#increased mortgage payments

[mfi-miami]

Mortgage Payments Increased 17% Annually In July

The Mortgage Bankers Association Says Mortgage Payments Increased 17% Annually As Homebuyer Affordability Becomes More Challenging The Mortgage Bankers Association says homebuyer affordability remained unchanged in July from June. However, mortgage payments increased 17% from last year. The MBA’s Purchase Applications Payment Index (PAPI) measures how new monthly mortgage payments vary across…

[gommyworm]

:^}

[theinfamousdoctorf]

Guys... I don’t think it’s hyperbole to say I’m panicking. I just don’t have the money. I work 40 hours a week and my partner is only getting a paltry 24. Our boss put her at a different site and we basically have to struggle until he can find something else for her to do. We share a vehicle and I have a very long commute to my work so that also limits our options. We’re no contact with her abusive mother and mine just won’t help. I currently have a little more then $1200 and the mortgage has to take priority. My car payment I don’t get a paper bill but it’s $334. Right now I’ve got no other choice then begging. My partner just used her last few dollars on half a tank of gas for me to get to work tonight.

Please help if you can. Reblog if nothing else. Remember; likes don’t increase visibility.

[simply-ivanka]

How the Biden-Harris Economy Left Most Americans Behind

A government spending boom fueled inflation that has crushed real average incomes.

By The Editorial Board -- Wall Street Journal

Kamala Harris plans to roll out her economic priorities in a speech on Friday, though leaks to the press say not to expect much different than the last four years. That’s bad news because the Biden-Harris economic record has left most Americans worse off than they were four years ago. The evidence is indisputable.

President Biden claims that he inherited the worst economy since the Great Depression, but this isn’t close to true. The economy in January 2021 was fast recovering from the pandemic as vaccines rolled out and state lockdowns eased. GDP grew 34.8% in the third quarter of 2020, 4.2% in the fourth, and 5.2% in the first quarter of 2021. By the end of that first quarter, real GDP had returned to its pre-pandemic high. All Mr. Biden had to do was let the recovery unfold.

Instead, Democrats in March 2021 used Covid relief as a pretext to pass $1.9 trillion in new spending. This was more than double Barack Obama’s 2009 spending bonanza. State and local governments were the biggest beneficiaries, receiving $350 billion in direct aid, $122 billion for K-12 schools and $30 billion for mass transit. Insolvent union pension funds received a $86 billion rescue.

The rest was mostly transfer payments to individuals, including a five-month extension of enhanced unemployment benefits, a $3,600 fully refundable child tax credit, $1,400 stimulus payments per person, sweetened Affordable Care Act subsidies, an increased earned income tax credit including for folks who didn’t work, housing subsidies and so much more.

The handouts discouraged the unemployed from returning to work and fueled consumer spending, which was already primed to surge owing to pent-up savings from the Covid lockdowns and spending under Donald Trump. By mid-2021, Americans had $2.3 trillion in “excess savings” relative to pre-pandemic levels—equivalent to roughly 12.5% of disposable income.

So much money chasing too few goods fueled inflation, which was supercharged by the Federal Reserve’s accommodative policy. Historically low mortgage rates drove up housing prices. The White House blamed “corporate greed” for inflation that peaked at 9.1% in June 2022, even as the spending party in Washington continued.

In November 2021, Congress passed a $1 trillion bill full of green pork and more money for states. Then came the $280 billion Chips Act and Mr. Biden’s Green New Deal—aka the Inflation Reduction Act—which Goldman Sachs estimates will cost $1.2 trillion over a decade. Such heaps of government spending have distorted private investment.

While investment in new factories has grown, spending on research and development and new equipment has slowed. Overall private fixed investment has grown at roughly half the rate under Mr. Biden as it did under Mr. Trump. Manufacturing output remains lower than before the pandemic.

Magnifying market misallocations, the Administration conditioned subsidies on businesses advancing its priorities such as paying union-level wages and providing child care to workers. It also boosted food stamps, expanded eligibility for ObamaCare subsidies and waved away hundreds of billions of dollars in student debt. The result: $5.8 trillion in deficits during Mr. Biden’s first three years—about twice as much as during Donald Trump’s—and the highest inflation in four decades.

Prices have increased by nearly 20% since January 2021, compared to 7.8% during the Trump Presidency. Inflation-adjusted average weekly earnings are down 3.9% since Mr. Biden entered office, compared to an increase of 2.6% during Mr. Trump’s first three years. (Real wages increased much more in 2020, but partly owing to statistical artifacts.)

