10 New Years’ Financial Resolutions

Losing weight and stopping smoking are the two most common New Years’ resolutions Americans make. But harder than either of these may be the determination to get your finances into shape. In fact, if you’re in shape and your finances are not, life can be miserable.

Here are 10 New Years’ Resolutions that will help you get your finances back on track.

1. Know What You Want

Write down what you want this year. Knowing what you want will give you goals to shoot for and reasons to save for those goals. Keep a list of the things you want the most and target them by not overspending on things you think you have to have but don’t really need.

2. Kill Your Debt

Take a good look at what kinds of debt you are carrying. Evaluate whether you are able to do anything about them this year that you weren’t doing last year. Are there numerous credit cards that still have outstanding balances? Can you consolidate any of them to the lowest interest credit card. Can you make a long term plan to get rid of this type of debt? How long will it take you? Be sure to work on paying them off, not making minimum payments. The credit card companies love it when you do that because they make more money from you.

3. Pay Bills On Time

Nothing can hurt your credit more than paying bills too late. Not only do you loose money when this happens, you lose in your credit scores. That will hurt you when you try to get a loan for a home purchase or a business loan.

4. Plan Ahead

Planning helps in most areas of life, but with finances planning is key to your long term security. Talk to a financial planner to help you with estate planning. Forecasting what you will need as you age is critical to do while you are young. The longer you stick to your plan, the better returns you will get.

5. Monitor Your Credit Report

Keep an eye on your credit report. You may think that everything is alright, but you really need to make sure. Unexpected reporting errors do happen all the time. Make sure it isn’t happening to you.

6. Track Spending

You have probably heard this a million times. Some people do this with ease, while others struggle. If you have a hard time writing things down as you spend cash, make it a habit to use your debit cards for spending. You will be able to categorize your spending much more easily this way. You can also use your personal checks to act as a record of spending. Just make sure you can evaluate what is going out from your hard earned dollars.

7. Reduce Expenditures

This seems obvious, but are there areas that you don’t really need to be spending money on? Are you dining out too frequently? Take a cooking class to make your home cooking taste better so you won’t want to go out as much. Just look at things you can live without and do it. Live without it.

8. Make Money Doing What You Love

It doesn’t take a rocket scientist to figure out that you are going to do what you love to do so why not figure out a way to get paid for doing that. When you love what you do it hardly feels like you are working. Time goes by quickly and you tend to improve your skills along the way.

9. Use Financial Software

There really is no excuse for being in the dark about where your money is going. Free websites like Mint.com will help you set a monthly budget, set financial goals and help you to save money by alerting you when you are getting charged fees through your bank. Many people use Quicken software or Quickbooks to help them get organized. The price of the software is worth it to gain some peace of mind and financial plans.

10. Read A Book About Finance Every Month

Although this is the last of the resolutions, it is probably the most important. There are hundreds of books out there that can help you at any stage of your financial planning. The more you know, the better you can plan for financial security.

Buying a Home? Prepare, Compare, Negotiate

The U.S. Housing market has taken some heavy blows in the slowly mending recession, but it is not dead. People are buying and selling houses. But if you are in the buying mode, it is more important than ever that you be informed. A recent release by the Federal Reserve Board, titled “Looking for the Best Mortgage” has several key words: Prepare, Compare and Negotiate.

Determine Your Best Mortgage Payments

Start the process by an honest and realistic assessment of your ability to purchase a home. Be certain up front how much you can afford for a down payment and closing costs. Use a free mortgage calculator to determine your monthly payments. Start with your credit report. If it is less than perfect, due to illness or temporary loss of income, don’t just give up, assuming that you would be limited to high-cost lenders. If the information in the report is accurate but you have good reasons for the negatives, explain them to a potential lender or broker. If the less-than-perfect report can’t be explained, you probably will end up paying more. But don’t assume. Ask how a past credit history affects the price of a loan and what you would need to do to offset the current bad rating. You can obtain a current credit report by visiting www.annualcreditreport.com or calling 877-322-8228. Or go directly to the reporting agency. Equifax: (800) 685-1111; TransUnion: (800) 99196-8800; Experian: (888) 397-3742.

