The Credit Repair and Debt Reducer Expert's Blog

13 Products That Save You Money

2012-01-28T00:19:00.000-05:00

The cost of buying everyday household items and groceries has increased.
Consumers are still feeling the effects of the recession and are looking for ways to reduce costs to make their dollar stretch longer. Two ways to make your dollar stretch farther is by using less and by buying products that save you money. Here are 13 products that can help you save money.

1. Use What You Have. Use products you already have in your home such as lemon juice to fight bacteria and baking soda to clean and deodorize. You can also use white vinegar to cut grease, eliminate odors, stains and remove mildew. Use borax to clean and disinfect and to clean walls and floors. Cornstarch can be used to clean windows, polish furniture and shampoo carpet.
2. Fresh Produce. Buy fresh produce from farmer’s markets or local farmers to save money.
3. Energy Efficient. Buy energy efficient products and appliances such as: florescent light bulbs, refrigerator, dishwasher, washing machine, dryer, blender, toaster, microwave, hot water heater, furnace, computer, printer, fax machine, scanner or freezer. Look for the Energy Star symbol which indicates a product is energy efficient. You also get a tax credit when you purchase certain energy efficient appliances.
4. Laundry Detergent. Use the recommended amount and adjust as needed. Avoid using more than the recommended amount because this causes more soap buildup on your clothes and may clog up your washing machine. You may also end up having to rinse your clothes twice to remove the excess soap.
5. Generic. Buy generic brands for items such as: paper products, sugar, flour, butter, over-the-counter medications, vitamins and toiletries. Do research to verify which generic brands are the best. Compare ingredients to brand name versions to find the best product.
6. Drying Clothes. Purchase a clothes line or drying rack to dry clothes. When using a clothes dryer dry clothes slightly and then hang on a clothes line or drying rack.
7. Cooking. Make meals for one week, two weeks or a month at a time to reduce preparation time. Cook main dishes and freeze and prepare side dishes only. You can also prepare sides dishes and freeze them.
8. Dishwasher Detergent. Use the recommended amount and adjust as needed. Avoid using more than the recommended amount because this causes more soap buildup on your dishes and may clog up your dishwasher. You may also end up having to rinse your dishes twice to remove the excess soap.
9. Freezer. Buy a freezer to store frozen items and stock up on sale items.
10. Dryer Sheets. You can use dry sheets more than once or cut them in half to save money.
11. Deodorant. Follow the directions on the product to test it out. If you find that you need to use more do so. If you sweat a lot buy a deodorant made specifically for those who sweat more than normal.
12. Toothpaste. Based on most dentists’ recommendations you only need to use the size of a pea to brush your teeth. Don’t cover your toothbrush with toothpaste. If you need to use more repeat the process.
13. Other. Use the Fridge Smart System from Tupperware to make produce last longer. Use the FoodSaver Vacuum Sealer to seal food which keeps food fresher longer than plastic wrap, foil or zipper bags.

14 Reasons to Use Online Bill Payment

2012-01-25T12:49:00.002-05:00

The average consumer pays 8 to 15 bills each month. The cost to mail a bill is $.44. If you mail 10 bills a month that costs $4.44 a month plus the cost of driving to the post office. In a year you spend $52.80.

One way to save money on paying bills is by using online bill payment. All banks offer online bill payment usually for free. A great benefit of paying bills online is you get do so while in your pajamas. Using online bill payment helps reduce paying late fees, helps pay down debt faster and reduces the burden and stress of paying bills by checks or by phone. Here are 14 benefits of using online bill payment.

1. Easier. Available 24/7 and can be accessed from anywhere in the world.
2. Saves time. Eliminates the manual payment process of paying with checks and making trips to the post office. The time required to pay bills can be done in the amount of time a commercial airs on TV.
3. Save Money. Eliminates postage fees which seem to increase every year. No fees are required for using online bill payment.
4. Centralized. All bills are located in one secure location and helps you stay organized. You may still receive paper bills or electronic bills.
5. Fees. Reduces late fee charges which can occur if a payment is mailed in time.
6. Schedule. Payments can be setup on a recurring schedule based on your paycheck date or other income received. Payments can be made on the due date or near the due date and will still be made on time.
7. Secure. Payments are secure and reduce chances of lost payments. Uses encrypted website and provides protection against identity theft.
8. Balance. View balances real-time.
9. Service. The service allows you to perform other transactions such as viewing account activity and online statements.
10. Green. Helps the environment by lowering the usage of paper, envelopes and stamps.
11. Organized. Reduces the amount of paper in your home.
12. Budget. Provides an easier way to create a budget and track your spending.
13. Alerts. Allow you to setup reminders when bills are due or when a check or payment has not been processed.
14. Search. Provides an easy way to search payment history and provides the ability to download payment history.

Top Reasons to Give Your Child an Allowance

2012-01-23T20:36:00.000-05:00

Many parents have struggled with the question, “Should I give my child an allowance?” This can be a difficult decision to make considering the economy, hit costs of gas, increased prices of food and utilities and other expenses. Many schools don’t teach children about finances. Studies have shown that even children who learn about finances in school are still not fully prepared to manage their finances as an adult. Most children don’t learn how to manage money until they become adults and some still struggle.

Most learn on their own through trial and error. What’s worse is that some parents don’t have good money management skills and therefore can’t pass on valuable knowledge to their child. Today children are smarter and more aware of various topics. Now children develop bad habits at an earlier age so it is even more important to make sure your child gets good advice on how to manage their money. That information will help them when they become adults.

Giving your child an allowance helps them make mistakes under your guidance allowing them to learn from their mistakes without the painful consequences of filing for foreclosure, having bad credit or filing for bankruptcy that many adults experienced who were not taught about money as a child. Here are some tips on how to give your child an allowance.

Start giving allowance
1. In elementary school around first grade or age 7 when children really become aware of money and start asking you to buy them expensive items, ask for fad items or ask for build-on name brand items (iPhone, iPad, iPod, etc.), etc.
2. Give an allowance once every two weeks which coincides with when most adults get a paycheck
3. Explain the rules for the allowance – the money can be used for them to buy whatever they want and they cannot ask you for additional money or ask you to buy them something other than basic necessities unless it is a school related expense.
4. Remember to teach children about giving and saving. You can use the rule 70-20-10. Spend seventy percent, give 20 percent and save 10 percent.

How much at each stage
1. If you already give your children money, add up the money you give them in two weeks and give that to them for an allowance. Let them learn on their own how to manage their money. After they make some mistakes then gently guide them on how to make good financial decisions with their money.
2. Elementary - Give up to $1 a week for each year, i.e. if the child is 10 give $10 for an allowance.
3. Junior High – Give up to $2 a week for each year, i.e. if the child is 13 give $26 for an allowance.
4. High School – Give up to $3 a week for each year, i.e. if the child is 16 give $48 for an allowance.

How to earn it
1. Tying allowance to chores teaches children good work ethics which will mimic real life when they go to work for an employer. If they do extra work and do a really good job it teaches them initiative and that they can recognition or get rewarded.
2. Explain how the allowance is earned. Allowance should be given for doing something extra.
3. Ask for ways they can earn money (babysit siblings, help parents, go to work with parents and help them at work, etc.). Give an allowance for doing additional chores beyond what is expected or other than what they already do, etc.
4. If you have a business children can earn an allowance by doing work tasks (mailings, filing, placing phone calls, organizing your office, etc.) This also helps them to learn about what is required to run a business which will help them when they become adults.

Suze Orman and the Approved Card

2012-01-19T09:27:00.003-05:00

The Approved Card is a prepaid MasterCard created by Suze Orman for everyone no matter what your credit score. The Approved Card has several fees that include but are not limited to: a $3 activation fee, a $3 monthly fee, $2 fee to speak to a customer support representative, $2 fee for non-network and network ATM withdrawals, $1 fee per transaction for ATM balance inquiries, $2 per transaction for over the counter cash withdrawal, $2 ATM declined fee, $2 fee per statement for paper statements, $1 fee per bill for paper bill check payment.

A $30 per transaction fee for bill payment inquiry is charged and there is a fee to reload cash on the card at a retailer but is free if you have direct deposit . With one visit to an ATM you can spend up to $6. During one month you could spend up to $20 in fees.

The Approved Card can be used to pay bills or make purchases and provides unlimited access to your credit report and credit scores from TransUnion. You also get unlimited free use of Allpoint ATMs across the country each month, if you make a direct deposit or bank transfer to the card of $20 or more.

The card has no interest rate and is FDIC insured. Other features of the card include identity theft protection, ATM withdrawals, free electronic bill payment, and you can keep track of spending through text alerts.

A prepaid card is a good tool to use to teach children and college students about how to use a credit card responsibly or if you have repeatedly overdrawn your bank account and need time to reestablish your payment history with the bank.

However, using this type of card keeps the 26% of Americans who are unbanked and the 34% of Americans who are underbanked in the same statue because it does not require having a bank account. Although you are not penalized if you have a bank account and use direct deposit.

A prepaid card prevents Americans from learning how to balance a checkbook, manage their bank accounts and tracking their spending. It also prevents Americans from getting additional perks that can be obtained when using a traditional bank such as rewards points, discounts on fees and interest rates, notifications about special offers, etc.

There are tons of prepaid card available with lower fees such as the American Express Prepaid Card, Perk Street Financial MasterCard Prepaid Debit Card, SilverCard Prepaid MasterCard, Readydebit Select Visa Prepaid Card with Path2Credit or Bank Freedom Prepaid MasterCard.

The Approved Card cannot be used to help increase your credit score because payment history is not reported to the credit bureaus. The disadvantages of using a prepaid debit card are: you pay additional fees; it may or may not be FDIC insured, you do not get rewards points, there are stricter guidelines regarding fraud protection, liability costs can increase quickly if the theft is not reported immediately and there are certain transactions that do not allow you to use a prepaid card such as pre-authorized charges where the full cost of the purchase is not known upfront.

You have to ask yourself why do celebrities offer prepaid cards. Is it because they really want to help their fans or they really want to help themselves. Comparison shop and read the terms and conditions before deciding to apply for a card. Decide for yourself if the Approved Card or any prepaid card is right for you.

12 Savings Tips for Singles

2012-01-16T09:52:00.005-05:00

According to Forbes, millions of unmarried women over 65 are struggling to survive on social security payments. A single person forfeits social security benefits, and in some plans also forfeits pension benefits, when he or she dies. Singles standard of living decreases due to the economy, changes in health or marital status. The majority of minimum-wage workers are single.

Married couples usually do better financially than singles. Singles: pay more in taxes, pay more in interest rates and fees and it is harder to receive government and social assistance if you do not have children. Singles also have fewer employment benefits, higher levels of unemployment and, lower wages and unemployment benefits. Singles are more likely to face poverty, have increased health costs and bad credit.

The financial disadvantages of being single are: you are the sole provider and usually don’t have many options if you need financial assistance, spend more of your income towards housing, spend more on entertainment or fun activities such as movies, traveling, gym, etc. and wait longer to begin saving for retirement. Here are 12 ways to save money living as a single person.

1. Discounts. In some cases couples are offered discounts or better rates than singles because singles are more of a risk. Couples have double incomes and are more favorable to lenders and other companies. Ask what discounts are offered to save money.
2. Utilities. Do business with non-mainstream utility companies that offer a flat fee, that don’t charge fees on top on your usage such as distribution and transmission services, or that offer budget or payment plans. Compare well water or sewer rates versus standard water meter rates.
3. Insurance. Some insurance companies penalize single drivers by charging more for insurance. Lower premiums by including another person on your policy such as a parent.
4. Housing. Unexpected expenses can occur such as repairs, appliance replacement costs, homeowners insurance, property taxes, etc. In some cases renting may be more affordable than owning a home. Ensure you purchase a home warranty.
5. Reduce spending. Reduce spending by 30-50% each month to save money. Turn off lights when you are out of a room for 20 minutes or more. Use a programmable thermostat. Rinse clothes in warm or cold water. Turn off water if you are not using it.
6. Furnishings. Save money when buying appliances and furniture by buying used, from yard sales or discount websites such as overstock.com or amazon.com. Avoid buying rental furnishings.
7. Cook at home. Make meals that require easy to find ingredients that don’t cost a lot of money such as casseroles, soups, pasta dishes or stir-fry. Cook enough for a few days and eat leftovers. Eat breakfast at home, take your lunch to work at least twice a week and cook at home at least twice a week to save money.
8. Create a budget. Record how much you earn and how much you spend. Look for areas where you can reduce spending. Create an emergency fund. Save enough money to cover your monthly expenses for 9-12 months. Try to reduce spending by 30-50%.
9. Transportation. Consider buying a compact or hybrid car which is cheaper in price and has better gas mileage.
10. Food. Buy produce from local farmers. Shop at discount stores such as Sam’s Club or Costco or at co-ops. Buy items on sale or regular used items in bulk to save money.
11. Entertainment. Look for free activities, rent DVD’s and CD’s from the library. Cancel your cable service and use Netflix.
12. Avoid getting a pet. Pets can be a huge expense. Avoid getting a pet until you live in a dual-income household.

12 Sensible Money Savings Tips for 2012

2012-01-13T19:29:00.000-05:00

Unemployment is 8.4% but many Americans are still struggling to make ends money. There are tons of ways to save money and make your dollar stretch farther. Here are 12 sensible money savings tips for 2012.

1. Bundle Services. If you have multiple services with different companies, combine services with the same company to save money.
2. Budget. Create a budget to help save money and ensure that your money goes the furthest to buy wisely.
3. Use coupons. Use coupons found in your local newspaper or use online sites such as groupon.com, coupons.com, couponmom.com to find coupons. Shop at stores that double coupons to save even more money.
4. Compare. Comparison shop to see which stores have the best sale each week and shop at that store for the items you need. Don’t spend a lot of time and gas shopping at multiple stores to find bargains especially with the increasing gas prices.
5. Generic. Buy generic instead of name brand to save money. Most generic brands and just as good as the name brands.
6. Needs vs. Wants. Buy more needs vs. wants. Avoid impulse shopping.
7. Reduce spending. Reduce spending by 30-50%. Buy in bulk, on sale, at discount stores or online. Try websites such as freecycle.org, ebay.com or craigslist.com to find bargains.
8. Clothing. Shop at discount stores, buy clothes in off-season, check out discount racks at stores and ask if stores if they honor competitor coupons. Buy a few jackets and mix and match pieces to stretch your wardrobe.
9. Cash. Pay for everything with cash; don’t use your credit card except for emergencies.
10. Groceries. Buy fruits and vegetables from Omish markets or local farmers to save money. Buy packaged foods, canned goods, household goods or paper products from discount stores such as Walgreens, Wal-Mart or Target.
11. Utilities. Adjust thermostat to 68 degrees Fahrenheit. Turn off electronics and lights if you are out of the room for 20 minutes or more. Buy energy efficient appliances.
12. Taxes. Review tax laws and find ways to reduce your tax bill.

Say No To Rapid Refund Loans

2012-01-10T16:27:00.000-05:00

Say No to Rapid Refund Loans, RALS, Tax Refund Advances, and Refund Anticipation. Rapid refunds have very high interest rates starting around 40% up to 500% or more. Tax preparation companies don’t guarantee that you will get your money from the IRS before the normal wait time.

Save yourself some money by being patient and waiting the normal wait time. If you are not sure if you will get a tax refund you can use an estimator calculator from www.1040.com/site/tax-tools/tax-estimator. Sometimes things that look too good to be true are. Do your research before signing up for a product or service. Here are 4 tips to say no to rapid refund loans and get your tax refund faster.

1. File Online. File your tax online by using a free tax preparation site with the IRS or a tax preparation software such as Turbo Tax or Tax Cut that can file your taxes electronically to reduce processing time. You can get your check within 14 days from the IRS or your local state taxing agency.
2. Deposit. Deposit your tax refund check into your bank account and skip using a check cashing store or liquor store to cash your check. If you don’t have a bank account open one to get your refund faster.
3. File early. If you expect to get a refund file your taxes as soon as you get your W-2. Early filers receive their tax refund quicker than those who wait closer to the April 15th deadline.
4. Assistance. Use a tax preparation software or get professional assistance from a licensed tax preparer or accountant to prepare your taxes. This will minimize your chances of getting audited or having errors on your tax returns. Many tax preparation software programs now guarantee that you will not be audited and that your tax returns are correct.

10 Ways to Organize Your Home Office for Less

2012-01-07T12:43:00.000-05:00

January is the start of a new year and the start of new beginnings. One new start is getting organized. Some people need help with organizing in many areas of the lives such as their office. Sometimes we get so busy with work, family and friends we forget about or are too tired to maintain our household.

Organizing helps you easily find things, helps you evaluate what you have and prevents buying duplicate items. Being organized is a sign of hard work, discipline, dedication and attention to detail. These characteristics can carry over into others aspects of your life. Some people find it hard to start organizing. The thoughts of trying to get organized can be overwhelming and frustrating because you don’t know where to start.

Clean. Put similar items together in one location to help assess what you have.

Start with a small room or area. Identify the steps you want to achieve, know what you want to do, when and how you will do it.

List. Make a list of what you have and the quantity, and make a list of what you need and the quantity needed.

Put it together. Throw away worn out items that can no longer be used. Donate items in good condition to charity. If you have not used an item in the past 6 months give it away. Put Items you are going to keep in a storage container.

Categorize. Categorize your items either in alphabetical, numerical, color-coded. Put smaller items at the bottom, larger or heavier items at the top.

Assistance. Ask for help when organizing. Show the person how you want tasks done. Don’t get frustrated if the person doesn’t get it right the first time.

Time. Save time by multi-tasking.

Space. Efficiently utilize as much space as possible and leave extra space for future needs.

Usage. After you finish using an item put in back in its proper place to help keep clutter to a minimum.

Storage. Use items you already have as storage (crates, cardboard boxes, storage bins, Ziploc bags, etc.)

Schedule. Schedule a set time when you will organize and clean.

Here are 10 ways to organize your home office for less.
1. Use accordion folders or a storage box instead of a file cabinet to store important documents and files.
2. Conceal cables and wires to save space.
3. Stack office equipment and use separators to keep air flowing between equipment that has vents.
4. Buy adjustable office organizers to allow expansion for additional space.
5. Name computer files an easily identifiable name so you know the purpose of the file. Categorize files into subfolders.
6. Categorize emails into subfolders.
7. Make to-do lists and post in your office where you can readily see them on a daily basis.
8. Store business cards in a shoe box and create dividers using cardboard or manila folders.
9. Use CD/DVD cover (round cover for multi-package of CDs) to store paperclips, rubber bands, binder clips, etc.
10. Use day planner to keep track of appointments and other important dates instead of buying a blackberry or smartphone.

Prodigious Financial Tips for 2012

2012-01-03T09:15:00.013-05:00

Set financial goals that you know you will be able to achieve. Make a promise to yourself that every year you will do at least one thing to become a better person which including becoming better at managing your finances.

Finances can destroy relationships; result in divorce, arguments, sadness, depression, anxiety and fear. Finances can be used to generate wealth or can be used to generate debt. Finances have to be properly managed.

If you don't meet all of your goals by the end of the year develop smaller goals that can be easily achieved. Once you achieve those, develop larger goals and develop a course of action to achieve them. Track your progress.

Make sure your goals are positive statements that will improve your life. A goal should be similar to an affirmation, i.e. I will pay off my Visa bill by March 2012 instead of an uncertain or negative goal such as, I hope I can pay off my Visa bill by March 2012 or I will try to pay off my Visa bill by March 2012.

Eradicate those bad spending habits. The best way to change your financial habits is to create a checklist of what you what to accomplish regarding your finances. Here are 15 prodigious financial tips to improve your finances in 2012.

1. Change Your Mindset. Change the way you think about money. If you are determined to get out of debt and believe you will get out of debt, you will. Throw away bad spending habits and recycle good ones that have been successful in helping you, your family and others.
2. Set financial goals for the year. Plan how to accomplish each financial goal. Identify what is required to accomplish each goal.
3. Make adjustments. Make necessary lifestyle adjustments to help reach your financial goals.
4. Get insured. Make sure you have adequate health, auto, life, disability and business insurance.
5. Save Money. Create an emergency fund with enough money to cover at least 9-12 months’ worth of monthly expenses. This will prevent you from getting into debt.
6. Get Out of Debt. Get current on any late payments. Negotiate with creditors to setup payment plans and pay off old debts. This will help increase your credit score.
7. Trim Spending. Don’t spend more than you earn. Buy needs more often than wants. Find ways to reduce expenses. Reduce spending by 30-50% each month.
8. Limit Credit Card Usage. Use your credit card for emergencies only and avoid using your credit card regular purchases such as groceries and gas. Keep credit card balances at 20% or less of the credit limit. Pay balances off at the end of each month.
9. Develop a Financial Plan (Budget). Write a list of your entire total monthly expenses including debt and write down your total monthly income after taxes. If you have any money left over use that to pay down your debts. If you do not have any money left over (at least 10% of your monthly income) look at the areas where you can reduce spending.
10. Develop What If Scenarios. List different scenarios that could happen and how you would deal with each one, i.e. job loss, sickness, death, new baby, loss of health insurance or other benefits, car repair, etc.
11. Have a Backup Plan. Have a Plan A, B, C, D and E. Many people never plan for the unexpected. Always have multiple options to solve a problem or deal with a crisis.
12. Go past retirement. Don't just plan for your retirement, plan for your children's retirement. Sometimes when planning for retirement retirees do not save enough money to cover all of their monthly expenses and end up going back to work after retirement. If you plan for your children's retirement or your grandchildren's college education this will ensure you have more than enough money to retire and enjoy your golden years.
13. Do better than your parents. If you parents retired at 65 or had to work until they were 70 and had nothing to show for it, do better than your parents. If you retire at 55 be sure you have enough money to live on for at least 20 years.
14. Consult a professional. Contact a financial advisor or financial planner to help you determine and achieve your financial goals, where you want to live, the age you want to retire and the lifestyle you would like to have when you retire.

Say No to New Year's Resolutions

2011-12-31T14:22:00.000-05:00

Everyone tries to make a New Year’s Resolution including myself. Somewhere around February we forget about that New Year’s Resolution and go back to whatever it was we were doing before the New Year. This year I am saying no to New Year’s Resolutions. This year I am creating a goals list of all the things I want to accomplish in 2012 with a target date and action steps for each. Your goals should include at a minimum health, finances, family, career, spirituality and relationships

This year make a decision to make at least one permanent change to become better in one area of your life. The key is to keep moving forward and practice that habit every day. Don’t beat yourself up too much if you forget to practice your new habit. If you forget one day, don’t worry, tomorrow is available for you to get back on track. Don’t look at your goals as negative; view them as positive things to improve your life.

Ask friends or relatives to provide support and encouragement for your new goals. Purchase self-help motivation books or practice meditation or positive affirmations to help strengthen your confidence to ensure you achieve your goals.

Look at the big picture and how your goals will help you, your family or your overall life. Examine the long-terms benefits of your goals and focus on the benefits to increase your motivation.

Don’t make unrealistic goals, however believe in yourself and write down all of your dreams and goals. If you believe you can achieve a goal you will. The only thing stopping your from achieving your goal is you. Wishing you much success in 2012!

End of Year Tax Deductions

2011-12-28T22:00:00.000-05:00

On December 23, 2011, President Obama signed the Social Security Payroll Tax Holiday extension through February 29, 2012. The payroll tax temporarily extends the 2% payroll tax cut for employees, reducing their Social Security tax withholding rate from 6.2% to 4.2% of wages paid through February 29, 2012 for those who make $110,100 or less. This also prevents many Americans from losing their unemployment benefits.

