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The ABCs of Multifamily Cash Flow

You hear the term all the time. After all, it’s an essential concept for apartment investors because it not only reflects the viability of your investment but also its value. 

But what really is cash flow? How do you compute it, and more importantly, how can you increase the cash flow of your multifamily property?

Cash flow is simply the money that moves in and out of your business. For apartments, the cash coming in is in the form of rent, and the cash flowing out is in the form of expenditures like property taxes and utilities. 

Cash flow – or lack of it — is one of the primary reasons businesses, or real estate investments,  fail. Without sufficient cash flow, you’ll run out of money. That’s why it’s essential that you have sufficient capital to not only purchase an apartment property but also sustain it in the event that cash flow fails to be what you projected – for example, if units turn over more often than you expect or rents decline. 

Here are some ways you can improve the cash flow of your apartment investment:

  • Increase rents. This is perhaps the fastest and easiest way to improve cash flow. Consider repositioning the property – investing some capital to improve the units and then bumping rents.
  • Reduce utility costs. Fix leaky shower heads and faucets, which waste water. Install energy-efficient appliances and lighting fixtures. 
  • Decrease expenses. Renegotiate your property management contract, or put it out to bid at the end of the term. Use free rental property listing sites rather than paying a broker to rent apartments.
  • Encourage residents to stay. Moveouts are expensive, so when tenants renew their leases you’ll save time and money on prepping the unit.
  • Add additional streams of revenue, such as pet deposits and rent, garage rentals, vending machines or valet trash. 

Source: century21.com

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I Live For Home Decor, Here Are 30 Fashion-Girl Approved Items I’m Eyeing – Who What Wear

Back when I was commuting to NYC, I paid attention to my room decor, but not nearly as much as I do now where I’m quite literally in my house 99.9% of the time. I think many can agree with me, as I’ve seen girls all over Instagram taking 2020 as an opportunity to completely refresh their space and make it not just more appealing, but cozy as well. You could say I went down a rabbit-hole of home decor, continuously refreshing the #homedecor page on TikTok and adding to my Pinterest board with mid-century modern inspiration. After creating an idea of what I wanted to add to my space, the product search began. Luckily for you, part of my job includes sharing those findings, so that’s exactly what I’m going to do. 

Ahead, you’ll find 30 decor items that’ll add a special touch to any space you put them in. There’s plenty of fashion-girl approved items to choose from, like unique shaped vases, chic candles, and even pots that will take your house plants to a new level. Most of these items may be small, but they’ll still be sure to leave a big smile on your face as you go throughout your day. 

Source: whowhatwear.com

A great presentation: 6 easy tips for staging your own home

There’s no question that staging your décor is advantageous when you’re trying to sell your home.

The strategic editing and placement of your furnishings can be enormously important to boosting its appeal. In a recent NAR survey, in fact, 77 percent of buyers’ agents agreed staging is important to helping potential buyers envision a given home as their own. Fortunately, conducting your own staging need not be complex; you should be able to mimic professional techniques by following a few easy guidelines:

  • Prioritize by room. The NAR reports you’ll get the most visual impact by staging your living room, primary bedrooms, kitchen and extra bedrooms(s), in that order.
  • De-clutter. Cleaning will be easier after you pack away at least 90 percent of your own décor and personal artifacts. Your goal is to create a minimally decorated space buyers can imagine moving in to.
  • Deep clean. Everything must be groomed, sparkling and odor-free inside and out.
  • Divide and conquer. Plan to remove about half your furniture to give the impression of optimal space. If it’s all unpresentable, use stylish rental pieces or fake “pop-up furniture” for showings. Tip: Wherever possible, move display furniture away from walls (a technique known as “floating”) to create groupings that are tied together visually with area rugs.
  • Accessorize inside and out. Create an atmosphere of airiness, friendliness and cheer by selectively adding new flowers, potted plants, attractive seating and welcome mats outside, perhaps fresh flowers and bowls of fruit inside.
  • Optimize light. Add brighter light bulbs, pull back curtains, clean windows and clean (or perhaps update) light fixtures to add to the overall impression of positivity.

Source: century21.com

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Buying A Second Home? 8 Things To Consider

Buying a second home is a major expense. You might have several reasons for wanting to buy a second house. Perhaps, you’re buying a second home for vacations or weekend getaways. Or, it might be that you want to use it as a rental property for rental income. However, there are things to consider before buying a second home.

The benefits of buying a second home

If you’re buying a second home for rental income, you’ll benefit from many perks, especially tax advantages.

For example, you will be able to deduct interest, property taxes, homeowners insurance and other expenses against the property’s income.

Even if the value of the property declines, you will still be able to deduct depreciation from your taxes.

While these benefits are great, the mortgage requirements for a second home are much stricter than for a mortgage on your primary residence. So, make sure you can afford it.

8 Things To Consider When Buying A Second Home

1. Financing options: When you bought your first home, you had available to you what’s called an FHA loan – a government loan program.

