Digit Review: A Free App To Put Your Savings On Autopilot

Digit is a unique savings tool that allows you to put saving on autopilot. By analyzing your spending and saving patterns using a sophisticated algorithm, Digit calculates when you can afford to save.Digit is a unique savings tool that allows you to put saving on autopilot. By analyzing your spending and saving patterns using a sophisticated algorithm, Digit calculates when you can afford to save.

The post Digit Review: A Free App To Put Your Savings On Autopilot appeared first on Money Under 30.

Source: moneyunder30.com

Everything You Need to Know About Budgeting As a Freelancer

Could logging in to your computer from a deluxe treehouse off the coast of Belize be the future of work? Maybe. For many, the word freelance means flexibility, meaningful tasks and better work-life balance. Who doesn’t want to create their own hours, love what they do and work from wherever they want? Freelancing can provide all of that—but that freedom can vanish quickly if you don’t handle your expenses correctly.

“A lot of the time, you don’t know about these expenses until you are in the trenches,” says freelance copywriter Alyssa Goulet, “and that can wreak havoc on your financial situation.”

Nearly 57 million people in the U.S. freelanced, or were self-employed, in 2019, according to Upwork, a global freelancing platform. Freelancing is also increasingly becoming a long-term career choice, with the percentage of freelancers who freelance full-time increasing from 17 percent in 2014 to 28 percent in 2019, according to Upwork. But for all its virtues, the cost of being freelance can carry some serious sticker shock.

“There are many hats you have to wear and expenses you have to take on, but for that you’re gaining a lot of opportunity and flexibility in your life.”

– Alyssa Goulet, freelance copywriter

Most people who freelance for the first time don’t realize that everything—from taxes to office supplies to setting up retirement plans—is on them. So, before you can sustain yourself through self-employment, you need to answer a very important question: “Are you financially ready to freelance?”

What you’ll find is that budgeting as a freelancer can be entirely manageable if you plan for the following key costs. Let’s start with one of the most perplexing—taxes:

1. Taxes: New rules when working on your own

First things first: Don’t try to be a hero. When determining how to budget as a freelancer and how to manage your taxes as a freelancer, you’ll want to consult with a financial adviser or tax professional for guidance. A tax expert can help you figure out what makes sense for your personal and business situation.

For instance, just like a regular employee, you will owe federal income taxes, as well as Social Security and Medicare taxes. When you’re employed at a regular job, you and your employer each pay half of these taxes from your income, according to the IRS. But when you’re self-employed (earning more than $400 a year in net income), you’re expected to file and pay these expenses yourself, the IRS says. And if you think you will owe more than $1,000 in taxes for a given year, you may need to file estimated quarterly taxes, the IRS also says.

That can feel like a heavy hit when you’re not used to planning for these costs. “If you’ve been on a salary, you don’t think about taxes really. You think about the take-home pay. With freelance, everything is take-home pay,” says Susan Lee, CFP®, tax preparer and founder of FreelanceTaxation.com.

When learning how to budget as a freelancer it’s necessary to estimate your income and expenses before setting aside savings for tax payments.

When you’re starting to budget as a freelancer and determining how often you will need to file, Lee recommends doing a “dummy return,” which is an estimation of your self-employment income and expenses for the year. You can come up with this number by looking at past assignments, industry standards and future projections for your work, which freelancer Goulet finds valuable.

“Since I don’t have a salary or a fixed number of hours worked per month, I determine the tax bracket I’m most likely to fall into by taking my projected monthly income and multiplying it by 12,” Goulet says. “If I experience a big income jump because of a new contract, I redo that calculation.”

After you estimate your income, learning how to budget as a freelancer means working to determine how much to set aside for your tax payments. Lee, for example, recommends saving about 25 percent of your income for paying your income tax and self-employment tax (which funds your Medicare and Social Security). But once you subtract your business expenses from your freelance income, you may not have to pay that entire amount, according to Lee. Deductible expenses can include the mileage you use to get from one appointment to another, office supplies and maintenance and fees for a coworking space, according to Lee. The income left over will be your taxable income.

Pro Tip:

To set aside the taxes you will need to pay, adjust your estimates often and always round up. “Let’s say in one month a freelancer determines she would owe $1,400 in tax. I’d put away $1,500,” Goulet says.

