Summer Camps We Would Like to See for Grownups

Posted on August 2, 2012 by Blog Team

School’s out and camp is in. Across the country, kids are playing tennis, fishing, swimming, horseback riding, and kicking, throwing or hitting every type of ball imaginable. They’ll also be learning other valuable lessons, like how to get along with different personalities and the value of an active lifestyle.

Just because school is out and summer is in does not mean learning is over. Everyday is a great day to learn about money!

Lots of grown-ups could benefit from that kind of life-skill-building experience too. Here are some summer camps we’d like to see that would help adults learn how to handle money:

Financial Arts Camp – Creating a solid financial footing is a lot like summer camp craft-making. You start out with a lot of pieces that may not look like much at first, and it takes time, patience, creativity and the ability to follow complex directions to make something out of all those parts. Financial Arts Camp would help adults understand how all those pieces come together to build the smart money management that leads to financial health.

Credit Slam Dunk Camp – At dunk camps, kids learn to do one thing well – put a basketball through a hoop – but that one thing is a key requirement for scoring well in the game. Your credit score is the same. It’s just one piece of your financial well-being, but it’s an important one. If you don’t know how to handle your credit, you’ll wind up missing the shot  more often than not when you decide to use it, and that can leave you with a low score. A low credit score can make it very difficult to “win” when it comes to your finances.

Investment Invention – Invention camps teach kids the basics of engineering, mechanics and physics. Investment Invention camps would teach adults the basics of investing, including the mechanics of how the stock market works, how to engineer an investment plan that achieves their goals and the physics of how their investment strategy will affect their wallet throughout their lives.

Savings CPR – Kids as young as 5 or 6 years old can learn basic lifesaving skills, and many teens know CPR. Plenty of adult Americans could use some resuscitation help with their savings habits. In June, the U.S. Department of Commerce’s Bureau of Economic Analysis reported that the personal saving rate in May was 3.9 percent of disposable income. [e1] There’s no downside in getting your personal savings rate higher than the average. Savings CPR would teach adults the basic skills they need to know to breathe new life into their savings habits.

Of course, you probably won’t see these camps opening up any time soon, but you can find plenty of help if you want to take control of your finances. From online courses and community college offerings, to tips and hints on government websites, college and university sites and even consumer companies like Experian. There’s plenty of good information out there. It’s up to you to find the “camp” that works for you.

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Negotiating Tips: How to Get a Raise

Posted on July 31, 2012 by Blog Team

Income growth is an essential component of financial security. Unfortunately, there’s no guarantee that your income will grow unless you take steps to ensure that it does. In this economy, taking those steps can feel like trying to jog while wearing lead shoes.

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Income growth is an essential component of financial security. There is no guarantee that your income will grow unless you take steps to ensure that it does.

One of the most obvious ways to increase your income is to ask for a raise from your current employer. Yet for many of us, that’s easier said than done. In fact, the L.A. Times recently reported that a LinkedIn survey found 42 percent of American workers are uncomfortable with career negotiations like asking for a raise.

If you’re wondering how to get a raise from your boss, here are a few suggestions that may help you feel a little better about the challenge:

  • Know what you’ve accomplished. Before you sit down with your boss and ask for more money, take inventory of your achievements. Make a list of tangible results and times when you went the extra mile for the company. If your efforts had a measurable dollar impact on your employer’s bottom line, be sure to make note of that. Create a list of your achievements that you can refer to when you’re face-to-face with your boss; this way, if you’re nervous you won’t forget what you want to say.

 

  • Know what you’re worth. Do some online research to find out what others with your experience and skill levels are earning today for doing the same job. This will help you know how much to ask for. One caveat: if there’s a huge disparity between what you’re earning and what the going rate is for your job, don’t expect your employer to make up the entire amount with the first raise. It may take more than one increase over the course of a year or more to do that—and only if your employer is willing.

 

  • Keep things professional, not personal. It can be difficult to keep your cool when you’re talking about something as important as salary, but emotion has no place in your negotiations. Stick to the facts. Maintain your professionalism, even if your boss says something you feel is less than professional. You’ll have a better chance of making your case if you stay the better person.

 

  • Dress for success. Negotiation day is not the day to push the fashion boundaries at work. Dress professionally. You don’t need to wear your interview suit (or maybe you do, depending on the formality level of your company), but your attire should be neat and clean and appropriate for your job.

 Realize that sometimes the answer will be no, no matter how much you deserve it and how well you plead your case. The reality is in this economy, some companies are unable to give raises and others are unwilling. If the answer is “no,” you have a few other options for growing your income: you can try again in a few months, you can get a second job, or you can look for a new employer. Only you can decide which of those options is right for you.

