Finance Xpress

Have you ever bought something thinking that it would improve your mood?

I'm sure you have. In fact, we probably all have!

When I was younger, I used to have a crazy spending problem. I would either go out to eat or spend money on clothing after a stressful day at work.

I would tell myself that I deserved it for having such a bad day. 

But then, the bad days happened over and over again.

Instead of trying to find the root of the problem, I would simply spend money that I absolutely did not have.

While I didn’t go into credit card debt, I was close to it. I spent money on things I definitely didn’t need, and this was causing me to live in a paycheck to paycheck lifestyle.

To learn how to stop this problem, I had to address what was really causing my stress. It took time, but once I learned what the issue really was, I was able to focus on things that really made me happy. 

Spending money to make yourself happy is nothing new, and many people call this emotional spending. You may head to the mall and buy a new shirt when you've had a bad day at work. I’ve even heard of people who have gone as far as buying a new car to feel better about themselves.

Spending like this might make you feel like your worth is “validated,” it might be done to impress others, make you feel better about your situation, and so on.

I hate to break it to you, though, buying things most likely won't make you a happier person, especially when it can cause lots of financial stress.

Sure, some things can genuinely make you happy. But, if you can't afford it or if you are only buying things to impress others, then you have other issues that should be resolved before you try to buy your happiness.

Instead of emotional spending, you should focus on what makes YOU happy.

That can be hard for many people because it’s easy to think that buying things will make you a happier person.

However, while you make get a little “high” from buying something, you may crash later, feeling even worse than you did before.

And, emotional spending can easily get out of control. As your financial situation starts to get worse, you might be even more tempted to buy things to try and feel better. This is how emotional spending can quickly spiral into debt.

Considering the following statistics, I’m going to assume that buying things causes the average person more stress than happiness:

• 78% of people live paycheck to paycheck (Forbes). 
• 28% have no savings whatsoever (Bankrate).
• The average U.S. household with at least one debt owes around $144,100 (Lending Tree).  

The average U.S. household has a lot of financial issues, and more emotional spending can make it even worse.

Usually, you'll regret what you have purchased or feel other negative feelings, and in today’s post we’ll talk about why this particular type of spending won’t make you happy.

Now, I'm not saying that all spending is bad. Spending is fine, as long as it's budgeted for, you can afford it, and it actually makes you happy! In this blog post, I'm referring to the opposite type of spending — the type where you're trying to impress someone, spending money to try and feel happier, to validate your worth, and so on. 

Related:

• 5 Tips To Stop Your Emotional Spending Habit
• How To Reduce, Reuse, And Save More Cash
• Pay Off Debt And Break Free Of The Debt Cycle – You Can Do It!
• Is Your Job Costing You Too Much Money Each Year?

Before you head out to buy something to improve your mood, please think about what is in today’s post.

There will always be something else.

I know many people who are always buying the latest and greatest stuff. Every year they will buy the newest iPhone, they'll upgrade their laptop, car, and more. Many of these people are in debt and live in a paycheck to paycheck lifestyle.

But, are these people actually happy?

I don't know, but I don't see how upgrading your phone every single year could make you a happier person if you can't afford it.

The thing is, there will always be a new model and style of something. If you want the latest and greatest thing, you may be disappointed because you can never fully get the newest or best things out there — there will always be more.

Emotional spending can lead to debt.

Like I said, emotional spending is when people spend money and buy things because they believe that it will make them happy. 

According to NerdWallet, the average U.S. household (who has debt) has an average credit card debt of $6,829, and I’m sure some of that is due to emotional spending.

Emotional spending occurs for many different reasons. You may have had a bad day at work, a fight with your loved one, or something else. You might even be spending because you are stressed out about the amount of spending you have done, which can quickly spiral out of control and cause you to lose control of your life.

Unfortunately, emotional spending usually just leads to more problems, and most often, never cures anything.

In order to get rid of your emotional spending habits, I recommend that you:

• Calculate exactly how much debt you have. You’ll most likely be shocked, and hopefully this will persuade you to change your spending habits and the way you deal with stress.
• Understand why you spend when you’re stressed. Are there specific things that cause you to start spending emotionally? In order to stop stress spending, you need to really think about why you have this problem. Without understanding your problem, you may continue to fall into the same cycle over and over again.
• Think about your financial goals, so that you can stay motivated.
• Find different ways to deal with stress, like going for a walk, talking to a therapist, getting more sleep, and so on.
• Create a budget and stick to it.

What you buy doesn't define who you are.

The amount of stuff you have most likely won't make you happier, and your stuff doesn't define who you are.

You're more than that pair of pants…

You're more than your car…

Many people feel like the items they purchase represent them somehow, but you are much more than that. Who you are is defined by your actions, not what you own. 

Being kind to strangers, helping your friends and loved ones, true happiness, etc. — those are the kinds of things that are important.

Buying things to pretend to be someone else will only cause problems. You should only purchase things that you truly need or want.

Who cares about what everyone else has!

Emotional spending can prevent you from reaching your goal.

You may be preventing yourself from reaching a financial goal by purchasing more and more. This can lead to additional stress, sadness, a feeling of defeat, and more.

The next time you are going to purchase something that is just a “want,” you should think about whether or not it will hold you back from your goal.

Think about how amazing it will feel to pay off your debt, be able to go on vacation, and more. Those positive feelings will last much longer than what a new pair of jeans or shoes will do for you.

The more you buy, the more you have to maintain.

With every item you add to your life, you will spend more and more time and money maintaining things. Things may get broken, lost, stolen, dirty, etc. They may need to be repaired or even replaced.

Who wants all of that stress?

The initial cost of purchasing an item may not be the only cost either. You may also need to pay to store the item, organize it, pay interest charges if you bought it with a credit card, and so on.

This can lead to more stress, more time spent on the item, and so on.

What makes one person happy won't necessarily be the same for you.

I’m sure almost everyone, at one point in their life, has felt the need to keep up with someone else.

It could be jealousy, feeling that you deserve the same things in life, thinking that this is normal, or something else.

You may want the same car, the same house, the same designer clothing, and so on.

The problem with this is that it can make you go broke.

When trying to keep up with someone else, you might spend money you do not have. You might put expenses on credit cards to (in a pretend world) “afford” things. You might buy things that you do not care about. The problems can go on and on.

