Teaching your children early on how to build credit and how to protect it is essential to the success of their financial future. First, parents should get a credit card for each child (the earlier the better). That does not mean you give the child the credit card, but you should occasionally (once a month) make small purchase on the card, and pay it off in full each month. That is the first secret – pay off the credit card balance in full every month. Never miss a payment, and never be late. The longer the line of credit is open, the better. Never use more than 25% of the credit limit. And, you should proactively seek to increase the credit limit … often. Then, when a parent feels the child is financially responsible enough to have the card, the child then must make occasional purchases, pay it off in full each month, etc.
Remember, building credit is only half the battle. In this day and age, identity theft protection should be regarded just as highly as life or health insurance. Parents and children should always protect their Social Security Number, never lose their credit cards, protect financial information online, and never answer emails or phone calls asking to ‘update information,’ etc. Always regard your credit as an asset. It will insure you receive lower rates, better jobs, larger loans, better pay, etc. Protecting your credit and your children’s can have life long effects. Credit cards are essential in our day and age to build credit; and if used properly, they can become an asset in every regard.
Tags: children, consumer protection, credit cards, financial advice, identity theft
Love what you do. That’s the flip side of “do what you love.” This doesn’t mean that if you hate cleaning out the garage you’ve got to begin loving it. It means that, if you exude a happy and positive energy, you’ll find time flies by and that you are enjoying yourself regardless of what you are doing.
Consider this. If you despise cleaning garage and it’s a chore you must do, chances are you’ll conjure up pictures in your mind of all that you loathe about it, and you will resist with all your strength. Why not listen to comedy or sing at the top of your voice to your favorite artist – do whatever it takes to feel great as you do the task. With today’s hands-free phones, you could even talk to your best mate while you do the task!
Also, stop worrying! Worry is the most useless problem solving concept anyone ever came up with. Most of what we worry about never even comes to fruition. If you have a worrying thought, an uncomfortable prickling in your brain about something, take it as a prompt to make some changes. It’s not a signal that you should dwell on the issue.
If you are facing money problem, remember, you are your biggest resource! Money isn’t your resource – you are! Money comes to you because you do something that other people value. The secret to how to attract money is to remember that other people value you. They value your skills, your reliability, your talent, your personality and your individuality. You.
You can always find a way to render yourself valuable – and the more you love whatever it is, the more valuable you’ll be, because you will make others feel good. Your job has nothing to do with your ability to attract money, it just happens to be the vehicle you’ve been using as your way attracting money.
There are several things practically anybody can do to attract money, food, shelter and friends. None of these need training or qualifications of any sort. Consider shopping for elderly or disabled people, clean windows, look after pets, or bake for parties. If you think about it for a little while you will realize that you have unlimited resources. You can tap into them with just a little bit of effort, and realize not only monetary wealth but spiritual well being as well!
There are several ways that you can save money without turning yourself into a miser. In fact, you won’t have to change your behavior at all. You may be surprised how a few simple changes can really add up.
We used to empty our pockets at the end of the day, toss the change into a bowl or piggy bank. This loose change could quickly add up to a few hundred dollars that could then be used on groceries, entertainment or even placed in a retirement savings account.
The problem is that fewer and fewer of us actually use real money to buy things. Plastic has become the norm, and piggy banks are all but obsolete. Some banks have come up with an easy solution to this problem. It’s a great tool to use called “Keep The Change” accounts.
The first bank to offer this came up with an account that allows customers to create a virtual piggy bank. When a consumer uses their check card to make a purchase, the bank rounds the total purchase price of the item up to the nearest dollar. The difference is then transferred to their savings account. For the first three months, some banks even match your virtual change deposits.
If you have kids, an easy way to add to their education savings is through a “Upromise Account”. Membership is free and it will allow you to effortlessly squirrel away savings just by making regular consumer purchases. Retailers participating in the program agree to match a portion of the purchase price and contribute it to an education savings account. Currently more than 550 companies participate including McDonald’s, eBay, Barnes & Noble, JC Penney and Office Depot. After you buy from a participating merchant, you then receive 1- 25% (depending on the purchase) of the money. The money doesn’t come back to you, but rather into a 529 account reserved for your child’s education.
Merchants like the program because it provides cheap advertising and breeds customer loyalty, but what’s really important to consumers is this is essentially free money if you were going to make the purchase anyway.
Tags: banks, education costs, retirement fund, saving money
If you don’t properly manage your bills it can be very costly. There are a few simple steps you can take to stay organized and avoid being trapped by expensive fees or penalties.
Make a calendar. Add bill due dates to your everyday calendar. That way if a bill doesn’t show up in the mail for some reason, you’ll still know exactly when it needs to be paid.
Change your due dates. Take a good look at your calendar: Do you want payment dates spread out evenly, or would it be better for them to coincide? Once you decide, see if your creditors will change them accordingly—most credit card companies are happy to comply. (Please note, pushing the due date back a few days will result in a onetime adjustment to your next bill, because finance charges will continue to accrue.)
