Happy New Year to everyone! I wish you all much success and fortune this year as we take advantage of this opportunity to work towards our goals and dreams. Many people have great intentions and objectives at the start of a new year (me included), but rarely see them fulfilled. As a result, I have come up with three principles we can focus on to help us begin to realize our ambitions. Take ResponsibilityThere’s a great book called “The Oz Principle” written by Roger Connors, Tom Smith, and Craig Hickman that focuses on the principle of taking responsibility for your circumstances. The …

Wouldn’t it be great if you had a rich uncle or relative who decided to bless you with a huge lump sum of money? What if you hit the lottery or received a settlement from a lawsuit? There are numerous instances where these very things have happened to folks and overnight they went from pauper to prince. What would you do if that happened to you? Statistically, many people who win the lottery or otherwise come into large sums of money find themselves in bankruptcy in only a short amount of time. Why is that? Well, if they have not acquired smart money management skills prior to this windfall, …

Everyone knows what assets and liabilities are… right? Maybe not… at least not the way you should understand them. This confuses many people because most people generally understand that an asset is something of value such as a home or a car, and this is where many people get into trouble financially. Someone may believe they are buying an asset, but is it an asset if it actually consumes money from your other income sources? Let’s take a look at a couple of definitions for “assets” and see which one makes more “smart money” sense. Assets The general definition of an asset would be the things…

Because of the volatility of the stock market, many are now considering buying certificates of deposit (CDs) as investment strategies. That’s understandable, but according to Bankrate.com and Google Advisor, the average one-year CD currently has yields far below one percent. In case you don’t know… that’s horrible! What you’re really doing is paying banks to keep your own money. Below is a sampling of one-year CD rates: One-year CD Rates                   Ally Bank: 1.02 AIG Bank: 1.00 MetLife Bank: 1.00 Publix Employees Credit Union: 0.80 Flagstar: 0.75 Bank of America: 0.35 Chase: 0.25 …

Christmas is almost here—that time of year when visions of sugarplums dance through our heads as we stroll through the malls and shopping centers excitedly looking for the next great bargain. ‘Tis the season when laptops, widescreen TVs, console games, etc... are all on sale as retailers compete for our dollars, sparking a shopping frenzy greater than any other time of the year. We spend more consumer dollars the 30 days between Black Friday and Christmas Eve than we do in any entire quarter (90 days) of the year. Much of that shopping is done for our kids as we prepare to make their …

People typically make numerous broad and sometimes outrageous financial resolutions. They want to pay-off all their credit card debt, double their savings, and accumulate enough money for a vacation or home remodeling project. And some want to achieve all of the above in the same year! By pledging to make huge, sweeping changes in one year, you are almost certain to fail. Instead, if you set smaller, simpler goals, you’ll have a much better chance at success. Believe You Can Do It Goals that are too big are also likely to impact your belief. For lasting change to occur, you must believe the …

The holiday season is upon us—a time meant for joy and merriment. It is a wonderful time when friends and family can come together and celebrate. It’s also a time when we most love to go shopping for our loved ones and buy them gifts to express our love and appreciation; but it doesn’t mean you need to break the bank every year to do so. Studies from Consumer Reports show that last year, 45% of holiday shoppers that set a budget still blew right through them. In 2010, consumers spent 22% more money than they had originally intended. They went on to say that as of October 2011, 14 million …

Most of us have been forced, at one time or another, to make financial compromises because of the lack of funds to take care of all the bills at once. Sometimes you have to “rob Peter to pay Paul” in order to keep the water flowing and the lights on. Your intentions are always to make up the difference later, when the money is available, to catch-up on the payments due to your neglected debtors. Unfortunately, this has become a way of life for many Americans, especially now that the economy is in turmoil. Unemployment is still around 9% and more jobs are being lost everyday – pay raises have …

A couple of weeks ago I expressed my anger at Bank of America over their plan to charge a $5 monthly fee to use their debit cards for purchases. Of course I was not the only one that felt that way and it triggered outrage among many of their account holders… Even President Obama had words to say about it when he said that banks shouldn't take advantage of their customers. Canceling Plans to Charge Debit Card Fees Because of all the bad publicity, other big banks have had a change of plans and are not following in the steps of BOA. Chase and Wells Fargo are joining the list of banks that will …

The total cost to own a car is generally at the forefront of the thoughts of many financially-savvy consumers. This cost includes not just the monthly payment, but car insurance, the cost of gas, repairs, maintenance and depreciation. In the past, conventional wisdom has stated that buying a used car is always the most frugal option. But with rising prices in the auto resale market, much more fuel efficient new cars, and better warranties, you may be better off buying a new car instead. When we look at real-world factors, they also tend to favor the purchase of a new car over a used one. AAA …