Mortgage Lending

Be ware of the types of lenders, including commercial banks, mortgage companies, thrift institutions and credit unions. Different lenders may quote you different prices. Contact several and compare. You may work through a mortgage broker, who would arrange a transaction rather than lending money directly. Remember that a broker is not obligated to find the best deal for you unless you have signed a contract. Consider contacting more than one broker, just as you do with the lending institutions. It may not be clear if you are dealing with a lender or a broker. Some institutions operate in both capacities and their advertisements likely do not use the word “broker.” Ask if a broker is involved in your potential purchase. A broker is usually paid a fee separate from and in addition to the lender’s origination and other fees. His compensation may be in the form of “points” paid at closing or as an add-on to your interest rate or both. Ask how your broker will be compensated so you can compared the various fees. Negotiate if it is appropriate.

Shop and Compare Mortgage Lenders

Be sure to get mortgage information from several lenders or brokers. Just the monthly payment or the interest rate is not enough. Seek information about the same loan amount, loan term and type of loan so you can compare the details. Interest rates fluctuate, sometimes several times in the same day. Even very small differences may make an impact on your payment. Ask if the rate is fixed or adjustable. If you choose an adjustable rate, keep in mind that when the rate goes up, so will your monthly payment. Get the details. Ask about the loan’s annual percentage rate, which takes into account not only the interest rate but points, broker fees and certain other credit charges, expressed as a yearly rate. Points are fees paid to the lender or broker and often are linked to the interest rate. Usually, the more points you pay, the lower the rate, to compensate for the larger amount. Your local newspaper has information about current rates and points. Ask that points be quoted as a dollar amount rather than as a number of points. A home loan is likely to involve several fees such as loan origination or underwriting, broker, transaction, settlement and closing costs. Some are negotiable. Ask. Application and appraisal fees often are required when you apply, others are paid at closing. You may be able to borrow the money to meet fees, but that will increase the loan amount and total costs. “No cost” loans may be available, bu they usually involve higher rates. Several items may be lumped into one fee. Ask questions until you understand what each fee is for.

Down Payment Requirements For Mortgages

Down payment requirements vary. They range from as little as 5 percent to 20 percent, depending on the lender’s policy. If a smaller down payment is involved, the lender may require the purchase of private mortgage insurance. Government-assisted programs such as FHA, VA or Rural Development Services generally require substantially smaller down payments. Don’t look just at the amount, be informed on all the variables.

Negotiating Your Mortgage Terms

Once you have the background information on what lenders offer, prepare to negotiate. Be aware that on any given day, lenders and brokers may offer different prices for the same loans to different customers, even if they have the same loan qualifications. Loan officers and brokers often are allowed to keep some or all of this difference as extra compensation. Such higher prices are termed ” overages.” When they occur, they are built into the prices quoted to consumers. Have the lender or broker write down all the loan’s associated costs and see if any of the elements can be waived or reduced. Be sure that one fee is not lowered while another is being raised through points. You may simply ask for better terms, quoting those more favorable that you have found elsewhere if that would be helpful. Once you feel you have done the best possible, you may want to lock in the loan. Be clear on the rate you have agreed on and how long the lock-in lasts. A fee, sometimes refundable at closing, may be charged for the lock-in. The arrangement also could backfire on you if interest rates go down while you’re waiting to close. Again, time to negotiate a compromise if possible.

Legal Protection For Home Buyers

Remember that there are laws that protect you as a potential home buyer. The Equal Credit Opportunity Act prevents discrimination based on race, color, religion, national origin, sex, marital status or age or whether any part of your income comes from a public assistance program The Fair Housing Act provides the same protections, adding handicapping conditions and familial status to the conditions that cannot be used as determinants for loans. A consumer cannot be refused a loan or charged more or offered less favorable terms because of any of the listed conditions.

For most Americans, a home is the most significant purchase they make. It is a process that should involve your best effort. Take your time. Prepare. Compare. Negotiate

Fall Discount Shopping Tips

Shopping Early: Is It Really a Smart Thing To Do?

Fall is here! Well, maybe not quite yet, but retailers would have you think otherwise. From the Back-To-School sales being prominently featured in most department stores or home office outlets, one would never guess that it is still mid-summer. It won’t be too long before the Halloween and Thanksgiving displays start popping up- if they haven’t already. Some retailers, such as Target, are even pushing early-bird Christmas shopping sales with their “Black Friday” discounts in mid-July. Some of you may be internally screaming “Enough already!” We barely made it through the Fourth of July- now they’re pushing the upcoming holiday season on us? However, if you aren’t opposed to Christmas shopping mid-summer, you may be able to find some good deals that’ll save you money in the long run.

Buying School Supplies Early- Smart or Unwise?

With all the Back-To-School deals staring you in the face, you may be tempted to start stocking up on supplies for you kids now (much to their chagrin.) While all the sales displays are tempting, it would be wisest to wait. Chances are prices will drop even lower as the school year draws closer. Another reason to wait: although you may be tempted to stock up on binders, paper, pens and pencils for your kids, doing so now might wind up being in vain. Most teachers send out a list of required materials on the first day of school. And while you may be thinking you can’t go wrong with buying the basics, some teachers are particular about the materials their students use. That 1 inch binder you bought over the summer will go to waste when you learn your child’s teacher requires a three ring binder that is approximately 1 ½ inches. Likewise, all that wide-ruled paper will be worthless if your child gets a teacher who specifically wants 8 ½ x 11 inch college ruled notebook paper. So while it may seem like a good idea to stock up now, you’ll be doing yourself and your pocketbook a favor in the long run by waiting.

Is Early Holiday Shopping Worth The Investment?

Another holiday season is upon us, or so the stores would like us to believe. Not far from those Back-To-School displays, many retailers are getting ready for Halloween, Thanksgiving, and in some cases, even Christmas. While the saying goes: “The early bird gets the worm,” in some instances this is not always true. Expert penny-savers can tell you that the best time to buy holiday décor is immediately after the holiday, as this is when everything is marked down at its lowest. So while it may be tempting to run out and stock up on Halloween decorations in July, if you can hold off until November 1st, you’ll wind up saving a lot more money. However, the downside to this shopping method is that once the holiday has passed, not only are all the decorations picked over, the things you do buy will have to go in storage for an entire year. If you’re not opposed to waiting another year before decorating for Halloween, then waiting until the day-after is a great decision. If this doesn’t appeal to you, go ahead and stock up now, before retailers hike up prices as the actual day gets nearer.

Buying early for Christmas, on the other hand, can sometimes be a wise investment, if you are smart about it. All too often, early-bird shoppers are drawn into the stores by deep discount sales, only to end up spending more than they intended when they purchase things that are not on sale. Retailers know that customers are going to be tempted to buy more than just what they came in for, so they use the discount method to lure shoppers in. If you have strong willpower and are able to resist temptation, buying items (such as toys and electronics) as Christmas gifts can be a smart move if you get them while they’re on sale. No matter how hard you try to beat the rush, chances are you’re still going to find yourself in the stores shopping for last-minute Christmas gifts. This sad fact of life is pretty much inevitable.

If you go into the stores with a smart mindset  then you are on the right track to making the most of your shopping dollars.

---

Don’t forget to yourself some money buy purchasing checks online.

Learning How To Think Like A Millionaire

There are three things that you can do with your money. You can save it. You can spend it or you can invest it. How well you do these things may determine whether you will be in the group of 7% of Americans that are millionaires.

