Steve Repak's Blog, page 6
January 7, 2015
Back to Equifax.com | About Finance Blog Home Credit Insurance Tax Retirement Real Estate Family Money You are here: Finance Blog Home > Retirement > Retirement Saving Resolutions to Make Righ
It’s time to start thinking about New Year’s resolutions, and you may want to put saving for retirement at the top of your list.
I’ve found that for many people, saving for retirement isn’t a priority. If you’re young, you might think that retirement is years away and you have plenty of time to save. If you’re older, you might think you’re behind on savings and it’s too late to start. No matter where you are in life, make a commitment now to start doing things differently.
Here are three resolutions to help you get going in the right direction.
Resolution 1: Write down your reasons for saving for retirement.
One big reason people fail at sticking to resolutions is because there is nothing actually motivating them to change their habits and reach their goals. If you are just saving because you need to meet the savings goal you came up with using a retirement calculator, that isn’t going to motivate you to start saving.
Instead, imagine the things you want to do in retirement and how you are going to feel when you do them. For example, maybe you want to spend more time with your children or grandchildren. You might want to travel the world or possibly take a part-time job in a career for which you really have a passion. Once you have the reasons for your goals written down, you can then work on the numbers.
Resolution 2: Calculate your retirement number.
After you’ve gotten in touch with your feelings, it’s time to crunch some numbers. There are many retirement savings calculators available on the Internet, and it might be in your best interest to calculate your retirement number using several different sites.
I like choosetosave.org, which offers an easy-to-use, two-page worksheet that can help you estimate how much you need to save for a comfortable retirement. I do not have any affiliation and cannot guarantee the accuracy of this site, but I think it should be at least one of the sites you check out.
Resolution 3: If all else fails, something is better than nothing.
Life is busy. Maybe you want to take the time to write down your feelings and calculate what you need to start saving so you don’t have to work forever, but you just can’t get around to it. If you still want to stick to this resolution, do yourself a favor and keep it simple. Whatever you have been saving for retirement, save a little more. For example, if you have not saved anything for retirement, start putting a little away now. If you have been diligent about putting money away in your retirement savings account, your goal should be to save even more. Even $5 a month more is better than nothing.
Article courtesy of Equifax Finance Blog
http://blog.equifax.com/retirement/re...
I’ve found that for many people, saving for retirement isn’t a priority. If you’re young, you might think that retirement is years away and you have plenty of time to save. If you’re older, you might think you’re behind on savings and it’s too late to start. No matter where you are in life, make a commitment now to start doing things differently.
Here are three resolutions to help you get going in the right direction.
Resolution 1: Write down your reasons for saving for retirement.
One big reason people fail at sticking to resolutions is because there is nothing actually motivating them to change their habits and reach their goals. If you are just saving because you need to meet the savings goal you came up with using a retirement calculator, that isn’t going to motivate you to start saving.
Instead, imagine the things you want to do in retirement and how you are going to feel when you do them. For example, maybe you want to spend more time with your children or grandchildren. You might want to travel the world or possibly take a part-time job in a career for which you really have a passion. Once you have the reasons for your goals written down, you can then work on the numbers.
Resolution 2: Calculate your retirement number.
After you’ve gotten in touch with your feelings, it’s time to crunch some numbers. There are many retirement savings calculators available on the Internet, and it might be in your best interest to calculate your retirement number using several different sites.
I like choosetosave.org, which offers an easy-to-use, two-page worksheet that can help you estimate how much you need to save for a comfortable retirement. I do not have any affiliation and cannot guarantee the accuracy of this site, but I think it should be at least one of the sites you check out.
Resolution 3: If all else fails, something is better than nothing.
Life is busy. Maybe you want to take the time to write down your feelings and calculate what you need to start saving so you don’t have to work forever, but you just can’t get around to it. If you still want to stick to this resolution, do yourself a favor and keep it simple. Whatever you have been saving for retirement, save a little more. For example, if you have not saved anything for retirement, start putting a little away now. If you have been diligent about putting money away in your retirement savings account, your goal should be to save even more. Even $5 a month more is better than nothing.
