Companies of all sizes are being targeted by criminals through business email compromise scams. In these scams, cybercriminals gain access to an employee’s legitimate business email through social engineering or computer intrusion. The criminal then impersonates the employee, often a senior executive or someone who can authorize payments, and instructs others to transfer funds on their behalf. First Federal Lakewood recommends the following tips to help businesses and employees avoid business email compromise attacks: • Educate your employees. You and your employees are the first line of defense against business email compromise. A strong security program paired with employee education about the warning signs, safe practices, and responses to a suspected takeover are essential to protecting your company and customers. • Protect your online environment. It is important to protect your cyber environment just as you would your cash and physical location. Do not use unprotected internet connections. Encrypt sensitive data and keep updated virus protections on your computer. Use complex passwords and change them periodically. • Use alternative communication channels to verify significant requests. Have multiple methods outside of email – such as phone numbers, alternate email addresses – established in advance through which you can contact the person making the request to ensure it is valid. • Be wary of sudden changes in business practices or contacts. If an employee, customer or vendor suddenly asks to be contacted via their personal e-mail address, verify the request through known, official and previously used correspondence as the request could be fraudulent. • Be wary of requests marked “urgent” or “confidential. Fraudsters will often instill a sense of urgency, fear or secrecy to compel the employee to facilitate the request without consulting others. Use an alternative communication channel outside of email to confirm the request. • Partner with your bank to prevent unauthorized transactions. Talk to your banker about programs that safeguard you from unauthorized transactions such as call backs, device authentication and multi-person approval processes. For more tips, see the FBI’s Internet Crime Complaint Center’s public service announcement. If you fall victim to a business email compromise scam: • Contact your financial institution immediately to notify them about the fraudulent transfer and request that they contact the institution where the fraudulent transfer was sent. • Contact your local Federal Bureau of Investigation office as they might be able to freeze or return the funds, if notified quickly. • File a complaint, regardless of dollar loss, at www.IC3.gov.

6 Ways to Protect Your Business from Business Email Compromise Scams

View Resource 6 Ways to Protect Your Business from Business Email Compromise Scams
Couldn’t we all use a little more storage space? Lifestyle trends indicate that more people are gravitating towards smaller spaces than ever before. An increasing number of empty-nesters, first-time homebuyers, and people downsizing in a slow economy mean smaller spaces are here to stay. Let’s look at a few easy ways to maximize the space you have, in every room. Everything in its right place It may sound easy, but how many of your kitchen utensils or bath products are really in the exact place they were when you first organized them? Taking a little extra time to store household items consistently makes them easier to find and frees up extra space. Need it often? Move it forward Arrange items so the most frequently used are at the front of your shelves or cabinets. You’ll save time and avoid the hassle of digging to the back when you need them. Sliding shelves for cabinet convenience Cabinets are a lot more user friendly when they include sliding shelves. You won’t have to struggle to reach the back of the cabinet to grab that skillet that always falls behind everything else, and you’ll be able to use every inch of space because you can easily bring everything to you with a simple pull. Use it or lose it If you haven’t used an item in years, you probably don’t need to keep it. Every room can use an annual clean out to reduce the clutter. Reorganize those closets, cabinets and shelves and decide what you really need to keep and what can go.

Maximizing Storage Space for Everyday Items

View Resource Maximizing Storage Space for Everyday Items
“Smart” homes, or homes with features you control from a phone or other connected device, have become extremely popular in recent years. In fact, according to CNET the number of smart homes in the U.S is expected to triple by the year 2018. Adding a few smart features to your home is easy and relatively inexpensive, with connected products available for as little as $50. Here are five simple ways to make your home just a little smarter: Programmable light switches Make it look like you’re home when you’re away with smart lights that turn on and off at select or ran-dom times. It’s a great security feature, and one of the easiest ways to start automating your home. Most home improvement and electronics stores sell smart light systems for about $50. Automated garage door Around 70% of U.S. homeowners use the garage as the main entry to their homes. Monitor and control the most active door in your house with smart phone alerts that let you know when the garage has been left open. Smart controls also let you open it from anywhere in the world for guests, deliveries or contractors. Smart door locks Lock and unlock your front door from anywhere with your smart phone, or give others access to your home without having to lend out your spare key. Smart locks start at about $200 and feature automated alerts to let you know when the door is locked or unlocked. Streaming home security video For about $150, a home video camera adds security by streaming live video to your smartphone the instant any movement is detected in or around your home. Smart temperature control Smart thermostats let you adjust your home’s temperature from wherever you are. Remotely switch your settings to vacation mode if you forgot to do it before you left, or turn on the heat before coming home to get the house comfy. Prices start around $250, and you’ll save up to 20% in energy costs annually.

Five Essential Smart Home Features

View Resource Five Essential Smart Home Features

Its always a good idea to have savings tucked away for a rainy day. Emergencies such as legal or medical bills or loss of a job can all force you into ‘rainy day’ mode. Planning ahead can make these types of events easier to cope with. Determine how big your rainy day savings need to be by factoring in emergency spending needs and essential spending needs if your source of income is interrupted. Once you know what you’ll need, put together a plan based on your current savings, monthly savings and the number of months you want to take to build your rainy day fund.

Save for a Rainy Day

View Resource Save for a Rainy Day
You know you need to save more money, but it seems impossible. After all, you are barely paying your bills now. Moreover, it does not look like your income — thanks to the sluggish economy — is set to grow anytime soon. Saving money, though, should be a priority. If you do not have any savings, how will you handle losing your job or suffering a costly injury? The odds are, you’ll run up loads of debt to cover these financial emergencies. The good news is that saving money is not as difficult as you might think. You can save, at least a little, even if you feel that you have few dollars to spare. Your Budget Your first step is to draft a budget. You cannot save money if you do not know exactly how much money you have coming in and how much is going out each month. At the beginning of every month, estimate the amount of money that will flow into your household. Then subtract your monthly expenses from this figure. Don’t forget to be realistic. Budget enough for groceries and entertainment. If you create a budget that’s not realistic, you’ll have little chance of following it. At the same time, you need to be spending less than you are taking in. So, if you have to, that means cutting back on things that shouldn’t be a priority over saving money. Once you know the difference between your income and your expenses, you’ll know how much money is available for saving. Force Yourself to Save You might get discouraged when you see the results of your budget, especially if you only have a small amount of money left over once you calculate your expenses. Here’s a simple truth, though: What’s important is that you start saving something, not how much you are actually saving. Thanks to compounding, depositing money in an interest-bearing savings account will help your money grow faster. This is a strong case for making regular deposits in your savings account, even if these investments are small ones. So, if at the end of the month you’ll only have $50 for your savings account, don’t get discouraged. Instead, deposit that money. Your Savings Account It is important to select the right savings account. You’ll want an account that pays interest. Your money will not grow as quickly in a savings account as it might in a riskier investment vehicle. However, remember: Your money will remain in your savings account for the long haul. It will grow steadily over time, not necessarily quickly. Secondly, be wary of accounts that require minimum balances. If you do not have a lot to invest early, you’ll need to make sure that you will not face any fines for not having enough dollars in your savings accountant. Direct Deposit If your employer offers direct deposit, it makes sense to ask to have some of your money from your paychecks automatically deposited not only in your checking account, but also in your savings account. This way, your savings account will grow without you having to think much about it. Just make sure that the amount you are automatically depositing is not more than you can afford. You need to be able to pay your bills as well as save your dollars.

Budgeting a Savings Plan

View Resource Budgeting a Savings Plan

The future value of your savings plan is dependent on the starting balance, additional monthly savings and the rate of return you receive on those savings. For the most accurate valuation, you’ll have to to separate taxable accounts such as savings and CDs from your tax-deferred accounts such as 401(k)s and college 529 plans.

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What Will My Savings Be Worth?

View Resource What Will My Savings Be Worth?
December comes with a whole slew of expenses that can really break your budget if you haven’t been saving up for them. Between buying gifts, hosting parties, and traveling to visit family, you can easily spend hundreds, or even thousands, of dollars. Unless you have been saving money throughout the year, you will probably end up putting these expenses on a credit card. You’ll be stuck paying for them all year next year, or longer, and the interest expenses will add up. Instead of going into debt next year, consider opening a Christmas club account to help you reach your savings goals. How Christmas Club Savings Accounts Work A Christmas club account is a savings account offered by many banks and credit unions. You typically open the account at the beginning of the calendar year and set up automatic contributions to the account on a regular schedule, whether you choose to make them weekly, bi-weekly, monthly, or quarterly. The bank or credit union often pays interest on the balance in the account throughout the year so your savings will grow. Near the end of the year, you can withdraw the money saved and all of the accrued interest and use this money to make your holiday purchases. Many banks and credit unions charge penalty fees if you withdraw money from your Christmas club account before the designated withdrawal period. Each bank or credit union has its own specific details that you need to read and understand before opening the account. Advantages and Disadvantages The main advantage to a Christmas club account is that it forces you to save money throughout the year for your holiday spending. Because the money is in a separate account that may have early withdrawal penalties, you are much less likely to dip into it than you would be if you just left the money in your checking account or stashed cash in your home. Another advantage is that Christmas club accounts often pay higher interest rates than other types of savings accounts with similar deposit amounts. And of course, your Christmas club savings has the advantage of helping you avoid accumulating credit card debt while doing your holiday shopping. Christmas club accounts are not the best choice for everybody, though. For example, if you like to do your shopping throughout the year, you will have trouble if your money is stuck in the account until the fall. Another potential disadvantage is that some accounts automatically deposit the account balance into your checking account in the fall, and you might accidentally spend your Christmas money on other expenses if you didn’t notice the deposit.

How Christmas Clubs Get You Ready for Christmas

View Resource How Christmas Clubs Get You Ready for Christmas
How you legally structure your business affects your tax status and your liability. It has a significant impact on how investors, banks, and credit unions perceive your worth. So taking the time to investigate your choices makes sense. The organization structure you select is especially crucial with the recent passage of the Tax Cuts and Jobs Act of 2017. In addition to making significant cuts to corporate tax rates, the Tax Cuts and Jobs Act altered how many small businesses structured as ‘pass-through’ entities will pay their taxes. For these companies, income that passes through to their individual federal tax return from the pass-through entity will be taxed at individual tax rates less a deduction of up to 20% to bring the rate lower. However, there are qualifying rules for this treatment that with which you will need to become familiar. Changing from one structure to another after you have been in business awhile is possible, but there is paperwork and legal tasks to perform. These functions may include transferring licenses and permits, dissolving the entity, registering with local and state agencies, and notifying the IRS, banks, credit unions, and vendors. Plus, you might need to hire an accountant and lawyer to ensure the change is properly executed. Here is a look at the most common ways to structure your business and their ramifications. Types of Organizational Structures In the United States, there are four main types of business structures: Each has its pros and cons. Sole Proprietorship A sole proprietorship is a way many small businesses start because it is simple to get started. As the owner, it gives you complete control over the operations of the company. Many home-based businesses and one-person consultancies choose this, as well as small shops and retail and service-based firms. With a sole proprietorship, you need to keep your records and pay the IRS with self-employment taxes. To reduce the burden of once a year tax payment, you can spread it out in four equal payments throughout the year, using estimated tax as your basis. This structure does have limitations. You are afforded no safety net for liability, debt, and financial obligations, so your personal assets are at risk. However, it has tax advantages, especially helpful in the early days of a business. You can use your business losses to offset other income since everything is reported on your personal tax return. Partnership If you join up with a colleague to put together a business, your organizational structure is the partnership. There can be two or more people in the partnership, each with an equal share of both the net profits and the net losses. Each partner reports his income on his personal IRS tax form and pays self-employment taxes. If the partnership gets sued, each partner is personally liable for debt and obligations, as well as the actions of each of the other partners. LLCs and S Corps Both LLCs and S Corps are hybrids of the corporation form of organizational structuring. A corporation is the most complex of all the types. Its most significant advantage is that any liabilities and obligations get borne by the corporation, not the individual owner. Corporations are taxed as separate legal entities at specific corporate tax rates. Individual states regulate corporations. Limited liability corporations have become popular because they offer some protection in liability cases, as the name implies, just like a corporate structure does. With an LLC, even if you are the sole person in the business, you are viewed as a member of the company, not the owner. Some LLCs are partnerships. With an LLC, both earnings and losses are passed through to the person who owns the business, who then includes them on their personal tax return. Keep in mind that with the recent passage of the Tax Cuts and Jobs Act of 2017, the rate you will pay will be dependent on how your income is earned and the type of business you operate. Subchapter S corporations, usually called S corps, can pass both losses and income on to their shareholders. This gives them a legal avenue to avoid paying federal income taxes, eliminating the chance of double taxation of the profits of the corporation. It is wise to ask an accountant or lawyer for input as to which structure will work best for your business and the future you envision for it. As your business grows and its needs change, rest assured though that your business structure can most likely be altered to meet these changes. Many startup businesses begin as a sole proprietorship or partnership and grow into an LLC or corporation.

Organization Structures

View Resource Organization Structures
Every time your turn around it feels like mobile phone companies are finding new ways to charge consumers more for their mobile service plans. While many people believe that is simply the price for having these valuable services, the fact is that many consumers are looking at their mobile plan and thinking to themselves, ‘how did it get this high’? It is possible, however, to take back control of your soaring mobile phone bill and get it back in line with your household budget. Cost of Mobile Plans If you are like many consumers, drawn into mobile phone stores with the promise of low monthly rates on shiny new phones only to feel as if they picked your pocket by the time you left, it is time to make some changes to the mobile plans you are purchasing. Consider these changes to your mobile plan and see how much money you can save month after month. Reducing Your Mobile Phone Bill Trimming the fat from your cell phone bill may feel like a Herculean task, but it does not have to be. Part of it involves monitoring your use to determine how much time you spend talking, texting, and surfing on your phone – and where you are when you do these things. The other part involves looking for alternatives that may allow you to make significant money-saving changes to your mobile plan. This includes: Speaking of Wi-Fi, use that whenever possible instead of relying on your phone’s data. From shopping malls to fast food restaurants, and many places of employment. There are few places you go these days that do not offer free Wi-Fi, Then, at home, your Wi-Fi can save the day. By reducing your reliance on your provider’s mobile data network to only times you are actually on the road or in a Wi-Fi wilderness, you can significantly reduce your mobile data plan to a more manageable level. Little changes like these can help you tame the cost of your mobile phone plans so you can keep your expenses under control.

Is Your Mobile Phone Bill Out of Control?

View Resource Is Your Mobile Phone Bill Out of Control?
With the rise of debit cards, paper checks can seem slow and outdated. After all, checks work much like a debit card, allowing the recipient to redeem the check for the stated amount, although the actual transfer of funds can take longer. While there is an argument that paper checks are no longer relevant or useful, they are still in use, primarily by adults over the age of 55, with checks accounting for 15 percent of all non-cash payments in one of the latest studies reported by the Federal Reserve. Checks are still heavily used for large money transactions, such as payroll and rent. Here’s a brief look at the benefits and drawbacks of paper checks and why they still have a place in today’s online-dominated marketplace. Pros of Paper Checks No payment solution is best for every situation. For example, debit and credit cards, while convenient, can come with a higher risk of identity theft and higher costs for merchants. The following are the most important benefits that paper checks can offer. Cons of Paper Checks There are many reasons that paper checks remain relevant, but they are not without drawbacks. Takeaway The days of paper checks dominating the payment landscape are gone, but paper checks are still relevant. Check payments offer benefits not available with other payment options, including the ability to post-date a payment, stop a payment, and create an easily traced paper trail for recordkeeping.

Are Paper Checks Still Relevant?

View Resource Are Paper Checks Still Relevant?
Many people save and plan all their lives with the full intention of relocating for retirement. While many have somewhere warm and tropical in mind, plenty of retirees are considering relocation to reduce expenses, live closer to children and grandchildren, or to have better access to quality healthcare during their golden years. Before you pull out the packing boxes, though, there are a few things you might want to consider before relocating for retirement. Benefits of Relocation There are many potential benefits to relocating for retirement, some of which are not at all insignificant. As you explore your options, make sure you explore a few of the potential benefits associated with relocating for retirees: Financial Impact You may have dreamed of a retirement in which money was no object. The reality is that retirees are spending longer and longer days in retirement. That means, for many people, money most certainly is an object in your golden years. With this in mind, it is necessary to consider a few financial benefits for relocating once you quit working. Of course, this is not a guarantee, and the savings are not universal. So, do a little research to see where a move can save you the most money. After all, the money you save on housing expenses, the more money you will have to spend on things that will make your later years more enjoyable. Social Impact One cost people often fail to consider when deciding to relocate is the social change it represents. You have spent a lifetime making friends, getting to know neighbors, and becoming part of a broader community. Moving will not only have you leaving your home behind but also the friends and neighbors that made it feel like home. It can be a substantial loss for many people should be a serious consideration for anyone contemplating a move. That is especially the case for people who take a while to build new connections and make new friends. The decision to move is one that must be more than purely financial and should take the total costs into account. Selecting a Location Choosing the perfect location for retirement may not be as difficult as you believe. You will need to make a few comparisons of your own to determine things like cost of living and which states offer the most attractive benefits to retirees. Healthcare is usually a top consideration for retirees, so look into the presence of quality medical care when deciding on your retirement location. Some states actively seek retirees offering huge perks to those who choose to live there during their golden years. Look at more than the cost of renting or buying homes. Dig deep and look for information for the state you are considering regarding the following: Also, don’t forget to look at local prices for groceries and food, gasoline, and utilities as well as for activities that interest you. That will give you an idea of costs you can expect, financially, when moving. Relocating for retirement is probably not a new concept. However, the science of choosing the perfect retirement location has gotten a little more complicated over the last couple of decades. Keep these things in mind to help make your relocation decision easier, more affordable, and more comfortable to make.

Relocating for Retirement

View Resource Relocating for Retirement
It is never too soon to start teaching your children smart financial habits that will help them throughout adulthood. One of the most important lessons for your teen is responsible banking, which can encourage saving, spending within your means, and avoiding overdrafts. The following are critical areas to cover in a banking discussion with your teen. Teaching Good Habits You want your child to learn good habits as young as possible to help them enjoy financial independence and responsibility as an adult. One of the best ways to do this is teaching the importance of saving. You may want to help your teen set a savings goal, whether it is for the latest and greatest gaming system, a new bicycle, or buying their first car. An excellent habit for teens to develop early is setting money aside in their savings account. You may want to encourage them to save a certain percentage of their money, such as 10%, to help their savings grow. A checking account can be a useful tool for money management as well, especially if your teen wants an account for daily spending. Teens often struggle with a small budget and a long list of wants, including nights out with their friends and the latest gadgets. Help your teen understand the difference between a need and a desire and how their money, when spent wisely, can protect them in the future. One of the essential habits a teen with a new checking account will need to develop is monitoring their balance and tracking their expenses to avoid overdrafts, a negative balance, or insufficient funds for a purchase. Banking Priorities Talk with your teen to help them determine their priorities when using banking services. Every teenager is different: some want to save for college or buy a car while others are more interested in stretching their money as far as possible. For teens, banking priorities may include: Things to Look for A teenager’s first bank account can help build money management skills. While you can choose a regular checking or savings account, there are also bank accounts designed specifically for teenagers and even younger children. It is essential to check with your bank or credit union on any requirements they might have before opening an account. Some banks and credit unions require a parent as a co-signer while others limit eligibility to teenagers over a certain age, such as 16. Your teenager may be able to open an account with less than $10, but some accounts have ongoing balance requirements and will charge monthly fees if you do not meet them. You will want to avoid those. Other features and fees to look for include: Takeaway Checking and savings accounts are great tools to teach teenagers the financial habits they will need for the rest of their life. It is never too soon to teach your teen how to use banking to their advantage and how to set aside money for a rainy day. In most cases, a teen bank account will be a better option than a traditional account as it will likely include teen-friendly features and minimal fees.

Introducing Your Teen to Banking

View Resource Introducing Your Teen to Banking
Secondhand stores are flourishing. According to The Association of Resale Professionals, where retailers only see around a two percent increase in sales a year, sales at secondhand stores are growing each year by 35 percent. That means you, the consumer, are getting the opportunity to find a broader range of goods at excellent prices. Used Items That are Just as Good as New You will find certain items that you can save big by buying used and still come home with an item that’s as good as new. Some used, but still good items you will find out there in the resale market include: Bicycles Newer models of bicycles, like vehicles, come out each season, meaning you will likely find older models listed in the winter and fall seasons for a fraction of the cost. If you do not like the prices you see at your local bike shop, you may want to check out websites like eBay, Letgo or Craigslist. However, before you make a purchase online on sites like this, make sure you use a little common sense. If you see an ad that uses a stock image or just seems like a scam, it could be. Worse, it could be a stolen bike. Most of the time, these sites are ideal for finding great deals for quality items. Exercise Equipment You will find different types of exercise equipment that are still in great condition at far below new prices including: A lot of the times, people will purchase exercise equipment with the intention of beginning a workout regimen, but quickly lose interest. They then don’t have the storage space in their homes to store these bulky items, so they list and sell them at low prices to get rid of them quickly. You may also score these high ticket items at killer prices at garage sales, on Craigslist or at a local gym. Textbooks When in college, it does not make much sense to buy your textbooks brand new. They can get expensive, and chances are, you will only use them while taking a specific class. Instead, you can find books at huge discounts at used bookstores or online on sites like Half.com or Amazon. When you are done using the books, you can turn around and sell them yourself to recoup some of your costs. Cars Chances are you have probably heard that a brand new car immediately goes down in value the minute you drive it off the dealer’s lot. That is true. You can save yourself thousands of dollars by buying a used vehicle that’s only a couple years older than a brand new model. Hand Tools Used Hand tools are easy to find. Many times, people will be changing jobs and decide they do not need the tools anymore. Alternatively, a homeowner may have purchased a unique item just for a single project. Pawnshops are the perfect place to go shopping for used hand tools. You may even score one that still has its lifetime warranty. Furniture Furnishing a home with brand new furniture can put a dent in your wallet. The good news is used furniture at prices that are a steal are easy to find. People are always moving and need to get rid of some furniture. Others decide they want to redecorate. If you do buy furniture from a stranger, be sure you look the piece over carefully to make sure it is clean, free of stains, pet dander, and even bedbugs. There’s a whole range of items you can save big on by buying used such as: These do not even touch the tip of the iceberg of the possibilities available for used items. Just remember, when shopping on sites like Craigslist, be particularly careful and use your best judgment. If something seems fishy, it could very well be. Overall, you can grab hold of high-quality items at a fraction of the cost.

Saving Big by Buying Used

View Resource Saving Big by Buying Used
When you are in the market to buy your new home, of course, you want it to be perfect. Nobody wants a house riddled with unexpected, continuous problems that will drain his or her bank account. If this is the case, your home might be considered a “money pit,” making it far from an ideal situation. Fortunately, you can take specific steps to get yourself out of a money pit mess and turn your investment back into your dream home. Realizing You are in a Money Pit Learning the signs of a money pit is the first step. Look for things such as: Mold Mold can lead to long-term health issues. If you notice a little bit of mold, chances are it is not anything too severe, but if there is a great deal of mold in the home, this could be a sign of a bigger problem. Check for mold close to water sources such as: If you see any mold on your walls, you could have it behind the wall as well. If this is the case, you will have to rip the wall out and hire a professional to come over to clean and treat the area. Check for buckling or cracked walls too, which could be signs of water damage. Outdated Wiring If you are thinking about buying an older house, you will want to check the wiring since it could be outdated. Homes today have newer and much safer wiring systems than in the past. To rewire a house, you have to get into the ceilings and behind the walls which can be very costly. Bad Plumbing Like old wiring, old plumbing can also be a problem, mainly when it involves your septic system. Apart from outdated plumbing possibly lowering water pressure, chances are the pipes over time have deteriorated. That can result in water damage behind your walls and up in your ceiling. Not to mention, you are looking at potential future problems if you ignore the septic system. Having to replace plumbing and water pipes and a new septic system can also be costly. Foundation Issues You want you home to be resting on solid footing. Inspect for cracks, gaps or buckling in foundation walls. On the main and upper levels, look for drywall cracks, particularly around doorways and in corners. Overview of Options So, you have realized your home is a money pit, now what? Here are some options you may want to consider. Assess the Damage Walk around your home and determine which areas need improvement. Even though you are likely frustrated or angry and feeling like your entire house is disintegrating right before your eyes, it is essential to stay calm, objective and to hire an experienced professional to come into your home to assess the damage. Most likely, it is not as bad as it seems. Contact a Lawyer In many states, laws may require home sellers to disclose property information like past damage or hidden problems. If you suspect the seller withheld information about the property, consult with a lawyer to see if you may have a case. Do One Repair at a Time You no doubt want your home to be perfect right now, but repairing it will take time. Trying to fix all the damage and problems all at once can become overwhelming. It may take several months to improve your home’s condition, but it is worth being patient and taking it one repair at a time. The best option, of course, is to avoid buying a money pit in the first place. However, life does not always come with such simple solutions. What you can do, however, is talk with your neighbors. If the home has had significant work done or if it had damage or enormous problems, the probability is that the previous owners have seen it. Another option is to call your insurance company and request a Comprehensive Loss Underwriting Exchange (CLUE) report. The report provides you with information on the last seven years of any claims made on the home. Just remember, you do have options if you did buy a money pit, but if you have not purchased the home yet, take advantage of the resources available to you to avoid this problem in the first place.

When Your Home is a Money Pit

View Resource When Your Home is a Money Pit
With the world’s many tornadoes, earthquakes and tsunamis, many people have been given an in-depth look at a disaster’s devastating effects. Physical safety should be the first concern, of course. However, after the emergency passes, it is time for reality to set in. In many cases, people lose their homes and personal belongings. While you cannot entirely prepare yourself against a natural disaster, you can develop your finances so you can quickly recover and get back on your feet once the emergency is over. Preparations to Take In Advance Here are some ways to prepare your finances in advance. Start and Maintain an Emergency Fund The rule of thumb is to have a minimum of up to six months of your expenses saved up as an emergency fund. While you may think of this emergency fund as money to use in the event you lose your job; you also want to ensure you have enough to live on while recovering from a natural disaster. Take Out Emergency Cash While you may typically rely on your debit or credit cards, what happens if the power goes out and you lose access to your bank account? You need to have actual cash on hand to cover you for at least a week in case you are told to evacuate. Have Adequate Homeowners Insurance You should have your home adequately insured so if there is a natural disaster you can rely on it to help you rebuild your home and your personal belongings. Get insurance now, don’t wait until a tragedy has struck when it is too late. Dealing with an Immediate Disaster Assessing your financial situation is the first step when dealing with the aftermath of an immediate disaster. Once disaster strikes, your financial situation can become fluid and will likely continually change as you are going through the recovery process. Once you are safe and can access the internet or phone, you will want to: How to Get Help Afterward After the disaster passes and it leaves you with no home or no job, there are ways of getting help. File for Unemployment If you cannot go back to work right away, apply for unemployment. The unemployment office in your town can help you, or you can use the FEMA site to file for unemployment assistance. You might have to find short-term work in another area or find a new job entirely while your community is going through the rebuilding process. Apply for FEMA Grant and Use Its Other Resources The Federal Emergency Management Agency (FEMA) provides emergency relief help to people following a natural disaster. You may be eligible for FEMA funds up to $33,000 through the Individuals and Households Program and FEMA directly. This assistance can help to repair your home to make it livable again or will pay for the expense of temporary housing. The Emergency Financial First Aid Kit (EFFAK) helps financially prepare you and offers tips for reducing the impact disasters may leave on your finances. A natural disaster can strike anywhere at any time. No matter what type of disaster it is, it can leave devastating results. While you may have emergency resources ready to go like bottled water, flashlights, extra food and batteries, you need to consider if you are prepared financially for the aftermath. The above tips can help.

Are You Prepared Financially for a Natural Disaster?