Many years ago, people would have considered that being a millionaire would be the ultimate in luxury and wealth. Now, for some people, being a millionaire is not even considered enough to do much. Warren Buffet made his first million dollars when he was just 31 years-old. That amount of money is .002% of his current wealth. With rising billionaires like 26 year-old Mark Zuckerberg, founder of Facebook, there seems to be more money to be made than at any other time in recent history.

When you study what unique strategies millionaires use, you may get some ideas to improve your own circumstances. Whether you make $30,000 a year or $1,000,000 a year, improving your skills can help you on the road to becoming more financially secure. Maybe you’ll never be a millionaire or don’t even want to be. You still will need to make strategic financial decisions that will affect how much you enjoy your future life. If you could see your distant future life as well as you can see your life next week, you may decide to live life differently.

Let’s take a look at what millionaires say they do and how they got there.

Paul Lim, a writer for Money magazine, reported some interesting facts from a poll of millionaires. In his article, “Millionaires in the Making,” he shares with us the answers.

How did you get to be a millionaire?
95% said hard work, 83% investing wisely, 81% by being frugal and 41% by luck.

Do you feel wealthy?
42% said no.

What preparation did they have?
90% are college graduates, 5% have law degrees, 3% went to medical school.

What is the average amount annually invested?
$39,300.

What seems to be the number one thing that millionaires did to get where they are is a lot of hard work. All of us are capable of doing that. We can all become more frugal about what we spend our money on and although we are not all lucky, we can learn to invest wisely.

Did you notice that quite a few people said that even though they were millionaires, they did not feel wealthy? Feeling wealthy is probably one of the things we do have control of. Since your perspective on life can run the gamut of outright depressing thoughts to unrealistic elation, you choose where in that range you want to be. Of course, when the joys of seeing more money coming in and how nice it makes your life, it is easier to think about bigger income numbers than you have thought of before. If you can’t imagine the larger numbers in your income, will you ever improve your standard of living?

Another thing that millionaires do is to habitually save money to invest. The average amount per year that they invest is $39K. If your income level is not even that high, you can work on saving in percentages. Make it a goal to save a certain percentage of money every month. Financial experts advise you to have enough cash to pay your bills for at least six months. Whatever percentage you decide on the important thing is to follow through with your plan each month. Automate that savings if possible.

Some millionaires have also made a practice of living below their means. This falls into the category of budgeting and anyone can follow a budget. You just need to include your savings plan in your budget. It is one thing to have a million dollars sitting in your bank account, but it’s another thing to learn how to best use it.

Millionaires did not become millionaires by working for someone else. Many have started their own businesses. Anyone can start their own business for very little money and if you have a low overhead in your business plan, you can actually accomplish this while working for someone else. Did you know that only 12% of American households own their own business? Paul Lim, reported that the median income for business owners was $497,000 compared to $42,000 for non business owners. Would it be worth your time and effort to start your own business? When you can harness the power of entrepreneurial thoughts and put into action a good business plan, you are on your way to a brighter future.

Realistically speaking there are few people that reach the status of being a millionaire. Learning key money management skills and business building skills can only help you increase your productivity and increase your income. Start today to create a better outlook on life. Do what you can to take your first steps to a new life.

---

New business owners can save up to 50% off by ordering business checks online.

Ten Money Saving Tips That Anyone Can Use

More and more individuals are becoming budget conscious everyday. If you want to join the club in gaining financial freedom by saving money then you might want to use some of these money saving tips.

