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● Laura Thornberry ● Lifestyle Blogger ● London Based ●

AD| Everyone looks forward to that moment when they can quit their 9 to 5 jobs and focus on other adventures or endeavours. However, this is a dreadful moment for some individuals as well, as they have nothing to fall back on when the pay checks stop rolling in. If you have multiple income streams to cater to your post-retirement needs, then you are on the right path to living your dreams after retirement, or else, you may have come up with ways to generate income. Traditional loans may look ideal, but they put you on the spot in the long run. However, there is one that gives you financial security with less risk – a reverse mortgage.

mortgages and finances books

Introducing Reverse Mortgages

A traditional loan provides you with the money you need to meet specific needs. However, please don’t get caught up as it comes with its downsides. First off, there is an agreement between you and your lender in which you must meet a defined monthly payment plan. Failure to do that may cost you your credit score or, worse, your home; this is the last thing you want as a retiree.

On the other hand, a reverse mortgage puts money in your pocket. So, instead of paying your lender, it is the other way around. Your lender pays you while you keep the title to your home. And guess what? You get to choose what means through which you can receive your reverse mortgage funds. But how can you access this loan? Let’s find out.

Processing a Reverse Mortgage

The first condition that comes into play when procuring a reverse mortgage is the borrower’s age. You must be at least 62 years. For this reason, it is called a retirement loan. Another factor to consider is your home; this should be your primary, permanent residence. Kindly note that vacation homes or rental apartments do not count. Once these two conditions are in place, your lender will consider your creditworthiness using a reverse mortgage calculator. This estimation tool determines your capability to take care of the home.

But that’s not all. Your lender will factor in your home equity, still using the reverse mortgage calculator capabilities. In this case, your home’s age, location, condition, market value, and interest rate come into play. According to federal law, you can take out up to 60% of your home equity, as there are other costs to cover, including current mortgage (if any) and closing fees.

brick houses

Receiving Your Reverse Mortgage Funds

You can set up your reverse mortgage cash in any of the three options. One way to do so is by receiving it in monthly payments; this works well for those with monthly budgets that need settling. You can consider it as your post-retirement income. This monthly income will run until there’s nothing left in your balance. Another option is to set your funds as a credit line; this works like a credit facility where you can borrow money at any time. However, bear in mind that there is a limit to the amount you can take. 

Finally, if you have several bills to take care of at once, it will be ideal to receive your payment as a lump sum. Some may decide to set up their payment plan using all these options

09:00 No comments
One of my goals I've set myself for 2019 is to become more of a money saver. I want to try and hold back on my spending and see in what ways I am able to save more money each month. Previously, I have just set aside a certain amount of money each month that goes straight into my savings account and watched that account grow and grow. But recently I've thought to myself that I can attempt to save even more and I've thought of a few ways to do this that will help increase my money saving this year. 

easy money saving hacks

1. 52-Week Money Challenge
As well as saving regular amounts of money each month from my paycheck, something new I've found this year has been the 52 week money challenge. By far one of the simplest savings technique that I have looked into. You simply follow the plan each week, watch your savings grow and before you know it, you'll have a good amount of money stored away. The challenge is pretty straight forward. The first week you add £1 into your savings, the next week £2, the week after that £3 and so on…. By the 52nd week you will have put away a whopping £1,378. I know it doesn't seem like much but you're few pounds every week really do add up.

2. Withdrawing Money
With the invention of contactless payments through your bank card or mobile phone, it's become so much easier to spend money without even thinking about it. When you're using this payment method numerous times a day, £10 here, £5 there, it can really add up and make a huge dent in your funds without you even realising. Something that can help you stop the splurging is to withdraw a certain amount of money, whether that be daily or weekly limit. This way you know exactly how much money you have and how much you have left to spend. I'm using this method to help me budget better, make better choices and to value the amount of money I have so much more.

3. Cheaper Alternatives
This way of money saving can be used for a variety of things. There are always cheaper alternatives available if you look for them. I'll be using this saving hack in terms of groceries and cosmetics. The idea of buying supermarket/drugstore own branded products can produce significant savings, and 9 times out of 10, the product is pretty similar to the more expensive, well known brands. So if you can knock a few pence off your shopping bill each week/month, it will all add up.