View Resource Are You Prepared Financially for a Natural Disaster?
When you are traveling to foreign countries from the United States, it is often necessary to exchange your American dollars for the local currency. When you trade currency in one form for currency in another, you will see that it is not a dollar for dollar transaction. Instead, the value of a U.S. dollar in Mexico is different from the cost of a U.S. dollar in Canada, Australia, or even France. To make matters even more interesting for travelers, currencies in the world market continuously gain and lose value, so the exchange rate is always in a state of flux. You might discover that the same dollar is worth more in pesos, pounds, or yen tomorrow than it is today. Alternatively, it could be less. It is all about the economic conditions in one country relative to the economic conditions in another. Do a little research before you head out to exchange currency. Know what the going exchange rate for the currency in question is on any given day and then look for places known for dealing fairly with travelers looking to exchange funds. Smarter Travel recommends places like the following for fair exchanges: Further, they go on to advise against tourist-filled areas like airports, train stations, and major attractions. Smarter Travel also recommends that you avoid exchange rates that appear too good to be true as they could be scams or may even involve counterfeit money. Exchange Rate Overview While some credit cards offer conversions to local currencies without fees, know that plastic is not as universally accepted outside the United States. You could find yourself in a bit of a bind if you planned to rely on your credit and debit cards to be the substantial spending method for your trip. While these features from credit card companies are convenient in certain circumstances, they may not offer quite the assistance you are hoping for as you travel the globe. Exchange Methods There are two primary methods for exchanging currency:
  1. Floating currency.

  2. Pegged currency.
The current market determines floating exchange rates. Supply and demand can have a substantial impact on how much a currency is worth on any given day with floating currencies. That is more common in countries that have economies that are mature and stable, like: Floating currency makes exchanges more efficient because the markets adjust automatically for fluctuations in value. If you are traveling to countries or regions where the currency is less stable, you will probably encounter a pegged currency system. That is an attempt by the government to prevent things like runaway inflation. You will likely only see this type of exchange rates in third world countries and other locations with emerging economies. One suggestion in this situation is just to convert what you need in these currencies during your time in that country. Best Practices for Exchanging Currency USA Today has an excellent suggestion: convert at least some of your money to local currencies before you travel rather than after reaching your destination. Many of the more popular tourist locations charge higher exchange rates. Another bit of advice to consider is to visit banks and ATMs for exchanges as they often have lower rates. You should also pay close attention to surcharges various facilities charge for converting currency. Some add a flat fee and others charge a percentage. If you are paying a hefty flat fee, it is worth considering the conversion of a significant amount of currency in a single transaction, rather than making multiple smaller exchanges. One of the biggest pieces of advice to offer when it comes to exchange rates, though, is that you should make sure you know the policies of your credit card for foreign currency transactions. Most credit cards are very happy to offer them but may charge fees you are not aware of for doing so. Make sure you read the fine print and know your company’s policy when it comes to foreign currency purchases. Traveling the world and visiting exotic destinations can be very exciting. If you do not pay attention to things like exchange rates, though, you could find yourself paying much more than necessary for the privilege.

Exchange Rate Basics

View Resource Exchange Rate Basics
No matter what field you’re in, hiring a new employee can be a busy time for your company. While managing all the necessary orientation tasks and administrative paperwork, it’s important to also remember the steps you need to take with your bank to get your new hire fully onboard. If your new employee is going to have access to any of your business’ bank accounts, the first thing to do is notify the bank so his or her name and other basic information can be added to these accounts. Next, you will want to go into your Business Online Banking account and add your employee as a new account user. If he or she is a “beneficial owner” on any account, the bank will be required to ask you for certain identifying information, like name, date of birth and social security number. We may also ask for a valid I.D. such as a driver’s license or passport. This is part of a new rule for all financial institutions enacted in May 2018 as part of the Bank Secrecy Act and is intended to assist the government and law enforcement in the ongoing fight against money laundering and the financing of terrorism. Any signature cards associated with your company’s accounts will also need to be updated with your new employee’s signature. Similarly, any accounts that require a token for secure log in should be updated at this time. Remember, if your company has multiple accounts (such as Business Checking, Business Savings and Business Certificates of Deposit), you will need to update each of them with the required information. If you have any questions, please don’t hesitate to contact your local branch, business banker or our call center.

Have a new employee? Take these steps with your bank to get them on board.

View Resource Have a new employee? Take these steps with your bank to get them on board.
When an employee exits your company, one of the most important things to do is make sure that his or her name is properly removed from any bank accounts they had access to as an employee. A good first step is to have one of the other signers on any relevant accounts notify the bank immediately that the employee is no longer with your company. You will also want to make sure that any security tokens for the accounts your former employee had access to have been disconnected. If the employee had access to Business Online Banking, log in and delete them as a user. If they were an Administrator on any accounts, be sure to establish new Administrators where needed. Next, you will want to update any signature cards the employee’s name was on. Remember, all of the signers on your company’s accounts will need to sign new signature cards at this time. They may also have to update the signature cards a second time if a new employee is hired and needs to be added to any accounts. Finally, don’t forget to delete your former employee from all additional Business Banking services that are included with your accounts, such as Online Bill Pay or a business debit card, for example. And remember, you can always contact your local branch, business banker or our call center if you have any questions.

Steps to take with your bank when an employee leaves your company.

View Resource Steps to take with your bank when an employee leaves your company.
The number of companies offering their employees a Health Savings Account (HSA) continues to grow. With plenty of advantages for both employers and employees, implementing an HSA – if your company doesn’t already have one – can be a great idea. An HSA is a personal health care account that works with a qualified health plan. There are tax advantages for both the company and its employees, and typically both will save money on monthly health insurance costs as well. One area where your company can save is federal income tax. You can take a federal deduction for any contributions you make to your employees’ HSAs. This is a win-win for both employer and employee, since the contributions you make on their behalf help make an HSA an attractive benefit in the eyes of your employees. In fact, offering an HSA as part of your benefits package can help your company attract desirable new talent and keep the valued employees you already have. Why do employees like HSAs? Let’s start with the tax savings. There are actually three areas where an HSA offers tax benefits for employees. First, employee contributions are typically exempt from federal and state taxes in most states. Second, the earnings in an HSA – including interest, dividends and capital growth – will grow tax-free. Third, any withdrawals an employee makes from an HSA to pay for qualified medical expenses are also tax-free. HSAs can also be rolled over from one year to the next, and the nest egg of money that grows in the account can be used for retirement. That’s why it can be a good idea for employees to max out their HSA contributions if at all possible. With the future of Social Security uncertain, and the market conditions that affect 401(k) plans equally unpredictable, the funds in an HSA can be a great supplement to a retirement plan. Talk to your tax advisor to see if this works with your retirement goals. Additionally, withdrawals made for qualified medical expenses after retirement remain tax-free, and may be used to pay for a few things many employees aren’t aware of, including premiums for Medicare parts A, B and D, long-term care, dental care and a number of other healthcare expenses. If you have questions or would like more information about including a Health Savings Account benefit for your employees, please don’t hesitate to contact a member of our Business Banking team today.

Reasons to choose a health savings account for your employees.

View Resource Reasons to choose a health savings account for your employees.
Identity theft continues to be one of the fastest growing crimes in the United States. In 2017, there were 16.7 million victims of identity fraud in the U.S., according to Javelin Strategy and Research. We recommend following these tips to keep your information – and your money – safe. 1. Don’t share your secrets. Don’t provide your Social Security number or account information to anyone who contacts you online or over the phone. Protect your PINs and passwords and do not share them with anyone. Use a combination of letters and numbers for your passwords and change them periodically. Do not reveal sensitive or personal information on social networking sites. 2. Shred sensitive papers. Shred receipts, banks statements and unused credit card offers before throwing them away. 3. Keep an eye out for missing mail. Fraudsters look for monthly bank or credit card statements or other mail containing your financial information. Consider enrolling in online banking to reduce the likelihood of paper statements being stolen. Also, don’t mail bills from your own mailbox with the flag up. 4. Use online banking to protect yourself. Monitor your financial accounts regularly for fraudulent transactions. Sign up for text or email alerts from your bank for certain types of transactions, such as online purchases or transactions of more than $500. 5. Monitor your credit report. Order a free copy of your credit report every four months from one of the three credit reporting agencies at annualcreditreport.com. 6. Protect your computer. Make sure the virus protection software on your computer is active and up to date. When conducting business online, make sure your browser’s padlock or key icon is active. Also look for an “s” after the “http” to be sure the website is secure. 7. Protect your mobile device. Use the passcode lock on your smartphone and other devices. This will make it more difficult for thieves to access your information if your device is lost or stolen. Before you donate, sell or trade your mobile device, be sure to wipe it using specialized software or using the manufacturer’s recommended technique. Some software allows you to wipe your device remotely if it is lost or stolen. Use caution when downloading apps, as they may contain malware and avoid opening links and attachments – especially for senders you don’t know. 8. Report any suspected fraud to your bank immediately.

8 Tips to Protect Your Identity

View Resource 8 Tips to Protect Your Identity
Your mobile device provides convenient access to your email, bank and social media accounts. Unfortunately, it can potentially provide the same convenient access for criminals. First Federal Lakewood recommends following these tips to keep your information, and your money, safe. 1. Use the passcode lock on your smartphone and other devices. This will make it more difficult for thieves to access your information if your device is lost or stolen. 2. Log out completely when you finish a mobile banking session. 3. Protect your phone from viruses and malicious software, or malware, just like you do for your computer by installing mobile security software. 4. Use caution when downloading apps. Apps can contain malicious software, worms, and viruses. Beware of apps that ask for unnecessary “permissions.” 5. Download the updates for your phone and mobile apps. 6. Avoid storing sensitive information like passwords or a Social Security number on your mobile device. 7. Tell your financial institution immediately if you change your phone number or lose your mobile device. 8. Be aware of shoulder surfers. The most basic form of information theft is observation. Be aware of your surroundings especially when you’re punching in sensitive information. 9. Wipe your mobile device before you donate, sell or trade it using specialized software or using the manufacturer’s recommended technique. Some software allows you to wipe your device remotely if it is lost or stolen. 10. Beware of mobile phishing. Avoid opening links and attachments in emails and texts, especially from senders you don’t know. And be wary of ads (not from your security provider) claiming that your device is infected. 11. Watch out for public Wi-Fi. Public connections aren’t very secure, so don’t perform banking transactions on a public network. If you need to access your account, try disabling the Wi-Fi and switching to your mobile network. 12. Report any suspected fraud to your bank immediately.

12 Ways to Protect Your Mobile Device

View Resource 12 Ways to Protect Your Mobile Device
From time to time, most people need some assistance with their finances. That need for aid might come as a result of a job loss, excessive medical bills or some form of household emergency. During those trying times, loans are often sought to help bridge the financial divide. The problem though, is that loan approvals are often more difficult to come by for some people than others. As a result, it is easy for people in a financial bind to fall prey to predatory lenders and their less than ethical practices. Learning to protect yourself from these types of lenders and their practices can help you keep your financial future on track. What is Predatory Lending? Predatory lending occurs when a lender places unfair and even abusive terms on a borrower. While there is no exact definition for the name, these are often loans designed to force borrowers to default or go deeper in debt as they try to extricate themselves from the predatory loan terms. Predatory loans allow the lender to make as much money up front as possible with little regard for the borrower’s ability to repay the debt or recover from the financial mess it creates. Predatory Lending Practices Many lending practices identify a lender as a potentially predatory lender. If your lender employs any of these tactics, you might want to consider seeking assistance elsewhere. Protecting Yourself Protecting yourself from predatory lending practices is easy once you are on the lookout for their tell-tale signs. There are a few things you can do that will help you see them coming so you can completely steer clear of them. Protecting your financial interests by avoiding predatory lenders and loans can yield a reward in the long term even if means you do not get the loan you are seeking today to provide immediate relief.

Protect Yourself from Predatory Lenders

View Resource Protect Yourself from Predatory Lenders
A great apartment is hard to find. Unfortunately, your efforts might be made more difficult by the proliferation of housing scams that fill up the Internet and compete for coverage with the many legitimate apartments that are available in the communities you seek. The tips here will help you recognize and avoid housing scams and also help you understand what to do if you have fallen victim to one of the many apartments and housing scams out there today. Apartment Hunting Challenges Most people face significant challenges when apartment hunting in unfamiliar territory. That is quite common for students making the transition to work after college as well as those transferring to new jobs in new towns. Because you are not familiar with the area, you may not understand what a good deal for an apartment is and what is too good to be true. That does not mean you cannot find great deals looking online; you need to learn a few tactics to help you recognize and avoid scams. Recognizing a Scam Some common scams involve sub-leasing, so it is best to deal only with the property owner or a verified leasing agent. Make sure the owner of the property is identified in the lease you sign and make sure you get a copy of the document. Also, make sure you see the property and take a walkthrough of it before you sign any lease. Make sure the address on the contract matches the property you toured. Read the lease well. Some property agents list properties at terrific rates, but when you read the fine print, it might turn out to be a ‘per room’ rate. Without knowing it, you might sign a lease for a four-bedroom property and find yourself living with three strangers. Never send money, especially cash. There are two reasons for this. First, there is no evidence in cash transactions that you paid the rent. Second, there is no recourse with cash if it was a scam. Many credit cards and bank accounts offer some degree of fraud protection or the ability to stop payment on checks. Once you give someone cash, it is gone for good. Other signs of a potential scammer include the following: As you can see, there can be plenty of warning signs to watch out for – once you understand what they are. If You Are a Housing Scam Victim No one relishes the idea of being scammed when you are in the process of trying to find a new apartment. The problem is that many of these scams go unreported, leaving no indication wrongdoing has been committed and creating a situation where even more people fall victim to these tactics. These are some of the things you can do: You may or may not be able to get your money back this way, but you can take comfort in knowing that you are preventing others from falling victim to these scammers in the future by shining light on what the are doing. There are plenty of great deals available in communities of all shapes and sizes if you know what to look for — And what to avoid. Avoid these online housing scams to find an apartment that will meet your needs for this next adventure in life.

Housing Scams to Avoid

View Resource Housing Scams to Avoid
As people weigh future lifestyle options, one choice frequently being evaluated by individuals facing retirement, empty nesters, and professionals on the move is whether it is more advantageous to be a homeowner or a renter. There are some distinct advantages and disadvantages to both. This article explores a few of the more common pros and cons and offers insights and advice for making the transition easier. Advantages of Renting The benefits of renting vs. buying are more meaningful than you might imagine. One of the most significant advantages is the fact that you do not have to make a long-term commitment when renting. Home mortgages are financial commitments that you can only get out of by paying back the loan. In most cases, that means finding a buyer and using the sale proceeds to retire the mortgage. With a lease agreement, you are likely never required to commit to more than one year at a time, and some offer shorter term leases than that. Other pros to renting include the following: These are great pros to keep in mind. However, renting is not all roses and sunshine. There are some considerations to explore before you dive in and make a move. Cons The decision to rent usually means that you are no longer the King or Queen of your castle. You may face some unpleasant realities as you adjust to life as the renter of a property and not the owner. Some consideration to renting to keep in mind include the following: While many of these considerations will not affect your daily life as a renter, they are worth keeping in mind and can help you make decisions about which rental spaces are the best match for your needs. Making the Transition One of the most important things to do when making the transition from a homeowner to the role of a renter is to hang up your home repair toolbelt. It is someone else’s problem now! Beyond that, you will want to take care that you can fit comfortably within the rented space. That might mean parting ways with a few precious (and more than a few not-so-precious) possessions. Look at this as an opportunity to clear out the clutter in your life and share memories with friends and family. The most important thing you can do to make the transition easier is something mental. Understand that the space you live in does not define who you are. The apartment or rental home itself is not a reflection of you. However, the way you decorate your new home can reflect who you are to those who visit. While there are some cons to renting, going from being the homeowner to being the tenant is a great way to reduce your workload, free up valuable time and money for other pursuits, and to get more out of life.

Going from Homeowner to Renter

View Resource Going from Homeowner to Renter
Vacation. It is a magical time for friends, couples, and families to relax, unwind, and connect with others rather than their favorite devices. If you are not careful, though, it can also become a time when you leave a massive hole in your budget. There are ways you can save money while on vacation, both while planning it and when on vacation. You could save even more than you might expect. Making Plans The first key to saving money while on vacation involves maintaining a focus on costs with each budget line of your travel plans. You can do this while you are planning your vacation with a few simple steps. Plan Your Meals With so many hotels and condos offering fully stocked kitchens and kitchenettes or microwaves and mini-fridges, you can save quite a bit of money on meals by eating out only once per day (if that) and preparing the remaining meals in your room. If your hotel offers free breakfast, take advantage of that as well. If dining out once daily, lunch is often the best time to splurge. Many restaurants provide reduced prices on their lunch menu. You might even have enough food left on your plate to take back to your room for a snack later in the evening. Do not forget to look for ‘early bird’ dinner specials as well. Book Your Hotel Wisely Forbes recommends going to the hotel website directly to get the best price for hotel rooms. If you are a member of a specific hotel’s loyalty program, you can save even more money. The same holds for senior discounts. How much money can you save? According to Forbes, the differences in rates could be as little as one dollar or as much as $50. Of course, do not forget to use your points to save on your travel. Also, consider going outside the box and renting from Airbnb, VRBO, HomeAway or another resource. You may even find apartments are available at much better costs than renting hotels for the duration of your vacation, while also providing you with more room to spread out and dine-in. Pack Wisely Whether you are flying or driving, the way you pack can have a significant toll on how much you spend on your vacation and how much you enjoy it. No one wants to carry around unnecessary and bulky items. Pack lightly and try to get all your supplies and clothing in one carry-on sized bag per person if possible. That will help you avoid hefty bag checking fees with the airlines. While on Vacation During your vacation, you have opportunities to save as well. The below tips can help you avoid unnecessary spending and may be instrumental in stretching your dollars, allowing you to add more activities or mementos to remind you of an extraordinary time together as a family. Bring Snacks and Water Along Make sure you pack a backpack for your outings and fill it with water and snacks. That will help you avoid hungry, cranky children (or parents) and the higher prices of similar items at convenience stores in touristy areas of town. However, be open to splurging for special treats unique to a particular locale, such as beignets in New Orleans, clam chowder at Fisherman’s Wharf in San Francisco, or homemade key lime pie in Florida. Seek out Free Entertainment and Attractions Many museums offer reduced priced admissions on some days while others are entirely free. Same goes for National Parks. These may not have all the frills you will find at costlier attractions like branded theme parks, but spending some of your time at free attractions allows you to have budget left for the pricier attractions you have highlighted for a visit. Other free or low-cost attractions to consider include: Check out local calendars for the city or area you are visiting to learn about community events, activities, and attractions that are free on given days. Also look for local movie houses that offer second-run movies at deep discounts or local theatre companies that can put on a good show. That gives your family something to do if your other plans for the day are rained out. Buy City Tourism Cards These cards give you access to many of the top attractions in the city for free or at steep discounts. Many even offer free public transportation for the duration of your stay negating the need for car rentals and associated parking fees. In addition to providing free access to some of the city’s top attractions, they also offer discounts on restaurants and shops. Look for Discounts and Deals Online Browsing the Internet can help you locate great deals on popular tourist attractions in various cities across the country. That is not the only way to save, however. Consider also looking at chain restaurants and see if they offer discounts for new email subscribers or via downloadable apps. These discounts may be useful for free appetizers, reduced meal prices, buy one get one free or half off admission to attractions, and more. Takeaways Employing a few key savings pointers before and during your vacation can help you get more mileage and fun from your vacation while helping you stay within your budget. These tips will help you stretch your vacation dollars without sacrificing fun and festivities with your family.

Saving Money While on Vacation

View Resource Saving Money While on Vacation
For the many people who would not otherwise be able to afford college, financial aid makes the dream of a continued education possible . Unfortunately, some myths exist around financial aid that causes many people to believe that it is not an option for them. Moving past these misconceptions may allow you to obtain the financial assistance you are eligible for so you can advance your dream of earning a college degree. Financial Aid Myths Below are some of the financial aid myths you will have to look beyond to take advantage of the financial aid programs available to you.
  1. My Parents Make Too Much Money for Me to Qualify
    Money is not the only factor taken into consideration for financial aid awards. It also depends on the size of your family and other factors. Examples of additional factors include such things as state funding levels, college endowment levels, your grades, and family financial assets.
    Most schools require you to complete FAFSA forms before you are eligible for scholarship awards. Scholarship funds are also considered part of financial aid and may be awarded to people for many of the following things, and more:
    • Athletic performance

    • Academic performance

    • SAT or ACT scores

    • Musical talent (voice, instrumental, etc.)

    • Organizational participation

    • Military service

    • Community service
    Each of these types of scholarships represents a form of financial aid that can assist you in obtaining a college degree. Finally, the cost of attending your college of choice plays a significant role in eligibility. Even if your parents make more than enough for you to attend a small community college, you may need assistance in paying the costs of attending a major university or private college.
  2. Only Students with Perfect GPAs Get Financial Aid
    The purpose of financial aid is to assist students from all backgrounds in getting a college education. Not every student gets perfect scores on every test. Financial aid, at least on the federal level, is about a financial need and not about historical academic performance. However, once you receive financial aid, you must maintain a certain GPA to continue receiving it.
  3. Only Minority Students Receive Financial Aid
    There are no racial or ethnic requirements for receiving federal financial aid for grants, loans, or work-study programs. Some scholarships may be available for people of certain races or ethnicities, but overall access to financial aid is available to people of all races. Also, being a minority does not guarantee students access to financial aid either. While some scholarships limit participation to certain racial or ethnic groups, they do not ensure that all students within those groups will receive a scholarship or grant. Most have requirements other than race, such as pursuing specific academic majors, keeping a certain GPA, participating in community service, or other economic factors.
  4. All Financial Aid Packages are the Same
    This is simply not true. When you fill out the FAFSA form, make sure you send it to all of the colleges you are considering. These forms are used to help determine eligibility for a variety of financial aid resources, including:
    • Grants

    • Loans

    • Work-study programs

    • Institutional scholarships
    Since different colleges and universities cost different amounts to attend and offer different options for work-study programs and institutional scholarships, you may discover that your financial aid package goes further at one college than the others you are considering. You also might find that some colleges and universities offer more generous financial aid packages based on the size of their endowment or available funds, or their desire to recruit students from a broader geographic area or varied demographic background.
  5. Financial Aid is an All or Nothing Proposition
    The truth is that many families qualify for some financial aid, but not enough to cover all the costs of attending college. The purpose is to assist students in getting their degrees. Your aid package will probably not cover the entire cost of attending college.
    Moreover, you may qualify for more money during your freshman year than in subsequent years (based on eligibility factors, costs of attendance, and availability of funds). However, loans are almost always available as an option, however unattractive they may be.
  6. I Didn’t Qualify Last Year, So I Won’t Qualify This Year
    The truth is that financial aid requirements, limits, and available funds are constantly changing. Also, specific schools and universities add new scholarships, grants, and programs all the time. The fact that you did not qualify last year does not necessarily mean you will not qualify in the future.
    Students who did qualify for funds in the previous year, by the same token, are not guaranteed funds in future years. The best course of action is to fill out the forms as early in the year as possible and do so each year you are in college. One thing is certain; you will not receive financial aid if you do not fill out the form.
Moving past these myths can help you take advantage of the financial aid resources and programs that are available to you, including scholarships, grants, loans, work-study programs and more. The first step, though, is filling out the FAFSA form.

Misconceptions Surrounding Financial Aid

View Resource Misconceptions Surrounding Financial Aid
According to the investment firm Fidelity, the average family is on track to save only 29 percent of the total amount their child will need to pay for a college education by the time he or she graduates from high school. Part of the problem is that the average family has no idea how much they should be saving for their child’s college education. That is why Fidelity coined the “2K Rule of Thumb” for college savings. It helps parents better understand how much they should be saving at various ages of their child’s life. What is the “2K” Rule? The 2K rule focuses only on the amount of savings parents need to accrue to meet the goal of covering roughly half of annual college costs at a four-year public college (in-state). The rule is simple. Multiply your child’s age by $2,000. That tells you how much you should have saved already at that specific age to be on track to cover 50 percent of college costs. For instance, if your child is seven years old, you would multiply $2,000 by seven and come up with $14,000. That is not the total you will need to have saved to pay for college, but the total you will need to have saved to be on track at that specific age. If you have more than that, you are in good standing. If you have less, you might want to save a little extra over the next few years to catch up. By the time your child is 18, you should have at least $36,000 saved to assist with college expenses. How to Use It To get more mileage from your money, the 2K rule needs to be only one of the methods you use to help your child save for college. Remember the amount of money you have invested in this plan may affect the needs-based financial aid your child can receive. It will not, however, reduce your child’s access to merit-based grants and scholarships for grades, academic accomplishments or special skills, for example. When used in combination with the 2K rule for saving, financial aid can take a healthy bite out of the costs of college. The more methods you use to help pay for the costs of college, the more helpful the 2k Rule for saving becomes. 529 Plan Requirement For the “2K Rule” to work to maximum benefit, you will need to invest the funds in a state-sponsored 529 savings plan. 529 plans allow your savings to grow tax-free, so long as at withdrawal, they are used to pay for qualified education expenses. If you leave it parked in a savings account, the interest you earn on the principal will be subject to federal tax. The main thing to remember, when it comes to investing in your child’s education, is that you must do so early and consistently to enjoy solid returns. CNBC reports that starting a savings plan early is the number one thing parents must do if they want to achieve their college savings goals. The earlier you begin to save, the more you will benefit from compounding and the earning of interest. That means you will have to put less money in the account each month to meet your goal than if you put in $36,000 when your child turns 18. The 2k rule helps you accomplish your savings goals by showing you where you are at any given point in comparison to where you should be. You will also be able to track how long you have to reach your ultimate goal of being financially prepared to pay for a solid college education.

The “2K Rule” for College Savings

View Resource The “2K Rule” for College Savings
Working your way through college can provide precious work experience and valuable life lessons while teaching you the importance of budgeting your time, money, and more. However, it also presents its share of challenges along the way. Financial Obstacles College today is an investment. Depending on the college you wish to attend, the investment can easily exceed that of a starter home, which is why so many students finish their college experience deeply in debt. Working your way through college can help you reduce the debt load you leave college with, putting you in a better position to overcome common financial obstacles that other graduates face in trying to repay their college loans. However, working your way through college is only beneficial if you do it in combination with other efforts to reduce your costs of attending college at the same time. Reducing the Cost of College There are several moves you can make to reduce the overall costs of attending college as you work your way through school, including the following: The more things you do to reduce your costs when attending college, the higher your odds of eliminating the need to take on student loan debt, which may prove to be crippling if you aren’t able to immediately secure lucrative employment upon graduation. Minimizing Student Loan Debt Following the steps above for reducing your costs of attending college can go a long way toward minimizing student loan debt. So can working and saving the bulk of your income to put toward tuition. The more money you pay toward tuition today, without taking out student loans, the less you pay for your education overall. However, that’s not the only reason you should avoid or minimize student loans whenever possible. For almost every other type of loan, you will have the option of declaring bankruptcy or seeking relief from the burden of the debt. It works that way for homes, vehicles, and even consumer credit card debt. There is no option to discharge student loan debt. Falling behind in student loan payments will harm your credit history and can do considerable damage to your ability to purchase homes and vehicles and even secure employment later in life. Working your way through college can be a brilliant path to success. That is especially true if you find the right employment during your educational journey. Of course, using the income from your college job, in combination with other efforts to reduce expenses, can help you avoid unnecessary student loan debt, allowing you to begin your career unencumbered by debt.

The Challenge of Working Your Way Through College

View Resource The Challenge of Working Your Way Through College
Home construction loans provide families and individuals with the ability to finance new home construction projects. The loan term is usually short, typically lasting one year or less in most cases, and once the project is complete, the loan is converted or refinanced with a traditional mortgage. Loan Basics Construction loans typically cover both the cost of the property and the construction costs of the house. These loans can often be complex and require more direct oversight and involvement from lenders than traditional home loans. Expect to provide lenders with a ton of documentation and timetables, including the following: In some cases, the lender may require additional documentation about the building process, such as the names of the builder or contractors performing the work. In most cases, lenders will release funds in stages and only after checking on the progress to verify the completion of a construction phase. Loan funds are used to pay contractors involved in that phase. Throughout the process, it is good to remember that lenders are partnering with you in the construction process and have a financial stake in its outcome. During the construction phase of the project, borrowers will typically make interest-only payments on the loan. The repayment of the loan usually takes place when construction is complete, and a traditional mortgage replaces the construction loan. Different Loan Types Essentially there are two different types of home construction loans: Construction-to-permanent loans are often the most desirable for people who intend to occupy their homes upon the completion of construction. That is because they allow you to combine the construction loan with the standard mortgage loan. It means you are not required to refinance your mortgage at a later date. With this type of loan, you have the benefit of locking in a low-interest rate from the start. Once the building is complete, the lender converts it into a traditional mortgage at the locked-in interest rate. With this mortgage, you have the option of choosing a fixed rate or ARM (adjustable rate mortgage) and may choose between a 15- or 30-year term. You will also likely be required to put down a 20-percent or more down payment. Stand-alone construction loans are outstanding choices for people who are building homes with the intention of reselling afterward or who have limited funds to use as a down payment. This loan requires a smaller down payment and does not lock in low mortgage interest rates, which means that if you do intend to live in the home post-construction, you will have to obtain a mortgage independently. Another downside with this type of loan is that you must pay closing costs (and the associated fees) twice: first, on the closing of the initial stand-alone construction loan; second, when you secure the mortgage for the home. Loan Requirements It is more difficult to qualify for a construction loan than a traditional loan because the completed home is not available to secure the loan. For this reason, you should expect to do the following: Understanding the basics about home construction loans can help you to choose the loan that meets your needs today and in the future. Use the information here to help you make wise buying choices when exploring your options for a home construction loan.