“Banks don’t have an inherent right to a certain level of profits.” These are the words spoken by President Obama last week when he heard about the upcoming fees that companies such as Bank of America plan to impose on their account holders next year. He went on to say that it is “not a good practice” for banks to cope with a crackdown on hidden fees by finding other fees to charge customers. Dodd-Frank Wall Street Reform and Consumer Protection Act This all stems from a new law that recently went into effect, introduced by Senator Dick Durbin from Illinois, which curtails the amount of fees …

Every responsible parent desires for their child to have a better life than their own. Unfortunately, based on government projections and poverty indexes, the reality is every generation is effectively worse off economically than the previous. It used to be common for a child to leave home for college… graduate… then go off into the world as an adult to make their own way financially. Now it’s more common for children to return home after college to once again live under their parent’s roof. Many analysts will point to the current economic conditions as the major contributor to this trend, …

Long before most children can add or subtract, they become aware of the concept of money. And up until the time where they start earning a living, kids are likely to spend money like it grows on trees. But how do our kids learn to manage money; at school, by watching TV, from watching their parents manage their money, or from their own mistakes? Most kids learn from a combination of all these. But with the right information and a little commitment, parents can make a big difference in preparing kids to conquer the many financial challenges they will face as adults. There’s a scripture in …

With the effects of inflation driving up the costs on everyday items, the difference between financial happiness and financial distress is a very thin line. Most people can’t pay cash outright for things like cars, homes, college tuition, etc. so they take out loans and use credit to provide a means of obtaining the things they need in life. Unfortunately, many people don’t realize they’re on the wrong side of the line until it's too late. What we need is an early warning alert to help us realize when we’re about to step over to the financial distress side of life and help us turn back the …

No matter how expertly you plan your future, life will always throw you a curve ball. And when it comes to your personal finances, there will always be those things that you didn’t account for. You’ve got health, home and auto insurance; retirement accounts and education funds for the kids. So you think you’re okay. But what happens when the water heater ruptures overnight, or the transmission fails on your car while you’re out of town? That’s when an emergency fund is handy. Usually, financial experts advise that an emergency fund should be able to cover three to six months of living …

Almost everyone in America, from teens to retirees, has a credit card. Chances are your mailbox is full of credit card offers right now. But why should you have one? Well, they are convenient to use and can be safer than carrying cash, and they offer you consumer protections under federal law. However, it is also a big responsibility because if not used carefully, you may end up owing more than you can repay and damaging your credit rating. So, what should you know before you apply for a credit card? The following information will give you a basic understanding of how credit card financing …

Dollar cost averaging is designed to reduce market risk through the systematic investment of a predetermined amount of money at a consistent interval. Instead of investing money in a lump sum, the investor slowly and steadily takes a fixed dollar amount and buys smaller shares of stocks, bonds, or mutual funds over a longer period of time. This spreads the investment out over several years, providing insulation against market fluctuations. Saving for retirement in this manner makes a lot of sense, because if you're spending a fixed dollar amount each month, you’ll purchase more shares when …

Stop Giving Uncle Sam Interest-Free Loans If you got a big tax refund this year, it meant you’re having too much tax taken out of your paycheck. The average tax refund for 2010 was $3,129 (about $260 per month). That’s money that can be used throughout the year to pay-off debt, save towards retirement, or just take care of day-to-day expenses as needed. Instead, we’re allowing the IRS to take this money and use it for the year, only to return it later with no interest paid to us. Go to the payroll office of your employer and fill out a new W-4 form and adjust the withholding amounts to insure…

Last week I wrote about the different college savings plans available to fund your kid’s education. This week I want to emphasize why it’s important to start saving early. Someone once said the only two things life gives you are opportunity and time. Time, combined with two other important elements, rate of return and consistency, is a powerful key to helping you attain the financial gains you’re seeking. Don’t Pay the High Cost of Waiting If you’re like most people, you don’t have a lot of money. That’s why time is so critical. When your kids are young, you can save small amounts towards …

Most people understand the value of a college education, but the cost is high enough to break the bank for a lot of families. With the cost of higher education rising faster than inflation, parents of today's toddlers may face college costs higher than their total home mortgage. But if you start saving while they’re in pre-school, you'll put yourself in a good financial position by the time your son or daughter is ready to hit the dorm rooms. Choosing the Right College Account Choosing the right college savings plan can feel overwhelming. With at least a half dozen different types of college …