FHA loans are an appealing and favorite choice among first time home buyers due to their relatively low down payment requirement.

FHA loans require a 3.5% down payment and a relatively low credit score of 580. However, FHA loans are not available to second home buyers.

That is because FHA requires the home to be the borrower’s primary residence. So, if you’re thinking of buying a second home, you will need to either use a conventional loan or financing it with your own cash.

2. A larger down payment: If you’re using a conventional loan for your second home, you will need to come up with a larger down payment.

Lenders for a conventional loan usually requires a 20% down payment of the home purchase price.

But for a second home which will be used as a rental property or vacation home, expect lenders to ask for 30% or even 35%.

3. A higher credit score. For an FHA loan, you only need a credit score of 580 to qualify. But for a conventional loan on a second home, you will need much higher credit score — usually 750 or higher.

4. Expect a Higher Interest Rate: Lenders will likely charge you a higher interest rate on your second home than your primary residence.

The reason is because they see a second home — be it a vacation home or a rental property — as riskier. They feel that you are more likely to default on a mortgage on your second home than on your primary residence.

5. Do your research: Just as you did your homework when you bought your place to live in, buying a second home is no different.

In fact, you’ll need to spend more time researching rental property. That means researching the neighborhood you will want to invest in, knowing the zoning laws for a particular area, the sales price for the homes in the area.

You will need to know if the area has adequate public transportation, schools, grocery shopping, etc,– things that potential tenants will need.

6. Be prepared to be a landlord: if you’re buying a second home to rent, be prepared to be a landlord.

And be prepared to deal with all of the headaches that come with being a landlord. Do you have sufficient time? Can you deal with problems?

Owning a rental property and being a landlord is time consuming. It is also hard hard work and you have to do your due diligence.

You can hire a property manager to run the property for you. But if that is not feasible, you’ll have to do it yourself.

That means, screening new tenants, collecting rent, dealing with delinquent tenants, fixing problems in the property, such as a broken pipe.

So before buying a second home, make sure you have sufficient time and make sure you can deal with the day-to-day headaches that come with being a landlord.

7. Do you have a stable income? Dealing with a second mortgage on your second home is doable.

While you may be able to afford upfront costs, if you don’t have a stable income, you may have to think twice about whether it is a good idea.

Plus, you still have to consider the additional expenses of owning a second home such as insurance, property taxes, maintenance, repairs, property management fees, etc.

8. Are you out of credit card debt? If you have paid off outstanding and high interest credit card debts, then purchasing a second home may make sense.

But if you’re still struggling to pay your debt, you may need to put buying a second home on hold. 

The bottom line

If you’re thinking about buying a second home, whether it is for investment or vacation, be prepared to save some money, budget for expenses, and come up with a bigger down payment.

More importantly, spend as much time, if not more, researching for the home just as you did when your purchased your primary home.

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.

Source: growthrapidly.com

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Why Refinance Rates Are Higher Than Purchase Loan Rates

Recent figures from Freddie Mac show that mortgage refinances surged in the first quarter of 2020, with nearly $400 billion first home loans refinanced. However, as it turns out, refinancing your mortgage might actually be more expensive than purchasing a new home. 

This surprised us, too — why would there be a difference at all? 

We investigated how refinancing rates and new purchase home loan rates are set, and found several reasons for this rate disparity. On top of the rate difference, mortgage refinancing is even more difficult to qualify for, given the current economy.

Before rushing to refinance your home, read on to gather the information you need to make the right financial decision for your situation.

Pandemic Effects on Home Lending

Just as mortgage rates have stumbled, banks and lenders have tightened the screws on borrowers due to COVID-19, requiring higher credit scores and down payment amounts. Chase, for example, raised its minimum FICO score requirements for home purchases and refinances to 700 with a down payment requirement of at least 20%. 

Low rates have also driven a massive move to mortgage refinances. According to the same Freddie Mac report, 42% of homeowners who refinanced did so at a higher loan amount so they could “cash out.”

Unfortunately, homeowners who want to refinance might face the same stringent loan requirements as those who are taking out a purchase loan. Mortgage refinance rates are also generally higher than home purchase rates for a handful of reasons, all of which can make refinancing considerably less appealing. 

How Refinance Rates Are Priced

Although some lenders might not make it obvious that their refinance rates are higher, others make the higher prices for a home refinance clear. When you head to the mortgage section on the Wells Fargo website, for example, it lists rates for home purchases and refinances separately, with a .625 difference in rates for a thirty-year home loan. 

There are a few reasons why big banks might charge higher rates to refinance, including:

Added Refinance Fees

In August of 2020, Fannie Mae and Freddie Mac announced it was tacking on a .5% fee on refinance mortgages starting on September 1. This fee will be assessed on cash-out refinances and no cash-out refinances. According to Freddie Mac, the new fee was introduced “as a result of risk management and loss forecasting precipitated by COVID-19 related economic and market uncertainty.”

By making refinancing more costly, lenders can taper the number of refinance loans they have to process, giving them more time to focus on purchase loans and other business.