Medicare will continue paying doctors at the current rate through February 29, 2012. The reduced Social Security withholding will have no effect on employees’ future Social Security benefits. Congress reconvenes in January 2012 to determine if the payroll tax holiday will be extended. If not, employees will pay the 6.2% social security tax for the remainder of 2012.

Some people dread the end of the year because it is a reminder that you have to file your taxes. However, if you file taxes you are one of the lucky ones who has a job whether you like it or not or whether it pays enough, you have one. That is a blessing. Over 9 million people are still unemployed.

Before you prepare to file your taxes gather all of your receipts and write down all of your expenses for the year. This will be difficult if you can’t find your receipts or don’t have all of them. If that is the case then estimate your expenses. If you hire a tax preparer having receipts and documentation will be very helpful and will reduce your chances or getting audited because you have proof of your spending.

If you know you will owe taxes for 2011 request an extension no later than April 16, 2012 or setup a payment plan. There are tons of tax credits and deductions you can claim for 2011. Here are 33 ways to reduce your taxable income and increase your chances of getting a refund.

1. Uniforms, job supplies.
2. Tax preparation fees.
3. Job related training.
4. Job search expenses.
5. Home office business expenses.
6. Mortgage refinance fees.
7. Charitable donations (cash and non-cash).
8. State Sales Tax.
9. Property and estate tax deductions.
10. Foreclosure tax relief.
11. Casualty Loss (Disaster Area).
12. Reinvested Dividends (DRIP).
13. Mileage Deduction.
14. Earned Income Tax Credit (EITC).
15. Energy Credit.
16. Car Credit.
17. Home Buyer Credit for Military Personnel.
18. Capital Gains.
19. Child Tax Credit.
20. American Opportunity Tax Credit.
21. Personal Exemption Phase Out.
22. Increases in Standard Deductions.
23. Marriage Penalty Relief.
24. Dependent Care Credit.
25. Adoption Tax Credit and Adoption Assistance Programs.
26. Coverdell Account.
27. Student Loan Interest Deduction.
28. Above the Line Deductions for School Teachers.
29. Business Incentives and Credits.

How to Get In Debt

2011-12-26T21:45:00.000-05:00

Most Americans have had or currently have at least one bad spending habit. Bad spending habits are just that habits and habit can be broken. It takes 23 days to develop a habit. Habits can be good or bad. Habits that are bad should be broken.

You should always try to become a better at everything you do and this includes breaking bad financial habits and replacing them with good ones. Stop doing at least one of these things to help you get out of debt and say no to debt. Then gradually make another step a habit and keep repeating. The following is a list of some things that can lead to being in debt.

1. No Budget
2. No Health Insurance
3. No Savings or Emergency Fund
4. Stop overextending yourself at Christmas
5. Stop Living Above Your Means
6. Don’t use credit cards for everyday purchases
7. Don’t use credit instead pay with cash
8. Stop Impulse Shopping
9. Avoid Cash Advances/Pay Day Loans
10. “Robbing Peter to Pay Paul" – using money for one bill to pay another bill and still having one bill unpaid
11. Balance Transfers - using credit cards to pay off other debt
12. No retirement account
13. Borrowing from your 401K
14. Co-signing for a loan
15. Having a joint account with someone other than a spouse
16. Deferring student loans or filing forbearance
17. Getting student loans for more than the cost of your college tuition
18. Using check cashing businesses or a liquor store to cash paychecks
19. Doing business with "bad credit no problem" companies
20. Not contacting companies regarding delinquent accounts
21. Repeating the same financial mistakes over and over

Avoiding these bad spending habits can help you say no to debt and say yes to savings and being debt free. Say yes to having a better financial life. Money can generate wealth or generate debt, you make the choice.

Is Skip a Payment a Bad Idea?

2011-12-22T09:09:00.001-05:00

I received my December credit card monthly statement and the minimum monthly amount due displayed zero. I read further down the statement and noticed there was a note that offered me the option of skipping my December monthly payment. This is a trick. Don’t fall for it. You have to ask yourself, why are they offering me this? Is it because I am a good customer. No! It is because they want to make more money.

The Skip a Payment option is usually offered by mortgage or credit card companies at the end of each year. It can be difficult to resist this temptation. The offer usually comes during the holiday season when most families are struggling to make end meet or need extra money to buy holiday gifts.

Here’s the trick. If you didn't charge anything else on your credit card for the rest of the month, you would still owe more money due to the accrued interest added in at the end of the month on what you already owed. Some companies charge a fee for using the skip a payment option which is added to the total balance.

Using a skip a payment option, your January statement you require you to pay two months’ worth of interest plus whatever items you purchase in January. Skipping a payment reinforces bad spending habits. It seems easy and convenient but costs you more in the long run. The longer it takes to pay off a credit card bill, the more interest and finance charges accrue and the more debt you owe. The only one benefiting is the credit card company. If you are offered a "skip a payment" option here are some things to consider:

1. Avoid using it more than once
2. Don't use it if your credit card balance is 50% or above the credit limit
3. Avoid using it as a solution to a financial problem
4. Only use it if you cannot afford to make the minimum monthly payment and will end up missing a payment
5. Don’t use it if your credit card is maxed out or you are close to maxing out your credit card because the missed payment may put your over the limit and cause you to be charged an over-the-limit fee or late fee
6. Don’t use it as an excuse to buy something
7. It does not lower your credit score
8. You must be in good standing with the company

I am sending in my payment for my December statement. Stop making credit card companies rich. Remember, if something sounds too good to be true, it usually is.

10 Tips for Holiday Shopping

2011-12-19T09:59:00.003-05:00

Each year Americans accumulate the largest amount of debt during the holiday season. If you don't have money to buy holidays gifts be honest with yourself, don’t go into debt to please someone else. January and February have the highest number of bankruptcies and divorces filed.

Christmas is not about how much money you spend or about giving gifts, it is about celebrating the birth of Christ and spending time with family and friends. Most times people buy holiday gifts for someone they don’t like or buy gifts that are returned. Don’t go into debt again. If you spent money you don’t have, take the gifts back to the store and save yourself the heartache of getting a big credit card bill in January. Here are 10 tips for holiday shopping.

1. Buy gifts during store sales. You can save anywhere from 20-70% off the original price.
2. Visit local vendors, you can probably haggle to good a good deal on the same items you find in the department store.
3. If you are good with arts and craft, think of creative gifts to give that you can make yourself.
4. Visit the dollar store to look for children's gifts.
5. If you have to buy gifts for several family members suggest a "Secret Santa" so only one person has to buy a gift for one person and set a limit on the amount spent.
6. Avoid buying gifts on Christmas Eve or the day before Christmas Eve. Selection is limited and lines at the register are longer. Out of desperation you may make bad choices and spend more spend than you have to.
7. Shop online, some companies waive shipping and handling fees during the holiday season.
8. Spend less money on gifts this year than you did the previous year.
9. If you have money after the holiday season and have paid all of your bills, buy gifts the day after Christmas. Department stores have great deals the day after Christmas and you may even get better deals than those offered during the Black Friday sales.
10. Make getting out of debt one of your new year's resolutions.

Limit for No Signature Purchases Increases Again

2011-12-16T09:32:00.002-05:00

You may have noticed recently merchants are allowing credit card or debit card purchases under $50 to be approved without a signature and in some cases without providing a receipt. I previously used my check card for most purchases but recently started using cash more often.

I went to the grocery store today and was shocked to learn that my debit card purchase which was under $50 did not require my signature. I looked puzzled and the cashier told me that I didn’t need to sign for purchases under $50. This left me feeling uncomfortable.

Merchants should post a sign in the stores informing consumers that purchases under $50 do not require a signature, include this in the consumer disclosure agreement and post it in an easily accessible section on their website.

Credit card and debit card companies feel that no-signature transactions speed up checkout and encourage consumers to make more purchases. However, this only put consumers at a higher risk for identity theft which could go undetected and cost a consumer from $50 up to thousands of dollars.

American Express has a No Signature program that allows certain merchants to process credit card transactions without a signature for purchases of $25 or less. HSBC has a Premier MasterCard with PayPass that uses Tap and Go technology with no signature required for purchase under $50. PayPass will work with Google Wallet and the Android application that makes your phone a wallet. Subway will begin accepting the MasterCard contactless payments at some of its locations by the end of the March 2012. For purchases under $50 no signature will be required. I discussed the contactless feature in my March 3, 2007 blog post, “Why You Shouldn’t Get a Contact Less Credit Card.

Merchants claims it meets customer needs but I disagree. My need is to use my credit card or debit card and feel safe knowing that my transaction is secure and I have proof that I made the transaction if the need arises in the future. Without a signature the process to investigate will take longer and the consumer suffers the most. Without a signature the cashier cannot verify the signature on the back of the card with the receipt signature. If a consumer loses their wallet or leaves their credit card or debit card at a store, transactions will add up quickly. Merchants claim that there has been no increase in fraud since using the no signature programs but I find that hard to believe. The FTC received over 1.3 million complaints regarding identity theft.

Chargebacks (money paid back to a consumer for a fraudulent charge) can cost a merchant up to $25 per transaction and for a $25 purchase a merchant barely breaks even. So to ensure merchants continue to make money the limit has been increased to $50. Here are 6 ways to protect yourself against No Signature programs:

1. Use cash more often.
2. Ask for a receipt.
3. Use a credit card or debit card for purchases over $50.
4. Verify your monthly statements and verify your account balances at least once a week.
5. Contact companies where you shop and express your opinion about their No Signature program.
6. Ask for a signature comparison if you are a victim of fraud.

Are CDs A Good Savings Option

2011-12-13T19:44:00.002-05:00

Certificate of Deposits (CDs) are available at most banks and credit unions. Some banks offer high interest rates for CDs than checking accounts such as Doral Bank, Discover Bank and MetLife Bank. Most CDs require a minimum balance of $1,000. A few banks require lower minimum balances such as Astoria Federal Savings and Citizens Trust banks however, they offer lower interest rates.

Banks make money with deposits from customers for savings and checking accounts, CDs, money market accounts, etc. and use that money to offer loans to individuals or businesses.

When you commit to a savings period of months or years, the bank loans your money since you don’t need it right away. Customers benefit from opening a CD account by earning more money from a higher interest rate. Customers who need to quickly access money do not benefit from opening a CD account. The pros of opening a CD account are:

1. The higher your deposit the higher interest rate you qualify for.
2. FDIC or NCUA insured.
3. Easy to open with usually a small amount, i.e. $500.
4. Offer different terms and interest rates.
5. Receive 100% of your initial investment plus interest earned.
6. Fixed interest rate.
7. Low to no risk.
8. You know how much you will earn.
9. Maturity periods range from 3 months to 5 years or longer.
10. Offers multiple savings methods such as laddering, step up and bump up.
11. Variable CDs have an interest rate that is tied to the stock indexes, if the indexes rise your interest rate increases.

The cons of opening a CD account are:
1. Interest rates may change.
2. If you need your money before the CD matures you will have to pay a penalty fee.
3. If you withdraw money before the CD matures your interest rate may be reduced.
4. Treated as a taxable investment so you pay taxes when the CD matures. You will pay federal, state and local taxes when the CD matures. For longer term CDs with higher interest rates you could pay more in taxes.
5. Interest rate may not keep up with inflation.
6. Earns less than the stock market.
7. Is not an investment vehicle.
8. If you choose a longer maturity and higher interest rate for a variable CD, you will lose access to funds and alternative uses of funds.
9. Interest rates are usually lower than a checking account but higher than a savings account.
10. You can’t make transactions.
11. You have to wait a specific time period to earn interest on your money.

Comparison shop to find the best deal for you at sites like www.bankrate.com/cd.aspx.

Should You Help Adult Children Financially

2011-12-10T22:21:00.001-05:00

According to NEFE: 50% of parents are providing housing, 48% are helping with living expenses, 29% of giving money and 28% are helping with medical bills. Moving back home is the only affordable option for many adults. Some adult children are moving back home due to unemployment, debt or divorce.

It is important to clarify expectations when helping adult children financially. Parents should make it clear to their children what they expect and set a time frame to move out or stop financial dependence. Some parents don’t want to see their children suffer but in some cases parents are hindering instead of helping their children. This is especially true if children mismanage their money or make bad life decisions.

Show and give adult children effective tools to improve their financial situation. Parents have to be cautious and prevent taking on their children’s problems and making them their own. Parents also have to take care of themselves first before they can help their children. Here are 14 ways for parents to financially support adult children.

1. See where you are. Determine if you can afford to help financially, if not, provide your children with other alternatives.
2. Charge rent. If you are not a position to incur the extra costs charge rent enough to cover groceries and increased utility usage to prevent going into debt and getting behind on your bills.
3. Pay yourself first. Pay your bills first to keep a roof over your head. If you have any additional money left over you can use a portion of that to help your children.
4. Set rules. Set ground rules for how your household is run and discuss them.
5. Save. Continue to save money while you are helping your children.
6. Don’t dip. Don’t dip into your retirement or take out a loan to help children. Don’t co-sign for a loan or open joint credit card accounts.
7. Debt. Don’t go further into debt helping your children.
8. Give advice. Give advice on how to manage finances and deal with problems.
9. Be supportive. Be as supportive as possible and try to see your children’s point of view.
10. Provide resources. Provide resources such as social organizations that can help.
11. Set a limit. Set a limit on how much you will help and stick to it.
12. Loaning. If you loan money to your children, don’t expect to get it back. If you want to get the money back write a formal letter stating the terms of the loan and when the loan must be paid back.
13. Move out. Set a date when your children have to move out and don’t change it.
14. Don’t give money. Don’t give money directly. If your children need money to pay bills send the money directly to the company. If your children need spending they should find ways to generate income.

When Will They Learn

2011-12-07T09:36:00.001-05:00

The NBA locked has ended. The day after the NBA lockout ended, some NBA players were partying at nightclubs and some were partying before the lockout ended. Some NBA players were experiencing financial issues during the lockout. Those who weren’t, partying is just a slap in the face to players struggling to pay their bills. No matter what your financial status, nothing last forever so it’s best to plan ahead and plan for the future. The NBA will probably experience another lockout so players you better be prepared. Here are 8 tips on how to lose your NBA salary:

1. Buy more than 1 car with a price tag of $300,000 or more.
2. Spend money on women, sneakers for everyone in your old neighborhood, buy drinks for everyone in the club or buy clothes for all your friends on a regular basis.
3. Blame everyone else except yourself for your financial problems.
4. Let someone else sign your checks.
5. Buy a home the size of Texas.
6. Spend your yearly salary in three montha.
7. Buy a plane, jet, yacht or something else equally as expensive.
8. Hire underhanded staff who steal all of your money.

Some NBA players make millions a year, some make over $200,000 a year which is enough to prevent filing for bankruptcy and more than enough to be considered above middle class. Unfortunately, many NBA players don’t know how to manage their money and don’t take the time to learn how. Many live paycheck to paycheck like some Americans, except their paycheck is larger. Here are 12 financial tips to ensure that you don’t file for bankruptcy, lose your home to foreclosure or have to work at Regency Furniture Showroom.

1. Create a support network. Hire an accountant, lawyer and financial advisor. Develop a great relationship with a banker and loan officer.
2. Learn about finances. Take a personal finance course, reach a book on personal finance or watch a television show to learn the basics about finances: learn how to invest, how to make your money grow, how to read financial statements, etc.
3. Know your worth. Know your net worth every year. Subtract your total liabilities from your total assets to determine your net worth. If the value is negative, you need to adjust your spending.
4. Reconcile. Reconcile your financial statements monthly but no less than every 3 months. Verify your account to ensure there are no errors and verify all your money is accounted for.
5. Set a signing limit. Set a signing limit for someone on your staff to sign checks for you if you don’t want to sign checks for small amounts. However, the advice Bill Cosby gave to Oprah was to sign your own checks and Oprah said she still signs most of hers.
6. Reduce spending. Reduce monthly expenses by 30% – 50%. Try to live off 60-70% of your yearly salary and save the rest of the money.
7. Unexpected. Create an emergency fund that has enough money to cover all of your monthly expenses for 9-12 months including child support.
8. Grow your money: Invest at least 20% of your monthly income after taxes, start a business or invest in a profitable business to grow your money.
9. Branding. Get as many endorsements as possible; create a website or blog or social media profile, create a logo, slogan, nickname or motto to establish a brand. Once you establish a brand it opens the doors to many other opportunities for generating income.
10. Get sponsors. Instead of throwing parties and paying for them yourself, get sponsors to pay for a portion or pay for the entire party. You can also have sponsor product giveaways for attendees. This saves you money and helps promote the sponsor’s products.
11. Inner Circle. Surround yourself with friends who having good spending habits who can provide advice on how to manage your money and help your money grow.
12. Think about tomorrow. Don’t live your life day to day, think about how you want to live your life in the next 5 - 10 years: where do you want to live, what lifestyle do you want to have, how will you earn money when your career is over, how will you pay child support, etc.

How to Get an A Plus Credit Score

2011-12-04T19:18:00.005-05:00

Many Americans have bad credit but more people have received bad credit ratings due to the recession. Bad credit can prevent you from getting hired for a job, or getting approved for a loan or credit card. You may be provided explanations of why you have bad credit but still may not understand what it means. One of the major factors in understanding your credit report and your credit score are the reason codes listed on your report. Some reason codes that may appear on your credit report are:

• Length of credit history – how long you have had credit, either a loan or credit card.
• Too many inquiries – you have had more than 1 or 2 companies pull your credit report within the last 24 months which lowers your credit score. You should have no more than 1 inquiry every 12 months if needed.
• Too many new accounts – you are considered a risk because you opened more than 1-2 new accounts within the last 24 months which lowers your credit score.
• Account balances too high – your credit cards are maxed out or the balances on your credit cards are above 50% of the credit card limit.
• Number of revolving and installment accounts – you need to have a mix of revolving (credit cards, line of credit) and installment accounts (loans).
• Recent delinquency – you had one or more accounts that were paid late in the past 0-3 years.

Your credit score consists of 5 factors which determines if you have good or bad credit: your payment history (35%), the total amount of debt owed (30%), length of your credit history (15%), new credit (10%), and the types of credit used (10%). A credit score ranges from 300-850 with 850 being the highest score. Your credit score is viewed as an indication of your trustworthiness and your ability to pay your bills on time.

Common myths about your credit score: paying a late account automatically increases your credit score, ignoring older accounts means you no longer have to pay them, if an account that is 7 years old is removed from your credit report you don’t have to pay it, medical bills don’t have to be paid, only loans and credit cards are reported on your credit report, and if you pull your credit report yourself this lowers your credit score. Here are 8 ways to get an “A” plus credit score.

1. Order your credit report and credit score from the 3 major credit bureaus, Experian, Equifax and TransUnion online at annualcreditreport.com or by phone at 877-322-8228. If you find any errors on your credit report dispute the information online for a quicker turnaround time. Mail any supporting documentation.
2. Pay off collection accounts, judgments, and tax liens as soon as possible. Each account paid can increase your credit score by 20-25 points.
3. Prior to paying a delinquent debt ask the company to remove it from your credit report. It is easier to negotiate prior to sending in your payment.
4. If you have been 30 days or more late on a credit card bill get current. Getting current on your credit card bills can increase your credit score by 20-30 points.
5. If your credit card balance is 50% or more over the credit card limit send your payment so that it arrives 5 to 7 days before the due date. This will ensure the most recent balance is updated to the credit bureaus each month.
6. Negotiate. Ask creditors to settle an account for 50%-70% of the total amount owed. In exchange for payment ask the creditor to remove the account from your credit report and request a confirmation letter stating the account will be removed prior to making a payment. If the creditor refuses ask the creditor to report the account as “paid” or “paid in full” on your credit report.
7. Pay balances in full at the end of each month.
8. Call your credit card company and tell them you would like to increase your credit score and ask them for some tips.

Is Rewards Checking Right for You

2011-11-30T17:28:00.000-05:00

Rewards checking accounts could be found at nearly any bank but not anymore. Only a few banks offer rewards checking accounts. Some banks have restricted their rewards checking accounts to new customers who are state residents. Banks make money with rewards checking accounts when customers spend a lot of money using their debit cards. Rewards checking accounts benefit savers. Spenders with low balances don’t reap the benefit. The pros of having a rewards checking account are:

1. FDIC or NCUA insured.
2. Can make purchases.
3. Can get an account with no fees or minimums.
4. Easier to obtain than a credit card.
5. Avoid finance, interest charges and late fees.
6. Multiple ways to earn points.
7. When making online purchases use your check card as a credit card to qualify for points.
8. Can use as a credit card instead of debit card for increased security protection.
9. Requirements: setup direct deposit, use online statements and/or banking, use a minimum number of times per month, login to your account at least once a month, may only earn interest on a portion of your deposit, transactions must post to your account no later than the qualification period.
10. Returning goods or canceling services treated the same as cash.
11. You don't have to carry cash, a checkbook or traveler's checks with you.

The cons of using a rewards checking account are:
1. You have to qualify.
2. Some merchants don’t require a signature for purchases under $50 or $25.
3. Using as a debit card for online purchases, paying bills or making a charitable donation may cause you to be ineligible for rewards.
4. ATM transactions may not earn rewards.
5. May require signature based transactions.
6. Interest rates may vary depending on the economy.
7. Some banks may charge a fee for using a check card as a debit card.
8. Some banks process debit charges although insufficient funds are in the account.
9. May not be accepted by some merchants unless it has a Visa or MasterCard logo.
10. May place a hold on your debit card for more than the cost of the purchase.
11. Provides less protection for purchases but you may dispute unauthorized charges or other mistakes within 60 days.

Comparison shop to find the best account for you using sites like www.money-rates.com/rewardschecking.htm.

Promising Help for Airline Travelers

2011-11-27T18:21:00.001-05:00

The cost to fly increases every year. What airlines fail to realize is that with every price increase, the number of passengers decreases. Everyone recognizes the high cost of gas but what is the justification for charging $100 for an oversized bag, $9 for a bag of peanuts or charging up to $150 for a child traveling alone. It would help me and possibly other travelers if the airlines explained why they charge the additional fees and how they determine the various prices.

Airlines began charging for baggage when rising fuel prices started to rise in 2005 and reached an all-time high in 2008 when the recession occurred. Airlines complained that they were not making enough money which is why they had to start charging customers additional fees. I wonder if their executives took a reduced salary to help minimize the profit loss. Not!

Some airlines allow you to travel with your first bag for free but few and far in between. Here is a breakdown of the top airline baggage fees: AirTran 1st bag $20, Southwest 1st bag free, American 1st bag $25, Delta 1st bag $25, JetBlue 1st bag free, United 1st bag $25 and US Airways 1st bag $25. Airlines charge for meals, oversized bags, baggage, traveling with a pet and an unaccompanied minor fee just to name a few. Traveling fees can range from $3- $584 in addition to airfare.

Senator Mary Landrieu has introduced a bill that would allow all passengers no matter what seating to check one bag for free. Senator Landrieu stated, “Many airlines consider checking a bag not to be a right, but a privilege — and one with a hefty fee attached,” and stated her legislation would “guarantee passengers one checked bag without the financial burden of paying a fee, or the headache of trying to fit everything into a carry-on.”

The bill would allow airline passengers to check one bag for free and prohibit fees for regular sized carry-on baggage. The bill would require that airlines tell passengers about restrictions on weight, size and number of bags prior to arriving at the airport. It would also mandate that airlines make public their fees for all types of baggage and for preferred seating.

