Making Cents Sense

  If you've been following the news recently or, like me, have been crushed under the weight of student loans, then you've likely heard about President Biden's new SAVE (Student Loan Affordability, Value, and Empowerment) income-driven repayment plan. And believe me, it's not just another policy on paper; it’s a veritable game changer. Let me give you a bit of context. Like many of my peers, I graduated with a hefty student loan. The promise was simple: get a good education, secure a well-paying job, and slowly, but surely, pay off the loan. But life often has other plans. Market crashes, unemployment, health issues, or mere bad luck can disrupt the best-laid plans. Before you know it, you're trapped in a spiral of interest and never-ending payments. This is where Biden's SAVE plan steps in, promising a ray of hope. Here's why: Simplified Income-Based Repayments : Before SAVE, there were a myriad of income-driven repayment plans - IBR, PAYE...

  If you've ever contemplated buying a home, you've probably experienced the same roller coaster of emotions I did: exhilaration, doubt, excitement, fear. And like me, you've probably spent countless hours wondering, "How much house can I actually afford?" Enter Dave Ramsey, the financial guru who has transformed the lives of millions with his sound money principles. Thanks to Dave, I embarked on a life-changing journey towards homeownership. Here's my story. 1. "If you can't pay cash, make sure your mortgage is no more than 25% of your take-home pay." When I first came across this piece of advice, my initial reaction was shock. How could I ever buy a home, especially in this market, if my mortgage payment was only a quarter of my paycheck? But Dave’s reasoning is sound. By keeping your mortgage payment to a mere 25% of your take-home pay, you ensure that you have sufficient funds for other important aspects of life: emergencies, v...

Last week, a groundbreaking study landed on my desk, and it threw light on something I had long suspected: I am not alone in my trust issues with managing money. What's more intriguing? A growing number of us are ready to hand over our personal finance reigns to AI. 1. The Tipping Point in Trust For years, the idea of machines making choices for humans has been a subject of both intrigue and apprehension. But it seems we've reached a tipping point. This latest study reveals that a majority of consumers now trust Artificial Intelligence with their personal finances. I mean, I love my banking apps and finance trackers, but am I ready to let a machine call the shots on my investments or budget? Apparently, many of us are. 2. Why Consumers are Leaning Towards AI One of the prime reasons is accuracy. The study indicated that humans, no matter how diligent, can make errors. We forget, get biased, become emotional, and often miss patterns in data. AI doesn't have those pro...

  You've probably heard about the "1%", the elusive group of the super-rich that often becomes a topic of heated debates in social, economic, and political spheres. But what does it really mean to be in the top 1%, 5%, or 10%? To satisfy my curiosity (and yours, if you're reading this), I dug into the data, and what I found may surprise you. Setting the Stage Before diving into the numbers, let's clear one thing up: the idea of "top earners" can vary greatly based on region. The income thresholds in Manhattan will be vastly different from those in Mississippi. However, for this article's purpose, I'm focusing on U.S. national averages. The Top 10% Making it into the top 10% of earners is no small feat. It requires consistent effort, skills, and sometimes a pinch of luck. Based on my research, to be among the top 10% in the United States, you'd need to pull in an annual pre-tax income of around $125,000. This might sound like a lot for...

  Hey there! 🌟 If you’re reading this, you’re probably a student like I once was, with dreams bigger than your ramen-noodle budget. Remember when I thought those textbooks were expensive? That was until I learnt about the power of investing, and now, I want to share the magic with you. Sit tight, because this is the no-fluff guide to investing for every student out there. 1. Mindset is Key! I used to think that investing was for the old and wealthy. But here’s the kicker: time is our biggest asset. The sooner you start, the more you benefit from compounding (money making money!). So, believe in your future millionaire self and let’s dive in. 2. Education Before Execution Before I jumped into the stock market, I took time to learn the basics. Books like "The Intelligent Investor" by Benjamin Graham and "Rich Dad Poor Dad" by Robert Kiyosaki laid the foundation. Online courses, podcasts, and YouTube channels were also invaluable. Remember, the more you lear...