Higher interest rates are finally bringing inflation under control, which is allowing real wages to rise again. But the Federal Reserve had to raise rates higher than it otherwise would have to offset the monetary and fiscal gusher. The higher rates have pushed up mortgage costs for new home buyers.

Three years of inflation and higher interest rates are stretching American pocketbooks, especially for lower income workers. Seriously delinquent auto loans and credit cards are higher than any time since the immediate aftermath of the 2008-09 recession.

Ms. Harris boasts that the economy has added nearly 16 million jobs during the Biden Presidency—compared to about 6.4 million during Mr. Trump’s first three years. But most of these “new” jobs are backfilling losses from the pandemic lockdowns. The U.S. has fewer jobs than it was on track to add before the pandemic.

What’s more, all the Biden-Harris spending has yielded little economic bang for the taxpayer buck. Washington has borrowed more than $400,000 for every additional job added under Mr. Biden compared to Mr. Trump’s first three years. Most new jobs are concentrated in government, healthcare and social assistance—60% of new jobs in the last year.

Administrative agencies are also creating uncertainty by blitzing businesses with costly regulations—for instance, expanding overtime pay, restricting independent contractors, setting stricter emissions limits on power plants and factories, micro-managing broadband buildout and requiring CO2 emissions calculations in environmental reviews.

The economy is still expanding, but business investment has slowed. And although the affluent are doing relatively well because of buoyant asset prices, surveys show that most Americans feel financially insecure. Thus another political paradox of the Biden-Harris years: Socioeconomic disparities have increased.

Ms. Harris is promising the same economic policies with a shinier countenance. Don’t expect better results.

[bitchesgetriches]

{ MASTERPOST } Everything You Need to Know about Credit and Credit Cards

Understanding credit

Dafuq Is Credit and How Do You Bend It to Your Will? 

Dafuq Is a Down Payment? And Why Do You Need One to Buy Stuff?

Ask the Bitches: Should I Get a Loan Even Though I Can Afford To Pay Cash?

Season 2, Episode 10: “Which Is Smarter: Getting a Loan? or Saving up to Pay Cash?”

Ask the Bitches: What’s the Difference Between Credit Checks and Credit Monitoring? 

When (And How) To Try Refinancing or Consolidating Student Loans

Season 3, Episode 7: “I’m Finished With the Basic Shit. What Are the Advanced Financial Steps That Only Rich People Know?”

Buy Now Pay Later Apps: That Old Predatory Lending by a Crappy New Name 

Using credit

How to Instantly Increase Your Credit Score…For Free 

How to Build Good Credit Without Going Into Debt 

Case Study: Held Back by Past Financial Mistakes, Fighting Bad Credit and $90K in Debt 

Season 1, Episode 3: “My Parents Have Bad Credit. Should I Help by Co-signing Their Mortgage?” 

Season 3, Episode 2: “I Inherited Money. Should I Pay Off Debt, Invest It, or Blow It All on a Car?”

Season 2, Episode 2: “I’m Not Ready to Buy a House—But How Do I *Get Ready* to Get Ready?”

Credit cards

A Hand-holding Guide To Getting Your First Credit Card 

63% of Millennials Are Making a Big Mistake With Credit Cards

Let’s End This Damaging Misconception About Credit Cards

The Best Way To Pay off Credit Card Debt: From the Snowball To the Avalanche

Credit Card Companies HATE Her! Stay Out of Credit Card Debt With This One Weird Trick 

Season 4, Episode 3: “My credit card debt is slowly crushing me. Is there any escape from this horrible cycle?” 

Here’s What to Do With Those Credit Card Pre-approval Offers You Get in the Mail

We’ll periodically update this masterpost as we continue to write tutorials and answer questions on credit. So if there’s anything you’re confused about, keep the questions coming!

And if we’ve helped you increase your credit score or pay off your credit card debt, consider tossing a coin to your Bitches through our PayPal. It ensures we can pay our lovely assistant and keep bringing you free articles and episodes like those above.

Toss a coin to your Bitches on PayPal

[so-i-did-this-thing]

Hello! I hope you're doing well and I'd like to thank you for being the rad trans uncle of Tumblr. I'm in a fuckin' crimson state that's quite unfriendly to trans people and I'm afraid I won't be able to leave until 2028 at the earliest. Might I ask if there's anything you'd recommend doing? Anywho, I hope the leaves were great where you are! Peace!

