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Simply find a way to make extra money.
Get a second, part-time job; or start a small business (landscaping, bookkeeping, cleaning, etc). Basically, offer a service that people will pay you for.
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NT: Official Personal Finances Thread
Simply find a way to make extra money.
Get a second, part-time job; or start a small business (landscaping, bookkeeping, cleaning, etc). Basically, offer a service that people will pay you for.
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In .
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NT put me on. I have 10K saved up from last year, what can I do to flip or make money move? Please real answers.
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I started putting some of my money in an online lending site. I've been getting about 8% over the past year with money that would otherwise be in a savings account earning .75%.
If you're interested, let me know and I can send you an invite.
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what exactly is a lending site? how does it work?
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https://www.lendingclub.com
Basically instead of people going to a bank to borrow money to pay off their debts, you loan the the money and get the interest from their payments. You have the ability to choose your risk level and whether you want to invest in a 3 or 5 year term.
Of the 23 notes I've invested in over the past year, 4 have been fully paid and 1 was charged off due to delinquency. Once the payments come in you have the option to reinvest the money or withdraw it.
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Ive been on lending club for a year or so now, 12.48% adjusted net annualized return. I go with riskier loans, and setup my filters pretty strictly. I'm sure many people are doing much better than me as well.
I like it to help diversify my investments, but not as my main investment because you report the $ you make in taxes. Ex. Make 10k on lending club gotta report it, so increases your adjusted gross income (AGI) by 10k (every year). While you invest in stocks, won't increase your AGI until you sell them.
I like it to help diversify my investments, but not as my main investment because you report the $ you make in taxes. Ex. Make 10k on lending club gotta report it, so increases your adjusted gross income (AGI) by 10k (every year). While you invest in stocks, won't increase your AGI until you sell them.
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What's the minimum amount of capital required to be an individual lender on lending club?
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The recommended minimum is 2,000$ this amount allows you to spread out your funds amongst many notes. While if you put 200$ worth of notes, and 1 25$ note defaults, You find yourself with a negative return and think it's a terrible investment. 2,000$ is what they recommend to have enough notes. You can always chose the safer loans with lower %interest, you can pick the credit scores of people your lending too and all sorts of different criteria.
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Lending clubs? *pondering emoji* I'm very curious about this, gonna have to do some more research.
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Not sure there's an actual minimum. I started with a few hundred to test it out and kept putting money in after I got comfortable and familiar with it.
Tony $now
formerly lilyo06
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I gotta become more frugal with my money and start saving more. Y'all got me motivated for real.
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My finance issue all fall back on rent prices. Without being too specific, I'm paying X for rent right now, at this time, I can find another comparable place for X-300. So I would be saving 300 more a month. The issue is Im locked in a lease. My question to you guys is how in the world do I get out of a lease where the only way (that I know of) is by paying the early termination fee (which is equivalent to 1 months rent)
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How long is your lease until? That early termination fee doesn't sound too bad actually.
Just remember to find a place before you break lease.
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Yea, that's actually not bad to break a lease, depending on the cost for 1 month's rent.
My wife finally had the epiphany that I've had for about a year about our finances and is ready to start killing our debt (took her long enough) If we made more, it'd be much easier which sucks since I can't even find a decent paying part-time gig, let alone a full-time one.
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Ask your landlord if he's be willing to let you out of your lease if you'll find a solid tenant to take over the contract.
al audi
Banned
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It's all good. We only get one life, so you definitely gotta live it how you want.
I've seen from some of your posts that you're coming into a good amount of money. If I had that windfall coming my way, I'd be investing in some multi-families in NH, Bpt, Wtrbry, etc. Let that money work for you...
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Yea I've talked to people about that already
It's not as easy as you think mom an I already have a multi fam, tenants can be a nightmare
Also not as easy as you think to kick people out.
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Not sure, but there are other P2P lending sites out there.
I am trying to decide if I should max out my HSA and get my full 401K matching for this year.
If I max out my HSA it will take me about 4-5 months longer to pay off my debt.
