I have money taken out automatically from my paycheck before I get it and put into savings, investments, and retirement. My paycheck looks a lot smaller, but I know that when I need money for something, I've got it somewhere. It makes me live on less so I have more for emergencies and big purchases.
OK, while it's not the best way to save, I hide money around the house. If I have an extra $1, $5, or $10 dollar bill, I'll stick it under the TV or computer monitor, in that little zipper pocket in the baby bag we never use, in the pocket of a jacket in the closet that I almost never wear... I could go on and on. When we need or want something that we don't budget for (pizza, new coffe maker, etc.), we have a scavenger hunt!
1. As stated, it does NOT automatically lower your interest rate--it is a weighted average of the included loans. So, you may get a lower rate, or a higher rate, depending on the original loan rates.
2. You may see a lower payment, but this will be because you've extended the repayment period--in the long term, higher interest.
3. YOU WILL FORFEIT ANY 'SPECIAL' BENEFITS FROM YOUR ORIGINAL LOANS. This means you may have to give back any rebates, etc, that you received as special offers from your original lenders. Whoever you consolidate with may have some additional bonuses, but you'll have to check that carefully.
This also means you should never, ever, ever consolidate private and federal loans together. Federal loans have better options which you will lose if you roll them together with private loans.
Like mortgage refinancing, your mileage may vary. It largely depends on the specifics of your situation. Personally, I chose to consolidate my federal Stafford loans together to lock in the current interest rate, which is lower than when I took them out. The private loans I'm going to pay back under the original conditions...the only way out is through.
With my husband in school, we make very little money, and saving is really really hard. We keep track of every penny in and out, and at the end of any month where there's a surplus, we move that amount into a savings account. Money from any odd jobs we happen to pick up go straight to that savings account as well.
Good article!! I'm always looking for ways to save money on shoes. Buying quality and buying online (for me) is certainly important as I always need a new pair to match this outfit or that outfit and it can get pricey. Zappos is a great option (free shipping both ways). My favorite shoes are Danskos as they are so comfortable. Here is my experience on shoe hoarding and finally parting ways with some of my shoes! I'm sure a lot of women can relate.
For $30/month my dog is fully insured at any vet with a 200 dollar deductible and 100% coverage up to 8,000 per calendar year. Includes hereditary and chronic conditions.
My credit card offers cash back. I don't touch the cash back until November or so, when I cash it all in. Some years it has been in the $200-$300 range. And it's not even "my" money I saved, the bank gave it to me! Holla!
Otherwise I've found the best way to save is to auto-deposit from your paycheck. Out of sight, out of mind.
"If you have federal student loans, you can benefit by consolidating them because your overall interest rate is lower"
This was never true. Even when federal student loans had variable interest rates, your new fixed rate post-consolidation was still the weighted average of your then variable interest rates. All consolidation did at that time was change the rate from variable to fixed, which is only good if you think interest rates are going to go up.
Otherwise, NO lenders are offering "consolidation" of private student loans. This type of transaction was never really a "consolidation" but was actually a refinancing of the loans.
There is only one answer: earn more money, give said money to your lenders.
My way of saving is very simple. I have direct deposit into 2 accounts - one is for paying bills and the other is my emergency fund. Otherwise I'd never be able to save a substantial amount.
I wish I saved better... once in a while, I'll just throw money from my checking to my savings account when I have a bit of extra cash.
What I"d like to do is I already divide my direct deposit up -- at some point, the 5% going to another account should be transferred directly into savings. But having just moved into a new state, I've been focusing on spending more, furnishing and such, and haven't made that step yet.
Great post over all, but I have to point out what seems like a contradiction:
If you have federal student loans, you can benefit by consolidating them because your overall interest rate is lower.
vs.
According to federal regulations, your consolidated loan will have an interest rate "based on the weighted average of the interest rates on the loans being consolidated, rounded to the nearest higher one-eighth of one percent."
Can you clarify what you mean?
I'm in a similar situation and I also looked into loan consolidation. In my experience, (and the bulk of my loans were originated after 200) loan consolidation resulted in a slightly higher interest rate with a longer loan term. The monthly payment was half as much, but I decided this wasn't right for me.
If C. really can't make all the payments, your tips about graduated repayment and income-based payments are spot on.
But one there's thing you didn't mention! If C. can afford the payments, but is worried about forgetting to make every payment to every creditor every month, all direct loans and many private loans offer a .25% interest reduction (which isn't much, I know) for people who enroll in automatic payments. Enrolling can be tricky though. My private loan originators hid this information pretty deeply on their website. But it can be found!
