Let’s Talk About Prosper…

While researching different p2p (peer to peer) lending platforms, I learned that the two most popular and mainstream options are Lending Club and Prosper. They have similar set-ups and goals, but they certainly differ in their requirements to be a lender. They’re both great, it just depends on how much money that you have to start off with. Lending Club requires a starting amount of $1,000.00. That also means that you could start to make a decent monthly return (don’t forget that return includes BOTH principal payment and interest together, not just interest). My financial situation does not allow for me to have a free $1,000.00 hanging around…yet. I’ll get there eventually. Patience is key in the financial improvement world when you have little to start with. In comes Prosper. Honestly, I know more about Prosper than Lending Club simply because I am able to invest with them. Prosper only requires a first deposit of $25 and the minimum to invest in a loan is $25.

So yay! You’ve ready to invest your first $25 into a loan! Where do you start? What’s your game-plan going to be? Don’t know yet? Neither did I, and I’m still learning and growing. Bear in mind this one awesome detail: you don’t have to fun an entire loan by yourself (and in my opinion you probably shouldn’t). You can put in as little as $25 per loan. These loans are funded by a large group of investors, not just one, so it’s less risky if you invest in many loans with smaller amounts, than one loan with a larger amount. How do you choose which ones to invest in? It’s tempting when you get on the list of available loans and you see that D grade loan with a 23% interest rate that looks so attractive…soooooo attractive. Then you see the A grade loan next to it that looks…not quite as attractive. You think to yourself: really? 7%? Ugh. But there’s something important about the difference between these two loans and it’s a huge deal when you can’t afford to lose any money. As attractive as that high interest loan might seem…it may not be the best option for you…or it could the be that the A grade loan isn’t right. I’ll tell you why.

 

When Prosper vets’ borrowers they have a multi-step process. Borrowers enter information about their finances including their income, what the loan is for, etc. Prosper also tells the individuals funding the loan valuable information that could sway an investor one way or another. Prosper rates each loan based on historical statistics of loans of its kind. The ratings go from 1-11, with 11 being the more secure loan to invest in, and 1 being the riskiest (according to Prospers algorithm). Personally, I know that people make mistakes just like I have, so I give a little wiggle room when it comes to the grade and I generally accept 7 or higher. I think about it like this: on paper I did not look that great in the past, but I’d not default on paying a private loan to anyone, as I know that people work very hard for their money just like me. Therefore, I know that Prospers number grade may not encompass the entirety of that borrower. Even with their advanced systems they can’t avoid a borrower who may default on their loan who may have a great numbered grade. It’s unfortunate, but it’s true. Then I look further because I need more info to decide, but Prospers grade is a good starting point. I’ll let that info sink in for now.

I know it’s a whole world of financial possibility that I’ve introduced you to, and we’ll talk about the next steps in my consequent posts. Remember, you can always message me questions and I’ll get back to you asap!

 

P.S. Also, please remember to consult a certified financial advisor when it comes to the big decisions that you need help with. Although I have knowledge in this area, I would not pretend to be an expert. Happy financial improving! 😊Holding-Hundred-Dollar-Bills_4460x4460

Let’s Talk About Finances…

I can hear the collective groan now…do we, as artists really have to think about finances? Well, first of all, we’re still people, too, so the answer is: yup (unfortunately). I know that money and art don’t necessarily go hand in hand (I’m there with ya). I would like to share some information and tips that I have learned in the last year or more to help my fellow artists (and anyone who’d like assistance) to better their lives by improving their financial portfolio. Now, I am not a financial advisor or a guru of some sort, so please get professional help if need be and look at your finances with an advisor. These are simply the musings of an artist trying to get by!

About two years ago I was financially flailing. My credit score was about 1-200 points lower than it is now, and I came to the realization that a low credit score was really harming my ability to pay off a credit card that I’d gotten when I was young (and how that debt got there: that’s another story filled with me having no idea about the repercussions, aka interest, of my actions when I was younger). This debt has followed me around for years. Since I had such a high interest rate that was forcing me to throw money down the toilet every month, I decided that I needed to start working on improving my credit so that I could better my situation gradually. I also knew that I’d be moving out on my own at some point and that my credit would need to be elevated. Ah, being an adult. IT WAS DAUNTING. So…I started researching ways to slowly incorporate better financial strategy in my life.

The first step…is the hardest one: grabbing the bull by the horns and combing through your statements to see where you can begin to curb your spending. For me it’s been my Starbucks habit (I now only go once a week and I’ve cut my spending down from about $200+ to $50-$60 per month, at most). So yay! I get a special date with myself once a week and I get to keep more money, too! I know, it’s painful, but you can do it, as well! Think about it this way: for me that’s about $1,680 in savings per year…that could definitely pay a few monthly bills! What do you do that slowly demolishes your pay? The second step: still pretty daunting, but very liberating once you face it.

