneficiaries.

A Good Alternative Or Addition To A Roth IRA?

Now don’t get me wrong, when it comes to qualified retirement plans, the Roth IRA is probably one of my favorites. However, there is a very effective alternative or addition to a Roth IRA to help achieve the same objectives as the Roth IRA.

This alternative possesses all of the same benefits of a Roth IRA, but it has far fewer rules and restrictions. Plus, it is something that has been around, in some form, for over one hundred years. It is whole life insurance. Now bear with me for a moment, and let’s see exactly how this works and compare the pros and cons of whole life insurance to a Roth IRA.

For those that are unfamiliar with what a whole life insurance policy is – it is merely a life insurance policy that has a death benefit and an internal cash-value account. Why life insurance, you say? Because it provides tax benefits and guarantees that are not available in any other investment or financial vehicle.

As long as a whole life policy is funded correctly and follows IRS guidelines, it will fall under section 7702 of the U.S. tax code. What this means is that whole life insurance provides tax-deferred growth AND tax-free use of your money just like a Roth IRA.

Sheltering Investments From The Stock Market

However, it is not tied to the volatility of the stock market, and there are no age restrictions for liquidity. This means that you can access your money at any age, for any reason, and with no penalties. If you remember, there is a 10% penalty plus applicable taxes for Roth IRA withdrawals that do not follow the IRS rules.

Additionally, unlimited contributions can be made to a whole life policy (within MEC guidelines) and there is a guaranteed growth rate tied to the policy’s cash value (usually around 4%). The death benefit in a whole life policy can also pass tax-free to your heirs. This isn’t always true of a Roth IRA, and the value of a Roth IRA upon the account owner’s death will depend upon the market value of the internal investments.

Unlike a Roth IRA which has a 10% penalty for accessing cash before the age of 59½, the cash value in a whole life policy can be accessed prior to age 59½, without a penalty.

Time-tested, whole life insurance has played a role in retirement plans for over 130 years. And, it can simultaneously be used as a legacy planning tool wherein the death benefit can be passed to heirs’ tax free and usually with a fairly high rate of return in comparison to the contributions.

We must not forget about the role of legacy and estate planning as part of our retirement plans. A lack of proper planning will cause us to limit spending in retirement, which in turn limits the quality of life and enjoyment, and isn’t that what retirement is all about?

Takeaways And Key Points

Overlooking whole life insurance in your retirement portfolio could cost you more than you realize. I am not saying that a whole life policy should completely replace your Roth IRA. However, it can certainly be a solid addition to your current retirement portfolio with its own set of unique financial benefits; and can be a great tool for those that may not be eligible for a Roth IRA.

Since much of our retirement income will be fully taxable for many of us, it is important to add as many tax-free “buckets” of money as possible to limit that tax burden in retirement when we need income the most.

On a side note, if you had to guess, what would you think the largest asset holding for most large banks is? Would it be real estate? Or perhaps mutual funds or corporate bonds?

Rich People Hide Their Money In Life Insurance

Believe it or not, whole life insurance is one of the largest asset classes of big U.S. banks such as Bank of America and Wells Fargo, to name a couple. This is because it is a safe way to store tax-free, liquid cash. You can view a breakdown of asset holdings on the FDIC website here. You may be surprised to see how many billions of dollars banks have invested in whole life insurance policies.

Forbes and other economic researchers and professors concluded that those who integrate cash value whole life insurance into their retirement plans and utilize this tool with other retirement investments realize more growth and income in retirement than those who do not. A retirement income study concluded that “For retirement income, we must step away from the notion that either investments or insurance alone will best serve retirees. More emphasis is needed on the basic forms of insurance products, and how they may behave as part of an integrated retirement income plan.”

So, stop for a minute and think about this question, if there was a way to have a solid foundation within your retirement plan, with guaranteed growth, virtually no restrictions, and tax-free benefits, would you want to add that financial vehicle to your portfolio?

To Your Retirement…

This post originally appeared on Arrest Your Debt.

Planning a monthly family budget and taking care of your finances is essential. It helps you stay in control of your life and allows you to set goals and plan ahead. In addition, it also enables you to get through some hard times and stay safe despite the things that are happening around you. But, when some sudden changes occur, like the outbreak of the COVID-19 pandemic, your family budget can be affected.

Therefore, you should make the necessary changes to your family budget and adjust to the new crisis. If you’re not sure how to write a family budget during the crisis times, we’ve got you covered. Here’s a step by step guide that will help you create a new monthly family budget.

Let’s take a closer look.

1. Get Informed

The important thing about a crisis period is for you and your family not to panic. To make sure you’re staying level headed and calm, you need to be informed about the crisis.

Find information using reliable resources and credible media, and find an answer to the questions:

What caused this crisis period?

How long will it last?

How will it affect me and my family?

Will it affect my business and my sales?

Make sure that you understand what’s happening around you and what is causing the changes you’re feeling.

Also, learn about the new changes that you might expect.

This type of information will help you and your family stay on top of things and not let the crisis time affect you too significantly.

2. Income Changes

If you already have a family budget plan, it might go through some significant changes during the crisis period. If you don’t have one, you still need to review your monthly income.

“Unfortunately, the COVID-19 pandemic caused millions of people to lose their jobs, forced them to close their businesses, or caused their sales to go down. That led many families to family budget reviews and forced them to rewrite their budget plans,” says Estelle Liotard, a financial analyst and writer at Trust My Paper.

If any of this happened to you, you need to:

Review your family monthly income

Think about ways of straightening the curve

If your monthly income is affected, do a review, and get the exact numbers on the table.

3. Expenses Changes

The crisis period will affect your monthly income, but it will also affect the way you spend your money. This calls for another review, this time focusing on how you spend your money.

During the COVID-19 pandemic most people save money on:

Traveling

Gas

Entertainment such as theater and cinema

Clubbing

Eating out

This is because none of these things are safe or available to us. Also, we’ll spend more money on groceries or home maintenance.

Make sure to get these numbers on the table as well, to see how you need to adjust your budget.

