6 Residential Lease Terms That Merit Consideration When College Grads Move Back Home

Recently, a client came to my office regarding their college student moving home after 5 years of schooling. Her student will graduate this May and has not yet found a job. The client, while excited for her daughter, wanted a written agreement between themselves, setting out the “ground rules” for their “new” living arrangements, as well as a written understanding of financial obligations henceforth.

At first, I thought it a bit strange that a parent would want to have a formal “housing” contract between themselves and their adult child moving back home, but after some research, one wonders why more parents don’t pursue one.

According to a Pew Research Center analysis, its estimated that since 2012, more “Millennials” (ages 18-31) are living at home with their parents. Over 21 million adult children, a third with college degrees, live or have moved back home with Mom and Dad.

So when drafting this agreement, (and in light of my own experience of being a parent of two college students) I became even more vested in the client’s task. What should this agreement look like? When record numbers of college graduates cannot fully support themselves in their chosen careers, parents should be legitimately concerned for their own extended financial well -being. It’s estimated that having an adult child back home can cost between $7,000 to $19,000 a year. How should an adult son or daughter contribute to daily living expenses? Then consider the normal expectations of chores and responsibilities needed around the house.

Not surprisingly, I found that the best agreement for families to set limits and boundaries is found in the framework of a simple real estate rental lease. The most material lease terms and clauses should be sufficient to maintain a civil understanding between adults. They are:

1. Length of the agreement. Specify how long the living arrangement will last and when you expect your “grad” to move out. The longer they stay the harder it is for them to leave, so set limits, such as, “when you get this job… ”

2. Rent Payment. How much will the monthly rent be and when is it due? Consider your child’s percentage of expenses related to transportation, insurance, and food.

3. Utilities. How much will your son or daughter contribute to the total household utility bills? Consider water, gas electric, and cable.

4. Responsibilities. Not unlike with “real” tenants, what things should be done daily or weekly. Grocery shopping, cooking, laundry, yard work are to name but a few chores.

5. Hours of operation. When should guests and friends leave so as to preserve the “quiet enjoyment” of your home. Is there a “sleep over” policy?

6. Repairs. Just as in a “real lease,” what are the additional expenses that can be anticipated, and what will the contribution be in such an event.

Not all families may need a formalized living arrangement for their grown children at home, but for those who do, a simple residential real estate lease should be suitable. Remember, a signed written agreement is a legal and enforceable contract until challenged otherwise. As parents, we should be much more flexible and understanding with bright new graduate / tenant, or rather ‘temporary’ tenant at home.

Wealth Management: Tips to Save Money And Enjoy Your Wealth

Money management is one of the most crucial facets of human lives. Starting from an entrepreneur to a doctor, from a civil servant to a fashion designer- wealth management has got a pivotal role to play in everybody’s life. Apart from starting investing at the earliest, there are smart and smooth ways to saving money and accomplishing financial goals.

Until quite recently, investors had a limited option of investment tools. With every passing day, these options are increasing at a high pace. With investment options in gold, Equity Mutual fund, Forex, you can invest smart to earn desired return on investment. However, investment isn’t the one and only way to succeeding as far as managing your wealth is concerned.

It’s the habit of saving that matters a lot. Here’s how to save more and meet your monetary goals.

Shop With Discount Sale Offers. Every penny saved is every penny earned. You can shop for brand new clothes, books, utensils, watches, jewelry and so on with discounted sale offers. Get the same quality at lower price. It’s wise and smart.

Stop using Plastic Money. In an effort to save more, a few college teachers embarked on an experiment and stop using their plastic cards. No debit card, no credit card. Of the two, the later is more perilous, though seems to be a solution. The teachers found that they could go much lower than their previous daily spends. They saved a lot.

Budgetary Strategy. At the beginning of every month, make a list of things that need money. Prepare a monthly budget. However, sticking to a single budget plan for the twelve months of a year is not wise. Every month is different from the other and so should be your spending plan. Prepare a spending plan in a well thought through manner. Make a provision for emergencies though.

