how to protect your finances when your spouse files for bankruptcy

How to Protect Your Finances when Your Spouse Files for Bankruptcy.

When your spouse files for bankruptcy, the bankruptcy should not affect your credit score. However, you may still be affected in other ways. For example, you will still have to pay off joint debts. Also, the bankruptcy trustee can seize any property your spouse owns, even if you are a joint owner. Accordingly, you and your spouse should carefully consider which bankruptcy is best for the family or whether you should pursue a non-bankruptcy option.



Part 1 Identifying Joint and Separate Property.

1. Identify all property you and your spouse own. When your spouse files for bankruptcy, they will have to list all of their property on a schedule and report it. The trustee uses this information to determine the size of the bankruptcy estate. This information is important because the trustee may be able to force your spouse to sell property in order to pay their creditors. The less property your spouse owns, the better off they will be.

Go through your possessions and estimate how much the property is worth. Also figure out who owns it.

As a spouse, you want to be on the lookout for property you jointly own with your spouse. Unless this property is exempt, it goes into your spouse's estate, which means you might lose it depending on the bankruptcy your spouse files.

2. Check if you live in a community property state. The ownership of certain property may depend on the state where you are living. Some states are “community property” states, and this means that any property you or your spouse acquired during the marriage is owned equally by both of you.

For example, you might have bought a car. In a community property state, the car is generally considered the property of both you and your spouse—regardless of whether your spouse is on the title.

The following are community property states: Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin. Community property laws also apply in some situations in Alaska.

Because community property laws differ, you should work closely with a lawyer in your state to identify all property that will be counted as part of the bankruptcy estate.

3. Determine ownership in a common law state. If you don't live in a community property state, then you live in a common law state. In common law states, the owner is generally the person whose name is on the title. If your name alone appears on the title, then the asset probably will not be included in the bankruptcy estate.

If both names are on the title, then you and your spouse both own half of the asset and the asset will have to be listed as part of the bankruptcy estate.

The trustee might be able to force a sale of the asset if they can convince the judge that the benefit of selling the asset outweighs any detriment you will face. However, the trustee will still have to pay you the full-value of your half of the asset. The trustee can only use the portion your bankrupt spouse owned to pay their creditors.

4. Check if you own your home in “tenancy by the entirety.” This is a form of ownership in which the asset is owned by the marriage. Many couples own their home in tenancy by the entirety. Depending on your state, assets owned in this manner are exempted from the bankruptcy estate.

5. Identify bankruptcy exemptions. You can exempt property from being counted as part of your spouse's estate. Each state has bankruptcy exemptions which you can use. The federal government also has a list of exemptions. In some states, you can choose between the state or federal exemptions, whereas other states will require that you use the state exemptions.

In Missouri, for example, you can exempt up to $15,000 in a home that you live in or up to $5,000 in a mobile home. You can also exempt up to $3,000 in a motor vehicle.

Say you and your spouse jointly own a car in Missouri. If the car is worth $16,000, then your spouse has $8,000 in the car. Only $3,000 is exempt. Accordingly, the trustee might want to sell the car and use the $5,000 to pay off creditors. If the trustee sells the car, they must pay the spouse who didn't file for bankruptcy $8,000.

In some states, you can double an exemption if you file a joint bankruptcy petition so long as you both own the property. For example, if the state allows you to exempt $3,000 in a car, then you can exempt $6,000 if you and your spouse own it together.

6. Avoid transferring property. You might think you can protect your assets by having your spouse transfer them before filing for bankruptcy. If you live in a common law state, you might think you can make the transfer into your name so that you hold title to all of the family property and your spouse holds only the debts individually. Unfortunately, this tactic won't work.

Instead, your spouse must report all transfers. If your spouse transferred the property during the two years before they filed for bankruptcy, then the trustee can get the property back.

Your spouse will also get in trouble if they try to hide the transfer. Everyone files a bankruptcy petition under penalty of perjury. If caught lying, your spouse could be prosecuted and have the entire bankruptcy cancelled.



Part 2 Handling Joint Debts.

1. Identify your joint debts. You and your spouse might have joint debts. This means that you both have agreed to be 100% responsible for the full debt. Accordingly, if your spouse files for bankruptcy, you are not relieved of your responsibility for the debt. Although your spouse will have their obligation discharged, your obligation will not be. You will still remain responsible for the entire amount. Joint debts can be formed in the following ways.

You and your spouse took out the debt together.

You cosigned on a loan for your spouse.

You live in a community property state and you or your spouse took out a debt during the marriage.

2. Continue to make payments on your joint debts. If you have a joint debt—say, for your car—then you must continue to make payments on it, even if you are the spouse who didn't file for bankruptcy. If you stop, then your credit score will take a hit because your missed payments will be reported to the credit reporting agencies.

3. Consider filing a joint bankruptcy petition. You have the option of filing for bankruptcy along with your spouse. By doing so, you can discharge joint debts.[12] After a discharge, neither you nor your spouse is responsible for the joint debt.

Of course, a bankruptcy stays on your credit report for several years, and neither you nor your spouse will probably be able to secure new credit in the near future.

Nevertheless, a joint bankruptcy can be an excellent option if you have high joint debts which you have no way of paying off in the future. A joint bankruptcy can free you and your spouse of these crushing joint debts.



Part 3 Choosing the Right Bankruptcy.

1. Identify the different types of bankruptcy. U.S. law provides many different types of bankruptcies, but the two most common for individuals are Chapter 7 and Chapter 13. You should analyze which is best for you, depending on your circumstances.

Chapter 7. This is called a “liquidation” bankruptcy. In a Chapter 7, your spouse can wipe out all of their debts. However, in order to get that benefit, they generally must sell non-exempt property and use the proceeds to pay their creditors.

Chapter 13. In a Chapter 13, the debtor gets to keep their property. Instead of selling it, they will pay back creditors for three to five years. At the end of the repayment period, any remaining unsecured debts (like credit cards) will be forgiven. Chapter 13 is a good option if you have a lot of non-exempt property that is jointly owned.

Joint bankruptcy petition. A joint bankruptcy petition may be the best option if you and your spouse have large joint debts. You can file both Chapter 7 and 13 jointly.

2. Meet with an attorney. Only a qualified bankruptcy attorney can analyze your situation and identify the best course of action. You should get a referral to a bankruptcy attorney by contacting your local or state bar association. Once you have a referral, call up the attorney and schedule a consultation. Ask how much the fee will be.

Your attorney can help you think through which bankruptcy to file—or whether a different alternative would be best.

3. Consider alternatives to bankruptcy. Your spouse should consider other options. These options might be better because they will impact your spouse's credit score less severely. Also, you don't jeopardize losing property. Common alternatives include.

Get a debt consolidation loan. Sometimes you can get a low-interest loan which you use to pay off all debts. You then have one payment to make.

Transfer debts to low interest credit cards. Many credit cards give 12-month grace periods for balance transfers. Interest doesn't accrue until the grace period ends.

Create a repayment plan with your creditors. They might be willing to work with you, especially if you mention that you are thinking of filing for bankruptcy. In bankruptcy, unsecured creditors rarely get paid back 100% of what they are owed. For this reason, they may be willing to reduce the interest rate or extend payments over a long period of time so that you don't file for bankruptcy.

Use a credit counselor. Credit counseling services can help you negotiate with creditors and then consolidate debt. These counselors also help you come up with repayment plans you can afford.



Question : If my wife files bankruptcy, what happens to our jointly-owned house? How does this affect my loan on the house?

Answer : In a bankruptcy, all your debts are listed against all your assets. If your wife does not have sufficient assets to pay for her debts, then her half of the house can be seized. It can either be transferred as an asset to a creditor, or (forcibly) liquidated. But if the bank sells your house, you have to get your share. I.e. only her share can be seized. For a detailed calculation, contact an accountant.

February 17, 2020

How to Protect Your Finances when Your Spouse Files for Bankruptcy.

How to Protect Your Finances when Your Spouse Files for Bankruptcy.

When your spouse files for bankruptcy, the bankruptcy should not affect your credit score. However, you may still be affected in other ways. For example, you will still have to pay off joint debts. Also, the bankruptcy trustee can seize any property your spouse owns, even if you are a joint owner. Accordingly, you and your spouse should carefully consider which bankruptcy is best for the family or whether you should pursue a non-bankruptcy option.



Part 1 Identifying Joint and Separate Property.

1. Identify all property you and your spouse own. When your spouse files for bankruptcy, they will have to list all of their property on a schedule and report it. The trustee uses this information to determine the size of the bankruptcy estate. This information is important because the trustee may be able to force your spouse to sell property in order to pay their creditors. The less property your spouse owns, the better off they will be.

Go through your possessions and estimate how much the property is worth. Also figure out who owns it.

