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Ready or Not, The Student Loan Payment Pause is Coming to an End: 7 Must-Do’s to Secure Your Financial Well-being

Wellthi GPT

🌟 Hey there, money-savvy friends! 🌟 It’s time to talk about something important: those pesky federal student loans that have been on hold since the COVID-19 pandemic started. Brace yourselves, because starting September 1, we’ll have to resume making payments on them. 😓

During the payment pause, we enjoyed the sweet 0% interest rate, but now we’re going back to the current fixed rates. Some experts have noticed that some borrowers might not be fully prepared for the repayment phase, especially those banking on loan forgiveness. No worries, we’ll handle this together! 😬

So, let’s start with some simple steps to make this transition smoother than ever, shall we?

1️⃣ Find Your Loan Servicer: During the pause, some loan servicers merged, and your loan might be managed by a new one. Check your emails and login to the Federal Student Aid website to confirm your current servicer’s details.

2️⃣ Budget Like a Pro: A budget is your best buddy when it comes to financial planning. Assess your income sources, fixed expenses like rent and car payments, and variable costs like groceries and entertainment. Then, identify those extra expenses you can trim down a bit. Your future self will thank you! 💁‍♀️

3️⃣ Explore Forgiveness Programs: Sure, we’ve heard about the recent Supreme Court decision striking down the Biden Administration’s plan for loan forgiveness up to $20,000. However, you may still qualify for a new federal student loan relief program that was just announced July 14, known as the IDR waiver, or IDR Account Adjustment. If you’ve been repaying your loan for 20 or more years, you may qualify. Notices went out to about 800,000 recipients but more are on the way so keep an eye on your mailbox!

Although the one-time forgiveness plan is off the table, don’t lose hope if you’re a more recent borrower. If you work in qualifying government or nonprofit organizations, you might still be eligible for loan forgiveness through other programs like Public Service Loan Forgiveness (PSLF). Check it out! 

4️⃣ Explore Income-Driven Repayment: Low income? No problem! Income-driven repayment plans got your back. With payments as low as 10-20% of your discretionary income, you can keep slaying your goals while keeping your budget happy. But hey, keep an eye on the long game, as it might take longer to clear that debt. No stress, though – we’re here to cheer you on! 🙌🌟

5️⃣ No Pay, No Worries: Missed some payments? To ease the transition, the Education Department is introducing a one-year “on-ramp” period starting October 1, 2023 to Sept. 30, 2024. This means missed or late payments won’t lead to negative credit reporting or default. 🎉 So no stressing about a slip-up here and there

6️⃣ Keep an Eye on New Plans: The government has introduced the Saving on a Valuable Education (SAVE) plan, which can provide significant savings for some borrowers.  For peeps making $32,800 or less (or $67,500 for a family of four), monthly payments are slashed to $0! 🎉💸 You heard that right – ZERO! And even if you earn more, you can still SAVE big on your payments. 

7️⃣ Boost Your Income: If you’re worried about making ends meet, consider finding extra income streams. A side gig or part-time job can help you stay afloat while tackling those loan payments.

Remember, Wellthi is your ultimate partner in this financial adventure! We’ve got the resources, tools, and support you need to thrive. Together, we’ll crush those loans, save for the future, and celebrate every milestone.🎉 Your financial success is our joy, and we believe in you, fabulous friend!💕 Let’s unleash the #FinancialWarrior in you!🌟

Stay inspired, stay savvy, and stay tuned for more amazing tips and tricks from Wellthi – your bestie for all things financial! 🤗✨

DIG DEEPER

  1. Federal Student Aid Website: Stay up-to-date with all things related to your federal student loans by visiting the Federal Student Aid website. You can find your loan servicer, access important documents, and get the latest updates on repayment options. 🎓👉 studentaid.gov
  2. Public Service Loan Forgiveness (PSLF) Help Tool: If you’re looking into PSLF, use the PSLF Help Tool to see if your employer qualifies and get a head start on that loan forgiveness journey! 🌟👩‍🏫 Find it at https://studentaid.gov/pslf/
  3. SAVE Repayment Plan Info: Want to know more about the exciting Saving on a Valuable Education (SAVE) Plan? Get all the deets and eligibility info on the Federal Student Aid website. It’s time to save big on those payments! https://studentaid.gov/announcements-events/save-plan
  4. IDR Waiver Account Adjustment: How to Qualify and Get Your Loans Forgiven Faster.https://www.studentloanplanner.com/idr-waiver-how-to-qualify/
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Rise Above Lifestyle Inflation and Achieve Your Financial Goals

