Steve Repak's Blog - Posts Tagged "finance"
Fox & Friends
I have the honor and privledge to be back on again Fox & Friends this Sunday morning on November 18th at 6:45am ET (rescheduled) where I will talk about the 10 Things The Military Taught Me About Money
How to Live a VIP Lifestyle on a Budget
There’s a saying that good meat isn’t cheap and cheap meat isn’t good—in other words, you get what you pay for. So when you’re on a budget, how can you enjoy the finer things in life without breaking the bank?
Fortunately, you can treat yourself and the ones you love to some VIP-style fun every once in a while, even if you don’t make a million dollars a year. Here are a few ways you can eat out, travel, and have fun on a budget:
Dining out
Going out to eat is definitely a treat, and costs can quickly add up. Save money by not ordering drinks and instead only ordering water. Non-alcoholic beverages and wine are where restaurants make most of their profits.
Another way to save a little money while still being able to eat great food is to go out for lunch instead of dinner. The portions will most likely be smaller, but that means your bill will be smaller, too. You can also try a different day of the week. Many restaurants offer deals on slower-traffic days in order to drive more business.
Traveling
Try vacationing in the off-season. You can find some great vacation packages by booking during off-peak months, and resorts and beaches may not be very busy during those times.
If you are flying, try scheduling your flight to leave and return during the middle of the week or booking flights with connections instead of non-stop or direct flights. It won’t be as quick, but it will be cheaper (and you’ll have some time to stretch your legs). You may also want to consider alternate means of transportation, such as bus or train, if time is not a factor and if your travel destination is only a few hundred miles away.
The finer things
If you love to be pampered, consider checking out the local beauty colleges or spa training schools in your area instead of pricier salons or spas. You’ll save money, and the person taking care of you will appreciate the opportunity to further perfect his or her craft. You can also try daily deals sites, such as LivingSocial and Groupon, which often have discounted prices for spa and salon services. But buyer beware: You can definitely wreck your budget if you don’t know when to say no to a deal.
If you prefer a good shopping spree to unwind, gently used could be the way to go. Consider shopping at clothing consignment stores and online stores. You can find new and nearly new items for a fraction of the price.
Can you travel, eat out, and enjoy the finer things without breaking the bank? I think you can as long as you have some self-control, are able to budget, and remember that you aren’t a multi-millionaire. What are your tips for enjoying yourself on a budget?
via http://blog.equifax.com/retirement/ho...
Fortunately, you can treat yourself and the ones you love to some VIP-style fun every once in a while, even if you don’t make a million dollars a year. Here are a few ways you can eat out, travel, and have fun on a budget:
Dining out
Going out to eat is definitely a treat, and costs can quickly add up. Save money by not ordering drinks and instead only ordering water. Non-alcoholic beverages and wine are where restaurants make most of their profits.
Another way to save a little money while still being able to eat great food is to go out for lunch instead of dinner. The portions will most likely be smaller, but that means your bill will be smaller, too. You can also try a different day of the week. Many restaurants offer deals on slower-traffic days in order to drive more business.
Traveling
Try vacationing in the off-season. You can find some great vacation packages by booking during off-peak months, and resorts and beaches may not be very busy during those times.
If you are flying, try scheduling your flight to leave and return during the middle of the week or booking flights with connections instead of non-stop or direct flights. It won’t be as quick, but it will be cheaper (and you’ll have some time to stretch your legs). You may also want to consider alternate means of transportation, such as bus or train, if time is not a factor and if your travel destination is only a few hundred miles away.
The finer things
If you love to be pampered, consider checking out the local beauty colleges or spa training schools in your area instead of pricier salons or spas. You’ll save money, and the person taking care of you will appreciate the opportunity to further perfect his or her craft. You can also try daily deals sites, such as LivingSocial and Groupon, which often have discounted prices for spa and salon services. But buyer beware: You can definitely wreck your budget if you don’t know when to say no to a deal.
If you prefer a good shopping spree to unwind, gently used could be the way to go. Consider shopping at clothing consignment stores and online stores. You can find new and nearly new items for a fraction of the price.
Can you travel, eat out, and enjoy the finer things without breaking the bank? I think you can as long as you have some self-control, are able to budget, and remember that you aren’t a multi-millionaire. What are your tips for enjoying yourself on a budget?
via http://blog.equifax.com/retirement/ho...
Money Can't Buy Hapiness but a Vacation Might!
If you didn’t know…. Money can’t buy happiness… well maybe not long term happiness anyways. But it can certainly buy you a vacation, and with it being summer time I thought it would be appropriate to talk about how to vacation without going bankrupt.
If you are working hard isn’t it ok to sometimes also play hard? Vacations are a time when you can reconnect with friends and family and recharge your batteries. What happens many times though is we either spend too much or finance our vacations the wrong way… and yes, I mean finance them through the use of credit cards. I have two tips that you can use so you can enjoy your time on vacation instead of worrying about how you will have to pay for it.
1. Pay Now or you might have to Pray about it Later
When I say pay now…that means pay for your vacation with what you have in your vacation fund. Most everybody has heard of the envelope system where you set aside money in envelopes for each of your spending categories. I use a variation of that concept for my larger expenses throughout the year like property taxes, home owners insurance and family vacation. For me I actually have a separate account that is not linked to either my checking or savings. It is a second savings account that I have at another financial institution. The reason I do that is so I am not tempted to use that money for anything but paying for my vacation. I set my budget for our annual family vacation and then I create a draft or automatic bill to transfer a portion of this to my vacation account each pay period. For example, let’s say I am budgeting $2600 for my next vacation. If I am paid bi-weekly this works out to be 26 paydays per year, so I would set up a draft for every two weeks to transfer approximately $100. If you get paid weekly that would be $50 dollars a week. If you do this for an entire year you will have $2,600 saved up for your vacation next year. The best part is that you won’t have to put it on your credit card!
2. Sometimes Cheap Meat is Good
I like to tell people that cheap meat isn’t good and good meat isn’t cheap, or you get what you pay for. The exception to that rule can be vacation time. To save money consider vacationing off season. You can find some great vacation packages by not taking them during the peak months. Also, instead of staying at a resort, consider renting out a condo or apartment. What I like about that is that you have the ability to cook some or all of your meals instead of eating out. If you have a family of four or more, taking everybody out to eat three times a day for a week can eat up your entire vacation budget alone! Consider cheaper methods of travel. If you have the time, consider traveling by train. Yes I said train! Believe it or not train travel is becoming increasingly popular as a way to get to your destination and see some of this great country along the way.
Ecclesiastes 8:15 (NIV) “So I commend the enjoyment of life, because there is nothing better for a person under the sun than to eat and drink and be glad. Then joy will accompany them in their told all of the day of the life God has given them under the sun”.
Most people work extremely hard and I believe it is perfectly acceptable to invest some money on a vacation. The memories you will create are priceless. They will stay with you and your family for a lifetime; you just don’t want to spend the rest of your life paying for it!
via http://nicoleodell.com/2014/06/money-...
If you are working hard isn’t it ok to sometimes also play hard? Vacations are a time when you can reconnect with friends and family and recharge your batteries. What happens many times though is we either spend too much or finance our vacations the wrong way… and yes, I mean finance them through the use of credit cards. I have two tips that you can use so you can enjoy your time on vacation instead of worrying about how you will have to pay for it.
1. Pay Now or you might have to Pray about it Later
When I say pay now…that means pay for your vacation with what you have in your vacation fund. Most everybody has heard of the envelope system where you set aside money in envelopes for each of your spending categories. I use a variation of that concept for my larger expenses throughout the year like property taxes, home owners insurance and family vacation. For me I actually have a separate account that is not linked to either my checking or savings. It is a second savings account that I have at another financial institution. The reason I do that is so I am not tempted to use that money for anything but paying for my vacation. I set my budget for our annual family vacation and then I create a draft or automatic bill to transfer a portion of this to my vacation account each pay period. For example, let’s say I am budgeting $2600 for my next vacation. If I am paid bi-weekly this works out to be 26 paydays per year, so I would set up a draft for every two weeks to transfer approximately $100. If you get paid weekly that would be $50 dollars a week. If you do this for an entire year you will have $2,600 saved up for your vacation next year. The best part is that you won’t have to put it on your credit card!
2. Sometimes Cheap Meat is Good
I like to tell people that cheap meat isn’t good and good meat isn’t cheap, or you get what you pay for. The exception to that rule can be vacation time. To save money consider vacationing off season. You can find some great vacation packages by not taking them during the peak months. Also, instead of staying at a resort, consider renting out a condo or apartment. What I like about that is that you have the ability to cook some or all of your meals instead of eating out. If you have a family of four or more, taking everybody out to eat three times a day for a week can eat up your entire vacation budget alone! Consider cheaper methods of travel. If you have the time, consider traveling by train. Yes I said train! Believe it or not train travel is becoming increasingly popular as a way to get to your destination and see some of this great country along the way.
Ecclesiastes 8:15 (NIV) “So I commend the enjoyment of life, because there is nothing better for a person under the sun than to eat and drink and be glad. Then joy will accompany them in their told all of the day of the life God has given them under the sun”.
Most people work extremely hard and I believe it is perfectly acceptable to invest some money on a vacation. The memories you will create are priceless. They will stay with you and your family for a lifetime; you just don’t want to spend the rest of your life paying for it!
via http://nicoleodell.com/2014/06/money-...
Four Reasons Why Renting a House May Be Better Than Buying One
Growing up, I was constantly told that buying a home was the American Dream. When I was in the military, I was sometimes looked down upon because I was a renter, but it just made more sense for me at the time.
Here are four reasons you might consider renting rather than buying a home:
1. You are a traveler. I think back to my time in the military, when I had to pick up and move every three to four years. If you’re in a profession that requires you to move often, like I was, renting could easily be a better choice. Buying and selling a home are expensive endeavors, and getting involved with either one could wind up being a losing proposition, depending on how long you will own the house, the housing market in your area, and current interest rates, among other things.
2. You moved to an overheated market. Depending where you are geographically, your local real estate market may be red hot, requiring you to overpay to get the house you want. Think Houston, Texas, in the 1980s, just before it fell victim to the oil bust; Silicon Valley up until the dot-com bust in 2000; and, most recently, the pre-Great Recession housing market.
Comparing local rents to local home sale prices might help you determine if it makes better sense to rent rather than buy a home. If home values are high, consider renting until prices drop and you can score a deal on your dream home.
3. You hate commitment. Maybe you don’t want to be tied down for 20 or 30 years; maybe you don’t want to have to worry about maintenance costs, taxes, and fluctuating interest rates; or maybe you just want to have a change of scenery every once in a while.
And heaven forbid your neighborhood should deteriorate or a shopping center should pop up on the vacant land behind your house. It is a lot easier to get away from a not-so-good neighbor or neighborhood if you are renting.
4. You are starting over or just starting out. Financially speaking, if you are in one of these situations, you might not be able to come up with a nice down payment, or your cash flow could be a little unpredictable. There is nothing wrong with saving for a few years or waiting until you are sure you can afford a mortgage payment along with the taxes, insurance, HOA dues, and utilities that come with homeownership.
Some people like going to the beach, while other people like going to the mountains—renting versus buying is the same thing. The choice may simply come down to personal preferences. You can still live the American Dream if you don’t own a house, especially if homeownership doesn’t make sense for you.
via http://blog.equifax.com/real-estate/f...
Here are four reasons you might consider renting rather than buying a home:
1. You are a traveler. I think back to my time in the military, when I had to pick up and move every three to four years. If you’re in a profession that requires you to move often, like I was, renting could easily be a better choice. Buying and selling a home are expensive endeavors, and getting involved with either one could wind up being a losing proposition, depending on how long you will own the house, the housing market in your area, and current interest rates, among other things.
2. You moved to an overheated market. Depending where you are geographically, your local real estate market may be red hot, requiring you to overpay to get the house you want. Think Houston, Texas, in the 1980s, just before it fell victim to the oil bust; Silicon Valley up until the dot-com bust in 2000; and, most recently, the pre-Great Recession housing market.
Comparing local rents to local home sale prices might help you determine if it makes better sense to rent rather than buy a home. If home values are high, consider renting until prices drop and you can score a deal on your dream home.
3. You hate commitment. Maybe you don’t want to be tied down for 20 or 30 years; maybe you don’t want to have to worry about maintenance costs, taxes, and fluctuating interest rates; or maybe you just want to have a change of scenery every once in a while.
And heaven forbid your neighborhood should deteriorate or a shopping center should pop up on the vacant land behind your house. It is a lot easier to get away from a not-so-good neighbor or neighborhood if you are renting.
4. You are starting over or just starting out. Financially speaking, if you are in one of these situations, you might not be able to come up with a nice down payment, or your cash flow could be a little unpredictable. There is nothing wrong with saving for a few years or waiting until you are sure you can afford a mortgage payment along with the taxes, insurance, HOA dues, and utilities that come with homeownership.
