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Here’s a break-down of the best round-up, automated savings, and microsavings apps, so you can select the best platform and method for your savings goals. 

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After some of the most beneficial credit card perks have disappeared in recent year, many consumers are left wondering where rewards programs are headed. But while the industry seems to be in the midst of a lull, some experts believe the next best thing in credit cards will be “à la carte” perks and benefits.   If you’ve been playing the credit card rewards game for any period of time, you’ve probably notice that things have changed. We take a look at where the industry is headed.

Why Benefits Aren’t Working Well for Consumers Right Now

  Over the last five years, we’ve seen some of the most lucrative credit card rewards ever announced (such as the Chase Sapphire Reserve 100,000 points bonus) come and go. We’ve seen features like price matching and purchase protection go away, with nothing equally exciting to take its place.   However, the vast majority of consumers choose a credit card for the features —  79% of cardholders admit to using one card over another exclusively because of the benefits, according to a recent study. So when these features begin to disappear or don’t seem to be working as intended, something is amiss.

Many Benefits Go Unnoticed or Unused

You may not even know many of the benefits that your credit cards offer, because you simply don’t need them. But don’t worry: you’re not alone. In fact, there are many consumers who struggle to realize the benefits they’re offered from their credit card products, or to actually utilize them once they do.   Unused or unidentified benefits might include emergency travel insurance, credits for products and services (such as TSA-PreCheck and Global Entry), or even a dedicated concierge desk. If you don’t know that you have these benefits at your fingertips — or honestly, don’t need them — it’s easy to let them go to waste.

Your Benefits Might Not Work for You

When my husband and I signed up for The Platinum Card from American Express, I was so excited to use all of the many benefits included. One of its biggest selling points, though, is a $200 annual airline credit, which can be used toward a number of travel incidentals (luggage fees, in-flight WiFi, food and beverages, or preferred seating).   Unfortunately, we tend to fly Southwest more often than not: an airline that doesn’t charge for bags. While we could probably spend $200 in drinks and Early Bird seating, we chose to fly another airline home for Christmas so we could use the entire credit.   This is just one example of a benefit mismatch. Lucky for us, we are more than able to recoup the Platinum Card’s annual fee in other ways, so I’m not worried if we leave a bit of that airline credit on the table. However, if this credit were a significant factor in us justifying the card’s annual fee, we would have a problem.   Because so many cardholders choose the plastic they keep in their wallets according to the rewards it provides, these discrepancies are likely to be a serious concern for card issuers. After all, if consumers aren’t getting what they need from their credit card, they are going to start looking elsewhere for a product that is a better match.

Benefits Aren’t Really working for Issuers Either, Though

You know all of those amazing (and long-since-expired) introductory offers I mentioned, or the card benefits that recently went away? Well, the reason these are things of the past is that they simply weren’t profitable enough for card issuers.   While I don’t see any of the large card issuers shuttering their windows anytime soon, the truth is that many of their latest efforts have actually failed to boost their bottom line. Additionally, issuers seem to be struggling with retention now more than ever before; whether this is due to the economy or cardholder “travel/points hacking,” there’s no way of telling.   Lastly, issuers have seen a 29% decline in new card applications recently. Sure, they are still making a profit off of finance charges, but this decline in new cardholders may indicate that there isn’t enough being offered to draw fresh customers to the table.   This is why many experts, such as Beverly Harzog of U.S. News & World Report, believe that credit card rewards will soon become à la carte. Rather than being told what sort of benefits you’ll receive, you may soon have the ability to curate a card product that is a great match for your personal spending and redemption habits.

Some Cards Already Allow You to Choose Your Rewards

Of course, a few card issuers have already started allowing consumers a taste of this power.   With the newly-revamped Bank of America Cash Rewards credit card, cardholders are able to choose their 3% cashback category each month. Depending on whether you spend more money on gas, online shopping, dining, travel, drug stores, or home improvement/furnishings, you’re able to pick and choose your biggest cashback category. (You’ll automatically earn 2% back at grocery stores and wholesale clubs and 1% back on everything else.)   The US Bank Cash+ Visa is another card giving consumers a choice. With this card, you can choose a preferred 2% category as well as two categories in which you’ll earn 5% each month. You’ll then earn 1% back on everything else you spend.   The freedom of choice here is limited to cashback categories, of course… but it’s a start.