Need Vs. Want. Prioritize what’s essential. What are the things that you can’t do without? Focus on them; buying an iPhone can wait, though.

Making Use of What you Have. Take a look at the resources that you already have even before buying a thing that takes only a few bucks. What you have maybe more than sufficient to serve your purpose. Preserve your resources for they help save money on many occasions.

How a Financial Advisor Can Help You Stay on Track

Financial advisors can help you, the individual to stay on track with your personal money, but they should also be able to help you with more than just the “numbers” part of your personal money.

On a consistent and competent basis you should always expect them to help you with:

Measuring where you are now

You know the expression “you can’t know where you are going, if you don’t know where you have been.” Nothing could hold more truth, in relation to your personal finances.

If you don’t know your key money numbers (your net worth, monthly cash flows and several others), learning how you need to proceed forward in a helpful way is made more difficult.

If these calculations are properly determined they will tell you: what you have now (assets), what you owe now (liabilities) and what you have retained (equity). Further, the money that you earn and spend will be uncovered in detail, which will give you the extended information of what you can save, debt you can either pay-off or your capacity for new debt and serve to indicate if you have the funds to give money away and/or invest.

These questions are not easily answered without a proper look into your personal financial information and then suitable conclusions and decisions made from them.

Establishing your priorities

Prioritizing what you need and want from your money is not always easy.

There needs to be not only the “hard numbers” of your personal money situation but also some thought about your feelings towards money and how you think about it. For example, some of the questions that your advisor should include deal with:

What are the most important things in your life?
What do you want and expect for yourself and your money?
What do certain purchases bring to your life and are they worth it?
How best should you manage your time to get the most from it?
What money habits do you have that are not good for you?
Do you really understand the inner workings of money and how it affects you?

Making suggestions to reach your money goals

Although this could include a variety of methods, it should be one that is:

Realistic for your current situation
One that honours your future desires and goals
Doesn’t impose on who you are and what you are about
Doesn’t make demands but rather, works with you to move you forward and build momentum
Not a “cookie cutter” approach to your personal finances, that so many advisors promote

Helping you to develop a plan

Having a tangible plan for your money is really important so that you have something that is real to you and can be updated and referred to as needed.

Briefly, it should include:

Dealing with Debt

Getting Fast Cash From Pawn Shops

When you require cash instantly and have some saleable valuables, the best option would be to look for a pawn shop. Such a business can provide immediate cash and allow the borrower to get their pawned items back.

Most people have predetermined ideas about the business of pawn shops and they fail to appreciate that these shops offer fast cash to the needy. In fact, this business has been practiced since Roman times and it has remained unchanged over generations. It continues to be practiced till this day, since most borrowers find its working satisfactory. Almost every country of this world is familiar with this type of business.

What are pawn shops?

This business provides immediate loans against collateral, which is often represented by a household or personal possession of the borrower, who can collect the pawned items back on repaying the borrowed amount within a specified time. However, loans offered by pawn shops form a very small percentage of the price of the item pawned. For instance, on pawning a diamond ring worth $3000, the shop may offer just $250-300 as loan. So, it will not be wrong to compare pawn shop business to collateral loans, as the borrower offers some items for getting the loan.

Different shops have different rates of interest and buyback policies. Some of them charge a flat rate of interest of 1 percent for the first week, followed by higher rate of interest for the subsequent weeks. Many charge a flat rate of interest, without giving any consideration to the time the borrower may take for returning the borrowed money. The redemption period also varies with the dealer. The usual period is one month, but many pawn shop owners offer longer periods and charge additional interest when the borrowers ask for an extension of time.

Another aspect of business is to provide cash on consignment basis. It means that you allow the pawn shop owner to sell your item, but you get paid only when the shop owner sells that item. Of course, he’ll keep his margin as per the agreement. Or you may sell your items straightway to the dealer and collect cash on the spot. The dealer then displays the items in his showcase for selling purposes.

