Are you wondering should I start a blog? Have you been thinking about starting a blog for a while? Maybe you’re trying to find a way to make extra money?
Today, I want to share why I love blogging so much, and how much it has changed my life over the years. My story may answer your question of should I start a blog.
A lot of people wonder if I started blogging to make extra money.
The truth is that I had no idea you could make money blogging when I started Making Sense of Cents.
I was so clueless when I first started my blog. And, it seemed like a very random thing when I first heard about blogging, but I decided to go ahead and create a blog of my own.
Making Sense of Cents was started simply as a way to keep track of my own personal finance journey. Most people in my life didn’t even know I had a blog.
It’s so funny to think back to when I first started my blog, but I’m so glad I gave blogging a chance. I can’t imagine how different my life would have been if I didn’t have this website.
I was just like you, asking myself should I start a blog. I realized there was no good reason not to, so I learned how to start a blog. It completely changed my life, and I’m so glad I gave it a try!
Because of how blogging changed my life, I love telling others about it. That’s exactly what I’m doing today if you are on the fence about starting a blog.
Blogging helped me pay off my debt, quit my regular job, travel full-time, and more. The best part is that I love what I do. And, as you can tell from my business income reports, I now earn a great living from my blog.
Related content to should I start a blog:
- How To Start a Blog Free Course
- How we went from $0-$10,000/month blogging in less than a year
- Your Top Questions Answered About How To Make Money Blogging
- How To Start A Successful Blog In 10 Steps
- Your Top 14 Tax Questions For Bloggers and Digital Nomads Answered
I first learned about blogging when I was reading a magazine that featured a personal finance website in one of the articles. I had no clue what they were talking about, but I was interested. I also knew that I needed to make a change because it felt like money was controlling my life.
I knew I wanted to be in control of my financial situation and pay off my student loans.
But, I did not create my blog to make extra money to pay off my student loans. Like I said, I had no clue that you could even make money from a blog. My blog was a hobby and outlet that helped me journal about my finances. It helped me keep track of my finances so I could stay motivated.
I quickly realized how much I loved blogging!
Then in October of 2013, I left my day job and became a full-time blogger. I had only been blogging for a couple of years, and it felt so good to turn it into my full-time job.
Learning how to create a blog has completely changed my life for the better, and it’s something that I recommend everyone try if they are wondering should I start a blog.
Blogging changed my life in ways such as:
- I now love what I do and look forward to working each day.
- I am able to help others improve their financial situation.
- It will allow my husband and I to retire early.
- Both me and my husband were able to leave our day jobs.
- It helped me pay off my student loans.
- We now split our time between a camper van and sailboat and travel full-time.
- I have a flexible schedule.
- I’m my own boss.
- Blogging gives me freedom.
There are many reasons to start a blog, and I have found it to be well worth it.
So, if you have ever wondered should I start a blog, today’s post will help you decide if it’s right for you. Spoiler: You’re going to want to start a blog!
Here are reasons to start a blog.
Blogging is a lot of fun.
Before I started blogging, I never gave it a single thought. Like I said, I didn’t even know that they existed, let alone that it would be fun work.
Now that I’ve been blogging for several years, I can’t imagine not being a full-time blogger.
I enjoy helping others improve their financial situation, reading blog posts from others, finding new people to talk to, working on my blog, and especially writing.
I love waking up each morning to work, and I no longer dread work like I did when I had my day job. Blogging is both challenging and rewarding, as there is always something new to learn and you can reach many people through your blog.
You can help others.
If you’re wondering should I start a blog, think about your story, what you’ve been through, and how it can help others.
Even if you think your story isn’t extreme, I’m sure someone in the world would find it inspirational and helpful.
Even though I didn’t realize it would happen when I first started my blog, I have been able to help many people over the years, including myself!
Your blog can definitely help others, and without a blog your story never would have reached them. You may help them by showing them a new idea, help them improve their finances, create recipes, manage their life better, and more.
For example: My blog posts help and motivate others to improve their financial situation as well as their overall lives.
