Tuesday's Tips

Hey everybody, we're swinging into 2010 and I've got some great tips to get you rolling. After taking some holiday time to relax and refresh my brain it's now bursting with tips that just need to be given.

1) If you're setting goals write them down. This is probably the most important tip I'll give all year. There is no better way to fail to reach a goal than to not write it down. I've been saying for years that I'm going to get into better shape, start working out, and make positive lifestyle changes. However I never wrote those things down, and I've yet to work out for more than 2 weeks before stopping. In my head I'm always saying to myself "man I need to start working out again" or "that flight of stairs should not make me short of breath, I think it's time to start getting back into shape." But all of my inner monologues have yet to motivate me enough to go more than 2 weeks. But, I sat down one night and wrote down 5 goals that I'd like to accomplish this year. Some were very simple like "make different brownies in my new brownie pan once a month" and some were more advanced such as "earn my real estate license by passing the exams on the 1st try." My point is that if you don't right your goals down you will be less likely to complete them. This isn't just my opinion, it has been proven over longitudinal studies that have lasted over the past 50+ years.

2) Upgrade your education. In these economic times jobs are scarce and those that are available might want the best possible candidate. If you are equally qualified as another candidate, but that candidate has a license or higher degree, they may be the person that gets the job. Right now I am earning my Real Estate License because it will raise my value to my company, and it shows that I am taking initiative and wanting to learn more to help the company. My girlfriend is currently waiting to hear back from a graduate program that she applied to because she wants to take advantage of the down economy to further her education and improve her prospects for the future. Also, this program will get her into a job working with children which is what she would love to do.

So everyone, make sure you write down some goals and start educating yourself. And don't think education means you have to earn a degree or a license. It can be as simple as just taking a class or 2 at a community college or technical school. Whatever it is just start educating yourself and stick to those goals. Look at them every morning and every night. Keep a copy in your wallet or purse. Just write them down because you'll be hundreds of times more likely to work toward completing them.

Everyone take it easy and enjoy 2010. We're already almost 1/12 of the way through the year, so make sure to take advantage of what time is left.

I'm on a 168 hour break, so until then Stay Tuned...

Sallie Mae's Tips for College Planning

There are many steps to picking a college. Sallie Mae has provided a list of things to consider while choosing. Financial concerns are among the top issues and if you miss deadlines to apply for aid - you may have to wait another year to apply. This is not a time to procrastinate. Once the money is gone - you are out of luck.

TOP 10 TIPS
For Planning and Paying for College

Make the most of high school academics and activities
Select courses that meet college admissions requirements. Develop your
interests and talents through additional activities.

Find a college that fits you
Use the Internet, guidebooks, brochures, campus visits, and college
fairs to find schools that meet your academic and personal needs.

Take appropriate standardized tests
The SAT and/or the ACT are usually required for college admissions.
Use a test prep book or online practice tool to get ready.

Familiarize yourself with the college application process

Make a list of all deadlines and required recommendations, essays,
transcripts, test scores, etc.

Investigate scholarship opportunities early
Scholarships are based on a variety of criteria and can be found on
the Internet, in scholarship guides, and through sponsoring groups.

Beware of scholarship scams
No one can guarantee you a scholarship in advance, and you should
never have to pay a fee for scholarship searches.

Understand college costs
In addition to tuition, room and board, you also will need to cover fees,
books, transportation, and personal expenses.

Research your eligibility for federal and state financial aid
Two-thirds of all full-time undergraduate students receive some kind
of financial aid, so odds are you are eligible, too.

Complete the FAFSA annually in January
This is required to be considered for federal student aid. It can also
be required by colleges, state agencies, and some scholarships.

Explore student and parent loans
Borrow only what you absolutely need. Start with federal student
loan programs, which usually provide the best terms.

For more information on planning and paying for college, visit
http://www.salliemaefund.org/.

©2008 The Sallie Mae Fund. All Rights Reserved.
SMF-023

Stay tuned.....

2010 Make the Decision to be Debt Free

Wow, Already a week into 2010. Seems just like yesterday we were planning what we were going to do to bring in the year 2000. Time flies by and that is why it is so important to have a plan with your finances and start saving now.

Before you know it - you will be celebrating your 50th birthday.

Here are some tips to start off on a good note in 2010 from All About Money.

