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The end of 2011 is fast approaching. Here are 5 tips to help you stay on top of your finances and finish 2011 on top of your game.

Tip #1. Check your credit report

Your credit rating determines everything today — the loan rate you’ll get on mortgages, credit cards or auto loans; as well as the rate you’ll pay for life and auto insurance. Your credit even affects your ability to rent an apartment and get a job. The Society for Human Resources says that nearly 60% of all employers do credit checks before making hiring decisions.

By law, you’re entitled to get a free copy of each of your credit reports once a year from Equifax, Experian and TransUnion, which are the “Big 3″ credit reporting agencies. Unfortunately two-thirds of all Americans haven’t seen their credit reports in the past year, according to a survey from the National Foundation for Credit Counseling.

Website Resource: http://www.AnnualCreditReport.com – This is the federally-mandated website where consumers can get truly FREE credit reports — without having to buy anything or sign up for any kind of
7-day trial, or credit-monitoring service.

Tip #2. Negotiate for a better credit card deal

Too many people are paying way too much money for the privilege of having a credit card in their wallet. Some people are being charged 20% or even 30% interest rates by credit card companies — even as
interest rates are relatively low.

The average interest rate for a variable rate credit card is around 15%. So if you’re paying more than that, it’s time to call your credit card company, and ask for a lower rate. If they won’t budge, take your
business elsewhere.

Website Resource: http://www.CardRatings.com – This is a great, free consumer website where people can comparison shop for the best available credit card deals and learn about the responsible way to use
credit.

Tip #3. Protect yourself with insurance

None of us wants to think about something bad happening – like a medical illness or an accident. Even fewer people like to think about their own mortality. But the fact is: we’re all mere mortals. We get
sick, we have car crashes, and we’ll all die one day.

Savvy individuals know it’s a smart idea to plan for life’s “What if” scenarios. So do yourself a favor and make sure your financial “Plan B” includes the proper insurance coverage — just in case. Life
insurance is particularly important.

Website Resource: http://www.Insurance.com – This easy-to-use site lets people search, free of charge, for all of their insurance needs — and get the cheapest quotes available for life insurance, disability insurance, car insurance and more.

Tip #4: Educate yourself/Ask for Help

Too many people suffer in silence when it comes to their financial troubles. They’re up to their eyes in credit card debt. They’re behind on their mortgage. They’re grappling with medical bills they can’t pay
– and they’re completely overwhelmed.

Unfortunately, we live in a country where – up until recently – financial literacy hasn’t been a priority. If you’re not financially educated, you’re at risk of being scammed and economically taken advantage of. Or you may simply make financial mistakes that can take you months, if not years, to recover from.

Tip #5: Create a realistic budget

Many people dread to hear the word “budget.” But if you don’t have a realistic budget, you’re probably over-spending and likely have cash flow problems.

A budget isn’t something to be feared. It should be welcomed. A budget helps you stay out of debt, know where your money is going, and allows you to reach your future financial goals — like buying a house or
starting a business.

Website Resource: http://www.Mint.com – This free, online budgeting software service is a snap at helping consumers keep their budgets on track. Mint will even send you email or text alerts about your spending to make budgeting easier.

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If you’re like me, you’d like to simplify your summer finances. After all, summer is the time to relax a bit more, spend extra time with family and friends, and maybe even indulge in a little getaway if a summer vacation fits into your budget.

So chances are, money matters are the last things you want to worry about – especially if you’re thinking about hitting the beach, planning a backyard barbecue, or even just chilling out alone on your porch with a good book.

In the spirit of keeping things light and easy for the summer, here are six tips to help simplify your summer finances. I’ve used the six-letter acronym S.U.M.M.E.R. to help you remember them.

1. S – Set up automatic bill payments.

If you’ve not yet put your credit cards, utilities and other recurring expenses on automatic payment, summer is an optimal time to do it.

Many of us are traveling, busy with the kids or trying to squeeze in a few extra workouts to get a beach-ready body. So why bother with distractions like keeping up with bill due dates, scrambling for stamps and envelopes, or running to the post office to make sure you’ve paid your bills on time?

Do yourself a big favor, and arrange for those bills to be paid electronically and automatically. That way, you’ll have more down time this summer and financial peace of mind, too. Plus, you don’t have to commit to automatic bill pay forever. You can just do it for a couple of months this summer and see if it works for you.

2. U – Unwind any bad deals you want to terminate.

All right, so that lifetime membership to “Fans of the Endangered Peacock Club” or that monthly subscription to “Denim Vs. Silk Magazine” seemed like a good idea at the time, right? But now you’re realizing that, um, it was kind of a waste of money. Don’t worry, we’ve all been there.

But rather than allow your bank account to keep being tapped month after month (or year after year), just take a few minutes to cancel that regrettable deal. One phone call is probably all it will take. Even if you have to write a letter, fine. Get on your computer and whip out a quick note saying “Please cancel immediately.”

Who knows? Depending on the deal you’re unwinding, you might even get a credit on your credit card statement or a refund check in the mail. That’s an easy way to get rid of a financial hassle – and generate some summer savings as well. Read the rest of this article on WalletPop.

Excerpt from The Money Coach’s Guide To Your First Million – Now in Paperback

You can probably rattle off what your basic necessities are: they’re expenses like housing payments, food, transportation costs, and so forth. You may need to think a little longer, however, about the things that are important to you. For instance, let’s say education is important to you. Then you might choose to spend a portion of your money each month or each year in the area of educational pursuits – perhaps yours or a family member’s.

Why do you think that scores of parents across this country sacrifice to be able to send their kids to private school or to the college of their children’s choice? Don’t you think these parents could be spending their money elsewhere? Sure they could. But they don’t because they value education. And they look at the dollars they spend on tuition, books, etc., as an investment in their children’s future.