How Home Construction Loans Work

View Resource How Home Construction Loans Work
Credit cards are outstanding financial tools to have on hand for life’s little emergencies. What you may not know, though, is that some items can be considered ‘smart purchases’ to make on your credit card, even if you have the cash to pay upfront. Below you will find some smart buys to make with your credit cards as well as unwise credit card purchases you should avoid at all costs. Good Uses of Credit Cards Using credit cards for certain purchases provides a few unexpected perks and benefits well worth considering, especially when it comes to protecting you, the consumer. Appliances and Electronics With many credit card companies offering free extended warranties for items like washing machines, refrigerators, and televisions purchased with credit cards, it is a no-brainer to make these purchases with your credit card. That is especially true if you can pay the balance in full at the end of the month. You are getting an extended warranty for free without paying interest if you pay the balance in full. Recurring Monthly Bills That is, of course, assuming you are going to pay the balance in full each month. However, paying recurring bills with your credit card allows you to shift all the smaller payments that come at different times each month to one single payment you pay once a month. It is a great way to ease the burden of paying bills, by making it a single transaction rather than 15 or 16 different ones. Plus, if you earn cash back rewards on your cards, you are getting a small reward for your efforts. Travel Plans Vacation and business travel expenses can add up quickly. However, if you use your credit cards to book your hotels and travel arrangements, you get the added benefit of a few key ingredients that add peace of mind, including things like: While these benefits may vary somewhat from one card issuer to the next, many credit card providers offer them to remain competitive. Additionally, most credit cards provide substantial rewards for travel plans booked through them in the form of free or discounted travel, free upgrades, and cash back. Items to Avoid While the items listed above are excellent choices to buy with your credit card, there are also things you want to avoid buying with your credit card whenever possible. Primarily because the costs of purchasing these items with credit cards, once you count the interest, are prohibitive, like those listed below. Household Bills It is one thing to put smaller recurring charges you can pay off in a month on your credit card. If you can do that, that is great. However, this only works if you can repay the full balance each month. Otherwise, it becomes a growing debt you will never easily escape thanks to interest. Student Loan Repayments There are less expensive options than credit cards to try to get your student loan debt under control. Look to income-based repayment plans, loan deferrals, and other options before resorting to using credit cards to repay the debt. Shopping Sprees Retail therapy may provide a momentary boost to your mood. However, when the bill comes due it can become a bitter pill to swallow. Use cash for those mood lightening shopping sprees and leave your plastic at home. Takeaways Credit cards have their uses. They can be vital tools in your long-term financial planning, but only if you use them responsibly. Following these tips can help.

Smart Purchases to Make on Credit

View Resource Smart Purchases to Make on Credit
Want to qualify for the lowest interest rates when applying for auto, mortgage or personal loans? Then you’ll need a top credit score. Lenders today rely heavily on your three-digit credit score to determine if you qualify for a loan and at what interest rates. In general, lenders today reserve their lowest rates for those borrowers have a credit score of 740 or higher on the popular FICO credit-scoring system. The good news is that earning a high credit score is not a complicated task. It just takes some common sense. To build the kind of credit score that will land you the lowest interest rates most experts recommend following these ‘best practices’. Pay your bills on time: Nothing is more important to building a solid credit score than is paying your bills on time. Every time you miss a credit card payment or make your auto loan payment ten days late, your credit score takes a hit. With enough of these hits, your score will quickly fall out of the “good” range, and you’ll be stuck paying higher interest rates when you qualify for a loan. Do not runup credit card debt: Having too much credit card debt can also damage your credit score. Lenders look at consumers burdened with high credit card debt and see risky borrowers. The theory is that these borrowers are already paying a significant amount of money each month to make their credit card payments. Lenders see them as more likely to struggle to make their other payments, too, including mortgage and car loan payments. If you want to provide a boost to your credit score, begin paying down your credit card debt, and don’t run up new charges. Study your credit report: It is important, too, to review your credit report on a regular basis. You can order a free copy of each of your three credit reports — compiled by the credit bureaus Experian, Equifax and TransUnion — once a year from the site, AnnualCreditReport.com. Don’t be fooled, though, into ordering credit reports from other similar websites. Most of these sites — including those with “free” in their names — require consumers to sign up for trials of credit-monitoring services. If you fail to cancel these services, you will be hit with a monthly fee. Once you have your report, study it carefully. Your reports will list your outstanding revolving debt and any missed or late payments you have made. It will also list your open credit card accounts. Look for any mistakes. Then correct them in writing. An error on your credit report can cause severe damage to your credit score. Be a smart consumer: The only way to improve your credit score, once you’ve corrected any errors on your credit reports, is to act as a smart consumer. This means paying your bills on time and cutting down on your credit card debt. Don’t sign up for any service that promises to improve your credit score overnight. These services are often scams, and they have no secret formulas for improving your three-digit score.

Building a Credit Reputation

View Resource Building a Credit Reputation
Many people look at side hustles as an opportunity to earn some cash on the side to help them with short-term expenses or to fund a particular purchase. However, did you know that you can also use these side hustles to help you pay off your debt? It is true. Side Hustle Opportunities It is easier than you realize to earn extra cash on the side. These are some of the side hustle opportunities you might want to take advantage of to help you reach your goals. Freelancing Turn your skills into money by becoming a freelancer in your industry. The Internet has made it possible for many people to earn money in ways they never imagined a decade or so in the past. From computer programming to writing to transcribing to graphic design and all points in between there are abundant opportunities out there to earn extra cash online without leaving your day job behind. In fact, many job boards exist to help people like you find work, including: The bottom line is that there are many opportunities to use your skills to earn extra cash in your spare time. Just think how quickly you can pay down your debt with five to ten hours of income each week dedicated to that task. Even finding work at $10 per hour can help you put hundreds of dollars per month towards your outstanding credit card balance or student loan debt. Also remember that the faster you pay down that debt, the less you will pay in interest costs over the loan term. Renting or Selling Items Whether you are selling items on eBay, crafting items to sell on Etsy, or renting your home or car through various programs, you can earn a substantial amount of income each month that way. That is especially true if you have a vacation home you only use a few weekends out of the year, or a spare garage apartment collecting dust. Do not forget about all the items you have purchased over the years that quickly lost their appeal or did not live up to expectations. It is time to clear out that clutter and turn it into cash. You could even begin to frequent garage sales and thrift stores in your community to find bargains you can transform into cash cows through online auctions and sales. Ride Share and/or Delivery Services Thanks to companies like Uber and Lyft, ride sharing is becoming commonplace. They offer outstanding services to large and small communities. Did you know, though, that they also represent substantial earning opportunities? According to USA Today, Uber drivers make an average of $364 month, and Lyft drivers earn, on average, $377 per month. For some people, that’s a car payment. Just remember to make sure your insurance company is on board for this change. You can supplement that side hustle income by piggybacking your time behind the wheel making deliveries. There are plenty of programs that offer you money to deliver a variety of products. Some you may have heard of before: As you can see, there are tons of opportunities to earn additional cash for enterprising spirits. Tutoring and Teaching Finally, turn your knowledge into money by working with many of the tutoring services, either available online or in your local community. They offer a wide range of part-time jobs teaching math, science, and reading to students of all ages. The Internet also can extend these opportunities by making it possible to work teaching English to students from around the world. Side Hustle Tips Now that you know what kinds of jobs you can do to earn extra cash to pay off your debt, it is time for a few tips to make that money work harder for you. Keep these tips in mind to pay off your debts even faster. Takeaways Side hustles can be a great way to pay off your debts if you have a plan and stick to it. The ideas and tips above can pave the way for you to find new side gigs that will keep your debt under control.

Use a Side Hustle to Pay Off Debt

View Resource Use a Side Hustle to Pay Off Debt
Sometimes, when it comes to your budget, it can be too easy to overlook the small “money leaks” that negatively impact your finances. Many people do not even realize the amount of money they are spending. You might do your best to avoid buying extravagant things. For example: However, even though you do all these things, you still wonder where all your money is going. A significant challenge for staying on top of your finances is identifying and fixing your money leaks. What are Money Leaks? Money leaks occur when you cannot seem to figure out what it was you bought with the money you spent. Even at the end of the month, when you review your credit cards and bank statements, it is not apparent where your money went. Those are “money leaks.” For instance, one night you took $50 out of the ATM to use for dining out. Then, at the end of the month as you are looking at your finances, you see the ATM withdrawal transaction on your bank statement, but you are completely puzzled as to why you pulled the money out. Alternatively, you buy something online, but when you get your credit card statement and see the purchase, you do not know what the charge is for because there is a vague description of the merchandise you purchased. Money leaks can kill your financial position and usually leave you with less money than you expected to have at the end of the month. They also tend to cause problems with your budget and are often a huge reason why many people cannot seem to save money. How to Find Them By researching, you will likely eventually figure out where the money leaks are coming from. However, for many people, the problem is they do not remember even spending the money. It just seemed to leak right out of their account and was spent on something so frivolous, that they do not recognize the purchase even several weeks later. Create and Refer to Your Written Spending Plan You can get a handle on money leaks and fix the ones you spot by taking more control of your money. To do this, you need to sit down and write out a spending plan each month and stick to it. When you do this, it should be easier to find the leaks so you can fix them and avoid them later on, which keeps you from spending more than you make. Save and Refer to Your Receipts Start saving your receipts (an old shoebox will work). Every time you purchase something, toss the slip in that shoebox. If you receive receipts where what you bought is unclear, write a purchase description on the back of the piece of paper, so you will know what it is when you refer to it later on. So, each time you go to the store: At the end of every month, take the receipts out of the shoebox and go through them. Determine which of them are necessary and which are not. As you do this each month, you will begin to see patterns in your collected receipts. Chances are, you will find the non-important ones are the source of where the money leaks are occurring. You may notice your money leaks are coming from a particular store like the corner convenience store, for example. Finding and knowing the patterns can help you keep your guard up. How to Fix Them Finding your money leaks is just one side of the equation. You still need to get rid of them. You do this by actively taking control to prevent them. Put a Limit on your “Free Spending” Money Give yourself a fixed monthly amount of money to spend freely. Then, stick to that amount. Do not waste any additional money on unnecessary purchases if you have reached your monthly limit unless it is a definite necessity. If it is not, once your free spending money is gone, you cannot touch it again until the next month. Avoid the “Money Leak” Places As mentioned earlier, you may find your money leaks are taking place at a specific store. Naturally, avoid the locations where your money leaks are taking place. Make your budget a priority. Cut out the expenses you do not need and create space in your budget for the more significant spending that matters to you.

Are There Leaks in Your Finances?

View Resource Are There Leaks in Your Finances?

The song says it’s the most wonderful time of the year, but if money is tight for you, Christmas can make it very difficult to avoid overspending. Although it may seem like a good idea to splurge on that perfect gift, you will end up paying for it later (literally) if you put it on your credit card. Rather than going into credit card debt this year, make a plan and stick to it so you stay within your budget and avoid the stress that comes with debt.

How to Keep Your Christmas Spending Under Control

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Don’t Let the Holidays Bust Your Budget

View Resource Don’t Let the Holidays Bust Your Budget
The holiday season can be one of the most difficult times to stay on a budget. You will probably be buying new outfits for parties, lots of gifts for friends and family, and spending more on your gas and electric bills to heat your home. When money is tight, don’t spend too much on a fancy holiday meal that will be eaten in just an hour or two. Start by setting a budget of the amount you can afford to spend, and then turn to some creative ideas to stretch your budget and end up with a delicious meal for family and friends. Saving Money When Preparing a Holiday Dinner Keeping things simple, sharing the cost and remembering to not waste the leftovers will be keys to keeping your budget intact through the holidays.

Preparing Holiday Meals on a Budget

View Resource Preparing Holiday Meals on a Budget
Having a child is one of the most exciting times of your life, but it can also be one of the most expensive. Previously, a 2017 U.S. Department of Agriculture study put the average cost of raising a child born in 2015 to 18 years of age at just under $233,610. However, a more recent re-evaluation of the study by Bookings Institution, an economic think tank, estimated that the average cost of raising a child born in 2015 up to the age of 17 will roughly spend $310,605. The re-evaluation adjusted for current inflation trends. You need to prepare financially before becoming a parent, and that means knowing and budgeting for the significant costs you are going to face. Between the last few months of prenatal care and your baby’s first year of life, you could end up paying thousands of dollars in medical bills. Take a close look at your health insurance policy to understand what it covers and what you will need to pay. If you have an HMO plan, you will likely only need to cover the co-pay for each office visit and the more significant co-pay for a hospital stay. Under an indemnity plan, you will probably be stuck paying the full deductible or potentially even the out-of-pocket maximum for the year. Once you know how much your medical costs will be, start saving. Putting pre-tax dollars into a flexible spending account or health savings account through your employer will shield that money from being taxed. Research how what maternity and parental benefits are available to you when you take time off from work after having your baby. Some companies generously offer maternity leave with full pay for a specific number of weeks. Others just put you on short-term disability, which typically pays 60% to 70% of your regular wage, for six to eight weeks. You also may be eligible for up to 12 weeks of unpaid leave under the Family Medical Leave Act. In addition to the loss of income immediately after having your baby, consider the impact on your long-term income. If one parent plans to stay home with the child, this will significantly affect your household income going forward. Paying for child care can be a considerable strain on your budget, but it will probably be necessary if you both decide to keep working. Start looking for childcare before your baby arrives because the best options may fill up quickly. Costs can vary based on what type of service you’re looking for. According to the Cost of Care 2023 Survey, it can cost $229 per week to use a family care center for your infant child or $284 per week for a daycare. In addition, it can cost up to $736 per week if you’re looking to use a private nanny in your home. Still, you can soften the blow through dependent care tax credits or a flexible spending account that can shelter the money from income taxes. Lastly, don’t forget about the added expense of insurance. You will need to add your child to your health insurance plan, so compare the cost of an additional dependent with each of your employer-sponsored plans. If you do not have life insurance policies yet, now is the time to get them for both of you. Term insurance policies can cost less than $1 per day when you are young and healthy, and they provide peace of mind and financial security.

Becoming a Parent

View Resource Becoming a Parent
If you are getting ready to sell your home, you have most likely already given it a great deal of thought. While you may think you know the basics, such as keeping any personal items out of sight and removing clutter, there is a lot more to selling your home than you may have thought initially. Potential buyers can fall in or out of love with your house for a variety of reasons. Here we tell you some essential strategies to getting your home ready to sell — and make it irresistible to everyone who comes to view it. Get the Most for Your Home When putting your home on the market, perhaps the most crucial aspect is the pricing. You need to find out how much your home is worth, and then take around 15 or 20 percent off that price. This might seem counterintuitive, yet, when you do this, you will likely be inundated with buyers with multiple bids who will bid way over what your house is worth, says HGTV. Of course, this home selling tactic takes courage and a tolerance for risk, however, it is a known strategy to sell your home for the best price possible in today’s market. Tips for Maximizing Your Home’s Appeal There are many steps you can take to make your house as appealing as possible to potential buyers. Some tips you may not have thought of include: Disassociate Yourself with Your Home It may sound obvious, but it is surprising how many people do not do these: De-personalize Before you show your house, ensure that you pack up all your knick-knacks, family heirlooms, and photos. When a buyer enters your home and sees personal effects, they immediately see the space as exclusively yours, rather than a place that they will want to live. De-clutter Take an objective look at your house and identify any items that can be either donated, sold, or discarded. Also: Rearrange closets and kitchen cabinets Organize all of your closets and cabinets to impress even the most observant of buyers. Make minor repairs You may not even have realized that your home needs a little TLC, so go around with a friend and spot and fix anything that needs fixing, such as leaky faucets, squeaky doors, or loose knobs. Rent a storage unit If you have clutter in your home, consider renting a storage unit. Storing away bulky items of furniture will open up your house, making it far more attractive to potential buyers. Clearing away knick-knacks and excess furniture will also make your home photos more appealing. Clean your home Spring clean your home from top to bottom so that buyers will find your space clean, sweet smelling, and attractive. Improve the outdoor space Ensure that your yard is well-maintained and attractive. Check all exterior window and door frames, and paint any that look past their prime. Also, make sure your house number is visible from the road. Lighten and brighten The lighter and brighter your house looks, the more appealing it will be to buyers. Be sure to let as much natural light in as possible, and consider repainting white trim and other walls to make them stand out and look fresh. Have a Good Showing When the time comes to show your house, there are a few tips you should remember: Tens of millions of homes sell each year. Yours can be next. Selling your house can be difficult emotionally as you have spent a great deal of time in your home and have made countless memories there. However, through following the above hints and tips, you can ensure you will show your house off in the most favorable light, as well as get the best price possible.

Getting Your Home Ready to Sell

View Resource Getting Your Home Ready to Sell
You can start collecting Social Security payments once you hit the age of 62. However, is it wise to do so? That depends on your situation. For most people, though, it makes more financial sense to wait at least until the age of 66. That is the age when people born from 1943 to 1954 first qualify to receive full Social Security benefits. That full retirement age increases for people born after 1954, hitting a maximum of 67 for anyone born after 1960 and later. Wondering when you should begin collecting Social Security? You will have to take a long look at your health and your finances to make the right decision. Retiring early It can be tempting to retire early and begin collecting Social Security benefits before you hit the age of 66. The thought goes like this: I have been paying money into Social Security my whole life. Why shouldn’t I start collecting it as soon as possible? You can start collecting Social Security once you hit the age of 62. However, there’s a financial penalty that comes with collecting at such an early age: You will receive less money each month than you would have had you waited until you turned 66. The Social Security Administration website provides a Social Security benefits calculator that tells you how much your monthly benefits will fall if you begin collecting payments before full retirement age. For instance, primary wage earners who retire at 62 will receive just 75 percent of their full benefits. Spouses of that wage earner will receive only 35 percent of their total benefits if they retire at age 62. As an example, if you are scheduled to receive $1,000 a month in Social Security benefits at full retirement age, you will receive just $750 a month if you start collecting at age 62 instead. That might not seem like a big difference: It is only $250 less each month, after all. However, over a year that $250 a month comes out to $3,000 that you passed up. Moreover, over a retirement where it is not unusual to expect to live to 87? If you retire at age 62 and begin collecting Social Security then, you would lose a total of $75,000 by not waiting until age 66 to collect Social Security. Suddenly, that $250 a month seems like a bigger deal, right? The benefits of retiring later Collecting Social Security before full retirement age comes at a financial cost. The flip side is that waiting to collect until after that age comes with a monetary benefit. You will receive more money each month every year you put off collecting Social Security, up until you hit the age of 70. If you are scheduled to receive $1,000 a month at the age of 66, you will receive $1,320 a month if you wait until age 70 to receive your Social Security payments. That is a difference of $320 a month or $3,840 a year. The numbers, then, make retiring later sound like the smartest choice. However, remember, every situation is different. Extenuating factors There is one critical extenuating factor in this equation: Your health. If you expect to live a long life after retirement, then it makes financial sense to begin collecting Social Security payments when you are older. However, what if you are already suffering from health problems and don’t expect to live much past 70? Then it might make financial sense to start collecting your Social Security payments as early as possible. The problem with this? We cannot predict how long we will live. We can only make predictions based on our present conditions. Health can change rapidly, for both the better or, the worse. Age 78 is considered the break-even point when it comes to Social Security benefits. If you live past that age, waiting until full retirement age to collect payments will pay off. If you do not make it that far? You would have been better off collecting your payments earlier. Again, the trick lies in predicting how long you will live. According to the Social Security Administration, men who turn 65 in 2018 can expect to live for another 19.3 years, putting them at more than 84 at death. Women who turn 65 in 2019 can expect to live another 21.6 years. In both cases, these average people would have lived past the break-even point of 78. The Social Security Administration recommends taking a look at your family history. Did your parents, grandparents and other relatives live into their 80s? If they did, and if you are not suffering from any significant medical problems, you might expect to hit your 80s, too. If so, waiting to collect Social Security payments might be the right move. There are other factors that could influence your decision. For instance, if you quit work early will you have to seek private health insurance? For the most part, you will not be covered by Medicare until you hit age 65. The cost of private insurance until you reach that age might outweigh the financial benefits of receiving your Social Security payments early. Are you struggling with credit card and other types of debt? You do not want to enter your retirement years saddled with large amounts of debt. If waiting to collect Social Security will cause you to add to your consumer debt, taking out benefits sooner might make more financial sense. As you can see, it is not easy deciding when to begin collecting your Social Security benefits. Your best bet is to meet with a certified financial planner who can look at your finances and help you make the right decision for yourself and your spouse. That is not a choice to rush into; you will be living with the consequences of your decision, both good and bad, throughout the entirety of your retirement years.

When Should I Start Collecting Social Security?

View Resource When Should I Start Collecting Social Security?
Do you look forward to receiving a big income tax refund every year? If so, you are taking the wrong approach with tax withholding. You do not want that big of a return. That merely shows that the federal government took too much out of your paycheck every pay period. Think about it: The government was able to hold onto your money throughout the year, interest-free. Sure, you will get a refund at the end of the year. However, if the government had not withheld so much of your money, your regular paychecks would have been more significant. You, then, would have had the opportunity to use that money during the year, whether you needed it to pay down your credit card debt or invest in the stock market. The right goal? You would love to end the year without owing the federal government any money on your income taxes or having the government owe you any money through a refund. That, of course, rarely happens. However, you can get closer to this ideal by making sure that the federal government takes the right amount of money from your paycheck. Withholding The IRS withholds a portion of each of your paychecks. However, you can change the amount of these withholdings quickly, just by filing a revised W-4 form with your employer. The W-4 is the IRS form that employees fill out when they start working for a new company. By entering essential information into this form, you tell the federal government how much money to withhold from your regular paycheck. Unfortunately, too many employees forget about this form even as their lives change. If you earn promotions and a more substantial paycheck, you should revise your W-4 form. If you get married or have children, you need to update your information. If you start your own business on the side, you need to rethink your W-4 form. Here’s a handy rule: If you either owed much money to the IRS last year or received a big refund, you need to change the allowances on your W-4 form. The Good News Here’s the good news: You can rework your W-4 form at any time. Just request a new form from your company’s human-resources department. Of course, deciding how much the IRS should withhold from your paycheck can be difficult. Fortunately, the IRS offers an online withholding calculator. This tool, which is a bit complicated, asks you a series of questions to help you determine the correct amount of money to have withheld from each paycheck. Changing your W-4 form will require some research on your part. However, you will be glad come April 15. Remember, there’s no sound financial reason to overpay the federal government throughout the year. Keep your money where it belongs; with you.

Setting up Tax Withholding

View Resource Setting up Tax Withholding
Most employers want you to be healthy. Really. Healthier workers are more productive workers. They cost companies fewer dollars over time because they are not always tapping into their healthcare benefits. When employees are physically fit and healthy, they tend to take fewer sick days. It should come as no surprise, then, that many employers offer quality-of-life and wellness benefits to their workers. These quality-of-life benefits can come in many forms: Some employers provide free or reduced-cost membership to local gyms. Others require their employees to schedule annual physical exams. Still, others cover the costs of weight-loss and anti-smoking programs. Some companies even choose to provide discounts to employees signing up for swimming or exercise classes in their communities. Others offer on-site fitness rooms and walking trails or sponsor company basketball or floor hockey leagues. That is good news for workers. We should all strive to be healthy. When our employers are helping to foot the bill? That is just a bonus. Grim numbers It is not surprising that a growing number of employers are offering wellness and quality-of-life benefits to their employees; workers, just like the general public, are too unhealthy today. Moreover, unhealthy workers tend to be unproductive ones. According to recent numbers from The Centers for Disease Control and Prevention — 40 percent of U.S. adults are obese. At the same time, the President’s Council on Fitness, Sports & Nutrition reports that more than 80 percent of U.S. adults do not meet the guidelines for both aerobic and muscle-strengthening activities. That is a perfect recipe for health problems. Adults who do not exercise and are overweight are more likely to develop high blood pressure, diabetes, heart disease and other serious issues. They are also, unfortunately, more likely to die at a younger age. Companies want to protect their workers; employees are, after all, the most significant investment that most companies make. To help do this, they have developed innovative workplace wellness and quality-of-life programs and benefits. Doing the research You should want to take advantage of the wellness programs that your company offers. However, you must research before signing up for any quality-of-life programs. Workplace wellness programs usually come in two varieties: One offers a stick approach, the other a carrot. First, the stick: Many employers require their employees to schedule a physical each year with their primary care physician. If these employees do not do this, their health insurance rates will rise. Companies might also require those employees who smoke to pay higher prices for their health insurance. Other benefits are of the carrot variety. That includes companies that offer their workers reduced rates or free access to local health clubs. It also includes businesses that provide on-site fitness centers, running tracks or walking trails. These benefits are designed to keep workers healthy and happy. However, workers are not penalized for not taking advantage of them. It is essential to keep wellness and quality-of-life benefits in mind when you look for a new job. It is not easy to put a price on good health. However, the healthier you are, the less likely you will be to overspend on health care.

Quality of Life and Wellness Benefits

View Resource Quality of Life and Wellness Benefits
Once again, CD rates are back on the rise, leaving people who have decided against them in the past to reconsider whether now might be the time to begin investing in CDs once again. Before you decide whether CDs are the right choice for your investment or savings strategy and style, keep the following in mind. As a precursor though, we will need a short vocabulary lesson for CD products, as they sometimes go by different names, depending on whether you are saving with a bank or credit union. Your bank will most likely use the term “CD” or “Certificate of Deposit.” However, if you work with a credit union, they might use the phrase “term certificate” or “certificate” in talking about the same essential product. Within this article, we will use the shorthand “CD,” but the term covers the credit union naming conventions as well. Purpose of CDs The primary purpose of a CD is to allow investors the opportunity to invest their cash in a short-term financial instrument that provides them with guaranteed interest. In most cases, the return on CDs is higher than what you will experience with savings accounts and most treasuries, making it a better place to park cash. Over the past few years, interest rates on CDs have been unprecedentedly low. That has changed, though, making them a more attractive option to consider for investors. That does not mean it is the right choice for all investment situations. The people who like to use CDs generally prefer them because they are considered incredibly low-risk investments. They are federally insured (either by the FDIC or NCUA), and the rate is guaranteed. When you “purchase” a CD, you are essentially giving the bank or credit union a loan. It works much the same as it does when you borrow money from a bank, but this time In reverse. In this case, you give the bank a specific amount of money. You agree to allow the bank to keep your money for a specific amount of time, known as the “term.” In return, they pay you a specified amount of interest on the money at the end of the term. While CD terms can be for any length of time, common term lengths for CDs are: Financially speaking, the longer the term of the CD is, the higher the interest rate you will receive and the more interest you stand to earn. Keep in mind, though, that your cash is locked up in the investment for the duration of that term unless you have a particular type of CD that allows you to withdraw your funds early without paying the penalty. When to Use CDs Not all savings and investment plans operate well in combination with CD purchases. There are some strategies, though, where CDs shine as investment options, including the following: CD Drawbacks The one major drawback to consider when investing in CDs is time. A CD investment is not exactly the most liquid of your investment options since you promise the bank or credit union access to your money for a specific period. That means you won’t have access to those funds until the term expires. A strategy to minimize this drawback is to create a “CD ladder” to spread out your term lengths, giving you access to some of the funds as each term expires. Another drawback to consider is that the return is lower than other investment options. That is the price you pay for the low-risk nature of CDs as investments. What is the takeaway? With the right strategy in place, CDs can be sound investments, and now might be the perfect time to buy as interest rates on CDs rise again.

Is it Time to Use CDs for Investing Again?