Article courtesy of Equifax Finance Blog
http://blog.equifax.com/retirement/re...
December 20, 2014
3 Things to Plan For in the New Year
Proverbs 24:27 (NLT) “Do your planning and prepare your fields before building your house’.
The Bible says we should not worry about tomorrow, but it also tells us that we should plan for it. Planning is probably not the way you want to celebrate the holidays, but please consider at least reviewing three areas of your finances while you have some free time. Make some time a day or two after Christmas because before you know it, you will be super busy again in the New Year.
1. Plan to RETIRE!!!
Food, housing, clothes, cars, healthcare, etc. If you think a loaf of bread and a gallon of milk is expensive now, can you imagine how much it is going to cost 20 years from now? As the cost of living increases, you will need more retirement money later to pay for it. The sad truth is people take more time to plan for a family vacation than for retirement. The only way you can be ready for this is by setting aside money now. If you have not been putting any money away for retirement, make a commitment to start putting something away beginning in January. Even if it isn’t a lot, something is better than nothing! Consider meeting with a Certified Financial Planner ™ (CFP®). He or she can help you plan a road map to retirement. You can find a local CFP® by going to www.letsmakeaplan.org
2. Plan to be DEBT FREE
Would you believe it if I told you that American’s 50 and up had a higher combined balance on their credit cards in 2012 than do people who are younger? You would think older but wiser, but that isn’t the case when we are talking about debt. Having debt at any age puts you at a higher risk for a financial disaster but as you get older that risk grows exponentially. Let’s say you have a house payment of $2,000, credit cards that cost you $200 every month and a $300 car payment. When you are working it might be manageable but having to pay out $2,500 each month on a fixed income can really hurt. Your goal should be to be completely out of debt by the time you retire, ideally earlier. Start earning interest on your own money instead of paying interest to someone else.
3.Plan to SERVE
Proverbs 11:25 (NLT) “The generous will prosper; those who refresh others will themselves be refreshed.”
Money can’t buy happiness but serving can! Serving others will develop discipline and make you aware of others’ misfortune which can help you stay focused on what is truly important, which by the way can have a major impact on your money as well as every other part of your life. Plan time once a month with your family or friends when you can serve others so you can experience true joy that money can never buy!
Original Articles Posted on http://nicoleodell.com/2014/12/3-thin...
The Bible says we should not worry about tomorrow, but it also tells us that we should plan for it. Planning is probably not the way you want to celebrate the holidays, but please consider at least reviewing three areas of your finances while you have some free time. Make some time a day or two after Christmas because before you know it, you will be super busy again in the New Year.
1. Plan to RETIRE!!!
Food, housing, clothes, cars, healthcare, etc. If you think a loaf of bread and a gallon of milk is expensive now, can you imagine how much it is going to cost 20 years from now? As the cost of living increases, you will need more retirement money later to pay for it. The sad truth is people take more time to plan for a family vacation than for retirement. The only way you can be ready for this is by setting aside money now. If you have not been putting any money away for retirement, make a commitment to start putting something away beginning in January. Even if it isn’t a lot, something is better than nothing! Consider meeting with a Certified Financial Planner ™ (CFP®). He or she can help you plan a road map to retirement. You can find a local CFP® by going to www.letsmakeaplan.org
2. Plan to be DEBT FREE
Would you believe it if I told you that American’s 50 and up had a higher combined balance on their credit cards in 2012 than do people who are younger? You would think older but wiser, but that isn’t the case when we are talking about debt. Having debt at any age puts you at a higher risk for a financial disaster but as you get older that risk grows exponentially. Let’s say you have a house payment of $2,000, credit cards that cost you $200 every month and a $300 car payment. When you are working it might be manageable but having to pay out $2,500 each month on a fixed income can really hurt. Your goal should be to be completely out of debt by the time you retire, ideally earlier. Start earning interest on your own money instead of paying interest to someone else.