This can lead to a lot of debt.

Buying the same things as someone else is not worth it because:

• You will never be happy, no matter how much money you spend.
• You will constantly compare yourself to others.
• You will go into debt because that’s the only way you feel like you can keep up with others.
• You will have a loan payment for everything because that’s the only way you can “afford” things.
• You won’t have any money leftover for retirement, an emergency fund, etc. because you’re spending it all on things you do not need.

Instead, you should figure out why you want to keep up with someone else, think about your own life and your own goals, realize that jealousy won’t get you anywhere, and try your best to live within your means.

You're not impressing anyone.

If you're purchasing things just to impress others, well… you will be disappointed. For the most part, no one cares or will even know that you bought something new.

You should do what makes you happy and only buy things for yourself, not to impress anyone else.

Money problems may lead to stress and other problems.

If you buy things that you cannot afford, this can lead you down a path of stress and other financial problems.

You may find yourself with more credit card debt than you can handle, personal loans, high interest charges, stuck in a paycheck to paycheck lifestyle, and more.

Who wants all of that?

Have you ever bought something to make you happy? Do you think that buying stuff can make a person happier?

The post Can Buying Things Really Make You A Happier Person? appeared first on Making Sense Of Cents.

The first day of preschool was tough. Not so much for our boy, but for my wife and me.

My immediate thought was, so this is where creativity comes to die. My wife and I spent three hours a day with him for the first week to help with the transitioning process.

During this time, I observed how other kids of varying developmental levels behaved. I saw kids having to wait their turn, listening to instruction, and trying to communicate with other 2.5-year-olds who weren’t good communicators.

As I thought about my negative reactions while soaking in the hot tub, I came to realize what I disliked about preschool was exactly what I disliked about work.

Preschool Was Like Work

At work, despite being a strong performer, I had to wait for a colleague in NYC to first make Managing Director before I could make managing director because he had been promoted to head of the desk. Although he was several years older, we had the same years of experience working at the firm, and I was managing a large book of business in San Francisco. Screw that. After already being at the firm for 11 years, I didn’t want to wait five more years to get promoted. So I left.

At work, I had to listen to new hires, who didn’t know my business, tell me how to do my job. I found this tremendously annoying.

At work, I had to attend endless meetings and hear people blabber on and on about what we should do. Ironically, the time spent in meetings significantly cut into the time I needed to do the very things we were being asked to do! Seriously, having meetings to prepare for upcoming meetings is a waste of time. But they must be conducted to justify a manager’s existence.

Unconsciously, I was associating my initial dissatisfaction with preschool with my tremendous unhappiness at work. I felt terrible subjecting my son to a system that I had so enthusiastically escaped from in 2012. In some ways, it felt like I was sending him to prison.

But after a of couple weeks of preschool, I started to have a change of heart. Three months later, I believe preschool is worth every penny and more!

Why Preschool Is Worth The Cost

1) Preschool will save a parent’s sanity. It wasn’t until we finally dropped off our boy, wiped away our tears, and left did we start to appreciate preschool. Initially, during the first month of preschool, we finally both got three hours of free time. We used this time to catch up on errands, tidy up the house, relax in the hot tub together, go on brunches, and to write.

Both my wife and I had been going nonstop for 30 months in a row raising our boy. Our days would often go from 5 am – 11 pm because he wasn’t a good sleeper and has the endless energy of the sun. I was also on a mission to fulfill my 10-year goal of posting 3X a week, while my wife was on a mission to make sure he had an enriching a home environment as possible.

Preschool gave us the vacation from parenthood we so desperately needed. When he started going for 6 – 8 hours a day, I felt like the heavens had parted. My happiness went from a 6 out of 10, back up to an 8 out of 10 on average.

2) Your child will learn to be more independent. It must be scary for a child to go from always being around his parents to suddenly be in a room full of strangers. But over time, your child will adapt, learn the names of everyone, and figure out how to stand his or her ground. Our children also need to learn how to interact well with others.

As the son of foreign service parents I clearly remember the scariness of being the new kid in school every 2-to-4 years. But I believe the frequent moves forced me to develop social skills and greater self-confidence. Today, I love going to all types of social gatherings and have no fear of talking to anybody.

3) Your child will experience and learn conflict resolution. Amongst toddlers, inevitably bad things will happen. The first time I was told a child had bitten our son, I was shocked and angry. But these unfortunate incidences are used as teachable moments by the teachers to explain to the children what they should and should not do. These moments are used to teach kids how to apologize and offer forgiveness.

Throughout high school, I got into plenty of fights and arguments. It is due to these experiences that I’m able to better control my emotions during conflict resolution as an adult. For example, being calm after my kidnapping in Beijing helped me get out of a scary situation. Further, I’m not afraid to battle with anybody when insulted or threatened.

4) Your child will learn new habits. One of the biggest reasons why my wife and I were so exhausted as stay at home parents was because our boy didn’t take regular naps after he turned 18 months old. Therefore, one fear we had was that our son would be disruptive during the preschool’s nap time between 12:30pm – 3pm. But surprisingly, our boy napped the very first day and has continued napping every day for months!

We postulate the reason why he naps at school and not so much at home is due to peer pressure and conformity. At home, he has more freedom to do as he wishes. But at school, he has to listen to his teachers and follow the habits of his peers.

Peer pressure and conformity aren’t generally looked upon in a positive light. But we all need to demonstrate some sort of conformity if we are going to make our way through society. Eventually, we can all be irreverent, but not before achieving financial independence.

5) You’ll learn how soft or hard you really are as parents. For first time parents, preschool can be particularly helpful to know where you stand as disciplinarians. You can learn from the good and bad habits of other parents by observing how their children act in a school setting. From your observations, you can better calibrate what you should be doing more or less of.

My wife and I are probably on the softer side because of our personalities and also because we don’t have a strict schedule to follow. For example, since we don’t have to get to work by 8 am, there was no urgency to wake our boy at a set time, prepare breakfast, brush his teeth, and so forth. The absence of routine probably hurt all of our ability to sleep more soundly.

You may also learn what you’ve been doing right as parents. They say that speaking to your child as much as possible is good for learning. Therefore, we both talked to him all day long in English, Mandarin, and Japanese. But we really didn’t know useful our efforts were until we went to school after our teachers said they’d be teaching the class how to count to 10.

