FINANCIAL TIPS
10 Steps To Improve Your Financial Situation
By: James Hunt
Here are ten steps you can follow to help improve your personal financial situation and inevitably save more money: 1. Pay Yourself Weekly This may seem a bit odd, but this is an excellent way to start building a substantial savings. On a weekly basis, pay yourself $25-$50 and immediately put it in a safe place. You can even open a special savings account where this weekly "payday" can by placed to help minimize or eliminate impulsive spending. Think about it this way, if you paid yourself $25 a week, in two years you'll have accumulated $2600 (not including interest)!!! That's almost $3000 from just putting $25 aside every week! Take advantage of this money-saving opportunity. Simple, yet very effective. 2. Don't Shop For those of you that love to shop, you may find that this is one tip that could save you hundreds, maybe even thousands every year. Start using the "Need or Want" strategy. Before you spend a single dollar on anything, ask yourself, "Do I really NEED this item, or do I just WANT it??" You may find that many of the items we purchase, we do so just because it "caught our eye" or it was "an impulse buy" or "my friend bought the same thing". All these excuses just add up to wasteful spending. You can probably get by without another sweater, or a new pair of jeans, so just buy what you absolutely need, and pass on those items that aren't necessities. 3. Use Your Bank's Own ATMs Some banks will charge you money for using other ATM machines. Even though you will be able to withdraw money using your ATM/debit card from literally any machine, banks will charge you $2 (generally) for using a machine other than theirs, in addition to a standard $1.50 charge the machine charges for its use. In other words, if you use the ATM at your local 7-11 to take out $20, you'll most likely end up paying $3.50 in additional charges! If you do that 5 times a month, you'll lose $17.50 for that month, or $210 per year! What a waste! Try and stick with your own bank's ATMs whenever possible. 4. Track Your Spending Take the time to track your spending habits for one week. Take note of every single dollar you spend, even those sodas and candy bars purchased here and there. This will give you a "birds-eye" view of exactly where your money is being spent, thus allowing you to refine your spending habits to essentially save more money. 5. Lower Credit Card Balances Another very important tip that many often overlook. Pay off those pesky credit cards as soon as possible because you are losing up to 19% of the total. What a waste of your hard earned money! Keep chopping away at the balances until you get to an amount that is reasonable $100-$500 dollars. 6. Use Your Debit Card Instead of Credit Cards Get in the habit of using your debit card instead of your credit cards. For the most part, debit cards are accepted anywhere a credit card is accepted, however as you know, with a debit card the amount is taken directly from your checking account whereas credit card usage is billed at a later date (along with a hefty interest rate). 7. Changing Jobs? Roll-Over that 401(k) When people change jobs/careers they will be faced with a decision to either "rollover" their 401k (retirement plan) or to withdraw it. It will be ever so tempting to withdraw the money since it will be a substantial amount, but don't! You will be charged fines and penalties for an early withdrawal that will cut YOUR total by 40%-60%! That's like giving half of your earned retirement savings away to a stranger. Why would you do that? Even though you may want the money now, resist the temptation and roll it over. It will be well worth it in the long run. 8. Avoid Getting Too Many Credit Cards Why have eight credit cards? That's just going to provide you with more opportunities to go further into debt. It's fine to keep 1-3 cards to build credit, establish yourself, and for emergencies, but credit cards are double-edged swords. They can help or hurt you depending on your self-control. 9. Check Your Credit Score/Report It's important to know where you currently stand as a consumer and since your credit report is the most important historical list of your financial past and present, it's a very good idea to check it from time to time. There are a number of places where you can get your credit report, however the most detailed compares information from the top three national credit bureaus: Experian, Equifax, and TransUnion. Once you get your report, look through it carefully to see if all the information is accurate. If there are any discrepancies, get those solved as quickly as possible to improve your credit rating - a score of up to 800. Often times, consumers are unaware of unsettled accounts, or accounts that are still open/active when they should be closed. Pay close attention to this when inspecting your report. 10. Finally: Review - Revise - Retry Once you start implementing these tips and become more familiar with the money saving opportunities you have, take the time to REVIEW your progress. Check and see where it may be possible to REVISE some of your techniques or where you can implement new ones. Once you have revised your plan, RETRY to see if your results improve. The more frequent you review, revise, and retry your saving ideas, the more "in tune" you'll be with your finances and spending habits, and learn what works and what doesn't for you. Gregory Thomas has been writing effective money-saving tips for SavingSecrets.com for over six years. Hop on over and you'll find FREE money-saving articles, a monthly newsletter, and even a FREE Ebook download just for stopping by! http://www.SavingSecrets.com
Identity Theft is a Major Problem: Whose Responsibility is It to Protect the Consumer?
