Steve Repak's Blog - Posts Tagged "family"
The Honeymoon is Over… What To Do With All of the Money?
Through my many years of working with them I have learned that couples will resist taking advice from their better half but they will take advice from a total stranger. It is not an insult to you or your better half, it is just the truth. With that said I don’t come bearing gifts of money but instead I want to share with you four things to do with the wedding money your friends and family have given you.
Proverbs 11:24 (NIV)
“One person gives freely, yet gains even more; another withholds unduly, but comes to poverty.”
(1.) Give God His due
If you really want to start your marriage on the right track, learn to give at the beginning. If you have your priorities in order now it will make life so much easier later. How can it help you financially? When you give, you have no choice but to live on less which is not just biblical but also the cornerstone of personal finance. Show God what your true priorities are by giving to Him a part of your financial treasures.
1 Corinthians 16:2 (NIV)
“On the first day of every week, each one of you should set aside a sum of money in keeping with your income, saving it up, so that when I come no collections will have to be made.
(2.) Fund your “life happens” account
Nobody plans on bad things happening such as your car’s transmission going out or needing to replace your refrigerator, but you need to have some cash in safe, short term savings to cover these types of emergencies, because it isn’t a matter of if they will happen, it is only a matter of when.
If you don’t have anything in savings and an unplanned expense does come up, you won’t have any choice but to use a credit card. Your ultimate goal is to have at least 3-6 months of your monthly non-discretionary spending in an account separate from your checking account. If you are not starting out with this, consider setting aside a portion of your wedding money to start or add to your “life happens” account.
Proverbs 15:22 (NIV)
“Plans fail for lack of counsel, but with many advisors they succeed.”
(3.) Talk to a counselor
You are probably thinking to yourself that you just got married so why would you need to talk to a counselor. You may not need a marriage counselor, but you would be wise to talk to a financial counselor. A Certified Financial Planner ™ (CFP®) can help both of you plan a road map to your golden years and help you decide where to put some of your wedding cash for your longer term financial goals. You can find a local CFP® by going to www.cfp.net.
1 Timothy 5:8 (NIV)
“Anyone who does not provide for their relatives, and especially for their own household, has denied the faith and is worse than an unbeliever.”
(4.) Blow some of your cash
I know I will get some negative comments and 1 Timothy 5:8 is speaking more towards the area of balance at work, family, etc. but I believe there should be balance also when it comes to money. Give God His due, but find balance with the rest of your money. Extremes seldom work and I have found that couples who have balance in their lives are happier. Spend, spend, spend will lead to poverty while save, save, save can lead to resentment. Be responsible with most of your wedding cash, but do set aside a small portion to spend on things you both like or things you both like to do!
http://www.bethanyjett.com/2014/03/05...
Bethany Jett
Proverbs 11:24 (NIV)
“One person gives freely, yet gains even more; another withholds unduly, but comes to poverty.”
(1.) Give God His due
If you really want to start your marriage on the right track, learn to give at the beginning. If you have your priorities in order now it will make life so much easier later. How can it help you financially? When you give, you have no choice but to live on less which is not just biblical but also the cornerstone of personal finance. Show God what your true priorities are by giving to Him a part of your financial treasures.
1 Corinthians 16:2 (NIV)
“On the first day of every week, each one of you should set aside a sum of money in keeping with your income, saving it up, so that when I come no collections will have to be made.
(2.) Fund your “life happens” account
Nobody plans on bad things happening such as your car’s transmission going out or needing to replace your refrigerator, but you need to have some cash in safe, short term savings to cover these types of emergencies, because it isn’t a matter of if they will happen, it is only a matter of when.
If you don’t have anything in savings and an unplanned expense does come up, you won’t have any choice but to use a credit card. Your ultimate goal is to have at least 3-6 months of your monthly non-discretionary spending in an account separate from your checking account. If you are not starting out with this, consider setting aside a portion of your wedding money to start or add to your “life happens” account.
Proverbs 15:22 (NIV)
“Plans fail for lack of counsel, but with many advisors they succeed.”
(3.) Talk to a counselor
You are probably thinking to yourself that you just got married so why would you need to talk to a counselor. You may not need a marriage counselor, but you would be wise to talk to a financial counselor. A Certified Financial Planner ™ (CFP®) can help both of you plan a road map to your golden years and help you decide where to put some of your wedding cash for your longer term financial goals. You can find a local CFP® by going to www.cfp.net.
1 Timothy 5:8 (NIV)
“Anyone who does not provide for their relatives, and especially for their own household, has denied the faith and is worse than an unbeliever.”