2. Business expenses: Get a handle on two big areas

The truth is, the cost of being freelance varies from person to person. Some freelancers are happy to work from their kitchen tables, while others need a dedicated workspace. Your freelance costs also change as you add new tools to your business arsenal. Here are two categories you’ll always need to account for when budgeting as a freelancer:

Your workspace

Joining a coworking space gets you out of the house and allows you to establish the camaraderie you may miss when you work alone. When you’re calculating the cost of being freelance, note that coworking spaces may charge membership dues ranging from $20 for a day pass to hundreds of dollars a month for a dedicated desk or private office. While coworking spaces are all the rage, you can still rent a traditional office for several hundred dollars a month or more, but this fee usually doesn’t include community aspects or other membership perks.

If you want to avoid office rent or dues as costs of being freelance but don’t want the kitchen table to pull double-duty as your workspace, you might convert another room in your home into an office. But you’ll still need to outfit the space with all of your work essentials. Freelance copywriter and content strategist Amy Hardison retrofitted part of her house into a simple office. “I got a standing desk, a keyboard, one of those adjustable stands for my computer and a squishy mat to stand on so my feet don’t hurt,” Hardison says.

Pro Tip:

Start with the absolute necessities. When Hardison first launched her freelance career, she purchased a laptop for $299. She worked out of a coworking space and used its office supplies before creating her own workspace at home.

Digital tools

There are a range of digital tools, including business and accounting software, that can help with the majority of your business functions. A big benefit is the time they can save you that is better spent marketing to clients or producing great work.

The software can also help you avoid financial lapses as you’re managing the costs of being freelance. Hardison’s freelance business had ramped up to a point where a manual process was costing her money, so using an invoicing software became a no-brainer. “I was sending people attached document invoices for a while and keeping track of them in a spreadsheet,” Hardison says. “And then I lost a few of them and I just thought, ‘Oh, my God, I can’t be losing things. This is my income!’”

As you manage the cost of being freelance, consider digital tools and accounting services to keep track of invoices, payments and income.

Digital business and software tools can help manage scheduling, web hosting, accounting, audio/video conference and other functions. When you’re determining how to budget as a freelancer, note that the costs for these services depend largely on your needs. For instance, several invoicing platforms offer options for as low as $9 per month, though the cost increases the more clients you add to your account. Accounting services also scale up based on the features you want and how many clients you’re tracking, but you can find reputable platforms for as little as $5 a month.

Pro Tip:

When you sign up for a service, start with the “freemium” version, in which the first tier of service is always free, Hardison says. Once you have enough clients to warrant the expense, upgrade to the paid level with the lowest cost. Gradually adding services will keep your expenses proportionate to your income.

3. Health insurance: Harnessing an inevitable cost

Budgeting for healthcare costs can be one of the biggest hurdles to self-employment and successfully learning how to budget as a freelancer. In the first half of the 2020 open enrollment period, the average monthly premium under the Affordable Care Act (ACA) for those who do not receive federal subsidies—or a reduced premium based on income—was $456 for individuals and $1,134 for families, according to eHealth, a private online marketplace for health insurance.

“Buying insurance is really protecting against that catastrophic event that is not likely to happen. But if it does, it could throw everything else in your plan into a complete tailspin,” says Stephen Gunter, CFP®, at Bridgeworth Financial.

Budgeting as a freelancer allows you to select a healthcare plan that best suits your employment status, income and relationship status.

A good place to start when budgeting as a freelancer is knowing what healthcare costs you should budget for. Your premium—which is how much you pay each month to have your insurance—is a key cost. Note that the plans with the lowest premiums aren’t always the most affordable. For instance, if you choose a high-deductible policy you may pay less in premiums, but if you have a claim, you may pay more at the time you or your covered family member’s health situation arises.

When you are budgeting as a freelancer, the ACA healthcare marketplace is one place to look for a plan. Here are a few other options:

  • Spouse or domestic partner’s plan: If your spouse or domestic partner has health insurance through his/her employer, you may be able to get coverage under their plan.
  • COBRA: If you recently left your full-time job for self-employment, you may be able to convert your employer’s group plan into an individual COBRA plan. Note that this type of plan comes with a high expense and coverage limit of 18 months.
  • Organizations for freelancers: Search online for organizations that promote the interests of independent workers. Depending on your specific situation, you may find options for health insurance plans that fit your needs.

Pro Tip:

Speak with an insurance adviser who can help you figure out which plans are best for your health needs and your budget. An adviser may be willing to do a free consultation, allowing you to gather important information before making a financial commitment.