4. Pay Your Debt

Most of us have some sort of debt we need to pay off. It could be mortgage debt, a student loan, or a credit card debt.

Whatever it is, your monthly family budget needs to focus on:

Paying the debt regularly

Pay at least the minimal amount

Naturally, paying the minimal amount means you’ll have to pay off your debt longer, but at least you’re not skipping a monthly payment.

If you skip a payment, your debt could mount, and your credit score will not be great.

So, make paying the minimal amount a priority and make this one of the top concerns of your monthly family budget meetings.

5. Apply For Help

During the crisis period, most countries will give it their best to help those people who are out of jobs or those businesses that are losing their income due to the crisis.

It’s your job to learn what forms of help you are eligible to apply for and how you can improve the family budget situation.

“If there are any benefits, types of aid, or delays, you can get make sure that you request them. This will affect your monthly family budget and help you save some money for the crisis period,” says Helene Cue, a financial planner, and writer at Supreme Dissertations.

Learn about:

Receiving help for your businesses

Deferred payments

Waived payments

Debt relief

In case you need help with filling in an application or writing a professional email, you can turn to services and tools such as Studicus or Best Essay Education. For help with proofreading and editing, check out Grammarly, or Wow Grade.

6. Save Money

A crisis situation demands a crisis family budget. This means you’re going to have to make some cuts and save money to ensure a normal life for you and your family.

The best way to do this is to:

Gather the whole family

Analyze all your expenses

Find the things you spend money on

Decide which items you need to give up for the time being

It could be something seemingly unimportant such as a monthly subscription for a self-care box. But if everyone gives up on a couple of things, you could boost your budget for a week’s worth of groceries.

Make sure the whole family is on board and decide which things need to be put on hold for as long as the crisis period lasts.

7. Track Your Spending

Once you review your income and expenses, and you consider different ways of saving money or getting help, you’ll need to track the results.

Your new family budget may look great on paper, but you have to make sure things are good when applied.

That means that you have to track your spending.

Together with your family, create a weekly report on the things you’ve spent money on:

Groceries

Transportation

Home entertainment

Clothes

Home supplies

Get a list of things that you’ve spent money on and review each week. Make sure that your weekly expenses fit your monthly budget plan.

If you see room for improvement, jump right to it. If you see room for saving some money, set it aside for an emergency fund.

8. Prevent, Don’t Cure

In case you already have an emergency fund saved up for crises, we strongly recommend not reaching into it unless you have absolutely no choice.

You could go ahead, living your life the way you did before the crisis. You’d just be spending money from this fund, even though your income is lower.

But, this won’t work in the long run.

Instead, prevent your family from needing to use the emergency fund. Use the advice we’ve provided above, make small changes, and don’t allow the crisis to bring you down.

Save the emergency fund for when you have no choice but to use it.

Final Thoughts

Writing a monthly family budget during crisis times is no different than writing a regular family budget. You have to review where you stand, understand the facts, and determine the measures you have to take to continue living decently.

The good thing is that the crisis can’t last forever. But, for the time being, write an improved version of your family monthly budget using the tips we’ve provided above.

This post originally appeared on Arrest Your Debt.

Are you looking for an interesting way to make some extra income? The food industry has got you covered with these food delivery jobs.

Gone are the days when you had to rely on UPS or FedEx for a delivery job. Now, the food sector creates thousands of those positions every year with food delivery driver opportunities.

If you have a valid driver’s license and are at least 18 years old, you can make extra money by working for food delivery companies.

The demand for food delivery has skyrocketed up, ending up creating many more delivery jobs. As dine-ins might remain closed for a long time post lockdown, the landscape of delivery jobs will continue to thrive and pay well.

With Americans spending more than $30 billion on ordering food every year, and 20% of them ordering at least once a week, food delivery jobs will always remain in demand.

Here, we will be discussing 15 of the best food delivery jobs in the US that you can find right now.

15 Best Food Delivery Jobs

1. Grubhub

How Much You Can Earn:

$12 per hour

How to become a driver at Grubhub: You are eligible to work for Grubhub if you have a car, valid ID, and auto insurance and have a smartphone with the latest Android or iOS. For some areas, you can also apply as a biker delivery personnel. The hourly rates are subjected to the time of the day and the radius you are operating in.

This food delivery company is a Chicago-based online portal for ordering online food. Like many other food apps, it connects consumers to the restaurants in their respective regions. Also, it acts as a delivery outsourcer for food joints.

Follow this link to apply at Grubhub.

2. Doordash

How Much You Can Earn:

$8-15 per hour

How to become a driver at Doordash: This food app has made it easy for drivers to sign-up for the job and make money delivering food. After the initial registration, drivers or “Dashers” have to install an app and choose their working time slots there. You must be 18 years with a valid driver’s license and a vehicle to register on Doordash.

Doordash is a leading food delivery company and a San Francisco based startup that launched in 2013. It has designed its delivery job model to cater to all those who are looking to earn extra income as a side hustle. The app also gives out a $500 bonus on every successful referral.

Follow this link to apply at Doordash.

3. Postmates

How Much You Can Earn:

$18-25 per hour

How to become a driver at Postmates: This Food delivery app is currently paying one of the best hourly rates to its drivers and riders. The company claims that it pays 100% of what a person makes on each delivery. The sign-up is free and doesn’t ask you for specific time commitments. With a vehicle along with pertaining documentation and a smartphone, you can work for Postmates.

Postmates is another San Francisco based food delivery app, serving over 2,000 US cities. The company primarily focuses on the upward mobility of its workforce. It helps them with their taxes and finding health care. It is working with a range of non-profit and mission-driven organizations to do that.

Follow this link to apply at Postmates.

3. Caviar

How Much You Can Earn:

$25 per hour

How to become a driver at Caviar: If you have a car, truck, bike, or scooter, you can join Caviar’s food delivery team. The sign-up with Caviar is simple. You can make good money with Caviar, but it has a 2-year experience needed prerequisite for the job.

