No! I am not talking about balancing on one foot or doing a fancy yoga move. Those can be daunting elements for us that don’t have perfect balance.
Rather, the topic is “balancing the check book“.
Though I could find no statistics to support the statement other than my experiences in helping people with their financial dilemna, at least 50% of individuals do not balance or don’t know how to balance a check book. In fact, I have met people who didn’t know it should be done.
Especially with online banking, individuals believe that by accessing the Bank of America, Suntrust or other bank account that they have a true picture of the funds in their account. Though this snap shot can provide a quick look to ensure you can withdraw $20 from the ATM(maybe) but it can not provide a true sense of the funds available to spend.
The only means to know actual available funds is to balance the account. Whether in the check register or a Excel spread sheet or in Quicken, the checks outstanding, the balance shown at the bank and checks written/cash withdrawals must be entered. Why??
Simple: To ensure the bank’s account records match your records. Yes, the banks do make mistakes(yes even beyond the crazy mortgages that they gave out). How do you find it? By reconciling your records to their records!!
Warning: Many banks will only acknowledge errors in their records within 30 days of the error. Monthly reconciliation/balancing will provide optimum protection.
Ready to get started?? Got a questions??
Happy with Your Credit Score????
Even Know Your Credit Score??
Today is a great day to check your credit score and take the necessary steps to improve it!!
From the pen of Mark Rodgers!!!!
Even disciplined spenders can find that their credit score is less than ideal. Miss only a couple of payments or spend over your credit limit and you may find yourself having to deal with a low credit score. This can hamper your efforts to get a good rate on a mortgage (or to even be approved for a mortgage) or to purchase a car using a loan.
Luckily, for those who find that their score is less than ideal, there are some relatively easy fixes.
First of all, it is important to know your credit score. People who are concerned about their score can request a free report at http://www.AnnualCreditReport.com. It is also important to know other things, such as the credit limit that you have on each of your credit cards and the interest rates of each card. If possible, you can transfer balances from high interest cards to low interest cards in order to pay off your balances more quickly (see #2 below). However, this may cause your score to lower temporarily (see #6 below).
Obviously, the best way to increase your score is to eliminate or at least pay down your credit card debt. This is not always possible, but getting your balance to at least 50% of your credit limit can stop your score from free-falling. Having a balance that is less than 25% of your total spending allowance is ideal.
If you have a family member or trusted friend with a good credit score, ask them to add you to their credit card account as an additional user. Once you are on the account and a card is issued to you, your score should increase. It is not even necessary to use the card (or even have it in your possession for that matter). All you have to do is have the card issued to you.
Open a new credit card and pay off the balance every month. If you remember the rules in #2 and are disciplined enough to pay off your balance every month, this could be a good idea if you only have one or two cards already. This new card can keep you on the road to a good credit score. However, having too many credit card accounts open can hurt your score, so it is best to close credit card accounts if you have more than three or four open at one time.
Make all your payments on time. Late payments are one of the biggest causes of decreased credit scores. Of course, there are other variables, but this one is the easiest to control. If you are having trouble making payments, talk to your creditors about changing the due dates. After recent struggles with home foreclosures and loan defaults, most banks are eager to work with their customers to ensure that they are able to pay off their loans.
It might be tempting to consolidate all your cards into one account through balance transfers. This can be helpful for paying off balances if you can get a card with a low introductory rate. However, if the balance is more than 50% of your credit limit, then the balance transfers will not help your credit score in the short term, and, if you pay down the balance slowly, it will hurt your score in the long term as well.
When you have a good credit score, don’t try to raise it any more. If you reach a mark of 650 or 700, stop and simply keep your balances below 25% of your credit limit and make your payments on time each month.
A good credit score is, like it or not, a necessity for making future purchases that require a loan (such as buying a house or a new car).
I can tell you that Mark is on track!!! So get your free annual credit report and begin to improve your score.
So by the way, what is a “good” credit score????? Do you know the range for credit scores??
