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Yes, Someone Is Taking Your Money

June 27, 2016 by Average Joe Leave a Comment

When we’re kids, the world of grown up finance seems distant and confusing. Bank accounts and mortgages are words we didn’t understand. Our only experience with money was the cash we carried to school, or the allowance our parents may have doled out to us every month or so. We might have lost a quarter while playing, or given up our lunch money to the bully at recess. Whatever it was, grown up money habits seemed safe and secure. We figured that once we got to be adults ourselves, we could lock away our savings in an impenetrable vault and live without worry that someone else might take it.

The thing is, though, people do take your money. Today more than ever, regular people are vulnerable to the predations of individuals and corporations who make it their business to steal or skim as many dollars as they can get access to. It’s not too different from the schoolyard bully situation, though today’s ripoff artists like to hide behind suits and expensive desks, or even cloak themselves in digital anonymity. For people looking to make their money go farther and last longer, it’s imperative to stop these characters before they start. It’s almost always easier to prevent theft than it is to recover funds. Here are some things to keep in mind.

PPI and Other Unwanted Subscriptions. PPI, or Payment Protection Insurance, is a fine financial product that was unwittingly foisted on many borrowers in England over the past couple of decades. It’s not that the insurance was bad. Most people just didn’t want it, and didn’t know that somewhere buried in their dozens of loan application documents was a contract they were signing for the coverage. Today there are many class action lawsuits in motion, and the PPI deadline is quickly approaching. There are examples of many similar ripoffs, but sometimes we’re our own worst enemies. Ever subscribed to entertainment or monthly shipments from Amazon or other providers? It’s easy to forget about these services and just let our funds slip away monthly.
Encryption and Anonymity. If I were to ask you which online passwords were the most important, which would you identify. No, not Facebook (though it’s not totally insignificant). No, not your HBO NOW account. Email and Banking? Yes! Totally! It’s getting easier than ever for hackers to crack weak passwords. When it comes to email, this is the gateway to all of the rest of the information available about you online. Most of us have our other passwords mentioned somewhere in our emails, so hackers often find financial passwords and move on from there. If they can get through a bank password without cracking your email, all the easier. Try Google 2-Step Authentication for your most important web accounts, and request that your institutions support 2-Step Authentication if they do not already.

It’s harder than ever to get through life without someone picking your pockets. In the digital world, it’s just like the old playground bully situation. Keep your stuff safe by paying attention and preparing for the worst. You might be able to keep your money to yourself.

What the recent stock market turmoil could mean for your finances?

February 24, 2016 by Average Joe Leave a Comment

What Could Happen To Your Finances?

The financial markets are highly unpredictable at the moment. It seems that every day there is a news story about another crash just around the corner. It can be scary for those who have their money tied up in the stock markets. Even those who do not have a lot of money in the markets may be worried, as the impact of changing stock market conditions can have an effect on their financial health as well.

It is always a possibility that the markets could take a sudden downturn and cause real problems. There is little that any one investor can do to stop the forces of the market. The markets simply react how they are going to react, and the rest of us have to do our best to ride the waves.

Current issues facing the market include issues in China as well as concerns about the Federal Reserve and what it will do with interest rates. The Federal Reserve raised interest rates a quarter of a percent at the very end of 2015. It was the bare minimum that they could raise them, and the first time that they had raised rates in nearly a decade. However, this did not stop the markets from reacting in a big way.

Many fear that the Federal Reserve raising interest rates could lead to a lot of devastating outcomes for the economy. They worry about a global economic slowdown, and about inflation taking off. However, as Reuters reports, there is probably little to be too concerned about in the immediate future.

There is every chance that the interest rate issue will be a non-factor for most. However, those looking into getting a personal loan of some kind may want to take note of these changes and how they could play a role in their life. Consider looking at a personal loan calculator for more information about what the interest rates could mean for how much you can borrow and what amount you will have to pay back.

The best thing that anyone can do when faced with stock market volatility is to wait things out and continue to invest in the markets the same as before. Most of the time volatile moves in one direction or the other are temporary and something that can be easy to overreact to if given the opportunity. All people should try the best that they can to ignore such movements and carry on as planned into the future.

4 Life Hacks to Maintain Your Social Life While on a Budget

February 1, 2016 by Average Joe Leave a Comment

One of the first things to go in serious debt elimination or cash saving budgets is entertainment. When you’re used to an active social life, this can become the most challenging part of the whole process. After all, just because you’re on a spending diet (or fast) doesn’t mean your friends are. They are used to you doing things with them—things that, more often than not, cost money—and they aren’t going to stop inviting you to fancy dinners just because you’ve announced your allegiance to Dave Ramsey.