What the Future Might Hold

As of yet, no card issuers have announced products that would allow consumers to pick and choose their own benefits (outside of those aforementioned bonus cashback categories). However, with many industry experts believing that the ability to customize one’s card features is just around the corner, it may only be a matter of time.   If Bank of America finds great success in their card’s new rewards structure, we can expect to see more issuers following suit. And in issuers’ attempts to become the go-to credit card in consumers’ wallets — giving them benefits they need most and therefore promoting more frequent card use — I predict that next year’s big trend will be the slow introduction of à la carte benefits.   Personally, I’m all for it.   What say you? Would you change anything about your credit card usage habits if you were able to better customize the plastic in your wallet?      With credit card rewards shrinking, we examine the future of credit card rewards, including a la carte benefits. When can consumers expect this?

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As we finally come out of the pandemic, let’s to take a look at the best places to invest in commercial real estate in 2021 and beyond. Inflation has become one of the top issues for investors this year. If inflation does begin to accelerate, I believe owning real assets is one of the best

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With a cashback or rewards app, you can use planned spending to get extra perks, discounts, and actual cash. Here's best cashback and reward apps online.

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You should be able to enjoy your wedding day and wedding insurance lets you do that. It covers the unexpected expenses that come with hosting a big event.

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There is only one thing worse than not setting financial goals–setting ineffective financial goals. A perfect example of a worthless goal is, “I want to achieve financial freedom.” While it may sound good, we don’t know what financial freedom is, so how will we know when we have arrived? A slightly better goal is, “I want to be debt free.” But this goal also has shortcomings. After all, we will all be debt free eventually (when we are pushing up daisies), but that’s probably not what we have in mind. Setting workable, practical effective financial goals is really quite easy. They just need to be SMART. A financial goal, or any goal for that matter, should be Specific, Measurable, Attainable, Realistic, and Time bound.

Specific

Imagine if the goal of football was to get the pigskin down to the other end of the field. We’d be arguing over what the other end of the field means. Isn’t the 2 yard line the other end of the field? Of course, the goal in football is to get the ball into the end zone. The official language of a touchdown is even more specific: “When any part of the ball, legally in possession of a player inbounds, breaks the plane of the opponent’s goal line, provided it is not a touchback.” We need the same specificity when we set financial goals. Here are some good examples of specific goals:

• I want to be debt free.
• I want to make $100,000 from my blog.
• I want to save $2,500,000 for retirement.

There is more left to do with these goals, so keep reading.

Measurable

For a goal to be effective, it must be measurable. A goal to “make a lot of money” is not helpful because you can’t measure “a lot.” One of my goals for this blog in 2008 was to make $20,000. I set that goal, in part, because my wife and I decided to give 50% to charity, and we were hoping to give $10,000. This goal was easily measurable, and I’m happy to report that this year we ended up giving about $15,000 to charity from this blog, so we exceeded our goal! More on that later this month. One final note on measurable goals. There is a saying in the consulting business that not everything that can be measured is important, and not everything that is important can be measured. As true as this is, when it comes to goals, they are either measurable or they aren’t really goals at all.

Attainable

Setting attainable goals can be tricky. You certainly want to push yourself and strive to achieve as much as you can. But setting goals that even under the best of circumstances are not attainable will just lead to discouragement. I set my 2008 goal of making $20,000 from this blog this past January. At the time, I knew that I had made just over $800 from the blog in January, so a goal of $20,000 for the year was a stretch, but not ridiculous. I pushed myself, but kept the goal attainable. This aspect of goal setting reminds me of Casey Kasem, who always said at the end of his popular “America’s Top 40” show, “keep your feet on the ground, and keep reaching for the stars.”

Realistic

Setting realistic goals involves the methods we intend to use to achieve our goals. For example, a goal of having $2,500,000 at retirement by saving $5 a month under my mattress is not a realistic goal. Making $20,000 in 2008 from this blog by spending 1 hour a month blogging is also not a realistic goal (trust me!). An example of a realistic goal might be to pay off all credit card debt in 2009 by paying an extra $500 per month.

Time bound

This last element of SMART financial goals is really important. Effective goals have time limits, like the shot clock in basketball. Of course, not all goals are short-term. I would define a short-term goal as less than one year, an intermediate-term goal as one to five years, and a long-term goal as greater than five years. We need all of them. Long-term goals generally involve retirement, saving for a child’s education, paying off the mortgage, and so on. An example of an intermediate-term goal might be to save $15,000 in four years to buy a new car. And short-term goals are even smaller stepping stones to our long range goals. The lack of a time element is a problem with the three example goals I mentioned above. Let’s rewrite these goals to add a shot clock to each of them:

• I want to pay off all of my credit card debt by December 31, 2009
• I want to make $100,000 from my blog in 2009
• I want to save $2,500,000 for retirement by time I’m 65

Homework

Yes, I’m giving you homework. As we near the end of the year, it’s a great time to be thinking about financial goals. I started setting next year’s goals in October. I have goals for this blog and my personal finances, which are now intertwined. I’ll be writing more about financial goals at the end of the month, but now is the time to set your financial goals for 2009. Just make sure they are SMART.For financial goals to help us achieve results, the should be SMART--Specific, Measurable, Attainable, Realistic, and Time bound.