As a spouse, you want to be on the lookout for property you jointly own with your spouse. Unless this property is exempt, it goes into your spouse's estate, which means you might lose it depending on the bankruptcy your spouse files.

2. Check if you live in a community property state. The ownership of certain property may depend on the state where you are living. Some states are “community property” states, and this means that any property you or your spouse acquired during the marriage is owned equally by both of you.

For example, you might have bought a car. In a community property state, the car is generally considered the property of both you and your spouse—regardless of whether your spouse is on the title.

The following are community property states: Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin. Community property laws also apply in some situations in Alaska.

Because community property laws differ, you should work closely with a lawyer in your state to identify all property that will be counted as part of the bankruptcy estate.

3. Determine ownership in a common law state. If you don't live in a community property state, then you live in a common law state. In common law states, the owner is generally the person whose name is on the title. If your name alone appears on the title, then the asset probably will not be included in the bankruptcy estate.

If both names are on the title, then you and your spouse both own half of the asset and the asset will have to be listed as part of the bankruptcy estate.

The trustee might be able to force a sale of the asset if they can convince the judge that the benefit of selling the asset outweighs any detriment you will face. However, the trustee will still have to pay you the full-value of your half of the asset. The trustee can only use the portion your bankrupt spouse owned to pay their creditors.

4. Check if you own your home in “tenancy by the entirety.” This is a form of ownership in which the asset is owned by the marriage. Many couples own their home in tenancy by the entirety. Depending on your state, assets owned in this manner are exempted from the bankruptcy estate.

5. Identify bankruptcy exemptions. You can exempt property from being counted as part of your spouse's estate. Each state has bankruptcy exemptions which you can use. The federal government also has a list of exemptions. In some states, you can choose between the state or federal exemptions, whereas other states will require that you use the state exemptions.

In Missouri, for example, you can exempt up to $15,000 in a home that you live in or up to $5,000 in a mobile home. You can also exempt up to $3,000 in a motor vehicle.

Say you and your spouse jointly own a car in Missouri. If the car is worth $16,000, then your spouse has $8,000 in the car. Only $3,000 is exempt. Accordingly, the trustee might want to sell the car and use the $5,000 to pay off creditors. If the trustee sells the car, they must pay the spouse who didn't file for bankruptcy $8,000.

In some states, you can double an exemption if you file a joint bankruptcy petition so long as you both own the property. For example, if the state allows you to exempt $3,000 in a car, then you can exempt $6,000 if you and your spouse own it together.

6. Avoid transferring property. You might think you can protect your assets by having your spouse transfer them before filing for bankruptcy. If you live in a common law state, you might think you can make the transfer into your name so that you hold title to all of the family property and your spouse holds only the debts individually. Unfortunately, this tactic won't work.

Instead, your spouse must report all transfers. If your spouse transferred the property during the two years before they filed for bankruptcy, then the trustee can get the property back.

Your spouse will also get in trouble if they try to hide the transfer. Everyone files a bankruptcy petition under penalty of perjury. If caught lying, your spouse could be prosecuted and have the entire bankruptcy cancelled.



Part 2 Handling Joint Debts.

1. Identify your joint debts. You and your spouse might have joint debts. This means that you both have agreed to be 100% responsible for the full debt. Accordingly, if your spouse files for bankruptcy, you are not relieved of your responsibility for the debt. Although your spouse will have their obligation discharged, your obligation will not be. You will still remain responsible for the entire amount. Joint debts can be formed in the following ways.

You and your spouse took out the debt together.

You cosigned on a loan for your spouse.

You live in a community property state and you or your spouse took out a debt during the marriage.

2. Continue to make payments on your joint debts. If you have a joint debt—say, for your car—then you must continue to make payments on it, even if you are the spouse who didn't file for bankruptcy. If you stop, then your credit score will take a hit because your missed payments will be reported to the credit reporting agencies.

3. Consider filing a joint bankruptcy petition. You have the option of filing for bankruptcy along with your spouse. By doing so, you can discharge joint debts.[12] After a discharge, neither you nor your spouse is responsible for the joint debt.

Of course, a bankruptcy stays on your credit report for several years, and neither you nor your spouse will probably be able to secure new credit in the near future.

Nevertheless, a joint bankruptcy can be an excellent option if you have high joint debts which you have no way of paying off in the future. A joint bankruptcy can free you and your spouse of these crushing joint debts.



Part 3 Choosing the Right Bankruptcy.