4. Retirement savings: Learn to “set it and forget it”

Part of learning how to budget as a freelancer is thinking long term, which includes saving for retirement. That may seem daunting when you’re wrangling new business expenses, but Gunter says saving for the future is a big part of budgeting as a freelancer.

“It’s kind of the miracle of compound interest. The sooner we can get it invested, the sooner we can get it saving,” Gunter says.

He suggests going into autopilot and setting aside whatever you would have contributed to an employer’s 401(k) plan. One way to do this might be setting up an automatic transfer to your savings or retirement account. “So, if you would have put in 3 percent [of your income] each month, commit to saving that 3 percent on your own,” Gunter says. The Discover IRA Certificate of Deposit (IRA CD) could be a good fit for helping you enjoy guaranteed returns in retirement by contributing after-tax (Roth IRA CD) or pre-tax (traditional IRA CD) dollars from your income now.

Pro Tip:

Prioritize retirement savings every month, not just when you feel flush. “Saying, ‘I’ll save whatever is left over’ isn’t a savings plan, because whatever is left over at the end of the month is usually zero,” Gunter says.

5. Continually update your rates

One of the best things you can do for yourself in learning how to budget as a freelancer is build your costs into what you charge. “As I’ve discovered more business expenses, I definitely take those into account as I’m determining what my rates are,” Goulet says. She notes that freelancers sometimes feel guilty for building business costs into their rates, especially when they’re worried about the fees they charge to begin with. But working the costs of being freelance into your rates is essential to building a thriving freelance career. You should annually evaluate the rates you charge.

Because your expenses will change over time, it’s wise to do quarterly and yearly check-ins to assess your income and costs and see if there are processes you can automate to save time and money.

“A lot of the time, you don’t know about these expenses until you are in the trenches, and that can wreak havoc on your financial situation.”

– Alyssa Goulet, freelance copywriter

Have confidence in your freelance career

Accounting for the various costs of being freelance makes for a more successful and sustainable freelance career. It also helps ensure that those who are self-employed achieve financial stability in their personal lives and their businesses.

“There are many hats you have to wear and expenses you have to take on,” Goulet says. “But for that, you’re gaining a lot of opportunity and flexibility in your life.”

The post Everything You Need to Know About Budgeting As a Freelancer appeared first on Discover Bank – Banking Topics Blog.

Source: discover.com

Go Green: 5 Tips for Saving Electricity

After a few weeks of talking about ways to go green, I thought an episode on how to save electricity would be a great way to finish out this green series. Hopefully you’ve enjoyed learning ways to save water, to cut down on the amount of trash you create in your kitchen as well as some environmentally-friendly laundry tips.

If you’ve ever Googled “How to save electricity,” you’ve found out the hard way that there are hundreds of tips out there. Some of these tips are easy to implement, but some of the ways to save electricity that are suggested online are tips like, “Use candles instead of turning on lights.” While this will certainly save electricity, it’s not incredibly practical. That’s why I decided to put together a list of some of my favorite, easy-to-do tips to help you save electricity.

Tip #1: Save electricity by turning off lights

If your parents were like mine, you probably still have a voice rattling around your head saying, “Turn off the lights!” whenever you exit a room. Our parents had it right, because there’s absolutely no reason to keep a light on in a room you are not in. If you can commit to simply turning off the lights in every room when you leave it, you can save electricity immediately.

Whether you are going to return to the room in 10 minutes or 10 seconds, there’s no reason to have the light on while you’re not in the room.

Tip #2: Save electricity by turning off (and disconnecting!) electronics

Just like there’s no use in keeping lights on while you’re not in a room, there’s no use in keeping electronics on while you’re not using them. When you leave for the day, make sure all your electronics are off. This includes your TV, sound system, computer, and any other electronic gadgets you may have around your home.

Did you know that electronics that are plugged in, and not even turned on, can account for 5-10% of electricity used in a home?

Taking it one step further, did you know that electronics that are plugged in, and not even turned on, can account for 5-10% of electricity used in a home? Computers, printers, coffee makers, and even phone cords that are plugged in can be energy vampires, sucking electricity (and your hard-earned money) when they aren’t in use. So you may want to invest in a power cord that you can plug most electronic devices into. That way, you can simply unplug off just one switch when you leave for the day (instead of walking around unplugging things throughout your home). Yes, it might take 2 more seconds of your time to turn the power cord on than simply turn the electronic device on, but it can make a big impact in your electricity bill.

