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Fine-Tuned Finances

Make Your Wallet Run Like New Again

Practical Solutions To Climb Out Of Debt One Step At A Time

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Receiving a credit account, line of credit or grace period to pay for things you don’t have the cash for upfront is a beneficial concept. It enables consumers to purchase everything from a house and car to clothes and vacations that would otherwise take years to obtain. If you manage this financial responsibility carefully, you reap the rewards ranging from additional credit to an outstanding score and history. Fall behind or neglect these obligations, and the consequences are costly.

When debt gets out of control, it takes a toll on your entire life. The balances are so high you can’t afford to pay them anymore. Meanwhile, the late fees and interest rates add up each month. Depending on how deep things are, creditors constantly reach out and threaten further collection actions. Not only does this mean a negative rating on your credit report, but it could also result in legal action and wage garnishments.

Digging Yourself Out

No one wants to deal with the financial consequences of overwhelming debt. Adverse actions like those listed above would blow your budget and essentially make it more challenging to survive. Whether you were careless with your finances or a life emergency resulted in your downward spiral with debt, you’re ready to dig yourself out. Although there are several ways to do this, here are a few practical solutions to consider below.

  • Calculate Your Debt – This step is intimidating but necessary. Review your credit report, bank account, credit card statements, and other financial records. Calculate the total balance due.
  • Assess Your Income And Budget – Can you afford to pay the debt? The only way to find out is to review your income and budget. Based on your everyday expenses, how much do you have left to commit to repaying your debt?
  • Contact Creditors, Lenders, And Service Providers – It’s time to face the music. Reach out to the creditors, lenders, and service providers. Try to negotiate better terms so you can repay your debt faster.
  • Get A Side Hustle – If you don’t have enough money in your budget to pay your debts down, you may want to get a side hustle. You can apply the earnings directly to your outstanding accounts. Even if all you can afford is the minimum, it’s better than nothing.

Brice Capital To The Rescue

The above strategies are practical solutions to get yourself out of debt. Although effective, it may not be enough to ease your stress. If that’s the case, there’s nothing wrong with asking for help. Sites like BriceCapital.com offer debt consolidation loans for consumers with high-interest high-balance credit cards.

The idea is to restructure your credit card debt to make it more manageable and sometimes affordable. If approved, your balances get lumped into one low-interest rate loan. You’d be responsible for repaying the loan as agreed. Many people have taken this approach and earned enough to buy a video game or invest in the stock market.

Stay The Course

The most challenging part about getting out of debt is sticking to the plan. It’s so easy to get tempted to use your money for other things. Be that as it may, you’ll only make matters worse. If you want to get to the light at the end of the tunnel, you must stay the course. Evaluate why you’re doing this, create goals, reward yourself for milestones, and if necessary, enlist the help of an accountability partner to stay on track.

It’s crazy how debt can go from being a convenience to a nightmare. Whether you were reckless with your finances in the past or simply fell on hard times, you don’t have to stay stuck. Although the journey to becoming debt-free will require time, energy, and money, it’s worth it in the end. With service providers like Brice Capital out there to assist, you’ll reach your goals before you know it.

Let 2021 Bring Prosperity With the Help of Old Dominion Associates

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If poor money management is preventing you from achieving personal goals, you can make changes that will take you in the right direction. There are no shortcuts. It takes dedication and drive. If you’re ready to enjoy a better quality of life, the time is now to take control of your finances.

Debt Overload

Your debt is piling up and consuming much of your expendable cash. Thankfully, there are ways to reduce it. If the majority of the debt is credit cards, you can apply for one that allows you to transfer the balance from existing cards, interest-free. If you don’t qualify for a new card, you can consolidate the credit card debt through companies like Old Dominion Associates. This will free up money that you can apply to savings.

Using a Household Budget

Many people dismiss the thought of a budget because they think it will put restrictions on their life, preventing them from enjoyment. This is not true. In fact, the opposite happens. When you stick to a budget, you track all your expenses. A new awareness of where your money goes allows you to focus and cut costs.

