personal finance

5 Ways to Achieve Your Personal Financial Objectives in 2016

February 28, 2016 by editor

Commencing from a proficient footballer to a presenter and a fiscal tutor, Chris Hogan holds a key position among personal financial experts. Having worked as the vice chair of a mortgage enterprise then advancing to aiding successful persons to manage their cash, he bids the 2016 money tip resulting from 2015 GOBankingRates “Best Money Expert” contest apprehended in partnership with Ally Bank as a contestant.

[Read: Creatively Reach Your Financial Goals]

Many people tend to overlook the compulsion of financial scheduling but since a vision without a strategy is like a wish, planning your personal financial objectives is a necessity and also a way of achieving them. Implementation of Hogan’s 2016 financial tip which involves identification of the primary financial goals to disburse arrears aids in getting your finances on trial. The steps include:

Benefits of Personal Finance Planning

Increasing your returns to gain maximum potential
Budget that corresponds to your financial objectives
Financial authority; more financial knowledge
Both Long-term and short-term financial goals that match with your life plans
Clear, logical and achievable plans to financial freedom
Strategic investment plans in harmony with your general financial plan
Enables you to track and analyze your investment, overall performance and goal achievement.
Valuation of your current financial position

1. Identify your financial goals

According to Hogan, an aim without a plan is like a pipe dream. Thus to pinpoint your financial objective, it’s important to reflect your future investment strategy as well as managing your finances to help you achieve them. Personal finance planning helps one assess their reserves hence allowing you to understand the savings required as well as the steps needed to achieve the set goals.

Also, it’s a recommendation by Hogan to set up deadlines as they enable you to perceive forthcoming milestones putting into consideration a budget that won’t hinder your success.

2. Setting up a budget

Making a financial arrangement is crucial in any money plan, basing on 2013 Gallup survey, approximately two-thirds of Americans has not yet embraced this. During budget development, it’s crucial for you to write down your regular income and expenditures such as groceries, mortgage, rent and car insurance and equate them as this will assist you to detect any extravagant spending. In an ABC interview, Hogan mentioned that reducing expense reduction is gaining popularity in that controlling one’s spending habits gives room for an elevation as it provides initials capital to save or attack debt.

3. Tackle small debts first.

As a subordinate of Dave Ramsey, Hogan is highly conversant in assisting persons to reduce their balance. He recommends confronting low-level debt first; for instance, pay off your$200 Home Depot store credit card and get it out of your life, and then change to another card.

Paying off low-balance arrears enables you to free up money which can be put forward towards an emergency reserve or other arrears. It’s also recommended that embarking upon arrears with high interest will save yourself funds which would then be engaged to interest. Care should be taken though during arrears clearance progression as you may end up increasing your monthly expenditure while trying to free up more money.

4. Build up an emergency fund.

One of the leading principles of developing an enhanced 2016 money plan is creating room for emergency funds. In relation to Hogan’s suggestion, opening a money marketing account facilitates the growth of your savings. According to Hogan, after you get out of debt, you need three to six months of money, however much it takes you to manage your home, put away in a money market account for that rainy day.

Depending on the level and nature of a job, some people struggle to make the ends meet, but that doesn’t have to limit your savings capability. All that is required is a place to dump your change as a result of your day-to-day transactions. Over time, the savings could help you curtail an unpredicted restoration or an emergency.

5. Save for retirement even when you’re behind

Thirty-six percent of American employees have less than $1,000 in reserves and investments, excluding their primary habitation or distinct reimbursements like retirement pension, according to a survey conducted by the Employee Benefit Research Institute. J.P. Morgan, nevertheless, opines you have at least $55,000 gathered for retirement by age 40 if your annual income accounts for $50,000 and above. By 50, you should have $115,000 in reserve.

For those who haven’t yet started on retirement savings, there’s less to worry about. Even though it is hard for you to hit retirement reserves spot check set on view by wealth advisers, the extra coin you reserve now will be of assistance in preventing your reliance on Social Security once you’re old. From a YouTube video, Hogan suggests that since there is plenty of time all we have to do is to get focused. He also recommends people to create additional income generating activities.

[Read: Tips To Make You Happier Financially]

Whether you lecture on the side or sell a unique expertise you possess, creating extra revenue precisely for retirement is an excellent approach to catching up when you’ve fallen behind. Focusing on the above documentation, having a plan for personal financial objectives is of great importance in managing your hard-earned money. Therefore as part of your financial strategy for 2016, focus on doing away with trifling amount overdue which tend to suppress your financial plan and establish expenditure objectives and a small backup fund, and start funding to your retirement.

Stacking Cash Back: The Way to Earn while you Shop

February 24, 2016 by editor

For all the reasons that people shop online, including presents for the holidays, birthdays and the like, it makes sense to try to get back as much as possible when shopping. This is where stacking cash back has become a popular method for ensuring that you are getting money back on the purchases that you make. These types of rewards help to give you more cash back into your wallet, making what you buy even cheaper than what you would have purchased in the store. It is just another reason why so many people are eager to shop online rather than go to brick and mortar retail locations.

[Read: Credit Card Tricks That Can Make You Money!]

How Does Stack Backs Work?

When thinking about shopping in order to ensure you are stacking cash back offers, you must first realize what this type of shopping is. Cash back offers that are stacked basically refer to several different methods for getting cash back on a purchase. Through getting all these offers, you earn more cash back, thus you stack the savings. For example, a person may shop for an item through a website that offers a percentage on whatever they purchase. In order to pay for the purchase, the person may use a credit card that earns cashback rewards. This is the exact way in which stacking cash back works.

Shopping with Cashback Sites

There are several websites that offer cashback rewards for those who utilize their service to shop online. In most cases, the website is going to have:

Numerous shops to choose from, including those major shops that most people would shop at regularly
The different stores may offer various cashback rewards. For example, one may offer 4% cash back, while another offers 12% cash back
They also offer discount and coupon codes to help save a person even more money. Though these are not stacking cash back offers, they can still be helpful in getting items for as low as possible

In most cases, once a person reaches a certain dollar amount, they will get paid for the shopping that they have completed. This amount may vary, but it may be as low as a person having to reach a $10 payout, while other sites may require $25 to be in the account before they pay. The shopping site may send you an actual paper check in the mail at the end of each quarter, or they may automatically deposit this into your PayPal account on file.

Getting the Most Cash Back Possible

There are several steps that need to be followed in order to ensure that the stacking cash back does work for you:

Step 1: Look for a cash back site and sign up

You will want to look at all of your options and decide on the one that best fits your needs. Take into consideration what stores they partner with, as well as the percentage of cash backs that they offer. You can sign up for several if you cannot make up your mind, as this is not uncommon, especially when wanting to ensure that you are getting the highest cash back that you can get.

Step 2: Start shopping

Think of what you are looking to buy and then start shopping around. The key to getting the best discounts possible is to utilize this shopping platform to earn money back, while utilizing your credit card that is going to earn a cash back reward. You will find that several credit cards will have months that they devote to online shopping and offering a higher rate back to card holders, so be sure to watch for these moments.

Step 3: Complete your purchase and watch the stacking cash back start to increase

You will want to purchase your item, with the credit card that earns you the best cash back, and then watch these rates start to compile. Though you may not get this cash back instantly, you are going to find that if you shop online frequently, that it is relatively easy to get a high amount of cash back at the end of the year or every few months. There has been people who have received thousands of dollars back due to stacking their cash back rewards.

[Read: Avoid Losing Your Credit Card Rewards]

Stacking cash back rewards is a great option for those who want to save money in the long run. They will find that they can still get great presents and items, but in the end, they are paying less for these. And who doesn’t want to get these items for less than what others are paying? For those who shop online, not doing this is the equivalent of simply giving money away. Instead, do some research and sign up for cash back rewards that are going to accumulate and end up paying you for shopping online.

To Credit Or Not To Credit: Steps For Giving Your Teens Credit

February 12, 2016 by editor

While high school students may know around the newest gadget and which social media site is hotter than hot, they are still learning about money.

Teens insert nearly $80 billion into our countries economy according to Piper Jaffray, an investment banker that studies the spending habits of America’s youth. While high schoolers have learned to be budget-conscious, deal-seeking, shopping machines as a result of their coming to age in the Great Recession of 2008, they still are a force to be reckoned with in the retail world. Companies are more inclined lure in teenagers due to the life-long loyalty this demographic offers.

[Read: Frequency Of Credit Card Use]

Thankfully, almost 85% of teens are still looking to their parents for guidance in money matters. Unfortunately, the guidance we offer is lacking. Twenty-five percent Generation Z (15 – 24-year-olds) do not know the difference between a credit card and a debit card. We need to help by;

Talking to them about money
Getting them a prepaid card
Teaching them how to budget
Getting them a checking account
Getting them a credit card
Setting a good example

We know the impact that credit history, and debt, have on a young adult’s ability to rent an apartment, get a job, and interest rate they get on a car loan. So we’ve put together some guidelines for helping teens get credit and learn about money. Whether you follow the no debt stance of Dave Ramsey or want them to own credit cards (and not vice versa) these steps will help your Gen Z-er start life on a good foot.

Giving Your Teen Credit

Talk to your teens about money

You will never be able to give your teens credit if they don’t know the first thing about finances. Don’t be the 33% of parents that don’t discuss finances with their children. They may not be ready for the pros and cons of 401(ks) and roth IRA’s but they are ready to learn about money. If you don’t feel comfortable answering all of your child’s questions, there are plenty of sources online, including MyCreditUnion.gov’s interactive games. How ever you teach your teens, they are looking to you for guidance.

