For many people, the mere mention of the word “money” spurs feelings of stress and anxiousness. In fact, a Bankrate study of nearly 2,500 U.S. adults found that 70% of respondents feel stressed about their finances. At the same time, living a financially responsible life can help one maintain optimal mental health. In observation of May being Mental Health Awareness Month, let’s take a look at the connection between money and mental health.
How do financial struggles impact mental health? There are lots of ways money troubles can influence one’s mental health:
How does financial stability impact mental health? Now, let’s explore how financial stability can impact one’s mental health:
The link between money and self-worth Unfortunately, too many people link their self-worth to their financial situation. This can lead to feelings of inadequacy and low self-esteem when experiencing financial struggles. However, it is essential to recognize that self-worth is not tied to financial success. Instead, focus on developing yourself as a person in ways that are not related to your financial situation. Set personal goals, practice self-care and seek fulfillment in areas outside financial success. Debt and mental health Debt is often the most significant financial problem that people face, and it can have a strong impact on mental health. Research shows that people who are in debt are more likely to experience mental health problems like anxiety, depression and even suicidal thoughts. People who’ve been caught in the debt cycle may feel like they are trapped in their situation with no way out. This can lead to feelings of hopelessness and despair. Debt can also cause a great deal of stress, which can lead to physical health problems such as high blood pressure and heart disease. If you are struggling to escape from under a mountain of debt, there are steps you can take to kick your debt for good. Consider consolidating it through an unsecured personal loan that may include one low-interest, and possibly lower, debt payment each month. You can also pay off one debt at a time by maximizing your monthly payment toward that debt until it’s paid off, which is often called the “snowball method” of debt payoff. If you choose this route, be sure to continue making all your minimal monthly payments on your other debts as you focus on the one. Managing your finances for improved mental health Are you struggling with money challenges that are negatively impacting your mental health? Here are ways you can improve your financial and mental health:
TikTok Inspo: How do you maintain your mental health and financial wellness? Share your best tips in a 15-second video.
0 Comments
Parents have the important role of teaching their children life skills that will enable them to thrive as adults. One important skill is to learn how to manage money well. Practicing this skill early will help children through the inevitable financial ups and downs common in adulthood.
Opening a savings account for your children gives them a great opportunity to begin their training. In addition to developing the habit of saving money regularly, your child will learn how to differentiate between “needs” and “wants,” control their spending, and how to plan for their future. National Credit Union Youth Month is a great opportunity to start teaching them good financial skills. Every April, credit unions across the country focus on educating youth about financial health. This year’s theme,” Unleash the Power of Saving at a Credit Union™,” encourages kids to take care of their “pet” savings account and watch how powerful it can be. A strong and healthy savings account can provide security (and a lot of fun!) for their future. Please join us to celebrate Youth Month this April and help your child “unleash” the power of saving! If you open your child a savings account during the month of April, they will receive a coloring box, crayons, and some fun coloring pages! If they bring back their colored pages they will be entered to win a piggy bank full of quarters! Children who visit to make their deposits get to pick a prize out of our treasure chest! With the advent of technology in our lives, more of our personal data can be found online than ever before, from financial records to account information. Keeping this data secure and backed up in case of any eventuality is crucial to ongoing safety and security. In honor of World Backup Day on March 31, let’s take a look at potential threats to your data, the importance of backup strategies and some of the best practices for keeping your data safe and secure.
Data threats Your data faces a wide range of threats every day, from hackers to hardware failures to natural disasters. One of the most common threats to your data is malware, which can infect your computer or network and steal, corrupt or delete your files. Other threats include human error, power outages, equipment failures and physical damage to your devices. These threats can be devastating to your professional data, resulting in lost productivity, lost revenue and even legal liabilities. You don’t want to risk a blackout or a broken laptop leaving you up a creek. It’s essential to have a backup strategy that can help you recover from any disaster. Backup strategies A backup strategy is a plan for creating copies of your data and storing it in a safe, secure location. This can be done manually or automatically, depending on your needs and personal preference. Backup strategies are essential for ensuring the safety and security of your personal data since they can help you recover from a wide range of disasters and help you avoid the costly and time-consuming process of recreating lost data. Types of backup strategies In our increasingly digitized world, you can choose from several backup strategies:
Are you ready to back up your data? Follow these steps to get it done: Step 1: Choose a backup strategy. Use the information outlined above to choose a strategy that best suits your needs. Step 2: Assess your data. Identify the data that is most important for you to protect and prioritize it for backup. Step 3: Automate your backups. Use your chosen backup software to automate your backups and ensure they are created on a regular basis. Step 4: Test your backups. Test your backups on a regular basis to ensure they’re working correctly and can be used to restore your data in the event of a disaster. Step 5: Store your backups securely. Store your backups in a secure location, such as a safe or a remote data center, to protect them from physical damage, theft and other disasters. By following these steps, you can create a backup strategy that is reliable, secure and effective. World Backup Day presents an excellent opportunity to ensure your personal data is backed up and protected from corruption, loss or theft. Don’t wait for disaster to strike – back up your data today! Kids these days are growing up with more access to financial products than ever before. From debit cards to mobile apps and specialty accounts, they have so many options when it comes to managing their money. In honor of Youth Month, let’s take a look at why it can be a good idea to open a savings account for your child.
