Neighborhood Details to Consider When Buying a Home
When it comes to investing in real estate, it’s not only the house that should be considered, but also the location, neighborhood, and everything in its proximity. Buying your first home can seem overwhelming, but it doesn’t have to be.
Before finalizing the exact home to buy, here are some helpful tips to determine if that home’s neighborhood is the right one for you and your family.
Every neighborhood has rules.
Depending on your lifestyle now, your next home may be in a neighborhood with laws that you’re completely not accustomed to. According to a recent article by real estate expert Bill Gassett, there may be restrictions on where you can park (some neighborhoods do not allow parking on the street) as well as which outdoor renovations that are allowed or prohibited on the land you own. These rules are referred to as “restrictive covenants” and can put a damper on your daily life in the new house. Learn them before you move in.
Do you have easy access to your favorite hobbies?
Another huge factor that comes into play is your new home’s proximity to favorite activities or hobbies. Many people tend to overlook what they’ll do in their downtime because they’re busy looking for a place that’s close to work or school. Don’t you want to live in a home that’s convenient for both business and pleasure? Having fun is just as important!
Know the HOA or Property Manager.
Before a decision is made, gain an understanding of the type of neighborhood you’re getting yourself into. Is it owned by a Homeowner’s Association or property manager? What are their rules? What about reviews? According to Forbes Magazine, you may be able to find reliable ratings online if it’s managed by a large company. Do your research, talk to neighbors, and read up on local news stories to determine if it’s the right neighborhood for you.
The noise factor.
If interested in a home whose neighborhood is right near a busy road, keep in mind how noisy it’ll be. There are a number of things that can cause noise around your home, such as nearby event centers, stadiums, pedestrian traffic, and crowded streets. Some people are okay with a little noise if that means they’re closer to the hustle and bustle of the city. If that’s not you, then you should probably re-think the location of your home and neighborhood.
Changes in property taxes & insurance rates.
It’s important to know that taxes and insurance can vary according to the area or county. Learn how your area handles taxes before you move in. Otherwise, it will come as an unpleasant surprise when you discover that you actually owe much more than expected. Living in this new area may also have an impact on your car insurance rates.
Wednesday, October 7, 2015
Monday, September 28, 2015
6 Financial Perks of Being a First-Time Homebuyer
From mortgage points to PMI, unlock the essential info about how homeownership affects your tax burden.
Hours after we closed on our first house, my husband and I sat in our empty new living room and stared at the walls. He was the first to speak, saying simply, “I thought it was painted.”
We learned a lot about that old house over the next 15 years, and while we knew to expect some changes, others, such as the need to paint the walls, we would figure out as we went along. That included making some adjustments to our tax forms.
All of those forms you filled out to buy your house were just the beginning. We learned that first-time homeowners have years of mortgage and insurance paperwork to look forward to, and, of course, taxes.
To sort through that pile of paperwork and make sure you’re saving as much money as possible, here are six tax benefits for new homeowners.
1. You can deduct the interest you pay on your mortgage
The home mortgage interest deduction is probably the best-known tax benefit for homeowners. It lets you deduct all the interest you pay toward your home mortgage with a few exceptions, including these big ones:
Your mortgage can’t be more than $1 million.
Your mortgage must be secured by your home (unsecured loans don’t count).
Your mortgage must be on a qualified home, meaning your main or second home (vacation homes count too).
Don’t assume that if you are married and file a joint tax return, you have to own your home together to claim the interest: For purposes of the deduction, the home can be owned by you, your spouse, or jointly. The deduction counts the same either way.
And don’t worry about keeping track of how much you’re paying in interest versus principal each month. At the end of the year, your lender should issue you a form 1098, which reports the amount of interest you’ve paid during the year.
Warning: Since, as a first-time homeowner, you pay more interest than principal in the first few years, that number can be fairly sobering.
2. You may be able to deduct points
Points are essentially prepaid interest that you offer upfront at closing to improve the rate on your mortgage. The more points you pay, the better deal you get.
You can deduct points in the year you pay them if you meet certain criteria. Included in the list (and it’s a long one): Points must be paid on a loan secured by your main home, and that loan must be to purchase or build your main home.
