January 2017 - WiseDollar

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7 Ways to Build Credit Without Credit Cards

January 30, 2017 Wise Dollar Credit 2 comments

The most popular and probably fastest way to build credit is to get a credit card. Those small plastic cards of magic can make or break a person and their credit scores.

Though a lot of people can manage and actually better their credit with credit cards, there are still a?lot who can?t. If you need to raise your credit score but you don?t trust yourself with plastic, you need an alternative. Here are seven alternative methods to build credit without credit cards.

Paying All Your Bills on Time

Sometimes rent and other bills are reported to the credit bureaus. This can help your credit score tremendously. Paying on time, and in full, will help your credit score. The more regular you are with payments, the higher your credit score will be, which can save you money by helping you get a better interest rate on future loans.

Student Loans

Now you shouldn?t take out student loans just to build your credit. Student loans aren?t there to increase your credit score. They are meant?to help pay for your schooling. But, student loans are a great way to build your credit by paying on time and making regular payments. It?s an installment loan. This means you pay for it over time and eventually pay it off, which is different than revolving credit. Credit cards are revolving credit, where you can continue to make charges and never actually have your entire balance paid off.

Get a Small Personal Loan

Personal loans can be attained from a bank or credit union. These don?t usually need to be backed by money you put down and you can get them for small amounts. Talk with your banker to see which or loans would be good for you to build, or rebuild, your credit. If the interest rate is low enough on a personal loan, you might even consider taking one out for a large planned purchase, even if you have the cash saved up already, just to improve your credit score.

Take Out a Special “Credit Builder” Loan

These loans are meant for people to help build their credit. The loan amount is minimal and you work for a year or two to pay it off. The loan payments are put into an interest-bearing CD or a regular savings account. This will help you build credit as long as you pay on time. The bank reports these payments to the credit bureaus to help improve your credit score.

CD Loans or a Passbook Loans

Another way to build credit without a credit card is with a CD loan or Passbook loan. These are loans made again what you already have in savings. This way if you default on payments, the money is already there to cover your missed payments. CD or Passbook loans are meant specifically for people who have no credit or a very low credit score.

Utilize Peer Lenders

Peer lending only helps your credit score if they report to the credit bureaus, so this is something to ask about before you apply for a peer loan. Peer loans could have higher interest rates than bank loans, but it’s still a potential idea to help increase your credit sore.

Get Signed as an Authorized User

This means you get a family member or a close friend to make you an authorized user on their credit card. So technically you are using a credit card, but you are not fiscally responsible for the payments. If your family member pays their bill on time, it can help your credit score. Discuss the usage terms for the credit card with your family member beforehand so no one?s credit gets hurt. This can backfire if your family member or friend doesn’t pay their bill on time or has a low credit score themselves.

There are ways you?can build credit?without credit cards, but it takes discipline and time. Budgeting, keeping up on payments, and paying off debt are huge for increasing your credit score. It?s doable but you need to be diligent.

Have you ever raised a low credit score? Did you use any of these ideas to build credit without credit cards?

Photo courtesy of: CafeCredit.com

4 Reasons You Might Need a Side Hustle

January 25, 2017 Wise Dollar Side Gigs 2 comments

Thanks to the rise of the internet age, the world of the ?side hustle? has been born.

These days, it isn?t always enough for people to just work at their main job. Instead, countless people are combining their regular job with a side hustle in order to make the budget look better at the end of the month.

A side hustle can be just about anything that makes you extra money, from a part-time online job, to starting your own website or blog, and much more.

The potential opportunities for a side hustle are nearly endless, as long as you are willing to put in a bit of work.

There are plenty of opportunities out there to be had, but how do you know if you need a side hustle in the first place? The following 4?reasons should be good motivation to start looking for a new income stream.

No Room for Growth

Are you at the top of the pay scale at your current job with no hope of getting a raise? If so, you may need to look to a side hustle as a way to increase your income in the months and years to come. Unless you want to set out and start looking for a new job, picking up a successful side hustle might be your best chance to grow your income at this point.

Saving for a Big Purchase

If you would like to buy a new car, for example, you might need to save up money for a down payment. Or, on a similar note, you may need to save up for a down payment on a new house. Whatever the case may be, a side hustle is a great way to save money for a big upcoming purchase that you need to make. Since there might not be room in your standard budget to save money based on your regular salary, using a side hustle is your best option for tracking down those additional dollars.

Break Away from the Nine to Five

One of the best things about a side hustle is the possibility that it will turn into something more. For instance, let?s imagine that you decide to use a blog as your side hustle, and you get started by making a few dollars each month.

That small extra income will be nice, but you will also have the potential to keep working on your blog in order to turn it into something more than just a minor income stream. You can work on building up the side hustle while still working your regular job, of course, but the potential will always be there for this side hustle to turn into a full-time thing.