Caviar has been working for the last eight years as a meeting point for diners and restaurants. Caviar’s payment method to its drivers is one of the best on the block. It partners with Cash App and lets drivers instantly withdraw the money they make with each delivery, so it’s easy to save.

Follow this link to easily apply at Caviar.

5. Ubereats

How Much You Can Earn:

$8-12 per hour

How to become a driver at Ubereats: It is one of the biggest food delivery networks in the US, standing on the goodwill and extensive footprint of Uber. If you are 19 years old with one-year experience of driving and a vehicle that has 1997 or later manufacturer year, you can sign up for Ubereats delivery job. In some cities, you can also register for bike and scooter delivery jobs.

The rates at Ubereats might be lower than its competitors. However, the amount of work it offers can make up for those hourly rates. The flexible hours you can work put you in charge of your schedule. Also, the payment scene is quite agile.

A driver can cash out five times a day via Instant Pay. Also, Ubereats tips $5 to drivers on every canceled order.

Follow this link to apply at Ubereats.

6. Instacart

How Much You Can Earn:

$10-25 per hour

How to become a driver at Instacart: If you are looking to make money while doing grocery shopping for others, then Instacart is the option you need to consider. You can sign up with Instacart as a full-service shopper that will buy the grocery and deliver it to customers’ doorsteps.

If you have a vehicle and smartphone, you can register with Instacart. Because this delivery job involves grocery items, Instacart experts its drivers to easily lift 30-40 pounds. You can also work as an in-store shopper that only helps customers with shopping. It’s an excellent app to earn extra cash.

Follow this link to apply at Instacart.

7. Favor

How Much You Can Earn:

$10-18 per hour

How to become a driver at Favor: If you have a reliable means of transportation with a driver’s license and a smartphone, you can become Favor’s “Runner” with no experience required. Favor has some good incentives that can make up for its low hourly rates. For instance, you get a guaranteed minimum earning for scheduled hours. Also, Favor doesn’t deduct any commission from tips, and you get 100% of your earnings.

Favor is more than a food delivery app. It also helps its customers with other everyday shopping like grocery, dry-cleaning, etc.

Follow this link to apply at Favor.

8. Saucey

How Much You Can Earn:

$14 per hour

How to become a driver at Saucey: If you are looking for an evening gig to make some extra cash, you can sign-up with Saucey. You must be at least 21 years with a vehicle, valid driver’s license, and a smartphone. Also, you need to have five years of clean DUI record.

Saucey is a delivery app for liquor that operates between noon and midnight. Saucey allows the drivers and riders to pick up the particular neighborhoods they want to operate in. This alcohol delivery platform also guarantees a minimum hourly wage to its drivers. For now, this app is working in six cities only.

Follow this link to apply to Saucey.

9. Shipt

How Much You Can Earn:

$15-25 per hour

How to become a driver at Shipt: Shipt also works like Instacart. The only difference is it only has a full-service shopper’s job that first picks up the grocery items from the store and then delivers it to customers. You must have one year’s experience of driving, a valid driver’s ID, a smartphone, and a cooler bag for signing up to become Shipt’s delivery guy.

For now, Shipt is not operating in every state and city. Also, it requires its drivers and riders to be able to lift at least 25 pounds. Shipt was founded in 2014 and acquired by Target in 2017.

Follow this link to apply at Shipt.

10. goPuff

How Much You Can Earn:

$15 per hour

How to become a driver at goPuff: If you are 21 years old with access to a vehicle you are insured to drive, you can work for goPuff. Besides these requirements, goPuff also gets the driver’s consent to run a background check if necessary.

goPuff is a delivery app but for convenience items like drinks, snacks, and other household items. The drivers working with goPuff get the schedule of their shift every week beforehand. The payments to drivers are made weekly and paid via direct deposit.

Follow this link to apply at goPuff.

11. Eaze

How Much You Can Earn:

$18 per hour

How to become a driver at Eaze: If you are 21 years or older and live in California with a vehicle and smartphone, you can sign-up for Eaze’s driver job. However, you will be delivering medical marijuana instead of food. Since the blanket marijuana legalization in California, such delivery jobs are sprouting in the state.

You will have to work between 9 am and 10 pm on an hourly basis. Eaze pays its drivers an hourly wage as well as mileage reimbursement. You also get 100% of the earned tips.

Follow this link to apply at Eaze.

12. Deliv

How Much You Can Earn:

$22 per hour

How to become a driver at Deliv: If you have a vehicle made in 1998 or later and have a valid driver’s license, you can work at Deliv. Also, you must have one year of driving experience as well and can lift 50 pounds of weight. In some cases, Deliv also runs background checks of their drivers. The wage potential is high and will be a good opportunity to learn how to manage your extra income.

Deliv is a same-day delivery service of retail items, including food. Besides serving individual consumers, Deliv also fulfills the retail requirements of small enterprises from third-party vendors.

Follow this link to apply to Deliv.

13. Whole Foods Market

How Much You Can Earn:

$34,213 per year

How to become a driver at Whole Foods Market: If you are looking to have a full-time food delivery job, you can sign-up with Whole Foods Market. You need to have a valid driver’s license to work for this organic food supermarket. While hiring, the company prefers those who have any prior experience of working as a delivery driver.

Whole Foods Market has a unique and successful business proposition. It only deals with organic food that is free of artificial colors, flavors, preservatives, and hydrogenated fats. As of now, this Austin-based food store is operating at 500 locations all around the world.

14. Reinhart Foodservice

How Much You Can Earn:

$54,796

How to become a driver at Reinhart Foodservice: This is another option for all those who are looking to embrace food delivery as a full-time career option. If you have a license and experience of driving commercial motor vehicles, you are eligible to apply at Reinhart. The full-time contract of Reinhart comes with a competitive benefits package.

Reinhart Foodservice has been working as a food supply company for around 50 years. The average amount it is paying to its drivers is better than many other full-time delivery jobs.

Follow this link to apply at Reinhart Foodservice.

15. Amazon Prime Now

How Much You Can Earn:

$18-25 hours

How to become a driver at Amazon Prime Now: You can work as a delivery driver for Prime Now if you have a working, insured vehicle, and a smartphone. For Prime Now delivery jobs, Amazon doesn’t require particular specifications for vehicles.