3.Plan to SERVE
Proverbs 11:25 (NLT) “The generous will prosper; those who refresh others will themselves be refreshed.”
Money can’t buy happiness but serving can! Serving others will develop discipline and make you aware of others’ misfortune which can help you stay focused on what is truly important, which by the way can have a major impact on your money as well as every other part of your life. Plan time once a month with your family or friends when you can serve others so you can experience true joy that money can never buy!
Original Articles Posted on http://nicoleodell.com/2014/12/3-thin...
November 25, 2014
Ideas for Saving Money this Thanksgiving and Holiday Season
With the end of the year coming quickly I wanted to share some ideas on how you might save some money this Thanksgiving as well as for rest of the Holiday Season, while simultaneously think of others!
Idea #1. Put your life in perspective
I have wrote several times that no matter how bad you think you have it, someone else has it even worse.
To be reminded of how truly blessed your life is, consider showing how thankful you are by serving others. There are many non-profits, charities, and other type of organizations that are desperate for people who not only can volunteer food but also volunteer their time to help out others in need. It is a great way to spend time with your friends and family and really make a difference in other people's lives.
Idea #2. Be a Savvy Shopper
Buy your protein EARLY! Another thing you want to consider is only serving either turkey or ham but not both. Plan to keep things simple, for example making a pot of mashed potatoes is much less expensive than a scalloped potato casserole. When you do go shopping make a list before hand and ensure you have had something to eat before you go. There's a saying that goes "Don't shop when you're hungry... no, no, no!
Idea #3. Ask Your Guest to Bring Something
No matter if your guest can cook or not, ask them bring either food or drinks. For the truly culinary challenged, they can help by bringing drinks, napkins, disposable storage containers or other supplies. Sharing the load has many benefits beyond the financial and most guests are happy to contribute.
Article courtesy of FinLit http://www.finlit.com/news/861?view=n...
Idea #1. Put your life in perspective
I have wrote several times that no matter how bad you think you have it, someone else has it even worse.
To be reminded of how truly blessed your life is, consider showing how thankful you are by serving others. There are many non-profits, charities, and other type of organizations that are desperate for people who not only can volunteer food but also volunteer their time to help out others in need. It is a great way to spend time with your friends and family and really make a difference in other people's lives.
Idea #2. Be a Savvy Shopper
Buy your protein EARLY! Another thing you want to consider is only serving either turkey or ham but not both. Plan to keep things simple, for example making a pot of mashed potatoes is much less expensive than a scalloped potato casserole. When you do go shopping make a list before hand and ensure you have had something to eat before you go. There's a saying that goes "Don't shop when you're hungry... no, no, no!
Idea #3. Ask Your Guest to Bring Something
No matter if your guest can cook or not, ask them bring either food or drinks. For the truly culinary challenged, they can help by bringing drinks, napkins, disposable storage containers or other supplies. Sharing the load has many benefits beyond the financial and most guests are happy to contribute.
Article courtesy of FinLit http://www.finlit.com/news/861?view=n...
November 22, 2014
Changing Seasons
Are you a spring, summer, winter or fall person? I am proud to call myself a summer person. I love the hot weather, going to the beach, and the many hours of sunlight. Do you like spring, when things start coming alive? Or maybe you are a fall person who loves seeing the leaves change. Take a second to think about it.
As I was driving home from the gym the other day, I was thinking about the first day of fall and then the quickly fleeting fall that will soon become winter – my least favorite season, by the way. I was thinking of how quickly one season moves to the next, and how easy it is for me to thrive in the summer and dread the winter. We all go through seasons of life that are more enjoyable than others. In fact, some of those changing seasons are downright miserable, but through the years, I have found a few things that have helped me enter and exit each season more gracefully.
Most of my articles are written regarding finances. And while many of these points can certainly be applied to your finances, hopefully, they speak to your season, your life, and are principles you can implement and live by.
