Category: Budgeting

  • SoFi is a One-Stop Shop to Spend, Save, Borrow and Invest

    As our lives continue a noticeable shift to virtual SoFi has positioned itself as an option in an increasing number of online personal financial services.

    SoFi offers a variety of lending options such as student loans, home mortgages and personal loans, as well as money management and investment tools. It’s marketing itself as a one-stop financial shop on your mobile devices.

    The one-stop shop even offers no-cost membership perks like career services and financial planning advice.

    What Is SoFi?

    SoFi, which is short for Social Finance, Inc., is an online personal finance company that offers a variety of financial services through its app and website.

    The types of financial services offered by the California-based company include student loans, home mortgages, and personal loans, as well as investing and banking options. It also offers special perks to members, including regional events and discounts on future lending opportunities.

    Earn $50 Bonus with SoFi Money App. Bonus: Get 10% Back on Streaming.

    How Does SoFi Work?

    Your first step is to sign up for a user account with SoFi to become a member.

    To do so on a cell phone, you can download the SoFi app on the Google Play Store or Apple App Store. Otherwise, most functions of the SoFi service can be found on its website.

    Membership does not cost you anything and the initial signup process requires no more than your name and a valid email address. Once logged in with your membership, you will have access to browse and apply for each of the SoFi services.

    Remember, you get to pick and choose what you use from the products that are offered under the SoFi portfolio. That means you only have to provide personal information that is necessary for each product. For instance, a student loan may require different documentation than a home loan, so you’re only going to be asked to provide the pertinent information for the one for which you apply.

    Since there is not a physical meeting with bankers or financial planners, communication with SoFi staff is done electronically through the app, website and email.

    What Services Can I Get With SoFi?

    SoFi has a wide variety of financial services available actually too many to list here so we have provided an overview of some of the more popular categories.

    Student Loan Services

    SoFi offers student loan solutions for pretty much every situation: offerings for new student loans, people looking to refinance their student debt and even student loan options for parents.

    New Private Undergraduate and Graduate Loans

    For those entering college or are already enrolled, SoFi has a private student loan program where you can apply for both undergraduate and graduate loan. The rates are higher on the latter. That’s to be expected in the student loan industry. SoFi offers both fixed and variable rate loans, allows for adding cosigners during the online application process and touts that the loans will cover 100% of the cost of attendance.

    For undergraduate loans, SoFi will allow you to repay via one of four methods: deferred (make first payment six months after graduation), interest only (pay only interest while in school), partial ($25/month fixed payment while in school) or immediate (start paying right away).

    Refinancing Student Loans

    SoFi will refinance both federal and privately funded student loans. There are no application or origination fees involved, and these refinanced loans have no prepayment penalties. It appears that you can receive a quote on your potential interest rate without enduring a credit check.

    Parent Student Loans

    If you are a parent who either is paying for or plans to help pay for your child’s higher education experience, SoFi has some options for you as well. These privately funded loans allow for a fixed or variable rate of borrowing on a child’s tuition.

    The repayment method on these loans is limited to either immediate (pay regular payments as your child progresses through school) or interest-only (pay only the interest on your loan for your child’s tuition until education is complete).

    Home Loans

    You may not think of a phone app like SoFi as a mortgage lender, but they actually do have the capability to help you purchase your next house or refinance the one you already have.

    The mortgage offerings require as little as a 10% down payment and can be for as much as $3 million.

    SoFi says it can quote you a home loan interest rate in as little as two minutes without impacting your credit score by using a “soft credit pull,” so you should be able to get an idea of how competitive they are with rates you’re seeing elsewhere before applying. However, do note that they will have to pull a full credit report (which impacts your credit report) if you decide to move forward with the application process.

    Other mortgage perks touted are SoFi’s ability to “typically” close loans within 30 days and a $500 discount on processing fees for members.

    We recommend of course that you get several mortgage quotes before making any decision on a purchase or refinance. For most people, this is the largest debt obligation of your life and being sure you’re making the right choice is of the utmost importance.

    Personal Loans

    If you’re looking to make a major purchase or pay off some outstanding debts with a potentially lower rate of interest, SoFi’s personal loans may be an option worth considering.

    SoFi will issue personal loans for between $5,000 and $100,000 with no origination fees or prepayment penalties. At the time of this article, SoFi was advertising fixed rates as low as 5.99% APR if you’re willing to enroll in their autopay program.

    As you apply for this type of loan, SoFi is going to assess things like the purpose of the loan, your desired amount and capacity for a monthly payment.

    SoFi Money is the new Online Bank

    SoFi Money is a “cash management” product that gives SoFi offers to members on a fee-free platform. It is free to sign up and has no minimum balance requirement.