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Silly Spending Habits Part 1: Missing the Big Picture

Posted on July 26, 2012 by Blog Team

People do some silly things with money. Maybe you get caught up in a moment and buy something pricey that you just don’t need – or have any use for. Perhaps you cut back on your 401(k) contribution in favor of having a bit more spending money each month.

We all have spending habits that we don't think about, even ones that would make us roll our eyes at ourselves if we actually considered what we we're doing.

 We all have spending habits that we don’t think about; even ones that would make us roll our eyes at ourselves if we actually considered what we’re doing. Here’s one that boggles the mind – but we’ve all done it at one time: Blowing a bundle impulsively when we have trouble saving for a big-ticket item.

 For example, you may tell yourself there’s just no room in your personal budget to save for that plane ticket home to visit family. You’ll just put the cost on your credit card and pay it off over several months, you tell yourself. The next day, you go to the local wholesale club store and drop $250 on groceries.

 We’ll bet you could find a way to trim at least $25 off that bill by eliminating things you don’t really need. That cash could then go into your savings and in a few months you would have the money to pay off that ticket immediately, instead of paying credit card interest on it.

 Here’s another one: You balk at spending $400 on new tires for your car and decide to put off this necessary expense for another month. For the next 30 days, you stop in at the coffee shop every morning and pick up your daily $8 extra-large, super-special cup of coffee. If you had made coffee at home every day and pocketed that $8, by the end of the month you would have nearly enough to pay for those tires.

 When we’re faced with a large one-time payout, we cringe at the cost because it’s easy to see the magnitude of the expense. Yet when we spend in smaller increments, like that cup of coffee, our brain can trick us into thinking we’re not really spending that much. Looking at the bigger picture, we can see that those costs add up.

 What silly spending habits do you have? And how do you work to build better money habits?

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Great ’80s Movies and the Smart Financial Lessons They Teach

Posted on July 24, 2012 by Blog Team

It’s summer movie blockbuster season! Will you be watching aliens taking over the world? Or taking in a comedy or romance?

The '80s are known for some of the coolest or worst movies ever made. Either way we can still take away some smart financial lessons from those films.

The ’80s are known for some of the coolest – or worst, depending on your viewpoint – movies ever made. And while the decade also has a reputation for the free-spending lifestyle that led to the recession of the early ’90s, we can still take away some smart financial lessons from those films.

Here are a few of our favorites, and the financial lessons they taught us:

The Film: “Say Anything,” 1989

The Lesson: Never give up.

John Cusack’s well-meaning slacker Lloyd Dobbler falls for the over-achieving valedictorian and goes to great lengths to win (and keep) her heart. Lloyd paid his dues and soldiered on until he achieved his goal. Managing your money is like that – you need to pay what you owe and keep working toward your financial goals.

The Film: “Labyrinth,” 1986

The Lesson: – You have the power over your money.

Long before she won an Oscar, Jennifer Connelly was running around a fantasy maze trying to get her baby brother back from the evil Goblin King David Bowie (rocking a Tina Turner ‘do that actually worked for him). Realizing she’s in control, not the goblin, is what gives Sarah the power to win. Your relationship with money should be like that. You need to control your money, not allow it to control you.

The Film: “Raiders of the Lost Ark,” 1981

The Lesson: How to deal with an emergency.

From a huge boulder rolling toward him to a pit of snakes, hundreds of evil Nazis and an ancient battery on meltdown, Indiana Jones faced more than one emergency in this film. He overcame each one with a combination of preparation (he always had his trusty whip), level thinking (why engage in a sword fight when you have a gun) and creativity (when all else fails, throw a punch and hold on). Dealing with financial crisis can be like that. You need to be prepared with an emergency fund, keep a level head and be creative with your solutions.

The Film: “Ghostbusters,” 1984

The Lesson: Entrepreneurship can pay off.

A team of lovable misfits, led by Bill Murray, finds a unique way to make money, using their singular skill sets. With unemployment still high, now may be the time to follow their lead and become an entrepreneur. Working for yourself doing something you enjoy and that you’re good at can be personally and financially rewarding. Just make sure you go into the endeavor with a plan, otherwise you could get slimed!

The Film: “Cocoon,” 1985

The Lesson: Have a plan for your retirement.

A group of Florida pensioners get a new lease on life when they encounter beneficent aliens. We can only assume these retirees were in the right place at the right time because they set aside money to fund a pretty decent retirement lifestyle in Florida. Fail to plan for your own retirement, and it’s unlikely you’ll be rescued from financial struggles by kindly aliens.

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Must-Have Money-Saving Tech Tools for Everyone

Posted on July 19, 2012 by Blog Team

What tech tool can’t you live without? For some, it’s a smartphone. For others, a laptop or tablet. For us, it’s financial software.

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What tech tool can't you live without? Here's a hint; financial software can make every aspect of your money management tasks easier and more accurate.

