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After Katrina and Sandy, New Orleans and New England sustained heavy damage and spent billions of dollars and several years rebuilding (and still is to some extent).

Now, Texas is dealing with the aftermath of Harvey while the east coast faces possible landfall hurricane Irma. It seems the devastation brought from major hurricanes isn't a rare phenomenon anymore. The impact of these storms goes well beyond the immediate damage and aftermath. The economic effects are wide-ranging and can reverberate in an affected area for years and years afterward.

The first wave of cost and economic impact begins with the immediate aftermath of landfall. Depending on the degree and length of the storm, the damage can range from minimal to devastating. Flood waters can cause a lot of damage, especially if they sit in the area for several days at a time. In certain parts of New Orleans, you still can see the line where the water level sat in the aftermath of Katrina.

In response to the devastation, government on all levels work to raise money to cover the cost of rebuilding. After Katrina, Louisiana received around $142 billion in federal funds to help rebuild. After Sandy, New York and New Jersey received $56 billion for recovery efforts. In response to Harvey, President Trump has proposed a $9.7 billion allocation to Texas. Before Katrina, federal aid made up only about 17 percent of hurricane damage. Additionally, the money spent by the federal government has national effects.

To have a vibrant and growing economy, you need a lot of people with some disposable income. These people must be willing to spend their money at local businesses with some regularity. This is the backbone of an economy. If no one is buying anything, things tend to slow down and degrade over time.

While rebuilding cities and public areas definitely takes time and money, private property also suffers damage. This includes homes, apartments and businesses. Often, the allocated funds don't cover these damages. If you own a house in an affected area and have insurance, you could still be waiting for months to get your check. Without insurance, the owner is eating the entire cost. Only about 20 percent of those affected by Harvey actually had flood insurance. In New Orleans, about half of households had purchased flood insurance before the storm. Without insurance coverage, these are massive expenses that could tie down income for a long, long time. That has a significant effect on the local economy. If a lot of people have much less disposable income, the economy could slow growth or even degrade.

Another economic factor is relocation. After Katrina, many lower income households relocated to other parts of the state or even to Houston, Texas. Without a home to return to, it made more sense for many people to restart somewhere new. Obviously, relocation will decrease the population in an affected area. This in turn has an economic effect. Often, cities need to grow their population to also grow their economy. With less people to spend money in a city, the local economy could suffer all the more.

The effects of the storm don't end on the city level. Especially if that city is a major metropolitan area of that state — like Houston is for Texas — the statewide economy can be similarly affected. Tourists will be less likely to visit. Businesses will set up shop somewhere else. This situation only gets worse with more damage and destruction. If people are more readily able to return to work shortly after a storm, the economy will likely not suffer quite as much. After Sandy, the New York and New Jersey areas were able to rebound fairly quickly in comparison to New Orleans after Katrina.

In the immediate rebuilding, the economy will likely experience small boost from the act of rebuilding itself. More people will be working in the area than normal. Also, the faster a city can regain some semblance of normalcy and functionality, the easier it can avoid a possible economic downturn. The economic effects of different hurricanes on different regions lead to varying results. However, for the most part, there is a path to recovery — even if it might take several years.

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As the years go by, you'll likely need to make some large purchases here and there. Plan for these major life purchases by identifying them and saving early.

While it's possible to be frugal with many aspects of your lifestyle, there are certain events and possessions that will require you to spend a substantial amount of money. Thus, a wise course of action is to begin saving well ahead of time while thinking about your goals for the future. This way, you'll be able to maintain a stable financial state even when faced with those large expenses. The following are a few major life purchases that you should plan for.

A Wedding

Marriage is a joyous occasion that many people look forward to. However, a wedding can be quite expensive, often costing thousands of dollars. Your family and your future spouse's family will often contribute to covering this, but you should still prepare to spend a good deal of your own money on the ceremony. If you're in a serious relationship and are considering marriage, you should plan where the funds for the wedding will come from and take the necessary actions to accumulate them. It's also crucial to discuss financial matters with your partner, since your property will merge once you get married.

A New Car

Automobiles remain one of the top modes of transportation. As a result, you may want to purchase a new car at some point in your life. Although you may be fine with an old or used vehicle at present, you may one day be motivated by a desire to acquire something nice for yourself or by the practical needs that arise as you raise children. Whatever the case, obtaining a new car is a major life purchase that you should plan for.

In addition to setting aside funds to eventually put towards a vehicle, you should also aim to build you credit score. This is because your credit score will determine your available car loan options. The higher your credit score, the more you may be able to lower your interest rates on your car.

A House

Owning your own residential property is a worthy objective that you may hope to make a reality one day. Ideally, you should save about 20 percent of the total cost of a house before you buy it. This will allow you to make a larger down payment and thereafter face less interest on your mortgage.

