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Are Sock of the Month Clubs Worth It?

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Sock of the month clubs are the latest and greatest addition to the monthly subscription choices. Instead of heading to the mall every time you need more socks, just sit back and let them come to your front door instead. But is the cost of the subscription really worth it? It depends on your needs and if you like fun and quirky socks.

There are a variety of subscription options, but they all work about the same. Sign up, pay your monthly fee, and socks come every month to your mailbox. Just as there is a variety of options, there is also a variety of prices. You can pay as little as $11 a month for one pair and as much as $49 per month for six pair. There are some where you pay annually for a fee of $235 that includes just one pair per month. So the real question becomes . . . do you really need that many socks and are you willing to pay that much for them.

Here are a few of the top clubs and their offerings to help you decide:

Nice Laundry has a build-your-own box option where you can decide if you want dress socks or decorative socks each month. Prices run $49-$109 per month for 6-18 pairs. The one nice perk with this club is that they recycle. Just wash your old worn socks and pack them back in the box your new socks arrive in and send them back. They will either donate (if they are only gently used) or shred into fabric fibers.

Sock Fancy is one of the most reasonably priced subscriptions. You can choose one, two, or six pairs per month and it starts at just $11. One nice perk they offer over other subscription services is that you can exchange anything you don’t like. Their socks have reinforced toes and heal and all are decorative socks, no plain white here.

Want to go high-end? Then Paul Smith is what you’re looking for. These funky socks come all the way from England and are very well designed. They’ll set you back $235 a year for 12 pairs.

Lastly, if you just need something basic, Blacksocks has just what you need. Choose basic, solid color socks in a variety of materials from cotton to cashmere starting at $10.50 per month.

All of these subscription services charge you for a three-, six-, nine-, or twelve-month subscription at once so be prepared to lay down some cash up front for a few pairs of socks.

So, are they really worth it? If you want to give a “something different” gift or like to have nice socks for yourself, then yes. If you usually wear basic black, brown, or white socks that you can find at any department store or Target, then no. Sock of the month clubs are definitely on the pricier side of subscription boxes, especially when you consider that you have to pay for several months up front. And if you only need to replace your socks every couple of months, you’re likely to end up with a lot more socks than you need.

Are Free Google Play Redeem Codes A Scam?

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Getting free play codes and gift cards in exchange for answering a few questions may sound like an easy way to get some free goods, but don’t buy into it. In fact, be very careful. Why? Because not only are code generators a scam, they are trying to infect your system with malicious malware and steal your identity. Google Play redeem codes are no different.

Many sites offer free Google Play codes in exchange for answering a few questions and offering your opinion on their marketing efforts. It only takes a few minutes of your time and, since you’re offering an opinion on whether or not their marketing efforts are hitting their mark, it makes sense that you’d get paid. But instead of getting paid in dollars, these survey sites are offering Google Play codes as payment.

They claim that you can use the free redeem codes for music, games, and videos, but in reality, the codes don’t actually work and you’ve wasted your time with the surveys. In addition, the chances that your computer is now open to an attack or your identity is at risk is very high.

Gift card and code generators are developed by very experienced hackers. They con you into doing some kind of task, like answering surveys, and offer you free Google Play redeem codes in exchange for your time. But guess what . . . they are using these surveys to gather enough personal information to steal your identity. They may also be planting a virus in your computer with each click of the mouse you make. And while these sites look like the real deal, they are really fake sites, used only to gather your information.

Google Play redeem code generating sites, for the most part, are a scam so avoid them. Their only goal is to collect your information. While you’re busy taking a survey, the hackers are stealing your email and any other information you provide. They will give you a free Google Play redeem code in in exchange for your information, but it won’t work. Do not trust any site that offers free Google Play redeem codes.

But there is one option that is safe and offers real redeem codes in exchange for your opinions.

TokenFire is an advertising app that offers rewards for your opinions. You can earn “tokens” for things like watching videos or playing games on their app. Then you can exchange your “tokens” for Google Play redeem codes or other gift cards. There are various ways to earn “tokens” and each task offers a different number of tokens depending on how much of your time it will take and the difficulty of the task. Once earned, your “tokens” are easily redeemable for Google Play codes. You can even exchange them for Amazon gift cards if you’d like.

Free Google Play redeem codes are a scam, as are most other free redeem code offers you may find so stay away from them. Only use legitimate sites to earn rewards, it will help prevent you from being hacked.

What is the Debt Service Coverage Ratio and What Does It Mean For You

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Maybe you’ve heard the term “debt service coverage ratio”, but do you know what it means? If not, you really should because there’s a chance it’s affecting your finances.

Basically, it is your cash flow available to pay your current debt obligations. The ratio is your cash flow availability compared to your debt obligations that are due within one year including any interest, principal, and lease payments.

In most cases, the term “debt service coverage ratio” applies to businesses and their ability to pay their lenders and cover their expenses. But it can be applied to individuals as well because it can have an impact on many areas of your finances. The higher your ratio (meaning high cash flow and low debt), the easier it will be for you to obtain a loan. And if your ratio is high, you can obtain that loan at a lower interest rate. A high ratio can also have a positive impact on your credit score. An acceptable ratio may even be a term for acquiring a loan, both for personal reasons and for business purposes. And if it is, your loan can be in default if your ratio lowers beyond the required limit. Which means your loan could be called in full.

Banks use your debt service coverage ratio to determine your qualifications for a loan so if you’re in the market for a personal loan, auto loan, or home loan, you’ll want to know your ratio. And if you’re trying to obtain a loan for business purposes, it’s almost guaranteed that your ratio will play into the outcome of your loan application.

Here’s how your ratio is calculated:

Debt Service Coverage Ratio = Net Operating Income (or cash flow)/Debt Service

Breaking it down, it looks like this:

Your Net Operating Income = Net Income + Amortization and Depreciation + Interest Expense + Non-Cash Items

Debt Service = Principal Repayment + Interest Payments + Lease Payments

To calculate your ratio, you need to know your entire cash flow. This should include your salary, commissions, investment income, rental property income, and any other income you may receive. Add all of this up for a one year period then deduct your expenses. Be sure to include every expense that you will need to justify like loans, rent/mortgage, utilities, and any other expenses.

If you’re looking for your ratio in regards to your business, you will need to look at your total income and deduct all operating expenses to acquire your ratio.

To be in good standing, your ratio should be above 1. To put that in perspective, a ratio of .8 means you only have enough cash flow to cover 80% of your debt. For the purposes of a new loan application, that’s not suitable to a lender. The higher your ratio, anything over 1, puts you in good standing for a new loan. Anything above 1 means you are able to cover 100% of your debt with something left over. Ideally, lenders will look for a ratio of 1.2 or higher in order to have confidence that you can cover your loan.

Knowing your debt service coverage ratio in advance of applying for new credit can put you in better standing for acquiring a lower interest rate and better loan terms.

Can You Get Free Money From PayPal?

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Free money is always a plus, right? Every little bit helps. But did you know that you can get free money deposited right to your PayPal account from Swagbucks? And all it takes is a little time spent answering surveys, watching videos or shopping to earn points.

Here’s how it works:

  • Visit Swagbucks and set up your account. You don’t need a credit card, but your first and last name does need to be an exact match to your PayPal account and you need to use the same email for both accounts.
  • Swagbucks will send you a confirmation email. Just click the link to verify your account and you’re ready to start earning.
  • Make sure that you have also verified your PayPal account or the transfer won’t be accepted.

Earning points is easy and your points can be redeemed for gift cards or redeemed as cash and deposited in your PayPal account. For instance, 25,000 Swagbucks points is redeemable for $250 in cash that will be sent to your PayPal account to use for anything you want including paying bills, grocery shopping, and putting gas in your car.

To start earning, you can do a variety of surveys on Swagbucks in exchange for points. Hundreds of brands, companies, and organizations from around the world are looking for opinions of people just like you to help them decide what products to develop and how to market them. Paid surveys offer them reliable information for their research. They are also a great way for you to earn cash just for offering your opinion.

Swagbucks is the leading destination for online surveys. With over 20 million active members, they must be doing something right. You can find tens of thousands of survey opportunities daily, allowing you to earn points quickly, and in essence, earning free money to your PayPal account.

Not only are you earning free money, you are helping to shape the decisions of major companies and organizations about products you’d like to see in the marketplace and the best way you think they should market those products. Your opinion makes a difference.

The more surveys you do, the more points you earn and the more opportunity you have to shape decisions of major brands. There are a variety of survey types as well, including Advertising Effectiveness, Brand Recognition, Product Appeal, and even Services Offered.

You may not qualify for all the surveys, but don’t worry, you won’t lose out completely. Swagbucks will give you bonus points for surveys you don’t qualify for so you’re still accumulating points to be converted to cash.

You can take the surveys on your desktop, laptop, tablet, smartphone, Android app, or iPhone app so you can use your downtime effectively no matter where you are.

The amount of points you earn from a survey will vary, most offer between 40 and 200 points, but some pay much higher. You can expect the time it takes to complete a survey to be in relation to the amount of points you earn. A 40 point survey may only take a few minutes while a 500 point survey may take 30-45 minutes.

Depending on the amount of time you spend answering surveys and the points offered for each survey, you can start seeing cash in your PayPal account in as little as a few weeks. It’s a great way to earn free cash!

Harvesting Credit Card Reward Points

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Manufactured spending is on the rise, but what exactly is it? Well, it’s the buying cash equivalents with a rewards earning credit card. And the rewards earned are more than the fees incurred. You can use it to meet a minimum spend requirement or if you just want to earn frequent flyer points for travel.

If you’re just starting out, it’s best to use some of the easiest techniques, but you can get into more difficult ones as you start to figure out how it works for you. Here are some of the best techniques for manufactured spending:

Amazon Payments

This is one of the easiest methods for manufactured spending. You can send money to friends and family, just like PayPal and you can fund your account with a credit card without incurring fees. There is one limitation though, you can only send a maximum of $1,000 in a month.

Here’s how to do it: Find somebody you trust to send your money back to you then fund your Amazon Payments account with up to $1,000. Send the money to your trusted friend and have them withdraw it from their Amazon Payments account and send it back to you.

You can also use it like PayPal and send money to a friend you owe for dinner or to pay someone for work done.

Bluebird + Vanilla or Visa Gift Cards

This one is a little more complicated, but still manageable. Bluebird is a reloadable online checking account from American Express so it’s a trusted brand. You can use different prepaid cards to load your account. With Bluebird you can load up to $5,000 per month.

The most popular method for loading is with Visa Gift Cards. There is a fee ($6.95 for $200 card) but you can buy them from stores where you receive higher than usual rewards like grocery stores and office supply stores; earning as much as 5% cash back or points.

Bank Accounts

Another option is to fund your bank account, but most banks only allow you to use your credit card to fund the initial, opening deposit and the maximum allowance is anywhere from $100 to $1,000. Of course, you also incur monthly bank account fees unless you have a minimum balance or receive direct deposit. But some banks offer bonuses and rewards of their own so you can earn extra by opening these accounts.

Another thing to look for with manufactured spending is opportunities to increase your bonuses by earning reward points for more than one program at a time. These programs allow you to earn points with their programs and with your rewards credit card at the same time.

Manufactured spending is a great way to quickly earn points with your credit card rewards. By combining some of these methods and adding funds to reloadable cards or accounts that earn points, you can increase your points balance faster and easier. It just takes a little practice so start slow with just one account until you figure out how it works best for you.

How to Get Free Financial Advice

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If you’re just getting started with financial planning and investing, you may not have the funds to hire a professional to help you. But there are ways you can get great financial advice for free.