Teach the basics of saving One of the most important lessons you can teach your child is the value of saving money. A savings account is a great tool to help your kid understand this concept. By depositing money into the account on a regular basis and watching it grow, your child will learn the importance of setting money aside for the future. Teach kids about money management A primary benefit of opening a savings account for your child is that it helps them learn about money management in a truly hands-on way. When your child has their own account and they control their spending to a degree, they’ll learn the importance of tracking their spending and setting money goals. They’ll also learn how to manage an account at a financial institution. This includes depositing money, tracking balances and will later evolve into using a debit card when they get their first checking account and more. Help kids save for a short-term financial goal Turn the lesson of smart savings into a lifelong habit by having your child use their account to practice saving up for a short-term goal. First, talk to your child about their financial wish list, and help them choose a realistic goal. Next, help them create a savings plan while using their account, which will help them reach their goal. Your kid can now set aside money they’ve earned from an allowance or part-time job, or that’s been gifted to them for a birthday or another occasion, until they have enough money saved in their account to fund their purchase. Build credit early A child at any age can have a savings account. Financial institutions have differing policies for the minimum age required to open a share draft/checking account, but some are as low as 13 years with a parent co-owner. Many banks and credit unions offer credit cards along with youth accounts. So, as your child reaches adulthood, talk with your bank or credit union about getting a credit card with their name on it to help them start building credit at a young age. Prepare for the future Starting a savings account and learning experience from a young age can prepare your child for unexpected expenses in the future. As they age, their needs and expenses will increase, and the more you can help them prepare now, the better off they’ll be in the future. For example, your child may need extra cash to pay for a broken phone, or when they’re a bit older, for a car repair. Having money set aside for emergencies will teach them to be prepared for any financial reality. Teach investing and interest concepts A savings account can be a great way to introduce your child to the concepts of investing and earning interest. Many savings accounts offer compound interest, which means that the interest earned on the account is added to the principal, creating a snowball effect that can lead to higher growth over time. With some youth accounts, kids can even start investing in stocks, bonds and mutual funds with as little as $50. Teaching your child about these concepts can help them develop a lifelong interest in investing and financial planning. Build responsibility and independence Having a savings account can also help your child build a sense of responsibility and independence. By managing their own money and making decisions about how to save and spend it, they’ll learn valuable life skills that will serve them well in adulthood. Opening a savings account for your child is an excellent way to teach them important money habits and to prepare them for a financially successful future as more options open up to them. To open a savings account for your child at Ingersoll-Rand FCU, call, click or stop by today. Tax season is here again! Before you start stressing over those forms, though, read this guide for what you need to know about filing taxes in 2023.
Dates to know Take a note of these important dates as you start preparing your 2022 taxes.
Changes to the tax code Here are some important tax code changes to note as you prepare to file.
Tax code information to know Other parts of the tax code that are important to know and haven’t changed much for 2022 include the following:
Retirement contributions Don’t forget to maximize your retirement contributions for 2022:
Your Turn: Have you already filed your tax return? Share your best tips with us in the comments. With the advent of online commerce, credit and debit card fraud has exploded. In fact, according to data collected by the Federal Trade Commission (FTC), there have been 230,937 reports of credit card fraud filed in the first two quarters of 2022.
Unfortunately, credit card fraud can go unnoticed until it causes serious damage. Here, we’ve outlined what you need to know about credit and debit card fraud, how to protect yourself and what to do if you’re targeted. What is credit card fraud? Credit and debit card fraud occurs when a scammer gains access to a victim’s card information and goes on to empty their accounts, commit identity theft and more. Card fraud can be pulled off in several ways:
Protect yourself Fortunately, there are measures you can take to protect yourself from credit or debit card fraud. Follow these tips to stay safe:
If you’re targeted If you believe your credit or debit card has been frauded, take immediate steps to mitigate the damage. First, let the credit card company know about the fraud. Similarly, if your debit card has been frauded, let Ingersoll-Rand FCU know as soon as possible. Your old card will be canceled and you’ll be issued a replacement card immediately. You may also want to consider placing a credit freeze on your accounts as well to prevent the scammer from taking out a loan or opening another account in your name. Will I be liable for the fraud? Taking immediate action upon the event of fraud is critical to your recovery. Under federal law, credit card holders are only liable for up to $50 in fraudulent charges. Debit card holders, on the other hand, only enjoy the same cap on their liability if they report the fraud within two days. Upon failure to do so, they may be held accountable for up to $500 if the fraud is reported within 60 days of occurrence. If they miss this deadline as well, they will be liable to cover the entire fraudulent charge to their account. The good news is most credit and debit cards issued through major payment networks, like Visa and MasterCard, offer zero liability policies and other consumer protections. Read the fine print in your card agreement carefully to familiarize yourself with your responsibilities. Credit and debit card fraud can devastate a victim’s financial health and leave them with huge bills to pay. Follow the tips outlined here to stay safe. Your Turn: How do you protect yourself from debit and credit card fraud? Share your tips with us in the comments. The holidays are over, and if you’ve gone over budget with your spending, it’s time to deal with the aftermath. Instead of living in a financial deficit, take steps to repair your budget as soon as the last guest leaves.
Here’s how you can get your budget back on track for the new year. Review your holiday spending Before you take steps toward financial post-holiday recovery, take stock of your finances. How much credit card debt did you rack up this season? Did you dip into a savings account that now needs to be replenished? Spend some time crunching the numbers so you have a better idea of what kind of recovery steps you need to take now. Choose your recovery process Once you’ve got your numbers clear, you’ll need to decide on a path toward recovery. If you’ve really blown it this season, and you’ve got multiple credit card balances to pay off, you may want to consolidate your debt. You can accomplish this by taking out a personal/unsecured loan and then using the funds to pay off your credit card debt. You’ll be left with a single, low interest payment to make each month. Alternatively, you can pay off one credit card bill at a time, maximizing payments on the bill with the highest balance, or the one with the highest interest rate, until it’s completely paid off. Once you’ve crossed one balance off your list, move on to the next until you’re debt-free. Don’t get stuck paying just the minimum balance on each card each month, or you may be paying those credit card bills for years to come. Trim your budget Take a close look at your monthly spending to find places to cut back. Are you paying multiple subscriptions each month for apps you never, or rarely, use? Those small fees can add up quickly. Can you cut back on your grocery bill? Perhaps you’re overdoing it on takeout or dining out. Is there any way you can negotiate with a service provider, such as cable or internet, for a better monthly rate? Maybe it’s time to shop around for a less expensive auto insurance policy. Trim the extra wherever you can to free up more money for paying down debt. Put your holiday resources to work Along with a pile of debt, the holiday season may have left you with some extra cash through work bonuses, tax returns and gift money. Put these resources to work by using a portion of this money, or even all of it, toward paying down your holiday debt. It may sting to use “extra” money for something as utilitarian as a credit card bill, but getting rid of the debt faster so you can return to your normal spending patterns can motivate you to make this choice. Go on a shopping detox Before the holidays, you shopped until you dropped and then you may have shopped some more. Now, it’s time for a shopping detox. Take a break from the mall this month and close all those open tabs presenting your favorite clothing brands. Resolve to swipe the plastic only for essentials this month, or at least to keep discretionary purchases to a minimum until your budget recovers. Trimming expenses is never fun, but remind yourself that it’s only temporary until you’re financially fit again. Make a plan for next year’s holiday season It’s never too early to start thinking about next year’s winter holidays. Instead of using the months before Christmas stressing out over how much you’re spending, and the months after the holidays stressing about paying your bills, pay a little bit toward your holiday expenses each month of the year for a much less stressful holiday season. When you open a holiday club account at Ingersoll-Rand FCU, you can set up an automatic monthly transfer from your checking account to feed your holiday savings. If you blew your budget this holiday season, you’ll need to take steps to help your finances recover. Use the tips outlined here to get started. Your Turn: How are you helping your budget recover from the holidays? Share your best tips with us in the comments. If you’re planning a trip overseas, airfare may be your largest vacation expense. Even when flying relatively close to home, the cost of your airline ticket can take a big bite out of your vacation budget. Fortunately, there are loads of ways to save on airfare and leave you with more to spend at your destination. Here, we’ve compiled a list of six ways to save on airfare.
