Khaleef Crumbley, Author at Faithful with a Few

7 Ways Single Parents Can Save Money

Raising children is expensive and when you’re a single parent, it can seem downright impossible. Figuring out how to pay your bills while still ensuring that your child’s (or children’s) needs are met can be difficult. It is possible with a bit of planning.

You can pay your bills, take care of your kids and still have some money left over at the end of the month. Here are 7 ways in which you can save money.

Create a Budget

If you have no idea how much of your money is going where every month, your spending can quickly get out of hand. Sit down and create a monthly budget. Figure out how much you pay for fixed expenditures (such as rent and car insurance) and how much you want to stick within on other necessities, such as food and other flexible expenditures.

Once you figure these numbers out, it will be much easier to stick them, which can seriously cut down on impulse purchases. It can also be beneficial to balance your checkbook every month. This can help to make you accountable for all of your purchases and allow you to practice more conscious spending habits.

Great articles on how to create a household budget:

How to Create a Budget – Even If You Suck at Budgeting

How to make a family budget – Today’s Parent

Shop Used

Buying new can eat up a large portion of your finances, whether it’s clothing, a car, or furniture. Rather than trying to figure out how you can afford new, shop used.

Consignment sales and thrift stores are a great way to stretch your clothing budget. Not only can you find gently used (and sometimes new) clothing at cheaper prices, you can also sell the clothing you no longer wear. These types of stores are also great for buying other household goods.

There are plenty of websites dedicated to selling used items, allowing you to save a significant amount of money.

Compare Prices

Before you make a purchase, check to see if there is a cheaper price elsewhere. Thanks to the internet, comparison shopping has never been easier. You can even check for coupon codes for your chosen retailer.

What’s more, many stores will price match, whether it’s honoring their online prices in store or matching a competitor’s price. In some cases, you can still use coupons as well.

Join a Savings Club

Many grocery stores offer free savings clubs, which are designed to encourage your shopping loyalty. With a loyalty card, you can gain access to special sale prices and coupons. By planning your shopping trips around the sales of the week, you can definitely save money – as much as $40 or more per trip.

You don’t have to limit yourself to one store. If you shop at multiple stores that offer savings clubs, sign up for each store you frequent.

Pay Bills on Time

When you’re on a tight budget, it can be tempting to let some bills slide but, in doing so, you could be racking up late fees and other penalties. When you do get around to paying your overdue bills, you’re paying more than you would have initially. If possible, set up automatic payments for things such as your mortgage.

When paying your credit card bill, aim for paying about $50 to $100 over the minimum balance each month. And make sure you leave approximately 5 to 7 days for your payments to process. You should also familiarize yourself with any fees that may be associated with your bank, your credit card or your cell phone. Call each company and ask about any fees you are unsure of.

Shop around for banks that charge no fees, or at least less than what you are currently paying. You may even be able to get your credit card company to lower your interest rate.

Some parents may find themselves in a shortage of cash. Here are some helpful articles to help with that situation:

Should you borrow from family or friends? – Money Advice Service

Installment Loans with Bad Credit up to $5,000 – I Need a Loan

Plan Your Meals

While it can take some time, sitting down to plan your meals for the week can help you to then plan your shopping trips. This can help you to stick to a list and avoid buying what you don’t need.

Planning can also help you to make the most of what buy. For instance, if you roast a chicken, you can make chicken salad out of the leftovers, and have lunch ready for the next day or so. The leftovers also make great sack lunches for the kids when they go to school, rather than having them buy lunch.

Another trick to help you save money is to double your favorite recipes. This way, you have one ready for dinner on the night you make it and you can freeze the second one to eat the following week. This will allow you to take advantage of sales and can help you to save time on a night when you may not be able to cook.

Start a Savings Fund

One of the biggest keys to help you save money is to actually set money aside into a savings fund. Allot what you can each month, even if it’s only $20. Over time, this money can really add up. You are not limited to a savings account. You can set the money aside into a college savings fund for your child or into a retirement account. Use whichever method works best for you and your family.