There is one important factor to keep in mind with free advice though, it’s often times not based on your personal information. The free advice you get is based on generals so you will need to figure out what works best for you. But that doesn’t make the advice any less valuable for your purposes. It’s always good to learn something new; you never know where it might lead.

If you’re looking for free advice and you’re willing to weed out what you need based on the general information you receive, here are a few good places to start:

Meet with a Financial Planner

Some financial planners offer a free consultation if they think you’re in the market for hiring someone. Keep in mind, their advice will be very general because they’ll want you to hire them to do the work.

Many also offer complimentary group classes. They do this as an introductory to their services to try and get at least a few new clients out of each class. Again, the information is general, but there is usually some very good advice offered. Check with a few financial planning firms in your area to see if they have any upcoming classes.

Lastly, the CFP hosts a “financial planning day” where anyone can come and meet with a financial planner for free. The event usually takes place in the fall. Go to Financial Planning Days to find out when and where one will be offered near you.

Go Online

Visit your retirement plan or brokerage website for financial information. Many, including TD Ameritrade, offer online courses for their customers to learn important financial planning information. If you’re investing through a brokerage firm, take a look at the account management tools they offer on their site. Another great site for free financial planning courses is Udemy.

Sign Up with a Robo-Advisor

Many online financial planning tools offer a variety of financial advice. In many cases, that advise is free. (Sometimes there is a fee so be sure to read the fine print.) You can receive guidance on managing your portfolio, the best investments to reach your goals, and retirement planning.

Read Reputable Financial Sources

Even if you decide to hire a financial advisor, it’s always a good idea to do your own research and keep up with the financial world. You should never put all your faith in someone else to manage your finances. There are a few good sites for keeping up with financial news:

Local Financial Services Programs

Community-based programs are nationwide and offer free financial advice. Search your local area for organizations that offer free programs and check your local community centers and libraries. There are other resources specifically for survivors of domestic violence, active military and veterans, and people who are considered low-income.

If you’re dealing with a significant amount of debt, you may want to consider credit counseling. Visit NFCC to learn about their free counseling programs.

Not being able to afford a financial advisor is no excuse for not getting your finances in order. With so many free resources available, you can at least get started reducing your debt and increasing your income so that you can move towards a better financial future.

Different Ways Financial Advisors Charge

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When looking for a financial advisor, there are two important things to keep in mind. What kind of certification do they need and how do they charge. Knowing this information will help you to make a better-informed decision.

Here are a few certifications you may want to consider when hiring a financial advisor:

Certified Financial Planner (CFP) – they have demonstrated competency in all areas of financial planning and have studied more than 100 topics including stocks, bonds, insurance, taxes, and retirement planning. In addition to passing a certification exam, CFP’s must also adhere to the CFP Board’s code of ethics.

Chartered Financial Analyst (CFA) – this certification requires three years of qualifying work experience and passing three difficult exams to demonstrate their competency. They have an extensive knowledge of accounting, economics, and portfolio management.

Certified Fund Specialist (CFS) – this certification deals mostly with an expertise in mutual funds. They advise clients on fund investments and can buy and sell funds for clients.

While there are several other certifications available, these are the ones you’ll most frequently see and need to know as you’re looking for a financial advisor.

When talking to them though, it’s important to understand how they charge and what that may mean for you. There are several ways financial advisors charge, these are the most common:

Fee

Meeting with a fee-based financial advisor is probably best if you just want advice then want to implicate it on your own. Ask all the questions you want and get the information you seek during one or two meetings. The fee is charged on an hourly basis so the advisor makes the same amount of money no matter what you do with the information.

Project Fee

If there’s only one project you want help with, like setting up your retirement plan, this flat fee service charges you the same amount whether the project takes one hour or three. Not all advisors offer this option so be sure to ask.

Commission

This is probably the most common way for financial advisors to charge. They receive a commission for financial products they sell you like mutual funds or investment accounts. The pitfall to this way of charging is that you may not be receiving the best advice for you; the financial advisor may be advising you in the direction of a fund or investment that will pay him or her a higher commission.

