(BPT) - Sponsored Content from Vanderbilt Mortgage and Finance, Inc. The world that millennials have grown up in is a lot different than the world the Gen Xers and Baby Boomers knew. The digital revolution, widespread use of smartphones and adoption of disruptive technologies such as ride sharing and vacation rental apps are just a few of the factors that have altered the social landscape. Unfortunately, rising student debt, rising home prices and other economic factors have hit many millennials and left them to believe that they cannot afford a home. Many feel as though they have been priced out of the American dream and they will never be able to buy a home. But no matter what your age, there are plenty of ways to become a homeowner, you just have to think a little more creatively. The rise of the rental Looking at current trends, a recent research study found that more U.S. households are now renting than at any time in the last 50 years. With a rising number of renters, many have worried that we are becoming a nation of renters rather than a nation of homeowners. This is most evident with the younger generation, people under 30, who the National Multifamily Housing Council have found now account for 50 percent of all renters in the U.S. They aren’t renting because it’s a more affordable option, either. As many residents know throughout the country, rents are going up and up. Between 2012 and 2015, the median gross rent has gone up 8.24 percent, rising to $959. When you combine that with the utilities, a deposit and first and last month’s rent, it’s a lot of money to spend on something you will never own. So why do people choose to rent? One reason is that many don’t realize that just like phones, cars and countless other things we use on a daily basis, homes have changed. New priorities mean a new solution As demand for housing increases, and prices on new and existing homes continue to rise, manufactured housing has adapted to the standards of today’s first-time homebuyers and provides a solution for a market in short supply of quality, affordable options. In 2016, the average sales price for a manufactured home without land was around $70,600 — that’s an average of $48.82 per square foot — making them an affordable solution to renters looking to become homeowners. “We believe manufactured homes offer a great solution for many households seeking affordable housing,” says Vanderbilt Mortgage and Finance Inc. President Eric Hamilton. “We work with our customers to help find financing options that fit their needs and circumstances.” Renters don’t have to continue doling out a monthly check for something they’ll never own. The housing market has changed and with this change, manufactured homes have brought forth new opportunities to become a homeowner. NMLS Disclosure Vanderbilt Mortgage and Finance, Inc., 500 Alcoa Trail, Maryville, TN 37804, 865-380-3000, NMLS #1561, (http://www.nmlsconsumeraccess.org/), AZ Lic. #BK-0902616, Loans made or arranged pursuant to a California Finance Lenders Law license, GA Residential Mortgage (Lic. #6911), Illinois Residential Mortgage Licensee, Licensed by the NH Banking Department, MT Lic. #1561, Licensed by PA Dept. of Banking. You may think that creating a household budget is as simple as adding all your income and subtracting all your expenses, but there is (or should be) quite a bit more to the equation. When you only factor in your current earnings and current expenses, you’re not planning for the future. These three steps can help put you on the path toward better finances and a budget that works for your lifestyle.
3 Steps to a Budget that Works![]() (Family Features) You may think that creating a household budget is as simple as adding all your income and subtracting all your expenses, but there is (or should be) quite a bit more to the equation. When you only factor in your current earnings and current expenses, you’re not planning for the future. That means any financial goals can be easily deferred, and you may be overlooking the opportunity to shift your spending habits. These three steps can help put you on the path toward better finances and a budget that works for your lifestyle.