Get a prepaid card

You’ve talked to your teens about money and it’s time for them to start testing the waters. A prepaid card is an excellent dry run, it won’t give your teens credit, but it will get them used to a spending limit. If you don’t want the hassle of user fees, introduce the envelope system to your teens. Whether they practice with cash or card they’ll learn; when you’re out of money, you’re out of money.

Introduce the budget

Teach your children a new B-word, budget. They’ll quickly learn that if they don’t track their expenses then they’ll continually run out of funds. If you’ve ever heard of the giving a man a fish to feed him for a day and feeding him for life. If your teen learns how to budget you aren’t just giving your teen credit, your giving your future 30-something credit. Nothing destroys credit faster than late and missed payments. Nothing prevents late and missed payments like a good budget. This tool can also be used to help your Gen Z-er to save up for particularly large purchases, like their outfit for the next school formal or prom tickets.

Open a checking account

You can find “minor” and “student” checking accounts all over the country, if your bank doesn’t offer one the bank or credit union down the street probably does. Once your teen has shown they won’t spend all of their money (see step 2) and that they are able to track and even anticipate expenses and income (see step 3) it’s time to give them more access to the cash. You’ll have two options, co-signing or giving your teenager free reign over their checking account. If you co-sign it’s easier for you to keep track of the expenses, and you’ll be the one paying if they overdraft their account.

Give your teen credit, by giving them a credit card

If you want your children to shun credit cards, skip to step 6. If you want your kids to learn about responsible credit card handling read on. Teenagers with income may be able to get their own card, if they don’t have an outside job you’ll have to co-sign. This will result in your credit card habits affecting their credit score as much as their habits will affect yours. If your teen still has trouble staying on top of his spending, or you have a negative credit habits, wait until later.

[Read: Your Credit Score Number]

Set a good example

Children do what they see more than what they’re told. Give your teen credit, by giving them insight into your financial habits.

A Guide to Establishing Stellar Credit

February 6, 2016 by editor

Credit is an extremely important thing for a financially mature adult to have. It allows you to get loans for homes and cars and rent apartments. Bad credit can increase the amount of interest you pay. People who have no credit or bad credit may struggle to get their credit to be pristine, but this guide can help make their credit score skyrocket.

[Read: 7 ways to create and improve personal credit score]

Check your Credit

Even if somebody has never used a credit card in your life, credit bureaus may have information that they have used to create a credit score. If they have had a credit card, they certainly do. There are free credit report services that can give a person their credit score. In America, there are three free credit-reporting services, so people can check their credit report three times a year by cycling between them. These services may also offer more frequent credit reports for a fee. You may find that you have a purchase that is misfiled under your name or a lingering piece of debt you forgot about. Make a habit to check your credit score regularly. In the modern financial word, the credit score forms a ladder to great purchases.

Choose Cards Carefully

Different credit cards have different options, and while signing up for the first one you see may look appealing, it may not be the best for the long term. Do some heavy-duty comparisons between choosing a card. Figure out what kind of benefits you want from your card. Some allow cardholders to earn travel rewards points, while others have no annual fee. If a person is getting their first card and establishing stellar credit, they should consider getting something with a low maximum credit so they don’t accidentally spend a lot of money at once. Be sure to read the fine print. A card that starts out with a 1% interest rate for the first six months might jump up to 12% once the grace period is over.

Work up Slowly

Getting a credit card can be difficult if you have bad credit. In that case, a secured credit card may be the best option. Secured credit cards help to establish stellar credit by having cardholders make a cash deposit before you use the card. They still have to pay every month, but they have a cushion in case they cannot pay. Another option to get a better credit score is to take out a small loan with a credit bureau and pay it back as soon as you can. The loan can be as small as $100.

Pay on Time

Always make sure the bills get paid on time. Credit reporting companies track the bills that are in your name, and if they see you are falling behind, they will count that against you. If you want to establish stellar credit, paying your bills is a good way to do that. It shows that you are a dependable, reliable person. Late payments will accrue interest, meaning you will pay more if you do not pay right away. In the digital age, there are more ways to remind yourself to pay your bills than ever before, and it’s good for your wallet and your credit score.

Mind Your Balance

Paying your creditor back is more difficult if you have a high balance. Moderate your credit card usage so you keep your balance low and pay less at the end of the month. If you have interest, know that the money you send will go to the interest before it goes to the original payment.

Keeping an eye on your balance will also inform you if somebody is using your credit card without your permission. That someone could be a scammer who stole your information or a ten year old who entered your credit card randomly when making an online purchase. Someone other than you making purchases on your account can destroy your credit score. If you find a purchase you did not make, contact your credit card provider right away. They have people that can help you resolve the issue.