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Harvard University consistently is ranked one of the top universities in the world. But what if you got to Harvard University and still end up a nobody? When I say nobody, I’m just talking about being an average person working an average job. Not someone still living in mom’s garage playing video games all day

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People are living longer than ever, so does it still make sense to retire at 65? We've found 8 benefits of not retiring right away.

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LifeLock and Experian both offer some of the best identity theft monitoring services available. Here's a look to determine which is best for you.

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If you’re thinking about hiring an au pair, you know firsthand how much work is involved in raising kids. The pandemic switched life to extreme hard mode for working parents with young children. Thanks to the vaccine rollout, the peak of the pandemic seems to be behind us. However, we’re still homeschooling our son, at

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Mortgage protection insurance is one type of insurance that can offer you some peace of mind in the event something should happen to you.

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Life insurance can protect your business if you pass away. Small business life insurance can also protect your family from unexpected debt or liabilities.

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If you want to be happy, don’t make over $400,000 a year at your job. It usually requires long hours and lots of stress to make over $400,000 a year. Any envy about people making high incomes is misplaced. Further, if he gets his way, President Biden will eventually get around to raising the top

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For many 1099 freelance earners, there is little separation between their business and personal lives. Luckily, many personal expenses merge into business write-offs.

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The following is a guest post by FarmTogether, a leading online marketplace that provides accredited investors with direct access to institutional-grade farmland. FarmTogether is a long-time supporter of Financial Samurai. The mainstreaming of alternative investments and farmland investing is picking up steam. For example, FarmTogether recently closed on the largest single-asset crowdfunded farmland investment to

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After a year of lockdowns, travel restrictions, and uncertainty, we are all hankering for a vacation. But is it safe to plan a vacation in 2021?

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Whether it’s an apartment you want to rent or you're looking to price an investment property, these are the best apartment websites to begin your search.

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If you have $1 million to invest, the options can be endless. Below, we’ve sorted through the most financially-savvy moves you can make.

It may seem like you’ll never have $1 million to invest, but if you invest consistently over decades, you might build up that much wealth more quickly than you’d think. And if you manage to get a windfall with that many zeros behind it, it’s best to figure out ahead of time how you’ll invest it to keep it growing. So let’s say someone decides to give you, randomly, $1 million tomorrow. What will you do with it? Well, hopefully you’d consult with a professional who can give you advice for the best way to allocate your funds. But once you’ve decided to do that, your best bet is to choose low-cost, high-reward investment options. And, of course, you’ll want to diversify your investment portfolio. So to do that, here are seven options you can invest in if you have a million dollars.

Investment Type	Best For
Robo advisors	Low fees
Individual stocks	Controlling your investments
Real estate	Physical investments you can see
Bonds	Balancing your risk
Peer-to-peer lending	High-risk/high-reward

1. Pay Off Every Single Debt

First, if you have any major debts, you’ll want to pay those off. There’s some debate about whether or not you should pay off your house, so put some thought into this one. But, at a minimum, you should knock out any and all high-interest debt. Most of the investments below will not come anywhere near beating the 15%+ interest you’re paying for credit cards and personal loans. So get rid of those first so you have a great financial base to launch your investments from.

2. Be Sure You Have a Fully-Funded Emergency Fund

Again, before we start talking about investments, let’s be sure you’ve got your financial base in place. A fully-funded emergency fund of six months’ or more worth of expenses is your next step. For this, you’ll want to put the money somewhere that it’s liquid and insured, so look for an FDIC-insured savings account with a high yield. Some of the best options today are online-only and include CIT Bank, Ally Bank, and Capital One 360. These online options pass their low overhead on to customers in the form of higher APY, which right now might even be out-earning inflation. Also Read: Best Online Savings Accounts with High Interest of 2019