Let’s consider also the things that give you joy. In your budget, these should be things that are long-lasting and or memorable. A lot of time experiences and events give us far more joy than material goods and products. Remember that fun family vacation or that romantic getaway you took with your sweetheart? Chances are, that travel experience from three years ago burns in your memory more than the clothes you bought on last month’s shopping spree.

Even when “things” are the source of joy, they can often be short-lived. How many times have you bought an item from a store – maybe it was a fancy dress, a new gadget, or some home furnishing – only to have the novelty of that item wear off faster than you could pay off the credit card bill for that thing? This pattern of acquiring more and more unfulfilling stuff often starts early in life. Think of how children respond to receiving gifts. On a rare occasion, you might give a kid a toy teddy bear and he might keep it for years on end. More often than not, however, is the case of the kid who gets 10 or 20 gifts during the December holidays. What happens? He plays with a toy for all of 15 minutes never to return to it again. I ask you: which child experienced true joy in their gift?

So when you work up your Millionaire in Training Budget, be sure to list those categories that give you joy – whether it’s travel, philanthropy, some leisure activity or hobby, or personal care treatments such as manicures and pedicures. The idea is to list some things in your budget that you actually want to spend money on – as opposed to only having things in your budget on which you have to spend money. In my budget, for example, two of the items I include that give me joy are “vacations” and “books.” I do this because I know I love to travel. And I’m also a book junkie who enjoys reading and buying books from retailers. When I take a summer vacation, however, I don’t just wait until July rolls around, and then whip out a credit card to pay for the trip. That’s not planning ahead. Instead, I put aside some savings each month to total the amount of money that will be required for that trip. So if I know I want to spend, say, $1,000 on a trip that starts July 1st, and I begin saving for that trip in January, then that means I’ll have six full months to build up my vacation fund. And to accumulate the required $1,000 by July 1, I’ll have to put away roughly $167 a month to fund the trip. This way, my spending is well thought out and I enjoy myself more while on vacation, because I don’t have to fret about a big credit card bill later.

Some of you may be saying “In my budget, after I handle my basic necessities, I don’t have enough left over to pay for things that give me joy or things that are important to me.” For the present time, don’t worry about money that’s available (or not available). Leave those thoughts alone for now. We’ll deal with that shortly. Currently, here’s what I want you to do. Go grab a piece of paper, a notepad or notebook. (Later, you can put this on a computer spreadsheet if you like. But for the present time, just write it down on paper). Now I want you to list your sources of income by category; and next to each source of funding, indicate how much net income (i.e. after taxes) you receive monthly from that source. If you are married, include your spouse’s income. Your page should look something like this:

Source of Funds Monthly Amount

Salary/Wages                                       $4,300

Commissions                                        $500

Bonuses                                                   $250

Total Net Income                                 $5,050

Some other sources of funds might include:

• ·Tips
• ·Part-time income
• ·Self-employment income
• ·Interest Income
• ·Dividends
• ·Alimony
• ·Social Security
• ·Pension

Of course, if you have other monies coming in, you should add to this income list whatever else is relevant and applicable for your situation. Now turn the page over and write out these three categories of expenses across the top of the page:

• ·Necessities
• ·Things That Give Me Joy
• ·Important Things

Your task now is to fill out the paper by listing things that you regularly spend money on in each of those categories. You will also write down what you wish you could spend money on – if you had the money.  Write out your purchases underneath the appropriate column. Under the word “Necessities,” you will enter things such as: “Electric Bill,” “Food,” or “Mortgage.” Under the word “Joy,” you might put such items as: “Gardening Supplies” or “Movies/Entertainment”. Underneath the column with the heading “Important Things,” you might include such entries as: “College Savings” or “Retirement Fund.” Remember: in each category – Necessities, Things That Give Me Joy, and Important Things – you should have some written entries. Write down your budget items if you actually spend money on those things, or if you just desire to spend money on those things. Take some time to think about what fits into each category – then go ahead and write everything down right now. Don’t just keep reading: go get that paper and get to writing. I promise you this exercise will be well worth your time. Please do not skip this part thinking; “I’ll do it later.” Remember what I said earlier about procrastination and lack of discipline being self-imposed obstacles to becoming a millionaire? OK, let’s put aside your Millionaire in Training budget for now. We’ll return to it shortly.

Excerpt from The Money Coach’s Guide To Your First Million – Now in Paperback

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By Lynnette Khalfani-Cox, The Money Coach

The inauguration of Barack Obama as the 44th President of the United States ushered in a new era.  As he said in his speech on Tuesday, January 20, 2009:

“What is required of us now is a new era of responsibility — a recognition, on the part of every American, that we have duties to ourselves, our nation, and the world, duties that we do not grudgingly accept but rather seize gladly, firm in the knowledge that there is nothing so satisfying to the spirit, so defining of our character, than giving our all to a difficult task.”

1) Use more cash than plastic.
Before you go shopping for anything, even groceries, hit the ATM first – armed with your budget and your “need” list so that you don’t buy more items than you planned, or purchase items priced higher than you should be spending.  Take out exactly the maximum amount you’ve determined you can afford and will need to purchase your items of necessity (not just the items you want, but the items you “need”). Later, when you are out of cash, that’s it. Leave the mall or whatever store you’re in. Resist the temptation to whip out plastic to buy more stuff.

Related articles

• Lynnette Khalfani-Cox on The Daily Drum WHUR 96.3 Howard University Radio (askthemoneycoach.com)
• 10 ways to spend less & give more on the holidays (askthemoneycoach.com)

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