Be flexible with dates and destinations If you’re willing to be flexible on dates and the destination of your flight, you can potentially save hundreds on your airline ticket. Instead of choosing a date and destination for your vacation and then searching for the best prices, select a date and destination based on the best available deals. If you’re set on going to a particular destination, you may be able to save a boatload of money on the ticket by flying to a nearby airport and then driving to your vacation spot. Shop smart onlineHarness the power of technology to score the best price on airfare. Searching sites and apps like Expedia, Orbitz and Priceline is like using multiple travel agencies to find the best flights for your vacation. Kayak, another popular travel app, plugs your preferred dates into its search engine and searches airline sites and agency sites to provide you with all the prices and options available. Act quickly to snag mistake fares The best deals on airfares happen by mistake. When an airline accidentally discounts a ticket, you can snag a flight for as much as 90% off its conventional price. Mistake fares get snatched up quickly, so you’ll need to check your favorite airlines and flight apps often so you don’t miss a deal. If you haven’t worked out your child care and/or work arrangements for a date with a heavily discounted airfare, it’s best to grab it anyway and work out the details later. By federal law, airlines must allow 24 hours for free cancellations of all flight tickets. Consider booking with a foreign currency If you’ll be flying a foreign carrier, it may be cheaper to pay for your ticket with the local currency of your destination. Before paying for your flight, check to see if it’ll cost less if you don’t pay in dollars. Sometimes, it can actually cost more this way, but oftentimes, you can save a significant amount by simply changing your location from the U.S. to your destination. Book early You’ll typically find the best deals on international flights 3-6 months before the departure date. If you’ll be traveling during peak times, like summer or during a holiday season, you’ll want to search for tickets even earlier. Flights are updated constantly, so check often to get the best deal. Watch out for sneaky fees Too often, an economy flight will actually cost a lot more than its listing after the airline tacks on all sorts of extra fees and surcharges. For example, you may need to pay a fee for every bag you check during each leg of your journey. Other airlines charge a fee for choosing seats, which may be a necessity if you’ll be flying with young children or an elderly person in need of assistance. Make sure you know exactly how much you’ll be paying before you book a ticket – it can sometimes be cheaper to upgrade your ticket or switch to a direct flight and avoid some of these fees. Airfare can be the biggest item on your vacation budget, but there are so many ways to save on this expense. Use the tips outlined here to get the best deal on your tickets and keep your vacation budget intact. Happy travels! Your Turn: Have you scored a low price on an airline ticket? Share your best hacks with us in the comments. Inheritance scams have been around forever, and they’ve only gotten more prevalent with the advent of online communication. Unfortunately, if the victim falls for the scam, they’ll only inherit the loss of funds, possible identity theft and more.
Here’s what you need to know about inheritance scams and how to protect yourself. How the scam plays out In an inheritance scam, a target will receive an email or letter, allegedly from a lawyer, informing them that they’ve inherited a large sum of money from a recently departed relative. The exact amount of money referenced in the scam will vary, but it can be as high as several million dollars. The target will be asked to pay an upfront fee for the ability to claim their inheritance. The scammer claims this money will help cover the cost of legal fees, taxes and other expenses that are related to the transfer of the inheritance. Unfortunately, if the target agrees to pay the “processing fee,” they’ll never see this money again – and they certainly won’t see the inheritance they’ve been promised. In another version of the inheritance scam, the target is asked to share personal information, including their checking account details, so the inheritance can be transferred to their financial institution of choice. Of course, the scammer has no interest in sharing any funds with the victim, and will instead use the victim’s personal information to empty their accounts and/or steal their identity. Scammers use several ploys to make their ruses appear authentic. In both versions of the scam, the victim will be instructed not to share the news of their good fortune with anyone. This stops the victim from reaching out to another family member to question the authenticity of the inheritance. In addition, the email or letter informing the victim they’ve inherited a large sum of money will often include personal details about the victim’s life, such as their home address, names of their relatives and more. All of this information can generally be scraped off the internet and/or other public sources. This, too, can lead the victim into believing the missive is legit. Red flags Protect yourself from falling victim to an inheritance scam by looking out for these red flags:
If you believe you’ve been targeted by an inheritance scam, take these steps to protect your money and your information, as well as to help law enforcement agencies catch the scammers:
Your Turn: Have you been targeted by an inheritance scam? Tell us about it in the comments. December blows in at the peak of the holiday shopping frenzy, and then it tiptoes out with the end of the year and post-holiday calm. Black Friday deals are long over, and there are no major shopping holidays this month, but you can still find a fabulous deal before and after the holidays. So, whether you’re finishing up your holiday shopping or looking for year-end bargains in any category this month, we’ve got you covered.
