Year End: Change Important Passwords

Much of your sensitive personal information is one smart guess away from being stolen. You should think about adding an extra layer of protection by changing the most important passwords at least once a year. A good password typically contains a mixture of characters, numbers, and symbols.  Before the end of the year, go through your passwords (i.e. bank account, financial accounts, etc) and change them.  You'll feel a little more at ease once you've done it.

Year End: Preparing Your Budget for 2012

We have talked a little bit before about how important it is to have a budget, and to begin preparing it. 
If you are serious about organizing your finances in 2012, then it is necessary to create a budget. This needs to include your income and spending, so that you can first understand the amount of disposable income that your salary produces each month. If you don't know how much you have to spend each month, then how can you make financially responsible purchasing decisions? You can't.  Make sure that all of the information included in your budget is accurate. Go ahead and detail your incomings and outgoings in dollars and cents, so that every bill or expenditure is recorded as it is rather than being rounded up. If your budget is completely accurate and based on truth then it has a greater chance of succeeding.

Year End: Check Your Credit Report

How many of you have checked your credit score (also known as FICO score) in the last year?  This is something that is easily overlooked by many.  Ever wonder if you could get a lower interest rate on that credit card?  Not sure why your insurance has went up?  It could have something to do with your score/report.  There are so many things that depend on your credit score as to what we are charged for.  On a home purchase, the better your credit score, the better the interest rate you will typically receive.  I have put the range of scores below:

• Between 700 and 850 – Very good or excellent
• Between 680 and 699 – Good
• Between 620 and 679 – Average
• Between 580 and 619 – Low
• Between 500 and 579 – Poor
• Between 300 and 499 – Bad

So, as you can see, the higher your credit score, the better.  Late payments, missed payments, and excessive balances are something that could potentially lower your credit score.  You may not have known this, but if you apply for a loan, you are required to receive a copy of your credit report at that time.  Also, you can receive one free copy of your credit report annually.  So, go ahead and check your credit report this year if you haven't already.  If you have, congratulations, you're on top of things!  If you haven't, get to it, and challenge yourself to begin raising it!  You'll feel much better when you receive more favorable terms when applying for a loan.  I have put the link to the website where you can obtain this free report up on my blog.  This website is completely legit.

Have a great week!

Year End: What's Left In Your Flexible Spending?

Many employers offer a flexible spending account, which allows you to receive some tax advantages for medical related costs in most cases.  Some offer what is called a Health Savings Account (HSA), and others offer a Flexible Spending Account (FSA).  One negative about the FSA is that if you do not use the money you contributed each year, you lose the money for that year.  In most cases, the deadline to receive services or incur medical related costs is December 31st.  However, some employers also offer you a grace period, allowing you to spend your FSA money up thru March of the following year.  For example, if you contributed during 2011, in some cases, you would have until March 2012 to spend your 2011 contributions.  Again, check with your employer to see if they do this.  So, if you've got some extra money left in the account, it may not be a bad idea to go ahead and get any issues you have dealt with this year instead of losing the money.  There are also several things you can purchase that do not require a prescription (i.e. a thermometer) and also get reimbursed.

Be sure and check your account as soon as possible, so you can prepare yourself for next year.  If you know you are going to have some major medical costs coming up, hopefully you also planned for that during your Open Enrollment period.  There's no way to tell exactly how much you'll need, but do your best to anticipate anything coming up.  This includes your normal prescriptions, co-pays related to regular visits, etc.  I hope this helps you in your planning for health costs in the upcoming year and in the future.

Donations: Clothing, Household Items

One of the things we always make sure to get taken care of by the end of the year is to donate any items (clothing, household decorative items, etc.) by the end of each year.  This helps us get the maximum tax deduction for the following year.  So, go around your house and round up any items that you've been thinking of getting rid of, and go ahead and donate them.  The non-profit organization will be thankful for the items, and you'll get a little bit more back on taxes, depending on your circumstances.  Either way, make sure and get a receipt for your donation.

Coming Up: Year End Financial To-Do List

Over the next few days, we’re going to give you some tips on things you should do before the end of the year to help your financial health.  There will be several topics involved with this, so you should tune in each day to see what the tip of the day is.   I encourage you to follow them if they do apply however, as this will only help you.  I hope you are having a great December, and are starting to get excited about the year ahead!  Things are going to change for the better, so get ready!