Sign up for auto–bill pay. You cam do this with your insurance premiums, utilities, mortgage, student loans, etc. You simply sign a document agreeing to have the payment deducted from your checking accounts. You still need to manage, check and verify that the amounts deducted are correct, but it is a good way to make sure your bills are paid on time. You’ll also save on postage, and you may get a lower interest rate on your student loan or mortgage (some creditors decrease interest rates if you agree to set up automatic payment).
Make your payments online. Instead of using a paper check, go online to your bank account and pay bills electronically. The money will be immediately deducted from your available balance. It’s neat and efficient.
Tags: credit cards, money management, mortgage, online banking, organization, reduced interest rates, student loans
You plan what you will make for dinner and you plan your vacation. You may have spent months planning for your wedding or a fancy party. Proper planning results in success. The same is true when it comes to your finances.
Prepare for taxes. If you dread doing taxes, take away your fear with a handy set of file folders or a single accordion file. Hang on to the receipts you collect during the day (jot a note on the ones that might be deductible), then slip them into the appropriate slots. If you make this a habit, all you’ll need is about 15 minutes to pull the information together to file your taxes next year.
Create an emergency fund. Life is full of surprises and ultimately unplanned expenses. Keeping a personal stash can save you from financial ruin in the event of an unforeseen illness, accident or layoff.
Make a will. If you haven’t already done this, stop putting it off! At the very least, you need a will and a Health Care Power of Attorney, which authorizes a person you name to make health care decisions for you if it becomes necessary. And if you have minor children, you need to name a guardian. It’s a simple process that will pay back with peace of mind. Make an appointment with an attorney who specializes in end-of-life issues.
Scan important documents to CD. Could you put your hands on all your important papers? Even if you know where they are, chances are your insurance policies, birth certificates and tax records are scattered about. Make life easier by taking time to scan all of your documents into your computer, then store them on CDs. Keep a copy for yourself and send one to a trusted friend or relative.
Tags: emergency fund, financial documents, financial plan, power of attorney, taxes, will
Every cent counts, especially in the wake of the current economic situation. Your bank account can work to your advantage, but unless you manage your affairs properly, your banking habits can also be costly. Consider the following tools to keep more of you money in your pocket.
Use direct deposit. Arrange with your employer to have your paycheck deposited directly into your bank account. This will eliminate the possibility of lost or misplaced paychecks, and the money reaches your account even if you can’t get to the bank. In addition, many banks and credit unions offer free or lower-cost checking accounts for customers with direct deposit.
Get overdraft protection. If you overspend your account, you face large fees from both your financial institution and the payee. Overdraft protection an account either to your savings account, a line of credit or a credit card to cover any overcharges you make. The small fee and interest you may pay will be a lot less than the bank’s coverage of an overdraft. You can also put your own overdraft plan into place by keeping a secret $100 or more in your account and exclude it from your current balance. If you make a careless error in the future, you’ll be covered.
Utilize online banking services. You already check your email and other web sites at least once a day. Why not add your bank account to the routine? Once you register at your bank’s site, you’ll be able to get current account information. Not only can you follow daily account activity, you can detect errors or fraud in a more timely manner.
Tags: bank accounts, direct deposit, online banking, overdraft protection, saving money
There’s usually an upside and downside to consider when making life decisions. For most people, each and every day involves some type of financial decision. Weighing the consequences of your choices against their apparent benefits is key in making the best moves with your money.
When considering applying for a line of credit, the pros include diversifying your credit sources, which has a positive impact on your credit score. It also allows you to access funds you may need for large purchases, like buying a car. Conversely, a line of credit is too often treated like free money. Such easy access to funds leads some borrowers to rack up consumer debt for things they don’t really need. In addition, outstanding balances will limit borrowing power on other loans, such as a home mortgage.
If you are considering withdrawing from your 401(k) or retirement savings to pay down debt, there are a few things to ponder. If you have a big debt to pay off, you may choose to either put off contributing to a retirement or savings fund, or to withdraw money from an existing fund. On the upside, paying down debt is a good thing, and the sooner it is paid off, the greater the savings in interest expenses for the borrower. However, withdrawing funds set aside for retirement will rob you of the benefits of compounding. Also, pulling the money out of your savings could leave you in a very bad position should something unexpected, like a job loss or illness. The earlier you start saving, the more money you will be able to accumulate for retirement. Properly invested, money saved now is almost always better than more money saved later.
When making choices on investing your money, there are a few things to look at. If you are nearing retirement age, a better option might be investing in invest in risk-free or nearly risk-free vehicles. This way, the risk of losing your hard-earned cash is extremely low. Although you are missing out on the opportunity to have your money work for you, the closer you are to retirement, the more conservative you should be in order to protect your investment. The younger you are, the riskier you can afford to be, because you have the time to make up any losses, and the higher risk may be warranted because it helps combat the effects of inflation on your portfolio’s gains.