[Read: Saying Goodbye To Old Credit Lines]

Focus

Establishing stellar credit takes a long time. There are times when you may be tired, upset, or stressed and want a simple solution. You could just give in and use your credit card rashly just one time. Resist that urge. The thrill you get from buying something you can’t actually pay for will crash down hard when you get the bill. One bad purchase could start an avalanche of problematic purchases that drags your credit score down. If you keep focused on the things you will be able to do once you have a good credit rating, you can overcome all of those tempting purchases. When you need that credit, you will thank yourself for being so diligent.

Your Millionaire Neighbor

January 30, 2016 by editor

We all know the really wealthy people in America are, well, most of us know who they are, not know them personally. But you know what I mean. But do you know that there are many people who are quite wealthy that live right in your neighborhood. That’s right. They are hidden in plain sight. You may even know them quite well too. These are the folks who have managed to amass a huge amount of wealth without changing their lifestyles. How did they do that?

[Read: Growing Rich: The Keys to Millionaire Status]

FACTORS TO CONSIDER

Savings
Investing
Living Frugal
Not Overspending

These are some of the common traits of the millionaire neighbor. They manage to go about their lives without much fanfare and are in complete control of their money and spending emotions to the point that they are far more wealthy than their peers and counterparts. But it is not a magical formula, it is quite easy when it is broken down. Here are some key ingredients.

THEY ARE SMART AND CAREER ORIENTED

One thing that you will notice when you look is that they are smart, not necessarily degree educated, but smart, in that they are always bettering themselves or learning something new, their jobs afford them a long career in a good paying and stable trade or craft. When they choose a job they are looking for security and stability, and one which can afford them ample opportunity to save. These are solid traits of the millionaire neighbor . In addition they are cleverly insured. Meaning they have the right kind of insurance both financial and medical to protect themselves, their property and their loved ones.

THEY ARE MODEST AND THRIFTY

They know they could, but often don’t buy flashy cars or move into new houses, they remain modest to their wealth, and respect it, they are not a slave to to their wealth, and let their money work for them. One common trait is that they really do not like to spend money, they may seem like the cheep ones, but in fact are not, they are just smart about what they pay for and what they buy, they may buy more in bulk at lesser amounts and avoid fancy high end shopping establishments, but this is due to their thrifty mentality and their alert business acumen.

They can hide easy and avoid being noticed because they are probably driving a ten year old car, and living in a nice cozy middle class neighborhood, but both their house and their cars are probably paid off, and chances are when they need a new car they will buy slightly used rather than new, and keep that car for many years, thus avoiding large payments and large insurance bills.

THEY ARE SAVERS

The power of investments and interest rates is well documented. Your neighbor millionaire is heavy saving and not spending. They invest early on in their future taking full advantage of work related savings and retirement, and they started at an early age, because they learned that the power of interest on saved money, and tax deferral is a powerful tool that they could leverage to gain high wealth.

And if they do happen to come into a large sum of money, they are quick to save and invest it rather than spend it on new things or frivolous purchases. That is one of the main characteristics of this type of millionaire, they are extremely disciplined and in control.

THEY AVOID AS MUCH DEBT AS POSSIBLE

Avoiding all debt is next to impossible for even the richest person, but a trait of the neighbor millionaire is that they avoid as much debt as possible. This seems like a real no brain-er, as we all strive to be debt free, but to truly live to that creed is hard to do. Even the wealthy have temptations. But this is where this type of millionaire is different, in that they are disciplined enough to avoid the pitfalls of unnecessary debt. They don’t let balances linger and they pay off the credit cards in full each month to avoid costly interest.

[Read: Effective Tips to Earn More]

IN CONCLUSION

Hiding in plain sight are some wealthy folks, they may seem to use very ordinary, or to some, below ordinary, they don’t drive the flashest cars, live in the biggest houses, but they do a lot of things, actually many things right. They have the traits, such as smarts, modesty, they are savers and have very little debt. They are frugal, to a fault, but are educated and keep on top of their financial well being and on the world around them. Do you possess any of these traits, and if so, how can you use them to exploit all the wealth and riches out of this world, and make yourself one the neighborhood millionaires.

How To Stop Unnecessary Spending

January 15, 2016 by editor

How do you stop spending in a time when spending and acquiring things is in the forefront of our minds. We are bombarded with adds at every turn, in the news, on television, our cell phones, our emails, there is now place to get away from the constant sales pitch. This is all designed to get you, and your money to part ways. You have to wage a good fight against these clever marketeers as they are quite skilled at convincing you to spend your hard earned money on their wares. But there are ways to fight back.

[Read: Basic Steps to Drastically Reduce Your Spending]

Factors To Consider

Your Income
Your Expenses
Your Monthly Budget
Your Spending Emotions

The raw numbers part is easy, look at your net income, your current monthly expenses and your budget get the graphs and spread sheets together and get the plan set out. Now you have to look at your emotional aspects of spending. This is where you talk yourself into buying that new jacket, or new pair of shoes, even when you already have a closet full of them. Are you buying to fill a need of some kind, are you bored, there can be many reasons why, and this is not a psychological exam, but you have to look to your motives as to why you spend.