Back To Credit Cards

I apologize, my post yesterday wasn't quite in line with what this week was to be about, however this is something that really touched me, and I wanted to write about.  So, we'll get back on track today.

Now that you have determined what your balance, minimum payment, and interest rate is, it's time to get to work!  I am going to list your steps below, and I want you to begin them immediately!

1.  Put your credit cards on a spreadsheet, listed from the highest interest rate to the lowest interest rate.
2.  Also write down your balance next to each, so you can see how much you're about to attack!
3.  We previously established a budget, which should now reflect how much you have to spend in credit card payment each month.  I want you to take this amount and subtract all of the monthly payments for each card, except the one with the highest interest rate.  I now want you to take the remainder of the amount and pay it to the card with the highest interest rate until that balance is gone.
4.  Once the first balance is gone, you'll continue to do the same process over, until you eliminate your credit card debt.  Trust me, it can be done, and you can succeed at this!  Do not get down on yourself, stay positive and focused.  IT WILL HAPPEN!!

Please let me know if you have any questions or comments about the credit card topic.  Everyone have a good day!

Cutting Back This Christmas?

I know this week we have been talking about credit cards, but I’m going to divert today to talk about a good article I read in the Oklahoman yesterday, written by Martha Wagoner of the Associated Press.  It talks about kids that are asking this Christmas for things such as a job for their parents, food, a home, and other necessities.  This shows how the affects of the economy are being felt.  Even our small children are beginning to realize what many people are going thru, and are trying to help out.  I hope that many of us this Christmas focus more on what we have, and not what we want.  So, I challenge you to do something this Christmas for somebody you don’t know.  It could be something as simple as dropping money in the Salvation Army bucket, or making a donation to an organization.  I know for myself, reading this story reminds me that I should take nothing for granted, and makes me appreciate life even more.

I hope everyone has a good day. 

Credit Cards: What Is Your Minimum Payment?

For the last few days, we’ve been discussing credit cards and how they can affect your ability to save money.  Continuing on with this discussion, I want you to look at the most recent statement of each of your credit cards, and see what it shows your minimum payment to be each month.  Put this on the same page that you have all of your balances and interest rates.  We are slowly building a centralized location, in which you can also start to see the credit card balances decrease in the future.

See, another easy task!  You’re getting the hang of what this is all about now.  Saving money does not have to be hard, and we’re not going to make it be hard either! 

Credit Cards: What Is Your Interest Rate?

Yesterday, we wrote down each of our credit cards along with their balances.  We added up the number of cards, and the total balance of all cards combined.  Hopefully both of these numbers are not too high, but if they are, don’t worry!  You’re now beginning to become more financially savvy, so things are going to change!

What I want you to do today: now that you know how many credit cards you have, write down the interest rate that each credit card company charges you.  This will typically run anywhere from 9%-20%, however it could be higher if you’ve had late payments in the past.  You should easily be able to find it on your statement.  If you're not sure how much, that's a problem!  Find out NOW!  So, that’s it.  See, this doesn’t have to be hard.  Just make sure you get those numbers written down, in preparation for our next step!

Have a great day!

Credit Card Week: Let’s Get Rid of the Debt!

I hope you enjoyed this last weekend without the use of your credit card.  If you have, congratulations, you’ve beaten my first challenge to you.  If not, that’s okay, there will be others.  I encourage you to continue thinking twice before using it, until we can get your current debt paid off.

Hopefully you also took the weekend to think about your current credit card debt, and how much you really have.  It’s so easy to not realize how much you actually have when you have multiple credit cards. If you read my post from yesterday, you’ll see some of the realistic facts about how long it can take to pay off.  First off, today I want you to write down all of your credit cards, and the current balance of each.  Once you’ve done that, add up the number of credit cards that you have and also the total balance of all the credit cards combined. 

We will continue Credit Card Week tomorrow, with a new task.  I want these to be easy to complete quickly, as this is a very important topic.  Everyone have a great day!

