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How to Fund a Startup When You Don’t Have Any of Your Own Money

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Happy employees make better employeesWhen you have a great business idea that you are eager to move forward with, there will be many things to consider, such as getting estimates for various expenses, preparing initial operating budgets and making marketing plans to launch your business. However, before you can get your business up and running, you will need to money to fund your business.

There are few options available to get your business idea off the ground.

Friends and Family

Many entrepreneurs find they have to self-fund their business at the start. This can be done through savings, leveraging personal assets or borrowing from friends and family. This proves to other potential investors that the business is viable, that you have some experience in running the business, but also that you have faith in the business and have put your money where your mouth is! Although borrowing from friends and family may seem like an easy option at first, you are risking your personal relationships if the business does not work out or the financial agreement is unclear. Approach this form of funding like you would any other form: produce a business plan, explain exactly what the money will be used for, what the investor can expect to get in return and when they can expect it. As well as putting investors at ease, it will also clarify your own goals and objectives.

After the initial self-funding, many business owners will seek to develop and grow their business by seeking funding from outside sources.

Seek Investors

One popular option is to seek investors for your business. Investors may be silent partners who simply contribute cash in return for a percentage of profits, or they may be active partners who play a key role in the daily activities and business decisions. Some silent investors may remain in a partnership with you until they have received a certain return on their investment, or there may be some other exit strategy in place. You may know individuals who you can approach about partnering or investing with you, or if not, you can look online for information about potential investors who are looking for opportunities.

Apply For Financing

Another option is to apply for a bank loan. There is a wide range available, and you can use an online calculator tool to determine which options are the most affordable for your budget. The right loan program will have attractive repayment terms and a great interest rate, but it also will provide you with all of the capital that you need to fund your operation until it begins to turn a profit. This could take several months or longer, so you may consider creating a budget that details expenses between and the projected breakeven point or beyond.

Each funding path will have its own advantages and drawbacks, so ensure the one you choose fits in with your business needs and allows you to focus on the most important task – running a successful business.

How to Budget for Your Financial Personality

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Piggy bank and stethiscopeFor our physical health we eat our fruits and veggies and we make time for the gym. Like our physical health, our financial well-being needs regular TLC too. We use savings apps and try hacks like freezing credit cards or paying with cash, but practicing financial health starts with identifying your financial personality.

Be True to Yourself

Spending less and saving more comes down to living within your means. If you’re accustomed to a certain way of life, the concept of being true to yourself and your bank account can be hard to accept, particularly in terms of living expenses.

As an example, if you’re looking to move from a small town in Nebraska to Washington, D.C., your cost of living will increase substantially. Research the average cost of apartments in D.C. and set a budget before making any decisions. As you look through listings, determine if location or the offered amenities are most important to you. Use CNN’s Cost of Living calculator to determine the difference in cost of housing, groceries, utilities and transportation. If living in a specific location is the priority, you may need to make adjustments to other areas of your budget.

Be Honest with Loved Ones

Relationship and social obligations can take a toll on our wallets. Weddings, in particular, are steep expenses that can cost each guest nearly $1,000 (unless you’re in the wedding party, in which case your roles require an additional set of expenses). Airfare, car rental, hotel accommodations, a wedding gift, dining out and attire add up quickly.

If you don’t have hundreds of dollars at your disposal, put yourself (and your financial health) first. Make it a personal rule to not attend out-of-town weddings and be honest with the bride and groom for why you RSVP’d no. A 33-year-old Washingtonian who practices this policy told the Washington Post that none of her friendships have been ruined. Kindly send a card and gift, but don’t create more debt for yourself to avoid an awkward conversation.

Don’t Try to Keep Up with the Joneses

Sometimes the solution to better financial health may seem like it’s to earn more money. There’s always room for more, especially if you compare yourself to family, friends, co-workers, even acquaintances and strangers on social media. Trying to “keep up with the Joneses” may only leave you burnt out and penniless.

Remember, their wealth is a perception through your eyes, and you don’t see the dark realities that may exist, like stacks of bills and growing debt. The “My Money” blog by U.S. News reminds us that financial security impacts happiness, not necessarily “stuff.” Someone will always have more and better than you. It’s your choice to relieve yourself of the pressure and set personal financial expectations without any external influences.