Wellthi GPT

Let’s talk about lifestyle inflation, or as we like to call it, “lifestyle creep.” It’s that sneaky phenomenon where your spending starts to rise as your income increases. Before you know it, you’re caught up in a whirlwind of upgraded coffee runs and daily lunches out. But don’t worry, we’ve got your back! Wellthi is here to guide you towards financial success while having a blast with your friends. Let’s dive into this exciting topic and learn how to conquer lifestyle inflation like the financial rockstars we are!

Picture this:  a few years ago, you were making $30,000, packing your lunch, and indulging in a takeout coffee every now and then. Fast forward to today, and you’re rocking a $45,000 salary. But now, you find yourself buying lunch almost every day and sipping on takeout coffee three times a week. Whoa, that’s lifestyle inflation in action! NPR’s Life Kit podcast has some fantastic examples of lifestyle creep that you can relate to. It’s time to take control and unleash your financial potential!

Now, here’s the deal. It’s not a crime to splurge a little here and there, as long as it aligns with your budget. But excessive spending might just mean that lifestyle inflation has snuck into your life. And guess what? It can hinder you from achieving those amazing financial goals you’ve set for yourself. Say you want to build up a savings cushion to avoid relying on credit cards during the holiday season. Lifestyle creep might drain that cushion before you even get a chance to make it cozy.

But fear not, our financial warrior! We’re here to help you determine if you’re in the lifestyle inflation danger zone. Let’s break it down step by step:

  1. Track your finances like a pro: To understand your spending behavior, you’ve got to know where your hard-earned money is going. Take a peek at your bank records, credit card statements, and other financial records. Pro tip: If you’re already a fan of money-tracking or budgeting apps, you can download your spending data in a jiffy!
  2. Debt check-in time: The more debt you’ve got, the tougher it becomes to pay it down, especially if lifestyle inflation has sneaked its way into your life. Take a good look at your bank and credit card statements. If the amount you’re paying toward debt has shot up, it might be a sign that you’re spending more than you earn and relying on credit cards or other forms of debt to make ends meet.
  3. Discretionary spending analysis: Time to organize your spending into categories like housing, clothing, food, and transportation. Now, compare your spending habits month to month. Do you notice any significant differences? Small increases due to property tax hikes are fine, but if your spending on discretionary items like eating out, shopping sprees, and entertainment has skyrocketed, lifestyle inflation may have made itself comfortable in your life.
  4. The nitty-gritty of expenses: Apart from analyzing the amounts you spend on discretionary items, take a closer look at what you’re specifically splurging on. For instance, imagine you recently got a job promotion and a raise. You need a new vehicle, and instead of going for a similar model, you decide to treat yourself to a luxury ride. Sounds familiar? These choices can be telltale signs of lifestyle creep.
  5. Saving goals under the microscope: Time for some introspection! Are you making progress toward your financial goals? Have you managed to squirrel away at least $1,000 in your emergency fund? Or have you treated yourself to a dreamy vacation without relying on a credit card? If your income has increased, but you’re still struggling to save or make headway on your financial goals, lifestyle inflation might be the sneaky culprit.

So, how can you stay one step ahead of lifestyle inflation? Let’s unravel a few strategies:

  • Keep tabs on your spending: When you track your spending diligently, those small changes in your finances become crystal clear. Before adding new expenses or altering your spending habits, ask yourself if they align with your bigger financial picture.
  • Automate for success: Set up automatic deposits to your savings account to effortlessly reach your financial goals. You can also automate loan or debt payments to make sure you’re prioritizing your financial well-being.
  • Embrace the power of budgeting: If you’ve received a promotion or a raise, calculate how much extra dough will land in your pocket. Then, create a new budget that aligns with your increased income. Smart budgeting is key to keeping lifestyle inflation in check.
  • Don’t forget to indulge: A tight budget might tempt you to rebel and overspend. Instead, set aside a little money each month for guilt-free splurges or impulsive buys. This way, you can enjoy life within your means while still achieving your financial goals.

