Category: Budgeting

Is Your Tax Refund Too Big?

by Advantage One, posted in Budgeting, Lifestyle, Tips & Best Practices, Uncategorized

Q: I’ve filed my taxes, and I’ll be getting quite a sizable refund this year. I love getting free money in my checking account, but I’ve heard this may not be a good thing. Am I doing something wrong?

A: Everyone loves getting money from the government, but your concerns are absolutely valid. Let’s take a look at why an extra-large tax refund may not be in the taxpayer’s best interests, along with how to lower a refund in the future. 

What’s wrong with a big tax refund?

First, it’s important to note that a tax refund is not “free money” from the government. A tax refund is actually the government’s way of returning the extra money you paid them throughout the year. Essentially, you’ve been lending the government money all year, and they’re now paying up on the loan.

But it gets worse. When you lend the government this money, they return it dollar-for-dollar without paying you any interest. Contrast this to any kind of consumer loan, in which the borrower pays a percentage of interest on every payment they make toward the loan. If you landed a $3,000 tax refund this year, you’ve given the government a $3,000 interest-free loan!

Finally, consider the various ways you could have used these funds this year. The extra padding in your checking account could mean the difference between just making it through the month and having some breathing room in your budget for stress-free money management. If things are extra-tight now – as they are for many – that missing money may have put you over the edge and into debt. You could have been investing that money and watching it grow. Or, maybe you would have put that money toward saving for a short- or long-term goal. Instead, that money went to the IRS, month after month, and it’s just now being returned to you.

How do I know if my tax refund is too large?

The average tax refund for the 2021 filing year was $3,039. If your refund is close to this amount, or it exceeds it, it’s likely too large. Make sure you take steps toward lowering your refund amount for the next tax year so you can put those funds to better use.

However, under specific circumstances, a taxpayer may actually be better off with a bigger refund. For individuals who are unlikely to save any extra money throughout the year and would squander the extra funds, a bigger tax refund might be the better choice. These taxpayers may find it easier to make responsible money choices with a lump sum at year’s end as opposed to smaller sums each month. If you fit into this category, consider keeping your refund on the large side.

How do I lower my tax refund next year?

If you think this year’s tax refund was too large and you want to lower next year’s amount, you’ll need to make some changes now. 

If you’re a salaried worker, ask your employer for a new W-4. Check your withholding amount to see how you can adjust it to have less money withheld each month, and more money in your pocket throughout the year. Claiming more allowances on your W-4 will decrease the amount of money withheld on each paycheck. You may want to speak with an accountant to make the best choices on your form. 

Everyone likes getting free money, especially when it comes from the government. But a large tax refund isn’t free – and it’s usually not good news. Use this guide to learn about why a large tax refund may not be in your best interests, and how to change it going forward. 

Your Turn: Have you voluntarily lowered your tax refund? Tell us about it in the comments. 

Time to Move or Time to Improve? Moving Vs. Home Improvement

by Advantage One, posted in Budgeting, Convenience, Home Buying, Lifestyle, Loans, Saving, Tips & Best Practices, Uncategorized

Q: My family is growing out of our current home and we’re desperate for more living space. My house can also use a major face-lift. I’m wondering: should I move to a new house, or make some major improvements to my current home?

A: Choosing to move to a new home or to make improvements to your current home is a big decision. The right answer will depend on your general financial situation and other personal circumstances. Here, we’ve outlined the pros and cons of each choice so you can make the decision that is best for you. 

Moving to a new home

For most people, a home is the largest purchase they will make during their lifetime. It can take years to save up for a down payment on a home, and many months of planning and wise decision-making before a home purchase is finalized. 

Pros of moving:

  • Opportunity for a fresh start. You can choose a new location that better suits your needs, such as a superior school district, proximity to family or work or a more desirable community.
  • More living space. This is especially beneficial if you have a growing family or want to add more amenities to your home, such as a home office, designated playroom or gym.
  • Potential for appreciation. If you buy a home in an area that is experiencing growth, your property value may increase over time, resulting in a return on your investment.
  • No dealing with renovations. If you purchase a home that’s already in move-in condition, you won’t have to deal with the headache of renovations at all. 