Set Financial Goals

Perhaps you want to buy a home for yourself and your family or you need a new car. These are things achievable when you manage money wisely. Use your budget to factor in money to work towards achieving your goals. For example, you need $20,000.00 as a down payment for a home. You want to buy within 2 years. Break down the number of months to come up with the money you need to save.

Cutting Expenses

There are many ways to reduce overhead costs and daily expenses. Cable television is something you want, not something you need. In order to achieve your goals, you can switch to a plan that costs less for the short term. Conserving energy will help you lower utility bills without compromising your lifestyle. Turn off lights when leaving a room, turn off the water when washing up, and using appliances during non-peak hours are a few examples that will save money.

Plan for Retirement

Any budget needs to allocate funds for your retirement. When you’re younger, it’s the best time to build wealth for the future. Social security will supplement your retirement at best. Many companies include a 401k as part of their benefits package and most match your contribution. Take advantage of this opportunity. If you are self-employed, you can acquire a 401k on your own. One benefit of a 401k is that you can use a percentage once fully vested. This can help you secure the funds for a home or a major repair. The best part is you’re borrowing from yourself and the repayment comes with interest.

Eliminate Frivolous Spending

Wasting money will take away funds from bills, vacations, and retirement. A budget will keep you aware of the money that’s yours and the money needed for other purposes. Instead of spending hundreds monthly on takeout, cut it back to twice a month. If you want something, a big-ticket item, like a new 70-inch 4k television, save up for it. You won’t borrow bill money and you’ll pay only the original price.

Avoid Using Credit Cards

Relying on credit cards for daily purchases is a sure way to remain in debt. Unless you have money in the bank and you want to earn perks, avoid using credit cards. A better method is to live within your means using cash. Give yourself a weekly allowance and when the money runs out, so do your purchases. This will help reduce credit card balances and teach you how to budget your money.

With 2021 on the horizon, it’s a great time to put the focus on smart money management. Creating a budget, reducing spending, and putting away money for tomorrow, will put you on track to make this year prosperous.

Top 5 Debt Relief Options

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More than 80% of all Americans feel the devastation that debt causes in their personal lives. That is eight out of every ten people you see who is drowning in debt and living with the effects that it creates in their lives. Luckily, debt relief options offer help and hope for anyone searching for a way out of the mess. One or more strategies from the following list may help you if debt relief tops your list of priorities this year. Companies like Strategic Consulting can help work with you to determine which is the right choice for you.

Debt Negotiation

Debt negotiation saves money while reducing your debt levels. With approval from the debtor, you pay a reduced amount of money in exchange for a lump-sum payment. Debt negotiation can save thousands of dollars. Although every debtor does not offer this option, many will work with you if you ask. It is worth a shot when there is so much money waiting for you to save.

Credit Counseling

Credit counseling can get you on the right track to financial freedom with helpful tips, advice, and guidance from a professional credit counseling expert. The resources and guidance provided by credit counselors are vital for anyone drowning in debt. They create strategic plans that reverse the course towards debt disaster and help create a stable financial path. Professional credit counselors offer free or low-cost counseling service that benefits thousands of people every year.

Personal Budgeting

Everyone should learn personal budgeting strategies since it helps manage money. Budgeting identifies the amount of money coming in each pay period, the money that goes out, and where it goes. With this information, you can reduce expenses where possible by eliminating the debt or choosing cheaper options. Personal budgeting experts help those looking for budgeting help. The cost to hire an expert varies. However, many workbooks, online resources, and in-person workshops also help teach personal financing, which can reveal extra money to help pay off your debts.

Debt Consolidation

Debt consolidation combines all your bills into one monthly payment that you select based on your monthly budget. This option may reduce interest and late fees, so you pay less money when all is said and done. Debt consolidation requires the help of a debt consolidation company. Costs for the service vary. Do more research before choosing debt consolidation. It benefits some users but is not such a good option for others.