Now, let’s talk about what drives this whole lifestyle inflation phenomenon. Social factors often play a significant role. Ever heard of “keeping up with the Joneses”? It’s all about comparing yourself to others and feeling the need to match their spending habits or possessions. But remember, your happiness doesn’t depend on what others have. Don’t let envy dictate your financial choices. Take a moment to reflect and understand that what you see on social media isn’t always real life. That glamorous vacation might not bring you true joy, and those glossy ads might be more about the sponsor’s payday than your well-being.

So, my financial superstar, go ahead and enjoy the fruits of your labor. You’ve earned it! Just remember to tread carefully and live within your means. With a little self-reflection and some mindful budgeting, you can turn lifestyle inflation into a tool that propels you toward a brighter financial future.

And guess what? We’ve got your back every step of the way. Download Wellthi, and embark on your financial journey with friends by your side. With Wellthi, achieving your goals is as rewarding as it gets!

DIG DEEPER

The 8 Best Budget Apps for 2023– NerdWallet

What Is Lifestyle Inflation?– The Balance

Can Your Lifestyle Inflation Keep Up With Investment Inflation?– Financial Samurai

“Financial Independence: The Road Less Traveled” – Mr. Money Mustache  

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Embrace the Side Hustle Revolution: 5 Reasons to Supercharge Your Finances

Wellthi GPT

Hey there, money-savvy mavens! Are you ready to take charge of your financial destiny and unleash the power of side hustles? In this era of endless possibilities, your career job can be your side hustle and vice versa. Thanks to technology and innovative services like Etsy, eBay, AirBnb, DoorDash, and Uber, thousands of part-time “hustlers” are flourishing. But what if I told you that your side hustle could actually lead to a career change? Let’s dive in and explore the exciting world of side hustles and how they can supercharge your financial goals!

According to a recent SunTrust survey, a whopping 81% of Americans with a side gig dream of turning it into a full-time venture. Talk about ambition! Even if going full-time isn’t your ultimate goal, having a side hustle can still work wonders for your bank account. Over half of Americans (54%) have tried their hand at a side hustle, raking in an average of $8,794 extra per year. That’s some serious dough that can fuel your dreams, fulfill your desires, or even kiss those pesky debts goodbye.

Millennials are the true champions of side hustles, earning a staggering 20% more per year ($10,972) compared to Gen Xers ($8,791) and a jaw-dropping 46% more than Boomers ($5,892). What drives these go-getters to embrace side hustles? Well, for our millennial rockstars, it’s all about stacking up those savings (46%). Meanwhile, Gen Xers and Boomers see side hustles as a means to fund their leisure activities (43% and 47%, respectively).

Brian Ford, a financial well-being executive at SunTrust, summed it up perfectly: “There’s a reason the gig economy is so hot – it can be fun and financially fruitful.” So, if you’re feeling stuck in your current career, itching to explore new horizons, or simply in need of some extra cash, it might be time to embark on a side hustle adventure. Buckle up, because we’re about to give you the lowdown on why side hustles are the hottest trend for go-getters like you!

  1. It’s your money-making secret weapon: Let’s face it, we despise debt. Side hustles provide a fantastic opportunity to earn that extra moolah and bid farewell to financial burdens. Plus, as you embark on your side hustle journey, why not acquire new skills along the way? Strengthening your skillset is like giving yourself a superpower!
  2. Time is on your side: Don’t be fooled into thinking that side hustles require an enormous time commitment. With a little creative scheduling and reevaluation of your daily routine, you can easily free up an hour a day or five hours a week. That’s more than enough time to earn an additional $450 to $800 per month, depending on your gig. Plus, think of it as an opportunity to indulge in a service or skill that brings you pure joy.
  3. Side hustles are for everyone: You’ve got the drive, the passion, and the work ethic—now it’s time to cash in on it! Side hustles are not exclusive to a select few; they are for anyone with the desire to make a difference. They offer an ideal platform to build confidence, test new skills, and even establish a small clientele that could support your entrepreneurial dreams.
  4. Welcome to the future of earnings: The way we earn money is evolving. It’s no longer solely based on the time we put in, but rather on the value and worth we bring to the table. Digital nomads have shown employers the power of remote work, and now it’s your turn to showcase your skills through a side hustle. By doing so, you’ll be directly compensated for the value you provide, making way for greater net worth and financial independence.
  5. Embrace the tech revolution: We live in a time where technology knows no bounds. With the internet and mobile technology at our fingertips, the possibilities are endless. Whether you’re selling, writing, marketing, analyzing, or problem-solving, technology empowers you to achieve your objectives like never before. So seize the moment, ride the wave, and let technology pave the way to your side hustle success!

