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10 Ways to Save Money Setting Up a Home Office

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Whether you started working from home in 2020 or are just now looking into it, use these ten tips to save money on your at-home office and workspace. 

#1. Use Furniture and Equipment That You Already Own

If you are working from home, the first thing you want to do is see what you already have on hand. There is no point in buying something new if you do not need it. 

Think about whether something can be repurposed.

  • Do you have an old kitchen table you can reuse as a desk.? 
  • Can you use a box or stack of books to create a standing desk?

Likely, you already have some items that can be used in a pinch. Once you know what you have, you can figure out what you need.

#2. Ask Your Employer for a Reimbursement

Certain states in the U.S. require companies to cover home office costs. If you live in or your company is based in California, the District of Columbia (Washington D.C.), Illinois, Iowa, Massachusetts, Montana, or New York, you may be able to get a reimbursement. 

You may have heard of deducting office expenses from taxes. However, this only applies if you are self-employed. You cannot deduct these expenses from your taxes if you work for a company.

#3. Deduct Your Home Office from Your Taxes

If you are self-employed, you will deduct some expenses from your taxes. It is essential to talk to a tax specialist to determine what fees you can and cannot remove. 

For instance, if your computer breaks down and you need a new one, that counts. However, if you do not need a new computer and want one, you may be able to get it deducted, but you might also get audited. 

Office space can only be deducted if you have a dedicated room. Sometimes you can remove a portion of a room, but you will be more likely to be audited again. 

The key to deducting from your taxes is to show that the item or items are being used for work purposes. Ideally, the space and items will be work only. 

#4. Keep a List of Things You Need to Buy

You figured out what you already have; now it is time for the things you need. Make a list and keep it on hand. This way, you can keep your eye out for sales on those things. When you buy something, mark it off the list.

If you are self-employed and hoping to get a tax break, make sure to make a list of everything you buy, where you bought it, and how much you spent. Keep receipts for proof in case you do get audited. Ideally, these receipts will show only the work items bought.

If you are looking for reimbursement from an employer, you will also need receipts. In this case, you will want a list of items purchased to mark off which ones you got reimbursed for. This way, in the future, you know what your company will and will not return. 

#5. Shop Sales Online

Sign up for email notifications with all the local office supply stores and any stores or websites to buy what you need. Check your email every day to see who might be having a sale and whether something you need is on sale.

If you see that something you need is on sale, buy it. To help you save money, set aside money each week or month so that when the deals pop up, you can buy something without using credit.

#6. Print in Black and White

Color printing may be more beautiful, but it is also more costly. To save a little money, print documents in black and white whenever possible. You can also save money by using an inkjet printer. If you do not have one, put it on your list and watch for sales.

Another way to save money for printing is to print at your local library. Local libraries often offer patrons a set number of pages that can be published. Some libraries even provide a set balance that can be used for printing. Either way, you can save a little money by printing at a library.

Lastly, print double-sided if you can. Double-sided printing uses less paper which is better for the environment and better for your wallet.

#7. Buy Used Items

Another way to save if you need something now, but it is not on sale, is to look for a used one. You can buy used ones on Amazon, eBay, auctions, secondhand stores, and more. 

You can also join a local Swap Group or Buy Nothing Group and see if anyone has what you need. When it comes to these groups, you often need to pick up the item. Ask a friend or family member to help you if you need to.

#8. Use Free Software

Chances are you already have software and programs on your computer. However, if you need one that you don’t already have, look for a free version. If a free version is not available, look for a cheaper version. 

How to Set Up a Home Office on a Budget – Organization Ideas & Tips

Alternatively, you may find that you need to cut costs on something else to purchase a program. Google docs and Google drive are good free word processing programs. They are also compatible with Microsoft and Apple. 

#9. Buy Energy-Efficient Items

Buying energy-efficient items can also help you save money in the long run. Keep in mind that if you already have the thing and it works, buying a newer energy-efficient item will not save you money initially. 

If you already own something, add the energy-efficient version that you want to your list of things to buy and save up. However, if you do not already own the item, then purchase it now if you need it. Wait and save money for the item if the need is not urgent.

Other ways to save money on energy and utilities include the following.