1. Identify the different types of bankruptcy. U.S. law provides many different types of bankruptcies, but the two most common for individuals are Chapter 7 and Chapter 13. You should analyze which is best for you, depending on your circumstances.

Chapter 7. This is called a “liquidation” bankruptcy. In a Chapter 7, your spouse can wipe out all of their debts. However, in order to get that benefit, they generally must sell non-exempt property and use the proceeds to pay their creditors.

Chapter 13. In a Chapter 13, the debtor gets to keep their property. Instead of selling it, they will pay back creditors for three to five years. At the end of the repayment period, any remaining unsecured debts (like credit cards) will be forgiven. Chapter 13 is a good option if you have a lot of non-exempt property that is jointly owned.

Joint bankruptcy petition. A joint bankruptcy petition may be the best option if you and your spouse have large joint debts. You can file both Chapter 7 and 13 jointly.

2. Meet with an attorney. Only a qualified bankruptcy attorney can analyze your situation and identify the best course of action. You should get a referral to a bankruptcy attorney by contacting your local or state bar association. Once you have a referral, call up the attorney and schedule a consultation. Ask how much the fee will be.

Your attorney can help you think through which bankruptcy to file—or whether a different alternative would be best.

3. Consider alternatives to bankruptcy. Your spouse should consider other options. These options might be better because they will impact your spouse's credit score less severely. Also, you don't jeopardize losing property. Common alternatives include.

Get a debt consolidation loan. Sometimes you can get a low-interest loan which you use to pay off all debts. You then have one payment to make.

Transfer debts to low interest credit cards. Many credit cards give 12-month grace periods for balance transfers. Interest doesn't accrue until the grace period ends.

Create a repayment plan with your creditors. They might be willing to work with you, especially if you mention that you are thinking of filing for bankruptcy. In bankruptcy, unsecured creditors rarely get paid back 100% of what they are owed. For this reason, they may be willing to reduce the interest rate or extend payments over a long period of time so that you don't file for bankruptcy.

Use a credit counselor. Credit counseling services can help you negotiate with creditors and then consolidate debt. These counselors also help you come up with repayment plans you can afford.



Question : If my wife files bankruptcy, what happens to our jointly-owned house? How does this affect my loan on the house?

Answer : In a bankruptcy, all your debts are listed against all your assets. If your wife does not have sufficient assets to pay for her debts, then her half of the house can be seized. It can either be transferred as an asset to a creditor, or (forcibly) liquidated. But if the bank sells your house, you have to get your share. I.e. only her share can be seized. For a detailed calculation, contact an accountant.

February 25, 2020

How to Get Money Quickly Without Borrowing It

How to Get Money Quickly Without Borrowing It.

It can be difficult to come up with cash at short notice for an emergency. Fewer and fewer people have secure jobs and savings accounts to rely on during tough times or unexpected circumstances. Fortunately, there are still ways to scrape together necessary funds quickly.

Method 1 Doing Odd Jobs In Your Neighborhood.
1. Advertise your services. Build your own website or post on online pages such as Craigslist.
Specify in your advertisement what types of jobs you can do (home repairs, plumbing, electrical work, yard work, cleaning etc.), what you charge, and when you are available.
Provide multiple ways to contact you. If you can be reached by both phone and email, you might have a better chance at getting work.
2. Build your potential customer base. Speak to nearby friends and neighbors first.
Tell them that you need money and are willing to do light housework and yard work in the area.
Ask them to tell their friends and neighbors too, and recommend your services.
Your neighbors and friends may very well end up being your first customers. Be sure to tell them to spread the word that you do good work when you're finished.
3. Charge reasonable rates for your work. The main reason someone might consider hiring you over a professional service is that you're a lot less expensive.
Ask for a small amount of money that you can live with, rather than a large sum.
A good way to estimate what to ask for is to set a low hourly rate, say $8 or $10. Also, prorate your work to the nearest half hour. In other words, if you work for 6 hours and 33 minutes, just bill for 6 hours and 30 minutes. That keeps things simple.
4. Act professionally. Dress in clean clothes and smile when people answer their doors. Offer a handshake when you introduce yourself. Make eye contact.
Be sure to describe exactly what types of services you offer, whether its small home maintenance, yard work, cleaning etc.
Be willing to do jobs on weekends and evenings.
Return calls and job offers quickly and promptly.
5. Bring your own equipment. If you have specialized equipment you can bring, such as a toolbox for house repairs or a rake for leaves and grass, bring it with you.
Heavier items like ladders and lawnmowers can be left at home, but be sure to mention you have access to your own.
Don't accept jobs that you don't have the equipment to complete.

Method 2 Finding Short-Term Jobs.
1. Think about what your skills are. You might be able to find a short term job more easily if you have certain skills.
Bookkeeping and accounting jobs are often short term or temporary. If you have skills as a bookkeeper, you can often find a well paying position on a short-term basis.
Offices and human resource departments often look for part-time workers when they have an increase in paperwork or filing.
If you have tech skills, some firms or websites may hire on a short-term basis.
2. Check the local listings for short-term jobs. The online marketplace Craigslist features an “ETC” category under the Jobs heading local newspapers also often carry advertisements for quick, temporary work. Check everywhere you can and think about what you're able to do.
Take a job as a sign waver. All kinds of businesses hire sign wavers to stand outside for 8 or 10 hours and wave a large sign at passing cars. Used car lots, payday loan stores, and furniture stores in particular use this marketing technique and often pay in cash at the end of the day.
Help out with event work. Browse listings for people and small businesses who need help setting up, running, and tearing down booths for local events like farmer's markets and street fairs. These jobs often start early in the day and often pay the same day. Be prepared to do anything from construction to running a booth.
3. Participate in studies or surveys. This isn't a reliable way to make a lot of money, but if you're just a few dollars short, it can make up the difference. A Google search will help you find some online surveys.
Be sure you qualify for the study before you apply. For example, you won't want to apply for a study that is looking at the effects of smoking if you aren't a smoker.
Apply in person to expedite the process. In the case of some surveys, you'll be able to show up and do a paid survey right then and there. Studies usually last longer, but may provide compensation before the end of the study period.
4. Join a temp agency. Temporary work agencies place thousands of employees with daily work. If you have specialized work skills or previous experience in a field, you might have very good luck temping. There are a number of tips to help you get started with an agency.
Visit the agency. Tell them you want to work, and follow their instructions. There will usually be an application to fill out, followed by an interview where you go over your work history and qualifications.
Bring a resume with you. It will help the temp agency sort out what types of jobs you are qualified for.
Dress for an office environment. Business dress shows you are looking to be successful and will fit in a professional setting.
Meet your agent. He or she will work to find jobs for you every day. Try to be pleasant and get along with your agent; it could help your chances some.
Take any job you're offered. Temp agencies can't work miracles; they don't find work for every temp employee every day. If your agent finds work that you can do and offers it to you, take it immediately.
Sometimes, a temp in a longer-term contract can get hired on as a regular employee, so always treat it like a “real” job.