Pro tip: Points that you pay must also be within the range of what’s expected where you live — unusual transactions may cause you to lose the deduction.
3. For 2015, you can deduct PMI
Private mortgage insurance, or PMI, protects the bank in the event you default. PMI may be required as a condition of a mortgage for first-time homebuyers, especially if they can’t afford a large down payment.
For most years, PMI is not generally deductible. However, for 2015, qualifying homeowners who itemize may claim a tax deduction for the cost of PMI for both their primary home and any vacation homes.
4. Real estate taxes are deductible
Real estate taxes are imposed by state or local governments on the value of your property. Most banks or other mortgage lenders will factor the cost of your real estate taxes into your mortgage and put those amounts into an escrow account.
You can’t deduct the amounts paid into the escrow, but you can deduct the amounts paid out of it to cover the taxes (you’ll see this amount on a form 1098 issued by your lender at the end of the year).
If you don’t escrow for real estate taxes, you’ll deduct what you pay out of pocket directly to the tax authority.
And don’t forget about those taxes you paid at settlement. If you reimburse the seller for taxes already paid for the year, you get to deduct those too.
Those amounts won’t show up on a form 1098; you’ll need to check your settlement sheet for the totals.
5. Your other tax deductions may matter more
To take advantage of these tax benefits, you have to itemize your deductions on your tax return.
For most taxpayers, this is a huge shift: in many cases, you’re moving from a form 1040-EZ to a form 1040 to list expenses on Schedule A.
In addition to interest, points, and taxes, Schedule A is where you would report deductions for charitable donations, medical expenses, and unreimbursed job expenses.
For itemizing deductions to make good financial sense, you generally want to have more total deductions than the standard deduction (for 2015, it’s $6,300 for individuals and $12,600 for married couples). Most taxpayers don’t reach those numbers — unless they’re homeowners.
The home mortgage interest deduction, in particular, tends to tip most homeowners over the standard deduction amount, making those other deductions (such as medical expenses) that might otherwise go unclaimed more valuable.
6. You’ll get capital gains tax relief down the road
I know you just bought your home, but admit it: Resale value is something you considered when you chose your home. And different from other investments for which you’re taxed on the full value of any gain, you can exclude some of the gain attributable to your home when you sell.
Under current law, you can avoid paying tax on up to $250,000 of gain ($500,000 for married filing jointly) so long as you have owned and lived in the property for two of the last five years (those years of owning and inhabiting don’t have to be consecutive).
Gain over that amount is taxed at capital gains rates, which are generally more favorable than ordinary income tax rates.
Hours after we closed on our first house, my husband and I sat in our empty new living room and stared at the walls. He was the first to speak, saying simply, “I thought it was painted.”
We learned a lot about that old house over the next 15 years, and while we knew to expect some changes, others, such as the need to paint the walls, we would figure out as we went along. That included making some adjustments to our tax forms.
All of those forms you filled out to buy your house were just the beginning. We learned that first-time homeowners have years of mortgage and insurance paperwork to look forward to, and, of course, taxes.
To sort through that pile of paperwork and make sure you’re saving as much money as possible, here are six tax benefits for new homeowners.
1. You can deduct the interest you pay on your mortgage
The home mortgage interest deduction is probably the best-known tax benefit for homeowners. It lets you deduct all the interest you pay toward your home mortgage with a few exceptions, including these big ones:
Your mortgage can’t be more than $1 million.
Your mortgage must be secured by your home (unsecured loans don’t count).
Your mortgage must be on a qualified home, meaning your main or second home (vacation homes count too).
Don’t assume that if you are married and file a joint tax return, you have to own your home together to claim the interest: For purposes of the deduction, the home can be owned by you, your spouse, or jointly. The deduction counts the same either way.
And don’t worry about keeping track of how much you’re paying in interest versus principal each month. At the end of the year, your lender should issue you a form 1098, which reports the amount of interest you’ve paid during the year.
Warning: Since, as a first-time homeowner, you pay more interest than principal in the first few years, that number can be fairly sobering.
2. You may be able to deduct points
Points are essentially prepaid interest that you offer upfront at closing to improve the rate on your mortgage. The more points you pay, the better deal you get.