4. Make Coffee At Home
I'm sure we've all been there. Woke up late, got ready in a hurry and rushed out to your local coffee shop before work to get your caffeine fix. I know I'm guilty of this. My local Starbucks is right by the bus stop I use to get to work, and the smell of coffee in the morning is sometimes far too tempting when you're still half asleep. But £3-£4 for just a coffee seems a little steep, especially when you can buy a large jar of coffee for the same price.

5. Save Loose Change 
This is a money saving hack that I have recently been doing and it's definitely a way to save a small amount of money. I've rummaged around my old handbags/purses and to my joy I've found myself quite a handful of coins that I now keep in my current backpack. Whenever I'm out and about, having this loose change is great as if you end up going shopping, you can do part payments where you use cash and card. Therefore even if you can take off a few pence or pounds from the balance of your shopping, you still will save yourself some money in the long run.

6. Write a list before you go shopping – and stick to it.
One of the easiest ways to save money is to only shop when you have a list. You will typically end up making impulse buys and unplanned purchases if you don't have a strict list to shop for. Impulse purchases are all things that cost money, so using a list will also help you avoid buying food you might waste and end up throwing away.

How are you saving money this year?
09:00 No comments
I'm sure we are all aware at how hard it really is to save money. As one of my New Years resolutions, I want to keep up with my money saving and try to curb my spending by only purchasing things that I really need and not want. Any by no means this will be easy, its all about taking things into moderation and having the willpower to say no when wanting to spend. I have come up with a simple list of ways that I intend to help me save money and wanted to share these with you, if you're looking for some new ways and inspiration to save as well.
1. Save any loose change in a jar/piggy bank
This might sound like such a small thing to do in order to save money, but in honesty, who likes carrying around all that small change in their purses. Saving all the small change will gradually begin to build up over time, whether it amounts to £5 or £50 over the year, it is at least something you have managed to save.

2. Sell unwanted items
With apps like Ebay and Depop making it easier for people to sell there unwanted products, this is a great way to de-clutter as well as save money. I personally use Ebay and find it really simple to sell items that I no longer use or want, with the hope of getting some money back to save.

3. Create a savings account
I created a savings account last year and it is something that I feel I will really benefit from in the future. Every payday I put aside a small amount of my wages to help build up my savings, and if I have any money left over at the end of the month, I would generally add this to my savings too.

4. Use loyalty cards/ vouchers/ discount codes
Having loyalty cards is a great way to reward yourself when spending on products you may need. You'll be able to spend your money but also save up points from your purchases, that will end up in getting money off or special discounts in the future. Even when shopping online, its always great to search for discounts and voucher codes for the specific shop, even if you save just the delivery costs, that's still a couple pounds in your pocket, and if you're a big online shopper like myself, this will soon add up over your numerous orders.

5. Write your shopping lists
Whether its on paper or saved as a note on your phone, making strict shopping lists will make it easier for you to remember the products that you genuinely need and will be an attempt to stop you going overboard and purchasing things that you really don't need. Whether its for a trip to the supermarket, Boots, Superdrug, or any other store, make sure you carry a shopping list to make sure you only pick up the relevant items.

6. Use cash to pay
This is definitely something I need to start doing more. I'm always using my card to pay for products I buy as it is just a more convenient way to live. But it is also very dangerous for my bank balance. Paying with cash will allow you to feel more restricted and allow you to budget your money more carefully, so you don't overspend.

7. Try lower priced brands
For many of us, we all have our favourite brands. Whether its for food items, beauty products or clothing for example. We always stick to the things we know and love, without trying products that do the same job/look the same, but have a lower price tag. It's always good to experiment and see what it out there to purchase, so trying lower cost products instead of repurchasing your favourite more expensive, higher end products is worth a try.

8. Meal planning
Meal planning is just such a simple idea to help you save money. If you plan out what you'll eat and what ingredients you'll need from day to day, you'll be less likely to buy products you wont eat and less likely to snack on food in between meals.

9. Use up products before repurchase
As a blogger who continually writes about beauty products, I am guilty for this. I always want to try new products or purchase items from other bloggers recommendations. I have a beauty stash that could be used for my entire family for a good few months, so in 2016, I'm hoping to work my way through it all before purchasing any more unnecessary products.

10. Have more nights in
We all know that going out, whether its to restaurants, bars or clubs can be pretty hard on the old bank accounts, so why not have more relaxing nights in. Cook yourself a nice meal, watch a few films and cosy up on the sofa and chill. Or even have all your friends over for a cosy night in and just enjoy spending some quality time together.

How will you attempt to save money this year? What other simple tips could you recommend?

12:00 No comments
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