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If you live in a big city like Atlanta or another area where real estate prices are going through the roof, it may be tempting to relocate to a cheaper area.
After all, the pasture always look greener on the other side. Furthermore, big cities have made it cool to live in large homes.
But big homes often mean big mortgage payments, so it may be time for you to make an adjustment to keep your mortgage from eating your paycheck.
Downsize Your Home
If you don’t have a family, it may make sense to downsize your home. Not only will the mortgage payments be easier to handle, but you may be able to the equity in your big home to add to your savings.
Other benefits to downsizing include:
- Lower energy bills
- Less maintenance
- Less financial stress
So many people believe moving to a cheaper city or state is going to make a difference, but the reality is that if you have a decent job, maybe you shouldn’t relocate.
Here are three other options that can help you downsize fast:
1. Set Goals
Re-align your financial goals based on where you want to be, not where you are now. Do you still need the amenities you bought the phone for? Do you still use that pool or sauna?
2. Refinance
Mortgage rates are approaching low levels again, and that makes a refi very attractive to people who have huge monthly payments.
3. Re-Invest Your Equity
If you’ve been in your big home for a nice period of time, it’s likely that your home has appreciated to the point that you have a pretty large nest egg inside of it.
Instead of continuing to pay that big mortgage, find a cheaper home in the same area or city and use that equity for the downpayment.
Better yet, you could use that equity to invest in a retirement fund like a 401(k).
Interested in other ways to save or make money? Check out our Money Section:
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When it comes to investing in yourself, one of the most easiest and convenient ways is by contributing to a 401(k).
If you’re familiar with it, this article is going to be a wonderful refresher. If not, then we’ll educate you on what you need to know about a 401(k) and why it’s a smart investment.
What Is A 401(k)? And How Does It Work?
A 401(k) is a retirement plan that allows you to contribute pre-tax dollars. It is typically sponsored by your employer.
With most money transactions, the government adds a tax to whatever you do. But that’s not the case with a 401(k).
The plan allows employees to save and invest a portion of their paycheck. A 401(k) is a way for you to get more bang for buck because the contribution is untaxed.
However, when you make a withdrawal, you will then be taxed! But more on that later…
When Did 401(k) Plans Start?
The 401(k) originated in the late 1970s. That’s when the U.S. Congress enacted the Revenue Act of 1978, which included Section 401(k) of the Internal Revenue Code.
Section 401(k) stipulated that workers could defer taxes on compensation.
If You Leave Your Job, What Happens To Your 401(K)?
One of the most-asked questions is, “What happens to my 401(k) when I leave my job?” When this happens, you have some options:
- You may be permitted to keep the money with your old company, although you’re allowed to move it without being penalized by paying income taxes.
- You can “roll” your money to an IRA, (called a rollover IRA), which can be done by a banking institution of your choice.
- You could take a “lump sum distribution,” which means you can cash out. If you do this, you will be hit with steep “early withdrawal fee,” perhaps as high as 10% (those age 59.5 and up are exempt).
Where Does Your Money Go In A 401(K) Plan?
A 401(k) can be viewed as a savings account, but it is more or less an investment account. There are three entities that operate your investment account. They are either:
- A brokerage firm
- A bank
- An investment firm
Which ever one you choose, your money will usually get invested in mutual funds, stocks and bonds.
he money will be invested for your retirement, usually in your choice of a variety of mutual funds.
What Is A Traditional IRA vs. Roth IRA?
The primary difference between a traditional IRA and a Roth IRA is that a Roth IRA allows you to pay taxes immediately on your contributions.
This has several benefits, including the fact that you won’t be saddled with them when you retire on a fixed income.
Should You Open A 401(K)?
You should definitely open a 401(K) and the earlier the better. By some estimates, if you open a 401(k) with your employer when you’re 22 years old, you’ll have a $1 million in it by the time you retire.
If your employer matches your contribution (not all companies do), you’re in even better shape to fund your future retirement.
I hope this has been helpful so that you can see the benefits of a 401(k). If you have questions, let me know in the comments.
Interested in other ways to save or make money? Check out our Money Section:
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You already know Atlanta is a haven for businesswomen, but the news gets even better. According to a new report from loan site LendingTree, Atlanta is among the top cities for small businesses.
The site commissioned an online survey of 1,281 Americans from Jan. 2-10, 2020 to come up with the findings, which show that Atlanta ranks #6 among top cities for small businesses.
Top 10 Places for New Small Businesses
Here are the top 10 cities, according to LendingTree.Rank
Metro
% of Businesses 5
Yrs Old or
Younger% of
Businesses
Profitable% of Businesses
with Revenue Less
than $1M% of Firms with
Less than 250
EmployeesIndex
1
Seattle
34.4%
70.9%
70.3%
95.6%
100
2
Denver
35.7%
69.4%
70.8%
94.9%
97.46
3
Tampa, Fla.
35.4%
64.9%
74.1%
95.8%
95.76
4
Miami
39.2%
61.0%
76.7%
97.9%
92.37
5
Portland, Ore.
33.1%
69.8%
69.2%
95.5%
88.98
6
Atlanta
35.5%
66.6%
70.2%
95.2%
88.14
7
Orlando, Fla.
38.6%
64.7%
74.0%
94.6%
86.44
8
Los Angeles
36.3%
62.9%
69.6%
98.0%
83.9
9
New York
35.7%
57.4%
72.1%
98.6%
81.36
10
Minneapolis
27.9%
69.1%
69.6%
95.9%
79.66
See the full report HERE.
Is Atlanta A Good Place To Start A Business?
With a diverse economy, strong population growth and higher than average cost of living, Atlanta is a very good place to start a business.
When it comes to doing business, Atlanta has one of the lowest costs of doing business in the country, considering its size.The state of Georgia also provides a bevy of incentives to high-profile sectors such as the film industry and more.
Interested in other ways to save or make money? Check out our Money Section:
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Want to know how to get a Spectrum Discount? The #1 is to apply for Spectrum Assist.
This article is going to show you everything you need to know on how to get a Spectrum discount through Spectrum Assist.
What Is Spectrum Assist?
Spectrum Assist is a program offered by Spectrum to get high-speed internet to low income households.
The thing with Spectrum Assist is you have to qualify to get it. It’s only available to qualified households.
What Do You Get With Spectrum?
Here are the key features you get with Spectrum internet:
- No data caps
- No contract
- Free modem
- $5 a month home Wi-Fi (optional)
We told you that you have to qualify for Spectrum Assist. Here are the requirements, according to Spectrum’s website:
Someone in the household must be a recipient in any of these programs:
- National School Lunch Program (NSLP)
- Community Eligibility Provision (CEP) of the NSLP
- Supplemental Security Income (for applicants age 65+ only)
If your household meets that requirement, download the application HERE.
Once the application is completed, you can scan it and email it and other required documents to MAILFORSIA@charter.com.
If you’re using the U.S. mail, mail it to:
Spectrum Internet Assist Program – OCS
4145 S. Falkenburg Road, Riverview, Florida 33578If you want to keep abreast of the latest lifestyle news, subscribe to AtlantaFi.com’s newsletter.More Articles From AtlantaFi:
