Here's a really simple way... to have your banking handled with no muss, no fuss... on the internet.
Traditionally you have been used to doing your banking by going in to a physical brick and mortar building and taking care of whatever banking business you had to take care of.
Whether it was opening an account, checking balances, depositing a paycheck, taking money out for living expenses, applying for a loan, paying a bill, moving money around from account to another or whatever.
Of course you had to make a special point of putting it into your schedule and arranging other tasks around it to accommodate your planned trip to the bank. Well, those days are over.
With the popularity of the internet during the last 5 years banking has never been easier or more convenient than it is today.
With the internet and online banking you can access your bank 24/7. Or as close to 24/7 as can be since there is always the time when the bank's website is not accessible due to website maintenance.
And you don't even have to get dressed to do your banking. I find this benefit very useful in the cold winter months when I can just sit in the warmth of my home and do my banking activities through my computer.
Nowadays, most large national banks, regional banks and even smaller local banks and credit unions have some form of online banking for both the convenience of their customers and for their convenience as well.
By allowing you to access their bank and your banking account they don't have to pay for someone to attend to your needs and they save money. They can pass that savings on to you through higher interest rates on your money.
In fact there are virtual banks that exist today that do not have a brick and mortar existence and exist solely online. Because of the great savings that they enjoy with that arrangement they offer some of the highest banking interest rates I have seen.
Another great benefit of online banking that I have been taking advantage of is online bill paying.
In the old days when I had to pay a bill I took the bill, wrote out a check, put it in the envelope, put a stamp on the envelopeand put it in the mail, hoping that it arrived on time so I wouldn't be assessed a late fee.
Now I can just get on the internet and get on the website of the place where I am paying the bill, hit a few keys on the keyboard of my computer and the bill is paid, saving a stamp and a lot of time and worry about the reliability of snail mail.
Another great advantage of internet banking is the concept of direct deposit.
Using direct deposit your employer can now take your paycheck and automatically deposit the money in whatever banking account you designate. That way you don't have to worry about getting the money into the bank in time to pay your big bill coming up. Now having the money in the bank and the paying of the bill can be done electronically.
And now dealing with the IRS has been made somewhat easier with the arrival of internet banking.
Now you can file your return and if it turns out you owe Uncle Sam some money you can pay it electronically by submitting your banking information with your return. If the IRS owes you a refund they can send it to you using that same banking information. And, it is all done more speedily than it was in the old days using snail mail. If you are due a refund you will be very happy to get your money sooner.
As you proceed into the 21st century you can take advantage of the progress that the banking industry has experienced in the
last few years. You will find many ways to make what used to be
considered a drudge or a necessary evil into some thing that is
more pleasant and less time-consuming to deal with.
So if you haven't experienced online banking, give it a try. You'll probably like it!
Friday, November 28, 2008
Multiple Streams Of Income Are Key To Staying Afloat
In today’s society it is practically impossible to stay on top of bills, increasing gas prices and extraneous financial obligations with just one job. What’s more, it is becoming increasingly scary to rely on one stream of income because the economy is so shaky. Who knows when that one lifeline will falter? Many people are discovering that the way to stay afloat in today’s rapidly fluctuating market is by using multiple streams of income. This simply means drawing funding from various venues.
One venue that many people find convenient to their schedules and their lives is taking part in an Internet business. Since lots of people are only using their Internet businesses as one of several streams of income, they only do it on a part time basis. There are lots of opportunities on the Internet to earn multiple streams of income, including starting an ebay business, taking part in an affiliate program, making contacts for freelance work, and writing and selling an ebook. The flexibility of working a business on the Internet is valuable for many people who also work other jobs, and especially for those with loved ones who need to be taken care of.
Other off-the-web venues that people use as multiple streams of income include real estate, starting a small independently owned business, mail and phone-based freelance work, and childcare. Many of these businesses are owned and operated out of people’s homes, which is time effective for people who are multi-tasking.
If you are planning on using multiple streams of income to stay on top of your growing pile of bills, remember that it is important to think about your personal needs as well. Make sure that you still have enough time to sleep, eat, and spend quality time with loved ones. Time efficiency is very important, so think about cutting down on commuting by multi-tasking from home, or by commuting only to one job. Though more complicated than relying on one job alone, using multiple streams of income can be an effective way to ensure your financial stability.