(4.) Blow some of your cash
I know I will get some negative comments and 1 Timothy 5:8 is speaking more towards the area of balance at work, family, etc. but I believe there should be balance also when it comes to money. Give God His due, but find balance with the rest of your money. Extremes seldom work and I have found that couples who have balance in their lives are happier. Spend, spend, spend will lead to poverty while save, save, save can lead to resentment. Be responsible with most of your wedding cash, but do set aside a small portion to spend on things you both like or things you both like to do!
http://www.bethanyjett.com/2014/03/05...
Bethany Jett
How to Live a VIP Lifestyle on a Budget
There’s a saying that good meat isn’t cheap and cheap meat isn’t good—in other words, you get what you pay for. So when you’re on a budget, how can you enjoy the finer things in life without breaking the bank?
Fortunately, you can treat yourself and the ones you love to some VIP-style fun every once in a while, even if you don’t make a million dollars a year. Here are a few ways you can eat out, travel, and have fun on a budget:
Dining out
Going out to eat is definitely a treat, and costs can quickly add up. Save money by not ordering drinks and instead only ordering water. Non-alcoholic beverages and wine are where restaurants make most of their profits.
Another way to save a little money while still being able to eat great food is to go out for lunch instead of dinner. The portions will most likely be smaller, but that means your bill will be smaller, too. You can also try a different day of the week. Many restaurants offer deals on slower-traffic days in order to drive more business.
Traveling
Try vacationing in the off-season. You can find some great vacation packages by booking during off-peak months, and resorts and beaches may not be very busy during those times.
If you are flying, try scheduling your flight to leave and return during the middle of the week or booking flights with connections instead of non-stop or direct flights. It won’t be as quick, but it will be cheaper (and you’ll have some time to stretch your legs). You may also want to consider alternate means of transportation, such as bus or train, if time is not a factor and if your travel destination is only a few hundred miles away.
The finer things
If you love to be pampered, consider checking out the local beauty colleges or spa training schools in your area instead of pricier salons or spas. You’ll save money, and the person taking care of you will appreciate the opportunity to further perfect his or her craft. You can also try daily deals sites, such as LivingSocial and Groupon, which often have discounted prices for spa and salon services. But buyer beware: You can definitely wreck your budget if you don’t know when to say no to a deal.
If you prefer a good shopping spree to unwind, gently used could be the way to go. Consider shopping at clothing consignment stores and online stores. You can find new and nearly new items for a fraction of the price.
Can you travel, eat out, and enjoy the finer things without breaking the bank? I think you can as long as you have some self-control, are able to budget, and remember that you aren’t a multi-millionaire. What are your tips for enjoying yourself on a budget?
via http://blog.equifax.com/retirement/ho...
Fortunately, you can treat yourself and the ones you love to some VIP-style fun every once in a while, even if you don’t make a million dollars a year. Here are a few ways you can eat out, travel, and have fun on a budget:
Dining out
Going out to eat is definitely a treat, and costs can quickly add up. Save money by not ordering drinks and instead only ordering water. Non-alcoholic beverages and wine are where restaurants make most of their profits.
Another way to save a little money while still being able to eat great food is to go out for lunch instead of dinner. The portions will most likely be smaller, but that means your bill will be smaller, too. You can also try a different day of the week. Many restaurants offer deals on slower-traffic days in order to drive more business.
Traveling
Try vacationing in the off-season. You can find some great vacation packages by booking during off-peak months, and resorts and beaches may not be very busy during those times.
If you are flying, try scheduling your flight to leave and return during the middle of the week or booking flights with connections instead of non-stop or direct flights. It won’t be as quick, but it will be cheaper (and you’ll have some time to stretch your legs). You may also want to consider alternate means of transportation, such as bus or train, if time is not a factor and if your travel destination is only a few hundred miles away.
The finer things
If you love to be pampered, consider checking out the local beauty colleges or spa training schools in your area instead of pricier salons or spas. You’ll save money, and the person taking care of you will appreciate the opportunity to further perfect his or her craft. You can also try daily deals sites, such as LivingSocial and Groupon, which often have discounted prices for spa and salon services. But buyer beware: You can definitely wreck your budget if you don’t know when to say no to a deal.
If you prefer a good shopping spree to unwind, gently used could be the way to go. Consider shopping at clothing consignment stores and online stores. You can find new and nearly new items for a fraction of the price.
Can you travel, eat out, and enjoy the finer things without breaking the bank? I think you can as long as you have some self-control, are able to budget, and remember that you aren’t a multi-millionaire. What are your tips for enjoying yourself on a budget?
via http://blog.equifax.com/retirement/ho...
