Financial Organization:
Are You Ready For ‘Change’?
Personal Finance: Are You Ready For ‘Change’? Get on the road to success and achieve Your Financial Goals
Perhaps you have a highly organized system of recording your daily work meetings and social appointments. But how organized are you when it comes to your financial life? If your finances are controlling you, here are a few tips to get back in the driver’s seat!
Consider your financial goals. What do you want to achieve financially? It may be a good idea to write your goals down on several sheets of paper. Try posting your goals in places where you can see them often (you may use the one below for your convenience and place it in your purse). When you see something you want, try to stay focused and consider your goals. Is the purchase you are considering something that you really need to spend money on?
Consider your income. Some people spend more than they actually make and which can lead to feelings of tremendous stress. You might want to ask yourself if you live within your means. Sticking to a budget can be enlightening. If you receive a raise, an inheritance or some other ‘extra’ amount of money, consider putting those funds toward your settlement company account instead of purchasing something that you do not need.
Budget, Budget, Budget: Once you have your financial goals defined and consider your income, it may be a good idea to create a budget. Kiplinger suggests using Microsoft Excel, Microsoft Money or Quicken to organize your finances. An inexpensive ledger or check register might also work for you. What expenses could be eliminated or cut back on for you to achieve your financial goals? For example, taking lunch to work more often and dining out less might save you a lot of money. Think about tracking your expenses. Just knowing you have a budget might help you feel less financially stressed and more in control. If you have debt, try working with your settlement company and take time each month to evaluate your progress.
Create a financial ‘To Do’ list. If you keep track of your daily appointments, try doing the same thing for your finances. One idea could be to make a list of goals and mark them ‘High Priority’ ‘Medium Priority’ and ‘Low Priority’. Try to focus on your high priorities and needs first just as you do with your daily appointments. Review your priorities daily.
Create a filing system. Try looking at garage sales, flea markets or thrift stores for a small filing cabinet where you can keep all receipts, financial statements and documents safely filed, labeled and organized. Doing this may help you find documents and records quickly when you need them. Organize your information according to your need. For example, you could label individual folders to hold tax returns, bank and other account statements, insurance forms and policy information and ownership documents. You might also want to file other information such as warranties or service contracts as well as instruction manuals for items in your home. Kiplinger.com reminds consumers that tax records should be kept for three years for individuals and six years for those who are self employed. If you have trouble remembering when your bills are du e, perhaps it would help to get a calendar and highlight all bills and due dates. You could keep the calendar in a place where it catches your attention.
A Family Affair. Do you have friends who can help If you are married or in a relationship, think about talking with your significant other. If you keep your finances separate, could help you organize things better. Even if you are single, do you have a helpful trustworthy friend or family member who could help you organize? Involving the entire family will also foster financial learning in children and will hopefully offer you more support.
Spare Change
Buyers
Beware of Skimming at the pump
CreditCards.com
reports that consumers who pay for gas at the pump using a debit card should be
on alert. Reports of ‘skimming’ are on the rise.
Thieves are able to place an inconspicuous electronic card reading device inside or outside of a gas pump. When a customer inserts a debit or credit card and enters a required personal identification number (PIN), the portable device ‘skims’ personal data, as well as a customer’s PIN number from the card’s magnetic strip. The information is then readily available for dishonest people to view on the Internet. AARP reports that some skimmers have also used small remote cameras to capture PIN numbers of debit card users who enter their information at the pump.
To
help diminish the chances of being skimmed, AARP suggests carrying out all
transactions inside the gas station rather than at the pump itself. You may
also want to sign all credit card receipts. If you must pay at the pump, it may
be a good idea to choose the ‘credit’ screen prompt instead of ‘debit’ so you
don’t have to enter a PIN number. You may also want to monitor your statements
and accounts. If you notice any discrepancies, you should report those concerns
to your bank and law enforcement as soon as possible.
Missing Manuals?