Give it your best shot!!! Let me know!
Author Byline:
Mark Rodgers has been in personal finance for 4 years, he currently blogs about sites online to fine online insurance quotes and where to find savings online.
Read more: http://everythingfinanceblog.com/2011/01/how-to-increase-your-credit-score.html#ixzz1ABoADC8K
It is not t
o early to work on 2010 taxes!!!
And to plan for 2011??
Right now you can gather information on:
- Charitable Contributions
- Medical Expenses
- Work Expenses(not re-imbursed)
- 401K/403B contributions
- Mortgage Interest(if you own a home)
- Investment losses/gains
- Child care costs
By Jan. 31st, you will receive 1099 from investment accounts, W-2 from employer on payroll and deductions and similar information that will provide additional income and expense(i.e. federal and state taxes paid).
Though preparing to get your 2010 refund or to identify the payment still owed the state or federal government is very important, you also must begin planning for 2011 tax events:
- Should the number of dependents be altered to increase or decrease the amount of taxes taken each pay period?
- Does 401K/403B deposit need to be increased in 2011?? Or should it be decreased to aid debt repayment?
- How to offset dividends on 401K or other investments?
- Can more interest costs be tax-deductible in 2011?
- New tax laws impact?
Dependent on your situation, you may have other questions on 2011 taxes or 2010 tax preparation.
We all want to pay the fair amount of taxes without paying more than we must. This will get you started in the right direction!!
Questions???
FINANCIAL SUCCESS IN 2011!!
I hope this is one of your goals for 2011. Though we all have many fires that we are attending to in our lives, we must plan for and actively seek financial success if we expect it to occur.
By financial success, I am not speaking of hitting the lottery and life on easy street. Rather, financial success defined by having money put in savings each pay period. This obviously starts with paying all bills on-time every week/month as it might be due.
Simple Steps:
1. Talk with self or spouse to define priorities for year
2. Define Budget with definitive plan based on planned income and expected expenses.
3. Define Savings per month and the location for the saving deposit.
Note: If starting saving, use separate savings account and move money from checking to savings or write check and make deposit in savings every time you paid.
4. Beginning reading this blog regularly for ongoing tips to save money and to leverage the money you have!
Found another voice on Life Insurance.
You will note that no mention of term or whole insurance. But if you read closely, you will note that the examples all spoke “short” periods, i.e. term insurance. You also would have note that there was no example of life insurance for the “empty nester”. Mike is right on target as he notes that Life Insurance is not for you but for those you love that rely on you for your support. If the kids are out of the house and you have Mutual Funds, IRAs and Savings Accounts that you should have at this stage in life, life insurance isn’t needed for protection.
All opinions welcomed!
2010 is winding down!!! Christmas is over and, if weather has permitted, you probably have begun returning all the homey sweaters and out-dated tech “presents”. Yet, it isn’t simply time to coast until New Year’s Eve!
Now is the time to take charge of your job situation, whether employed or unemployed!
- If searching for a job or a better job, look outside your own field,
Given fields of work such as construction, finance and manufacturing have been hard hit. Retail, Hospitality and Medical fields have been expanding. Consider looking into local re-training programs to determine opportunities for financial assistance and the study program required to make the transition.
- Develop additional skill sets
Frequently, we all have developed certain skill sets: administrative, project management, production abilities, ect. Yet,to survive and to succeed in the present employment market, adding additional skills will make you more desirable to present or a future employer. Consider also more training in your given field…a computer specialist? Are you up-to-date with the latest code developments? A teacher?? Thought about Human Resources or Development positions in “Corporate America”?
- Acknowledge the new reality.
You are really your own CEO. Yes, whether you own your business or work for a horrible supervisor. You will always be CEO of your employment. For some, that will mean a careful evaluation of their present position versus their long-term goals. For others with the vision and passion for a given field or activity, it may result in starting your own business. Don’t fear the possibility…seek the tools and information…EVALUATE!! Local Small Business incubators, community colleges or larger universities will offer numerous resources to evaluate the need for the business and information on start-up costs and processes.