Prime Now is a service by Amazon for its Prime members that involves same-day delivery of groceries and other convenience items. Besides the minimum hourly wage, Prime Now delivery drivers can also make a significant amount of money through tips while fulfilling the merchant pickups.

Follow this link to apply at Amazon Prime Now.

Note: The hourly rates we have discussed here are gross amounts and subject to changes for different locations and hours.

Conclusion

If you want to work as per your own set schedule and without having the direct supervision of any bossman, food delivery jobs are definitely an option worth considering. The flexibility that comes with delivery jobs makes it a great side gig. You can run some hours in the evening or do weekends; it is up to you.

Also, it is a great way to have additional income. You can make around $1,000 every month without grinding it too much.

However, you also need to be aware of some of the downsides of the job. For instance, your vehicle will undergo a lot of wear and tear. Also, as an independent contractor, the money you will earn will be tax liable. Lastly, income fluctuations are quite high in food delivery jobs.

This post originally appeared on Arrest Your Debt.

Credit card usage is on the rise due to the numerous rewards that one can accrue. One can quickly get amazing perks such as free trips, discounts on purchases as well as cashback. The secrets to getting these and much more are using credit cards responsibly. Here’s how using a credit card responsibly builds credit.

Pay Your Credit Cards Monthly

Your credit card rewards won’t be worth much if you aren’t paying off your card in full every month. You must never overlook any due date; rather, it ought to remain your topmost priority.

You can strive to set a monthly email alert that will remind you when your payment is due. If you can continually pay off your credit card each month, you can improve your credit score and avoid accruing any late charges or interest fees.

Make The Most Of Your Credit Card Rewards

You need to be sure you can pay off your credit card each month without falling into the trap of credit card debt. If you are able to stick to your budget, it may make sense to apply for a reward-based card. You need to foster a self-control financial discipline to know your spending limits.

You also need to develop a debt payment plan that’ll enable you to eliminate any large debts quickly. If you’re already fighting to pay off credit card debt, a budget and debt plan will help save you thousands in interest that you’re throwing away to an already rich company.

Credit card rewards are only as good as your ability to pay off the card in full each month. This is the only way you will benefit from a rewards card.

I find it’s best to shop around for rewards cards that give you cashback contributions. It’s a chance to accumulate rewards to put money back in your pocket rather than stacking on more debt in the form of interest.

When To Cancel A Reward Credit Card

If you decide to try the rewards credit card option, keep a close eye on your spending. If you find yourself carrying a balance on the credit card each month it may be time to rethink your spending plan. Rewards are not worth it if you’re overspending.

Avoid the enticing offers and deals credit card companies throw at you if it’s going to cost you more in the long run.

If you have a gut feeling that it’ll be challenging to pay off the credit card wisely, you need to cancel it. You can use this opportunity to search for a new spending plan that actually saves you money.

A cash envelope system may be an option for you but if you can use a card responsibility, always pay attention to the hidden fees. High cashback with an annual fee may not make financial sense in your situation. Crunch the numbers to see if using a reward credit card is actually a benefit and not a detriment to you.

Decide When To Use The Reward Credit Card

If you are diligent in paying off all balances every month, you can start using credit cards to build credit and save you money. All of my cards are cashback credit cards and offer me higher cashback depending on what I’m purchasing.

Before signing up, make sure you check the fine print to ensure you’re not signing a contract that has an introductory rate but later changes to a high-interest clause. Take your time and be certain that what you are signing up for will actually benefit you in the long run.

To be on the safe side, you need to do a monthly budget. A budget gives you the power to tell your money where to go rather than wondering where your money goes each month. Take control of your finances with a budget to guarantee you stay on top of credit card balances.

This is a chance to enable you to become financially ready to get a credit card with benefits and make it work for you rather than against you.

Credit card rewards are so enticing that most people can hardly pass them. However, use a new card to help you build credit rather than destroy it. I check my credit card balance on my phone weekly to ensure I have enough money to pay it off each month.

Create financial habits that will empower you to become financially literate and provide you with financial independence you only dreamed of.

This post originally appeared on Arrest Your Debt.

What is wealth? Many people place their value on how much money they earn each year. What if I told you that many high-income earners, making over $200K a year, are not wealthy?

Today we will discuss why wealth and income are not directly related.

I have been reading The Next Millionaire Next Door: Enduring Strategies for Building Wealth (I highly recommend), and the topic of income vs. wealth at the forefront of the book.

Let’s address some of the common misconceptions associated with wealth and income.

High Incomes Are Common

woman wearing maroon velvet plunge neck long sleeved dress while carrying several paper bags photography

Do you know many high-income earners? Individuals, who bring in over $200K a year? I’m sure you interact with a couple of them, whether they are your primary care doctor, surgeon, pharmacist, dentist, or a small business owner.

People who make over $200K a year are not as rare as they once were – but the wealthy ones are. It turns out, measuring wealth shines a light on our bad spending habits.

Many high-income producers spent a great deal of time and money to get to their income level. If you thought you had a great deal of student loan debt, can you imagine what someone who went through medical school owes?

Maybe you are one of those individuals who went through medical school and now owe over $100K in student loan debt and their financial health is struggling.

Spending Habits

Many people envy these high-income earners because of the amount of money they bring in. Rest assured, these high-income earners know they are envied, and they are also pressured to spend more than the average person.

Upper-class citizens who make a high income are pressured to live in nicer neighborhoods, drive a more expensive car, and pick up the tab more often than not. High-income earners are as human as you and I and have the same temptations to spend more than they make.

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The issue with a high income is the ability to spend more, and to borrow more, and to rack up much bigger debts. If you don’t believe me, check out how many professional sports players and celebrities have gone bankrupt.

How could any professional sports star go bankrupt!? They make millions of dollars each year!

You or I could live off the interest alone from their annual salary, yet somehow they find a way to spend it all – and then some. The pressure to spend is even more significant when you have a high income, which is a contributing factor to why income does not equal wealth.