As travel fees continue to increase, passengers will continue to find ways to carry on as much baggage as possible to save money. Eventually the fees charged by the airlines will backfire on them and they will be forced to lower their prices or go out of business. During the Thanksgiving holiday more passengers rode Amtrak and Greyhound or drove instead of flying. Here are 10 tips for saving money when flying:

1. Dates. Fly before a holiday and return after a holiday. Consider flying on a Tuesday or Wednesday during non-holiday periods. Traveling during Christmas and New Year’s is more expensive than traveling during Thanksgiving.
2. Read. Sign up for frequent flyer programs and credit card or checking rewards program that offer airline points. Read the terms and look for partners that offer miles.
3. Delay. Consider purchasing a flight with a layover to earn more miles and get a cheaper fare.
4. Earn Miles. If you don’t fly enough to use your miles some programs allow you to cash in your miles for subscriptions, gift cards or donations.
5. Trade. Ask about trading your frequent flyer miles for another airline’s frequent flyer miles using sites like points.com.
6. Buy. You can buy frequent flyer miles to boost your account balance.
7. Borrow. If you know a friend or family member that is not using their frequent flyer miles they can share their frequent flyer miles with you through the airline or through points.com.
8. Sell. You can sell your frequent flyer miles at sites like flyer-miles.com/sell-your-miles.
9. Weekend. Consider staying over on a Saturday night. This will save you money on airfare on hotel costs.
10. Early. Book your flight months in advance and sign up for flight alerts. Comparison shop to find the best deal.

Don't Be a Victim This Holiday Season

2011-11-24T09:28:00.002-05:00

The media and police are warning consumers to use caution and common sense when shopping during this holiday season. The holiday seasons are one of the highest crime periods of the year.

The unemployment rate is at 9.0%. Other Americans are only working part-time or minimum wage this holiday season people and thieves are more desperate than ever. Just today I went to the grocery store. A man bought a newspaper and then robbed the store.

Thieves are stealing gas, groceries out of the trunk of cars, performing snatch and grab where a purse is stolen out of a locked car, stealing grocery carts full of groceries when the customer walks to get their car; checking for unlocked car doors, apartment and homes doors or windows, stealing packages from UPS or FedEx and more.

Don’t be a victim this holiday season. It is better to be safe than sorry. Don’t think you are immune. Always be aware of your surroundings. Here are 26 tips to reduce your chances of being a victim this holiday season.

1. Lock all the doors and windows at your home when you are at home and away from home.
2. Get in your car quickly, don't linger. Lock your doors as soon as you get in the car.
3. If you are a single woman and hire a professional to fix something in your home, call a friend or relative to let them know you are getting work done in your home. Don’t answer questions that indicate you live alone. Put away any valuables and personally identifying information.
4. Don't discuss your salary, where you live or where you go shopping. You make spark the interest of a potential criminal or actual criminal.
5. Do not leave your child or pet alone in a locked car.
6. Don't leave anything in your car. Thieves are breaking into cars and stealing whatever they find, CD's, clothes, etc.
7. Don't use the ATM in a secluded, poorly lit area or at night.
8. Buy gas during the daytime.
9. Be on guard when riding in taxis, many drivers get robbed during the holidays.
10. If you feel someone is following you try to walk towards a lighted area or near other people. If that's not possible call a friend or family member from your cell phone. If you are attacked they can call the police and locate you.
11. Don't park near a van or truck this obstructs your vision especially at night.
12. Leave the mall before gets dark. Get a mall security guard to walk you to your car.
13. Don't go shopping when it’s dark but if you have to, go shopping with a friend or two.
14. Tear up boxes that contained expensive gifts and put them in a separate trash bag to deter thieves that may go through your trash.
15. When walking, shopping or driving use your Bluetooth. Talking without a Bluetooth is very distracting and thieves wait for the perfect opportunity to rob you while you are distracted.
16. If you are getting a package delivered have it delivered to a neighbor’s house.
17. If you order checks have them delivered to your bank.
18. If you go out of town use a timer on your lights. You can also have a friend or relative house sit while you are out of town.
19. If you go out of town, hold your mail at your local post office.
20. Don't carry your social security card or birth certificate card in your wallet.
21. Don't carry your checkbook unless you know you will write a check that day.
22. Only carry cash and possibly one credit card or your debit card.
23. If you come home when it's dark outside talk on your cell phone until you get in the house and lock the door.
24. If you are getting groceries out of your car close the car. When walking in your house lock your screen door behind you. Someone could walk in behind you without you knowing.
25. Avoid taking your trash out at night.
26. Don't fall for helping someone scams where someone asks you to walk away from your car to help someone.

Be safe this holiday!

Reduce Spending for Holiday Meals

2011-11-21T19:09:00.000-05:00

During the holidays it is so easy to spend money with all the advertisers, family and friends asking you to buy this or buy that. Resist the temptation to spend money that you don’t have, buy more than you need, or buy something you probably will not use simply because it is on sale. Many times items that are on sale are not really a bargain. Do comparison shopping to see if you can find the item for a cheaper price at another store or online. Here are 9 ways to save money shopping for meals this holiday season:

1. Plan ahead. Don't wait until the day before the holiday to go shopping. Lines at the register are longer and the selection of items is limited. Try shopping at least a week in advance or early in the morning.
2. Menu. Create a menu ahead of time and stick to it. Consider low cost items for the menu such as potato salad, salads, sweet potatoes, casseroles, etc.
3. Budget. Create a food budget and don’t go over your budget.
4. Local shopping. Visit local vendors to purchase meats, fruits and vegetables which will be much cheaper than the grocery store.
5. Ask for help. If you are having breakfast, brunch or dinner at your house ask friends and family to bring a dish to help cut downs on costs.
6. Coupons. Use coupons. Shop at stores that offer double coupons.
7. Shopping List. Use a shopping list and stick to it.
8. Return. If you realize you bought too much of one item return it to the store for a refund.
9. Leftovers. Freeze leftovers or take to work for lunch.

Watch Out for Layaway Tricks and Gimmicks

2011-11-18T09:49:00.005-05:00

Layaway programs became popular during the Great Depression. Layaway was used as a form of payment prior to credit cards. Layaway allowed consumers to purchase an item and pay for the item in installments. Once the item was paid in full, the consumer received the item.

As credit became available layaway programs became more popular with those who did not have access to credit – low-income shoppers. Layaway programs were phased out in the 1990s and most were completely eliminated.

Senator Charles Schumer is pushing that retailers inform consumers that layaway plans can actually cost a consumer more than using a credit card. Senator Schumer states that the cost of a layaway with a $5 fee can equal 40% interest over 2 months. Senator Schumer says if retailers don’t comply he will ask the Federal Trade Commission to determine if the practice is deceptive and misleading.

Senator Schumer said, “The holiday season is supposed to be about giving and not taking, but these layaway programs are taking advantage of people and charging them outrageous interest rates, under the guise of making it easier and more affordable to shop.”

Layaway is not a reason to spend more money than you should. Layaway requires you to be responsible shopper. Don’t go overboard this holiday season because of layaway. If you don’t have the money to buy something that means you can’t afford to buy it and don’t need it. You have to ask yourself why are stores bringing back layaway. Is it to help consumers? Wrong! Layaway was brought back so stores can make more money.

Some shoppers may feel the pressure of the holidays and may see layaway as a good option due to commercials and ease of the programs but don’t consider the hidden costs. Wal-Mart terminated its Christmas layaway program in 2006 but is bringing it back this holiday season. Some stores offer layaway for free year round in addition to the holiday shopping season. Some stores that offer layaway are: Wal-Mart, Sears, Best Buy, Kmart, TJMaxx, Burlington Coat Factory and Toys R Us. Here are 8 advantages of using layaway:

1. No interest.
2. Pay for items in installments over a period of time.
3. May be able to purchase items on sale.
4. No set payment schedule.
5. Purchase received when paid in full.
6. Easier and more convenient.
7. The fees and terms never change.
8. Doesn’t require a credit card or debit card.

Here are 13 disadvantages of using layaway:
1. Enrollment fee or service fee can range from $5 to 5% of the total purchase price.
2. Downpayments can range from 5 to 10% the total cost of the items.
3. Requires minimum purchase.
4. May have to pay the full cost of items instead of the sale price.
5. If an item goes on sale, you may not eligible to get the items at the new sales price.
6. If you miss a payment, your purchase may be canceled and you may lose any money paid or may be able to get store credit or a gift card.
7. Payments only accepted in person at the store.
8. Only available on certain items.
9. You have a certain amount of time to pay for the purchase usually 2 to 3 months.
10. Spend more in gas costs and mileage going to the store to make payments.
11. You may miss out on other sales such as Black Friday.
12. If the store goes out of business or files bankruptcy you lose your purchase and your money.
13. Online sites may require additional fees.

If you're unable to complete the payments by the due date, you have to pay a cancellation fee and/or restocking fee of $10 to $15. You may get back any money you paid on the items or lose all of your money depending on the store.

You don’t pay an interest rate using layaway but you do pay interest. You pay more for the purchase than if you just paid with cash. For example, if you put $300 worth of items in layaway, you will have to pay a service fee of $15 (5%) and another $30 (10%) for the down payment. The down payment is applied to your balance but the service fee is not. You will end up paying a total of $345 ($15 + $30) for your purchase or an additional 15% of the original cost of the item.

If you have to cancel your purchase you will pay $10-$15 so you will lose $25 - $30 (8.33 – 10%) of the cost of the item. Make sure you shop with a reputable name brand company.

The Dangers of Mobile Banking

2011-11-15T09:30:00.006-05:00

Over 230 million Americans use smartphones everyday but many are unaware of the dangers of using mobile banking. Smartphones have the potential to pose a real security threat. All smartphones should include good security software to allow users to block malware and locate a phone if lost. Users who access personal information or download applications are at greater risk.

Mobile banking also known as M-banking, mbanking or SMS banking allow customers to check balances, and perform account transactions using their smartphones. Some experts feel that Wells Fargo and Bank of America’s mobile banking services provide strong security and offer multiple downloadable applications. Mobile banking services vary based on the type of phone you are using, the cell phone plan and technology the bank is using.

There are several advantages to using mobile banking such as: easy access, many applications for smartphones, easy control of your money, availability 24/7 anywhere, anytime and no fees. Disadvantages to mobile banking is that mobile banking provides fewer services that internet banking and increases security risks.

Many big cities such as New York and Washington DC using mobile payments to allow drivers to pay for parking meters. Drivers register online and can pay for the parking and select the time they wish to purchase using an application or text message with the meter number.

Unfortunately mobile payments increases the chances of a driver getting a ticket as soon as the meter expires versus with traditional parking meters drivers may get lucky and get a few extra minutes on an expired parking meter.

BlackBerry software and core applications are digitally signed to ensure integrity preventing the smartphone functionality from being directly accessed by other applications. However, this does not mean that blackberry is immune to viruses or security risks.

iPhones do not provide security software because the iPhone does not share applications; the risk of spreading a virus from phone to phone is very low. If an iPhone has been altered or changed in any way this increases the chance of a security risk. This can cause the iPhone to download and run unauthorized software which can slow your system down and may lead to identity theft. However, this does not mean that iPhones are immune to viruses or security risks.

The Android software has less virus attacks because most of the viruses are written to attack Windows based programs. However Android is not immune to viruses. Here are the top 9 virus protection software for smartphones:

1. ESET Mobile Antivirus is only available for the Windows Mobile platform.
2. BullGuard Mobile Antivirus is available for pocket PCs and smartphones.
3. F-Secure Mobile Security Business is available on Windows Mobile and Symbian platforms.
4. Kapersky Mobile Security provides the same level of protection you would get on a computer.
5. McAfee Mobile Security for Enterprise antivirus anti-spyware software operates on any Windows Mobile based device.
6. Trend Micro Mobile Security is a package of Windows Mobile and Symbian antivirus software.
7. Norton Smartphone Security provides the same level of protection you would get on a computer. Norton Mobile Security Lite offers virus protection for smartphones and blackberries.
8. McAfee offer virus protection for smartphones and blackberries.
9. AVG offers virus protection for Androids.

Why You Should Give to Charities

2011-11-12T13:33:00.002-05:00

Do you donate to charity? Do you know why you donate to a specific charity? Do you make anonymous contributions or like to receive recognition? Whom do you give to, and why? Do you donate to small charities or larger ones? Do you donate only to tax deductible charities?

Google executive Sheryl Sandburg states that less than 1/3 of the money that individuals gave to nonprofits in 2005 reached the poor. A study by the Center on Philanthropy at Indiana University showed that only 8% of charitable donations provide basic necessities, food and shelter. Sandberg names two possible explanations for this “charity gap”: (1) It is easier to give to those in our own communities than to the truly economically disadvantaged who are outside our immediate circles of relationships; and (2) donors do not fully understand where their contributions are going.

Sandburg encourages Americans to consider the disconnect between their desires to do help the poor and the destination of their money. Americans donate the most to religious groups, education, foundations, health care organizations, human services and arts and humanity groups.

The US average for donating to charities is 2% or $76. The wealthy spend 3% of their monthly spending towards charity. Most charitable states are: Delaware, Washington, DC , Kansas, Oklahoma is the top state, and Washington. The United States is in the lower half of the top 20 of all countries that donate to charities. Approximately 86% of professional athletes donate to charities.

People give based on their identity: who they are and how they view themselves. The degree to which identities are flexible, involve a willingness to act, and help make sense of the world has significant implications determining whether and how much people give.

Benefits
Individuals who donate to charity may deduct contributions on their federal tax returns. Contributions must be made to legitimate charity to receive a deduction; contributions to a specific person may not be deducted. Keep careful records of money given through bank records or written communication from the charity, which includes the name of the organization, the date a contribution was given, and the amount.

For a deduction of $250 or more, individuals need written confirmation from the charity proving that the donation was contributed and if the charity provided any goods or services in exchange for the donation. Donating to charities provides a way for you to help others. You can donate to charities in several ways: through money, non-cash donations or time. Now more than ever charities need your help. There are so many people suffering in the United States and across the world but they need your help. Here are 6 questions to consider when donating to charities:

1. Is the charity recognized as a non-profit by the IRS? It’s necessary in order to write the donation off.
2. What percentage of my donation will go to the charities? Should be 75%+
3. How long have they been in operation? 5+ years, a proven track record is key
4. Have you been reducing services? If yes, that could be a red flag.
5. Do you have a year’s worth of operating capital? If yes, then it shows staying power.
6. Remember to get and store your receipt!

Here are 4 tips on donating to charities:
1. Charitable Organization. The organization must be recognized by the Internal Revenue Service as a 501(c)(3) tax-exempt nonprofit organization. Verify status by checking www.charitynavigator.org and www.guidestar.org.
2. Keep receipts. If you donate a cash gift greater than $250, the charity must acknowledge the gift in writing. If less, you’ll need a receipt, canceled check, or credit card statement. If you do payroll deduction, you need the pay stub or W-2 and they’ll provide acknowledgement saying this deduction was a charitable contribution. For non-cash gifts, request a receipt with the name and location of the nonprofit, date of the donation, and description of the item.
3. Give appreciated assets. Appreciated assets include stocks and real estate. By donating an appreciated asset, you can get the tax deduction based on the current value, not the lower value of the property when it was obtained.
4. Volunteer work deduction. Out-of-pocket expenses related to the volunteer work, can be deducted.

How A Tragedy Can Turn Into A Nightmare

2011-11-09T20:48:00.003-05:00

The death of Rapper Heavy D reminded us that tomorrow is not promised. It also provides valuable lessons that if your finances are not in order a sudden tragedy can turn into a nightmare. Sudden tragedies are personal life events that occur and can affect your financial security and well-being. Additional sources of income can change without warning.

Many families are caught off guard when a family member dies unexpectedly and struggle trying to mourn for their loved one and handle financial payments and funeral arrangements. Keeping your finances in order and providing important information to your family relieves a burden on them when a death occurs and makes the healing and mourning process easier.

If your parents, spouse or children refuse to talk about your death, get a neutral party such as an insurance provider to talk to them. To help prevent a sudden tragedy from turning into a financial nightmare follow these 18 tips.

1. Will. Create a will and update it at least one a year or if you experience a serious health change or life event change.
2. Lawyer. Establish a power of attorney which allows a person provides a written authorization to act on another person's behalf.
3. Health care proxy. Advance directives or health care proxies identify a person's wishes and preferences for medical treatments. When a patient is incapable of making medical decisions, a health-care proxy can act on the patient's behalf to make decisions consistent with the patient's will.
4. Trust. A trust manages the distribution of a person's assets by transferring it to other people. Trusts can be used to shield assets from estate taxes.
5. Advance Arrangements. If you are dying you can make advance arrangements or prepay for your funeral. Let your family know your wishes. Consider bundling services or prepaying for items if you know your wishes will not change or you don’t plan on moving to another state. This also spreads out the costs over a period of time which reduces the financial burden. The risk of prepaying for services is that the company may go out of business before the time of death.
6. Instructions. Leave instructions with your spouse, child or close friend and the executor of your estate such as: location of important papers, account numbers, list of assets and debt with balance, monthly payment and due date; contact information for your lawyer, financial advisor, doctor, your wishes for funeral arrangements, etc.
7. Beneficiary. Ensure beneficiary information is reviewed yearly on all insurance and financial documents, accounts, benefits, will or when a life change occur such as marriage, divorce, birth of a child, etc. Provide your beneficiaries with information to access your accounts including usernames and passwords, and contact information for your service providers.
8. Store. Keep a copy of all financial and important documents in one location: social security card, insurance policies, birth certificate, deeds, marriage certificate, passport, driver’s license, stock certificates, retirement and bank statements, tax returns, car title, etc. Make at least 5 copies of each document and store in different locations. Buy a waterproof and fireproof safe and store a copy of all important documents in the safe.
9. Be aware. If your spouse handles all of the finances become knowledgeable about the finances too.
10. Update. Update the deceased person’s assets or joint accounts to the survivor’s name.
11. Debt. Don’t pay any debt of a deceased person until you verify with a lawyer.
12. Taxes. Hire a tax preparer or accountant to prepare your taxes. The tax preparer will be knowledgeable about laws that affect beneficiaries and estates.
13. Comparison Shop. Get estimates of various services needed so you make create a budget for those expenses if you don’t have the money upfront. The average cost of a funeral can range from $2,000 to $10,000. Ensure your insurance policy at a minimum covers the funeral arrangements.
14. Burial Fund. You can create a burial fund to cover the cost of funeral arrangements which will be an extra source of funds that can cover unexpected costs. The fund should also have enough money to cover monthly expenses for 3-6 months. The ideal option is for 9-12 months.
15. Supplemental insurance. Consider purchasing supplemental insurance is Medicare does not cover all of your services or if you are not eligible for Medicare.
16. Long-term insurance. Consider purchasing long-term care and disability insurance as early as possible to save money on the cost and reduce the cost of future medical expenses.
17. Medical. Obtain copies of your medical records each year.
18. Primary Contact. Designate a family member as your primary contact to keep in touch with family, friends, employer, and service providers.

Balance Transfers Impact Credit Scores

2011-11-06T09:00:00.003-05:00

Repost from Creditcardguide.com

Need money for a small home remodeling job, or to make much needed car repairs? Or do you simply want to use a zero percent balance transfer offer to pay down high-interest credit card debt?

Th_balance-transferBefore you apply for that new balance transfer card, make sure you know the ins and outs of how balance transfers impact FICO scores so you can minimize potential disadvantages.

Taking out a balance transfer may lower your FICO score in the short-term. But it can also help boost your score over time. Here are the three ways in which taking out a balance transfer will impact your credit score.

1. Opening a new account will shorten the average length of your credit history. Any time you open a new credit card, it will shorten the average length of your overall credit history.

“About 15 percent of your FICO score takes into account the length of your credit history,” says Kim McGrigg, Community and Media Relations Manager at Money Management International. “Part of that average is all your accounts, so when you open a new account, obviously it affects the average length of credit history. If you close the old credit account, it will impact scores even more.”

The good news is that the impact on credit scores from opening a new account is small and relatively short-lived, as long as you follow good credit management practices on the new account. The key is to keep that old account open and use the card occasionally so it’s still active.

2. Credit inquiries will ding your FICO score.
Each time you apply for credit, a lender will check your credit history to determine if you’re a good credit risk. This will show up on your credit report as a “hard inquiry,” which can lower your score.

According to FICO, one credit inquiry every once in a while will have minimal impact, shaving as little as four to eight points off credit scores, and the effect, again, is relatively short-lived. However, frequent credit inquiries affect FICO scores proportionately more and the impact lasts longer.

3. Your credit utilization rate will suffer or improve, depending on how you use your balance transfer. Next to paying bills on time, your credit utilization rate, or debt-to-credit ratio, is one of the most important components of your FICO score. It makes up a full 30 percent of scores.

And when you take advantage of a balance transfer offer, it can hurt or help your credit utilization rate, depending on how you use the loan.

For example, if you open a zero percent APR balance transfer credit card in order to fund a small home remodeling project or large purchase that you plan to pay off gradually, your debt-to-credit utilization will increase, lowering your score. The impact may be blunted by the fact that your overall credit limit will also increase. However, if the loan is large enough, your score will still be negatively impacted until you pay down the loan.

On the other hand, if you take out a balance transfer to pay off existing high-interest debt on another credit card, your overall utilization will decrease. The amount of debt that you have will stay the same, but with the new credit card, you will have a greater overall credit limit, so the total debt-to-credit utilization will improve.

In addition, your within-card utilization may also improve, which help boost your score. For example, let’s say you apply for a new balance transfer credit card and get a card with a $10,000 limit. If you transfer $5,400 from a card with a $6,000 credit limit to a card with a $10,000 limit, you will lower your overall credit utilization — and you will lower the within-card utilization as well (from 90 percent utilization to 50 percent).

Your credit score may be temporarily dinged by opening a new account. However, because credit utilization accounts for a full 30 percent of your score and opening new accounts only affects 10 percent of your score, the overall impact will still be positive.

However, with that said, be aware that having extra credit available could also turn out to be a credit score liability if you’re not careful, warns McGrigg, especially if you keep your old account open and active.

“It’s true that if you don’t close the old account, you might actually have a chance to improve scores,” says McGrigg. “However, that’s only true if you don’t charge the account right up again. For many people, having an account with a zero balance is too tempting, and they might end up twice as much in debt as before.”

It’s also important that you don’t get complacent, warn experts. Transferring your debt to a lower interest balance transfer card may be a step in the right direction — but there’s still more work to be done.

“So many people think that [by] moving to a better account with a better interest rate, their problems are solved,” warns credit repair expert and financial literacy advocate Harrine Freeman, “But they’re really just moving money. Don’t get fooled by tricks and gimmicks. You don’t know what will happen in another year; you could move, you could lose your job. It’s best to just pay your debt the old-fashioned way.”

Read more at www.creditcardguide.com/creditcards/balance-transfer/balance_transfer-impacts-fico_score-1266/#ixzz1dAZGynNK

$10 Million Gone Wrong

2011-11-03T09:11:00.003-04:00

The Kim Kardashian wedding is an example of how one can waste money. It is estimated that her wedding cost $10 million. This is an example of $10 million gone wrong! It is reported that Kim Kardashian and her husband Kris Humphries received wedding gifts and some products and services free of charge. Other vendors provided discounted products and services.

It is reported that Kim Kardashian and her hubby earned over $18 million for their wedding: $100,000 from vacation photos in Mexico, $15 from E! for the wedding special, $2.5 million for wedding photos according to In Touch Weekly senior editor Dorothy Cascerceri. Kim Kardashian was also paid $1.5 million dollar deal for exclusive rights to wedding photos $50,000 for her bachelorette party at Club Tao in Las Vegas.

Kim Kardashian and Kim Humphries spent: $2 million for her engagement ring, $750,000 for snacks, $150,000 for hair and makeup, $200,000 for her wedding band and $2 million for flower arrangements.

Kim Kardashian borrowed jewelry worth $10 million – earrings valued at $5 million and a headpiece valued at $2.5 million. Kim received 3 free Vera Wang gowns valued at $60,000, Lehr and Black wedding invitations for free valued at $10,000 and a cake from Hansen’s Cake for free valued at $6,000.

Many believe the wedding was a publicity stunt. Time will only tell the real story. This wedding has caused several different reactions and anger among some due to the price tag.

If the companies that worked on Kim Kardashians wedding hired unemployed workers for at least 50% of the staff, what a difference it could have made in hundreds of lives. The average cost of a wedding $27,900. The average cost of three months of marriage counseling is $1,200. Had they gone to marriage counseling, they could have saved $10 million.

Events like this are a disappointment to the 14 million people unemployed, 8.8 million part-time employees; 3.5 million homeless Americans, 35.9 million Americans living in poverty and over 45 million Americans do not have health insurance.

This wedding is a good example of how not to spend money even if you can afford it. No matter what type of event you have you should always find a cheaper price. The truly wealthy spend money that they won’t miss. The rich spend money but have to continue to work to earn more money. Since most Americans are neither, it is best to spend less than you earn, comparison shop to find the cheapest price to stretch your money and only buy things that will have a lasting value instead of things that depreciate quickly and have no value like expensive weddings.

Here are 9 ways to save money on a wedding:
1. Date. Schedule the wedding during off-peak times such as October, November or January through March. Choose a weekend such as Friday or Sunday night. Saturdays are the most expensive.
2. Venue. Choose a non-traditional venue such as an outdoor garden, restaurant, home, or event hall.
3. Dress. Purchase the dress during sales, at consignment shops, designer or sample sales, eBay, or a consider a used gown.
4. Reception. Consider having a reception during the day. Brunch or lunch is cheaper than dinner. Select inexpensive options such as chicken or pasta. Don’t provide more than 2 options for guests to help keep costs low.
5. Drinks. Offer a cash bar or limited bar to keep costs low.
6. Cake. Choose a smaller cake just enough for invited guests; keep the design simple to save money.
7. Flowers. Spend money on your bouquet but choose seasonal or local flowers and keep arrangements simple.
8. Photographer. Get referrals from friends or family or look for inexpensive packages. Spend money on the most important pictures and consider hiring an intern and student for additional pictures.
9. Invitations. You can create your own invitations and get them printed at FedEx Kinkos or hire someone with calligraphy skills or an art or graphic design student.

You can have a nice wedding for less than $20,000. If you are in debt, have bad credit or the balance in your savings account is less than the cost of your wedding, consider changing your spending habits and your values regarding money. You don’t won’t to end up like Kim Kardashian spending lots of money with nothing to show for it.

A Breakdown of The Americans Jobs Act

2011-10-31T09:15:00.002-04:00

The Americans Jobs Act was submitted to Congress to help spur the economy and create jobs for millions of Americans but Congress did not approve it. The Americans jobs act has 5 key components: tax cuts to help small businesses grow, rebuilding and modernizing America, help unemployed Americans, tax cuts for employees and families and funding of the act through the long-term deficit reduction plan.

Unemployed
The Act would lower veteran unemployment. A new Returning Heroes Tax Credit up to $5,600 would be available for veterans who have been unemployed at least 6 months. A Wounded Warriors Tax Credit up to $9,600 would increase the tax credit for firms that hire veterans with service related disabilities that have been unemployed for at least 6 months.

The Act would extend unemployment insurance for 6 million unemployed Americans and provide services to help them become employed. The Act would also provide tax credits to employers that hire long-term unemployed. The Act would also provide support for summer and year round employment for youth and provide training to youth and adults. The Act would also work to eliminate discrimination against the unemployed.

Public Service Employees
The Act would prevent up to 280,000 teacher layoffs due to state and local budget reductions and keep police officers and firefighters employed. The Act would expand wireless internet services for police, fire fighters, and emergency services personnel.

Foreclosed Properties
The Act would rrehabilitate hundreds of thousands of foreclosed and vacant properties across the country; support banks to buy, hold and redevelop distressed properties and establish property maintenance programs for previously vacant and abandoned properties.

Small Businesses
The Americans Jobs Act would provide tax cuts to help small businesses who provide 90% of the jobs in the economy. The tax cuts would be available regardless of size or type of business. A 50% reduction in payroll tax would be available to small employers on their first $5 million in payroll reducing the tax to 3.1% in 2012. The payroll tax cut is believed to be one of the most effective ways to create jobs and reduce costs for small businesses.

The Act would help small business startups and existing businesses expand and accelerate government payments to small contractors. A one-stop online site would be created that small businesses could use to access government programs and services to help them compete globally. The Act would delay the Bush Administration’s 3% withholding of payments made to contractors.

The Act would temporarily increase the limit on SBA guaranteed surety bonds from $2 to $5 million to help small businesses compete for and win bids on infrastructure projects. The Act would also work with the Securities and Exchange Commission to reduce regulations that address costs incurred by small businesses complying with the Sarbanes-Oxley auditing requirements.

The Act would extend the 100% expensing provision that rewards companies for making investments by allowing them to deduct the full value (bonus depreciation) of investments such as wireless, energy efficient, technology improvements and other advances through 2012.

The Act will reform the patent system and allow small businesses to get their ideas to market faster to help grow the economy and provide innovative solutions. The Act would repair and modernize classrooms and hire laid off teachers. It would also repair and modernize roads, railways and airports.

What is the reason Congress didn’t want to approve this Act or at least a part of it? Write your congressman to ask them to help the President improve the economy or develop their own bills to help improve the economy.

A Life Raft for Student Loans

2011-10-28T23:23:00.008-04:00

Starting on July 1, 2014 the federal Income-Based Repayment (IBR) program would allow existing student loan borrowers to reduce their monthly student loan payments from 15% to 10% of their income.

President Obama recently developed a proposal called “Pay As You Earn” is a revision of the current IBR program that will help recent graduates can reduce student loan payments to 10% of their income starting in 2012 and would assistance more than 1.6 million people. The “Pay As You Earn” will also make it easier to participate in the program and work to educate student loan borrowers on the program.

The IBR is a repayment plan that caps your required monthly student loan payments on the major types of federal student loans at an amount based on income, family size, and state residence and if the IBR payment is lower than your current student loan payment. If you are married and file jointly, your spouse’s income is considered for eligibility in the IBR program.

All Stafford, PLUS, and Consolidation Loans available through the Direct Loan or Federal Family Education Loan (FFEL) programs are eligible. Loans currently in default and Parent PLUS Loans are not eligible. The program may increase the length of the loan repayment and accrue additional interest over the life of the loan. The program is most helpful for recent graduates or those who make a modest income.

Student loan borrowers with multiple student loans are being encouraged by the Department of Education to consolidate their FFEL loans into the Direct Loan program. The terms and conditions of the loans would remain the same, and starting in January 2012, would allow borrowers to make only one monthly payment.

Borrowers who take advantage of consolidation may be eligible to receive up to a 0.5% reduction on their interest rate: a 0.25% interest rate reduction on consolidated FFEL loans and 0.25% interest rate reduction on the entire consolidated FFEL and Direct Loan balance.

Contact your student loan servicer to find out how to sign up for the IBR program. Provide your feedback to the Consumer Financial Protection Bureau and the Department of Education on the new “Know Before You Owe” project to create a financial aid disclosure form to help current and prospective college students better understand the type and amount of aid they qualify for and compare financial aid packages offered by different colleges which would outline their total estimated student loan debt, monthly loan payments after graduation and additional costs not covered by federal student aid.

How to Save Money on Insurance

2011-10-25T05:40:00.003-04:00

Many consumers hate getting insurance because you feel like you rarely need to use it and is only need just in case something happens. For that reason, many consumers don’t purchase insurance. But, when that unexpected event happens, the cost of not having insurance can range up to the thousands.

Insurance is a form of protection against loss, damage or theft. Insurance should not be used as a form of investment or to get extra money. Insurance should provide enough to reimburse for loss or damages. Three benefits to having insurance are:

a. Can be used to reimburse for a loss that occurs
b. Protects against harm to something or someone
c. Saves you money in the future

There are several types of insurance available: life, health, auto, fire, home, dental, flood, disability (short-term and long-term), earthquake, umbrella policies and many more. The three most important types of insurance everyone should have are: disability, life, car and health.

Disability insurance is used if you have a short-term or long-term medical condition that prevents you from working and ensures that you continue to receive a paycheck, usually at least 60% of your current salary. Life insurance is used if a family member dies and should be enough to at least cover the costs of the burial. Health insurance reduces costs if you require medical treatment, preventive care or prescription medicine. Car insurance should be enough to cover the cost if you hit someone or if someone who is uninsured hits you.

If your employer does not provide health, life or disability insurance you can purchase insurance on your own. Comparison shop to find the best rate and services that you need. You can contact the Better Business Bureau or search their website for a company's reliability report. You can also comparison shop online with companies such Bankrate or Progressive.

Get a free analysis of your existing insurance coverage to see if you have enough or too little coverage. Many consumers have more coverage than needed. Many consumers get the coverage suggested by their insurance agent and don’t bother to answer questions or comparison shop. Here are some tips on how to save money on insurance.

Car Insurance
1. Comparison shop
2. Increase deductible
3. Only buy what you need
4. Ask for discounts
5. Keep a good driving record
6. Drive a car with money saving features
7. Drop collision or comprehensive
8. Keep good credit
9. Ask for an annual review to make any necessary adjustments

Homeowners Insurance
1. Comparison shop
2. Increase deductible
3. Only get enough for rebuilding costs not the value
4. Make your home disaster proof or resistant
5. Make your home secure
6. Ask for discounts
7. Keep good credit
8. Ask for an annual review to make any necessary adjustments
9. Pay insurance yourself instead of the mortgage company

Renter’s insurance
1. Comparison shop
2. Increase deductible
3. Only get enough for replacement costs not the value
4. Make your rental secure
5. Ask for discounts
6. Keep good credit
7. Ask for an annual review to make any necessary adjustments
8. Choose a good location
9. Reputation of company

Life Insurance
1. Comparison shop
2. Get coverage based on your needs not based on your wants
3. Get term life until you 60 or over then switch to whole life
4. Improve your health and ask for a reevaluation if you are in a high rate/risk policy
5. Ask for discounts
6. Keep good credit
7. Ask for an annual review to make any necessary adjustments
8. Purchase insurance with no fees
9. Pay annually or quarterly

Health Insurance
1. Comparison shop
2. Exercise, improve your eating habits and improve your health. Ask for a reevaluation if you are in a high rate/risk policy
3. Ask for an annual review to make any necessary adjustments
4. Keep good credit
5. Ask for discounts or reduced rates
6. Purchase through your employer
7. Get standard coverage at a minimum
8. Use health clinics
9. Purchase generic prescription drugs

Domestic Violence - Do You Know the Signs

2011-10-22T19:06:00.000-04:00

Domestic Violence comes in many forms: physical, sexual, financial, emotional (verbal) or threats or violence. Domestic violence also includes behavior that can intimidate, hurt, humiliate, injure, blame, scare or harass someone. If you have been a victim get professional help via a counselor, therapist, pastor or psychiatrist.

Domestic violence can have a tremendous impact on your life and the life of your children. Getting help is the only way gain strength to prevent being abused again. Every 9 seconds a woman is assaulted. Most domestic violence cases are never reported to the police. Women ages 20-24 are at the greatest risk for domestic violence.

If you are someone you know has been a victim of domestic violence encourage them to leave their current situation and get help. Here are some financial tips to help former or current victims of domestic violence. According to the National Domestic Violence Hotline these are signs of domestic violence.

Emotional Abuse:

• Calls you names, insults you or continually criticizes you.
• Does not trust you and acts jealous or possessive.
• Tries to isolate you from family or friends.
• Monitors where you go, who you call and who you spend time with.
• Watches your time, how you long it takes you to go somewhere and come back.
• Does not want you to work.
• Controls finances or refuses to share money.
• Punishes you by withholding affection.
• Expects you to ask permission to do something.
• Threatens to hurt you, the children, your family or your pets.
• Humiliates you in any way.
• Yells at you and then later apologizes.

Physical Abuse:
• Damages property when angry (throws objects, punches walls, kicked doors, etc.).
• Pushed, slapped, bitten, kicked or chokes you.
• Abandoned you in a dangerous or unfamiliar place.
• Scared you by driving recklessly.
• Used a weapon to threaten or hurt you.
• Forced you to leave your home.
• Trapped you in your home or kept you from leaving.
• Prevented you from calling police or seeking medical attention.
• Hurt your children.
• Used physical force in sexual situations.

Sexual Abuse:
• Views women as objects and believes in rigid gender roles.
• Accuses you of cheating or is often jealous of your outside relationships.
• Wants you to dress in a sexual way.
• Insults you in sexual ways or calls you sexual names.
• Has ever forced or manipulated you into to having sex or performing sexual acts.
• Held you down during sex.
• Demanded sex when you were sick, tired or after beating you.
• Hurt you with weapons or objects during sex.
• Involved other people in sexual activities with you.
• Ignored your feelings regarding sex.

Here are 13 financial tips to help you get back on you recover.

1. Reduce spending
2. Open a savings account and open a checking account with overdraft protection
3. Pay bills online
4. Use direct deposit for paychecks
5. Update beneficiary paperwork for insurance
6. Open one new account in your name
7. Close any joint accounts and cancel the cards
8. Purchase life insurance
9. Remove your name as an authorized user from accounts
10. Start a retirement account
11. Create a will
12. Develop a support network to get advice, support and encouragement
13. Seek professional help

Here are 8 resources to help you get out of your current situation.
1. www.thehotline.org or call 800-799-7233
2. ncadv.org/resources/StateCoalitionList.php
3. ncadv.org/resources/OtherUSOrganizations.php
4. Berry, D.B. (1995) Domestic Violence Sourcebook. Los Angeles: RGA Publishing Groups, Inc.
5. Brewster, S. (2000) To Be An Anchor in the Storm: A Guide for Families and Friends of Abused Women. Seattle: Seal Press.
6. Browne, A. (1989) When Battered Women Kill. New York: Free Press.
7. Brownmiller, S. (1993) Against Our Will: Men, Women, and Rape. New York: Random House.
8. Davies, J., Lyon, E. & Monti-Catania, D. (1998) Safety Planning with Battered Women: Complex Lives/Difficult Choices. Thousand Oaks, CA: Sage Publications.

Retirement Tips

2011-10-20T17:31:00.002-04:00

This is National Retirement Week. Have you saved enough for your retirement? If not, why? There are many ways to plan for retirement. Whatever method you choose it is a known fact that unless you are born in a wealthy family you will have to save for retirement. If you retire at age 65 you could live another 10-20 years which means you will need on average $1,000,000 to $1,600,000 depending on your salary.

This translates into contributing to a retirement account for a minimum of 20 years depending on your salary but more likely for 25 to 30 years or more on a consistent basis. The key to planning for retirement is to start planning as soon as your get your first job, planning early eliminates the need to play catch-up in your later years in life.

However, it is never too late to plan for retirement. No matter what your age you should put some money aside for your retirement even if you have to get a job after retirement which is better than having no money saved at all. Many people do not save enough and end up having to work well past their desired retirement age or have to get part-time jobs because social security is not enough to cover all of their expenses. Don't panic and get overwhelmed by the media, fear, anxiety and nervousness of those around you. Don’t let emotions cause you to make bad decisions. If it sounds too good to be true it is. Don’t let someone invest money for you that is not a licensed financial advisor.

How to Save for Retirement:
1. CDs/Bonds/Mutual Funds
2. Pay down debt
3. Contribute extra to your 401(k) or other retirement account
4. The motto is "buy low, sell high" is truly appropriate during an economic crisis. This is a great time to buy stocks or to invest in a mutual fund. When the market bounces back you will achieve great gains.
5. Sign up for matching employer contributions (free money)
6. Increase retirement contributions with each salary increase
7. Save at least 10-20% towards retirement
8. Scale back expenses within at least 1 to 5 years prior to your retirement date
9. Don't depend on your spouse's retirement account because your spouse may not have saved enough money for retirement
10. Review allocations yearly to make any necessary adjustments. Check your statement for any errors and notify your financial planner immediately.

Diversify at a minimum:
Pre-retirement invest 60% stocks, 40% bonds/cash; near retirement (5-10 years) invest 40% stocks, 60% bonds/cash; during retirement invest 20% stocks, 80% bonds/cash.

What to invest in:
1. Invest in emerging market funds (foreign markets)
2. Equities (mutual funds) or other items that return a dividend or capital gains
3. Pharmaceuticals
4. Oil and petroleum
5. Commodities (corn, soy, wheat, coffee beans, petroleum, copper, coal, salt, sugar, soy beans, aluminum, rice, gold, silver, palladium, platinum, electricity, gas, oil, etc.) when the prices are low.
6. Real estate, if the home’s value is low it can continue to decrease but over a long period of time you will gain equity and can make a profit
7. Defensive stocks don’t depend on economic prosperity such as the food and beverage industry, manufacturing companies such as Philip Morris, Proctor & Gamble and alcohol and tobacco
8. Under-priced stocks (offer price is lower than price of the first trade, however they carry a higher risk factor because they may not rise in the future) – IPO’s, airline stocks, small cap stocks, etc.
9. Utility stocks – water, gas, electric, telephone companies
10. Green technology and green energy stocks for long-term gains such as Canon, Green Mountain Coffee Roasters, Nike, Whole Foods, Google, etc.
11. Invest in Dividend Reinvestment Plan (DRIPs) to offset any losses you may have experienced or use it as an easy way to start investing.

The New Credit Score - Help or Hurt

2011-10-16T09:34:00.000-04:00

Many consumers have been plagued with the never ending changing rules for calculating credit scores, it seems as soon as consumers understand the system it changes. Once again the FICO company is changing the credit score rules.

Due to the recession or one small transaction many consumers are on the line between good and bad credit, one small slip up could plunge their score in the bad credit zone, one debt payoff could boost their score to good credit and save them in interest and fees.

The new FICO8 credit score can potentially help consumers obtain higher credit scores or lower scores for others, some consumers score will not be affected at all. The FICO score ranges from 300-850, 850 being the highest score. FICO updates its scoring model every 2-3 years.

FICO claims the new scoring model is more precise because it considers more types of consumers. FICO8 rates people who have missed payments on small debts under $100 easier which could help millions of consumers improve their credit scores. These types of accounts will not have the same impact as a missed mortgage or credit card payment. The FICO 8 considers people with high credit utilization rates (credit card balances) to be higher risks than under the previous FICO model.

Major lenders have been slow to switch to the new scoring model. Three years after the actual release, most major lenders still have yet to adopt it and is absent in the mortgage industry.

In June 2011, Citibank implemented the new FICO8 credit scoring model. Bank of America is in the process of implementing the FICO8 scoring model. Fannie Mae and Freddie Mac continue to use the older FICO credit scoring model.

Almost half of consumers have FICO8 scores that are close to their scores from the previous version of the FICO score. The main ways to maintain a good credit score under the FICO8 model are: pay your bills on time, keep credit card balances low, and open a new credit account only when you need it.

The FICO8 will look at high credit card balances differently and maxed out credit cards will lower credit scores more. Isolated late payments will weigh less heavily on your credit score. Multiple late payments will weigh more and decrease your credit score. Authorized credit card accounts will be included when calculating your credit score. The FICO8 score will ignore collection accounts with balances less than $100. The five major actions that can greatly lower your credit score are: maxed out credit cards, foreclosure, bankruptcy, 30 day or more late payments, debt settlement or loan modification.

FICO says the new score will help consumers. We will just have to wait and see.

The History of Bank of America

2011-10-13T09:10:00.000-04:00

Bank of America serves over 57 million customers with 5,900 banking centers and 18,000 ATMs in the U.S. Bank of America began in 1904 as the Bank of Italy in San Francisco by Amadeo Giannini to cater to immigrants who were denied service to other banks. In 1922, it was renamed as Bank of America and Bank of Italy branches. In 1927, Giannini consolidated Bank of Italy branches with Liberty Bank of America which was renamed Bank of Italy National Trust & Savings Association. In 1928, Giannini merged with Bank of America Los Angeles. In 1930, Bank of Italy was renamed Bank of America.

New technologies allowed credit cards to be linked to individual bank accounts. In 1958, the bank introduced the BankAmericard, which changed its name to Visa in 1975. Following the passage of the Bank Holding Company Act of 1956, BankAmerica Corporation was established to own Bank of America and its subsidiaries. BankAmerica expanded outside California in 1983 with its acquisition of Seafirst Corporation and its banking subsidiary, Seattle-First National Bank. BankAmerica continued to operate its new subsidiary as Seafirst until the 1998 merger with NationsBank.

BankAmerica's next acquisition occurred in 1992. The company acquired Security Pacific Corporation and its subsidiary Security Pacific National. At that time it was the largest bank acquisition in history. Federal regulators, however, forced the sale of approximately half of Security Pacific's Washington subsidiary, the former Rainier Bank. The combination of Seafirst and Security Pacific Washington would have given BankAmerica too large a share of the market in Washington state. The Washington branches were divided and sold off to West One Bancorp (now U.S. Bancorp) and KeyBank. Later that year, BankAmerica expanded into Nevada by acquiring Valley Bank of Nevada.

In 1994, BankAmerica acquired the Continental Illinois National Bank and Trust Company of Chicago. At the time, no bank had the resources to bail out Continental, so the federal government operated the bank for almost a decade. Illinois at that time regulated branch banking extremely heavily, so Bank of America Illinois was a single-unit bank until the 2000.

In 1997, BankAmerica acquired Robertson Stephens, a San Francisco-based investment bank. The bank was integrated into BancAmerica Securities and the combined subsidiary was renamed BancAmerica Robertson Stephens. BankAmerica was acquired by NationsBank in October 1998 and took the name Bank of America Corporation.

In 2004, Bank of America announced it would purchase Boston-based bank FleetBoston Financial. Also in 2004 Bank of America acquired Louisville from National City Corporation and rebranded it as BA Merchant Services. Bank of America also purchased FleetBoston Financial. On June 30, 2005, Bank of America announced it would purchase MBNA and was renamed FIA Card Services.

In August 2006 Banco Itaú agreed to purchase Bank of America's operations in Chile and Uruguay. On November 20, 2006, Bank of America announced the purchase of The United States Trust Company for $3.3 billion, from the Charles Schwab Corporation and the deal closed July 1, 2007.

On September 14, 2007, Bank of America won approval from the Federal Reserve to acquire LaSalle Bank Corporation from Netherlands's ABN AMRO North America and the deal closed on October 1, 2007.

On August 23, 2007 the company announced a $2 billion repurchase agreement for Countrywide Financial and the deal closed in July 2008. Countrywide Financial changed its name to Bank of America Home Loans. On September 14, 2008, Bank of America announced its intentions to purchase Merrill Lynch & Co., Inc. and the acquisition effectively saved Merrill from bankruptcy. This acquisition made Bank of America the largest financial services company in the world and the deal closed January 1, 2009.

Bank of America received Troubled Assets Relief Program (TARP) money twice as part of the deal of the merger with Merrill Lynch and repaid the $45 billion it had received from the TARP Program. On August 3, 2009, Bank of America agreed to pay a $33 million fine, without admission or denial of charges, to the SEC over the non-disclosure of an agreement to pay up to $5.8 billion of bonuses at Merrill Lynch. The bank approved the bonuses before the merger but did not disclose them to its shareholders when the shareholders were considering approving the Merrill acquisition.