Bankruptcy

Bankruptcy gives filers a fresh start by clearing away almost all their debt or with the help of a payment plan, depending on the type of bankruptcy filing. Chapter 7 and Chapter 13 bankruptcy options exist. All bankruptcy declarations first go through the bankruptcy court. A judge must approve the declaration before it is final. Consider bankruptcy as a last resort option, only when other debt-relief options do not provide the results you wanted.

Consider debt relief options like those outlined above for a quick reversal of your financial situation. Getting out of debt is not as simple as getting into debt, but thousands of people every year prove that it’s certainly possible. With time, patience, and the right debt relief strategies, life begins again, free from financial strains and worries.

Card Cracking Fraud Makes You an Unwitting Criminal

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The infamous East Coast/West Coast rap feuds of the 1990s did not start with Biggie and Tupac. The rap feuds of that era was actually ignited by a lesser-known rapper. Timothy Blair, AKA Tim Dog, was a regional rap star from the South Bronx who actually started that infamous rap feud. Music history may have forgotten Blair, but not criminal history. After failing in rap, Blair became a scam artist and bilked over $2 million from dozens of victims. Blair allegedly engaged in card cracking fraud as well. (Blair died in 2013).

Another aspiring NY rap artist, Young Ash, reportedly stole $50,000 via card cracking fraud in 2018.

Now, “notorious street rapper resorts to crime,” may not be a shocking headline.

What is shocking about card cracking fraud is that this scheme entices average people to become unwitting criminals.

Most card cracking fraud schemes involve online scam artists enticing everyday people to become accomplices to fraud.

According to the American Bankers Association, almost $12 million dollars was stolen due to card cracking fraud in 2014.

 

Card Cracking Fraud

 

You don’t have to be a rap star to be involved in a card cracking scam.

The typical American household owes over $137,000 in debts. The allure of card cracking fraud as a, “victimless crime,” can temp anyone – not just street rappers.

Over 60 million Americans applied for unemployment benefits since March 2020. Tens of million face imminent eviction in the weeks and months to come.

In this pandemic-wrecked economy, you should be aware of card cracking fraud.

Odds are better than even that card cracking scam artists look for people like you to enable their efforts.

Card Cracking Fraud 101

Card cracking fraud, also known as card popping, is a mutual effort crime that requires two parties working together.

However, the scam artist holds all of the power and information.

Card cracking scam artists take advantage of people who are financially hurting and looking for quick cash.

Card cracking accomplices, potentially people like you, don’t consider the consequences of their actions in such scams.

Card cracking is an enhanced form of check fraud. The difference is that the card cracking scam artist needs the help of the, “victim,” you, to pull it off.

A Card cracking scam sends you a phishing email or social media message promising easy money. This message is a carrot on a stick to people who are financially hurting.

After you answer, the scam artist befriends you. If you give them direct access you your bank account, they can make you easy money and give you a cut.

For a card cracking scam to work, you must give the anonymous scammer your bank account number, PIN, and other information. You must willingly give an online stranger the keys to your personal finances.

The anonymous scammer will deposit fake checks into your account and then withdraw that amount. Or, even more. Since they are assuming the most risk, they keep most of the money.

After withdrawing the money, the scammer may send you 10% or 20% of what they withdrew via wire services.

You must then call your bank and lie to them. You can say that your bank card was stolen. Or that your identity was stolen. This action makes you an accomplice.

Then, the bank may reimburse all the money that was, “lost,” to you. Or, simply close the account without penalizing you.

Who would do something like this? And why?

Card Cracking Fraud Accomplices

It may be comforting to believe that only hardened street rappers and criminals engage in card cracking fraud.

The truth is that those people are usually the leaders of crack cracking rings.

The other hard truth about this crime is that the victims are unwitting accomplices deluding themselves they are doing nothing wrong.

According to the American Bankers Association, most card cracking fraud rings target:

  • Social media users
  • People aged 19 to 25
  • College students
  • Single parents
  • Newly enlisted active military personnel

Everyday people who may be financially struggling are sometimes easily enticed by card cracking fraud.