Rich Celebrities Who Lost It All

For a perspective, here is a list of people who made fortunes and were “extremely wealthy,” but still found themselves declaring bankruptcy:

50 Cent

Donald Trump

Kim Basinger

Marvin Gaye

Larry King

Mike Tyson

Willie Nelson

MC Hammer

Michael Vick

Burt Reynolds

Toni Braxton

Gary Busey

Sinbad

Wayne Newton

Curt Shilling

Warren Sapp

I could go on and on, but I think I have made my point. If you look at this list, these are people that most of us would consider as “wealthy.”

The perception of wealth is not always a reality. Little did we know, they were spending much more than their high incomes brought in.

Many of these individuals went millions of dollars in debt – much more than you or I could amass on our own.

What Is Wealth?

person holding pink piggy coin bank

So on the opposite spectrum, what is wealth? Wealth should be more related to net worth.

In reality, many millionaires in this world live in moderate/middle-class neighborhoods. They drive older cars, spend responsibility, and don’t live a lavish lifestyle.

Their lifestyle is what has made them rich – they spend much less than they bring in.

The Wealthy UPS Driver

Have you heard of Theodore Johnson? He is what legends are made of. He worked for UPS, and the most he ever made was $14,000 a year. For over 50 years, he invested 20 percent of his income (roughly $3,000 a year).

Do you know how much he had amassed by the time he was 90 years old?

70 million!

Theodore didn’t change his spending and saving habits even though he had accumulated such a large amount of wealth. That is what keeps wealthy people wealthy. Just because they are wealthy does not mean they now have an excuse to squander it all.

Even though Theodore only saved around $3,000 a year, he was able to retire a multimillionaire by being systematic and routine in his spending and saving habits.

Even You Can Become Wealthy

There is no reason you can not pay off your debt, experience financial freedom, and begin to build your legacy. It’s not about getting rich; it’s about being responsible with our money and reducing/eliminating our financial stress.

Stop making the excuse that only people with high incomes can amass wealth and pay off debt – anyone can build wealth if they can take control of their spending.

You and I buy too much junk. I consider myself rather frugal – if not boarder line cheap. I watch what I spend and regularly double-check my decisions to make a large purchase.

Even with all my safeguards, I still waste money on things I shouldn’t. It’s human nature, and you can still break the rules once in a while – as long as you don’t go off the deep end.

Combining Wealth And Income

My main goal is to continue to raise my income and my wealth as much as I can. Building wealth is certainly easier with a higher salary – as long as you do not increase your spending.

From the outside, it’s easy to say that if I made a million a year, I could live off of 50K and invest the rest. Who knows what would actually happen though.

We are all human, and in the end, we are tempted by different things.

Avoid the idea that wealth and high incomes are two in the same.

They are two completely different things, and as showcased above, just because you make a ton of money, doesn’t mean you actually have any money!

Building Wealth Right Where You Are

If you are striving for a higher income because you feel it will be your answer to your debt crisis, rest assured, a higher income will not rid you of your debt and money problems. The only way you will solve your debt problems is by changing your spending habits right where you are, with your current income.

If and when you start to make more money, that means you can pay your debt off faster – provided you don’t spend more just because you make more.

Next month I am due for a salary increase. I am not going to change my budget one bit – the extra I bring home will mean I can put more towards my mortgage.

It’s about being content with where you are in life and learning to live within your means. My salary increase will not change my lifestyle in any way – until I pay off my mortgage. Once my mortgage is paid off, I can reap the benefits of a higher salary; but chances are I will probably just invest more rather than spend it on junk…

Kevin Bacon’s Take On Wealth

Kevin Bacon at the “The Woodsman” Special Screening at the 2004 AFI Fest, Pacific Arclight Theatres, Hollywood, CA 11-05-06

I recently came across an interview with Kevin Bacon after he lost much of his wealth to Bernie Madoff’s Ponzi Scheme. After losing millions he stated,

“It was a bad day, but pretty quickly, we were able to see all the things we had as opposed to whatever we lost, and those are the biggest cliches: children, health, love, a nice home. So we got through it together. I don’t think about Madoff, like, at all.”

Wrapping It Up

Do you have wealthy friends or just high-income earner friends?

You may be surprised to learn that your “poor” friends might be much more wealthy than you thought. The images people portray are just that – portrayals.

Fight the urge to compare yourself to others and analyze their possessions. You never know, they may be one late payment away from bankruptcy.

This post originally appeared at Arrest Your Debt.

Across the world, people are scrambling to make ends meet under economic pressure in the wake of the coronavirus. Thus far, there are over 1.9 million confirmed cases across the globe, and the United States is at the epicenter with the leading number of deaths.

Over 10 million Americans have filed for unemployment due to being laid off from their jobs, and experts warn that the road to recovery will be long and slow.

This places a significant burden on family finances, even for parents who have not been furloughed. Many schools will remain closed through summer, requiring working adults to either take time off or pay for childcare supervision. Those who depend on schools to provide meals for their children will now have to find room within their budget to put more food on the table at a time when money is incredibly tight.

If money is affecting your marriage or family, use these tips to manage your finances during this tough transition.

Increase Your Cashflow

There’s nothing more stressful than losing a source of income due to furlough, especially in the middle of a pandemic when everyone’s health is on the line. If you relied on insurance through your employer’s benefits package and lost your job, how will you pay for critical care should someone in your family fall ill? How will you afford the standard costs of living?

Unfortunately, money doesn’t grow on trees and although Congress has passed a $2.2 trillion stimulus package that includes funds for American families, this one-time check for $1,200 (or $2,400 for couples, plus $500 per child) won’t be seen for quite some time—and will be gone in the blink of an eye.

Jobs are limited, but there may be additional sources of revenue you can use to increase your cash flow:

Drive for rideshare companies

Deliver for carrier services

Request loan forbearance

Instruct your broker dealer to sell shares of stock

Tap into wealth stored in home equity

Downsize properties

Sell assets

Hopefully, finances aren’t so dire that you’re required to sell your car or something similar, but keep the option in mind if your situation becomes increasingly stressful.