Money Can't Buy Hapiness but a Vacation Might!
If you didn’t know…. Money can’t buy happiness… well maybe not long term happiness anyways. But it can certainly buy you a vacation, and with it being summer time I thought it would be appropriate to talk about how to vacation without going bankrupt.
If you are working hard isn’t it ok to sometimes also play hard? Vacations are a time when you can reconnect with friends and family and recharge your batteries. What happens many times though is we either spend too much or finance our vacations the wrong way… and yes, I mean finance them through the use of credit cards. I have two tips that you can use so you can enjoy your time on vacation instead of worrying about how you will have to pay for it.
1. Pay Now or you might have to Pray about it Later
When I say pay now…that means pay for your vacation with what you have in your vacation fund. Most everybody has heard of the envelope system where you set aside money in envelopes for each of your spending categories. I use a variation of that concept for my larger expenses throughout the year like property taxes, home owners insurance and family vacation. For me I actually have a separate account that is not linked to either my checking or savings. It is a second savings account that I have at another financial institution. The reason I do that is so I am not tempted to use that money for anything but paying for my vacation. I set my budget for our annual family vacation and then I create a draft or automatic bill to transfer a portion of this to my vacation account each pay period. For example, let’s say I am budgeting $2600 for my next vacation. If I am paid bi-weekly this works out to be 26 paydays per year, so I would set up a draft for every two weeks to transfer approximately $100. If you get paid weekly that would be $50 dollars a week. If you do this for an entire year you will have $2,600 saved up for your vacation next year. The best part is that you won’t have to put it on your credit card!
2. Sometimes Cheap Meat is Good
I like to tell people that cheap meat isn’t good and good meat isn’t cheap, or you get what you pay for. The exception to that rule can be vacation time. To save money consider vacationing off season. You can find some great vacation packages by not taking them during the peak months. Also, instead of staying at a resort, consider renting out a condo or apartment. What I like about that is that you have the ability to cook some or all of your meals instead of eating out. If you have a family of four or more, taking everybody out to eat three times a day for a week can eat up your entire vacation budget alone! Consider cheaper methods of travel. If you have the time, consider traveling by train. Yes I said train! Believe it or not train travel is becoming increasingly popular as a way to get to your destination and see some of this great country along the way.
Ecclesiastes 8:15 (NIV) “So I commend the enjoyment of life, because there is nothing better for a person under the sun than to eat and drink and be glad. Then joy will accompany them in their told all of the day of the life God has given them under the sun”.
Most people work extremely hard and I believe it is perfectly acceptable to invest some money on a vacation. The memories you will create are priceless. They will stay with you and your family for a lifetime; you just don’t want to spend the rest of your life paying for it!
via http://nicoleodell.com/2014/06/money-...
If you are working hard isn’t it ok to sometimes also play hard? Vacations are a time when you can reconnect with friends and family and recharge your batteries. What happens many times though is we either spend too much or finance our vacations the wrong way… and yes, I mean finance them through the use of credit cards. I have two tips that you can use so you can enjoy your time on vacation instead of worrying about how you will have to pay for it.
1. Pay Now or you might have to Pray about it Later
When I say pay now…that means pay for your vacation with what you have in your vacation fund. Most everybody has heard of the envelope system where you set aside money in envelopes for each of your spending categories. I use a variation of that concept for my larger expenses throughout the year like property taxes, home owners insurance and family vacation. For me I actually have a separate account that is not linked to either my checking or savings. It is a second savings account that I have at another financial institution. The reason I do that is so I am not tempted to use that money for anything but paying for my vacation. I set my budget for our annual family vacation and then I create a draft or automatic bill to transfer a portion of this to my vacation account each pay period. For example, let’s say I am budgeting $2600 for my next vacation. If I am paid bi-weekly this works out to be 26 paydays per year, so I would set up a draft for every two weeks to transfer approximately $100. If you get paid weekly that would be $50 dollars a week. If you do this for an entire year you will have $2,600 saved up for your vacation next year. The best part is that you won’t have to put it on your credit card!
2. Sometimes Cheap Meat is Good
I like to tell people that cheap meat isn’t good and good meat isn’t cheap, or you get what you pay for. The exception to that rule can be vacation time. To save money consider vacationing off season. You can find some great vacation packages by not taking them during the peak months. Also, instead of staying at a resort, consider renting out a condo or apartment. What I like about that is that you have the ability to cook some or all of your meals instead of eating out. If you have a family of four or more, taking everybody out to eat three times a day for a week can eat up your entire vacation budget alone! Consider cheaper methods of travel. If you have the time, consider traveling by train. Yes I said train! Believe it or not train travel is becoming increasingly popular as a way to get to your destination and see some of this great country along the way.