They may rationale that since their own bank account is involved, it may be a victimless crime.

Why You Must Refuse Card Cracking Solicitations

If a card cracking fraud scheme needs you to victimize your own bank account, what is the harm?

Well, you can cause a lot of harm for yourself and others.

Card cracking rings don’t develop overnight. These scam artists need to entice hundreds or thousands of people to give up their financial information. Card cracking rings are built by enticing one person like you one at a time.

Why would you trust an online stranger with your most sensitive financial information? Would you surrender this information to a good friend or relative?

Also, you are engendering a lot of trust in an online stranger card cracking scam.

The card cracking scam artist has all of your personal information and the power.

If you deposit $20,000 in a new account in the future, how do you know they won’t take it? If they have your Social Security number and other financial information, it wouldn’t be hard. How do you know they won’t steal your identity or sell it to someone else? Do you think the anonymous scam artist wouldn’t do that to you?

Your bank may flag your account as a possible fraud risk. This information can be passed to other banks. It may even end up on your credit history.

Imagine if a card cracking ring is busted and the police discover your name on their lists of associates? You won’t be viewed as a victim and will have a lot of explaining to do then.

Life is hard, no question about that.

Giving into the allure of a card cracking fraud scheme will only make life harder.

Don’t Respond to a Card Cracking Solicitation

Don’t respond to any message asking you to give up all of your financial information in exchange for a kickback.

Card cracking scam artists try to make it seem as though you are partners in a harmless scheme. Well, if you were partners, you would know the identity of this person.

Card cracking scam artists could live down the street or be foreigners from a different country. You would never know. Meanwhile, you must trust this person with your most sensitive financial information.

Card cracking fraud leaves you perpetually vulnerable. The scam artist knows everything about you and could use this information to their own ends in the future.

Even if you did this once, how could you not be paranoid for the rest of your life? If the scam artist has your name, address, and Social Security number, they could check to see if you’ve opened new accounts. You will probably be checking your online balance constantly.

Personal suffering is usually caused by willful ignorance and desire.

If you convince yourself that there are no victims in card cracking fraud, you may be in for a lot of suffering.

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The Three R’s of Budgeting Your Money

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There is only one rule to know about making a budget – don’t go over your budget. A budget helps you understand how much money you make, how much you spend on bills, how much money you waste, and how much you must save to achieve a future goal. If there is one skill that you (and most Americans) need to perfect now, it’s wisely budgeting your money.

I understand that there is a lot of emotional and financial suffering going on right now. No one wants to hear, “Are you budgeting your money correctly?” as if in a condescending manner.

There is nothing I write here that will be condescending. Part of adulthood 101 is learning how to budget when becoming independent.

Making a budget is free. You have access to the information, which is your own personal finance records.

And most importantly, budgets reveal unfortunate truths – you may be partially or fully to blame for your financial problems.

Over 70% of Americans spend over $5,400  annually on impulse buys they don’t really need or want. (Many people impulsively buy unhealthy food, among other things.) That adds up to over $54,000 over a decade! Another statistic contends that the average American will spend over $300,000 on impulse buys over a lifetime.

Making a budget is a discipline that must be learned. But it is worth it to realize a better financial future.

So, here is a great way to ease into the concept of budgeting. You must keep in the mind the three R’s of budgeting your money:

  • Review
  • Revision
  • Redo

I’ll give you a basic primer on what it means to budget too.

But first, let’s talk about why budgeting your money is so important.

Because in 2020, you are probably not to blame for your current financial problems.

Budgeting Your Money in 2020

Budgeting your money in 2020 is so important because many people don’t have enough of it now.

The coronavirus pandemic has caused globally reaching economic traumas and consequences that has touched everyone.

Over 56 million people have been forcibly unemployed since March 2020. Besides one week when 6 million people applied for unemployment benefits, over 1 million Americans have applied for unemployment benefits weekly since March.