I have received many emails over the years from readers who have used my advice and motivation to pay off debt, save for retirement, start a business, and more, and it makes it all worthwhile.
It’s affordable to start a blog.
Blogging is a very affordable hobby, side hustle, or business to start.
In fact, it’s one of the most affordable businesses to start.
If you are interested in taking the steps to learn how to create a blog, I have a tutorial that will help you create a blog of your own for cheap, starting at only $2.75 per month for blog hosting (this low price is only through my link). In addition to the low pricing, you will receive a free website domain (a $15 value) through my Bluehost link if you purchase at least 12 months of blog hosting.
This means that you may be able to start your blog for less than $50 a year. I started my blog with super cheap blog hosting, I designed it myself (even though I had no experience ever doing something like that), and more. I did pretty much everything myself so that I could save money, and while it was a learning experience, it was well worth it.
I spent less than $100 total for the whole first year of Making Sense of Cents.
You can be your own boss.
With blogging, you can be your own boss. Keep that in mind if you are asking should I start a blog, as it’s one of the most positive parts of blogging. You can decide what type of business you’ll run, your schedule, your goals, and more.
I never had dreams of being my own boss. I always thought I’d work for some corporation.
Then, I started blogging and realized how much I love being my own boss.
I love being in complete control of what I do, and becoming self-employed may allow you to feel that way as well. I enjoy deciding what I will do each day, creating my own schedule, determining my business goals, handling everything behind the scenes, and more.
I actually have a rule in my life/business that says I don’t do anything unless I want to. While I still say yes to many amazing opportunities, I’m not doing anything that feels like a total drag or is against my beliefs. This has really helped improve my work-life balance, which is great because being able to choose how you earn a living amounts to making sure you love everything you do.
I honestly love each and every service I provide – writing online, networking, interacting with readers, and more.
Running an online business (and being your own boss) may not be for everyone, but it’s something I enjoy.
Having a flexible schedule is amazing.
One of the best things about working for yourself and being a blogger is that you can have a flexible schedule.
I can work as far ahead as I want to, I can create my own work schedule, and more.
I love being able to work for a few hours in the morning, do something fun during the day (such as a hike or a lunch with friends), and then work later at night when I have nothing planned. I can also schedule appointments during the day, and it’s really no big deal.
I can work at night, in the morning, on the weekends – I can work whenever.
You don’t need previous experience to be successful.
In order to become a blogger, you don’t need any previous experience. You don’t need to be a computer genius, understand social media, or anything else.
These are all things that you can learn as you go.
Nearly every single blogger was brand new at some point, and they had no idea what they were doing.
I’m proof of that because I didn’t even know that blogs existed when I started Making Sense of Cents, and I definitely didn’t know that bloggers could make money. I learned how to create a blog from the bottom up and have worked my way to where I am today. It’s not always easy, but it’s been rewarding!
With blogging, you’ll have a lot to learn, but that doesn’t mean it’s impossible. It’s challenging, but in a good way!
Blogging can allow you to travel and/or work from home.
Another great benefit of creating a blog is that you can work from wherever you want.
Because of blogging, I was able to sell my house in 2015 and have been traveling full-time ever since. It’s great knowing that I can work wherever I want.
Plus, having no commute is really amazing!
You can make a living blogging.
If all of the positives above aren’t great enough, you can actually earn a living by blogging.
No, not every single person will become a successful blogger (it’s NOT a get-rich-quick scheme), but I know many successful bloggers who started in a similar way as I did – blogging as a hobby and it just grew from there.
For me, I have earned a high income with my blog, and I have enough saved to retire whenever I would like. I am still working on my blog, though, as I enjoy what I do.
You can earn money while you sleep.
One of the things that I love about blogging is that the things you do now can help you to earn somewhat passive income, such as through affiliate marketing.
With affiliate marketing, I can promote products that I already use and love, while earning a living from it even when sleeping.