It's been weird, but I'm glad to be here. :) As for recommendations, well, while you are not in a great place for trans rights, thinking ahead towards a move a few years down the road *is* good. Stuff you should be considering:

Get your finances in order.

Start with making a budget (I like the tool YNAB), tracking your habits, and looking for places to reduce spending. I know that can mean squeezing blood from a stone, but even saving up gas money for a cross-country trip can move up your moving timeline.

You also want to start planning your moving expenses. For example, buying boxes, using a moving service, cost to service your car, calming meds for your pets, etc. Just make a spreadsheet and keep adding as you think of things. Have a rolling total and track against your savings.

Lastly, get your credit score in order. A free service like Credit Karma is fine, but as you get closer to having to apply for rent or a mortgage, sign up with each credit agency and pull your report. Get caught up on any delinquencies asap and do not miss any payments from now until you are moved - missed payments take the longest of ANYTHING to fall off your score.

If you've changed your legal name, make sure it matches with all the credit bureaus. If you feel responsible with credit, ask for a credit line increase every 6 months - that will help with your debt ratio if you are currently trying to pay down a balance. Plan a credit score timeline with a hard stop at least 2 months before you apply for a loan/rent -- after that, no more making any big purchases or applying for new cards. Try to have no more of 10% of your total credit line actually on your cards by the end of your timeline. Aka, if your line of credit is $1,000, you only want $100 on the cards.

2. Start paring down your stuff

Gt crafty hobbies? Stop adding to your stash. Stop it. Start getting rid of broken things, clothes that don't fit, stuff you don't see yourself using, or stuff that is cheaper to sell & buy at your new place, rather than pay to move. If this all feels hard, put the items you're questioning in a box now, and then open it next year and see how you feel. Don't buy anything you wouldn't want to move.

3. Start your research

Make lists of towns that look promising. See how their local government works. Check the local reddits and facebook groups to get the vibes. Make lists of "must haves" and "nice to haves" at the state, city, neighborhood, and even house level. Get an idea for what the cost of living will be in your new place. Decide what your deal-breakers will be.

4. Work on your job skills

Four years is a lot of time to improve yourself for a good salary hike. It's a lot of time to get marketable for remote jobs, which will broaden your opportunities to live where you want. If remote work interests you, start looking at job listings and note the requirements. Make a plan to be qualified within 3 years.

5. Make a bucket list of things to do in your current state

There must be some good things about your state. There were in mine. Afford yourself grace and do some fun things that you might not have the chance to do again when you move. Hang out especially with local friends and family you care about.

6. Keep an eye on what's happening wrt trans rights.

Follow trans pundits and your local trans rights orgs. Get in the habit of learning what's going down in your municipality, down to the school board level. Be prepared to have to adjust your moving timeline if shit hits the fan.

7. Stay on top of your healthcare and legal stuff

No passport yet? Apply now. Forgetful about getting your HRT renewed? Set reminders and work hard to stay on top of everything. As you get closer to moving, research healthcare options in your new home and get appointments lined up asap.

8. If you're selling & buying a house, be prepared for it to take nearly a year

Seriously, it can take forever for everything to work out. Work with realtors in your new state who specialize in remote sales & relocations. Start repairing your current place by year 3 and start packing months in advance of the final move.

tldr; Treat the next 4 years like you're at college and your degree is Getting the Hell Outta Dodge. Plan as much as you can with to-do lists and spreadsheets, with some kind of monthly goal at first, then weekly and daily goals as your move approaches. It can feel overwhelming, but knowing *now* that you are going to move means you can plan as much as possible and reduce the amount of panic-decisions.

Good luck!

[cathkaesque]

Former miner Dave Roper (aka Donkey Dave) recounted the heartbreaking experience of burying his child in a stranger's grave after being denied a funeral grant by the DHSS for being on strike. The article states that after growing pressure this policy was reversed in October 1984.

However, this is not the full story. The amendment which restored funeral support for strikers on one hand also tried to claw back mortgage relief with the other. 

David Willetts, a member of Thatcher's Policy Unit, wrote "The DHSS anyway have to amend the regulations to allow them to meet funeral expenses of relations of strikers following the hard cases publicised in the press. It would be politically neat to bring out one amendment which both gave concessions for funeral expenses and tightened up the regime for mortgage payments."