1. Do the little things in life right, because if you don’t, you won’t get the big things right...
What comes to mind for me is my daily devotional and spending time with God. The further we get from God’s word, the closer we get to bad choices.
2. Life is easier with friends. We are all different bodies of Christ with our own unique skills, talents and passions...
Don’t be afraid to ask for help and by the same token be willing to lend a helping hand.
3. Keep moving forward...
We all fall short and cannot change what we did yesterday but we do have the opportunity to make better decisions today and tomorrow.
4. Live fearlessly...
You have to do things differently for things to change. Insanity is doing the same thing day after day and expecting different results.
5. Never underestimate the power of hope and faith...
Start singing when you are up to your ears in poop and remember this verse – Philippians 4:13 (NASB) “I can do all things through Him who strengthens me.”
Through many of my own seasons of life, these are the central truths that have kept me pushing on, pursuing God regardless of the ups and downs, the highs and lows. May your own seasons be full of growth, encouragement, and learning.
via http://thelifeofasinglemom.com/changi...
The Life of a Single Mom Ministries
As I was driving home from the gym the other day, I was thinking about the first day of fall and then the quickly fleeting fall that will soon become winter – my least favorite season, by the way. I was thinking of how quickly one season moves to the next, and how easy it is for me to thrive in the summer and dread the winter. We all go through seasons of life that are more enjoyable than others. In fact, some of those changing seasons are downright miserable, but through the years, I have found a few things that have helped me enter and exit each season more gracefully.
Most of my articles are written regarding finances. And while many of these points can certainly be applied to your finances, hopefully, they speak to your season, your life, and are principles you can implement and live by.
1. Do the little things in life right, because if you don’t, you won’t get the big things right...
What comes to mind for me is my daily devotional and spending time with God. The further we get from God’s word, the closer we get to bad choices.
2. Life is easier with friends. We are all different bodies of Christ with our own unique skills, talents and passions...
Don’t be afraid to ask for help and by the same token be willing to lend a helping hand.
3. Keep moving forward...
We all fall short and cannot change what we did yesterday but we do have the opportunity to make better decisions today and tomorrow.
4. Live fearlessly...
You have to do things differently for things to change. Insanity is doing the same thing day after day and expecting different results.
5. Never underestimate the power of hope and faith...
Start singing when you are up to your ears in poop and remember this verse – Philippians 4:13 (NASB) “I can do all things through Him who strengthens me.”
Through many of my own seasons of life, these are the central truths that have kept me pushing on, pursuing God regardless of the ups and downs, the highs and lows. May your own seasons be full of growth, encouragement, and learning.
via http://thelifeofasinglemom.com/changi...
The Life of a Single Mom Ministries
November 17, 2014
Thanksgiving Money-Saving Tips
1 Thessalonians 5:18 (NLT) “Be thankful in all circumstances, for this is God’s will for you in Christ Jesus.”
With November upon us and Thanksgiving just around the corner, now is a great time to reflect on the many blessings for which you are thankful. And because we are also entering what most of us find to be the most expensive season of the year, I thought it would be a good idea to share some tips to help you save a little money while still enjoying Turkey Day with your friends and family.
Thanksgiving Money-Saving Tips
Tip #1. Plan for the meal in advance
Maybe you have always served both turkey and ham. Try sticking with one protein this year because we all know that good meat ain’t cheap! Also plan to keep things simple. For example making a pot of mashed potatoes is much less expensive than a scalloped potato casserole. You also want to plan on shopping in advance. It seems like a no-brainer but many people wait until the last minute to find out the items or food that they need have sold out, or yes, grocery stores are indeed closed Thanksgiving morning. If there are items that you can freeze ahead of time, get them now so you can experience less stress with last minute grocery shopping and maybe save some money at the same time.