Method 3 Selling and Reselling.
1. Think about selling your car. This isn't a practical step for many people, but if you're lucky enough to live somewhere you don't need a car to get to work or the grocery store, you're sitting on a huge mound of cash in the driveway. There are some helpful steps to complete this process.
Gather your car's information. Find the title and registration, maintenance receipts and records, and a car history report. Also know the features of your car (CD Player, seat controls etc.)
Having regular receipts and records for oil changes and routine maintenance can show that your car was well cared for and can help you get a good offer.
Set a price for your car. To find the right price, you can look up the value of your car with Kelly Blue Book or look in the classifieds section of your newspaper to see what price cars like yours are selling for.
Advertise the car online and in newspapers. In your ad specify the model and year of the car, its features, its true condition (if it is in need of repairs be honest), your asking price, and acceptable forms of payment. Include lots of photos and multiple ways to contact you.
2. Have a yard sale. Advertise it for free on Craigslist, or for a small fee in the local newspaper. Clean and organize everything you intend to sell, and lay it out in front of your house or apartment on the morning of the day of the sale.
This approach works best for people who haven't previously sold things for cash out of necessity, and still have a lot of items to sell. People are more interested in bigger yard sales.
Price everything slightly high, but be willing to haggle down. Most yard sale items will reasonably sell for 1/3 to 1/2 of the original price, if the item is in good condition.
Keep your prices in $.25 intervals to keep change handling simple.
To make up the difference, try to feature some bigger items, like furniture and exercise equipment, that you can get a bigger chunk of change for. Place these items at the end of the driveway or yard to lure in buyers.
Many neighborhoods have a coordinated yard-sale day. It is a good idea to hold your yard sale during this event because it will draw in a large crown of potential buyers.
3. Sell your belongings online. There are two basic ways to do this if you need to turn a quick profit: Craigslist and eBay.
On Craigslist, post your item for sale in the appropriate section of the site. Be sure to post pictures if you can; people often don't bother with listings that don't have photos attached.
Use the word “firm” if you refuse to haggle on the price; use “OBO” to indicate you might be willing to go down on it a bit.
On eBay, you can set various time and purchase options, which may have fees attached to them.
If you choose to sell it at a fixed price with the Buy It Now option, you will have to pay a flat fee of a couple dollars in addition to a percentage of the sale price. Buy It Now allows you to control your selling price.
If you choose to sell your item at auction, choose a period of time the auction will be active. Sunday evening is said to be the most lucrative night of the week for auctions by frequent eBay sellers.
4. Sell to a pawn shop. Pawn brokers are people who will pay cash for just about anything you own that isn't disposable or perishable. Pawn brokers tend to pay very low amounts and won't haggle.
Bring your items with you to the pawn shop. Most pawn shops keep short hours for security reasons, so go before 4PM to be sure you get in.
Decide whether or not to accept the offer. Expect to get $60 for a $500 bicycle, and on down the line proportionally. In most cases, you should only visit a pawn shop if you absolutely need money right now and have no other options available as you won't get a good value on your items.
5. Resell to collectors. There are collector's markets for just about everything with any cultural significance, from commemorative plates to video games and old toys. If you arm yourself with knowledge, you can make a killing buying items for cheap and selling them to collectors at a profit.
Specialize in one type of collectible. You might specialize in retro toys or specialized glassware. Start by seeing what collectibles you already own and build from there.
Know your subject. Do the research to find out what an item in good condition looks like and is worth. Know which items are commonplace or super rare. Rare items will get a better price.
Visit cheap places. Yard sales and thrift shops are your best friends as a collectables reseller.
Use computer resources. Websites that specialize in collectibles can help you to gauge what collectibles are selling for in your area.
Sell online. You'll often get a better price online than you will selling to a local collector, and this can widen your customer base.
Get to know dealers and insiders. These people can be great connections for you to advertise your collectibles and get to know vendors who can help you sell your items.

Method 4 Using Unorthodox Approaches.
1. Perform on the street. If you're lucky enough to own an instrument and talented enough, busking is the art of musical street performance. A good busker in a busy spot can make a nice little pile of cash in an hour or two of playing. The following are some helpful tips for busking.
Get permission. Some cities and communities have ordinances that require a permit or fee for street performance.
Choose a good location. Avoid areas where there are other street performers but still have high traffic. Choose busy downtown areas in safe locations as a starter.
Choose your repertoire carefully. A good time of year to busk is during the holiday season. Jazz and popular music are also successful themes.
Be polite to your audience. Be warm and friendly with everyone who crosses your path. Smile and nod whenever you make eye contact with anyone.
2. Collect scrap metal. Iron, steel, and especially copper can be sold to scrapyards by the pound. To make a significant amount of profit, you'll need to bring in quite a few pounds, so be sure you have a vehicle with space for the metal.
Look around abandoned lots and derelict buildings for pipes and metal fixtures. Junk bins outside tech and office firms may have bunches of wire or other components that can be sold as scrap.
Be very careful if you collect scrap. Wear heavy gloves, bring a partner, and don't hunt for scrap at night.
Don't steal or strip metal from anything that's still in use.
Search neighborhoods in the morning before garbage collection. You can often find items that can be used for scrap or fixed up and sold.
3. Go rock hounding. There are guidebooks available in most areas that show where valuable rocks can be found. Fossils, geodes, and semi-precious gemstones are all widely available in some areas. Keep in mind though that this may take time to find a collection and might not be a fast solution to your money problem.
Learn different gemstone grades. If you're hounding for semi-precious gems, remember that coloration and size can sometimes make them quite valuable.
Bring a shovel or spade, gloves, a hat, and a pail or bucket. Very often, to find the better-quality rocks and fossils, you'll have to dig down into the ground a little bit. Be sure this is legal where you are; most places marked in a guidebook should allow it.
Be careful to stay off of private property, including mining claims.
Sell your haul to a specialty store. You won't get a whole lot, most of the time, but it's next to impossible to sell raw stones online.
4. Sell plastic bottles for money. It's possible to collect bottles from other people's recycling and sell them for money.
You'll have to collect quite a few of them before you can make a profit, so be prepared to put some effort into this method.
You'll also have to find a national recycling buyer that purchases plastic bottles in bulk. A simple Google search should help you find companies that you can work with.
5. Sell you hair. Believe it or not, there is a market for your hair. If you have "virgin" (non-dyed or treated) lengthy hair, you can earn quite a bit of money for it.
Your hair is an outgrowth of what goes into you, so if you eat healthy and don't smoke, you can sell your hair for a premium.
An online tool exists to tell you how much your hair is worth.