One venue that many people find convenient to their schedules and their lives is taking part in an Internet business. Since lots of people are only using their Internet businesses as one of several streams of income, they only do it on a part time basis. There are lots of opportunities on the Internet to earn multiple streams of income, including starting an ebay business, taking part in an affiliate program, making contacts for freelance work, and writing and selling an ebook. The flexibility of working a business on the Internet is valuable for many people who also work other jobs, and especially for those with loved ones who need to be taken care of.
Other off-the-web venues that people use as multiple streams of income include real estate, starting a small independently owned business, mail and phone-based freelance work, and childcare. Many of these businesses are owned and operated out of people’s homes, which is time effective for people who are multi-tasking.
If you are planning on using multiple streams of income to stay on top of your growing pile of bills, remember that it is important to think about your personal needs as well. Make sure that you still have enough time to sleep, eat, and spend quality time with loved ones. Time efficiency is very important, so think about cutting down on commuting by multi-tasking from home, or by commuting only to one job. Though more complicated than relying on one job alone, using multiple streams of income can be an effective way to ensure your financial stability.
How to manage your checking account
Protect yourself against the possibility of writing bad checks.
The most important thing that you need to do in order to manage your checking account is simple: keep track of all of your transactions. This might be annoying if you end up writing a lot of small checks for small things, but in the end it will definitely be worth it. By writing down each check you write and the amount that they were for, you'll know exactly how much money you have to spend, how much you have spent, and whether or not you can afford what you are buying.
There are a lot of good reasons to know where all of your money is going. However, they are not the only reasons why you should learn how to manage your checking account. Let's say you are not keeping track of the amount of money that is in your checking account. You know that you are getting close to the end of your money, due to it being near the end of the month, but you're not entirely sure. Therefore, you write your last check - and it bounces. Bounced checks are not only embarrassing, but they will result in a lot of lost money for no reason other than that you were careless. First of all, most establishments will charge you extra fees for bounced checks - and may not allow you to write checks in the future. Second, most banks have hefty overdraft fees - and you don't want to waste your money paying those.
The next thing that you should do if you're trying to learn how to manage your checking account, is to try and make sure that you always have a few hundred dollar buffer in your account. This is not just to pad against overdraft fees and bounced checks, but can actually come in handy. For instance, it's always possible that there could be an emergency situation in which you need some extra money - in which case having extra dollars in your checking account could be a life saver.
When it comes to managing checking accounts, these are really the most important things that you should do. Always make sure that you have extra money in your account - and keep track of your expenses!
The most important thing that you need to do in order to manage your checking account is simple: keep track of all of your transactions. This might be annoying if you end up writing a lot of small checks for small things, but in the end it will definitely be worth it. By writing down each check you write and the amount that they were for, you'll know exactly how much money you have to spend, how much you have spent, and whether or not you can afford what you are buying.
There are a lot of good reasons to know where all of your money is going. However, they are not the only reasons why you should learn how to manage your checking account. Let's say you are not keeping track of the amount of money that is in your checking account. You know that you are getting close to the end of your money, due to it being near the end of the month, but you're not entirely sure. Therefore, you write your last check - and it bounces. Bounced checks are not only embarrassing, but they will result in a lot of lost money for no reason other than that you were careless. First of all, most establishments will charge you extra fees for bounced checks - and may not allow you to write checks in the future. Second, most banks have hefty overdraft fees - and you don't want to waste your money paying those.
The next thing that you should do if you're trying to learn how to manage your checking account, is to try and make sure that you always have a few hundred dollar buffer in your account. This is not just to pad against overdraft fees and bounced checks, but can actually come in handy. For instance, it's always possible that there could be an emergency situation in which you need some extra money - in which case having extra dollars in your checking account could be a life saver.
When it comes to managing checking accounts, these are really the most important things that you should do. Always make sure that you have extra money in your account - and keep track of your expenses!
Getting A Credit Card With Bad Or No Credit
So you have decided that you want to get a credit card only you may have credit that is not so hot or even no credit history what so ever. Many consumers wonder how it is possible to build a credit history with no credit or credit that might not be so swell. Surprisingly enough it is very possible for consumers finding themselves in these two particular situations to begin building a solid credit history without having to have a traditional credit card.
A secured credit card would be quite simple for someone with no credit or less then perfect credit to be able to qualify for and receive. All you need to do is complete the application for the secured credit card and make the required security deposit. After those two steps are completed you are well on your way to building a solid credit history. Just keep in mind that you need to apply for a secured credit card that will report all of your credit activities to all three of the major credit reporting agencies.