Tip #2. (BYOF) Bring your own food
Have others bring food and drinks. Not only does this help the person hosting the event because they won’t be spending the entire day slaving over a hot stove, but it is also a great way to reduce the large financial burden of having to buy everything yourself. If you completed Tip #1 and planned your menu you can now ask friends and family members to be responsible for some of the items. For example, you can ask someone to bring a side dish such as a vegetable or maybe you know someone who loves to bake that can bring a dessert. Even folks that can’t cook can help by bringing drinks, napkins, disposable storage containers or other supplies. Sharing the joy of cooking has many benefits beyond the financial and most guests are happy to contribute.
Tip #3. Show your thankfulness by serving strangers
To be reminded of how truly blessed your life is, consider showing how thankful you are by serving others. There are many organizations, soup kitchens, and shelters that are desperate for people who not only can volunteer food but also volunteer their time to help out others in need. It is a great way to spend time with your friends and family and Galatians 5:13 (NLT) says “For you have been called to live in freedom, my brothers and sisters. But don’t use your freedom to satisfy your sinful nature. Instead, use your freedom to serve one another in love"
courtesy of ChooseNow Ministries and Steve Repak
http://nicoleodell.com/2014/11/thanks...
With November upon us and Thanksgiving just around the corner, now is a great time to reflect on the many blessings for which you are thankful. And because we are also entering what most of us find to be the most expensive season of the year, I thought it would be a good idea to share some tips to help you save a little money while still enjoying Turkey Day with your friends and family.
Thanksgiving Money-Saving Tips
Tip #1. Plan for the meal in advance
Maybe you have always served both turkey and ham. Try sticking with one protein this year because we all know that good meat ain’t cheap! Also plan to keep things simple. For example making a pot of mashed potatoes is much less expensive than a scalloped potato casserole. You also want to plan on shopping in advance. It seems like a no-brainer but many people wait until the last minute to find out the items or food that they need have sold out, or yes, grocery stores are indeed closed Thanksgiving morning. If there are items that you can freeze ahead of time, get them now so you can experience less stress with last minute grocery shopping and maybe save some money at the same time.
Tip #2. (BYOF) Bring your own food
Have others bring food and drinks. Not only does this help the person hosting the event because they won’t be spending the entire day slaving over a hot stove, but it is also a great way to reduce the large financial burden of having to buy everything yourself. If you completed Tip #1 and planned your menu you can now ask friends and family members to be responsible for some of the items. For example, you can ask someone to bring a side dish such as a vegetable or maybe you know someone who loves to bake that can bring a dessert. Even folks that can’t cook can help by bringing drinks, napkins, disposable storage containers or other supplies. Sharing the joy of cooking has many benefits beyond the financial and most guests are happy to contribute.
Tip #3. Show your thankfulness by serving strangers
To be reminded of how truly blessed your life is, consider showing how thankful you are by serving others. There are many organizations, soup kitchens, and shelters that are desperate for people who not only can volunteer food but also volunteer their time to help out others in need. It is a great way to spend time with your friends and family and Galatians 5:13 (NLT) says “For you have been called to live in freedom, my brothers and sisters. But don’t use your freedom to satisfy your sinful nature. Instead, use your freedom to serve one another in love"
courtesy of ChooseNow Ministries and Steve Repak
http://nicoleodell.com/2014/11/thanks...
October 27, 2014
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...
August 30, 2014
Should I Save Money or Pay Off Debt?
Most basic financial decisions really come down to common sense, but sometimes common sense is not always the correct path to take. When it comes to saving money vs. paying off debt, the right answer might not be the one you assume.
Think about the following hypothetical situation: You have $50 in your savings account, which is earning one-half of 1 percent in interest, and a credit card with a $2,000 balance on which you are being charged 15 percent interest. You have just received an unexpected windfall of $1,500 from your tax refund. What will you do with that $1,500?
Common sense doesn’t always work
Common sense dictates that it would make better financial sense to take that $1,500 and pay it towards your debt because your credit card is charging you a higher interest rate than what you are earning in your savings account.