Community Q&A.

Question : Where can I sell foreign coins?
Answer : A local coin dealer might be interested. Try Craigslist, too.
Question : Do people really buy hair?
Answer : Yes, they do! Some people don't have hair, so real-hair wigs are very popular.
Question : How do I sell old and rare postal stamps?
Answer : Find the value of the stamps by doing some research online first. Then, look for local auctions, swap meets, or even antique stores where you could find someone to purchase the stamps. There are also plenty of places online where you could sell them yourself once you've found the value, like eBay or Craigslist.
Question : How can you do this if you are a kid?
Answer : Start with scrap metal. It is easy to do and is free.

Warnings.

Don't steal, blackmail, or counterfeit to get money. If you think it's a lot of trouble being broke, wait until you're broke and standing in a courthouse on a felony charge.
You may have to pay income tax or other taxes on your earnings, especially if you are working a second, or even third job. Don't fall into the trap of getting paid cash-in-hand for more than you are legally allowed to earn as having to pay the Inland Revenue, IRS or other agency a large amount of back tax is not going to improve you financial situation in the long or short term.
Don't gamble if you need money. The odds are even at the very best (and only in craps betting); generally speaking, odds are that you'll lose. There's a reason people call the lottery an “idiot tax.”

June 04, 2020

How to Be Smart with Money

How to Be Smart with Money.

Being smart with money doesn’t have to involve high risk investments or having thousands of dollars in the bank. No matter what your current situation is, you can be more financially savvy in your everyday life. Start by building a budget to help you stay within your means and prioritize your financial goals. Then, you can work on paying down your debt, building up your savings, and making better spending decisions.

Method 1 Managing Your Budget.
1. Set your financial goals. Understanding what you are working toward will help you build a budget to meet your needs. Do you want to pay down debt? Are you saving for a major purchase? Are you just looking to be more financially stable? Make your top priorities clear so that you can build your budget to fit them.
2. Look at your overall monthly income. A smart budget is one that doesn’t overextend your means. Start by calculating your total monthly income. Include not just the money you get from work, but any cash you get from things like side-hustles, alimony, or child support. If you share expenses with your partner, calculate your combined income to figure out a household budget.
You should aim to have your overall monthly spending not exceed what you bring in. Emergencies and unforeseen occasions happen, but try to set a goal of not using your credit card to cover non-necessary items when your bank accounts are low.
3. Calculate your necessary expenses. Your first priority in building a better budget should be those things that need to be paid every month. Paying these expenses should be your first priority, as these items are not only necessary for daily function, but could also damage your credit if you fail to pay them in full and on time.
Such expenses may include your mortgage or rent, utilities, car payments, and credit card payments, as well as things like your groceries, gas, and insurance.
Set your bills up on autopay to make them easy to prioritize. This way, the money comes right out of your account on the day the bill is due.
4. Factor in your non-essential expenses. Budgets work best when they reflect your daily life. Take a look at your regular, non-essential expenses and build them into your budget so that you can anticipate your spending. If you get a coffee every morning on the way to work, for example, throw that in your budget.
5. Look for places to make cuts. Creating a budget will help you identify things you can cut from your regular expenses and roll into your savings or debt payments. Investing in a good coffee pot and a quality to-go mug, for example, can really help you save long-term on your morning fix.
Don’t just look at daily expenses. Check things like your insurance policies and see if there are places you can scale back. If you are paying for collision and comprehensive insurance on an old car, for example, you may opt to scale back to just liability.
6. Track your monthly spending. A budget is a guideline for your overall spending habits. Your actual spending will vary each month depending upon your personal needs. Track your spending by using an expenses journal, a spreadsheet, or even a budgeting app to help you ensure that you are staying within your means each month.
If you do mess up or go over your budget goals, don’t beat yourself up. Use the opportunity to see if you need to revise your budget to include new expenses. Remind yourself that getting off-target happens to everyone occasionally, and that you can get to where you want to be.
7. Build some savings into your budget. Exactly how much you save will depend upon your job, your personal expenses, and your individual financial goals. You should aim to save something each month, though, whether that’s $50 or $500. Keep that money in a savings account separate from your primary bank account.
This savings should be separate from your 401(k) or any other investments that you have. Building a small general savings will help you protect yourself financially if an emergency comes up, such as a major repair around the house or unexpectedly losing your job.
Many financial experts recommend a target savings of 3-6 months’ worth of expenses. If you have a lot of debt you need to pay down, aim for a partial emergency fund of 1-2 months, then focus the rest of your cash on your debt.

