I get a lot of questions about preparing financially for a baby. We’ve all heard that if you wait until you’re financially ready to have kids, you’ll never have any, and I think that’s good advice. But it doesn’t mean you can’t do a few things to pad your savings account before the new addition comes along. Having a baby means two things, financially speaking: You need to start preparing for the future, and you’re going to have more – and different – drains on your wallet. We’re going to tackle both, starting with how to handle and prepare for new expenses. Check back next week for part two, when I’ll cover preparing for the future.
Here are my favorite tips when it comes for budgeting for baby:
Use your pregnancy to save. This is going to be a long nine months – trust me, I’ve been there. Twice. So use it to your advantage by setting a goal to put away as much money as you can in extra savings by the time you go into labor. This is especially useful if one of you would like to become a stay at home parent – I highly suggest you “practice” living on only the income of the parent who will continue to work while you’re pregnant so you can see if it’s possible. Bank the other income for that nine months, and not only will you be able to give your new arrangement a trial run, but you’ll supercharge your savings. More…
I am so upset. We are supposed to close on our refinance of our house tomorrow and one hour ago I find out that they are asking for a 1007 form from the appraiser. This is a rental house. The bank collected $550.00 from us for the appraisal. I have also been informed that the appraiser is charging more but still under the $550.00 we gave the bank and they are not going to pay him more as he has a contract with them for $50.00 to do the 1007 form. I informed the bank today to pay the man or I would pay him again so we can move forward. What can I do? I what they are doing legal? They also have moved the closing now for almost 60 days saying they cannot find forms we gave them. Please Help!
– Tuscaloosa10
The 1007 form is generally required as part of the appraisal for rental properties – it’s called a Single Family Comparable Rent Schedule, and it’s used by an appraiser to gather data about other rentals in the neighborhood. These would be used as comparables – the appraiser will pull together information about their proximity to your rental property, their leases, monthly rent, and so on and so forth. The bank wants to make sure that the rental income you’re claiming you’ll be able to receive from your property is feasible, because in most cases, rental income is necessary to secure the loan. Most borrowers can’t qualify without it.
So your hands are pretty tied – it seems that this form wasn’t originally ordered by you or your bank, or there was a mistake in the paperwork. The most you can do at this point is put pressure on the appraiser – and the bank – to speed things along. And if this was the bank’s mistake – it sounds like the whole process has been disorganized – I’d make sure they know that you’re not happy. Talk to a supervisor if necessary.
HOW: For many students, life after graduation means facing a mountain of student loan debt. When considering all of the costs associated with college – beyond tuition and into the cost of computers and textbooks – that debt can rack up, and amount to a significant setback. Mehdi Maghsoodnia saw this problem, and made it his goal to develop a solution. “In a public community college, you can end up paying more for textbooks than you do for the course credits,” says Maghsoodnia. “Why can’t it be more affordable for students? We have to make it affordable, accessible and effective.” More…
Black skirt (4), Black cardigan (3), White tank (2).
I didn’t post yesterday because I was running around like a crazy person. But I finally wore item 6, a plain light blue shift dress. For anyone considering doing this experiment, here’s my advice: Wait to pick an item until you really need it. I didn’t need the blue dress so much yesterday, but my husband and I were invited to an event by his new boss later this month and all of a sudden I needed something summery and appropriate. Voila. Item six. If I had gone with what I originally thought would be six – a purple cardigan that could have gone over any of my other pieces, I would have been stuck.
People – ahemm Meredith Vieira – are starting to kid me: “Didn’t you wear that yesterday?” In fact, the answer is more often no than yes, unless it’s a weekend, when the answer is always yes. By day 20 I am sure I’ll feel differently.
I am starting to see my interest in shopping for clothes fall off. Confession: At 11 a.m. most days, I visit Ruelala.com to see what’s on the sample sale. More…
Americans, both insured and uninsured, have been cutting down on visits to the doctor. This morning on the Today Show, we talked about the impact of that decision on your health – and how you can work to make your doctor’s visits more affordable now – so you don’t pay more down the road. To learn more watch the video clip below.