My wife and I looked at each other funny because months early we had already taught our boy how to count to 1,000. We aren’t tiger parents. We just continued on with the counting once he understood the progression. This is one of the benefits of having 1:1 instruction and not having to wait for other children.

6) Your kid won’t get “dumbed down.” One of my concerns was whether my son would regress or get bored if he was being taught something he already knew. Fortunately, that doesn’t seem to be how the young brain works. Instead of regressing, it continues to absorb new information.

For example, even if your daughter already knew how to count to 10, she could learn how to enunciate the words better. She could also learn how to combine the numbers to form new numbers.

Another concern was how our son would interact with one of the less verbal kids at school who also happens to bite others. Would that kid, who benefits greatly from preschool, drag other kids down with him? So far, it doesn’t seem to be the case.

If parents continue providing supplemental education at home, I think our kids will continue to grow just fine.

7) You’ll develop a support network of other parents. Spending the vast majority of your time only with your partner and child can get mundane after a while. Just think back to how much fun you had going out at night with your friends before you had children.

By sending your child to preschool, you join a community of people with a strong common interests. There seems to always be a fundraiser or a birthday party to go to, which is a great way to vary your weekend routines. It’s nice to be able to get tips and advice from other parents who have gone or are going through your same issues as well.

8) Your child will participate in new activities. You can do plenty of fun things with your child at home, but there are certain activities like painting, claymation, and science water experiments that are much easier to do in school. Your child will also be exposed to new books and toys to keep him or her more stimulated throughout the day.

Our preschool has a special activity after nap time every day such as music class, Spanish class, and dance class. It’s really nice to give your child exposure to as many new things as possible. You never know what might stick!

9) A lifesaver if you are pregnant or have a baby. Being pregnant or caring for a baby is already difficult. Concurrently caring for a baby and a toddler who won’t stop running around and getting in trouble takes Herculean strength.

By sending your toddler to preschool, not only do you feel great that a highly qualified person is teaching and caring for him, but you feel great that you get to spend more time taking care of your body or your baby.

It is also natural for the older sibling to get jealous of the baby sometimes. Therefore, this separation may help lessen the jealousy and increase the harmony at home. When in doubt, child specialists say to pay more attention to your toddler than to your baby, since your toddler better understands what’s going on.

The Downsides Of Preschool

Nothing is ever perfect. Here are the downsides of preschool you’ll likely experience.

1) More sickness. Despite a “don’t come to school if your child is sick” policy, I’m sure some kids still do because parents have to work. Also, nobody knows exactly when a sickness stops being contagious.

Although our boy has yet to contract a serious illness, he has come down with a fever, cough, and a persistent runny nose since starting preschool. He then passes his sickness onto us.

So far, my wife and I haven’t gotten sick at the same time. But this day will likely come.

2) More chance of danger. At home, our boy is as safe as can be. We’ve padded all corners and edges, hold his hand on walks, and always have our eyes on him. At preschool, even with a small 6:1 teacher:student ratio, that’s still not as good as having a 1:1 or 1:2 ratio.

Your little one will probably get hurt more often in preschool. Your child will probably experience physical altercations like hitting and bitting as well.

Our biggest fear is that our son will get hit by a car because every day they walk to Golden Gate Park three blocks away. Know what type of safety precautions are in place for your children and make suggestions if warranted.

3) Activities at home may change. One of my favorite activities I used to do with my son before he went to preschool was go for a 1-1.5 hour walk around the neighborhood. We’d go for a walk every day and he’d be so excited to describe all the different garage doors he’d see.

Now, he hardly ever wants to go on a walk with daddy. And when we do, it’s for maybe 15 minutes and then back home we go because he misses mommy.

4) Cost. Most cities in American don’t have universal preschool. Therefore, expect to pay between $800 – $2,500 for preschool a month, depending on location and amount of care.

We pay $1,950 a month for full-time care, plus another $50 – $100 a month for fundraisers. We could go down to part-time care three days a week for $1,650 a month, but we prefer the flexibility.

Preschool Is Worth It

For most parents, preschool is a necessity to help support their careers. If your child can learn while also giving you the ability to earn, that’s a great combination.

For us, preschool has allowed us to gain back our freedom. During the weekdays, we’ve gone back to doing more of things we love to do, like write, play tennis, go out to eat, go to the beach, nap and so forth.

I’m noticeably happier now that I have 6-8 hours of free time a day again. Make no mistake. Children are a joy, but they also bring a tremendous amount of suffering, sadness, fear and frustration too.

As long as your children enjoy preschool, preschool is one of the best things ever for children and parents. Make sure you consistently ask your kids how their day was and whether they are having fun. If they’re having a great time, then keep on having them go. If they’re not, then find them a new school or keep them at home.

Every child adapts to school differently. It’s up to us as parents to find the best environment for our children to learn.

Parents, anybody go from a negative initial impression to a highly positive impression of preschool? What are some other pros and cons of preschool I may have missed?

Related articles:

How To Get Your Kid Into A Top Preschool

Would You Accept $1 Million To Have Your Child Go To Public School?

The post Why Preschool Is Worth Every Penny And More! appeared first on Financial Samurai.

In the market for a student loan, student loan refinance, personal loan, credit card or mortgage refinance? Before you begin an intensive internet search, check out Credible. It’s free and does all the heavy searching for you. Here’s how it works.

Credible

Kevin Mercadante's rating

9.5

Product Variety 9.5

Cost 10.0

Customer Service 8.8

Ease of Use 9.5

Pros

• Variety of loans
• Easy to use
• Applying doesn't impact your credit
• Customer service
• Free

Cons

• It's not a lender
• Mortgage loans are for refinancing

Credible is an online loan marketplace, where you can apply for financing, and receive offers from several lenders at once. This will reduce the amount of time it will take to get the loan you want by the usual method of searching out individual lenders. Much like online insurance marketplaces, you can complete an application on Credible, and have lenders come to you.

About Credible

Credible is a multi-lender marketplace providing borrowers with the opportunity to get competitive loan offers from one or more of several lenders. The lenders participating on the platform are some of the biggest names in the industry.