Create a Budget

Add the cash flow to your family’s total monthly income, then use the value to create a new budget for the COVID-19 crisis. Be sure to account for new expenses in addition to the new income such as:

Babysitter costs

Entertainment for the kids

At-home school supplies

Higher electricity bills

More trips to the grocery store

Larger insurance premiums

Out-of-pocket medical expenses

Tallying these up may induce anxiety, but taking a cold, hard look is the most important step to budgeting.

Cut Down Costs

Once you have a clear picture of money coming in versus money going out, you can scour for different ways to save and stretch your dollar. It may require some creativity on your behalf, but some suggestions include:

Clip grocery store coupons

Cancel cable in favor of a cheaper streaming subscription

Workout at home instead of the gym

Use public transportation to avoid the cost of commuting

To prevent Mom, Dad, and the kids from going crazy while shelter in place mandates are in effect, you can save money by turning meals into fun activities. For example, substitute going out to dinner with a family pizza party or set up a build-your-own ice cream Sunday buffet to satisfy everyone’s sweet tooth while having a blast.

Tap into Free Resources

It’s understandable to feel stranded and stressed during this unprecedented time in history, but know many or organizations offer free resources you can use for assistance. Research the options available in your state and local community, and consider the following while finances are tight:

File for unemployment benefits

Apply for Medicaid

Apply for food stamps

Find your local food bank

Enroll in No Kid Hungry

Explore free online events and activities

Utilize public education platforms

Research eviction moratorium criteria

Ask your bank for a payment extension

Request a utility late-fee waiver

Set up a crowdfunding campaign

One silver lining to the situation society finds itself currently in is how people from all walks of life have banded together to help one another. Reach out to family, friends, and neighbors for support, and you may be surprised by the response you receive.

This post originally appeared on Arrest Your Debt.

Recently, I was approached by an employee at Savology who wanted me to review their free financial plan software. According to the employee, this software would help me reach my financial goals, grade my financial wellness, and provide me personalized action items to take control of my money.

Did it deliver? Find out in this thorough review!

About Savology

Savology was founded in 2019 by Spencer Barclay in Utah. Spencer created the company with a mission to improve everyday people’s finances by offering them a personalized financial plan – for free.

Spencer has had his fair share of success in the financial world and helped build several startup companies in the financial world. His previous focus has been on credit, estate, retirement planning, and investing.

Putting Savology To The Test

From my first visit to the Savology website, I was impressed with the simplistic look of the site. “Plan your financial future in just five minutes. For Free.” That’s quite a powerful statement. You can put lipstick on a pig, but in the end, it’s still a pig.

In other words, some outside appearances are meant to cover up things that are not so pretty.

It was apparent they spent money on the look of the site, but I wanted to know how it works, so I created my free account.

Signing Up For My Account

As a police officer, I’m skeptical of putting any personal information on the internet. I have heard of far too many horror stories of identity theft and other issues with unsecured websites. Due to this, I was concerned about what information Savology wanted me to provide for my free financial plan.

To my surprise, the only thing that was required to start was my first name. No last name, no address, no social security number – nothing! This was a massive bonus for me because I get tired of websites wanting to know everything about me.

As I proceeded through the process, Savology did ask me a bunch of personal information, but it didn’t require me to identify myself.

Required Savology Information

Here are the questions Saveology asked me:

What Is Your Age

What Is Your Gender

What Is Your Zip Code

Are You Married

How Many Dependent Children Do You Have

How Old Are Your Children

What Is Your Expected Annual Income

Select Any Current Retirement Accounts (long list to choose from)

Which Of The Following Accounts Do You Have (checking, savings, etc.)

Enter The Estimated Balances For Your Retirement Accounts

How Often Do You Make And Stick To A Monthly Budget

Do You Have Savings Set Aside Just For Emergencies?

Which Of The Following Assets Do You Have (extensive list)

Which Of These Debts Or Liabilities Do You Have (large list)

Do You Have Any Active Credit Cards

Which Of The Following Legal Documents Have You Created And Keep Updated (will, power of attorney, trust, etc.)

How Do You Feel About Your Health

While this was an extensive list, I feel I was asked certain questions based on my previous answers. You may have more or fewer questions asked of you, depending on your responses.

For instance, my current credit card balances were zero and I was not asked anymore about credit cards. I imagine the program would want to know how much debt I was in.

If you have been reading the blog for any amount of time, you know I am all about finance, and I feel I have a pretty good handle on my money.

My Free Financial Plan Results

When I clicked “submit,” I fully expected to receive an A+. Why? Because, I have an emergency fund, I have 6 months of living expenses saved up, and I even contribute 20% of my income to my retirement account. There’s no way I wasn’t going to be perfect.

My results?

They gave me a “B!” Are you kidding me? I couldn’t believe it when I saw it. Here I was doing everything I thought was financially responsible, and I didn’t score a perfect score.

Shining The Light On All Of My Financial Failures

What I quickly realized was I was not as financially prepared as I thought I was. My wife and I previously created a will, but it wasn’t updated in quite some time. Also, we didn’t officially nominate successors in our will for our children if we prematurely passed away.

How incredibly irresponsible of me!

I have been busy focusing on retirement and budgeting our monthly income; I forgot about one of the most critical financial decisions I should make. We forgot to update our will to delegate the person(s) who would care for our children in the even of our premature death.

In addition to family planning, I want to make sure I have at least 100% of my current income in retirement and put I wanted to retire at age 50. Savology quickly showed me I was not on track to retire at age 50 with 100% of my savings. To retire with 100%, I either needed to contribute more towards retirement or move my retirement age back a few years.

Financial Plan Report Card Categories

Here are the financial categories I was judged on by the Savology app.

Income

Emergency Fund

Debt

Net Worth

Insurance

Housing

Retirement

Savings

Estate Planning

I did well in the top categories, but to reach my personal finance goals, I need to work more on my estate planning and retirement savings.

In each category, there is a drop-down menu that will give you the description of the category, what factors went into your grade, and actionable items to improve your score.