You can deduct points in the year you pay them if you meet certain criteria. Included in the list (and it’s a long one): Points must be paid on a loan secured by your main home, and that loan must be to purchase or build your main home.
Pro tip: Points that you pay must also be within the range of what’s expected where you live — unusual transactions may cause you to lose the deduction.
3. For 2015, you can deduct PMI
Private mortgage insurance, or PMI, protects the bank in the event you default. PMI may be required as a condition of a mortgage for first-time homebuyers, especially if they can’t afford a large down payment.
For most years, PMI is not generally deductible. However, for 2015, qualifying homeowners who itemize may claim a tax deduction for the cost of PMI for both their primary home and any vacation homes.
4. Real estate taxes are deductible
Real estate taxes are imposed by state or local governments on the value of your property. Most banks or other mortgage lenders will factor the cost of your real estate taxes into your mortgage and put those amounts into an escrow account.
You can’t deduct the amounts paid into the escrow, but you can deduct the amounts paid out of it to cover the taxes (you’ll see this amount on a form 1098 issued by your lender at the end of the year).
If you don’t escrow for real estate taxes, you’ll deduct what you pay out of pocket directly to the tax authority.
And don’t forget about those taxes you paid at settlement. If you reimburse the seller for taxes already paid for the year, you get to deduct those too.
Those amounts won’t show up on a form 1098; you’ll need to check your settlement sheet for the totals.
5. Your other tax deductions may matter more
To take advantage of these tax benefits, you have to itemize your deductions on your tax return.
For most taxpayers, this is a huge shift: in many cases, you’re moving from a form 1040-EZ to a form 1040 to list expenses on Schedule A.
In addition to interest, points, and taxes, Schedule A is where you would report deductions for charitable donations, medical expenses, and unreimbursed job expenses.
For itemizing deductions to make good financial sense, you generally want to have more total deductions than the standard deduction (for 2015, it’s $6,300 for individuals and $12,600 for married couples). Most taxpayers don’t reach those numbers — unless they’re homeowners.
The home mortgage interest deduction, in particular, tends to tip most homeowners over the standard deduction amount, making those other deductions (such as medical expenses) that might otherwise go unclaimed more valuable.
6. You’ll get capital gains tax relief down the road
I know you just bought your home, but admit it: Resale value is something you considered when you chose your home. And different from other investments for which you’re taxed on the full value of any gain, you can exclude some of the gain attributable to your home when you sell.
Under current law, you can avoid paying tax on up to $250,000 of gain ($500,000 for married filing jointly) so long as you have owned and lived in the property for two of the last five years (those years of owning and inhabiting don’t have to be consecutive).
Gain over that amount is taxed at capital gains rates, which are generally more favorable than ordinary income tax rates.
Sunday, September 27, 2015
Discover 7 Mortgage Pre-Approval Tips For First-Time Home Buyers
If you are a first time home buyer and need mortgage, discover our mortgage pre-approval tips to get one.
1. It’s Not The Same As Getting Pre-Qualified
Mortgage Pre-Approval
When you get pre-qualified, your lender will estimate how much you can borrow based on the financial information you supply them with. They can give you an idea of what kind of mortgage you can apply for, but they won’t actually verify your information.
When you get pre-approved, the lender is typically ready to make you a loan once they verify your information, after which you can complete an official mortgage application. The letter says that once you submit the necessary documents and make an offer on a home, your loan will be approved.
2. It Should Be One Of The First Things You Do
Things to do - Mortgage Pre-Approval
Before you fall in love with your dream home, you should probably find out if you can actually afford it. Pre-approval takes the guesswork out of searching for homes when it comes to your budget since you’ll receive, in writing, the exact loan amount available to you.
3. Home Sellers Expect It
Home Sellers - Mortgage Pre-Approval
Getting pre-approved will not only help you discover the maximum that you can borrow, but it will also help sellers take you more seriously in a competitive market. Sellers will be more likely to negotiate a sale with you if you prove to them that your finances are already in place.
4. You Need To Check Your Credit
Credit - Mortgage Pre-Approval
Source: Flickr user Simon Cunningham
Since you’ll need to provide this information to your lender, it’s a good idea to check your credit score and report prior to your pre-approval appointment. The scores will help your lender provide you with the different kinds of loans available to you.