Ecclesiastes 8:15 (NIV) “So I commend the enjoyment of life, because there is nothing better for a person under the sun than to eat and drink and be glad. Then joy will accompany them in their told all of the day of the life God has given them under the sun”.
Most people work extremely hard and I believe it is perfectly acceptable to invest some money on a vacation. The memories you will create are priceless. They will stay with you and your family for a lifetime; you just don’t want to spend the rest of your life paying for it!
via http://nicoleodell.com/2014/06/money-...
Summer Fun That Won't Break The Bank
With summer upon us I thought it would be timely to write about ways we can have some summer fun that won’t break the bank. When budgets are stretched to the max, the key is to be flexible and creative. The best memories aren’t always the final destination but many times it’s the journey that got us there.
GROUPON®
To tell you the truth, you don’t have to be on a tight budget for this to make sense. I think anyone who is looking for some great deals definitely should give it a try. From paintball to movies, to fine restaurants and frozen yogurt, Groupon is a great website that features discounted gift certificates for any number of goods and services, including vacations. My only caveat is to use these as a treat and not a reason for you to overspend.
Planes, Trains & Automobiles
Ok, maybe not all three. I remember when I was little my parents would throw my sister and me into the back of their pickup truck with a camper shell and we would drive a couple hundred miles to visit relatives. I strongly discourage this manner of travel because I think I am still scarred from those experiences. A better idea that may be just as adventurous but a lot more comfortable is to travel by train. With the price of gas skyrocketing, trains can be a much more affordable means of transportation compared to a car or airplane.
Sharecation
OK, I know that really isn’t a word but it is a great way to reduce the cost of a vacation by planning it with a group of people. When you can spread the cost out between a few families, a home, villa, or condo at your favorite beach or vacation getaway can be a win-win situation for everyone. Having a kitchen and a washer and dryer can not only save on food cost, but you won’t have to pack as much since you can wash clothes there. As an added benefit kids behave much better when there are other adults around!
Your Favorite Search Engine
If you need some ideas, go to your favorite search engine on the internet and type in “fun things to do in ____________.” You fill in the blank. For example, whenever there is a long weekend, I do a search for “fun things to do in Charlotte, North Carolina” or if I have more time I just type in the State I want to visit. You can find some great historical places, parks, museums, festivals, and many other fun places to visit.
Staycation
Unlike the sharecation where you vacation with other families, a staycation is one where you create adventures at home. You don’t have to pay big bucks watching professional baseball or soccer at an overpriced stadium but you can take your little ones or maybe not so little ones to the local baseball or soccer ball field and it most likely won’t cost you a dime but you can still get experience the excitement of a live game. Another idea is the adventure of camping, but you can do it in the safety of your backyard where if you get tired of roughing it outside, you are just a few steps from the comfort of your home.
As I said at the beginning, the key is to be flexible and creative. Priceless memories don’t always have to be expensive. What matters most is the time that is spent together and not what you spent.
via@ Jennifer Maggio http://thelifeofasinglemom.com/summer...
Life of A Single Mom Ministries
GROUPON®
To tell you the truth, you don’t have to be on a tight budget for this to make sense. I think anyone who is looking for some great deals definitely should give it a try. From paintball to movies, to fine restaurants and frozen yogurt, Groupon is a great website that features discounted gift certificates for any number of goods and services, including vacations. My only caveat is to use these as a treat and not a reason for you to overspend.
Planes, Trains & Automobiles
Ok, maybe not all three. I remember when I was little my parents would throw my sister and me into the back of their pickup truck with a camper shell and we would drive a couple hundred miles to visit relatives. I strongly discourage this manner of travel because I think I am still scarred from those experiences. A better idea that may be just as adventurous but a lot more comfortable is to travel by train. With the price of gas skyrocketing, trains can be a much more affordable means of transportation compared to a car or airplane.
Sharecation
OK, I know that really isn’t a word but it is a great way to reduce the cost of a vacation by planning it with a group of people. When you can spread the cost out between a few families, a home, villa, or condo at your favorite beach or vacation getaway can be a win-win situation for everyone. Having a kitchen and a washer and dryer can not only save on food cost, but you won’t have to pack as much since you can wash clothes there. As an added benefit kids behave much better when there are other adults around!