I recommend checking out my online course for bloggers, Making Sense of Affiliate Marketing. I share my exact strategy and tips in this very informative online course. If you’re a blogger, then you NEED this course.
Blogging is a great platform for freelancers.
Should I start a blog if I have another business already?
If you are a freelancer, blogging can also help you land freelance gigs, such as speaking, virtual assisting, staff writing positions, book deals, and more.
By having a blog, people can find you easily, they can see a sample of your work, learn about you, and more. Without a blog, people may never find out about the services you offer.
There’s a ton of valuable free resources.
One of the great things about starting a blog is that there are a ton of FREE guides out there that can help you get started. So, if you are wondering should I start a blog if I’m on a low budget, you don’t have to spend much money at all to get started.
In fact, I didn’t spend any money in the beginning in order to learn how to blog – instead, I signed up for a ton of free webinars, free email courses, and more.
The resources below will help you create your blog, come up with blog post ideas, grow your blog income, design your website, learn how to share your website in order to grow your page views, and more.
- First, if you don’t have a blog, then I recommend starting off with my free blogging course How To Start A Blog FREE Course.
- Affiliate Marketing Cheat Sheet – With this time-saving cheat sheet, you’ll learn how to make affiliate income from your blog. These tips will help you to rapidly improve your results and increase your blogging income in no time.
- 8 Easy Tips To Make Money From Sponsored Posts On Your Blog – Sponsorships on your blog are a great way of earning a living online. Learn how I made my first blogging income, and how I’m now making $10,000-$20,000 a month with sponsored partnerships! This is a free cheatsheet.
- The Beginner’s Guide to Branding Your Blog – If you have a new blog, or if you are stuck in the design phase, this freebie will help you to brand and design your blog.
- 120 Awesome Blog Post Ideas – Are you struggling to come up with new content for your blog? Here are 120 great blog post ideas that will help you beat writer’s block and create great content.
- Facebook Ads For Bloggers 101 – This free training will show you how to increase your blog’s traffic with Facebook ads. This is the top area I’m working on this year, and I recommend you do the same!
- The SEO Starter Pack (FREE Video Training)– Level up your SEO knowledge in just 60 minutes with this FREE 6-day video training.
Is it a good idea to start a blog in 2020?
2020 is a great time to start a blog.
Trust me, people were saying the same thing when I first started Making Sense of Cents – that people who started in 2011 were starting too late and that no one would earn money blogging if they started when I did.
However, that wasn’t the case then or now.
The online world is still so new, and each year there are new ways to monetize and grow your blog.
For example, it wasn’t until the past couple of years that companies and advertisers started realizing the value of online influencers, such as bloggers, and that means even more opportunities to earn money blogging.
Before that, it was mainly celebrities that companies advertised with, but now, it is actually shifting to bloggers and other online influencers (such as Youtubers and Instagrammers!).
The online world is a huge place, and it is just going to keep growing. Every blogger earns a living in slightly different ways, and everyone has a different message and story. Plus, there are so many different ways to earn money blogging, and I expect that the options will continue to grow.
Of course, because the blogging world keeps changing, there will constantly be new things for you to learn, but that will probably always be the case for managing any kind of business.
If blogging is so great, then why doesn’t everyone do it?
I hear this pretty often. I also get a lot of people asking me: If it’s so easy, why don’t you just start multiple blogs and make even more money?
Blogging is not printing money.
It’s not a scam, and it’s not a get-rich-quick scheme.
Learning how to earn money blogging is work, and just like with all jobs – not everyone wants what you want.
And, for every successful blog out there, there are probably hundreds of bloggers who will never earn money blogging. While you can earn money blogging, not all bloggers will.
It would be like saying that 100% of people who start a business will see success. That is just never going to happen – businesses fail, business owners have a change of heart, and others just don’t find it enjoyable.
I know I am always talking about the positives of blogging, but I also like to mention how it’s not the easiest.
After all, if blogging was easy, then everyone would do it and everyone would make thousands of dollars a month.
But as you know, that’s not the case.
Not everyone is going to earn money blogging because it is WORK! Most new bloggers quit just a few months in. A few months is not enough time to see if your blog will be successful. It took me six months before I started to earn money blogging, and I only earned $100.
It’s funny and weird to think about what life would be like if I would have quit back then.
I’m constantly learning something new when it comes to blogging, and that is why I enjoy it so much.
Once you realize that blogging is hard, you will be ahead of 99% of everyone else in the game. Don’t assume, like most people do, that blogging is easy or a get-rich-quick scheme.
Starting a blog can be difficult. But, all bloggers start at the same point.
I remember being so lost when I first started my blog. After I asked myself should I start a blog, I had to learn everything the hard way – it sure was difficult at times.
But, I have always really enjoyed blogging. I think that is so important when it comes to this type of business – you either need to have passion in your blog and/or passion in what your blog allows you to do in your free time (such as travel or spending more time with your family).
How To Create A Blog FREE Course
If you’ve been asking yourself should I start a blog and have decided to give it a try, I have created an email course for those who are interested, but haven’t made the leap yet.
Best of all, this course is free!
With this free email course, I will show you exactly how to create a blog, from the technical side (it’s easy – trust me!) all the way to earning your first income and attracting followers. Each day for seven days, you will receive an email in your inbox that will help you from the beginning as you create a successful and profitable blog.
Here’s a quick outline of what you will learn in this free 7-day email course:
- Day 1: Reasons to start a blog.
- Day 2: How to determine what to blog about.
- Day 3: How to create your own blog. This lesson focuses on creating a blog with WordPress. My tutorial makes it very easy to start your blog.
- Day 4: How to make money blogging.
- Day 5: My tips for making passive income from blogging.
- Day 6: How to grow your traffic and followers.
- Day 7: Miscellaneous blogging tips that will help you reach success.
Please sign up for my How To Start a Blog Free Course by clicking here or signing up below.
Are you interested in learning how to create a blog? Have you asked yourself should I start a blog? What other reasons to create a blog can you think of?
The post Should I Start A Blog? Here Are The Top Reasons You Will Love Blogging appeared first on Making Sense Of Cents.
Free Social Security Tool for Optimal Benefit Claiming Strategy
Update: The free Open Social Security tool has been updated to include a new “heat map” visualization that illustrates the relative values of claiming Social Security at different ages. Details here. Here is a sample graph for a couple with similar income histories and the same age:
For this situation, we see that the worst expected outcomes would occur if both individuals claimed really early. The best expected outcomes occur when one claims relatively early and the other claims relatively late.
When to start claiming Social Security to maximize your potential benefit can be a complicated question, especially for couples. There are multiple paid services that will run the numbers for you, including Social Security Solutions (aka SS Analyzer) and Maximize My Social Security, which cost between $20 and $250 depending on included features.
Mike Piper of Oblivious Investor has created a free, open-source calculator called Open Social Security. To use the calculator, you will need to your Primary Insurance Amount (PIA). This amount depends on your future income, so I would first consult this other free Social Security benefit estimator tool to more easily estimate your PIA. I believe the value you see at SSA.gov assumes that you will keep working at your historical average income until your claiming age (which won’t be the case for us).
Here are our results as a couple, assuming we were the same age (we are close) and with my expected benefit being slightly higher than hers:
The strategy that maximizes the total dollars you can be expected to spend over your lifetimes is as follows:
You file for your retirement benefit to begin 12/2047, at age 70 and 0 months.
Your spouse files for his/her retirement benefit to begin 4/2040, at age 62 and 4 months.
The present value of this proposed solution would be $657,749.
Basically, the tool says that my wife should apply as soon as possible, while I should claim as late as possible. I believe this is because this scenario allows us claim at least some income starting from 62, and if I die first after that, my wife would still be able to “upgrade” to my higher benefit.
I am not a Social Security expert, and am not qualified to speak to the accuracy of the results. However, Mr. Piper is the author of the highly-rated book Social Security Made Simple, has a history of doing thorough work, and the tool has been around a while now. If I were close to 62, I would probably also use the paid services for a second and third opinion. Why? Spending $100 now could save you many thousands in the future.
