I’m a big basketball fan, so I’ve been pretty much glued to my TV the last few weeks watching the NCAA Basketball Tournament. And while I love the tournament, the only downside to catching the excitement live are all the commercials. And I have seen a ton of commercials over the last month. Continue reading “What’s the Point of Carrying a Prepaid Debit Card?”
Sometimes the conversations I find myself having with friends take unexpected turns. Recently we had a conversation about “best things.” Maybe it started with the Food Network’s The Best Thing I Ever Ate show and our conversations about good food. Continue reading “The Best Thing I Never Bought”
Here we go again! Yet another celebrity has filed for bankruptcy. Dionne Warwick owes over $10 million in accrued penalties and interest from back taxes along with other debts and this combination of debts drove her to insolvency. (Couldn’t her psychic have warned her about this???) She has an income of $21,000 per MONTH and expenses to match plus, lots of debt on top of that! Hey, with that kind of financial track record we should send her to DC as a member of Congress. If it sounds like I’m a bit less than sympathetic here, it might be because my initial reaction is one of frustration. Here’s why: Continue reading “Another Celebrity Bankruptcy…”
Last week we released our 2012 Year in Review research, and there were several troubling statistics that came out of the report. For starters, only 51% of employees reported having an emergency fund, which means there are 49% that are vulnerable to a financial setback should some unexpected expense come along. Another troubling statistic was an increase in the percentage of employees that reported taking money out of their 401(k) as either a loan or hardship withdrawal. Such early distributions can greatly impact if and when these employees will be able to retire. As a result of sending out our research, we received the following three questions from a reporter: Continue reading “What We Can Learn From 2012”
As though we needed a new reason not to use credit cards, this week a recent settlement between retailers and banks may end up costing consumers at the checkout counter. That’s because as of last Sunday, January 27th, merchants are allowed to charge up to an additional 4% on purchases when consumers use a credit card at the time of purchase. Continue reading “Another Reason to Cut Up Your Credit Card”
One of the things that I believe is that one of the best ways to learn how to do something well is to learn from someone who is already doing that thing very well. It’s a long established tradition. When we want to improve our golf game, we get lessons from a pro. When we want to make progress in our fitness levels, we can work with a personal trainer. When we want to create a new dinner, we can turn on the Food Network and, after salivating because of the absolutely amazing way that some of the dishes are prepared, find a new dish to put on your dinner table. This concept can be translated directly into the financial world and recently it has. This article from FICO talks about the habits of those with credit scores over 785, which places them in the top 25% of all credit scores. Continue reading “What We Can Learn From the Top 25% of Credit Scorers”
I guess it’s no mystery who is responsible for keeping track of where the money goes in my household. As a financial planner, you might call it an occupational hazard, but what frustrates me the most is that I’m not the one that is regularly spending the money. Susan is primarily responsible for clothes, groceries, and other household expenditures that are required to maintain a household of six. Continue reading “Do You Really Know How Much Is In Your Checking Account Right Now?”
Susan and I have been married for seventeen years, and when we were first married, we decided to pool our financial resources and have one checking account. This made sense since at the time, we shared all of our expenses. In fact, for most of our married life we have maintained a joint checking account, but several years ago, I asked Susan to open her own checking account. With all of the different inflows and outflows of money, it was getting harder and harder to keep track of how much was available at any point in time, so I asked her to open a separate account as a way for us to keep better track of how much we could spend on food, clothing, and other expenses associated with running a household of four kids on a daily basis. Continue reading “Should Married Couples Have Separate Accounts?”
It is commonly known that money is the leading cause of marital problems. As a financial planner working with couples for over 25 years, I have seen why. Couples often take the wrong approach to love and money, thinking that love and money don’t mix. Continue reading “Money and Marriage: The Missing Manual”
In his blog post last week, Michael Smith wrote about a woman who was able to overcome tens of thousands of dollars in medical debt by giving up a variety of comforts, working a second job, and even having her friends host a local fund raiser on her behalf. When Michael last spoke to her, she was only 3 months away from paying off all the debt. This is a truly inspiring story about what can be achieved through sheer willpower and determination. Continue reading “What To Know If You’re Considering Bankruptcy”
One of the common complaints I hear from people who are trying to get out of debt is they are financially strapped. “How can I pay down debt when I can barely make ends meet?” Since the economic downturn in 2008, overtime pay has gone away, salaries were cut and haven’t come back up, and those who lost jobs and found new ones are unfortunately getting paid less. It’s tough to find extra money to pay off credit cards and other loans but it can be done. Continue reading “Show Me the Money — to Pay Down Debt”
As we move farther away from the height of the Great Recession, many employees appear to have put it behind them, since we are seeing stress levels due to financial concerns steadily decreasing over the past few years. This drop in financial stress levels is based on recent trend analysis research that I wrote about last month for our 2012 Special Report on Financial Stress. Continue reading “Do Employees Have A False Sense of Security About Their Finances?”
Although there are some that say the recession is behind us, there are still others that are continuing to deal with its effects. I recently had an opportunity to speak with a gentleman who finds himself behind the 8 ball when it comes to debt. This is not the first time I’ve received a call like this, nor will it be the last, but what makes this particular call stand out is the way this person has decided to approach the situation. His attitude and determination should be a lesson to us all. Here is his story: Continue reading “The Right Ingredients for Overcoming Debt”
I live in New York City and spend only $12,000 a year. Continue reading “Learning to Become an Extreme Saver – Part 2 (How I live in NYC on $12,000/year)”
We just received the following question on our website:
“I’ve recently gotten married and both of us have entered into this marriage with our own debts. We are having a hard time, even with combined incomes, making ends meet. I would like to learn more about money management and what needs to be done to pay bills and still have enough money left for savings and cash reserves.” Continue reading “Married With Debt? How to Manage Your Money When the Honeymoon is Over”
I had a conversation with someone who was leaving a very high-paying job in order to do something that paid far less but was far more personally fulfilling. I asked her what her friends and coworkers thought of her decision. She laughed and said that they all think she’s crazy. But…they are all incredibly envious too! Continue reading “Are You Trapped By Your Income?”
When I was 18, I got my first credit card. What should have been an occasion to mark the beginning of wise financial habits instead began a three-year period of reckless spending and horrible choices. By the age of 21, I found myself in debt to the tune of $30,000 – in addition to nearly $10,000 of personal debt to my parents, who financed my college education. Unfortunately, like many other Americans, I wasn’t able to use credit cards and rewards wisely. Continue reading “How I Recovered From More Than $30,000 in Credit Card Debt”
Yesterday I bought six pairs of boots. In reading that comment, you might be thinking, “Hmm… isn’t she the Money Diva who writes at length about being smart with money and even wrote the blog, the Wardrobe Capsule –how to look fabulous while spending less? What happened to the “spending less?” What’s with six pairs of boots, Nancy?” Continue reading “I Bought Six Pairs of Boots and Am Ecstatic: Money Magic or Money Madness?”
I’ve been arguing that if the government cannot control spending there are some serious implications that you and I need to prepare for. In my last blog I outlined precautionary steps to take if the government continues on this path. In this blog I’ll discuss what NOT to do so that you can avoid a similar fate. Continue reading “Money Management: How NOT to Spend Your Money”
I read this article about Billy Ray Cyrus’ concern for his daughter Miley. (I have a daughter, so you shouldn’t laugh at me for knowing who Hannah Montana is and being caught up in observing her personal drama.) She isn’t the first, nor will she be the last child star to earn a fortune. There seem to be more stories about “child stars gone wrong” than there are about those who have taken their fame, celebrity and wealth and done something good for themselves and their families. Maybe it’s that only the train wrecks get reported – it’s not newsworthy when someone helps others or fades from the spotlight into a well balanced adult life, but that’s a different topic for a different blog. While reading it, I started to wonder if the whole combination of youth and wealth is a poor one. Continue reading “Money Management: Are Mega-earning Youth Receiving Too Much, Too Soon?”