View Resource Is it Time to Use CDs for Investing Again?
Having the ability to apply for and be approved for credit by a lending institution is essential for most people. However, many people do not take the steps necessary to help ensure they will qualify for a loan. One of the most important things you can do is review your credit report on an annual basis. Credit Report Overview A credit report is a record of your personal credit history compiled by credit bureaus using data submitted by your creditors. Before creditors approve a new loan or line of credit, they will carefully review your past borrowing and repayment practices to determine if they want to extend you credit, and if so, how much. Importance of an Annual Review The information on your credit report can affect how much money you can borrow and the interest rate applied to the loan. Additionally, you should review your report for the following reasons: How to Get Your Free Credit Report Obtaining your free credit report is easy. Just go to the federally authorized website AnnualCreditReport.com. At AnnualCreditReport.com, you can get reports from each of Equifax, Experian, and TransUnion. These are the three major reporting agencies. Alternatively, you can request the reports by calling 1-877-322-8228. You will need to provide your full name (with the suffix if applicable, such as Sr., Jr., III), your current address, your Social Security number, past addresses within the preceding five years, and your date of birth. Each of the credit bureaus compiles your credit report independently from each other, although their information sources are the same. What to Look For Above all, you should review your credit report for errors or inaccuracies. If you discover an error or mistake, you should contact the credit agency that is reporting the inaccuracy as soon as possible. Reports prepared by different credit bureaus may provide the same basic information in different formats. The components you will likely see and should review on your credit report, include: Whether you are looking to apply for an additional credit line or maintain your existing credit line, it’s important to review your credit reports annually for accuracy. It may also be a time of reflection to make changes to impact your credit score positively.

Your Annual Credit Report Review

View Resource Your Annual Credit Report Review
Financial freedom often begins by becoming financially independent. Many people do not realize how financially dependent they’ve grown or how easy it is to find oneself there. Some people never really break free from financial dependence on their parents. For others, debt is what is holding them back and keeping them from the economic freedom they seek. Fortunately, it’s not an all-or-nothing process. There are various stages of financial independence. When your income grows, your spending habits improve, and your ability to save becomes more commonplace, you can move on to higher-level stages. Moving from one step to the next takes time and slow and steady progress with your finances until you reach your goal of financial independence. Stages of Financial Independence Financial independence rarely happens all at once. Not unless you win the lottery or created the next million dollar wonder app that everyone has to have. In other words, it’s a long-term strategy. Therefore, you shouldn’t feel frustrated about not achieving all at once. Most people get there in seven stages that take years, if not a lifetime. Stage One – Financial Dependence on Others Most children are completely dependent, financially and otherwise, on their parents. Others who may fall into the category include: Your goals for gaining greater financial independence at this stage may include finding a job or more lucrative employment, surrounding yourself with people who have different economic priorities, and seeking financial advice and guidance from a trusted source. While acting to move to the next stages of financial independence, it is essential to begin building your credit, arranging transportation, and finding a place of your own to live – even if your first apartment or home involves roommates. Stage Two – Financial Dependence on Debt If you cannot make it from payday to payday without putting purchases on credit, taking advantage of payday loans, or otherwise borrowing money, you are financially dependent on debt, and that can be a frightening place to be. At this stage, it’s time to make lifestyle changes that focus on saving money or even considering a second job, at least part-time, to get out of debt and the continuous need to borrow. Stage Three – Financially Dependent on Your Paychecks Many Americans ( 75 percent, according to CNBC) fall into this “stage three” category. In this stage, you are making enough to get by, and little else. Some refer to this as living paycheck to paycheck. At this stage, the only thing left to do is eliminate the low-hanging debt fruit you have and then chip away at all other debt, one debt at a time until you can move forward with your financial independence goals. Stage Four – Early Stages of Financial Independence At this stage, you are still on the edge of financial instability. You do have many debts paid off, but you must continue bringing in income from your job to maintain your current standard of living. You are a lot more comfortable and better prepared for the financial realities that lay ahead when you are in stage four. Now is the time to ramp up your efforts to save for the economic freedom you seek. Stage Five – Moderate Financial Independence During this phase of financial independence, you can see the light at the end of the tunnel. You have saved enough money and could conceivably manage several months of unemployment but are not ready to face life without a reliable income or salary. You have more personal freedom at this stage. You may consider changing careers to one that provides greater fulfillment, even if it does offer fewer financial rewards. Continue saving until you have prepared for the final stage of your journey. Stage Six – Partial Financial Independence At this stage of financial independence, you can shift your focus to work you find meaningful or take pleasure in doing. You do not depend on your income to survive, though you may not be financially free enough to live the lifestyle you desire without continuing to bring in some form of income. Stage Seven – Complete and Total Financial Independence At this stage, you never need to work a day in your life again unless it is work you genuinely want to do. With this degree of financial freedom, you can live the lifestyle you desire without being forced to tighten your belt to make ends meet. “The journey of a thousand miles begins with one step.” – Lao Tzu. So, begins your journey to true financial independence. These are the stages involved.

Becoming Financially Independent

View Resource Becoming Financially Independent
Cash back is an incentive that many credit card companies offer to encourage the loyal and consistent use of their cards. For some consumers, the promise of getting cash back for specific types of purchases was a major selling point used in the selection of a particular credit card over other options available. Depending on the card you choose and the types of purchases you make, you could earn cash back in the range of one percent to five percent, or possibly even more, on those expenditures. Cash Back Credit Cards At one time, the leading reward credit cards offered were airline miles. These miles represented dollars you spent on travel and could be traded in for flight upgrades, flights, hotel rooms or room upgrades, or other travel-related expenses. As credit cards evolved, so did the rewards, with credit cards offering rewards that enabled you to purchase gift cards for select retailers. Today, many credit card companies allow customers to earn cash back rewards on purchases they make at certain retailers. When appropriately maximized, this is cash back that can make a difference for your annual financial bottom line. Tips for Maximizing Rewards Many people who have cards that offer cash back for purchases are not taking full advantage of the cash back benefits available to them. There are a few ways you can maximize your rewards, so you get more cash back bang from your credit card bucks.
  1. Choose your cash back card wisely. Different cards offer higher rewards for different categories of purchases. Popular categories include things like travel, groceries, dining out, or gas. While one card may offer one or two percent cash back on all purchases, it may offer an additional one or two percent cash back on a specific category of purchases. While gas was once a popular choice, that might not be the best way for you to maximize your cash back reward. Purchases of groceries, for example, often offers a great opportunity for maximum value, especially if you have a large family and grocery bill. With cards that reward you for grocery purchases, every time you spend money on food, you are getting cash back in your pocket.

  2. Pay all your bills with your cash back credit card. Think of all the bills you currently pay each month using, a check, debit card or through online bill pay. Consider using your rewards credit card instead and you can earn cash back on things you are already spending money on. It adds up pretty fast when you consider monthly payments such as:
    • Mortgage or rent

    • Utilities

    • Mobile phone bills

    • Internet fees

    • Subscription services

    • Hotel reservations (especially for people who travel for work)

    • Health insurance

    • Auto loan payments
    Each month, these bills can add up to several hundred if not thousands of dollars. Pay them with your credit card, then immediately pay your credit card bill, so you are not paying interest on these purchases.

  3. Pay attention to the details. One of the biggest mistakes people make when attempting to maximize cash back on credit cards is failing to read the fine print. It is vital to know if there are quarterly or annual limits on the amount of cash back you can earn. If there are, it might be wise to consider multiple cards, so you can employ your cash back maximization efforts accordingly to get more money back month after month.

  4. Pull out your plastic for major purchases. Whether you are buying appliances for your home, electronics, furniture, or outfitting your new home office, if you are making big purchases, credit cards, especially those offering cash back rewards, are the best way to go. Credit cards can also provide an added layer of consumer protections for any disputes you might have with the seller.

  5. Be aware of cash back options. Some consumers may not realize that they have several options available to them as to how they can receive their cash back rewards. Most credit card companies allow you to choose between cash back in the form of checks, gift cards, and statement credits.
    What you might not realize is that accepting these rewards in the form of statement credits may be the best way to go. Not only does it help you reduce the balance owed on the card, which is almost always good news. It also helps to increase your available credit. Which, in turn, improves your overall credit score, reducing interest rates, and ensuring a wider availability of credit for you.

  6. Take advantage of bonus categories. Other things you can do to help maximize your ROI with your credit card spending is to take advantage of bonus categories each month. These allow you to earn higher cash back on specific purchases in that category.
There is not a single best cash back card that is best for everyone. Finding the best cash back credit card for you depends on your spending habits, the card’s specific rewards program and benefits, and the value of the cardholder benefits you can use. However, when you use all the above strategies together to maximize your cash back, you can get far more mileage in the form of cash back rewards from your efforts.

Are You Maximizing Your ‘Cash Back’?

View Resource Are You Maximizing Your ‘Cash Back’?
Children might not fully understand the whole concept of money as a measure of value, however, many children like money because they do recognize it as a medium of exchange or method of payment. They generally realize that to buy something they want, they need it. Teaching kids to count money can be a little confusing at first for them, but it is essential since it is one of the basic concepts they will use throughout their lives. You can introduce the concept of counting money once your child has a basic understanding of simple math. You will then move on to helping them identify different types of currency and their value, and fun counting games can help you do this. Identifying Coins and Currency Money comes in various sizes and shape. It also comes in paper and coins. The size doesn’t matter — the denomination of money is what matters. Different units of money come with a specific value. While adults understand these simple facts, children may have problems with these facts. Paper money currently in circulation comes in bills of: Current coins in circulation come in denominations of: Of course, you might find also run across half dollar ($0.50) and dollar ($1.00) coins in your change, but they are a lot rarer to possess. An essential concept you should convey to your children is that all U.S. money or currency has the dollar as the unit of value. Coins are only fractions of this unit and bills are multiples of this unit. One hundred pennies make up a dollar. Twenty nickels or five-cent coins also make up a dollar, and so forth. When you can get your kids to understand money is based upon the dollar unit, it will allow you to further explain equivalents to them such as: Learning to Skip-Count Before introducing money into your child’s lesson, teach them how to skip-count. Skip-counting is where you count by multiples of 5s or 10s or 20s. It is a simple way for your child to count bills and coins of most U.S. denominations. Continue practicing skip-counting with your child until they can skip-count all coin values up to one dollar and 100 by 5s,10s, and 20s. Counting Games Here are some fun counting games you can implement with your child to make learning how to count money fun: Hundreds Chart Create a chart that has 100 squares, labeling each square in sequence with the numbers one through 100. Give your child a handful of different coins and tell them to place each one on the square representing the total value, having them begin with the highest-value coin and working their way down. For instance, if you give your child three pennies, a nickel, two dimes and a quarter, they would begin with the quarter, placing in on the square with the number of 25. They would then place the dime on the square with the number 35 since the total of both coins comes to 35 cents. They then proceed by setting the next dime on the square with the number 45, the nickel on the square with the number 50 and so on. Matching Game Using single coins, create pairs of cards. On one card, put a photo of a coin (or tape a coin to a card). Then, write different coin values on separate cards. Shuffle the cards and have your child practice matching coin cards with its matching written value card. You can even try combining several coins on one card to make the game more of a challenge. Your child can practice adding up the values of the coins on a card with its corresponding written value amount. Partner Match Game Here is an excellent game for a group of children. Before starting the game, place sets of coins in individual plastic baggies. Make sure that each baggie has a mate that contains the same value of coins, but use different combinations of coins to match overall totals. To start the game, give each child one of the baggies. Their challenge is to find the partner who has their matching coin total. Takeaway Counting money is an essential functional skill for all children. For kids, learning to count money does not just provide them access to items they wish to buy, but it also provides them with the foundation for comprehending the base ten numbering systems that will help them later learn percentages, decimals and the metric system essential for technology, science, and even the social sciences. Like all skills, using and counting money will eventually teach your child independence, but it all starts with “baby steps.”

Teaching Your Child to Count Money

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If you look long and hard enough, you will find a subscription service for just about everything these days. From shaving supplies to dog food and more, there are hundreds of subscription services to meet the diverse needs of individuals living in a modern society. One category of services that are getting attention and interest from people across the country are “grocery delivery subscriptions.” What do they have to offer you and are they worth the prices they charge for the convenience they provide? Overview of Subscription Grocery Services You have a variety of features and options among today’s grocery delivery subscriptions, including services: Advantages Before you shake your head and walk away from this new-fangled way of getting food into your pantry, refrigerator, freezer, or on your table, there are plenty of benefits to consider when it comes to grocery delivery subscriptions, including those listed below. Disadvantages While the list of advantages is long and impressive, there are some drawbacks to consider as well. The better you understand them, the wiser decision you’ll be able to make for your needs. For most people, it does come down to the question of time and money. The right grocery delivery subscription services can save you both, which may make them well worth a few added dollars to your grocery spending.

Do Grocery Delivery Subscriptions Make Sense?

View Resource Do Grocery Delivery Subscriptions Make Sense?
Often for small to medium businesses and even some larger businesses, it is not economical to have your own merchant account and be a merchant service provider. That’s why third-party payment processors are a great solution – instead of having a merchant account which comes with high set up costs, a business will work with a third party who has their own relationship with a merchant services provider. Third party payment processors frequently offer their clients payment services via the Automated Clearing House (ACH) network, which is convenient, but also comes with its own set of rules and requirements to avoid fraud and other problems. For businesses and other third-party senders who process ACH transactions, there are a number of security requirements required by NACHA (National Automated Clearinghouse Association). These rules apply to any business that processes ACH transactions in either direction, whether to pay employees or vendors or to accept payments. Most business owners either have an ACH merchant account to process ACH transactions or use a third-party system to process ACH transactions. Businesses that use third-party vendors need to maintain a level of security to make sure the process goes through accurately and sensitive ACH data stays protected. The business itself is responsible for the security of the data and must put access controls, including data encryption and firewalls, in place to safeguard sensitive information. Third party venders process on behalf of their different clients and use their deposit accounts to conduct the payment process. From the business owner’s perspective, the ACH rules require any transmission of banking information, such as a customer’s bank account and routing number, be encrypted using “commercially reasonable” encryption technology if transmitted via an unsecured network, like the Internet. Regular email or insecure web forms are not an acceptable way to send personal and sensitive information. So if you use a third-party software solution for transmitting ACH, ensure that the company you choose has the most up-to-date encryption available. From the bank perspective, businesses that use third-party vendors also have to comply with the security procedures outlined by NACHA. To maintain security and assure validity of the items on ACH files, these procedures should be followed: – The business is responsible for security of sending ACH items to the bank, and the bank is responsible for the security of processing and transmitting the ACH item to the Federal Reserve. – When the ACH files are received by the bank, they are processed exactly as they are received. Dates cannot be modified after the receipt of files. – If a file has been processed by the bank, the bank will reverse files or entries only after receiving a Reversal Request through Business Online Banking from any two authorized users that have the authority. – If the file has not been processed by the bank, the bank will delete the entire file after receiving a written, signed request from any two authorized signers. The bank will verify that the person signing the request is authorized to do so. – When a business submits transactions through Business Online Banking, this will be considered a valid transaction by the bank – no additional verification will be performed. This is the main reason that only granting Business Online Banking access to necessary people is so important. – The business is responsible for establishing the Business Online Banking access IDs and passwords. Only employees responsible for ACH transmissions should have access to this information. – The business is responsible for ensuring that passwords are secure by changing them on a regular basis, especially in the event of an employee termination. – The business is responsible for notifying the bank if unauthorized personnel may have gained access to the Business Online Banking platform. – Both the business and the bank agree that all telephone conversations, emails, and data transmissions are secure and are only shared with the necessary people, but they may also be electronically recorded and retained by either party. If your company processes ACH transactions, make sure to stay on top of all the latest rules and procedures as established by NACHA. Visit their website for the most up-to-date information.

Keep Your ACH Transactions Compliant with NACHA Requirements

View Resource Keep Your ACH Transactions Compliant with NACHA Requirements
It is something many families dream of: Owning a small cottage by the lake, a cabin in the mountains, or a beach bungalow they can visit on long weekends, during holidays, or for extended summer vacations. When the time comes to turn that dream into reality, there are a few things you should take time to consider seriously. Famed economic advisor, Dave Ramsey, recommends taking a step back before you decide to buy and ask a few critical questions about your financial situation. These include: Ramsey cautions against taking out a mortgage or dipping into retirement savings to pay for a second home. Doing so could turn your vacation home into a much more significant investment than your budget can handle. Affording a Vacation Home If you must finance a vacation home, it is better to have a much higher down payment going into the house. Consider investing at least 20 – 30 percent of the home’s cost as a down payment to qualify for a loan on the home. Even then, you will likely find that interest rates for vacation homes are higher than for your primary residence. The best option is to pay for your vacation home up front. In high-demand areas, the costs of paying cash can be prohibitive. Another opportunity to consider is purchasing the property as an investment property. Then, you can hire a property management agency to rent the property out when you are not using it to help defray the costs of your investment. In some cases, rental income can make up the difference in the cost, allowing you to recoup your investment quickly and pay as little interest on the loan as possible. That is one case where financing your vacation home may be an attractive option. Just remember that you are responsible for the condition of, maintenance of, and repairs to the property when you have renters. You will also have to work out a schedule that works for you concerning when you will use your vacation home and when it will be available for rent. Cost of Vacation Home Ownership The costs of ownership go well beyond the costs of buying a vacation home. In addition to the usual expenses related to buying a home (mortgage, insurance, etc.) there are additional expenses you must consider as well, such as: Since you are paying for these things for two homes, you are essentially doubling your expenses. Also, it’s important to note that since the vacation home is not your primary residence and remains unoccupied for extended periods, it may require specialized insurance that costs a little more than your average homeowner’s policy. Failing to get the right kind of coverage may open you up to denial of coverage when disaster strikes. Rent or Buy a Vacation Home? Depending on how you plan to use your vacation home, and how often, it might be a better investment to rent a vacation home rather than to purchase one. Renting a home for one or two weeks in the summer is much more cost effective than paying all these expenses on a house you are only likely to use a few times each year. Plus, you can use your vacation dollars to enjoy a change of scenery, rather than going to the same place year after year. If you are only planning a couple of weeks or extended weekends each year in your vacation home, renting is the better financial choice for the average consumer. That is, of course, unless you are viewing this as a potential investment. If you are planning to spend an entire summer or several weeks throughout the year in your vacation home, on the other hand, it might be worth considering purchasing the home. Buying a vacation home is a long-term investment in your happiness and that of your family. It’s also a massive financial undertaking. Make sure you understand the full scale of that purchase before you commit.

Buying a Vacation Home

View Resource Buying a Vacation Home
An irregular income presents unique challenges when it comes to budgeting. However, it does not effectively make budgeting impossible. When done correctly, developing a reasonable budget for your irregular income can help you eliminate debt-related stress, live within your financial means, and save for those rainy days. Use the information below to create a budget that can prepare you for the future and help you achieve your financial dreams, whether they be large or small. Understanding Your Income When you have irregular income, it is more important than ever to understand the ebbs and flows of how your income operates. That includes understanding the economic seasons, and how they relate to the peaks and valleys of your income. When business is peaking, your income is most likely at its highest. However, it also means you need to understand and handle times when your income reaches its low point during an economic valley. For example, roofing contractors often experience a significant boom in business during the warmer months of late spring, summer, and early autumn. However, winter work may be limited to emergency patchwork when the weather permits. You have another unique challenge to overcome in that you can not work on rainy days either. So, you need to take the seasonality of your business into account when budgeting so that you have enough money to cover primary expenses during the slow season. The same philosophy holds true in many other industries as well, including: Whether your work is seasonal in nature or you have unreliable hours, it is still vital to establish a budget and live within it. Calculating Required Spending Your first step is to understand your necessary monthly expenses. For this, it helps, if they are available, to go on budget payment plans for utilities. Under these plans, you will pay a consistent amount each month. You might pay more than your seasonal use calls for some months, but having a consistent cash flow will make it easier for you to manage your expenses each month. The key is that you need to know exactly how much money you must spend each month on essentials that include: These are the essentials that you and your family require for economic survival. Once you know this amount, you have the first set of building blocks for a workable budget. Calculate Discretionary Spending The second part of the calculation is to understand your discretionary spending each month. These are the luxuries in life that are not essential, though you may believe they are necessary. The thing to remember about these expenses is that unless they relate to your income somehow (as in you may need a phone or access to the Internet for your work), you can live without them for a month or two if necessary. They include the following: Sometimes, it is eye-opening to see just how much you spend each month on discretionary items. Identifying these purchases can help you see areas where you can make changes to your budget that can net huge savings – especially during leaner months. While you do not want to eliminate all discretionary spending, you can set limits so that there is money left over for luxuries even in the leaner months. The Importance of Saving Saving is critical for people who have irregular incomes. That is what allows you to get through the leaner months, so you do not have to worry about how you will make your house payment or feed your family. If you are currently struggling, the first place to look for savings opportunities is in your discretionary spending. Cutting the cord with the cable company can easily save you $100 a month depending on your current package. Instead, you can borrow DVDs from the library to entertain yourself and may never miss your cable service. Further cuts to your budget may involve switching from mobile phone contract plans to monthly prepaid services and overcoming the urge to upgrade every time a shiny new phone hits the market. Budgeting is critical when you are working with an irregular income. It can help you avoid drowning in credit card debt while helping you achieve your short and long-term financial goals.

Budgeting on Irregular Income

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Economic uncertainty remains despite an economy that has been growing in recent years. The massive recession that created such turmoil in the world’s economy and left many people struggling to make ends meet here in the U.S. is still far too fresh in the minds of many families to fully enjoy the current economy. Fears of an uncertain future have many savvy people looking for ways to boost rainy day funds should the good times end. There are two primary ways you can make yourself less vulnerable to the many factors that made the last economic downturn so devastating:
  1. Get your finances in order.

  2. Make yourself immensely employable.
Preparing Your Finances This step is the most complicated part of the process for many who live in a decidedly consumer-driven society. However, preparing your finances for rainy days, weeks, months, and years can make a world of difference when economic downturns occur by allowing you to weather the storm without losing your home or your security. These steps help. Making these changes a process that requires time, patience, and dedication to accomplish. However, taking the time to do so can yield tremendous results and create a more favorable financial situation for the next recession or retirement – whichever comes first. Exploring Employment Options One of the most significant problems people faced during the previous recession was one of employability. With so many companies letting experienced players in various fields go or laying them off, the job market became flooded with highly qualified candidates in every industry. There are some things you can do, now, though, that will help you have a competitive edge if and when another recession occurs. The more diverse your new experiences, knowledge, and skills happen to be, the more impactful the edge they give you in a flooded marketplace. Doing these things to protect your finances and your employability might not help you from feeling the sting of another recession, but they will undoubtedly help numb its sting.

Preparing for an Economic Downturn

View Resource Preparing for an Economic Downturn
It can be very exhilarating when you are about to rent your first apartment. However, it can also be a little overwhelming since the process is unfamiliar. Before you start looking and applying for apartments, heed the following tips to make the process go a bit smoother. They can help you land the perfect place for your needs and wants. Preparing Your Finances Landlords can check your credit score, and most do. They can also deny you the rental if your credit is not particularly strong. However, you might be able to make the landlord a little more confident in renting to you by offering a second deposit or a couple of month’s rent up front. Regardless of whether you have good credit, no credit or poor credit, you are still going to need a good chunk of money up front before you can move in. Landlords typically ask for the first and last month’s rent as well as a security deposit (usually equivalent to one month’s rent). If you are a good tenant, do not cause any damage to the apartment and do not break your lease, you usually get your security deposit back. However, in the beginning, before moving in expect to fork out some cash. If the apartment rents for $1,200 a month and the landlord wants first, last and a security deposit, plan on paying out $3,600 before you even step foot in the door. So, you will want to start saving money now. Another thing to consider is renter’s insurance. Some places require it. Even if they do not, it is not a bad idea to get coverage to protect your belongings in case of a break-in or damage to your things. It does not cost that much for renter’s insurance either (possibly around $10 to $20 a month). When you take out a renter’s insurance policy, the insurance provider might ask you to provide proof of the belongings you are looking to cover. Receipts (if possible) and photos should be good enough. Art pieces and jewelry might require additional coverage. Place all documents in a fireproof safe in your apartment or a safe deposit box at your bank. Setting a Budget Experts suggest that you do not spend more than 30 percent of your gross income on rent. If you cannot afford a place, then do not sign a lease, even if they are having a promotion. To set up a realistic budget to live in an apartment, subtract all reoccurring and major expenses from your after-tax income. What is left is what you have to pay for rent. Remember, this total should include not only your monthly rent but also utilities if the lease does not include them. Signing the Lease It is crucial that you know what your responsibilities are as a tenant, so you should carefully and thoroughly read your lease agreement. Each state may have different laws, but some clauses could be illegal which would invalidate the whole lease. You should know what these are in case you end up having issues with your landlord. There could also be other legal clauses, that are easy to violate, like a no-smoking clause. You would not want to get evicted or fined because you had a guest who lit a cigarette on the front porch. So, be super careful to know the ground rules so that you can stay in the apartment. There is one simple rule when it comes to an apartment rental: The first applicant who typically qualifies for the apartment usually gets it. So, in a tight housing market, you will want to have your application information with you so you can complete the application and hand it in right there on the spot. For the first-time renter, this means you should have your necessary information with you and any written references you can provide to the landlord. Pay stubs and bank statements are also good to have to prove you can afford to pay the rent each month. Having a savings account with enough money saved to pay rent for an emergency like losing your job will help too. Takeaway Your first apartment is a big deal, and while it is exciting to be moving into a place of your own for the first time, this is the time when you will need to start acting like a grown up. You will have many responsibilities now, but fortunately, it’s easier than you may think.

Qualifying for Your First Apartment

View Resource Qualifying for Your First Apartment
Dating presents an opportunity to get to know another person more intimately to determine whether he or she could someday become a life partner. Until you have made that decision, however, dating allows you to get to know the other person more deeply to learn whether or not you are compatible on many levels. That includes financial compatibility. While some people are reluctant to discuss essential things like money, money management, and financial goals while dating, it is more critical than many couples, in the early stages of a relationship, realize. First things first, though, it is time to address the elephant in the room when it comes to dating — financial etiquette. Financial Etiquette for Dates In the 1950s, 60s, 70s, and even to a lesser degree, the 1980s the guy was expected to pay when couples went on dates. That was the expectation because so few women had jobs and careers. Moreover, women who did work often earned considerably lower wages than the men they were dating. The times have changed. More women are pursuing professional careers, and many have earnings that outpace the men they are dating. Also, the new rules of financial etiquette for dating are somewhat different too. In a March 2018 CNBC article on dating etiquette, Emily Post of the “The Emily Post Institute” is quoted: “We believe it is the person who does the asking who should do the paying,” says Post. “Or at least who should be prepared to offer to pay.” They should also be open to the idea of splitting the cost of the date, “if the person asked on the date offers that up as an option.” With that said, the general expectation is still that the man is often still expected to pay — at least for the first date. The real problem is that expectations and wishes differ from person to person and couple to couple. Some people even prefer to split the bill on that critical first date or opt for a less expensive coffee or drinks rather than going out for dinner and to a movie type that tends to be more costly. That leaves opportunities for discussion about future dates and who will pay and also allows both parties to determine if they even want to consider additional outings with the other person. The first and second dates, though, are not generally the problem. It is the later dates when you begin to explore the possibility of a long-term relationship with a person when more in-depth conversations about money and money management need to take place. Starting the Conversation About Money Money: It can be one of those uncomfortable topics to discuss when dating. Unfortunately, dating someone who is your financial opposite could lead to long-term relationship hardships and a non-happy ending for both of you when all is said and done. The more serious the relationship becomes the more difficult it becomes to extricate yourself, and the more painful. Determining early on whether you are financially compatible can help you decide if this is the person for you. While it’s just a date today, it could quickly turn into something deeper and romantic for both of you. Understanding a potential partner’s experiences with money, ideas on spending money, and financial goals can go a long way toward deciding if this might be “the one” for you. Start with a simple question about debt. It might not be a comfortable conversation, but it can help you gauge the approach of the other person. For instance, student loan debt is a good segue into a much broader discussion about debt, managing debt, and paying an outstanding balance off as quickly as possible. You can even start the conversation with a statement about your student loan debt and how you are managing before asking your date about his or her experiences and opinions. Dealing with Financial Issues The best way to deal with financial issues is with open and honest communication. At some point, you must sit down together and have the financial reveal where you discuss your financial situations, income, expenses, and approach to managing debt, saving, and spending. When you get to the stage of combining finances, if it ever comes to that, you need to have clear expectations and understandings going into the relationship to save you both from severe emotional and financial pain. No rule says you have to have your finances entirely under control before beginning a relationship. Many people are just starting to learn their financial tendencies while dating. It is essential, though, to find some common ground upon which you can build long-term financial goals together if you wish to continue in your relationship.