So how do you maintain you’re social life while strapped for cash? Balancing a budget while keeping your social life alive is not only possible, it can be fun. Your budgeting days offer the opportunity to switch up the social routine by adding creative activities to the mix. Here are four hacks to stay social without spending an arm and a leg.

For the Drinkers

Host a beer tasting party. Not as stuffy or expensive as a wine tasting party, and slightly classier than bring-your-own-PBR Scrabble night, a DIY beer tasting party will thrill your social group. Invite beer-loving friends to bring a six-pack of a unique brew and hold blind tastings throughout the night with homemade score cards. Vote on first, second and third place.

For the educational-minded, have participants explain the history and science behind their beers. If you’re lucky, one of your friends will bring something fancy like Guinness’s new Nitro IPA—a smooth, creamy pale ale made with Guinness yeast—and teach you all about nitrogenated beers.

For the Foodies

Throw a recipe swap party. Improve your foodie game, save some cash and hang out with your friends in a fresh way all at the same time. It’s the same idea as a potluck except you choose a theme for the dishes and everyone walks away with a bunch of new recipes. Themes could be anything from appetizers to culturally inspired dishes. Along with their dish, each friend brings a stack of recipe cards to hand out. As the penny-pinching host, your goal is to keep your dish as simple as possible by making something from ingredients you already have, or mostly have, in the house.

For the Fashionistas

Organize a clothing trade. If fashion’s your jam, organize a clothing swap with your chic friends. Send out an Evite a month in advance, being sure to note a precise amount of items each person should bring to ensure quality, fair selections. Depending on how insane your friends are about free clothes, you might need to implement some additional rules such as a lottery system detailing the order in which people “shop” for clothes. This event is a two-birds-one-stone situation: an innovative way to spend time with friends and a fresh new wardrobe—for free.

For Anyone, Anytime:

Propose anything nature-oriented. If you’re worried about telling the whole world that you’re broke—don’t. Simply become the friend who has taken a sudden interest in Mother Nature. Most outdoor activities such as hiking, camping and biking are free or extremely affordable. Even getting together with a friend to walk the dogs through the park or a nature reserve can set the stage for quality time at the best price.

How to Get a Vehicle Loan: Tips for the Credit-Challenged Car Buyer

December 30, 2015 by Average Joe 4 Comments

Buying a car is an exciting experience, one that everyone dreams about when they’re young. But when you’re an adult trying to buy a car with little to no credit, that experience is more like a nightmare. Although it may not seem like it is possible to get a good car loan with nonexistent credit, it is achievable if you ask the right questions and know where to look.

How long will the loan be active?

Before pursuing a loan, it is important to crunch some numbers and make some decisions. The first thing you should ask yourself is how much you can afford to pay each month and how long you are willing to pay it. You want to be sure the payments are reasonable and within your means. Don’t overestimate, but you want to pay as much as you can without setting yourself up to fail.

If you decide that a longer auto loan (more than six years) is best for you, know that your monthly payments will be lower, but you will end up paying more in interest over the life of the loan. Choosing a longer loan also means you run the risk of falling victim to depreciation. This means you could end up owing more on the car than it is worth, or the dreaded underwater scenario.

Do you have a co-signer?

If you alone do not look appealing on paper, adding a co-signer to the loan, like a spouse or parent, can make you look a lot more attractive to lenders. With a cosigner, the party lending the money has more options for recovery outside of the borrower. Essentially, if you have someone with good credit willing to vouch for you, you are more likely to drive away in a new or used car. However, you have now made that individual as equally responsible for the payments as you are.

Who will lend to you?

Don’t give up on a bank loan until you’ve actually tried. Know that you are more likely to be approved at an institution where you already have an account. If you are not approved the first time, it may be worth your time to wait and apply again a few months later, particularly if in those months you can demonstrate steady employment, change in income or steady credit payments.

If you have no luck at a corporate bank, try for pre-approval from a credit union. Credit unions are capable of making personalized decisions, especially if you bank there. A bonus is that credit unions tend to offer lower interest rates than banks, and they do not follow the bank’s tiered rate system, so your interest payments will be the same as any other credit union member’s, regardless of your credit score.

Another option is to go with a dealership that caters to customers with little to no credit, such as DriveTime. Its website states that it has approved over 2.5 million people and sold over 750,000 used vehicles to people with no or bad credit. It claims that it works with all credit types, so you are more likely to get approval.