Cons of moving:

  • Exorbitant upfront costs. Moving to a new home doesn’t come cheaply. You’ll need to spring for closing costs, a down payment, the actual move and for any new furniture you may need to purchase for your new residence. Selling your current home will also cost you in renovations, agent fees and title insurance.
  • Emotional attachment to your home. Did your son take his first steps in the kitchen of your current home? Did your dog have her puppies in the garage?  If you’ve been living in this home for many years and it holds lots of happy memories, you may be reluctant to leave. 
  • Difficulty finding the perfect home. You may need to settle for a home that is less than perfect in many ways. That may end in more stress and regret.
  • Stress of selling your home. The housing market is unpredictable, and you may not be able to sell your current home for the desired price. Of course, if you don’t own your current home, this does not apply to you.
  • Potentially higher interest rate on your mortgage. If rates have increased since you bought or refinanced your current home, or your credit score has slid, you may end up with a higher interest rate on your new mortgage. That could mean paying much more over the long run.

Questions to ask before deciding to move

Before you go ahead with the decision to move to a new home, ask yourself these questions: 

  • What are the market conditions like in my current neighborhood? Will I be able to get my asking price on my home within a short amount of time?
  • What are the market conditions like in my desired neighborhood, and how are they trending? Will I be able to find a home that suits my needs and is within my price range?
  • Do I have enough money saved up to pay for the move? Will I need to wait until I sell my home or take out a bridge loan to cover the gap?
  • Is this a good time for my family to move?

Improving your current home

Now, let’s take a look at the option of improving your current home with a Home Equity Line of Credit (HELOC). A HELOC gives you quick access to cash by using your home as collateral. You can withdraw the funds, as needed, over a period of time known as the draw period. When this time is over, you’ll no longer be able to advance funds and will repay the loan, with interest, over the repayment period.

You can also take out a Home Equity Loan (HEL), which will provide you with one lump sum, generally at a fixed rate and payment, and you start paying back immediately. 

Pros of improving your home:

  • Completely customize to fit your needs. When you design your own home, you can have it customized to perfectly suit your family’s needs and your own tastes. Think trampoline floors in the playroom and built-in bookshelves in the family room.
  • No stress of relocating. When you renovate your home, you can continue to enjoy the same home and neighborhood you’ve lived in for years. 
  • Increase the value of your home. Home improvement projects increase your home’s value, increasing your net profit when you do decide to sell in the future. 
  • Save on moving costs. Why pay thousands of dollars in closing and moving costs when you can have a beautiful new living room for the same price?

Cons of improving your home:

  • Stress of renovations. Dealing with a home improvement project can be super-stressful. There are loads of decisions to make, an endless mess and workers in your home at all hours of the day. 
  • Risk of foreclosure. Taking out a HELOC or HEL puts your home at risk of foreclosure if you are unable to make the payments. This can have long-term consequences on your credit score and financial stability.
  • Additional debt. A HELOC or HEL adds another debt to pay each month, which can be a burden on your budget. 

Questions to ask before deciding to improve your home

Before you go ahead with the decision to improve your current home, ask yourself these questions: 

  • Can I afford the monthly payments on a HELOC?
  • How much will a home improvement project cost me?
  • Will I be able to handle living in a construction zone?
  • Do I want to continue living in this neighborhood?

Your Turn: Have you chosen to move or to improve? Tell us what drove your choice in the comments. 

Travel Hacks 3 of 12-Choose a Vacation Date

by Advantage One, posted in Budgeting, Convenience, Lifestyle, Tips & Best Practices

If you’re planning a dream getaway, you don’t have to plan on spending a boatload of money. An easy way to bring down costs while still enjoying the vacation of a lifetime is to be flexible with your vacation date. Let’s take a look at why your vacation date has such a strong impact on prices and how to be flexible with your travel plans. 

Why flexibility matters

If your vacation dates are rigid, your flight and lodging choices will be limited. In fact, you may be paying an artificially inflated price just to travel during that time. 

Airline tickets, hotel stays and other vacation costs are established according to these economic variables:

  • SupplyDemandRandomnessNumber of options

If your plans include specific dates, you instantly constrain the last variable, making the costs dependent on the first three, which are all out of your control. You’ll have no choice but to pay whatever the cost is to travel during the time you chose. 

Of course, you can still luck out and find cheap tickets or next-to-nothing hotel stays during your chosen dates, but your chances for that happening are a lot lower than they’d be if you were flexible with your vacation timing. 