Combination of Fee and Commission

Depending on the services you’re looking for, you may be charged a fee for some services and commission for others, although this is not as common.

Retainer

If you have investments, assets, and stocks that you need to have managed for you, you may find that you want ongoing advice. A retainer is a flat fee paid monthly, quarterly, or annually and it doesn’t change based on the advice or return that you receive. Be sure to ask for a written description of the specific services you will receive in exchange for your retainer fee.

Fees and services vary based on your needs and the certification of the financial advisor you’re working with. Be sure to do your homework so you know which advisor and fee base works best for your needs.

IRS Announces 2018 Pension Plan Limitations (And Other IRS Changes You NEED to Know!)

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IRS has a few new changes that you need to know about for retirement plan savings contributions. For the most part, your contribution levels have slightly increased, allowing you to contribute more to these plans. But you do want to be aware of your limits because making a higher contribution can cost you at tax time. These limits are for 2018 and don’t have any effect on your 2017 contributions.

Here are the highlights of these changes for 2018:

* Contribution limits for employees participating in 401(k) plans and individuals participating in the government’s Thrift Savings Plan have been increased from $18,000 to $18,500. While this isn’t a huge increase, it means a little more money to your retirement savings plan, which is always a plus.

* You are able to deduct traditional IRA contributions if you meet certain conditions. And if you have a retirement plan at work, the deduction may be reduced or phased out until it is eliminated, depending on your filing status and income. These are the new elimination and phase out ranges:

  • If you’re single, your phase out range has been increased and ranges from $63K to $73K.
  • If you’re married, your phase out range has also been increased and ranges from $101K to $121K
  • If you do not have a workplace retirement plan but you’re married, the deduction is phased out if your combined income is between $189K and $199K.
  • And if you’re married but filing separately and you have a workplace retirement plan, the phase out range isn’t affected by the annual cost-of-living adjustment and remains the same, $0 to $10K.

* The phase out range for contributions to a Roth IRA is $120K to $135K for singles or heads of household. And for married couples filing jointly it’s now $189K to $199K. If you’re married but filing separately, you are not subject to cost-of-living increases here either. All of these ranges are either increased or remained the same.

* As for Retirement Savings Contribution Credits (also known as Saver’s Credit), the income limit for low/moderate income level workers is $63K for married couples who are filing jointly. Heads of household filers income limit is now $47,250 and singles income limit is $31,500. These are all an increase.

There are also a few limitations that have remained unchanged:

* Annual contributions to an IRA stayed the same at $5,500. If you’re over 50, the additional catch-up contribution is not subject to an annual cost-of-living increase and remains at $1K.

* For 401(k), Thrift Savings Plan, and other work-related savings plans, the catch-up contribution for employees over 50 also remains the same at $6K.

If you’re not sure how these changes affect you, talk to a tax specialist to ensure you won’t be penalized later. These changes now allow you to make higher contributions to your retirement plan savings without paying penalties. The increase in contribution levels is due to an annual cost-of-living increase so you should see similar contribution level increases each year. Take advantage of these new limitations to make the most of your retirement savings.

The Two Sides of the Money Equation

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When your budget is tight and you really need a little more wiggle room, cutting expenses is certainly one way to do that. Learning to be frugal with your meal planning and looking for ways to save money on your monthly expenses and insurance can go a long way to freeing up some room in your budget for more important things.

Take a good hard look at your budget? Do you actually need every line item, or are there some things that you can easily cut back on? For instance, do you need every single movie and sports channel your cable company offers? If you only watch a few channels, you may be able to make a significant cut to your budget by cancelling your cable service and signing up for a streaming service instead.

Do you need to be making a car payment or could you trade your car in for an older, used car that you can pay for in cash? Doing so would probably cut your car insurance as well.