Control spending: If you spend less you'll have more money available to pay down debt and save for the future. Write down your expenses for a month to see where your money is going. You might be surprised by how easy it is to find places to scale back.

Create a debt repayment plan: If you carry credit card debt, write down everything you owe and make a plan to pay it off. Start with small items you can act on right away—it will make tackling the bigger debt easier. Also, try buying with cash only. It’s a sure-fire way to prevent increases in your credit card debt.

Set up auto-savings plans: Arrange with your bank or another financial institution to have a set amount deducted from your checking account to a savings account each pay period. Of the Americans who have been able to contribute to emergency savings funds, automatic withdrawal is the most popular method, according to the Consumer Federation of America.
Boost retirement savings: If your employer offers a 401(k) plan, increase your contributions. If you don't have an employer plan, open an Individual Retirement Account (IRA) and arrange for contributions to be made automatically from your checking or savings account.

Create a long-term plan: Write a list of your long-term goals, such as buying a home or saving for college or retirement. Visit Smart about money for more tips on accomplishing these goals.

Protect Yourself: Be prepared for the unexpected by making sure you, your family, your assets and investments are insured and fully covered. If you do not have a will, make 2010 the year you establish a life plan.

Find a financial buddy: Share your financial resolutions with a friend, colleague, or family member, and you’ll be more likely to keep them. Find someone else who wants to turn around their debt or cut their spending, and establish a mutual support system.

Copyright © 2010 National Endowment for Financial Education. All rights reserved.

Stay tuned.........

Happy Holdiays

From our home to yours we wish you a healthy, happy and safe Holiday Season.

Top 10 - End the Year on Top

Top 10 Things to Do Before January 1

1. Go through closets, drawers and boxes - donate and help others. (get a receipt for a tax deduction)

2. Create a Will. Every person needs one. It is a gift to your loved ones. You can set one up at Legal zoom or contact an attorney.

3. Review the past year and set goals for the new year.

4. Set up a designated driver for any holiday outings.

5. Make any doctor appointments before your deductible renews.

6. Review expenses, spending, savings and debt. Make a plan to be debt free in 2010. Spend less than you earn and remember to pay yourself first.

7. Live your passion. Break the cycle of debt and spending so you can do the things you love.

8. Get a new skill, certification or degree. In the ever changing world, chances are you will have more than one career. Prepare ahead of the layoff or boredom.

9. Volunteer. There is nothing better than helping others. You will get more out of the experience than you give.

10. Change your thinking and attitudes about money and instant gratification. A few changes can change your life, future and relationships.

Wishing you all a safe and healthy Holiday Season.

Stephenie, Mary and Stefan

Tuesday's Tips

Because the shopping season in upon us there are some things we should always be watching for. These tips will hopefully save you some money this year.

1) Look to see if anything you've purchased is on sale. If it is then take it back to the store for a price adjustment. If it's on sale at another store take it back to your store and see if they'll price match. If they won't then try returning it and buying it cheaper at the other store. I've found that a few gifts I've purchased are now on sale and I've either had the price adjusted or matched on those items. It's saved me around $40 and only cost me half an hour of my time.

2) Don't spend if you don't have. Simply put, if you don't have the money in your account to cover a purchase, you don't need to be making the purchase. This time of year is when most people rack up credit card debt, and that needs to be avoided. Your friends and family should understand that you weren't able to spend a ton because you didn't want to end up with bad debt. Just be careful with those cards because it's easy to get caught with a bill you can't pay off.

But remember most of all to ENJOY the holiday's! Whatever you celebrate make sure it's with people you care about.

I'm on another 168 hour break, so until then Stay Tuned...

Thank you Southern Connecticut State University

Thank you Southern Connecticut State University for a great evening Monday December 7, 2009. I enjoyed meeting and presenting to your student body.

Where do I invest my small amounts of money I am saving?

For young adults this couldn't be a better time. The market is low and you have time. All you have to do is ACT!

What are you waiting for? T Rowe Price has an account you can start for $50 a month or $1000. If you go with the automatic account builder it will help you make small changes so you can continue to contribute every month. We are talking $12.50 a week. One less fast food meal and speciality coffee a week - will start to build you wealth and security.