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

June 18, 2015 by Average Joe Leave a Comment

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

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.

6 Simple Steps to Financial Health

May 1, 2015 by Isabella Blanca Leave a Comment

Organizing your finances can be a daunting task. And because of your fears, you’ve been avoiding the process for quite some time. But it must be done if you desire to achieve the financial freedom you’ve been dreaming of. Simplicity is the key. Here are a some big steps that’ll help you create a clear action plan:

1. Get Organized

Do you have piles and piles of old statements from service providers, creditors or financial institutions lying around? If so, grab a shredder and purge. Doing so should take away some of the anxiety that accompanies getting your financial life in order. And for those items you need to keep, consider purchasing a small filing cabinet and organizing the documents by type. To determine what to keep, for how long, and what you can toss, check out this chart on USA.gov.

Also, opt-in for electronic statements; they’re usually available and eliminate the frustration that arises when you need to access an important document at the drop of a dime.

2. Conduct an Audit of Your Financial State

Next, you’ll need to assess where you stand financially in order to come up with a feasible plan to take your finances to the next level. To do so, create a comprehensive list of your assets and liabilities. This should include any retirement accounts, securities, income and outstanding debt balances you have on hand, just to name a few.

Once you’ve done so, list any sources of income you receive each month and the estimated expenditures. (For the latter, track account activity for at least one month to get an accurate figure).

3. Implement a Spending Plan

There are tons of software programs to choose from, or you can do things the old-fashioned way. Regardless of which method you use, here are a few key points to keep in mind:

• Every dollar should have a name on it before the month starts. The more stringent the plan is, the higher the chances of compliance.

• If your outputs exceed your inputs, you are left with no choice but to make cuts. Many ignore this pertinent tidbit of advice because they figure as long as the bills are paid, nothing else matters. That’s until a financial emergency arises.

• The plan should be helping you build a cushion, pay down debt and accomplish any goals you have in mind, simultaneously. If not, you won’t be motivated to stay on track.

4. Fund Your Safety Net

Life happens, and you may need a financial infusion to get out of the hole. And there’s no easier way to send your finances haywire than robbing Peter to pay Paul. That’s why the first order of business on your spending plan should be paying yourself to ensure your emergency fund is receiving the boost it needs each month.

5. Create a Debt-Management Plan

Before you decide to aggressively attack the outstanding debt balances, bring any delinquent accounts current. This is important to minimize the damage done to your FICO score for recurring delinquencies, not to mention the excessive late payment fees, interest and penalties. If you’re having a tough time formulating a plan due to limited income, consider making cuts to the variable expenses in your spending plan.

6. Capitalize on Existing Resources

Be proactive and take advantage of all the free tools at your disposal. A host of financial institutions offer online bill-pay as an added perk of being a member or for a small fee. In additional, there are spending tracking features to help you identify problematic areas and make adjustments moving forward. If you’re an AOL user, you’re granted complimentary access to Lifelock’s identity theft protection services, which can protect your personal information from fraud and preserve the financial freedom you’ve worked so hard to achieve. Most importantly, remain vigilant of your account activity at all times to confirm the activity is accurate.

Home Improvements Worthy of Your Tax Refund Check

April 13, 2015 by Isabella Blanca 1 Comment

Whether you’re to looking to increase the value of your home for resale or switch things up to give it a fresh new look, your tax refund check provides the opportunity to do so. And no, an extreme overhaul, like the ones you see on HGTV, isn’t required.

Here are some cost-efficient ideas:

Paved Driveway

Tired of saturating your vehicle in dirt each time you leave or return to your home? How about the rocky ride along the way? A paved driveway, comprised of asphalt or concrete, is the perfect solution. You’ll no longer have to step into grass or dirt each time you open the car door, which is especially important if you’re constantly having to tidy up the floors because of dirt being tracked into your home.

New Roofing

Are you constantly forking over cash to contractors to fix that leaky roof? If so, it’s time that you give your home the new roof it deserves. Champion Home Exteriors, which offers expert installation and Advanced Protection® Technology Advanced Protection® on Lifetime single choices, has an array of affordable options to choose from.

Finished Basement

A finished basement makes an excellent addition to any home that could use some extra square footage. It’s ideal for a game room, play area, movie theater, home office or an oversized bedroom, just to name a few. If you’re going to be housing a relative in the near future, a finished basement is also the perfect place to create a mini-apartment for their added privacy.