Lenders Restraining New Application Volume

Demand for mortgage refinancing has been so high that some lenders are unable to handle all requests. Reluctant to add more employees to handle a surge that won’t last forever, many lenders are simply limiting the number of refinance applications they process, or setting additional terms that limit the number of loans that might qualify.

Also note that some lenders are prioritizing new purchase loans over mortgage refinance applications since new home buyers have deadlines to meet. With the housing market also on an upswing in many parts of the country, many major banks and lenders simply can’t keep up.

Rate Locks Cost Money

Generally speaking, it costs lenders more to lock the rate for refinance loans when compared to purchase loans. This is leaving lenders disinterested in allocating resources on the recent surge in mortgage refinance applications.

This is especially true since many refinancers might lock in a rate with one provider but switch lenders and lock in a rate again if interest rates go down. Lenders exist to turn a profit, after all, and it makes sense they would spend their time on loans that provide the greatest return.

Tighter Requirements Due to COVID-19

According to the Brookings Institute, Fannie Mae and Freddie Mac have been asking lenders to make sure any disruption to a borrower’s employment or income due to COVID-19 won’t impact their ability to repay their loan. 

Many lenders are also increasing the minimum credit score borrowers must have while making other requirements harder to meet. As an example, U.S. Bank increased its minimum credit score requirement to 680 for mortgage customers, and it also implemented a maximum debt-to-income ratio of 50 percent.

This combination of factors can make it difficult to save as much money with a refinance, or to even find a lender that’s willing to process your application. With this in mind, run the math and to see if refinancing is right for your situation before contacting a mortgage lender.

How Mortgage Purchase Rates Are Priced

Mortgage purchase rates are priced using a similar method as refinance rates. When you apply for a home mortgage, the lender looks at factors like your credit score, your income, your down payment and your other debt to determine your eligibility.

The overall economy also plays a giant role in mortgage rates for home loans, including purchase loans and refinance loans. Mortgage rates tend to go up during periods of speedy economic growth, and they tend to drop during periods of slower economic growth. Meanwhile, inflation can also play a role. Low levels of inflation contribute to lower interest rates on mortgage loans and other financial products.

Mortgage lenders can also price their loans based on the amount of business they have coming in, and whether they have the capacity to process more loans. They might lower rates to drum up business or raise rates when they’re at or nearing capacity. This is part of the reason rates can vary among lenders, and why it always makes sense to shop around for a home loan.

Many people believe that the Federal Reserve sets mortgage rates, but this is not exactly true. The Federal Reserve sets the federal funds rate, which lenders use to ensure they meet mandated cash reserve requirements. When the Fed raises this rate, banks have to pay more to borrow from one another, and these costs are often passed on to consumers. Likewise, costs can go down when the Fed lowers the federal funds rate, which can mean lower costs and interest rates for borrowers.

The Bottom Line

Refinancing your existing mortgage can absolutely make sense in terms of interest savings, but don’t rule out buying a new home instead. Buying a new home could help you save money on interest and get the space and the features you really want. 

Remember, there are steps you can take to become a more attractive borrower whether you choose to refinance or invest in a new place. You can’t control the economy or the Federal Reserve, but you have control over your personal finances.

Improving your credit score right away, and paying down debt to lower your debt-to-income ratio are just a couple of strategies to start. And if you’re planning on buying a new home, make sure you save a hefty down payment amount. These steps help you improve your chances at getting the best rates and terms whether you choose to move or stick with the home you have. 

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Understanding Long-Term Care Insurance

  • Health Insurance

A lot of us don’t like to think about this, but inevitably there will come a time where we will all need help taking care of ourselves. So how can we start preparing for this financially?

Find the Right Health Insurance for You!

Attention: Still Open During the Financial Crisis…

Tip: Act now to see if you qualify for lower rates!

Compare free personalized quotes from the nation’s top providers.

Many people opt to purchase long-term care insurance in advance as a way to prepare for their golden years. Long-term care insurance includes services relating to day-to-day activities such as help with taking baths, getting dressed and getting around the house. Most long-term care insurance policies will front the fees for this type of care if you are suffering from a chronic illness, injury or disability, like Alzheimer’s disease, for example. 

If this is something you think you’ll need later on, it’s crucial that you don’t wait until you’re sick to apply. If you apply for long-term care insurance after becoming ill or disabled, you will not qualify. Most people apply around the ages of 50-60 years old. 

In this article, we will discuss long-term care insurance, how it works and why you might consider getting it.   

How long-term care insurance works

The process of applying for long-term care insurance is pretty straight forward. Generally, you will have to fill out an application and then you’ll have to answer a series of questions about your health. During this point in the process, you may or may not have to submit medical records or other documents proving the status of your health. 

With most long-term care policies, you will get to choose between different plans depending on the amount of coverage you want. 