Basic Rules for Investing in an IRA
1 Need earned income
2. 2009 limit $5000, if over age 50 $6000
3. Can not contribute more that you earn
4. Roth IRA is normally the best choice for young investors
5. Investment - research all in one funds/target retirement date

T. Rowe Price gives an excellent data sheet on the differences and eligibility for IRA investing. If you have concerns feel free to comment on the blog and I will be happy to answer your questions.

After much research T Rowe Price had the lowest minimum to get a new investor started. Other discount firms such as Fidelity Investments had a minimum of $200 amount on an automatic account builder and Vanguard had a $3000 minimum. All the above companies have licensed representatives available to answer your questions and assist you. They are all salaried and not on commission. This keeps fees low and the representative from pressuring you into a product you don't need. As always check with a financial professional prior to making any investment decisions. Happy Investing...

Stay tuned................

Tuesday's Tips

Good morning future (or current) millionaires. Today's tips are a review of some basic GenM ideals.

1) Pay yourself first. Don't be afraid to save. Some people will tell you that there is no need to save more than 5% in your 401K or retirement fund. Try to tune them out. Put away around 15% if you can. If you start out putting that much away, and learn to live off of the rest of what you earn, then you will be much more comfortable when you retire. If you think that's way too much then pull out a growth calculator and crunch the numbers. Look at the difference between putting away $1,500 every year and $4,500 every year over the course of 40 years at 8% interest. The difference between the totals is astounding. Believe me if you save today you'll be able to live financially free in the future.

2) Keep credit cards under control. Never carry over a credit card balance. If you don't have the money to pay for something and your solution is to use a credit card then don't do it. Obviously emergencies come up every now and then, but if you can't pay for the new clothes you want then don't buy them. Keeping credit card balances and paying the minimums on them is the fast track to big debt. Once you get in it's really hard to get out. Plus keep in mind that prospective employers, banks, and other people look at credit history before making decisions and bad credit can and will hurt your chances of getting that job or loan. So don't have tons of lines of credit and keep the balances paid off. You'll be happier this way.

Well I'm off to spread the financial good news to others, so I'm on a 168 hour break.

Until then, Stay Tuned...

FICO Credit scores revealed

Your actions make a huge difference in your credit score and the cost of doing business.

FICO Reveals How Common Credit Mistakes Affect Scores
by Jeremy M. SimonSunday, November 29, 2009

Did you max out your credit card? Expect a credit score drop of 10 to 45 points. Declare bankruptcy? Your score will plummet by up to 240 points, and your odds of getting credit will nosedive with it.

The "damage points" data, unveiled recently by FICO, are part of the most revealing glimpse into the firm's once-secret -- and still mysterious -- credit scoring model. The new information discloses how many points borrowers' scores will drop when they make the most-common mistakes.

'Help People Understand' Scores
"I hope this information will help people to better understand FICO scores and the value for them of avoiding credit missteps. It illustrates key points such as the higher your score, the farther it can fall if you stumble," says FICO spokesman Craig Watts. "Getting and maintaining a good score isn't complicated. We all just need to pay our bills on time, keep credit card balances low and take on new debt sparingly. "

The greater transparency about FICO scores is important because American consumers' ability to get credit rises and falls with the number. FICO, the company that pioneered credit scoring, assigns consumers a three-digit number from 300 to 850, depending on how well they handle credit. Other companies also offer scores, but FICO's version is the most widely used by lenders in determining whether a consumer can borrow, and at what rate.
FICO's credit score has been around for decades, but only within the past decade have consumers gradually gained access to theirs. Though the raw numbers can be purchased, how they're figured remains a FICO secret, as closely guarded as the formula for Coca-Cola. Until Thursday, FICO revealed only broad categories of factors influencing the score, but not the number of points at stake for consumers who fail to pay as agreed. The "damage points" information, revealed in a report by personal finance writer Liz Pulliam Weston, will be made available through its myFICO.com Web site starting this weekend.

FICO's information shows that bankruptcy does the most serious damage to a credit score (up to 240 points), followed by foreclosure (up to 160 points) while maxing out a credit card has the least numerical impact (as few as 10 points).
Those with good or excellent credit -- so-called prime borrowers -- put more points at risk with each mistake. For example, someone with an average credit score of 680 who pays a bill 30 days late will see a drop of 60 to 80 points. But for someone with an excellent credit score -- 780 -- that same delinquency can send a FICO score tumbling by 90 to 100 points.