Determine what is most important to you. Maybe going out with friends is what makes your week bearable. If it’s important to you to have the newest iPhone on the day it comes out, build this purchase into your budget. Stay true to your wants and needs and prioritize your money accordingly.

This may mean you need to cut back on other things which are less important to you. If you’re not fashion-forward and don’t care to be, invest in a few basics and call it a day. If tech isn’t your thing, don’t spluge on that flat-screen TV, even if it is a good deal. Without the pressure to keep up with the Joneses, you can save your money for what you really want to spend it on.

Make Mini Commitments

Setting goals like reaching $10,000 in your savings or paying off your credit card by a certain date can actually set you up for failure. In life, unexpected expenses — a car repair or a health problem — are inevitable. Instead of setting lofty goals, make mini commitments toward better savings.

If you get overwhelmed easily with all things financial, mini goals are a good fit for you. Determine a small amount that you can have automatically transferred from each paycheck deposit. If you don’t see it in your account, you can’t spend it.

Before you make a large purchase, take time to weigh the pros and cons. Create a waiting period for yourself for non-essential purchases (two weeks or a month). This way you’ll keep yourself from impulse buying, and when you do purchase, you’ll have done the research and be confident in your decision.

Approach your savings plan like a set of small building blocks. Focus on one block at a time. Maybe you put money into an emergency fund for a few months, then switch the priority to home improvement or a vacation. Set mini goals for yourself and reward yourself when you reach them.

Helpful Tips For New Landlords

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The stresses that come along with becoming a landlord are plenty, but the rewards can be great. From financial investments to regulations, bad tenants to contract woes, there are a variety of things to worry about. Luckily, with enough foresight, you can avoid many of these stresses and make your time as a landlord the best experience it can be. I’ve compiled a list of helpful tips for any new landlord looking to navigate this challenging venture.

  1. Understand Your Responsibilities

Many romanticize the position of landlord as some sort of benevolent overseer that receives a hefty rent check every month, but this is not the case. It’s not a hobby, and in some cases it can feel like a full-time job. If you don’t use a property management company, you and you alone are in charge of seeing that any pressing needs are met. That means if the heater breaks in the dead of winter, you’ll have to hire someone or get over there yourself and fix it as quickly as possible. If you’re not prepared to be at the disposal of your tenants in a moment’s notice, you may want to consider hiring outside help in your endeavor.

  1. Financial Issues and Returns

You need to know that renting doesn’t turn an immediate profit; in fact, it’s more of an investment for the first few months and potentially even years. With perseverance, you will see a return on your investment, but you’ll definitely be funneling money into your properties in the meantime. Anything that breaks you’ll have to pay to have replaced immediately. You’ll also have to worry about insurance and utility costs raising as time goes on. If these requirements sound like they’ll be too much of a financial strain, you may need to reconsider your desire to become a landlord.

  1. A Knowledgeable Landlord is a Profitable Landlord

Understand the legal ramifications of what you’re getting into, and do the research to make sure you never find yourself in hot water. Study up on the regulations on local, state, and federal levels, and be prepared for any legal consequences that you may be vulnerable to. Every state has different specifications, and city and county rules can make the process even more stringent.

  1. The Rental Agreement

Crafting an airtight rental agreement is key to being a lucrative landlord. The right wording and insertions can make or break your relationship with your tenant, and legality issues should be at the top of your mind when creating your contract. Protect your assets and draft a contract with the help of legal counsel. You must decide whether you will work with a lease agreement or a rental agreement. Leases will bind you to a tenant for a certain amount of time, and a rental agreement is run on a monthly basis. Once you’ve settled on the type of agreement, make sure you include the standard rental provisions, including lease duration, your rent expectations, amenities, deposit and damages information, and your pet policies. Find some example rental or lease agreements for guidance, and make alterations specific to your property and requirements.

  1. The Importance of Screening

One of the biggest pitfalls of becoming a landlord is running the risk of renting to terrible tenants that can make your life miserable. Lower your chances of renting to a landlord’s nightmare by using a service like that offered at www.mysmartmove.com. This service will help you check their credit history, will let you know if they have any sort of criminal record you should be aware of, and indicate any previous evictions. Putting in the small investment and time at the offset can save you bundles of stress in the long run.