3. Max Out Your Retirement Savings First

With a million dollars to invest, you can definitely max out your retirement savings vehicles first, and using these tax-advantaged accounts should be your priority each year that you possibly can. If you already have money going into a company 401(k), consider a service like Blooom to make sure you’re getting the most out of it. And if you don’t already have an IRA, open one to use with some of the following investing options. Then max out those accounts before you direct money to your taxable accounts. Read More: Blooom Review – Finally, a Robo-Advisor for Your 401(k)

4. Try Robo Advisors for Solid Long-Term Investments

Any time you’re looking to make a big investment, big fees will have an amplified effect. So you’ll definitely want to look for the lowest-fee options that have a good yield when you’re looking to invest this much money. One option for that is to invest with a robo advisor. Using algorithms instead of individuals, these services make historically solid investing decisions but cost far less than traditional investment advisors. Some of our favorite options, like Betterment and Wealthfront, have very low fees and give you access to a variety of investment options. M1 Finance is another option that’s free to use with investing options for a selection of ETFs. Learn More: Best Robo Advisors

5. Invest In Your Values

If you’re interested in using that million dollars to spread some good in the world, you can do that while earning money through services like Wealthsimple. This particular robo advisor charges higher fees than the others listed here. But that’s for good reason. It offers a carefully-curated selection of investment portfolios including Socially Responsible Investing–featuring companies who are strong in certain values, such as producing lower carbon emissions or supporting gender diversity. While millionaires can definitely invest directly in such businesses, using a service like Wealthsimple takes some of the work and risk out of the process. Read More: Wealthsimple Investing Review

6. Consider Adding In Some Real Estate

Even with a million dollars to invest, you may not be able to outright buy property in some areas of the country. And if you do own a property on your own, you’re stuck with the headache of managing it. If you want to avoid that but still want to add real estate to your portfolio, check out options like Fundrise and RealtyMogul. They’re both great options, but Realty Mogul is particularly great for discriminating accredited investors who want to be choosy about the real estate projects they put money behind. Review: Real Estate Crowdfunding with Fundrise Review: Is RealtyMogul the Easiest Way to Invest in Commercial Real Estate?

7. Look at Lending for Big Returns

Another way to be choosy and to get a potentially hefty return on your investment is with a peer-to-peer lending platform. Options like Lending Club and Prosper are great for lending your money to individuals who need to consolidate debt, fix up their home, or whatever. When you invest in these platforms, you can create a portfolio of loans that you partially help fund, so that you can spread your risk across multiple loans quite easily. These platforms have historically been great for investors and could net you some serious returns. Read more: LendingClub Review – Invest on the Largest P2P Lending Platform

8. Consider Balancing with CDs and Securities

Of course, even millionaires have to worry about keeping a balanced portfolio and ensuring that not all of their capital is in riskier investments. That’s where options like CDs and securities come in. These have traditionally been a way to out-earn inflation so you aren’t losing money with it sitting around. But they’re also much safer than any other types of investments. So be sure you talk to your financial advisor about the best way to utilize tools like these to bring balance to your portfolio.

Track Your Investments

As you begin pulling together your various investments, it’s important to figure out how you’re going to keep track of it. Sure, you could pay someone to do it all for you. But that would just eat into your returns and your ability to grow your money. If you’d prefer to keep an eye on your investments yourself, check out services like Personal Capital, which help you pull together all the various threads of your financial life, from your budget to your investments on different platforms. Learn More: Personal Capital Review: A Free Wealth Management Tool Personal Capital can help you track your investments’ performance, spot potential problems, and keep an eye on your overall portfolio balance. It can also run your day to day budget, so it’s a very flexible platform that’s worth using once you’re ready to start keeping track of all this money. The most important thing to remember is once you hit that million dollar goal mark you’ve been saving for, the work isn’t over. You could easily lose it with celebratory spending. Have a plan in place for how you want to make this money work for you. With the right investment vehicle, you’ll be cruising down the road towards financial freedom.

FAQs

How much interest will I earn on $1 million dollars?

To use a basic example, say you had an account with $1 million that paid 4% annually–in such a case, you’d earn $40,000 per year. What’s great about compounding interest, though, is by leaving your money in the account, interest would accumulate on the new balance. So after the second year, assuming no other changes, you’d have $41,600.

How should I invest $1m to make $2 million dollars?

To effectively double $1 million, you’ll need to use the rule of 72, which is a formula that has you divide 72 by your expected annual rate of return. So, for example, if you’ve invested $1 million and anticipate a 5% rate of return, you can expect to double your million into two within about 14.4 years [72 / 5 = 14.4]. Now, to get a 5% rate of return, you should invest somewhat aggressively, such as in real estate, peer-to-peer lending, or using a robo advisor.