Many long-term care policies will deem you eligible for benefits once you are unable to do certain activities on your own. These activities are called “activities of daily living” or ADLs:

  • Bathing
  • Incontinence assistance
  • Dressing
  • Eating
  • Getting off and/or on the toilet
  • Getting in and out of a bed or other furniture

In most cases, you must be incapable of performing at least two of these activities on your own in order to qualify for long-term care. When it’s time for you to start receiving care, you will need to file a claim. Your insurer will review your application, records and make contact with your doctor to find out more about your condition. In some cases, the insurer will send a nurse to evaluate you before your claim gets approved. 

It’s very common for insurers to require an “elimination period” before they start reimbursing you for your care. What this means is that after you have been approved for benefits and started receiving regular care, you will need to pay out of pocket for your treatments for a period of anywhere from 30-90 days. After this period, you will get reimbursed for your out-of-pocket expenses and from there.

Who should consider long-term care insurance

Unfortunately, the statistics are against our odds when it comes to whether or not we will eventually need some type of long-term care. Approximately half of people in the U.S. at the age of 65 will eventually acquire a disability where they will need to receive long-term care insurance.  Of course, the problem is, long-term care can be really expensive. Unless you have insurance, you’ll be paying for your long-term care completely out-of-pocket should you ever need it.

Your standard health insurance plan, including Medicare, will not cover your long-term care. The benefits of buying long-term care insurance are that:

  • You can hold on to your savings: Many uninsured seniors have to dip into their savings account in order to pay for their long-term care. Because it’s not cheap, many of them drain their life savings just to be able to pay for it.
  • You’ll be able to choose from a larger variety of options: Being insured gives you the benefit of being able to choose the quality of care that you prefer. Just like with anything else, you get what you pay for when it comes to healthcare. Medicaid offers some help with long-term care, but you’ll end up in a government-funded nursing home. 

How to buy long-term care insurance

If you’ve recently started thinking about shopping for long term-care insurance, you’ll want to keep a few things in mind:

  • Do you mind being insured on a policy with an elimination period?
  • Can you afford all of the costs including living adjustments?
  • Are you interested in a policy that covers both you and your spouse, otherwise known as “shared care”?

There are a few different ways to go about getting long-term care benefits. You can either buy a policy from an insurance broker, an individual insurance company, or in some cases, your employer. Obtaining long-term care insurance through your employer is probably going to be cheaper than getting it as an individual. Ask your employer if it’s included in your benefits. 

Many people also opt to shop for hybrid benefits insurance policies. This is when a long-term care policy is packaged in with a standard life insurance policy. This is becoming a lot more common in the world of insurance. Keep in mind that the approval process may be slightly different for a hybrid insurance policy than of that of a stand-alone long-term care insurance policy. Make sure to ask about the requirements before you apply. 

Best long-term care insurance packages

There are not very many long-term care insurance companies that exist as there once was. It’s hard to wrap our heads around purchasing something that we don’t yet need. However, here are a few examples of companies that offer competitive long-term care packages:

  • Mutual of Omaha: This company offers benefits of anywhere between $1,500 and $10,000. While the main disadvantage of this company’s packages is that they do not cover doctor’s charges, transportation, personal expense, lab charges, or prescriptions, you CAN choose to receive cash benefits instead of reimbursements. This company also offers discounts for things like good health and marital status. This company’s insurance policies offer a wide range of options and add-ons so you can make sure that all your bases are covered.
  • Transamerica: This company’s long-term policy, TransCare III, is good if you don’t want to hassle with an elimination period. If you live in California, this may not be the best choice for you because California’s rates are a lot higher than the rates in other states. Your maximum daily benefit can be up to $500 with this program, with a total of anywhere between $18,250-$1,095,000. 
  • MassMutual: Popular for their SignatureCare 500 policy which comes in both base and comprehensive packages, is a long-term care and life insurance hybrid. This is very appealing to many seniors wanting to kill two birds with one stone. This company also has a 6-year period as one of their term options, which is pretty high.
  • Nationwide: This program sets itself apart from many other programs available because it allows you to have informal caregivers like family, friends, or neighbors. You will receive your entire cash benefit every month and it is up to you to disperse the funds as you would like. Currently, this company does not have their pricing available online, so you will need to speak with an agent to discuss prices.

Source: pocketyourdollars.com

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Simple, Achievable New Year’s Resolutions That Will Make You Richer

Subscribe: Apple Podcasts | Google Podcasts | Spotify | RadioPublic | Stitcher | RSS

Losing weight, exercising more, spending less, paying down debt: all common New Year’s resolutions many make, but few stick to.

Changing the habits of a lifetime isn’t easy. But using a few simple tools makes it a lot more likely.

In this week’s “Money!” podcast, we’re going to explore some wealth-creating New Year’s resolutions, and more importantly, we’re going to talk about some ways to get on track and stay there. Who knows? This could be the year you finally build that emergency fund, plan for a successful retirement, destroy that debt or otherwise make yourself wealthier. And just maybe you’ll find that by doing it right, you’ll gain without pain!