The Financial Side of Dating

View Resource The Financial Side of Dating
Leasing a car is a great way to continue driving a new vehicle with the latest comfort, safety, and connectivity features. However, you have to be smart when you are leasing a car. It’s a more complicated transaction than merely buying a vehicle. It is too simple to make costly mistakes. Here are just a few easy-to-make and avoidable car leasing mistakes. Understanding How Leasing Works When leasing a car, be sure to read the fine print before you sign that contract. While a car lease typically offers lower monthly payments, it can be extremely costly when you are not sure what you are doing. With leasing, you are theoretically only paying for the depreciation that occurs over your lease term, plus fees and interest. So while this sounds simple enough, it can be far more complicated in practice. If you have never done this before, leasing can be a bit tricky. When you purchase a new car, you need to pay (whether by cash or loan) the total price of that car. When you lease a vehicle, however, you are only paying the difference between the cost of the vehicle and its expected value once your lease is up, plus fees and interest. So, if you want to lease a car that is $40,000 and it’s expected value after three years is $30,000, you will only need to pay the expected depreciation — $10,000, plus fees and interest. If you were to purchase this same car, you would have to pay the entire $40,000, plus additional charges and interest. When your lease is up, you return the car to the leasing dealer. You might or might not have some lease-end costs which depend on the amount of security deposit you put down when you signed the lease. At this point, you will have the option to either: Keep this in mind; a lease is a contract you typically cannot easily break without having to pay some potentially significant penalties. When you buy a car, you can sell it at any time without penalty. That typically cannot be done with a leased car. Negotiating the Deal Many individuals believe the sticker or lease price of a car is what determines the lease price. Typically, this is not the case unless you are taking advantage of a subsidized lease deal through the manufacturer. When leasing a car, you definitely can negotiate the best price, and you should. In leasing terminology, the term ‘capitalized cost’ refers to the purchase price of the vehicle. If you can negotiate a lower capitalized cost, you can reduce your upfront payment, monthly payments or both. You can also negotiate other things like the: Other Factors Other things you need to factor in when leasing a car are: Deciding to lease a car rather than buy one is the perfect way to be able to drive a newer car while paying less money each month. Just remember the leasing risks that could have you paying more in the long run, defeating the purpose of leasing. Keep the above factors in mind, and read the fine print of your lease contract before you sign to ensure you lease a car that is right for you and within your budget.

Avoid These Car Leasing Mistakes

View Resource Avoid These Car Leasing Mistakes
It is possible to pinch pennies without anyone being the wiser. We live in a world where people are continually judging everything they see us do or buy when we are out and about. That does not mean you have to allow your financial goals to get out of hand. You can be frugal in the way you spend money without being viewed as cheap. Ways to Be Frugal Being frugal is a great thing. It can help you cut costs, boost savings, and meet various long and short-term financial goals you set along the way. These are a few tactics you can use to lead a more frugal lifestyle.
  1. Rethink your bills. Contact your cable company to seek ways to cut your monthly cable bill. Alternatively, cut the cord completely and switch to less expensive streaming alternatives.

  2. Kick cellular contracts to the curb. Many people find they can cut monthly costs immensely by skipping the expensive cellular contract services and opting for prepaid cellular services instead.

  3. Shop in consignment shops. Whether buying clothing for kids who grow a mile a minute or shopping for yourself, consignment shops offer opportunities to buy high-end items for a fraction of the costs. Favorite items to buy second-hand include furniture (choose shops that vet their items well), clothing, handbags, and video games for kids.

  4. Buy used vehicles. Purchasing a certified pre-owned vehicle can help you save a huge amount of money over purchasing new without giving up essentials like factory warranties and other perks that come with owning a newer vehicle.

  5. Shop wisely. Saving big money on major purchases is possible. For instance, make major electronics purchases after the Consumer Electronics Show which takes place each January. You will likely see significant price drops on existing technologies so retailers can make room for new items that are coming soon. The same holds with Christmas decorations. The best time to buy a tree is after Christmas when they all go on sale.

  6. Invest in quality. Believe it or not, you sometimes save more by paying more. Buying cheap items sometimes mean you must repeat the purchase far too frequently rather than investing in a quality product that is built to last.
Now that you know a few tactics to follow for more frugal living, it’s time to explore the transition from frugal to cheap and things you can do to avoid making it. Signs that You Are Being Cheap It’s great to be frugal, but no one wants to hear accusations of being cheap. If any of the following apply to you, you may want to dial your frugality back a notch or two.
  1. You are willing to drive out of your way, or even across town, to save a few pennies on gasoline or a grocery item. If you do not have the proper balance between the value of your time and the value your money, you might be crossing the line.

  2. You are constantly asking for add-ons and “freebies” from both retailers, friends, and families. Your brother-in-law might know his way around electrical wiring, but if you are constantly asking him to hang a new ceiling fan, or install a new electrical outlet, without offering in-kind assistance on projects he might have around the house, you might be getting too cheap. Likewise, if your idea of a great dinner date is to cruise your local warehouse club for free food samples, well, you get the idea.

  3. You are the person that conveniently forgets their wallet when the restaurant bill comes due, or when dividing up a bill, you have to itemize every item that members of your party ordered so that you don’t pay a nickel more than you ordered. Oh, and then you conveniently forget to include a tip for your waitstaff.
When your attempts to live frugally begin to take over your life and prevent you from doing most everything you love, it is time to rethink your strategy. Being frugal is supposed to help you live better, not force you to stop living. Using the tips above for frugal living will help you save without making saving an obsession where it becomes a detriment to leading a happy life.

Staying Frugal without Becoming Cheap

View Resource Staying Frugal without Becoming Cheap
In today’s ever-increasingly disposable society, it is not always easy to know what items you might want to try repairing instead of just replacing it. More importantly, the rules seem to vary from one type of thing to the next. It can all be so confusing. This guide offers a variety of tips and tactics to help you decide when it is best to buy another item or if you would be better served to repair your existing products instead. Repairing items offers a few distinct advantages worth considering, such as: Of course, there are advantages when it comes to replacing items that are worth considering as well, such as: As you can see, under the right circumstances, the arguments for either can be compelling. This guide hopes to help you understand the right conditions for replacing or repairing your broken things. Repair or Replace Rules of Thumb Before you dive too deep into the rules of thumb for repairing vs. replacing your treasured possessions, there is one unaddressed factor with these calculations. That is the sentimental factor. There are some things where the cost of repair is not a factor because the possession has worth to you beyond its financial value. Barring that truth, these rules of thumb will help you make wiser financial decisions when making decisions about repairing or replacing items in your home or garage. Automobiles: Repair or Replace For cars, there are many mitigating factors to help you decide if it is best to repair or replace. One of the most important, being the costs of repairing the vehicle vs. replacing it. Some people view a car repair as a one-time investment that will keep the car on the road, at a minimum, for another year or two. That compares favorably to taking on another car loan and having higher insurance rates and fees that might go along with a newer vehicle. However, sometimes the car is old enough that the repairs keep on coming. When that occurs, you have to weigh the long-term costs of repairing, loss of use, and overall inconvenience with the costs of replacing your vehicle. With vehicles, the question almost always comes down to a matter of math. Appliances: Repair or Replace In May 2017, The Washington Post offered a handy guide that helped determine at which age you might wish to consider replacing certain household appliances rather than repairing them. Some suggestions it offers include repairing until items approach the ends of their expected life spans which look something like this: Appliances that have not yet reached these ages may not be ready for a replacement, though the costs of repairing them may give you second thoughts. If that is the case, make the best financial decision for your current situation. Other Considerations to Keep in Mind There are more things to consider beyond bringing in a professional to repair your broken things. There are some things you may be able to repair yourself. Especially in light of all the amazing instructional videos that are available online to help with the simplest and most complex tasks. Factors to consider if you are thinking about repairing items yourself include the following: For instance, drafty doors and windows can be repaired more easily than replaced but doing nothing can cost you in the form of higher energy bills. The better you understand your options, the more informed decisions you can make when the time comes to consider repairing or replacing your possessions.

Repair or Replace it?

View Resource Repair or Replace it?
Cash advances have been used to help countless Americans out of tight financial spots. However, they have also received a fair amount of criticism over the years for fostering situations in which people become dependent on cash advances and are unable to recover and get back on their feet financially. Here we explore the good, the bad, and the alternatives to cash advances so, as a financial consumer, you can make informed economic decisions when life’s little emergencies come your way. What is a Cash Advance? The term “cash advance” may mean different things in certain situations. There are essentially three types of cash advances. They include: Cash Advance Benefits Perhaps the most important benefit for all cash advance scenarios is that you get fast access to cash when you need it. You do not have to wait for banks to open, or for long approval processes. You get an immediate response and immediate cash (or money deposited into your account as the case may be). The other benefit is that credit is not a primary determining approval factor for a cash advance. While you are limited to the funds available on your credit card for that particular cash advance, you do not need to apply for new credit to take advantage of it. Finally, you do not have to do much paperwork when applying for cash advances either. It does not ding your credit report, and no collateral is required to secure the loan. For many people, it is an easy and quick solution for emergencies that require fast cash to fix. That does not mean it is all sunshine and roses though. There are a few potential downsides to consider before you pull the trigger on a cash advance. Issues with Cash Advances Before you dive in and whip out your credit card or apply for a payday loan online, it is a good idea to consider the potential pitfalls of this type of loan, especially since some of them are pretty substantial. Interest and fees are one drawback to consider. There is a price to pay for fast access to cash, and it is sometimes much more significant than you expect. Investopedia warns that some payday loan providers charge fees of up to 15 percent of the total borrowed amount plus interest which can be as high as 100 percent or more of the borrowed amount. The other downside is that these are incredibly short-term loans. That means they must be repaid quickly, often within two weeks without paying substantial penalties or rolling the loan over and paying even larger interest rates. If you use your credit card for the loan, there are still problems to consider as the interest rate is often higher than on your other purchases, meaning your new debt can linger and grow for months, years, or even decades if you do not promptly pay back the advance. Alternatives to Cash Advances Fortunately, there are options to cash advances that you can also consider. They include borrowing money from friends and family. That is not always the most attractive option but one that is better in the long-term. Personal loans are also options to consider. Some lenders offer prompt answers and far more attractive interest rates than payday lenders. Alternately, you could tap into your home’s equity or cash out retirement accounts. Understanding these realities of cash advances helps you make better-informed choices in your financial journey.

The Pros and Cons of Cash Advances

View Resource The Pros and Cons of Cash Advances
We all like to think of ourselves as savvy shoppers who do what it takes to get great deals on the things we buy. However, the things you do not know about dynamic pricing could cost you more than you realize. That is even true when you think you might be getting a bargain on the things you buy. What is Dynamic Pricing? Simply put, dynamic pricing is variable or flexible pricing placed on goods that allow for price adjustments based on changing market conditions. As those market conditions change, so do the prices. It takes the concept of supply and demand to new heights as prices can adjust in real-time, and on a minute-by-minute basis. You might also have heard it referred to as surge, demand or time-based pricing. A simple example of dynamic pricing involves holiday vs. post-holiday prices. Items in high demand for various holidays, such as chocolates or roses for Valentine’s Day and decorations or gift wrap at Christmas, will see prices peak ahead of these holidays as demand increases for these items. Then the prices for these items crash, often by 50 percent or more, the day after the holiday occurs. They decrease even further as retailers seek to eliminate the extra inventory to make room for the next seasonal items. The same holds for seasonal clothing. Coats, hats, gloves, and scarves are much cheaper to purchase as spring approaches than in months preceding winter. Likewise, swimsuits are much more expensive to buy during the spring than when you are seeking the perfect swimsuit for your winter cruise. On the Internet, the rules of dynamic pricing are even more complicated. That is why it is so crucial for you to understand what dynamic pricing is, how it works, and how you can make it work for you. Tips for Bypassing Dynamic Pricing These tips will help you avoid much of the dynamic pricing traps you will find when buying items at Internet e-commerce sites. Try them for yourself and see how much you stand to save.
  1. Search With a Different Zip Code
    If you live in an area where the income is typically higher than other areas, consider entering a different zip code, one in a lower income area to see if you get a different price. Don’t forget to disable location tracking features on your phone or computer when doing this to make sure it does not automatically update at the higher price location. This trick also works for people who live in more rural areas, where prices may be higher.

  2. Clear Your Web Brower’s Cache
    Take it one step further and disable third-party cookies as well. You can typically do this from within the preference section of your browser’s controls. Clearing your cache, erases your browsing history and prevents retailers from seeing if you have looked for this item from other retailers. If an e-commerce site knows that you have been searching far and wide for a specific product, they will use this information against you and price it a bit higher.

  3. Navigate to Merchant Sites from other Discounters
    According to eBlocker, a provider of anonymous surging technology, navigating to a merchant’s site from a discount or price search engine can save you money if you do that instead of typing the retailer’s address into your browser. For instance, if you use a service like Google Shopping, Shopzilla, or PriceGrabber to look for items and compare prices, you may find better bargains than going directly to Amazon, Best Buy, and other merchants.

  4. Abandon Your Shopping Cart
    How many times have you placed a product in your shopping cart before getting distracted or deciding the price was too high and moved on to another site only to receive an email a day or two later informing you that product in your cart is now a different price? This tactic is used to encourage shoppers to buy an item at a new lower price if you don’t buy it the first time around.

  5. Set Price Alerts
    You can do this easily with browser extensions or by using sites like CamelCamelCamel.com or Joinhoney.com. Doing this lets you set the price you are willing to buy certain items for and will notify you when they go on sale for that price or approach that price.
No one wants to pay more than is necessary for the things they buy. The better you understand the ways to circumvent dynamic pricing, like those listed above, the better deals you can get on all the stuff you buy online and in retail stores.

Dealing with Dynamic Pricing

View Resource Dealing with Dynamic Pricing
We live in a time where people can access a surprising and alarming amount of information about our personal and financial lives with only a few critical details about us. You can find many of these details in your wallet, and so can others. That is why it is best to be cautious about the things you keep on you or carry with you. This guide will help you recognize the things you should keep in your wallet, the things you want to keep securely elsewhere, and the things you might want to digitize for safe keeping. What to Keep Many of us live our lives on the go these days and prefer to have the things we are most likely to need at our fingertips at all times. However, that convenience isn’t always wise. Discover recommends keeping a few essential items in your wallet and leaving other items secured safely elsewhere. Among the items Discover recommends carrying around with you, are the following: These are the essentials you want to have in your wallet at all times so that you have your bases covered when life goes sideways and to ensure smooth sailing otherwise. What Not to Keep There are also several things you do not want to keep in your wallet. Wallets are a notorious collection point for a surprising amount of revealing information about you and your family. From photographs of your children to identifying information about you. The fewer of the following items you carry in your wallet, the better. Although ideally, you will not carry the following: The idea is that if you meet up with a pickpocket, or lose your wallet, you want the thief or person who finds it to have as little identifying information about you as possible. Digitizing Items It just so happens that most people today are far more security minded when it comes to mobile phones and cellular devices than they are about their wallets. Many of the items you may carry with you can be transferred to digital wallets and stored on your password, fingerprint, or retinal scan-secured, mobile devices. That includes credit card information, passwords to various devices and websites, and family photographs. Keep these items securely locked away from the world by keeping them out of your wallet. What to Do if it is Stolen Once upon a time, a stolen wallet was only a matter of missing money and the hassle of canceling a few credit cards. Today, however, it can be the beginning of a long, drawn-out, nightmare of identity theft and red tape. If your wallet gets stolen there are several things you need to do right away: The better you understand the things you need in your wallet; the better-informed decisions you can make about the items you choose to keep in your wallet. These tips should help.

What Do You Need in Your Wallet?

View Resource What Do You Need in Your Wallet?
Federal law requires banks, investment brokers, mutual funds and other creditors to adopt identity theft prevention programs. This is the Red Flags Rule, so-named because its central feature requires financial institutions to identify certain practices that are indicators, or ‘red flags’ of identity theft. The rule exists as part of FACTA (the Fair and Accurate Credit Transactions Act of 2003), which amended the Fair Credit Reporting Act (Regulation V). Although this is a law geared toward financial institutions and creditors, all businesses may find it beneficial to implement. According to the regulation, an institution’s red flag program must include reasonable policies and procedures for detecting, preventing and mitigating identity theft, and enable a financial institution or creditor to: Overall, the program should be designed to detect the red flags of identity theft in day-to-day operations, take steps to prevent the crime and mitigate its damage. The bottom line is that a program can help institutions spot suspicious patterns and prevent the costly consequences of identity theft for the customer. How to Comply In our introduction above, we talk about how a red flags program must include four basic elements that create a framework to deal with the threat of identity theft. The following points expand on how an institution can comply with requirements of the Red Flags Rule: Simply completing a red flags risk assessment or creating a policy is not enough to achieve the objectives of the regulation. The program must be incorporated into daily business operations and procedures. Having a strong red flags program helps financial institutions ensure customers are protected against identity theft and fraud. The program should have specific features, including appropriate policies and procedures, specific elements related to risks identified, detailed actions to take for incidents that are discovered, and details on how to keep the program current to protect against new threats. By being vigilant and following our procedures that are integrated into our daily operations, we can all help protect against these types of crime to provide a better overall customer experience, and to provide the protection that our customers deserve. Sources Office of the Comptroller of the Currency: https://www.occ.treas.gov/topics/bank-operations/financial-crime/identity-theft/index-identity-theft.html Federal Trade Commission: Bankers Online: https://www.bankersonline.com/regulations/12-222-suppa

Steps financial institutions take to combat identity theft

View Resource Steps financial institutions take to combat identity theft
Maintaining a balance between your work life and personal life was a lot easier in earlier times it seems. Today, however, maintaining this balance is not as simple, since work is almost assured to intrude on your personal life. Advances in technology, the Internet, email, texting, and smartphones keep people constantly connected to the office, making it easy for your work life and personal life to merge. According to the U.S. Small Business Administration (SBA), entrepreneurs tend to be laser-focused on revenue and their bottom line. This focus can lend itself to neglecting certain aspects of their personal lives. Likewise, small businesses with employees might often have a management team that demands 150 percent dedication and commitment from their employees. While these employees are probably hard workers, passionate and dedicated, they need to be able to maintain a work-life balance. Pitfalls of Being Out of Balance Having an improper imbalance between work and life, with work being more heavily weighted, can lead to some pitfalls, including poor health and fatigue. Fatigue Being able to think clearly and work productively might become a problem if you are tired. This could lead to costly mistakes and hurt the company’s professional reputation. Poor Health Stress is known to affect the immune system and worsen symptoms of existing medical conditions. It can also lead to substance abuse. Lost Time with Family and Friends When you are working too much, you may be missing out on important milestones and family events. This could harm your relationships with loved ones and leave you feeling left out. It is hard to nurture friendships when you are always working. Tips for Maintaining a More Balanced Approach Maintaining a healthy balance between your personal life and work life is easier by following the below tips. Track Your Time There are tools you can invest in to track your time. These days, you can track everything from the duration and frequency of meetings to the time it takes to attract and convert sales leads. You can quickly understand the length of time each particular task takes through time-tracking software. This will allow you to estimate the length of time each task will take, allowing you get control and manage your schedule. Manage your Time for the Long Term Construct a timeline of your tasks. You can use Word tables or an Excel spreadsheet to do this or specific computer programs. Enter in dates across the top and enter your tasks down the side. Break down each of your tasks into components. Make sure to add family commitments like birthday parties, holidays, and so forth to remind yourself that you cannot work during these personal event times. Work on Things that Really Matter Too often small business owners spend too much time being busy instead of being productive. This is because they are working on things that are not a priority. Instead, focus on the things that will move your business forward and help you achieve your overall goals. Take the time to scrutinize your daily schedule to max out each hour so that your focus is on the most important tasks. This could require a high degree of structure and planning. Pace Yourself For you to live a healthy, long and happy life and have a productive career, you have to know how to pace yourself. There will be times when you will need to expend all of your energy on work and other times when it will be beneficial to take a break, whether it is for a vacation or personal family time. It is crucial to have self-awareness. This will help you enjoy your journey as well as the destination. Remember, people work to live, they don’t live to work. At least this is the way it is supposed to be. Although it might be overwhelming trying to maintain a proper work/life balance, putting an emphasis in this area is well worth it. A better balance will result in you feeling more content and at ease with all areas of your life.

Maintaining a Work/Life Balance

View Resource Maintaining a Work/Life Balance
If you are like many people, you have been planning and building a nest egg for decades for the moment when you finally reach retirement age. However, have you also considered how you would restructure your budget, to accommodate your needs at retirement? Understanding Spending Limitations Your spending reality will change once you retire. Not only will your income be different, so will your expenses, and the way you fill your time. With much more free time on your hands to fill during the day, it is easy to overspend. You need to do two things before you retire so you can establish better expectations of your spending power and limitations after you retire.
  1. Gather your expenses.

  2. Know your income.
The better you understand your budget and spending habits now, the more prepared you will be to make the appropriate changes when you retire. Now is also an ideal time to assess your monthly expenses and seek out ways to trim the fat. This attitude of slimming down spending will carry over into your retirement to help you budget wisely when the time comes. Adjusting Your Expenses Retirement changes much more than just the number of hours you spend at home each week. At first, it can be a blessing to have nothing to do every day. It does not take long, though, for boredom to set in. You will want to be careful that you do not compensate by increasing your spending in response. You must adjust your expenses to accommodate your new financial reality. That includes things like: The key is to minimize expenses without limiting your quality of life. Other things you might do is take advantage of senior discounts to reduce costs related to dining out and entertainment. Things to Consider Not only are you spending more time at home once you retire. The types of things you are responsible paying for will also change. As you work to create a functional and effective retirement budget, make sure to include a few unexpected twists, such as: In other words, you need to have room in your retirement planning and budget to accommodate a few unexpected expenses along the way. Natural disasters, marital strife, medical emergencies, and more can create chaos within your budget. Putting it All Together for Your Retirement Budget In order to get the most out of your retirement budget it needs to be the following: While there are no guarantees, following a successful budget throughout retirement dramatically increases your odds of financial independence along the way.

Restructuring Your Budget for Retirement

View Resource Restructuring Your Budget for Retirement
Money management skills and financial literacy are two things many adults lament not having a grasp on while growing up. It is a subject that most schools fail to teach. Also, if you are a parent that is economically struggling, you may feel ill-equipped to teach your child about finances. This guide can help you begin your child’s money education early, even before he or she starts school. What is Money? The first step is to teach your child what money is. Not just that it is something people exchange for goods and services; you will need to teach them to understand the value of different values of currency, including coins and dollar bills. Once your child has an idea of the value of money and how it works, teach your child about things that cost nothing, like playing with their friends at home, going to community parks in your town, or playing in the backyard. Then, work on the value of specific items that cost money like food, clothing, toys, and even gas that helps cars take them places. Making Spending Decisions While your child is not nearly ready to hold the keys to the kingdom when it comes to making spending decisions, once your child has an idea of the value of money, it is time to allow your child to make a few small spending decisions. The more practice your child receives making these types of decisions at a young age, the better able he or she will be able to understand the potential consequences of making poor spending choices without getting in over their heads as adults. It is almost always good, though, when you can encourage young children to think critically about money and how they would spend it. Spending Plans Creating spending plans are essential tools to help young children understand where money comes from, where they are spending it, and how it can be used to reach specific goals. The University of Nebraska Cooperative Extension recommends having children answer three specific questions to establish their spending plans:
  1. How much money do they have?

  2. What is their spending goal?

  3. How much money do they need to accomplish that goal?
You can record all the spending your child does each week for three weeks, so your child knows where his or her money is going. Then, you and your child can sit down together and brainstorm a plan that will help accomplish his or her spending goals. Usually, this involves opportunities to earn more money, to save money by spending less, or some combination of the two. Earning Money Unfortunately, most money for pre-school aged children comes, in one form or another, from dear old mom and dad. You can offer an allowance to help them make better financial decisions along the way, as well as opportunities to earn money so they can learn to equate hard work and accomplishments with monetary rewards as well. Since most young children cannot exactly go out and get jobs, you may have to think a little outside the box to help your preschooler learn the value of earning money. While they may still be too young to put these options in place, common options they can begin to learn about, according to The Balance, include: Of course, mom or dad will need to be involved in all these activities, but motivated children can learn invaluable lessons about the rewards of hard work while taking their spending plans to the next level by observing events that bring in extra side money. Takeaways to Help Your Pre-Schooler Learn Healthy Money Management Skills Children are never too young to begin learning the basics of financial literacy and how to handle money. This is how parents can help: Doing these things in a child’s formative years will help them understand the value of money, its importance in modern society, and how they can control their spending rather than being controlled by it.

Things Your Pre-Schooler Should Know About Money

View Resource Things Your Pre-Schooler Should Know About Money
It is more important today than perhaps at any other recent time for children to be financially literate. Unfortunately, financial literacy is not something that gets taught in most schools, and many parents often feel ill-equipped to do so. This guide will help you provide valuable lessons to your grade school child about money. Allowances and Spending Plans One of the most important and earliest lessons that children need to learn about money involves its limitations. You only have so much money, and it can only buy so many items. Allowances and spending plans are ideal tools for teaching them, at early ages when they have safety nets in place, about the importance of both. Allowances teach them to manage their money. You can set the parameters for how they should use their money and how much those allowances should be. Some parents prefer kids to use them for recreational pursuits. At young ages, that may be the best route. As they mature and their spending habits evolve, you can add other parameters (i.e., clothing, cosmetics, personal care items, food or entertainment). Spending plans help children learn how to use their limited funds and allowances to help them accomplish specific goals. They teach them about spending wisely and staying within their means each month while also setting some money aside for items that are important to them. Being Responsible With Money While financial responsibility is often tricky for grade school children, mastering this skill, at this point in their lives, helps them set the stage for impressive money management skills and techniques as they age and find themselves making essential decisions about their spending. Concepts to teach here include: Small things like these teach young children greater responsibility, at early ages, than many college students have upon graduation. Saving and Investing Teach them about the time value of money, how interest works, and the importance of saving and investing money so their money can grow. You especially want your child to understand the concept of compound interest. Financial gurus often list compound interest as the most important thing to teach children about money. As far as saving and investing lessons go, you have to keep it as simple as possible to keep their attention and give them all the critical details. Start with the basics, such as: In all of this, be honest with your children about your own experiences and what you wish you had known and understood at their age. Comparison Shopping Most grade school children have a pretty basic set of wants and needs. Some have specialized interests or want at least one big-ticket item at any given time, such as a new bicycle. Teaching your child to comparison shop for that big-ticket item will help them get that item faster, understand that prices differ from one location to the next and that investing their time and effort can help them spend more effectively. Putting it all Together for Greater Grade School Financial Literacy At the end of the day, you want to lay the foundation for your child to face fewer financial struggles as an adult. Teach your child the basics of things like: Most importantly, allow your child to practice the valuable lessons you are teaching. Doing these things will help your child develop exceptional financial skills that will carry over into adulthood.