Credible is based in San Francisco, California, and was launched in November, 2012. In addition to offering loans for student loans, student loan refinances, and personal loans, Credible has recently added credit cards and mortgages to the mix.

The Better Business Bureau gives Credible a rating of “A+” (on a scale of A+ to F), where it has been accredited since October, 2015.

How Credible Works

You complete a single application, then get personalized loan offers from various lenders in a matter of minutes. You can then choose which loan will work best for your needs.

One of the big advantages Credible offers is that the rates you’ll receive from lenders will be real rates, and not rate ranges. That means you’ll know exactly what you’re dealing with before you complete the loan process.

Loan offers will appear on the Credible Dashboard, where you can review the details of each offer. You can proceed with an offer by clicking “Select Lender.” Once you do, the lender is likely to request documentation, including a driver’s license or passport, pay stubs, W-2s, and pay off statements from any current lenders you’re looking to pay off with the new loan.

Required documentation can be uploaded to the Credible Dashboard, making the submission process quick and easy.

With certain loan types, particularly student loans, you may need to add a cosigner. The application process for your cosigner will be similar to yours.

And if you need any help along the way, Credible has Client Success Team experts to help you with every step of the process.

Credible Loan Programs

Credible serves as a marketplace for the following five loan types:

Refinance Student Loans

You can refinance federal, private and ParentPLUS loans. Credible gives you access to loans from up to 10 vetted lenders, and you can get results in a matter of minutes.

Participating lenders include:

Loan offers will show the following:

• Interest rate
• Loan type (fixed or adjustable)
• Monthly payment
• Loan amount
• Origination fee (if any)
• Loan term

Naturally, you’ll need to qualify for each lender’s loan program based on your income, credit history, and debt level.

Each lender you select may require additional information. But once all information has been provided, you can receive your final offer in as little as one business day.

Credible advertises that their partner lenders do not charge loan application fees, origination fees, or prepayment penalties.

Get Started With Credible

Private Student Loan

Private student loans have the advantage that loan amounts are generally higher than what are available with federal student loans. They can be used for undergraduate, graduate and professional degrees, and cover as much is 100% of your school certified costs. They also offer flexible repayment terms, including deferments, interest-only payments, and other options.

Private student loans are available from nine different lenders, including Citizens Bank, College Avenue, Discover Student Loans, EDvestinU, INvestEd and Sallie Mae. Loans are available for students at more than 2,200 eligible schools.

You can apply individually, or along with a qualified cosigner. Just as is the case with student loan refinances, private student loans come with no origination fee, no service fee, and no prepayment penalty.

Related: The Definitive Guide to Student Loans

Personal Loans

Credible provides access to personal loans from 11 different lenders. This includes some of the biggest names in the personal loans space, such as Lending Club, Prosper, Avant, LightStream and Marcus by Goldman Sachs. Loans are available in amounts ranging from $1,000 to as much as $100,000, and can be used for virtually any purpose. Personal loans are fully unsecured, and currently available at interest rates as low as 5.95% APR.

Once again, you can apply online, and begin getting loan offers in a matter of minutes. As the offers come in, you can select the one that will work best for you then complete the process. Loans can be used for debt consolidation, credit card refinancing, home improvement, car financing, wedding expenses, or even to start a new business.

Be aware however that the personal loan industry is somewhat non-standardized. The specific rates you’ll pay, as well as the terms and documentation requirements will vary from one company to another.

Get Started With Credible

Related: The Best Online Personal Loan Rates and Offers

Credit Cards

This is a recent addition by Credible. It works similar to other credit card aggregators, in that you can select the card category you want to apply for. For example, you’ll have the choice of choosing cards with the most generous cashback, rewards, or travel benefits, those for balance transfers, low rates, or 0% introductory offers.

As you can see from the screenshot below, you can choose your category, and several credit card providers will come up under each. You can choose the one with the best offer for you, and apply directly.

Credible also provides resources to help you choose the best credit card, learn how to apply for a credit card, and how to both build and increase your credit score. The last one will be important in getting a credit card with the best terms and pricing.

Mortgages

Credible is a mortgage broker, and has licensed loan officers to provide assistance from application to closing.

When you complete your online application through Credible, you’ll begin getting actual prequalified rates in as little as three minutes. You can make application without impacting your credit score. Credible uses a question and answer format, and also provides an automated document upload process.

Credible gives you access to multiple mortgage lenders, focused on providing cash out refinances. Loans can be either fixed rate or adjustable rate, and you also have access to a dedicated support team.

Much like the other lending services offered by Credible, once you complete your application, you’ll get offers from different mortgage lenders. Once again, the rates offered will be actual, and not ballpark ranges. That will make it easier for you to select the lender that will work best for you.

You’ll need to provide the following information to begin the process:

• Your full name
• Your income
• The subject property address
• Estimated property value
• The amount of the mortgage you need

Once you select the lender, you’ll need to provide typical information required for any mortgage loan. That will include employment and income information, including two years W-2s and recent pay stubs, bank statements for two or three months, and asset statements for brokerage and retirement accounts. Each can be downloaded directly on the site for easy submission.

Related: Mortgage Rates Today

Credible Features and Benefits

Loan types offered: Refinance student loans, private student loans, personal loans, credit cards and mortgages.

Eligible borrowers: You must be at least 18 years old, a U.S. citizen or permanent resident alien, residing in the U.S.

Platform security: Credible uses 256-bit encryption and secure socket layer (SSL) technology to keep your data secure.

Customer service: Credible customer service is available by phone, live chat, or email. Customer service is available Monday through Thursday, from 6:00 am to 6:00 pm, Fridays from 6:00 am to 4:00 pm, and Saturdays and Sundays, from 7:00 am to 4:00 pm. All times are Pacific time.

Credible Fees

There are no fees payable directly to Credible for using the platform. However, certain fees may be charged by the lender through which you get your loan. But in many cases, partnering lenders also charge no fees at all.

How to Sign Up with Credible

The sign-up process varies somewhat from one loan type to another, but it follows the same basic pattern. You’ll enter basic information about the loan you’re looking for, then lender offers will be provided.

For example, with personal loans, you start by entering the loan amount you’re looking for.

You’ll then be asked to provide the reason for the loan, such as debt consolidation, credit card refinancing, home improvement, a major purchase, or other purposes.

