Best Ways to Fund Spring Home Repairs

/in

Now that spring has blossomed into full-on allergy mode, the time we spend outside is even more appreciated — especially with the help of a good antihistamine. The next time you venture out, take a moment to do a walk-around inspection of the old homestead. See some room for improvements? Maintaining, repairing and upgrading a home can range in cost from a minor trickle to a major cash drain.

Now that spring has blossomed into full-on allergy mode, the time we spend outside is even more appreciated — especially with the help of a good antihistamine. The next time you venture out, take a moment to do a walk-around inspection of the old homestead. See some room for improvements? Maintaining, repairing and upgrading a home can range in cost from a minor trickle to a major cash drain.

Paying for minor repairs

If you see the need for only modest repairs, you might be able to tackle them within the bounds of your cash flow. But remember, your emergency fund is best left intact for unexpected cash needs, not for replacing a gutter or downspout.

If you have a bit of a cash cushion in your checking account or in a contingency savings account, small home projects can be covered with your close-at-hand liquidity, even if it means a temporary trim to discretionary spending, such as a couple of “family nights out” spent at home.

If the need exceeds the cash

If your home-repair needs are more costly, you might consider turning to your secondary tier of financial resources: a credit card. While average credit card interest rates are in the double digits, you can do a lot better, particularly with introductory rates that can last more than a year.

When it comes to minor improvements or repairs, having that extra spending power available will allow you to fix what’s needed now, while budgeting the repayment over a period of time. It’s best to keep that payback schedule from extending longer than three to six months.

If you need to spread the payments out beyond that, you might protect your credit score — and pay less interest — by considering our next funding alternative.

Raising the roof on expenses

Larger home upgrades or repairs are going to require bigger investments. A new roof, exterior painting, foundation repairs or other projects will protect your home’s value — and can end up costing more the longer you delay. Under these circumstances, a loan often can get you more than your credit card limit will allow, as well as save you money.

A secured loan will offer a better rate than an unsecured loan, while both likely will offer much better long-term interest rates than a credit card. Longer repayment terms will be favorable for these larger projects, too.

Covering the cost of major upgrades

Your strolling inspection — in, around and outside your home — might have revealed a need for a major upgrade. Perhaps the furnace has heaved its last gasp, or the air conditioning is already struggling with the warmer spring weather. Or it might be time to do a bit of renovation to a bath or kitchen that is well past its “best by” date.

In that case, it might be well worth tapping a home equity line of credit, or HELOC. Accessing the value of your home — up to 100% of your existing equity — will allow you even greater financial flexibility. Once approved for an open-ended revolving credit line, you can draw from it at any time, as needed. And you’ll pay interest only on the balance you’ve withdrawn.

Not only are the variable rates very favorable on HELOCs, but the interest paid may be tax-deductible. Your tax advisor can give you details on that. And repayment terms can stretch as long as 15 years, depending on the amount financed.

From a small repair to a major improvement, there are prudent ways to fund whatever spring home project you decide to undertake.

© Copyright 2016 NerdWallet, Inc. All Rights Reserved

YToxOntzOjE3OiJ0cmlnZ2VyX3JldmlzaW9ucyI7czoxOiIxIjt9

A Home Equity Line of Credit from F&M Bank is a smart and flexible way to reach your short and long-term goals.|fa-wrench|589|Special Rate HELOC|1

Building a Credit Score from Scratch

/in

Young adults starting out on their own often bump into a cold fact of financial life: Having no credit history can limit your options just as much as having bad credit does. Lenders, rental offices and insurance companies use your financial track record to judge how likely you are to pay debts and bills — and if you’re a blank slate, you’re generally considered a risk.

Young adults starting out on their own often bump into a cold fact of financial life: Having no credit history can limit your options just as much as having bad credit does. Lenders, rental offices and insurance companies use your financial track record to judge how likely you are to pay debts and bills — and if you’re a blank slate, you’re generally considered a risk.

Fortunately, there are some simple steps you can take to quickly establish your credit record.

