Month: July 2019

Should I Pay Off Low Interest Rate Student Loans or Should I Invest?

Should I Pay Off Low Interest Rate Student Loans

Having graduated from college in the recent past, at one point or another, you will have to clear your student loans. Making a choice between having to invest and paying off your student loan may be challenging. Each path has shortcomings and advantages which may affect one’s life Economic experts and former graduates have different opinions about which one should be given the upper hand. Below is a brief discussion of the benefits and disadvantages of each decision.

Benefits of Paying Off Your Student Loans As Soon As Possible

a)  It Is Easier To Focus On One Agenda At Single Time

Having to focus on two big agendas can drain you financially if you are not adequately prepared. Focus on the loan and, in no time, you shall have clear your loan and steer away to invest in your field of choice. When you are done paying the loan, you shall have learned how to focus on a goal for best results.          

b)  Early Payment Reduces The Interest Rates Charged On Your Loan

Your loan obligations start to reduce the moment you commence your student loan repayment. A good repayment record goes a long way in cutting down the interest rates on your loan. The low-income rates are better than investments opportunities which have low-interest rates per annum.

c)  You Can Dedicate More Funds Towards Clearing Your Student Loan

By halting other projects which can wait for example the investment opportunities, you get to clear your loans faster to get the freedom to focus on other projects. The freedom you get allows you to invest more aggressively with adequate funds.

d)  Clearing Your Debts Boosts Your Self-Esteem

Debts accrued tend to taint our public images. When you pay off your student loan, you boost your confidence as you gain more independence. By the time you are done, your confidence also increases at your place of work as you have covered all the education charges.

e)  You Get More Control Over Your Finances

Managing finances can be a challenging task for the most individual on a payroll. By having a fixed allocated amount for paying off your student loan, you learn to allocate the remainder of your income to sustain you until you receive your next paycheck. When you are done, you have the liberty to choose any sector of your choice to invest your income.

Tips: Should I Pay Off My Student Loans Early? check expert advice from nerdwallet

Disadvantages of Focusing On the Payment of Student Loans

a)      The Payments Made Are The Same

No matter how soon you start making the payments, you shall have to make the required minimum monthly payment. The minimum monthly payment does not disappear until you have fully paid your debt. The total amount may be slightly higher than the loan amount.

b)      You Miss Out On The Time Value Of Money

Low-interest student loans can take a very long time to have the payments made completely in full. The long time is part of your window period to make an investment. You may realize that you have not yet invested a dime for your future life.

c)      You May Be Broke For A Long Time

Hefty payments made to clear your student loans will take a huge percentage of your income. You may have to end up being broke long before the payday is near. You shall need to learn the essentials you need to balance your paycheck.

Advantages of Investing Before Paying Off the Loan

a)      Your Money Grows

When you invest any amount of your money in a field with good returns, your money gets the opportunity to grow. In a few years’ time, you shall be better off financially and at a later point, you shall be having a bigger portfolio to show it.

b)      You Get Closer To Your Life Goals

Early investment opportunities and choices are a clear pathway towards achieving your set life goals. The earlier you start to achieve your life goals, the more you get the motivation to invest more and create a bigger portfolio.

c)      The Earlier you Invest the Better

The best time for investment is around 20-30 years according to most specialists. Invest at the slightest niche you get. A student’s loan is not a debt which you can easily evade. At one point in time, you shall have to make the full payment in order to clear your name.

d)      You Can Raise Enough Money To Pay Off The Loan

Investing in a great market gap will earn you more income. More income from your investments increases the size of your portfolio. At this juncture, you are able to clear your loan arrears in a single pay installment and remain financially safe.

e)      You Start Building Your Future Securities Early

The process of making payments for your low-interest student loans slightly puts one’s life on hold. By taking the early opportunity to invest in the field of your choice, you have the opportunity to unbuckle your life. You are able to move on with your life as you desire.

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Disadvantages of Investing Before Clearing Student Loans

a)      The Though Can Haunt You

The low student loan debt can haunt you for several days to come. In some instance, this may dent your self-esteem and confidence at work. The only medicine to get it out of your head is by making your payments. The record constantly appears next to your financial records.

b)      You May Lose Your Money

An investment is an opportunity which has two possible outcomes. A bad investment opportunity may led to the loss of huge amounts of money which would have been used in other projects. One of the projects is the repayment of your low-interest rate student loan you owe.

Tips: Invest Funds Vs. Pay Off Debts: What’s the Difference? Know more details from Investopedia

What Is The Possibility Of Paying Off The Loans As You Invest?

By doing both simultaneously, one arrives faster at financial freedom having made more money from investments. A better portfolio record is maintained as both moves in a healthy manner.

The major setback of investing while paying the low-interest rate student loans is the need to raise more money to cover both projects. The time taken to clear the loan may be longer.

Conclusion

Both decisions have an impact on your financial status and future life goals. Most people have tried the move of paying off their student loans while investing at the same time and reported desirable results like financial independence in all fronts. Choose the method that best suits your financial capabilities.

Essential Tips for Buying the Best Memory Foam Mattress

buying memory foam mattress

Is it your first time to consider the act of using a memory foam mattress? Well, you just made the very best decision. We will have you covered by providing you with essential tips for buying the best memory foam mattress that will guarantee you deep, restful sleep.