KEEPING TRACK

You have a budget in place, but you still seem to spend more than the budget and your pay check allow each week, month and year. How is that happening, well one way is that you are not keeping track of the “little” things that keep siphoning money out of your pockets. Trips to the coffee shop, or the quick mart all add up, and are not usually earmarked in your monthly budget, keep track of all of them, keep a pad of paper with you, or record them on your smart phone, and tally all them up, you would be surprised how much extra you spend on the little things.

WHAT IS MAKING YOU SPEND

There are complex emotions swirling around in our heads each and every day, some of which make us do things that we later wish we hadn’t. It is important to try and stop to think just as you are about to spend that money on the next big thing, why you are there, what is going on in your mind that drove you to this point, is it sadness, or stress? These things can trigger you to do things subconsciously and when you are able to figure out what they are you can change that pattern, and find a new outlet for that emotion.

SURVEY THE DAMAGE

Once you have started to keep track, and you understand what triggers your spending habits you can look at past months and see what the financial damage was. This is where you then can go back to your budget and reassess the items that you have in there already, and see if there are any categories that you can cut out now, or eliminate all together. Once you have tweaked your budget you can move on armed with the knowledge of your spending habits and the triggers that get you there.

STICK TO THE BASICS

You have to rid yourself of all non essential items in your budget to get rid of the unnecessary expenses and trim that budget down. Take time to list out all those extras that you found in your budget and see if they really are that important, you can save, for example twenty or thirty dollars every week by just eliminating coffee, and making it at home. Coffee is one the worlds most popular drinks, and not coincidentally one of its most expensive to by, Starbucks ring any bells!

[Read: Stop Those Bad Spending Habits]

In Conclusion

One last thing to mention before we conclude is if you can get rid of those credit cards, they make for to much temptation and will kill any well thought out budget and spending reduction plan. When you are setting out to tighten your belt and cut out those unnecessary expenses, you should start with your raw numbers, your income, and expenses and plug those into your monthly budget. Set those out for yourself each and every day to look at and to remind you that you have to cut out the little stuff.

Sit back and contemplate your emotional state of mind when you feel the need to purchase something. In fact see what state of mind your are in even before you go the grocery store, as that can impact spending on frivolous things. There are many pitfalls and sand traps that can befall you in a grocery store, and knowing that you have a certain mind set will improve your spending habits. You can do this, good luck.

7 Faulty Financial Resolutions for the New Year

January 8, 2016 by editor

New Year’s is good for making life decisions, especially decisions revolving around your bank account. But make sure your resolutions are good ones. Millennials, the decisions you make now will follow you for years, quite possibly the rest of your life. Keep yourself and your financials secure by setting specific, prudent, and cost-efficient goals for yourself and following through with them.

[Read: How to Spend Your Tax Return This Year]

And stay away from the wishy-washy goals that sound good until you actually try them. Some are sneaky in that they appear to be beneficial but have hidden flaws. This article provides 7 faulty financial resolutions you should steer clear of today and for years to come.

1. “This year, I’ll start saving up more money.”

Nothing would be wrong with this one if people actually did it when they resolved to. The problem with saying this is that it fails to set a specific plan or amount. Starting out with such a vague, faulty financial resolution ends in frustration when you have no idea where you’re going with it.

Instead, think about what “saving more” means. Which areas will you target? Car? Living expenses? Go through and research each of them to set an educated minimum for how much you should save. Better yet, whittle these areas down to one and just focus on that—you’re likelier to succeed by picking smaller goals that aren’t overwhelming. Know your needs and set realistic goals—short term and long term—that work within your limitations.

Specific Financial Plan for Buying a Car

Take a look at a sample pricing scenario to determine your budget and see what a car purchase would look like for you. Some things to take into account are:

Down payment (20% of price)
Monthly payments (for 5 years)
Sales tax (varies)
Interest rate (varies)

2. “I’m going to focus on paying down debt.”

Just like number 1, this one looks good. But think bigger. Look at putting your money in an interest account and/or starting an retirement account. Both of these can help you out in the long run. The down debt isn’t going anywhere, so why not focus on more lucrative savings strategies and tackle the down debt after you’ve set up a secure financial situation for yourself?

In fact, financial experts specifically recommend avoiding this faulty financial resolution because certain investments can offer more than loan interest rates. Devise some savings goals for yourself before you move on to the loans.

If your savings goals are in place, you can feasibly try paying $50 or $100 more a month on your loans at this point.

3. “I’m going to wean myself off my credit cards.”