Method 2 Paying Off Debts
1. Figure out how much you owe. To understand how to best pay down your debt, you first need to understand how much you owe. Add together all your debts, including credit cards, short-term loans, student loans, and any mortgages or auto financing you have in your name. Look at your total debt numbers to help you understand how much you owe, and how long it will truly take to pay it off.
2. Prioritize high-interest debts. Debts like credit cards tend to have higher interest rates than things like student loans. The longer your carry a balance on high interest debts, the more you ultimately pay. Prioritize paying down your highest interest debts first, making minimum payments on other debts and putting extra money into your top debt priorities.
If you have a short-term loan like a car title loan, prioritize paying that down as quickly as possible. Such loans can be devastating if not paid off in full and on time.
3. Go straight from paying off one debt to the next. When you pay off one credit card, don’t roll that payment amount back into your discretionary funds. Instead, roll the amount you were paying into your next debt.
If, for example, you finished paying down a credit card, take the amount you were putting toward your credit card and add it to the minimum payment for your student loans.

Method 3 Setting Up Savings.
1. Pick a savings goal. Saving tends to be easier when you know what you’re saving for. Try to set a goal, such as building an emergency fund, saving for a down payment, saving for a major household purchase, or building a retirement fund. If your bank will let you, you can even give your account a nickname such as “Vacation Fund” to help remind you of what you’re working toward.
2. Keep your savings in a separate account. A savings account is generally the easiest place to put your savings if you are just starting out. If you already have a solid emergency fund and have a reasonable amount to invest, such as $1,000, you may consider something like a certificate of deposit (CD). CDs make your money much harder to get to for a fixed period of time, but tend to have a much higher interest rate.
Keeping your savings separate from your checking account will make it harder to spend your savings. Savings accounts also tend to have a slightly higher interest rate than checking accounts.
Many banks will allow you to set up an automatic transfer between your checking and savings accounts. Set up a monthly transfer from your checking to your savings, even if it’s just for a small amount.
3. Invest raises and bonuses. If you get a raise, a bonus, a tax return, or another unexpected windfall, put it in your savings. This is an easy way to help boost your account without compromising your current budget.
If you get a raise, invest the difference between your budgeted salary and your new salary directly into your savings. Since you already have a plan to live off your old salary, you can use the new influx of cash to build your savings.
4. Dedicate your side gig money to your savings. If you work a side gig, build a budget based on your primary source of income and dedicate all your earnings from your side gig to your savings. This will help grow your savings faster while making your budget more comfortable.

Method 4 Spending Money Wisely.
1. Prioritize your needs. Start each budget period by paying for your needs. This should include your rent or mortgage, utility bills, insurance, gas, groceries, recurring medical expenses, and any other expenses you may have. Do not put any money toward non-necessary expenses until all of your necessary living costs have been paid.
2. Shop around. It can be easy to get in the habit of shopping in the same place repeatedly, but taking time shop around can help you find the best deals. Check in stores and online to look for the best prices for your needs. Look for stores that might be running sales, or that specialize in discount or surplus merchandise.
Bulk stores can be useful for buying things you use a lot of, or things that don't expire such as cleaning supplies.
3. Buy clothes and shoes out-of-season. New styles of clothes, shoes, and accessories generally come out seasonally. Shopping out-of-season can help you find better prices on fashion items. Shopping online is particularly useful for out-of-season clothes, as not all stores will have non-seasonal items.
4. Use cash instead of cards. For non-necessary expenses such as going out to eat or seeing a movie, set a budget. Withdraw the necessary amount of cash before you go out, and leave your cards at home. This will make it more difficult to overspend or impulse buy while you're out.
5. Monitor your spending. Ultimately, as long as you're not spending more than you bring in, you're on target. Regularly monitor your spending in whatever way works best for you. You may prefer to check your bank account every day, or you could sign up for a money-monitoring app such as Mint, Dollarbird, or BillGuard to help you track your spending.

April 11, 2020