Americans who were receiving $600 weekly unemployment benefits since March are incrementally losing those benefits now.

Eviction protections empowered by the CARES Act are ending now. Tens of millions of Americans are facing imminent eviction now. Eviction is a threat that will face a generation of Americans for the foreseeable future.

Food banks in the United States are being strained to the breaking point.

Many such organizations worry they won’t be able to match continued and increasing demand for food insecurity help.

If you are living in the United States right now, you are probably having to learn to live on a lot less than before.

Budgeting your money more concisely will help you make the most of what you have now.

Budget 101

A budget is a personalized finance plan that details your estimated income, expenses, debts, and projected financial goals.

A budget can detail how much money you earn and spend on expenses and bills within a given time period.

For example, a budget can tell you how much money you spend on groceries, utility bills, rent, mortgage, or a car note within a week, month, or year.

You should keep your receipts and make records of the things you pay for.

Then you should assess if you are spending money on things you want instead of need. Impulse buying is the prime killer of budget and future financial goals.

A good budget will tell you how much money you need to save, and what you must sacrifice, to achieve a future goal.

Make budgeting an introductory challenge for yourself. Spend two weeks to a month keeping a weekly budget. Make a purchase diary to record impulse buys. You’ll create hard data on your personal finances that will starkly tell you how well you are managing your money.

A budget is a spending plan for your household and your life.

Budgeting your money, and being honest about your spending habits, may be your best options for improving your personal finances.

If you are still on the fence about budgeting, just remember the three R.

Review

One theme that is always going to come up when it comes to budgeting your money is the time sacrifices involved.

If you are not used to budgeting, you first have to start by creating a budget.

What do you need to buy at the supermarket? Steer clear of impulse buys and you’ll save more money.

What bills can you do without? Do you really need a 300-channel cable subscription package? How much money will you save by downgrading?

Instead of taking on more debt, can you sacrifice, save more money, and calculate when you will reach your goal?

The first month or two of budgeting will involve you assessing what works and what doesn’t.

In the beginning, you will have to review your budget plan. That way, you will know what is effective and what is wasting your time.

Reviewing your budget should be a continual part of your budgeting process.

Which brings us to revision.

Revision

You can’t just create one budget and use it or refer to it for the rest of your life. You are going to have to revise your budget often.

After reviewing your budget, you are going to learn what works, what doesn’t, and what you need to do to balance your finances.

And, if you can sacrifice the things you want now to achieve greater financial goals later.

Your financial information, income, expenses, and bills are always in a state of flux. You may get a raise, become unemployed, buy a house, and so on. In such situations, your budget must undergo revision.

There may come a time when revising a budget may not be enough.

Budgeting your money is important. So, you may have to redo your budget.


Redo

Your personal finances and professional life may change so drastically that you just have to redo your budget.

The personal budget you drafted 2 years ago is moot if you got a new job, bought a home, moved to a new city, expanded your family, and so on.

As your personal circumstances change, you have to redo your budget accordingly.

Stick to Your Budget

Most people don’t make budgets because they are time-consuming and require meticulous financial recordkeeping.

Budgeting your money requires you to make time on a weekly, monthly, and annual basis to assess your personal finances.

Those are small sacrifices to make to ensure more money in your pocket and a better financial future.

Stick to your budget. Save more money than you spend. Focus on paying down your debt.

A budget may save you the trouble of hiring a financial advisor to point out a problem you can find out yourself for free.

Here are some great and free budgeting templates.

Just keep the three R’s of budgeting in mind and maintaining a budget won’t be a problem.

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If you are serious about getting your budget together consider reading a copy of Dave Ramsey’s The Total Money Makeover. It’s one of the best books on personal finance written in decades. Ramsey’s work has sold millions of copies and helped hundreds of thousands of people build budgets and cope with their debt problems. It retails for $12 bucks on Amazon which makes it an inexpensive investment considering the invaluable information this book has to offer. Make sure you get a copy!