Your Favorite Search Engine
If you need some ideas, go to your favorite search engine on the internet and type in “fun things to do in ____________.” You fill in the blank. For example, whenever there is a long weekend, I do a search for “fun things to do in Charlotte, North Carolina” or if I have more time I just type in the State I want to visit. You can find some great historical places, parks, museums, festivals, and many other fun places to visit.
Staycation
Unlike the sharecation where you vacation with other families, a staycation is one where you create adventures at home. You don’t have to pay big bucks watching professional baseball or soccer at an overpriced stadium but you can take your little ones or maybe not so little ones to the local baseball or soccer ball field and it most likely won’t cost you a dime but you can still get experience the excitement of a live game. Another idea is the adventure of camping, but you can do it in the safety of your backyard where if you get tired of roughing it outside, you are just a few steps from the comfort of your home.
As I said at the beginning, the key is to be flexible and creative. Priceless memories don’t always have to be expensive. What matters most is the time that is spent together and not what you spent.
via@ Jennifer Maggio http://thelifeofasinglemom.com/summer...
Life of A Single Mom Ministries
Four Reasons Why Renting a House May Be Better Than Buying One
Growing up, I was constantly told that buying a home was the American Dream. When I was in the military, I was sometimes looked down upon because I was a renter, but it just made more sense for me at the time.
Here are four reasons you might consider renting rather than buying a home:
1. You are a traveler. I think back to my time in the military, when I had to pick up and move every three to four years. If you’re in a profession that requires you to move often, like I was, renting could easily be a better choice. Buying and selling a home are expensive endeavors, and getting involved with either one could wind up being a losing proposition, depending on how long you will own the house, the housing market in your area, and current interest rates, among other things.
2. You moved to an overheated market. Depending where you are geographically, your local real estate market may be red hot, requiring you to overpay to get the house you want. Think Houston, Texas, in the 1980s, just before it fell victim to the oil bust; Silicon Valley up until the dot-com bust in 2000; and, most recently, the pre-Great Recession housing market.
Comparing local rents to local home sale prices might help you determine if it makes better sense to rent rather than buy a home. If home values are high, consider renting until prices drop and you can score a deal on your dream home.
3. You hate commitment. Maybe you don’t want to be tied down for 20 or 30 years; maybe you don’t want to have to worry about maintenance costs, taxes, and fluctuating interest rates; or maybe you just want to have a change of scenery every once in a while.
And heaven forbid your neighborhood should deteriorate or a shopping center should pop up on the vacant land behind your house. It is a lot easier to get away from a not-so-good neighbor or neighborhood if you are renting.
4. You are starting over or just starting out. Financially speaking, if you are in one of these situations, you might not be able to come up with a nice down payment, or your cash flow could be a little unpredictable. There is nothing wrong with saving for a few years or waiting until you are sure you can afford a mortgage payment along with the taxes, insurance, HOA dues, and utilities that come with homeownership.
Some people like going to the beach, while other people like going to the mountains—renting versus buying is the same thing. The choice may simply come down to personal preferences. You can still live the American Dream if you don’t own a house, especially if homeownership doesn’t make sense for you.
via http://blog.equifax.com/real-estate/f...
Here are four reasons you might consider renting rather than buying a home:
1. You are a traveler. I think back to my time in the military, when I had to pick up and move every three to four years. If you’re in a profession that requires you to move often, like I was, renting could easily be a better choice. Buying and selling a home are expensive endeavors, and getting involved with either one could wind up being a losing proposition, depending on how long you will own the house, the housing market in your area, and current interest rates, among other things.
2. You moved to an overheated market. Depending where you are geographically, your local real estate market may be red hot, requiring you to overpay to get the house you want. Think Houston, Texas, in the 1980s, just before it fell victim to the oil bust; Silicon Valley up until the dot-com bust in 2000; and, most recently, the pre-Great Recession housing market.
Comparing local rents to local home sale prices might help you determine if it makes better sense to rent rather than buy a home. If home values are high, consider renting until prices drop and you can score a deal on your dream home.
3. You hate commitment. Maybe you don’t want to be tied down for 20 or 30 years; maybe you don’t want to have to worry about maintenance costs, taxes, and fluctuating interest rates; or maybe you just want to have a change of scenery every once in a while.
And heaven forbid your neighborhood should deteriorate or a shopping center should pop up on the vacant land behind your house. It is a lot easier to get away from a not-so-good neighbor or neighborhood if you are renting.