5. Gather Necessary Financial Information
Financial Information - Mortgage Pre-Approval
Source: Flickr user Adam Rifkin
There are quite a few documents you’re going to have to bring with you to your pre-approval appointment for your lender to verify:
W-2 forms (from the past two years)
pay stubs
bank account statements
investment account statements
tax returns
other sources of income (side job, bonuses, etc.)
In addition to your financial information, your lender will also need personal information like your driver’s license and social security number, so be sure to bring those along, too.
6. Sort Out Any Remaining Conditions
Conditions - Mortgage Pre-Approval
Once you have all the information you need, the underwriting system should deliver your pre-approval letter in a matter of minutes with one of four conditions: approved, approved with conditions, suspended, or denied.
If there are more conditions that still need to be met, it probably means that there’s some missing information that they need in order to complete the process. If it’s denied, it might mean that your financial situation isn’t currently sufficient enough to take on a home loan, or maybe you need to work on your credit score.
It’s okay if you have a bit more work to do before getting the letter in hand—your lender will be able to provide you with some advice to help you meet any existing conditions.
7. The Letter Isn’t Valid Forever
Letter - Mortgage Pre-Approval
Things change, including your financial situation. A typical pre-approval letter will only be valid for 60-90 days after getting it, but since the time frame varies, be sure to ask your lender about it when you apply.
If you are a first time home buyer and need mortgage, discover our mortgage pre-approval tips to get one.
1. It’s Not The Same As Getting Pre-Qualified
Mortgage Pre-Approval
When you get pre-qualified, your lender will estimate how much you can borrow based on the financial information you supply them with. They can give you an idea of what kind of mortgage you can apply for, but they won’t actually verify your information.
When you get pre-approved, the lender is typically ready to make you a loan once they verify your information, after which you can complete an official mortgage application. The letter says that once you submit the necessary documents and make an offer on a home, your loan will be approved.
2. It Should Be One Of The First Things You Do
Things to do - Mortgage Pre-Approval
Before you fall in love with your dream home, you should probably find out if you can actually afford it. Pre-approval takes the guesswork out of searching for homes when it comes to your budget since you’ll receive, in writing, the exact loan amount available to you.
3. Home Sellers Expect It
Home Sellers - Mortgage Pre-Approval
Getting pre-approved will not only help you discover the maximum that you can borrow, but it will also help sellers take you more seriously in a competitive market. Sellers will be more likely to negotiate a sale with you if you prove to them that your finances are already in place.
4. You Need To Check Your Credit
Credit - Mortgage Pre-Approval
Source: Flickr user Simon Cunningham
Since you’ll need to provide this information to your lender, it’s a good idea to check your credit score and report prior to your pre-approval appointment. The scores will help your lender provide you with the different kinds of loans available to you.
5. Gather Necessary Financial Information
Financial Information - Mortgage Pre-Approval
Source: Flickr user Adam Rifkin
There are quite a few documents you’re going to have to bring with you to your pre-approval appointment for your lender to verify:
W-2 forms (from the past two years)
pay stubs
bank account statements
investment account statements
tax returns
other sources of income (side job, bonuses, etc.)
In addition to your financial information, your lender will also need personal information like your driver’s license and social security number, so be sure to bring those along, too.
6. Sort Out Any Remaining Conditions
Conditions - Mortgage Pre-Approval
Once you have all the information you need, the underwriting system should deliver your pre-approval letter in a matter of minutes with one of four conditions: approved, approved with conditions, suspended, or denied.
If there are more conditions that still need to be met, it probably means that there’s some missing information that they need in order to complete the process. If it’s denied, it might mean that your financial situation isn’t currently sufficient enough to take on a home loan, or maybe you need to work on your credit score.
It’s okay if you have a bit more work to do before getting the letter in hand—your lender will be able to provide you with some advice to help you meet any existing conditions.
7. The Letter Isn’t Valid Forever
Letter - Mortgage Pre-Approval
Things change, including your financial situation. A typical pre-approval letter will only be valid for 60-90 days after getting it, but since the time frame varies, be sure to ask your lender about it when you apply.
Fixer Upper Vs. Move-In Ready
Think you can save a ton of money by buying a Fixer-Upper? Look a little closer to understand all of the costs associated with buying a fixer upper.