You’ll then be asked the following questions:

• What’s the highest level of education you completed?
• Are you employed?
• How much do you earn annually before tax?
• What is your approximate credit score? (Ranges are provided.)
• Your first and last name
• What is your date of birth?
• What is your home address?
• Do you rent or own this home?
• What is your monthly housing payment?
• Are you a U.S. citizen?
• What is your Social Security number?
• What is your phone number?
• You’ll then be asked to enter your email address

Once all that information has been entered, you’ll create a password, after which you’ll need to click “Agree and Find My Rates.”

Once the rates are presented by various lenders, you can select your program. However, expect that lender to request additional information, as well as documentation, to support your loan approval.

Credible Alternatives

What Credible does really well is to act as a lending marketplace, where you as the borrower can receive multiple loan offers by completing a single application. But if you prefer making direct application with certain lenders, there are excellent choices available.

For example, if you’re specifically interested in student loan refinances, SoFi is one of the biggest and best single providers. They also offer other valuable financial services you may be interested in including with your student loan.

If you’re looking for a personal loan, the two biggest providers are Lending Club and Prosper. They also have the advantage that each offers medical loans and large business loans.

An excellent source for credit card offers is Credit Karma. It’s a free credit score provider, that also gives you access to credit card offers. One of the big advantages is that they indicate which offers you’re likely to qualify for, based on your credit profile. You can also get other loans from the site, including auto loans.

Credible Pros and Cons

FAQs

Question: If I make application for a particular loan type, will I receive offers from every participating lender?

Answer: No. Loan offers will be based on the type of loan you request and your qualifications and eligibility. Offers will come only from lenders who can provide financing based on the criteria you provide. It’s even possible you’ll receive no offers if you fail to meet eligibility requirements for any participating lenders.

Question: Since Credible has multiple lending partners, will my credit score be hurt by multiple credit inquiries?

Answer: No. Credible does a “soft credit pull,” which isn’t recorded on your credit report as an inquiry. It will have no negative effect on your credit score. However, once you make direct application to a participating lender, that lender will do a “hard credit pull,” generating a single inquiry. But the result of that inquiry will be no more than 2 to 5 points on your credit score, which shouldn’t have a material effect.

Question: Once I’ve been approved by a participating lender, how quickly can I expect to receive my funds?

Answer: It depends on the type of loan you are applying for. In the case of personal loans, you’ll generally receive funds by the next business day, though some lenders can take up to one week. In the case of student loans and mortgages, disbursement will be based on the specific terms of your transaction. For example, with a mortgage, funds will be dispersed upon loan closing.

Question: How does Credible make money to stay in business if they don’t charge fees to applicants?

Answer: Credible receives a fee from their lending partners when borrowers from the site take out a loan. This does not affect the rate paid by the borrower to the lender.

Should You Get a Loan Through Credible?

Credible is an outstanding loan source if you’re looking to get competitive loan programs and pricing from different lenders. Since there are multiple lending partners participating in each loan type, you’ll get offers from several just from completing a single application. This will enable you to select the loan that best fits your needs, at the most affordable rates.

The service has become even more valuable as the product offering has expanded. Credible started out with student loans and personal loans, but has now added credit cards and mortgages. It’s the type of lending platform you’ll be likely to come back to again and again, as you have need for additional financing.

In addition, Credible is free to use. That means it won’t cost you anything extra to use the service to find the right loan for you. And you’ll save the time it will take to make individual applications with multiple lenders, since participating lenders will come to you with offers.

If you’d like more information, or you wish to apply for a loan, visit the Credible website.

Get Started With Credible

The post Credible Review – Marketplace for Student Loans, Personal Loans, Mortgages & Credit Cards appeared first on The Dough Roller.

There’s an old saying in golf, “drive for show, putt for dough.” Hitting a massive 300-yard bomb looks beautiful, but what really counts is accurate putting.

I can’t tell you how many times I’ve lost money on the golf course because I three-putted instead of two-putted. I’ve also occasionally won money squeezing in an eight-footer. Those knee-knockers, when all is on the line during an Aloha bet, are intense!

Give me a regular 250-yard drive and incredible putting accuracy over a 300-yard drive and putting yips all day long. The same goes for cars.

I’m a one car type of guy. Owning a car is expensive, especially if you don’t follow my 1/10th rule. With the proliferation of cheap ridesharing options that have emerged since 2009, not owning a car is making more and more sense.

But over the years, I’ve had a tremendous number of complaints that my 1/10th rule is too restrictive. Instead of limiting the median American household to only spending $6,200 on a car, many people feel the typical American should be able to spend much more.

If you want to spend more, it’s totally up to you. Don’t let me tell you what to do. I’m just offering a simple rule to follow to help you achieve financial independence sooner, rather than later.

For those of you who love cars and want to own two or more cars, I suggest owning at least a Dough Car. If you do, you might build your net worth quicker than the rest.

The First Car For Show

Your Show Car is your splurge car. Nobody needs more than a five-year-old Toyota Corolla to get around. Your Show car might be a sports car, a classic car, or a luxury car.

You enjoy driving your Show Car around on the weekends. You like to drive your Show Car on the backroads with your buddies who also have Show Cars. Your Show Car is mainly for your personal pleasure only. You love cars and aren’t driving the car to show off.

You must not be seen in your Show Car by colleagues, competitors, school administrators, or anybody who might cost you money.

The Second Car Is For Dough

Your Dough Car is your unassuming car. It is your 8-year-old Honda Civic with a dent in the passenger side door. Your Dough Car is a dirty old truck with ripped upholstery and a couple missing hubcaps.

You also enjoy driving your Dough Car because you don’t care what happens to it. Got a car ding while parked in the grocery store parking lot? Who cares! Someone driving too close to your side? Bring it on!

Your goal is to be seen in your Dough Car by everyone.

The Importance Of Having A Dough Car

I’ll give you two recent examples which demonstrate why having a Dough Car is very important. I’ll also give a third example from when I was working.

1) Winning Customers

Recently, I made an appointment with a shutters and blinds saleswoman to visit my house. It was a free home design consult, with the ultimate hope that she sell me a bunch of products.

