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.

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Airbnb is a great option while traveling, but you should protect yourself from damage charges from unscrupulous hosts.

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.

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What Are NFTs?

Art Installation N°1 by Carlos Marcial. Rhett Dashwood / YouTube

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."

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?

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Taxes are a confusing topic in any year, but collecting unemployment ads an entirely new layer.

"Taxes Key" by Got Credit is licensed under CC BY 2.0

Tens of millions of Americans collected unemployment last year, many for the first time. You may be doing taxes after collecting unemployment insurance for the first time, and it is important to note that the process is different in a few key ways from traditional employment.

When you start a new job, your employer will typically set up tax withholding, where you pay your taxes out of each paycheck and calculate any refunds or additional payments owed come tax time. Jobless aid is taxed similarly to income but does not usually have taxes automatically taken out. This is likely to lead to millions of Americans facing a surprise tax bill this spring as Goldman Sachs estimates taxes on unemployment insurance received last year could reach $50 billion. 38% of Americans receiving benefits were unaware that unemployment insurance is taxable and could be staring down a major financial shortfall.

If you collected unemployment last year, here's what you need to know as you prepare your taxes.

1. You don't need to pay Social Security or Medicare taxes

You will be expected to pay taxes on unemployment benefits, but those taxes will be slightly less than if you had received the same amount from traditional employment. That is because they are exempt from Social Security and Medicare taxes, both of which total 7.65% for a usual worker. This means you may be paying a lower tax rate than you expect.

2. You might not need to pay state taxes

If you live in one of the nine states (Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, Wyoming) with no state income tax, your unemployment benefits will also not be taxed on the state level. However, five additional states exempt unemployment insurance from taxation. These states are California, Montana, New Jersey, Pennsylvania and Virginia. If you live in one of these states, you only need to worry about federal taxes on your unemployment benefits. You will likely still need to file taxes for any income from regular employment, but this amount will be much less than if your jobless benefits were also taxed at the state level.

However, things get a bit tricky if you live in Indiana or Wisconsin. Both of these states may allow you to exempt a portion of your jobless benefits from taxation, depending on your total income. In both states, you will need to fill out your "Unemployment Compensation Worksheet" to see if you can exclude any portion of the payments you received.


The United States is a patchwork of different tax policies when it comes to unemployment. Know what your state's policy is.

3. Your stimulus payments are not taxable

The federal government issued two rounds of stimulus payments last year; one in April and one in December. These economic income payments are not taxable and are separate from your jobless aid.

4. The government still has time to reduce your tax bill

If you collected unemployment last year, you might want to consider waiting a bit longer before filing taxes. That's because in February of 2021, Sen. Dick Durbin, D-Ill., and Rep. Cindy Axne, D-Iowa, introduced the Coronavirus Unemployment Benefits Tax Relief Act. If passed, this would waive federal income taxes on the first $10,200 of unemployment benefits received in 2020. This would be a larger version of 2009, when lawmakers provided a similar exemption for up to $2,400 in jobless aid. Right now, it is unclear how likely this bill is to pass both chambers. You may want to consider filing closer to the April 15th deadline or prepare to file an amended return if it does become law.

5. There are options if you cannot afford to pay your tax bill right now

If you haven't set aside enough to pay your tax bill this year, you are not alone and there are other options. The IRS does allow you to apply for a payment plan as well as temporarily delay the collection of your tax debt. Both of these may entail paying interest and fees on top of your tax bill, but this will be much less than if the IRS has to take collection action against you.

If you cannot pay your tax bill by April 15th, contacting the IRS for a payment plan can help you avoid stiff penalties.


6. If you are still on unemployment, set aside money for next year's tax bill

If you haven't been setting aside taxes on your unemployment benefits, you may want to start now to avoid a tax headache next year. Log on to your state's unemployment benefits portal and update your withholding. The federal government will withhold 10 percent of your unemployment income toward your taxes. If you don't, you are still on the hook for the taxes and must determine and pay quarterly estimates on your unemployment income.

7. You may qualify for new tax deductions and credits

Many people saw their incomes reduced by going on unemployment, and this could open up new opportunities to save on your taxes this year. If you were able to work for part of the year, you may now qualify for the Earned Income Tax Credit (EITC), a credit for working people with low to moderate income. Unemployment is not considered "earned" income in this case, so you will likely only qualify if you earned income from traditional work this year. Your exact qualification will depend on a variety of factors including your dependents, your filing status, and your total earned income.

If you were able to save last year, you may also be able to qualify for the saver's credit. This would allow you to receive a credit of between 10% to 50% of your contribution to retirement account, depending on your income and filing status. Remember that you still have time to claim this credit as the deadline to contribute to last year's IRA is not Tax Day this year. If you qualify, you may wish to make a contribution before filing taxes in order to claim the credit.

Your state may have additional credits for you to take advantage of, such as the income-based renter's credit in thirteen states. Look at the tax credits available in your state to take full advantage of any help available in what may be a lower-earnings year for you.

Disclaimer: Paypath and its affiliates do not provide tax, legal or accounting services. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. If you have any concerns regarding your unique tax situation, you should consult your own tax, legal and accounting advisors.