Just trying to get compounded interest on my side early.
Think I will wait until I get my w2 to decide how much I will put in my HSA to figure out how much more money I can get in my paycheck by adjusting my witholdings.
I am trying to decide if I should max out my HSA and get my full 401K matching for this year.
If I max out my HSA it will take me about 4-5 months longer to pay off my debt.
Just trying to get compounded interest on my side early.
Think I will wait until I get my w2 to decide how much I will put in my HSA to figure out how much more money I can get in my paycheck by adjusting my witholdings.
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No longevity, when it comes to stocks, an investor asks if there is room for growth and if the company can handle adversity in the business field, answering "no" to either one of those questions will have a stock looking as that one does
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@crcballer55 @Pdino For these p2p lending sites you're basically giving out unsecured loans right? wouldn't this be considered pretty high risk?
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Interest rates on the loans are determined by the risk level. You can invest in anything from A+ to F grade loans depending on your risk tolerance.
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Which grades have you been investing in and would you recommend putting money into roth ira or this?
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It's secured through them. Lending club does a thorough check on financials. Your also doing 25$ notes of a portion of a loan that you pick. So if one of your loans defaults, it's a 25$ loss, not your investment in entirety.
They keep all of their information/statistics available to the public: http://www.lendingclub.com/info/demand-and-credit-profile.action
default rates was 3.6% 2013, usually it's around ~5%. You can avoid defaults with grade A/B loans + filters
I'm not a proponent of investing in their stock. I put in 2,000$ as a trial investment. It has gave me back 200$+ in a year and 12.48% ROI.
I've been investing in C/D grade loans, have much higher rates, but riskier of course. I try to compensate for the high risk, with strict filters. I target people who are paying back their CCs (many people have high interest rates on CC, so they take out lendingclub loan at a much lower rate, pay off CC, consolidate loans to one lendingclub loan.
I recommend roth IRA personally.
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Personally I wouldn't put money in a roth , i'd go traditional then do a conversion to roth ira when my income is much lower in the future.
Heres a graph from the article showing the difference in contributing to a traditional vs roth.
I suggest people check out the entire article though.
[h1]Traditional IRA vs. Roth IRA [/h1]
Heres a graph from the article showing the difference in contributing to a traditional vs roth.
I suggest people check out the entire article though.
[h1]Traditional IRA vs. Roth IRA [/h1]
[h1]So What’s the Big Deal?[/h1]
An example will help clarify how this works and will highlight how much money this could save you over the long run.
Imagine two 30-year-olds who hope to retire by the age of 40. To make things simple, assume they each start with nothing, make $60,000 a year, and can happily live off of $18,000 per year.
Investor A decides to max out his Roth IRA between now and when he retires at 40. Investor B instead decides to max out his Traditional IRA and then slowly convert it to a Roth IRA after he turns 40. Both invest all additional income into taxable accounts.
The following graph shows the value of the accounts of these two investors.
Investor A is represented by the light green lines and Investor B is represented by the dark green lines. The solid lines represent the investors’ normal taxable accounts, the dashed lines represent the investors’ Roth IRA accounts, and the dotted line represents Investor B’s Traditional IRA account.
As you can see, at age 40, both investors stop contributing to their accounts and begin withdrawing $18,000 per year from the taxable accounts. Investor B also begins converting his Traditional IRA into a Roth IRA at this time. Thanks to the fact that he is able to live on a reasonable income and has time to slowly convert the Traditional IRA into the Roth IRA, he is not taxed on the conversion and therefore ends up having exactly the same amount of money in his Roth IRA as Investor A does when they both reach standard retirement age.
What you’ll notice though is that Investor B actually has quite a bit more in his taxable account. Since he was able to invest pre-tax money in his IRA when he was working, he had more money to invest in the taxable account during his 30s and as a result, will end up with over $100,000 more than Investor A when he reaches retirement age!
It’s pretty incredible that a simple choice between two good options could result in a six-figure difference in retirement savings!
