Tag: money tips

Saving For The Future

On September 17, 2018

It is important to save money at any point in your life. Life can be unpredictable, and everyone should prepare for the unexpected to some degree. Establishing a kind of financial “cushion” is a great way to help yourself from financial downfall in the unpredictable future. Saving money for future plans is essential for retirement, vacation, school, and anything else you can think of. This article will give you a few you can prepare and start saving for your future.

Establish Goals

The very first step is to establish your goals. Take a look at your current financial situation and set a realistic goal for yourself that you will be able to reach. Break down the goal into smaller digestible pieces that you can work on every day. Setting an overarching goal for yourself can be intimidating, but once it is broken down into smaller daily tasks that you can complete, the overall goal does not seem so daunting.

Spontaneity

Individuals who set financial goals for themselves find it difficult or unbearable to bind themselves to strict budgets. One aspect of your budget should be used just for spontaneous events that may come up during the week. Considering that last minute plans happen, it is a great idea to have a set amount of money that you can spend either each day or each week to help you stay on your budget. You will be less likely to falter on your budget if you have already budgeting frivolous spending!

Save First

The very first thing you should do when you get paid is to put money away towards your goal. You can decide whether you should manually put away the fixed amount or have it automatically taken out of your paycheck, so you never see the money in the first place. Whichever method you decide to choose, paying yourself first is the most important key to planning for your financial future.

Consider putting one-time payments such as tax returns, bonuses, or raises into your savings account. If you can function well with your current cash flow, then you have the opportunity to save even more with the added cash flow that comes from raises, bonuses, and tax returns.

If you are comfortable with the idea of investing your money, it is a great way to potentially earn more money for your financial goal and future. As with any investing, there is a varying amount of risk involved. Look into ways that you can intelligently invest your money to ensure the best returns!

Telltale Signs When It’s Okay To Borrow Money

By Tom Leydiker

On October 18, 2017

In Blog, Debt, Finance

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If you have ever consulted with a financial advisor, you know that borrowing money is one of the last things you should do, especially if you are trying to build up a strong credit history or investment portfolio.

However, there are certain exceptions to this rule. If you encounter a drastic or detrimental life event, are responsible for aiding your extended family in times of trouble, or suddenly find yourself inundated with bills, you should not feel as though you have no options or means of receiving help.

With that in mind, let us take a look at some telltale signs of when it is okay to borrow money:

When you cannot afford moving costs.

If you recently purchased a home, you may be faced with a plethora of expenses you had not even taken into consideration (i.e., storage, transportation, sudden repairs or renovations, etc.). Borrowing money in this scenario can give you great peace of mind while you are getting moved and settled into your new space.

When you are hit with large medical bills.

Unfortunately, no matter how young or healthy you are, facing medical expenses is an inevitability. Thankfully, there are ways to ease the burden of big medical expenses.

Now, credit bureaus allow patients 180 days to address their medical expenses prior to putting them on their credit reports. This gives individuals enough time to sort through their options and make the most educated decision possible – all without feeling rushed or uncertain of their financial standing.

When your car requires major repairs.

A lack of reliable transportation puts a major wrench in your plan to consistently earn and save money. However, if you are in a financial bind and require assistance to get your car back in working order, borrowing money is likely your best option. This will ensure you are still able to work and will even allow you to pay off your expenses at your own pace – a definite win-win scenario.

Regardless of your reason for borrowing money, it is imperative that you remember the importance of paying off your debt in a timely manner. Otherwise, you may end up paying more due to accrued interest than you would have if you budgeted your finances to make the largest payments you could manage – within the realm of feasibility, of course.

How Collections Can Affect Your Credit

By Tom Leydiker

On August 25, 2017

In Blog, Debt, Finance

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Debt collectors, according to both the Federal Trade Commission and Consumer Financial Protection Bureau, are one of the most complained-about businesses. When you hear about “debt collectors,” the first image to come to mind is an aggressive loan shark. Even a “nice” debt collector can be a pain – yet they aren’t going anywhere anytime soon.

A debt collection is a type of financial account that’s been sent to a third-party debt collector. Hiring a debt collector is usually more cost-effective for a company than to keep spending their resources pursuing payment. Most credit card accounts get sent to a collection agency after six months of non-payment, while other businesses send them out even sooner – it varies business by business.

Debt collectors will call you and your friends, send letters, and even show up at your home to collect money – all of which is perfectly legal. If a debt collector doesn’t have your phone number or correct address, however, you may never receive notice of the debt until you see it listed on your credit report.

How does this all affect your credit?

Whenever an account is sent to a collection agency, the original creditor or the collector updates the account on your credit report. A debt collection is one of the worst types of credit report accounts. It reveals that you have become seriously delinquent on an account. This will cause your credit score to plummet, causing you to be denied for credit cards and loans in the future, particularly if it’s recent or remains unpaid.