If you are contemplating paying off a major loan, that’s a wonderful accomplishment that will save you months, or years worth of interest. But if you are thinking of going this route, make sure you take a look at your interest rate. Some loans have such a low interest rate that you’d be better off putting your money in a savings account that earns you a higher return and paying off your debt monthly. This is a good idea if your savings interest rate is higher than your debt interest rate and you are disciplined enough to pay the debt off on time, every month, and not to spend your money on luxuries instead. Remember, responsibly paying off monthly debt helps you to establish a good credit history. This is especially helpful if you don’t have a credit history or you are trying to rebuild a bad one.
Financial choices often have hidden consequences. Make sure you do your research so your financial situation will be the best it can be.
Tags: auto loans, financial decisions, home mortgage, investment risks, money management, saving money
You might not think there is a correlation between exercise and financial success. But, if you don’t exercise you may be negatively affecting your financial health, as well as your physical health.
How can not exercising hurt your finances? Daily physical activity lowers the risk of a multitude of ailments, from heart disease to diabetes to certain kinds of cancer. These illnesses are obviously expensive to treat, even for people who have health insurance.
Medical bills are behind more than half of all U.S. bankruptcies, and more than 75 percent of bankrupt families had health insurance at the onset of the illness. Meanwhile, a regular work-out might get you a raise. Studies have found exercise can improve your performance at work by boosting cognitive skills and productivity, and reducing stress and absenteeism.
Exercise is extremely important. Beyond helping you take control of your weight, it also manages your energy level and helps you sleep. Exercise keeps you mentally focused and builds discipline, two great habits for managing your money.
If you’re broke, it’s all the more reason to exercise. It helps lift your mood, by creating endorphins, and counter-acts any potential effects of depression or just ‘the blues.’ If you’re trying to pay the bills, the last thing you need is blues. You want lots of greens!
The less you want to do it, the more you probably should. The important thing is just to start.
Tags: bankruptcy, exercise, health insurance, medical expenses, money management, personal finances
If you have filed for bankruptcy, you may find rebuilding credit status a very difficult activity. It’s essential you rebuild credit after coming out of bankruptcy, since account details are flagged for seven years after the inception of bankruptcy. You may experience certain financial hardships, especially when it comes to acquiring loans and credit facilities from creditors. You may feel that getting fresh or new credit after Chapter 7 or Chapter 13 bankruptcy is next to impossible. Primarily this happens because the bankruptcy leaves a negative impact on your credit score and ratings for as long as seven years. Also, your credit score takes a beating during and just after bankruptcy, so creditors don’t feel like sponsoring an individual who has bad credit history and poor ratings.
You can, however, rebuild your credit status after being bankrupt. Here are some ways to do just that. Obtain a secured credit card. It’s possible to reestablish the credit ratings by applying for a secured credit card. This can be done by creating or setting up a savings account within a reputable bank that offers secured credit card facilities, and later applying for a credit card. A few banks offer unsecured credit cards. In such cases, no deposit is required to avail the facilities. It can be a very good option in reestablishing new credit ratings. In order to qualify, you need to be employed, and provide identity as well as residence proof in the form of telephone or utility bills. You also need to have a certain fixed monthly income. Your credit history should not include any recent derogatory entries or comments within the past six months.
When it comes to automobiles, certain dealers specialize in selling cars to individuals who have faced bankruptcy, or possess bad credit ratings. Check out the telephone directory, or look for advertisements of car retailers and dealers who specialize in such issues.Be prepared to pay big deposits, and higher interest rates. The automobile purchased functions as collateral for the loan. Since the credit facility is associated with high interest rates, many dealers might be interested in helping out. Make sure all your payments are made on time. Timely payments can help build good credit reports!
Tags: auto loans, bankruptcy, Chapter 13, Chapter 7, credit repair, credit report
For most of us, every day some type of financial decision needs to be made. It’s important to always weight the pros of your choices against the cons. Although at first it seems like avoiding debt altogether is a good financial choice for you, debt can also be a tool for financial success.
For example, if in your quest to remain debt free, you are turning down “good debt”, you are doing yourself a disservice. Good debt is debt that allows you to leverage your investments, for example, taking out a mortgage to buy a house. This is a financially beneficial move because houses and property tend to appreciate over time, and owning your home can lower your living expenses compared to renting. Another example would be taking out a student loan for post-secondary education. While student debt can be a huge responsibility, it is also an investment in yourself that boosts your potential earning power.
It is important to remember that any debt that is excessive or used to purchase wants instead of needs should likely be avoided. Additionally just because the debt is good instead of bad, does not mean that you should borrow all of the money that is available to you. Use good judgement when you make decisions to borrow money. Even if the debt is considered a good debt you should work to pay off your debts as quickly as possible.
Tags: borrowing, debt, financial plan, home mortgage, investments