The Cost of Credit Card Debt

Many people don't realize the true cost of keeping credit card debt. They believe it's more important to have new clothes, a new gadget, or the latest and greatest big screen TV. I ran some numbers that are very surprising. I ran a scenario based on making the minimum credit card payment for a $1,000 balance with a 19% interest rate, which is fairly common. If you charge nothing else, it will take you 8 years to get the card paid off, and you'll spend another $1,000 in interest.

So. What you thought was a good deal when you bought that $10 sweater, became a bad deal real quick. I hope this encourages to reconsider using a credit card if you're not paying it off every month.

Credit Card Challenge

Hey everyone!  Continuing with the credit card topic, I am presenting all of my readers with a challenge.  I challenge you to not use your credit card for this entire weekend.  Even if you have the money in the bank, don't use your credit card.  This is to help you become more disciplined in the future.  As I said, we'll start out with just this weekend, and slowly increase the time in the future.  After we discuss credit cards next week, you'll feel great about your ability to begin cutting your debt, and saving more money!

Everyone have a great weekend!

Next Lesson: Getting Rid of Credit Card Debt

Starting today, we’re going to head back to the budgeting aspect of our new savings plan.  Many people out there today have credit card debt, and don’t realize how much they’re paying in fees and interest.  If they could just get over the “hump” and get them paid off once and for all, and get used to paying it off every month in the future, they would have more cash in their pocket, along with a newfound discipline of spending less than what they make. 

Now, believe me, I have been there where I paid interest every month, mostly to my favorite department store (thanks Dillard’s).  However, I was finally able to curb my spending and get it paid off about 10 years ago.  I am proud to say that since then, I have only paid interest by accidentally overlooking my bill.  So, in the last 10 years, I’ve probably paid a total of $10 in interest, although I have also earned enough reward points for 4 nights in Las Vegas, including meals, and several random hotel stays at other places.  It’s fun for me to watch the reward credits add up and not pay any interest to the credit card company.  They might be making money from the merchandiser, but I am also receiving rewards for simply using my card, and paying it each and every month.  If I was using a debit card, this would not be any different.  It’s the same mentality, just a different way of doing it. 

So, for this weekend, start thinking about how much credit card debt you have.  Are the items you have in exchange for that really worth it?  Wouldn’t you rather be able to pay cash for everything, keeping that interest you pay to the company?  I know I sure would.  Beginning Monday, we’ll start a weeklong plan to get you ready to knock out the credit card debt and on your way to paying cash for everything! 

Money Saving Tip: look at your receipt

With the economy in the state it is today, some people are looking to squeeze that last little bit of savings in. Companies are also looking for valuable information, hoping to lure you to their store first. With that said, always check your receipt after a purchase, to see if they offer a reward for completing a survey. I've seen restaurants and stores do this. It could be that your next trip might get you 10, 15, or even 20% off. It might even get you a free entree somewhere. My example: I go to a well known Tex-Mex restaurant, the receipt offers a free full size burrito for free, in return for a 5 minute survey. So, I do the survey, and get a burrito (a large burrito at that!) and a drink for under 2 bucks. They also offer free chips and salsa. Now, this is what I call a deal!

If you'd like more information on some of these places and who they are, just drop me a line! Thanks, and have a good day!

Back on Track

Okay everyone, sorry I have not been updating much lately.  I've been sick with the miserable bug going around, and while still recovering, doing somewhat better.  With that said, I am a little behind on posting my budget example, but here it is.  This should show you what your new budget should look like.  Keep in mind, we'll create one of these for every month of the year, so we can keep a running tab on how much you've spent and saved.  I've created a link on the right side of my page called "Budget Example" under the "Helpful Links" that contains the spreadsheet. 

On another note, I hope you've been getting some good savings on Christmas presents so far this year.  Remember, we are hoping that by creating your budget now that next year at this time, you will already have the money put back to spend on presents for birthdays, holidays, etc.  With that said, I want you to commit to having your budget ready to implement by January 1, 2012, as I understand that the holidays can be busy.  So, just commit to not overspending this Christmas, and be prepared to start your new budget next year. 

As always, if you have any questions, please let me know!  Thanks everyone, and have a good day!

Black Friday results

I heard today that this years Black Friday was the biggest ever for retailers. From what I remember, 1 billion more was spent this year over last year. You may have read my post from last week about the site called ebates. We spent $135, and got an additional $9 back. They had some great deals, and this made it even better! Trust me, there are so many ways to save money!
On the other hand, I will post my budget example this week. I apologize for the delay, as I was out of town. Thanks for your patience, and happy saving!