By: Mercedes Morris
We have heard a lot about consumers' personal information getting into the hands of identity thieves. More and more people are taking steps to minimize their exposure to such theft by reducing information on personal checks, refusing to share social security numbers with just anyone who asks, being prudent in their use of credit cards, and shredding "junk" mail that might allow another person to pose as them. However, we can do little to protect ourselves against lackadaisical security methods or unscrupulous business practices. Because recent reports confirm that personal information continues to fall into the wrong hands, consumers have become increasingly concerned about how companies handle their personal information. But consumers can only do so much; then it's up to businesses to provide their customers with privacy policies that will ensure their information is handled appropriately and secured from the hands of would-be opportunists, as well as outright crooks. How can this be accomplished? As business owners, managers, or supervisors, we need to establish and enforce effective company privacy policies. These polices should outline the handling, reviewing, storage, and destruction of customers' personal information, as well as that of employees. Once privacy polices are drawn up, they must be carried out. All employees should be trained in the handling of sensitive information. When employees obtain personal information from customers, several questions need to be asked. Who is allowed to handle it? How long will the information be unsecured? Can information viewed on computer screens be seen by others? How will the information be secured? Who will have access to it? How long will it be kept, and when will it be destroyed? Establishing strict information handling procedures may be cumbersome. However, they are necessary if we are to gain and keep the confidence of our customers and our employees. Review the following privacy policies that should be established and practiced by every business. ? Adjust computer screens so customer information is not visible by anyone standing in close proximity. If the screen cannot be moved, place something in the line of sight to block unwanted viewers. Hanging plants, room dividers or frosted glass can block the view. ? Computers should be password protected. When an employee leaves his/her computer, it should always be secured and protected by a password. Even if you leave your computer for just a few minutes, unsecured information could be accessed by anyone passing by. ? Customer files should never remain unattended on a desk that can be accessed by customers or unauthorized employees (including cleaning or maintenance staff). Files left unattended can be quickly viewed and documents stolen or copied. Files should always be in a secured drawer or locked room when not in use. ? Customer information should be secured as quickly as possible. Once information is obtained from a customer, the document or program should not be left unattended. Secure all information before servicing another customer. ? When customer information is secured, assign specific employees who will have access to the information. The more employees who have access to the information, the more chances exist for misappropriation. Don't tempt employees with the access if they don't really need it. ? Don't discuss customer information when other customers or employees are able to hear. When requesting information from the customer, have the customers write it down for you. Once you are finished with the written information, it is very important that you hand it back to the customer. This way the customer can dispose of it, and there are no concerns that the written information is intentionally or inadvertently passed on to someone else. ? Don't leave outgoing mail out over night or over the weekend. Mail or any other documents that are waiting in an "out box" can be easily access by cleaning, maintenance, or service staff, as well as by children or friends of employees. Keep outgoing items secured until pick up time. A central location should be designated for such items during the week. Often items placed with other out going mail or documents are quickly forgotten, that is, until the recipient notifies you that the document has not been received. The more time that has lapsed between sending and receiving the mail or documents, the less likely you will be to locate them. ? Documents waiting to be shredded should be in a secure place. Many offices use a box under each desk, where documents are thrown until the end of the week. This system provides easy access to documents that are seldom noticed if they go missing. Shred bins should be locked or kept in a locked room. Larger bins are often used to store documents until a document disposal company takes them. These bins should also be locked or kept in a secured area. As employers, we often obtain information from Consumer Reporting Agencies (CRAs), to help with our hiring decisions. The Fair and Accurate Credit Transaction Act (FACTA) places emphasis on the accuracy of information, and under new FACTA provisions, any business that uses consumer reporting agencies must adopt proper disposal procedures for the information obtained. Consumer Reporting Agencies are not just "credit" reports issued by one of the three major credit bureaus. Consumer reports include medical records or payments, insurance claims, employment history, check writing history, and residential or tenant rental history. There are several companies that specialize in providing reports for specific purposes. FACTA defines companies that issue non-credit reports as "nationwide specialty consumer reporting agencies." Consumers may request a free annual report from any of the specialty CRAs. FACTA also says that receipts for credit and debit card transactions can include no more than the last five digits of the credit card number and expiration date. If you are using a merchant processing machine check to make sure the program is not printing the entire number. If it is, call your provider and request the program be updated to comply with FACTA. Noncompliance could result in fines. Take steps now to ensure that your merchant processing program will not print the entire credit/debit card number. This does not apply to merchants who only accept handwritten or imprinted card information. This method creates its own problem of securing the consumers card information at all times. What all this boils down to is that we, as employers, business owners, managers, and supervisors need to make a greater effort to provide our customers with the peace of mind that their identities and their information are safe with us. All of our employees need to handle customer information with care and respect that is apparent to all customers. Without our help in the secure handling of the personal information of our customers and employees, the fight to stop identity theft and fraud will continue to rage. We need to be smarter than the crooks by eliminating their means of obtaining information. Who knows, the next customer to have information stolen might just be you.
Understanding and Controlling Your Finances
By: Darrell Johnson
Have you ever wondered what it would be like to be able to have complete control over your finances? If you are like most normal people, you have a job. You go to your job every day. Every week or two weeks or month you get a pay check for some amount. You have taxes. The government, in an effort to make your life easier, lifts something like a third of your pay check without your having to do a thing. You have problems. For example, you get a speeding ticket one day, and then your insurance goes up. Or your car blows a gasket. Or you lose your job! Then you have desires. All humans do, some more than others. You might desire new living room furniture, a new TV or stereo, new clothes... Whatever. You may desire all of it all at once. Occasionally you cannot control yourself and one of your desires is filled. Therefore you have debt! Debt makes up the difference between income and expense. For most people day-to-day debt goes on a credit card, and large items like cars and houses are handled with more formal loans. Debt itself is not bad. The problem arises when debt accumulates for no apparent reason. Problems and desires would push your credit card balance upward each month because there is no other place for the money to come from. Notice what you do not have in the above scenario? There is no mention of a savings program. Nor a retirement plan. There is no particular hope of reaching future financial goals. No safety net! And most importantly, no peace of mind, no sense of control, no control of your life and your finances. Let's face it! Investment planning is not the activity of choice for most individuals. If we had our way, the various pieces of our financial lives would magically fall into place. All of our financial needs would be met effortlessly without having to devote even a minute of time to planning! Unfortunately, real life doesn't work that way! Making sense of your finances requires more time and effort than ever in today's constantly changing economic environment. You are likely to have many different - and sometimes conflicting - financial goals. Deciding how to meet those goals requires careful planning. So, is there a solution to this problem? The answer is "maybe!"... But it does require a big mental shift and if you are willing to make the mental shift the answer is yes! It turns out there is a different way to live life. This way of life involves figuring out what you really want to do, and what is really important to you as an individual, and then working toward those goals rather than proceeding randomly. What you gain in the process is a sense of control and satisfaction, and a sense of achievement, that is difficult to beat.
Planning Ahead with Your Finances
By: Lisa M Miner
If you, like most people, have not seriously considered what steps you should take for planning your finances and are now planning on buying a house, getting married or having children, you will do well to read David Chilton's book 'The Wealthy Barber'. It will not matter if you have never heard of a mutual fund or even balanced your checkbook. If dry financial reading is not up your alley, you will STILL find 'the Wealthy Barber' easy reading. It will have you fluent in financial planning in weeks. The key to David Chilton's success with his book is that it is written as a story, rather than a manual. You follow three 30ish individuals as they build their financial houses from scratch. They get their information from one of the most knowledgeable and financially secure individuals in town - the barber. The gem of this story lies in the fact that the barber shows how income is not the biggest factor in planning for financial prosperity - proper planning is. And you can have your own finances in order by reading and applying the tasks he assigns his 'students' while they visit for their monthly trim. 'The Wealthy Barber' has been favorably commented on by newspapers and financial reviewers because it does not stress budget or a reduced standard of living. It is these steps which often sabotage the best intentions of individuals. The sooner the methods are applied, the easier it will be to see their effects while maintaining your lifestyle, but it is always better to start now than not start at all. 'The Globe and Mail' calls 'The Wealthy Barber' "...a perfect gift for young couples trying to live comfortably and save money in an increasingly tough world". Is that not a gift worth receiving? 'The Wealthy Barber' will show you how to plan for your retirement, save for large purchases or future needs, invest, protect your family and avoid being victimized by financial blunders by exposing some financial products and services which you may not need, but are sure to be sold. Although the story is set in a Canadian town, the general methods and training provide a valuable education in personal financial planning. Having a clear understanding of your financial situation and preparing a plan is no longer a mystery. Although some decisions require the guidance of an expert, arming yourself with the right questions and basic knowledge will ensure your best financial outcome. In today's world financial education is often sorely lacking. Taking steps to educate yourself, and pass that education on to your children will protect your family and provide an abundance whether you are current millionaires or not. http://www.mydebtfreespace.com This website is dedicated to the education of finances. With latest news and articles updated daily.
Planning Your Financial Future
By: Kelly C Morris
Millions of people give a lot of thought to financial planning but get frustrated and give up before ever making any progress. Making yourself aware of the most common reasons people fail to make a viable financial plan is the first step in reaching your financial goals. The uncertainty of the stock market, social security, and the declining world wide economy have made appropriate financial planning a must for every individual and family. Here are some tips that can make planning for your financial future a more successful experience: A positive attitude is the most important factor in reaching your financial goals. If you continually have negative thoughts about your ability to plan for your future, you are most likely going to fail in your efforts. A good attitude and the desire to succeed in developing a proper budget and secure financial future will go a long way in helping you reach your goals. It is important to keep your long-term goals in mind and have a positive attitude about what it will take to reach those goals. In planning for your financial future, there is usually no instant gratification, but rather a long-range plan that will allow you to realize your financial dreams over time. In planning for your financial future, you should identify your motivating factors. Ridding yourself of debts and attempting to appease family members are generally not motivating enough to keep you on the right path. Planning for your future involves developing a long-term plan that leads you to the desired location. Figure out what you want to achieve and stick with your plan. Financial planning is about securing your future, not gaining immediate financial rewards. Financial planning is the most important thing you can do to provide security for yourself and your family over the long term. Start planning now by making a sensible, maintainable plan and your reward will be a stable, secure financial future.