Beyond simply adding and subtracting a list of income and expenses, taking into account your priorities and goals can help ensure you create a practical budget that works. Find more tips for creating an appropriate financial plan that fits your personal goals and lifestyle at eLivingToday.com. Navigating a Financial Emergency Life’s financial emergencies happen, but 6 in 10 Americans cannot cover an unexpected $500 bill without selling something or borrowing money, according to Bankrate. “When you don’t have cash for something you need, there are many different financing options available. However, few realize that many of these options can lead to a debt spiral that can be difficult to pull out of,” said Richard Carrano, CEO of Purchasing Power, an employee purchase program offering consumer products and services through payroll deduction. Understanding your financing options can help ensure you make the best choice to meet your short-term needs without compromising your long-term finances. Credit cards: Chances are, even with a shaky financial history, you can find a creditor willing to offer you a line of credit, but you’ll likely have a steep annual percentage rate that accrues each month. Furthermore, if you’re unable to repay more than the monthly minimum, you could end up carrying that debt for years before it’s fully paid down. Employee purchase programs: Research shows that financial stress at home regularly impacts employee productivity at work. This leads many employers to offer an employee purchase program such as Purchasing Power, which allows you to buy what you need through automatic paycheck deductions over a 12-month period. There’s no credit check, zero interest and no hidden fees. There’s also a free financial wellness platform to help with budgeting, credit reports and personal coaching. Learn more at PurchasingPower.com. Rent to own: With rent-to-own products, you pay a monthly principal amount plus service fees and taxes for a period of time, up to completing the rental agreement and owning the item outright. While the monthly rate makes items like appliances and furniture immediately accessible, renters can end up paying as much as three times the retail value of an item. Payday/Title loans: Essentially, these loans function as a loan against a future paycheck or your vehicle. They often come with high percentage rates and fees, as well as short repayment schedules. Rely on these loans only if you can cover the entire loan and associated fees by the designated due date. Whatever option you choose for emergency financing, understanding the repercussions can help you long-term. Photos courtesy of Getty Images SOURCE:eLivingToday.com
Your washing machine suddenly breaks down, a child requires a laptop for school or your car needs new tires. Sometimes surprise bills can be difficult to cover. Understanding your options for financing larger purchases can help ensure you make the best choice to meet your short-term needs without compromising your long-term finances.How to Navigate a Financial Emergency![]() (Family Features) Your washing machine suddenly breaks down, a child requires a laptop for school or your car needs new tires. Sometimes surprise bills can be difficult to cover. Life’s financial emergencies happen to everyone, but 6 in 10 Americans cannot cover an unexpected $500 bill without selling something or borrowing money, according to Bankrate. As many as 70 percent of U.S. families live paycheck to paycheck, according to Alok Deshpande, founder of SmartPath Financial Education. In fact, less than 30 percent of families today have anything left at the end of the month to put in savings. That reality is echoed by a recent GoBankingRates survey, which revealed that 69 percent of Americans have less than $1,000 in savings and 34 percent don’t have any savings at all. “When you don’t have cash for something you need, there are many different financing options available. However, few realize that many of these options can lead to a debt spiral that can be difficult to pull out of,” said Richard Carrano, CEO of Purchasing Power, an employee purchase program offering consumer products and services through payroll deduction at the workplace. “Regrettably, circumstances and bank accounts don’t always align. That’s why it’s so important to be ‘credit educated’ – to understand hidden costs and fees associated with high-risk credit options and avoid making financial mistakes that can hound you months, even years later.” Buying items on sub-prime credit or through high-interest vehicles like payday or title loans can be risky propositions, particularly if you have a low credit score to begin with. Understanding your options can help ensure you make the best choice to meet your short-term needs without compromising your long-term finances. Consider the following: Cash: Paying cash for a major purchase makes the most sense in terms of avoiding exorbitant fees and preventing credit dings from missed payments. However, cash may not always be readily available. Credit cards: Chances are, even with a shaky financial history, you can find a creditor willing to offer you a line of credit, but you’ll likely have a steep annual percentage rate that accrues each month. Furthermore, if you’re unable to repay more than the monthly minimum, you could end up carrying that debt for years before it’s fully paid down. Employee purchase programs: Research shows that financial stress at home regularly impacts employee productivity at work. This leads many employers to offer an employee purchase program such as Purchasing Power, which allows you to buy what you need through automatic paycheck deductions over a 12-month period. There’s no credit check, zero interest and no hidden fees. There’s also a free financial wellness platform to help with budgeting, credit reports and personal coaching. Learn more at PurchasingPower.com. Rent to own: With rent-to-own products, you pay a monthly principal amount plus service fees and taxes for a period of time, up to completing the rental agreement and owning the item outright. While the monthly rate makes items like appliances and furniture immediately accessible, be wary of the long-term cost. Renters can end up paying as much as three times the retail value of an item before satisfying the terms for ownership. Payday/Title loans: Essentially, these loans function as a loan against a future paycheck or your vehicle. They often come with high percentage rates and fees, as well as extremely short repayment schedules. Rely on these loans only if you are certain you can cover the entire loan and associated fees by the designated due date. Whatever option you choose for emergency financing, understanding the repercussions can help you long-term. Main image (couple budgeting) courtesy of Getty Images SOURCE:Purchasing Power KEYWORDS
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