Farnoosh Torabi's Blog, page 62
September 12, 2012
NY1: A Budget Fit For Life
[image error]Check out Tara Lynn Wagner’s piece on NY1 News, where I and other personal finance experts offer advice on how to best balance your budget. From NY1:
During election season we hear a lot about budgets. We expect the government to have one and to balance it. But what about ourselves?
“Less than 22 percent of the country actually has a budget. So when you think about what that means it means a lot of people are running around uncertain of where their dollars are going or uncertain of how they are going to pay next months bills,” says LearnVest.com Founder and CEO Alexa von Tobel.
In fact, Farnoosh Torabi, host of Yahoo’s Financially Fit, says roughly half of Americans are living paycheck to paycheck. Establishing a budget, she says, could help them find a little breathing room.
Watch the video and read more here.
Photo Courtesy, Kenteegardin
Top Small Business Apps
Popular tablets like the iPad, Nook and Kindle are ideal for not just play, but business, too. Yet, while a growing number of Americans own these tablet devices, a recent survey by the Small Business Authority found only 28% – less than a third – of business owners use them for work purposes. It’s a missed opportunity, considering all the useful tablet-friendly applications on the market that can boost your business’ operations and productivity.
Here are some smart ways to bank on your tablet and related apps:
Be the Envy of Coworkers at Meetings
Ditch the agenda, daily planner and bulky briefcase. Popular apps like Evernote will give you an edge in the boardroom. The software organizes your ideas, allowing you even to add video and photos to your note taking. Unlike your Moleskine, the notes also upload to Evernote’s site where you can access or store them for later. In the world of productivity, it’s hard to beat Google however. You probably already use the tech giant’s many products but you can also connect to your Gmail, calendar and documents on Google Drive from your device.
Make Operations Digital
Apps on your device can include more than games and magazines. Log mileage, photograph receipts and submit expenses using the Expensify app. Contractors especially might like FormMobi‘s digital clipboard, where you can use their library of forms and your device’s GPS to survey projects and collect signatures for reports. It also has forms for event registration and petitions among others.
Get Paid More, Faster
No matter the industry, most small businesses can use a Point of Sale (POS) app that will allow them to accept credit and debit payments instantly. Examples include Square and GoPayment. Many of these payment apps and card swipers are free and have pay-as-you-go pricing — so you just pay a percentage on the total transaction when you use it. With GoPayment, you pay 2.7% on the total transaction when you swipe a card.
And consider this: A recent survey of 1,000 small business owners by Intuit, 45% said they do accept credit cards and a majority (83%) of them said they were making more sales as a result. In fact, more than half claimed to make more than $1,000 a month due to accepting credit cards.
Impress Customers
Novel uses of technology show your customers that your business is on the cutting edge. The private doctor can replace her old magazines with e-readers for a more pleasurable waiting experience. The event photographer can digitize his portfolio for easy presentation to potential clients. And with so many people connecting through social media, a tablet could also be just what you need to engage them on the go. Finally, the paperless technology is an environmentally friendly option sure to impress green customers.
Photo Courtesy, Mikeymikez.
September 11, 2012
Unexpected Tax Breaks
Taxes–They’re one of the few things that are certain in life. And as we aim to make the most of our annual returns, you may be pleasantly surprised to hear about some of these strange but true tax deductions that get the thumbs-up from Uncle Sam.
Gen Z: Don’t Expect an Inheritance
[image error]Do you anticipate receiving an inheritance someday? A recent USA Today report highlights a TD Ameritrade study that finds many young adults expect an inheritance from their parents that - more than likely - won’t be there when the time comes. According to the report, while 40% of those ages 13 to 22 think their parents will leave something behind, only 16% of parents plan on it. Moreover, 58% of parents said it’s not a primary concern. From the article:
“There is a little bit of the halo effect of youth vs. the reality of what the situation will be like,” says Carrie Braxdale, managing director of investor services at TD Ameritrade. In fact, the odds are slim that young adults will inherit wealth because their parents face a less secure retirement world, with stock market turmoil and mounting health care costs.
Only 37% of baby boomers have fully disclosed the details of their finances, according to a recent survey from U.S. Trust. With those numbers, the cause of the disconnect is clear.
READ MORE: RETIRING WITH A FULL HOUSE
The takeaway? Discuss family family finances early and often. Adult children don’t need to know everything but they should have an idea of whether or not parents may be leaving an inheritance so they can plan accordingly. More than anything, they should be looped in on plans for retirement, long-term care and how to handle a parent’s estate when the time comes. Discussing this will help to avoid costly mistakes and lots of confusion.
Photo Courtesy, Tax Credits
September 10, 2012
Rate Roundup: Where to Save?
While the current rate environment has proven a homebuyer’s dream, it’s been a challenge for savers looking to outpace inflation.
With unemployment still hovering around 8%, Federal Reserve Chairman Ben Bernanke hinted last week at increasing efforts to stimulate the economy by driving interest rates even lower. Such a move might mean opportunity for those in the housing market but challenges for savers.
The Fed will meet this week and likely announce measures to inject money into the economy by buying mortgage-backed securities. Operation Twist, a similar plan that began in 2011, proved unsuccessful in spurring consumer spending but has driven interest rates to record lows.
Rates on 30-year fixed mortgages ticked down to 3.51% last week. Other rates stayed relatively flat. The average 1-year CDs yielded .75% last week and checking accounts just 0.57%.