4. You are starting over or just starting out. Financially speaking, if you are in one of these situations, you might not be able to come up with a nice down payment, or your cash flow could be a little unpredictable. There is nothing wrong with saving for a few years or waiting until you are sure you can afford a mortgage payment along with the taxes, insurance, HOA dues, and utilities that come with homeownership.
Some people like going to the beach, while other people like going to the mountains—renting versus buying is the same thing. The choice may simply come down to personal preferences. You can still live the American Dream if you don’t own a house, especially if homeownership doesn’t make sense for you.
via http://blog.equifax.com/real-estate/f...
Don’t Believe Everything you Read when it comes to Financial Advice
2 Timothy 3:13(NLT) “But evil people and impostors will flourish. They will deceive others and will themselves be deceived.”
Most people are extremely trusting and that can get them into a heap of trouble. There is an old saying that goes: don’t believe everything you hear and only ½ what you see. For some reason if people read something on the Internet or their favorite social media site, they trust that information and act on it as prudent advice. When it comes to financial information, the Internet can be a great resource but it should not be your only resource. Here are a few things to consider before taking financial, or any other type of advice for that matter, from the internet or your favorite social media site.
1. Most people can spell
If you can spell “Christian” or “Finance Expert” you can call yourself one. Just because someone has a blog, website, Facebook page, etc., don’t assume they are truly an expert or that they have your best interests at heart. Take the time to verify the information and keep in mind that all credentials (the little letters at the end of their name) are not created equal.
2. If it sounds too good to be true…. RUN
There are no secrets or short cuts to being financially secure. If someone promises overnight riches or the next sure thing, RUN! People tend to make decisions with their emotions, especially when it comes to money. Two strong emotions are fear and greed. Many times financial decisions are based on those two emotions and you can find yourself making short-term decisions that might make you feel good now only to regret them further down the road.
3. Your BFF on Facebook
We usually trust our family and friends the most. That is not a bad thing but the problem is when we trust the advice they may post. It could be a stock tip they overheard from their dentist or something they read while they were searching the internet. Don’t assume information that comes from a family member or friend is good, reliable or relevant. There is nothing wrong with trusting the people you love, just make sure you take time to verify the information before you take any action.
4. One size does not fit all
A great example is when you read about how much you should save for retirement. The general rule is you need to save enough to replace 75% of your pre-retirement income adjusted for inflation. But that amount can change for each person based on their age now, their age when they retire, how long they might need the money to last, how much debt they have, pensions, security, etc. You can use information as a guide, and hopefully it can provide you with a little direction, but it might make better sense to sit down with a professional than can provide you with information and guidance that will be more specific to your situation.
Always remember the following truths about financial advice: there are no free rides, everybody wants your money and don’t believe everything you read unless of course you are reading your Bible. The internet and social media can be entertaining and there is a ton of information out there, but just because it glitters doesn’t mean it’s gold. It is ok to trust, but always verify the organization, the information, the person, etc. before making any decisions when it comes to your finances or anything else that might be important in your life!
via @ http://nicoleodell.com/2014/07/dont-b...
Most people are extremely trusting and that can get them into a heap of trouble. There is an old saying that goes: don’t believe everything you hear and only ½ what you see. For some reason if people read something on the Internet or their favorite social media site, they trust that information and act on it as prudent advice. When it comes to financial information, the Internet can be a great resource but it should not be your only resource. Here are a few things to consider before taking financial, or any other type of advice for that matter, from the internet or your favorite social media site.
1. Most people can spell
If you can spell “Christian” or “Finance Expert” you can call yourself one. Just because someone has a blog, website, Facebook page, etc., don’t assume they are truly an expert or that they have your best interests at heart. Take the time to verify the information and keep in mind that all credentials (the little letters at the end of their name) are not created equal.
2. If it sounds too good to be true…. RUN
There are no secrets or short cuts to being financially secure. If someone promises overnight riches or the next sure thing, RUN! People tend to make decisions with their emotions, especially when it comes to money. Two strong emotions are fear and greed. Many times financial decisions are based on those two emotions and you can find yourself making short-term decisions that might make you feel good now only to regret them further down the road.
3. Your BFF on Facebook
We usually trust our family and friends the most. That is not a bad thing but the problem is when we trust the advice they may post. It could be a stock tip they overheard from their dentist or something they read while they were searching the internet. Don’t assume information that comes from a family member or friend is good, reliable or relevant. There is nothing wrong with trusting the people you love, just make sure you take time to verify the information before you take any action.