As with acquiring a car, the mortgage options that you'll have can change based on how strong your credit score is. You'll want to increase your score as much as possible in the years leading up to buying a house so that you can get more favorable interest rates. In addition to contemplating down payments and mortgages, you must also remember that you'll need to deal with property taxes, insurance, maintenance and repair fees, and sometimes homeowners' association charges.

It's also necessary to hire a real estate agent to help you with the buying process. There are different types of real estate professionals. You should know how to distinguish between buyer's agents and seller's agents so that you can obtain favorable prices on homes as well.

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When you are newly hitched and learning how to combine your essential legal and financial information as well as your accounts, it can be confusing.

Many people live together before getting married and have begun the process of combining accounts and sharing responsibilities. However, some people wait to do this only after marriage, and others wait until they're married to live together. Whichever path you've chosen, it's still crucial to know a few tips to manage money together as newlyweds to determine where you should begin and how you can remain on the same page.

Discussing Money Motivations

As we begin to share money with our significant other, we soon find out what one person may rank as a priority regarding money and the other may not. As such, sitting down and discussing money motivations is important. Two people who cannot agree on how to handle money may cause serious issues. This should include:

  • How to deal with money following payday. Is a percentage put into savings? Is that the day to splurge on dinner, drinks, and more?
  • The frequency and size of payments made to debts. Some people like to pay minimums, whereas others pay in full or make double payments.
  • What do you each consider money well spent? Is it a new 70" 4K television? Is it an investment? Is it paying as much debt off as possible?
  • How do you go about consulting each other before making purchases over a certain amount?

Establishing Financial Goals

After you evaluate the motivations behind your money and how it should be spent, you'll need to spend time together hashing out financial goals. As newlyweds, there are certain things on your list that you're going to want to save for. How do you go about that? How much of each paycheck will you dedicate to a particular fund?

Some things in the future worth making a financial plan for include savings and paying down debts. This is the time to be honest about your current financial standing. If you're looking to buy a home, you'll want to assemble a first-time homeowner financial checklist to begin to develop topics of conversation. Some of the things to consider setting goals for are:

  • Student loans
  • Car loans
  • Future children
  • A house
  • Medical bills
  • Delinquencies on credit reports
  • Vacation and rainy-day funds
  • Emergency funds

Budgeting Together

The more honest and open you can be with each other about the money you have and now the debts you share, the better. Implementing plans for the best ways to have the things that you both desire while still taking care of existing demands is important. These can be uncomfortable things to talk about; however, these conversations are necessary.

Following these tips to manage money together as newlyweds will allow you to have a starting point for conversations that can be tough to start. The sooner you and your partner get on the same page with finances and the responsibilities that come with them, the easier the transition will be and the sooner you'll find success.

It's the dream: money you can count on to keep rolling in, even while you sleep.

Passive income isn't entirely passive, of course. You'll put in work up-front to get the profits rolling, so don't relax in your recliner just yet. But with so many potential sources of passive income available to you, picking one or several will mean that the day you can finally kick back will draw steadily closer.

Rental Properties

Real estate is a tried-and-true wealth builder for a simple reason: people will always need somewhere to live. Research the market in a growing community until you know a good deal when you see it. You can maximize rent by fixing up a deteriorating property or upgrading a mediocre one. The key is to hire a property manager to do all the day-to-day landlord duties for you—and you'll need a good one. Smart investors put their profits in another property and repeat the process until they have a diverse portfolio.

A YouTube Channel

You can start a blog if you're more comfortable hiding behind a computer, but consumers are more likely to prefer video content. Post a series of “how-to" videos to answer questions about whatever you're an expert in.

You can put up any content you want, but if you don't want to commit to regularly updating it, focus on “evergreen" topics that will draw clicks for eternity. Ads will create your income, especially if your channel grows in popularity. Better yet, sign up for affiliate marketing. If you recommend a product and provide a link to buy it, you'll get a small percentage of those transactions.

Auto Advertising

If you don't mind vinyl-wrapping your car with an ad for a company, you can get cash just driving around and running your errands. Make sure you contact a reputable company that doesn't ask for any money from you; if they're the real deal, they'll evaluate your car, your driving habits, your area, and more. Bonus: the brighter the ad, the easier it'll be to find your vehicle in the parking lot.

Digital Products

What's something that people will pay for but doesn't require shipping on your part? Finding that item is what can supplement your income indefinitely. Write an e-book, charge for your cross-stitching patterns, design prints that people can digitally download, invent an app, record a “masterclass," or whatever else you want. Every time someone new discovers it, the cash register rings. With a little more effort, this is a potential source of passive income for you that can continue to grow. Once you build up a customer base, they might want more products. The good part is that it's up to you whether you wish to give it to them.