As fall approaches, consider an “autumn cleaning,” or season review, of your portfolio. A balanced portfolio can curb the threat of rising inflation. But if you’re looking to secure your principle investment, consider savings accounts with online banks or credit unions, where yields are typically higher – with some online banks offering up to .95% interest with no minimum requirements. You can also purchase liquid CDs. They have on average lower yields but also fewer penalties, allowing you to stay flexible in an uncertain environment.
Photo Courtesy,Victor1558
September 8, 2012
Ways to Save $500 or More on Closing Costs
If you’re interested in buying a home or refinancing an existing mortgage, you couldn’t pick a better time with interest rates at historic lows. But, before you seal the deal make sure you calculate closing costs – since they can really add up. These days average closing costs are estimated at $3,754, according to Bankrate.com, and while that figure is actually down nearly 7% from a year ago, here’s how you can get it even lower.
Ask For a GFE By Name. The road to lower closing costs begins with the Good Faith Estimate (or GFE). Loan originators are required, since 2010, to provide consumers with a standard HUD-created GFE form. The GFE lists all fees associated with the loan and is designed to help borrowers compare costs. Lenders are only required to provide a GFE within three business days of your loan application but start shopping for the best deal by requesting it early in the process. Other fee estimates aren’t binding so be sure to ask for a GFE by name. You’ll avoid costly surprises because under new laws, lenders must pay any excesses above $50 on quoted costs.
Choose Your Lender Wisely. An origination fee is the lender’s charge for services rendered. It’s non-negotiable on your loan but varies between lenders. With a GFE in place, you can best compare costs. Expect to pay origination, processing and underwriting fees for the work done on your loan. Some lenders may promise zero closing costs but that usually means a higher interest rate. Never pay however common lender markups like application or “commitment” fees that can add up to $500 to your closing costs. If they show up on your GFE, ask your lender to remove the markups. If he won’t, find another. The best choice will have a good balance of interest rate, lender fees and points on the loan. Compare them using lines 1-4 of your GFE.
Negotiate Third Party Fees. You’ll find real savings on line 6 of the GFE. These fees are for third-party services. Your lender will list service providers along with their fees on the GFE but you’re not limited to them. Shop around for: appraisals, surveys, couriers, an attorney, title and inspection services. Prices vary by state but what they have in common is that they’re negotiable. Real estate broker Eugenia Foxworth of Foxworth Realty suggests seeking referrals from your broker. “Attorneys’ flat fees, for example, can range from $900 to $3,500 in New York,” she says. “Ask your realtor to refer someone that specializes in the area and benefit from their established relationship.”
September 6, 2012
Money Mistakes that Could Ruin Your Finances
On any given day, we face a myriad of financial decisions: What to buy, how much to spend, where to save. And when life gets busy, it’s easy to make mistakes – some small, others big. Here are five major mistakes that can really take a toll on your finance and some advice.
Money 911: Working in Retirement
[image error]I joined Jean Chatzky and David Bach Wednesday for Today’s Money 911, where we discussed retirement. Watch for tips on how to save for your retirement and ways to earn income once you’ve reached the Golden Years.
Visit NBCNews.com for breaking news, world news, and news about the economy
Student Cards Go Social
While banks can no longer recruit on college campuses or give away gifts in exchange for student credit card applications, they’re finding loopholes by going social. In fact, American Express, Capital One and Discover are just a few institutions doling out deals through Facebook, Twitter and Foursquare in exchange for sign-ups and card usage.
With back-to-school season in full swing, here are a few things students should know when card companies come knocking.
The Laws Have Changes. The Credit Card Act of 2009 prohibits banks from giving away free merchandise to students on and around college campuses. What’s more, they can no longer issue credit cards to those under the age of 21, unless the applicant has a qualified cosigner (usually a parent) or proof of sufficient income. In response, card companies have cast a wider net online. Discover, for example, offers deals on dorm furniture through its Facebook page and even 450 point FarmVille points when approved for a card through the popular app.
Even If You’re Eligible, Be Cautious. Credit cards are still risky business for students. With 4.1 million young Americans unemployed and the average college grad nearly $4,000 in credit card debt, beware of getting lured into a card you can’t manage. It could mean delaying your dreams of renting your first place or buying a car.
Your Rates Will Be Higher. While issuers can’t suddenly raise your rates and fees anymore, the average student card is still more than two percentage points higher than a standard non-rewards credit card at 17.34%, according to IndexCreditCards.com. Student cards are also the single rate area that’s seen a steady increase from the first quarter of this year – with no signs of slowing down.
High rates and conventional wisdom say your undergraduate years aren’t the time to take on additional financial obligations but if you’re going to get a card anyway, here’s what you need to know: Only get a card if you can pay off the balance in full every month and seek cards that offer rewards and cash back on purchases you’re most likely to make: textbooks, food and movie tickets. Start with NerdWallet.com’s 2012 list of best student cards and their interactive search tool to find the best deal based on your spending, credit and available rates. You can also check out Bankrate.com and Credit.com for more card options.
September 4, 2012
Attend College for Free
On Today, Farnoosh and Al discussed how you can get access to quality higher education for little to nothing – and, in some cases, for free. There are ways to get that degree without crushing debt if you where to look. Watch the clip, in case you missed it.
Visit NBCNews.com for breaking news, world news, and news about the economy