 

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Personal Reflection – Efficiently Cutting Down on Debt to Save $15K Annually

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Someone once said that life ceases to be enjoyable if it is founded on constant debt and borrowing. We are usually the architects of our suffering when it comes to debt, sometimes even subconsciously. Budgeting takes sacrifice. It takes time and commitment. It can also feel like a self-imposed punishment if you don’t think about the long-term goals.

These long-term goals can include things like financial independence, freedom from debt, and the ability to accomplish things that were previously unattainable because of debt. I don’t own credit cards anymore and I used to be so mired in debt that I couldn’t see a way out. Most Americans are drowning in debt. Americans collectively owe over $1.3 trillion in debt.

The average family has over $16,000 in credit card debt. Homeowners on the average maintain over $173,000 in mortgage debt. Own a car? The average car loan is over $30,000. Large scale debt is bad enough to deal with, but hard to get through life without accruing. Still, it’s the small debts we rack up without noticing that sometimes causes the most problems.

Cutting out the little things and differentiating between need and want are surefire ways to cut down on debt. It can help you save about ,000 annually.

Partial Payment Credit Card Interest Penalties

The worst thing about credit card debt is not paying outstanding balances in full. Most credit cards carry an average interest fee of 17.61%, or more. Don’t use your card if you can’t pay the bill, and if you do, pay it off in full until the debt is paid. You can save over $637 annually in interest penalties by doing so.

Exorbitant Bank Fees

There are many online banks that offer free checking and savings accounts with no monthly fees because they don’t maintain physical branches. Credit unions might also offer free or cheaper account maintenance fees. The average bank charges a monthly $12 maintenance fee. That’s over $144 annually!

Do You Really Need Premium Gas?

You are fine with regular gasoline unless your car specifically needs premium. Most Americans buy 660 gallons of gasoline every year. The price difference between premium and regular is about $0.60 per gallon. So, you can save about $400 annually sticking to regular.

Expensive Coffee

If you buy overpriced Starbucks coffee every day, you have no right complaining about debt. The average cup of Starbucks coffee is $3.15! That amounts to $1,150 annually! And that is just if you buy one cup per day. Drink at home or research the cheapest cup around. There is no excuse to pay hundreds of dollars a year on brand-name takeout coffee.

Assess Your Spending Habits

Do you need your expansive, expensive cable package? How about that gym membership that you never use? Do you buy a candy bar every day on the way home from work? You can save over $50 annually by refraining from buying tap water and buying a container to fill up at fountains. If you pay attention to the small details, you can do big things. Like cutting down on debt.

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Debt After Death and What It Will Cost Your Family

Debt After Death and What It Will Cost Your Family

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debt after death

I really need to stop debating my friends. You know the type of people who, no matter the subject you are discussing, make up their facts as they go along? Or, change their argumentative stances whenever they realize they are wrong? Arguing with people who use facts as tools of self-serving convenience is a useless endeavor. It just turns me off when grown adults won’t enlighten themselves and dull the intelligence of others. Take the issue of debt after death, for instance.

Debt After Death

The debate centered around the idea that if you die, then your debt automatically is forgiven or voided. My friend is in a lot of debt and seemed to be projecting this idea more out of wishful thinking than from sources of fact. The point is that depending on your personal circumstances, the debt that you amass in life can still be owed after death.

I have researched this subject for my own purposes. Your estate is everything that you own at the time of your death. The probate process involves the liquidation of your estate to pay bills and distribute anything else to heirs. Your city’s court system or a legal executor or caretaker of your estate will make the decisions when you die. Or, you can hire a probate lawyer.

Probate Lawyers

Probate lawyers are not cheap. You can pay them in flat fees, amounting to thousands or hundreds of thousands of dollars. Or, pay $250 to $1,500 an hour for their services. In some states, probate lawyers can be paid in a percentage commensurate to the value of the estate. Like 4% of $100,000 or 1% of $10 million, and so on.