Things Your Grade Schooler Should Know About Money

View Resource Things Your Grade Schooler Should Know About Money
The Balance, a personal finance website publisher, recently reported on the alarming rate of medical bankruptcy in the U.S., stating that 643,000 Americans face bankruptcy each year as a result of medical costs. One thing that was shocking about the information gleaned from the many studies conducted on the relationship between high medical bills and bankruptcy is the fact that people who have health insurance are three times more likely than those who do not to file bankruptcy related to healthcare costs. The hypothesis is that the actual protection provided by the health insurance was considerably less than expected once copayments, deductibles, and excluded fees and expenses were added up. Others found their insurance denied claims or excluded specific services, hospitals, or physicians. For all these reasons and more, it is more important in retirement, as you adjust to life under Medicare coverage, to consider supplemental healthcare coverage and protect the nest egg that funds your retirement and avoid overwhelming medical expenses that could cripple your retirement budget. What is Supplemental Health Insurance? Some refer to supplemental health insurance as a type of “gap” insurance. It is designed to plug in holes in your Medicare coverage by filling in the gaps. What this means is that supplemental health insurance helps to pay for the expenses your Medicare insurance doesn’t cover. This includes things like: You might not realize it at first glance, but these expenses can add up quickly, and things like deductibles reset every year. The way supplemental policies for Medicare insurance work is that you pay a monthly fee for the insurance and you get to eliminate the additional debt. Is supplemental health insurance good for everyone? There is no such thing as one-size-fits-all. Every home, family, household, and individual is different. While working and earning a living, a supplemental policy may not be critical. However, that takes on a different relevance once you retire, especially if you are using Medicare. The other thing to realize is that there are different types of supplemental or “Medigap” insurance policies available. AAA reports that there are ten different types of Medigap policies, each one offering different levels of coverage and types of coverage. That can keep things more than a little confusing on the consumer end. It also means you need to think about whether now is an ideal time to invest in supplemental health insurance. Those who are just retiring and do not yet have significant medical expenses may not be ready to invest in additional protection. However, your health status is something that can change on a dime with little notice. Many people feel it is necessary to invest in supplemental insurance for their Medicare coverage from day one. When Should You Consider Supplemental Health Insurance? One key consideration when choosing supplemental health insurance involves whether you are enrolling in Medicare Part B. If that is the case, you should strongly consider signing up for additional Medicare insurance within the first six months of enrollment in Medicare Part B. If you do not purchase supplemental health insurance during this six month grace period, your additional coverage options may be severely limited. Most importantly, failing to do so within the first six months of Medicare Part B coverage eliminates the “guaranteed issue” aspect of supplemental health insurance, meaning you may not be able to enroll at all after the six-month window closes. In other words, the ideal time to purchase supplemental health insurance, if you suspect you will someday need it, is within the first six months of enrolling in your Medicare coverage. Otherwise, you run the risk of being unable to do so at a later date. Key Details about Supplemental Health Insurance With so many bankruptcies every year over mounting medical costs, the average retiree cannot afford to skip out on supplemental health insurance protection. Just make sure you get the coverage most likely to meet your needs today, and as they evolve, best.

Supplemental Healthcare Coverage in Retirement

View Resource Supplemental Healthcare Coverage in Retirement
Almost anytime you book travel online or over the phone, websites or agents will ask whether you would like to purchase travel insurance for your trip. The pitch for travel insurance is usually a hard sell. Companies warn that failure to purchase travel insurance could leave you responsible for cancellation fees and other expenses. The reality is that most people are not sure whether it is necessary or not. They may add it on blindly (or fail to buy it) without fully understanding what it offers or how it might impact their travel plans. It is essential to weigh the pros and cons of purchasing travel insurance for your particular situation since there are many factors to consider and exclusions to take into account. What is Travel Insurance? In a nutshell, travel insurance is designed to protect you, the traveler, from financial losses that could occur during your travel. However, only certain situations and benefits are covered, plan coverage varies, and there are many exclusions. When Should You Take It? One of the prime times to consider travel insurance is when you are traveling out of the country. When traveling abroad, choose a robust travel insurance plan and understand the intricacies of offerings for things like: Even in these situations, you might want to check to see if you have coverage and protection elsewhere, such as through your credit card provider, first. When Should You Skip It? The short answer to this question is “some of the time.” That is the case when traveling domestically on a short trip where the cost of the trip is minimal. Another time to skip the travel insurance is when your credit card company offers protection already. No one wants to pay for the same service twice. More importantly, most credit card companies provide more robust coverage than the average add-on insurance plan when booking flights and hotels. Also, some airlines offer no change fees, which allows you to change your flight without incurring a cost to do so. If you book your trip through an airline offering this perk, then considering skipping travel insurance for this portion of your itinerary. Further, many of the items “covered” by flight insurance are available to airline passengers automatically. Some of them allow airlines to get out of what they owe to passengers, according to Smarter Travel. Lastly, consider the exclusions in the travel insurance plan. A recent NBC news report states that travel insurance protection is actually very thin, and the exclusions make the coverage somewhat sketchy. Those inclusions include things like delays caused by the following common reasons for flight delays and/or cancellations: It also excludes things considered pre-existing conditions, including pregnancy and childbirth or “reasonably foreseeable” problems resulting in delayed or canceled flights from protection. Considerations Concerning Travel Insurance The next time you are faced with the question of travel insurance when booking your travel, consider these points before clicking to buy. Most of the time, the answer to these questions will answer your questions about the necessity of travel insurance.

Should You Take the Travel Insurance?

View Resource Should You Take the Travel Insurance?
The weeks and months leading up to your maternity leave are as exciting as they are terrifying. You have spent many months preparing for the changes to take place in your life and your home. Now, it is time to prepare financially for the challenge of extended time off work for maternity leave. Understanding Your Health and Maternity Benefits For the most part, companies only provide brief maternity leave periods. With an effective plan, though, you can have plenty of time to enjoy your newborn before returning to work. However, it would be best if you began by understanding the health and maternity benefits your employer provides. Work with the HR representative in your company to understand what your health insurance and maternity benefit your organization provides. Specific questions you want to ask include:
  1. How much of your health insurance deductible have you already paid for the year and how much remains?

  2. Are you responsible for co-payments or coinsurance? If so, how much?

  3. What is your maximum out-of-pocket for your specific insurance policy?

  4. Will you be responsible for additional health insurance while on leave?

  5. Does your organization offer some paid maternity leave? If so, how much? The U.S. does not require businesses to offer paid maternity leave through the Family and Medical Leave Act (FMLA) requires most businesses to offer up to 12 weeks of unpaid leave after having or adopting a baby. Some organizations do offer paid maternity leave, though.

  6. How many vacation days have you accumulated? Your company may require you to use your vacation days and PTO before using your FMLA benefits, which allows you to get paid for some of that time.

  7. Do you have a short-term disability plan through your company? If so, does it provide for income during maternity leave, and how much?
You should note that some companies require employees to repay health insurance payments they covered during your leave if you do not return to work. The better understanding you have of your income and obligations during this exciting time, the better prepared you can be for creating a savings plan and budget for the time leading up to the big day and after. Saving and Budgeting Hopefully, you begin this process early in your pregnancy and have a few months to prepare for your upcoming maternity leave. The sooner you start making preparations and saving money, the better it will be for your budget after the baby is born. Unfortunately, this all comes at a time when many expenses are cranking up as you prepare your home for your little one’s arrival. The key is to reduce expenses during this fantastic time in your journey while making sure you have the necessities in life covered, without going into unnecessary debt. Knowing your finances are in the right place will make this vital bonding time with your baby more enjoyable and relaxing. Creating a Plan that Will See You Through Your Leave Starting early and creating a plan that carries you through your maternity leave allows you the ability to enjoy your full maternity leave without worrying about keeping the lights on or going into debt to do so.

Making Financial Preparations for Maternity Leave

View Resource Making Financial Preparations for Maternity Leave
Your first paycheck can be quite exciting. However, before you open your pay envelope and look at the total, you need to have a plan in place to maximize your income and get the most mileage from your money. The advice below will help. Your First Paycheck That first paycheck represents real changes in your life. Whether this is your first job in high school or your first job as an “adult” after graduating from college, it is essential to make your money matter as much as possible by starting impeccable spending and saving habits from the very beginning. The decisions you make with this and subsequent checks will have a direct impact on your attitude about money and your ability to manage it effectively. Keep these things in mind for your first paycheck, and every paycheck that follows. Understanding Your Deductions and Taxes While most people expect to see taxes taken from their checks, many are surprised by the sheer amount of withholdings from their checks for tax purposes. Initial tax withholdings include: Some cities and states add their taxes into the mix for even higher withholdings. Depending on where you live, those additional taxes can feel painful coming out of your check before you ever see your money. Do not forget to notice other withholdings from your paycheck such as 401K contributions, medical insurance fees, HSA (health savings account) deposits, and the like. Once you understand how much of your check is left over after tax withholdings, you can build a better budget that takes your take-home income into account, allowing you to pay your bills each month and set aside some of your income for savings. Budgeting Budgeting is one of the most important things you can do once you are out on your own and making money. Learning to effectively budget allows you to live within your means without going into unnecessary or unwanted debt. It also helps you understand your spending habits, where you can make changes, and sacrifices you may need to make to save an adequate amount of money each month. The key to effective budgeting is to do all the following: When you create a budget that does all these things, it is easier to stick with your budget and helps you achieve your financial goals faster. Automated Savings and Transfers The more streamlined you make your efforts to save money, the better your efforts to do so will be. One of the best tools at your disposal is “automation.” That includes automated bill payments, as well as automated savings and money transfers into your savings. When you automate the process, you do not have to think about it or remember to do it each month. More importantly, if you have the money set to leave your account as quickly as it enters, you also do not have an opportunity to spend it on something else before you “pay” your savings account each month. There is a mental component to this as well. If you do not ever hold the money in your hand, it is harder to miss. By automating the process, the funds targeted for savings are not even around to tempt you before they are routed off to their intended destination. Putting Everything Together for Easier Money Management While your first paycheck is exciting, and most people want to rush out and enjoy the fruits of their hard work, the following advice can help that first paycheck keep on paying you long after the initial deposit has been made: These simple steps will help you build wealth even at a time when your paychecks feel so small.

First Paycheck? Do These Things First

View Resource First Paycheck? Do These Things First
If you are like most parents with children in high school, you are so busy trying to stay ahead of expenses that you do not have time to think about the opportunities your child’s high school offers to educate them about money. Financial literacy is one of life’s primary skills needed for success. Yet, according to the 2017 National Report Card on State Efforts to Improve Financial Literacy in High Schools, issued by the Champlain College Center for Financial Literacy, only five states received an “A” for their efforts to teach financial education, and an astonishing 27 states received grades “C”, “D” or “F”. For most, then, that leaves the responsibility for educating high school students squarely on the shoulders of today’s parents. Unfortunately, some parents may even feel they are entirely unqualified to teach on the subject, due to their money struggles to take on the mantle. Making Financial Decisions One way you can help educate your child about money and finance is to allow your child to make a few financial decisions on his or her own. While you are not handing over the keys to the bank account, you can set your teen up with an account of his or her own while you hold the reins, set spending limits, and monitor transactions. That ends the constant run to mom or dad asking for funds and forces teens to make financial decisions based on the money that is available to them. Making Money While some parents would prefer their teens not hold jobs while going to school so they can focus on making better grades or participating in extracurricular school activities, they do need opportunities to make money on their own to learn about budgeting and finances. Aside from part-time jobs where they earn regular wages, other opportunities exist for teens to make money that will not interfere with their education such as: There are all kinds of opportunities available to teens, including some part-time jobs that only require a few hours of their time each week. Budgeting Basics Sit down and work with your teen to create a budget for their essentials. This includes the things that are necessary for them to get through their week that aren’t food, such as: Give your high school student a strict budget to work with every month with the reminder that he or she needs to plan for larger purchases and may need to sacrifice smaller purchases to make room for more significant expenses along the way. It also allows them to see the value in shopping sales, comparing prices, using coupons, and ditching name brands in favor of more cost-effective products in a pinch. Banking Basics Setting high school students up with student accounts from their parents’ banks allows parents to monitor their activity with a safety net in place. That prevents them from getting in over their heads while giving them an invaluable education in how to operate their bank cards, balance their accounts, and manage their money. Keep these things in mind, though to make it a positive learning experience. Working with your teen to make sure he or she understands banking basics now will help prevent big banking mistakes as adults. Send Your High Schooler into the World with Solid Financial Skills Please do the following to help your teen develop financial literacy before they need to put it into action on their own. The thought of sending your high school student out into the world is thrilling and terrifying at the same time. Follow these critical steps so you can be confident you’re sending your teens into the world with the education they need about money.

Things Your High Schooler Should Know About Money

View Resource Things Your High Schooler Should Know About Money
Financial literacy is one of the primary life skills that some argue we fail to teach adequately in middle schools today. That leaves the responsibility for educating middle school students squarely on the shoulders of today’s parents. Many of these parents feel they are entirely unqualified to teach on the subject, due to their money struggles. Whether you feel like you are barely managing to manage your money or that it is ultimately managing you, only you can help your children avoid similar struggles as they enter the workforce and begin managing their finances. These are a few vital lessons your middle schooler needs to know – as a foundation for greater financial literacy later in life. Earning Money Your child needs to understand where the money comes from and that it is mostly an exchange of one thing for another. Earning money comes mainly from the fruits of their labor. Whether they labor mentally or physically, there is work required to make money. Once they understand this fundamental fact and see it in action in their lives, they can begin to comprehend its value on a different level. It is only then that they begin to correlate the value of the things they want to buy with the amount of time and effort needed to earn money to do so. Spending Money Let your middle schooler help with grocery, food, and clothing shopping. It gives real-world experience for understanding how much things cost. Consider helping your child get real work experience by doing the following: By the end of the shopping trip, your child will have learned a valuable lesson about the costs of groceries for a household and have a new appreciation for what you go through each week to keep food on the table. More importantly, your child will understand the process of spending money on essential items, like food and groceries. Saving and Investing One of the most challenging lessons to teach middle school students in today’s consumer-driven society is the value of saving rather than spending. It is hard to instill these values when all around them, people are buying the next new thing to hit the market as soon as it comes out. However, teaching them young to put half of their earnings into savings allows them to watch their savings snowball, and encourages them to prioritize their spending, so they only spend on what matters. Once they have a sizable amount saved, you can show them the value of investing and how that can kick their savings efforts into high gear! Borrowing Money Borrowing is a tricky issue to tackle with children. Some middle school children will struggle with the concept that money borrowed must be repaid. However, requiring your middle school child to return borrowed money fosters an even greater appreciation of the “contract” whether written or implied, of borrowing money and the importance of repaying it promptly. You might also want to consider creating penalties, late fees, or “interest” for your child if the money is not paid back as agreed. Takeaways You Can Use to Build Your Child’s Money IQ Teaching middle school children valuable lessons about money is something you can do, even if you are struggling with money yourself. Use the advice above to help your middle schooler handle, manage, borrow, and spend more responsibly.

Things Your Middle Schooler Should Know About Money

View Resource Things Your Middle Schooler Should Know About Money
Once upon a time, it would have been the ultimate taboo to ask for cash as part of a wedding gift registry. Back in the day, couples were starting out and often establishing their first households, so they needed everyday items as gifts. Today, people are getting married later in life. They have usually already set up living spaces, apartments, or even bought a home before taking a walk down the aisle. So, it is less common for them to need the essential registry items of yesterday and to benefit more from gifts that involve cold hard cash. Fortunately, it is not as uncommon today, as you may have been led to believe, for couples to ask for cash in place of wedding gifts. In fact, the wedding planner site ‘The Knot’ has listed ‘asking for cash’ as one of its top wedding trends for 2018. Proper Etiquette Of course, there are still many wedding guests who may be put off by cash gift requests. One thing personal finance website Bankrate recommends is that you tell your guests what the cash will be used for when doing so. That allows them to feel like they are contributing to a more substantial gift rather than merely giving away money — especially if this gift involves something for the couple’s future, such as a down payment on a home, a honeymoon trip, a pet adoption, kitchen appliances, or new furniture for the bedroom. The more specific you can be about how you will use the money, the better. Oddly enough, in many cultures, it is traditional to give gifts of cash. It has only recently become a trend in the U.S. There are things you can do that will make it feel less awkward. Cash Gift Registries Cash gift registries are excellent tools to help you ask for cash without feeling awkward about doing so. Before you dive in, though, be aware of (and communicate) the fees that may be involved for you or your gift-giving friends, family, and wedding guests. Registries to consider include: With more wedding registry sites like these cropping up all the time, it is easier than ever to let your guests know that cash is a welcome alternative to another toaster or more towels. Putting it Into Perspective Ultimately, it is your big day, and the people who attend your wedding are your guests. Registries offer an opportunity to ask for things that are important to you as a couple or that can help you acquire those things. Few items work better than cash for both objectives.

Building a Cash Wedding Registry

View Resource Building a Cash Wedding Registry
When you have a long list of holiday gifts to buy, it can really pay off to spend time looking for deals on those gifts. Every deal you find is more money you get to keep in your pocket or spend on someone else. However, finding the deals and knowing when to buy can take some of your time and attention. Start preparing now so you are ready to shop when the deals start rolling in. From Black Friday to Cyber Monday It used to be that Black Friday, the day after Thanksgiving, was the biggest shopping day of the holiday season. Stores offered huge sales to bring customers in the door and, for many stores, bring their calendar year sales from the red into the black. Online merchants have focused their attention in recent years on Cyber Monday, offering great deals on the Monday after Thanksgiving. In the last couple of years, though, stores have expanded their sale window to extend through much of the week surrounding Thanksgiving. Deals start popping up the day before Thanksgiving, on Thanksgiving afternoon and evening, and during the weekend between Black Friday and Cyber Monday. Therefore, you’ll need to be on alert for the whole week to really get the best deals on your holiday purchases. Strategies for Maximizing Your Savings Through all of the holiday shopping frenzy, maintain a big-picture perspective on your spending. Yes, you might be able to get a great deal on an item, but if that item still costs far more than you were planning to spend on a gift for that recipient, you may be better off skipping the purchase. Sometimes a thoughtful or homemade gift is just as good, and far less expensive.

Find the Best Holiday Shopping Deals

View Resource Find the Best Holiday Shopping Deals

If you are starting your search for a home and considering a home loan, you should use this handy financial tool to first calculate how much you can afford.

Your ability to obtain a loan for a new home purchase is based on a number of factors. Lenders typically make lending decisions based on three key ratios: (1) Loan-to-value ratio (LTV), which represents the ratio of the loan amount to the value of the home. Lenders ideally want to see an 80% LTV, meaning a 20% down payment is preferred; (2) Housing Ratio. which represents the percentage of your total income that goes towards housing expenses; and (3) Debt-to-Income Ratio, which represents your total debt payments, plus housing expenses as a percentage of your total income. Lenders will typically look at any of these ratios as constraints, meaning once any of these ratio limits is reached, the amount of the loan will be capped.

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Home Affordability

View Resource Home Affordability
Mobile phones are everywhere now and are no longer just for making calls and sending texts. People use their phones for everything from navigating a new city to watching TV, getting work done, and managing calendars. It is only natural that over the course of the last decade, many people have come to use their phones more often than they use their wallets when making a purchase. There are several major types of mobile payments, each with a different method of making the payment and different overall purpose or use. Simply speaking, online mobile payments are when you use your mobile device to make a payment via an app or website. You might use your credit card or bank account information as the actual payment method, which you need to enter in the app or website if you have not previously saved it there. Direct carrier billing is another type of mobile payment, but rather than using a credit card or bank account; the charges are added to your phone bill. Buying apps and making in-app purchases tend to be the most common types of direct carrier billing. Depending on your mobile phone carrier, you may also be able to purchase digital content, like TV shows or movies, through direct carrier billing. SMS payments allow you to send money to someone by entering their phone number in a payment app. The recipient gets a text notification to their phone and, if they have not previously done so, must designate an account to receive the money. It could get deposited into a bank account, PayPal account, or another type of digital account. Mobile point of sale payments allows vendors to accept payments from physical credit cards swiped through a reader attached to a mobile device. The touch screen of the device itself displays the details for the buyer to confirm the purchase. This method is often used by small businesses that do not want to use a stationary point of sale console at a store, but instead receive payments at different locations and want the flexibility of accepting credit card payments from anywhere. Square, PayPal Here, LevelUp, and Shopkeep are some of the biggest mobile point-of-sale providers. Mobile wallet payments using NFC (near field communication) are arguably the most exciting type of mobile payments. They allow users to make purchases in stores using their phones, rather than needing to use cash or a credit card. Payments are typically made through the terminal that processes credit and debit card payments, but rather than swiping a card, you only need to bring your phone in close proximity to the terminal and confirm on your phone that you want to make the payment. Choose from several mobile wallet options, depending on the type of device you have.

The Basics of Mobile Payments

View Resource The Basics of Mobile Payments
A credit card can provide you with the financial freedom you need to make larger purchases and quick buys when you do not have cash handy. However, credit cards can also saddle you with mountains of high-interest debt. The key to using credit wisely often lies in choosing the right credit card for your needs. There are a host of factors that you should consider before signing up for a credit card. If you study your options carefully, the odds are higher that you’ll make the right credit card choice. Interest rate The most important number to know when it comes to a credit card is the card’s interest rate. Usually expressed as an annual percentage rate, the interest rates on most consumer credit cards range from 12 percent to as high as 25 percent. The lower the rate, the better. The interest rate kicks in when you do not pay off your credit card’s balance each month. Moreover, if your card’s interest rate is high, the amount of charged interest can soar quickly. Consider that the Federal Reserve Board estimates that a credit card balance of $4,000 with an interest rate of 18 percent will take 94 months to pay off if a minimum monthly payment of $80 is made each month. During this time, you’ll pay $3,448 in interest charges on that $4,000 debt. That does not seem like a good deal because it is not. Carrying high balances on your credit cards can cost you thousands of dollars. That is why it is important to find the lowest interest rate possible if you are likely to carry a monthly balance on your credit cards. Of course, if you pay off your card’s balance every month, interest rates will not matter. They only kick in when you carry that card balance from one month to the next. Penalties Credit card companies often charge a host of fees. It is important to study the paperwork that comes with your credit card so that these fees do not surprise you. Your card might charge an annual fee that you’ll have to pay every year. These fees vary but can range from $20 to more than $100. Some cards will charge an application fee when you apply for them while others will charge a set-up fee after you open a new account with them. Cash advance fees can add up, too. Most cards will charge you every time you use them to get cash. That fee might be a flat fee of, say, $5 or a percentage of the amount of cash you access with your credit card. Some cards might even impose a credit-limit-increase fee if you ask for and obtain a higher credit limit. All cards will charge you penalty fees if you pay your bill late or make purchases that put you over your credit limit. These fees, too, will vary, with some as little as $15 and others $40 or more. The real penalty with paying your credit card bill late, though, often comes in the form of a higher interest rate. Read your card agreement carefully; some credit card companies reserve the right to boost your low-interest rate to one as high as 29.99 percent if you do not pay your bill on time. Moreover, these same companies might keep your rate at the penalty level indefinitely. Don’t forget to keep these fees in mind when selecting a credit card. Too many fees and your low-interest-rate credit card might not seem like such a bargain after all. Special offers Some credit cards come with special offers and incentives. Cash-back cards, for example, are attractive today. These cards will refund a percentage of the purchases you make with them. You will then receive those dollars — usually credited to your credit card account — at regular intervals. Some cash-back cards are category specific. They’ll provide you 5 percent cash back every time you use your card to buy groceries, fill your car with gas or make hotel reservations. Other cards provide a blanket cash-back amount, awarding you a percentage of cash back with every purchase that you make with your cards. You can also choose from several rewards cards. These cards provide you with rewards points for every purchase you make with them. After your points add up to a high enough level, you can cash them in to buy electronics, book hotel reservations or purchase restaurant gift certificates. Other rewards cards let you accumulate airline miles with every credit card purchase you make. After you gather enough miles, you can turn those miles into free flights to destinations across the globe. Rewards cards are enticing. However, they can also be dangerous. Make sure that any rewards card for which you sign up doesn’t come with high fees or interest rates. Higher rates and fees will negate any rewards or cash-back bonuses you receive. Make sure not to overspend with these cards in an effort to rack up more rewards or cash-back bonuses. Again, the amount of debt that you acquire can more than negate the rewards they provide. Credit card shopping Shopping for the right credit card is no easy task. Fortunately, it is easier than ever to shop for credit cards today thanks to the Internet. You can quickly access the customer agreements of a wide variety of credit cards online. You can also quickly access the interest rates, fees and incentives that these cards offer, also online. Remember, though, that even cards with advantageous terms can lead you to financial trouble if you do not use them correctly. It is important to not overspend with credit cards. Credit card debt that comes with high interest rates can make that debt spiral out of control quickly. If you find that you need help with your credit card spending, consider signing up with a legitimate licensed debt or credit counselor. Such a professional can help you uncover the reasons for your overspending ways and draft strategies to combat them.

Choosing a Credit Card

View Resource Choosing a Credit Card
The perks that come with some credit cards can be very rewarding if you use them correctly. Applying for a couple of good cards that have a reward system in place can get you things like free hotel stays, free flights, cold hard cash, and more. These credit card reward programs can be so good that often people will apply for a bunch of cards all at once to take advantage of them, racking up the points to earn frequent flyer miles and other perks. Types of Reward Cards The most popular types of credit rewards cards involve earning points, receiving cash back, redeeming for gift cards and merchandise, and receiving discounts. Points This type of credit card assigns you with a certain number of points for every dollar you spend. Typically, it falls under a 1:1 ratio with certain categories offering you extra points. You can redeem these points for different types of rewards including dining, cash, and travel. These point systems can be complex since you are not working with actual dollar amounts. Point conversions can sometimes be perplexing and tricky in some cases. Cash Back Cash back reward cards are fairly common and popular. According to a recent survey, 63 percent of the people surveyed chose the cash back option. While each program will have its restrictions and specifications, the main concept of this reward system is to offer you a percentage (usually between 1 to 6 percent) of cash back on the purchases you make throughout the year within a certain category. There are usually annual limits attached which mean you might not be getting the high percentages you think you are. There can also be a lot of harsh restrictions attached to them, which are sometimes even rotated. That can make them confusing. Some of the popular cash back categories include spending for: Redeeming Points for Gift Cards/Merchandise Gift cards are a highly functional and convenient option and in some cases, credit card companies partner up with retailers to offer you other types of discounts in addition to gift cards. This can provide you with even more savings. Discounts This is your basic discount reward program where you can cash in your rewards to obtain discounts on different services and products. Best Tips If you are looking to make the most of your reward programs, there are some tips you should follow which include: You should stay up-to-date on all the latest deals to maximize your reward perks. Credit card companies often launch new cards, change their bonuses and remove old programs on a continual basis. Being Responsible and Wise with Credit You can get much value from credit card reward programs when you use them wisely and responsibly. You should always pay your balance off every month to avoid those interest rates and late fees. Choose rewards that suit your lifestyle preferences. For instance, receiving airline miles would not do you much good if you do not travel much or like flying in airplanes. Make sure you research all reward programs and align a program with your goals, lifestyle and brand/vendor preferences. Also, stay in budget and do some comparison shopping when selecting reward cards. When you get right down to it, applying for a couple of good reward cards and using them wisely will help you roll in the perks. Just stay on top of the best deals and pay your balance each month and you will position yourself to maximize the rewards you get from your credit cards.

Maximizing Credit Card Rewards

View Resource Maximizing Credit Card Rewards

When making a major purchase, using a home equity loan or line of credit is an alternative to financing offers often provided by a seller or manufacturer. In such cases, buyers often have the option of taking the seller-provided financing offer or a rebate on their purchase. Taking the rebate and using the equity in your home may provide a better alternative to the seller financing.

Using Home Equity for a Major Purchase

View Resource Using Home Equity for a Major Purchase
If you are in the market to buy a new home and have less than a 20 percent down payment, you are usually required to buy private mortgage insurance. Overview of PMI Private mortgage insurance (PMI) is a mandatory mortgage insurance you have to pay when you take out a conventional loan. PMI protects the lender in the case you cannot make your mortgage payments. The lender arranges the PMI, and private insurance companies provide coverage. It is usually required if you take out a conventional loan, but you have a less than 20 percent down payment of the purchase price of the home. It is also required if you are refinancing your house, but you do not have at least 20 percent equity in your home. PMI typically costs between 0.5 percent and one percent of the full loan on an annual basis. Therefore, if your loan is $150,000, you could be paying as much as $1,500 a year (or $125 per month) in private mortgage insurance — presuming a one percent PMI rate. Avoiding PMI There are several ways to get around PMI. Sometimes lenders will offer conventional loans that don’t require PMI if you have a small down payment. With these loans, you may pay a higher interest rate, which can often be more expensive than the PMI itself. That depends on several factors, including how long you intend on living in the home. Not paying PMI and paying more in interest rates could affect your taxes, so it is a good idea to talk to your tax advisor before going this route. Another option you have if you have a small down payment is taking out a different loan like an FHA loan. Loans like this could end up being more or less expensive than a PMI required conventional loan depending on your down payment, credit score, general market conditions, and lender. The best way to avoid PMI is to save up your money until you can put 20 percent down on the house. PMI is not required if you pay the 20 percent down. Paying the 20 percent may also lower your interest rate. Getting Rid of PMI Once the principal balance of your loan drops to 80 percent of your home’s original appraised value, you can ask to have the PMI canceled. Note that you will have to be current on your loan once the balance reaches 78 percent to get the PMI removed. The steps you can to take to cancel your PMI sooner include:
  1. Refinance: To have PMI removed, you will need at least 20 percent equity in your home. If home prices in your area have been noticeably increasing, you will have built additional equity in your home. Refinancing with a better loan-to-value may put you past the 20 percent threshold.