Weekend of savings!

Hope everyone has had a good weekend. I was able to find one good deal, found on Groupon.com. It was $40 in clothes to Old Navy for $20. That's a great deal, and 50% off! Other than that, I didn't find really anything I needed on Black Friday. Bummer. Iwas hoping to get a little Christmas shopping done, while scoring some major savings!

Going to great lengths to save money!

We decided today, we're going to Six Flags. Now, the normal price is $36.99/person. However, in the interest of saving money, we checked up on the group rate. With 10 or more people, the price drops to $22.99/person. HUGE savings all the way around! So, just a little money saving tip, if you just put a little thought into it, you can usually figure out a way to save a little cash. But, I am always here if you have a question on how you can save money on something.
Have a great day everyone!

Happy Thanksgiving!

I hope everyone has had a great day today. We're about to eat Thanksgiving lunch. But, this morning I was able to score a great deal on Baby Gap stuff for my little girl. Their sale is 60% off of some items, and an additional 20% off. Also, by using the link at the bottom of my page (ebates), this gets you 7% more back. This is a great deal! It's also free shipping, which saved you having to stand in line at the store.

Happy Thanksgiving to everyone! Don't forget to vote on my poll on the right side of the page!

Money back when online shopping

Hey everyone! Just had something pop in my mind that I wanted to share with you. More people are shopping online this year in order to avoid the Lon lines at Christmas. I have found a website that offers a % back when shopping online through their website. This can help reduce your overall cost of presents this year, putting some of that hard earned money back in your pocket! I don't know about you, but this interests me! I've actually used the site too, and it works! The link is at the bottom of my page (e-bates), if you don't mind using the link to sign up, I would greatly appreciate it! Happy shopping, and happy saving!

Anyone found good sales yet?

I'm sitting here scavenging all of the "Pre Black-Friday" sales right now. I haven't looked much, but haven't found anything in the stored I'm interested in yet. If I can, I'll try to do lots of shopping online, and maybe get out for a deal or two. Mostly, it's just the excitement of getting out and shopping. I love to shop! Fortunately, I began preparing for the Christmas expenses last year, so I know what I can spend. Please begin to tell us about deals you're finding so this can help all of our viewers! Now, I realize we're in money saving mode, but also realize some people love to shop and will go out. So, let me know the best deals you're finding!
Have a great day everyone!

Thanksgiving, and Black Friday!

Another day has gone by, and that means it’s a day closer to Thanksgiving.  I hope everyone is getting as excited as I am.  That also means it's one day closer to the BIG SALES on Friday.  I’m sure most of us have woken up early to go get that special item at least one year in the past.  I’m going to challenge you this year to see how much of a discount you can get on an item.  Will it be 20%, 40%, etc.?  I’m looking forward to hearing the biggest one that anyone found.  I did see that Target has a 42" Sharp LCD TV for $199.  I hope you’ll come back during Black Friday and post your discounts with me, or even the most exciting item you saw, even if you didn't buy it.  This helps everyone, and also makes it fun!

 To my fellow viewers, my next post will probably not be until later on this week.  I have a lot going on, and expect that you’ve at least taken a little bit of advice from this blog so far, in that we’re here to SAVE!  J  Have a wonderful Thanksgiving!

This Week: Compiling Your Budget

Last week we worked on starting our budget.  We were to write down all of our income, fixed, and variable expenses.  Your next task is to compile all of these numbers into a spreadsheet.  I’ve attached an example.  For the next couple of days, we’ll allow time to get all of these numbers compiled, and to make sure you haven’t forgotten anything.  It is extremely important that you get everything you can think of the first go around.  Our goal is going to be to allocate all of your incoming money, so it all has a place to go, each and every month.  By the way, this week is Thanksgiving.  We typically have added expenses such as food, shopping, entertainment, etc.  Since we’re beginning this budget, let’s get it off to a good start by keeping these to a minimum.  Remember, you’re in a transformation phase right now.  Stay focused!  Also, please vote on my poll!  I’m interested how many people really get into Black Friday sales!

Budget example to come later this week....