For a quick way to see how flexibility with your travel dates can bring down the price of your vacation, try a simple Google Flight Explore search. Input the locations for your departure and destination, and then provide the search engine with specific dates. You’ll likely be provided with several choices. Now, try the same search, but instead of giving the search tool specific dates, provide only a vague description of your travel date. For example, you can write “within the next three months” or even “in the next year” and see what Google returns to you. Now, compare your choices. How much can you save by being flexible with your travel dates?

How to be flexible with your travel plans

If this all sounds wonderful in theory, but not a very practical way to plan a vacation, especially when you need to make arrangements for missing work and for pet or child care while you’re out of town, keep in mind that you don’t need to be completely open-ended with your vacation dates to take advantage of off-season prices. You can search for flights and hotel stays during a specific season, or even during the last two weeks of your chosen month, and still enjoy discounted airfare and hotel stays. 

To increase your chances of landing bargain-priced airline tickets, you can also be flexible with your destination. For example, instead of searching for tickets to France during Independence Day weekend, you can look for tickets to landmark cities in Europe during the month of July. You’ll see a world of a difference in the prices when you’re willing to be open with your plans. 

Finally, be upfront with your workplace about your planned vacation search. Let them know that you want to go away sometime in July, or anytime in the summer, though it may not be during official vacation times. Chances are, they’ll be happy to have you around when most of the company is jetting off on vacation, and may even offer you more flexibility with your vacation dates when you travel off-season. 

Tech tools 

Of course, you don’t have to find those elusive airfare deals on your own. As mentioned, Google’s Flight Explore is an excellent way to find low-cost airline tickets for the time you want to travel. Check out other travel apps like Kayak, Orbitz and Hopper for exclusive deals on airfare. Some apps offer the option of signing up for alerts, which is a great way to ensure you don’t miss out on any fabulous price drops. 

Saving on vacation costs can be as simple as being flexible with your travel dates. Happy travels!

Your Turn: Have you traveled off-season? Tell us about it in the comments.

Affordable Sustainability 2 of 12-Going Organic on a Budget

by Advantage One, posted in Budgeting, Lifestyle, News & Events, Saving, Tips & Best Practices, Uncategorized

Going organic is a great way to improve your personal health and the health of the environment. By choosing organic products, you can help reduce the amount of synthetic pesticides and fertilizers that are used in the farming and harvesting of food products, which can have devastating effects on the soil, water and air. 

Fortunately, going organic does not have to mean spending big. Here’s how to go organic on a budget.

Prioritize your purchases 

If you’re on a strict budget, you likely won’t be able to go completely organic all at once. Choose what’s most important to you, and start there. For example, you can choose to buy organic produce, but opt to continue using non-organic cleaning products. Eventually, when you’ve found ways to work new expenses into your budget, you can move on to another area until you’ve completely embraced the organic lifestyle.

Buy in bulk

Purchasing products in bulk can often save money, and this is especially true for organic products. Look for bulk bins at your local natural grocery store for steep savings on all things organic. You can also consider joining a club store to get discounted prices on organic products in large quantities. If you can’t finish all your bulk organic purchases before they go bad, you can always partner with a friend and split the costs.                                                             

Shop the seasons

In-season produce generally tastes better than off-season fruits and vegetables, and it’s cheaper, too. Choosing organic produce that grows locally while it’s in season locally can significantly bring down your grocery bill, even after going organic. A quick Google search can tell you what’s currently in season in your area of the country.

Grow your own

If you have the time and space, consider growing your own organic greens and herbs. You’ll enjoy the unique satisfaction that comes from growing, harvesting and eating your own foods, and you’ll have access to inexpensive organic produce that’s fresh and ready to eat. 

Shop the farmers market

Your local farmers market is a great place to find fresh, locally grown organic produce at affordable prices. You’ll find organic meat, dairy and other products at the farmers markets while supporting local farms.

Stalk your favorite organic brands on social media

Brands will often alert their followers to fantastic deals and discounts that may otherwise be missed. As soon as you find an organic food brand you love, follow it on Twitter, Facebook and Instagram. If it has a newsletter, sign up for it. Ask to be included in promotional emails and text message alerts, too. This way, you’ll never miss a sale.

Look for store brands

Lots of grocery stores, like Target and Trader Joe’s, now offer their own line of organic products. These tend to be a lot cheaper than companies that are not affiliated with a specific store. Just remember to read all ingredients carefully when shopping store brands to ensure you’re actually getting what you believe you’re buying.