How can I invest $1m wisely?

To invest $1m wisely, you should look for investments that will net you an average of 4-6% on average, annually. For this, you should look at investments like buying a business, investing in index funds, and investing in large-scale commercial real estate projects. Regardless of what you choose, though, you should diversify your portfolio – especially investing this much.

What’s the best way to invest $1m short term?

The best short-term investment for $1m is a low-cost index fund that broadly diversifies your investments in stocks across a variety of industries. Alternatively, you can invest your $1m in a robo advisor which will pick low-cost investments across different areas for you.

Can I retire with $1 million dollars?

You can retire with $1 million dollars if you manage your withdrawals appropriately. The Rule of 4 says that you should withdraw no more than 4% of your total portfolio each year. Assuming you’re earning at least 4% in returns, you can effectively live off of interest-earned without touching your principal balance. With a $1 million portfolio, this is $40,000 per year.

How can I earn passive income with $1 million?

The best way to earn a passive income with $1 million is to put it into something like real estate, where you own the property and can collect rent each month. With $1 million, you could invest half of that in a few properties that generate monthly income, pay a management company to manage it for you (so it’s completely passive), and invest the other half in a broadly diversified index fund. This way, you’re not opening yourself up to too much risk.

Bottom Line

As you can see, there are many ways you can invest $1 million. The first thing to recognize is that you’ve amassed this much money, which is more than many people can say for themselves. Next, though, you need to determine a strategy and focus on executing that strategy (and stick to the plan!) so you can make that $1 million last and grow even more. Read More:

• How To Start Investing
• How To Invest With Little Money
• How To Invest 1k
• How To Invest 10k
• How To Invest 100k
• Best Short Term Investments

If you have a million dollars ready to invest, here are seven options for how to allocate the funds. Among the best bets are low-cost, high-reward investment options. And, of course, you’ll want to diversify your investment portfolio.

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One of the benefits of property ownership is that you can remodel based on your tastes. Further, you can increase the value of your property by expanding its livable space. When the time comes to remodel, you will face a dilemma of whether to remodel with permits or without permits. In this post, we’ll go

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Dealing with financial stress isn't easy but there are some helpful tools available--some for free--to guide you down the path towards financial wellness.

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Never let anything get in the way of pursuing your dreams. If you do, you will regret it. Remember that annoying kid in school who made fun of you for getting a good grade? The goal was to make you feel bad at doing well so he wouldn’t feel so terrible about himself. I had

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Even if you're just starting out, a dedicated business account can be a great way to manage your money. Here are the best business checking accounts.

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Are you a parent worried about getting your kid into preschool or private grade school? Ever wonder about the preschool or private grade school interview process? Are you wondering what type of interview questions they will ask and what type of kids get in? After three years of navigating the preschool admissions process for my

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Haven't a pet isn't cheap, so you might as well get some perks out of all those pet expenses! These are a few of the best credit cards for pet owners.

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Stimulus checks are on the way for most Americans. Here are the smartest ways to get the most out of your money.