  • Turning off or unplugging things when they are not in use
  • Taking shorter showers and taking fewer showers
  • Wearing layers, so you don’t have to have the heater on all the time

There are many more ways to save money while working from home, including the next item on our list.

#10. Make Use of Natural Light

When working from home, take advantage of any natural lighting you may have. This will help you save money on electricity. At first, it may seem inconsequential, but as time goes by, you will see savings.

Try to work during the daylight hours, if you must work at night, try setting up your lights for maximum efficiency. 

Lastly, you can save money while working from home by cooking more at home. Use the time you save by not commuting to work to cook a hearty breakfast, lunch, and dinner. The less you spend on eating out, the more you will save.

Final Thoughts

Whether you want to save a lot or save a little, these ten tips will get you started. Do not worry about doing them all at once. Pick one or two to start and then keep adding. You will save yourself a bundle in no time.

Image Credit: Studioroman

10 Best Tips To Avoid Mortgage Loan Scams

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Mortgage Scam

Mortgage scams are on the rise. Every year, unsuspecting people lose their homes or money to mortgage scams. Few things are more heartbreaking than losing your life savings or dream home to a con artist who pretends to help you. The good news is that there are ways to educate yourself and dodge sketchy offers.

If you want to know how to identify a scam and protect yourself, check out these 10 tips to avoid mortgage loan scams.

What Are Mortgage Loan Scams?

While loan mortgage scams come in all shapes and sizes, here are some popular loan scam types to avoid:

Loan Modification or Refinance Scams

With this scam, a fraudulent agent contacts you and encourages you to stop making payments and cease contact with your regular lender. They promise to modify your current loan for a better rate if you send them payment upfront.

These scammers also charge you high fees upfront for services that are free or that you could easily access yourself.

Foreclosure Rescue Scams 

Scammers capitalize on people’s genuine fear that they will lose their homes.

Scammers can also quickly scan public records to find homeowners to target. Then someone contacts you to warn you that the bank will foreclose on your home soon. They promise to fix your credit or save you from foreclosure if you act fast and – you guessed it – send them payments to prevent impending homelessness.   

Instead, they will steal your money, your equity, or even your home.

Bankruptcy Foreclosure Scams

These scams threaten foreclosure unless you pay up. They might also tell you to file for bankruptcy to avoid making payments. Not only is this coercive advice, but it is a fast way to lose your home.

Equity Stripping Scams

Home equity means the difference between the mortgage you still owe and how much your house is worth.

Fraudsters use fear to convince you that the bank is about to foreclose. On the other hand, maybe you genuinely face foreclosure. In either scenario, scammers persuade you to sell your house to them. They buy it at a loss and rent it back to you for higher rates, stripping away any equity you might have earned.  

Predatory Mortgage Lending

This type of fraud applies to any lender that coerces or deceives you into accepting a high-interest rate that makes it challenging to earn equity or ever pay off your home.

How Common Are Mortgage Loan Scams?

If you can get a loan, the chances are that you have encountered or avoided a loan scam already.

According to the U. S. Federal Bureau of Investigation, over 13,000 people fell victim to online real estate fraud in 2020 that cost more than $213 million in total. In addition, many people who do not report their losses out of shame or fear lose aggregate millions each year to loan fraud, wire fraud, and other real estate scams.  

Within the past year, the U. S. Federal Trade Commission also reviewed 11,000 reports that involved debt management scams that included mortgage relief and foreclosure scams.

How Do Mortgage Loan Scams work?

Buying a home presents a vulnerable time for many homeowners. There is a lot of money involved and a lot of fine print to read.

Scammers thrust themselves into the buying or refinancing process by hacking sites or stealing payments and closing costs. In addition, fake loan officers, appraisers, mortgage brokers, or even attorneys can attempt to access lender or homeowner cash and equity fraudulently.

The Federal Bureau of Investigation defines this loan fraud type as mortgage fraud for profit. Keeping your financial information secure and interacting directly with your official lender are important ways to protect yourself from mortgage scams.

Here are the ten simple tips to avoid these mortgage loan scams.