David Willetts would go on to be Universities Minister in David Cameron's cabinet, and oversee the increase of tuition fees to £9,000 per year. He currently sits in the House of Lords.

This is why the Miners' Strike matters - the same people who made decisions during the strike are still in positions of power today, and they still haven't even acknowledged the violence that was done against mining communities in 1984.

[meetbytheriver]

Bath school massacre - May 18th 1927

The attack itself began around 8:45am May 18th 1927 in which Andrew Kehoe firebombed his own farm and house using wired homemade pyrotol firebombs (right image) also murdering his wife Nellie Price Kehoe, placing her body in a wheelbarrow near their chicken coop. Kehoe then went on to detonate various explosives he had planted over the course of the previous summer within the north wing of Bath Consolidated school, with roughly an additional 230kg/500 lbs of explosives failing to set off in the southern wing (left image). Around 30mins after the first explosion, Kehoe drove up to the school and detonated explosives within his own truck, killing himself, Nelson McFarren (a retired farmer) and Cleo Clayton who was just 8 years old. The attacks killed 38 children, 6 adults and injured at least 58 other people.

Background:

After losisng the election for township clerk, April 5th 1926, Kehoe (according to his neighbor, Ellsworth) began his plot to blow up Bath Consolidated school. During this time, he bought: more than a ton of pyrotol (an explosive used by farmers); two boxes of dynamite; and a .30-caliber Winchester bolt-action rifle.

The school board member, M. W. Keyes stated:

"He was an experienced electrician and the board employed him in November to make some repairs on the school lighting system. He had ample opportunity then to plant the explosives and lay the wires for touching it off."

Having access to the school over the summer of 1926, Kehoe planted various explosvies underneath the school and, being a farmer, owning large ammounts of dynamite would not be viewed as suspiscious - with neighbors even reporting hearing explosions on the farm. After the attack, investigators recovered: a container of gasoline rigged with a tube in the school's basement; explosives in six lengths of eavestrough pipe; and three bamboo fishing rods concealed in the basement ceiling.

The day before the attack, Kehoe loaded the back seat of his truck with metal debris with the potential to produce shrapnel during an explosion, also buying new tires to transport explosives. Throughout the day, Kehoe made several trips to the school, the township, his house and also places he could buy additional explosives. At midnight, it was also reported a man (presumably Kehoe) could be seen walking into the school carrying objects inside.

Andrew Kehoe:

After graduating, Kehoe suffered a head injury in a fall and was semi-conscious or in a coma for a period of several weeks, returning to work on his fathers farm rather than continuing working as an electrician. Kehoe had a reputation for being tight with money, and was elected in 1924 as a trustee on the school board for three years and additionally treasurer for one year, arguing strongly for lower taxes. It is suspected the motives for the attack was an increase in his taxes, aswell as being defeated in the April 5, 1926, election for being town clerk. Kehoe's neighbor, A. McMullen, stated that Kehoe had seemingly stopped working on his farm altogether for most of the preceding year, and he had speculated that Kehoe was planning to commit suicide. Furthermore, his wife had become chronically ill with tuberculosis which, at the time, had no treatment - increasing Kehoes debt causing him to cease depositing into his mortgage and homeowner's insurance payments. Potentially sueding him further to commit the bombing.

[beardedmrbean]

Vermont independent Sen. Bernie Sanders announced Monday that he plans to write legislation to codify President-elect Donald Trump’s proposal to cap credit card rates.

The lawmaker called the proposal a “great idea” on social media.

“During the recent campaign Donald Trump proposed a 10% cap on credit card interest rates,” he wrote.

“Let’s see if he supports the legislation that I will introduce to do just that.”

Both Sanders and Trump have been critical of elevated interest rates on credit cards, a concern that comes as credit card debt has increased in recent years amid elevated inflation.

Trump said during one September campaign rally in New York that capping credit card rates would help households recover from the economic tumult that has characterized Joe Biden's presidency.

“While working Americans catch up, we’re going to put a temporary cap on credit card interest rates,” Trump told supporters, according to CNBC.

“We can’t let them make 25% and 30%,” he said of the credit card companies.

Karoline Leavitt, a Trump campaign spokeswoman who has since been tapped to serve as his White House press secretary, said at the time that the intent of the policy was indeed to “provide temporary and immediate relief for hardworking Americans.”

