Saving money

The Importance of Saving

Saving money is one of the most important things you can do for your financial future. When you save money, you are building a financial cushion that can help you cover unexpected expenses, achieve your financial goals, and retire comfortably.

There are many ways to save money. You can start by creating a budget and tracking your spending. Once you know where your money is going, you can start to cut back on unnecessary expenses. You can also set up a savings account and make regular deposits.

Even if you can only save a small amount of money each month, it will add up over time. And the sooner you start saving, the more time your money has to grow.

So if you are not already saving money, start today. Your future self will thank you.

Here are some additional tips for saving money:

• Set specific savings goals.
• Automate your savings.
• Make saving a priority.
• Find ways to cut back on your spending.
• Don't touch your savings unless it is an emergency.

Saving money is not always easy, but it is worth it. When you save money, you are taking control of your financial future and building a better life for yourself.

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The author: Steve Bucci, BA MA.  He is a nationally syndicated columnist and an expert in financial matters. His column is carried by Bankrate.com and the Scripps Howard News Service.

A Stolen Identity

  

A man dressed as a thief, sneaking away with a social security card

Identity theft is when someone uses your personal information to open up accounts in your name. An identity thief can use your social security number to open credit cards, get utilities , rent or buy properties. They can file fake tax returns and various other criminal activities.

The effects of having your identity stolen could lasts months or even years. It will be expensive to fix. You need to protect your identity as well as your credit. This means you have to be careful of what you throw in the trash, information you enter on websites, information on your computer and information in your wallet or purse.

You may also want to consider a credit monitoring service, especially if you already were a victim of identity fraud.

Just check out this horrible story of a victim of identity theft.

“ Kevin Wehner, a hard-working construction worker and father of three living in Jacksonville, Florida. It’s all detailed in this Sun Sentinel story. His wallet was stolen while he was vacationing in the U.S. Virgin Islands. Soon after, bills started showing up in the mail for cars he never purchased; he reported the identity theft to Florida police. Fast forward four years. The man who stole Kevin’s identity — Shawn Labeet — shot and killed a Miami-Dade police officer. Labeet’s girlfriend then gave police his alias — yep, Kevin Wehner. Next thing you know, Kevin is hearing reports he’s wanted for killing a cop. What a mess.”

Identity theft can cost you immense time and money. Protect your information at all times, protect your Identity and protect yourself

Sources:

https://www.libertyid.com/blog/real-life-stories-criminal-identity-theft-detail-can-happen-criminal-commits-fraud-even-murder-using-name/

Blueforce1

Budgeting for beginners, Personal finance

Starting your budget

Budget, coins  and tools

     A budget is the most important aspect of personal finance. Having a budget makes it easier for you to track your spending as well as track how much you have to spend. Most importantly it helps you to keep track of how much you can save and invest. It took some time for me to learn how to make an effective budget. Keep in mind that this is meant to be a starting point. So be patient with yourself and tweak it until you get it right!
     First and foremost, you need to know exactly how much you bring in per month. This is all income that you receive per month from all sources.
     Next, you want to have a clear goal. This will help you stay focused. A goal of "I want to have 4-6 months of living expenses in savings in the shortest possible time" is a more specific and effective goal than "I want some money in my savings". 4-6 months of rent and utilities in savings was the first goal I chose.  Other specific goals can be things like, "I want to put $1500 down on a car in 6 months" or "I want to move into a new apartment in May". By being more specific, you will make the path to the goal more visible.
Now we must track expenses by category, these are the main categories that I usually track:

• Rent/mortgage- Your rent or your mortgage. This one is simple because it does not change very often.
• Utilities- Water, electricity, gas, cable/internet/cellphone are the main utilities add more if you need to. These often fluctuate throughout the year so find a monthly average. You also want to average in one fill up per week for your car.
• Household items/groceries- This category often changes, especially if you shop around and bargain shop. Create a reasonable amount to stick too based on your monthly averages. When I was single I was able to spend only $40 a week on groceries and household items. A family of four however would blow right through this. Now I spend closer to $400 monthly.
• Credit- Make a note of the minimum payments for revolving/installment credit, credit cards, store credit cards, car payments and rental stores for this category.
• Insurance-Your health, car, rental, and home insurance monthly payments general remain the same throughout the year as well so just check your statement.
• Savings- Chances are if this is the first time making a budget you do not have this category. If not commit to allotting $20 or so monthly for now.
• Miscellaneous- This category is hardest to track. This includes your morning stops for coffee, late night fast food frenzies and just all around random, unplanned and impulsive spending. To make this easy just alott a certain amount of random spending for the month and try to stick with it and use cash. Withdraw $40 or so from your account on payday and use this as your random cash expense. 