Some people like going to the beach, while other people like going to the mountains—renting versus buying is the same thing. The choice may simply come down to personal preferences. You can still live the American Dream if you don’t own a house, especially if homeownership doesn’t make sense for you.
via http://blog.equifax.com/real-estate/f...
Will My Future Spouse’s Bad Credit Affect Me?
In any relationship, each person brings his or her own baggage. I’m not just talking about emotional baggage—there is also financial baggage of which you should be aware. Before you say, “I do,” keep in mind that you’ll be making a promise to stand by your spouse for richer and for poorer because money is one of the top reasons many couples fight.
If your soon-to-be spouse isn’t as financially fit as you, it doesn’t mean you should call off the big day. However, you do need to have some discussions with him or her before you walk down the aisle.
Joint accounts vs. separate accounts
Before you get married, decide whether you will both deposit your earnings into a joint account or keep your finances separate. Joint accounts could potentially lead to a financial emergency, especially if one person is not tracking what he or she is spending or is spending more than what is in the account.
On the other hand, having separate accounts creates unique issues. For example, you might be unable to see what your spouse is spending or saving. This could lead to problems later because it could result in two people living off of one person’s savings and retirement.
There is no right or wrong answer, but you should have a plan before you tie the knot. In a healthy relationship, there has to be some give and take—an important concept when it comes to your money or any other important decision.
Your first house
The good news is that if you both are working and you apply for a loan jointly, the lender will look at your combined income. The bad news is that the lender will also look at each of your credit reports and your combined debt-to-income ratios. If one spouse has blemished credit or a lot of debt, that could mean a higher interest rate on the loan—or possibly a complete rejection of the application.
Does this mean that if your significant other has bad credit, you can’t get a house? Maybe, but it could also mean you can afford less house as you may face a higher interest rate that increases your monthly payment. You may simply have to apply for a loan in your name only, but this means you will only qualify for a home you could afford on your own instead of for a home you could afford on both salaries.
Credit cards
Bad credit can haunt you for years, so you should both be aware of your personal credit histories and debt situation before you get married. This may raise some red flags around which you will have to plan. Does your spouse have a lot of debt? You will need to make sure the accounts don’t become past due. Is your spouse a heavy spender? You may want him or her to start using a joint card to encourage wiser spending habits. Are you considering applying for a joint credit card with someone who might not have a stellar credit score? You might want to consider just adding him or her as an authorized user to get better terms.
If you are the one who doesn’t have stellar credit, you can be added as an authorized user, but be aware that not all companies report authorized users to the national credit reporting agencies (CRAs), so you might not get any credit for paying your part of the bill.
There are always pros and cons with each route you choose. The point here is that you need to have a plan before your wedding day. Love is blind, but lenders aren’t. They will look carefully at your credit history, so make sure you are making financial decisions with your head and not with your heart.
Article courtesy of http://blog.equifax.com/credit/will-m...
If your soon-to-be spouse isn’t as financially fit as you, it doesn’t mean you should call off the big day. However, you do need to have some discussions with him or her before you walk down the aisle.
Joint accounts vs. separate accounts
Before you get married, decide whether you will both deposit your earnings into a joint account or keep your finances separate. Joint accounts could potentially lead to a financial emergency, especially if one person is not tracking what he or she is spending or is spending more than what is in the account.
On the other hand, having separate accounts creates unique issues. For example, you might be unable to see what your spouse is spending or saving. This could lead to problems later because it could result in two people living off of one person’s savings and retirement.
There is no right or wrong answer, but you should have a plan before you tie the knot. In a healthy relationship, there has to be some give and take—an important concept when it comes to your money or any other important decision.
Your first house
The good news is that if you both are working and you apply for a loan jointly, the lender will look at your combined income. The bad news is that the lender will also look at each of your credit reports and your combined debt-to-income ratios. If one spouse has blemished credit or a lot of debt, that could mean a higher interest rate on the loan—or possibly a complete rejection of the application.
Does this mean that if your significant other has bad credit, you can’t get a house? Maybe, but it could also mean you can afford less house as you may face a higher interest rate that increases your monthly payment. You may simply have to apply for a loan in your name only, but this means you will only qualify for a home you could afford on your own instead of for a home you could afford on both salaries.