Enhance Your Hobby

Some of the best side hustle opportunities are simply things that people enjoy doing as a hobby. If you have a hobby that you would like to spend more time on, one of the best things you can do is figure out a way for that hobby to make you some money. Once it is both a hobby and income stream, you will have all the motivation you need to spend more and more time on it each month.

Have you started a side hustle for any of these reasons? Can you think of other reasons you might need?a side hustle?

Photo courtesy of: Ken Teegardin

6 Things People Often Forget to Budget For

January 23, 2017 Wise Dollar Budgeting 4 comments

Setting up your first budget can seem daunting. You have to gather together all of your bills and paperwork from the past few months so you can see what you are really earning and spending each month.

But there are a few expenses that you don’t necessarily get an actual “bill” for every month. These are the things that are harder to predict and you might forget to budget for them all together.

Household Supplies

This is something I always forget about. When calculating what how much money to dedicate?to supplies for your home, don?t forget to add money in there for toilet paper and cleaning supplies. It?s amazing how quickly you can go over budget when you forget to add in things like that.

You may not spend money every month on these items but having it there keeps your budget on track and allows you to save that little bit extra that you don’t spend each month for larger household purchases when things run out or need replaced.

Eating Out

One way to budget for eating out is to group it in with groceries. But, it?s easier to track what you are spending when you go out to eat if it is separate versus together with food. You most likely spend more than you think eating out. By tracking this separately, you can adjust and plan for nights out or make sure to keep some quick meals in the pantry for those evenings you don?t want to cook an elaborate meal. This is the area of my budget where I’ve had to make the most adjustments over time.

Medicine and?Doctor’s Appointments

Many budget templates have a place for you to plan for medical costs, like doctor’s appointments. But even if you don’t visit the doctor often, you still need to fund this category. Even basics like [easyazon_link keywords=”ibuprofen” locale=”US” nw=”y” tag=”wisedollar-20″]ibuprofen[/easyazon_link] costs money, as well as first aide equipment, and [easyazon_link keywords=”personal hygiene products” locale=”US” nw=”y” tag=”wisedollar-20″]personal hygiene products[/easyazon_link] that you might decide to include in this category. Once again, these aren?t things you have to buy?all the time, but accounting for them in your budget helps you stay on task and change purchase habits as necessary.

Auto Accessories

If you have a car payment, you definitely budget for that. You probably also remember to plan for gas and insurance too. ?But one thing a lot of people forget to budget for is other expenses related to their car. Don?t forget about the potential for tires, trips to the car wash, windshield wipers, etc. Eventually you’ll have to use this money for other repairs and maintenance costs as well, so it’s a good idea to carry that money forward as a “buffer”.

Gifts

When you think gifts the first thing you think of is Christmas. One way to budget and save for Christmas gifts is to join a savings program at your bank or put money aside throughout the year so you?don?t spend as much come December. But, what about birthdays? Or a?baby shower for a close friend? By setting a little more aside than just your Christmas money, you’ll be able to buy gifts for these occasions when they arise without feeling stressed.

Memberships

Do you like going to the gym? Do you have a professional or hobby group you like being a part of? Does your alma mater mean a lot? If you have memberships, be sure to account for those in your budget as well.

One way to avoid missing anything in your budget is to track your spending for a few months before making a budget. This way you’ll be able to see what you are spending on and how much these things really cost. There may be a category you didn?t realize you buy a lot of but need to account for it in your budget. The good thing about a budget is that it is not set in stone. Adjust as you need but don?t forget the little things as they are what can add up the most.

Have you had to make adjustments to your budget? Have you ever forgot to budget for something?

Photo courtesy of: Daw8ID

How to Plan for Irregular Expenses

January 18, 2017 Wise Dollar Budgeting 2 comments

Budgeting would be pretty easy if you could always plan on exactly how much money you were going to have to spend each month. You could figure out how much you make at your current job, compare that to your fixed expenses, and put together a plan for making the numbers add up correctly.

Of course, that isn?t the way the world works.

While many of your expenses will be planned and expected, some of them will come out of nowhere. You may know others are looming, but you forgot to plan for them anyway.

These irregular expenses can put a major dent in your budget if you aren?t careful, so the smart thing to do is plan for the unexpected with these tips.

Cash Reserves

The first thing you should do when thinking about how to be prepared for irregular expenses is to keep a set amount of cash in your savings account for surprise expenses.?The amount that you keep on hand is up to you, but it should be enough to handle reasonable expenses that pop up out of nowhere.

If necessary, you may want to pick up some kind of side hustle job to earn a bit of extra money that you can put into your savings. This money should not be included in your monthly budget, and it should simply be left alone as time goes by. Hopefully, you will not have to tap into it, and it can continue to sit there as a safety net.

Credit Card Availability

You probably aren?t going to be able to keep enough cash on hand to cover all potential expenses that could pop up, which is why you should have a credit card account open with a limit that you can use to handle a surprise cost.

Obviously, you don?t have to be using this card on a regular basis, other than using it enough to keep the account open and active. Again with this idea, you will be hoping to not have to use your credit line to handle an expense ? but you will be ready to do so if required.