Where do you stand?
Ready for the future?
Interested in being in the CEO?
Though, without doubt, you should have the goal of becoming debt-free, it is very possible that you are still working through paying off all credit card debt. As discussed in prior blogs, credit card debt retirement is a lengthy process as the old adage “we can spend it faster than we make it” clearly notes.
But during this process of debt retirement, one definitely doesn’t want to be caught by a credit card fee that exasperates the debt repayment processs. With the recent legislation touted by media and Congress as the cure all to credit card fee and payment games, it is easy to believe the banks and credit card issuers hands are tied. Yet as the below article notes, you must stay alert. Note the advise to reduce/eliminate the debt!
RISMEDIA, December 20, 2010—The credit card fee changes of a few several months ago are designed, like previous changes, to protect consumers by adding clarity and transparency to interactions between card issuers and holders.
However, as these new rules take away revenue opportunities for card companies, issuers are raising other fees or creating new ones to compensate. Money resource Bills.com cautions consumers to be aware of the new rules and also learn how to avoid new fees.
In order to avoid these fees, personal money resource Bills.com shares the following strategies consumers can employ to better avoid additional charges that have arisen because of changes outlined in the Credit CARD Act.
1. Monitor your communications from your credit card issuer. One of the best ways to stay abreast of changes specific to your cards or situation is to closely monitor information sent from your issuer. New regulations require much greater disclosure on all changes, so any update will be sent to your attention. Be alert for all mailings and read them carefully before throwing away or destroying.
2. Maintain prompt payment status with your credit card company.Despite all these changes, the simplest way to avoid fees is to pay your credit card bills on time. By missing or being late on a payment you will incur fees, potentially increase your interest rate and lower your overall credit score.
3. Pay down high balances to improve credit card utilization. This will show that you can responsibly manage your credit limit, minimizing the chance of higher tiers of interest rates or reductions in credit limit. Additionally, better credit utilization will help boost your credit score.
4. Maintain activity on your credit card accounts. By using the revolving credit lines that you need or want to keep and promptly paying on them, you can help avoid cancellation of those credit card accounts. This will also help avoid faux inactivity fees and help boost your credit score, while having a long existing credit line closed could lower your score.
5. Avoid over-limit fees through responsible spending habits. Credit card issuers have begun to charge fees for opt-in over-limit coverage. By remaining aware of credit limits and balances, consumers can avoid a need for this service and these fees altogether.
6. New regulations do not apply to corporate or small business cards. This means some small business owners might consider using personal cards for business expenses because of fee and rate limitations. However, these owners should remain cautious because their personal credit scores could suffer in the event of missed payments or defaults. Conversely, be aware of companies that are increasing solicitations for corporate card members to avoid new regulations.
For more information, visit www.bills.com.
Merry Christmas!!!
