Category Archives: Budgeting & Money

MOOLAH MONDAYS: 4 Things You Should Do to Support Your Budgeting System

February 7, 2015Budgeting & Moneyautomatic drafts, bills, blessing, charity, consolidation, credit, credit cards, debt, dental appointments, doctor appointments, expenses, interest rate, priority, recurrent, tax, tax return, titheKurt Kirton

debt, list, drafts, tithe
Hello all those who want to better manage their money! This week, before this series wraps up next post, I have a few various bits of advice to support your budgeting system and financial efforts:

1. Make paying off debt a priority. Overpay your car or student loans (against the principle) as you have extra money. Implement debt consolidation if you need to. I agree with Dave Ramsey, and it just plain makes sense: Pay off your debts in order of which has the highest interest rate (not the highest balance due.)
2. Keep a document on your computer or Google Drive listing your 1. Donation amounts (or values, in the case of items) to charities; 2. Out of pocket health expenses you’re your co-pays on prescriptions and expenses for dental work after your benefits have run out for the year; and 3. Mileage to doctor or dental appointments. This information will help you complete your tax return when it comes time.
3. Keep a list of all the automatic drafts to your bank account or credit cards. This helps when reviewing your statements each month or if you have to change your credit or card number. You can have this list include how you receive payments from certain sites. For example:
• Airbnb.com earnings – Checking Acct
• Amazon sales – Paypal
• Car Insurance – checking account
• Dental insurance – Mastercard
• ebay invoices/fees – Mastercard
• ebay sales – Paypal
• Netflix – Mastercard
• Paychecks – direct deposit to checking account
• Security System – Mastercard

4. Finally, if you’re a Christian, you should tithe 10% on your earnings. Not only is this covered in scripture (Prov 3:9, 11:25; Mal 3:10), but I believe God will bless and provide for you if you do so. That has definitely been the case for me.

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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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