Department Stores such as Sears and Macy’s will often take a chance on someone who may not have any credit and give them a credit card. So if your luck hasn’t been great in applying for traditional credit cards try your luck in applying for a department store card to use as a tool to start a solid credit history foundation.
Many gas stations will allow people with tarnished credit or no credit history to have a gas station credit card. If you are in either of these situations try applying for a card at your local gas station to begin building a credit history.
These are just a few suggestions of steps that you can take to start building a credit history if your credit record may not be so good (or non existent). With a little creative thought and research you will be well on the way to getting the credit and the credit cards that you deserve.
A secured credit card would be quite simple for someone with no credit or less then perfect credit to be able to qualify for and receive. All you need to do is complete the application for the secured credit card and make the required security deposit. After those two steps are completed you are well on your way to building a solid credit history. Just keep in mind that you need to apply for a secured credit card that will report all of your credit activities to all three of the major credit reporting agencies.
Department Stores such as Sears and Macy’s will often take a chance on someone who may not have any credit and give them a credit card. So if your luck hasn’t been great in applying for traditional credit cards try your luck in applying for a department store card to use as a tool to start a solid credit history foundation.
Many gas stations will allow people with tarnished credit or no credit history to have a gas station credit card. If you are in either of these situations try applying for a card at your local gas station to begin building a credit history.
These are just a few suggestions of steps that you can take to start building a credit history if your credit record may not be so good (or non existent). With a little creative thought and research you will be well on the way to getting the credit and the credit cards that you deserve.
Developing a Successful Home Budget
This is probably the most requested topic that I receive, normally after someone gets a large unexpected expense, or they start thinking about retirement and realize that they have saved a woefully inadequate amount of money.
I recommend using a monthly time-frame to look at your cash inflows and outflows, because most bills are monthly and four weeks is a short planning period that most people can manage. The first thing to do is determine your monthly after-tax income. Usually, this is the amount of money from your paycheck that gets deposited into your checking account. If your income is variable, then use an average of the last three months. (Any savings account interest income would be a bonus.) Next, list out your fixed monthly expenses, such as rent, mortgage, car payment, phone, electric bill, etc. All of these numbers can be changed in the long-term, but first you need to determine a baseline budget of where you are right now.
Make sure you include all of your utilities; some are only paid quarterly or annually, like car insurance, the water bill, or an association fee. Take these expenses and calculate what they would be on a monthly basis. For example, if your water bill comes quarterly, divide it by 3. If you have semi-annual car insurance, then divide it by 6.
So now you have your fixed monthly income and your fixed monthly expenses. Deduct one from the other, and you have the variable amount of money that you are free to spend any way you want for the remainder of the month. From this remaining amount of money, start listing out your main categories of variable spending: groceries, entertainment, medical expenses, clothing, dry cleaning, personal care (haircut, nails, etc.), and gifts. Take each of these variable expenses and put an amount next to them that you think represents your average monthly spending for that category.
Make as many subcategories as you need to make an accurate estimate. The more precise it is for your spending habits, the more effective it will be for you. For example, food can be broken down by grocery store/fast food/dining out/work lunch/etc. Then go through the last few months of your checkbook and credit card statement looking for any spending that hasn’t been covered so far that you need to include for your situation.
Now you should have a total number for your monthly income, total monthly fixed expenses, and total monthly variable expenses. The moment of truth is when you deduct the two expenses from your income to see if there is anything left over. Don’t panic if it is a negative number – it is far better to discover this out now, rather than building up credit card debt later. Most people comment somewhere along this process, “Oh, so that is where my money is going. I had no idea I spent so much on that!”
Seeing all the numbers in black & white can help you prioritize (and negotiate with all the other spenders in the family). From this beginning budget, you can start to set monthly targets for spending categories, you can focus on reducing the largest expenses, and find areas where you should start doing some price-comparison shopping. And did I mention that saving a 5-15% of your income should be an additional fixed expense? Yes, you need to pay yourself first!
Having a budget is the critical first tool in managing your money. Wielding this tool allows you to finally start making financial decisions based on the facts instead of fiction. You can plan for expenses instead of being caught by surprise. And most importantly, figure out how to move forward with goals like a big vacation, a new car, or investing.