The best thing about this free tool is that it can introduce a lot of people to ideas that they would have not otherwise considered. Even if it lacks every bell or whistle, being free means it can help more people. Many spouses wouldn’t think of having one claim as early as possible (age 62), and then have the other claim as late as possible (age 70). It’s not common sense unless you understand the inner workings of Social Security.
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How to Update Address in Aadhaar without Documents
Have you recently shifted to a new city or got married, but you don’t have any proof of address? Do you want to update your address in Aadhaar but do not have documents? Don’t worry, the Unique Identification Authority of India (UIDAI) provides you with the facility of updating your address in Aadhaar online even without submitting the documents. It can be done in simple steps as all you need is to take help from an Address Verifier and by raising a request online for an ‘Address Validation Letter’. An ‘Address Verifier’ can be a family member, relative, friend, or landlord who is willing to let you use his/her address as proof.
Read on to know how you can do the same in detail below.
Who can Update the Address in Aadhaar without Documents?
If you are someone who has recently shifted your residence to a new city or got married and shifted to your husband’s home, you can now easily update your address in Aadhaar even without submitting any documents using this online facility of Aadhaar Validation Letter.
Steps to Update Address in Aadhaar Card without Documents
To update the address in Aadhaar Card without documents, you need to follow the steps mentioned below:
Step 1: Visit the official website of UIDAI i.e. https://uidai.gov.in/
Step 2: You need to click on the ‘Address Validation Letter’ under ‘My Aadhaar’ menu
Step 3: You will be redirected to a new page ‘Request for Address Validation Letter’
Step 4: Now, you have to enter your valid 12-digit Aadhaar number or 16-digit Virtual ID
Step 5: Enter the ‘Captcha Code’ for verification and click on ‘Send OTP’ button
Step 6: Enter the 6-digit OTP sent to your registered number or 8-digit TOTP and then click on the ‘Login’ button
Step 7: Once done, you need to share the ‘Verifier Details’ i.e, enter your ‘Address Verifier’s Aadhaar number’
Step 8: An SMS will be sent to your verifier with a link on his/her registered mobile number to give consent for the update
Step 9: Once the verifier clicks on the link and he/she receives another SMS for the verification of OTP
Step 10: Enter the OTP sent on the registered mobile number and captcha code for verification
Step 11: Once it is verified, you will now get a Service Request Number (SRN) through an SMS
Step 12: Now, log in with ‘SRN’, preview address, edit local language (if required). Tick mark the declaration and then click on the ‘Submit’ button
Edit the address in the local language and click on the ‘Save’ button
Step 13: Now tick against the declaration and ‘Submit’ your request
Step 14: You will now receive the ‘Address Validation Letter‘ with the ‘Secret Code’ sent to the verifier’s address via post
Step 15: You will have to revisit the ‘SSUP’ (UIDAI) website and click on the ‘Proceed to Update Address’ link
Step 16: Once again login with Aadhaar and select ‘Update Address via Secret Code’ option
Step 16: You have to enter the ‘Secret Code’. Once done, preview the new address and click on the ‘Submit’ button
For your better understanding, let us try to understand the entire process with the help of an example:
Consider you (Person X) are someone who recently shifted from Mumbai to Delhi. You urgently want to update your current address on your Aadhaar card, but you don’t have any valid documents.
In such a case you can contact your friend/relative/employer (Person Y) or anyone who has a valid Aadhaar Card to become your Address Verifier. Now, Person B has to only provide his Aadhaar number and only his address will be automatically collected from UIDAI’s database.
Please take a look at the image below to know the process that Person B can help Person A to get his/er address updated:
Note: In the above-mentioned image step 2 is all about verifier and steps 1, 3, and 4 are about the resident who wants to get his/her address updated.
How to Check Aadhaar Address Update Status without Documents?
