The first thought that crosses everybody's mind the moment they throw that cap into the early Summer air is: Loans. Gotta pay them off, gotta pay them off!
Or do you?
Student loans are very often associated with anxiety and stress. A study published last year in Social Science & Medicine, was the first to report on the direct link between mental health and student loans. In part, the study concluded that "Student loans were associated with poorer psychological functioning" and that "this association varied by level of parental wealth [...] only, and did not vary by college enrollment history or educational attainment." Ouch.
How deep in debt was the average student they studied? $23,300.
But according to Shannon McLay, of Next-Gen Financial, a financial consulting firm that focuses on working with millennials, all that anxiety could entirely be misguided. Simply making minimum payments on your student loans instead of rushing to pay it off as soon as you can is often a much healthier financial decision, McLay says. "Thousand-dollar events happen all the time," McLay warns, referring to emergencies or other surprise expenses that almost all financial advisors recommend keeping a well-funded savings account for. Paying too much of your student loan can result in not having the money there when it is needed most.
Even Bobby Hoyt, who founded the popular finance blog Millennial Money Man, a website premised on its founder's ability to pay off his $40,000 student loan on a teacher's salary in a year and a half, admits he might have made some mistakes. "I could have really, really screwed myself over," he admitted to Money Watch, "I could have put myself in a bad position if, say, I had gotten hurt."
A great resource to see what your options are is Credible, a website that allows graduated students to compare competing rates to repay or refinance their student loans. It's especially useful if you have higher-interest private college loans, as opposed to ones that are government-subsidized, as it might make sense to refinance them based on what kind of career path you plan on taking.
Despite the amount of stress that college loans cause simply by hanging over you, the interest rates you pay is often actually considerably lower than almost any other loan or financial transaction. Making that credit card payment is definitely a bigger priority, says McLay. In fact, in some cases, the interest rate might be so low that it is could be entirely mitigated by inflation: you could actually be losing money by trying to pay off your college loan!
Per Market Watch, if you invested the percentage of your paycheck that many college grads dedicate to paying off as much of their loans as possible into, say, blue chip stocks, you could be exponentially turning that money into investments that rise in value with the marketplace. Whereas, when you finish paying your college loan, "Your cash is gone," says McLay.
When thinking about that college loan, it might pay to relax a little.
It might pay even more to invest a little.
Airbnb offers an affordable option for people looking to be more comfortable as they travel.
However, there are downsides to staying in a host's home rather than a hotel. Whereas hotels are designed for constant streams of visitors and often have furniture built to last, at an Airbnb, you may be staying on old or cheap furniture that a host is using in order to maximize their profits.
And while most reputable hotels will have regular room inspections from staff to check for any wear and tear, Airbnb damage disputes are oftentimes he said, she said situations. If you are in an Airbnb and something breaks, there are a few steps you should take in order to ensure that you are not on the hook for damages out of your control.
If you're keeping tabs on the art and tech worlds, you've probably been hearing whispers about "NFTs" for the past month. Just over the past week they've entered the mainstream lexicon.
Twitter founder Jack Dorsey made the news for selling his first ever tweet. The app has been teasing paid subscription models and newsletter-like features, but tweets for sale is "the next frontier."
just setting up my twttr— jack (@jack)1142974214.0
The 2006 tweet went up for auction as an NFT, and the current bid is $2.5 Million. But what does it mean to own that? Why would anyone want to? And what even is an NFT?
Long gone are the days when the majority of Americans dreamed about owning a home with a white picket fence.
The traditional American Dream may be on its deathbed, but that doesn't mean a core component of the vision can't survive. It simply takes a diverse perspective. People can still believe they can attain their own vision of success in society with hard work, knowledge, and risk-taking. Investing in today's American Dream may literally mean investing money in our modern economy, starting with our infrastructure.
Real estate investing in particular is a lucrative method that can boost income and secure a better financial future for many. There's always risk involved, but the payoffs can far outweigh the uncertainty. Selecting solid financial investments is about confidence and competence. If you're looking for some advice on this kind of investment, here are a few savvy tips for new real estate investors.
Stick To a Specific Strategy or Niche
Real estate is a challenging sphere of the business world, one that requires several key skills: groundwork knowledge, networking, perseverance, and organization. True knowledge of the real estate market will come with time and experience, but it's a smart idea to select one area of the market and stick to it. This is the best way to attain in-depth familiarity with your specific niche.
First, choose a geographical area close by and then a niche strategy within it, such as house flips, rental rehabs, or residential or commercial properties. By doing so, you can become aware of current inner working conditions in the market and you'll have a better idea of how these trends may change in the future.
Be Vigilant About Viable Financing Options
While it takes money to make money, you don't have to use all your own money. A common misconception about real estate investing is that you must be wealthy to start off. This isn't straight fact, however. A majority of people can test the waters of real estate investing without a lot of initial cash in their pocket.
Aside from traditional financing options from banks and institutions, private lending options can be worthy solutions. Hard money lenders are popular, reasonable choices, and they tend to have fewer qualification requirements upfront. However, be sure to strategically choose a hard money lender to find the best possible fit.
Master the Art of Finding Good Deals
There may be hundreds of thousands of available properties for sale on the current market, but the bulk of them will never amount to the final money-making result you desire. Another great tip for new real estate investors is to use good math to estimate profit. Taking risks is part of the process, but you have the ability to analyze properties and use networking sources to find the greatest deal. You can't win every deal, but you can steadily work towards a thriving financial future.