Rents are skyrocketing, and incomes are not. One in five millennials are living in poverty, and are either stuck with parents, couch surfing, or on the street. And it's not for lack of effort. Even $15 an hour, in major cities like New York and San Francisco, is just enough on a single income to cover expenses and have maybe have some social life until the next check. God forbid an incident or major expense come up. Tack on having no or poor credit - it's hard to get credit with no credit, and we never learn about this sort of thing in school - and finding an apartment becomes quite the challenge. Add on a security deposit and you see why many young folk are crashing couches or wherever they can. You work hard, you deserve a nice place to rest your head. Here's 3 hacks to rent a nice place with poor credit and no security deposit.
Often times you make enough to cover the rent, but the added expenses of moving, application fees, deposits, and paying extra months rent upfront can be a hassle. Lease takeovers are great because they present a win-win for everyone involved. Someone just got a new job in another city, or has a new baby on the way and needs more space - or whatever other reason causing people to need to leave their homes before their lease expires. That's where you step in. If all parties are hip, then you agree to takeover the remainder of the lease term, and will arrange to either pay the landlord or them directly. This gives you time to build towards another place, or build a relationship with the landlord or staff so that you can easily stay in the apartment longer if you like. The tenant is happy because they get to keep their deposit and not pay any early termination fees, and the landlord keeps a steady flow of rental income without having to advertise a vacant apartment, and you get a nice place, minimum hassle.
Start by booking a short term stay at an AirBnb and expressing to the host your interest in a longer term stay and offer to negotiate a price for a longer term stay if everything goes well. Many digital nomads are taking this approach. Instead of conventional apartment living, they travel the world staying in different cities for a month or so at a time, needing only their laptops and light luggage. Depending on the relationship you develop with your host you can make it a more permanent home or you can continue to try new places until your ready for a perfect fit
Long Term Hotel Stay
Another awesome alternative is to find hotels that offer long term stays. They usually offer them at a discounted rate and it helps them keep rooms filled that would otherwise remain vacant. The cool thing for you is that you get cable and wifi (warning: hotel wifi tends to be crappy), breakfast, a pool, fresh clean towels and linens on the regular. If you can find the right situation it's actually a pretty sweet set up, and a relaxing way to have roof over your head as you get your affairs in order.
When you take out a loan for a car, charge something to your credit card, or get a personal line of credit, there is going to be an interest rate that applies to your loan.
A lot of different factors go into what you will be charged, including your own personal credit score. But even those with flawless credit still see a minimum charge that they can't get around. That all goes back to the Federal Funds Rate.
One thing consumers rarely realize is that all of our banks are lending money to each other every night. Banks are legally required to maintain a certain percentage of their deposits in non-interest-bearing accounts at the Federal Reserve to ensure they have enough money to cover any withdrawals that may unexpectedly come up. However, deposits can fluctuate and it's very common for some banks to exceed the requirement on certain days while some fall short. In cases like this, banks actually lend each other money to ensure they meet the minimum balance. It's a bit hard to imagine these multibillion-dollar financial institutions needing to borrow money to tide them over for a bit, but it happens every single night at the Federal Reserve. It's also a nice deal for those with balances above the reserve balance requirement to earn a bit of money with cash that would normally just be sitting there.
The Federal Reserve
The exact interest rate the banks will charge each other is a matter of negotiation between them, but the Federal Open Market Committee (FOMC) (the arm of the Federal Reserve that sets monetary policy) meets eight times a year to set a target rate. They evaluate a multitude of economic indicators including unemployment, inflation, and consumer confidence to decide the best rate to keep the country in business. The weighted average of all interest rates across these interbank loans is the effective federal funds rate.
This rate has a huge impact on the economy overall as well as your personal finances. The federal funds rate is essentially the cheapest money available to a bank and that feeds into all of the other loans they make. Banks will add a slight upcharge to the rate set by the Fed to determine what is the lowest interest that they will announce for their most creditworthy customers, also known as the prime rate. If you have a variable interest rate loan (very common with credit cards and some student loans), it's likely that the interest rate you pay is a set percentage on top of that prime rate that your lender is paying. That's why in times of low interest rates (it was set at 0% during the Great Recession), a lot of borrowers should go for fixed interest rate loans that won't increase. However, if the federal funds rate was relatively high (it went up to 20% in the early 1980's), a variable interest rate loan may be a better decision as you would be charged less interest should the rate drop without the need to refinance.
The federal funds rate also has a major impact on your investment portfolio. The stock market reacts very strongly to any changes in interest rates from the Federal Reserve, as a lower rate makes it cheaper for companies to borrow and reinvest while a higher rate may restrict capital and slow short-term growth. If you have a significant portion of your investments in equities, a small change in the federal funds rate can have a large impact on your net worth.
Whether you're leaving a job involuntarily, departing for something new, or just want to prepare for the unknown, it is smart to understand all your options regarding your 401k.
Frugal gifting often gets a bad reputation. However, this shopping method does not make you cheap — it makes you practical. Frugal gifts often avoid waste and overspending and can be just as meaningful (if not more so) as any other present.
With the National Retail Federation predicting each consumer this holiday season to spend upwards of $1,000 on holiday gifts amidst an economic recession —this year might be the perfect time to reconsider your spending budget. We've formulated the ultimate list of frugal gift-giving ideas to get you started.