Actionable Ways To Meet My Financial Goals

As I previously stated, I wanted to retire at age 50 with 100% of my income to be replaced by retirement funds and my pension. While it showed I wasn’t on track to meet it, it showed me what I could do to reach my goal.

By adding on two additional years, I would be able to meet my replacement income goal. This result was pretty eye-opening!

In addition to the retirement section, Savology provided me information about nominating guardians for my children.

Savology – Is It Really Free?

We know nothing in life is free, so I knew the owner of Savology was making money somehow. When I looked further into the program, I realized how the company makes money.

In some of the suggested improvement areas, there are financial company recommendations you can sign up with to help you meet your goal. Bingo – this is where Savology makes it’s money, through referrals to companies. This is also referred to as affiliate marketing.

Savology And Affiliate Marketing

I do not have a problem with affiliate marketing and feel it is a perfectly acceptable practice. Since Savology provides me with a free financial plan, it’s up to me to conduct business with any of the recommended companies – or not.

Savology delivers the initial information for free, so I’m okay with recommended companies they make money from, especially if I’m not required to conduct business with them if I don’t want.

Savology – What I Liked

The program was able to show me areas of improvement in my current financial situation that I had overlooked. The comprehensive and thorough financial plan I was provided for free was definitely worth the five minutes it took me to complete the initial survey.

The dashboard and summary of my financial plan were simple to navigate. The program provided me easy to understand information that highlighted what I was doing well, and what I needed to work on

Savology – What I Didn’t Like

One of the turnoffs of the program were the limits that were placed on certain information.

By completing specific actions, Savology awards you star points that are used to unlock additional features and information. I was able to unlock one of the categories but quickly ran out of Savology Credits to unlock more.

To earn extra credits, you are required to share the program, and you accumulate 100-star points every time someone signs up from your referral link.

On a positive note, it doesn’t cost anything to unlock more features and information, but it was a bit frustrating to run into this initial roadblock.

While disappointing, I understand why this is required. Savology is a brand new program and wants to be able to provide these free plans to as many people as possible. This is only done by people sharing the app with their friends and family through social media. So while it is frustrating, I understand why it is required.

Future Planned Categories

As I was going through the program, I noticed there were sections and tools that are “coming soon.” Some of the areas currently under development include:

Tax Analysis

Student Loan Analysis

Estate Planning

Financial Goals And Values

Change Planning Assumptions

Life Expectancy Details

Improve Income

Life Insurance Calculations

Net Worth Analysis

Financial Literacy Quiz

Actual Monthly Savings

Prepare For Life Events

Budget Tool

Auto Insurance

If these additional categories come online sooner than later, this will be an extremely impressive program. I have no doubt that Savology and I will compete for the same audience in the near future. The only comfort I have is we both are focused on helping people improve their finances and build wealth.

Savology – My Overall Impression

To me personally, Savology was worth every second I spent on it because it reminded me I needed to update my will immediately. In addition, I also enjoyed knowing where I was doing well financially and having Savology highlight these aspects.

Savology showed me my current net worth and allowed me to make financial decisions based on my current situation

As much as I didn’t like to be shown I wasn’t perfect, it’s crucial to have a third party evaluate your finances from an outside perspective. Sometimes we have a biased view of our overall situation and don’t see areas that need improvement.

I will probably go over this plan every six months before setting financial goals.

For the price of FREE I absolutely recommend everyone give Savology a try. You have nothing to lose other than five minutes of your time, and you may just come away with financial areas to address – before it’s too late.

This article originally appeared on Arrest Your Debt.

My kids love games. In fact, they are borderline addicted to electronic media. My struggle as a parent is creating a balance with their online time while also focusing on education. Recently I stumbled on a site that hosts free online math games for kids – that my kids actually like to play!

Before I found this site, I experimented with other math programs, but most completely free interactive math games have a ton of ads and popups that try to sell my kids’ toys and other junk.

Kids online are susceptible to poor advertising practices, and I also want to keep my children safe without being manipulated by advertising.

Math And Personal Finance Are Connected

Full disclosure – I was not good at math when I was a kid. I didn’t like it, didn’t understand it, and struggled with it most of my childhood. I was also addicted to video games, so the idea of having to figure out a math problem with paper and a pencil was not at all stimulating to me.

As you know, personal finance and math are intimately connected. This led to me making terrible financial decisions early on in my adult life that took me quite a while to fix.

Out of necessity, I forced myself to learn more about numbers and financial equations so I could improve my personal finance skills. Had I learned these skills early on, my financial path may have had a better outlook from the beginning.

How Do I Make My Child Love Math?

The simple answer is math needs to be stimulating, entertaining, and challenging, while still being easy to understand for our children. I know, easier said than done. I think common core standards attempted to do this, but as a parent, I struggle to understand common core myself.

As parents, we all want our kids set up for success. We want them to learn from our mistakes and avoid the struggles that we went through as children – and now as adults.

Because of this, I have been teaching personal finance principles to my children from the time they learned to walk. However, not all of my children love math. My kids practice math skills when I make them, but they certainly don’t get excited about learning math.

How To Teach Math At Home

Since we were forced to home school due to COVID-19, I have been searching for an online fun math game that will not only entertain but teach my kids different personal finance principles.

I found many different challenging math programs online, but most of them required some type of subscription, email verification, or download that I didn’t want to do. I tried to find an easy setup that my kids could access and start playing games and practice math skills at the same time.

Enter: Calculators.org. This site provides many different types of educational games that can be used for homeschool teaching and helping kids learn math – without subscriptions or downloads!

How I Made Math Class More Fun

After finding the site, I decided that just because I liked the challenging math games, that didn’t mean my kids would like them. I called my youngest, who is seven years old and in 1st grade, and asked him to look through the games and pick his favorite.

The only issue he had was there was such a massive selection of challenging math games. I should have initially narrowed it down for him a bit. After browsing, he came across a game he couldn’t pass up.