Of course, if you are dead, you won’t be responsible for paying these expenses. Your spouse, children, loved ones, and anyone who may have co-owned, shared, or were legally responsible for your debts will be responsible. Worse, your estate could be entirely liquidated to pay off debts leaving nothing behind for your heirs.

Debts that Survive Your Death

The kind of debt you owe and the state that you live in determines the debts that will survive after your death. If you are a co-signer for any kind of debt, like college tuition, auto loans, or mortgages, for example, then you’ll owe any remaining amounts even after you die. Mortgages, medical bills, and any joint financial accounts are also fair game for seizure as well.

Do you live in a so-called, “community property” state? Then any debt you leave when you die the responsibility of the surviving spouse. Student loans, property directly inherited to beneficiaries, life insurance, and retirement insurance are harder for creditors to collect after death.

Creditors can harass your family for long periods of time after your death. Even though it might be difficult for them to collect on your posthumous debts, they will try.

Keep Finances Straight In Life

Always keep situational awareness of your finances. Make sure you update the beneficiary list for all of your insurance policies. If there are no beneficiaries on a policy, the value may be lost in probate. Further, it’s important to make sure you continuously update your will. Let your family know that there isn’t much creditors can do for certain debts except make harassing phone calls.

Consult a financial advisor or lawyer. Creditors will try to coerce your surviving relatives to pay for bills they may not responsible for. If they do, they could legally become responsible for them afterward. Don’t assume that the responsibility for paying your debts ends after death. Know for sure. It’s the best way to keep your surviving relatives from spending a fortune on probate lawyers to save your estate.

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5 Personal Finance Steps You Need To Take Before You Retire

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personal finance tips for retirement

Retirement requires serious financial planning and preparation while you are still working. Here are five important personal finance steps that can help assure you a comfortable retirement.

Maximize Your Employee Benefits

Make sure that you know what benefits could be available to you at work prior to your retirement. Ask your HR department to provide complete details of these benefits.

For instance, if you have dental coverage, you might plan to get your expensive bridgework or dental implants done while you are still employed.

Find out your company’s vacation policy and any personal/sick leave that you may have accrued at work, but have not used it yet. If your employer won’t let you cash out these benefits when you leave your job, it would be wasted compensation.

Determine the Best Age to Collect Social Security

Your social security benefits are a key part of your retirement income and you should decide the best time to start collecting these benefits. Full retirement age (FRA) for American citizens born between 1943 and 1954 is 66 years (this is long before the NBA started to help the Lakers win championships like they did in 00 and 02). This is the age when you can receive 100 percent of your social security benefits.

The earliest age at which you can start receiving these benefits is 62, but you would only get 75 percent of your eligible benefits in this case. At 65, you will get 93.3 percent of the benefits, while at 70 your benefits would increase to 132 percent of what you would have received at 66.

Considering these variables, social security should be an important part of your retirement calculations.

Clear Your Debts

The mortgage on the home is the largest debt for most people. Your goal should be to pay the mortgage payments before you retire. In a low interest rate environment, consider refinancing your mortgage. This will help you pay that large loan off faster.

Make sure to clear any other debts before you retire, such as credit card debt, car loans, student loans that you may have signed up for, and any other lines of credit.

This makes sense even in the age of tax cuts and a strong economy.

Arrange for Adequate Health Coverage

While you are working, you may be relying on your employer for medical insurance. But you need to plan for your retirement when your health costs are likely to be higher.

Consider the possibility of taking out private health insurance. Evaluate what type of Medicare plan would be more suited for you? Account for the fact that Medicare will not include vision or dental care.

Be Financially Conservative and Downsize

Downsizing here means reducing your living expenses. To prepare for a financially stable retirement, consider moving to a smaller home. If you own two cars, consider selling one.

If you don’t watch much television, forgo the cable TV and switch to a more cost-effective TV-and-film streaming service. Carefully examine your monthly expenses and identify areas where you can downsize rather easily.