But here is the problem: after you’ve paid down your debt, you still only have $50 in savings. When you’re faced with an unexpected expense, such as a transmission that’s gone out or a refrigerator that’s broken down, you have to use your credit card to pay it—and you’re back where you started. Unless you build your savings, you will always depend on credit.
The only cure for debt is savings
Debt is a disease that destroys the financial health of many individuals, including yours truly. I wasn’t able to really put a dent in my debt until I was able to build my savings. I had a spending issue because I always spent more than I earned. Once I forced myself to save money by allocating part of each paycheck to savings, I had no choice but to start spending less because I had less money to spend. I was motivated to stay on track when I started to see my savings account grow.
Should I pay off debt or save money? The answer is yes—do both
I believe if your goal is to get out of debt once and for all, you need to build your savings while you are paying down debt. Once you have $1,000 in savings, then you can decide to start putting more money towards your debt and less in savings. However you decide to allocate your money, the most important point is that you need to actually do something. Don’t be like most people who wonder why their money situation never improves.
Whether you choose to build your savings first or pay off your debt first, doing one is always better than doing neither.
So what do I think about the hypothetical situation? I would take the $1,500 and put $1,000 in my savings and $500 toward my debt. It might not make common sense, but I know the only cure for debt is to have savings.
courtesy of http://blog.equifax.com/credit/should...
Think about the following hypothetical situation: You have $50 in your savings account, which is earning one-half of 1 percent in interest, and a credit card with a $2,000 balance on which you are being charged 15 percent interest. You have just received an unexpected windfall of $1,500 from your tax refund. What will you do with that $1,500?
Common sense doesn’t always work
Common sense dictates that it would make better financial sense to take that $1,500 and pay it towards your debt because your credit card is charging you a higher interest rate than what you are earning in your savings account.
But here is the problem: after you’ve paid down your debt, you still only have $50 in savings. When you’re faced with an unexpected expense, such as a transmission that’s gone out or a refrigerator that’s broken down, you have to use your credit card to pay it—and you’re back where you started. Unless you build your savings, you will always depend on credit.
The only cure for debt is savings
Debt is a disease that destroys the financial health of many individuals, including yours truly. I wasn’t able to really put a dent in my debt until I was able to build my savings. I had a spending issue because I always spent more than I earned. Once I forced myself to save money by allocating part of each paycheck to savings, I had no choice but to start spending less because I had less money to spend. I was motivated to stay on track when I started to see my savings account grow.
Should I pay off debt or save money? The answer is yes—do both
I believe if your goal is to get out of debt once and for all, you need to build your savings while you are paying down debt. Once you have $1,000 in savings, then you can decide to start putting more money towards your debt and less in savings. However you decide to allocate your money, the most important point is that you need to actually do something. Don’t be like most people who wonder why their money situation never improves.
Whether you choose to build your savings first or pay off your debt first, doing one is always better than doing neither.
So what do I think about the hypothetical situation? I would take the $1,500 and put $1,000 in my savings and $500 toward my debt. It might not make common sense, but I know the only cure for debt is to have savings.
courtesy of http://blog.equifax.com/credit/should...
August 14, 2014
Don’t Bust Your Budget with Back to School Expenses
Proverbs 27:23-24(NIV) “Be sure you know the condition of your flocks, give careful attention to your herds; for riches do not endure forever, and a crown is not secure for all generations.”
It’s hard to believe that it is time once again to start planning for back to school. Having children myself, I understand the struggles because of the cost of school supplies and clothes. So what are some ideas you can use to make back to school shopping a little less painful on your checkbook?
1. Buy in bulk
#2 pencils, spiral notebooks, folders, and paper. Every child needs these basic supplies in school and most of the time it makes sense to buy these in bulk. Unless you have a child that is graduating this year, consider buying their school supplies like pencils, paper and glue sticks, which by the way do not spoil, in bulk because it will turn out to be less expensive and your child will likely need to replace these throughout the year, and will definitely need those items again next year. When buying in bulk though, just make sure you remember where you put all of the excess supplies for the following year so you aren’t wasting money buying them again.