     Keep track of this on paper or on budgeting software. There are many apps to choose from, such as; Mint or Pocketguard if you prefer that route. I initially just chose to carry around a mini notebook that fit in my back pocket and a pen. 

      Learn how to stay out of the negatives. When you do end up there, it is time to cut back on spending. Some ideas for cutting spending are eating out less, finding cheaper entertainment activities, bargaining with utilities and creditors for lower rates or payment plans, or finding better companies to deal with. There are so many different ways to cut costs and save money. You will have to learn and experiment. 

     After a few months you will see where you will be able to cut costs. The more costs you can cut the more you can add to savings. The more savings you have the more you can invest but, before you worry about investing, generate an emergency savings account. This account should approximately equal 4-6 months of living expenses and used for emergencies only. When you have your emergency account fueled up you have hit the first milestone!

     Of course if you end up in the negatives every month it is time to cut back on spending. Some ideas for cutting spending are eating out less, finding cheaper entertainment activities, bargaining with utilities and creditors for lower rates or payment plans, or finding better companies to deal with.
Here is a sample on a $2000 monthly income.
                             

• Rent                                    $700                                
• Utilities                               $300                          
• Household items/groceries $200
• Credit                                  $120
• Insurance                            $150
• Savings                               $ 20
• Misc.                                   $150
• Total                                    $1640 

   This comes out to $1640 per month of living expenses and $360 left over per month. Now lets do the math to create the rent and utilities emergency savings. Rent and utilities equal $1000 per month. $1000 x 4= 4000 and $1000 x 6 = $6000. To get to $4000 in 12 months we could save $333 of the excess money per month.  This still leaves us $27 in excess. This also still leaves us with $150 in cash for miscellaneous purchases. With this totaling $177, we are now able to tweak and experiment to have more money to sneak into savings or sneak into our pockets. Keep on working it and drive on!

Don't get discouraged, drive on!

Is debt consolidation good for you?

Is debt consolidation good for you?

Multiple debts at multiple interest rates are a horror to manage. Debt consolidation can combine these debts into one payment and one interest rate. This can provide you with peace of mind and possible leave you with more money in the bank for expenses.

man counting money

If you are interested in debt consolidation do your research as there are some shady businesses out there. Check the interest rates and the repayment terms to make sure you are not being hoodwinked. If your terms are stretched out farther this may be good because you are paying lower payments and of course you can still pay more than the minimum , but make sure you understand the terms of the contract.

Get your free quote here

How should I pay off my debts?

     So, your in debt. Its got you down and you cannot sleep. You think about it all the time and it has destroyed your credit score. Well you are not alone!

Man lying awake in bed

According to a 2016 NerdWallet analysis, the average U.S. household holds approximately $17,000 in credit card debt. 
Here are some simple ways to get back up on the horse.

     Create a budget. By creating a budget you will be bale to keep track of your spending as well see where you can cut costs.

     Pay your most expensive debts first. Pay off your credits cards with the highest interest rates first. Pay more than the minimum, try to double it. Continue to pay the minimum payments on the others. Once it is paid off rinse and repeat for the rest of the cards.

     Pay more than the minimum payment. Paying the minimum gets you no where fast. Aim to double your payment or more to actually make a dent in your debt.

     Try a balance transfer. If you can confidently pay off a card in a few months, try transferring the balance to a card with a zero interest balance transfer. Pay off the debt before the balance transfer expires. and you can save hundreds.

     Stop using your credit cards. This is important. How can you pay down your debts if you are still making purchases with the same card? Wait until your finances are in control to use your credit cards again and become a cash shopper on a budget.

     Put your bonuses from work toward the debt or possibly consider putting some of your tax return towards your debt. It can help to remove a good chunk at one time.

     Delete all off your credit cards from online stores that your frequent. It makes it easier to resist clicking the pay button for unnecessary items. Start using your debit card instead or nothing at all.

     Have a yard sale. Sale old or unwanted items from your house and use it to put towards your debt. Be fair in the pricing and you can use online resources to help such as Craigslist or Facebook.

     Chang your habits. You will likely ending saving lots of money by changing little habits such as eating out for lunch. try bringing lunch from home. Instead of ordering pizza for dinner try making your own, its much cheaper. What can you change without sacrificing your lifestyle too much? A few less beers, less fast food and less cigarettes could go along way.

     Most importantly, reward yourself! Once you see there is more money in the bank treat your self to something reasonable. After not eating fast food for like, ever, I was finally able to treat myself out to a nice dinner at a real restaurant that used plates!

Good Luck!

Man thinking to himself

Sources:
https://money.usnews.com/money/personal-finance/articles/2017-05-10/10-
easy-ways-to-pay-off-debt