As usual, my co-host will be financial journalist Miranda Marquit.

Sit back, relax and listen to this week’s “Money!” podcast:

Not familiar with podcasts?

A podcast is basically a radio show you can listen to anytime, either by downloading it to your smartphone or other device, or by listening online.

They’re totally free. They can be any length (ours are typically about a half-hour), feature any number of people and cover any topic you can possibly think of. You can listen at home, in the car, while jogging or, if you’re like me, when riding your bike.

You can listen to our latest podcasts here or download them to your phone from any number of places, including Apple, Spotify, RadioPublic, Stitcher and RSS.

If you haven’t listened to a podcast yet, give it a try, then subscribe to ours. You’ll be glad you did!

Show notes

Want more information? Check out these resources:

About me

I founded Money Talks News in 1991. I’m a CPA, and I have also earned licenses in stocks, commodities, options principal, mutual funds, life insurance, securities supervisor and real estate.

Disclosure: The information you read here is always objective. However, we sometimes receive compensation when you click links within our stories.

Source: moneytalksnews.com

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Personal Financial Improvement With The Fruit Of The Spirit

It’s easy to judge others by their actions as we judge ourselves by our intentions.

Character development can prove to be a challenging and uphill climb. We want to do well but sometimes find it difficult to do so.

Some days we are living a life of victory and other days we’re too ashamed to look ourselves in the mirror!

There are days when we’re crushing our financial goals and other days when our budget is busted and we’re disgusted. Such is life.

Thankfully we’ve been given the fruit of the spirit.

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message that I delivered recently that explains it in greater detail.

Make friends of money but do not love it.

#2 – Joy

The Fruit Of The Spirit - Joy

The Fruit Of The Spirit - Joy

Joy is not based on our circumstances or situations – that would be happiness. James encouraged us to count it all joy when we fell into trying situations.

We can choose joy or misery.

It’s impossible to avoid difficult financial situations. Each of us will face a situation that tests our faith and at times our sanity. During those times, count it all joy. I know it’s easier said than done but it can be done.

Let them shout for joy and be glad, who favor my righteous cause; and let them say continually, “Let the Lord be magnified who has pleasure in the prosperity of His servant” (Psalm 35:27, NKJV).

It’s okay to win at wealth. According to Psalm 35:27 God takes pleasure in it! I am convinced that we could shout for joy a bit more.

#3 – Peace

The Fruit Of The Spirit - Peace

The Fruit Of The Spirit - Peace

Money fights are one of the leading causes of marital friction and ultimately divorce.

I know that things can get nasty when a couple fights about money. Egos are bruised, weaknesses are exposed, dreams are shattered, and hope is deferred.

Peace, as mentioned in the fruit of the spirit, is the absence of or the end of strife. It’s a state of untroubled and undisturbed well being. Doesn’t that sound cozy & comfy?

Let the peace of Christ rule in your hearts, since as members of one body you were called to peace. And be thankful (Colossians 3:15, NIV)

Sounds as though we have a part to play. It’s up to us to allow the peace to rule in our hearts.

Yes, it’s much easier to lash out in anger but that is not peaceful. Our fallen nature wants to cast blame, point fingers, and make sweeping accusations. Those behaviors do not produce peace.

Be thankful. The budget is challenging and sometimes there is more month than money. We all still have reasons to be thankful.

I’ve realized that I am often thinking about things I do not have rather than the countless blessings that I do have. There are billions of people who would gladly trade their problems for mine. When the budget is tough, take some time to truly be thankful for what God has already done.

Allow the peace of God to rule in your heart and family.

#4 – Patience

The Fruit Of The Spirit - Patience

The Fruit Of The Spirit - Patience

I totally expected you to skip this one. Few people like to talk about patience. Furthermore, many Christians are superstitious about it. They are convinced that if they mention it, all kinds of crazy things will happen to them. Not true. Yes, we must overcome but God is not a despotic dictator.

Before we go deeper, a definition of patience would be helpful. It’s not having a sunny disposition while waiting at the DMV for half a day. It’s much more than that.

Patience is the quality that does not surrender to circumstances or succumb under trial. A person operating in patience is consistently constant.

My brethren, count it all joy when you fall into various trials, knowing that the testing of your faith produces patience. But let patience have its perfect work, that you may be perfect and complete, lacking nothing (James 1:2-4, NKJV). 

Bad things, challenging things, and difficult circumstances will find you. You can run but you cannot hide. When these circumstances hit, it’s time to adjust our perspective.

Crying about how life is unfair won’t solve the problem. Actually, it might be prolonged.

When these tests happen count it or consider it joyfully. Why? God is still at work in us both to will and to do of His good pleasure. He has not give up on us. He’s still working on us! (That’s actually good news!)

I know that it’s difficult. I’m in a season of life where it seems that I have the anti-Midas touch. I feel like Andy in The Office when Michael gave him all of the largest accounts as a going away present. “I’m going to lose them all!”.