She specifically mentioned those “who are struggling to make ends meet and cannot afford hefty interest payments on top of the skyrocketing costs of mortgages, rent, groceries and gas.”

Sanders voiced his approval of the policy days after Trump defeated Vice President Kamala Harris in November.

“I look forward to working with the Trump Administration on fulfilling his promise to cap credit card interest rates at 10%,” Sanders said on social media platform X.

“We cannot continue to allow big banks to make record profits by ripping off Americans by charging them 25 to 30% interest rates,” he contended. “That is usury.”

Renewed discussion of the credit card rate cap occurs as the default rates for credit card debt have surged to their highest levels in nearly 15 years, as well as the highest levels since the 2008 financial crisis.

In the first nine months of 2024, credit card lenders wrote off some $46 billion in seriously delinquent balances, according to a Sunday report from the Financial Times based on insights from BankRegData.

That marks a 50 percent increase from the same period one year earlier and the most severe default level since 2010.

[subukunojess]

Help Me and My Family With Billing and Returning to School

Hello. My name is Jessica. I am a 30 autistic asexual Hispanic woman who is currently working on a Master's degree in Professional and Creative Writing. I usually do not do this, but I really need help.

A few months ago, my family and I moved upstate and bought our first home after living in apartments every since I was born. We lived in public housing for twenty years until a miracle happened and we were able to get a home which I am striving for it to be our forever home where we will be safe and happy.

A lot of things happened recently:

The new bills we have to pay plus paying for mortgage has taken a toll on us.

Due to mental and emotional health issues, I messed up my last semester and I have a debt of $6,300.00 US dollars as of this day (4/12) will go to collections since I didn't have the $523 to do a payment plan.

My grandmother passed away weeks ago and with sudden financial decisions, we had to cut down on a lot of expenses.

Currently, I am working in a part-time job that I use my checks to pay for my bills and to help pay my family's bills. With my deteriorating self-esteem and increased stress, it is difficult for me to support my family.

Please help me so that my family and I won't be homeless. I need money to pay off my debt so I can continue my education, finish my degree, and maintain a more stable life.

My goal is $10,000. $6,300 will pay off my college debt while the rest will be used to pay our bills and mortgage. Please share and support however you can. I am also going to look into doing commissions.

p4yp4l

g34unDm3

GOAL: 20/10,000

[truth-has-a-liberal-bias]

...

Two things are driving the divide between how homeowners and renters experience inflation.

First, while most homeowners’ monthly payments have not risen, the cost of renting has surged. Rent jumped 11% in 2022 from the year before. It also climbed higher in 2023, although at a significantly slower pace. Rent prices increased just 0.2% last year, according to Realtor.com.

As of November, the price of rent nationally was up 22% compared to pre-pandemic levels, according to Realtor.com.

Meanwhile, because most homeowners have a fixed-rate loan, their costs have not changed even as mortgage rates have soared during the Fed’s historic effort to rein in inflation. [...]

[am-i-the-asshole-official]

WIBTA if I raised my brother's "rent"?

Longer version: I (30ish) might be losing my current paycheck in the next couple months with no idea when I'd be able to get another job, and am contemplating asking my brother (30ish) for a bit more than he currently pays me so I can manage to pay the mortgage with less worries.

6 years ago I managed to scrape together enough to buy the apartment we were renting at the time- my brother had no job, credit, or savings really at the time so everything is fully in my name and he just pays me what his half of the rent was when we were renting. Since the monthly mortgage + HOA dues is less than what we were paying for rent, with both of us contributing the same amount as we did then it covers the payments great and I am able to put a bit extra towards it each month.

But now 6 years later- due to health problems I took 3 months off end of last year (unpaid- which cut into my savings) and even though I am back at work now, I'm guessing due to continuing health issues I will have to fully quit in the next few months. Plus, I have several thousand in medical bills (after the hospital finishes fighting with insurance) coming my way soon. On the other side, my brother now has a full time job which while the pay isn't anything fantastic is enough for him to live comfortably on. While I have enough savings to live on for a bit and keep paying what I was towards the mortgage, just in case things go on longer I'm planning on dropping down to the minimum mortgage payment to try and stretch my money as much as possible. This leads to my dilemma- minimum payment wouldn't fully be covered by my brother's informal "rent", and I would still be paying towards it either way, but an extra $50 a month from him would make a significant impact.

Why I might be the asshole- raising my brother's expenses (when I leave my job) for basically personal reasons, when technically I could still get by on savings for several months.