  1. The Biggest Question

One of the biggest questions you should be contemplating is whether or not you should hire a property manager. When it comes to tools for landlords, property management is at the top of the list. They can serve as one of the most valuable resources when renting out your space. They will serve as the intermediary between you and the tenant, handling all face to face interactions, including eviction issues. You will have to pay a pretty penny for their services—usually 10 percent of your rental income, or more—but the benefits can truly outweigh the costs.

If you’ve made the commitment to become a landlord, all of these facets should be understood and prepared for. Take your time to prepare your property, find the right tenant, and hire the necessary professionals before you begin this undertaking.

Durable Tech: the Smart Buyers’ Guide to Getting Your Money’s Worth

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Technology is improving and updating so rapidly that it’s hard even for the educated consumer to rationalize buying new tech at all. Consider the formula of Moore’s Law, originally created in 1965 by Gordon Moore, Intel co-founder, which asserts that the rate of improvement in the capacity of computer chips increases exponentially, roughly doubling every 18 months. Granted, based on the specific kind of technology, the formula varies, but it’s still pretty depressing to realize that technology becomes outdated almost as quickly as automobiles.

You might think that going with the cheapest model of PC or laptop makes the most sense, since a newer, better, shinier model will be released in a matter of months, but just like with automobiles, your old model does not become obsolete when the new model hits the market. That’s why there are so many updates that continue to flash across your screen. Your model is still completely functional. Newer isn’t always better and you may find yourself missing your old unit after spending money on the latest and greatest.

So then, the key to getting the most out of your tech may not be to buy the newest, but to buy the most durable. Here is a case for investing in durable technology and three compelling reasons that choosing a more durable piece of technology is the wisest course of action when buying a laptop or PC.

If You Have Children: If you have children, then this reason needs no explanation. But just to be thorough, imagine that you allow a five-year-old to play Minecraft on your PC. Imagine that this child has acquired countless, priceless items during a playing session only to be stabbed to death by a Zombie Pigman. Said child has now lost all of his stuff. Said child then has a meltdown, a tantrum of epic proportions. What inanimate object does he take out his frustration on? Why, your laptop, of course. Before you decide on a laptop, ask: “Can this computer withstand the repercussions of a death by Zombie Pigman?”

If You Tech While on the Go: If you are never without your portable tech and often commute with it, you increase the likelihood of dropping your beloved computer. So if you are looking for an ultra durable, incredibly reliable laptop, Lenovo manufactures a great line of ThinkPad laptops built to last. Many of these ThinkPads have reinforced designs and are manufactured with the capability to withstand the stress of on-the-go use and the rigors of repeated use by multiple users. Lenovo is also ranked number one on the on Rescueco’s Reliability Report.

If You are Accident-Prone: Not everyone has the grace of Baryshnikov or the agility of a trained ninja. In fact, many of us can’t make it through the morning without sloshing coffee on ourselves. Where tech is concerned, this is a fatal character flaw. An estimated 60 percent of laptop repairs are needed due to liquid spills, so if you are unable to shield yourself from such accidents, you better choose a laptop with the durability and capability of protecting itself. No laptop is waterproof, but there are covers and keyboard protection accessories to help.

For many users, the smart decision is to shell out a few extra dollars for durability when looking to buy a new laptop or PC. The durability of a machine can help counter Moore’s Law, offer protection from your busy lifestyle, and withstand the consequences of Minecraft-madness by simply being designed to endure such traumas.

Debit or Credit: What Works For You?

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Credit and Debit Cards

There are pros and cons of both credit and debit cards. Before you load your wallet with a series of credit cards, or request a debit card for each of your bank accounts, you should educate yourself on the pros and cons of each. Here is a list of strengths and weaknesses of debit and credit cards.

Debit Cards

Pros: Debit cards are a convenient way to carry the equivalent of cash. Debit cards link directly with your checking or savings account and each time you use it funds are deducted directly from the account that card is linked with. Whenever you make a purchase with your debit card you must enter a four-digit PIN, as a security procedure. The limit of your debit card is the same amount of money you have in the account. Debit cards are easily acquired, as banks take no risks when they provide these cards. You can only spend what you already have so there are no monthly payments.