BradsDeals.com Stores & Services Offering Military Discounts
– Discount varies, simply ask and have a valid military ID with you. Aeropostale – 20% off in store, just bring valid military ID Agentsource.com – Up to 40% off standard real estate closing costs for Active duty men and women moving in the United States or Canada All State – Allstate Funding proudly offers all U.S. Military personnel a $250 credit towards the appraisal of a residential property. Ends 12/31/2010 American Airlines – Discount varies, requires military ID American Video Productions -10% off to active duty, retired, families of military and dependents. Call and ask for the discount http://www.americanvideoproductions.net/ Amtrak – 10% off Anheuser – Busch Amusement Parks – Discount varies, simply ask and have a valid military ID with you. Anna’s Linens – 10% off any purchase with Valid Military ID in store only Apple Computers
Applebee’s – Discount varies per location, simply ask and have a valid military ID with you Arby’s – Discount varies per location, simply ask and have a valid military ID with you. Ashford University – Discounted tuition at $250 a credit, books are covered for all required courses, waived application fee, waived technology fee and more! Benefits apply to all Active Duty, National Guard, Reservists and spouses, dependents eligible for survivor benefits, plus civilian DOD employees & separated vets/retirees still using their GI Bill. ASMBA – Armed Services Mutual Benefit Association – Membership in the non-profit association is free, and, when you join, you’ll get $3,000 of free AD&D coverage. AT&T – Discount varies, simply ask and have a valid military ID with you. Auto Zone – Varies Per Store – Discount varies, simply ask and have a valid military ID with you. Avis – 25% off, online you should use this coupon AWD # A555084 Azamara Cruises
– Discount varies, simply ask and have a valid military ID with you. Banana Republic – 10% military discount 1st of every month (may vary by location; in-store only). Barnes and Noble – 6% off regular price plus free shipping, check out http://www.bn.com/militarycity Barnhill’s – Discount varies, simply ask and have a valid military ID with you. Bass Pro Shops – 10% off from the 15th to 22nd of each month Bath & Body Works – Discount varies, simply ask and have a valid military ID with you. Bed & Breakfast Inns – Varies, online Best Inns and Suites – Varies, must present Military ID with check-in Best Western – Rates within allowable per diem, must present military ID with check in Beyond Blossoms – 20% off all flower orders throughout the year 12/31/2010 Big 10 Tires – Discount varies, simply ask and have a valid military ID with you. Blockbuster – Discount varies, simply ask and have a valid military ID with you. Boscov’s– 15% off in-store purchases with military ID everyday. Bronson labratories – 10% off on all vitamin and supplement orders, for active, retired, and reserve and their families Call 1-800-235-3200 1-800-235-3200 or use online code AF2004, ends 1/21/2011 Buckle – 10% off, Free Shipping on all military orders Budget – Varies, up to 25% off time and mileage Store, requires military ID to redeem Budget Truck Rental – Discount varies, simply ask and have a valid military ID with you. Burger King – Discount varies, simply ask and have a valid military ID with you. Busch Gardens
– 5% military discount Captain D’s – Discount varies, simply ask and have a valid military ID with you. Carl’s Jr. – Discount varies, simply ask and have a valid military ID with you. Century 21
Champs Sports – Discount varies, simply ask and have a valid military ID with you. Checker Auto Parts – Discount varies, simply ask and have a valid military ID with you. Chevy’s Fresh Mex – Discount varies, simply ask and have a valid military ID with you. Chick Fil A – Varies, Discount with ID card (location dependent), discount varies, simply ask and have a valid military ID with you. Chipotle – Discount varies, simply ask and have a valid military ID with you. Ci-Ci’s Pizza – Discount varies, dependent on location, must present military ID Cingular – 17 to 18% Discount off your bill and 25% off accessories Clarion Inn – Rates within allowable per diem while on travel orders. Must present valid miliatry ID with check-in Comfort Inn – Rates within allowable per diem while on travel orders. Must Present valid military ID with check-in Coolmilitary.com – 10% off, online, ends 12/31/10 Copeland’s Sports – Discount varies per location D.S.W. Shoe Warehouse
– 10% off, location dependent Days Inn – Rates within allowable per diem. Must present valid military ID with check-in Dell Computers – Discount varies, simply ask and have a valid military ID with you. Denny’s – Discount varies, simply ask and have a valid military ID with you. Dick’s Sporting Goods – Discount varies, simply ask and have a valid military ID with you. Dick’s Sporting Goods – Varies per location Discovery Channel Store – Discount varies, simply ask and have a valid military ID with you. Disney Resorts – Discount varies, simply ask and have a valid military ID with you. Disneyland – Military discounts are available only for tickets purchased at installation MWRs. Prices vary per date and length of visit Dollar Car Rental – Allowable per diem rates Dunkin’ Donuts – Veterans advantage members save 10% on all online orders. They also send free coffee to the troops oversees. DZ Web Design