4. One size does not fit all
A great example is when you read about how much you should save for retirement. The general rule is you need to save enough to replace 75% of your pre-retirement income adjusted for inflation. But that amount can change for each person based on their age now, their age when they retire, how long they might need the money to last, how much debt they have, pensions, security, etc. You can use information as a guide, and hopefully it can provide you with a little direction, but it might make better sense to sit down with a professional than can provide you with information and guidance that will be more specific to your situation.
Always remember the following truths about financial advice: there are no free rides, everybody wants your money and don’t believe everything you read unless of course you are reading your Bible. The internet and social media can be entertaining and there is a ton of information out there, but just because it glitters doesn’t mean it’s gold. It is ok to trust, but always verify the organization, the information, the person, etc. before making any decisions when it comes to your finances or anything else that might be important in your life!
via @ http://nicoleodell.com/2014/07/dont-b...
Will My Future Spouse’s Bad Credit Affect Me?
In any relationship, each person brings his or her own baggage. I’m not just talking about emotional baggage—there is also financial baggage of which you should be aware. Before you say, “I do,” keep in mind that you’ll be making a promise to stand by your spouse for richer and for poorer because money is one of the top reasons many couples fight.
If your soon-to-be spouse isn’t as financially fit as you, it doesn’t mean you should call off the big day. However, you do need to have some discussions with him or her before you walk down the aisle.
Joint accounts vs. separate accounts
Before you get married, decide whether you will both deposit your earnings into a joint account or keep your finances separate. Joint accounts could potentially lead to a financial emergency, especially if one person is not tracking what he or she is spending or is spending more than what is in the account.
On the other hand, having separate accounts creates unique issues. For example, you might be unable to see what your spouse is spending or saving. This could lead to problems later because it could result in two people living off of one person’s savings and retirement.
There is no right or wrong answer, but you should have a plan before you tie the knot. In a healthy relationship, there has to be some give and take—an important concept when it comes to your money or any other important decision.
Your first house
The good news is that if you both are working and you apply for a loan jointly, the lender will look at your combined income. The bad news is that the lender will also look at each of your credit reports and your combined debt-to-income ratios. If one spouse has blemished credit or a lot of debt, that could mean a higher interest rate on the loan—or possibly a complete rejection of the application.
Does this mean that if your significant other has bad credit, you can’t get a house? Maybe, but it could also mean you can afford less house as you may face a higher interest rate that increases your monthly payment. You may simply have to apply for a loan in your name only, but this means you will only qualify for a home you could afford on your own instead of for a home you could afford on both salaries.
Credit cards
Bad credit can haunt you for years, so you should both be aware of your personal credit histories and debt situation before you get married. This may raise some red flags around which you will have to plan. Does your spouse have a lot of debt? You will need to make sure the accounts don’t become past due. Is your spouse a heavy spender? You may want him or her to start using a joint card to encourage wiser spending habits. Are you considering applying for a joint credit card with someone who might not have a stellar credit score? You might want to consider just adding him or her as an authorized user to get better terms.
If you are the one who doesn’t have stellar credit, you can be added as an authorized user, but be aware that not all companies report authorized users to the national credit reporting agencies (CRAs), so you might not get any credit for paying your part of the bill.
There are always pros and cons with each route you choose. The point here is that you need to have a plan before your wedding day. Love is blind, but lenders aren’t. They will look carefully at your credit history, so make sure you are making financial decisions with your head and not with your heart.
Article courtesy of http://blog.equifax.com/credit/will-m...
If your soon-to-be spouse isn’t as financially fit as you, it doesn’t mean you should call off the big day. However, you do need to have some discussions with him or her before you walk down the aisle.
Joint accounts vs. separate accounts
Before you get married, decide whether you will both deposit your earnings into a joint account or keep your finances separate. Joint accounts could potentially lead to a financial emergency, especially if one person is not tracking what he or she is spending or is spending more than what is in the account.
On the other hand, having separate accounts creates unique issues. For example, you might be unable to see what your spouse is spending or saving. This could lead to problems later because it could result in two people living off of one person’s savings and retirement.
There is no right or wrong answer, but you should have a plan before you tie the knot. In a healthy relationship, there has to be some give and take—an important concept when it comes to your money or any other important decision.
Your first house
The good news is that if you both are working and you apply for a loan jointly, the lender will look at your combined income. The bad news is that the lender will also look at each of your credit reports and your combined debt-to-income ratios. If one spouse has blemished credit or a lot of debt, that could mean a higher interest rate on the loan—or possibly a complete rejection of the application.
Does this mean that if your significant other has bad credit, you can’t get a house? Maybe, but it could also mean you can afford less house as you may face a higher interest rate that increases your monthly payment. You may simply have to apply for a loan in your name only, but this means you will only qualify for a home you could afford on your own instead of for a home you could afford on both salaries.
