Beating Broke

Personal Finance from the Broke Perspective

Why You Should Get Braces for Your Child When Needed

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Raising children and providing them with basic needs like food, clothes, and shelter can be expensive, especially as they enter the tween and teen years.  And then there are other expenses like school, sports, entertainment, gifts, etc. that get more expensive as your child gets older.  If you have a child that needs braces, especially if the problem doesn’t seem that bad, you may decide to forego treatment.  However, if at all possible, there are several reasons why you should get braces for your child when needed.

Why You Should Get Braces for Your Child When Needed

Why You Should Get Braces for Your Child When Needed

Although paying thousands of dollars for your child to get braces is a financial hardship, there are several reasons why it’s smart to make the investment.

Waiting May Lead To More Problems Later

I have a small, narrow mouth, and my mom was told I needed a retainer to correct an overbite and a crossbite.  Admittedly, on the surface, my teeth don’t look that bad.  I don’t think that the crossbite is that noticeable, and I have just a bit of overcrowding.  My mom did pay for a retainer, but I wrapped it in a napkin when it was time to eat lunch at school, and inadvertently I threw it in the trash.  My mom didn’t have money to buy a new one, so that was the end of my orthodontic treatment.

Fast forward 30 years later, and I’ve had many problems with the side of my mouth that has a crossbite.  Because I clench my teeth at night, I wear a mouth guard.  However, even with the dental appliance,  I damaged the teeth with a crossbite.  I had a botched root canal that couldn’t be fixed on that side, had to have the tooth pulled, and now I’m waiting for a dental implant.  I also had to have a root canal on another tooth on that side.

The side that doesn’t have the crossbite?  I’ve had no problems despite my clenching.  Now I’m in Invisalign to correct the crossbite and hopefully mitigate any future damage.

Double the Expenses

Why You Should Get Braces for Your Child When Needed
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If adults need braces, chances are, at least some of their children will also need braces.  Then, the adults are not only paying for their children’s braces, but their own.  In our home, I’m in braces, my son completed his treatment last year, and my daughter started hers last year.  Paying for two kids in braces is expensive enough, but to then pay for my adult braces on top is a financial strain.

Children’s Teeth Are Easier to Move

While a child is still growing, their teeth are easier to move with braces.  Yes, adults can also see good results with braces, but treatment will likely be more difficult and take longer.

More Stigma with Adults Wearing Braces

Even though more adults are getting braces, adults still only make up about 20% of the total braces-wearing population.  Many adults may be self-conscious to wear braces when they’re working in the business world, and there may be a stigma attached to those who wear them.

Final Thoughts

Many people consider braces optional, especially if the problems aren’t immediately visible.  However, not getting braces for your child to correct a crossbite or other issues can lead to expensive dental procedures for your child in adulthood.  If at all possible, try to pay for your child’s braces, especially when considering all the reasons why you should get braces for your child when needed.

Did your parents pay for your braces, or did you have to wait until you were an adult?  Do you agree that paying for braces should be a priority for parents if they’re necessary?

What Is Required for a Hard Money Loan?

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When most people buy a house, they take out a loan with a traditional lender.  However, individuals who are interested in buying run down houses to fix them up to then sell or rent rarely qualify for traditional mortgages.  Instead, they seek hard money loans, which have short terms and give the investor more flexibility than a traditional loan.  Before you first enter the home flipping business, it’s important to know what is required for a hard money loan.

What Is Required for a Hard Money Loan?

What Is Required for a Hard Money Loan?

Of course, each lender will have their own requirements, but in general, there are three criteria that are most important when trying to secure this type of loan.  Not surprisingly, many of the requirements circle around cash on hand and experience.

Down Payment

Most banks require a 25 to 30% down payment for residential properties.

In general, a successful hard money loan fit this formula.  Consider the estimated after repairs retail value of the property.  Let say you expect to sell the property for $250,000 when you’re done fixing it up.  Maybe you purchased the property for $100,000.  You expect to complete the repairs for $60,000, and you also want to borrow enough to cover closing costs of, say, $15,000.  Your total comes to $175,000, or 70% of the expected value of the property.  If you use this formula, you will likely qualify for a hard money loan.