Tip #3: Save electricity by taking care of your air conditioner

If you live in an area of the world where you use your air conditioner a lot, this can play a major part in your energy consumption. If you want to save electricity, there are a few things that you can do to make sure your air conditioner is running as efficiently as possible.

First, have your air conditioning unit serviced annually. Most companies charge a nominal fee to have this service completed. It involves cleaning out the coils and checking for any small repairs that are making your unit work overtime. Next, make sure you change your air filters monthly. These filters catch a lot of dust and dirt, which starts to clog them. The more clogged the filters, the harder your air conditioning unit has to work to get the air to pass through the filter. If your filters are any color other than white, making a slight whistling sound, or worse yet, are bent because they are being sucked into the vent, change them immediately. This change alone will save a ton of wasted electricity from being used to cool your home.

Tip #4: Save electricity by making easy swaps

A couple of quick swaps in your house can help you save electricity. The first you may want to consider is using ceiling or box fans instead of running your air conditioner as much. Oftentimes, just circulating the air in a room will help the room feel cooler. Instead of running the massive cooling unit outside your home, a fan uses about the same amount of electricity as a light bulb. For every degree you can raise your air conditioner, you save about 5% of the energy being used. I live in the desert of Arizona and my fellow dessert-dwellers are very familiar with this technique. It costs an arm and a leg to cool a house in Arizona to 70 degrees, so most people set their thermostats between 77 and 81 degrees and run the fans to do the rest. It keeps us comfortable, both with the feeling inside our house as well as when we see our electric bills!

Another easy change is to switch incandescent light bulbs to fluorescent, otherwise known as CFL, light bulbs. CFL bulbs use just 25% of the energy of regular light bulbs, so when you combine that with always shutting them off, you can dramatically save on your electricity consumption. Just remember that CFL bulbs contain a small amount of mercury, so they need to be disposed of properly. Check with your local government agency to see how they require these bulbs to be disposed of.

Tip #5: Save electricity by keeping nature outside

The final tip on how to save electricity is to make sure you don’t have any drafts coming into your home. If you hold a feather around the edges of your windows and doors, the feather should be perfectly still. If it wavers, that means outside air is getting into your home. The more outside air that gets into your house, the more your air conditioner or heater has to run. Seal up your windows and doors with weather stripping, which is available at your local hardware store and is relatively easy to apply.

Also, during the summertime, keep the sunshine out of your house using room darkening blinds and curtains. By keeping the sun out, especially from south and west facing windows, you will keep your house from heating up, which will do a big part in helping to save electricity.

These are just a few tips to save electricity to get you started. 

Source: quickanddirtytips.com

What Is A Consumer Loan?

A consumer loan is a loan or line of credit that you receive from a lender.

Consumer loans can be auto loans, home mortgages, student loans, credit cards, equity loans, refinance loans, and personal loans.

This article will address each type of consumer loans.

Get Approved for personal loan today.

Types of consumer loans:

Consumer loans are divided into several kinds of categories. They include auto loans, student loans, home loans, personal loans and credit cards. Regardless of type, consumer loans have one thing in common: you have to repay the loan at some period of time. 

Auto loans

Most people who are thinking of buying a car will apply for an auto loan. That is because buying a car is expensive.

In fact, it is the second largest expense you will ever make besides buying a house. And unless you intend to buy it with all cash, you will need a car loan.

So, car loans allow consumers to purchase a vehicle where they may not have the money upfront. With an auto loan, your payment is broken into smaller repayments that you will make over time every month.

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You can choose between a fixed or variable interest rate loan. But the most important thing is, whether you’re buying a new or used car, it’s important to compare loans to help you find the right auto loan for your needs.

Start comparing auto loans now!

Home loans

Another, and most common, type of consumer loans are home loans. A home loan or mortgage is a loan a consumer receives for the purpose of buying a house.

Buying a house is, undoubtedly, the biggest expense you’ll ever make in your life. So, for the majority of consumers who want to purchase a house, they will need to borrow the money from a lender.

Home loans are paid back over a period of time. Those mortgages term are typically 15 to 30 years. They can be variable rate or fixed rate. A fixed rate means that your repayments are locked in for a fixed term.

Whereas a variable rate means that your repayments depend on the interest rate going up or down when the Federal Reserve changes the rate.

Over the loan’s term, you will pay back the principle amount of the loan plus interest. This makes it very important to compare home loans. Doing so allows you to save thousands of dollars on interest and fees.