    While the program does offer some of the full-service bank-like options, it’s important to note that you are not signing up for an online checking or savings account. Instead, you are signing up for what amounts to a FDIC-insured brokerage account.

    Some of the functions you’re able to execute with an account like this include basic banking necessities:

    • Debit card spending
    • No-cost ATM access
    • Automated bill pay
    • Free person-to-person cash transfers
    • Earn interest on balance (SoFi was offering 0.2% APY at the time this article was published)

    If you’re looking for an online bank Sofi has proven to be one of the easiest to set up and actually paid their bonuses fast!

    SoFi Invest from Fractional Stocks & Bitcoin

    In addition to its loan and money management elements, SoFi has tools for making investments.

    There is no fee for trading traditional stocks and ETFs and the service even allows you to invest in “stock bits” in increments as little as $1. That’s basically buying a share of a share of an expensive stock. For example, at the time this article was published Amazon’s stock was trading for roughly $2,400 per share. “Bit” or “fractional” investing would allow you to purchase as little as 1/2400 of a share of Amazon for $1.

    SoFi also allows you to invest in cryptocurrencies like Bitcoin.

    SoFi Relay

    The SoFi Relay platform is also offered free of charge and is all about monitoring your financial well-being. You can access things like a free credit health tracker as well as a host of tools for your personal budget.

    It’s important to note that you’ll have to link personal banking information to the SoFi platform in order to enable things like analysis of your spending trends. Services like Digit and TrueBill that also monitor your spending habits and may potentially offer more benefit by automatically saving money or trimming the cost of your monthly bills.

    What Users Are Saying About SoFi

    The generally positive outlook on the services rendered by SoFi extends to the Better Business Bureau, which has issued SoFi an “A-” rating. That’s a score between 90 and 93.99 on its 100-point grading scale.

    The SoFi app has a 4.8 out of 5 star rating on the Apple App store with more than 32,000 reviews. The Google Play Store rating is slightly lower at 4.1 out of 5 after more than 3,000 reviews.

    Membership Benefits

    Once you are signed up as a member with SoFi, you have access to a menu of benefits that you may not typically expect from a company trying to make money on your financial decisions. SoFi has been known to host regional events such as cooking classes or a night at a fancy restaurant that are exclusively offered to members.

    Here’s a quick rundown of some of the membership perks:

    • Access to financial planning advice through credentialed advisors
    • Member rate discounts (save on your interest rate if you sign up for an additional loan through SoFi)
    • Referral bonus programs
    • Personalized career advice
    • Ticketed member events such as cooking classes, themed parties and topic-specific speaking events and webinars

    Final Thoughts

    SoFi definitely offers a fresh alternative to many of the traditional outlets for your personal financial needs. As things like social distancing become a regular part of our society, having the ability to access so many financial options right from your mobile phone is a plus. None of us like to go into banks or deal with “nosey” bankers.

    We think you’ll find that Sofi is pretty easy to navigate. We recommend using this as just one of many tools in your financial life. Just like with travel or anything else you want to have a bunch of tools at your disposal to live your most frugal life.

    If you are looking for a one-stop shop for financial services and are comfortable completing major transactions without much human interaction, you may find that SoFi is the perfect fit for your personal financial situation.

  • Meal Planning to Save Money

    With today’s high bills and struggling economy, many of us are trying to tighten our belts a bit. One of the most variable items in many budgets is the food bill. While no one wants to just eat rice and beans, planning out your meals can cut your food costs and provide you and your family with more nutritious food. You can also save time by cooking smarter, using tools you probably already own, and shopping less.

    Making your own menus will save you more than money. How many times have you found yourself back at the grocery store because you didn’t have the ricotta for a lasagna or were missing the lemon juice you needed? Maybe you dial that pizza delivery more than you would like. Regardless, a meal plan will allow you to shop efficiently, avoiding extra trips to the store. It will also allow you to take advantage of sales and specials and use your time wisely. Perhaps you can make two of a casserole or dish and freeze one, or do some extra prep on the weekend for busy weekday meals.

    You only need a few tools to plan meals and menus. First, make a list of favorite recipes. Add a few that you are interested in or want to try as well. Choose a variety of types of meals, and meals with a wide range of preparation requirements when you make this list. You may want to include take out, dinners out, or quick, convenience foods in your list for nights when time is just too tight to cook. You also need a planner, calendar or printable on-line menu, whichever suits your needs. Finally, your local grocery ads are the last thing you need if you want to save.

    Look at what is on sale in your area and any coupons you might have. Keep in mind that you can use coupons on sale products and that some stores will match competitors’ prices, helping you to save valuable shopping time. There is even a service that for a small fee will tell you what to buy when in your area to make the most of your savings, at grocerygame.com.

    Another way meal planning can help you save is by allowing you to use foods that are inexpensive, but may be too time consuming without some forethought. Often, tougher cuts of meat work very well for slow cooking, using a slow cooker or a slow simmer on the stove. You might also plan to bake cookies for the kids’ lunches instead of buying treats or take the time to cook dry beans instead of buying canned.

    Planning for leftovers is ideal. If you bake a ham or roast a chicken on Monday, reuse the meat in other forms on Tuesday and Wednesday. Monday’s chicken and mashed potatoes can become Tuesday’s chicken pot pie and Thursday’s chicken noodle soup. This will allow you to stretch your food dollars as much as possible thanks to smart planning.

    If you often find yourself asking what’s for dinner at 5:30 on Wednesday night, a meal plan can save you time, trouble and keep more money in your pocket. You can even reuse your family menu from month to month to save time, or change it seasonally if you prefer. Taking the time to figure out family dinners before that night will make everyone’s life easier and make healthy meals a joy instead of a chore.

  • More Ways to Save on Gas

    Gas prices may not be as high as they were a few months ago but we are still seeing big numbers at the pump.  We also have less money to spend at the pump.  There are layoffs and people being fired everyday and with inflation hitting us steeply it will only get worse.  People loosing their jobs need to find ways to save money and gas is a good place to start.  The way I see it, we need to do many things

    1- people stop driving as much.
    2- Quit allowing ourselves to be gouged and raped at the pumps.
    3- Actually invest NOW into bio fuels.  Don’t just offer tax incentives and research, make it actually happen.
    4- Allow more oil refineries to be built.  Oil is not low in supply at the moment, the refineries just cannot put enough out to meet the demand.  This is a short term fix only, and would do so to help with the gas prices.  In the mean time, we need to be working on solar and bio power supply.

    But for now, the immediate fix would be make gas gouging criminal, like it should be.

    I am not driving anywhere that is reasonable distance- been riding my bike to the post office, UPS, errands, etc.

    Also, read our articles on this blog about gas cards .

  • $4 Gallon Gas

    Did you notice less people traveling on the highways over the last big holiday weekend?  Americans are driving less.  Gas has quickly become America’s top economic issue since it relates to so many products and services.  Sunday, gas topped the $4 per gallon average the first time first in Alaska then it spread to other states.  On June 10th Maryland, Georgia, and Florida got hammered with $4 gallon gas.

    The national average now is $4.04, but that may go up or down depending on the commodities.  The shock about $4 gas could reduce consumer spending drastically because of the fear people will not have any money left over after driving to work and running personal errands.

    Commercial fleets are paying 33% of their total costs in fuel now compared to 13% in 2006.  This steady rise in commercial fleets could quickly lead to our own pocketbooks in higher prices for FedEx deliveries, cereal, among other increases in everyday goods and services.

    We were complaining about these prices back in 1980 when a new level of $1 was reached but you must consider inflation with these prices.  Then again it took sixty years to reach over 99 cents price point.  Would you love to have some 99 cent gas right now?

    Expect lawn care services, shipping, and anyone and everything to try to put on extra fees to pay for their gas.  We will be having dreams of hybrid cars, trucks, and lawn mowers.

    You can dream all you want for lower prices at your neighborhood Shell station or 7-Eleven it might come true in a decade or so.  Praying might even come in for some.  We should have gotten off this addiction to oil years ago but we are still craving for crude oil and that’s what we are getting.

    Watch out for thieves as gas prices soar.  Crooks are cutting into gas lines in neighborhood malls and shopping centers and even stealing catalytic converters out of trucks and cars parked at residences.  People may even start killing for fuel as these prices continue to rise to keep a closer eye on things when you get out and about.

    Cheers to the good inventive people who are coming up with creative ways to keep gas mileage down!

  • Free Budgeting Software

    There are a number of choices in budgeting software. The good news is that they all work and work well. On the whole, any budgeting plan works as long as you implement it and stick to it. How should you choose budgeting software? Well, many people start by looking at the software most easily integrated with their bank and other financial resources. Many banks now allow you to download your statements directly into Quicken or Microsoft Money, as you prefer. You might also consider a virtual version of old fashioned envelope budgeting with a product like My Spending Plan at Http://www.myspendingplan.com. You can also find a number of free or shareware budgeting software options on-line if you’d like to get started at a lower cost. Finally, if you already own or have access to a basic database program similar to Microsoft Excel, this is an excellent and easy to use budgeting tool.