Common items accepted

This varies with pawn shop owners and the policies they may follow. At one time they accepted items like properties, cars and jewelry made from silver and gold, studded with precious stones. Even today many shops accept these items plus other items.

Present day pawn shops generally accept expensive electronic gadgets like computers, laptops, cell phones, TVs and DVD players. Certain specified shops accept firearms too.

Can I pawn guns and rifles?

Many pawn shops deal with firearms and thus accept them for providing loans. They need to have an area earmarked for selling the guns. Before selling firearms to such a shop, you should ensure that the shop owner has legal permission for this trade. Those people dealing with guns need a license and buyers need to possess the appropriate documents. In most cases, the buyer would need to have a proof of residence and state permit along with other documents. These days, one can easily locate a licensed gun shop by searching the Internet.

Unlike electronics equipment, firearms do not lose their value too soon, making them some of the best items for acquiring loans quickly. Apart from jewelry and other items in silver and gold, firearms are among the most popular items traded by such businesses. Due to their financial and emotional value, most people do their best to recuperate firearms, even when the interest rate is up to 25%. Most customers will manage to repay the loan and get back their items within 30 days.

Saving for Retirement – Why Planning Your Retirement Now Is Necessary

Saving for retirement is often looked upon as a burden, but once you reach the age of retirement it quickly becomes a blessing. Looking for ways to keep your lifestyle in retirement can be difficult to navigate. Pension and compensation packages offered by companies that gave a percentage of the employee’s salary is something that people used to be able to count on. Along with Social Security benefits, that would be enough to cover the cost of living. Unfortunately neither of those options is any longer a viable lone income for retirees.

Today, it’s up to the individual to provide a way to create a comfortable retirement and make sure their assets and income are handled properly. Learning how to save effectively can be a difficult thing to achieve. Finding a certified financial planner is a great step in the right direction, and other steps toward this process can also make sure you have a fun and relaxing future after your working life ends.

Making a Plan

Starting to save for retirement means looking at how much it costs you to maintain your assets and lifestyle. The U.S. Department of Labor recommends that you start by determining your net worth (the total value of your assets minus the value of your debts). You’ll want to create a nest egg that can continuously deliver what you need to sustain items like your house, car, property, and any other expense you currently have and plan to carry over into your retirement. Having this income after you stop working is an important part of your retirement plan.

Among the most popular are the 401(k) and the IRA (individual retirement account). The Roth IRA is a plan in which savings are taxed when contributed. So while taxes are taken up front and you have less to invest now, in the long run it could potentially be losing you less money.

Saving Money Now

When creating a retirement plan you need to look at your current budget and put together your expenses and income. If a significant portion of your monthly income is being spent on credit card debt, take an aggressive approach toward paying it off. While being proactive toward debt to make sure you don’t have any toward retirement, do not spend what you’ve been saving. Cutting every expense you have is not something that you would absolutely need to do, either. Start making coffee at home a few times a week instead of going to your local coffee house. Cutting small things here and there can add up after time and make long strides to achieving a balanced budget. Pretend that the money that you save doesn’t exist until after retirement. Staying out of your savings account is the best way to ensure it stays healthy until you need it.

Managing Loans

If you’re a home owner then you have both a huge debt and a valuable asset. It’s always a good idea to keep an eye on interest rates. If they begin to fall from what you currently are paying, considering financing your mortgage to get a lower rate. The extra money that you were using to pay off your mortgage with the higher rate can now go toward your retirement savings or paying off other outstanding debts you may have in order to get rid of them before you retire. Since credit cards almost always having a higher interest rate than a home mortgage, it may be a good idea to use the extra money you saved from refinancing to pay off your credit cards. Paying off your mortgage before retirement is one of the best things you can do with it. The recurring monthly expense of paying a home mortgage will result in an instant and quite large increase in your income, which is something that will come in handy when you stop working.

Is Your Money Planning a Debt Trap?

Have you taken your money for granted? Just because you can afford an overdraft fee or a late payment charge, it doesn’t help your overall personal financial needs. For those people who can afford to buy what they like when they like it do life in a much freer state of mind. Average households do not live that way and there must be some sort of a budget plan in order to keep everything in perspective.