 Financial software can make every aspect of your money management tasks easier and more accurate. Whether you’re tracking expenses or building a household budget, you can find free software to help with the task. A simple web search for the type of software you want will yield hundreds of free results.

 Here are a few money-saving tech tools that everyone should check out:

  • Budgeting software – You can find plenty of static budgeting worksheets online, but budgeting software takes your money management efforts to the next level. This type of software allows you to create a budget, link bank and credit card accounts, and keep track of how well you’re actually sticking to your budget. Some programs can even make suggestions for how to adjust your budget to better meet your personal financial goals.

 

  • Expense trackers – If you’re running a small business or need to keep track of expenses for an employer, this type of software can be valuable. But it’s also useful for private individuals to keep track of just how they’re spending their money every month. Since some types of personal expenses (like child care or medical costs) may be tax deductible, this software may even help you at tax time.

 

  • Debt calculators – A debt calculator can be useful in several ways. Some programs can help you understand how long it will take you to pay off an existing debt at your current rate of interest and varying monthly payments. Others can help you project the total cost of a new debt you’re considering taking on.

 

  • Investment trackers – While you probably have different ways of accessing your various investments from stocks to CDs, a single tool that helps you keep track of all of them from one point of access can simplify things.

 

  • Retirement savings calculator – If you have a 401(k) or IRA, you probably have some idea of how much each will yield at retirement given your current level of investment. But you can find free online calculators that can help you better understand whether the amount you’re currently saving will be enough to carry you through retirement. These calculators can also help you understand how much you’ll need to sustain the lifestyle you desire based on the number of years you can reasonably expect to live in retirement.

 Isn’t technology great?

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The Truth About ‘Charge-Off’

Posted on July 17, 2012 by Blog Team

If there’s one thing we know for sure about credit, it’s that debt doesn’t just go away. When you’re dealing with high debt, it can be tempting to look for an easy way out. Terms like “debt settlement” and “charge-off” could have you thinking it’s possible to escape debt without repercussions.

Credit scores when in debt

If there is one thing we know about credit, it's that debt doesn't just go away. The only real way to make debt disappear is to pay it.

 Unfortunately, any time you fail to pay what you owe, it will impact your credit score. A “charged-off” debt is no exception.

 A creditor may give up on being repaid under the original terms of a credit agreement—whether it was an auto loan or a credit card. But that doesn’t mean you no longer owe the money.

 Lenders who charge-off a debt typically send it to a collection agency, which will then attempt to recover as much of the remaining amount—plus interest and fees—as they can. The agency may be acting on behalf of the original lender, or may have bought the debt from the company. Either way, you still owe the money to someone.

 Collections appear on your credit report and can negatively impact your credit score. A charged-off account and related collections actions will remain on your credit report for seven years.

 Allowing a debt to go into “charge-off” status, and then collections, is no solution to a debt problem. A better choice would be to try to negotiate with the creditor for repayment terms you can cope with, and that will be less harmful to your credit history.

 The only real way to make debt disappear is to pay it.

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How Having More (or Fewer) Credit Cards Can Affect Your Credit Score

Posted on July 12, 2012 by Blog Team

If you’re monitoring your credit because you believe your credit score could use some work, you may think more credit cards are the last thing you need. Or, you may hope that adding new cards will boost your score.

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As with many aspects of life, moderation and education are the keys to positive credit card use.

 As with many aspects of life, moderation and education are the keys to positive credit card use, especially when you’re managing your credit score. How many cards you have is less important than how wisely you use the ones you do have. Using one card injudiciously can be just as damaging as having 25 cards that you never use.

 If you want to manage your credit score, keep these thoughts in mind about how credit cards play into credit score calculations:

 * Responsible use of credit over a length of time–including paying your credit card bills on time, every time—is a major factor in your credit score.

* Every time you apply for a new credit card (or any type of new credit), you’ll see a “hard inquiry” on your credit report. This means, the lender will access your full report and score. Too many hard inquiries in a short amount of time can negatively impact your score.

 * New accounts don’t have the payment history of older accounts. Good payment history is a top consideration when calculating your credit score.

 * Your debt-to-credit ratio—the amount of credit you’re using compared to the total amount you have available—also factors into your credit score. Consider this scenario—two people both owe $4,500 on credit cards. One person, however, has just a single credit card with a limit of $5,000. The other person’s total credit limit is $25,000 on five different cards. Who’s ratio (and probably credit score) is better? You guessed it: the person who has more unused, available credit.

 It’s never a good idea to apply for a new credit card or cancel an old one solely with the intent of influencing your credit score. Before you make any move to manage your credit, you should research its possible ramifications.

 Some moves, however, are pretty reliable. Avoid carrying a balance on credit cards, or, if you must carry a balance, keep it low. Watch your debt-to-credit ratio, and, most important of all, keep paying your bills on time.