Buy frozen or canned food products

Frozen and canned organic products can be a more budget-friendly option than their fresh counterparts. These have an almost infinite shelf life as well, so it’s a good idea to stock up and save these goodies in your freezer and pantry.

Shop smart

Finally, follow the basic rules for smart shopping to save on your organic purchases. Plan your menu around the sales, and always shop with a list. Take a smaller cart, or even a basket if you can swing it, and if you always find yourself blowing your budget at the grocery, shop with cash. 

By following these tips, you can make the switch to an organic lifestyle without breaking the bank. While it may require some planning, the benefits for both your personal health and the environment make it well worth it.

Your Turn: Have you gone organic and done so on a budget? Share your best tips with us in the comments.

What is a Personal Line of Credit?

by Advantage One, posted in Budgeting, Convenience, Credit, Loans, Tips & Best Practices

Q: I need access to an indefinite amount of funds for expenses, so I’m thinking of taking out a personal line of credit. What is the difference between this product and a personal loan or a credit card?

A: Personal lines of credit can be a great way to access necessary funds for covering various expenses, with minimal hassle and easy payback terms. Let’s take a look at how this loan product differs from traditional personal loans and credit cards, as well as why it can be a fantastic option. 

What’s a personal line of credit?

A personal line of credit (PLOC) is a form of revolving credit up to a specified amount that works much like a credit card. The borrower can use the money as needed until the maximum allowable credit line (aka “limit”) is used. As the borrower makes monthly payments toward the balance, the available credit is updated to reflect the principal balance that has been repaid.

A PLOC has two phases: the draw period and the repayment period. During the draw period, which typically lasts two years, the borrower can take out as much money as needed from the available credit line. Once the formal repayment period begins, the borrower can no longer take out cash from the credit line. It should be noted that the borrower does not have to wait for the repayment period to commence; they can typically begin repaying the used line as soon as they start drawing.                                                                                          

How is a personal line of credit different from a personal loan?

Unlike a PLOC, a personal loan provides the borrower with a lump sum of money that is generally used immediately for a specific purpose. Personal loans usually feature a fixed interest rate and a fixed payment amount throughout the term. You’ll make consistent payments toward the loan’s interest and principal throughout the life of the loan.

How is a personal line of credit different from a credit card?

As a form of revolving credit, a PLOC is similar to a credit card. Both are unsecured and can feature high interest rates, which will probably be adjustable rather than fixed. However, a PLOC generally has a lower interest rate than a consumer credit card. It also has a limited draw term, unlike a credit card, which can be open for years.  

When is it a good idea to choose a personal line of credit? 

While a personal loan can provide the freedom to use the money you borrow as needed and a fixed repayment plan, a PLOC can be a great flexible borrowing option in many circumstances, such as a home improvement project or any other ongoing purpose for which the borrower does not know exact costs. It can also be a good way for a borrower with fluctuating income to get through the tighter months. Finally, it can be used to pay for a major life event, such as a wedding or adoption, for which the borrower does not have an exact price tag, but for which they will be planning over the course of many months.  

A PLOC offers the borrower many benefits, including:

  • Flexible borrowing of funds spread out over many months
  • Instant access to funds when needed
  • No repayments unless the funds are used

Before you take out a PLOC

Before going ahead with your application for a PLOC, make sure you understand the exact terms and conditions associated with your line of credit. You should be clear on when your draw period ends and you’ll no longer be able to access your funds, whether there is a cap on your interest rate and the maximum amount of funds you’ll be able to use from your line of credit.

A PLOC can be an excellent way to access a large amount of funds with manageable payback terms. To learn more about this loan product, call, click or stop by Advantage One Credit Union today.

Your Turn: Have you taken out a PLOC? Tell us what you love about this loan product in the comments.

5 Ways to Save on Workplace Lunches

by Advantage One, posted in Budgeting, Career, Convenience, Lifestyle, Saving, Tips & Best Practices

Did you know that spending $10 to buy lunch at work each day will cost you $2,600 a year? And if you spend $20 each day, well … that number doubles! That’s a lot of money that could be better spent toward a vacation, a luxury purchase you’ve been dreaming of, paying down existing debts or just sitting in an investment fund or savings account. Here’s how to save on workplace lunches by brown-bagging it and beyond. 