At 11 am, she roles up in a brand new BMW X5. The vehicle is costs about $70,000. Upon seeing this, immediately, my heart dropped. I knew that if she was driving a BMW X5, her products would be super expensive and I wouldn’t be able to get a great deal.

She then proceeded to step out in Manolo Blahnik shoes that cost $800+ and $600 Prada shades holding back her hair. I was even more dismayed.

After about an hour of showing me various types of blinds for my eleven windows, we decided on a particular product. She told me she’d get back to me in a couple hours with a quote.

My budget was for around $5,000, or $400 – $500 per window. Instead of $5,000, she came back with a quote for $9,181!

$9,181?! That is a ridiculous amount of money for blinds! I told her we needed to change some of the options to get the price down. I then asked her to apply the special promotion I saw online.

In the end, I got the price down to $5,690. But even at $5,690, I still didn’t feel entirely satisfied because I kept thinking back to her $70,000 BMW X5 and expensive shoes. Clearly, her profit margin was huge. Thus, I decided to look for additional options.

If you want to win customers, driving up in a Show Car may be detrimental. Every savvy potential client will think that the reason why you have such a nice car is that you’ve profited too much from your customers. Unless your job is to chauffeur your client around, like a real estate agent, it’s best to show up in a Dough Car. But be careful real estate agents, driving too nice of a car will remind your clients of your high commission.

2) Getting Financial Aid

On three of the preschool financial aid applications I submitted, I noticed something very interesting. These applications all asked what type of car we drove.

The obvious reason for asking this question is no school will want to provide financial aid to any parent who drives a luxury automobile. Any car over $30,000, such as a fully-loaded Honda Accord, would probably be frowned upon.

By owning a Dough Car, you increase your chances of getting financial aid. The only risk is that by owning a Dough Car, you might be perceived as too poor and too lacking in status to be admitted. I know it’s ridiculous, but that’s the BS society we live in today.

Just know that academic institutions and your employer will make some assumptions about your wealth based on the car you drive.

3) Getting Paid And Promoted

I’ve told this story before, but while I was in banking, I once hired a 22-year-old first-year analyst to work with me. He turned out to be pretty cocky guy who didn’t follow instructions. It was only after he joined the firm that we discovered how truly immature he was.

He drove a $50,000 Acura MDX SUV to work. His car was more expensive than 70% of the cars in the employee parking lot. Everybody found out. Not only did everybody find out what car he drove, but everybody also learned that his parents had bought the car for him. Since he was already not well-liked for his attitude, owning an expensive car exacerbated his work standing even more.

Instead of getting a $25,000 year-end bonus, he received a $15,000 bonus. The committee decided his performance wasn’t up to par. Further, they figured that if he was already rich, he didn’t need the money. They decided to use the $10,000 to pay someone else.

The first-year analyst was pissed and didn’t come into work for three days. We fired him after his second year.

Owning Only A Show Car Is Not Ideal

If you only own one car, and it is a Show Car, this could put you in a bind. On the one hand, you want to own the nicest car possible since you will only have one. On the other hand, however, owning a Show Car might make you a target.

Although nobody thus far has given me grief yet for owning a Tata Motors SUV, I sometimes feel like an oddball when I drive to my Saturday softball meetup games. Everybody is pretty down-to-earth, with the nicest car in the lot being a Tesla Model 3, a ~$50,000 car fully loaded.

I also feel kinda bad when teachers see me picking up my son from preschool. Preschool teachers only make between $40,000 – $70,000, depending on experience. Further, there are several parents who bike their kids to school.

I’ve tinted my windows black so it’s difficult to see me while I’m driving (illegal in California). But that’s not enough to stay stealth because I’ve inevitably got to get out of my car.

When I drove a Honda Fit for three years, I always felt great everywhere I went. Although I experienced a lot more car bullying on the road, it felt great blending in with my surroundings. Most of the time, my Honda Fit was also the cheapest car in the parking lot.

Too bad I had to give it up because there was no way I was going to drive a baby in a car with such small crumple zones and thin doors.

You Will Grow Into Your Show Car

Even if you own a Show Car, know that things will get better because of three things.

The first thing is that your car will depreciate in value every day. If you hold on to it for at least 10 years, it will eventually not be worth much at all. My plan is to own Beast Master for at least 10 years and then consider buying an electric vehicle. In another seven years, Beast Master will be 12 years old and be worth less than $20,000.

The second thing is that you will probably make more money every year. Part of the reason why following the 1/10th rule for car buying is so important is that you won’t feel guilty buying any type of car. As the car’s value becomes a smaller and smaller percentage of your annual income and net worth, you will stop feeling as embarrassed or guilty about owning a Show Car.

The final thing is that you will get older. Nobody really cares if a 55-year-old drives a $110,000 Porsche 911S. If you’re in your 30s or younger, however, sometimes people will give you grief for driving a Show Car out of envy. Don’t ever drive alone at night in a luxury automobile in Johannesburg or Manila. Chances are high you will get mugged at a stop light.

If you must own more than one car, make sure one of them is a Dough Car to help you blend in. On your road to financial independence, you never want to stand out too clearly. Protruding pegs tend to get knocked down.

Readers, does have a Dough Car to hide you from society’s rage and judgement?

Note: for those wondering how the 1/10th rule for car buying applies to owning a Show Car and a Dough Car, the best practice is to have the total price of all cars be 10% or less than your annual gross salary.

The post Own One Car For Show And Another Car For Dough appeared first on Financial Samurai.

Posted by: John S Kiernan

• $150 Initial Bonus
• 4% Cash Back on Dining and Entertainment
• 2% Cash Back at Grocery Stores
• $0 Annual Fee the First Year ($95 after)

• High Regular APR
• Average Base Rewards Rate

The Verdict: Capital One® Savor® Cash Rewards Credit Card is the best credit card for dining and entertainment rewards. It offers 4% cash back in those purchase categories, to go along with 2% cash back at grocery stores and 1% back on everything else. The Savor Card also gives an initial bonus of $300 to new cardholders who spend at least $3,000 within three months of opening an account. That’s enough to cover the cost of the card’s annual fee ($95, waived the first year) for several years.

The Capital One Savor Cash Rewards Credit Card was built for rewards, as its name suggests, so it’s best when cardholders pay their bill in full by every due date. The card’s regular APR is pretty high, ranging from 16.24% to 25.24% (V), and there isn’t a low introductory rate to save you money initially.