Personal Loans

The most common types of consumer loans are personal loans. That is because a personal loan can be used for a lot of things.

A personal loan allows a consumer to borrow a sum of money. The borrower agrees to repay the loan (plus interest) in installments over a period of time.

A personal loan is usually for a lower amount than a home loan or even an auto loan. People usually ask for $500 to $20,000 or more.

A personal loan can be secured (the consumer backs it with his or her personal assets) or unsecured (the consumer does not have to use his or her personal asset).

But most of them are unsecured, so getting approved for one will depend on your credit score, income and other factors.

But consumers use personal loans for different purposes. People take out personal loans to consolidate debts, such as credit card debts. You can use personal loans for a wedding, a holiday, to renovate your home, to buy a flt screen TV, etc…

Student Loans

Consumers use these types of loans to finance their education. There are two types of student loans: federal and private. The federal government funds a federal student loan.

Whereas, a private entity funds a private student loan. Generally, federal student loans are better because they come at a lower interest rate.

Credit Cards

Believe it or not credit cards is a type of consumer loans and they are very common. Consumers use this type of loan to finance every day expenses with the promise of paying back the money with interest.

Unlike other loans, however, every time your pay with your credit card, you take a personal loan.

Credit cards usually carry a higher interest rate than the other loans. But you can avoid these interests if you pay your balance in full immediately.

Small Business Loans

Another type of consumer loans are small business loans. These loans are used specifically to create a business or to expand an already established business.

Banks and the Small Business Administration (SBA) usually provide these loans. Small Business Loans are different than personal loans, because you usually have to provide a collateral to get the loan.

The collateral serves as a way to protect the lender in case you default on the loan. In addition, you will also need to provide a business plan for the lenders to review.

Home Equity Loans

If you have your own home, you can borrow money against it. These types of consumer loans are called home equity loans. If you’ve paid off the mortgage on the home, you can borrow up to the full value of the home.

Vice versa, if you’ve paid half of the mortgage on the home, you can borrow half of the value of the house. You can use a home equity loan for several purposes like you would with a personal loan.

But most consumers use this type of loan to renovate their house.  One disadvantage of this type of loan, however, is that you can lose your house in case of a default, because your house is used as a collateral for the loan.

Refinance loan

Loan refinancing is a basically taking a new loan to replace an existing one. But you get this loan specifically either to refinance your existing mortgage or to refinance your student loans or a personal loan.

Consumers usually refinance in order to receive a lower interest rate or to reduce the amount of monthly payments they are making on their existing loans.

However, reducing to a lower payment will lengthen the time to pay off the loan and you will accrue interest as a result.

Consumers also use this type of loan to pay their existing loans off faster. However, some mortgage refinancing loans come with prepayment penalties. So do you research in order to avoid that extra charge.

The bottom line is consumer loans can help you with your goals. However, understanding different loan types is important so that you can choose the best one that fits your particular situation.

So do you need a consumer loan?

Get Approved for personal loan today.

Speak with the Right Financial Advisor

If you have questions about your finances, you can talk to a financial advisor who can review your finances and help you reach your goals (whether it is making more money, paying off debt, investing, buying a house, planning for retirement, saving, etc). Find one who meets your needs with SmartAsset’s free financial advisor matching service. You answer a few questions and they match you with up to three financial advisors in your area. So, if you want help developing a plan to reach your financial goals, get started now.

The post What Is A Consumer Loan? appeared first on GrowthRapidly.

Source: growthrapidly.com

15-Year vs. 30-Year Mortgages: Which is Better?

Once you decide to become a homeowner, it’s likely that you will need to take out a mortgage to purchase your new home. While the conclusion that you need a mortgage to finance your home is usually easy to arrive at, deciding which one is right for you can be overwhelming. One of the many decisions a prospective homebuyer must make is choosing between a 15-year versus 30-year mortgage.

From the names alone, it’s hard to tell which one is the better option. Under ideal circumstances, a 15-year mortgage mathematically makes sense as the better option. However, the path to homeownership is often far from ideal (and who are we kidding, under ideal circumstances we’d all have large sums of money to purchase a house in cash). So the better question for homebuyers to ask is which one is best for you?

To help you make the most informed financial decisions, we detail the differences between the 15-year and 30-year mortgage, the pros and cons of each, and options for which one is better based on your financial priorities.