Typically, the memory foam mattress is thick with ultra-supportive material that holds the sleepers’ body nicely. It cradles the body parts in almost all positions offering extra cushioning and comfort around the hip, shoulder, and the neck. If you desire to upgrade to a more luxurious and supportive sleeping experience, the memory foam mattress is just what you need.

Keeping reading and get to learn everything you must know before and when buying a memory foam mattress.

Evaluate various options

On first sight, you might think all memory foam mattresses are the same not unless you start evaluating them, it’s when you realize it’s never the case. Memory foam mattresses exist in different types, and each form has its benefits. When evaluating options, consider using the following tips.

  • Go for high-density foam due to firmness and longevity

All memory foam mattresses come with specific density on product information. A foam that is above 5 in scale (2.27kg) or 6lbs (2.72kg) is termed as high-density foam. Such mattress kind feels too film on the first sleep, but with time, it’s adapt to your body relieving pain on pressure points. Memory foam mattress of high density last for 8-10 years, and therefore it’s the best option 2019 on those looking for bedding that is comfortable and durable. 

  • Go for medium-density foam in case of compromise.

Middle-level foam is rated at a scale of 5 exactly (1.81-2.27kg). This kind of mattress over durability range of 8 to 10years as well. Notably, middle-level memory foam is less expensive and durable, more than high-density.

  • Choose low-density memory foam for softness and cost efficiency

The memory foam mattress is less expensive and offers you extreme nice feeling as you lie and sink inside the layer. This mattress has a density range of 3lb (0.91-1.36kg), but its durability is short-lived since it covers about 4-6 years.

  • Countercheck the ILD rating on mattress layers effectively.

Another indicator of mattress foam firmness is the ILD level. A memory foam with low ILD indicates it has a soft and comfortable surface while that of high ILD forms a resistance that gives support to your body and back. Ideally, what you should go for is a mattress with fewer ILDs top layer and underneath layer with high ILD so to prevent low back pain.

  • Look for memory foam with cooling layers

The memory foam material is temperature-sensitive and usually soften after coming in contact with body heat. Ideally, this is what gives it the ability to contour towards your body. Memory foam mattress manufacturers’ design mattress using different material so to increase ventilation and keep you fresh.

  • For cold surface and support, choose gel memory foam

Gel memory foam increases air circulation around the foam, giving you a cool sleeping experience. It also offers you increased balanced support on the back that helps relieve chronic back pain. It’s advisable to take note that gel memory foam only stays cool for a reduced period and heat up with time as the mattress gets worn out. 

  •  Go for a bamboo cover to protect yourself from hypoallergenic

The density of latex and that of memory foam mattress inhibits spread of microorganism that causes allergic dust such as mites. The bamboo cover helps supplement resistance since bamboo is naturally resistant to dust.

Do mattress testing at the store

Once you walk into a mattress selling store with the above tips, you need to test the mattress before purchasing. You can always use the following tips when testing a memory foam mattress.

  1.     Visit your local mattress store

Even though your plans to buy your mattress online, you need to visit the store on your local areas first. Visiting helps you make a comparison on available mattress prices with that you intend to buy online. You can as well lie down on one of the mattresses you intend to buy and have a chance to experiment the comfort. This would help you in deciding on whether to proceed or turn your mind.

  1.     Cross-examine each option keenly

When you visit the local store, you need to take your time in evaluating available mattresses. Try lying on the mattress of your choice in almost all sleeping positions evaluating if it fits your needs. Some beds inhibit movement when turning while asleep, and you will need to check on such aspects before buying.

  1.     Check for warranty

A right memory foam mattress must come with a warranty, and you need to check on it carefully. When checking warranty, look for what counts, will you be responsible for packaging as well as shipping for the mattress? An assurance that is life from the manufacturer is worthless if it’s not replicated on the seller so to benefit the buyer.  The warranty covers problems associated with the manufacturer and will not include normal wear and tear caused by the mattress user. 

  1.     Ask for a trial period and return policy

Before you take away your memory foam mattress, you should ask your salesperson if they have a return policy in case you did not like the mattress feel. Trials generally last between two weeks or a month, and you should be in a position to understand how to return policy works. 

Memory Foam Mattress Buying tips

  • When buying in a small store, negotiate the price

Local store sometimes hikes price rates on wrong reasons. To ensure you do not pay more for no purposes, you should settle for a price reduction. Largest stores, however, have relatively fixed prices hence no need to negotiate.

  •  Look for coupons

Whether it’s from a local store or online, the vendors should be able to offer coupons to customers. When you are buying online, search for coupons, and when purchasing from your local store, you can print those coupons and walk with them in the store.

  • File your receipts and warranty safely

Whether you bought your mattress online or your local store, keeping records is essential. They act to remind you of where you purchased your mattress, price, and what was the warranty, which is helpful in the future.

Conclusion

Tips for buying yourself the best memory foam mattress 2019 are extensive. Some are common as well as others depend on your budget, desire, sleeping positions, how you regularly clean a mattress, among other factors. Be sure to make the right decision by following the above tips, so to end with a comfortable sleeping experience.