Why I might not be the asshole- in 6 years his payment (and mine) has gone up once a very small amount due to increased HOA dues, other than that this would be the first time it goes up which is unusual for the area. Plus, even with the increase it is still roughly $250 cheaper than he would be able to find housing anywhere else in town right now.

What are these acronyms?

[creations-by-chaosfay]

To anyone who makes a fuss about the prices artists and crafters set for their work:

When I was still making and selling jewelry, I attended and sold my work at conventions. There was a sign on my table that stated "anyone who tells me to lower my prices will pay an extra 10% with each complaint."

You complain about not being paid enough by your employer. Rather than demanding a wage increase from your employer, you tell artists and crafters to lower their prices instead. You're siding with your employer's business model in all but name.

If a business cannot afford to pay it's staff/employees a liveable wage, they are a failed business.

Artists and crafters are independent business owners. Charging the federal minimum wage helps no one. In fact, it increases the chances of burning out. It also increases the risk of injury because now we must make more things, accept more commissions, and finish them quickly in order to make enough money to pay rent/mortgage, utilities, food, transportation/fuel, medical care, etc.

Because we're not making enough money, we need a job other than our own work. This limits our time and energy. Again, it leads to injury and burnout.

How does this help you? How does this help us?

It doesn't.

If you believe you could do the things we do, then learn how and make the things you want. It also means you will need to do a considerable amount of shopping to acquire the things you need. Then you need time to learn. Plan on spending years learning how to make quilts that meet the standards you demand? How about years spent learning how to make realistic portraits or cityscapes?

Save your money for the thing you want to commission. Talk to the crafters about thing you want from their shop. Many artists and crafters share a policy of accepting 50% upfront and the other 50% when the thing is finished. For shop listings, 50% upfront and weekly or monthly payments afterward. You will likely be required to sign a contract regarding this as well, especially from those of us who have a strict "no refund" policy.

Stop telling us to lower our prices. Unionize and demand your employer raise their wages.

[phoenixyfriend]

Ko-Fi prompt from Isabelo:

Hi! I'm new to the workforce and now that I have some money I'm worried it's losing its value to inflation just sitting in my bank. I wanted to ask if you have ideas on how to counteract inflation, maybe through investing?

I've been putting this off for a long time because...

I am not a finance person. I am not an investments person. I actually kinda turned and ran from that whole sector of the business world, at first because I didn't understand it, and then once I did understand it, because I disagreed with much of it on a fundamental level.

But... I can describe some factors and options, and hope to get you started.

I AM NOT LEGALLY QUALIFIED TO GIVE FINANCIAL ADVICE. THIS IS NOT FINANCIAL ADVICE.

What is inflation, and what impacts it?

Inflation is the rate at which money loses value over time. It's the reason something that cost 50 cents in the 1840s costs $50 now.

A lot of things do impact inflation, like housing costs and wage increases and supply chains, but the big one that is relevant here is federal interest rates. The short version: if you borrow money from the government, you have to pay it back. The higher the interest rates on those loans, the lower inflation is. This is for... a lot of reasons that are complicated. The reason I bring it up is less so:

The government offers investments:

So yeah, the feds can impact inflation, but they also offer investment opportunities. There are three common types available to the average person: Bonds, Bills, and Notes. I'll link to an article on Investopedia again, but the summary is as follows: You buy a bill, bond, or note from the government. You have loaned them money, as if you are the bank. Then, they give it back, with interest.

Treasury Bills: shortest timeframe (four weeks to a year), and lowest return on investment. You buy it at a discount (let's say $475), and then the government returns the "full value" that the bond is, nominally (let's say $500). You don't earn twice-yearly interest, but you did earn $25 on the basis of Loaning The Government Some Cash.

Treasury Notes: 2-10 year timeframe. Very popular, very stable. Banks watch it to see how they should plan the interest rates for mortgages and other large loans. Also pretty high liquidity, which means you can sell it to someone else if you suddenly need the cash before your ten-year waiting period is up. You get interest payments twice a year.

Treasury Bonds: 20-30 years. This is like... the inverse of a house mortgage. It takes forever, but it does have the highest yield. You get interest payments twice a year.

Why invest money into the US Treasury department, whether through the above or a different government paper? (Savings bonds aren't on sold the set schedule that treasury bonds are, but they only come in 30-year terms.)