The 2nd step is to find out if you’re eligible for a credit card. I recommend applying for a secured credit card if you’re ready because they are designed to help those of us who are re-building our credit health. The way they accomplish this is by only having a very small credit limit (mine with Capital One was $200) so you don’t go overboard with your spending. It’s a great way to practice changing your habits while having a safer system than a regular credit card. There are lots of offers out there, but I recommend using Capital One because it comes with an easy to use set of tracking tools. The app allows you to see exactly how much credit you have and have used. It also informs you about your financial health by consistently showing you your credit score, providing information about the factors effecting your credit, and giving you tips on how to improve your score. By following the steps suggested, you can start to build your confidence in your financial setup. I have come to find out through my own experience how important and beneficial this is. In the last two years I have grown financially and I’ve realized many things, but one of the most important things I came to realize is that it is very expensive to not have money. Having a great credit score means that you will be offered better deals on financial products, especially interest rates. Interest rates are where the bank gets your money. With high interest rates you end up paying the bank more money in the long run because you have a low credit score. With a higher credit score the bank gives you a lower interest rate, and you end up paying less money in the long run than you would have otherwise. Weird, right? It seems backwards, but I hope to inspire you to think outside the box and turn the cycle back in your favor as I am trying to do on my end as well.

These ideas are just scratching the surface and there is more to come. Stay tuned and have a great day!

 

Disclaimer: please do what is best for you financially. My tips and ideas have worked well for me, but each situation is different. For personal advice please go to a financial advisor and find out your options.

My Process

Thank goodness for Starbucks…I’m always brainstorming new business ideas, blog posts, and how to succeed in life! To check out one of my newest ventures please look at etsy.com/shop/millennialpets and “like” my store! You’ll get updates frequently, and access to some FABULOUS deals that are tough to find elsewhere! Plus…if you have any questions about e-commerce and how to run your own store I’ll be happy to help. 🙂

My Process

Thank goodness for Starbucks…I’m always brainstorming new business ideas, blog posts, and how to succeed in life! To check out one of my newest ventures please look at etsy.com/shop/millennialpets and “like” my store! You’ll get updates frequently, and access to some FABULOUS deals that are tough to find elsewhere! Plus…if you have any questions about e-commerce and how to run your own store I’ll be happy to help. 🙂

Let’s Talk About Finances…

I can hear the collective groan now…do we, as artists really have to think about finances? Well, first of all, we’re still people, too, so the answer is: yup (unfortunately). I know that money and art don’t necessarily go hand in hand (I’m there with ya). I would like to share some information and tips that I have learned in the last year or more to help my fellow artists (and anyone who’d like assistance) to better their lives by improving their financial portfolio. Now, I am not a financial advisor or a guru of some sort, so please get professional help if need be and look at your finances with an advisor. These are simply the musings of an artist trying to get by!

About two years ago I was financially flailing. My credit score was about 1-200 points lower than it is now, and I came to the realization that a low credit score was really harming my ability to pay off a credit card that I’d gotten when I was young (and how that debt got there: that’s another story filled with me having no idea about the repercussions, aka interest, of my actions when I was younger). This debt has followed me around for years. Since I had such a high interest rate that was forcing me to throw money down the toilet every month, I decided that I needed to start working on improving my credit so that I could better my situation gradually. I also knew that I’d be moving out on my own at some point and that my credit would need to be elevated. Ah, being an adult. IT WAS DAUNTING. So…I started researching ways to slowly incorporate better financial strategy in my life.

The first step…is the hardest one: grabbing the bull by the horns and combing through your statements to see where you can begin to curb your spending. For me it’s been my Starbucks habit (I now only go once a week and I’ve cut my spending down from about $200+ to $50-$60 per month, at most). So yay! I get a special date with myself once a week and I get to keep more money, too! I know, it’s painful, but you can do it, as well! Think about it this way: for me that’s about $1,680 in savings per year…that could definitely pay a few monthly bills! What do you do that slowly demolishes your pay? The second step: still pretty daunting, but very liberating once you face it.

The 2nd step is to find out if you’re eligible for a credit card. I recommend applying for a secured credit card if you’re ready because they are designed to help those of us who are re-building our credit health. The way they accomplish this is by only having a very small credit limit (mine with Capital One was $200) so you don’t go overboard with your spending. It’s a great way to practice changing your habits while having a safer system than a regular credit card. There are lots of offers out there, but I recommend using Capital One because it comes with an easy to use set of tracking tools. The app allows you to see exactly how much credit you have and have used. It also informs you about your financial health by consistently showing you your credit score, providing information about the factors effecting your credit, and giving you tips on how to improve your score. By following the steps suggested, you can start to build your confidence in your financial setup. I have come to find out through my own experience how important and beneficial this is. In the last two years I have grown financially and I’ve realized many things, but one of the most important things I came to realize is that it is very expensive to not have money. Having a great credit score means that you will be offered better deals on financial products, especially interest rates. Interest rates are where the bank gets your money. With high interest rates you end up paying the bank more money in the long run because you have a low credit score. With a higher credit score the bank gives you a lower interest rate, and you end up paying less money in the long run than you would have otherwise. Weird, right? It seems backwards, but I hope to inspire you to think outside the box and turn the cycle back in your favor as I am trying to do on my end as well.

These ideas are just scratching the surface and there is more to come. Stay tuned and have a great day!

 

Disclaimer: please do what is best for you financially. My tips and ideas have worked well for me, but each situation is different. For personal advice please go to a financial advisor and find out your options.

Let’s Talk About Finances…

I can hear the collective groan now…do we, as artists really have to think about finances? Well, first of all, we’re still people, too, so the answer is: yup (unfortunately). I know that money and art don’t necessarily go hand in hand (I’m there with ya). I would like to share some information and tips that I have learned in the last year or more to help my fellow artists (and anyone who’d like assistance) to better their lives by improving their financial portfolio. Now, I am not a financial advisor or a guru of some sort, so please get professional help if need be and look at your finances with an advisor. These are simply the musings of an artist trying to get by!

About two years ago I was financially flailing. My credit score was about 1-200 points lower than it is now, and I came to the realization that a low credit score was really harming my ability to pay off a credit card that I’d gotten when I was young (and how that debt got there: that’s another story filled with me having no idea about the repercussions, aka interest, of my actions when I was younger). This debt has followed me around for years. Since I had such a high interest rate that was forcing me to throw money down the toilet every month, I decided that I needed to start working on improving my credit so that I could better my situation gradually. I also knew that I’d be moving out on my own at some point and that my credit would need to be elevated. Ah, being an adult. IT WAS DAUNTING. So…I started researching ways to slowly incorporate better financial strategy in my life.

The first step…is the hardest one: grabbing the bull by the horns and combing through your statements to see where you can begin to curb your spending. For me it’s been my Starbucks habit (I now only go once a week and I’ve cut my spending down from about $200+ to $50-$60 per month, at most). So yay! I get a special date with myself once a week and I get to keep more money, too! I know, it’s painful, but you can do it, as well! Think about it this way: for me that’s about $1,680 in savings per year…that could definitely pay a few monthly bills! What do you do that slowly demolishes your pay? The second step: still pretty daunting, but very liberating once you face it.

The 2nd step is to find out if you’re eligible for a credit card. I recommend applying for a secured credit card if you’re ready because they are designed to help those of us who are re-building our credit health. The way they accomplish this is by only having a very small credit limit (mine with Capital One was $200) so you don’t go overboard with your spending. It’s a great way to practice changing your habits while having a safer system than a regular credit card. There are lots of offers out there, but I recommend using Capital One because it comes with an easy to use set of tracking tools. The app allows you to see exactly how much credit you have and have used. It also informs you about your financial health by consistently showing you your credit score, providing information about the factors effecting your credit, and giving you tips on how to improve your score. By following the steps suggested, you can start to build your confidence in your financial setup. I have come to find out through my own experience how important and beneficial this is. In the last two years I have grown financially and I’ve realized many things, but one of the most important things I came to realize is that it is very expensive to not have money. Having a great credit score means that you will be offered better deals on financial products, especially interest rates. Interest rates are where the bank gets your money. With high interest rates you end up paying the bank more money in the long run because you have a low credit score. With a higher credit score the bank gives you a lower interest rate, and you end up paying less money in the long run than you would have otherwise. Weird, right? It seems backwards, but I hope to inspire you to think outside the box and turn the cycle back in your favor as I am trying to do on my end as well.

These ideas are just scratching the surface and there is more to come. Stay tuned and have a great day!

 

Disclaimer: please do what is best for you financially. My tips and ideas have worked well for me, but each situation is different. For personal advice please go to a financial advisor and find out your options.

Who Owns Your Money?

I get excited every time I go to deposit money in the bank. That may sound a little too much, and maybe it is, but it’s the truth. I like seeing the numbers go up. For a moment I forget that very soon those numbers will go dooooooowwwwnnnn. Rent, health insurance, credit card bills, medical bills, school bills, voice lessons, acting classes, they all take so much money. It can be very overwhelming sometimes. There’s a sense of pride when we see the numbers going up in our accounts, and rightfully so! We’ve worked hard! You know, this is kind of an uncomfortable thought, though…if you think about it, that money’s not really ours. It may be for just a moment (and enjoy it), but in the end, it’s not ours to own. It comes and goes. It’s frightening at the end of the day once you realize that the actual amount of that money that you’ll get to enjoy for YOU is very minimal. Money, in some part, can be compartmentalized in our lives. I’ll explain.

I have struggled with money for a long time. It seems that my bills are always higher than what I make. I decided to try an experiment recently. I dedicated every shift at my job to paying off specific bills. Rent came first, then school loans, etc. I began to think of the money that I was making as not my money, but the landlords’ money, the loan organizations’ money, and so on and so forth. It was a harsh way to think about it, but it really opened my eyes to just how much was MY money. Compartmentalizing my money helped me take care of the essentials first, and then I could see how much I had left for anything else. Someday I hope to not have to do that, but in reality I’ve come to realize that money is very much based on a mindset: how we think about it has a lot to do with how we handle it. How do you think about the money you make? Is it yours? How do you compartmentalize? I’m very curious and I’d love to hear your thoughts in the comments section. Happy reading!

Let’s Talk About Finances…

I can hear the collective groan now…do we, as artists really have to think about finances? Well, first of all, we’re still people, too, so the answer is: yup (unfortunately). I know that money and art don’t necessarily go hand in hand (I’m there with ya). I would like to share some information and tips that I have learned in the last year or more to help my fellow artists (and anyone who’d like assistance) to better their lives by improving their financial portfolio. Now, I am not a financial advisor or a guru of some sort, so please get professional help if need be and look at your finances with an advisor. These are simply the musings of an artist trying to get by!

About two years ago I was financially flailing. My credit score was about 1-200 points lower than it is now, and I came to the realization that a low credit score was really harming my ability to pay off a credit card that I’d gotten when I was young (and how that debt got there: that’s another story filled with me having no idea about the repercussions, aka interest, of my actions when I was younger). This debt has followed me around for years. Since I had such a high interest rate that was forcing me to throw money down the toilet every month, I decided that I needed to start working on improving my credit so that I could better my situation gradually. I also knew that I’d be moving out on my own at some point and that my credit would need to be elevated. Ah, being an adult. IT WAS DAUNTING. So…I started researching ways to slowly incorporate better financial strategy in my life.

The first step…is the hardest one: grabbing the bull by the horns and combing through your statements to see where you can begin to curb your spending. For me it’s been my Starbucks habit (I now only go once a week and I’ve cut my spending down from about $200+ to $50-$60 per month, at most). So yay! I get a special date with myself once a week and I get to keep more money, too! I know, it’s painful, but you can do it, as well! Think about it this way: for me that’s about $1,680 in savings per year…that could definitely pay a few monthly bills! What do you do that slowly demolishes your pay? The second step: still pretty daunting, but very liberating once you face it.

The 2nd step is to find out if you’re eligible for a credit card. I recommend applying for a secured credit card if you’re ready because they are designed to help those of us who are re-building our credit health. The way they accomplish this is by only having a very small credit limit (mine with Capital One was $200) so you don’t go overboard with your spending. It’s a great way to practice changing your habits while having a safer system than a regular credit card. There are lots of offers out there, but I recommend using Capital One because it comes with an easy to use set of tracking tools. The app allows you to see exactly how much credit you have and have used. It also informs you about your financial health by consistently showing you your credit score, providing information about the factors effecting your credit, and giving you tips on how to improve your score. By following the steps suggested, you can start to build your confidence in your financial setup. I have come to find out through my own experience how important and beneficial this is. In the last two years I have grown financially and I’ve realized many things, but one of the most important things I came to realize is that it is very expensive to not have money. Having a great credit score means that you will be offered better deals on financial products, especially interest rates. Interest rates are where the bank gets your money. With high interest rates you end up paying the bank more money in the long run because you have a low credit score. With a higher credit score the bank gives you a lower interest rate, and you end up paying less money in the long run than you would have otherwise. Weird, right? It seems backwards, but I hope to inspire you to think outside the box and turn the cycle back in your favor as I am trying to do on my end as well.

These ideas are just scratching the surface and there is more to come. Stay tuned and have a great day!

 

Disclaimer: please do what is best for you financially. My tips and ideas have worked well for me, but each situation is different. For personal advice please go to a financial advisor and find out your options.

The Savvy City and How To Get By

So…who’s ever been in financial trouble? Our generation seems to be plagued by a never ending circus of bills that pile up, one on top of the other; ever antagonizing you. Sound familiar? I’m definitely a victim of this…so recently I got fed up with the system and having very little control over my money. After all, I did work for it, right? So I figured it was about time that I took responsibility for my finances. So here goes: my very intelligent boyfriend told me about Capitol One 360 Savings…and after researching it…I decided to sign up…it has a .75% APY interest rate…so, for the first time…I’ll have the opportunity to see my savings really grow…We will see how it works out! There are no minimums and a much higher interest rate than my current situation…so I encourage anyone of my generation to take a look at solely online banks because you may be able to save a lot more via this option…but be sure and research it before doing anything!!!!!!