  Throughout my college years, while many of my friends were moving into dorms or finding apartments near campus, I made the decision to live at home. I understand that for some, the appeal of college is partly about escaping parental oversight, meeting new roommates, and having those late-night, impromptu dorm room discussions. But for me, the financial benefits of staying at home far outweighed the allure of on-campus living. If you, too, have decided to live at home during your college years, you’re likely aware of the significant amount of money you’re saving on housing. The question then becomes: What should you do with this windfall? Here are four smart things I've learned to do with the money saved from living at home: Invest in Your Education : While this may seem like an obvious point, I don't just mean covering your tuition or buying textbooks. There's so much more to the college experience than what's in the syllabus. Consider using the ...

  Hello dear readers, I've been in the investment game for quite a few decades now, and if there’s one thing I've learned, it’s that markets are cyclical. There are periods of low returns and periods of high returns. Recently, I, along with many other savvy investors, have started to witness a heartening rise in the returns from traditionally conservative instruments like bonds and CDs (Certificates of Deposit). It's a good time for those who've played the waiting game. But, just like any silver lining, this one has its cloud: the taxman. A Shift in the Landscape Over the past few years, interest rates have seen a rise from their historic lows. Gone are the days when fixed income investors lamented over paltry returns. Today, bonds and CDs have become more attractive, offering yields that have, quite frankly, taken me by surprise. I remember times when CDs were nothing more than symbolic assets in a diversified portfolio, but now they've started to gain promin...

Being digital-savvy in the age of technology is not just about keeping up with the latest trends or apps—it's about security, especially from imposter scams. The digital universe is vast, and while most encounters are harmless or beneficial, some can lead you down a treacherous path. I've recently become more aware of the rising imposter scams and feel compelled to share what I've learned. What Are Imposter Scams? Imposter scams happen when fraudsters pretend to be someone you trust, all to convince you to give them money or personal details. They can pose as a family member, a technical support team, or even a bank representative from institutions like Schwab. And here’s the kicker: they’re pretty darn good at it. Recognizing The Scams: Unexpected Communications: If you receive a random call, text, email, or social media message from a familiar organization or person, be wary. This is especially true if they start asking for personal details or mon...

  It’s a cool, crisp morning as I sip my freshly brewed coffee, browsing through the morning news on my iPad. A headline jumps out at me: "Even Millionaires Are Feeling Financially Insecure." I pause for a moment, thinking about the implications of that statement. The popular assumption is that once you cross a certain threshold of wealth, financial worries dissipate. You’ve made it, right? Mansions, luxury cars, and exotic vacations become the norm. Yet, the recent report paints a different picture. It seems that regardless of the zeros in one’s bank account, financial insecurity can still be a haunting presence. As I delved deeper into the report, several key findings stood out: The Changing Landscape of Wealth : Economic volatility, rapidly evolving technological landscapes, and global events have made even the world’s wealthiest individuals wary of the future. A market crash, a bad investment, or changes in global politics can erode wealth quic...

When I first embarked on my journey to understand the secrets of financial success, I was met with a myriad of advice, strategies, and tools. Over time, I realized that while the paths to wealth might be diverse, there are certain commonalities that wealthy individuals share. These aren't just material possessions or vast sums of money, but rather habits, mindsets, and assets that contribute to their financial wellness. Here are the five things I've observed that wealthy people have, which are pivotal to their financial well-being: A Growth Mindset One of the most profound realizations I had was that wealthy individuals possess a growth mindset. They believe that their abilities and intelligence can be developed through dedication, hard work, and learning. This mindset allows them to see challenges as opportunities, failures as lessons, and setbacks as temporary. Instead of saying, "I can't afford this," they ask, "How can I afford this?" Thi...

As I sat down with my morning coffee today, August 21, I couldn't help but ponder the ever-evolving landscape of mortgage rates. It's a topic that's been on the minds of many homeowners and potential buyers alike. With the fluctuating economy and the uncertainty that has gripped the world in recent times, the question that keeps popping up is: How high will mortgage rates go? A Glimpse into the Past To understand the future, it's often helpful to look at the past. Historically, mortgage rates have seen their fair share of highs and lows. I remember the early 1980s when rates soared to nearly 18%. It was a challenging time for homeowners, to say the least. But then, like all things, the rates began to stabilize and even drop, leading to a boom in the housing market. The Current Landscape Fast forward to today, and we're in a unique situation. The global pandemic has had a profound impact on economies worldwide, leading central banks to adopt low-interest-rate...