Here’s what to buy and what to skip in December. Buy: Electronics If you missed the Black Friday sales on electronics, you can still cash in on some incredible savings. Many retailers will keep the leftovers from November’s sales marked down through the end of the month. Look for discounted electronics at big box stores, online retailers and directly from manufacturers. Skip: Winter clothing It’s still too early in the season to find any real discounts on clothing. If you can wait until retailers start slashing prices on cold-weather wear after the holidays to drum up some business, you’ll save big on winter wardrobe essentials. Buy: Toys As the year draws to a close, you’ll start seeing steep discounts on toys and games from retailers that are looking to clear the season’s inventory before the holidays. If you can handle the stress of last-minute shopping, the week or two leading up to Christmas can be the perfect time to pick up some budget-friendly stocking stuffers for the special little someone's in your life. Skip: Fitness equipment Trying to slim down before the holidays? Hold off a bit on purchasing exercise equipment and you can save big. Soon, fitness gear and clothing, as well as gym memberships, will drop in price as consumers commence with the annual New Year’s resolutions fitness craze. Until then, you can enjoy brisk walks and runs around the neighborhood at no cost. Buy: Champagne Welcome the new year with the pop of your favorite champagne, all at a price that doesn’t break the budget. Liquor sellers will be competing for your business this time of year, and prices on the celebratory beverage will plunge as New Year’s draws near. Take advantage by stocking up on your favorite bubbly at a bargain price. Skip: Furniture and bedding This isn’t the time of year to upgrade your household and give your bedroom a facelift. Furniture and bedding will be sold at full price at most retailers this month. Instead, wait for the January white sales to purchase the same items at discounted prices. For even deeper discounts, shop for furniture and other home goods at fantastic prices at Presidents Day sale events in February. Buy: Christmas decorations Prepare to deck the halls without spending a bundle. You’ll find holiday decor, wrapping paper, tree ornaments and more slashed up to 50% in price the day after Christmas. With prices like these, it’s not too early to think about next year’s holiday season! Just keep everything well-wrapped and store in a dry place. Come next year, you’ll be ahead of the holiday shopping before the season even starts. Buy: Gift cards Gift cards are the perfect antidote to out-of-control inflation. They’re always appreciated, and you won’t feel like you’re spending a ton on a gift that’s not really worth the price. Best of all, you can find discounted gift cards all through December on sites like GiftCardGranny, CardCash and through private sellers listing on sites like Craigslist. Some sites will even let you customize the card with a personalized message for the recipient. The year is drawing to an end, but the savings on some items is just beginning. Use the tips outlined here for knowing what to buy and what to skip in December. Your Turn: Have you picked up any great buys in December? Tell us about them in the comments! Q: I’ve heard the Biden administration is planning to forgive student loans. What do I need to know about this plan?
A: In August 2022, U.S. President Joe Biden announced his plan to cancel thousands of dollars in student loan debt for qualifying individuals. The plan officially went into effect on Sept. 29, 2022. Here’s what you need to know about Biden’s plan for student loan forgiveness. Is every student eligible for loan forgiveness? According to Biden’s announcement in August, the administration plans to forgive up to $10,000 in student loan debt for individuals earning less than $125,000 a year, and as much as $20,000 for eligible borrowers who are also Pell Grant recipients. For couples, the maximum income eligibility requirement jumps to $250,000 a year. How do I apply for loan forgiveness? Approximately 8 million people already have income information on file with the U.S. Department of Education (DOE); these individuals will likely have their qualifying debts automatically forgiven. All others, however, will need to submit an application with the DOE . Applications can be downloaded here and will take 4-6 weeks to process. The final deadline for submitting applications is Dec. 31, 2023. However, the DOE recommends getting it in before Nov. 15, 2022 . This will give the department enough time to process your application before the student loan payment pause ends and interest starts accruing again on Dec. 31. What kinds of loans are included in Biden’s forgiveness plan? Undergraduate loans, graduate loans and Parent PLUS loans managed by the Department of Education are all eligible for loan forgiveness. It’s important to note, though, that Biden’s plan only applies to federal student loans. This means private student loans are not eligible for forgiveness, even if they began as federal loans. If you’re unsure what type of loans you have, contact your loan servicer to find out. Which income year should I look at to see if I qualify for forgiveness? According to a senior White House official, you can look at the income from 2020 or 2021 to determine whether you fall within the income threshold for loan forgiveness. If I meet the income requirements, will all of my debt be canceled? You may have noticed news items about the loan forgiveness program using language like “up to $10,000 or $20,000 in forgiveness”. This is referring to the maximum amount of loan forgiveness an individual can expect. The rationale behind this language is that some borrowers who fall within the income eligibility may owe less than the full forgiveness amount they are eligible to receive. This means that a student who owes $8,000 in student loan debt and is eligible to have $10,000 forgiven will not be able to pocket the remaining $2,000. Instead, that money will remain with the federal government. I continued paying off my student loans during the payment pause. Is there any way I can get that money back and have more of my loan forgiven? Many borrowers kept up with their loan payments during the pause. With interest paused as well, it was a great way to get ahead on loan payments. Fortunately, these borrowers can still benefit from the new loan forgiveness plan. According to the Education Department’s office of Federal Student Aid, “You can get a refund for any payment (including auto-debit payments) you made during the payment pause (beginning March 13, 2020). Contact your loan servicer to request that your payment be refunded.” Before contacting your lender, though, check to confirm you fall within the income eligibility requirements for loan forgiveness. What steps do I need to take now? If you haven’t yet applied for loan forgiveness, and the DOE does not have your income information on file, you can submit an application here at your earliest convenience. In addition, take these steps to ensure eligibility:
At this time, it’s important to be aware of loan forgiveness scams that will likely arise within the next few months. Be sure to submit your application directly to the DOE through the link provided above, and not to click on links that are embedded in ads or unsolicited emails. In addition, be aware that there is no fee necessary to submit your application, nor is there a need to pay for assistance with your application. Never share your personal information or Student Aid account password with anyone. Biden’s student loan forgiveness plan will bring relief to millions of borrowers. Use this guide to take advantage of this offer and learn what you need to know about the loan forgiveness plan. Your Turn: Will you be applying for student loan forgiveness? Tell us about it in the comments. With inflation at record highs, many Americans are finding it difficult to stick to a budget. After all, when groceries have leapt in price and household staples can be double, or even triple, what they cost just a year ago, how can the same amount of money get you through the month?