1.    Knowledge Is Power

Mortgages represent a common debt that most homeowners experience. Unfortunately, with mortgage scams on the rise in 2021, these rip-offs can look like fake mortgage relief programs, real relief programs that scammers falsely claim to represent, deceptive wire transfer demands, or bogus home foreclosure warnings.

Scammers target vulnerable people. They take advantage of their victim’s trust, ignorance, or desperation. Many scammers are very good at getting close to people and convincing them that their offer is legitimate.

A good rule of thumb to remember is that scammers typically (but not always) initiate contact with their intended victims. For example, mortgage loan scammers can target you through phone calls, social media, promotional flyers, or pop-up ads.

With a bit of effort, you can learn to identify loan scams that involve phishing attempts, fantastic offers, threats, or payment instructions that require you to go off-site. They may also use unusual methods such as wire transfers or gift cards. Most people can save everything if they check out legitimate offers with their lender first.

The best protection against scammers is to educate yourself.

2.    If It’s Too Good To Be True (Or If You Feel Threatened)

Think critically when you receive an offer. If it sounds too good to be true, then it probably is. Examples include getting an amazing deal right away over the phone or within minutes online. A caller might also tell you that your poor credit history or missed payments do not matter since they will “make it work.” 

Suppose the caller threatens foreclosure or exerts any other type of emotional or psychological blackmail, back away. Be firm. If they pressure you to send money in a way that circumvents the lender’s official channels, shut the conversation down. Legitimate lenders typically will not threaten you this way. 

If you are behind on your payments or your mortgage is underwater, it is better to deal with your lender directly. They have an interest in helping you understand your options. A scammer does not care about you. They will milk your information for everything that they can get. Once you are onto them, they will ghost you, refuse to answer calls, and disappear with your money.

It is essential to remember that every scam looks like a scam. However, it might not look like a scam at first.

Some scams spoof legitimate websites or use similar language to a legitimate program. Check with your lender by calling the number on any statements or contacting them via their official website.

Since only your lender can offer you options that can genuinely reduce costs, it is always safest to reach out to them directly.

3.    Don’t Respond to Offers

If you receive an email offer that you’re not sure is legitimate, do not answer it. Do not click on any links in the message. Instead, check the email address carefully. Even if it looks legitimate or appears to come from a respected institution, check for spelling errors or minor variations in the email address.

Do not send any payment info, even if the sender asks you to confirm this information to verify that you are a real person.

In general, if someone, not your regular lender, contacts you about a refinance, modification, or foreclosure offer, it is best to take it with a grain of salt. Click on the link to learn more.

4.    Protect Your Information

Secure all your accounts with strong passwords that you do not give to anyone. Regularly update and protect your computer with a firewall and antivirus system. 

5.    Don’t Pay Advance Fees

By now, you probably know not to give out any information such as account numbers or social security numbers. But what if the mortgage representative tells you to wire transfer your “trial payment” as part of a loan “advance fee”? 

Loan collectors collect “advance fees” taken from a loan applicant before the loan is finalized. If you are trying to get a homeowners’ loan and the agent asks you to pay an advance fee before securing the loan, consider this a red flag. You will likely lose your money and will not receive the promised loan. 

Most mortgage laws discourage lenders from taking advance compensation since this tactic is straight out of a scammer’s playbook.

The bottom line: Do not make any advance payments. 

Scammers cannot fleece you if you do not give them anything.

6.    Don’t Sign Blank Documents

If you have discussed one of these offers to the point that the broker sends you documents, there is a good chance that fraudulent documents will have blank sections. 

Never sign any document that has blank fields. It is like signing a blank check. Someone can put anything in the blank field. Once you have signed, you are on the hook for whatever anyone enters in the empty field.

Legitimate documents should not have blank fields. That is because valid lenders are required to disclose all aspects included in any contract or agreement that you sign.

If you see blank spaces in a document that someone asks you to sign, that is a big red flag that they are not upfront with you about what is involved.

7.    Pay Your Lender Directly

Never send your payments by wire transfer. Instead, call the title company before you send any payment that is different from how you usually pay them.

 Any request for payment that seems out of the ordinary or does not go directly to your lender is suspect.  