In 2010, the bank was accused by the federal government of defrauding schools, hospitals, and some state and local government organizations due to misconduct and illegal activities involving the investment of proceeds from municipal bond sales. As a result, the bank agreed to pay $137.7 million, including $25 million to the IRS and $4.5 million to the state attorneys general, to the affected organizations to settle the allegations.

Former bank official Douglas Campbell pleaded guilty to conspiracy, antitrust and wire fraud charges. As of January 2011, other bankers and brokers are under indictment or investigation. Early in the year, the company conducted or announced personnel reductions of 36,000 people.

Bank of America provides services: personal banking, small business banking and corporate and institutional banking. Services provided in personal banking include: credit cards, mortgage, auto and personal loans, insurance, investment services, online banking, home equity and retirement. Small business services include: business checking and savings, credit cards, online banking services, automotive services and health insurance.

Why Athletes Need a Plan B

2011-10-10T09:08:00.002-04:00

Recently in the news there have been countless stories of professional athletes who have filed bankruptcy or are broke, in some cases due to the NBA lockout. Many people have asked how is this possible, how can someone who makes millions of dollars a year be broke. The answer is – there is a difference between being rich and being wealthy. Many athletes get caught in the frenzied lifestyle of buying multiple cars, homes, jewelry and spending money without tracking it. When their career is over the money is gone and they are forced to file foreclosure or bankruptcy.

Nothing lasts forever and that includes money. They don’t realize that the money will eventually stop coming in if you don’t have a plan B. Many athletes are focused on their sport, put all of their trust in their support staff and don’t take the time to learn how to manage their money and make it grow. Based on the pension plans of many professional athletic organizations all athletes should have a plan B. As we have learned from other professional athletes who trusted their financial staff, sometimes you have to take control of your financial destiny. Sports pension plans are another reason why athletes should have a plan B.

The NFL offers full benefits at age of 55, with a minimum payout of $200 a month for each season played in the NFL for playing at least 3 years in the league after 1992 or 4 years prior to 1992. NBA
players receive a minimum of $200 a month up to a maximum of $306.34 per month for each season played regardless of performance.

NHL players pensions require at least 160 games played for eligibility and are determined by the length of a player's career. Players who played less than 400 games can receive $8,000 per year starting at age 45. Players who played more than 400 games can receive $12,500 per year starting at age 45 and can receive an additional $250,000 a year starting at age of 55. MLB players can receive a pension after 43 days and can receive full medical benefits after one day. PGA players receive a pension based on a complicated formula to determine earnings for retired players with benefits starting at age of 50. If they continue to play benefits start at age 60. NASCAR does not offer a pension plan. Here are 14 ways professional athletes can develop a plan B.

1. Budget. Track your money in addition to hiring an accountant, lawyer, financial advisor and other financial industry professionals. Create a budget and don’t spend than your budget allows. Track spending, daily, weekly or monthly. Use online tools such as mint.com or online banking to help track spending.
2. Checks. Sign your checks. You can set a dollar limit for checks that do not require your signature but still be aware of what the check is for and verify that check is being paid to a legitimate company.
3. Scams. Be aware of scams. If it sounds too good to be true it usually is. Do research on the latest “hot business or financial tip” you get from a friend or associate. There are no quick ways to make money. Growing your money takes time so be patient.
4. Spend Less. Always spend less than you earn. Create a balanced budget. Learn how to stretch your dollar. A balanced budget is based on income after taxes and consists of: housing 35%, debt 15% (excluding mortgage), savings 10% (minimum), transportation 15%, and other expenses 25%.
5. Gossip. Ignore gossip and comments from others about what you should or should not have or how you should spend your money. They usually don’t have any money or have bad spending habits.
6. Impress. Avoid keeping up with the Jones’. Newsflash – the Jones’ are broke too.
7. Value. Forget about impressing people with what you have on the outside, impress people with what you have on the inside. Realize that your self-worth cannot be defined by material possessions.
8. Void. You cannot fill a void in your life by buying things or spending money. If you have a void in your life, seek professional guidance on how to eliminate the void.
9. Change Your Thinking. Change the way you think about money, live like a wealthy person instead of a poor person. Wealthy people shop at Wal-Mart, are informed consumers, are financially savvy and find ways to make their money grow. They don’t purchase in excess or buy things that have no value.
10. Educate. Educate yourself about how to successfully manage your finances and make your money grow. Review your financial statements each month to check for errors and ask questions if you don’t understand something. Read self-help books or articles on how to manage your finances with books by experts such as: Warren Buffet, Donald Trump, Napoleon Hill or The Millionaire Next Door.
11. Protect. Protect your wealth. Create a will and trust, and get health, life, disability, long-term care insurance to protect your finances and prevent you from going into debt if you become ill.
12. Future. Plan for tomorrow instead of living just for today. Instead of buying a home that costs $1.5 million, buy a home that costs $750,000. Instead of paying for expenses for all of your friends and family members provide options for them to make their own money. If they are physically able to work there is no need to take care of adults unless it is your parent or grandparents.
13. Outlook. Read self-help books on how to find happiness within. People who manage their money and people who are happy are less likely to spend money frivolously or are less likely to be in debt. Don’t dwell on what you don’t have, focus on what you do have and pass on life lessons to help others.
14. Legacy. For every action there is a reaction. Create a reputation for yourself that shows you excel in every aspect of your life. Don’t be a question mark when you die. Ensure your reputation will be something people will remember and speak highly of; you don’t want to be remembered as he used to have money, or he made millions but lost it, he could have been this or he could have been that. Be exceptional.

Everyday Fixes for Credit Scores

2011-10-07T09:07:00.002-04:00

Credit. Credit. Credit. Do you ever get tired of people talking about credit or asking for your credit score? Companies used to have IOUs and you would pay them back when you could. Credit has become an ugly monster in the world of finance. It has destroyed lives, caused suicide, caused health issues such as high blood pressure, depression, fear, anxiety and hopelessness. Is this the effect that credit card companies had in mind when they created credit in the 1950s? I don’t think so but greed has caused them to operate as a mafia.

Some owners, customer service representatives and collection agencies have no remorse, no feelings, and refuse to provide good customer service to help clients who are willing to pay back debt owed. Sometimes you feel as though you committed a crime based on how potential employers, current employers or companies treat you when they look at your credit score or when you owe a company money.

Credit is one of the most important aspects of your financial life. It is easy to create a credit history but can be hard to maintain. One you have bad credit it can take years to recover and establish good credit again. Here are 13 everyday tips on how to raise your credit score.

1. Pay bills on time
2. Get current on late payments
3. Pay more than the minimum monthly payment – pay multiple times per month
4. Pay late accounts in 3 installments
5. Re-age accounts
6. Get paid delinquent (negative) accounts removed from your credit report
7. Ask for a settlement or setup payment bills for late accounts
8. Ask a company not to report a late payment on your credit report if it is less than 90 days late
9. Open a secured credit card or a department store credit card to establish credit history or increase your credit score
10. Avoid cash advances, payday loans and home equity loans to pay down debt
11. Don’t open new accounts often
12. Don’t close old accounts that are 2 or more years old, this will lower your credit score
13. Keep credit card balances at 20% or less of the credit limit

Bank of America

2011-10-04T22:09:00.001-04:00

In my article entitled, “Are Debit Cards Dead” on my blog on September 16, 2011, I mentioned that some banks would increase their ATM and other fees to $5 due to the changes from the Dodd-Frank Act. No matter how much money a company makes or losses they still find a way to pay their executives millions of dollars a year, so why can’t they pay their debt and manage their money better.

Free checking at some banks such as Bank of America will be eliminated. TD Bank still offer debit cards. Some banks have eliminated or reduced debit card rewards programs. Chase, SunTrust, Continental and United ended their debit card rewards program. Other banks charge business owners a fee when using a business debit card. Bank of America will begin charging customers that use debit cards a $5 monthly fee regardless of the number of purchases made starting early next year.

Debit cards are good because:
• Prevents consumers with bad credit from overspending
• Yu don't have to carry cash, a checkbook or traveler's checks with you
• They are accepted at many locations
• Is easier to obtain than a credit card
• You don’t have to show identification or give personal information at the time of the transaction
• Returning goods or canceling services treated the same as cash
• Avoid finance, interest charges and late fees
• May get perks such cash back rebates, airline miles, etc.
Debit cards are bad because:
• There is no grace period
• Some banks may charge a fee for using a check card as a debit card
• Transactions are verified to see if there are adequate funds
• Some banks process debit charges although insufficient funds are in the account and you will be charged $30 for every transaction that occurs when the account is overdrawn
• May not be accepted by some merchants unless it has a Visa or MasterCard logo
• May place a hold on your debit card for more than the cost of the purchase
• Provides less protection for purchases but you may dispute unauthorized charges or other mistakes within 60 days.

In my article entitled, “Do You Have Swipeitis” on my blog on July 7, 2011, I mentioned that we are addicted to using our debit cards. Here are 13 alternatives to make purchases without using a debit card.

1. Create a budget. Create a budget to track your spending daily or weekly. Set aside a specific amount for extra things you want. One reach that amount don’t spend anymore.
2. Pay your bills first. Pay your bills first. Put a portion of any extra money left over in a savings account.
3. Switch banks. Switch to another bank that has little to no fees.
4. Alternate payment. Write checks, get money orders or cashier’s checks, and use automatic paycheck deduction or online banking to pay bills.
5. Credit union. Switch to a credit union which generally offers the same products and charge lower fees.
6. Pay with cash. Go to the bank or ATM and take out the amount of cash you need for the week. Once you spend that amount don’t withdraw any additional money unless it is an emergency.
7. Use prepaid debit cards. Use prepaid debit cards to make purchases.
8. Local branch. Go to your local branch and make transactions.
9. Get a receipt. Get a receipt each time you make a purchase and keep it.
10. Track spending. Take all of your receipts from your debit card purchases and put them in an envelope. At the end of each week add up the receipts to see how much you spent. Use pen and paper, an Excel spreadsheet or Mint.com.
11. Wait. Wait a few days before making a purchase. Go back to the store to see if you still want the item. If you still want the item, comparison shop to see which store offers the best price.
12. Impulse Shopping. Avoid shopping when you are emotional. This will prevent you from spending more than you have or buying unnecessary items.
13. Leave at home. Leave your debit card at home unless you know you will make a purchase. This helps to reduce the temptation to make an unnecessary purchase.

The best way to send a message to Bank of America that you are not happy with the new debit card policy is by switching to another bank.

Starting Over is Not So Bad

2011-10-01T20:59:00.004-04:00

“Ever tried. Ever failed. No matter. Try Again. Fail again. Fail better” by Samuel Beckett is a great way to explain why you should start over. Making a change is grueling and doesn’t happen overnight. If you want to make a change in your life you have to first change your thinking. Thoughts become feelings, feelings become words and words become actions. You may have to relocate, change your job, change your friends, change your diet or change every aspect of your life.

Change is scary but that is a part of life and growing. As a baby you totally depended on your parents to carry you around because you couldn’t walk. You began crawling then taking steps to walk. Babies are overcome with fear, once the overcome their fear they began walking, then running, then talking then talking and running all over the place.

Change is good. Over 1.5 million people filed for personal bankruptcy in 2010. Over fifty six thousand businesses filed bankruptcy y in 2010 (56,282). Henry Ford went broke five times before he started Ford Motor Company. R.H Macy failed seven times before opening his Macy’s store in New York City. Colonel Sanders (Harland David Sanders) of Kentucky Fried Chicken recipe was rejected 1,009 times before a restaurant accepted it. Thomas Edison made 1,000 unsuccessful attempts at inventing the light bulb.

Making a change takes time and effort. After failure comes success but may require that you fail multiple times before you become successful. Being successful is hard work. Anything worth achieving is worth working hard for. The difference between being a failure and being a success is your attitude. If you choose to remain a failure you will. If you choose to see the failure as a lesson and don’t repeat the same mistake you will become a success. Failure is the seed of success. Failure helps birth success as evidenced by successful people in the world today. Failure is a great lesson; it shows you what didn’t work and what you need to be do better next time. Failure helps you to develop a plan B, C, D or even E.

Failure happens so expect it but don’t dwell on it. I have been a failure several times in my life, in my career, relationships, and with money. I went to college and got my first credit card at age 17. By the time I graduated college I had 13 credit cards and racked up $19,000 in debt, one was a gas card and I didn’t even have a car or a driver’s license. When I got my first job I was only making $21,000 a year. I failed at using a credit card and continued to fail for 4 years. When I lost my job and realized that I was unable to pay my bills, the light bulb came on and I knew I could not continue to fail at using credit. I made a decision to get myself out of debt and never get into debt again and I did. The only debt I have is my mortgage. Here are 5 ways why starting over is not so bad.

1. Never say never. We don’t know what the future holds so don’t assume that your current state in any aspect of your life will remain that way, plan for the unexpected.
2. Be a winner. Decide you will be a winner and take steps to overcome your situation. Let go of your pride and ego. Humble yourself. Ignore advice from those who are not successful.
3. Future. Be a role model for your children, family and future generations to show them that failure is not a permanent option; it is merely one stop in the path of life.
4. Change is good. Sometimes change helps us to refocus on what is really important so don’t reject change, embrace it.
5. Outlook. Change your outlook on life. Eliminate negative behaviors, thoughts and people from your life. Read inspirational articles or books such as “The Secret” by Rhonda Byrne, “Think and Grow Rich” by Napoleon Hill or The Law of Attraction.

Top Notch Investing Tips

2011-09-28T21:48:00.008-04:00

An economic recession is the best time to invest because companies are hurting for business and are eager to get new clients. In addition, stock prices are lower so you will get more for your buck by purchasing shares at lower prices.

You will need at least 70-80% of your income during retirement so contribute as much as you can each year. It is never too late to start investing, it’s better to have a small amount than nothing at all. Here are 9 beginner investing tips.

1. Sign up for your employer's retirement plan and use the matching contributions benefit.
2. Setup a separate IRA using automatic paycheck deduction to help reduce taxes and in the event your employer goes bankrupt. Invest with an established investment company or brokerage company such as Charles Schwab or Price Waterhouse Coopers and ask questions about your investments.
3. Invest in mutual funds if you are not knowledgeable about investing.
4. If you have some extra money to play around with you can invest in companies that never go out of business: grocery stores, oil companies, car repair shops, pharmaceutical companies, information technology companies, etc.
5. Diversify your portfolio to minimize losses. Put a portion of your money in stocks/mutual funds, a portion in low risk investments such as bonds and a portion in medium risk investments such as large cap funds, etc.
6. Review your retirement statement to check for any errors.
7. Educate yourself and know at least the basics about investing so you will know whether your financial advisor is providing you with correct advice.
8. Find an investing mentor or role model. Ask questions and get advice on investing and how to grow you money in the stock market.
9. Gain additional knowledge by reading books by investing experts and watching financial television shows or reading articles on financial websites.

Extraordinary Ways to Pay Off Debt

2011-09-25T09:34:00.000-04:00

The recession is not over. Unemployment is still at 9.1%. Over 1,000,000 Americans have foreclosed on their homes last year. If you employed and are in debt, get out of debt as soon as possible. The future is unknown. Americans have to plan for their future which includes eliminating debt, saving and investing. It took a long time to get into debt and will take a long time to get out of debt – but with patience, sacrifice and dedication you can live a debt free life.

A budget is a critical component of paying down debt and determining how much money you earn, you owe and you spend. This can be done using a tool or pen and paper either daily, weekly or monthly. One critical component of getting out of and staying out of debt is creating an emergency fund.

A unique way to get out of debt is to follow the Voluntary Simplicity Movement which only allows for purchasing basic necessities. Pay down debt using online banking or automatic paycheck deductions. Here are 13 ways to pay down debt.

Car Loans

1. Shorten time. Get a car loan for 4 years or less. Then pay off the loan before the payoff date. Cars depreciate quickly and lose most of their value for loans that are extended beyond 5 years.
2. Interest. If your interest rate is higher than 6%, after six months refinance to get a lower interest rate.
3. Maintenance. Keep your car well maintained and visit a mechanic using the factory suggestions which helps saves money. Keep your car for at least 7 years instead of trading it in to get a new one.
4. Insurance. Keep your car properly insured with affordable deductibles. Paying high deductibles saves you money upfront but causes you to spend more money on accident repairs and delays getting much needed repairs.

Mortgage

1. ARMs. Avoid getting ARMs or balloon payments. These are risky options. If you must get an ARM or balloon payment get mortgage insurance that pays your mortgage payment if you become disabled or lose your job.
2. Refinance. If your interest rate is higher than 6%, after six months refinance to get a lower interest rate. This will reduce your monthly payment and save you money over the life of the loan.
3. Pay off. Send extra money towards your principal to pay your mortgage off faster. Don’t retire until your home is paid off. Once you have at least 20% equity in your home under a conventional loan you no longer have to pay PMI so ask your lender to re-assess your home to have it removed. This will save you money on your monthly payment.
4. Avoid borrowing equity. Avoid borrowing equity against your home to pay down credit card or other debt, go on vacation or pay for home repairs. If you default on the home equity loan or home line or credit you risk losing your home and this will lower your credit score.

Credit Cards

1. Pay more. Pay more than the minimum monthly payment. Pay the balance in full each month or pay multiple times a month by sending a payment each week or during each pay period.
2. Stay low. Keep credit card balances at 20% or less of the credit limit to keep debt low. Debt should be no more than 15% of your total monthly budget after taxes. Credit cards with balances at 30% or above the limit will lower your credit score.
3. Stop spending. Skip using your credit card like a debit card. Charges can add up quickly. Leave your credit cards at home. Use credit card for emergencies only. Pay for items with cash. If you don’t have the money to pay for it, don’t buy it.
4. Avoid quick fixes. Avoid getting a cash advance or balance transfers. Interest rates on cash advances are higher than the regular credit card interest rate and can cause your credit card balance to quickly increase. A balance transfer is just a band-aid solution and can cause you to go deeper into debt once the promotion expires.
5. Waive fees. If your account is in good standing call the credit card company and ask them to waive any late fees or other fees.

Why You Still Need Insurance

2011-09-22T09:07:00.001-04:00

September is Life Insurance Awareness Month which reminds consumers of the benefits of having life insurance. The recent earthquakes and hurricanes that the east coast experienced last month are another reminder why consumers need insurance. Many homeowners and auto owners suffered loss or damages due to the earthquake and hurricanes. For those who did not have insurance, repairs will be costly.

Insurance is a form of protection against loss, damage or theft. Insurance should not be used as a form of investment or to get extra money. Insurance should provide enough to reimburse for loss or damages. Three benefits to having insurance are:

a. Can be used to reimburse for a loss that occurs
b. Protects against harm to something or someone
c. Saves you money in the future

There are several types of insurance available: life, health, auto, fire, home, dental, flood, disability (short-term and long-term), and many more. The three most important types of insurance everyone should have are: disability, life and health.

Get a free analysis of your existing coverage to see if you have enough or too little coverage. Many consumers have more coverage than needed. Many consumers get the coverage suggested by their insurance agent and don’t bother to answer questions or comparison shop.

When you purchase a new car, it is wise to get collision and comprehensive coverage but as your car gets older you may only need to have collision coverage. This step could save you anywhere from $50 to $200 a month. Collision coverage should be adjusted annually or every two years and should be based on the value of your car. Also, verify your liability coverage and adjust as needed. Here are 10 ways to save money on insurance.

1. Increase deductibles. Increase deductibles to lower your monthly premium. This will save you money and prevent you from filing minor claims which can increase your premium.
2. Assess. Assess the assess the replacement value of your insured items – car, home, health, etc. If you house is worth $200,000 or the cost to rebuild you home is $200,000 but you only have coverage for $100,000, you need to adjust.
3. Reputation. Research the insurance company on the Better Business Bureau website or the internet to gather information on any complaints or the quality of customer service.
4. Home. Consider waving payment of your homeowner’s insurance by your mortgage company and pay it on your own. This can save you anywhere from $50 to $300 a year.
5. Health. Many consumers file bankruptcy or have bad credit due to medical bills. The increasing high cost of health care services and prescriptions is the main reason why everyone should have health insurance including dental and vision insurance if you wear glasses.
6. Life. Adjust your life insurance policy as home environment changes. Update every 5 years and when your children become adults, your spouse retires, etc.
7. If you have multiple insurance products with different companies contact each company and get a quote for bundling your products to help you save money.
8. Companies always provide discounts or specials but do not always advertise them. Every 3-6 months call each service provider and ask if they are offering any specials and what discounts they have available for the services you currently have.
9. What If. List different scenarios that could happen and make sure you have enough insurance coverage for each scenario, i.e. job loss, sickness, death, new baby, loss of health insurance or other benefits, car repair, etc.
10. Research. Comparison shop for insurance with sites such as Bankrate, Progressive, AARP or ehealthinsurance.com to find the best insurance coverage.

Getting the right coverage will save you money in the future and help you get over any financial crisis you may experience.

NBA Players Welcome to the Real World

2011-09-19T09:08:00.007-04:00

NBA Players make more than 90% of the U.S. population. They get to travel across the country for free by the NBA. You get paid for doing a job you love. Most Americans work a job that they hate and have no other options.

Many times players are lured into the NBA and believe that their lifestyle will last forever so they aren’t concerned with how much money they spend – but nothing lasts forever. Americans learned the hard lesson that nothing in life is guaranteed and that life can be hard.

NBA Players suffer from the Instant Gratification Syndrome, you want everything right now. You spend money that you earn in the future to buy things in the present. You have no right to complain that you can’t pay your bills. No one made you buy a multi-millionaire dollar home; spend money on partying, women, designer clothes, jewelry, and things that have no value. You made those choices.

You decided that living that lifestyle was what you wanted and more important than planning for your future. Don’t be like Chris McAlister of the Ravens.

Immigrants that were brought to this country or migrated to this country knew the value of hard work; they did whatever they had to do to make a living even if it meant making sacrifices or working multiple jobs. Americans are spoiled and have forgotten how to survive. If one option stops working, find another option.

Yes you should be treated fairly by your employer but you should always look for other options. You can use your celebrity status to create a radio show, a television show, a clothing line, a sneaker line, sunglasses, hats, become a speaker, become a board member or advisory committee member for a national company or start a business. So many options are available to you and are easier for you to attain because of your celebrity status and the people you have at your disposal.

NBA owners are denying players adequate pension plans and requesting stricter salary caps. You can’t have it both ways. You have to provide one option or other. This will continue to lead to future lockouts until owners realize they are nothing without the players. Here are 7 tips to plan for your future.

1. Save. Save. Save. Save at least 30-50% of your income each month.
2. Retirement. Sign up for the NBA Retirement Association. You only get a small amount of income but if you combine it with additional steams of income through endorsements or businesses you should be able to retire comfortably.
3. Downsize. Downsize your lifestyle. Who are you trying to impress with your ferrari, maybach, diamond watches, and millionaire dollar home. People may be fascinated by the things you have but no one really cares. When you retire what do you want people to remember about you, that you lived in a million dollar home that you couldn’t afford or that you helped your community.
4. Think About Tomorrow. You can get traded, released or hurt at any time. Plan for your future so that you don’t have to file for bankruptcy or foreclosure.
5. Role Model. Be the best person you can be and serve as a role model for youth and younger players to prevent them from making the mistakes you made.
6. Give. Donate to charities or start your own foundation. This helps to reduce your tax liability and provides greatly needed assistance to social organizations that have been affected by the recession.
7. Say No. Learn how to say no to friends, strangers, relatives who ask to borrow money or ask you to buy something. If you always lend money you only enable that person to be dependent on you forever. Show them how to earn their own money so they don’t have to ask you for money.