Step 3- Your Budget: Variable Expenses

So far, you’ve got your income and your fixed costs for every month logged.  The next step in our beginning a budget process is the variable costs.  These include things such as gas, groceries, electricity, water, etc.  Basically, any cost which you do not know how much it will be each month.  There will be lots of these, that’s to be expected.  So for today and the weekend, go ahead and start thinking about these.  By Sunday evening, you’ll need to have compiled everything, your income, your fixed expenses, and your variable expenses.  Enter each of these into a spreadsheet.  I’ll try to post an example of what works best for me over the weekend, so you can see how I do it.  At first, it may not look pretty, but we’ll start amending the numbers in your budget next week, so we can make it work.  Our end goal is for you to be able to see how much you are making, how much you are spending, and last but not least, how much you are saving.

Continuing Step 2 of Our Budget

Yesterday, we began the fixed expense portion of our budget.  Now, I know this can take some time to make sure you have covered everything, so we’ll take another day, just to make sure we get it all.  So, think hard if there is anything you are forgetting.  It is crucial that we begin this on the right step, as everything builds off of each other.  I encourage you to tell your friends you are starting a budget.  I think we are at a crucial time now where people need to become more aware than ever about their finances.

Please let me know if you have any questions, or comments.  I encourage conversation here!  Have a great day!

Step 2 -Your Budget: Fixed Expenses

As we talked about yesterday, we’re going to begin planning your new budget.  There are several different components that will go into this, so we’ll take it a day at a time.  When we’re done, you’ll have a full working budget so you can keep track of everything for the first few months, and plug the gaps in your spending habits. 

Today, we’re going to work on the fixed expenses in your budget.  This will include anything that you know exactly how much it will cost each month.  These are items such as your house or rent payment, insurance, internet charges, home phone charges, cable bills, etc.  So, go ahead and begin thinking and jotting down all of these costs that you can think of.  Even if it seems like a small cost, write it down so you can plan for it.  I find it best to compile the budget in some type of spreadsheet.  It makes it easier to keep track and seek out any information you need.

If you have any questions on whether something is a fixed expense, please comment and I’ll get back to you with my opinion.  Have a great day!

Step 1-Your Budget :Income

As we talked about yesterday, we’re going to begin planning your new budget.  There are several different components that will go into this, so we’ll take it a day at a time.  When we’re done, you’ll have a full working budget so you can keep track of everything for the first few months, and plug the gaps in your spending habits. 


Today, we’ll start with the easiest part of your budget-your income.  Everyone likes to think about this part.  Take the day to jot down all areas in which you have income each month.  This could be from your regular job, any side jobs, other sources of income, and as much as I hate to say it, unemployment pay.  For clarification, I don’t disagree with unemployment, I just don’t like the fact that so many people are going thru it right now. 

If you have any questions, please comment and I’ll get back to you as soon as I can.  Have a great day!

Time for the Holidays and Time to Set Your Budget

With the holidays coming up, most of us expect to spend more money than other times during the year.  We have expenses come up such as gifts for friends and family, additional food costs, and sometimes even entertainment costs.  Wouldn’t it be nice to have all of that money already saved up, so you could do all of these things without worrying about the money?  Starting tomorrow, we’re going to begin creating a budget.  I thought this would be a good starting point to the blog.  I am a firm believer that you need one, so you can see where all of your income is going, and ways you can avoid overspending.  So, today you must start getting excited about SAVING MONEY, and becoming more financially savvy!  It will be a great feeling to see what you have left over at the end of the month.  Trust me, you WILL feel like you’ve accomplished something. 

For the rest of the day, just get ready to start seeing your life gradually change, as you begin to change your saving and spending habits once we’ve established your budget.  Have a good remainder of your day!

Are You Ready?

Hi everybody-I am Jeremy.  With the economy the way it is today, many people are looking to scale back on spending, and trying to find new ways to cut their spending, while doing the things they used to do.  I feel the same way you do.  I am starting this blog to hopefully provide you with a source of information on how to make your dollar stretch, increase your savings, and become financially secure.  We will discuss a wide range of topics covering the financial industry.  Comments and discussion is strongly encouraged!  On this site, we are all looking to achieve the same thing, so we are all on the same team!  I hope you enjoy the posts, and I look forward to walking with you the next few years!