These accounts can stay on your credit report for as long as seven years, meaning that their negative effects can haunt you for a long time. One of the best ways to lessen the harm of a collection account is to pay off the debt so that it will affect your collection less over time. Another way is to continue to pay all of your additional bills on time.

Financial Security: Preparing For The Unexpected

By Tom Leydiker

On May 19, 2017

In Blog, Finance

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As you plan for your financial future, you are anticipating all of the monumental milestones that will occur as you continue along the trajectory of your life. These milestones are intimidating because they often require you to make very serious decisions that are financially demanding. Some of these milestones include choosing the college you want to attend, committing to signing a mortgage for a new home, starting your own family, diversifying your investment portfolio, saving up for retirement, etc.

But the one area that not many think to plan for, mainly because it is not a very pleasant topic to dwell on, is what to do in the event that a spouse passes away unexpectedly. There are resources available to help plan for this (e.g. life insurance), but it’s also good practice to be prepared for an emergency by having a plan-of-action set in place to ensure everything is organized and accounted for so that you aren’t scouring through a disarray of documents.

Here are a few of the most imperative areas that you should prepare for in case of an emergency:

Estate Plan And End-Of-Life Care

One important conversation that need to happen is what will happen to that person’s physical and monetary elements after they pass away. These documents should be readily available for review once this happens so that everything can be carried out appropriately. Some other information that falls into this category are documents such as: your will, your end-of-life care, your power of attorney, etc. You will also want to make sure that your estate plan is as up-to-date as possible.

Securing Essential Documents

These are documents that have compiled up throughout your life, starting with your birth certificate and including any important paperwork you’ve received since. You will also want to organize all of your most important financial documents, from bank account information to any pertinent investment material.

Obtaining All Passwords

Now that there has been a push for more paperless transactions, there are going to be quite a few accounts that can only be accessed online. Nothing would be more time-consuming and aggravating than trying to relocate passwords or having to go through the process of updating them once you can’t find the original passwords. Put them all in one, easily accessible document.

Seeking Aid For Future Financial Planning

If you were not the one in charge of handling your finances, it may be beneficial to look into hiring a financial advisor to help you bear this new responsibility you are now being forced to take on.

Life is unpredictable. And while no one wants to dote on the possibility of an expected death, it is worth developing a plan-of-action in case a dire situation would occur. If you are prepared for the unexpected, you won’t be left trying to grieve while also trying to get your finances in order.

4 Steps Towards A Debt-Free Life

By Tom Leydiker

On May 4, 2017

In Debt

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For some, being in debt is something that resulted from careless spending. Frivolously making purchases for unnecessary commodities with credit cards with the mindset that you will pay it off later by making the minimum monthly payments is the quickest way that Americans get themselves into debt.

For others, debt comes more unexpectedly, perhaps through an unpredicted emergency you were not financially prepared for. Maybe your car broke down and you either had to pay an expensive garage bill or the garage deemed your car unfixable so you are now forced to purchase a new vehicle.

Whatever the cause of your debt is, it’s important that you start developing better money habits as soon possible to get out of debt and prevent additional debt – a very easy cycle to fall into and a difficult one to get out of. It is being estimated that, on average, 50 percent of households currently have debt ranging around $14,000.

Here are some ways you can prevent future debt while also implementing strategies that will help you to work towards managing your current debt:

Step #1: Create a list of all of your debts, including their interest rates.

Don’t skip over this step! Before you can start tackling your debt, it’s important to be aware of exactly how much you have. Write it down in a notebook or start making a list in a spreadsheet so that you have everything contained in one area for future reference. The three most important things you will want to take down: the total amounts you owe, the annual percentage rates (or interest rates), and the monthly minimum payments.

Step #2: Set goals as you work towards paying off your debt.

It will be beneficial for both your stress and your action plan if you can break apart your debt into more manageable portions. Find out how much money you can dedicate to paying off your debt every month and, then, you can do a rough estimate of how many months or years it will take you to pay off the total amount. Set milestones for yourself as you start contributing more money to your debt, whether it be every $1,000 you pay off or every $5,000 you pay off.

Step #3: Focus on the payments with the highest annual percentage rates first.

This is where that list you created at the beginning of the process will come in handy. As you begin paying off your debt, focus on the balances that have the highest interest rates first. Work to eliminate those first by dedicating as much money to them as you can while still being able to pay the monthly minimum payments on your other balances.

Step #4: Find additional ways to bring in income.

If you bring in additional income, that is money that you can be dedicating right to your debt. The thought of working a second job may not seem appealing, but it will only be temporary until you are debt-free again, and this will make paying off your debt go by more quickly.