You can check Aadhaar Address Update Status without documents by following the steps mentioned below:
Step 2: Enter your 12-digit Aadhaar Number
Step 3: Enter URN or SRN
Step 4: Enter the ‘Captcha Verification’ Code
Step 5: Click on the ‘Check Status’ button
Step 6: You Aadhaar Update status will now reflect on your screen
Things to Keep in Mind while Updating Address without Documents
- The process involves an application by the applicant, approval/consent by the verifier, final submission by the applicant and use of secret code to complete the process
- You can update your address multiple times in Aadhaar Card, but your address must be the same in which you are currently residing in
- Service Request Number (SRN) is generated when you initiate an Aadhaar Address Update request through the validation letter and Update Request Number (URN) is a 14-digit number which you get once you successfully complete the process of online address update and the same is sent via SMS to your number
- The validation letter with secret code is sent to you at the verifier’s address
- You will receive your updated Aadhaar letter on the updated address or you can also download from https://eaadhaar.uidai.gov.in/#/
- Your mobile number and your verifier’s mobile number must be registered with Aadhaar Card
- You will not be able to edit the verifier’s name as it is pre-filled under the c/o field
- You will receive the letter within 30 working days from the date of raising the request
Security Concerns for the Aadhaar Address Verifier
In case you are an Aadhaar Address Verifier, it is quite obvious that you would be concerned about your demographic and biometric details. UIDAI has taken care about it and none of your details would be shared with the resident apart from the address. All your demographic and biometric details would be safe and secure. Under this process, no other data of any verifier would be used and updated into the resident’s Aadhaar. So, if a trusted person in your knowledge is in need of an address update, you can provide it easier to that person. In case you fail to give consent within the set time frame then you will have to start the process once again.
An Aadhaar card is considered as one of the important documents that act as a proof of identity (POI) as well as Proof of Address (POA). It contains all your demographic details including your residential address which makes it mandatory for you to have an updated address in your Aadhaar card. It can be done with the convenience of your home through the online process and now even with the option of not submitting your documents.
The post How to Update Address in Aadhaar without Documents appeared first on Compare & Apply Loans & Credit Cards in India- Paisabazaar.com.
Can The PPP Loan Affect Your Credit Score?
(The following is a transcription from a video my real estate agent, Jake Blount, and I recorded. Please excuse any typos or errors.)
Can the Paycheck Protection Program (PPP) Loan negatively affect your credit score?
And, can it prevent you from getting approved for a mortgage?
It seems the answer is yes.
I wanted to understand this better. So, I sat down with my real estate agent, Jake Blount, to discuss how to work through this if you got the PPP loan and are trying to get a mortgage (or other loan).
We will be providing some information that just may help you avoid your credit score being affected negatively by the PPP loan, and help you get that loan approved.
We welcome you to view our discussion with our SeedTime community, here:
Below is a the transcript from our conversation:
The PPP Loan
Bob Lotich: I have my friend and real estate and Jake here and we were chatting the other day and I got the PPP loan and he said, “Hey, fun fact about the PPP loan, it can prevent you from getting a mortgage.” And so I want to hear all about this. I want to hear what this situation is because I don’t think anybody knows about this. I haven’t heard about this at all. Tell me what the deal is like, what happened? What was the story here? Where are we?
It Can Prevent You From Getting A Mortgage
Jake Blount: Basically it wasn’t a client, it was actually myself. That makes it closer to home, more personal. Basically we had been planning on buying a new house for a while and renting out our current house to try to build up some rental income and kind of rental properties. And house had on the market on our street for a while and we finally were like, okay, I think this is the time it’s been on for a while. And so we were going to start to kind of go down that path. And so we’re like, great, we got our taxes done. Little bit of a rough start from the beginning of coronavirus, but we were able to get the PPP, which brings us to why we’re kind of talking about this now in the first place. Get the PPP in May, May 5th. It was the first round of getting it. Great. We got it in my bank account. I had lost a couple deals.
Bob Lotich: Got some money. Yay!