I recommend using a monthly time-frame to look at your cash inflows and outflows, because most bills are monthly and four weeks is a short planning period that most people can manage. The first thing to do is determine your monthly after-tax income. Usually, this is the amount of money from your paycheck that gets deposited into your checking account. If your income is variable, then use an average of the last three months. (Any savings account interest income would be a bonus.) Next, list out your fixed monthly expenses, such as rent, mortgage, car payment, phone, electric bill, etc. All of these numbers can be changed in the long-term, but first you need to determine a baseline budget of where you are right now.
Make sure you include all of your utilities; some are only paid quarterly or annually, like car insurance, the water bill, or an association fee. Take these expenses and calculate what they would be on a monthly basis. For example, if your water bill comes quarterly, divide it by 3. If you have semi-annual car insurance, then divide it by 6.
So now you have your fixed monthly income and your fixed monthly expenses. Deduct one from the other, and you have the variable amount of money that you are free to spend any way you want for the remainder of the month. From this remaining amount of money, start listing out your main categories of variable spending: groceries, entertainment, medical expenses, clothing, dry cleaning, personal care (haircut, nails, etc.), and gifts. Take each of these variable expenses and put an amount next to them that you think represents your average monthly spending for that category.
Make as many subcategories as you need to make an accurate estimate. The more precise it is for your spending habits, the more effective it will be for you. For example, food can be broken down by grocery store/fast food/dining out/work lunch/etc. Then go through the last few months of your checkbook and credit card statement looking for any spending that hasn’t been covered so far that you need to include for your situation.
Now you should have a total number for your monthly income, total monthly fixed expenses, and total monthly variable expenses. The moment of truth is when you deduct the two expenses from your income to see if there is anything left over. Don’t panic if it is a negative number – it is far better to discover this out now, rather than building up credit card debt later. Most people comment somewhere along this process, “Oh, so that is where my money is going. I had no idea I spent so much on that!”
Seeing all the numbers in black & white can help you prioritize (and negotiate with all the other spenders in the family). From this beginning budget, you can start to set monthly targets for spending categories, you can focus on reducing the largest expenses, and find areas where you should start doing some price-comparison shopping. And did I mention that saving a 5-15% of your income should be an additional fixed expense? Yes, you need to pay yourself first!
Having a budget is the critical first tool in managing your money. Wielding this tool allows you to finally start making financial decisions based on the facts instead of fiction. You can plan for expenses instead of being caught by surprise. And most importantly, figure out how to move forward with goals like a big vacation, a new car, or investing.
Check Your Bank Statements Every Month, If You Don't You May Be Losing Money In Unexpected Ways.
Awhile back I got the dreaded letter from the bank saying you are overdrawn. I couldn't believe it, I wondered what the heck did I do?
Then I opened it up and I was overdrawn by over a thousand dollars and I was real concerned.
I called the bank and they told me the $3000 dollar check that I had written was insufficient. Well I did not write a check for that amount but they assured me I did and told me where to.
I couldn't believe I could do something so foolish but I called the company that I had written the check to and they said yep, that was what I wrote it for, and I was overpaid on my account.
Then we had to start the process of me getting the money back that I had overpaid, in the meantime I needed to do a quick transfer or I would have more insufficient checks.
After I got the check covered and started the return process of getting my money back I got to thinking I couldn't have done anything that dumb.
So I called the bank and asked them if they were sure I had wrote it for that amount and she assured me they check those kinds of things, I still didn't believe her so I went down there and said I wanted a copy of the check.
Low and behold I HADN'T been stupid and wrote a 300 dollar check for 3000. The company I wrote it to had encoded it wrong and the bank didn't catch it.
So after apologies from the bank and their assurance they would fix things right up for me I called the other company back and asked them if they were sure I had made the mistake. She also assured me they always check these kinds of things. Then I said then how come I am holding the check and it is obviously written for only 300.00. She didn't have much to say then and they assured me they would fix things right up.
In talking to her she said she just assumed the fault was mine because even if they had made the mistake one of our banks would have caught it, yeah right.
So while most of you would notice a 2700 difference like I sure did, we may not notice those pennies and nickels if we don't check every month.
Because the only one looking after your account carefully will be you!!
Then I opened it up and I was overdrawn by over a thousand dollars and I was real concerned.
I called the bank and they told me the $3000 dollar check that I had written was insufficient. Well I did not write a check for that amount but they assured me I did and told me where to.
I couldn't believe I could do something so foolish but I called the company that I had written the check to and they said yep, that was what I wrote it for, and I was overpaid on my account.
Then we had to start the process of me getting the money back that I had overpaid, in the meantime I needed to do a quick transfer or I would have more insufficient checks.