Credit cards
Bad credit can haunt you for years, so you should both be aware of your personal credit histories and debt situation before you get married. This may raise some red flags around which you will have to plan. Does your spouse have a lot of debt? You will need to make sure the accounts don’t become past due. Is your spouse a heavy spender? You may want him or her to start using a joint card to encourage wiser spending habits. Are you considering applying for a joint credit card with someone who might not have a stellar credit score? You might want to consider just adding him or her as an authorized user to get better terms.
If you are the one who doesn’t have stellar credit, you can be added as an authorized user, but be aware that not all companies report authorized users to the national credit reporting agencies (CRAs), so you might not get any credit for paying your part of the bill.
There are always pros and cons with each route you choose. The point here is that you need to have a plan before your wedding day. Love is blind, but lenders aren’t. They will look carefully at your credit history, so make sure you are making financial decisions with your head and not with your heart.
Article courtesy of http://blog.equifax.com/credit/will-m...
Why Estate Planning Documents Should Be Part of Your Financial Planning Strategy
There is an old saying that people spend more time planning for a vacation than they do for retirement. You can imagine that most people spend even less time with estate planning. Planning for death or incapacity might not be on your bucket list, but it must be considered, especially when it relates to your overall financial planning strategy.
1. When you die, your assets will go somewhere
Whether or not you have your estate planning documents in good order, your assets will go somewhere. They just might not go where you want them to go if you don’t have your estate planning documents together.
For example, if you do not have your documents titled or registered in the correct way, have out-of-date beneficiaries on your contracts, or die intestate—without a will—the person or persons who might be relying on those assets after you die could suffer. They may face a financial burden because they don’t receive those assets, or they may receive them only after a significant delay.
2. Minimize taxes and fighting between heirs
Having a properly drawn will or trust in place prior to your death may help minimize certain tax consequences. It also discourages conflicts between your heirs. If you have minor children, it is especially important to list a primary caregiver and an alternate because you likely do not want the courts deciding who will take care of your children.
3. Make your wishes known now, while you are competent
Nobody ever plans on becoming ill or being involved in an incapacitating accident. But if you are unable to communicate or make rational decisions, especially regarding your health and money, it could leave both you and those who might have to take care of you in a bind.
4. Pay now or run the risk of paying more later
What about the cost? Could it be painful on your pocketbook to have an attorney draw up your plan? Sure, but it could cost your heirs a lot more if something happens and you don’t have correct documentation in place. Because of the rapidly changing nature of federal and state laws, you should consider meeting with a licensed attorney who is in good standing with his or her state’s bar association and who specializes in estate planning.
No matter how much money you may or may not have, it is important to have your estate planning documents in place. Not doing so can bring about much pain and misery for the people who have to take care of you, your family, or your estate.
via Equifax Finance Blog http://blog.equifax.com/retirement/wh...
1. When you die, your assets will go somewhere
Whether or not you have your estate planning documents in good order, your assets will go somewhere. They just might not go where you want them to go if you don’t have your estate planning documents together.
For example, if you do not have your documents titled or registered in the correct way, have out-of-date beneficiaries on your contracts, or die intestate—without a will—the person or persons who might be relying on those assets after you die could suffer. They may face a financial burden because they don’t receive those assets, or they may receive them only after a significant delay.
2. Minimize taxes and fighting between heirs
Having a properly drawn will or trust in place prior to your death may help minimize certain tax consequences. It also discourages conflicts between your heirs. If you have minor children, it is especially important to list a primary caregiver and an alternate because you likely do not want the courts deciding who will take care of your children.
3. Make your wishes known now, while you are competent
Nobody ever plans on becoming ill or being involved in an incapacitating accident. But if you are unable to communicate or make rational decisions, especially regarding your health and money, it could leave both you and those who might have to take care of you in a bind.
4. Pay now or run the risk of paying more later
What about the cost? Could it be painful on your pocketbook to have an attorney draw up your plan? Sure, but it could cost your heirs a lot more if something happens and you don’t have correct documentation in place. Because of the rapidly changing nature of federal and state laws, you should consider meeting with a licensed attorney who is in good standing with his or her state’s bar association and who specializes in estate planning.
No matter how much money you may or may not have, it is important to have your estate planning documents in place. Not doing so can bring about much pain and misery for the people who have to take care of you, your family, or your estate.
via Equifax Finance Blog http://blog.equifax.com/retirement/wh...