  2. Have your home appraised again: To see if you now meet the 20 percent equity threshold, some lenders may allow for a new appraisal rather than going by the original sales price.

  3. Make prepayments on your loan: Even small payments a month added to your regular mortgage payment can help you get your loan balance down quicker.

  4. Remodel: Consider adding a pool or an additional room to increase the market value of your home. Then ask your lender to use the new value figure to recalculate your loan-to-value ratio.
When the market is experiencing near record low mortgage rates, refinancing will not just eliminate your PMI but will lower your interest payments each month as well. You can still buy a home even if you do not have 20 percent down. Conduct research to learn more about how PMI works and when you will be able to get rid of yours.

About Private Mortgage Insurance

View Resource About Private Mortgage Insurance
The convenience of plastic, whether in the form of debit or credit cards, is hard to beat. They both offer advantages, yet have significantly different features and uses. Here is what to consider when deciding if you should make a purchase using a credit card or debit card. Credit or Debit? What’s the Difference? Although banks and credit unions issue both debit and credit cards, they are similar in that they look alike and belong to the same networks, such as Mastercard or Visa. However, there are important distinctions between the two surrounding debt. A credit card is based on a loan from the issuing entity and represents debt to you — the card user. On the other hand, a debit card is self-funded by you through deposits made to the bank or credit union issuing the debit card. In other words, a credit card forces you to incur debt, while a debit card requires you to pay for purchases of goods and services with money you already have. Advantages of Credit Cards Credit cards offer many advantages to you as a consumer. Although different cards may have different sets of terms and conditions, those advantages may potentially include:
  1. Building up your credit score, which increases your chances of qualifying for other loans, such as a mortgage.

  2. The ability to borrow funds to make purchases if you do not have the money available to pay the entire balance amount when the monthly bill arrives.

  3. Taking advantage of card incentives, like the ability to accumulate reward points, airline miles, or receive cash back when making purchases.

  4. Receiving the card’s additional warranty coverage on merchandise above what is offered by the product manufacturer.

  5. Getting insurance waiver coverage for car rentals, which could otherwise be costly if insurance is purchased through the rental agency.

  6. Having reduced liability for lost or stolen cards, provided that the customer reports the event to the card issuer promptly.

  7. Possessing the ability to dispute credit card purchases with the merchant, such as for damaged, stolen or lost goods during shipping.
Advantages of Debit Cards Similarly, debit cards also offer distinct advantages to you as a consumer which may potentially include:
  1. Enjoying no annual fees associated with a debit card.

  2. Reducing the chance that you may fall into debt, since purchases are fully paid for out of your account balance.

  3. Avoiding interest charges since you are drawing on your own savings balance.

  4. Having money taken out of your account automatically for each purchase, so it is easier to use.

  5. Setting up automatic transfers between accounts.

  6. Withdrawing cash from an ATM or with some retailers at the point-of-sale.
Like credit cards, terms and conditions may be different between debit cards, so it is crucial that you understand which of these advantages apply to your specific card and which do not. There’s no “best” card for everyone. Instead, the best card type depends on your unique financial situation, past credit history, comfort with incurring debt, projected use for the card, and what, if anything, you’d like in return for using it.

Debit or Credit Card?

View Resource Debit or Credit Card?
The recent tax law changes have many homeowners and home buyers more than a little nervous about real estate purchasing and borrowing decisions and how they will affect your taxes. It is a reasonable concern, but one that is unnecessary for many who already have home loans and quite a few others interested in obtaining them. Like most laws, there is a great deal of confusion about what it will mean for you. Below are a few essential details you need to know. Impact of Tax Cut and Jobs Act of 2017 First, the legislation grandfathered in existing home mortgages, so the new law does not affect the mortgage interest deduction on these loans. Many homeowners are wiping more than a little sweat from their brows over this news. There are changes in store for new mortgage loans, though, some of which might be unpleasant for home buyers in high-demand markets. Second, while these deductions for existing mortgages remain unchanged, new home loans come with limits to the allowable home mortgage deduction to loan values of $750,000 or less. New Rules for Home Equity Loan and Line of Credit Interest In the past, many homeowners have taken advantage of the tax deductibility of home equity loan or line of credit interest by using the proceeds from those loans for a variety of purposes. Before the new tax law, how you used the loan proceeds did not matter. The interest on the loan was tax deductible. Under the new law, taxpayers can still deduct interest paid on home equity loans, but with stipulations. If you use the funds from your home equity loan or line of credit to upgrade or improve the property that secures that loan, for instance, you can continue to deduct mortgage interest from the loan. However, if you used the loan funds for such things as paying for a vacation, consolidating credit card debt, paying for college expenses or as alternative funds for the purchase of a new car, the interest is no longer deductible. Previously, you had been allowed to deduct the interest you paid on up to $100,000 in loans and lines of credit, regardless of how you used the money. That has changed and is true for both loans that preceded the new legislation and those that come after. What it Means to You Of course, homeowners who are interested in knowing how they might use the equity in their home moving forward, have a few new things to keep in mind.
  1. The new ceiling, or limit, for combined mortgage and home equity or second mortgage deductions sits at $750,000. That sum that is reduced considerably from the previous limit of $1.1 million.

  2. How you use the money matters. If you are getting a home equity loan or second mortgage to make improvements to your home, then it is acceptable to deduct those interest payments. However, if you are using them to fund vacations, purchase cars, pay for your kids to go to college, or even to pay off medical bills or credit cards, then you receive no deductions for mortgage interest paid.
The bottom line for you, as a consumer and homeowner, is that you are only able to use the funds from the home equity to reinvest in the home. That can include a variety of actions, such as: You can choose to do any of these things that will add value to your home as long as it falls within IRS rules defining capital improvements to the home and does not exceed a combined total indebtedness that is greater than $750,000. You should also know that the new rules concerning home equity lines of credit may be beneficial to you. Under the old law, there was a $100,000 cap for home improvements. You could deduct no more than the mortgage interest on this amount, regardless of how much you paid for your updates and renovations. Under the new law, it can be any amount up to the limit for the combined total, which is $750,000. That means if your mortgage is $500,000 and you completed $250,000 in renovations, you can deduct the interest on the full amount of your mortgage and your home equity loan. One final note: As IRS regulations and guidance for the Tax Cut and Jobs Act are still being reviewed and issued as of March 2018; taxpayers should monitor the IRS’s Tax Reform page and work with their tax accountant as needed.

What Now for Home Equity?

View Resource What Now for Home Equity?
You’ve moved your startup from a dream on paper to an office. Now you need money to pay suppliers, market your products or services, and pay the staff. Alternatively, perhaps you are an established business ready to expand with new equipment or into new locations. It might be time for a business loan. Traditional loan sources are from a national commercial bank, a local bank, or SBA loans. Some credit unions also serve the business market. There are also other alternative sources for loans, including crowdfunding and peer funding sites. The key to getting the business loan that you want at a rate you can afford, especially a bank loan, is preparation. Reasons for getting a loan Multinational corporations, mid-size manufacturers, and small service providers all routinely apply for bank loans. Every company in business needs working capital. The most common reasons for applying for a business loan include: What You’ll Need Bank loans typically require extensive paperwork. Check with your accountant to make sure all your business financial reports are ready for the loan officer’s review. At the least, a small business applying for a loan will likely need: You should accompany these documents with the story of your business, as a way to tie it all together, and present your best possible profile to the loan officer. Talk about industry growth, your chance to partner with a major player in the field, or other reasons you are seeking the loan. The loan application package, which will also include all the required paperwork, should be filled out. If you have questions, ask the loan officer. Don’t turn it in only partially completed. What Lenders are Looking For The old saying that banks are more likely to lend to you when you don’t need the money is often true for businesses. Your firm needs to be on solid financial ground in order to qualify for a bank loan. In a best case scenario, that means you should be able to show your business has been profitable for the last three years. Primarily, there are three criteria you need to meet.
  1. The purpose of the loan must be financially sound. That means using it for speculating, for lending, for investments that are passive in nature, for gambling, or for pyramid sales are out of bounds.

  2. Have a good credit history. The principles, including you and the key members of your management team, must have good credit, personal or business, and be experienced in the field.

  3. Proof you can pay the loan back. Your business or you personally must have the assets to back the loan up. In many cases, you will be asked to guarantee the loan personally. As long as your firm has ample assets, they probably won’t ask for a lien on your home.
The loan department will examine all the paperwork in detail. Don’t be surprised if they even check your social media for clues about the state of your business. Bank loan departments are thorough. In summary, do your research, prepare well in advance of the loan, and completely fill out all the paperwork. Present your business in the best possible way, while staying accurate. The loans are available, and if you prepare adequately, you have an excellent chance of getting what you need.

Getting a Business Loan

View Resource Getting a Business Loan

What is it going to take to make your business successful and reach your sales goals? Understanding the metrics that drive your sales initiatives will help you understand the effort that will be required along the way to make sure you’re on track at each and every stage in your sales cycle.

Optimize Your Sales Pipeline

View Resource Optimize Your Sales Pipeline

You should be saving money in an IRA or 401k to help fund your retirement years. You can also use a Health Savings Account (HSA) to boost retirement savings earmarked to cover medical expenses in retirement. Health savings accounts are not technically retirement plans, but you can make pre-tax contributions and the money deposited in your HSA will grow tax-free. Moreover, unlike Flexible Spending Accounts, you can roll over your HSA funds from one year to the next, and into retirement. You can also withdraw HSA funds at any time to pay for current qualified medical expenses. So, as you grow your HSA account balance to meet your retirement needs, you’ll want to consider those current medical expenses in your planning.

Reach Your Health Savings Account Goal

View Resource Reach Your Health Savings Account Goal

The amount of equity available for a home equity loan or home equity line of credit is determined by the loan-to-value ratio of the home and the ratio requirements of the lender. A loan-to-value ratio is calculated by taking total mortgage debt (including any second mortgages or existing home equity loans) and dividing it by the current, appraised value of the home. The size of a home equity loan or line of credit will also depend on the loan-to-value requirements of the lender. Higher loan-to-value requirements can result in larger home equity loans or lines of credit.

The Equity in Your Home

View Resource The Equity in Your Home
Like most things in life, retirement fund withdrawals should be carefully planned to maximize your assets and get the most mileage from your retirement funds. Of course, the first act is to view your retirement fund “inventory” to see what your options are. You may be able to draw from any of the following types of retirement accounts:. Regardless of the types of retirement funds you have, there are multiple options for withdrawing them to help you get the highest value from these funds throughout your retirement. Penalty-free withdrawals from IRAs and 401(k) / 403(b) accounts begin at the age of 59.5. You do not want to start withdrawing from these funds before that age, if possible, to avoid potentially steep penalties. Mandatory withdrawals begin at the age of 70.5. Roth IRAs are the exception, however, as there are no mandatory withdrawals until after the death of the account holder. Which Funds First? When determining which of your retirement funds to withdraw first, some aren’t up for debate. You must begin receiving minimum distributions by certain stages of your life. There are, however, some retirement funds that leave you in the driver’s seat for how you wish to manage your retirement finances. One of the primary considerations when determining which retirement funds to utilize or withdraw first involves taxation. The more you pay in taxes, the less of your money you get to keep. When funds and opportunities to earn more funds are limited, as they are in retirement, it is best to adopt a strategy that minimizes your contributions to Uncle Sam. The other vital consideration involves your income needs. It is wise to consider the monthly income you will require to maintain a particular lifestyle during your retirement. Once you understand the monthly income you will need to meet those standards; then you must work out a budget that will create a sustainable income for you for the duration of your retirement. Do not forget, however, that you should revisit your strategy each year to determine whether your goals are the same, your needs are consistent, and the monthly income generated was sufficient to meet those needs and reach those goals or if more significant income is required. In other words, you can make changes, to some degree, throughout retirement to accommodate things like rising health care costs, increased costs of living, and even decisions to move to areas that have lower costs of living. Retirement Withdrawal Strategies There are a few commonly employed retirement withdrawal strategies that serve retirees well, depending on their financial goals and other considerations. The one that will work best for you may not be the same one that works best for others. It may even require some degree of trial and error to decide which strategy you like best. These are some commonly used retirement withdrawal strategies you might want to consider. Takeaway Some people employ multiple strategies, mixing and matching as needed to give themselves adequate income from year to year as expenses (cost of living, medical care, etc.) grow while helping them to set more money aside to help their money last longer. It may take a while to find your comfort zone or even working with an expert to find the best way to put your money to work for the retirement you’ve dreamed of.

Retirement Account Withdrawal Strategies

View Resource Retirement Account Withdrawal Strategies
Retirement savings need to last longer than ever. The good news is that retirees are not only living longer; they are also leading happier, more active, and energetic lifestyles than in decades past. The bad news is that many retirement savings plans were not built to last for these lengthened timelines. Today’s retirement funds get stretched to the limits. Not only are people living longer lives after retiring, but medical costs are also at record highs. These unplanned and unfunded expenses are often occurring just as your savings are the most limited. It is enough to even give those with substantial nest eggs pause. For those who have consistently worried about surviving after retirement, it can be downright terrifying. As a result, many retirees are seeking new ways to supplement incomes and extend their retirement budgets. If you are in the same boat, the “gig” economy might be the perfect solution for you. What is the Gig Economy? The “gig” economy is a particularly attractive option because it places you in charge of when, how often, and how much you work. You do not have to worry about scheduling conflicts, interfering with vacation, or even feeling like you have a regular j-o-b. While the term has received new attention in recent years, the idea of “gigs” originated during the 1940s. Today, we have revolutionized the concept of the gig economy, turning it into extremely short-term engagements, with independent contractors selecting their days and hours of work. There is a nearly infinite supply of gig jobs that can be performed by people who have all manner of experience under the belts. They start with ride-share driving opportunities with Uber and Lyft, and food delivery shifts with companies like DoorDash and GrubHub. But they go well beyond that. There are gigs for accountants, artists, coders, contractors, and more to be had in today’s economy. Even electricians and plumbers can find gigs for quick cash, to extend retirement budgets, or to pay for holiday expenses. You can also use gigs to fund a newfound cruise addiction. Extending Retirement Funds Working within the gig economy gives you more considerable latitude over your time, your talents, and your income. It allows you to earn extra cash for living expenses while you are still able to do so while leaving much of your retirement funds untouched so they can continue to generate interest or appreciate. Plus, if you manage to hold off on tapping into your Social Security retirement income a few additional years, the payoff can be much more significant. Some people only choose to work these side gigs for extra money long enough to satisfy the requirements for maximum Social Security payouts — and that is sufficient to meet their needs. Others prefer the socialization as much as they enjoy the extra income these side gigs provide. How to Find Gig Economy Jobs It is surprisingly simple to find earning opportunities through a variety of side gigs today. From websites like TaskRabbit and Thumbtack to more significant organizations like Uber and Lyft, opportunities abound. Savvy seniors can even turn their love of crafting, woodworking, etc. into income through websites like Etsy where you can sell your handmade goods. Some things you will find there include: The more elevated your talents and interest, the more diverse your opportunities for income in the modern gig economy will be. You can even make money writing books or creating online or community classes on how to do things that are becoming lost arts in the modern world. That includes things like making homemade bread, building furniture, fly-fishing, preserving and canning food, knitting, and many more. Knowledge is a commodity in the gig economy — and one that pays surprisingly well. Finding jobs is easier than ever. Finding the right fit, however, may take a little time, attention, trial, and error. Keep your eye on your goals and avoid overloading yourself. You do want to have time to enjoy your retirement, after all. Takeaway The gig economy, while not new, offers a wealth of new income opportunities if you are seeking to extend your retirement budget, stay active throughout retirement, or wanting the chance to meet new people during retirement. There are numerous opportunities, and the flexibility of the gig economy lifestyle makes it an attractive option if you want to take the time to enjoy your retirement while still having enough income to pay the bills.

Extend Your Retirement Budget with the Gig Economy

View Resource Extend Your Retirement Budget with the Gig Economy
You have probably heard, more than once by now, that not all debt is created equal. Some types of debt are beneficial, while others, not so much. As consumers, understanding the difference can have a profound effect on your credit score and how lenders view your spending, buying, and borrowing habits. These are the things you need to know about the types of debt worth having. Good Debt Many individuals believe all debt is bad. It represents money you owe. For these people, the amount of debt they owe places them solidly outside of their comfort zone. However, some debt is viewed more favorably by lenders as signs of responsible borrowing than others. The underlying theme for all of these is that good debt is debt that has the potential to help you add to your net worth, either through the appreciation of assets or generation of income. If your goal for borrowing money is for a different purpose or goes in a different direction, it will likely fall in the ‘bad debt’ category. Bad Debt Bad debts involve assets that depreciate over time. These debts are not considered investments so much as they are considered consumption. The idea being that if items do not increase in value or generate wealth, people should not go into debt to purchase those items. Prime examples of bad debt include: These debts do not lift families out of debt and may doom them to struggle with debt for longer than necessary. Other Considerations While we do live in a consumer-driven society and debt is an often necessary fact of life, the types of debt you have can profoundly impact your quality of life and ability to have the things you desire most in the end. The best words of wisdom to offer on the debt front involve keeping your debt focused on things that can help you increase your net worth and reducing debt that does precisely the opposite, whenever possible.

Good Reasons to Borrow Money

View Resource Good Reasons to Borrow Money
It is now more important than ever to protect your identity. As more companies reveal data breaches on large scales, the need for consumers to protect themselves, their reputations, and their financial interests with identity protection services is growing daily. Fortunately, many services are available to help you protect your identity. But which one is right for you? The more you know about your options, the better informed you will be to make the right decision to protect your own identity. Types of Services You need more than services that monitor your credit score in today’s connected world, though that is certainly a good place to begin. A good credit monitoring service will let you know any time someone does any of the following: Identity monitoring goes beyond that by reporting when people use your personal information in ways that might not appear on your credit report, such as: Identity recovery services come in after the fact and help you regain control of your finances and restore your good name after the damage has occurred. They work with you to help you freeze your credit so that new accounts cannot be opened in your name, informing creditors and lenders about the theft, and address inquiries from debt collectors. Identity theft insurance goes even further by covering out-of-pocket expenses related to reclaiming your identity. Some people consider the coverage relatively minor, considering that it doesn’t return stolen money and financial losses resulting from the theft, nor does it, in most cases, provide protection for legal fees and lost wages that occur throughout the process. Assessing Your Needs The real key is in assessing your individual needs and those of your family. Unfortunately, there are many different types of identity theft. More than you might know or realize. And, there are no services available that protect people from all the types of identity theft that currently exist, such as: Comparing Services All services for identity theft monitoring and protection are not the same. Most people find identity theft insurance to be of little benefit, though some feel that every little bit of money you can recover at a time like this can be beneficial. You will have to decide for yourself which service offers the best assistance for your needs or if you are better off using multiple services. Use the information above to help you choose, but also remember that when your data is compromised, many companies provide free credit and personal information monitoring services. Takeaway The best way to protect your identity is to do the monitoring yourself in combination with all the methods listed above. Prevention, and proactively protecting your information is the best cure; however, when data breaches occur, it is always good to have other eyes on the problem with credit monitoring and identity monitoring services. If your information and identity are compromised, then you want the assistance offered in a reputable identity recovery service.

50 Services

View Resource 50 Services
Leasing a car is a great way to get lower monthly payments on brand new or late model cars. It is one way for people who are not mechanically inclined, or who love the new-car smell, to make sure they can have a new vehicle every few years. There is a price to pay for that privilege, however, and sometimes people leasing cars need to find creative and intelligent ways to extricate themselves from these leases. People want to get out of car leases for a variety of reasons: Regardless of the reason, getting out of a car lease can be difficult. For those who go about getting out of a car lease in the wrong way, the process can be complicated, disastrous to credit scores, and expensive. Avoiding Default The last thing you want to do to get out of a car lease is to stop making payments and go into default. That will leave a lasting black mark on your credit record, making it difficult for you to get financing for future vehicles, homes, and any other credit you may require for several years. Financial hardships do happen, though, which makes it essential to understand and explore your options for getting out of a lease without going into default. Merely stopping payments and waiting for the dealership to repossess the vehicle is the worst thing you can do. Not only does it add repossession fees to the amount you owe, but it doesn’t absolve you of your debt to the dealership. According to your contract, you could still be on the hook for the remaining lease payments, early termination fees, and more. Options for Getting Out of Car Leases There are generally three options available to consumers looking to get out of a car lease. They include:
  1. Early termination of the lease

  2. Transferring the lease

  3. Buying out the lease
Each option offers its own set of pros and cons according to individual circumstances. Be aware, however, that the way depreciation works, automobiles depreciate at much faster rates earlier in the lease. That means that early termination may carry the risk of owning a substantial sum even when terminating the contract early. Early termination of the lease can get you in hot water, depending on the language in the lease contract. If you are seeking to get out of the contract to “trade up” or into a different vehicle, it may be easier to do so, provided you pay the required early exit fees. In some cases, it is possible to trade down and only pay exit fees, saving you more money over time. One thing to consider is that there are “lease swapping” sites where people will list leases available to those interested in taking them over. Some people like the lower monthly payments that leasing delivers over buying, and these sites allow you to find willing individuals that might be interested in helping you find relief from your current contract. Transferring the lease allows you to find someone interested in taking over the contract. Of course, the other person in question must meet the rigorous credit requirements many dealerships require for leasing vehicles. However, it gives you another option to consider. The problem, or consideration, with this method, is that it is not always easy to find someone willing to take over a lease. It is much easier to find buyers for vehicles than people interested in taking over a lease. However, it does remain a viable option if you do have an interested party in mind. Buying out the lease is another consideration. This option would have you buy the vehicle outright. The benefit of this option is that you now own the car and can do anything you want with it. You can sell it, give it to a family member, or trade it in for another vehicle you wish to purchase. Additionally, you could drive it around without paying a monthly note. Looking for ways to get out from under a car lease that no longer benefits your situation? You do have options, including trading up, buyouts, early termination, and lease transfers. The one thing you don’t want to do is risk default by taking no action to relieve yourself from your lease burden.

Getting Out of a Car Lease

View Resource Getting Out of a Car Lease
Many things impact a car’s resale or trade-in value. Learning to maximize your car’s trade-in value gives you more buying power for the purchase of your next vehicle and allows you to enjoy a higher return on investment. These tips can help you get top dollar for your trade-in. Preparing for the Trade-In Before you make your trade-in decision, there are a few key details to consider as you prepare. The better handle you have on these types of events, the greater your end rewards tend to be. They include: Little things like these can maximize the value you receive from your trade-in. Increasing Your Car’s Appeal There are some things you can do quickly, easily, and inexpensively that will wow those in charge of pricing out your trade. Consider these tasks for adding a little “curb appeal” to your car before trading it in. The more of these you take care of, the more likely you are to receive top dollar for your trade. When things are left undone, the dealership will lower its trade-in offer to cover their costs. Negotiating the Best Deal Approach the dealership from a position of power when discussing a trade-in. Let the dealer know you do not need to trade the car in but are interested in exploring your options. That gives you far more negotiating power than if you need that money to supplement or solidify your down payment in a newer vehicle. Also, do not hesitate to let the dealer know you know the value of your vehicle and all the added features that make your specific car worth more. Finally, do not negotiate the trade-in value until after you have agreed on a price for the newer vehicle. Often, sales staff will attempt to recover losses on a trade with the offer they make on your new car. If you agree on the price first, that cannot happen. Takeaway Taking the time and paying attention to detail before you begin to negotiate for the trade-in value of your existing vehicle can have a significant impact on the final offer you receive from the dealership. The steps above, combined with your powerful negotiating skills, can help you get a better offer for your trade-in vehicle.

Maximize Your Car’s Trade-In Value

View Resource Maximize Your Car’s Trade-In Value
Student loans. Without them, college educations would not be possible for large segments of today’s population. Whether attending state colleges and universities or private institutions of higher learning, the fact remains that student loans ease the financial burden of college for many students who would not otherwise be able to pay to attend college at today’s rates. Once graduation takes place and the time to begin repaying those student loans kicks in, many families, unfortunately, face hardships that make paying these loans back challenging. Fortunately, there are strategies you can employ that allow you to refinance student loans for more favorable terms and rates. Finding a Lender Finding a lender to refinance student loans is often the most straightforward part of the process. The key is to find the lender that offers the best terms and services to meet your needs. One of the benefits of refinancing student loans, when compared to refinancing a mortgage loan, is that you do not have to worry about things like closing costs, points, etc. You owe the amount of money you refinance and the interest. Be aware that, unlike the federal student loan program that guarantees student loans to all, regardless of credit, refinance lenders often require that borrowers have good credit, with many requiring scores in the high 600s to qualify. Even among those that do qualify, terms and interest rates can vary substantially according to how high your credit is. Getting the Best Loan Terms One of the things you might want to consider to get the best possible loan terms for refinancing your student loans is to apply for several loan programs and compare their offers. It is not just about the best interest rate, though that is certainly an important consideration. Also explore your option for repayment terms such as: Other things to consider are the types of loans available for student loan refinancing. For instance, fixed-rate student loans provide security that allows you to know the interest rate you will pay for the life of the loan while adjustable-rate loans often offer lower initial interest rates but may rise sharply when interest rates increase. Refinancing vs. Consolidation Consolidating student loans is often something offered through the federal student loan program. That allows students to combine all their student loan payments into a single payment each month. It is much easier to manage a single monthly payment on one set day each month than multiple payments spread throughout the month. Additionally, students may take this opportunity to extend the term of the loan. That can lower monthly payments substantially. The downside of this option, though, is that you will pay more in interest over the life of your loan. Refinancing is different in that students seek lenders outside of the federal student loan program to cover the entirety of their student loan debt. They then refinance the total amount of a lower interest rate. Before you refinance your student loans you need to understand that doing so transitions the loan from the federally protected student loan to a private loan from a private lender. This eliminates many of the protections, such as: These are all available through the Federal Student Loan program but not through the private lenders that refinance them. For most students, it is best to consider options within the federal student loan program before seeking to refinance with a private lender. However, there are some situations in which private lending is absolutely the way to go, especially for those who have excellent credit scores. When it comes to refinancing student loans, there are plenty of lenders to choose from for those who have outstanding credit and are interested in reducing the amount of interest they pay. However, it is wise to compare options to seek the best possible terms for your student loans and to decide if consolidation is a better option for maintaining benefits offered through the federal student loan program option.

Refinancing Strategies for Student Loans

View Resource Refinancing Strategies for Student Loans
Paying off loans ahead of schedule can have a significant impact on how much you ultimately pay for the loan. Additionally, it can help you eliminate the debt faster so that you can move on with other financial goals you might have. These tried-and-true strategies can help you get rid of your debt by accelerating the loan repayment process. Bi-Weekly Payments Rather than paying once or twice each month, bi-weekly payments have you paying toward your loan every other week. Over the course of the year, this has you making one additional payment per year without almost realizing it. While this method is not as effective as others for short-term loans, it can save you several months of payments when used on longer-term loans, not to mention hundreds (or thousands) of dollars in interest. Round Up Payments Rounding up payments work just as the name implies. Rather than making the exact payment that you owe each month, you round up to a higher amount. For instance, instead of paying $237.00 each month, make your payment for $300.00. That adds $63.00 each month that goes towards paying down the principle of the loan. That is a total of $756 (just over three additional payments) going toward the principal each year, quickly whittling away your debt! Lump-Sum Payments Find out the total amount owed on principle for the debt and make a lump sum payment to eliminate the entire remaining debt. That works for people who have recently received royalty payments, an insurance payoff, or even come into inheritances and are interested in eliminating debt. Some people who are interested in eliminating more substantial debts, or even several smaller debts, use extra payments to aid in this process. Some people receive bonuses from work, holiday gifts, Christmas club payments, and even their IRS tax returns and use that money wisely to help reduce debt, minimize interest, and live simpler, debt-free lives. They do this by making extra payments on higher-interest loans, credit cards, and other debts when they receive substantial sums of money so that they can ultimately pay off as much of their debt as possible via these lump-sum payments. Extra Payments Even if you are not able to make the bi-weekly payment suggested above, you can still reap the rewards by making one additional payment each year. By saving up a few dollars here and there throughout the year toward this payment goal, you can deliver valuable positive results for your total debt. One Last Thing Before you dive into any of these methods of early loan repayments, it is critical to determine if your lender has any early repayment penalties. While many modern lenders do not utilize this practice, it is still possible for some lenders, those eager to earn as much profit from interest payments as possible, to impose stiff penalties for early loan repayments. Be sure to check into whether the lender allows early repayment without a penalty fee. Once you are sure you can repay your debt early, any one of these steps can be a huge help toward your overall goal. The bigger the effort you make towards debt repayment, the more substantial your results will be, and the faster you will find the entire debt repaid.