The Savor Card also is best for relatively high spenders. You need to charge an average of $1,000 per month for three months to earn the initial bonus, for starters. If you don’t, you’ll need to spend at least $2,375 annually in order to break even from the second year on. People who don’t expect to spend enough to take full advantage of the Capital One Savor Card may instead want to consider its sister card, Capital One® SavorOne® Cash Rewards Credit Card, which has slightly lower rewards rates but is more accessible. Both cards require at least good credit for approval.

Below, you can learn more about the Capital One Savor Card to see whether the savings it offers should be on your menu.

• $300 Sign-up Bonus: Spending $3,000 in the first three months you have the Capital One Savor Card will earn you its $300 initial bonus (provided that you haven’t earned it before). The bonus will be credited to your account within two billing cycles of when you meet the initial spending requirement.

  This is a good deal to go after if you’re planning to spend enough to qualify, anyway. The Savor Card’s initial bonus is about twice the average among cash rewards credit cards and one of the biggest cash bonuses available from any credit card right now.

• 4% Cash Back on Dining & Entertainment: Capital One Savor is the best credit card for dining and entertainment because it offers unlimited 4% cash back on qualifying purchases. The list is not limiting, either.

  Places known primarily as dining establishments qualify for the Savor Card’s 4% rewards rate. Other qualifying purchases include tickets to plays, concerts, professional sporting events, and movies at the theater. Paying to enter tourist attractions, amusement parks, zoos and aquariums counts, too. Same goes for bowling alleys, dance halls and pool halls. Also eligible are purchases made at record stores and video rental stores (wherever you can find them!).

• Solid Secondary Rewards: In addition to bonus rewards on dining and entertainment purchases, the Savor Card gives 2% cash back at grocery stores (not including super stores or warehouse clubs). All other purchases – those in non-bonus spending categories – produce 1% cash back. For context, the average cash rewards card offers about 1% back on all purchases.
• No Foreign Transaction Fees: If life takes you abroad, whether for an international culinary adventure or any other reason, the Capital One Savor Card won’t penalize you with a foreign surcharge for spending money along the way. The average credit card, on the other hand, charges a fee equal to roughly 1.5% of each purchase processed outside the U.S.

  The fact that Savor is a Mastercard also means you’ll be able to use it anywhere in the world that accepts credit cards.

• Easy Rewards Redemption: You can redeem the cash back rewards that you accrue with this card via statement credit or check. Plus, you’re able to redeem on demand or automatically once your earnings reach a certain threshold or a certain date rolls around. Gift cards are another redemption option for Savor cardholders, but cash is a lot more valuable.

The Lowlights

• $95 Annual Fee, Starting the Second Year: After a free first year, the Capital One Savor Card will cost about five times more per year than the average credit card just to own for 12 months. That alone could scare away some prospective applicants, but you have to consider the value of all the rewards and benefits that fee unlocks. And in terms of total net return, Capital One Savor definitely is in the top tier.
• High Regular APR: The Capital One Savor Card’s APR ranges from 16.24% to 25.24% (V). That doesn’t compare too favorably to applicable market averages. The average credit card for good credit has a 21% APR, according to WalletHub’s research, while the average card for excellent credit charges 14%. So, plan to pay your bill in full every month.
• Average Base Rewards Rate: Purchases that don’t qualify for Capital One Savor’s bonus rewards rates yield just 1% cash back. That’s everything except dining and entertainment purchases and purchases made at grocery stores. And that’s important for a few reasons:

  The average cash rewards card offers 1.03% back on all purchases; several credit cards for people with good credit offer 1.5% cash back on all purchases; and others give higher returns in popular purchase categories besides dining, entertainment and grocery stores. So if you want to be really strategic, consider using Capital One Savor as part of a multi-card approach.

Other Things to Consider

• Limited-Time Perks: Cardholders will earn 8% cash back on ticket purchases made via Vivid Seats through May 2020.
• Tap to Pay: The Savor Card’s contactless feature allows cardholders to complete some purchases by hovering the card near a payment terminal. The terminal has to be properly equipped, though.
• Good Credit or Better Required: You need a credit score of 700 or higher, along with enough income to afford monthly bill payments, to have good odds of being approved for the Capital One Savor Card. You can check your latest credit score for free on WalletHub.
• Bonus Rewards Depend on Merchant Categorization: Whether or not a particular purchase qualifies for one of the Capital One Savor Card’s bonus rewards rates ultimately depends on its merchant category code. That’s standard, and it shouldn’t lead to purchases that deserve to be eligible not getting credit. There isn’t really anything you can do about it, either. But it’s good to know that Capital One doesn’t have some long list of specific stores and other retailers that do and don’t make the cut for customers to consult.

 Compared to the Competition

Capital One Savor isn’t the only credit card with great rewards. There are lots of attractive options right now. To help you make the right decision for your wallet, we’ll compare Capital One Savor to three of the most popular alternatives.

	SponsoredCapital One® Savor® Cash Rewards Credit Card	SponsoredCapital One® SavorOne® Cash Rewards Credit Card	SponsoredCapital One® Quicksilver® Cash Rewards Credit Card	SponsoredChase Sapphire Preferred® Card
Annual Fee	$0 for 1st yr, $95 after	$0	$0	$95
Rewards Bonus	$300	$150	$150	60,000 points
Rewards Rate	1 - 4% Cash Back	1 - 3% Cash Back	1.5% Cash Back	1 - 2 points / $1
Purchase Intro APR	Not Offered	0% for 15 months	0% for 15 months	Not Offered
Transfer Intro APR	Not Offered	0% for 15 monthsTransfer Fee: 3%	0% for 15 monthsTransfer Fee: 3%	Not Offered
Regular APR	16.24% - 25.24% (V)	15.74% - 25.74% (V)	15.74% - 25.74% (V)	17.74% - 24.74% (V)
Editors’ Rating	4.9 / 5	4.8 / 5	4.4 / 5	4.5 / 5
Details, Rates & Fees	Learn More	Learn More	Learn More	Learn More
Winners	Capital One® Savor® Cash Rewards Credit Card		Chase Sapphire Preferred® Card

Going through divorce means rebuilding your life–and your finances. Knowing what to do and working with the right professionals can make the whole process go smoother.