Raising your kids on one income sounds like a frightening concept but, it is entirely possible. Taking the time to sit down and plan can go a long way in making sure that the bills are paid and everyone in your household is comfortable.

[This post was brought to you through a partnership with Sandy Matthews.]

Reverse Mortgage FAQs

By // by Khaleef Crumbley

As more and more people are choosing reverse mortgages, there are several questions which come up. While many of these questions will be specific to your case, there are others which apply to almost every reverse mortgage application out there. With that in mind, here are the more important reverse mortgage faqs you should ask.

Reverse Mortgage Faqs

1) What a Reverse Mortgage?

Reverse mortgages are loans for seniors which allow them to tap into the equity they have built up in their homes. Unlike traditional mortgages or home equity lines, the borrower does not need to make a monthly payment. Instead, all they need to do is to pay the property taxes, insurance, and utility costs for the home.

Another condition of a reverse mortgage is that it must be the borrower’s primary residence. In addition, these loans are only made available to seniors over the age of 62. Now, these mortgages are available across the country, but you probably want to find a local and reputable lender to walk you through the application process.

2) Who Owns the House?

Like traditional mortgages the home is still owned by those residing there – the bank just places a lien on the property. However, you will want to read the terms of the loan agreement, especially the amortization schedule when the loan extends to year 10 or 15, or longer.

3) Why Would Someone Get a Reverse Mortgage?

For many people, their home is the most valuable asset they own. In addition, today’s seniors have had to live through some of the most tumultuous economic periods in our history.

Granted, when times were good, they were very good. However, when times were bad, they were very bad. In addition, there is the changing employment picture. As such, many seniors lack the savings needed to enjoy their retirement.

Enter reverse mortgages, which have become a popular option to help seniors make ends meet during their retirement. Not only do these mortgages help to freeze monthly mortgage payment, but they also give the borrower the ability to access the equity they have built up in their homes.

4) What Are the Qualifications?

First, you must be over the age of 62. In addition, you will need to show that have the income to pay your homeowner’s insurance, property taxes, and utilities. Many reverse mortgages will also require that you will need to properly maintain the house.

Lastly, a reverse mortgage is only for your primary residence. While some private-label reverse mortgages might cover vacation homes, the Federal Housing Administration (FHA) variety of reverse mortgages must be for where you live.

5) What are the Risks?

As most reverse mortgages are insured by the FHA, then tend to be safe. You want to make sure the loan you are getting complies with the FHA’s rules.

If not, then you will want to talk to another lender.

6) Will My Property Qualify?

The list of eligible properties includes everything from single-family homes, multi-family homes (however, the borrower must live in one of the units), as well as certain condos and manufactured homes.

If you are not sure if your property will qualify, then you need to talk to your loan counselor.

7) How Much Can I Borrow?

The answer to this question largely depends on where you live. However, the national loan limit was raised this year to $636,150.

Keep in mind that just because the loan limit is set at this level does not mean you can borrow the entire amount. Under the rules of reverse mortgages, you will need to pay off your existing loan and generally there is a limit based on the home’s actual value.

8) Can the Bank Foreclose?

As long as you follow the terms of the loan, then you won’t have to be concerned about foreclosure risk.

Just remember you need to ensure the home remains registered as your primary residence and that you will need to keep up the payments on taxes, insurance, and utilities.

9) How is a Reverse Mortgage Repaid?

You loan will come due as soon as you no longer live in the home. As such, you will need to plan for repayment at this time.

The way it works is simple. You either sell the home and the lender will be repaid at closing, or you will need to notify the bank of your change of address and then make plans to repay the loan at that time.

4 Creative Ways of Financing Your Startup

By // by Khaleef Crumbley

Every time I run into an old acquaintance or even look on social media, I see someone else who has decided to start a business. There are around 1 million people every year who decide to take their skills, talents, and passions and jump into the scary world of entrepreneurship.

If you find yourself becoming a part-time or full-time business owner, you may find yourself in need of financing.