Start with a credit card

One of the quickest ways to develop a positive credit history is with a credit card, which lets you show that you handle small amounts of debt responsibly month after month. Even if you can’t qualify for a card on your own, there are ways to take advantage of this credit-building tool:

• Recruit a co-signer. You might be able to get a card if someone with good credit — such as a parent — is willing to co-sign the application with you. You and your co-signer will be equally responsible for the charges you make, along with any late-payment fees or other penalties if you don’t make payments on time. Also, late or missed payments can damage your credit score and your co-signer’s, too. But every time you make a payment on time, it will shore up your credit history.

• Become an authorized user. Another option is to ask a family member or significant other to add you to their credit account. First, though, make sure their bank reports activity by authorized users to the major credit bureaus — otherwise, this won’t help your credit score. And remember that here, too, your activity with the card can affect someone other than yourself.

Next steps

Once you have a card, your behavior with it will determine how high, and quickly, your credit score rises. To keep moving in the right direction:

• Make on-time payments. The most common credit-scoring model is the FICO score, and it is based on a combination of factors. The biggest, making up 35% of your score, is your payment history. Pay all of your bills (not just your credit card) on time to keep your score rising.

• Keep balances low. Try not to use your card up to or near your credit limit; it looks bad to creditors if your cards are maxed out. A good rule of thumb is to keep your balances at or below 30% of your total credit limit.

• Don’t over-apply for cards. According to a recent NerdWallet study that included an analysis of millennials’ credit scores, many young adults are applying for the wrong credit cards and getting rejected — and that’s hurting their credit, since excessive inquiries can make someone look like a bad credit risk. Apply only for cards you really want, and space out those applications.

• Check your credit reports. You have the right to get a copy of your credit report from each of the three major reporting agencies — Experian, Equifax and TransUnion — once a year for free. Review yours and report any errors that might hurt your score.

It can be easier to build up good credit if you have a professional helping you. Consider consulting with a financial institution to help figure out the best way to establish credit and make other important financial decisions.

© Copyright 2016 NerdWallet, Inc. All Rights Reserved

YToxOntzOjE3OiJ0cmlnZ2VyX3JldmlzaW9ucyI7czoxOiIxIjt9

Ready to start establishing credit today?|fa-cc-visa|171|Visa Credit Cards|1

19 Ways to Save on a Wedding

/in

First comes love, then comes paying for the wedding. Weddings cost an average of $35,329 nationally — excluding the honeymoon — according to The Knot’s 2016 Real Weddings Study. That’s the highest reported average cost since the survey began in 2006.

First comes love, then comes paying for the wedding.

Weddings cost an average of $35,329 nationally — excluding the honeymoon — according to The Knot’s 2016 Real Weddings Study. That’s the highest reported average cost since the survey began in 2006.

But you’re not obligated to spend that much, and many couples don’t. We asked experts how you can set a reasonable budget and cut costs on some of the most expensive elements of your upcoming nuptials.

The Budget

1. Be realistic

Don’t start your marriage in debt, says Anne Chertoff, a trend expert for WeddingWire. “Most couples don’t anticipate how much a wedding is actually going to cost, so they end up underestimating what they’re going to spend and then going over their budget,” she says. Set realistic spending limits from the beginning that account for all areas of your wedding. If you overspend in one area, cut back in another.

2. Use a credit card —  responsibly

It can be smart to use a credit card for wedding-related purchases — as long as you’re not taking on more debt than you can afford to pay off. Chertoff recommends using accumulated points toward your honeymoon, particularly if you have a card with travel rewards.

The Date

3. Consider a winter wedding

Not all wedding dates are created equal. Find out which are most popular on WeddingWire’s wedding date calendar. If there’s more demand for a given date, you’ll usually pay a higher price for a venue. You could score a discount for choosing a less popular month, such as January or February, Chertoff says.

4. Book a Sunday

Saturday is a popular day for weddings, but it’s also generally the most expensive day to get married. You can likely reserve your venue at a lower price if you hold your wedding on a Sunday, or even a weeknight.

The Guests

5. Put a twist on ‘plus one’ etiquette

Instead of giving all guests older than 18 a “plus one,” limit them to couples you socialize with regularly, says Sharon Naylor, author of dozens of wedding books, including “1,001 Ways to Save Money … and Still Have a Dazzling Wedding.” To avoid awkward questions, explain how you’re determining the guest list.