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The more I drive, the more I’m aware of one thing: The roads are jammed with drivers who couldn’t seem to care less about the high cost of operating a motor vehicle. Racing to red lights, making like jackrabbits from stop signs, maniacally risking rollovers and head-on collisions, they appear intent on driving themselves to the poorhouse, with a stop in a hospital ICU along the way. These drivers seem intent on sending their their car insurance payments through the roof. I’ve rounded up a quintet of ways to guarantee your car insurance rates drain your bank account. Get a ticket for reckless driving: If you’re a motorist whose brand of devil-may-care driving would be viewed as outrageous even at a demolition derby, you’re one of the best bets for sky-high insurance premiums. The Uh-Oh! Calculator on Insurance.com lets users compute car insurance premium hikes resulting from 14 typical violations. Reckless driving results in an average rate hike of 22 percent, higher than a first-offense DUI, speeding 30 mph over the speed limit or any other offense. Reckless driving, you say? It’s more like reckless abandonment of your cash. Cause an accident: Maybe you are one of the rash drivers above. Sooner or later your mindless motoring is going to catch up with you, and you’ll cause a crash. When you do, how do you think your auto insurance company will react? Your insurer will probably raise your rates at your next renewal – with the percentage determined by your insurer. If you see yourself in any of the above scenarios, I’d suggest slowing down and driving more carefully. Owning a Mercedes-Benz CL 600 Coupe: Owning this 12-cylinder bad boy is a sensational way to send your ego, social cachet and insurance rates into the stratosphere. You had better have plenty of disposable income even after you lay out $160,000 at the Mercedes dealership. That’s because even with a good driving record, you can’t hide from high rates in this car. The CL 600 has the dubious distinction of being the single most costly vehicle to insure among 2013 models, according to Insure.com’s. See the rankings. Move to Louisiana: The Pelican State has plenty going for it, from Mardi Gras pageantry to jazz, Zydeco and tantalizing Cajun-inspired cuisine, to name just a few. But weighing heavily against the state are the highest premiums in the nation, according to Insure.com’s annual state-by-state comparison of car insurance rates. You won’t make out much better by moving to Michigan, Georgia, Oklahoma or Washington, D.C., all of which are plagued by high average rates. Add a teen driver: The day they get their driver’s licenses is the happiest day of many teenagers’ young lives. If their parents seem less euphoric, it’s no surprise. And that’s not just because drivers under 25 are four times more likely to die in a crash. It’s also because adding a teen driver to your auto insurance policy can result in insurance premiums escalating by 50 to 100 percent, according to Loretta Worters, spokesperson with the Insurance Information Institute, an industry trade group. If you want to squeeze out the best rates possible after adding a teen driver, there are many possible strategies. They include shopping around for good student discounts, putting your teen on your own policy (if you have a good claims record), accepting a higher deductible, getting your teen a conservative sedan rather than a sports car, keeping the car in your name and seeking a rate reduction once he goes away to college. And if you’re a Louisianan who owns a Mercedes CL 600 Coupe, has a teen driver and has just been cited for reckless driving after causing a crash? They say bicycling is getting more popular all the time.Cars are a necessary but costly expense for most of us. Here are a few crucial ways to make sure you're paying as little as possible.

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It dawned on me a severance package can be valued like a risk asset (stocks, bonds, real estate etc). The value of a severance package can go up or down based on its projected income, your need for a financial buffer, and your ability to negotiate properly. Enhanced federal unemployment benefits since the pandemic began

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If you believe your bank account has been hacked, here's what you need to do. We also give you some of the best tips to avoid being hacked.

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Temporary auto insurance technically doesn't exist in this country, but there are still options for drivers looking for short-term or low-cost coverage.

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Life insurance is a good idea if you are still on the path to financial independence. If you have debt and dependents, getting life insurance is a no-brainer. But do you still need life insurance when you’re financially independent or retired? To answer this question, we must first define what financial independence means and how

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Down payments require some serious cash. Even a bare-minimum 5 percent down payment on a conventional loan means coming up with about $9,800 for the current median home sale price, listed on Zillow, of $196,100. And that’s before adding in closing costs. You probably don’t want to wait forever while you chip away at a down payment. So, while much of the standard advice for saving money still works, you may want to take more drastic measures to save a down payment quickly. If you’re working to save money for a down payment, here are tips to make it happen faster and easier.

1. Open a separate savings account

Having a separate savings account for your down payment is useful for a couple of reasons. Your down payment won’t be mixed with other funds and spent accidentally. It’s also easier to track your progress; just look at the account balance. Many high-yield savings accounts, such as Ally and Capital One 360, are free to open and allow automatically recurring deposits. Plus, you can earn interest on your deposits, which can add to your savings.

2. Set a date for you savings goal

A clear-cut strategy to accomplish your saving goal is to use simple math based on dates and amounts saved. Once you’ve figured out how large a down payment is needed:

1. Determine how much you can reliably put into savings on a weekly, bi-weekly or monthly basis. Ideally, this coincides with your payday.
2. Divide your down payment amount by the regular deposit amount to determine how long it will take to save. Or use a goal savings calculator to test the numbers.
3. If you’re not happy with the current time frame, you’ll need to save more to move it up.

Now that you know what you need to save, here’s how to do it.

3. Decrease other debt payments

If you’re diligent about paying off debt and tend to make extra payments, you may want to consider scaling back and put that money toward your down payment instead. Assuming that saving a down payment is your top financial priority, you might not mind paying extra in interest if it means more savings for a down payment. If you hold federal student loans, consider consolidating and changing the repayment terms. For example, choosing the extended repayment plan for federal loans can reduce monthly payments by extending your term to 25 years. Take the savings from the monthly payment and funnel it into your down payment account.