The Necessity of Financing Your Startup

Not everyone who starts a business will need to raise a lot of capital before getting started. For some, the nature & structure of the business will mean that little investment is needed – many people are able to “set up shop” virtually and use profits to fuel growth.

However, many will need to raise a significant amount of money before being able to sell their goods or services. There are a lot of things to consider when it comes to starting a business – legal matters (licensing, registration, permits, etc.), advertising, inventory, salaries, lease costs, taxes, insurance, customer service, online presence, and many other things that may be specific to your industry – and many of those things will require a serious investment in order to set them up properly.

Even though it’s up to you to determine how much and how early you will need to invest, allow me to give a word of advice: Don’t go the cheap route on things that can save time or money in the long run! You want to set your business up properly, legally, and efficiently, and while you may be able to cut costs here and there, being too “cheap” in these areas will only lead to regret down the road.

The Struggles of Financing Your Startup

Even though you may have a great vision for your business, not having the capital needed to get if off the ground can stop you in your tracks! There are a few ways to get the money you need that will require some patience and sacrifice. You could:

Work for It

If you are able, a second job is a great way to build up the funds you’ll need to get your business off the ground. This is a huge sacrifice if you have a family, and it will draw you away from the time you are spending on business planning. If you are able to juggle your responsibilities, the short-term job could get you on your feet faster.

Ask for Help

Getting investors on board with your vision saves on the stress of a second job, but can be difficult for those who don’t necessarily like selling themselves. In the last few years, sites like Go Fund Me and kickstarter have been really popular for different projects.

Also, the people who know you best may be the ones who are most financially supportive in getting your business off the ground because they already know and trust you and believe in what you are doing.

Borrow the Money

On top of trying to seek out investors who would take a stake in the company in return for seed money, you can also look for banks, companies, or individuals who are willing to simply loan you to money in return for a set interest rate.

Lending Club and Prosper are two services that link up borrowers with investors (they are investing in the loan, not your business), offering lower borrowing rates by cutting out some of the overhead needed by traditional banks. Many people may choose to borrow the money to finance their startup by using credit cards. According to the Small Business Association, over 65% of small businesses use credit cards on a frequent basis!

A major difference between getting an investor and simply borrowing money is that the one who loans you the money usually expects repayment to start within a month or two of the loan; whereas, an investor is usually willing to wait for multiple years before expecting a return on their investment.

Sell Your Valuables

Another option is to sell things you have to get the money you need for your endeavor. A lot of us have items that are of value to someone else that we would gladly part with in order to start a business. It’s time to let some of those things go!

We may not always want to part with expensive items or with belongings that could be considered “status symbols”, but when it comes to being able to finance your business it still may be worth it to sell your watch, to avoid paying interest or having to share your profits with someone else down the line.

Remember, you aren’t trying to find a way to make sustainable income in this stage – that’s the purpose of the business, right? – you are just trying to find a way to get your business off of the ground. In those situations, you have to ask yourself if you’d rather have that item or a business that has a good foundation and is growing.

Environmentally Friendly Ways to be Entrepreneurial

By // by Khaleef Crumbley

The terms entrepreneur and eco are not always synonymous, although recent years have led to a rise in the adherence of eco standards in business. If you are thinking about starting a business and want to still prioritize our environment, you are in luck. More and more customers opt for environmentally friendly companies, so it’s becoming easier to save the planet while still making a good business decision.

Arguably, so long as you address carbon consumption and embrace carbon neutrality, then a business in almost any sector can be environmentally friendly. Here we look at some of the best options for being environmentally friendly and entrepreneurial.

Offset Carbon

There are several ways to offset your company’s carbon consumption. Many of these can be encouraged across the company, to create a culture of care for the environment. This includes switching monitors off overnight, and having lights which switch off after a certain amount of time, along with ensuring the building is well insulated, to keep in the heat during the winter and out in the summer.

Ensure that company cars are low emission and staff are trained on how to keep emissions low through sticking to speed limits, etc.

Work Online

Anything from copywriting to web design and accountancy to admin can be done online, which means remote working. This cuts down on carbon emissions in travel to and back from work, reduces overhead due to less people commuting.