Jake Blount: Yeah, got some money. Cha-ching. Had a couple of deals fall through, so it was perfect. It got me right through the time to when some of those deals started coming back again. I had a couple of deals that were ready to close. I’m feeling good. It’s time to move forward with this purchase. And so we got our taxes done. Now it’s time to talk to the lender. Let’s get the mortgage. Verbally I talked on the phone what our income was, where we’re at, what we’re planning on doing. He’s like, “Great. “You will qualify for this no problem. Great.” All right, pumped. He was like, “All right, well, we’re going to do this thing. Let me look at your credit report.” Pull his credit report. He’s like, okay, this is fine. You know, a little $35 a month credit card, no big deal. And then he’s like, “What is this $750 a month loan?” And I was like, “Wait, what?” He’s like, “What is this maxed out $750 a month loan?” I was like, “Ah, I don’t have a maxed out 700. What are you talking about?” My first thought is somebody has frauded us.
Is Fraud The Issue?
Bob Lotich: Stolen my identity or something.
Jake Blount: Yeah, so that’s the first thing I say is, “I think someone has stolen my identity.” And he was like, “It’s happened before. We got to figure this out.” And I was like, “Where’s it at?” He’s like, “It’s at Pinnacle Bank.” And I’m like, “Pinnacle Financial Partners, that’s who I bank with.” And I was like, “Wait, I bank there.” I’m like, “Somebody stole my identity and had the audacity to pull a huge loan in my name.”
Bob Lotich: At your bank.
Jake Blount: At my bank. And so I’m totally following this whole thing of fraud or whatever, thinking that that was what’s happening. Because I’m all in thinking, I’m not thinking about the Paycheck Protection Program, which is it ended up being was the Paycheck Protection Loan was that loan because it was at the time a two year payback period. If you’re talking about a $15,000 loan with a two year payback period, so it was this massive debt on my account and totally.
Bob Lotich: Unexpected. You didn’t know it was there.
Jake Blount: Unexpected.
Is The PPP Loan Actually A Loan?
Bob Lotich: Well, and everybody gets a PPP loan because you don’t really view it as a loan because it’s forgivable and everybody I assume is going through it thinking, I’m going to get the forgiveness and it doesn’t exist as a loan.
Jake Blount: Or it did. Yeah. And so I called my banker and that was the first thing I asked him. I’m like, “Hey, what is this deal? What is going on?” And he starts laughing. I’m like, “Why are you laughing at me? I’m going through a bad time here. And you’re going to laugh at me.” And he said, he was like, “I’ve had this phone call five times this week already.” I’m like, “Really?” I was like, “What’s going on?” He’s like, well, as you’ve kind of explained some of the previous videos, the Paycheck Protection Program it changes every couple weeks they have a new thing because I’m guessing that businesses are coming back and saying, “Hey, this isn’t working for us.” And they want it to be helpful because that’s the purpose of the loan. That’s when I went on a research binger and I think this is where Bob and I, we share a common brotherhood, research.
Bob Lotich: Research. Yeah, yeah, for sure.
Jake Blount: I started reading about it and basically that’s when I kind of started finding out that it was supposedly, most small business association loans are not personal or they’re not personally guaranteed, but they are reported to the credit bureaus.
Bob Lotich: Credit bureaus.
Jake Blount: Yeah. Yeah. And this one was supposedly not going to be that way because it was this forgivable loan. It had a weird kind of payback period. That was the original intent of the loan. But then they were actually not even supposed to report it at all, but now they’re reporting it to personal credit and loan.
Bob Lotich: Wow.
Jake Blount: And that’s what affected my mortgage because they were looking at it as this is a personal guaranteed loan.
Resolving The Issue
Bob Lotich: Where did it go from there? I’m assuming you got those resolved in your case.
Jake Blount: Almost.
Bob Lotich: Almost.
Jake Blount: Yeah. I have the good news.
Bob Lotich: All right, let’s talk about the good news.