The Difference Between 15-Year Vs. 30-Year Mortgages

The main difference between a 15-year and 30-year mortgage is the amount of time in which you promise to repay your loan, also known as the loan term.

The loan term of a mortgage has the ability to affect other aspects of your mortgage like interest rates and monthly payments. Loan terms come in a variety of lengths such as 10, 15, 20, and 30 years, but we’re discussing the two most common options here.

The Difference Between 15-Year Vs. 30-Year Mortgages

What Is a 15-Year Mortgage?

A 15-year mortgage is a mortgage that’s meant to be paid in 15 years. This shorter loan term means that amortization, otherwise known as the gradual repayment of your loan, happens more quickly than other loan terms.

What Is a 30-Year Mortgage?

On the other hand, a 30-year mortgage is repaid in 30 years. This longer loan term means that amortization happens more slowly.

Pros and Cons of a 15-Year Mortgage

The shorter loan term of a 15-year mortgage means more money saved over time, but sacrifices affordability with higher monthly payments.

Pros

  • Lower interest rates (often by a full percentage point!)
  • Less money paid in interest over time

Cons

  • Higher monthly payments
  • Less affordability and flexibility

Pros and Cons of a 30-Year Mortgage

As the mortgage term chosen by the majority of American homebuyers, the longer 30-year loan term has the advantage of affordable monthly payments, but comes at the cost of more money paid over time in interest.

Pros

  • Lower monthly payments
  • More affordable and flexible

Cons

  • Higher interest rates
  • More money paid in interest over time

15-Year Mortgage

30-Year Mortgage

Pros

• Lower interest rates
• Less money paid in interest over time
• Lower monthly payments
• More affordable and flexible

Cons

• Higher monthly payments
• Less affordability and flexibility
• Higher interest rates
• More money paid in interest over time

Which Is Better For You?

Now with what you know about the pros and cons of each loan term, use that knowledge to match your financial priorities with the mortgage that is best for you.

Best to Save Money Over Time: 15-Year Mortgage

The 15-year mortgage may be best for those who wish to spend less on interest, have a generous income, and also have a reliable amount in savings. With a 15-year mortgage, your income would need to be enough to cover higher monthly mortgage payments among other living expenses, and ample savings are important to serve as a buffer in case of emergency.

Best for Monthly Affordability: 30-Year Mortgage

A 30-year mortgage may be best if you’re seeking stable and affordable monthly payments or wish for more flexibility in saving and spending your money over time. The longer loan term may also be the better option if you plan on purchasing property you couldn’t normally afford to repay in just 15 years.

Best of Both: 30-Year Mortgage with Extra Payments

Want the best of both worlds? A good option to save on interest and have affordable monthly payments is to opt for a 30-year mortgage but make extra payments. You can still have the goal of paying off your mortgage in 15 or 20 years time on a 30-year mortgage, but this option can be more forgiving if life happens and you don’t meet that goal. Before going this route, make sure to ask your lender about any prepayment penalties that may make interest savings from early payments obsolete.

Best of Both- 30-Year Mortgage with Extra Payments

As a prospective homebuyer, it’s important that you set yourself up for financial success. Fine-tuning your personal budget and diligently saving and paying off debt help prepare you to take the next steps toward buying a new home. Doing your research and learning about mortgages also helps you make decisions in your best interest.

When picking a mortgage, always keep in mind what is financially realistic for you. If that means forgoing better savings on interest in the name of affordability, then remember that path still leads to homeownership. Try out these budget templates for your home or monthly expenses to help keep you on a good path to achieving your goals.

Sources: Consumer Financial Protection Bureau

The post 15-Year vs. 30-Year Mortgages: Which is Better? appeared first on MintLife Blog.

Source: mint.intuit.com

Chip and Joanna Gaines Are Back (With Friends) in ‘First-Time Fixer’

Chip and Joanna GainesRob Kim / Contributor / Getty Images

“Fixer Upper” fans will be in a tizzy to hear that Chip and Joanna Gaines have returned to TV—this time to help friends renovate their first house on the premiere episode of the new Discovery+ show “First-Time Fixer.”

In the premiere episode “Salt Lake City Condo,” Chip and Jo head to Salt Lake City to give old-time pals Brittany Baker and Annie Hawkins tips on their first flip: a $305,000 midcentury condo. Baker and Hawkins have a renovation budget of only $50,000, so they’ll need a lot of help from the Gaineses to get this project done right.