Missing
user’s manuals cause frustration to bargain hunters who have purchased used
electronic devices or appliances at online auctions, swap meets, garage sales
or thrift shops. In some cases, owner’s manuals may be missing from the box
even when a product is purchased new.
Of
course, you could try to contact the manufacturer for a replacement manual first,
but they may charge a fee. Before you purchase an owner’s manual, you may want
to check some online sites which could offer the manual you are seeking for
free.
Some
sites to try include Retrevo.com, where manuals are available for approximately
100,000 products from a variety of manufacturers. You can also visit www.manualsonline.com,
www.free-service-manuals.com and www.usersmanualguide.com.
UCAN Corner
Apex
Law Group LLC (Apex) and the United Consumer Advocacy Network LLC (UCAN)
recently announced a victory in a debt collection abuse matter. As a result, a Pennsylvania
consumer, who was enrolled in a debt settlement program which included the UCAN
consumer advocacy service, received a favorable settlement in a federal court judgment.
The
client became the subject of harassment from a collection agency trying to
collect a credit card debt. Harassment included phone calls to the client’s
home and place of employment in an attempt to embarrass and humiliate the
consumer.
Examples of the collection agency’s questionable
conduct include:
•
False
statements that the collector was from a law firm
•
False
statements that a lawsuit was being filed against the individual
•
False
statements that they were going to serve the individual at his place of
employment
•
Misrepresenting
the amount allegedly owed
•
False
threats of wage garnishment and bank levies
•
Use of
threatening language
Upon
receiving these threatening messages, the consumer checked with the local
courts to see if a lawsuit in fact had been filed against him since he did not
recall being served with a summons, let alone a judgment. Much to the client’s
surprise and anger, no such lawsuit had been filed. The consumer promptly
contacted UCAN.
Upon receiving and reviewing the consumer’s complaint,
a UCAN representative forwarded the matter to Apex Law Group for possible
placement with a Fair Debt Collections Practice Act (FDCPA) attorney located in
the consumer’s local area.
The
matter was then referred to an Apex Network Attorney, located in Pennsylvania,
with experience in debt collection abuse matters.
From
the voice recordings and other evidence collected by the client, the attorney
was convinced that the collection agency’s actions went beyond what the FDCPA
allowed, and agreed to take the case on a contingency basis (i.e. the consumer did not have to pay any
money to the attorney).
In
addition, the attorney found that the collection agency’s actions violated
state and local laws designed to protect consumers against heavy-handed debt
collection tactics.
The Apex Network Attorney was involved with several previous successful
lawsuits against the collection agency in question for similar harassment
issues.
In typical matters such
as this example, FDCPA attorneys generally alert the original creditor to the
situation, hopefully encouraging creditors to more closely monitor actions of
the debt collection agencies with which they work.
As this case study
shows, it is crucial for debt settlement clients to be proactive in their
programs, actively collecting information, such as voice recordings, from
collectors that seem to be crossing the line. With that information and the
assistance of UCAN, Apex and the network attorneys, many more clients may be
able to turn a negative and stressful collection experience into a positive
one.
For any questions about collector calls that you receive,
contact us at 1-877-462-8226 or email UCAN at info@ucan.net. Business hours are
Monday through Thursday, 9 a.m. to 7 p.m. EST and Friday 9 a.m. to 5 p.m. EST.
Your
Financial Future:
Making
The Transition
Things to consider before your financial transition:
Establishing Your Financial Future After the Military
Various financial challenges face
military families and individuals. If you are a transitioning military, perhaps
you are concerned with building a strong financial foundation. There are things
you can do to help with your transition, whether you are still on base or just
made the transition. If you know someone currently deployed, share this
information as a ‘thank you’ for their brave service.
Plan early. If you are still on base,
consider all of your benefits and assistance. Think about how your military
community can help you plan for financial success. If you know someone who is
still on base, encourage them to find support early.