You determined your self-worth by the things you own instead of realizing that your self-worth comes from within. No matter how much money you have it cannot make you happy and cannot fill a void in your life.

Think how different your life would be during the lockout if you saved at least one year’s salary, if you only bought one car or if you lived in smaller house. When you experience a financial crisis, your true character is tested. You either become a winner or loser.

Determine that you will always be a winner. Don’t let anyone determine your destiny, determine your own destiny. Money can generate wealth or generate debt you make the choice.

Are Debit Cards Dead

2011-09-16T09:21:00.005-04:00

The Credit CARD Act of 2009, as well as the Dodd-Frank Act Financial Reform Act and interchange and overdraft fee reform, have reduced revenue banks earned from the credit and debit cards consumers. Banks have responded by reducing or eliminating rewards programs and other perks and increasing ATM fees to $5 and increasing other bank fees.

Some reward cards program will be funded by retailers where you use your card instead of the banks. If frequently shop at specific businesses your bank may request that the retailer offer discounts.

This however can work against consumers because it will force consumers to spend more money to get fewer discounts. Retailer claims consumers will get more discounts and offers based on their shopping history. Consumers can still get rewards with airlines, hotels and credit cards.

Wells Fargo ended it's debit rewards card program and is currently testing a $3 monthly fee for debit card users in four states. Chase, SunTrust, Continental and United ended their debit card rewards program in July 2011. Free checking at some banks such as Bank of America will also be eliminated. TD Bank still offer debit cards.

Ally Bank offers a debit card reward program that puts cash into a consumer’s account. However, consumers do not earn points or miles with every purchase. The cash is used for making purchases through partner retailers.

Perk Street Financial offers an online checking account that provides rewards for any checkcard card credit transactions. You can earn 2% cash back if your balance is over $5,000 up to 90 days.

If your balance is under $5,000 after the 90 days introductory period, you will earn 1% rewards. The bank doesn’t charge monthly maintenance fees and offer 5% cash back with partner vendors which change each month. Use financial site like bankrate.com to comparison shop for debit card reward programs to find the best deal.

Self Publishing Seminar

2011-09-13T18:13:00.000-04:00

Self Publish Your Way to the Top Seminar on 9/29/11 in Silver Spring, MD.

If you always wanted to write a book but don't know how or if you already wrote a book and want to know how to get it into bookstores, this seminar is for you. Registration is required http://selfpublishyourway.eventbrite.com/.

Learn how to:
1. Get Started
2. Titles That Sell
3. Editing
4. Marketing
5. Booking Interviews
6. Organizing Your Book
7. Cover Design Tips
8. Pricing
and more!

Beware of Prepaid Cards

2011-09-12T09:25:00.000-04:00

Prepaid cards are reloadable and can be used for purchases at businesses that accept credit cards and can sometimes be used for ATM withdrawals. A prepaid card should be used in addition to having a traditional bank account but should not solely for money transactions.

There are many advantages to using prepaid cards but there are also many disadvantages. Prepaid cards work similar to debit cards for making payments or purchasing items.

Prepaid cards are helpful for those who cannot get a credit card or open a bank account due to bad credit. Prepaid cards are also helpful if you don’t want to carry large amounts of cash but should only be used as a temporary measure until your financial situation improves.

Prepaid cards have activation fees, monthly fees and other hidden fees. Some prepaid cards have activation fees up to $39.95 but most fees range from $2.95 - $9.95. They also have less protection against loss or theft. Be sure that the bank prepaid card you use is FDIC insured. Prepaid cards are not reported on your credit report and cannot help rebuild your credit.

Some consumers have been scammed by companies regarding prepaid cards. Over 100,000 consumers who paid for payday loans online were tricked into paying for prepaid cards instead. Consumers signed up for payday loans but were tricked into signing up for prepaid cards with a zero balance. Consumers paid up to $54.95 for the cards. However, the Federal Trade Commission sued the company Epiq Systems and required a refund of $1.9 million dollars for refunds ranging from $10-$15 each.

Many non-financial companies also offer prepaid cards such as Facebook which is available at Target and Wal-Mart. The cards can be used to purchase Facebook credits which are applied to purchase games or other applications. Comparison shop and read all the fine print before choosing a prepaid card.

Homeowner Refinance Proposal

2011-09-09T10:00:00.004-04:00

A new proposal by federal regulators will require homeowners who want to refinance a home provide a 10-20% down payment or have 25-30% in equity. This rule was developed to comply with the Dodd-Frank Bill to overhaul the mortgage industry.

Unfortunately, this requirement will prevent many homeowners from refinancing their homes that have ARMs, balloon payment or high interest rates. This requirement would affect 25 million homeowners who will have to pay higher costs to refinance. Due to the recession many homeowners have less than 25% equity in their homes or no equity at all.

Homeowners who do not meet the requirements will have to pay 0.8 – 1.85% more in the interest rate. This proposed requirement also penalizes homeowners who have good credit who will be forced into less than favorable refinancing options.

This new proposal ignores the benefit of homeowners refinancing which would reduce the number of foreclosures and mortgage default rate. This will also slow the growth of the economy and middle class by stalling the housing market and reducing additional revenue that could be generated for mortgage industry companies.
Write your congressman to submit your comments about this proposed legislation.

The Debt Ceiling and Student Loans

2011-09-06T21:29:00.000-04:00

The passage of the debt ceiling includes a $17 billion increase in spending for Pell grants and scholarships for low-income undergraduate college students and would protect cuts from the programs until 2013. Approximately 19 million students are eligible for the funds.

However, it would eliminate federally subsidized student loans for graduate and professional students (doctors, lawyers, dentists, etc.) which would affect approximately 6 million students seeking advanced degrees. It also eliminates usage of Pell grants for summer undergraduate programs.

The maximum amount of money a graduate student can borrow from the federal government is $20,500 a year, including $8,500 from subsidized loans. Currently students don't have to start paying interest on subsidized student loan loans until six months after graduation. During that time the government pays the interest.

The debt ceiling eliminates this and eliminates a credit on the origination loan fee provided to students who make 12 months of on-time payment. Students currently get half of the money paid for the origination loan fee which is 1% of the loan back. These changes go into effect beginning July 1, 2012. At that time graduate students would begin accruing interest on student loans while in school. Students have the option to pay on the interest while in school but don’t have to make payments until after graduation.

Student can use the Income Based Repayment (IBR) plan which does not require students to make payments on the federal loans until their incomes exceed 150% of the poverty line and payments are a percentage of the amount their incomes exceed this level. This protects students if their incomes are not enough to make the loan payments. The 2011 poverty line for one person is $10,830 except for Alaska and Hawaii where the poverty lines are slightly higher.

Under the new laws starting July 1, 2012, if a student with no children has an income of $30,000 per year and has monthly loan payments of $350, their $30,000 income exceeds 150% of the poverty line (($10,830 x 150% )+ $10, 830) = $27,075. The student would be required to pay no more than 10% of the amount their income exceeds the poverty line $2,925 ($30,000 - $27,075 x 10%) or $292.50. Currently the student has to pay no more than 15%.

Students who are voter age must voice their concerns with their congressman and during elections to preserve funding for undergraduate and graduate grant and scholarship programs.

9 Ways to Save on Back to School Supplies

2011-09-03T10:00:00.003-04:00

This is the time of year that children become sad because summer is coming to an end. Children can no longer stay up late at night watching television or playing games. Parents have to plan their weeks sometimes having to be in two places at once. Parents have to buy school supplies and clothes.

Buying clothes and school supplies for your children can be a stressful and pricey task. Children want the latest electronics, gadgets and fads their friends have so they don't feel left out. Don't let your children pressure you into buying the latest fads or things they don't really need. Stick to your guns and only buy things that they absolutely need for school. This will save you money which we all need these days because the future in unknown.

Talk with your children before going clothes and school shopping and set expectations. Let them know about your finances and what you are going to buy and what you are not going to buy. Explain to them about needs and wants, designer clothes are not needs.

Ask your children to create a list of mandatory supplies they need for school. Determine what clothes your children can still fit comfortably and make a list of things they need. Prioritize the list in four categories: Need Now, Need in 2-4 months, Need in 5-7 months, Need When School Ends. This will also help budget and stretch your money if you don't have the cash to get everything you need. Here are 9 tips to save money when shopping for back to school supplies and clothing.

1. Plan Ahead. Don’t wait until the last minute to buy school supplies. The best store sales start early so plan ahead to take advantage of them and get the best choices.
2. Barter. If you know a parent who provides services that you need and you have clothes or toys your kids are not using consider bartering.
3. Sales. Go to yard sales and dollar stores to find great bargains on school supplies.
4. Clothes. You can buy clothes from a thrift store, consignment shop or discount store such as Old Navy, Kmart, Wal-Mart or Target. Kids grow quickly and their clothes generally don't last or fit them throughout the entire school year. This will save you money and you kids will still remain fashionable. Buy clothes and shoes if possible at least one size too big so your kids can get more wear out of them.
5. Network. Mention to family, friends, co-workers and neighbors that you are going school shopping. They may be able to provide money savings tips for buying school supplies or may have extra supplies they can give to you for free.
6. Comparison Shop. Search the internet for reputable website that sells school supplies at a discount price and purchase items before school starts to get the best deals. Every few minutes of comparison shopping can save you $1-$9. Also shop at stores that honor competitor prices and coupons.
7. Budget. Create a budget for necessary school supplies (pens, paper, pencils, erasers, notebooks, composition notebooks, rulers, compass, etc.) and save some additional money for unexpected school expenses that may pop-up after school starts such as additional supplies need for classes, school trips, additional school supplies, etc. Buy only what you need if you don’t have enough money to buy extra supplies. Look around the house to see if you have any leftover supplies from the previous school year.
8. Internet. Search the internet for reputable websites that sell school supplies at a discount price.
9. Gather Information. Towards the end of the school year ask the teacher for a list of required school supplies that will be needed and buy supplies throughout the summer. This will spread the costs out over a period of time and ensure that you budget will not be greatly affected by waiting until the last minute to go back to school shopping. This will prevent rushing to buy unnecessary items because you didn't create a list to buy only the things needed.

Emergency Preparedness Must Have Items

2011-08-30T09:09:00.000-04:00

Natural disasters such as hurricanes, earthquakes, tornadoes, tsunamis etc. can occur at any time but are less likely to occur on the east coast. Hurricanes are one of the most destructive natural disasters that can occur. Hurricane season runs from June 1 to November 30 and usually occurs in warm weather areas. On average 5-6 hurricanes occur during the hurricane season. Hurricanes are classified into 5 different categories:

Category 1 - winds 74-95 miles per hour
Category 2 - winds 96-110 miles per hour
Category 3 - winds 111-130 miles per hour
Category 4 - winds 131-155 miles per hour
Category 5 - winds greater than 155 miles per hour

Tropical storms have winds ranging from 39-73 miles per hour. A tropical depression has winds up to 38 miles per hour and look like individual thunderstorms grouped together. When a natural disaster transpires you can never be fully equipped for what materializes but there are some things you can do to help make the experience go smoother. The east coast has recently experienced multiple natural disasters it a short period of time. Here are 22 emergency preparedness tips to help when experiencing a natural disaster:

1. Relax. Don’t let your emotions overwhelm you. Don’t let media coverage, family or friends cause you to overreact.
2. Outside items. Bring in all outside furniture and items that can easily blow away or tie them down tightly.
3. Cover. Keep blinds, shades and curtains drawn. Avoid staring out the window.
4. Lighting. Use kerosene lights or keep candles and flashlights near in case your power goes out. Buy matches or lighters to light candles as needed.
5. Heating. Keep lots of blankets. Wear extra clothes to stay warm. Buy hot water heater insulators to keep the hot water warm even if the power goes out.
6. Cooking. If you don’t want to use your gas stove or have an electric stove, cook food outside on a grill and store leftovers on ice. If you have a gas stove, you can still cook by lighting the pilot manually.
7. Ice. Buy 1 - 5lb bag of ice per every 3 days to use if you want to drink your beverages cold. If you have an automatic ice maker, make several trays of ice and store in the freezer to use if the power goes out.
8. Drinks. Drink more water to help stay hydrated. Try drinking beverages at room temperature to save ice. Buy bottled water or fill water pitchers with filtered water and store in your refrigerator if you are unable to drink tap water.
9. Snacks. Buy snacks to eat in between meals.
10. Food. Buy canned fruits and vegetables and other non-perishable items such as nuts, powered milk, beef jerky, spam, tuna fish, dried fruit, crackers, peanut butter, granola or protein bars, juice boxes, etc.
11. Water. Fill your bath tub and use the water to flush your toilet or use to wash up if the power goes out.
12. Cleaning. Fill a large trash can full of water to use if you are unable to take a shower. Keep moist towelettes, alcohol pads and disposable bathing clothes or wash clothes on hand. Use bleach as a disinfectant.
13. Health. Make sure you have enough prescriptions, aspirin or pain reliever, anti-diarrheal medicine, and multiple first aid kits.
14. Power. Buy a generator or get batteries to use for portable tv’s, radios or dvd players. You can also charge cell phones or other electronic devices in your car. Make sure you have lots of batteries.
15. Fun. Pull out the board games to play with your family. Do fun activities such as tell stories, crossword puzzles, etc.
16. Leisure. Read books or play battery powered games. Catch up on activities and reconnect with family.
17. Breathing. When the disaster has ended, use dust masks if needed to filter contaminated air. If the air is not contaminated open windows to get fresh air.
18. Cell phones. Make sure cell phones are fully charged and minimize use prior to the natural disaster.
19. Babies. Keep plenty of baby formula, food and diapers on hand as well as medicine, and other supplies.
20. Money. Keep extra cash or travelers’ check on hand in case you need to make unexpected purchases.
21. Smoke detectors. Check to make sure smoke and carbon monoxide detectors are working properly.
22. Disposable. Keep disposable items on hand such as paper plates, cups, utensils, paper towels, toilet paper and other toiletries or recycled paper products.

What's Your Cell Phone Backup Plan

2011-08-27T09:00:00.000-04:00

In 2006 Congress passed legislation under the Warning Alert and Response Network Act (WARN) allowing the Federal government access to private cell phones to issue emergency warnings and alerts which resulted in the Personal Localized Alerting Network (PLAN). WARN requires cell phone provides to activate PLAN technology by April 2012. Participants that will offer PLAN prior to the deadline include Sprint, AT&T, Verizon, and T-Mobile.

PLAN allows authorized national, state or local government officials to send alerts via cell phone providers regarding public safety emergencies, such as a tornado or a terrorist threat. Cell phone providers push the alerts from cell towers to cell phones in the affected area. This technology ensures that emergency alerts do not get stuck in highly congested user areas.

PLAN enables government officials to target emergency alerts to specific geographic areas through cell towers which pushes the information to dedicated receivers in PLAN enabled cell phones. PLAN complements the existing Emergency Alert System implemented by the FCC and FEMA via media service providers.

Customers can opt out of the service but will still receive Presidential alerts even if their GPS locator is turned off. The PLAN technology will allow the messages to take precedence over regular phone calls or text messages so the alerts can get through. Messages will show up on the phone’s front screen, and arrive with a distinct ringtone or vibration. Three types of messages are included in PLAN: level 1 - messages from the President, level 2 - looming threats to safety, and level 3 - amber alerts about missing or abducted children. As of October 2010 the following cell phone providers participate in PLAN www.fcc.gov/pshs/docs/servcies/cmas/MasterCMASRegistry.xls

During a natural disaster cell phone networks quickly get jammed and subscribers are unable to make phone calls. This happened recently with the earthquake that struck the east coast. During a disaster many people rely on cell phones or the internet. If your power is out your only other option is your cell phone. Government agencies are urging subscribers to send text messages instead of making phone calls during a natural disaster.

Using social media and text messages cannot replace voice communications and does not address the cell phone network load problems. If everyone is sending text messages that causes another increase in load and can cause delays in sending and receiving text messages. For people who don’t use social media or cell phones or people who live in rural areas where cell phone coverage is not available there is no way other for them to communicate. The U.S. needs to invest more money in technology to compete with other countries. Japan is working to use renewable energy for its cellphone tower network s with solar, wind or biomass which protects against power grid outages. Japan has also created a cooking pot that can cook food over a campfire and charge a cell phone at the same time which costs $300.

If cell phone companies can provide their executives with million dollar salaries, bonus and perks each year, saved money by transferring their customer services departments to India and other countries, decreased their level of customer service, and made some staff reductions, why can’t they spend more money to upgrade their networks to provide better service to subscribers and handle increased loads during a natural disaster.

Here are 6 tips to prepare for phone interruptions during a natural disaster:
1. Disaster Plan. Create a disaster plan and test it periodically.
2. Don’t wait. Don’t wait until the last minute to take action. Prepare in advance and stay calm. Execute your disaster plan to minimize further damages and safety issues.
3. Communication Plan. Develop a communication plan to contact friends and family and test periodically.
4. Satellite phone. If you live areas that experience frequent natural disasters consider purchasing or renting a satellite phone which connects to satellites in space. They provide functionality similar to cell phones such as voice, paging alerts, messaging service and internet access. Coverage can include the world or specific regions. Prices ranges from $200 to $5,000 for the phone plus talk time ranging from $0.15 to $2.00 per minute.
5. Smartphones Apps. Use emergency communication smartphone applications such as Life360, Guardly, Emergency Distresss Beacon and Quake SOS to connect to family and friends or emergency service providers to identify your location and confirm your safety.
6. Emergency Alerts. Sign up to receive emergency alerts with your city or state government, local school or university, utility company or weather service. You can also sign up for the Emergency Email and Wireless Network to receive alerts from local, state and federal government agencies.

Earthquakes and Your Finances

2011-08-24T09:25:00.001-04:00

Recently many states on the east coast experienced an earthquake ranging from 5.7 to 6.0. Aftershocks were felt in the Washington DC area of 4.6. Only minor injuries were reported, however many homes have cracks and other structural damages. When I arrived home from work small pieces of plaster were on my floors, cracks in various places in my home, my business phone fell on the floor and was off the hook, my office was a disaster, books and pieces of paper strewn all over the floor, and contents of my medicine cabinets and closets were on the floor.

Many people tried to use their cell phones but the networks were jammed. Many others just sat in disbelief. A friend from LA told me she didn’t know the east coast had earthquakes. Washington DC had one last year which was approximately 3.6 but it is rare to have them on the east coast. After the initial shock and fear has worn off people want to know what do I do now? Some questions must be considered when experiencing a natural disaster. Here are 10 financial tips to help survive a natural disaster.

1. Insurance. If you are a homeowner review your homeowner’s insurance policy to see if you are covered for natural disasters such as an earthquake. Contact your insurance company and report any damage. Contact a lawyer to get legal advice and protection in the event your insurance company becomes difficult with reimbursing you for your loss.

2. Notify. Contact all of your family and friends and employer and let them know what happened and if you need any assistance.

3. Inventory. Make a list of all the companies you do business with. Include the name of the company, mailing address, payment address, phone number, type of account and website and keep in a dry water proof location such as a waterproof and fireproof safe.

4. Identification. Make duplicate copies of your driver’s license, SSN and passport and birth certificate and store in waterproof and fireproof safe.

5. Disaster Kit. Make sure you have enough dry and canned food for a week including bottled water. Have enough clean clothes for at least 2-3 days. Keep an emergency kit in your car to include bottled water, canned food, blankets, a radio, batteries, 2 flashlights and a first aid kit.

6. Supplies. Purchase batteries, a portable radio/tv radio, extra blankets if needed, pillows, candles, matches, fire extinguisher, smoke detectors, paper towels, paper plates and napkins, plastic utensils, disposable cups, toiletries, etc., and store in dry cool location.

7. Service Providers. Make a list of any other service providers that you do business with: mechanic, plumber, electrician, handyman, painter, roofing company, HVAC, drywall expert, home structural repair company, lawyer, psychologist, marriage counselor, plumber, lawn care professional, etc. Include the name of the company, mailing address, payment address, phone number, and website which you may need to use after the disaster.

8. Budget. Create a budget to determine how much money you earn after taxes, monthly bills and expenses and how much you will need to replace basic necessities and contents in your home if lost or damaged.

9. Spend Wisely. Replace damaged or missing items by shopping at discount or outlet stores, buying in bulk and buying items on sale.

10. Live for Tomorrow. Document what you learned from this experience and steps to take if you ever have this type of experience in the future.

Consumers Can Now Get Free Credit Score

2011-08-22T09:02:00.006-04:00

Effective July 21, 2011, the Federal Trade Commission consumers can now receive free credit scores if they apply for a loan or credit and are denied as part of the Dodd-Frank Wall Street Reform and Consumer Protection Act. Previously consumers could receive a free copy of their credit report but in some cases it is hard for consumers to determine if they had good or bad credit.

Loan providers and companies that offer credit must provide details of the credit score and why the consumer was denied. Bad credit and low credit scores mean consumers will get higher interest rates, possibly pay upfront fees and have less than favorable credit or loan terms. The credit score will include the factors that impacted the consumers’ credit score such as late payments or maxed out credit cards.

Under this new law, banks can no longer keep their in-house credit scoring models secret and must share these with consumers who are denied credit. The new law does not apply to telecommunication and insurance companies.

Allowing consumers to receive credit score will give them the ability to quickly see if they have good or bad credit and create a plan to increase their credit score.

Not all consumers can receive a free credit score. If you were approved for loan with less than favorable terms or if your loan or credit application is rejected you can get a copy of your credit score. If you have good credit you may not get a copy of your credit score. Here are 7 tips to increase your credit score:

1. Get current. Pay delinquent accounts such as judgments, tax liens, foreclosures, repossessions and collection accounts first. Then pay all other late accounts such as medical bills.
2. Pay down debt. Keep balances at 10-20% or less of the credit limit. Having credit cards with balances of 30% or more of the limit decreases your credit score.
3. Pay on time. Pay bills at least 7-10 days before the due date to avoid late fees and penalties.
4. New accounts. Opening more than one new account per year will lower your credit score.
5. Avoid closing accounts. Closing accounts that have been open for 2 years or more can decrease your credit score.
6. Negotiate. Setup payment plans to pay down debt if you cannot pay the full amount owed. Stick to the agreement until the account is paid in full.
7. Avoid risky solutions. Avoid filing for bankruptcy. Use bankruptcy, debt consolidation, credit repair counseling or debt settlement as a last resort. These are reported on your credit report and lower your credit score.

General Retirement Advice

2011-08-18T09:56:00.004-04:00

It is estimated you will need a minimum of $1,000,000 to cover your monthly expenses during your retirement years. The average Americans live 10-20 years after retirement. You will need at least 80% of your income during retirement.

If you are stressed and anxious reduce your investments in stocks and bonds, however when the market returns you will lose money when moving your investments back to stocks and bonds because the prices will be higher. Investing in individual stocks on your own is risky. Consult a financial advisor to ensure you minimize losses and maximize gains. Here are some general retirement tips to ensure you enjoy your retirement.

Diversify at a minimum:
Pre-retirement invest 60% stocks, 40% bonds/cash; near retirement (5-10 years) invest 40% stocks, 60% bonds/cash; during retirement invest 20% stocks, 80% bonds/cash.