Read on to find out Chip and Joanna’s best tips for these first-time flippers, which might inspire some changes around your own abode, too.

Polished concrete floors are beautiful—and easy on the budget

floors
Chip Gaines suggested using concrete floors.

Discovery+

Baker and Hawkins need to stick to a strict budget, so they’re excited when Chip suggests they rip up the carpet and simply use the concrete floors underneath.

They remove the carpet and repair the cracks in the concrete themselves (which saves a lot of money), then they hire a professional to polish the floors.

“We’re actually going to save a lot of money doing concrete, because it’s only going to be 2,000 bucks,” Baker says.

Once the floors are finished, the concrete looks amazing, giving the condo a cool industrial look. Who knew you could get that for cheap?

Save as many original features as possible

bathroom
Chip thought this vanity could be saved, but some mold meant it didn’t work in the end.

Discovery+

Chip has another money-saving tip for Baker and Hawkins: Save the bathroom vanity.

“I would keep this,” Chip says when he sees the wood vanity. “This is great quality stuff, y’all. And this is something you could do in a kind of DIY sense and save a little money.”

Hawkins and Baker are willing to fix it up, but don’t end up keeping the vanity—and for a good reason.

“Brittany discovered so much mold that we did not want to salvage it,” Hawkins explains.

bathroom
With a new vanity, this guest bathroom is complete.

Discovery+

They’re forced to spend money on a new vanity, but they find a new piece with similar charm and style.

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Watch: This Gorgeous New Farmhouse by Chip and Jo Gaines Is No ‘Fixer Upper’

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When the bathroom is finished, Chip and Jo approve of the choice. It proves that while saving an old piece can save money, sometimes it’s simply not worth it.

Call in the professionals for a polished look

shower
This shower definitely needed some new tile.

Discovery+

With all of Chip’s talk of DIY projects, Baker and Hawkins want to do as much as they can themselves. They even cut their own baseboards and do all the painting. But after some debating, they decide to hire a professional to do the bathroom tile.

“We decided not to tile as first-timers,” Hawkins says. “We felt like it was advanced for what we wanted to do, so the money that we saved from carpet, [we] put it toward tile.”

shower
Sometimes it’s best to bring in the professionals.

Discovery+

The modern gray tile they choose fits the condo’s midcentury style and, in the end, Hawkins and Baker are happy they hired someone to make it look so good. And Baker’s learned an important lesson.

“Know your limits,” Baker says. “And maybe next time we’ll try tiling.”

Sometimes the right materials cost only a little more

kitchen
This kitchen was closed off from the rest of the house.

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Sometimes the biggest renovation challenge is simply choosing the right materials, a lesson Baker and Hawkins learn when trying to design the kitchen.

The condo was built in 1964, so they want to lean into the midcentury aesthetic by using walnut in the kitchen. Right away, Joanna loves the idea.

“I love walnut,” she says. “If I walk in and see your kitchen with walnut wood, I don’t think ‘oh they did this on the cheap.’”

kitchen
The walnut cabinets make the kitchen look sophisticated.

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Hawkins and Baker know that walnut won’t be too pricy, but it will require taking some money out of the budget elsewhere.

They build a beautiful kitchen out of this medium-tone wood and, in the end, it pays off. These cabinets give the whole condo a midcentury look.

An open walkway can save money

door
This doorway to the den has midcentury style.

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Throughout the renovation, Baker and Hawkins realize they’re really cutting it close with their budget—and it doesn’t help when they keep finding unexpected costs.

One big expense they weren’t expecting is the door to the den.

“So guess how much a freaking door costs?” Baker asks. “A freaking door costs five to six thousand dollars!”

While they want to create a private den space, they know they can’t afford to put a door there. So they get creative with glass windows and a midcentury-inspired opening. This doorway ends up working even better than a traditional door because it keeps the den open, improving the flow into the living room.

It’s a great solution to the budget issue, and it ends up being one of the more beautiful features of the home.

When Baker and Hawkins are finally finished with the renovation, they know that they’ve gone way over their timeline. While they expected the project to take only nine weeks, it ends up taking four months. Still, they don’t go too far over their budget, spending $56,000 instead of their originally planned $50,000.

In the end, these novice flippers are proud of their work—and so are Chip and Jo!

The post Chip and Joanna Gaines Are Back (With Friends) in ‘First-Time Fixer’ appeared first on Real Estate News & Insights | realtor.com®.

Source: realtor.com