Yet, when I fall into these trials I know God is working in me. Patience is being developed and God will reward it.

#5 – Kindness

The Fruit Of The Spirit - Kindness

The Fruit Of The Spirit - Kindness

Kindness, regrettably, does not carry the same gravitas as some of the other fruit of the spirit. Perhaps it is misunderstood. Hopefully after today you will have a newfound appreciation of the persimmon of the fruit of the spirit known as kindness.

The fruit of kindness is having the harmlessness of a dove without the wisdom of the serpent. I chalk it up to that feeling you get when you want to be generous but before your brain kicks and talks you out of it. You simply want to be a blessing.

It’s also the mellowing of our character. As we get older we’re often less antagonistic and more apt to give a person the benefit of the doubt. We’re generally kinder after surviving this thing called life.

#6 – Goodness

The Fruit Of The Spirit - Goodness

The Fruit Of The Spirit - Goodness

Goodness is character energized and expressing itself in action. It’s the desire to DO something. Kindness supplies the idea to be a blessing and goodness puts the plan to action.

Earning money is awesome but we all eventually realize that there is more to life than collecting another dollar. Some desire to change their financial, family tree.

Others want to use resources to start a scholarship or feed children or to start a hospital.

Goodness energizes our kindness and makes things happen.

#7 – Faithfulness

The Fruit Of The Spirit - Faithfulness

The Fruit Of The Spirit - Faithfulness

Sadly, faithfulness is not the word I would choose when discussing the money habits of most people.

Almost 80% of Americans are living paycheck to paycheck. Nearly 40% of Americans could not cover a $400 emergency with cash.

However, these same people have luxuries that people just twenty years ago did not enjoy.

The average car payment is now over $550 per month. Car loans are easy to get. I know many twenty + year olds who are driving cars that are new – and they have the payment to prove it. They have little discretionary income as much of it spent before it is earned.

Moreover it is required in stewards that one be found faithful (I Corinthians 4:2, NKJV).

Financial faithfulness is not a mere suggestion. The language Paul uses is quite strong. Faithfulness is required.

# 8 – Gentleness

The Fruit Of The Spirit - Gentleness

The Fruit Of The Spirit - Gentleness

Gentleness gets a bad rap just like kindness.

In some translations the word meekness is used instead of gentleness. Yep, not much better. However both words are powerful!

We’re told that Moses was meek. Moses marched into Pharaoh’s palace and bossed him around! We read in the Psalms and in the Sermon on the Mount that the meek shall inherit the earth. Not too shabby.

Jesus described Himself as gentle. Gentle doesn’t mean soft. A gentle person is not a pushover.

The one who has fully developed the fruit of gentleness is powerful and is fully aware of the power. Jesus entered Jerusalem on the colt of a donkey – lowly and gentle. He was fully aware of who He was and the power at His disposal. At His disposal, were legions of angels who could have wiped out humanity. He chose the route of gentleness.

There is no need to brag about money or wealth. No need to use wealth as weapon against others.

Exalting ourselves based on financial scorekeeping is bad form and quite tacky. Remain humble. We’re simply managing God’s resources. He is trusting you with it. Run it like He would run it – gently.

For who makes you differ from another? And what do you have that you did not receive? Now if you did indeed receive it, why do you boast as if you had not received it? – I Corinthians 4:7

#9 – Self Control

The Fruit Of The Spirit - Self Control

The Fruit Of The Spirit - Self Control

I’m a firm believer in living a life free from debt. The Bible never mentions debt in a positive manner. The borrower is slave to the lender.

Living a life free of debt can be challenging because debt is a ubiquitous method of financing a life style we cannot afford. Willingly going into debt (bondage) could be viewed as being discontent with God’s provision.

We feel as though we deserve a European vacation but the cash is not available. The siren song of Visa and MasterCard can be seductive. Before we know it we’re charging coffee and croissants at a bistro in the Latin Quarter of Paris.

Self-control is the fruit of the spirit that requires us to roll up our sleeves. This is the one that takes discipline. Jesus said if we wanted to be His disciple we would need to deny ourselves daily. Easy? Nope. Worth it? Yes.

Conclusion

Gifts of the Spirit are given but the fruit of the spirit must be developed.

If we dig deep we could witness dramatic financial results simply by developing the fruit of the spirit in our lives. These traits are inside each of us.

Let’s ensure they blossom.

Personal Financial Improvement With The Fruit Of The Spirit

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Source: biblemoneymatters.com

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How to Budget Groceries: 11 Easy Tips

Have you ever sat down to go over your budget only to find out that you’ve outrageously overspent on food? Local, organic, artisan goods and trendy new restaurant outings with friends make it easy to do. With food being the second highest household expense behind mortgage or rent, our food choices have a huge impact on our budget. Using this monthly budget calculator can also help guide how to budget for food. 

You may be surprised to find out that the most nutrient-dense foods are often the most budget-friendly. It’s not only possible, but fun and easy to eat nourishing, delicious food while still sticking to your budget. Here are 11 ways to help you learn how to budget groceries.