As we approach the end of summer, many homeowners, like myself, are eagerly awaiting updates on the Property Tax Rebate for 2023. The question on everyone's lips is: will the $675 tax rebate still be available after September? Having done some extensive research and spoken to several tax professionals, I wanted to share my findings with all of you. A Brief Overview of the Property Tax Rebate Before diving into the specifics for 2023, let's take a moment to understand the Property Tax Rebate. Introduced as a relief measure for homeowners, this rebate was designed to alleviate some of the financial burdens associated with property ownership. The idea was simple: homeowners could claim a rebate on their property taxes, thus reducing their overall tax liability. The $675 Rebate in 2023 This year, the rebate amount was set at $675, a figure that brought joy to many. For families and individuals alike, this amount can make a significant difference, especially in these uncerta...

Buying a house is one of the most significant financial decisions many of us will ever make. For me, the journey began with excitement, but it was quickly tempered by the overwhelming number of factors to consider. One of the most pressing questions was, "How much house can I actually afford?" After countless hours of research, discussions, and self-reflection, I managed to break down the process into four essential steps. Here's how I navigated the maze of home affordability: 1. Understanding My Monthly Income and Expenses Before diving into the world of mortgages and interest rates, I took a step back and examined my monthly finances. I listed down all my sources of income, ensuring I had a clear picture of how much money was coming in every month. Next, I detailed my monthly expenses, including bills, groceries, entertainment, and any other recurring costs. This exercise was eye-opening. Not only did I identify areas where I could cut back, but I also gained a ...

When I was younger, I always dreamed of owning a home. The idea of having a space to call my own, to decorate as I pleased, and to create lasting memories was deeply appealing. So, when the opportunity arose to buy a house with my mom, I jumped at the chance. I thought, "What could be better than combining resources with someone I trust and love?" Little did I know, this decision would teach me a crucial lesson in personal finance and relationships. The Initial Excitement At first, everything seemed perfect. We found a lovely house in a great neighborhood, and the idea of living together was exciting. We envisioned family dinners, shared responsibilities, and the comfort of having each other's company. Financially, it made sense too. Splitting the mortgage , utilities, and maintenance costs seemed like a smart move. The Reality Sets In However, as months turned into years, the challenges began to surface. Our visions of shared responsibilities became a tug of war ...

  When I first embarked on my college journey, I was filled with a mix of excitement and apprehension. Like many students, I was stepping into a world of independence, academic challenges, and financial responsibilities. One of the most pressing concerns for me, and many of my peers, was the question of how to afford basic necessities, especially food. It's no secret that many college students struggle with food insecurity, often having to choose between buying textbooks or groceries. Recently, there's been a significant change that has brought hope to students like me: the expansion of the Supplemental Nutrition Assistance Program (SNAP), commonly known as food stamps, to include more college students. This change has been a beacon of relief, and I wanted to share my insights on this new development and how it might benefit you or someone you know. What's New with SNAP for College Students? Historically, many college students were ineligible for SNAPbenefits due to...

Ever since I dove into the world of TikTok, I've been amazed by the plethora of trends that emerge from this platform. From dance challenges to life hacks, there's always something new and intriguing. Recently, I stumbled upon the ' Girl Math ' trend, and as a personal finance expert, I couldn't help but delve deeper into its implications. What is the 'Girl Math' Trend? At its core, 'Girl Math' is a humorous take on the way some individuals justify their spending habits. It's a series of videos where TikTokers showcase their shopping hauls, explaining how they managed to "save" money by buying items on sale, even if they didn't necessarily need them. For instance, if a $100 dress is on sale for $70, the logic goes, "I saved $30," even though, in reality, they spent $70. The Good, The Bad, and The Funny On the surface, 'Girl Math' is a light-hearted jest at our sometimes illogical spending justifications. It...

  Hello, dear readers! Today, we're delving into a topic that has been on the minds of countless Americans – the impending end of the federal student loan pause . As someone who has been immersed in the world of personal finance for years, I've been asked time and again about the best strategies to cope with the resumption of student loan payments. And I'm here to help guide you through it. 1. First, Know Your Balance and Interest Rate: Start by logging into your federal student loan account or checking your most recent statement. Knowing the exact balance and interest rate will give you a clearer picture of what you're up against. It will also help you make a plan tailored to your unique situation. 2. Create a Detailed Budget: Now, more than ever, having a well-structured budget is essential. Before your monthly payments resume, take a closer look at your income and expenditures. Identify areas where you can cut back, and estimate how much money you can comfo...