Sticking to a budget during times of high inflation is challenging – but not impossible. Here are five ways to budget while in times of inflation. 1. Plan your grocery purchasesGroceries can take a huge bite out of a monthly budget. Fortunately, there are ways to trim your grocery bill, even when prices are soaring. First, shop your pantry and fridge before hitting the store. You may not remember exactly what you have at home, and doing a quick scan of your food items can help you stick to purchasing only what you need. Next, plan your week’s dinner menu before shopping so you can pick up exactly what you need for the week in just one go. The fewer trips you make to the grocery, the less you’ll spend on impulse buys. Also, when you have the ingredients you need and plans in place for dinner each night of the week, you’ll be less likely to make a last-minute decision to indulge in takeout or fast food. Consider joining a club store at this time as well. You’ll need to spring for a membership, but you’ll enjoy steep savings on groceries and other products. Just be careful to only buy what you need, no matter how cheap an item might be. Finally, don’t forget to shop sales and to couponize. Use apps like Reebee, Checkout 51, Flipp and Grocery IQ to stay in the know of what’s on sale in each store, and to download coupons for even bigger savings. 2. Consider an energy auditWith winter approaching and the cost of energy sources still climbing, this can be a good time to have an energy audit performed on your home. An audit will help identify energy drains around your home, such as air leaks near your windows and doors, so you can fix them to make your home more energy-efficient. You can also take additional measures toward saving on energy costs, such as switching all lightbulbs to LED bulbs, unplugging electronics when not in use and setting your thermostat a little lower during winter, and a bit higher in the summer. 3. Choose your indulgenceEveryone needs to treat themselves to something special every now and then, but with costs rising on restaurant meals, movie tickets and clothing, something’s gotta give. Take a closer look at your just-for-me purchases of the last few months, and try to narrow them down to just one or two treats. You can swap them with an enjoyable activity that doesn’t cost much, such as a hike or bike ride, or cut them out completely. Alternatively, you can find ways to trim the cost of your indulgences. For example, if you love dining out but restaurant meals are destroying your budget, you can decide to eat out but skip the desserts and wines, or opt for a midday meal so you can take advantage of lunchtime specials. 4. Switch your auto insurance planIf you’ve had your auto insurance policy for a while and you’ve maintained a good driving record during that time, there’s a good chance you can save a bundle by switching to a new insurance plan and/or provider. Reach out to a representative at your current insurer to discuss your options. Ask about raising your deductible in exchange for a lower premium, reducing overall coverage or negotiating for a safe driving discount. After obtaining a quote, call several other providers to get competing quotes. You can choose to go with your lowest offer, or call back your present provider and ask them to match it for your continued business. 5. Pad your incomeAs always, when income doesn’t meet expenses, you have the choice of trimming expenses or boosting your income – or you can do both! In addition to following the cost-cutting tips outlined here, you can also look for ways to increase your income. If your paycheck is suddenly not enough to support your lifestyle, consider asking for a raise. Your workplace may have already given you a cost-of-living raise to reflect rising inflation last year, but this may prove to be insufficient as costs have continued to rise. Don’t be afraid to ask for another raise at this time. In addition, you can look for other ways to pad your monthly income. Find a side hustle, like driving for a ride-share company or consulting for hire, which you can do at your leisure on weekends. Ask your workplace about taking on additional projects on an as-needed basis for additional pay. Open a small service business doing something you love and excel at. Every extra dollar earned counts! Times are hard for the average American consumer, but with careful planning, you can ride out the record-high inflation rates and keep your budget intact. Use the tips shared here to get started. Your Turn: How are you adjusting your budget for inflation? Share your tips and hacks with us in the comments. Q: I’m always worried about money during the holiday season, and with inflation soaring, I’m more stressed than ever. How can I save on holiday shopping this year?
A: If you’re worried about making it through the holiday shopping season in the midst of record inflation, you’re not alone. A recent survey shows that 59% of American shoppers are stressed about buying holiday gifts this season due to higher prices. However, with some careful planning and budgeting, you can enjoy stress-free holiday shopping. Here are seven easy ways you can save during this holiday season. 1. Shop early It’s always a good idea to do your shopping early in the season so pressure and crowds don’t cause you to make decisions you’ll come to regret. This year, experts are urging shoppers to hit stores earlier than normally planned so they can take advantage of early season sales. Many big-box stores are struggling with a supply surplus thanks to an inflation-triggered decline in demand. This will likely lead to sales events to make room for more up-to-date inventory. You can take advantage of this surplus by shopping these sales and saving on your holiday purchases. 2. Set a budget Budgets are for holidays, too. Sit down before doing your shopping to build a reasonable budget for your holiday shopping. Factor in current prices when working out your budget. Of course, this is only half the work – you’ll need to stick to that budget for it to be worth anything. Make this easier by allocating a specific amount for every gift, shopping with cash and/or reviewing your budget frequently as you do your holiday shopping. 3. Shop with a list Instead of hitting the stores blindly, create a list of every gift you plan to buy for friends and family. You can browse online stores for inspiration, but resolve not to start shopping until you have a complete list. You’ll be far more likely to stay within budget when your purchases are pre-planned. 4. Leave some last-minute shopping for Green Monday While it’s best to do the bulk of your shopping early in the season, you can leave some last-minute gift-shopping for Green Monday, which falls on Dec. 14 this year. This is when retailers make their final pre-holiday markdowns. Be prepared for slim pickings, though, so don’t leave any specific gifts for this late in the season. 5. Think outside the box when planning your gifts If ever there was a holiday season to get creative with your gifting, this is it. Retail inventories are full of products that were backed up during the post-pandemic supply-chain disaster. Think furniture, home decor and more. While much of this may not make for typical holiday gifts, there’s no real reason you can’t delight a loved one with a new office chair, exercise bike or coffee organizing station. 6. Give gift cards Protect your gift list against inflation by giving gift cards. You can find discounted cards on sites like GiftCardGranny and CardCash, or use cash-back apps to earn them at no cost. Gift cards are easy to shop for, easy to budget for and always appreciated by the receiver. 7. Use apps to save In 2022, there are so many apps that can help you spend less on your shopping, and even put money back in your pocket. Here are some money-saving apps you might want to download ahead of this shopping season:
Your Turn: How do you plan to save on holiday shopping this year? Share your best tips and hacks in the comments. If you’re in the market for a new job, you likely have a list of requirements that includes some must-haves and a few would-be-nice-to-haves for your new position. However, there are several important factors in a new position that many future employees overlook. Here are five things to look for in a new job.