New Air Conditioning Unit

Is your air conditioning unit on its last leg? Since you have some extra cash on hand, now’s the time to start searching for a replacement. Just be sure to consider additional factors, such as the Seasonal energy efficiency ratio (SEER) and quality of the unit’s components. While it’s tempting to go with the cheapest unit, you could spend much more than you initially anticipated over time, in the form of energy costs and repairs. Energy efficient units may qualify you for Residential Energy Credits. See IRS Form 5695 to learn more.

Mini-Kitchen Remodel

It’s not necessary to invest thousands of dollars to completely overhaul the kitchen. A better option is to freshen up the paint, refinish or replace or the flooring, and swap outdated appliances for energy-efficient models.

If your appliances are not that old, a local expert like Mesa az appliance repair can help fix them and look as good as new.

Upgrade Outdoor Living Space

Adding a screened patio or fence can work wonders for your backyard. And with the right decor, it can quickly be converted from a standard space for the children to play to a stunning space for entertaining guests.

New Garage Door

By installing a new garage door, you will alleviate yourself of manually lifting the door (on outdated models) while adding a new look to the exterior of your home. And you’ll no longer have to get soaked on those rainy days.

Not only will these home improvements will give your home a new look and feel, but you may be able to derive tax benefits on select upgrades. See IRS Publication 530 for additional guidance.

7 Commonly Overlooked Write-Offs to Consider for 2015

March 24, 2015 by Isabella Blanca Leave a Comment

Do you tend to cringe at tax time when the exorbitant liability or measly refund amount is revealed? Chances are your return is missing some tax deductions or credits you’re entitled to. However, determining your eligibility is easier said than done, particularly if you aren’t well acclimated with tax law.

But don’t fret. Here are some commonly overlooked opportunities that will open the door to tax breaks and possibly more money in your pocket:

1. Education Expenses

Are you, your spouse or qualifying dependents enrolled in an institution of higher learning? You may qualify for the Lifetime Learning Credit or American Opportunity Tax Credit if the institution is eligible, per IRS standards. And, if you spent your own funds for qualified education expenses, you may also qualify for the Tuition and Fees Deduction.

2. Jury Duty Fees

If you were paid by both your employer and the courts during jury duty, chances are your employer demanded you to turn over the proceeds from jury duty to avoid double compensation. So, when filing this year’s return, don’t forget to adjust your income on line 36 of Form 1040 to account for the funds you relinquished. See IRS Publication 17 for additional information.

3. Job Search Expenses

Were you in the market for employment last year? Even if your efforts were unsuccessful, you may be able to deduct the expenses associated with a job search if you weren’t reimbursed by the prospective employer. For guidance, see IRS Publication 529.

4. Relocation Expenses

By contrast, if you managed to land employment that required you to relocate, the expenses incurred may be deductible if you meet the distance and time test. According to IRS Publication 521, “your move [meets] the distance test if your new main job location is at least 50 miles farther from your former home than your old main job location was from your former home. [To meet the time test], you must work full time for at least 39 weeks during the first 12 months after you arrive in the general area of your new job location.”

5. Child and Dependent Care Credit

If you expended funds for the care of your qualifying child who was under the age of 13 or for a spouse who is physically or mentally incapable of self-care and resided with you for over 6 months last year, you may be eligible to take the Child and Dependent Care Credit. Expenses for other qualifying individuals who meet these same criteria may also deem you eligible for the credit. See IRS Publication 503 to learn more.

6. Charitable Contributions

Did you pay it forward in 2014? According to IRS Publication 526, “you can deduct contributions of money or property you make to, or for the use of, a qualified organization. A contribution is ‘for the use of’ a qualified organization when it is held in a legally enforceable trust for the qualified organization or in a similar legal arrangement.” However, deductions are limited to 50 percent of your Adjusted Gross Income (AGI).

7. Car Donations

If you were able to downsize your 20-year old clunker for a great deal you saw on Kelley Blue Book, you may be able to save even more. If you donated your car to a charitable organization, don’t forget to write it off. Publication 4303 provides the guidance you need to do so.

5 Tips to Prepare for Retirement

March 21, 2015 by Average Joe Leave a Comment

You may be young, but it’s never too early to prepare for retirement. According to a study via the National Retirement Risk Index (NRRI) and the Retirement readiness Rating, 43% to 52% of Americans are not going to live their retirement years in the standard they’d hoped, according to their current living standards?

So what’s the best way to be prepared for the life you want to lead when you retire? Start planning now. Check out the following five tips to do so.