The Cost in Dollars
In order to show just how badly a drop in your FICO score can hurt your wallet, we spoke with members of the home mortgage, auto and credit card lending industries. We presented hypothetical scenarios of a consumer who decided to apply for a $200,000, 30-year mortgage; a $20,000, five-year auto loan and a credit card. While all the industry insiders stressed that a FICO score isn't the only factor in determining who gets credit and at what cost (other factors they cited include the borrower's debt-to-income ratio and whether they have already established a relationship with the lender), they were able to provide an idea of what a borrower who had the following credit scores could expect.

For a Consumer Who Started With a FICO Score of 780:
Following a 30-day late payment, the consumer's car loan rate would jump nearly 3 percent, costing the borrower $26 more each month.

Following a debt settlement, the consumer would pay as much as $109 more each month on a home mortgage.

For a Consumer Who Started With a FICO Score of 680:
Following a 30-day late payment, the consumer would pay $41 more each month for a car loan.

Following a 30-day late payment, the consumer would pay as much as $95 more each month on a home mortgage.
Following a debt settlement, the consumer would no longer qualify for a credit card.

Some Surprised By the Details
Consumer advocates say it's important for borrowers to know what can damage their FICO scores. "If they know it in advance, they won't go out and step in a pile of doo-doo. They won't go out and do some of these things," says Linda Sherry, director of national priorities with advocacy group Consumer Action. Even experts found some surprises in today's news. "FICO imposes bigger hits than I would have thought for being maxed out or 30-days late just once, reinforcing my view that it is a cruder, blunter instrument than they like to claim. Nevertheless, it is a powerful, widely used crude blunt instrument," says Ed Mierzwinski, consumer program director for the U.S. PIRG consumer advocacy group.

Of course, knowing the impact on a FICO score and actually avoiding these mistakes are two separate things: Amid rising unemployment and other daily financial struggles, paying bills and staying on-track financially becomes a much bigger challenge for many borrowers.

"Some of these things are out of their control," Sherry says of consumers.
Additionally, as Weston points out, consumers with identical FICO scores can have different credit histories. That means the same slip-up -- such as maxing out a credit card -- could have different impacts on consumers who have the same FICO score. In the examples they provided, FICO assumed each borrower had several active major credit cards, a mortgage, car loan and student loans.
Sherry acknowledges the benefit of putting a number to a financial blunder. "I don't think we necessarily knew the numbers that a bankruptcy could apply to a credit score," Sherry says.

Helping You Make Better Decisions
While knowing the numbers may not keep you filing for bankruptcy if given no other choice, the information may help you make the best decision when faced with a bad situation.

FICO scores -- and the access to credit they provide -- are a valuable asset to consumers and supply a safety net when incomes are stretched. It's an asset that needs to be protected, Sherry says, even if job loss or catastrophic illness makes bill paying problematic.

"In that period of time, paying down debt is the last thing on your mind. Paying the minimum payment may also be the last thing on your mind, but you'll be doing yourself a big favor if you do," Sherry says.

Stay tuned....

Tuesday's Tips

Hey everyone! Time for another post based on real situations from my life. This week my situation is a bit depressing, but because of preparedness everything is going to be just fine.

1) Have at least 3-6 months of living expenses saved. Put this money in a fund that you never use. It's best to start by figuring out absolute necessities that need to be paid. Mortgage/rent, loans, medication, and utilities. Also add in another hundred or two for food and/or other necessities. If you have credit card debt, which I recommend avoiding, figure out the minimum payment. Start an account that will give you instant access to the money if needed, and then forget you have it. I have money deducted from each paycheck and automatically deposited into my account. That way I don't have to worry about spending what I'm trying to save. I also put part of any bonus money or tax return money into the account so I don't blow it all.

2) This money will be useful for any big event. This event could be anything: a large medical bill, job loss, or car crash. It could be any number of other things, but this money should be for emergencies. If you rack up lots of credit card debt and use your savings then there might be bigger problems that you need to address. This needs to be emergency only money. In my case my girlfriend lost her job recently. However we both have savings for just such an occasion. We won't need to worry about making rent or utility payments because we have our extra savings that we never spend.

So just remember to be prepared for any occasion that could arise. You'd be surprised that you'll save up a pretty large sum if you really want to. And should something come up that will cost a large sum, you'll have your emergency stash ready to go.

I'm on a 168 hour break so until then Stay Tuned...