The Advantages:
• Price: Cheaper and may have more room for negotiation.
• Location: Established neighborhoods tend be older with more wear and tear.
• Personality: Put your stamp on a house by adding finishes that speak to you.
What to Watch Out For:
• Time: Large home repairs can take as much as 2x the quoted amount of time.
• Structural Problems: Cracks in foundation, leaning walls, water damage.
• Wiring, Plumbing, Roof: Have these items been addressed in the last 30 years?
• Animals: Check for mice, roach, & termite droppings or any signs of infestation.
Is It Worth It?
Get a professional inspection, then have a licensed (and trusted) contractor look through the house with the inspecter's report in hand and provide a realistic bid. Then increase that bid price by 10-30% as no project is ever completed on budget.
Final Equation:
90% Of Expected Market Value > Purchase Price + 120% Of Bid For Repairs
Think you can save a ton of money by buying a Fixer-Upper? Look a little closer to understand all of the costs associated with buying a fixer upper.
The Advantages:
• Price: Cheaper and may have more room for negotiation.
• Location: Established neighborhoods tend be older with more wear and tear.
• Personality: Put your stamp on a house by adding finishes that speak to you.
What to Watch Out For:
• Time: Large home repairs can take as much as 2x the quoted amount of time.
• Structural Problems: Cracks in foundation, leaning walls, water damage.
• Wiring, Plumbing, Roof: Have these items been addressed in the last 30 years?
• Animals: Check for mice, roach, & termite droppings or any signs of infestation.
Is It Worth It?
Get a professional inspection, then have a licensed (and trusted) contractor look through the house with the inspecter's report in hand and provide a realistic bid. Then increase that bid price by 10-30% as no project is ever completed on budget.
Final Equation:
90% Of Expected Market Value > Purchase Price + 120% Of Bid For Repairs
Is Buying A Fixer Upper Home Right For You?
Before you go out and buy a fixer upper home, there are a few things you need to know.
Why Would You Ever Buy A Fixer Upper?
While it might seem odd to purchase a home that needs extensive repairs, people end up making tons of money by doing this all the time. Fixer upper homes can be a great investment…but they can also be a huge financial risk.
If you’re considering buying a fixer upper, there are certain things you need to watch out for. It’s all about finding a house with a low price tag that you can realistically repair for cheaper than how much you can raise the home’s value. Purchasing and fixing a house in poor condition can get you a nice profit, but it’s important to remember that it isn’t for everyone.
Things To Consider Before You Sign
1. Do Your Research!
With so much money on the line, it’s important to know everything you can about a fixer upper home prior to making your decision to purchase it or not. Look ahead into how the local real estate market is doing, as well as what permits you’ll need to make the repairs. The last thing you want is to buy a broken house in a failing town, only to realize you’ve got to jump through tons of red tape to get any of the construction done.
Not only does doing your research help you know what to ask when you’re talking with the realtor in charge of the sale, it also helps you uncover certain things that a realtor might not be telling you.
2. What Needs Fixing?
Just because a house has a low price and a good location doesn’t mean that it’s a good deal. It’s important to consider how extensive damages are to a home when you’re looking at a fixer upper.
Are the damages minor problems like paint chipping? Or are they major, like any problem with the structure or the foundation of the home? In most cases, it’s advised to avoid purchasing homes with major problems, as these often turn out to be more trouble than they’re worth.
It might cost you a little extra money up front, but hiring a own home inspector to check out the property is the best way to get a full picture of what you’re getting into.
3. Have A Plan To Fix It
In order to gauge the feasibility of repairs, determine which ones you will be able to do yourself and which ones you’ll have to hire a professional for. Consider all of the repair costs, including things like supplies and labor.
You don’t have to have the final number accurate down to the penny, but you should at least have a good idea of what ballpark it’s in. Whatever you do, try not to get distracted and pulled in by the low price tag, make sure your final goals are realistic first.
4. Can You Afford It?
Know how much money you’ve got available to put into the home and consider whether or not the purchase, plus all of the repairs, is actually doable. Nothing is worse than having to put repairs on pause for financial reasons, only to have more problems arise while you’re saving up more cash to throw right back at the house.