Credit cards
Bad credit can haunt you for years, so you should both be aware of your personal credit histories and debt situation before you get married. This may raise some red flags around which you will have to plan. Does your spouse have a lot of debt? You will need to make sure the accounts don’t become past due. Is your spouse a heavy spender? You may want him or her to start using a joint card to encourage wiser spending habits. Are you considering applying for a joint credit card with someone who might not have a stellar credit score? You might want to consider just adding him or her as an authorized user to get better terms.
If you are the one who doesn’t have stellar credit, you can be added as an authorized user, but be aware that not all companies report authorized users to the national credit reporting agencies (CRAs), so you might not get any credit for paying your part of the bill.
There are always pros and cons with each route you choose. The point here is that you need to have a plan before your wedding day. Love is blind, but lenders aren’t. They will look carefully at your credit history, so make sure you are making financial decisions with your head and not with your heart.
Article courtesy of http://blog.equifax.com/credit/will-m...
Why Estate Planning Documents Should Be Part of Your Financial Planning Strategy
There is an old saying that people spend more time planning for a vacation than they do for retirement. You can imagine that most people spend even less time with estate planning. Planning for death or incapacity might not be on your bucket list, but it must be considered, especially when it relates to your overall financial planning strategy.
1. When you die, your assets will go somewhere
Whether or not you have your estate planning documents in good order, your assets will go somewhere. They just might not go where you want them to go if you don’t have your estate planning documents together.
For example, if you do not have your documents titled or registered in the correct way, have out-of-date beneficiaries on your contracts, or die intestate—without a will—the person or persons who might be relying on those assets after you die could suffer. They may face a financial burden because they don’t receive those assets, or they may receive them only after a significant delay.
2. Minimize taxes and fighting between heirs
Having a properly drawn will or trust in place prior to your death may help minimize certain tax consequences. It also discourages conflicts between your heirs. If you have minor children, it is especially important to list a primary caregiver and an alternate because you likely do not want the courts deciding who will take care of your children.
3. Make your wishes known now, while you are competent
Nobody ever plans on becoming ill or being involved in an incapacitating accident. But if you are unable to communicate or make rational decisions, especially regarding your health and money, it could leave both you and those who might have to take care of you in a bind.
4. Pay now or run the risk of paying more later
What about the cost? Could it be painful on your pocketbook to have an attorney draw up your plan? Sure, but it could cost your heirs a lot more if something happens and you don’t have correct documentation in place. Because of the rapidly changing nature of federal and state laws, you should consider meeting with a licensed attorney who is in good standing with his or her state’s bar association and who specializes in estate planning.
No matter how much money you may or may not have, it is important to have your estate planning documents in place. Not doing so can bring about much pain and misery for the people who have to take care of you, your family, or your estate.
via Equifax Finance Blog http://blog.equifax.com/retirement/wh...
1. When you die, your assets will go somewhere
Whether or not you have your estate planning documents in good order, your assets will go somewhere. They just might not go where you want them to go if you don’t have your estate planning documents together.
For example, if you do not have your documents titled or registered in the correct way, have out-of-date beneficiaries on your contracts, or die intestate—without a will—the person or persons who might be relying on those assets after you die could suffer. They may face a financial burden because they don’t receive those assets, or they may receive them only after a significant delay.
2. Minimize taxes and fighting between heirs
Having a properly drawn will or trust in place prior to your death may help minimize certain tax consequences. It also discourages conflicts between your heirs. If you have minor children, it is especially important to list a primary caregiver and an alternate because you likely do not want the courts deciding who will take care of your children.
3. Make your wishes known now, while you are competent
Nobody ever plans on becoming ill or being involved in an incapacitating accident. But if you are unable to communicate or make rational decisions, especially regarding your health and money, it could leave both you and those who might have to take care of you in a bind.
4. Pay now or run the risk of paying more later
What about the cost? Could it be painful on your pocketbook to have an attorney draw up your plan? Sure, but it could cost your heirs a lot more if something happens and you don’t have correct documentation in place. Because of the rapidly changing nature of federal and state laws, you should consider meeting with a licensed attorney who is in good standing with his or her state’s bar association and who specializes in estate planning.
No matter how much money you may or may not have, it is important to have your estate planning documents in place. Not doing so can bring about much pain and misery for the people who have to take care of you, your family, or your estate.
via Equifax Finance Blog http://blog.equifax.com/retirement/wh...
