All posts by Kurt Kirton

About Kurt Kirton

Song and book writer from MS now living in Nashville, TN. Marketing and graphic design background. Regular blogger on topics surrounding the subject of job searching. View all posts by Kurt Kirton →

MOOLAH MONDAYS: 5 Tips to Improve Your Relationship With Your Credit Card

January 24, 2015Budgeting & Moneyadvance cash, bank loan, budget, credit, credit card, credit history, credit score, debt, interest, interest rate, money management, spendingKurt Kirton

credit card, debt, interest rate, spending — Photo by mangtacio

Mmm, credit cards. For some, just the thought causes a twinkle in the eye and visions of the wondrous things that can be had now without waiting. For others, these two words serve as stressful reminders of the thousands in debt they have along with the high interest rates that ride the coattails of each balance.

While some may rail against credit cards–Dave Ramsey comes to mind–I think about credit cards like most pleasures in life, “Everything in moderation.” A credit card is usually required to put down a deposit on a hotel room and can come in handy when shopping online or establishing a credit history. Here are 5 important tips about choosing and using credit cards.

Points – In a previous post, I heralded the joys of the points you can earn with some credit cards (and am using mine for another international trip this year getting at least a $300 discount on my airfare.) So check out that post if you’re considering signing up for a card that earns you something. But I can’t stress this enough: if you qualify for one of these cards, why not have the card work for you? Be sure when choosing any credit card to check if there’s a yearly fee.
Have only one back up credit card – If you are hanging on to more than one credit card you rarely use, it can affect your credit score negatively. Call to cancel those cards, then cut them up where the numbers can’t be read, and throw them away.
Pay off your credit card balance monthly – I do not like the thought of paying interest on anything. Obviously to do this, you’ll want to spend no more on your card than you can afford to pay off each month. With discipline and a little conscientiousness, it can be done.
Keep a List – Keep a list of all the credit cards in your wallet or purse (and the contact phone numbers for each company) in case it’s ever lost or stolen. In that situation, you’re already stressed enough dealing with the loss of everything else that was in there. This will make cancelling the cards faster and easier.
Loans – And on a related note, avoid taking mini-loans from your bank or cash advance establishments like Advance Financial. These will not earn you points, and interest rates can run high. You also may end up forming a bad habit of using them as a go-to every time something big you want is on sale, when have a large unexpected expense, or when you’d like to take a trip.

In closing, if you are working to pay off debt, I do agree with Dave Ramsey on this point: Pay down the cards or loans you have with the highest interest rate first. Repair your credit score if need be, and work toward best practices when using credit cards.

Can you recommend any specific credit cards you’ve had good experiences with? What advice would you give a college student getting his or her first credit card?

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MOOLAH MONDAYS: 3 Ways You Should be Saving to Maximize Interest Earned

January 8, 2015Budgeting & Moneybudget, cash, discretionary income, Franklin Templeton, ING, Ivy Fund, money management, overdrawn, savings, savings account, spendingKurt Kirton

savings accounts investments — Photo by 401(K) 2012 at Flickr Creative Commons

Having some money in savings can be a great way to reduce stress, especially if you are self-employed. A cushion of a few thousand dollars to draw from when you need it can be a lifesaver in the months where you don’t quite make enough to cover your expenses. And it’s always good to have some money set back for emergencies or unforeseen expenses.

Consider different tools for your short, mid, or long term savings to maximize interest earned. Here’s an example of each type of savings and suggested funds.

Short Term – This is money you’ll need in several months, but not so quickly that you’d want to store it in your checking account. Examples: That vacation you’ll take in a few months, new furniture you need, or your upcoming move across town. Access to this money is pretty easy, but the interest earned is low.

I only keep a savings account as a small backup to my checking account. Something like a CapitalOne 360 (formerly ING) Orange account will usually have a higher interest rate than a traditional Savings Account (around .02% last I checked). The Orange account interfaces with your checking account for easy withdrawals/transfers.

Mid Term – This savings is more for things you’ll need the money for in a year or so–like renovating your kitchen or a project you’re eventually launching. You should also store your emergency funds in this type account. This fund may involve jumping though a few hoops to get the money out but with no penalties. It may also have withdrawal minimums or stipulations. Interest is higher than with the short term type savings account discussed earlier.

I recommend a Franklin Templeton Income Fund (class C) in conjunction with a Money Fund. The Money Fund is the one through which you can withdraw money from the Income Fund when needed.