Check out your workplace kitchen

If you’ve been buying your lunch every day, you may not even know what space and appliances are available to you in the office kitchen. Check out what your workplace provides for its employees in the way of food storage and prep so you can be better prepared when planning and packing your lunches. Is there a microwave, toaster or another appliance at the office? Do you have access to cabinet space and/or a fridge? Are there spice packets and condiments for the taking? 

Love those leftovers

Don’t just use the bit of leftover dinner proteins to add to your work lunch salads; cook dinner with the next day’s lunch in mind. Add a bit of extra protein to your entree, and then slice it or shred it for your workday sandwich or salad. If you’re cooking up pasta, set some aside to take to work the next day before you add any sauces or cheese. Homemade pizza is great the next day, too. Pack some condiments, cheese and your favorite salad add-ons to add life to your leftovers at work.

Jar it

Mason jars are the perfect food storage solution, and they’re pretty, too! Pack a tight salad, layered meal or anything at all in small Mason jars and it’ll stay fresh for several days in your home or work fridge. Jarring your lunch is a great solution for the employee who finds it challenging to carve out time for lunch prep each evening or morning. All you need is one marathon food prep session over the weekend, and you’ll be set for the week.

Freeze it

If your office provides freezer space for its employees, you may want to load up on some frozen meal options. You can find some delicious and healthful frozen lunches at Trader Joe’s, Whole Foods and other grocery stores. Keep them at work for those days when you didn’t plan ahead for lunch but don’t want to blow a twenty on takeout. 

Partner up with a colleague

If you still want to spring for takeout at work, consider partnering up with a friend to bring down the price. You can split a lunch special, share a personal pie or even take turns sponsoring a lunch so you don’t have to pay for your meal each day. 

Use these hacks to brown-bag it like a pro and save on workplace lunches. 

Your Turn: How do you save on workplace lunches? Share your best hacks in the comments. 

Travel Hacks 2 of 12-Open a Vacation Club Account

by Advantage One, posted in Budgeting, Convenience, Lifestyle, Saving, Tips & Best Practices, Uncategorized

Planning your dream vacation can be great fun – until you need to figure out how you’re going to pay for it. Stressing over every expense and dreading the bills you know will be waiting for you at home can be an epic killjoy to the best of vacations. 

Lucky for you, as a member of Advantage One Credit Union, you have access to a variety of savings options and loans that can help you save up for, or borrow money, to fund a large purchase, like a dream getaway. One of these options is the Vacation Club Savings Account [or the Holiday Club Savings Account]. 

Let’s take a closer look at this savings vehicle and how it can help make your dream vacation more affordable. 

What is a club account?

A club account is a type of savings account in which the account holder makes regular contributions toward a predetermined goal. Vacation club accounts are designed to help the account holder save up for vacation expenses. Spreading the cost of a large, seasonal expense throughout the year makes it easier to accomplish. 

Are there restrictions on vacation club accounts?

The funds in a vacation club account can generally only be withdrawn when the predetermined goal has been achieved. This may be a specific date or amount of money. To discourage the account owner from deterring their progress toward their goal, early withdrawals from a vacation club account may be penalized or the account may even be closed out. 

What are some advantages of a vacation club account?

As mentioned, vacation club accounts make dream vacations affordable by spreading the costs over the course of the full year. However, there are many more benefits to opening a vacation club account. Here are just a few:

  • Incentive to save. Having a separate place to keep your vacation funds makes it easier to track your progress and incentivizes you to keep saving.  
  • Name your account. Many financial institutions allow members to name their vacation club accounts with a custom title. For example, you may be able to call your account “Europe Vacation 2024.” Attaching your vacation plans to your club account helps make it real and can motivate you to stick to your goal. 
  • Builds strong saving habits. Making regular monthly contributions to a savings account is a great workout for your savings muscle and a big boost to your general financial health. Ideally, this new habit will continue well beyond achieving the initial goal. 
  • Prevents overspending and debt. Lots of vacationers will swipe or borrow their way through a vacay and then scramble for months after it to pay it all back. The financially responsible way to pay for a vacation is, of course, to save up for it before setting out. A vacation club helps you do just that. 
  • Keeps vacation money out of sight. Out of sight and out of mind. You’re less able to spend that vacation money when it’s in a savings account at the credit union. 
  • Favorable dividend rates. Vacation club accounts tend to offer higher dividends than other non-maturing share accounts.

Is a vacation club account for everyone? 

While vacation club accounts offer a convenient way to save up for a dream getaway, they may not be the best choice for every individual. 