Jake Blount: Immediately I’m asking the banker, “What can we do about this?” Because we know the intention is everybody in America, everybody knows what that means and how it works. And we kind of made some suggestions about him writing a letter to the mortgage lender and saying, “This is the purpose of the loan. And so therefore we can’t consider this or we shouldn’t consider this on your personal thing. Plus it’s going to be forgiven because it was used in the right purposes.” And the lender was still, “We have rules, because of 2008 and the crashes where they used to just if you had 20% down, they’d give you any size loan. You had 20% down.” All that’s changed.
And so the good news is if your lender they’re starting to work this out because we’re kind of the first round of people who are finally starting to get back on their feet, moving forward. And they’re like, now I’m going to start looking at that house that I was going to buy in March. I’m going to start trying to look into that now in June, July, August. And so now that’s when lenders are starting to figure it out. My lender personally, at Movement Mortgage, he said that they actually are at the very top writing a letter that kind of states what this is to send to the underwriters. And supposedly the underwriters are going to accept it. I don’t know because my banker also said he’s had a couple people not able to get the loan because of it.
Bob Lotich: That is crazy. It’s just amazing how quickly this whole thing rolled out and all of the kind of dominoes that are falling and the negative effects of this and the fact that some people are not able to get a mortgage because of this, unknowingly. They had no idea.
Jake Blount: The banker told me that it was, they didn’t know because it wasn’t supposed to happen this way. The intention of the loan was to never be on your personal credit report.
Bob Lotich: Okay. If somebody is watching this and they’re in this situation, what do you have any suggestions?
What You Should Do
Jake Blount: Yeah. The first thing is, there’s a differentiation of when you got the loan, this may be getting too much info.
Bob Lotich: You can never have too much.
Jake Blount: But if you’re before June 5th, it was defaulted to a two year payback period. If you’re after June 5th, it’s defaulted to a five year payback period.
Bob Lotich: Okay. That’ll change things considerably.
Jake Blount: That will change things considerably because that’s a very big difference in your payment scheduling. Also, you can talk to your bank if you had it pre June 5th, which and there you can renegotiate it.
Bob Lotich: To turn into a five year or something?
Jake Blount: To five year.
Bob Lotich: That reduces your monthly payment. And that would just look better.
Jake Blount: Oh, way better need that day to come.
Bob Lotich: For the mortgage company. Okay.
Jake Blount: It looks way better.
Bob Lotich: That’s one way. And then you said, who was it? Your banker is writing a letter to the mortgage company?
Jake Blount: He said he could write a letter basically stating, this is the literal law that the banker can send to the lender to say, “Hey, this is forgivable. This is now five years. At worst case scenario, if it’s not forgivable, it’s a five year loan so it looks a lot better.” And then the third thing would be if your mortgage lenders could already be taking right steps to get this sort of situated anyways. Also, the first round of forgiveness applications, I think starting July 6th. That’s another way to get it forgiven, wiped away so that you can move forward.
Bob Lotich: Yeah, that’s great. I think the moral of the story here is that the thing is just a mess, but bottom line is some people are already in this situation and you gave us three different things we can do to kind of move forward in that. And that’s making the best of the situation we’re in.
Jake Blount: Exactly, yeah. Because this is probably going to be your window unless you’re crushing the rest of 2020, let’s hope we do. It might be a dip on your income so 2021, you might have to wait till next tax season 2022.
Bob Lotich: Yeah. All right. Well, if you’re in Nashville, you need a great real estate agent, Jake is my guy and I recommend him highly. But other than that, that’s all we have for you today. Be blessed, be blessing. See you soon.
SeedTime Money Mastery Quiz
Hey, thanks so much for watching the video. If you haven’t yet taken our Money Mastery quiz, be sure to do that.
Linda Lotich: Yeah, It’s just a super quick two minute quiz and it’s going to help you understand how good you are with your money.
Bob Lotich: Yeah, and it’s going to provide a custom report giving you specific suggestions of how you can reach your financial goals up to 10 times faster. Head over to: seedtime.com/quiz to get started now.
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