Long Term – This is for money you should not touch until retirement. Early withdrawals will usually involve penalty fees. However, interest here is the highest of all 3. I like the Ivy Fund I have—managed well and it has a good interest rate and performance history.

Meet with (or even better secure the services of) a financial planner for more suggestions and account information. Note: Financial planners usually make money on a small portion of the interest generated by your accounts which the firm is managing, so there’s not a cost to you to use a financial planner.

Always check out your prospective financial planning firm before making investments. Contact the US Securities and Exchange commission (www.sec.gov) to ask about any complaints or legal infractions. Make sure the firms is a member of the SIPC. Get written or emailed confirmations of your transactions. And (if you’re not making deposits directly to the respective fund like I do and you’re doing it through your financial planner) make sure any deposits are made payable to your SIPC member brokerage firm, not to your account exec. (“How Safe Are Your Savings,” by Armond Budish, Family Circle, January 14, 2003.)

What investments have you had good results with?

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GUEST BLOG: What’s On Your Bucket List? (Why You Should Make a Bucket List Instead of New Year’s Resolutions)

December 28, 2014Adviceachievement, ambition, bucket list, family, friends, goals, me time, new year’s, planning, resolutions, travelKurt Kirton

bucket list, goals, achievement, travel, me time, resolutions, new year’s, ambition, planning — © 2008 Warner Brothers

As Christmas 2014 closes and the New Year approaches, where did the year fall short? Maybe this was a great year, and you would rather stay in the moment; but for others, turning the calendar can’t happen fast enough.

At the beginning of each New Year, people automatically turn to goal setting and thinking about where they “fell off the wagon” again on losing weight, getting organized, saving money and exercising more—all in the Top Ten Resolutions each year according to USA.gov. Maybe you got the promotion you wanted, and you lost the 45 pounds you needed to take off. Now you are wondering how you repeat it again next year.

If you are like my friend Dave, you can’t wait to start a new year. Dave had major surgery and was in a car wreck, causing him to miss more than a month of work and setting him back thousands in medical bills—plus having to buy a new car. 2015 can’t get here fast enough for him, but how do you reset and start to think about the upcoming year?

I totally changed my mind a few years ago after watching the movie The Bucket List. The main plot follows two terminally ill men on a road trip with a wish list of things they want to do before they kick the bucket. I was thinking about my New Year’s Resolutions and why it takes a death sentence to get us thinking about travelling to exotic places, courage to go sky-diving, and spending quality time with loved ones. I decided to forego New Year’s Resolutions and make my own personal bucket list each year.

Before you start thinking I’m morbid, I put together a few parameters for developing my list each year. I promise it’s tons more fun and insightful than a New Year’s Resolution list.

Target items that are relational: I try to target 1-3 groups of people or individuals who are especially important to me but due to distance or busyness, we don’t get to spend the quality time we’d like. For instance, my friend Sarah moved out-of-state ten years ago. She is a special person to me and my entire family, so I wanted to carve out some time for just the two of us to spend time together as well as with our families. We planned a long weekend together in Florida, courtesy of her frequent flyer points and going during the off-season to save money. It allowed us to have hours of conversation catching up instead of just text or emails. We had our families spend time together at her house one weekend too. Once, I planned a “Cousins’ Reunion Weekend,” realizing that we had not seen each other since our parents had all passed away. It was such a great time that we decided to make it an annual tradition. So you see, you just need to be intentional about the relationships you want to give attention to.
Make your list no longer than five items: This requires you to put real thought behind everything on your list. Make a couple of them more achievable so you can check them off or give yourself a pat on the back. A few need to be a stretch goal, where there is time allocation, logistics, or financial challenges involved with achieving the goal. Just the anticipation of planning and preparing for something adds excitement.
Include things that involve personal growth: Ask yourself is there is something you have always wanted to do or destinations you’ve wanted to see? Maybe you have always wanted to play the piano or visit the homeland of your immigrant grandparents. Schedule the lessons, or plan the travel. You will feel twice the satisfaction because you are doing something for yourself—something most of us neglect.
Put your bucket list items on your calendar early: Go ahead and schedule a date for each bucket list item. You are half way to accomplishing something if you get it on your calendar, even if you still have to finalize details. If your bucket list item involves scheduling time with others, this step is even more important because schedules tend to fill up as the year progresses.

Don’t wait till January to start thinking. Put your bucket list together, and get moving. It will be more fun and meaningful than New Year’s resolutions. I would love to hear some of the bucket list items you put on your list for 2015.

Ruth Smith
authorruthsmith@gmail.com
authorruthsmith.com

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