Using credit cards less can be good for you, but total discontinuation is not a good option. By following this faulty financial resolution, you are setting yourself up to rely solely on a debit card. Do this, and your money is less safe. And it doesn’t do wonders for FICO scores since it doesn’t keep credit current. A credit score-friendly alternative is to use your credit less often and buy less expensive things.

4. “I’m getting a gym membership.”

Getting more fit is a good goal—but watch out for the expenses. Gym memberships and healthy food (looking at you, Whole Foods) can get pricey, and only a faulty financial resolution supports unchecked spending. Fortunately there is a multitude of ways to eat better and get more exercise without breaking bank. Be conscious about the effect your health goals may have on your savings goals and ensure that each doesn’t interfere with the other.

Try hiking or jogging for cheap exercise alternatives, or check out free fitness classes (they’re more common than you think!) Before splurging on a gym membership, take a look at any deals on coupon websites for more wallet-friendly options.

As for food, support local. Save those supermarket coupons and start going to farmers markets. You’ll be saving money and giving back to the community at the same time.

Savings-Friendly Exercise Options (Completely Free!)

Stairs workout
Walk in the park
Habitat for Humanity work
Community tennis court
Library workout videos

5. “I’m going back to school.”

Think before you leap. A graduate degree can be beneficial depending on your field, but do your research and make sure it’ll be beneficial to you before making your decision.

Also keep in mind you have to take the GRE, which costs $195, and prep course prices can climb into the thousands. That’s something you’ll have to worry about before even before student debt.

Be positive that an extra degree will get you a better-paying job. Be prepared to deal with student debt later on down the road, and make sure the debt will be worth it.

6. “I’m going to buy a new house/car.”

Maybe you’re fresh out of school with a brand new decent-paying job, but extra expenditures of this magnitude should wait. 20- to 30-year-olds with faulty financial resolutions like this end up waddling in debt, so count yourself out.

Instead focus on building your credit history, which will be invaluable when you’re looking at mortgage and/or auto loans. If you would like to buy a house or car, start checking out down and monthly payments and build up your savings account in preparation.

[Read: How To Stop Unnecessary Spending]

7. “I’m quitting my job and starting over.”

Nobody should be miserable at his or her job, but thinking strategically is a must for career changes. Don’t act rashly. Think carefully about what you want to do instead, research the job market and income range, and start networking and reaching out to people who can help you make the switch. Start brushing up on relevant skills and get experience when and where you can to bulk up that resume. Turn a faulty financial resolution into a fruitful one and find job security in an area that makes you happy.

The Best Way to Kick-Start Your Money Resolutions For the New Year

January 6, 2016 by editor

As the new year rolls around, many of us decide to enrich our lives in numerous ways. As many of us venture towards a life of salads and gym memberships, we tend to forget about our fiscal resolutions. Dieting can be quite an expensive lifestyle change. Luckily, there’s a diet out there that can kick-start your money resolutions!

[Read: Ways to Save Money with Smart Shopping Tricks]

Why You Should Outlaw Credit and Debit Cards

We are lucky to live in a society with easy and secure access to our money through the use of credit and debit cards. We’re even given register books to manage the amount of money that goes in and out of our accounts on a daily basis. However, most people are forgoing the hour long process of jotting down every receipt in their wallet in favor of online transaction summaries that most banks provide. Debit and Credit cards are great things, don’t get me wrong. But, let’s be honest, it’s a lot easier to lose track of how much money you spend when you can’t visually see a wad of money slowly disappearing inside your wallet. Losing the credit and debit card is the perfect way to kick-start your money resolutions.

Here is a list of several reasons that switching to cash can help kick-start your money resolutions

You can actually see how much money you spend if you use cash
You can’t go into debt or procure pesky overdraft fees
You can learn how to budget better (you can’t spend cash that’s not there)
Using cash instead of card can sometimes get you better deals (think, gas prices)
There are some things that you can’t use a card to pay for
Some card types aren’t always accepted at places
You can avoid a lot of stressful disagreements with the bank-folk

How to Begin the Change to Cash-Only

The first and probably most important step is to set a budget for yourself. I say this is the most important step because without learning how to budget your money, you’ll soon fall into bad money habits. The easiest way to budget is to jot down a list of your weekly and monthly expenses and how much money you have to pay for them. Keep in mind, a good budget always ends with a surplus value. For those of you who are new to money managing, budgeting is actually really simple and is a key element to kick-starting your money resolutions. And luckily, we live in an age where there is a plethora of great money managing tools that can be accessed from our phones and computers, most of which are free to use.

Mindful Spending

Any diet will tell you to be mindful of when and what you eat. Well, the same rule applies to managing your money. Mindful spending is very crucial to kick-starting your money resolutions. Using cash requires you to focus on your budget and how to wisely spend to pay for the things you need. Luxuries might need to be nixed in order to pay for important things such as food. However, there is room in everyone’s budget for a little comfort. The success to mindful spending is all about your budget. Cash helps train a lot of people to embrace mindful spending as it gives people a visual as to how much they are actually spending.