It’s a good idea to give your budget a good review every six months or so and be sure that you still need everything you’ve included. Go through each line item to see where you can make some shifts. Cutting $20 from your cell phone or cable bill is $20 you can put towards savings. Reducing your grocery expenses by meal planning can give you even more money for your growing savings account.

But what if all your cut backs and frugal living aren’t quite enough to get you to where you want to be financially? You’ve cut everything you can, you’re no longer splurging on anything unnecessary, and you still don’t have enough to put aside in savings or investing.

It may be time to look at raising your income. There are a few options for increasing your income that you should consider.

For starters, are you overdue for a promotion and/or raise at work? What if you agreed to take on additional responsibilities; could you make more money?

Maybe your boss is telling you that you need to continue your education or get a certification to make more money. If so, talk to your employer about their willingness to contribute to those costs. Many employers see the benefit of having you continue your education because it often means you can bring more money into the company. Therefore, they’re usually willing to help out with the costs. Look at the continuing education benefits your company offers.

If you’ve determined that you can’t make any more money at your current job and/or you’re not able to find a better paying position, it’s time to look at other ways to increase your income like taking on a part-time job or starting your own part-time business.

If you decide to look for a part-time job, find one that you’ll enjoy being at because you’ll be spending a lot of your formerly free time there. You may also want to look at part-time home-based jobs like working a customer service call center or offering transcription services. There are a variety of companies looking to hire freelancers part-time and many pay very well.

Lastly, consider going out on your own with something you love. Get paid for your photography talents, write how-to books and self-publish on Amazon, start a blog and build your following so you can monetize it, work with a home-based party company to sell products through home parties, schedule social media posts for companies. There are so many options, you just need to find the right one for you.

When you need more money, you need to look at both sides of the equation, saving money and making money, in order to achieve the most success.

Things in Your Finances That are Worth Automating

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Automating your finances can make your life so much easier. You don’t have to worry about missed payments, late fees, disconnect notices, etc. The more you automate, the easier it will be to stay on budget because you will know that payments are already made and you won’t get hit with fees that can knock your budget off course.

Some payments may not be able to be automated due to varying costs, but many can be. Here are a few you should set up for automatic bill pay either through your bank account or through the individual accounts:

Yourself – First and foremost, make sure you’re paying yourself first. This will ensure that you have money in your emergency fund and retirement accounts. Set up an automatic transfer from your checking to your savings and/or investment accounts with every paycheck. Whether it’s $10 or $1000 doesn’t matter. It only matters that you are setting something aside for your future needs.

Credit Cards – Set up an automatic payment each month for the minimum payment due for each card. If you want to pay more than the minimum, you can always make an additional payment. But setting up your minimum payment by automatic billing ensures that you won’t be charged additional late fees and interest if you miss your payment due date by just one day.

Cable/Internet Bill – Your cable and/or internet service should be the same amount each month so setting up an automatic payment should be easy. Check your current bill for the due date and the amount, then just set your payment up to be sent the day before it’s due.

Cellphone – Just like your cable/internet bill, your cellphone should be the same amount monthly unless you go over your data usage or have roaming charges. Set up your bill pay for your regular monthly payment. You can always pay additional charges separately if there are any.

Electric – While your electric bill probably varies monthly, most electric companies allow you to get on a budget pay plan. This plan reviews your usage from the previous 12-month period than determines an average cost per month based on your annual usage. Using this plan allows you to pay the same amount every month regardless of how much or how little electricity you use. And getting on this plan allows you to automate your monthly payment

Car Payment – If you have a monthly car payment, like most of your other bills, it’s the same amount every month. Set it up to pay automatically so you don’t get hit with hefty late fees.

Insurance – Whether it’s home, auto, life, or health insurance, they all come with a monthly premium that remains the same each month. Set these up for automatic payment to avoid late fees, or worse, cancellation. For most types of insurance, if you miss a payment, they will cancel you and you will have trouble getting a new policy.

While you may not be able to automate your grocery shopping, many of your other monthly budget items can be set up for automatic payment and relieve you of the stress of making sure everything is paid in a timely manner.

 

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