It is very, very low risk. It is pretty much the lowest risk investment a person can make, at least in the US. (I'm afraid I don't know if you're American, but if you're not, your country probably has something similar.)

Interest rates do change, often in reaction or in relation to inflation. If your primary concern is inflation, not getting a high return on investment, I would look into government papers as a way to ensure your money is not losing value on you.

This is the website that tells you the government's own data for current yield and sales, etc. You can find a schedule for upcoming auctions, as well.

High-yield bank accounts:

Savings accounts can come with a pretty unremarkable but steady return on investment; you just need to make sure you find one that suits you. Some of the higher-yield accounts require a minimum balance or a yearly fee... but if you've got a good enough chunk of cash to start with, that might be worth it for you.

They are almost as reliable as government bonds, and are insured by the government up to $250,000. Right now, they come with a lower ROI than most bonds/bills/notes (federal interest rates are pretty high at the moment, to combat inflation). Unlike government papers, though, you can deposit and withdraw money from a savings account pretty much any time.

Certificates of Deposit:

Okay, imagine you are loaning money to your bank, with the fixed term of "I will get this money back with interest, but only in ten years when the contract is up" like the Treasury Notes.

That's what this is.

Also, Investopedia updates near-daily with the highest rates of the moment, which is pretty cool.

Property:

Honestly, if you're coming to me for advice, you almost definitely cannot afford to treat real estate as an investment thing. You would be going to an actual financial professional. As such... IDK, people definitely do it, and it's a standby for a reason, but it's not... you don't want to be a victim of the housing bubble, you know? And me giving advice would probably make you one. So. Talk to a professional if this is the route you want to take.

Retirement accounts:

Pension accounts are a kind of savings account. You've heard of a 401(k)? It's that. Basically, you put your money in a savings account with a company that specializes in pensions, and they invest it in a variety of different fields and markets (you can generally choose some of this) in order to ensure that the money grows enough that you can hopefully retire on it in fifty years. The ROI is usually higher than inflation.

These kinds of accounts have a higher potential for returns than bonds or treasury notes, buuuuut they're less reliable and more sensitive to market fluctuations.

However, your employer may pay into it, matching your contribution. If they agree to match up to 4%, and you pay 4% of your paycheck into an pension fund, then they will pay that same amount and you are functionally getting 8% of your paycheck put into retirement while only paying for half of it yourself.

Mutual Funds:

I've definitely linked this article before, but the short version is:

An investment company buys 100 shares of stock: 10 shares each in 10 different "general" companies. You, who cannot afford a share of each of these companies, buy 1 singular share of that investment company. That share is then treated as one-tenth of a share of each of those 10 "general" companies. You are one of 100 people who has each bought "one stock" that is actually one tenth of ten different stocks.

Most retirement funds are actually a form of mutual fund that includes employer contributions.

Pros: It's more stable than investing directly in the stock market, because you can diversify without having to pay the full price of a share in each company you invest in.

Cons: The investment company does get a cut, and they are... often not great influences on the economy at large. Mutual funds are technically supposed to be more regulated than hedge funds (which are, you know, often venture capital/private equity), but a lot of mutual funds like insurance companies and pension funds will invest a portion of their own money into hedge funds, which is... technically their job. But, you know, capitalism.

Directly investing in the stock market:

Follow people who actually know what they're doing and are not Evil Finance Bros who only care about the bottom line. I haven't watched more than a few videos yet, but The Financial Diet has had good energy on this topic from what I've seen so far, and I enjoy the very general trends I hear about on Morning Brew.

That said, we are not talking about speculative capital gains. We are talking about making sure inflation doesn't screw with you.

DIVIDENDS are profit that the company shares to investors every quarter. Did the company make $2 billion after paying its mortgages, employees, energy bill, etc? Great, that $2 billion will be shared out among the hundreds of thousands of stocks. You'll probably only get a few cents back per stock (e.g. Walmart has been trading at $50-$60 for the past six months, and their dividends have been 57 cents and then 20.75 cents), but it adds up... sort of. The Walmart example is listed as having dividends that are lower than inflation, so you're actually losing money. It's part of why people rely on capital gains so much, rather than dividends, when it comes to building wealth.

Blue Chip Stocks: These are old, stable companies that you can expect to return on your investment at a steady rate. You probably aren't going to see your share jump from $5 to $50 in a year, but you also probably won't see it do the reverse. You will most likely get reliable, if not amazing, dividends.