4. Borrow from a retirement plan

Although taking money out of your retirement plan can be a bad idea in the long term, certain retirement plans have built-in benefits to do this. You can also borrow up to $50,000 from a 401(k), typically up to half of your vested amount. First-time homebuyers can withdraw up to $10,000 from IRA accounts without penalty  This is a big advantage, because you’re typically subject to a 10 percent penalty on anything you withdraw preretirement age. Traditional IRA holders will still have to pay any applicable taxes on their withdrawal. With Roth IRAs, the funds can be removed penalty free, but dealing with taxes can be a little more complicated. Be sure to check your tax liability or consult a tax professional in these cases. If this approach interests you, check out our detailed article on How to Use Retirement Savings to Buy a House.

5. Check your credit early

Your credit score is a major factor when it comes to home mortgages. It’s the difference between the best interest rate, a good interest rate, or being turned down for a mortgage. Check your credit score at least several months before applying for a mortgage. If your score is less than excellent, work to increase your credit score as you save for a down payment. If you’re required to buy private mortgage insurance because you put down less than 20 percent, having a higher credit score can reduce the cost of this coverage, too.

6. Use cash windfalls

Every now and then, a chunk of money falls into your lap. For many, this could be every tax season once the refund comes in. You might also inherit money or sell property that brings in some cash. Direct this money into your down payment savings instead of spending it. The average tax refund of just less than $3,000 is a nice chunk of money that could take months to save if you’re only taking a little from each paycheck.

7. Find savings in your budget

The most direct way to start saving money is to check your budget and start trimming wherever you can. Saving within your budget really depends on how badly you want to save a down payment. Are you willing to cut out restaurants, vacations and other big expenses until you get your house? It’s not solely about eliminating expenses, it’s about finding ways to save on things you must spend on. Expenses like insurance rates can be negotiated and lowered, providing decent savings that can be banked toward a down payment. Our “55 Painless Money Saving Tips” can give you even more ideas. Don’t rule out drastic measures, like living without a car or going from two cars to one. It’s radical, but it can save thousands of dollars a year by cutting out car payments, insurance, gas, repairs and taxes.

8. Leave some cash behind

Even if saving a down payment is your top goal, putting too much of your savings toward a down payment can be dangerous. When emergencies arise, like injury or a lost job, you’ll need some money to fall back on. Leave your emergency fund untouched, or you might risk losing your newly bought home to foreclosure if you can’t make the monthly payments.Before you begin house shopping, one of the first things you'll need to figure out is how much money you can put down. Here are a few tips to get you there.

The post 8 Tips for Saving a Down Payment for a Home appeared first on The Dough Roller.

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The online tax preparation software landscape is very competitive. We examine the best tax software for self-employed, freelancers & small business owners.

The post Best Tax Software for Small Business appeared first on The Dough Roller.

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Bad pricing estimates by Zillow and Redfin are commonplace. Despite starting in 2004, Zillow’s estimates are especially unreliable for some reason. Over years of comparing the two, I’ve noticed Redfin’s pricing estimates are more accurate. Further, Redfin is much quicker to update the final sales price of a home after it goes pending. But even

The post Use Bad Pricing Estimates By Zillow And Redfin To Your Advantage appeared first on Financial Samurai.

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Cash management accounts allow you to invest, bank, and set aside your cash for short-term savings all in one spot. These are the best.

The post 10 Best Cash Management Accounts appeared first on The Dough Roller.

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Senior-friendly bank accounts come with perks such as no monthly fees, free checks, and more. Here are the best bank accounts for senior citizens.

The post Best Bank Accounts for Senior Citizens appeared first on The Dough Roller.

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There are lots of options when it comes to tax filing software. These are a few of the best choices with the right features for investors.

The post Best Tax Software for Investors appeared first on The Dough Roller.

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A comparison between Robinhood, Webull, and M1 Finance, so you can get a holistic view of each platform and determine which is right for you.

The post Robinhood vs. Webull vs. M1 Finance appeared first on The Dough Roller.

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There is a never-ending debate between real estate versus stocks as a better investment. Currently, ~40% of my net worth is in real estate while ~30% of my net worth is in stocks. Perhaps the main reason why is because I believe real estate is less risky than stocks. As I’ve gotten older and thankfully

The post Why Real Estate Is Less Risky Than Stocks And The Irony That Follows appeared first on Financial Samurai.

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Changing jobs can be exciting. But what if you have a 401k loan? This article looks at whether you should borrow money to repay a 401(k) loan when you change jobs?

One feature of many 401(k) retirement plans is that you can borrow money from your own account. Regulations don’t require that 401(k) plans offer this option. But many do. Financial gurus have written a lot about the pros and cons of 401(k) loans. It’s still a hotly-debated topic. One of the biggest potential drawbacks comes into play if you leave your job while you still have an outstanding loan from your 401(k) plan. So today, let’s take a look at what happens when you pull money from your 401(k) and whether you should borrow elsewhere to return the funds to your retirement account.