1. Track Current Spending

Before you figure out what you should be spending on food, it’s important to figure out what you are spending on food. Keep grocery store receipts to get a realistic picture of your current spending habits. If you feel inclined, create a spreadsheet to break down your spending by category, including beverages, produce, etc. Once you’ve done this, you can get an idea of where to trim down spending.

2. Allocate a Percentage of Your Income

How much each household spends on food varies based on income level and how many people need to be fed. Consider using a grocery calculator if you’re not sure where to start. While people spent about 30 percent of their income on food in 1950, this percentage has dropped to 9–12 today. Consider allocating 10 percent of your income to food as a starting point, and increase from there if necessary.

3. Avoid Eating Out

This is the least fun tip, we promise. Eating out is a quick and easy way to ruin your food budget. If you’re actively dating or enjoy going out to eat with friends, be sure to factor restaurants into your food budget — and strictly adhere to your limit. Coffee drinkers, consider making your favorite concoctions at home.

4. Plan Your Meals

It’s much easier to stick to a budget when you have a plan. Plus, having a purpose for each grocery item you buy will ensure nothing goes to waste or just sits in your pantry unused. Don’t be afraid of simple salads or meatless Mondays. Not every meal has to be a gourmet, grandiose experience.

5. Keep a Fridge Grocery List

Keep a magnetized grocery list on your fridge so that you can replace items as needed. This ensures you’re buying food you know you’ll eat because you’re already used to buying it. Sticking to a list in the grocery store is an effective way to keep yourself accountable and not spend money on processed or pricey items — there’s no need to take a stroll down the candy aisle if it’s not on the list.

6. Eat Before You Go to the Store

If your mother gave you this advice growing up, she was onto something: according to a survey, shoppers spend an average of 64 percent more when hungry. Sticking to a budget is all about eliminating temptations, so plan to eat beforehand to eliminate tantalizing foods that will cause you to go over-budget.

7. Be Careful with Coupons

50 percent off ketchup is a great deal — unless you don’t need ketchup. Beware of coupons that claim you’ll “save” money. If the item isn’t on your list, you’re not saving at all, but rather spending on something you don’t truly need. This discretion is key to saving money at the grocery store.

8. Embrace the Bulk Section

Not only is the bulk section of your grocery store great for cheap, filling staples, but it’s also the perfect way to discover new foods and bring variety into your diet. Take the time to compare the price of buying pre-packaged goods versus bulk — it’s almost always cheaper to buy in bulk, plus eliminating unnecessary packaging is good for the planet.

Bonus: a diet rich in unprocessed, whole plant foods provides virtually every nutrient, ensuring optimal health and keeping you from spending an excess amount on healthcare costs.

9. Bring Lunch to Work

Picture this: you’re trying to stick to a strict food budget, and one day at work you realize it’s lunchtime and you’re hungry. But alas, you forgot to pack a lunch. All the meal planning and smart shopping in the world won’t solve the work-lunch-dilemma. Brown-bagging your lunch is key to ensuring your food budget is successful. Plus, it can be fun! Think mason jar salads and Thai curry bowls.

10. Love Your Leftovers

Would you ever consider throwing $640 cash into the trash? This is what the average American household does every year — only instead of cash, it’s $640 worth of food that’s wasted. With millions of undernourished people around the globe, throwing away food not only hurts our budget but is a waste of the world’s resources. Tossing food is no joke. Eat your leftovers.

11. Freeze Foods That Are Going Bad

To avoid wasting food, freeze things that look like they’re about to go bad. Fruit that’s past its prime can be frozen and used in smoothies. Make double batches of soups, sauces, and baked goods so you’ll always have an alternative to ordering takeout when you don’t feel like cooking.

Sticking to a food budget takes planning and discipline. While it may not seem fun at first, you’ll likely find that you enjoy cooking and trying a variety of new foods you wouldn’t have thought to use before. Being resourceful and cooking healthfully is a skill that will benefit your wallet and waistline for years to come.

Sources: Turbo | Fool | Forbes | Medical Daily | GO Banking Rates | Value Penguin

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Source: mint.intuit.com

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How to Make $30,000 a Month Flipping Houses

I have flipped more than 200 houses in my career and while I love flipping, it is not easy! We have flipped 26 houses per year multiple times, and I can truly say that the more houses you flip, the more problems you have. Now, when I say house flipping, I am talking about buying houses, remodeling them, and selling them. Some people say they “flip houses” when they are wholesaling, which is buying and selling houses very quickly without remodeling them. Over the years, I have made $30,000 a month flipping houses and even more. It takes money, a team, and thick skin to make that kind of money, but it is not impossible by any means.

How much can you make on a single house flip?

I have written articles like this before and I love to break down the numbers to see how to actually do this, not just live in a fantasy world where good thoughts allow money to fall into your lap. I am also a fan of good thoughts, but that is not all it takes! The last article I wrote in this format was how to make $10,000 a month with rental properties. I love rentals and to be honest, I prefer rentals over flips, but flips allow me to buy more rentals.