1. Compensation and benefitsSalary requirements are likely to be the number one item on your list when looking for a new job, but your paycheck is so much more than a number or single dollar amount. Ask about the entire package being offered with the open position. Are health benefits included in the contract? If yes, what kind of premiums and coverage can you expect to have? How many personal days does the job offer include for each calendar year? What, if any, retirement savings plan is included in the salary? If applicable, are costs of travel and moving covered? Look at the full picture before making a decision. 2. A strong, growing company There’s no way to know for sure what will happen to any company in the next few years, or even months, but it’s important to do some research on the company you may be interested in joining. Ask these questions from a current or recent employee:
3. Company values that align with yoursIt’s important to belong to a workplace that shares your values. If you need to compromise your integrity and swallow your true feelings every time you walk into work, you’ll harbor resentment and won’t enjoy your job much, if at all. Working for a company whose values align with yours will help build positive feelings toward the business and make your job more pleasant. In addition to questions about the company’s history, it’s wise to talk to current and former employees about the company’s culture as well as what its employees value most. This feedback can be quite telling when trying to determine value alignment. 4. A position that challenges you to growWhatever position you’re seeking, it should prompt you to grow and to build personal skills you’ve never, or rarely, used at your previous workplace. Don’t look for a job you can do easily; look for one that will challenge you and force you to grow beyond your current skill set. This will turn you into a more valuable worker and a happier, more fulfilled person. 5. A positive environmentA job can be perfect on paper but turn out to be a nightmare in real life, thanks to a toxic work environment. Speak to recent and current employees at the company to find out what the office is really like. Is the boss overly critical and demanding, or do they set high standards in a firm but understanding manner? Is there a strong thread of competition running through the office, or do team members work well together and celebrate each other’s successes? Is the office environment tense and high-pressured, or is it a happy, pleasant place to work? Find out everything you can about the office environment before accepting a job. A new job is a big deal, and it’s important to do your research carefully before signing a work contract. Use the tips outlined here to learn what to look for in a new job. Your Turn: Have you recently started a new job? Tell us about your job search in the comments. Now that you’ve learned how to indulge responsibly and are mindful of your credit score, it’s time to start planning for retirement. This is true no matter your stage of life.
It’s never too early – or too late – to start planning for your retirement. However, like all long-term savings goals, retirement should ideally be planned for as much in advance as possible. That’s because the more time you allow for your savings to grow, the bigger the nest egg you’ll be rewarded with when it’s time to cash in on your funds. Here’s how to get started on planning your retirement. Set a target number Before you start squirreling away money for the future, determine how much you’ll need to have saved for living comfortably and independently throughout retirement. Experts recommend taking your current living expenses and multiplying that number by 400 to reach the amount you’ll need for sustaining yourself based on a 4% return. Choose your retirement accounts Next, you’ll need to select a place to keep your retirement savings. There are many options to consider, some of which you may already have if you are employed. Here’s a quick review of the two most common retirement accounts: 1. 401(k) If you’re currently or previously employed, you may already have a 401(k) that’s collecting money for your retirement, and investing it so it can have an opportunity to grow. Take advantage of this retirement tool by maximizing your contributions. Additionally, many employers will match a portion of, or all, your contributions, which is literally free money that will help your investments grow, tax-deferred. 2. IRA An Individual Retirement Plan (IRA) is a retirement fund that allows your money to grow, tax-deferred. Like with a 401(k), some employers will match a portion of, or all, contributions. However, there are federal limits on how much you can add to your IRA annually. You can choose between a conventional IRA or a Roth IRA. A conventional IRA lets your money grow tax-deferred, but withdrawals are taxable. A Roth IRA does not feature tax-deferred growth, but qualified withdrawals are not taxed. Presented in the table below is a brief summary of the pros and cons of each retirement vehicle for easy comparison. Features 401(k) IRA Roth IRA Allows Matching Funds Yes No No Tax-Deductible Yes Depends* No Tax-Deferred Growth Yes Yes No Taxable Withdrawals Yes Yes No Maximum Yearly Contribution (2022) $20,500 $6,000 $6,000 Maximum Yearly Contribution Age 50+ (2022) $27,000 $7,000 $7,000 After you’ve identified the retirement fund strategy that best works for your goals, you’ll also need to choose somewhere to invest the money. Low-risk investment vehicles, such as federal bonds or trust funds, are usually the best choice. Select a target date fund If you are saving for retirement through the use of a 401(k), be sure to check if your employer offers a target date fund. This refers to your planned retirement date. You’ll know your employer offers a target date fund if there’s a calendar year in the name of the fund, such as “B.K. Holdings Retirement 2055 Fund”. Simply determine an estimated guess of the year you intend to retire, and then pick the fund with the date closest to your anticipated retirement date. A target date fund is a smart choice because it spreads the money in your 401(k) across many asset classes, such as large company stocks, small-company stocks, bonds and emerging-markets stocks. Then, as you near the target date, the fund becomes more conservative, owning less stocks and more bonds, automatically reducing your risks as you near the date of your retirement. With a bit of work and a lot of planning, you’ll have your future secured in the best way possible. Your Turn: What’s your retirement vehicle of choice? Share it with us in the comments! Q: My parents are getting on in years and I believe they can use some assistance in managing their finances for their everyday expenses. I’d also like to make sure everything is in order if I ever find myself needing to make financial moves on their behalf. What do I need to know to help my parents with managing and protecting their finances?