Leaving a Job With an Outstanding Loan

While many financial advisors would recommend (with a passion) that you never borrow money from your retirement plan, the fact is that it happens. Sometimes, an opportunity may present itself that warrants the 401(k) loan. Other times, you may make the choice out of sheer necessity. After all, a 401(k) loan is typically smarter than other “quick cash” options like payday loans. If you’re considering a loan, know that you’re not alone. In fact, according to a 2014 study by the Employee Benefits Research Institute, 21 percent of employees who were eligible for a 401(k) loan had one outstanding. With so many people owing money back to their retirement plans, though, there’s the potential for an issue. The biggest problem, as mentioned, is when you leave your job and haven’t paid the loan back in full. This may be because a better opportunity presents itself and you choose to change jobs. Or it might be because you are laid off or fired. When this happens, you generally have two options: (1) pay back the loan in full within 60 days, or (2) …don’t. If you follow option two, just know that the IRS will treat the loan as an early withdrawal from your 401(k) plan. With very few exceptions, they will then smack you with a 10% penalty on the outstanding loan amount and also require you to pay taxes on the distribution. Thus, you could easily end up paying 30% or 40% of the outstanding loan amount in penalties and taxes. It goes without saying that failing to pay back the loan within the allotted time period can be a very costly decision.

How to Pay It Back Quickly

The problem that often arises is that folks want to pay back the 401(k) loan within the 60-day window. But they simply can’t afford to do so. This is particularly true in difficult economic times or when someone is unexpectedly let go from their job without time to financially prepare. In either case, borrowers often lack the available funds to repay the loan in the 60-day period. That leads us to an important question: Should you borrow to repay a 401(k) loan? The short answer, in my opinion, is absolutely yes. And to my surprise, it’s also Dave Ramsey’s advice. And we all know how much he preaches against non-mortgage debt. It may seem a little like borrowing from Peter to pay Paul, but it has its merits. With the taxes and penalties you’ll owe if you don’t repay the 401(k) loan right away, the cost will almost always be greater than the cost of a short-term personal loan at reasonable rates. In addition, by not repaying the 401(k) loan, you will forever remove that money from your retirement investments. Thus you’ll lose the tax-deferred return on your 401(k) investments forever.

Where to Borrow

Of course, one big question still remains. Where should you look to borrow money to repay a 401(k) loan? Here are a few places to look if you need to quickly return borrowed funds to your retirement account before being hit with fines and penalties:

• Home Equity Line of Credit (HELOC): Perhaps the first option would be to tap into a home equity line of credit. Equity lines generally come with reasonable interest rates and are easy to access if you have some equity built up in your home.
• 0% Balance Transfer cards: Another potential option is to take advantage of one or more 0% balance transfer offers. Before going this route, however, make sure you can pay off a 401(k) loan balance with the balance transfer card(s). Depending on how much you borrowed, you may still come up short. Also keep in mind that the introductory rate periods are frequently as low as six months. After that, the interest rates adjust to whatever regular APR applies to the card. That can be as high as 20-30 percent! This option is best if you can repay the money transferred well before the introductory APR expires.
• LendingClub: A popular peer-to-peer lending source, LendingClub offers unsecured loans up to $25,000. Depending on your credit history, credit score, and other factors, you can obtain a loan at a reasonable interest rate. All loans must be repaid over three years, although you can choose to pay off the loan sooner.
• Unsecured Line of Credit: You can obtain unsecured lines of credit from most banks and credit unions. Interest rates will vary significantly based on your credit history. I have an unsecured line at Citibank that I rarely use, but it does come in handy for short-term loan needs.

So, what’s your take? Should you borrow to repay a 401(k) loan if you don’t have the funds available to repay the debt?401k loans can be convenient, but they also pose some unique tax problems if you decide you're changing jobs or lose your job. Find out what you need to know.

The post Changing Jobs? Should You Borrow to Repay a 401k Loan? appeared first on The Dough Roller.

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In general, buying stocks on margin is a bad idea. However, the idea of buying stocks on margin has increased due to a long bull market and a drop in interest rates. More people are trying to get rich as quickly as possible thanks to what we see and hear on the internet. Let’s quickly

The post Buying Stocks On Margin Is A Bad Idea: You Could Easily Lose Everything appeared first on Financial Samurai.

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