For me, this is great. Every paycheck, I update Quicken and enter all the payments that I make every month. I know at the start of the month, how much of my paycheck is left.
First of all, our kids paid/pay for college themselves. They knew about it from early on and they planned accordingly. Results - 1 BS degree, 1 Master's degree and 1 heading to graduation in Dec. 2011. They can do it!!!
I try to keep monthly costs down by combining coupons and sales, being aware of our energy use and taking the appropriate steps to keep that cost down, keep my clothes for years, only have a couple pairs of shoes at one time, and don't go to costly places unless it's a special occasion. My car is 10 years old.
I empty all the spare change from my in wallet into a jar nightly, roll in paper every few months and deposit. It's better to roll yourself than have the machine do it (cheaper!)
We keep a strict budget, pay our credit cards in full each month and do not incur debt. My wife and I raise vegetables in the summer and freeze and can for the winter. We have whole life insurance that will make sure my wife is provided for and if in the future we need cash we will borrow from ourselves through that policy. And my wife reads Wise Bread regularly!
Our movie theater has the first movie of the day for $6, so we'll see our movies on Saturday or Sunday morning (10-noon). It's almost getting 2 for the regular price. Plus they have rewards points, so we get free concessions sometimes and tickets.
There's also a $2 movie theater in the area, but we usually see new releases, so we've seen everything playing there. But that would really cut costs.
Guest
The colour test was thought up to detect lead in the still. Since we make our own stills and use lead free silver solder, we don't worry about that. Fusel oils will show, but you can just smell that. Methanol burns blue, since it is alcohol. This can be smelled and tasted as you are making it. The easiest way, is to measure and take readings. If you know that you have only sugar, you wont get enough methanol to worry about. You can take off the first bit, very small %. Just to be safe. Know what proof your wash is, and you can figure out the output. From the known output, you can figure the projected heads and tales. Old school is to smell and taste it.
I have money taken out automatically from my paycheck before I get it and put into savings, investments, and retirement. My paycheck looks a lot smaller, but I know that when I need money for something, I've got it somewhere. It makes me live on less so I have more for emergencies and big purchases.
I use SmartyPig to save for goals and keep my emergency fund up. Apart from that, I follow a budget very closely.
automatic savings from my checking account every week to a savings account with ING.
OK, while it's not the best way to save, I hide money around the house. If I have an extra $1, $5, or $10 dollar bill, I'll stick it under the TV or computer monitor, in that little zipper pocket in the baby bag we never use, in the pocket of a jacket in the closet that I almost never wear... I could go on and on. When we need or want something that we don't budget for (pizza, new coffe maker, etc.), we have a scavenger hunt!
Consolidation is really just refinancing.
1. As stated, it does NOT automatically lower your interest rate--it is a weighted average of the included loans. So, you may get a lower rate, or a higher rate, depending on the original loan rates.
2. You may see a lower payment, but this will be because you've extended the repayment period--in the long term, higher interest.
3. YOU WILL FORFEIT ANY 'SPECIAL' BENEFITS FROM YOUR ORIGINAL LOANS. This means you may have to give back any rebates, etc, that you received as special offers from your original lenders. Whoever you consolidate with may have some additional bonuses, but you'll have to check that carefully.
This also means you should never, ever, ever consolidate private and federal loans together. Federal loans have better options which you will lose if you roll them together with private loans.
Like mortgage refinancing, your mileage may vary. It largely depends on the specifics of your situation. Personally, I chose to consolidate my federal Stafford loans together to lock in the current interest rate, which is lower than when I took them out. The private loans I'm going to pay back under the original conditions...the only way out is through.
With my husband in school, we make very little money, and saving is really really hard. We keep track of every penny in and out, and at the end of any month where there's a surplus, we move that amount into a savings account. Money from any odd jobs we happen to pick up go straight to that savings account as well.
Turn off all the lights, appliances, etc., when I'm not specifically in the room using them. What a huge chunk of money that's saved each month!!!
Good article!! I'm always looking for ways to save money on shoes. Buying quality and buying online (for me) is certainly important as I always need a new pair to match this outfit or that outfit and it can get pricey. Zappos is a great option (free shipping both ways). My favorite shoes are Danskos as they are so comfortable. Here is my experience on shoe hoarding and finally parting ways with some of my shoes! I'm sure a lot of women can relate.
http://www.jan-leasure.com/save-space-end-shoe-hoarding/
For $30/month my dog is fully insured at any vet with a 200 dollar deductible and 100% coverage up to 8,000 per calendar year. Includes hereditary and chronic conditions.