A: Lots of older adults can use some help managing their finances. Your parents are fortunate to have a child who is proactive in their desire, and willing, to assist them in this challenging task. Here are some ways you can help your elderly parents manage their financial affairs. Determine whether they need help In addition to possibly not even knowing how your parents will respond to the idea of you being more involved in their finances, you may be unsure about whether they truly need your help at this time. If you notice any of the following, it can be a sign that they are in need of assistance with managing their money:
Communicate openly Before you take any real steps toward managing, or assisting with, your parents’ finances, it’s a good idea to have an open conversation with them about your current and future intentions. Explain that, if something would happen to either of your parents and they’d need help, you’d want them to be secure in the knowledge that their finances are being managed properly. You can share that you are only there to help, and that you will not take any real action without their full permission, whether this is before or when it becomes necessary. Gather information Next, sit down with your parents and ask these questions about their finances: 1. Have you named a durable power of attorney for finances? A financial power of attorney (POA) will take ownership of your parents’ accounts if they were to become incapacitated. In absence of a POA, you’d likely have to file a petition with a court of law for guardianship of your parents’ accounts. At this time, you may also want to ask them if they work with a financial planner or accountant. 2. Where do you keep your financial records and assets? Make sure you have a clear list of all your parents’ records, accounts and assets. If your parents have been hiding money under the mattress for years, they may have a sizable nest egg in their bedroom and you need to know about it. In addition, keep all account information, as well as a list of your parents’ assets and their locations, in a secure place. 3. What is the name of your mortgage lender? If your parents are still paying off a mortgage, or another large loan, be sure to learn the name of the lender and the status of the loan. Record the reference number for the loan as well. 4. What are your monthly expenses? Make a comprehensive list of your parents’ ongoing expenses, including all fixed bills and non-fixed bills, as well as seasonal and discretionary expenses. 5. How do you pay your bills? Find out which, if any, of your parents’ bills are paid automatically and which account funds the money transfer. Ask about other bills: are they paid via paper check, digital check or a checking account? 6. How much is your annual income? Ask about Social Security benefits, monthly pension, investment dividends and any other income stream your parents may have. 7. What kind of health insurance do you have? Find out if your parents receive Medicare or Medicaid benefits, and whether they have additional benefits. You’ll also want to inquire about possible long-term care insurance, which can cover the cost of a long-term health aide and/or senior living facility 8. Have you written a will or a trust? It’s a difficult topic, but a crucial one: Make sure your parents have a plan for what happens to their assets after they’ve passed on, as well as the name of the attorney where it is filed. Establish a plan At this point, you’re ready to establish a plan for managing, or assisting with, your parents’ finances. Be sure to listen to their personal preferences and to honor their dignity as much as possible. Ask them if they’d like you to take responsibility for one or more of their monthly financial-related tasks. For example, you can pay their mortgage and car payments each month, or make decisions relating to their investments. Also at this time, consider simplifying their finances in any way you can. For example, if your parents have multiple credit card balances, you may want to consolidate this debt by paying off the balances with an unsecured loan and then having just the one loan payment each month. You can also automate as many bills as possible. Alternatively, you can talk about the future only, and have your parents agree to let you manage their money if one or both of them become incapacitated in any manner. If your parents find it difficult to relinquish this bit of independence, start assuming responsibilities for their finances gradually, just one bill at a time. Taking over the finances of elderly parents can be a delicate and daunting task, but it is often a necessary one. Use the tips outlined here to navigate this situation smoothly. Your Turn: Have you helped your elderly parents manage their finances? Tell us about it in the comments. Your credit score is a crucial part of your financial health. The three little numbers measure the capacity of your credit, the proficiency of your money management and your fiscal responsibility. An excellent credit score can open the door to large loans with better interest rates, as well as employment opportunities and more. On the flip side, a poor credit score can be a strong impediment toward building wealth, funding large purchases and finding gainful employment.
Let’s explore the best ways to build and maintain an excellent credit score. Have several active credit cards Many consumers mistakenly believe the path toward great credit is through swearing off all credit cards. However, building and preserving a healthy credit score requires owning a card or two and keeping them active. If you’re just starting out, consider signing up for a beginner’s card, which generally features easy eligibility requirements and very little available credit. Otherwise, be sure you have a minimum of three open cards and that you use them on a regular basis. To keep your cards active without having an open balance, you can pay one fixed monthly bill, such as a subscription or monthly membership fee, with each of your credit cards. Set up an automatic monthly payment for the bill by linking your credit card, and then set up an automatic monthly payment for the credit card, too, by linking your checking account to the card. Choose to have the money transferred before the bill is actually due. This way, your cards will be open and active and you’ll never have a late payment, which would negatively impact your credit score. Several months of using your cards responsibly will generally help move your credit score upward. Work on paying down debt If you’ve landed deep in debt and can’t find a way out, now’s the time to work on kicking that debt for good. First, choose your debt-crushing method: The snowball method works by putting all available funds toward paying off the smallest amount of debt first, and then the next-smallest, until all debts are paid off. The avalanche method works the same way, but pays off the debt with the highest interest rate first, and then the next-highest, until all debts are paid off. With the snowball method, you’ll see results quicker, but may ultimately pay more in overall interest. Choose the method that works best with your personality, goals and lifestyle. Next, list your debts. If you’re going with the snowball method, list in order from lowest amount to largest. If you’ve chosen to use the avalanche method, list your debts in descending order of interest rate. You’re now ready to pay down those debts! Review your monthly budget to find a way you can trim your expenses, or look for a side hustle, and use the extra cash to maximize your payments toward the debt you’re working on first. Keep at it until you’re debt-free. It may take a while to crush a mountain of debt, but showing the credit bureaus that you’re on track to pay off that debt can do wonders for your score. Pay your bills on time Paying credit card bills when, or before, they’re due is a major factor in determining your score. Carrying an outstanding balance, and/or owing lots of interest, shows that you are not timely with your bills and can’t be counted on to repay loans responsibly. As mentioned, you can set up automatic monthly payments for your bills so you’re never late. Just make sure you keep the account you are paying from well funded to cover your payments as they come out. Bring down your credit utilization ratio Another crucial factor contributing to your score is your credit utilization ratio. This refers to the amount of available credit you have and use. It’s best to keep your utilization under 30%, or even 10% if you can. To that end, make sure you’re using just a bit of your available credit each month. In addition, consider accepting offers for increased credit – as long as you know you won’t rack up huge bills by having all that additional credit. Keeping an excellent credit score is a key factor in financial wellness. Use the tips outlined here to build and maintain a great score. Your Turn: Do you have an excellent credit score? Tell us how you do it in the comments. The holidays are inching closer, but that big shopping frenzy hasn’t quite started yet. There are no big shopping holidays this month either, but you can still pick up a scary-good deal in October.