What to invest in:
1. Invest in emerging market funds (foreign markets)
2. Equities (mutual funds) or other items that return a dividend or capital gains
3. Pharmaceuticals
4. Oil and petroleum
5. Commodities (corn, soy, wheat, coffee beans, petroleum, copper, coal, salt, sugar, soy beans, aluminum, rice, gold, silver, palladium, platinum, electricity, gas, oil, etc.). However some commodities are overpriced right now and should only be invested in when the prices are low.
6. Bonds (corporate or treasury)
7. Real estate, however keep in mind if the price is low it can continue to decrease but over a long period of time you will gain equity and can make a profit
8. Defensive stocks (don’t depend on economic prosperity) - food and beverage industry, manufacturing companies such as Philip Morris, Proctor & Gamble, alcohol and tobacco
9. Under-priced stocks (offer price is lower than price of the first trade, however they carry a higher risk factor because they may not rise in the future) – IPO’s, airline stocks, small cap stocks, etc.
10. Money Market Accounts/CDs – use these for an emergency fund savings account for unexpected expenses
11. Utility stocks – water, gas, electric, telephone companies
12. Green technology and green energy stocks for long-term gains such as Canon, Green Mountain Coffee Roasters, Nike, Whole Foods, Google, etc.

How to Save:
1. CDs
2. Money Market Accounts (MMAs)
3. Bonds
4. Online Savings Accounts
a. CD current interest rates nationwide go up to 1.27% (AloStar Bank of Commerce NR for $1,000 minimum balance) and Money Market Accounts rates nationwide go up to 1.05% (First Trade Union Bank for $1,000 minimum balance). Online Savings account interest rates go up to 1.15% (Discover Bank High Yield Savings Account for $500 minimum balance).
5. Create an emergency fund to cover monthly bills and expenses for nine to twelve months.
6. Pay down debt
7. If you receive government benefits/checks think of at least 1 additional way to generate additional income if your check is last or does not arrive at all due to the debt ceiling
8. Contribute extra to your 401(k) or other retirement type account now. Money you invest now can buy more fund shares which will provide you with additional gains when the market goes back up

How the Verizon Strike Will Affect You

2011-08-15T09:21:00.012-04:00

I found out about the Verizon strike when I called last week to ask a question about my landline bill. A message stated that the wait time could take up to 15 minutes due to the strike. I got tired of waiting and decided to call back later. I asked a few friends if they heard about the strike and they had not.

This is Verizon’s’ first strike in 11 years. The Verizon strike begun due to talks with union workers that failed on August 6, 2011. Verizon has 195,500 employees and approximately 135,000 are non-union employees.

Union employees do not pay for health insurance premiums. Verizon is proposing: union employees pay a portion of their health insurance premiums similar to the plan for non-union employees, tie pay increases to performance reviews, eliminate the sickness and death benefit program, cut in half the sickness disability benefits from 52 weeks to 26 weeks and reduce sick time.

Verizon is proposing the new terms for employees due to the continued decline in revenue in landline services and increased use of cell phones. Union employees state that Verizon wants to eliminate their pension plans, health insurance and reduce their pay.

The strike affects all landline customers, FIOS and internet customers but does not affect its wireless customers. Verizon makes some of its revenue from its non-wireless customers since landlines are still largely used throughout the country. To compensate for the strike, Verizon may raise rates for existing customers to offset any losses. Local phone service is still one of the most profitable services in America. Verizon overall is performing well and earns a profit every year.

Verizon has not addressed the continued decline in customer service over the past few years. Verizon has reduced spending in construction, networks and staff but has not increased funding in customer service. However, Verizon has continued to pay high compensation to executive staff who are paid hundreds of millions of dollars each year plus perks.

In some states Verizon offices are closed on Sundays. Verizon uses a third party company to accept customer credit card payments. FIOS and DSL are not available to every customer that requests it, although Verizon promised the government that it would upgrade all of its customers to fiber optic service.

The reduced spending affects Verizon’s network, maintenance needs, work orders and monitoring of existing customer services and infrastructure. The reduced spending affects customers by:

1. Possible network outages to public safety services such as 911 and local non-emergency services such as 311, 511 or 611. This would result in delays for public health, safety and security requests and customer services.

2. Decline in the quality of phone and internet services provided to customers.

3. Decrease in competition and revenue for Verizon competitors and resellers.

4. Possible reduction in community outreach efforts and initiatives to help low-income customers and small businesses.

5. Delays in fulfilling work orders due to reduced staff and aging infrastructure.

Verizon is pitting non-union employees against union employees causing a rift. According to union workers, some non-union employees tried to run their cars over union employees protesting. Some employees picketing stated the strike could last months.

Customers should demand that service for Verizon customers in America should be provided by Americans workers, demand upgrades to Verizon networks, improve customer service, provide cost effective services for individuals and businesses, stop increasing rates, hire additional staff, eliminate deregulation to allow competition with other companies and provide 24 x 7 service.

It appears that Verizon does not have the ability to remain competitive and reinvest itself by revising its company business model like McDonalds, Nike, Apple and other companies who saw the market changing and were able to adjust.

Who Will Cry for the Poor

2011-08-12T21:35:00.002-04:00

Who will cry for the poor?

Lost and all alone.

Who will cry for the poor?

Abandoned and confused.

Who will cry for the poor?

They have no food to eat.

They cried for relief but none came.

Who will cry for the poor?

They are hungry.

They have no clothes.

Who will cry for the poor?

They are cold and abandoned.

They just need a little help.

Who will cry for the poor?

They did the best they could.

They worked hard for a few dollars.

Who will cry for the poor?

They are hurting and afraid.

They don’t know what to do.

Can anybody help them?

Who will cry for the poor in America?

Will you?

10 Financial Tips for Sexy Consumers

2011-08-09T09:11:00.002-04:00

Being sexy can be summarized in 3 main areas: attitude, confidence and image. Attitude relates to your views on life, usually an optimistic person who can take criticism well and always remains positive. Confidence is how you feel about yourself no matter what someone else says about you or does to you. Image is the physical appearance of a person, their smile, their teeth, their hair, their walk, their laugh, their face, their body, how they dress, how they smell.

According to a study by ING 61% of the men that participated in the survey feel that women who are frugal are smart and sexy. Cash is king and having a savings account makes you more attractive and appealing. When you are in debt and have bad credit it is hard to focus on anything else and if you do, you can’t give it your all because of your financial problems especially when it comes to relationships. Saving is smart. Investing is smarter. Good credit is smart and sexy. Saving the environment is sexy. Saving is sexy. Here are 10 financial tips for sexy consumers.

1. Being debt free is fantastic. Save money on interest by paying more than the minimum monthly credit card or loan payment which helps pay your balance down faster so you can get out of debt. Keep debt balances at than 10% of your monthly income.

2. Pay down debt as fast as twista rhymes. Pay ½ the balance with the 1^st paycheck then pay the remaining balance with the 2^nd paycheck or pay the minimum monthly payment when you get the bill, then each week pay as much as you can toward the balance.

3. Act like a celebrity and go green. Help save the environment by filing your taxes electronically and get your refund in 2 weeks from the date of filing. Use tax preparation software like Turbo Tax or Tax Cut to help with the tax filing process.

4. Stay cozy and keep money in your pocket. Do an annual check on your heating system. Insulate your attic. Automate thermostat settings and use the lowest setting. Seal drafts and cover floors to retain heat. Open blinds during the day to let heat in.

5. Social media can be your enemy. Many debt collectors and some state taxing authorities are searching for consumers on social media networks who owe debt. If you owe debt, hide your profile from public access or just be responsible and pay your debt.

6. Plan for the unexpected. Create an emergency savings fund to cover all of your monthly bills and expenses for 9-12 months. Create a backup plan if some financial crisis occurs and you need extra money. Have a plan A, B, C and D.

7. Shop like the rich. Set a budget and find bargains online, use coupons or shop at holiday sales. Mix and match basic pieces with fashionable accessories such as belts, earrings, bracelets, shoes and purses. Buy knockoff pieces for extra style. Shop at discount stores and outlets for name brand pieces for less.

8. Cut back. See what areas you can reduce spending by creating a balanced budget to stay out of debt. Thirty-five percent should go towards housing, 15% towards debt, 25% towards transportation, 10% towards savings, and 15% towards other expenses.

9. Plan for the future. Open a retirement account and save at least 10% towards your retirement each month. You will need 60-80% of your pre-retirement salary for a minimum of 20 years to have enough money during retirement or at least $1,000,000.

10. Don’t be a question mark. Know your net worth (assets - liabilities). Verify your net worth annually. Know how much you earn, how much you owe and how many assets you have. Use the figure as a baseline to increase your net worth on a yearly basis.

What is Your Debt Ceiling

2011-08-06T09:07:00.000-04:00

The US debt ceiling is a limit that is set by Congress on the amount of debt the federal government can borrow. The debt ceiling cap applies to debt owed. The debt ceiling is similar to the total debt a person owes to their creditors.
Every day the federal government spends more money than it takes in and makes up the difference by borrowing money. As a result, every day, the government’s debt increases. Every day Americans spend more money than they earn and make up the difference by using credit cards, lines of credit, and home equity loans (HELOC) or other loans. As a result, their total debt owed increases. The government needs to balance the budget which will require reductions in spending. Americans need to create their own personal budget or spending plan and make reductions in their daily spending. An individual balanced budget consists of: 35% for housing (rent/mortgage and housing related costs), 15% transportation (car payment, maintenance/repairs, insurance), 15% debt (excluding mortgage), 10% savings, and 25% remaining expenses (entertainment, food, cable tv, internet, etc.)

A budget doesn’t have to be restrictive. Stars and athletes have budgets; they hire accountants to keep track of their money so why shouldn't you keep track of yours? Seventy percent of Americans live paycheck to paycheck and forty percent live above their means. When your budget is out of balance you go into debt which can lead to serious financial problems such as foreclosure, bankruptcy, etc.

Creating a budget shows accountability for your spending and identifies your SEO – what you spend, what you earn, and what you owe and reduces credit card usage. Make your budget flexible so you have additional money to pay for unexpected expenses. You budget should include savings. Here are 7 tips to creating a budget.
1. Subtract monthly expenses from your monthly income after taxes. If the total is negative or less than 5% of your total monthly income this is a red flag that you need to make some major adjustments to your budget.

2. Track daily, weekly or monthly.

3. Keep all your receipts and reconcile your bank accounts.

4. Use automated software tool, pen and paper or the envelope method.

5. Create short and long term financial goals.

6. Use money left over in budget to create a savings account and pay down debt.

7. Use automatic paycheck deduction or online bill payment.

8. Verify your bank statements with your monthly receipts.

Here are 12 tips to get out of debt:

1. Stop using your credit cards. Pay cash for all purchases until you pay off all of your debt.

2. Downgrade or downsize. Move into a smaller and less expensive home or apartment. Trade in your luxury car for a car with no note or a cheaper car payment.

3. Compare. Comparison shop before making a purchase to get the best deal. Use sites like www.bizrate.com, www.pricegrabber.com, craigslist.com to find bargains.

4. Insurance. Buy insurance for health, life, disability insurance. Buy bundled services to save money with the same company and ask about discounts.

5. Setup a debt payment plan with your creditors. Setup a debt payoff plan to prioritize your bills. By using the debt snowball method you will be able to quickly pay off some of your debts. Start by paying off the smallest bills first, then use the money paid towards a previous bill and apply it to the next bill and continue this process until all your debts are paid.

6. Sell Items. Sell items not used within the past 3 months or more on eBay or Craigslist.

7. Get current on late payments. Pay off collection accounts, tax liens and judgments as soon as possible.

8. Pay on time. Pay balance in full each month prior to the due date or as soon as you receive the bill which helps to avoid paying finance charges.

9. Negotiate. Contact the companies to negotiate a lower interest rate, get fees waived or change terms if your account is in good standing.

10. Pay more than minimum. If pay the minimum monthly payment your payment may not cover the cost of interest and finance charges that accrue on the balance. Send more than the minimum monthly payment each month to help your balance will go down faster.

11. Clothing. Shop at discount stores, buy clothes in off-season, check out discount racks at stores and ask if stores if they honor competitor coupons. Buy a few jackets and mix and match pieces to stretch your wardrobe.

12. Helping Others. Don't open joint accounts or co-sign for loans. If they don’t pay you are responsible for the debt.

How to Save Money on A/C Costs

2011-08-03T09:26:00.000-04:00

This has been a hot summer and many people have become dehydrated and overheated due to lack of air-conditioning in their homes. Many homeowners incur lots of money during the summer to keep their homes cool. Refrigerators and air conditioners are the largest consumers of energy. Air conditioning contributes to approximately 16% of the average household’s annual electricity bill. The amount of air conditioning you use depends on where you live and how many days a year you need to use your air conditioner. The average costs spent on an air conditioning per year is $2,643 and the average home air-conditioning unit costs $280 per year.

There are several alternatives to using air conditioning such as whole-house fans and evaporative coolers; however, they do not perform well in all climates. If you live in a state that has a lot of humidity, evaporative coolers are not a good option. If you don't have an attic a whole-house fan is a good option. If you have a hot attic an evaporative coolers is a good option.
Saving on air conditioning costs can also help the environment. Cutting back on your air conditioning reduces your CO2 (carbon dioxide) emissions by 5.4 lbs a week. The more electricity you use, the more carbon dioxide gets released into Earth’s atmosphere. An average household central air conditioner uses enough electricity each year to release of over 2 tons of CO2 into the air. Here are 9 tips to reduce air conditioning costs and CO2 emissions.
1. Turn up the thermostat. Each degree higher you turn up your thermostat allows it to use 1-3% less electricity. Set your thermostat at 76 or 78 degrees F during the day.

2. Turn it off. If you aren’t home during the day turn the air conditioner off. Program the thermostat to turn the air conditioner on an hour before you get home.

3. Room a/c. Turn the room air conditioner to a warmer/cooler setting during the day when you are not at home. Put room air conditioners in windows that are facing north or that are in the shade. A room air conditioner that sits in direct sunlight uses 5% more electricity.

4. Clean. Clean or replace your air conditioner’s air filter every month when it’s in use. The harder the air conditioner has to work pulling air through the filter, the longer it runs and the more electricity it uses.

5. Usage. If the temperatures outside is cool at night turn your air conditioner off and open the windows or turn it down to a lower setting.

6. Fans. A ceiling fan provides added air circulation and can help keep your air conditioner set at higher temperatures. Make sure the ceiling fan is reversible and that it blows air down in the summer. Window fans and floor fans can provide cooling by getting the air moving or by helping move cooler outside air into the house at night.

7. Tax Credit. The Residential Energy Property tax credit is eligible to homeowners who make energy efficient improvements to their existing homes. The credit is 30% of the cost of all improvements. The credit applies to improvements such as energy efficient windows, insulation, and energy-efficient air conditioning.

8. Solar window film. Replace plastic window film with solar window film to help keep your home cooler by reducing utility costs. The film prevents the sun’s rays from entering your home and reduces the need for air conditioning.

9. Electrical Devices. Don't place lamps, televisions or computers near your thermostat. The thermostat can sense the heating coming from the appliances and will run longer than necessary.

Bankruptcy May Not Help Homeowners

2011-07-31T09:44:00.001-04:00

Many homeowners believe that filing bankruptcy will help save their home and prevent them from going further into debt. Unfortunately, filing for bankruptcy if you are a homeowner is not as easy as you think. Approval for bankruptcy depends on your salary and the family size. Income limits are based on the state you live in www.justice.gov/ust/eo/bapcpa/20101101/bci_data/median_income_table.htm.

However, if have a higher income you can still file. You must provide proof that you are unable to pay your bills and have sought additional help in the past. You must provide documentation such as: tax returns, paystubs, bank statements, mortgage statement or rental lease agreements, detailed list of monthly expenses including, a list of all debt, amount owed, interest rates, canceled checks and credit card statements, retirement accounts, business income and debt, and child support. Be honest when providing documentation. If you decline to provide all the requested documentation required by the Trustee your bankruptcy filing may be dismissed. Do not include you SSN on any documentation provided. Mistakes in your documentation can cause delay or a dismissal. If you do meet the income requirements there are additional criteria you have to meet such as:

• You must take a credit counseling class prior to filing for bankruptcy.
• If you have enough income to pay some of the debt you may be considered for a Chapter 13 bankruptcy.

Here are 11 tips to consider before filing for bankruptcy:

• Bankruptcy fees when filing on your own cost approximately $300 when filing for chapter 7 (most debt cleared) or chapter 13 (repayment plan for 3-5 years). Bankruptcy filing fees when using a bankruptcy attorney can range from $1,000 - $4,000.

• Look for real estate investors in your city by doing a search on google “name of your city or state real estate investors”, i.e. “maryland real estate investors”, etc.

• Do not make any large purchases before filing for bankruptcy because this will decrease your chances of being approved.

• Don’t file Chapter 7 bankruptcy if your income exceeds your expenses.

• Don’t transfer credit card balances.

• Don’t make payments on any debt.

• Don’t file your tax return if you expect to get a large refund.

• Don’t cash out any retirement plans or 401k’s because this money is exempt from bankruptcy.

• Don’t take out any loans or open any new credit accounts.

• Disclose any judgments, collection accounts, and tax liens.

• Don’t bank where you owe money. Close the account and open a new at another bank. If you wish to continue doing business with the bank take all the money out of your account as soon as your direct deposit is posted to your account. If not, this will increase your chances of having your bank account garnished.

The following debt is not included in Chapter 7 bankruptcy: taxes and tax liens, student loans, child support and alimony, debts for fines or penalties to governmental agencies, debts for judgments in wrongful death or personal injury lawsuits, and condominium or townhome association fees. The following debt not included in Chapter 13 bankruptcy: some taxes, student loans, child support and alimony, debts for fines or penalties to governmental agencies, debts for judgments in wrongful death or personal injury lawsuits, debts incurred after filing your case.

Items that are exempt from bankruptcy:

• $16,500 in equity in your home

• $2,575 in equity in your car

• $425 per item in any household items up to a total of $8,625

• $1,625 in job-related expenses, books, etc.

• $850 in any property, plus part of the unused exemption in your home, up to $8,075

• Social security, unemployment, VA benefits, welfare, and pensions

The Government's Budget: The Debt Ceiling

2011-07-28T09:26:00.004-04:00

What is a debt ceiling? The US debt ceiling is a cap that is set by Congress on the amount of debt the federal government can legally borrow. The cap applies to debt owed to the public or anyone who buys U.S. bonds in addition to debt owed to federal government trust funds such as those used for Social Security and Medicare.
Every day the federal government spends more money than it takes in and makes up the difference by borrowing money. As a result, every day, the government’s debt increases. This is why the government is considering raising the debt ceiling or the government will have to stop spending more than it takes in which requires balancing the budget. Balancing the budget will require reducing spending by approximately 40 – 44%, raising taxes or a combination of reducing spending and raising taxes.
If the debt ceiling is not increased the government has to pay more money to borrow money which adds up very quickly and could cost taxpayers hundreds of millions of dollars. This can cause taxpayers to lose confidence in the government. If lenders lose confidence in the government that it can’t repay its debts, interest rates will start to increase.

The government generates money by selling debt through Treasury bonds which is the government's IOU. A taxpayer, a foreigner or a hedge fund manager purchases a Treasury bond (bill) and the government promises to pay the bond at a later date, paying the buyer back with a small amount of interest. As of January 2011, foreigners owned $4.45 trillion of the U.S. debt.

As long as Treasury bond buyers are confident that the government will repay them, they accept the lower interest rate of return. However, if bond buyers feel that the government will not be able to repay them, the market will demand a higher interest rate on the bonds which decreases the number of buyers who want to buy them. Taxpayer money is used to pay the bond interest rate so higher interest rates will result in higher taxes. A lack of confidence has already been seen in the stock market decreases over the past week as we approach the current debt ceiling.

If the interest rates on Treasury bonds increases this will have a domino effect and cause the interest rates of other products such as cars, student and mortgage loans and credit cards, business loans or lines of credit to increase. There could also be an increase in personal products such as electronics, clothes, food, household goods and company products and services. This will cause the value of the dollar to decrease causing an increase in costs to purchase foreign imports as well as gasoline for cars.

The less money that is approved for loans or credit will cause taxpayers and business owners to spend less and save more which will hurt the economy.

If Congress doesn't raise the debt ceiling, the government will reach the debt ceiling and max out its borrowing power which will prevent the government from paying its debt. This would affect Social Security, Medicare, military salaries, tax refunds, and unemployment insurance, government grants, and other funding.

Money Saving Tips for Journalists

2011-07-25T09:26:00.006-04:00

Working as a journalist can involve a lot of travel to do interviews for newspapers, television or radio and can rack up many expenses that can occur at the last minute that may not be covered by your job. These expenses can make it difficult to make ends meet and live day-to-day.

Due to the economy and company cutbacks, many journalists have to cover expenses that were previously covered by their employer. In other instances, journalists have to pay for travel or work related expenses upfront and then get reimbursed later. To save money create a budget and look for ways to reduce expenses. Here are 8 ways for journalists to save money:

1. Travel Discounts. Comparison shop for discounts on parking or air, hotel and rental cars or buy as a package. Some companies that provide discount fares LongTermParking, HotDeals or Kayak. Sign up for online alerts with airlines to learn about their weekly specials. Search for fares early in the morning or on weekends. Check to see if they accept discounts for membership to Diner's Clubs, AAA, AARP, etc. This can save you $30 to $175 per transaction. Check social media sites for discounts.

2. Supplies and Expenses. Shop for office supplies at Costco or online sites such as Amazon, eBay or Craigslist. Consider setting up a home office. You can write off a portion of your mortgage and utility bills. If you do not have space for a home office consider using a telecommuting or telework center at companies such as Regus or the World Environmental Organization or search online for additional telecommuting sites. This can save you $50 to $100 per week in supplies, wear and tear on your car and gas. Check social media sites for discounts.

3. Food. Pack you own drinks such as water and juice along with your favorite snacks. Search online for coupons to your favorite restaurants at site such as Groupon, Living Social or Bloomspot. Sign up for free restaurant newsletters to receive coupons or to find out about specials. This can save you $30 to $200 per month.

4. Car Maintenance. Perform regular maintenance on your car by keeping your tires properly inflated and balanced which improves mileage. Save money on gas by using the lowest octane which is usually 87. Fill up your gas tank before going to work or in the evening when it is cool. Drive the speed limit and keep the trunk weight light. Pay for gas with cash. This can save you $.05 to $.30 per gallon.

5. Insurance. Make sure you have health, life and disability insurance. If you need to see a doctor you won't have to worry about paying medical bills. If you become sick for an extended period of time you won't have to worry about paying medical costs. Contact eHealthInsurance.com or Aflac for health insurance quotes. Also consider opening a Health Savings Account. If you need disability insurance contact the Assurity company. This can save you $20 to $200 per month.

6. Use coupons. Use coupons to save money when shopping. Search for online coupons at sites such as Coupons.com, CoolSavings.com, and Couponmom.com. This can save you $20 to $250 per month on your grocery bills and other household costs. Check social media sites for coupons.

7. Go green. Try eco-friendly ways to save money. Visit sites such as Bankrate.com and MSN.com and search for ways to save money going green. This can save you $20 to $500 a month.

8. Phone calls. Use your cell phone to make free long distance calls. Contact your cell phone provider to determine the code to interrupt a voicemail greeting. When leaving a message skip the voicemail greeting and go right to the beep to leave a message. Also, if you make a call during peak hours ask the person to call you right back so they pay for the call. This will save minutes and save money on your cell phone bill. Send text messages for short conversations instead of making a phone call to save minutes. You can also use Google talk or Skype to make free phone calls.

These tips will reduce many of your work related expenses and your financial stress, allowing you to focus more on your work assignments and become more productive.