Get advice. You may already be aware
that all branches of the military offer support and assistance, including
pre-separation counseling. Think about utilizing these services, but also take control
of your own future by talking with someone who has already left the military.
Ask him/her about unexpected expenses, lost benefits, tax changes or about
other financial matters that you may face once you are back into civilian life.
Consider financial goals. You should
want to avoid debt as much as possible. Militarymoney.com suggests that you
review and re-evaluate your financial goals. What was important to you
financially before you deployed? Have your priorities changed? Consider
creating a budget that you can maintain without getting overwhelmed. If you already
have debt you should include that in your budget. Maintaining insurance
coverage and retirement accounts and making the right tax decisions may also be
important to add to your budget.
Credit.
Do you know what your credit, or FICO, score is? Future employers, landlords
and even insurance companies may look at your credit score before they decide
to do business with you. By law, all United States residents can review their
credit report for free once a year. Visit http://www.annualcreditreport.com/
to request your report. Once you know where you stand, perhaps it will be
easier to know where you need to focus to improve your score. If you leave the
service with little or no credit history, you can always build one. Once you
make the transition, try to pay all bills on time every month since on-time
payments are the top factor in determining a credit score.
Employment.
Check with your military community-service office on your base or the Army
Career and Alumni Program (www.acap.army.mil). Both sources could get you on
your way to tackling important employment issues. Once you return to civilian
life, you may want to take advantage of your tuition assistance and further
your education in some way. You may want to begin thinking of ways to update
your resume with the skills and abilities you acquired throughout your military
service. Networking can be a major key to finding employment so you may want to
discuss your goals with family and friends who could help you get in contact
with people who may be hiring. If you use social networking, such as LindkedIn and Facebook, it is a
good idea to be as professional as possible at all times since potential
employers often check the pages of their applicants.
Try to remember that it is never too
early or too late to get help. If you are on base, you might consider your
military support office and your family support center. If
you have already made the transition, check your local listings for military support
offices. The internet offers access to information, jobs and tools for today’s
separating military. Just a few sites include Military.com, Transition Assistance Online at
TAOnline.com, and militarymoney.com.
Credit Corner
As you strive to settle your debts, most
of you have made a commitment to rely on cash instead of credit cards. After
you complete your debt negotiation program, you will probably want to
re-establish your credit. As you probably know, credit cards can cause serious
financial problems if they are not used properly. Periodically, this column
will discuss a credit card issues and offer tips on responsible credit card
use. This month’s topic is Debit or Credit: Which is right for you?
A recent article by Kiplinger revealed that Americans used their debit cards 28.4
billion times last year, compared with 21 billion credit-card purchases. The Federal Reserve has also recognized the rise in debit card
usage, which has reportedly been growing steadily in recent years. Whether you
are considering debit or credit, it may be wise to first check with your bank
regarding the particular fees, regulations and conditions attached to each.
The Debit Decision
Debit cards possessing a major bank logo can
usually be used at the same places that accept credit cards. For debit
purchases, funds are taken directly out of a customer’s bank account as if they
were making a typical ATM transaction.
If used responsibly, debit cards could be a good money management tool for those who want to
break themselves of bad spending habits, including the ‘buy it now pay later’
attitude that sometimes accompanies credit card usage. If purchasing with
debit, you should learn to always be aware of exactly how much money you have
in your bank account. AARP suggests tracking all expenditures and making
immediate notations of all transactions to avoid costly overdrawn fees and
penalties.
Purchases on debit
cards do not acquire interest – in essence, a consumer is basically using
plastic to pay cash. While this may be considered a benefit for some, be aware it
can be a costly drawback to those who are not financially organized.
If you do use
debit, it may be a good idea to keep all receipts until you check your account
balance and financial statements. Consumerreports.org reminds consumers that
some retailers and merchants such as gas stations, hotels and car rentals, can
use ‘blocking’ for debit card purchases. For example, if you purchase
$10 worth of gas, an outlet may put a hold on $50 of your funds, causing an
overdraft if you don’t have that amount in your bank account. The block is
eventually lifted, but length of time depends on merchant.