2. Recycle supplies from last year
My child’s standard ruler, safety scissors, hand held pencil sharpener, pencil pouch, and sometimes even their book bag are still in great shape at the end of the school year and it makes financial sense to use them again for the upcoming school year. Take time to do an inventory with your children to see if they truly need new supplies or if you can get away with using some of the previous year’s items again.
3. It’s Okay to say no
While you can’t avoid back to school expenses altogether, there are ways to control them so you can keep a little more of your hard earned money! I have written a few articles in the past for back to school shopping where I have said, “It’s Okay to say No”. In the previous articles, the “No” was meant for the child. Saying “No” this year is going to be for the lists I get from my childrens’ schools. For example, this year I am going to say “No” to purchasing hand sanitizer, paper towels, 3 boxes of tissues, 2 reams of copy paper, 1 ream of colored paper, the Swiffer duster, zip-lock bags, a four-pack of Dry Erase markers, disinfectant wipes, and Band-Aids. When I take these optional items and multiply it by three (for my three children) that comes out to a lot of money!
Article courtesy of Choose Now Ministries http://nicoleodell.com/2014/08/dont-b...
It’s hard to believe that it is time once again to start planning for back to school. Having children myself, I understand the struggles because of the cost of school supplies and clothes. So what are some ideas you can use to make back to school shopping a little less painful on your checkbook?
1. Buy in bulk
#2 pencils, spiral notebooks, folders, and paper. Every child needs these basic supplies in school and most of the time it makes sense to buy these in bulk. Unless you have a child that is graduating this year, consider buying their school supplies like pencils, paper and glue sticks, which by the way do not spoil, in bulk because it will turn out to be less expensive and your child will likely need to replace these throughout the year, and will definitely need those items again next year. When buying in bulk though, just make sure you remember where you put all of the excess supplies for the following year so you aren’t wasting money buying them again.
2. Recycle supplies from last year
My child’s standard ruler, safety scissors, hand held pencil sharpener, pencil pouch, and sometimes even their book bag are still in great shape at the end of the school year and it makes financial sense to use them again for the upcoming school year. Take time to do an inventory with your children to see if they truly need new supplies or if you can get away with using some of the previous year’s items again.
3. It’s Okay to say no
While you can’t avoid back to school expenses altogether, there are ways to control them so you can keep a little more of your hard earned money! I have written a few articles in the past for back to school shopping where I have said, “It’s Okay to say No”. In the previous articles, the “No” was meant for the child. Saying “No” this year is going to be for the lists I get from my childrens’ schools. For example, this year I am going to say “No” to purchasing hand sanitizer, paper towels, 3 boxes of tissues, 2 reams of copy paper, 1 ream of colored paper, the Swiffer duster, zip-lock bags, a four-pack of Dry Erase markers, disinfectant wipes, and Band-Aids. When I take these optional items and multiply it by three (for my three children) that comes out to a lot of money!
Article courtesy of Choose Now Ministries http://nicoleodell.com/2014/08/dont-b...
August 12, 2014
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...
July 14, 2014
Don’t Believe Everything you Read when it comes to Financial Advice
2 Timothy 3:13(NLT) “But evil people and impostors will flourish. They will deceive others and will themselves be deceived.”
Most people are extremely trusting and that can get them into a heap of trouble. There is an old saying that goes: don’t believe everything you hear and only ½ what you see. For some reason if people read something on the Internet or their favorite social media site, they trust that information and act on it as prudent advice. When it comes to financial information, the Internet can be a great resource but it should not be your only resource. Here are a few things to consider before taking financial, or any other type of advice for that matter, from the internet or your favorite social media site.
1. Most people can spell
If you can spell “Christian” or “Finance Expert” you can call yourself one. Just because someone has a blog, website, Facebook page, etc., don’t assume they are truly an expert or that they have your best interests at heart. Take the time to verify the information and keep in mind that all credentials (the little letters at the end of their name) are not created equal.