Monecor’s Spread Betting is one way to make money through digital platforms, by simply working from home.

Reduce Paper

Wherever possible, keep everything stored on a cloud system and therefore remove or significantly reduce paper copies. Encourage staff not to print unless it’s really necessary.

Digitalize all resources, banking and invoicing, and ensure that you use recycling services.

Consider Using Solar Panels

If your business is of a certain size, then you may be able to use solar panels, which will reduce electricity bills, and in some cases you can even sell excess energy back to the grid and make money.

Installing solar panels does involve an initial outlay, which is why it’s best to seek financial advice about the size of the company.

Reduce Water Consumption

Depending on the nature of your business, you may not need to use a lot of water, but fostering a culture of ensuring taps are turned off, washes are put on eco settings, and water is not wasted are behaviour changes that make a difference to the environmental soundness of a company.

There are many other things that you can do to be friendly to the environment without sacrificing your bottom line. Hopefully, this post has given you a few ideas on how to move your business down this path.

Ignorance of Financial Realities Is a Major Concern

By // by Khaleef Crumbley

They say there are two certainties in life; death and taxes. Whether the word certainty applies is a moot point but there are some realities in the USA today that appear to be unavoidable, and miserable retirement for many is on the list.

A recent study of 1,000 people over the age of 18 identified almost 60% happy at their ability to enjoy a comfortable retirement because of their ability to save sufficiently. With life expectancy rising, many can expect to live twenty years or more after retirement, so it is a challenge to have a large enough fund to do that. A common way to calculate how big a fund you will need is to take 4% per year of your fund’s total as your potential annual spending.

These 60% are arguably far too optimist when average savings in society today are analysed further. Only half actually knew how much they would have in their fund when they retired. While Social Security benefits help support retirement they are far from sufficient for a comfortable retirement; no, very far!!

Statistics reveal that the average annual spending of a couple who has retired is around $45,000 with benefits paying up to half of that depending on the couple’s working history. It means that a couple need around $500,000 in their fund if the 4% rule is applied.

Too few Americans have anything like this and many of them are of an age where it would be impossible to accumulate that amount, simply because of time. With the chances of hitting the jackpot one in many millions the reality in the USA is extremely disturbing. It is not helped by other facts that have been revealed by further questioning in TIAA’s Lifetime Income Survey:

Of the 1,000 people surveyed around 400 stated that they were saving only 10%, often less, of what they earned each year towards retirement. That 10% is only the starting point on widely-acknowledged advice that recommends rising up to 15 and then 20% in later years.
Almost 30% admitted they were not saving anything at all. Surprisingly half of them said they had no worries about retirement so there is a clear issue here.
500 or so said that their first financial goal was to create a monthly income for the years of retirement yet almost as many did not appear to have any idea or plan about how this could be achieved.
There was a feeling that spending would drop by a quarter once they retired. There are some obvious savings on commuting as an example but what about increased medical bills that many face as they get older? There is a counter argument to spending. When people have more time on their hands it is likely they actually will spend more as they do on holiday during their working lives.

Those Americans that understand the conflicting evidence within this survey can act to improve their futures but time is a constraint. The number of Americans keeping a proper budget is just in excess of 30% if a Gallup poll of 2013 is to be believed. It is an essential part of good financial management.

Debts need to be reduced, especially expensive debt such as that on credit card balances. Personal loans are a cheaper way to organize your finances and can be used to pay off card balances by regular instalments which can be entered within the budget.

Living to a budget takes self-discipline though not necessarily sacrifice. You have to be realistic or you will be discouraged when preparing your budget. There is the chance of savings on utilities, insurance and telephone with comparative websites doing much of the research for you.

The aim behind living to a budget is saving each month towards the future. You will know how you stand at any one time and that clearly helps you make good decisions about every aspect of your life. There is nothing wrong in getting expert advice as well.

The good news if there is any is that the younger generation appear to understand the limitations of the Social Security System and are prepared to do something about it. The bad news is that older people don’t and time is not on their side.