First, club accounts restrict the account holder’s access to the money. If you do not have a sufficient emergency fund and/or another safety net, you may be better off building up your general savings before opening a vacation club account. 

Second, if you’re the kind of vacationer who likes to plan and fund bits and pieces of your getaway throughout the year, a vacation club may not be in your best interest, either. With your money tied up in your club account, you won’t be able to use the funds to book airline tickets in November, make hotel reservations in February and arrange a car rental in April. 

Vacation club accounts make dream getaways more affordable by spreading the costs throughout the year, but they may not be for everyone’s money management style. Consider this info about these specialty accounts and make an informed decision. 

Your Turn: Do you have a vacation club account? Tell us about it in the comments. 

Just Keep Buying: Proven Ways to Save Money and Build Your Wealth

by Advantage One, posted in book review, Budgeting, Lifestyle, Saving, Tips & Best Practices, Uncategorized

Title: Just Keep Buying: Proven Ways to Save Money and Build Your Wealth

Author: Nick Maggiulli 

Paperback: 296 pages

Publisher: Harriman House

Publishing date: April 12, 2022

Who is this book for? 

  • New and experienced investors looking for hard evidence on money management, building wealth and investing.

What’s inside this book?

  • Real data and stats on the biggest questions in personal finance and investing.
  • Proven ways to build wealth.
  • Engaging anecdotes with powerful life lessons.

3 lessons you’ll learn from this book:  

  1. Why you need to save less money than you think you do.
  2. Why saving cash to buy during market dips is not the best idea.
  3. How to survive – and even thrive – during a market crash.

3 questions this book will answer for you:  

  1. How can I start building wealth today?
  2. Is everything I’ve learned about investing true?
  3. How can I take smarter steps and live richer?

What people are saying about this book: 

“Nick Maggiulli clearly delights in flouting the received wisdom about how people should manage their money. The end result is a book that’s full of both aha moments and practical takeaways. As a fellow writer about personal finance, I felt a creeping sense of jealousy in what I was reading. Nick takes the tired topics of how to save and invest well and managed to make them utterly fresh and even quite a bit of fun.” – Christine Benz

“The first time I read Nick Maggiulli’s writing, I knew he had a special talent. There are lots of good data scientists, and lots of good storytellers. But few understand the data and can tell a compelling story about it like Nick. This is a must read.” – Morgan Housel

“Just Keep Buying is the ideal combination of thoughtful and actionable. Maggiulli not only uses evidence to guide his suggestions, but he is also among the best at boiling everything down into ideas that are easy-to-understand and apply.” – James Clear

Your Turn: What did you think of Just Keep Buying? Share your opinion in the comments. 

Affordable Sustainability 1 of 12-All You Need to Know About Going Solar

by Advantage One, posted in Budgeting, Home Buying, Lifestyle, Tips & Best Practices, Uncategorized

Since 2008, hundreds of thousands of homeowners have chosen to install solar panels on their rooftops to use the sun’s energy for powering their homes. Solar panels can benefit the environment and can save the homeowner boatloads of money in energy costs over the years. Thanks to the ever-evolving solar industry and generous government incentives, solar panels are more popular than ever. Here’s what you need to know about going solar.

How do solar panels work?

Residential solar panels use technology known as photovoltaics, or PV. When the sun shines on these solar panels, photons from the sun are absorbed by the cells in the panel, which creates an electric field across the layers and causes electricity to flow. 

Can every roof support solar panels?

Unfortunately, not every roof, or every home, is suitable for solar panels. A roof may be too weak to hold the panels, due to age and wear. There may be trees blocking the sunlight from reaching a roof, making it unsuitable for solar panels. Or, the shape and slope of the roof may make it difficult to hold or house the panels. 

In general, the best candidates for solar panels are south-facing roofs with a slope of 15 to 40 degrees that are in decent condition and won’t need to be replaced within a few years. If your roof doesn’t match these exact criteria, though, it can still be suitable for solar energy. It’s best to have a professional evaluate your roof to determine whether solar panels can work for your home.

The dollars and sense of going solar

Most homeowners interested in going solar want to know how much money they’ll save on energy costs before purchasing. However, it can be difficult to put a dollar amount on the savings incurred from installing solar panels. The exact amount of money saved depends on the buyer’s monthly energy consumption, the rates set by their utility company, the direction, size and slope of their roof, the size of the solar energy system they purchase and whether they choose to buy or lease their panels. Government incentives that pay for part of the purchase make a difference in savings incurred, as well. 