1. Use Cash.  Forget about your credit cards and use cash instead. You will avoid  interest fees and it will help you fight temptations to making unnecessary purchases.
2. Compare prices. Price comparisons help you save when grocery shopping. Use the Internet to do your best comparison shopping. Sites like groceryguide.com and mygrocerydeals.com allow you to compare prices in grocery stores that you shop at, saving you both time and money.
3. Use coupons. If you add up the savings you get when using coupons, you may be surprised at how much difference they make. Check your local papers, magazines or surf the net for printable coupons. Remember to check the fine print for any special rules that may apply.
4. Trade In Unwanted Electronics. National retailers like Best Buy, Costco and Sears have trade in programs. Some will accept Apple Ipods, Apple laptops, mobile phones and PC laptops and let you have gift certificates to use for new purchases.
5. Research Your Insurance Coverage. Before buying insurance for you or your loved ones compare and analyze your risks in the insurance you are currently paying for. Do you have enough to cover you in case of catastrophe? Make sure you are well covered to protect you from exorbitant losses. Meet regularly with your insurance man to discuss your protection.
6. Pay Insurance Yearly. You can avoid paying monthly fees if you pay annually. Ever little bit of savings helps. Figure out how much you can save yourself by paying annually.
7. Use Online Alerts. Many companies have an automated email alert system that will notify you of sales coming up for the products you normally buy. You can subscribe to money saving newsletters. You will be notified about amazing deals and discounts through email. Travel package deals are sometimes only available through specials advertised through email.
8. Walk More Often. Are there places you can get to by walking instead of driving? If you make it a habit to get exercise by walking places you would normally drive, you end up doing two good things for yourself. Save money on your gas expenses and your gym expenses. Maybe you’ll be able to give up an expensive gym membership with your new exercise plan.
9. Avoid Impluse Buying.  Most retail prices are lowered to get you do buy things you weren’t planning on. So sometimes even though items are on sale, they may not be a good purchase for you. Impulse buying expensive items because they are on sale has risks that come along with it. Postponing purchases can give you extra time to make sure that you really want the item and that you can really afford it.
10. Keep Learning New Ways To Save. There are a lot of sites that have information about saving money. Read those often to keep yourself alert to new money saving tips.

Creative Ways To Use Eggshells

I had the privilege to watch Jeff Yeager’s video on creative ways to use eggshells, produced by Carolyn Presutti and edited by Bill Creed.  What caught my interest was how eggshells can be recycled for many different uses which can help you save money.  In this short video, he shows us how the use of eggshells can help you to be thrifty and help the environment.

Eggshell Tips

1. Throw your eggshells into the compost pile instead of the trashcan. According to him, these eggshells are calcium rich and are great for the soil, though it may take a couple of months before they actually decompose.
2. Put your hard or soft boiled eggshells along with the ground coffee on the brewer when making it, as it lessens the bitterness of the java and improves its taste.
3. Use the eggshells as biodegradable planters for seedlings as they effectively nurture the young plants, which is quite useful if you are into gardening.  Sprinkle pieces of eggshells around your flowers and plants as they repel deer and creepy crawly pests.
4. Crush the eggshell and mix it along your dish washing soap. The solution you create acts as an abrasive which is great for removing pot stains if you shake it with water and let it stand overnight.
5. Use eggshells as hydrogen fuels for the car.According to engineers at Ohio State University,  these eggshells are perfect for use as the fuel of tomorrow.

Jeff Yeager, author of “The Cheapskate Next Door” and “The Ultimate Cheapskate’s Road Map to True Riches,” is well known for helping people save money.  He has numerous videos online teaching people how to save “practically.” He even tours by bicycle throughout the Midwest, Pacific North West and up to the East Coast to promote environmentally friendly living among Americans.

Behavioral Finance Experts Share Tips

Are you one of the 50% of Americans that don’t expect your personal finances to improve in the next six months? According to a recent Harris Poll 30% of Americans feel that their finances will worsen. Fear of losing your job or losing money influences us tremendously.

Emotional Financial Decisions

There have been studies done by behavioral finance experts that say by nature we seem to look at our own situations as worse than they actually are. Is that true for you? One solution to this problem is to figure out how to conquer the emotions that stop you from making the best financial decisions you can.

Psychologists often use the phrase, “The emotional tail wags the rational dog.” The same is true for us in managing our personal finances. So what can you do to help yourself?