6. Mix up your invitations

You’ll probably want to mail out traditional invitations, says Stephanie Cain, an editor at The Knot. But you can post wedding weekend itineraries on your wedding website and email save-the-date alerts. That’ll save you the cost of printing and postage.

The Dress

7. Check out a prom shop

Brides aren’t finding dresses at just the bridal shop these days, Naylor says. You can pick up a white dress in the prom or party dress section of any department store. The popularity of colored dresses makes formal gowns a nice substitute, too.

The national average spent on a wedding dress was $1,564 in 2016, according to The Knot’s latest Real Weddings study. A simple Google search for white prom dresses pulls up options that cost a fraction of that.

8. Budget for your accessories

There’s more to your dress budget than the dress. Cain suggests taking extras such as tailoring fees, shoes, jewelry and a clutch into account when setting a spending limit. To save on your veil, Chertoff recommends making it your “something borrowed” and wearing a family member’s.

The Venue

9. Negotiate

Lots of unexpected expenses can pop up during planning, including cake-cutting and corkage fees or power for your DJ and photo booth. Naylor says you don’t have to take them as they are. If a cost seems unreasonable, respectfully request to have it removed.

10. Use the venue’s resources

Some venues provide tables and linens, Cain says. If you opt for a backyard wedding, you’ll have to rent items like these. Always read a venue’s contract in its entirety before signing so you know what is and isn’t included.

And keep an eye out for requirements. You might not want to be obligated to use the venue’s caterer, for instance.

The Decor

11. Communicate with your vendors

Naylor says some floral designers have warehouses with excess inventory they’re willing to give away or lend out for free. Once you’ve placed an order, ask about expanding your options.

12. Borrow from other newlyweds

Ask friends who have recently gotten married if you can borrow centerpieces or other items that they have left over.

13. Scout out decorations at craft stores

Look for wedding decorations — especially light-up decor — in places like craft stores. They have “more than glue guns and glitter,” Naylor says.

The Flowers

14. Stick to in-season blooms

You might have your heart set on pink flowers to accent your bridesmaids’ bouquets, but consider settling for a different shade or variety. Local blooms that are in season at the time of your wedding are generally less expensive. Also, “local flowers tend to look fresher because they didn’t have to travel for days,” Cain says.

15. Get the most out of your flowers

A larger flower, such as a hydrangea, naturally looks fuller and takes up more space with fewer stems, Cain says. And you can repurpose ceremony flowers for the reception, instead of buying more. For instance, use a ceremony arch to adorn your sweetheart table at the reception.

The Menu

16. Go for a shorter cake

The more tiers on your cake, the more it’ll cost you. Cain suggests sticking to two tiers and having sheet cakes to serve. The cake you cut for your pictures doesn’t have to feed all of your guests.

17. Cut down on drink sizes

Arrange for the bartender to serve your signature drinks in smaller glasses. “Most people will go and try the signature drink, take a sip, put it down and go back to their regular drink,” Naylor says. Minimize the cost of your bar tab by opting for shooters.

The Rest

18. Choose a charitable favor

Don’t want to buy a favor for each wedding guest? Make a charitable donation on behalf of all your guests, Chertoff says. That way, you can set the amount you’re comfortable spending, donate to a cause you care about and write off the contribution on your taxes.

19. Limit your photographer’s hours

Save money by shaving off some of the time your photographer and videographer are present, Naylor and Cain suggest. You’ll likely want them there for the ceremony, but you might not need footage of the end-of-reception dancing.

Bottom line, these experts suggest keeping a close eye on your wedding spending. “Anybody — whether they have a $10,000 budget or a $500,000 budget — is still working on a budget,” Cain says.

Devote the biggest parts of your budget to the areas that are most important to you and be willing to compromise on the rest.

The article 19 Ways to Save on a Wedding originally appeared on NerdWallet.

YToxOntzOjE3OiJ0cmlnZ2VyX3JldmlzaW9ucyI7czoxOiIxIjt9

Do you really need toasters and sheets for wedding gifts? Why not encourage gifts to help you realize the dream of home ownership?|fa-heart|152|New Beginnings Saver|1