It’s also important to be aware of things like property taxes (they’ll go up as your home’s value rises) and realtor fees, as both of these things can end up affecting what you actually end up paying for the home.
5. Make It A Long-Term Investment
It might be obvious, but when you’re considering the purchase of a fixer upper you should look at it like a long term financial investment. This means you need to pay special attention to problems that may arise several years down the road, whether it’s a new repair you’ll have to make or the side effects of living in a neighborhood that’s falling apart.
You don’t want to spend your time and money on something that’s destined to fail. If the home inspector you hired seems a little iffy about something that could turn out to be another major problem, trust them. If a street is full of graffiti and all the windows are broken, find another area of town. Problems like these can make it very difficult to improve the market value of a home, regardless of how much money you’re sinking into it. Make sure your new potential home and the area it’s located in both have bright futures ahead prior to signing any papers.
6. Protect Yourself
Buying a fixer upper can be risky, but there are some precautionary steps that you can take to minimize the risk involved. One of the most common personal safety measures involves working contingencies into the deal in the event that previously unknown problems arise.
Things like mold, pests, and septic issues might be missed in initial walk-throughs, only to be noticed when you start to roll up your sleeves and work. If there’s something you’re worried about, find a way to include a little bit of insurance somewhere in the final deal you sign.
Quick Tips For The Open House
Check for structural damage.
Structural damage is generally considered both a major problem and a reason to avoid a certain home. Look for things like warped wood and termite damage every chance you get.
Check the foundation.
This one can be a little tricky to do without the proper tools, but some quick observations can help you determine if there’s a further need to investigate. For example, a wet basement can be a great indicator that there’s an issue there.
Know how old the wiring is.
Wiring is something that tends to wear out over time, often becoming a fire risk that requires replacement. Try to determine if the wiring is another thing you’ll need to replace.
How’s the roof?
Roof repairs can get expensive, so it’s important to know if that’s something you should be expecting or not prior to purchasing any home. Look for visible damage on the outside, as well as water spots on the ceiling inside as indicators for what condition it’s in.
Does the plumbing work?
Look for things like rust, leaks, and low pressure. All of these things can be an indicator that there’s a bigger problem. If you’re at an open house, don’t be shy. Try to test out the faucets, showers, and toilets for yourself.
How are the windows?
Not only can windows get expensive to replace, having ones that don’t seal properly will lead to much higher energy bills thanks to poor insulation. Be on the lookout for cracks, frailty, and possible rotting.
The Bottom Line
There’s a lot that goes into fixing a fixer upper. If you think you can take on the challenge, be prepared to spend a lot of time, effort, and money making the repairs. Fixer uppers aren’t for everyone and purchasing one before you’re ready can spell disaster.
Know exactly what you’re getting into and have a plan you can follow to turn a profit prior to buying anything. The more time and effort you put into determining whether or not you want to fix a home and then which home you should fix will probably correlate with how happy you’ll be throughout the entire process.
Try not to make a speedy decision unless you have to, otherwise you’ll run the risk of waking up several months later and realizing that you bit off much more than you could chew. Fixer uppers can definitely be a great investment, just make sure you put in the research first.
PRE-QUALIFIED VS. PRE-APPROVED
Pre-Qualified Vs. Pre-Approved
If a lender pre-qualifies you for a mortgage it doesn't mean that you have been pre-approved for a home loan.
Pre-Qualification: This is the initial step in the mortgage process. You speak to a lender about your overall financial health, including your debt, income and assets. After evaluation, the lender will give you an idea of the mortgage amount for which you will qualify. Pre-qualification is not very strong as it does not require a credit check and is only based on your word.
Pre-Approval: You'll complete a mortgage application including necessary documentation from certified sources. The lender will check your financial background and credit rating history. Based on the findngs, the lender will tell you a specific mortgage amount for which you are approved and provide an idea of the expected rates and terms.
If a lender pre-qualifies you for a mortgage it doesn't mean that you have been pre-approved for a home loan.
Pre-Qualification: This is the initial step in the mortgage process. You speak to a lender about your overall financial health, including your debt, income and assets. After evaluation, the lender will give you an idea of the mortgage amount for which you will qualify. Pre-qualification is not very strong as it does not require a credit check and is only based on your word.