The first thing to do is to save money and save money early. A gentleman was discharged from the Army in 1958 with a check for $3,500. He got some advice from the head of research at Smith Barney about what to do with his money. He was advised to save it and invest it. He ended up investing the entire amount in IBM stock because he was familiar with the company. That stock is now worth over a quarter of a million dollars.

Why Is It Hard  To Save Money?

Richard Thaler, author of the bestselling book,”Nudge,” and professor at the University of Chicago, School of Business, says that the biggest problem Americans have is just not saving enough money. It is recommended that you save ten percent of your income, but many people fall far short of that. He says that people are not perfect. We all make mistakes. Figuring out how your emotions are getting in your way of saving will go a long ways in helping you get your finances back on track.

David Laibson, an economics professor at Harvard reports that the reason that people don’t save is primarily due to procrastination. They don’t want to fill out the paperwork that would make automatic payments into a savings plan. They decide that they’ll do it next week. It’s very similar to putting off a diet. It’s much easier to start on Monday. Do something about putting a savings plan in place. Use a strategy like saving ten percent of your income and put it on auto pilot.

Can you imagine how it would feel to have done this consistently throughout your life time? Warren Buffet, the third richest person in the world, worth $47 billion dollars, keeps $20 billion dollars in cash on hand. It helps him sleep at night.

Steps You Can Take Now

Your area of focus should be on building an emergency fund that will carry you through three to six months of unemployment. Try to eliminate big money expenses that may be unnecessary. Start networking with others before you lose your job. Find organizations to join where you can network at least once a week. Seventy-three percent of six-figure earners landed their current positions through personal contacts.

Get your finances back on track by saving on a regular basis, making good financial decisions without undue emotional factors and do yourself a favor by networking with others like-minded business people on a regular basis.

Banking with an FDIC-Insured Bank

It is hard to trust anyone these days especially when it comes to money. Money talk is always serious talk which means that people are very stringent when it comes to where they will be putting their money. In these hard times, this is already the norm since money is so hard to earn that it’s almost impossible for someone to just put money anywhere. But what if you want to put your savings in the bank? Would putting your money in the bank be a much safer choice rather than just leaving it home in your closet?

Established in 1933, the FDIC or the Federal Deposit Insurance Corporation has served as a safety net for bank depositors. Ever since its inception, no depositor has lost a single dime from their FDIC-insured funds. The independent agency of the US government does not only insure US citizens, they insure other citizens from other countries as well as long as the banks they bank with are insured by FDIC.

An FDIC-insured account means that your bank account is backed by the US government in full credit and full faith. This reputation is something that other insurers cannot offer. Operating for over 70 years now, the FDIC is the people’s support system when or if their banks close. The insurance limit for every account you open in an insured bank is $250,000.  The agency however does not insure money invested in mutual funds, stocks, bonds, life insurance policies, municipal securities, and annuities even if the said investments are made in insured banks. The other types of accounts that the FDIC does not cover are safe deposit boxes and their contents. US treasury bills, notes or bonds are not insured by the FDIC as well but they are backed by the US government.

But what does this deposit insurance cover?

FDIC-insured accounts range from checking, savings, money market deposit, to time deposits and negotiable order of withdrawal (NOW). The depositors given this insurance are those who bank with insured banks. Banking with an FDIC-insured bank means your money is protected dollar for dollar. If you own two accounts in two different banks and these banks are FDIC-insured, it means that your two accounts also have the FDIC protection. This means that if these two banks close, you will have an insurance of $250, 000 for each account. If you have two accounts in one bank, you will not get two FDIC insurance, just one.

The standard maximum deposit insurance amount also known as the SMDIA allocates $250, 000 per depositor in every insured bank. This insurance will run through until December 13, 2013. By 2014, the said allocation per depositor will go back to $100,000 except for certain retirement accounts which will retain their $250, 000 per depositor insurance in every insured bank.

Banking with an FDIC-insured bank means that you as the depositor will receive insurance if the bank closes all of a sudden. Although this is something that most of us never imagine to happen, it is better to be safe than sorry.

Next Page »