It’s unfortunately common that people have sent monthly payments via a mortgage broker middleman, confident that the broker passed their payment on to the lender. Unfortunately, when they discovered that their payments had never arrived, their lender had foreclosed on them due to non-payment. 

By paying your lender directly with a verified method, you will ensure that this never happens to you.

8.    Never Transfer Your Property Title

Your property title is gold. It is the only thing that gives you the deed of ownership to your house. If you hand it over to a scammer, they have all the power and information to steal both your identity and your home.

9.    Read the Fine Print

One of the worst things you can do is skip the fine print. If you are sent an offer, read every section. That way, you will know exactly what you’re signing. Better yet, ask your lender or an attorney to look it over before you sign anything.

If you ask for time to read the document or have an expert review it, you might flush out the scammer. However, the chances are that the scammer will try to pressure you into signing it right away. If you stand firm, they are likely to run for the hills.

10.    Check with Your Lender

If you are struggling to make payments, curious about any refinancing options, or concerned about a foreclosure report, get in touch with your lender immediately.

Do not use any contact information over the phone, sent via email, or contained in social media messages, mail flyers, unofficial sites, or pop-up ads.

The Bottom Line

Mortgage loan scams exist everywhere.

Fraudsters can disguise these scams as quick ways to get home loans, reduce mortgage payments, or offer incredible refinancing options.

By practicing critical thinking, learning to identify potential scams, dealing directly with your lender, and preserving your financial information, you can protect yourself and avoid mortgage loan scams in the future.

Image credit: [KAROLINA GRABOWSKA]

Best Ways to Stay Out of Debt in your 30s

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Here are the ten best ways to stay out of debt in your 30s.

  1. Create a Budget
  2. Set Financial Goals
  3. Never Spend More Than You Earn
  4. Pay Off Your Debt
  5. Save Money in an Emergency Fund
  6. Save Money in a Rainy-Day Fund
  7. Improve Your Credit Score
  8. Invest for Your Retirement
  9. Save for Medical Costs
  10. Save for Big Purchases

Below, we will go into detail about how you can use each of these tips to help you stay out of debt. 

Create a Budget

One of the first things you need to do to stay out of debt is create a budget. Whether you are debt-free or looking to get out of debt, this is essential. Creating a budget is much simpler than most people think, but it does take time.

Follow these simple steps to create your budget:

  1. Schedule a day to devote to creating a budget.
  2. Print out any bank statements from the past few months to a year.
  3. Collect all the receipts that you can.
  4. Record your income. Are you paid every week? Every two weeks? Every month? Does it stay the same, or does it vary?
  5. Add up all your expenses. Again, it is best to do this in categories.
    • How much is spent on living expenses? These include rent or mortgage, utilities, food, etc.
    • What about the money spent on wants? These include things you purchase because you want them, not because you need them—for example, a new iPod or some books.
    • What are you spending on entertainment? This includes eating out, going to movies, shows, concerts, etc.
    • Add any miscellaneous expenses not covered above.
  6. Once you have all your expenses, compare them to your income. Are you spending more or less than you are making?
    • If you are spending more than you are making, you need to cut back on wants, entertainment, and miscellaneous expenses.
    • If you are spending less than you make, look at how much less you are spending. Can you cut back and save even more?

Set Financial Goals

Now that you’ve made a budget and found some money, it would help if you decided where to put that money. This means you need to make some goals.

https://www.nbcnews.com/better/business/6-smart-money-moves-make-your-30s-will-pay-down-ncna849616

Here’s the key to a good goal make it SMART.

SMART is an acronym meaning Specific, Measurable, Attainable, Realistic, and Timely. 

Specify your goals

Ask yourself the following questions:

  • How much will I need when I retire?
  • How much will I need in an Emergency Fund?
  • How much will I need in my Splurge Fund?

We will cover Emergency Funds and Retirement Funds below. A Splurge Fund is a checking account or savings account devoted to money you can use for wants and entertainment. This fund is important as cutting off these sorts of expenses ultimately can be challenging for some people. The Splurge Fund allows for the occasional purchase of a want.

Create measurable goals

A measurable goal allows you to adjust as needed to reach your goal. To check if your goal is measurable, ask yourself this question: can I create smaller goals within my larger plan?