Cons: The cons of debit cards are few, but severe. If you spend more than what is directly in the account linked with the card you’re charged an overdraft fee. These fees can be anywhere between $30 to $50 for each transaction executed while there are no funds in your account. You must repay both the amount spent plus the overage fees. It’s a pricey consequence, especially if you’re unaware you’ve overdrafted and make more transactions with your card.

Another danger of debit cards are the lack of security which surround them. Since your card is linked with your bank account, if someone steals your card they have instant access. The PIN you set up should provide some protection, though many debit cards can be run as credit, bypassing the use of a PIN altogether. Investigating this kind of fraud can take a lot of time and the longer you put off reporting it, the more liability you’ll face. Look into your bank’s fraud protection policy so you know the risks of debit card fraud.

Credit Cards

Pros: Credit cards provide you a line of credit, or loan, which you will be expected to pay in full within 30 days. You can put off pricey items until your next paycheck comes in. Build your credit score every time you make a payment on time. Your credit score directly influences the loans banks will offer you. This includes home and car loans.

Credit cards aren’t your actual funds. If anyone steals your credit card, cancel it as quickly as possible. If the person has made purchases with it, you can claim fraud and fill out a claim. While this is a hassle, it’s also much easier to prove than with a debit card. Also, you may have noticed a small microchip on your newest credit card. This is an EMV. An EMV is a payment process like the magnetic strip on the back of the card. However, an EMV communicates a series of complex transactions which include cryptographic processes. This makes credit cards more secure, in many ways, than debit cards. Credit monitoring and identity theft prevention services are still helpful in case you’re account is compromised.

Cons: While credit cards can help you build up your credit score, they can also destroy it. Some Americans are financially crippled by credit card debt. Many credit cards have variable interest rates which can be increased and make it difficult for you to make minimum payments. If your credit score is poor it’s very difficult to take out a loan for a house or car, even after you’ve paid off your debt.

Get This, Not That: A Guide to Proper Father’s Day Gifting

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While your dad might be one of the most important people in your life, he is undoubtedly also one of the hardest to buy for. When it comes to Father’s Day, the challenge of gifting your dad the quintessential gift can be a struggle. How do you get your dad something that conveys your appreciation, gratitude and love? More importantly, how do you get him something he will actually appreciate and hopefully not exchange? Here are some perfect gifts to make any dad feel like #1 on Father’s Day.

Techie Dad

If your first memories with your dad involve something like disassembling a radio just to see how it was put together, then your dad is probably techie. As with most tech fanatics, buying them a gift that will impress them is tough. They already own the computer, the SLR and every edition of PhotoShop. Due to their extreme devotion, they also own the brand new iPad, the MacBook Air and all the accoutrements. But, do they own the new Apple iWatch? While yes, this may be a little spendy (prices start at $399), you might consider amending the spend considering he put up with your teenage years. Just think about how incredible it will be to give your tech dad the one gift he wants, but won’t buy for himself. Yes, you’ll win best child of the year.

father and daughter in the park

father and daughter in the park

Grill Master

If you dad is less of a tech fan and more a fan of being outdoors with his grill, impress him with the Napa Jack’s Barbeque Blast Gourmet Gift Basket from FTD. This awesome collection includes sauces, rubs and BBQ-themed snacks and is certain to dazzle anyone who enjoys spending their time perfecting their grilling technique. With its grill case and reasonable price, this is a gift that makes an impact without hurting your wallet.

Golf Dad

Golf dads might seem like they’re easy to buy for: a box of golf balls, a new polo, a round at his favorite course. But step out of the box this year and get dad something a bit more creative. Pro or not, everyone loses golf balls. And dad would probably appreciate some help finding them. These golf ball locating glasses from Hammacher Schlemmer are less than $40 and offer the tech advantage that will get your dad extra excited to hit the greens.

Beer Lover

What dad isn’t a fan of beer? While every dad has his own set of discerning tastes, it is easy to get a smile out of your beer-loving dad with a case of his favorite, or even a selection of new beers from around the world. This year, try the unexpected with a gift that keeps on giving. Gift your dad a subscription to a beer of the month club for only $40 a month, not only will dad get to try a new beer every month, he will feel the love all year long. If your dad is more the hands-on type, try a beer making kit (starting at $70) that will allow him to create his very own distinct brand of brew.