I buy flips from $100,000 to $300,000 and they tend to make me from $20,000 to $50,000 per flip. I have made $100,000 or more on a flip before and I have also lost money on flips before. For the most part, I want to make at least $30,000 on every flip I do. That also makes this article really easy to write. If you want to make $30,000 a month flipping houses, flip one house a month. There the article is done!

While that math is simple, the task of flipping one house a month is not simple. Flipping one house can be tough let alone 12 ina year. We have done more and will continue to do more but it was not easy to get to this point. You can see a video of one of my best and most interesting flips below:

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Why is flipping houses hard?

A lot of people watch the house flipping television shows and think flipping is like what they see on TV. You buy a house, change the floorplan, decide what are the best design choices, and boom you make $50,000 or $100,000. The reality of flipping is much different from the television shows. Here is a break down of how it actually works:

  • Line up financing: Most people do not have the cash to flip houses so they borrow money from hard money lenders, friends, or the bank.
  • Find the deals: There are a lot of people who want to flip houses. The deals are not just sitting there for anyone to buy who wants to make $50,000. It takes a lot of work and patience to find the deals from the MLS, wholesalers, auctions, direct marketing, etc.
  • Find contractors: I do not do any of the work on house flips myself. I use contractors and subcontractors to handle it all. If you want to make $30,000 a month flipping houses you will need to hire contractors as well. Finding decent people to work on the houses is one of the toughest parts of the business.
  • Decide on what to repair: On TV, they usually go all out making tons of repairs to properties because that is what gets attention. In reality, the goal is to make only the repairs that are needed to sell the house. The bigger the remodel, the longer it takes and usually the less money you make.
  • Manage the repair process: Things rarely go as planned so someone has to manage the repair process and make sure the work is being done on time and the right way. Some of the biggest disasters come when a flipper trusts their contractor without oversite and huge mistakes are made or no work is being done.
  • Sell the house: It is not always easy to sell flips either. I am a real estate broker and list my flips for sale on the MLS. It is in almost everyone’s best interest to use an agent to sell their houses which cost money. You also need to make sure the home is clean, the work is completely done, and possibly stage the home.

Many things can go wrong during a flip and even experienced flippers like myself sometimes lose money. You have to stay on top of things and constantly tweak the business model. Materials are always getting more expensive as is labor and other costs. We are always finding new ways to get better deals in order to keep that same amount of profit.

To get that $30,000 average profit on a house everything needs to run smoothly and you need to assume there will be extra costs along they want that you are not accounting for.

My book Fix and Flip Your Way to Financial Freedom (197 reviews) goes over the ins and outs of flipping and how to actually do what I talk about in this article. It is on Amazon as an ebook, paperback, and audiobook. 

How much money do you need to flip houses?

Another roadblock for many investors is finding enough money to flip houses, especially if they have a lot of deals at once. There are lenders who will finance flips but the investors almost always need some of their money as well. You may be able to finance 90% of the deal but it is tough to finance all of it. There are also carrying costs, and financing costs while you own the property. The more money you borrow the more that money will cost you. We tend to need $50,000 or more per flip we do. If we have 10 flips going at once, that means we have at least $500,000 of our own cash tied up in those deals when we use loans. If we used all cash we would have $3,000,000 tied up in those ten deals!

It takes a lot of flips going at once to make $30,000 a month because it takes a while to flip a house.

How long does it take to flip a house?

I would love to say it takes three months to flip a house but in reality it takes much longer. We have a lot going at once so we cannot always start working on them right away. It may be a month or two before we can start the work, then it takes time to complete the work, and it takes time to sell the house once it is done as well.

Our fast flips take from 3 to 6 months to complete but may take from 6 to 10 months and a few take over a year from the time we buy them to the time we sell them. I would say our average has been around 8 months from beginning to end.

Because it takes so long to flip houses we need to have a lot of flips going at once to flip 10, 20 or even 26 houses a year which we have done a few times.

How many flips do you need going to make $30,000 a month?

If you want to make $30,000 a month flipping houses and you make $30,000 per flip that is pretty easy math. You need to flip 1 house a month or 12 houses a year. If it takes us from 6 to 10 months to flip a house that means you would need to have from 6 to 12 house flips going at once.

It took me many years to get the point where I could do that many flips, but we usually have from 15 to 20 flips going at one time and that equates to 20 to 26 flips a year selling.

Just remember this is all theory and reality can be much different! You might have some flips that lose money or take way longer than you think that drag down all of your averages. It may take more flips to make that goal or less if you manage to increase your profit margins.

If you decide to build a business like I have where you hire people to help you must factor in those costs as well. I have a project manager, bookkeeper, and other people who help with the flips as well. I also have many other things going on like this blog, my real estate brokerage, my rentals, and more!

If you want to see all of our flips in action be sure to subscribe to the InvestFourMore YouTube channel!

Source: investfourmore.com

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