    Which of these options should you choose? First, consider how much you can afford to spend. There are a number of great free budgeting tools, particularly if you do not need to manage and supervise investment accounts or other more complex financial matters. My Spending Plan works on the envelope system, but you will find that there are a number of other free budgeting software options on-line as well, and one may meet your needs and preferences. Buddi is an open source program that will run on any machine with Java installed and is available at http://buddi.thecave.homeunix.org/en/. 

    Buddi offers a traditional way to track your spending and budget your money. GnuCash allows for common financial file downloads and access at no charge gnucash.org. GnuCash offers substantially more accounting tools than the other free options listed, and will also work well for small businesses needing to keep track of their money.

    If you are willing to spend on your budgeting software, the two big names in the business are Quicken and Microsoft Money. Microsoft Money is easy to learn and use, particularly if you are already accustomed to using Microsoft products. It has a number of convenient on-line access features as well, including integrated access with MSN Money.

    Quicken is available both as Quicken On-line and as a standard piece of software. If you do nearly all your budgeting at home or the office, the traditional software may be a good choice, but if you use multiple computers or are often on the go, the newer on-line option may be an excellent budgeting tool.

    Which of these two should you choose? That answer depends upon your bank, investments and other financial matters. Choose whichever is the most compatible with your needs for the most convenient and easiest home money management.

  • Oil Hits $130 a barrel

    Just in time for one of the biggest travel weekends of the year Oil prices rose to $130 a barrel.  This is the first time it has hit this high of a record and it may not stop anytime soon.  Supply concerns and the Weak American Dollar are just a few of the reasons that oil is rearing its ugly bullish head (not ugly to investors).

    Expect prices at the pump to rise in time for Memorial Day weekend.  You may want to think twice about your vacation this weekend or your outing at the beach.  Prices will be sky high at over $4 at some gas stations across the country.

    Let’s hope Honda expedites the release of the gas-electric hybrids they have planned to release in the U.S. next year.  Until then its time to get some bicycles and/or walk until these gas prices come down some.  Don’t get your hopes up though because gas prices will not go down until at least October and that is if we do not have a bad Hurricane season.

  • Drive Faster, Save Gas

    Gas prices are climbing to all time highs right now at over $4 for diesel fuel and regular unleaded. The wholesale has reached new benchmarks at almost $120 a barrel. Possible invasion of Iran, Combat in Iraq, Demand, among hundreds of other reasons that gas prices will only climb from here on out.

    The purchase of a 2010 Mitsubishi i MIEV Plug-In Electric is unlikely since that will probably not be around until 2009 for pre-order. You can invest your hard earned money in a hybrid car or SUV but that could also only save you in the long term which is not a bad thing.

    My tips on saving money on gas might be different that the ones you normally read:

    1. Drive Faster – Find tollways to drive on and pay the extra toll instead of driving down older roads or highways. You can normally drive faster on highways and avoid wasting gas sitting in several accidents or slower traffic congested areas.
    2. Carry Several Gas Cards – If you have the credit then why not. I have a credit card for each gas station I live near so I can get 5-10% cash back at their stations. Exxon, Shell, and BP all offer great credit cards to maximize the money you spend at the pump. I also use the Chase Free Cash Visa at Sam’s Club and Wal-Mart purchases and the Chase Freedom Card for 7-Eleven and all other gas retailers.
    3. Get Oil Changed Frequently – Make sure you keep up with the regular maintenance of your car.
    4. Tire Pressure – Make sure your tires are in good shape and are aired up to the proper levels recommended in your manual.
    5. Pull Technology From Business to Consumer – Do all you can as a consumer to contact companies to speed up their technology to get more vehicles such as biodiesels on the road. If you own a RV there are ways to convert it. Ask around and find out how you can convert your car, truck, or RV to take biofuels such as restaurant grease. This will speed up the free market process faster than the government tax credits.
    6. Hypermiling – the more aggressive ways for gas savings.  One hypermiling way to drive is to tailgate the car in front of you using wind and resistance to down power your car.  I would not advise this method unless you have a standard shift otherwise you would have to turn off your car.  They also tell you to over inflate your tires which is also sort of risky behavior.

    It is said that gas prices related to consumer spending and that many budget less spending when they go higher. There are many things that go into consumer spending besides gas prices but it does make airfare go higher, shipping, goods, and maybe even some service pricing increase.

    This is an exciting time for America as we can learn to conserve foreign oil more and learn creative new ways to gain in technology. Using gas rewards cards, upgrading to toll roads, and biodiesels are the best solution to the gas price hikes. You might even see more people walking and riding their bike… a free diet called exercise!