Work Relocation 101: Don’t Underestimate Moving Expenses

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Work Relocation 101 The Free Financial AdvisorMember corporations of Worldwide ERC Workforce Mobility Association  spend an average of $12.2 billion annually on relocation assistance,  according to a report recently published by the group. But what does that  figure mean for an employee’s own out-of-pocket expenses? Moving  Company Reviews compiled data to show moving from Chicago to Denver  with 12,000 pounds of personal property could cost around $8,000.  Meanwhile, a local move may run about $2,000.

For employees who need to be mobile and jump at a new job opportunity, thousands of dollars can be out of reach. Some companies offer relocation packages, but they don’t always cover the full expense. To figure out what your true budget for moving is, calculate some of these hidden expenses before you pack up your things.

Moving costs

Many companies will still offer reasonable location packages for employees and even take care of the details of organizing the move. Others will give you a sign-on bonus or flat fee to budget out everything yourself. When you need to find movers on your own, find out if they’re insured, if they offer flat fee services and if materials like moving boxes and packaging are included. Check out major moving companies like Mayflower and compare their prices.

If you’re not moving far for your job, an hourly fee may be the better option. Some companies like College Hunks Hauling Junk and Moving calculate a reasonable hourly rate depending on where you live, a flat-rate to cover the movers getting to and from your homes along with dollies, tools and protection for your personal property. Regardless of how much it costs to move, remember to budget out your move in advance and come back to your boss to negotiate their offer. They may not want to budge on relocation assistance, but may increase your annual salary or offer other perks.

Storage

Storage expenses are easy to forget in the frenzy of relocating and starting a new job. You may find your new property isn’t as expansive as your last and requires a monthly storage budget. Or you may discover your new house isn’t as move-in ready as you thought and you need to bunk in corporate housing for a few months. The cost of storage can send your budget into overdrive if you wind up with damaged property or need to invest in extra boxes, tape and packaging.

Mortgage or rent

Buying or renting a new home can add to the joy and excitement of relocating for a job. Unfortunately, there are many hidden costs to acquiring a new property from first and last month’s rent and closing costs. Getting a similar space in a quality neighborhood in your new city may may cost more than you realized. There are also less obvious fees attached to moving into a new home. For instance, many utility companies require a disconnect and reconnect fee.

Insurance

Your homeowners, health, life and even car insurance can vary drastically depending on what part of the country you live in. Don’t get caught busting your budget before factoring in these next steps. Search online for insurance quotes to determine the average cost of specific types of insurance by state. For example, car insurance in Georgia could cost less than 14 percent of the national average. Meanwhile, moving to Louisiana could cost more than 41 percent of the national average.

Replacing items

Make a budget for all of the items you plan to throw out and keep an ongoing tab on moving day. It’s tempting to think you’ll either throw out junk or keep everything tidy and organized for your move. But it’s unlikely you will move away with milk, bread, spices, half-empty cleaning products and old shower curtains in tow. Although these small items may not cost much individually, it could add up fast and put a strain on your budget.

How To Find Money Management Success – Create a Dashboard

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I just answered a question on Facebook about a recent podcast interview featuring some bill pay app creators. My interviewees had discussed just how difficult it can be to quickly and efficiently pay bills. “I don’t understand the problem these guys are presenting,” the poster said (I’m paraphrasing….). “I just go to my bank and use their bill pay app every other week. No problem.”

I wish it were that easy for everyone.

Let’s face it. Most of us have one big problem with our financial profile: we’re disorganized. After 16 years in the financial trenches, I’ve seen it far too often to think it’s anything other than a widespread problem. Most of us pay bills on sixteen different sites and have two old 401k plans with former employers, our current job’s plan AND different 529 plans for each child. It’s impossible to manage everything. I’d ask people with all of these different investments and bill paying problems how they juggle everything, and the answer I most often heard was, “I manage it very poorly.”

Yet moving investments to a single provider is a scary proposition. We’ve all heard of Bernie Madoff and don’t want to trust one person with our money. We also have all heard of diversification. Having different plans ensures that I won’t have all of my eggs in one basket.
So we have two problems: safety and diversification….and the fact that by having your assets spread out it’s impossible to track. How do we reconcile these two ideas?

It’s easier than you think.

dashboard

Could you drive a car with three different dashboards?