1. Contribute to an IRA or Your Employers 401(k)

So you’ve started working for an employer who has a 401(k). You may feel you don’t have the money to spare to contribute, but you’re losing out on more by not contributing. For one, it’s an excellent tax deduction, reducing your taxable income. Also, most employers offering this plan offer some matching contribution. Don’t leave behind that free money on the table. These savings plans handcuff you from quickly accessing this money, so saving it up is a breeze.

2. Save Up Automatically

Here is another way to start saving towards retirement. You can use this in combination with putting money into your IRA. Start saving money into a savings account by having it pulled automatically from your paycheck each pay period. Talk to your human resource or payroll department about taking a specific dollar amount or percentage, and deposit it into this designated account. This is a guaranteed way to get it in monthly.

3. Live Healthy to Save More

It’s said living healthy is costly, especially if you eat organic foods. However, organic products aren’t the only road to good health. There are other things you can do such as regular exercise, cut down on your fat intake, and stop smoking. The results: you reduce the chances of developing cardiovascular or lung diseases and live longer. This helps you save by eliminating excess doctors’ visits, hospital stays, prescriptions, and as a bonus you’ll also save on not purchasing excess, unhealthy items.

4. Start Eliminating Debt

Getting rid of debt now will help you prepare drastically when you retire. Not having to worry about a mortgage, car note, or credit card bills help you have money for future lifestyle and vacation plans. The sooner you pay these off, the faster you can start saving for an emergency fund to use instead of your retirement savings for emergencies.

5. Start a Side Business

In a study called Work in Retirement: Myths and Motivations, they studied 7,727 adults regarding their position on returning to work after retirement, 30% said they would go back to work. Instead of working for someone else, prepare now to work for yourself. This will help you enjoy your retirement years as you want, when you want.

Don’t feel it’s too late to prepare for retirement. Implement the above five tips now and keep on target for future goals.

How to Finance Your First Car

March 2, 2015 by Average Joe 2 Comments

According to NADA’s Annual Financial Profile of America’s Franchised New-Car Dealerships, dealerships sold or leased more than 15.5 million new cars and trucks in 2013. That accounts for a 7.5 percent increase from the year before. As car sales grow and everyone you know seems to be driving around the newest model, it’s tempting to jump in, buy it and speed off the lot with the wind in your hair. Despite the relative ease of purchasing a vehicle, it’s important to know your options, find the best financing available and negotiate a price in your favor. Here are some tips to get started.

Set a Budget

It’s impossible to know how much car you can afford without a budget in place. Make a monthly budget and see if you can stick to it for a few months before diving into an auto loan or car purchase. Make a list of your fixed expenses with a generous amount left over for emergencies and recreation. Use an app like Mint to help keep track of your budget and alert you on when you’re overspending on set categories. Remember it’s not enough to just plan for your auto loan. Consider the cost of your tag fees, car insurance, fuel, ongoing maintenance and extras like getting your car detailed or replacing a flat tire. As a rule of thumb, don’t devote more than 15 percent of your household income to transportation.

Know Your Credit Rating

Get a free credit report from a site like Annual Credit Report to check your rating. Your score can directly impact your interest rate on an auto loan. Your credit report can also alert you to any erroneous information, credit fraud or mistakes. Your rating is calculated with a combination of factors from your credit history, outstanding debt and payment history. Your score ranges from 350 to 800. The higher the score, the better loan you can probably get.

Shop Around for Funding

The upside to securing funding through an auto dealer is taking care of your loan and financing in one place. The downside, car dealers are often paid a commission for it. Instead, consider a dealer like DriveTime where sales advisers aren’t paid on commission, making it easier to trust their advice. They also offer a 30-day limited warranty, 5-day return guarantee and auto check history report on all used cars they sell.

Going with the car dealer’s loan offer or big bank isn’t the only way to secure a car loan. A community credit union generally offers lower rates and is more sympathetic to borrowers with lackluster credit history. Credit unions are known for offering more intimate customer service. Since they’re funded by their customers, they work for their members and aren’t motivated to sell you anything for their own financial gain. Profits from credit unions go back into their services and member offerings.

Negotiate the Price

Regardless of how you pay for your first car, remember the price is negotiable. Consumer Reports suggests purchasing a New Car Price Report to find out what the dealer paid and using it as a springboard for negotiation. Be warned, dealers like to lump everything together from financing to trade-in you might be offering. It can be difficult to figure out the numbers once it’s lumped together. Negotiate one thing at a time and stick to the monthly amount you want to pay. Start with your rock-bottom price and let the dealer work you up slowly to a reasonable price you can drive away with.