Pre-Approval: You'll complete a mortgage application including necessary documentation from certified sources. The lender will check your financial background and credit rating history. Based on the findngs, the lender will tell you a specific mortgage amount for which you are approved and provide an idea of the expected rates and terms.
Sunday, November 30, 2014
JUST FOR FUN!
14 Daily Habits that Will Make You Smarter
Getting smarter isn't something that happens overnight. Instead, you have to build your intelligence every day through intentional daily habits.
In a recent thread "What would you do to be a little smarter every single day?" readers shared their advice on good habits you can establish. Here are some simple actions that could help you.
1. Read the newspaper. It will help you become more aware of the important things happening around the world. You'll learn to form your own opinions and connect the dots between seemingly unrelated things. You'll also have a lot more to talk about at parties or with friends. — Manas J Saloi
2. Play devil's advocate. Take something you recently learned and generate a unique opinion on it that wouldn't immediately come to mind. Try to support it with evidence, and be open to the idea that new evidence will change your opinion. Repeat this every day, and you'll become much better at thinking independently and outside the box.
If you're feeling stuck, try reading and critically evaluating the editorial section of papers. They will help you understand how other people form arguments and express their opinions. — Peter DePaulo
3. Read a chapter in a fiction or non-fiction book. Aim to read a book a week. You can always find pockets of time to read, whether on your daily commute or while you're waiting in line. Goodreads is a great way to keep track of everything you read and to also find a community of other readers.
Fiction books are great for understanding characters and getting absorbed into another perspective, while non-fiction books are great for introducing you to new topics, from politics to psychology. — Claudia Azula Altucher
4. Instead of watching TV, watch educational videos. Sometimes, it's more fun to watch things about a subject you love than to read about it, and you can learn a lot from other people's experiences.
You can find fun, educational videos. You can also find good ones on Youtube's channel SmarterEveryDay. In videos, the information is often presented in a digestible, memorable way, so you can be assured it'll stick. — Hendrik Sleeckx
5. Check in with your favorite knowledge sources. Every day, scroll through specialty blogs or any other sources that satiate your hunger for knowledge. This is an extremely easy habit because other users are curating the content for you, so all you have to do is follow the ones who write about topics interesting to you. Try using Pocket to save articles for later reading, and then try to get through them before going to sleep at night. — Manas J Saloi
6. Share what you learn with other people. If you find someone to debate and analyze ideas with, you can add to each other's knowledge and gain new perspectives. Also, when you can explain ideas to someone else, it means you've definitely mastered the concept. You can even share what you learn without directly talking to someone. Many people like to start blogs so they can engage others in online dialogue. — Mike Xie
7. Stimulate your mind. Going on a daily run or vigorous walk is a great way to get your brain flowing and to keep your mental health in shape. It's also a great way to think through difficult decisions or process new information. — Rick Bruno
8. Take online courses. Make sure you don't overload yourself; commit to one or two and truly focus on them. The syllabi will also keep you on track, so you know you will be doing something every day, whether it's listening to a lecture or working on an assignment. — Manas J Saloi
9. Talk to someone you find interesting. Even if they're strangers, don't be afraid to approach them. Ask about their interests and how they discovered them. You will often learn the most from people you barely know. — Manas J Saloi
10. Hang out with people who are smarter than you. Spend as much time as you can with them. Every day, you should strive to have a coffee date or walk with someone who inspires you.
Always be humble and willing to learn. Ask as many questions as possible. If you are often around people who are more knowledgeable than you, you'll have no choice but to learn more. — Manas J Saloi
11. Follow your questions. If you see or hear about something cool, don't just let the moment pass. Follow up; pursue your curiosity and find the answer to your question. — Mike Xie
12. Use a word-of-the-day app. You will increase your vocabulary, which can help you in competitive tests like the SAT or GRE, or even just sound more eloquent in daily interactions. -- Manas J Saloi
13. Explore new areas. If you can't travel every day at least try to find something new in your hometown. You'll meet different people, learn new facts, and understand something new about the world. It's a lot more productive than staying at home and watching TV. — Manas J Saloi
14. Play "smart" games. Some games, like chess and Scrabble, expand your mind. Challenge yourself when you play them. For example, play Scrabble without a dictionary. You can also solve puzzles via games like Sudoku, 2048, and Doors. — Saurabh Shah
By: Maggie Zhang
Getting smarter isn't something that happens overnight. Instead, you have to build your intelligence every day through intentional daily habits.