Cash Available

What Is Required for a Hard Money Loan?
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Since hard money loans are inherently risky, the lender will take a close look at your cash reserves.  You will need substantial cash reserves to use during the renovation process to pay for things like HOA dues, interest payments on the hard money loan, insurance on the property, and other expenses.

The more cash you have available, the more likely you are to qualify for the loan.

Exit Strategy

The last thing the bank will consider is your exit strategy.  Most hard money loans only have terms of six to 18 months, so you must have a plan for what to do when the loan term ends.

For private properties, there are two basic exit strategies:

Sell

The most typical option is to immediately sell the property when you’re done renovating it.  You settle the hard money loan, get your profit, and are free to go on to invest in the next property.  Some investors go a step further and get a cash out refinance so they then have even more cash on hand to invest in the next property.

Rent

Another option is to renovate the property, then rent it.  When you rent it, the property is now making money.  You’ll be able to go to a traditional mortgage lender and get a traditional mortgage in place of your hard money loan.

Final Thoughts

If you are considering going into the real estate business, you must first learn what is required for a hard money loan.  When you meet the requirements, you’ll be able to secure your first loan.  After you have amassed more experience and cash, you will find that hard money loans are easier to obtain, and you’ll be able to grow your business.

What the Pandemic Has Taught Me About Our Spending

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The pandemic has changed our American way of life.  More people work from home now.  Kids go online to complete their schooling. Many of us are wearing masks now.  And, our month or two quarantined at home has given us time to reflect on what are life used to be like. . .and whether or not we want to fully go back to that life.  I’ve spent some time considering what the pandemic has taught me about our spending.

What the Pandemic Has Taught Me About Our Spending

What the Pandemic Has Taught Me About Our Spending

Sometimes you get complacent in life and just do things the way that you’ve always done them.  This pandemic has allowed me to look at our finances with fresh eyes to discover what we did well and what needs improvement.

My Bargain Shopping Was a Boon to the Family

What The Pandemic Has Taught Me About Our Spending
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I used to drop by the grocery store three or four times a week, scouring the store for clearance mark downs.  I bought probably 1/3 to ½ of our weekly food this way.  I used to worry that I was spending too much money shopping this way, but now I see how much I was really saving us.

Since the pandemic, I’ve relied on grocery store pick up, which means paying full price for everything.  Our grocery bill has shot up by 30%.  When the pandemic is over, you can bet I’ll be back to stopping by the store a few times a week to pick up the bargains.

We Drove Around Way Too Much

What The Pandemic Has Taught Me About Our Spending

Before the pandemic, we were a busy family with three kids.  We spent our time, like many American families, in the car driving from activity to activity.  Gas was a large line item in our budget, especially since our town is very spread out.  We easily spent 2 to 2.5 hours in the car a day, dropping off and picking up a child from school, taking another child to therapy, going to horseback riding lessons, gymnastics lessons, religious education lessons.  On and on.

Since the pandemic, our gas consumption has dropped to nearly nothing.  I’ve bought gas for my vehicle twice in three months; my husband hasn’t had to buy gas at all.  We find we’re happier with more time at home.  Whenever things are more normal, we don’t plan to be as busy, which means less gas consumption.

Our Emergency Fund Is Not Large Enough

We’ve been working on building our emergency fund from a tiny $1,000 to a six-month emergency fund.  When the pandemic hit in mid-March, we had a two-month emergency fund.  While that’s certainly better than a $1,000 emergency fund, I really wish it was larger.

We’re lucky that my husband was able to keep his job and work from home, but he did get a pay cut.  While we have rearranged the budget to accommodate the pay cut, we won’t be able to grow our emergency fund like we had previously.  And, depending on the way this pandemic rides out, we’re both aware that he could lose his job next year.  I’d feel much more confident if we had a bigger cushion.

Final Thoughts

These three are what the pandemic has taught me about our spending.  I’m quite sure when this pandemic is over, our family won’t go back to the way things were.  I think we’ll drive a little less and try to save even more.

How has the pandemic changed the way you look at and spend money?