Think About Driving A Car

When you drive a car, do you have one set of gauges or several? Of course, you only have one set of gauges. It’d be impossible to drive if you had five different dashboards. Imagine! Yet, when you think about your car, it’s a diversified collection of inputs, all working independently. However, when you put it all together, these gauges make your car easier to drive. You get the right data at the appropriate time.
That’s what we’re looking for with money management success….we don’t want to get rid of diversification. Our goal is to create a single dashboard.

In Your Personal Life

There are three areas you should look at with your money:

– Budget and bill tracking. Budgets fail when you’re making decisions about spending without knowing where your money goes each month. Items like a mortgage or rent payment and grocery bills are easy to track, but how much do you spend each week on entertainment? If you don’t track your expenses, it’s difficult to project the future or find any money management success. The gauge you’re looking for to help with daily money management is an app like Mint or Yodlee, that will automatically track your expenses so when you’re planning next week’s expenses you know how you’ve spent money in the past.

For budgets, Mint will allow you to set up alerts so that you’re notified when going over budget categories. YNAB (paid subscription) will help you think differently about your budget and keeping every area in check. People who like the old-fashioned envelope system may be attracted to MVelopes, an automatic way of instituting envelope budgets so you don’t have cash sitting around your home.

– Investments. Many apps will help you track your investment life. In particular, Mint can create a pie chart of your overall diversification so you can easily make investment decisions. Companies like Jemstep allow investors to input their goals and then recommends investment shifts. FeeX will look at all of your investments across platforms and tell you how much you’re paying in fees….an important gauge to see when investing. Zillow has a cool app that will track any real estate properties you own. NVestly is a social media site that not only helps you see results across your whole portfolio, but also makes investing social (you can see others investment pies…but not the amounts of money they have in any investment). While each of these is different, using a couple of these apps can help you make better investment decisions without worrying about having too much money at a single brokerage account.

That said, brokerage houses all offer a diversified collection of investments through different companies. Just because your portfolio is housed as Fidelity, for example, doesn’t mean you have to have all Fidelity investments. They work with a wide range of providers….and you only have to visit one brokerage site to see everything. One dashboard but still diversification!

– Big Picture. You should be able to see how your net worth is growing at a glance. Mint and Yodlee, among others, will give you that quick at-a-glance overall picture.

With Your Business or Side Gig

If you’re self employed, you’re even more crunched for time. You have your personal books AND business metrics to track. As a fan of the excellent management book The E-Myth Revisited: Why Most Small Businesses Don’t Work and What to Do About It, I know that the keys to business success are in systems and data. How much data you have and how quickly you can use that data to your advantage are important. That means three things:

– Platform. If your business or side-gig project isn’t build on a solid footing, you’re hurting. A web presence built by experts like 1and1.com means that you won’t have to worry about the “bones” of your business being difficult for customers or employees to navigate.

– Reporting. Using your bank’s application to track inflows and outflows (as well as setting up a Mint or Yodlee account for your business) can help you stay on top of business expenditures and inflows. Ask your accountant about great business tracking apps and software that they recommend.

Overall

Staying diversified doesn’t mean having money scattered all over. By focusing on systems, building a dashboard, and reliable business help, you’ll find that you’re able to more quickly make financial decisions that move the needle. That’s how you build long-term wealth!

Photo: Steve Jurvetson

5 Ways to Prevent Identity Theft from Happening to You

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Padlock and stack of credit cards on top of laptop

Padlock and stack of credit cards on top of laptop

It’s a sad but true reality: you are still not so safe when it comes to identity theft. In fact, identity theft tops the list of consumer complaints that are reported to the FTC every year.

But what can you do to protect yourself?

Well, actually, you can do a lot of things. They have an awesome list of what to do if it happens to you (don’t panic), but follow this list below to protect yourself from having your identity stolen in the first place:

1. Use a Password Manager

Do not use the same password for everything! Stop doing that! Instead, use a password manager (we like Dashlane), which lets you create a master password, then once you use that, the system will generate very strong passwords for every new account you create. It’s the same (to you) as using the same password everywhere, but it’s far more secure. Hey, at this point, I don’t even know the password to my Twitter account. And that’s the way I like it.

2. Watch Your Mailbox

This is tough, because you’re going to watch your mailbox to see if anything is missing. Are any of your bills going missing? Make sure you sign up for paperless billing for as many places as possible, but keep an eye out on your mailbox, especially if it’s close to the road. Identity thieves can take credit card preapprovals and sign up as you.