Zombie Number

free online math game for kids zombie hunter

My boys love anything related to Minecraft, zombies, and other similar games, so I assumed this would be one of his favorites. This math game involves solving math problems before the zombies get to the hero.

It has for main math focus areas which include:

Addition

Subtraction

Multiplication

Divison

Math Boy

Math Boy was the second game my youngest chose. Again, this one focuses on addition, subtraction, multiplication, and division. This is also a timed math game that involves repetition and memorization to set high scores.

In this game, if you successfully answer the question before the monster comes, the hero can destroy him with a sword. If you fail, the monster wins. While my youngest was having fun, the older two, ages nine and 10, quickly came over and wanted to play as well.

I understand everyone has their unique style of parenting, so the whole zombie and monster thing may be a turnoff for some parents. Don’t worry; there are many other types of free math games available to your kids that will meet any parenting style.

Fun Math Games In All Categories

The free math games are broken up into several sections based on the math types available during the game. To make learning fun, they have focused on creating math problems that focus on problem-solving.

Here is a list of the categories and math games associated with each.

Addition, Subtraction, Multiplication & Division

Math Boy

SinalGame

True Number Operator

Crazy Math Game

Quick Math Practice

Maths Test

Math Speed

Educational Math 4 Kids

Kids Math Quiz

Solve Math

Math For Kids Game

Multiple Choice Math Quiz

Arithmetic Game

Math Game For Kids

The Operator

Tap The Operator

Zombie Number

Mathematic

Addition

Feed Math

Math Plus Puzzle

Math Nerd

Math Pop

Math Balls

Woopy

Grocery Cashier

Count Fingers

Numerical Basics

The Highest

Number In Order

Math For Kids

Complete The Sequence

Mathball Roll

Guess The Number

Math Up Down

Addition And Subtraction

Dux Math

One Plus Two

Quick Math

Number Maze

Multiplication Games

Table Under Pressure

Logic-Based Math Games

Get Twelve

Math Plus Pro

CalcuDoku

Sumagi

Master Sudoku

Ultimate Sudoku

Cuteness Edition

Stone Merge

Connect Merge

Tendo

Burn Matches

Reorder

Puzzles

Jigsaw Delux Puzzle

Cartoon Puzzle

Kids Puzzle

Kids Puzzle Adventures

Puzzles For Kids

Animal Matching Memory Game

Find The Differences

Human Anatomy

Other Fun Educational Categories

Calculators.org also developed several other types of fun online learning games parents can use to make homeschooling more fun.

Learn Colors And Coloring

Quiz Games For Kids

Physics Games

Games For Preschoolers

Typing Games

Word Search Games

Crosswords

Word Puzzles

Getting Started: Free Math Games For Kids

To get started playing these online games without any subscription or annoying ads, head over to Calculators.org. Get your kids learning math without the stress of forcing lesson plans down their throats. An exciting game that not only teaches but keeps kids engaged is hard to come by.

After your kids have tried the games, comment below and let me know what games your little ones liked the most!. Also, if you know of other free resources to help kids learn math, comment below, I would love to give them a try.

This post originally appeared on Arrest Your Debt.

Property value is something many homeowners worry about, or should, especially if they plan to move, near or far, in the future. There are a few things you can do to increase your property value in 2020.

Below we’ve created a list of some of the first things you can do to increase your property value.

Electricity Rates

To start, being in a location that has excellent electricity services available for great prices can increase the value, especially in a home buyer’s eyes. On this page, you can learn more about Texas electricity rates.

Texas allows a competitive market when it comes to electricity rates and plans. This gives customers more freedom when selecting their plans. It also ensures they can find the cheapest rates because the prices are competitive.

New Windows

Maybe new windows aren’t one of the first things you consider when trying to increase your property value, but they should be. Modern windows not only look great, but they also go hand in hand with your electricity bill.

New windows can keep the heat or air conditioning in your home. Older windows often let a lot of air escape or enter. This means your furnace or air conditioner will run more than it needs to. If you purchase new energy-efficient windows, they can help to lower your electricity bill, which is appealing to everyone.

Fresh Paint

Though a fresh coat of paint may seem superficial, it can do wonders for your property value. Adding that nice coat of new paint to the outside of your house will automatically make it more appealing to the eye. It’ll catch the attention of home buyers as well.

Clearly, the color is also a significant factor. You don’t want to go for a bold, obnoxious color like pink, purple, or yellow. Go for something subtle but eye-catching with the other components of your home.

Maybe you recently painted your home. Consider painting the front door, the front porch, or even your shutters. Sometimes adding some paint to draw out a feature of your home can give it a whole new look. This return could raise the property value or draw in new home buyers.

Pull The Weeds

Have a garden area that you’ve neglected for years? Now is the time to give it the love and attention it deserves. Taking the time to pull the weeds and lay some fresh mulch will make a world of difference.

This area is one of the first things people notice when they pull up or drive past your home. Having a clean and put together garden area will make it immensely more attractive and raise the property value.

The same idea goes with your general lawn. Pulling weeds and keeping the grass mowed will draw a positive eye to your property. Keep your sidewalk areas weed-free and ensure nothing is growing over.

Fence Or No?

While some people may not care if there’s a fence, the ones that don’t care aren’t the issue. You’ll increase your chances of selling if you add one because some people won’t consider a house unless there is a fence.

People with pets or children often look for a home that already has a fence that is sturdy and reliable. This takes the stress of having to put up and or buy a fence before they can move in.

Typically if the answer is a fence or no fence, the better option is to add one. Some fences include security technology, which also increases value, but it’s best to do your research on websites like these.

Pave The Driveway

Many homes in Texas have dirt driveways, so simply paving your driveway will automatically make your home stand out. It may be a more expensive upgrade to your home, however, it will pay off in the end.

The upgrade will also up your property value and maybe just help you score a higher asking price when you do go to sell your home.

Selling your home or trying to raise your property value can seem tricky. However, there are many small tasks you can do to make a huge difference. Sometimes checking out another city’s property sites to compare it to Texas’s is a good idea.

We hope the list of ideas we created above helps you do just that.

This post originally appeared on Arrest Your Debt.