There are Some Exceptions

Now, there are moments when we need to pay things that cost quite a bit of money. In these cases, watching out for individual safety is very important and is crucial to kick-starting your money resolutions. Therefore, when a situation requires us to spend a bit extra, it is smart to have a credit or debit card handy.

Such instances include…

Car repairs (which are rarely ever cheap)
Buying furniture
Paying substantial loans
Moving to a new home

Though there are plenty of instances where it would be safer to use a card instead of cash; however, we have to remember to embrace the concept of mindful spending, lest we fall back into our same old money habits. As a rule of thumb, if it cost more than $150, first decided whether or not you need it, then use a card if you do.

[Read: 7 Faulty Financial Resolutions for the New Year]

A Word of Warning…

Switching to cash-only is an awesome way for you to kick-start your money resolutions. However, just like with everything in the world, there is a downside. While using cards, we often forget about how real our money actually is. If we lose or damage our cards the banks can easily get us a new one. A piece of plastic with a magnetic strip is a lot less heartbreaking to lose than actual cash. If you go to the bank trying to explain that your forty dollars flew away and that you need another forty, they would probably laugh and show you to the door. Always keep a watchful eye on your cash. Money becomes a lot more real the second you don’t have it. Along with mindful spending, having a secure place for your cash is always a smart idea.

The Civil Way to Deal with Rude Debt Collectors

December 21, 2015 by editor

The debt collector

They are a breed all their own. It takes a special kind of person to take this kind of job. The worst kind of debt collector is the rude kind. Therefore, here are some ways to deal with the rude debt collectors should you ever have to encounter those special kinds of people:

[Read: How To Utilize Debt Management To Stop Collection Calls]

1. Familiarize yourself with the Fair Debt Collection Practices Act.

There are certain things that creditors are not allowed to do when trying to collect a debt. One of those things is that they are not allowed to call you prior to 8 a.m. in the morning or 9 p.m. at night. They are not allowed to continually call you to annoy you, or call you at work once you tell them to stop. To fully prepare yourself, knowing what is in this Act so you know how to deal with rude debt collectors that may step over the line, just click on this link: know your rights.

Once you are equipped with the knowledge of the Fair Debt Collection Practices Act (FDCPA), it is time to get prepared to conduct the battle of the intellect. This really isn’t that hard at all.

Just remember to keep your emotions restrained.
Debt collectors are trained to get results.
Have a notepad and pencil ready by the phone to take notes

2. Taking Control When Dealing with the Rude Debt Collector

Now here is where you show him or her who is really the one in control. When you answer that phone and realize you have to deal with the rude debt collector, again, just stay calm.

Sometimes the debt collector will ask if there was a reason that the bill hasn’t been paid. It is your choice to give a defense. Most of the time, when dealing with a rude debt collector, or any debt collector, this is a tactic to put you at ease so you will open up and talk more freely.

Pick up that pencil and ask:

him or her to repeat their name, spell it, if necessary
the company they represent, again, spell it, if necessary
and anything else, including what they say you owe
how long they say you have owed that debt
Their companies address* (you may need this)
the account number, etc.

Conduct that call like a business call.

Now, since you know the rules that this debt collector should be abiding by, you will know when and if the line has been crossed. They know what they are not allowed to do, they just don’t think you do. The things that you need to write down if you feel like the debt collector is getting out of hand are:

Threats
Harassing remarks
Garnishments
Swearing

3. When the Rude Debt Collector Doesn’t Understand the Word No

Sometimes, when you deal with rude debt collectors, they just don’t know when to give up. They call you outside of the allowed hours, they call constantly, they call your friends to track you down, or worse- leave a message on your friend’s machine (which is a major no-no), and even call you at work. You know you will have to take the next steps.

If you accidently pick that phone up after they have been harassing you all the time, just set the phone back down. That’s right. Hang it up. Do not bother picking it up again if it rings again right away.

You can request that the debt collector stops calling you, but I suggest that you make sure that you have their address, first. This is because you have to make a request in writing.

If you like to be one-step ahead of them, you can have a letter all ready to be sent and upon their call, tell them on the phone that you are sending them the letter, if there is anything more that they would like to discuss, now is the time, otherwise there is no need to call again. This prevents them from calling at a later time to let you know what they plan to do next because you have already asked.

4. Your Other Options When Dealing with Rude Debt Collectors

There are other options when you deal with rude debt collectors that will cause less contact between you and the creditor.

Option 1. Disputing the Debt

You will have to make this request in writing. You do this by writing a ‘Debt Validation Letter.’ This stops all collection activity until the debt is validated. When you get proof of the debt, you can then check to see if it is passed the statute of limitations in your state. Each state has a statute of limitations.