3. Closely Monitor Your Bank Activity

Every day, log in to your bank account, and make sure you (or the person who shares your bank account) can identify every charge. The credit card companies are likely to pick up incongruencies like ordering pizza from a city you’ve never been to, but they’re less likely to notice charges made in your own town. The best identity thieves will add small payments here and there, and see if you notice, before going on a shopping spree.

4. Consider A More Secure Way to Pay Online

Instead of your credit card, use something like paysafecard when shopping online. Paysafecard is a reloadable gift card that comes in various denominations, and when  you use it to pay online, you don’t have to enter any personal details. It’s like paying cash online, except without the purse snatchers.

5. Check Your Credit Every Year

Even when you slip in your diligence, you should set a calendar reminder to check your credit once a year. Or, better yet, sign up for a free CreditSesame account, which will check your credit, and monitor it monthly, for free.

Getting your identity stolen is a stressful and painful situation that is fun for absolutely nobody (except, of course, the person who stole your identity to eat pizza in Las Vegas at the Bellagio). An ounce of prevention is worth a pound of cure, right?

How To Choose the Best Investment For Your Goal

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Here’s the most-asked question I get asked at parties: where do you put your money to make it grow best?
It seems like an easy question but the answer is complicated, isn’t it?
Gurus who want to keep you in the dark use labels for investing like “hard” and “difficult”….and it can be. However, on the most basic level, it also can be the easiest thing in the world. You just need to start.
But why don’t people start? Most people I worked with were worried they be wasting their money on horrible investments. They were frozen and couldn’t choose the right path. I can see their point: the last thing anyone wants to do is invest all of their money and lose it quickly.
The good news? It is’t too late to start. At any age you can let your money start making you money. If you don’t want to go it alone, let’s talk about how to choose investments and finding good help.

Lots of Reasons To InvestInvesting

To us all, the idea of investing seems foreign at first. “I put my money in this thing and it makes money on it’s own? How does that work?” At first, ideas like “bonds”, “stocks”, “REITs” and others are like reading a new language.
That’s why you don’t start with the types of investments.
Start with your goals. Some people invest to make money quickly in the stock market while others are trying to make money slowly over time. Once you know your goal, then determine your risk. Different options offer different risks/rewards, so starting with what you want out of an investment drives the decision of where to invest. Investors with large sums might choose to invest in individual businesses while smaller investors can pool their money by buying into a mutual fund or exchange traded fund.

How Should You Invest Your Money….Personally?

Here’s the deal: I don’t know.
Since there are so many investment options and an unlimited number of goals you could be trying to achieve, you might decide to hire a consultant. Good helpers in your corner can help you decide what is best for what you want and the time-line you are looking at. When I was an advisor, I’d limit the choices to the ones that really mattered so my clients could focus on making money instead of worrying about just how many choices there were. Skilled advisors don’t just throw investments your way….they think of strategies that you may not have considered. Investing decisions might need to happen quickly, and if you don’t monitor your investments you could end up not only losing money but losing confidence in your strategy, which is even worse.
How do you find a good firm? I’d talk to friends first. Conduct interviews with advisors using some great tools like this checklist from FINRA. Good investment firms expect to be asked about their performance, how they work with clients and specifically what you’ll need from them. A good firm should feel like you’re hiring a partner more than buying a sales pitch.

What Else Can An Investment Company Provide?

I was always surprised when people would only want to deal with me for one or two investments. In fact, I became adamant that I knew about your whole portfolio, whether I was helping “babysit” your money or not. Every company is different, but many offer more than just investment consultation. Instead of finding someone to help you invest (something you can do on your own), look for someone to help you monitor your investment, give you advice along the way, and help you manage your tax liability, estate planning and budget issues. Not only should your advisor help you make the right decision based on your wants and needs, but they should make sure that you manage your portfolio well when markets turn sour (and they will).  Without a firm hand on the rudder, you might spend too much time looking at your investment and trying to determine if it is going well. Investment statements and prospectuses can also be ugly beasts as well and a good company can help decipher what’s important information and what’s garbage.
Ultimately, your investment decisions are up to you but a good pro can add to the bottom line. Find a company that can earn your trust and start letting your money make money.