– 25% off, discount ends 12/31/10. El Molino Coffee Shop – Free Shipping, online Express Clothing Store– 10% off on top of other coupons as well with military ID Extreme Outfitters
– Discount varies, http://www.encs.com/ford/ Forget me not Jewelry – 30% off, ends 12/31/10. Online, use code militarygen100 at http://www.forgetmenotjewelry.com Friendly’s Ice Cream Stores
– 10% military discount 1st of every month (may vary by location; in-store only). Geico – 2% to 15% in all states except Georgia, Indiana, Maine, Massachusetts, Michigan, Mississippi, New Jersey, New Mexico, Tennessee and Texas GM – Varies, always well below MSRP. You can sign in online at https://www.exclusivegmoffer.com/ip-gmpop/initPop.do?program=mpp GNC – Discount varies, simply ask and have a valid military ID with you. Golden Corral
– 50% discount on all sunglasses. Online at http://www.habervision.com/CodeResult.aspx?code=JB10222Q Hertz – Allowable per diem rates. Show valid military ID Hewlett-Packard – Log on to website and click on New User Registration: Enter first and last name, user name, password and email address. Use company code: 2727. Discounts vary. Online only. HickoryFarms.com – 10 percent Military discount – Enter 892848 in code box on online order form Home Depot
– 20% with Military ID at owner’s discretion Imax – $1 off movie tickets with Military ID Inkshouse.com – 20% off $50 or more, use cod Mil20 istudysmart.com
– Discount varies, simply ask and have a valid military ID with you. Jeep – $500 for active military, reserves and retired reserves or active after 20 years of service. Requires military ID Jiffylube – 10% off with valid Military ID Jockey
– 15% off during advertised Military Days KFC – Discount varies, simply ask and have a valid military ID with you. Kohl’s – 15% off with Military ID Kragen Auto Parts
– 15% off Long John Silver’s – Discount varies, simply ask and have a valid military ID with you. Longhorn Steakhouse – 10% military discount Lowes
– It’s the Per Diem amount the government picks up, whatever that amount is. Just call and place the reservation over the phone and ask for that discount. Online at http://www.marriott.com/reservation/worldnum.miBradsDeals.com Stores & Services Offering Military Discounts 27 September 2010 Page 5 My Cruise Club – 9% off on all cruises, ends 12/31/10,
– 10% off, use code 10MILCITY Rack Room Shoes – 15% discount. Bring in valid military ID Raising Cane’s Chicken – Discount varies, simply ask and have a valid military ID with you. Ramada – 15% to 30% – depending on availability. Must present military I.D. upon check in. Red Robin – Discount varies, simply ask and have a valid military ID with you. Regal Movie Theaters – Matinee prices for all show times. Requires Military ID Ripley’s attractions and museums – Discount varies, simply ask and have a valid military ID with you. Rocky Mountain Chocolate Factory – 10% military discount Rocky Mountain Tracking
– 8% Discount on all items free shipping on orders over $99 & APO/FPO shipping. To access the military site at S&K you must go through their AAFES Exchange Mail Online service. http://bdeal.me/aCVq2X Sally Beauty Supply – Discount varies, simply ask and have a valid military ID with you. Samsonite– 15% off with military ID Sea World -One day complimentary admission for members of the military and 3 direct dependents in 2010. Here’s to the Heroes Sesame Park Place– One day complimentary admission for members of the military and 3 direct dependents in 2010. Here’s to the Heroes Shoe Carnival – 10% off Sierra Suites – Rates at or below per diem depending on location. Discounts may vary and depend on availability. Must present military I. Six Flags Mountain Magic – Service members receive special discounts on admission for special events and specific dates. Tickets must be purchased in advance MWR and ITT 143. Recreation offices, not at the park. Sizzler – Discount varies, simply ask and have a valid military ID with you. Sleep Inn – Rates at or below per diem depending on location. Discounts may vary and depend on availability. Must present military I. Sonic – Discount varies, simply ask and have a valid military ID with you. Southwest Airlines – Varies, it’s a dollar amount, not a percentage. Not available on all flights, you’ll have to call Southwest and simply just ask. Spencer’s Gifts – Discount varies, simply ask and have a valid military ID with you. SportsMemorabilia.com – 10% off at checkout, use code mili10 online Sprint Business – 15% to 20% Discount, 1-888-788-4727 1-888-788-4727 Suzuki
– Discount varies, simply ask and have a valid military ID with you. Texas Road House – 10% military discount Texas Roadhouse – Discount varies, simply ask and have a valid military ID with you. The Finish Line – 20 percent military discount off select items at special locations The Melting Pot
– 15%, bring in valid military ID Toyota – $500 off + $500 for firs time buyers. Requires military ID Travelodge
Should I invest in Whole Life?