Is Barnes & Noble Next?

2011-07-22T09:05:00.000-04:00

On July 21, 2011, at a scheduled hearing Borders is expected to ask the U.S. Bankruptcy Court of the Southern District of New York to allow it to sell off all of its assets. If the judge approves the move, liquidation sales could start as soon as Friday; the company could go out of business by the end of September. Due to Borders closing all of its stores, 11,000 employees will be losing their jobs. This will have an impact on the economy as well of those families of those employees, more foreclosures, more bankruptcy filings, and more bad credit.

What does this mean for the book industry? The only two major bookstore chains left were Barnes and Noble and Borders. This is good news for Barnes and Noble but what about Borders customers. Will they honor the Borders coupons, Borders gift cards, Borders Bucks, Borders Rewards program, Borders Reward Plus? Will Borders Kobo e-reader owners be allowed to use the Barnes and Noble Nook to read their Kobo books? What happens to vendors who are owed money from Borders? These are some of the many questions that need to be answered.

Barnes and Noble has 717 stores in the United States and has 637 college bookstores. There are approximately 1300 independent bookstores in the United States. In some states there will be miles of neighborhoods without a bookstore. For those who do not have a computer or e-reader, buying books will be difficult. For those who enjoy going to a bookstore to view books before purchasing them, the buying experience will now be different.

For authors, especially self-published authors getting a booksigning will become more difficult since Barnes and Noble does not usually work with self-published authors. I was a fan of the Borders bookstore chain. Borders has more of a friendly family oriented feel. I loved the Borders policy where customers did not have to wait in line more than 20 minutes to make a purchase.

Hopefully Barnes and Noble is reviewing and analyzing Borders customers and using that to ensure former Borders customers enjoy their experience each time they visit at any Barnes and Noble store.
If you are a book lover and enjoy going to a bookstore to purchase books, browse books or attend booksignings or seminars, voice your concerns to Barnes and Noble about the type of customer experience you would like to see at Barnes and Noble. This is a critical time for Barnes and Noble and will determine if they continue to stay in business or go out of business but they need your help.

Warren Buffet's Investing Style

2011-07-19T09:00:00.002-04:00

I am a big fan of Warren Buffet. However, being a fan doesn’t mean I agree with everything he does or with all of his beliefs. I do admit that he is knowledgeable about investing. It has been stated that “he invests long-term and understands what he invests in”. It is essential that with anything you do or anything you put your money towards you understand. Many homeowner signed mortgage loans and didn’t understand what they were getting in to. As a result they foreclosed on their homes.

LouAnn Lofton wrote a book entitled, “Warren Buffet Invests Like a Girl”. Well, if he does, then all men need to follow his advice too. I think Warren Buffet is a great investor who doesn’t get emotional about investing. His investing is very strategic which was displayed when he bought shares of Goldman Sachs in 2008 for $5 million which made his company Berkshire Hathaway millions. Here is some background information on Buffet:

1. Carried golf clubs at age 9 for $3 a day

2. Bought his first share at age 11

3. Sold used golf balls from age 11-13 and sold newspapers at age 13

4. Bought a small farm which was 40 acres at age 14 with savings from delivering newspapers

5. Rented out used pinballs machines at age 16 making $50 a week

6. Bought Berkshire Hathaway in 1962

7. Bought stock in Coca-Cola, Disney, McDonalds, Gillette, American Express and Dairy Queen

8. Follows 6 Principles: 1) keep it simple, 2) be an investor not a trader, 3) find outstanding business, 4) make your own decisions, 5) leave a margin of safety, 6) Rule 1: never lose money, Rule 2: never forget rule #1, focus on strengths.

9. Still lives in the same small 3-bedroom house in Omaha that he bought after he got married 50 years ago. He says that he has everything he needs in that house. His house does not have a wall or a fence.

10. Don't buy more than what you "really need" and encourage your children to do and think the same

11. Drives his own car everywhere and does not have a driver or security

12. You are what you are

13. Never travels by private jet, although he owns the world's largest private jet company

14. Always think how you can accomplish things economically

15. His company, Berkshire Hathaway, owns 63 companies.

16. Does not socialize with the high society crowd. After he gets home is to make himself some popcorn and watch television.

17. Don't try to show off, just be yourself and do what you enjoy doing

18. Does not carry a cell phone and does not have a computer on his desk

19. Stay away from credit cards (bank loans) and invest in yourself

20. Money doesn't create man but it is the man who created money

21. Live your life as simple as you are

22. Don't do what others say, just listen them, but do what you feel good

23. Don't go on brand name; just wear those things in which you feel comfortable

24. Don't waste your money on unnecessary things; just spend money on those who are really in need

Do you still think Buffet invests like a girl? Let me know your feedback.

Forbearance Help for the Unemployed

2011-07-16T10:00:00.002-04:00

This week President Obama announced adjustments to the Federal Housing Administration’s (FHA) requirements that will require mortgage loan servicers to extend the forbearance period for unemployed homeowners to 12 months. The previous period was 4 months. The President also has plans for loan servicers who participate in the Making Home Affordable Program (MHA) to extend the minimum forbearance period to 12 months wherever possible.

This is a huge victory for homeowners who wish to remain in their homes during unemployment. This will make it easier for unemployed borrowers to qualify for forbearance. This prevents unemployed homeowners from filing foreclosure or bankruptcy. A bankruptcy or foreclosure greatly lowers your credit score. However, forbearance does not impact your credit score as much as a bankruptcy or foreclosure.

A forbearance is when your mortgage company reduces or suspends your mortgage payments for a specific period of time. When that time period expires, you resume making your regular payments. You will either have to pay a lump sum for the payments missed or additional partial payments for a specific amount of time to bring your loan current. Here are 4 ways to apply for mortgage forbearance:

1. Examine your current situation. Determine which option is right for you. You should not apply for forbearance if you previously were not able to pay your mortgage when you were employed. Contact your loan provider to get more information on how to apply for forbearance and terms. Another option may be better for your situation such as loan modification, short-sale, etc.

2. Contact your lender. Write your lender a hardship letter asking for a forbearance stating the reasons why you need forbearance versus other mortgage assistance options. The letter should include: time period of the forbearance request, whether payments will be made, monthly amount paid, proof of your financial hardship, a plan to overcome your financial hardship before the forbearance period expires, a listing of your current income and monthly expenses, and steps taken to assist with the financial hardship prior to requesting a forbearance. If you cannot come to an agreement on the terms then forbearance might not be the right option for you.

3. Negotiate. Work with your lender to negotiate the best terms you can afford for the forbearance agreement. Filing forbearance prevents your mortgage company from filing foreclosure and helps maintain your relationship with your mortgage company by showing that you are willing to work with them to pay back the money owed. Ensure all of your questions are answered before signing any paperwork.

4. Advice. Consult a lawyer to get legal advice and tax implications regarding filing forbearance. A lawyer can assist with writing the hardship letter and negotiating with the mortgage company on your behalf.

Have You Discussed Your Finances as a Family

2011-07-13T10:00:00.000-04:00

Finances and family are important because finances is one of the biggest contributors to couples getting a divorce and is one the main reasons couples and families fight. Good money management habits help you prepare for the future, ends fights, reduces stress, and makes your life more enjoyable. The easiest way is to save money or anything you buy or own, comparison shop to find the best deals. Some ways to have good money management skills are: create a budget, begin saving, reduce debt, and educate yourself.

Every family member has to work together to develop a plan to handle their finances, individually and as a family. Families always think they need more money, but they really only need more discipline. Discipline will help them achieve goals so that when their get more money they manage it well and make it last longer.

Effective money management is solely based on how a family spends their money and lives their lives. Money management should include setting short and long-term financial goals. Families should plan for their future such as retirement, college for the kids, purchasing a home, etc. Many times families are so consumed with living day to day or paycheck to paycheck they can't worry about their future but that is the main reason families stay stuck in the same rut. Here are 5 ways to better manage your family finances.

1. Create a budget - First create a household budget or spending plan that includes involves each family member. A budget will show what you earn, what you spend and what you owe. This will help you see right away what areas you need to reduce expenses and where most of your money is being spent.

Hold family meeting to discuss finances and be honest about your financial situation. Many times parents live above their means just so their children are not aware of their financial situation – this is a "no-no".

If you don't know the exact amount spent on a particular item write down your best estimate. If an item fluctuates and ranges from month to month take the highest amount paid thus far and use that same amount in your budget. Buy items on sale and buy only needs. Buy wants periodically after starting short-term goals.

2. Begin saving - Set financial goals with a specific dollar amount and target date for each goal such as: save $1,000 by December 2012. Take each dollar amount associated with a goal and divide by the number of months to reach the target date. This will show you how much money you need to save each month to reach the goal.

Develop short-term goals that can be achieved in 3 to 12 months. Long-term goals are set and should be achieved over a period of time such as 3 to 5 years. For a family the first goal should be to create an emergency fund.

The emergency fund should be large enough to cover household bills and expenses for 3 to 6 months. This will eliminate fights with your spouse or partner and the children as well as prevent using a credit card for unexpected emergencies. Balance your checkbooks, monthly bank statements and credit card statements with monthly receipts to make sure no errors appear on statements on with your bank accounts.

3. Reduce debt - Create a debt repayment plan to pay off all debts. Set a target date for each debt including interest paid, monthly payment, total amount owed and if any bills are late. Start paying the smallest debt first then work your way up to the largest debt. Use the money paid for one bill and apply towards the second bill and continue this until all debts are paid.

4. Educate yourself - Talk to other families who have been successful in managing their finances or read books on family finances such as Family Finances the Essential Guide for Parents by Ann Douglas, Personal & Family Finance Workbook by Craig Israelsen, America's Cheapest Family Gets You Right on the Money by Steve Economides, Your Military Family Network by Military Family Network.

5. Plan for the future – make sure you have health, life and disability insurance. If your job doesn't offer these develop a plan so you can afford to buy them to protect you and your family if a tragic event occurs that affects your finances.

Budgets should be revised often when a specific event occurs such as: promotion, raise, additional recurring expenses, birth of a child, marriage, divorce, etc. Compare your budget with the financial goals set to ensure everyone is on track to meeting the goals.

Should Christians Be in Debt

2011-07-10T16:15:00.000-04:00

Did you ever wonder why a negative item has to stay on your credit report for 7 years? No one was able to give an answer other than what is stated in the Fair Credit Reporting Act (FCRA). I always wondered what the answer was myself but was never satisfied just knowing that someone decided to use the magic number 7. Upon research I found out why creditors, banks and other companies you do business with keep an item on your credit report for 7 years.

Deuteronomy 15:1

[The Year for Canceling Debts] At the end of every seven years you must cancel debts.

Negative items on your credit report are the result of not paying a debt. The recession had a long-lasting effect on Americans. Many Americans still have not changed their spending habits. Many people are allowing fear to cause them to make hasty decisions. Don’t let fear cause you to make a decision you will regret in the future. If something sounds too good to be true or requires you to pay money to receive a service that usually is free - don’t pay for it. You can’t have faith and be fearful.
Isaiah 41:13

For I am the Lord, your God, who takes hold of your right hand and says to you, Do not fear; I will help you.

If you owe debt you should pay it off. It will maintain your relationship with your creditors, stop harassing creditor calls, increase your credit score and reduce stress. It will also help you to align yourself with God. You can’t focus on the things of God when you are stressed out about your finances and being in debt. To pay back debt and stay out of debt you have to change the way you think about money. Money is a tool that can either be used to generate debt or to generate wealth. Taken from the bible:

Proverbs 13:22

A good man leaveth an inheritance to his children's children, and the wealth of the sinner is paid up for the just.

Think outside the box and think of creative and unique ways for getting out of debt. Thinking out the box will require great commitment, determination and sacrifice. One way to think about the box to get out of debt and stay out of debt is the follow the Voluntary Simplicity movement which states that you don’t buy anything new other than basic necessities such as food and clothing. Shelter is a basic necessity but doesn’t mean you should buy a home you really can’t afford or a home that has more rooms than you will use. It means examining every aspect of your life to determine what is most important and eliminating everything else.

Many entrepreneurs started their businesses by living below their means or spending less than they earned. They understood the importance of sacrifice which allowed them achieve their goals. Here are 8 ways to get out of debt.

1. Tithe. Once you align yourself financially with God by tithing, you will find it easier to get out of debt and plan for retirement as referenced in Malachi 3:8.

2. Pay in full. Pay the balance in full each month prior to the due date or as soon as you receive the bill which helps to avoid paying finance charges.

3. Pay more than once. You can send in payments multiple times a month. You can pay half of the bill balance with 1st paycheck of the month then pay the remaining balance with 2nd paycheck of the month. Pay weekly instead of monthly. Pay the minimum monthly payment the first week after you get the bill, and then each week pay as much as you can toward the monthly balance and repeat every month. You can also pay as much as you can when you get the bill, and then pay more towards the bill when you get extra money.

4. Avoid late fees. Pay your bills on time. If you are unable to make a payment, contact the creditor right away to setup a payment plan or make other arrangements. Contact your local post office to find out how long it takes your payment to arrive by mail.

5. Negotiate. Contact the company to negotiate a lower interest rate, get fees waived or change terms if your account is in good standing.

6. Pay more than minimum. If pay the minimum monthly payment you will end up paying 2 to 3 times the cost of the item you purchased due to finance charges that accrue on the balance. Send more than the minimum monthly payment each month. If your finance charges are less than your minimum monthly payment your balance will go down faster.

7. Spend less than you earn. Buy needs vs. wants, control your spending, don't buy in excess or more than you need, keep debt (excluding mortgage or rent) at 15% or less of your total monthly income (after taxes). Reduce expenses by bringing your lunch to work, taking public transportation, shopping at wholesale stores and downsizing. Delay buying the things you want until you have the money to purchase them.

8. Pay with cash. Use credit cards for emergencies only. Use cash to pay for purchases.

Do You Have Swipe-itis

2011-07-07T10:00:00.007-04:00

Do you use your check card/debit card to make all of your purchases? Have you stopped carrying cash? Do you feel lost without your debit card? You are not alone. There are over 520 million debit cards in use in the United States. Most of them are Visa and MasterCard debit cards.

It can be difficult to resist the temptation of the instant gratification culture of America. Advertisers make it easy for consumers to get everything instantly by creating online shopping, instant cereal, instant coffee, instant meals, instant messaging, and debit card purchases at most stores and businesses. Most Americans who have a debit card buy an item immediately when they see it either in a store or online. This bad habit has caused many Americans to overdraw their account, pay overdraft fees, spend more money than they have, damage their relationship with their bank and may lower their credit score.

No matter what form of payment you use you have to keep track of your spending. You should track your spending weekly if you frequently use a check card. This will help to see where you are spending your money and will help you to recognize errors or identity theft quickly. When you see where you are spending your money it is easier to reduce spending and make better choices when making purchases.

There are advantages and disadvantages to using a check card. Some advantages of using a debit card: it is easier to obtain versus a credit card, can be used in place of checks, accepted everywhere, transactions can be made quicker and can be used to get cash from an ATM or retail store that offers cash-back during a purchase. The disadvantages of using a debit card are: you can spend more than you have in your account; you can incur overdraft fees and can become a victim of identity theft. Here a 9 ways to stop swipeitis:

1. Pay your bills first. Put a portion of any extra money left over in a savings account.
2. Alternate payment. Use other forms of payments such as cash when making a purchase.
3. Get a receipt. Get a receipt each time you make a purchase and keep it.
4. Track spending. Take all of your receipts from your debit card purchases and put them in an envelope. At the end of each week add up the receipts to see how much you spent. Use pen and paper, an Excel spreadsheet or Mint.com to enter the data. You can import bank account transactions to your Mint.com account to simplify the process of tracking your spending.
5. Wait. Wait a few days before making a purchase that is more than $100. Go back to the store to see if you still want the item. If you still want the item, comparison shop to see which store offers the best price.
6. Retail therapy. Avoid shopping when you are emotional. This will prevent you from spending more than you have or buying unnecessary items.
7. Create a budget. Create a budget to track your spending daily or weekly. Set aside a specific amount for extra things you want. One reach that amount don’t spend anymore.
8. Leave at home. Leave your debit card at home unless you know you will make a purchase. This helps to reduce the temptation to make an unnecessary purchase.
9. Get cash. Go to the bank and take out the amount of cash you need for the week. Once you spend that amount don’t get out any more money or use your debit card unless it is an emergency.

How to Protect Yourself From GPS Identity Theft

2011-07-04T19:25:00.003-04:00

According to Proofpoints’ Top 10 Privacy Issues Predictions to 2011 Protection, some of their top 10 privacy issues include mobile GPS location information, social media and breach notification laws. There are currently 46 states that have some sort of breach notification law either passed or before lawmaking bodies.

According to Proofpoint there will be an increase in attacks on social media sites like Facebook and MySpace. Approximately ¼ of all time online is spent on social networks. Social network sites appeal to identity thieves because it takes advantage of our natural disposition to be nice by clicking on link, accepting friend requests from people we don’t know, clicking on advertisements, etc.

Law enforcement officials have warned against leaving valuables in parked cars due to GPS location information breaches. A wallet left in a car glove compartment can lead to identity theft. Thieves break into vehicles to steal a few credit cards but leave the other cards to hide their crime.

A garage-opening remote control can give car thieves easy access to your home. Thieves can get your address from your car registration and/or insurance documents in your glove compartment or from the GPS device itself. Then drive your car to your house and use the remote to open the garage door to enter your house or steal items in your garage. Thieves take your information and buy social security numbers on the internet to open credit card accounts in your name. Several agencies sell personal information to those who do background checks such as private investigators or credit card companies which in some cases gets into the hands of thieves.

Thieves break into cars and use dashboard-mounted GPS devices to learn the owner’s home address to burglarize the home while the owner is inside a restaurant, store or other building. Thieves can also use the GPS to rob your home while you are not there. GPS devices are stolen and sold online or in pawn shops.

GPS devices allow others to track your location without your knowledge including when using GPS on smartphones such as the Blackberry and iPhone. When you take a picture and post it on your social media profile data is linked to it. GPS devices provide location information or data called geotagging which are embedded in file formats such as .jpg, .mov, pictures, videos, etc. The data is not visible to users.

Browser plug-ins or certain software programs such as Twittervision can reveal the location information to anyone who wants to see it. If you load pictures on your computer this information is also stored on your computer. The location information can review your: home address, who created the file, when, where, work address, places you visit often, the time you visited a place, how often you visit, how far away you are from your home, etc. It can also reveal information about appointments with doctors, salons, etc.

Here are 8 ways to protect yourself from GPS identity theft
1. Labels. Users of GPS devices should label their home address as something unfamiliar instead of using “home”.
2. Announcements. Avoid telling everyone on your Facebook status that you are out of town, at a show, at a restaurant, checking in to a place or are not home. Avoid responding to event invites on social media profiles selecting “I’m attending”. Instead select “Maybe”.
3. Detach GPS. Detach your GPS device from the dashboard with the cord and holder when you park your car and carry it with you or hide it in the car but not the glove compartment. It the GPS device leaves a suction mark wipe it before leaving the car.
4. Hide car documentation. A glove compartment is the first place car thieves look for documents with your address. Hide the somewhere else in the car or carry them with you until you get back in the car.
5. Report Thief. If your car is broken into report the theft to your local police station.
6. Assistance. Ask your neighbors to watch your home for any suspicious activity while you’re gone and to contact police immediately if they notice your car or any other car in your driveway when they know you’re not at home.
7. Use Caution when Uploading. Disable geotagging information or applications before uploading pictures. Check your smart phone manual for instructions or do a search on the internet for your type of smart phone.
8. Privacy Settings. Update your privacy settings on your social media profiles by turning off location sharing features. Adjust

Bring In the Financial Reins on Independence Day

2011-07-01T14:16:00.002-04:00

This Independence Day resist the temptation to spend money that you don’t have, buy more than you need, or buy something you probably will not use just because it is on sale. Many times items that are on sale are not really a bargain. Do comparison shopping to see if you can find the item for a cheaper price at another store or online. Here are 5 ways to save money shopping this Independence Day:

1. Plan ahead. Don't wait until the day before the holiday to go shopping. Lines at the register are longer and the selection of items is limited. Try shopping a week in advance or early in the morning.
2. Budget. Create a budget or shopping list and only buy the things you absolutely need.
3. Ask for help. If you are having a picnic or cookout ask friends and family to bring a dish to help cut downs on costs.
4. Local shopping. Visit local vendors to purchase meats, fruits and vegetables which will be much cheaper than the grocery store.
5. Resist temptation. Avoid going to the department stores or malls. I know it will be hard but take time out to enjoy being with family and friends. Try finding some free events to attend instead of going shopping. Your wallet will thank you.

How to Find a Summer Job

2011-06-28T09:30:00.001-04:00

The number of job opportunities for teenagers is hard to find due to a sluggish economy. According to the Census Bureau the unemployment rate among teens is 25% in 25 states and an average of 23.6% across the country. There is also competition from college students and older unemployed or underemployed Americans looking for work.

State, federal and local governments were a stable source of summer jobs for teenagers, but that has changed due to budget cuts throughout all levels of government. Teenagers with computer skills or a trade are able to find a job easier than those without.

If you are currently unemployed develop short and long term goals you want to achieve. Develop an action plan and target date to ensure that you achieve those goals. If you want to get employed you have to make opportunities happen. If lack of finances are a major factor in your life you will have to think outside of the box and think of creative ways to make money. Here are 12 tips to find a job:

1. Use social media and the internet to search for jobs
2. Contact youth organizations
3. Attend youth networking functions
4. Go to youth job training centers to gain skills that are in demand
5. Talk to your school counselor or former counselor to learn about possible job opportunities or job leads
6. Look for college internship opportunities
7. Consider outdoor jobs involving heavy labor or behind-the-scenes jobs
8. Offer to work evening and night shifts and to fill in for vacationing employees. Search for these types of positions during the hours they operate.
9. Sell your skills by starting on one block and going from business to business. Ask for an application and introduce yourself to build a relationship with the hiring manager.
10. Call parents and relatives to get information on job leads. Contact friends and other classmates, especially those who have been able to find jobs.
11. Wear your best outfit to interviews even if you are applying to do construction work. This ensures the focus is on you and your skills and not your hot pink lipstick, jeans, t-shirt and mohawk.
12. A company that did not hire you a couple of months ago might need more workers now due to the high turnover of seasonal employees.

Here are 11 tips to help you earn money.
1. Cleaning. Become a maid or janitor by cleaning houses or office buildings.
2. Dog walker. Walk dogs or offer to bathe dogs or cats.
3. Part-time. Look for part-time opportunities including those not in your field. Some companies hire part-time employees later on as full-time employees or offer benefits.
4. Volunteer. Offer to become a volunteer at a company that is in the same field or a similar field you want to work in. Some companies hire volunteers as permanent employees.
5. Babysitter. Offer to watch children during the week or on weekends when parents need to run errands or go for a night out.
6. Seasonal Work. Get hired during seasonal employment recruiting periods such as Christmas and during the summer.
7. Temp Agency. Sign up with 5-10 temporary or staffing agencies that find part-time or full-time temporary jobs. Some jobs are converted to permanent employment after 90 days.
8. Service Industry. If you have good customer service skills you can work as a customer service representative answering phone calls, serving as a hostess, waitress or receptionist.
9. Secret Shopper. You can become a secret shopper for a company or go shopping for elderly or sick individuals.
10. Sell Items. Sell new or unused items on eBay or Craigslist.
11. Network. Network with neighborhood workers to see if they need assistance with doing odd jobs such as lawn care, snow removal, tree removal, washing cars, etc.