An Example: Your Goal is to save $6,000 in your emergency fund in one year. 

Your smaller goals might be to save $500 a month or $1000 every month. You can even have the halfway mark of $3,000 in six months. However you break it down, make sure to set a date to check in with your goal throughout the year.

You need an attainable goal

An attainable goal is one you can take action to reach.

Looking at the budget you made, how much extra do you have each month? Do you need to get out of debt first? Do you need to split the money among a couple of different things? Make decisions and set them in motion.

It is recommended by most financial advisors that you try to save money and pay off debt simultaneously. However, if you must choose, pay off the debt first. Then, start saving.

Make realistic goals

A goal is realistic when it is one you can reach. You do not need the goal to be so easy that you reach it immediately. On the other hand, you also do not want it to be so hard that you struggle to reach the smaller milestones. 

For instance, you found an extra $400 to use when you did your budget. You think you could save $100 more by cutting expenses. However, that would mean giving up a social life and dinner out with friends. 

Instead of trying to cut back more and remove things that bring you joy, focus on the $400 you do have. Use that to pay off debt and begin saving.

If you are debt-free, divide the $400 into each type of savings account that you want. For example, put $100 to the Rainy-Day Fund, $100 to Retirement, $100 to the Emergency Fund, and $100 into a Health Savings Account.

All your goals should have deadlines

Goals are no good unless they have a deadline. For instance, a Retirement Goal has a deadline of 30-40 years if you are in your 30s now. A closer deadline might be to fully fund your Emergency Fund within a year (or two, remember to be realistic).

Never Spend More Than You Earn

This one is one of those commonsense things that many people overlook. If you want to stay out of debt, do not spend more than you earn.

Spending more than you make will always lead to debt. This is why an Emergency Fund is so critical. These savings accounts allow for unexpected or surprise events that cost more than you have on hand.

Pay Off Your Debt

Another commonsense idea that needs to be said is to be debt-free, you need to pay off any debt you have. If your debt was included in your budget and you still have some leftover for saving, then make those financial goals and start saving. However, if you must pick between saving and getting out of debt, get out of debt first. 

Getting out of debt first is so important because most debt has a higher interest rate than most savings accounts. Even retirement accounts can rarely make more. So, pay off that debt because the interest rate is a killer.

Save Money in an Emergency Fund

To avoid debt, make sure you have an emergency fund if costly things happen. For example, if you lose your job or go on leave for an extended time for medical reasons, you need an Emergency Fund. 

An Emergency Fund should be a minimum of six months of expenses. A year’s worth of expenses is best. If you are starting your fund, shoot for six months. When you reach six months saved, then move on to saving for a year’s worth.

Save Money in a Rainy-Day Fund

A Rainy-Day Fund is for significant expenses that happen occasionally and maybe a surprise. These include needing a new car, a new computer, and other such costs. A Rainy-Day Fund is a good start if an Emergency Fund seems too big a reach. Although Rainy-Day Funds can have any amount, a couple thousand is a good starter goal.

Improve Your Credit Score

The good news is that if your budget, make financial goals, pay off all your debt, and make rent payments on time, your credit score will improve. An improved credit score will make you eligible for better rates on credit cards. These better rates make it easier to stay out of debt. Just make sure not to spend more than you can pay off each month.

Invest for Your Retirement

Investing in your retirement now will help you avoid debt later in life. Once you have paid off your debt and funded your emergency funds, put all extra money towards retirement accounts and save for medical costs later in life. If you can, you can also fund your retirement concurrently with your Rainy-Day Fund and your Emergency Fund.

https://www.businessinsider.com/personal-finance/financial-changes-now-help-me-retire-early-2021-11

Save for Medical Costs

As people get older, their medical bills go up. Keep this in mind and begin saving for medical expenses that may hit you in your last years of work or after you retire. You can use a regular savings account or go with a Health Savings Account (HSA).

Save for Big Purchases

To stay out of debt, save for any planned significant expenses. If you know you want or will soon need a new car, plan for it. If you want a house, plan for it. The more you can save towards these goals and big purchases, the less you will have to finance them. The less you finance them, the sooner you can pay off that debt.

Image Credit: Steve Stark