Also Bankrate.com reports that PIN-based debit cards should provide better protection against identity theft. Try to be aware of your debit card regulations if your account is compromised. Reportedly, consumers have some federal protections if a dishonest person gets access to their debit card however the key is in acting fast. AARP suggests contacting your bank immediately if your card is lost or stolen or if you suspect it is being used without your knowledge. I would be a good idea to close account and ask your bank for a new account number and PIN.
A Case For
Credit
Credit cards also require responsible
usage and financial discipline. If you choose to pay for a purchase using a
credit card, try to keep in mind that you are ‘borrowing’ money which needs to
be paid back. Try not to charge anything that you do not need or cannot afford
to pay off as soon as possible. Keep in mind that unpaid credit card balances
will accrue interest monthly.
Credit card purchases, unlike those
made with debit cards, are usually protected by the Fair Credit Billing Act. If
you have a problem with an unauthorized charge or a defective item that was
purchased with a credit card, the Fair Credit Billing Act could provide
additional support.
Walk Down
The Aisle Without Budget Worries: Try These Tips!
Don’t let going to the alter make your finances falter
Planning your special day doesn’t have to drain your finances. If
you are among the soon-to-be-married, some of these tips could help make your
wedding special while saving your budget.
Details
Pick the date. Think about having your wedding in the off-season
between November and April. Since Saturdays are usually more costly and the
most popular choice for weddings, you might also consider holding the ceremony
on a Friday evening. However, if you have your mind set on Saturday, try checking
into rates for morning or early afternoon nuptials.
Do you and your fiancé have a special interest? For example, if you
are interested in medieval, Civil War or World War II history, consider a theme
wedding. A small, simple wedding at a renaissance festival, for example, could
add a touch of fun to your festivities – you will be surrounded by others who
enjoy your passion and you could even dress in historically accurate clothing.
Guests. Smaller guest lists can make
a wedding even more intimate.
Decorations
Happy Holidays.
Décor can eat up a large part of your wedding budget. You and your fiancée
might consider exchanging your vows close to your favorite holiday at a special
locale such as a historic site or restaurant. Think of sites that you both
enjoy that may already be decorated beautifully for the holiday.
Flower Power.
If you definitely want flowers, a garden or park might be the perfect setting.
Depending on size and accommodations, you might save more money if you hold
your reception at the same site. Also, you may want to use locally sourced food
and flowers during your reception which may cut costs. Also, you could always
try doing your own flowers with in-season choices. Choosing one type of flower rather
than arrangements might also save you money.
Candles. You might opt for candles
instead of flowers. Candles should be less expensive then flowers and might add
a romantic touch to your event.
Attire
Crafty idea.
Try searching dress and accessory galleries and craft stores for ideas. Be your
own wedding planner! You may save money by doing your own research, using the
Internet to find do-it-yourself tips. You might also be able to get advice from
other brides on blogs and online forums.
Pretty. Look to cosmetology schools or students for discounted hair
and makeup appointments.
Dress. Try to avoid pricey designer
names opt instead for affordable, yet fashionable, styles that won't break the
bank. Consider choosing a white bridesmaid’s dress rather than a bridal ‘gown.’
You don’t need to feel like you’re compromising style to save a few dollars. A
simple, silky, smooth A-line dress can be as beautiful and elegant as a pricey
gown.
Rent wedding attire rather than purchase.
Food And
Drinks
Food For Thought.
Food and Drinks can also make a dent in your budget. A simple cocktail party,
brunch, tea party or lunch reception might be less costly for food and
beverages.
Lucky Love.
A potluck might be a good way to make your guests feel a part of the wedding.
Let Them Eat Cake. Consider using a small cake for display and
buying a sheet cake to serve your guests. In addition, consider checking out
culinary art schools for inexpensive cakes.