My credit card offers cash back. I don't touch the cash back until November or so, when I cash it all in. Some years it has been in the $200-$300 range. And it's not even "my" money I saved, the bank gave it to me! Holla!
Otherwise I've found the best way to save is to auto-deposit from your paycheck. Out of sight, out of mind.
"If you have federal student loans, you can benefit by consolidating them because your overall interest rate is lower"
This was never true. Even when federal student loans had variable interest rates, your new fixed rate post-consolidation was still the weighted average of your then variable interest rates. All consolidation did at that time was change the rate from variable to fixed, which is only good if you think interest rates are going to go up.
Otherwise, NO lenders are offering "consolidation" of private student loans. This type of transaction was never really a "consolidation" but was actually a refinancing of the loans.
There is only one answer: earn more money, give said money to your lenders.
My way of saving is very simple. I have direct deposit into 2 accounts - one is for paying bills and the other is my emergency fund. Otherwise I'd never be able to save a substantial amount.
I wish I saved better... once in a while, I'll just throw money from my checking to my savings account when I have a bit of extra cash.
What I"d like to do is I already divide my direct deposit up -- at some point, the 5% going to another account should be transferred directly into savings. But having just moved into a new state, I've been focusing on spending more, furnishing and such, and haven't made that step yet.
Great post over all, but I have to point out what seems like a contradiction:
If you have federal student loans, you can benefit by consolidating them because your overall interest rate is lower.
vs.
According to federal regulations, your consolidated loan will have an interest rate "based on the weighted average of the interest rates on the loans being consolidated, rounded to the nearest higher one-eighth of one percent."
Can you clarify what you mean?
I'm in a similar situation and I also looked into loan consolidation. In my experience, (and the bulk of my loans were originated after 200) loan consolidation resulted in a slightly higher interest rate with a longer loan term. The monthly payment was half as much, but I decided this wasn't right for me.
If C. really can't make all the payments, your tips about graduated repayment and income-based payments are spot on.
But one there's thing you didn't mention! If C. can afford the payments, but is worried about forgetting to make every payment to every creditor every month, all direct loans and many private loans offer a .25% interest reduction (which isn't much, I know) for people who enroll in automatic payments. Enrolling can be tricky though. My private loan originators hid this information pretty deeply on their website. But it can be found!
For me, this is great. Every paycheck, I update Quicken and enter all the payments that I make every month. I know at the start of the month, how much of my paycheck is left.
Best of luck C., and thank you Janey!
I Like Wise Bread on Facebook
First of all, our kids paid/pay for college themselves. They knew about it from early on and they planned accordingly. Results - 1 BS degree, 1 Master's degree and 1 heading to graduation in Dec. 2011. They can do it!!!
I try to keep monthly costs down by combining coupons and sales, being aware of our energy use and taking the appropriate steps to keep that cost down, keep my clothes for years, only have a couple pairs of shoes at one time, and don't go to costly places unless it's a special occasion. My car is 10 years old.
I empty all the spare change from my in wallet into a jar nightly, roll in paper every few months and deposit. It's better to roll yourself than have the machine do it (cheaper!)
I save money by shopping as frugally as possible.
We keep a strict budget, pay our credit cards in full each month and do not incur debt. My wife and I raise vegetables in the summer and freeze and can for the winter. We have whole life insurance that will make sure my wife is provided for and if in the future we need cash we will borrow from ourselves through that policy. And my wife reads Wise Bread regularly!
Up-and-coming "Deals Coupons Bargains" http://cupondeal.com
Our movie theater has the first movie of the day for $6, so we'll see our movies on Saturday or Sunday morning (10-noon). It's almost getting 2 for the regular price. Plus they have rewards points, so we get free concessions sometimes and tickets.
There's also a $2 movie theater in the area, but we usually see new releases, so we've seen everything playing there. But that would really cut costs.
And for some of us, there is the library, which is free even without a code.
Guest
The colour test was thought up to detect lead in the still. Since we make our own stills and use lead free silver solder, we don't worry about that. Fusel oils will show, but you can just smell that. Methanol burns blue, since it is alcohol. This can be smelled and tasted as you are making it. The easiest way, is to measure and take readings. If you know that you have only sugar, you wont get enough methanol to worry about. You can take off the first bit, very small %. Just to be safe. Know what proof your wash is, and you can figure out the output. From the known output, you can figure the projected heads and tales. Old school is to smell and taste it.
I love this point. Basically giving green means going green? I'll take this angle all the way to the bank. Thanks!
I'm telling you, even the little tykes love cash. It's like, a law of nature or something