Ready to take charge of your financial destiny? Embrace the world of side hustles, where dreams become reality and financial freedom awaits. Start hustling, my friend, and let Wellthi be your partner in achieving your goals. Together, we’ve got this!

DIG DEEPER

  1. Using side-hustle income to boost your finances-https://www.britannica.com/money/gig-economy-side-hustle
  2. What is the Gig Economy-https://www.techtarget.com/whatis/definition/gig-economy
  3. 2023 Side Hustle Statistics-https://www.luisazhou.com/blog/side-hustle-statistics/
  4. The boom in self-employment and side hustles could transform the entire economy-https://www.businessinsider.com/what-self-employment-side-hustles-mean-for-economy-2022-4?r=US&IR=T
Wellthi side hustles

Fashion Your Future: Transforming Side-Hustles into a Fabulous Financial Runway

Wellthi GPT

👠 The economic world is getting a style makeover! The little black dress of side hustles is now an essential accessory in your financial wardrobe, according to a 2023 survey from LendingClub and PYMNTS. They reveal that Americans are strutting a cool $52 billion a month from side jobs, with almost half of us taking up an extra gig.

👜 Like a versatile clutch that takes your outfit from office-chic to cocktail-ready, the right side hustle can amp up your earning potential. But let’s face it, in the era of Instagram influencers and gig economy, these side jobs have become the Nike of our work-life mix, complementing our primary occupation, and fitting snugly with our dynamic lifestyles.

💄 Balancing your love for your side job with the need to earn extra income can be a tricky task, akin to finding the perfect red lipstick that suits every occasion. You may love crafting your handmade knits, but if you only sell one every month, it might be time to re-think your strategy.

Did you know? By creating goals and sharing them in public with your friends and family, you’ll increase your chances of success! You can download the Wellthi app here, if you act by July 3, you could win $10,000 for just posting your financial goal in the app!

👒 Before stepping into this side-hustle fashion show, consider tax and legal implications, and ensure you’re not strutting into conflict with your employer’s policies.

👗 Want to start your hunt for the perfect side hustle? Check out “part-time” and “remote” options on job boards like LinkedIn and Indeed. Turn your living room into a runway by starting your own small business, though keep in mind, the payoff might take a few seasons.

🛍️ Now, let’s talk shop. Here are seven chic online side hustle ideas for you to try on:

  1. AI Prompt Writer: Just like that casual look you took hours to put together, getting great results from AI may look easy but it’s not. Jump into the newest job fashions by studying tutorials available for free online.
  2. Online data rater: With AI everywhere, this job is as trending as bucket hats this season.
  3. Turn hobbies into a side hustle: Like a bespoke outfit, customize your hustle to your unique skills and interests.
  4. Online tutoring: Share your knowledge and give back to the next generation. Platforms like TutorMe and Preply offer $16-$25 per hour, much like a coveted pair of vintage Levi’s.
  5. Freelance designer: Showcase your creativity with platforms like Fiverr, much like showcasing a dazzling statement necklace at a party.
  6. Online customer service or chat support: Provide a worldwide service from your living room, as flexible as your favorite wrap dress.
  7. Part-time bookkeeping: A secure remote job for smaller businesses, akin to the comfort and reliability of your favorite pair of sneakers.

🎀 In the spirit of Wellthi, remember, your financial journey is a marathon, not a sprint. Just as Carrie from “Sex In The City” took her time to choose the right Manolo Blahniks, take your time to choose your side hustle. Our goal here at Wellthi is to help you be the financially savvy boss babe you were born to be. Remember, confidence and a clear financial path are the best accessories you can wear. So, let’s step up and strut our way to financial freedom together!

Don’t forget to download the Wellthi app here, if you act by July 3, you could win $10,000 for just posting your financial goal in the app!

Go Deeper

24 Side Hustle Ideas: Make Extra Money in Your Spare Time (Shopify)

How to Turn Your Side Hustle Into Your Full-Time Job (The Cut)

Want to start a side hustle and earn extra money? Here’s how to launch a lucrative business and bring in six figures (Insider)

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