There is one caution that you need to be aware of here. Do not admit to owning or paying the debt, you just want validation and find it is passed the statute of limitations. The clock could start running on the debt for seven years and six months from the time you admit or promised to pay.

Option 2. Find an Attorney

Unfortunately, sometimes when we deal with rude debt collectors, it can cause health problems because of their harsh tactics. Some people just can’t handle that kind of stress and end up in the hospital with stress-related health problems or worse. At that point, or before, when you know they are stressing you out, it is reasonable to look for an attorney. There is no shame in it. Rude is rude.

Option 3. Report Them!

There is a time to say enough. The Federal Trade Commission and Consumer Financial Protection Bureau are there to enforce the Fair Debt Collection Practices Act. There is a list of collection agencies no longer in business because they have gone too far. If you feel like you have been dealing with a rude debt collector for a little longer than you would like, and you feel that the line has been crossed.

[Read: The Facts about Confronting Debt Collectors]

How do you deal with rude debt collectors?

How to Cope with Holiday Financial Stress

December 19, 2015 by editor

Holiday shopping is in full swing and now more than ever consumers are feeling the heat of buying the perfect present thanks to commercials and retailers vying for the upper hand in the market. With so many ways to save and earn money over the holiday spending season, having a good handle on your money is of the utmost importance.

[Read: Use Debt Management To Deal With Debt Stress And Achieve Debt Freedom]

Create and Stick to Your Budget

Budgets are the talk of the town these days and understanding how to properly setup a budget is key in any situation. Not only in your personal life but when planning a vacation or planning holiday spending. When you’re in debt it can feel like a choice between paying the bills and buying gifts but a balance of the two and realistic budget will ease that stress and help you cope with the Holiday Financial stress you’re likely experiencing.

Get Creative This Season While Reducing Stress

A great way to offset holiday budget blues is to create your gifts. From cookie baskets, blankets, and handmade wearables like hats and mittens the gift is unique, handmade, and sentimental. It’s also cheaper for the wallet and the creative outlet will reduce stress taking your mind off of the initial problem of money and allow you to cope with financial stress this holiday season. If you’re worried your lack of creative skill will hinder this, you can always check out Pinterest for simple how-to’s that won’t break the bank.

Share Your Insight during the Materialistic Holiday’s

If money is your issue this season be sure to let others in when it comes to spending and expectations. Setting a budget or limit on gifts is often easiest on everyone and no one is put in a position to take out a payday loan or advance to ensure the ridiculously materialistic holiday spending season is not a source of real disdain.

Be honest if you’re unable to budget large amounts for holiday spending.
Set a family budget that all should comply with.
If acceptable for all involved make it a ‘kids only’ holiday and focus buying solely on the children in your family.

Remember What Holidays Are About

Reducing stress also comes in the form of spending time with people that mean something to you. Even if you’re not going to participate in gift giving and have given the appropriate notice that you would rather spend time together than spend money, then don’t feel the need to forego holiday parties because you’re not gifting. In fact, skipping holiday get-togethers can add to stress thanks to urge to stay inside. Spending time with family and getting out of the house are ways to cope with holiday financial stress and improve mood and self-image.

[Read: Consolidate Your Bills with Poor Credit]

Don’t Blow Your Budget this Season, Blow Their Minds.

Parents want to give their children everything they didn’t have as kids which is understandable and common in today’s society. The only problem is the fact that children are conditioned to expect things only if the parents allow them to do so. If they expect a large amount of gifts every year, this is due to parents creating this expectations in their early years of life. Instead of breaking the bank to buy little Johnny and Sally the latest version of whatever device they’re after, teach them now to expect less and give more. This will raise their morale as adults and save your wallet, a trend that is much easier to deal with than the mounting credit card bills thanks to another overspent holiday.

Regardless of studies proving spoiled brats are better paid as adults, the reality is the cost of holidays shouldn’t be a source of stress if you’re teaching them now it’s not what you get every year but rather what you give and the time you get to spend with those you love. A most often forgotten sentiment of the holidays in the first place. Creating an expectation of materialistic happiness will follow them as they grow and for those that overspend, so will their parents debt when they can’t afford to create a college fund. Instead

Enforce the giving rather than getting ideal
Give them gifts that enhance their skills and passions
Keep expectation low and the true meaning of the holidays in front of them.

[Read: How to Create the Ideal Household Budget]

Give Time Instead of Gifts

If you’re really looking for a way to beat the stress of holiday spending volunteering can be a wonderful gift for less those less fortunate. You can donate your time on behalf of someone close to you say a relative that may receive services from the VA. Consider your skills is there something you can do better than others? Do you know a thing or two about saving money? Maybe a chess protégé looking for someone to share time with at the board? Whatever it is going to the local VA, Nursing homes, homeless shelters, wherever they accept unique services such as the above and consider donating your time. The gift will keep giving especially if your chess opponent has little family to visit him or her this holiday.