Accelerating Repayment on a Loan

View Resource Accelerating Repayment on a Loan
Many people view banks and credit unions as financial institutions that can help keep their money safe. After all, that is what banks and credit unions do, right? Not exactly. These institutions exist to accept deposits and make loans, although, in the case of credit unions, they typically do so on a ‘not-for-profit’ basis. It is safer to store money in bank or credit union than, say under mattresses or in buried coffee cans. However, the idea that these organizations are designed to keep your money safe is a little misguided. That isn’t to say that they offer no protection for your money. Today’s banks and credit unions are safer than they have been at various points throughout history. This is largely a credit to two organizations: Since the founding of these organizations, no holder of a bank account or member of a credit union has lost a single penny of deposits that were federally insured. NCUA and FDIC Insurance Limits Here’s where things get interesting. These organizations do provide insurance for the money held in a qualifying bank or credit union accounts, up to certain limits. Both organizations offer protection and guarantees for up to $250,000 per depositor, per financial institution without account holders lifting a finger or paying a dime. The more “depositors” assigned to the account, the higher the protection becomes. Additionally, people who have accounts at multiple banks or credit unions will enjoy the same protection for each financial institution. Qualifying Accounts There are a variety of qualifying accounts that can receive the protection offered by FDIC and NCUA Insurance. They include: You should note that different insurance protections exist in cases of robbery and theft. The FDIC and NCUA do not insure in these types of losses. Maximizing Your Insurance Protection The key, of course, is to seek out ways to get more protection for your investment with as little effort as possible. These are a few things you can do to help you maximize your insurance protection: Banks and credit unions exist in a highly competitive market. Many are willing to go the extra mile to ensure you are confident with the coverage and protection you have. They are often willing to work with you to help you spread your money around in a fashion that limits your risk and exposure to keep your business. While FDIC and NCUA insurance coverage do not offer complete and total protection automatically to consumers, they do allow a fair amount of flexibility so that savvy consumers can get the protection that makes them feel better protected. These things will help you get the insurance protection your bank deposits require.

How Safe is Your Money?

View Resource How Safe is Your Money?
Shopping for the holidays isn’t just stressful. It can be quite expensive if you don’t have a strategy in place for managing your money and getting more out of it. The strategies below will help you keep your Christmas budget in check by helping you score fantastic holiday deals. Tips for Saving Money at Christmas Christmas, for some, is the most beautiful time of the year. For others, though, it is an easy opportunity to overspend. These tips and tactics can help you give Christmas gifts your friends and family are sure to love without breaking the bank this holiday season.
  1. Make a list. That will be your guide for the holiday season. Include the names of everyone you need to buy gifts for and how much you would like to spend on each person.

  2. Start shopping early. The earlier you begin shopping, the smaller the financial hit will be when the holiday season rolls around. Have a dedicated space to place all the Christmas gifts you purchase early and consider wrapping them ahead of time too for easy storage away from prying eyes.

  3. Save receipts and compare prices throughout the season. Some stores will match prices, past and present, during the holidays to guarantee you get the lowest possible price on the things you purchase. Comparison shopping is always wise, and the Internet makes it easier than ever.

  4. Make your gifts. There are plenty of amazing gifts you can make at home to give for the holidays. Everything from handmade soaps, candles, and crafts to infused liquors, baked goods, and clothing can hit the mark and make excellent gift options.

  5. Shop for discounted gift cards. Shop ahead of the holidays for discounted gift cards. Many websites offer discounted gift cards for sale. You can even earn gift cards from various retailers by taking surveys. Whether buying or earning, these gift cards can either be Christmas gifts or help you purchase Christmas gifts with little out-of-pocket.

  6. Shop on Black Friday and Cyber Monday. Both brick and mortar and online retailers often offer significant savings on these days to entice shoppers to make their holiday purchases early.

  7. Buy multiples when scoring deep discounts. When you find amazing deals that will work for multiple people on your Christmas list, buy multiples. No rule says two people can’t receive the same (or very similar) gifts. You can even buy multiples for the same person if there are different colors, patterns, or themes. Especially if the gift is something you know the recipient will use, like, and appreciate.

  8. Redeem rewards and rebates. Far too often, people get caught up in the hustle and bustle of holiday shopping, parties, and decorating that they forget to take advantage of the rebates and rewards available to them. That is like letting money fly out the window. Do not forget to fill out the paperwork and send it in right away so that it doesn’t get lost in the shuffle.

  9. Shop with cash (and guard it well). Take cash along with you when you shop and leave the credit cards at home. If you do not have them with you, you cannot use them. That means you are more likely to stick to your list and less likely to overspend as the holiday chaos unfolds and you get caught up in the excitement.

  10. Use and stack coupons. While some retailers exclude coupons during the holidays, others apply them liberally. Stores like J. C. Penney and Bath and Body Works, for instance, not only allow you to use coupons, there are some days when you may be able to stack them with exceptional sales during the holiday season. Use them wisely.

  11. Use apps or shop through sites that offer money-back. If you are going to shop online, some websites allow you to earn cashback rewards on all the holiday shopping you do that originates on their website. While this usually helps with a payout after the holidays, it is money that is going back into your pocket. Additionally, they offer discount codes that will help you save big on your shopping right away.

  12. Dine at locations offering bonus cards. While you are out shopping for the holidays and get the munchies, only dine at places that offer bonus gift cards. Purchase a gift card as a gift and enjoy a free lunch or dinner in the process!
There are many great ways to save big on your holiday shopping. These will get you off to a nearly perfect start while helping you score some massive deals!

Shopping Strategies for Holiday Deals

View Resource Shopping Strategies for Holiday Deals
With a little imagination and ingenuity, you can transform standard household items into things that give these tired old items new life and new love in a process known as upcycling. More importantly, it keeps these items out of landfills, provides them new usefulness, and helps the planet because you are reinventing existing things rather than investing in new ones. What is “Upcycling”? Upcycling is the art of recycling something by creating something new from it. For instance, you can upcycle a skirt with a small tear into a curtain or apron for your kitchen rather than throwing it away. In a world with so many disposable products, it is always good to discover ways to give things new life and usefulness. That is what upcycling can do for all types of items you have in your home, giving you, or others, new reasons to love these tired or forgotten pieces. 10 Upcycling Ideas Sometimes you need a little help to get started with your upcycling efforts. Perhaps it is a lack of inspiration that is holding you back or merely an absence of ideas. These ten upcycling ideas ought to keep your upcycling endeavors going for a while.
  1. Use broken and chipped cups and saucers to create masterpieces.
    There are tons of ways you can do this. You can break them into smaller pieces and use the pieces to create mosaic tabletops, stepping-stones, or even wall art. You can glue cups to saucers to create multiple tiers of a small serving tray, desktop organizer, or quirky jewelry holders. You could even use them as planters for a kitchen herb garden.

  2. Give old furniture a new life.
    Some ideas to give a piece of furniture a new life include transforming an old dresser into an entertainment center for your bedroom or living room, a serving table or buffet for your dining room, or additional storage for household linens. Other projects to consider include:
    • Turning an old entertainment center into a pretend kitchen for the little ones.

    • Creating a beautiful bench from an old chest of drawers.

    • Turning an old bedside table into a pet bed for your furry best friend.
    Furniture is large and bulky and takes up a tremendous amount of space in local landfills. Projects like this give old furniture new usefulness, and second life, while helping to keep them out of landfills.

  3. Transform wine bottles (or other types) into lamps.
    A few strings of light and some beautiful bottles are all you need to light up your home with lamps that offer a warm glow and ambiance.

  4. Upcycle old jewelry into stunning curtains.
    Beaded jewelry is an amazing choice for transforming into sparkling and pretty curtains that cover windows, divide rooms, and create focal points within the home. Add a little lace into the mix for privacy’s sake.

  5. Revitalize old jars and bottles into vases and storage.
    All you need to do is remove the existing labels and add your own finishing touches.

  6. Makeover old tee-shirts into a memory blanket.
    That is a beautiful reminder for those who have lost loved ones, or to give to children graduating high school.

  7. Make furniture, shelves, etc. from wooden pallets.
    Wooden pallets are made with surprisingly high-quality wood considering their purposes. Then, they are broken down to serve as mulch or sent straight to landfills across the country. That is unless someone comes along to repurpose them into something more useful. While it is possible to buy them online, that is often unnecessary. It is very much possible to get them free — if you know where to look.
    Lifehacker recommends going to local, independently owned (no chain stores) shops, such as garden and nursery stores, hardware stores, and power equipment stores, and ask if they are willing to part with any of their pallets. Many of them are glad to do it as it saves them from disposing of them.

  8. Revamp old windows into picture frames and tabletops.
    Anyone interested in a rustic, farmhouse style of décor will find a lot to love about this upcycling project that is simple to do and almost always gets compliments.

  9. Create a hanging bookshelf from an old ladder.
    That helps to keep books organized and free up vertical spaces within the home for other things.

  10. Make pendant lamps from old bottles.
    These make some of the most beautiful and unique pendant lights for a home. The project is also a lovely way to bring the past into the present without sending old things to a landfill in your community.
You don’t have to move mountains to change the world. All you need is a little imagination and a steadfast commitment to the planet. Upcycling can help.

Upcycling Basic Household Items

View Resource Upcycling Basic Household Items
Retirement planning is far from simple. Sometimes, it feels like you are speaking a different language from everyone else. From words like 401k and 403b to IRAs, it can be a bit overwhelming. The better you understand your IRA options, though, the greater your flexibility in managing your retirement investments becomes. These are a few key details and facts about IRAs you need to know. Individual Retirement Accounts First things first, what is an IRA? IRA is short for Individual Retirement Account. It represents a specific type of tax-advantaged investing account set aside for retirement savings. The varied types of IRAs allow improved flexibility and freedom for your retirement investing. The more you learn about your options, the more informed of a decision you can make about which type of IRAs best meet your needs and interests. Before diving in too far, it is essential to understand that whether your contributions to an IRA are tax-deductible depend on a few factors, including accessibility to employer-sponsored retirement plans and your income. There are also limits related to how much you can invest in IRAs each year. Plus, funding limits can vary from one type of IRA to the next. It is wise to consider all options before choosing one over another so that you have a clear image of what each one will mean for your retirement savings. Traditional IRAs As long as you are employed, whether self-employed or otherwise and under the age of 70.5, you can invest in a traditional IRA. That is, as long as you fall within the income limitations and abide by the maximum contribution limits for traditional IRAs.  If you have an employer-sponsored retirement plan you participate in, you may still contribute to a traditional IRA, but those contributions are not tax-deductible. The one upside of that, however, is that the earnings are tax-deferred as they grow. With the traditional IRA, you may begin receiving distributions of payment at the age of 59.5 as long as you have had the account open for at least five years, and you must start taking out distributions by April 1 of the year after you reach the age of 70.5. The costs of early withdrawals are high and include taxation and IRS penalties of 10 percent. You may, however, receive a loan from your IRA. It must be repaid within 60 days, though, or the same penalties for early withdrawals apply. Roth IRAs While Roth contributions are never eligible for tax deductions, the earnings on these investments grow tax-free. Investing in this type of IRA is, essentially, giving yourself the gift of tax-free income during your retirement. The limits for investing in Roth IRAs are usually equal to the limits of investing in traditional IRAs when it comes to income and investments.  Another benefit of the Roth IRA is that it offers more lenient rules regarding withdrawals. Anyone who anticipates retiring in a tax bracket that is larger than their current tax bracket might want to consider the post-retirement tax-benefits this type of IRA delivers.  Roth IRAs are also exceptional choices for people interested in leaving their heir’s tax-free income. In some cases, it can last throughout their lifetimes, according to Bankrate. You can also continue contributing to your Roth IRA even after reaching the age of 70.5, which is something you cannot do with a traditional IRA. One more reason to give the Roth IRA a long, hard look applies to high earners or people who earn more than the limits for a Traditional IRA. You do this by making a contribution to a Traditional IRA that is not tax-deductible and then converting that IRA to a Roth IRA. You must also pay taxes on any gains made when the conversion takes place. Many refer to this is at the Roth Back Door. However, there are tricky tax considerations for this option, and you should obtain the advice of a tax professional before going down this path. Self-Directed IRAs This type of IRA, while governed by the same contribution and income limit rules of other types of IRAs offers greater freedom when it comes to types of investments allowed. For instance, Roth and Traditional IRAs are often limited to the usual investment scenarios that include the following: Self-directed IRAs offer an expanded list of assets in which you can invest, such as: It offers investors more options but also comes with stricter regulations about how the money can be used in relation to those investments. SEP IRA Short for Simplified Employee Pension IRA, these are employer-sponsored IRAs. The money in these IRAs gets contributed by the employer and offers a flexible, cost-effective option for employers who would like to help employees have retirement savings but are not able to contribute every year. The employee controls the retirement funds in an employee’s account. The employer makes contributions when possible and receives the tax deduction for the contribution. Simple IRA This employer-sponsored plan is short for Savings Incentive Match Plan for Employees (SIMPLE) IRA. Best suited for small businesses that have fewer than 100 employees who earn at least $5,000 annually. The beauty of this plan for employees is that employers may make matching contributions or non-elective contributions. IRAs might sound complicated. And specific rules abound for each different one. Working with a financial advisor and tax professional can help you maximize your IRA mileage so that you can get closer to your retirement goals.

What are My IRA Options?

View Resource What are My IRA Options?
You have probably seen advertisements advising you to search for unclaimed money. Many people dismiss the offers as potential scams or information grabs. However, many people are leaving money on the table without even realizing it. Even the U.S. Government has a site for people who may have unclaimed money from things like bank and credit union closings, tax refunds, back wages, pensions payments, and even life insurance payments. And that, for many, is only the beginning. How Much Unclaimed Money is Available? According to USA Today tech columnist Kim Komando, in Arizona alone, there is more than $1.5 billion in unclaimed property just waiting for the right person to claim it. That includes things like FHA refunds, utility deposit refunds, unclaimed life insurance, and undelivered tax refunds. Of course, it is crucial to be mindful of scams. Companies are out there offering to locate unclaimed money on your behalf – for a fee. If you are looking for money from one of the sources mentioned above, the U.S. Government website is an excellent place to begin your search.  How Does Money Go Missing? Money goes missing in a variety of ways.  Places to Look Fortunately, there are plenty of places to look. The best practice is to begin your search in your home state. If you have lived in multiple states, you may want to consider searching for unclaimed money in all of them. You should be aware that each state could have different websites and processes for looking for and claiming unclaimed money in your name.  The simple step would be to do an Internet search for “unclaimed money + state.” Just make sure that you find a trusted site with a .gov extension before you provide any personal information. You should also never pay a fee. You might also consider where you can conduct a state by state search for unclaimed properties in your name. However, there are a few helpful websites that may aid you in your search for unclaimed money: One huge tip is to look for variations on your name if you have one that gets commonly misspelled. That offers you more opportunities to find the funds that may belong to you, despite an incorrect spelling. Once you have located unclaimed funds that potentially belong to you, it is time to collect those funds. Each website should detail the process for claiming your funds, as well as provide information related to how long it should take to complete the process and deliver proof of your identity.  The process, from start to finish, can take anywhere from a couple of weeks to a couple of months. While the rewards for your efforts may be small, there is always a chance that they can be much larger than you anticipate. Takeaway There is a lot of legitimate unclaimed money floating around. Knowing the right places to find the money and how to avoid common scams can help you find any unclaimed money waiting for you, without becoming a victim in the process.

Searching for Unclaimed Money

View Resource Searching for Unclaimed Money
If you have been online for a while, especially in cybersecurity circles, chances are you’ve heard of the “dark web.” This term is being used with more frequency to describe a secret digital world of criminal activity for everything malicious or shady that occurs online. And, while you might not think it’s real, it is. So, precisely what is this dark web, and how can you protect yourself from it? What is the “Dark Web”? The dark web is the section of the internet that search engines are not indexing. To access the dark web, you need to use a special anonymizing browser called “Tor.” Dark web sites end in .onion, rather than domain names like .com, .co, .org., .edu, or. gov. To avoid being caught, merchants and scammers are constantly moving site locations, and sites on the dark web are always changing to avoid malicious distributed denial of service attacks (DDoS). And, no doubt, you have heard it is a breeding ground for criminal activity, and this is true. An “Into the Web of Profit” study in 2019, conducted by the University of Surrey’s Dr. Michael McGuire, found that the adverse implications of the dark web are worsening. The number of listings on the dark web that could threaten companies has increased by 20% since the year 2016. Sixty-percent of all listings (except those that sell drugs) could potentially threaten companies. A big concern for the average individual and businesses is the dark web also provides a means for purchasing and selling things like stolen: On the dark web, you can purchase: Protecting Yourself From Dark Web Fraud So how do you protect yourself from the dark web? Here are some tips to ensure better security:
  1. Gain knowledge. You can have your domain checked for free to see if any of your company’s credentials are for sale on the dark web.

  2. Protect your passwords. Many individuals use the same password or some form of the same password for multiple online sites and services. By doing this, you make it too simple for hackers to gain access to your different accounts. You should use different passwords for each account and do not use common easy-to-hack passwords like your birthdate or name of your dog.

  3. Use Two-factor authentication or multi-layered security options for your accounts. For instance, you can set it up where a verification text will be sent to you each time you log into an account like Twitter.

  4. Update your software. Be sure you update all software, so you are protected from the latest threats. For instance, antivirus services are always identifying new threats and thereby updating their services. Application providers will close security loopholes as they identify them as well.

  5. Call in the professionals if you are breached. If you are a victim of cybercrime, you need an expert to handle the situation. Professionals will know what to do for security breaches. They can help you fix your situation and better protect yourself in the future.
Unfortunately, data breaches happen all the time, and individuals and companies frequently find out their sensitive data was compromised when they find it on a marketplace of the dark web. Deep web scanning is essential for proactively scanning to see if your credentials or other sensitive data has been stolen and marketed on the dark internet. When you become aware that your confidential information is compromised, it provides you with the chance to take action to stop or prevent attacks.

Understanding the “Dark Web”

View Resource Understanding the “Dark Web”
You can hardly turn on the news these days without hearing about some weather disaster or climatological catastrophe taking place somewhere in the world. The list of potential climate-related hazards is long and frightening to anyone who is paying attention.  These are just a few examples of the climate events we face with increasing frequency and intensity: Each extreme weather event is a potential example of the growing concern over the Earth’s fragility and the role man is playing in the planet-wide changes that are taking place. Now is the time when people need to begin considering the financial ramifications of our dynamically changing world. These are some of the preparations you need to make for a climate-changing world.  How Vulnerable Are You? Believe it or not, where you live plays a significant role in how well protected you are. People who live near the ocean face the most significant degree of risk from wind and water-driven events such as hurricanes, typhoons, tidal waves, flooding, and tsunamis. Those are not the only areas at risk, however. People who live near volcanoes, even dormant or “inactive” volcanoes, also face huge risks when the world begins protesting in louder and more spectacular ways.  People living in areas prone to earthquakes and wildfires are also at high risk. The problem with climate change on the scale of current projections is that we may have only seen a glimpse of the damage that humankind may experience. People living in vulnerable areas stand to face higher risks as the damage to the planet continues. Impact on Insurability Insurance against certain events is already becoming impacted by rising premiums. Since 1968, the government has stepped in to start the National Flood Insurance Program because insurance companies found it to be too costly for them to ensure homeowners and businesses against floods. Warnings exist. According to The Guardian, with the rise in death and destruction from climate-related disasters, costs will rise for consumers purchasing insurance. The prices of California wildfires cost insurers over $24 billion. That does not even count the human costs. As natural disasters continue and rise, prices will increase to the point that many low and moderate-income consumers will no longer be able to purchase insurance. Other Areas at Risk Economically, areas that experience more considerable upheaval due to climate change, such as drought-stricken areas, wildfire-ravaged areas, and hurricane or flood-devastated areas, face huge losses from people choosing to rebuild elsewhere. U.S. News reports that the economic losses of drought and water shortages could go as high as $180 billion.  Not only will people exit these profoundly affected areas, but property values will also become unsustainably high, jobs will evacuate for greener pastures, as will the industries that support these people and communities. Utility bills will likely soar as temperatures in some areas become warmer, and the strain on the electrical grid grows. It would be best if you were financially prepared for these changes before it’s too late. Making a Personal Impact Aside from setting aside extra money to account for rising costs associated with climate change, there are other changes you can make now that will have an impact on your future and, perhaps, the future of the planet.  The more people who speak up and choose green lives, the less we need to rely on the government to make the necessary changes. Takeaway Climate change is changing the world as we know it, in potentially terrifying and costly ways — the more people that get on board, the better. Financial preparations can spare you some pain of climate change, but only if you act quickly.

Preparing Financially for a Climate Changing World

View Resource Preparing Financially for a Climate Changing World
Some individuals have altered their way of life with the tiny house movement. They have adjusted to fewer belongings and smaller spaces and are looking to save money and focus on better experiences and relationships. But, is a tiny home right for you?  What is a Tiny Home? A tiny home is characterized as a single-family home that is around 400 square feet or less.  Tiny houses come in various styles. You can have either a modular, manufactured home or traditional stick-built home, both constructed on a permanent foundation. These are at the higher end. There is also a method that uses a mobile trailer as the foundation, but conventional materials for construction. Some people have even converted their storage container or shed into a tiny home.  Advantages of Tiny Homes As with any important financial decision, you should consider both the advantages and disadvantages of tiny homes before committing to investing in one. Some advantages of investing in a tiny home are:
  1. You Get All the Modern Conveniences with Tiny Homes
    You do not have to sacrifice modern living conveniences just because your house is tiny. Tiny homes can still have air conditioning, a washer and dryer; even a private sleeping area on a second floor. You have nearly the same options of customization with a tiny home as you do with a standard home.

  2. It is Easier to Live Mortgage-Free in a Tiny Home
    Tiny homes typically cost a fraction of the price of a traditional home. You can often build a tiny home for the amount you would have to use for a down payment on a typical home, or use the cash-out proceeds from the sale of your existing home to fund your tiny home purchase.

  3. There is Less to Clean Since there is Less Space
    Less space typically means less to clean. You could probably take 30 minutes out of your day and:
    • Fold and put the laundry away

    • Organize

    • Do dishes

    • Sweep
    Now, compare that to the often couple of hours it takes to complete the same chores in a bigger, standard home.

  4. You Save Money For Other Things
    In the U.S., the average sales price of new houses in May 2017 was $406,400, according to the U.S. Census Bureau. Tiny homes, on the other hand, can cost as low as $8,000.
Because tiny homes create “a minimalist lifestyle”, this means you enjoy decreased maintenance and expenses which frees money and time to live your life.  Disadvantages of Tiny Homes Of course, there are some disadvantages to consider with tiny homes, including:
  1. Tiny Homes May Have Questionable Legal Status in Certain Communities
    Some neighborhoods or communities may have certain building codes dictating the minimum size of a house. In the case of a tiny home, it might not receive approval for construction. Tiny homes might be subject to zoning requirements as well, with restrictions on the number of stories, width, height, and more. If you live in a tiny portable home, some jurisdictions will classify your home like an RV, rather than an actual house. Therefore, when you decide to embrace this lifestyle, be sure to review all the administrative requests and zoning codes to ensure you stay compliant.

  2. Storage Space is Minimal
    Tiny homes don’t provide a whole lot of storage space, which can make it hard for you to do certain things. For instance, while you may save time when it comes to cleaning your home, meal prep is a different story. It can be more difficult to prepare your meals in advance since you have limited storage space. That means you cannot buy in bulk, so you will make more trips to the supermarket, spend more and will be forced to prepare meals and cook every day.
    3.  
  3. You Have Limited Privacy
    If you share your tiny home with another person, privacy could become an issue. While you can have a lock on the bathroom door or a second-floor bedroom, it is always going to be a little cramped when living with another person.
Tiny homes aren’t for everybody. But, they can be your next step if you have already embraced a minimalist lifestyle. And, if you like to travel all over or be free of mortgage payments, a tiny low-cost home may be just the answer. But, even with a tiny home, you still have a big decision to make to ensure it is the right match for your needs.

Is a “Tiny Home” the Answer?

View Resource Is a “Tiny Home” the Answer?
Many individuals don’t realize the amount of food they are wasting each day, from spoiled produce to uneaten leftovers. According to a recent Environmental Protection Agency (EPA) study, around 94% of the food that gets thrown away winds up in combustion facilities or landfills. There were 38.1 million tons of disposed of food waste in 2017. But, the Food & Drug Administration (FDA) says everyone can play their part in contributing to the national goal for food waste reduction to decrease food waste by 50% by 2030. Benefits of Reducing Food Waste There are many benefits of reducing food waste, including: Ideas for Reducing Food Waste Some ways you can reduce food waste at home are:
  1. Plan Your Meals
    Just making a weekly meal list can help save you time and money and allow you to consume healthier food. If you purchase no more than what is on your planned meal list, you will be more likely to use it all and keep it fresh.
    Some things you can do are:
    • Maintain a running list of ingredients and meals your household already favors. That will allow you to easily select, purchase and prepare meals.

    • Create a shopping list around the number of meals you plan on eating at home and account for any days you plan on eating out.

    • Check your cupboards and refrigerator first to prevent you from purchasing food you have already.

    • Before you go shopping, plan your meals for that week and only purchase those things you require for those meals.

    • Only purchase what you will need and plan on using. Buy in bulk to save money if you can and know you will use off of it before it goes bad.

  2. Eat Out
    When you eat out, request smaller portions to avoid wasting leftover food on your plate and to keep you from overeating. Or, instead of leaving leftover food on your plate, ask for a takeaway box so you can bring the leftovers home.

  3. Use Your Freezer
    You can store quite a bit of food in your freezer, and this will keep it from spoiling until you are ready to eat it. There is also a “FoodKeeper App” you can use to learn information on how long you can store various items in your freezer.

  4. Shop Realistically and Smart
    While it sounds easy enough, this is not always an easy thing to do — but it is essential. When shopping for food, ensure you do not purchase too much. That might mean you will have to go shopping more often or buy less food every time.

  5. Save Leftovers and Eat Them
    If you have food leftover because you cooked too much or ordered too much while eating out, save it, and make sure you eat it. Put a label on your leftovers to help you keep track of the length of time they have been in your freezer or fridge and incorporate your leftovers into your weekly meal plans.

  6. Take Food Label Dates Lightly
    Review food label dates. That is because they are not federally regulated (except for baby formula). A “best by” or “use by” date usually indicates when the food is of its highest quality. There could be a change in texture, color, or taste after its “best by” dates. Chances are if you have been going by food label “best by” or “use by” dates, you have been throwing away perfectly good food. That said, if you have milk that has an expired date, and it smells spoiled, it most likely is.

  7. Keep a Food Tracking Journal
    Maintain a waste log to keep track of what you are tossing out, which can help prevent you from continuing this habit. You might even want to attach a dollar sign on the food you throw out. That will help you see the actual “money” you are wasting.

  8. Use “Ugly” Fruits and Veggies
    These are the vegetables and fruits that are imperfect, maybe bruised a little, or have brown spots on them. But they are still good. You can whip up some “ugly” fruits or veggies into a healthy smoothie or soup for your family or friends, and they will not even notice the difference.

  9. Use the Two-Hour Rule
    Do not leave perishable foods out for more than two hours at room temperature, for safety reasons. Refrigerate all leftovers within a couple of hours of eating them.

  10. Compete With Your Friends
    Compete with family and friends to see who can reduce food waste the most.
You do have control over the food you waste. If it is not possible to decrease food you waste, at least keep it out of the landfills. You can donate safe, untouched, and nutritious food to food banks to help feed people in need. You can also compost food waste instead of tossing it out.

Reducing Food Waste at Home

View Resource Reducing Food Waste at Home