Or is Term Insurance right for me??
These may be the most common insurance questions out there. Life insurance itself is nebulous as it ensure against a situation we don’t like to think about or know how to plan for. Often the question of life insurance revolves around an analysis of “how much” rather than what kind.
Frequently, individuals speak to salespeople that do a “detailed” “gap analysis” to determine what they can sell the individual. It is frequently true that a person’s insurance program is ill-fitted for them(survey seem to always prove this), but the individual could be over insured as well as under insured over a variety of insurance categories.
But as relates to life insurance, the type of insurance is a significant consideration regardless of the amount of insurance. Whole Life/Variable Life/Universal Life provide an investment factor that Term Insurance does not. Whole Life will over Paid Up Insurance, Projected Values, Actual Values and similar functions that provide an estimate of your investment growth while guaranteeing “X” death benefit(face value).
Term Life simply exchanges a premium dollar for “X” death benefit for some period. The best Term Life policies are guaranteed term policies…typically 10, 15 and 20 year terms.
I agree solidly with Susan Orman and other that strongly support Term Life over Whole Life. A great example of the differences between Whole Life and Term Life are shown in this conversation that Suzi had with someone calling in to her show: http://www.youtube.com/watch?feature=player_detailpage&v=sGDgYLCpnDo
Think about it??? Do you want to get life insurance for your benefit or for the salesman’s benefit? As Susan notes in this example, one can get a term policy for $50/mth instead of putting $650/mth into a whole life. If you are there already, simply look at the “guaranteed” cash value at the 10 year or 20 year(long term investment is the key to whole life). Then take your premium difference, in this case $600/mth, go to Ameritrade or similar investment websites or your bank’s website to find a calculator to determine the value of this continued investment for the 10 or 20 year period based on a given % of return per year. Or you can use a simple excel spreadsheet formula to determine the future value of your investment.
For this example, in 10 years, if you assumed a 8% return on the investment, you would want to ensure your ‘guarantee cash value‘ is superior to $109,000. For the 20 year period, the “guarantee cash value” would need to exceed $353,000. I would be very surprised if you found that your Whole Life policy had a superior value.
Hint: If the policy only shows a projected cash value in “x” years, compute the percentage of growth anticipated over time. Look for the footnote that notes it isn’t guaranteed.
Though it is true that no mutual fund, stock or bond has guaranteed returns. But they each note expenses and/ key financial data on which to base any buy or sale decisions. With whole life programs, you can sense the expense function by looking at the 1st few years of “investment growth” but you can never determine actual cost or investment strategy. The insurance company is driving the boat…and if you don’t believe they have a certain desire for profits that must come out of our pocket, we need to talk.
While there are no guarantees in life, use Term Insurance for any life insurance needs and invest your money in investment vehicles that are purely investment. Secondly, your health, age and amount of insurance purchased will all change the financial analysis noted above. But the numbers should always favor term
SO MAKE IT PERSONAL!!! An analysis before you buy!! Or if you own whole life, universal life or variable life, analyize your situation!!
Fundamentals of Personal Finances 