After I got the check covered and started the return process of getting my money back I got to thinking I couldn't have done anything that dumb.
So I called the bank and asked them if they were sure I had wrote it for that amount and she assured me they check those kinds of things, I still didn't believe her so I went down there and said I wanted a copy of the check.
Low and behold I HADN'T been stupid and wrote a 300 dollar check for 3000. The company I wrote it to had encoded it wrong and the bank didn't catch it.
So after apologies from the bank and their assurance they would fix things right up for me I called the other company back and asked them if they were sure I had made the mistake. She also assured me they always check these kinds of things. Then I said then how come I am holding the check and it is obviously written for only 300.00. She didn't have much to say then and they assured me they would fix things right up.
In talking to her she said she just assumed the fault was mine because even if they had made the mistake one of our banks would have caught it, yeah right.
So while most of you would notice a 2700 difference like I sure did, we may not notice those pennies and nickels if we don't check every month.
Because the only one looking after your account carefully will be you!!
Budgeting For Emergency Funds?
Emergency funds are considered to be a necessity as far as financial security is concerned, since it can provide one with financial resources that one can resort to and depend on when an emergency arises such that when one is sick and have the burden of paying huge medical bills, or unexpected home or major car repair.
When one has no emergency fund, one can be obliged to acquire debt on your credit card that might take several years to repay with interest that would later cost so much more.
However by putting an extra thirty to fifty dollars every month in an individual “emergency savings account” one can be secured with what emergency the future may bring. In doing this, it is recommended that one regards the emergency fund as an additional bill, to be punctually paid each month.
Yes, one can and should budget and allocate the extra money for emergency fund, as this is very significant when one refers to his “financial future”. Here, the goal is to create savings from budgeting your income; the emergency savings should ideally be equal to at least three months your living expenditures.
What's important is that you should steadily put a certain amount of money aside, and only use it for real emergencies.
Not like an investment, the success of one’s long-term savings funds does not really count on the amount of return or interests but on placing a fixed amount of money away constantly and steadily so to have immediate access to it at all times.
In spite of one’s financial status, the initial step in the process of constructing an emergency fund is by knowing where your money is presently being consumed or spent.
When one recognizes and determines where one’s earnings are spent, then it will be easy for one to choose and make a decision where to trim down expenses. In other words, budget.
Budgeting is putting or setting aside money for anticipated and unanticipated future use. It is here that one sets up a goal so as to save. So set an emergency fund as your goal.
Checking, savings, money market accounts and “certificates of deposits”, are great places to keep one’s cash that might be needed on quick notice.
The amount saved from budgeting can either go to your savings goal, emergency fund or both. One could utilize the money saved from budgeting financial expenses by saving half of it to your savings account and half of it for emergencies. This way, you achieve your goals in savings and at the same time put in funds for emergency use. It’s your choice.
When one has no emergency fund, one can be obliged to acquire debt on your credit card that might take several years to repay with interest that would later cost so much more.
However by putting an extra thirty to fifty dollars every month in an individual “emergency savings account” one can be secured with what emergency the future may bring. In doing this, it is recommended that one regards the emergency fund as an additional bill, to be punctually paid each month.
Yes, one can and should budget and allocate the extra money for emergency fund, as this is very significant when one refers to his “financial future”. Here, the goal is to create savings from budgeting your income; the emergency savings should ideally be equal to at least three months your living expenditures.
What's important is that you should steadily put a certain amount of money aside, and only use it for real emergencies.
Not like an investment, the success of one’s long-term savings funds does not really count on the amount of return or interests but on placing a fixed amount of money away constantly and steadily so to have immediate access to it at all times.
In spite of one’s financial status, the initial step in the process of constructing an emergency fund is by knowing where your money is presently being consumed or spent.
When one recognizes and determines where one’s earnings are spent, then it will be easy for one to choose and make a decision where to trim down expenses. In other words, budget.
Budgeting is putting or setting aside money for anticipated and unanticipated future use. It is here that one sets up a goal so as to save. So set an emergency fund as your goal.
Checking, savings, money market accounts and “certificates of deposits”, are great places to keep one’s cash that might be needed on quick notice.
The amount saved from budgeting can either go to your savings goal, emergency fund or both. One could utilize the money saved from budgeting financial expenses by saving half of it to your savings account and half of it for emergencies. This way, you achieve your goals in savings and at the same time put in funds for emergency use. It’s your choice.
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