No matter the circumstances, divorce can be difficult. Not only are you dealing with an emotional situation, but you also have to handle logistics and finances.

I’ve been through a divorce, and, while it required some careful financial navigation, it wasn’t as bad as it could have been. Even if you think you’ve got the money angle under control, it’s a good idea to double-check. Here’s what you need to know.

Know the Situation

The first step is to know the situation. Gather all of your financial records as individuals and as a couple. You should have copies of:

• Tax returns
• Loan documents
• Bank statements
• Credit card statements
• Investment account statements (including retirement accounts)
• Insurance policies
• Wills
• Trusts
• Property records (including real estate and car registrations

You should also have a clear idea of what’s in the household. From items with sentimental value to things with financial value, you should know what’s there. Take pictures of items that are particularly valuable.

Related: DR Podcast 297: The Blue Binder – How to Create a Financial Binder

Be sure that you know what’s owed and who’s responsible for it. Also, realize that if you live in a community property state, you might also be responsible for half your ex’s debt–even if it’s in only their name and it’s not joint debt.

Get Representation

One of the best things you can do is make sure your interests are represented. Now, this might not always be necessary. In fact, my own divorce was a “kitchen table” divorce. My ex and I discussed our finances, reviewed the accounts, and divided our things without the need for lawyers or mediators.

In the end, we divided everything up, established separate finances, and then took our agreement to a lawyer who drew up the settlement and filed it. It didn’t cost us very much, and it smoothed the process.

However, not everyone is so fortunate. If you suspect that your divorce might be more troublesome, get representation. You should have someone in your corner to make sure that you don’t get stuck with debt that’s unfair, or that you miss out on assets that should be yours. Did you support your spouse through school? Perhaps you stayed home, giving up chances at career advancement, in order to care for children. These are considerations that may entitle you to a portion of your ex’s assets–even if your name isn’t on the accounts.

Whether you use a lawyer or a mediator, keep track of hours, work done on your behalf, and make sure you’re getting billed fairly. Remember, too, that your representative is not a shoulder to cry on. They’re a professional and you’re paying for their time.

Consider the Tax Implications

Depending on the situation, you might be better off waiting until the following year to get divorced. Sit down with a tax professional and run some scenarios. There might be circumstances where you need to finalize the divorce regardless of the tax consequences, but don’t rush into it without consulting with a professional.

Find out what both of you can do to figure out how to minimize the tax bill as much as possible. My ex and I ended up with a hefty tax combined bill the year of our divorce. We might have been able to alleviate some of the cost if we’d consulted with a tax professional ahead of time.

You’ll also need to decide who will claim any children as dependents. You both can’t claim the same dependents. In many cases, the claiming ex is the one who will bear the primary responsibility for caring for the children. However, when multiple children are involved, it’s possible for each parent to claim different children.

Review Health Insurance Options

If you’ve been on your ex’s health insurance, you need to get new coverage. You also need to determine who will keep your children on their health insurance. In my case, my ex’s insurance covers our son, which is a great help to me.

However, without access to my ex’s work health insurance plan, I have to shop for insurance on my state’s exchange. I’ve been able to get a reasonable deal, but the reality is that for many people not having employer-sponsored health insurance is more expensive than getting it on your own. Make sure you budget for insurance costs, and that you’re ready for the increased expense.

Know How to Handle Retirement Accounts

You might be entitled to a portion of your ex’s retirement account. However, it’s important not to jump ahead in this situation. First of all, you need the proper documentation from the divorce court. Without that documentation, there’s a chance that taking your share will result in an IRS penalty.

Another thing to keep in mind is that if you have what’s called a qualified domestic relations order, you’re now an “alternate payee.” As such, you can access the assets in your ex’s 401(k), up to the amount ordered in the divorce settlement. Currently, you can actually withdraw assets under one of these orders without paying the 10% IRS penalty–although you still have to count the withdrawal as income.

Think ahead to potential divorce costs and costs related to setting up your new single household. Do you think you’ll need ready capital? If so, consider withdrawing the money directly from the retirement account before doing a rollover. Once you complete a rollover to an IRA, you’re subject to early withdrawal penalties if you’re under age 59 ½.

Talk to a financial professional about your options before you do anything with the funds you’re allowed from an ex’s retirement account.

Close Joint Accounts

If you don’t already have your own bank account, open one in your name. Then, work with your ex (you might have to do this through a lawyer) to figure out where the money should go so you can close joint accounts.

When possible, pay off joint credit card accounts, and other joint debt, according to the arrangement in the divorce settlement. The faster you can resolve debt, the better off you’ll be now and later. You don’t want to run the risk that your ex will miss a payment on a joint debt they’re now responsible for and bring down your credit score.

You might have to make other arrangements, though. If your ex is keeping a car with a loan in both your names, see if your ex can refinance the auto loan in their own name so you’re no longer attached to the debt. The same applies to a home loan (although in some cases, it’s better to just sell the house, divide any profits and move on). If the debt can’t be refinanced, take your judge’s order to the lender. In some cases your name can be removed from the loan.

With bank accounts, it’s better to divide the assets and close the accounts, unless you have a name removed from the account. In my case, my ex signed the appropriate paperwork to have his name removed from our joint checking account and he turned his debit card over to me for destruction.

Change Beneficiary Names

Go through estate planning documents, including wills, trusts, and life insurance policies to make sure you update beneficiary information. Remember, too, that the name listed as beneficiary on retirement and investment accounts supersedes what’s in your will. So, if your ex is listed as a beneficiary anywhere, you need to make those changes.

Related: Trust & Will Review – Fast and Affordable Estate Planning

Make a Plan

Finally, you need to make a plan for after the divorce. Consider bringing a financial planner in to work with your lawyer or mediator as you go through the process. A financial professional can help you understand the money implications of your divorce settlement, and help you work with your lawyer or mediator to help you get through this situation in a way that minimizes negative financial impacts.

Once you get through the divorce, you’ll need to rebuild your life–and your finances. Meet with a financial professional and create a plan for getting rid of any remaining debt, building your savings, and preparing for your future.

The post How to Navigate Your Finances through Divorce appeared first on The Dough Roller.