The cost of going solar has dropped significantly since 2009, as competition in the industry increases and the price of panels and installation keeps falling. While costs will vary tremendously by roof, location and other factors, according to the Center for Sustainable Energy, installing a solar panel system will cost homeowners an average of $20,000, or $14,000 after the federal tax credit. Depending on your home state, there can be additional government incentives for lowering the cost. Before making the choice to go solar, though, speak to a professional in the industry about any possible kickback from your state and a realistic idea of actual cost. 

Solar financing

If you’ve decided to go ahead and install solar panels on your roof, you have several options for financing the purchase:

  • Cash. If you can afford to fund the entire purchase in one go, you’ll enjoy the most significant savings. Solar panels can reduce your electric bill by 70-100%. This means most systems will pay for themselves in five to seven years. 
  • Lease agreement. Solar leasing is not available in every state, but it is an option in approximately half of the country. You’ll pay a monthly rent for the panels, but forego any upfront fees. The leasing company will install the panels and collect the federal tax credit on your behalf. The downside to this choice is that the leasing company will remove the panels after the lease agreement is over, or charge you full price to keep them.
  • Solar loan. A secured solar loan will use your home as collateral and offer tax-deductible interest, while an unsecured solar loan will likely have higher interest rates. 
  • Home Equity Loan or Home Equity Line of Credit (HELOC). One of the most  financially flexible ways to finance your solar panel purchase is through a loan or a line of credit taken out against your home’s value.

Solar panels and the environment

One of the biggest incentives for going solar is to help the environment. As a renewable source of energy, solar power reduces greenhouse gas emissions like carbon monoxide into the environment. This translates into less pollution and cleaner air and water. 

Going solar can be a favorable choice for the environment–and your budget. Use this guide to make an informed decision about changing your home’s energy source. 

Your Turn: Is your home solar-powered? Tell us about it in the comments.

Wealth Habits: Six Ordinary Steps to Achieve Extraordinary Financial Freedom

by Advantage One, posted in book review, Budgeting, Credit, Debit, Lifestyle, Reviews, Saving, security, Tips & Best Practices, Uncategorized

Title: Wealth Habits: Six Ordinary Steps to Achieve Extraordinary Financial Freedom

Author: Candy Valentino

Hardcover: 256 pages

Publisher: Wiley

Publishing date: Nov. 15, 2022

Who is this book for? 

  • Anyone lacking connections and/or an education who’s wanting to build wealth.
  • Seasoned entrepreneurs, young adults and everyone in between who is looking for financial guidance. 

What’s inside this book?

  • Candy’s own story of how she opened her first store at age 19 (without the benefit of a college education) and built it into a 7-figure business before most of her friends had even completed college.
  • The six key habits to building wealth:
  1. Long-term investing strategies
  2. How to recession-proof your life
  3. Ways to keep money out of the IRS’ hands
  4. What to teach your children about money
  5. How to establish financial protection and security
  6. The secrets to keep more of the money you make (so you can invest more of it)

4 questions this book will answer for you:  

  • Can I get ahead in life without having a formal education?
  • What are the key habits needed for building wealth?
  • Is it too late to turn my money story around?
  • How can I overcome obstacles to my financial freedom?

What people are saying about this book: 

“I love the way Candy thinks. She shows you how to collapse time in a way the most successful people I know have done: breaking wealth down to the simplest form of the game to create success. This book should be required reading for every high school student, aspiring entrepreneur, or anyone who wants to turn the tables on their current financial situation.” – Rick Steele

“People that build wealth do things differently. Not only does Candy understand this from her own experience, but she does a masterful job of giving the reader actionable steps to immediately put them on the path to financial freedom and generational wealth. She has cracked the code, and if you’re looking to change your financial reality, this book is for you.” – Todd Davis

“Candy Valentino is the real deal! She’s overcome massive obstacles and built practical systems to help anyone achieve massive wealth. I highly recommend this book!” – Rory Vaden

“Candy Valentino is an Entrepreneur’s Entrepreneur! By researching and interviewing the various stages of wealth creation from industry leaders, Candy has really done a masterful job of simplifying the complex. This book is a must read!” – Tom Hatten 

Your Turn: What did you think of Wealth Habits? Share your opinion in the comments.