2. If it sounds too good to be true…. RUN
There are no secrets or short cuts to being financially secure. If someone promises overnight riches or the next sure thing, RUN! People tend to make decisions with their emotions, especially when it comes to money. Two strong emotions are fear and greed. Many times financial decisions are based on those two emotions and you can find yourself making short-term decisions that might make you feel good now only to regret them further down the road.
3. Your BFF on Facebook
We usually trust our family and friends the most. That is not a bad thing but the problem is when we trust the advice they may post. It could be a stock tip they overheard from their dentist or something they read while they were searching the internet. Don’t assume information that comes from a family member or friend is good, reliable or relevant. There is nothing wrong with trusting the people you love, just make sure you take time to verify the information before you take any action.
4. One size does not fit all
A great example is when you read about how much you should save for retirement. The general rule is you need to save enough to replace 75% of your pre-retirement income adjusted for inflation. But that amount can change for each person based on their age now, their age when they retire, how long they might need the money to last, how much debt they have, pensions, security, etc. You can use information as a guide, and hopefully it can provide you with a little direction, but it might make better sense to sit down with a professional than can provide you with information and guidance that will be more specific to your situation.
Always remember the following truths about financial advice: there are no free rides, everybody wants your money and don’t believe everything you read unless of course you are reading your Bible. The internet and social media can be entertaining and there is a ton of information out there, but just because it glitters doesn’t mean it’s gold. It is ok to trust, but always verify the organization, the information, the person, etc. before making any decisions when it comes to your finances or anything else that might be important in your life!
via @ http://nicoleodell.com/2014/07/dont-b...
Most people are extremely trusting and that can get them into a heap of trouble. There is an old saying that goes: don’t believe everything you hear and only ½ what you see. For some reason if people read something on the Internet or their favorite social media site, they trust that information and act on it as prudent advice. When it comes to financial information, the Internet can be a great resource but it should not be your only resource. Here are a few things to consider before taking financial, or any other type of advice for that matter, from the internet or your favorite social media site.
1. Most people can spell
If you can spell “Christian” or “Finance Expert” you can call yourself one. Just because someone has a blog, website, Facebook page, etc., don’t assume they are truly an expert or that they have your best interests at heart. Take the time to verify the information and keep in mind that all credentials (the little letters at the end of their name) are not created equal.
2. If it sounds too good to be true…. RUN
There are no secrets or short cuts to being financially secure. If someone promises overnight riches or the next sure thing, RUN! People tend to make decisions with their emotions, especially when it comes to money. Two strong emotions are fear and greed. Many times financial decisions are based on those two emotions and you can find yourself making short-term decisions that might make you feel good now only to regret them further down the road.
3. Your BFF on Facebook
We usually trust our family and friends the most. That is not a bad thing but the problem is when we trust the advice they may post. It could be a stock tip they overheard from their dentist or something they read while they were searching the internet. Don’t assume information that comes from a family member or friend is good, reliable or relevant. There is nothing wrong with trusting the people you love, just make sure you take time to verify the information before you take any action.
4. One size does not fit all
A great example is when you read about how much you should save for retirement. The general rule is you need to save enough to replace 75% of your pre-retirement income adjusted for inflation. But that amount can change for each person based on their age now, their age when they retire, how long they might need the money to last, how much debt they have, pensions, security, etc. You can use information as a guide, and hopefully it can provide you with a little direction, but it might make better sense to sit down with a professional than can provide you with information and guidance that will be more specific to your situation.
Always remember the following truths about financial advice: there are no free rides, everybody wants your money and don’t believe everything you read unless of course you are reading your Bible. The internet and social media can be entertaining and there is a ton of information out there, but just because it glitters doesn’t mean it’s gold. It is ok to trust, but always verify the organization, the information, the person, etc. before making any decisions when it comes to your finances or anything else that might be important in your life!
via @ http://nicoleodell.com/2014/07/dont-b...