In a recent thread "What would you do to be a little smarter every single day?" readers shared their advice on good habits you can establish. Here are some simple actions that could help you.
1. Read the newspaper. It will help you become more aware of the important things happening around the world. You'll learn to form your own opinions and connect the dots between seemingly unrelated things. You'll also have a lot more to talk about at parties or with friends. — Manas J Saloi
2. Play devil's advocate. Take something you recently learned and generate a unique opinion on it that wouldn't immediately come to mind. Try to support it with evidence, and be open to the idea that new evidence will change your opinion. Repeat this every day, and you'll become much better at thinking independently and outside the box.
If you're feeling stuck, try reading and critically evaluating the editorial section of papers. They will help you understand how other people form arguments and express their opinions. — Peter DePaulo
3. Read a chapter in a fiction or non-fiction book. Aim to read a book a week. You can always find pockets of time to read, whether on your daily commute or while you're waiting in line. Goodreads is a great way to keep track of everything you read and to also find a community of other readers.
Fiction books are great for understanding characters and getting absorbed into another perspective, while non-fiction books are great for introducing you to new topics, from politics to psychology. — Claudia Azula Altucher
4. Instead of watching TV, watch educational videos. Sometimes, it's more fun to watch things about a subject you love than to read about it, and you can learn a lot from other people's experiences.
You can find fun, educational videos. You can also find good ones on Youtube's channel SmarterEveryDay. In videos, the information is often presented in a digestible, memorable way, so you can be assured it'll stick. — Hendrik Sleeckx
5. Check in with your favorite knowledge sources. Every day, scroll through specialty blogs or any other sources that satiate your hunger for knowledge. This is an extremely easy habit because other users are curating the content for you, so all you have to do is follow the ones who write about topics interesting to you. Try using Pocket to save articles for later reading, and then try to get through them before going to sleep at night. — Manas J Saloi
6. Share what you learn with other people. If you find someone to debate and analyze ideas with, you can add to each other's knowledge and gain new perspectives. Also, when you can explain ideas to someone else, it means you've definitely mastered the concept. You can even share what you learn without directly talking to someone. Many people like to start blogs so they can engage others in online dialogue. — Mike Xie
7. Stimulate your mind. Going on a daily run or vigorous walk is a great way to get your brain flowing and to keep your mental health in shape. It's also a great way to think through difficult decisions or process new information. — Rick Bruno
8. Take online courses. Make sure you don't overload yourself; commit to one or two and truly focus on them. The syllabi will also keep you on track, so you know you will be doing something every day, whether it's listening to a lecture or working on an assignment. — Manas J Saloi
9. Talk to someone you find interesting. Even if they're strangers, don't be afraid to approach them. Ask about their interests and how they discovered them. You will often learn the most from people you barely know. — Manas J Saloi
10. Hang out with people who are smarter than you. Spend as much time as you can with them. Every day, you should strive to have a coffee date or walk with someone who inspires you.
Always be humble and willing to learn. Ask as many questions as possible. If you are often around people who are more knowledgeable than you, you'll have no choice but to learn more. — Manas J Saloi
11. Follow your questions. If you see or hear about something cool, don't just let the moment pass. Follow up; pursue your curiosity and find the answer to your question. — Mike Xie
12. Use a word-of-the-day app. You will increase your vocabulary, which can help you in competitive tests like the SAT or GRE, or even just sound more eloquent in daily interactions. -- Manas J Saloi
13. Explore new areas. If you can't travel every day at least try to find something new in your hometown. You'll meet different people, learn new facts, and understand something new about the world. It's a lot more productive than staying at home and watching TV. — Manas J Saloi
14. Play "smart" games. Some games, like chess and Scrabble, expand your mind. Challenge yourself when you play them. For example, play Scrabble without a dictionary. You can also solve puzzles via games like Sudoku, 2048, and Doors. — Saurabh Shah
By: Maggie Zhang
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