Not everyone has the same money sense, style of management or drive to make their money work favorably. What they do have in common is a fear of failure. No one wants to see their budget fall apart or fall knee deep in debt.

Overdraft fees hurt. It is an instant finance charge a bank and credit union will charge to an account that drops below zero. It hurts finances as it is one more cost to deal with. The only way you can avoid paying this charge is by not putting money in a back into your account. That is never a good solution.

– Banks can freeze or debit other accounts you may have.

– Reports to ChexSystems can prevent you from having an account with a bank or credit union at all.

Have you ever thought about what would happen if you were refused bank service? It is important for you to make good on all charges and look into protection plans to help keep your account from overdrafts. Or, you can make more of an effort to keep track of your expenses and balances.

Affording monthly bills can leave unexpected costs unprotected. This type of situation is not always clear until money troubles create problems. You charge a new outfit, and the next credit statement goes up a few dollars. Why does everyone worry about credit card costs? Read on. Month after month, you may purchase a gift here or a tank of gas there and no big deal is ever recorded in your budget. The minimum payments are more than affordable. What’s this about credit card traps?

Credit cards are not necessarily a trap per se, but they do have the potential to become trouble when the user ignores them.

The problem may not lay in affording payments. There is more than one trouble when it comes to credit cards. As you fill the balances, your credit utilization score gets higher. The higher this number gets, the less creditworthy you become. Other creditors will look at your credit and decide to deny your request for a new card or raised limit. If they do approve you, the interest rate will be much higher than you’ve ever had. In fact your current creditor may just take a peek at your credit (as they do every 6 months) and see that you owe money to other places as well. They might even increase the rate on your account too. This new rate automatically applies to any balance you may previously had. Those minimum monthly payments will go up in extra interest cost. Can you really afford to give more of your income away just because you don’t want to see the true picture behind the debt?

It isn’t a good idea to ever ignore your personal finances. It doesn’t mean that you have to patrol every penny (even though it may not be a bad idea to do so). It also doesn’t mean that you should never charge wanted items on a credit card. The idea behind credit cards is to show how well people manage their money and handle their debt. Building debt piles with minimum payments is not a good outlook, no matter how affordable the cost.

Improve Your Family Relationship and Finances – Work From Home

Taking care of a family and living a healthy and stress free life is not always an easy task! Let’s face it, you have to get up every morning at a certain time, make sure the kids are up and get them ready for school! Then prepare to commute to work and do your best to beat traffic, which is not always easy to do! Depending on your commute and how long it takes you to get to work, you might have to rush out the door to make sure you can arrive at your place of employment on time, well there goes breakfast! And then after a long day at work where you made a lot of effort to make your boss richer, you now have to beat the traffic back home! Does that sound familiar?! It’s not fun, is it?!

Well, believe it or not, there is a better way!

Often times, you’re so busy with your daily life that you don’t always realize that after all even with all it’s seemingly stressful and less than perfect structure, we still live in an unbelievable land of opportunity that enables us to choose our own life style! All you need to do is pay attention to the staggering number of opportunities that are available in the market place and in many cases you can tap into them from the comfort of your home!

If you choose to become your own boss and work from the comfort of your home or home office, where you can spend more quality time with your family, the American ingenuity and free enterprise system, which still stands to be the best in the world can make that possible for you! The number of professional positions that are now available where you can telecommute from home and make unimaginable incomes are staggering! The only person that could stand between you and them is YOU!

Imagine, that you have 10 feet to commute to your office, where you can talk to clients, and do business in your pajamas or t-shirt and have a team of professionals to whom you can delegate your tasks and be rewarded according to the amount of focus you put into your business in a comfortable and relaxed environment! Sounds ideal?! It is?!

This is where you will have the opportunity to enhance your finances and improve the relationship with your family by living a stress free life where your personal efforts determine the rewards you reap and your personal time and attention determine the quality of life you create for your family!