Preferred Stocks: These are stock shares that have more reliable dividends, but no voting rights. Since you are, presumably, not a billionaire that can theoretically gain a controlling share, I can't imagine the voting rights in a given company are all that important anyway.

Anyway, hope this much-delayed Intro To Investing was, if not worth the wait, at least, a bit longer than you expected.

Hey! You got interest on the word count! It's topical! Ish.

[bitchesgetriches]

{ MASTERPOST } Everything You Need to Know about How to Pay off Debt

Understanding debt:

Let’s End This Damaging Misconception About Credit Cards

Season 2, Episode 10: “Which Is Smarter: Getting a Loan? or Saving up to Pay Cash?”

Dafuq Is Interest? And How Does It Work for the Forces of Darkness?

Investing Deathmatch: Paying off Debt vs. Investing in the Stock Market

How to Build Good Credit Without Going Into Debt

Dafuq Is a Down Payment? And Why Do You Need One to Buy Stuff?

It’s More Expensive to Be Poor Than to Be Rich

Making Decisions Under Stress: The Siren Song of Chocolate Cake

How Mental Health Affects Your Finances

Paying off debt:

Kill Your Debt Faster with the Death by a Thousand Cuts Technique

Share My Horror: The World’s Worst Debt Visualization

The Best Way To Pay off Credit Card Debt: From the Snowball To the Avalanche

The Debt-Killing Power of Rounding up Bills

A Dungeonmaster’s Guide to Defeating Debt

How to Pay Hospital Bills When You’re Flat Broke 

Ask the Bitches Pandemic Lightning Round: “What Do I Do If I Can’t Pay My Bills?” 

Slay Your Financial Vampires

Season 4, Episode 3: “My credit card debt is slowly crushing me. Is there any escape from this horrible cycle?” 

Case Study: Held Back by Past Financial Mistakes, Fighting Bad Credit and $90K in Debt 

Student loan debt:

What We Talk About When We Talk About Student Loans

Ask the Bitches: “The Government Put Student Loans in Forbearance. Can I Stop Paying—or Is It a Trap?”

How to Pay for College without Selling Your Soul to the Devil

When (and How) to Try Refinancing or Consolidating Student Loans

Ask the Bitches: I Want to Move Out, but I Can’t Afford It. How Bad Would It Be to Take out Student Loans to Cover It?

Season 4, Episode 4: “I’m $100K in Student Loan Debt and I Think It Should Be Forgiven. Does This Make Me an Entitled Asshole?” 

The 2022 Student Loan Forgiveness FAQ You’ve Been Waiting For

2023 Student Loan Forgiveness Update: The Good, the Bad, and the Ugly 

Our Final Word on Student Loan Forgiveness 

Avoiding debt:

Ask Not How Much You Should Save, Ask How Much You Should Spend 

How to Make Any Financial Decision, No Matter How Tough, with Maximum Swag

Your Yearly Free Medical Care Checklist

Two-Ring Circus 

Status Symbols Are Pointless and Dumb 

Advice I Wish My Parents Gave Me When I Was 16 

On Emergency Fund Remorse… and Bacon Emergencies

Should You Increase Your Salary or Decrease Your Spending? 

Don’t Spend Money on Shit You Don’t Like, Fool

The Magically Frugal Power of Patience

The Only Advice You’ll Ever Need for a Cheap-Ass Wedding 

The Most Impactful Financial Decision I’ve Ever Made… and Why I Don’t Recommend It 

3 Times I Was Damn Grateful for My Emergency Fund (and Side Income) 

Buy Now Pay Later Apps: That Old Predatory Lending by a Crappy New Name 

Credit Card Companies HATE Her! Stay Out of Credit Card Debt With This One Weird Trick 

Ask the Bitches: Should I Get a Loan Even Though I Can Afford To Pay Cash? 

The Bitches vs. debt:

I Paid off My Student Loans Ahead of Schedule. Here’s How.

I Paid off My Student Loans. Now What?

Hurricane Debt Weakens to Tropical Storm Debt, but Experts Warn It’s Still Debt

The Real Story of How I Paid Off My Mortgage Early in 4 Years

Case Study: Swimming Upstream against Unemployment, Exhaustion, and $2,750 a Month in Unproductive Spending 

That’s all for now! We try to update these masterposts periodically, so check back for more in… a couple… months??? Maybe????

[cultivating-wildflowers]

it is stupid that my mortgage payment increases significantly every year because of property taxes