Keep Your Budget Short of the Limit

One of the common budgeting mistakes that people make it pushing their budget right up to the edge of what they can afford each month. Living on the edge in this manner is not a great idea, as it doesn?t leave you any ?wiggle room? in terms of dealing with irregular expenses. Work on paring down your budget slightly so you can give yourself some space in case things do come up that you are planning on.

No one wants to have to deal with unexpected or irregular expenses, but being ready for such an event is part of good financial planning. Do your best to set aside a specific amount of money to deal with surprise costs, and also work on establishing a credit account that you could use in an emergency as well.

Good planning in your financial life means expecting things to fall outside of your budget from time to time. As long as you are ready for surprise events, you can keep yourself on track for the long run.

How do you deal with irregular expenses? Have you even been caught unprepared for irregular expenses?

Photo courtesy of: Pictures of Money

Save Money By Working on Your Car Yourself

January 18, 2017 Wise Dollar Saving No comments

We live in a world where owning a functional vehicle is more of a necessity than a luxury, but for some, owning a luxury vehicle is a necessity. A Porsche is one of those majestic automobiles. For some, it is the epitome of class, style and sport.

There are a lot of costs associated with buying and driving a vehicle that make car ownership come with a pretty hefty price tag. Once you buy the vehicle, pay for the insurance, and get registration taken care of ?? you still have to deal with the costs of keeping your ride reliable. These costs include parts, repairs and maintenance.

While it’s important to have a local mechanic that you trust to work on your beloved automobile when something goes wrong, relying on them to do routine?maintenance can get expensive. Mechanics that specialize in high-end European sports cars such as a Porsche are highly trained, and that expertise doesn’t come cheap.

However, if you learn how to handle?some basic maintenance on Porsche parts yourself,?you can save a lot of money and still drive the luxury car of your dreams.

Buy Your Porsche Replacement Parts Online

Going to a local auto parts store to purchase the genuine Porsche parts you need is convenient, but that convenience comes with a much heftier price tag. Buying OEM and performance Porsche parts online will usually be significantly cheaper, so depending on what parts you are fixing it may be worthwhile to wait for the parts to arrive in the mail. Stores such as eEuroparts can hook you up with either OEM or aftermarket parts specifically designed for your exact Porsche vehicle. In addition to better pricing, shopping for parts online also gives you a wider variety to choose from than your local retailer or dealership.

Change Your Own Oil Filter and Fluid

According to Cost Helper, having your oil changed by a standard auto shop can cost anywhere from $20 to $55 and even more at a?specialty shop. And for your Porsche automobile, you’re looking at over $100-price tag. If a synthetic oil is used, the costs rise even more. Changing the oil fluid and filter on your own, only costs a fraction of the price. Again, the price may be a little higher depending on what type of oil and filter you plan on using.

Fortunately, changing your vehicle?s oil is not a difficult task. How often you change the oil will depend on how you drive your vehicle. The standard recommendation for conventional motor oil is every 3 months or 3,000 miles, changing it at whichever milestone you meet first; for synthetic oil, that goes up to 1 year or 10,000 miles. You should read the owner?s manual on your car to see what the manufacturer recommends when it comes to oil changes.

Change Your Own Brake Pads

The thought of doing work on the brakes of your vehicle might be intimidating, but you can do it. Did you know the average cost to have a professional change your brake pads is $150 per axle? The price can even be as much as $300 per axle, especially for higher end automobiles like Porsche. Brake pads themselves may cost between $50 and $100 depending on where you get them and what brand you go with. You can save anywhere from $50 to $200, on average, just by changing those brake pad parts on your own.

If you follow a step-by-step guide, changing your brake pads is also a part repair you can do without the assistance of a professional. The lifespan of brake pads can range from 25,000 to 75,000 miles depending on what brand of brake pads you purchase, the condition of the rest of your vehicle?s brake parts, and, of course, your driving habits. If your brakes start making high pitch noises, start squealing or start leaking a dark fluid, if the brake pedal becomes hard to push or if the ABS caution light comes on, it’s probably time to change your brake pads.

Get Adventurous

Now that you have mastered some basic maintenance tasks, it’s time to make your Porsche into the ride of your dreams. Start with upgrading your suspension system. It’s easier than you think. With the right tools, you can also change things like spark plugs, belts and more. As your confidence grows, try to tackle more complex repairs and save yourself even more money, all while having the satisfaction that you did the job right, and all by yourself to boot.

Yes, owning a vehicle is expensive…. Owning a Porsche is simply extravagant. Owning any kind of vehicle, however, does not mean you have to shell out hundreds of dollars every time your vehicle needs parts repaired or replaced. If you follow step-by-step guides, watch DIY videos, and buy your own car parts, you’ll save tons of money on auto repairs and maintenance.

Do you DIY your car repairs? What have you hired done?

Photo courtesy of: Pexels

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