Here’s what to buy, and what to skip this month. Buy: Jeans The September sales on jeans will get better in October. Retailers need to get rid of the last remnants of back-to-school sales, and autumn deals on denim will be too good to pass up. Shop your favorite retailers and check out some new ones you thought you couldn’t afford to find incredible savings on jeans this month. Skip: Winter apparel Clothing deals will stop at the denim this October, so don’t plan on filling out your winter wardrobe just yet. Warm-weather wear won’t start dropping in price until Thanksgiving at the earliest, and the best markdowns will only appear on shelves around the holidays. The weather is still mild in much of the country during mid-autumn, so there’s really no rush to purchase bulkier clothing now. Instead, wait it out a bit to save big bucks. Buy: Outdoor gear As the weather cools down and people head indoors, prices on all things outdoor will start dropping. This includes patio furniture, gardening tools, grills, camping gear and so much more. Check out online retailers, like Wayfair and Overstock, and look for markdowns at brick-and-mortar locations, like Lowe’s and Home Depot. Keep your new outdoor items wrapped well and safely stored away indoors so they’re good as new and ready for use at the first sign of spring next year. Skip: Cleaning supplies Are you in the market for a new vacuum cleaner? Looking to score a deal on a robot sweeper? You’re best off waiting a bit longer, until Black Friday. On the biggest shopping day of the year, big-ticket cleaning items will see steep discounts. Buy: Halloween costumes and décor As with any holiday, the closer the calendar gets to Halloween, the steeper discounts you’ll see on related paraphernalia. This includes party décor, costumes, yard decorations, candy and more. If you don’t mind a last-minute costume, you’ll save a ton by shopping for Halloween in October. You can also get a head-start on next year’s costume by shopping the Halloween clearance sales which start on Nov 1. Skip: Electronics If you’ve been patiently holding out on buying new electronics, wait just a bit longer to make your purchase. TVs, gaming consoles, laptops, tablets and more will start dropping in price next month at Black Friday sale events. You can expect to see these items discounted by as much as 30% at popular retailers around Thanksgiving. Buy: Autumn apparel You can pick up some in-between weather wear this October at super-hot prices. Retailers need to make space for the winter stock, and will be discounting all autumn wear. Take advantage of this by cashing in on fantastic sales. Skip: Appliances Don’t spring for a new oven, refrigerator or washing machine just yet! Being hot items at Black Friday sale events, you’re best off waiting a bit before dropping a load of money on new appliances. Start looking out for Black Friday sales as early as Nov. 1 to score the best deal. October’s got some great deals to offer the savvy shopper. Use this guide to find out what they are, and which items should be put on the wait-list this month. Your Turn: Have you picked up any great deals in October? Tell us about it in the comments. You’ve got mail! But beware, because this particular missive telling you that you’ve been preapproved for a large loan – maybe even a mortgage – may not be as it seems! The exciting news may be accompanied by a check that’s made out to you and even for the full loan amount! It’s a dream come true. Until, of course, it all turns into a living nightmare.
Here’s what you need to know about preapproval scams and how to stay safe. How the scams play out In a preapproval scam, a target receives a letter in the mail, an email or a text message informing them they’re preapproved, or “prescreened,” for a large loan. The letter is often accompanied by a live check, or an unsolicited check that can be cashed in by the named recipient – which is you. The letter may also be highly relevant to your life. For example, if you’re in the market for a new home, the offer may feature an alleged preapproved mortgage loan. If you’re looking for a new set of wheels, the letter will likely offer a bogus auto loan. More commonly, though, will be the offer of a personal, or unsecured loan, through a live check. When you go ahead and cash that check, you may be playing right into the hands of a scammer. The authentic-looking check cannot be cashed unless the recipient shares their personal information. Of course, this means providing a scammer, or a scam ring, with all the info they need to empty your accounts, commit identity theft or worse. In addition, the check may appear to clear but then bounce a few days later, leaving you to pick up the tab for any of the money you’ve spent. Finally, if you really do need to take out a large loan, the bogus offer can set you back significantly by hurting your credit score. Checklist for legitimate preapproval offers If you have a credit history, you’ve likely received these preapproval offers at least several times. Some of them are actually legitimate offers to cover a loan for a large amount. How, then, can you tell which of these offers are legitimate or scam? First, it’s important to know that, while some of these offers may be legit, that doesn’t mean they’re good for your financial health. If you cash that check and/or accept that loan offer, you’ll be bound by the loan terms, which you may not be truly aware of until the first repayment bill becomes due. Most of these preapproval offers will have exorbitant interest rates and may demand full repayment quicker than typical loans obtained from a bank or credit union. Now, let’s take a look at how you can determine whether one of these preapproval offers is legit. If you receive an offer as described, look for this information to verify the authenticity of the offer:
If you’ve been targeted If you’ve been targeted by a preapproval scam or a legitimate but shady offer, there are steps you can take to protect yourself from further harm and to stop the annoying letters from landing in your mailbox. First, let the Federal Trade Commission (FTC) know about the circulating scam. Next, it’s important to note that, under the Fair Credit Reporting Act, you have the right to opt-out of future loan offers for five years, or permanently. To opt-out for the next five years, call 1-888-5-OPTOUT (1-888-567-8688) or visit OptOutPrescreen. To opt-out forever, visit OptOutPreScreen to request a Permanent Opt-Out Election form. Return the signed form and you should be off the list of all preapproval offers. Finally, keep your online interactions safe from scams by using the strongest and most up-to-date security settings across your devices and being careful about the information you share online. Preapproval scams can be super-annoying and destructive, but you can outsmart them. Stay safe! Your Turn: Have you been targeted by a preapproval scam? Tell us about it in the comments. Looking for ways to up your productivity levels while at work? These innovative apps can help you stay on top of your game at the office, always.
Freedom Distractions can make it impossible to get any work done. With the Freedom app, though, your time is yours again. Block out all distractions, like promo emails, social media alerts you really don’t need to know about right now and more. You can choose to go offline completely, only block out social media or select which apps and/or websites you want to disable now. Choose your time block, too, and you’re ready to get to work! Sunrise This free calendar app makes your work schedule super smooth and simple. Input your tasks and meetings into the calendar, and it helps you get them done with innovative features, like automatically dialing into a conference call, importing photos of your contacts via their social media profiles and more. Todoist Get more done in less time with this super-convenient to-do list app. Share your lists with your co-workers, assign tasks to various team members and collaborate efficiently with the entire team on any project. No more waiting for updates on an assignment, fielding endless questions about your own progress on a task or wondering who can assist you with a project. Doodle Are you constantly getting caught up in long email chains when trying to find a date and time for a meeting that works with everyone? Save time and stress with the Doodle app, which allows you to suggest a date for a meeting within a single message, send it to participants through the app and then let them instantly vote on what works for them. Let the app do the rest of the work, confirming the date that works best for everyone. Slack Stop wasting half of your workdays on back-and-forth emails between yourself and your colleagues. Slack helps streamline your communications to be more effective and leave less room for misunderstandings. Set up different “channels” for select groups of team members, or even for specific projects so no relevant messages get lost in the shuffle. The app also allows for push notifications so you never miss an important update. Use these tech tools to stay on top of your game at work and bring your productivity to a new level. Your Turn: Which tech tools help you stay productive at work? Tell us about them in the comments. |
Archives
January 2024
Categories
All
|