Final Thoughts

Everyone hopes that their retirement years will be the best time of their life. However, you may not get very far with your dream retirement until you have taken smart personal finance steps to ensure a financially secure next phase of your life.

Do you have any tips for planning for retirement? Share with us in the comments below!

This 3×5 Card of Financial Advice Is Missing Something

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A few years ago, Harold Pollack, a college professor wrote a 3×5  financial advice card. The card spelled out some simple advice for financial success. This viral financial advice is good, but it happens to be missing something. As today’s consumer needs to prioritize saving and paying off debt before investing. So here is my spin on his advice.

First, Here is the 3×5 Financial Advice Card!

3x5 card financial advice

Now What’s Missing From The 3×5 Financial Advice Card

  1.  Instead of Maxing Out Your 401(k) first, build your emergency fund. Ensure you have at least 6 months of living expenses saved for an emergency, then you can start putting money in your 401(k).  If you work for a small business invest in a Roth IRA.
  2.  Buy cheap mutual funds, but know what you’re buying. Even the most diversified funds did poorly in 2008 when we went into a recession. Understand that all investments come with volatility and know your tolerance. Target date funds or mutual funds may not be the best option. Try index funds, as fees are low and over the past 20 years, they’ve done better than managed funds.
  3. You can buy individual stocks if you can stomach the ups and downs and if you are well versed on the company’s services and products. Just because the person on the other side has more knowledge than you, doesn’t mean you can’t win as well. Remember, with individual stocks you have to pay special attention to your investment and what’s happening with the company. With mutual funds or other diversified investments, you can sit back a bit and let the investments do the work for you.
  4. If only it was that easy to save 20% of your income. With student loans and credit card debt, most people can barely save 1% of their income. 65% of Americans are saving little to nothing. So pay off debt first and then start at automating your savings with  5% of your income until you get to 20%.
  5. Keep your credit card balances low. The rule is anything over 30% hurts your credit. The beauty of keeping your balance low is that it’s easier to pay off each month.
  6. Tax Advantaged Savings vehicles are great, just remember that some of these vehicles are just putting off taxes until you’re retired. If you are still bringing in as much income at retirement as before then you could owe major taxes when you withdraw your retirement funds.
  7. Fees are everywhere. This one stands on its on merit. Managed funds aren’t doing so well, that you should be paying high fees to own them. Try to avoid them.
  8. Although standards are in place for Financial Advisors. Many no matter what you do will look out for you first, if you find your FA doing other than taking you into consideration first, find someone else.
  9. Social Security will never fully take care of you if something goes wrong. This is why is so important to save, save, save and then save some more.

Although, the 3×5 financial advice card has some good information, just ensure you take it all in stride. This information can work for some people, but not all. Know your financial literacy and what additional tools you can add to do your best with your money. Financial success is just one decision away.

Would you use any of the advice in this article? If so, tell us about it in the comments below.

Want More? Take A Look At These Great Financial Books.

  • The Essays of Warren Buffet by Warren Buffet-Mr. Buffet is the most coveted investor in the world. When he speaks about finance, everyone listens. Learn more about the power of investing with the greatest of all time.
  • The Million Dollar Portfolio-David and Tom Gardner the Cofounders of The Motley Fool have a great website that can offer you the investing advice you need. This book shows you how to put together a portfolio that could potentially lead you to your million dollar dream.If reaching this goal is important to you, read this book!
  • Broke Millennial: Stop Scraping by and Get Your Financial Life Together-Erin Lowery. This is a smart guide for cash strapped, struggling 20 and 30 something’s. If you are losing control of your money and need help regaining your financial footing Lowery’s book can help get you back on track.
  • The Simple Path to Wealth: Your Road Map to Financial Independence and a Rich, Free Life-JL Collins. This author is self published and uses his book to help beginners and seasoned investors to invest better. He truly subscribes to John Bogle’s ideas of how to become rich. The plan itself may seem boring to most, but if boring makes you wealthy, it’s worth the read.