This morning, Today’s experts answered your tough financial questions. How do you keep a business bankruptcy from going personal? No employer 401K, what’s the best way to save? Should you refinance your home loan? For answers to these questions and more watch the video below.
The Sixperiment (Day 8: Khaki shorts, white tank, black cardigan, which is getting to feel like a uniform) is going well. I don’t feel compelled to talk about what I am wearing today, let alone really think about it. That may be because my house was hit by lightning over the weekend and after dealing with a stream of very nice repair folk and contractors – electrician, cable/internet/phone, appliance installer (the washer and microwave got fried), alarm system (ditto the smoke alarms, though we didn’t have a fire), etc. – I am exhausted. But it also may be because I am not a fashion expert. More…
“I get a lot of letters in the mail from companies that say they can cut my credit card debt in half. Are these companies legitimate? I feel like I’m drowning.” – Alicia, Georgia
For the most part, no. I’m sure you’ve heard a lot in the news recently about debt settlement scams that target those in dire financial situations. Unfortunately, many of these companies don’t deliver what they promise – your debt cut in half, an end the collection calls, and a fresh start. “The truth is, the process can take years to complete, your credit is going to take a big hit and the large upfront fees mean that you can end up drowning in even more debt,” says Alison Southwick, a spokesperson for the Better Business Bureau (BBB). More…
We all know that shopping makes us feel good. It’s a scientific fact – when we see something we want, it triggers the release of feel-good endorphins and hormones that inspire us to make a purchase – something I talk about in my book, The Difference. But I know from reading many of your e-mails that, in some cases, this kind of feel-good shopping can become a real issue. When you shop compulsively – buying things you don’t need, and racking up debt – it can take a real toll on your life.
My good friend April Lane Benson, PhD, is an expert in overshopping – and how to stop. She authored a book – To Buy or Not to Buy: Why We Overshop and How to Stop – to help compulsive shoppers curb their behavior and live a financially responsible lifestyle. Recently, April let me know about a new study she’s working on to test her treatment for compulsive buyers. The treatment has been a success for more than 100 shopaholics – and it incorporates a series of steps that help to re-shape buying behavior, and keep you from falling back into a bad habit once you’ve fixed it. More…
Earlier this year, the CARD Act went into effect, changing the credit card market as we knew it. Many of the changes were in favor of the consumer: a grace period is now required on interest rate increases, there are new notification rules, and creditors have to consider payments made before 5pm on the due date as on time.
Another provision, though, was a huge game changer for college students: In order to get a credit card under age 21, you have to prove you have the income to make the payments, or get a co-signer. More…
I get a lot of questions about preparing financially for a baby. We’ve all heard that if you wait until you’re financially ready to have kids, you’ll never have any, and I think that’s good advice. But it doesn’t mean you can’t do a few things to pad your savings account before the new addition comes along. Having a baby means two things, financially speaking: You need to start preparing for the future, and you’re going to have more – and different – drains on your wallet. We’re going to tackle both, starting with how to handle and prepare for new expenses. Check back next week for part two, when I’ll cover preparing for the future.
WHO: Mehdi Maghsoodnia
Black skirt (4), Black cardigan (3), White tank (2).
The Sixperiment (Day 8: Khaki shorts, white tank, black cardigan, which is getting to feel like a uniform) is going well. I don’t feel compelled to talk about what I am wearing today, let alone really think about it. That may be because my house was hit by lightning over the weekend and after dealing with a stream of very nice repair folk and contractors – electrician, cable/internet/phone, appliance installer (the washer and microwave got fried), alarm system (ditto the smoke alarms, though we didn’t have a fire), etc. – I am exhausted. But it also may be because I am not a fashion expert. 
“I get a lot of letters in the mail from companies that say they can cut my credit card debt in half. Are these companies legitimate? I feel like I’m drowning.” – Alicia, Georgia
We all know that shopping makes us feel good. It’s a scientific fact – when we see something we want, it triggers the release of feel-good endorphins and hormones that inspire us to make a purchase – something I talk about in my book, 