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All About the Credit Bureaus

Posted on July 10, 2012 by Blog Team

You’re probably aware that there are three major credit bureaus, including our parent company, Experian. But do you know what they do—and don’t do? Do you know how they’re the same, and how they differ?

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If you're the victim of fraud and you initiate a fraud alert with one of the major credit bureaus, federal law requires that bureau to share the alert with the other two.

 The most important credit bureau information you should know is that there are many organizations that compile credit information about consumers. None are government affiliated or sponsored. The three largest, however, are the most well known and commonly used by creditors when evaluating a consumer’s creditworthiness.

 The big three often cooperate with each other in ways intended to benefit the consumers. For example, if you’re the victim of fraud and you initiate a fraud alert with one of the major credit bureaus, federal law requires that bureau to share the alert with the other two. The major bureaus also try to maintain consistent practices and use the same basic criteria to calculate credit scores in order to make scoring as easy to understand and consistent as possible.

 Still, the scoring models differ slightly, and so your credit score could differ from bureau to bureau. To get a true picture of your credit status, it’s always a good idea to look at your reports and scores from all three major bureaus. The top companies jointly maintain a website that allows you to access a free annual credit report from each once a year.

 It’s also important to understand that while credit bureaus generate credit scores based on information collected about each individual consumer (including payment history, length of credit history, types of credit used, etc.), they do not actually rate your credit. When a lender or other creditor pays a bureau for your report and score, they have to draw their own conclusions about what that information means in terms of your creditworthiness.

 Of course, there are also differences in products and services offered by all three major credit bureaus, and a visit to the website of each will help you understand those differentiators. Generally, competition is perceived as positive for consumers in any industry because it encourages companies to try to win customers with innovation, quality and service.

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Money-saving Websites Can Cook Up Savings

Posted on July 6, 2012 by Blog Team

For some people, the Internet is a spending extravaganza. You can buy just about anything online. But the ‘net’ is also a great way to save money, especially on things you need every day like food. Credit Cards are Essential

 From coupon sites that allow you to print out online-only offers to use at your local grocery store to recipe sites that offer ideas for stretching ingredients (and dollars), you can find plenty of ways to tighten your belt. Here are a few of our favorite sites for saving money on food:

 Couponmom.com – This site is a veritable buffet of savings, but what makes it a winner for grocery shopping is that you can search for and find deals by state or by chain. The featured coupons are from national chains like Target to regional ones like Publix, which serves several southeastern states.

RetailMeNot.com – Another site that offers a variety of ways to save in a number of categories, RetailMeNot features printable coupons by product category. For added savings, you can enter your zip code and look for deals specific to your region.

 Recipes.com – Yes, recipe websites are a dime a dozen, but what sets this one apart is that every recipe is tied to coupons and specials at supermarkets near you. Find the recipe you want to try and the site will tell you what needed ingredients are on sale at a nearby grocery store. This site can help you confirm that a recipe fits into your food budget for the month.

 AARP.com – What’s that, you say? Isn’t AARP an organization for seniors? Yes, it is, but members can access special deals, coupons and offers online, including grocery coupons. If you’re of age to join, and on a fixed income, the coupon savings are an added bonus to your membership.

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The Money Advice from Dad that Actually Made Sense

Posted on July 5, 2012 by Blog Team

Just like mothers, fathers sometimes offer advice that can leave you shaking your head. Sometimes, however, Dad offers up a gem of wisdom that will shine throughout your lifetime.

Money advice is a gem of wisdom that will shine throughout your lifetime.

 Here are some of our favorite tidbits of financial advice often heard from fathers:

 “Forget the Joneses!” – Spending money on the latest and best of everything just because everyone else has those things can be a road to financial disaster. The Joneses you’re trying to keep up with may be deeply in debt to achieve the lifestyle you seek to imitate. Instead of “keeping up with the Joneses,” you’d be better off to follow this next bit of financial wisdom from Dad …

 “Live below your means” – Living within your means requires you to spend less than you bring in every month. Living below your means implies spending a lot less than you earn. Why should you consider doing this? Because spending far less each month will allow you to build security through important savings accounts like your 401(k), IRA, regular savings, and an emergency fund.

 “Credit cards kill” – OK, this one might be a bit extreme, but the essence of Dad’s message is valid. A credit card can be a valuable financial tool, but like any powerful tool it can harm you if you don’t use it properly and skillfully. Dad’s not saying that using a credit card will ruin you financially; just that misusing it has the potential to cause great harm.

 “Don’t pay interest. Earn it!” – This is another gem from Dad about how to make the best use of your money. Clearly, it’s better to invest your money and earn interest or save it and draw interest, than it is to pay interest on debt.

“Money can’t buy love” – Dad probably borrowed this one from Paul, John, George and Ringo, but the sentiment is certainly valid. Money is a means to an end – to help provide for yourself and your family – making it means nothing if you don’t have people to care about.

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