KMP Blog » Money Mondays

Improve Your Credit Score in Five Easy Steps

KMP Blog — Mon, 23 Apr 2012 10:00:09 +0000

One of the most important things you can do is to pay your bills on time

Having a good credit score can make your life easier. You could qualify for loans with better interest rates, rent a house or apartment, and get service from telephone and utility companies. On the other hand, having a bad credit score can make getting all of this much harder.

So what should you do if you want to improve or maintain a good credit score? The following tips might help.

1) Request a free credit report

You can request a free copy of your report every 12 months from each of the three main credit bureaus: Equifax, Experian and TransUnion. The official website to get your free credit report is www.annualcreditreport.com.

2) Understand Your Credit Report

Understanding your credit report will help you make better decisions when it comes to your finances, because your credit score is based on your credit report. It includes personal information about you such as:

Your payment history.
How many loans you have and how much you owe.
If you have ever filed for bankruptcy.

3) Check Your Credit Report

Sometimes information on your credit report might be incorrect or incomplete. That’s why you should check it periodically.

If you do find a mistake, these agencies must:

Investigate the discrepancy usually within 30 days and correct it if necessary.
Notify the company that provided the incorrect information.
Provide you with a free copy of your credit report if changes are made.

The Federal Trade Commission has more detailed information on how to access free credit reports.

4) Pay Your Bills on Time

Paying your bills on time is an important factor in determining your credit score and showing your creditors that you are a responsible consumer. But there are other factors that might impact your credit score:

Be selective when you apply for credit as too many applications may negatively affect your score.
Don’t go over your credit limits. In fact, it is better to stay well below them.
Pay down your debt with regular payments.

5) Get Professional Help

A budget might help you pay your bills on time. If you owe too much or are unable to pay your bills, you might want to consider a credit counseling agency. They can help you to manage your finances or figure out a plan to pay off your debt.

Be careful when seeking out these services, they might charge excessive fees and that can put you deeper in debt. The Federal Trade Commission has more information about credit counseling agencies and how they can help you improve your credit score.

USA.gov and GobiernoUSA.gov are the U.S. Government’s official web portals in English and Spanish, and part of the U.S. General Services Administration (GSA).

SOURCE for this post: PRNewswire/GobiernoUSA.gov/USA.gov

Survey Says: More Americans Are Stretching Tax Refunds Further This Year as Their “Needs” Top Their “Wants”

KMP Blog — Tue, 03 Apr 2012 01:08:02 +0000

image source: PR Newswire

78 percent vow to spend this year’s tax refund wisely

This year, one in two Americans receiving a tax refund (50 percent) say they plan to spend the extra money on bills or other household expenses, as opposed to vacations (15 percent), leisure activities (8 percent) or gifts (4 percent), according to a recent poll from Cricket Communications.(1) The survey also noted that more than three-quarters (78 percent) of Americans receiving their refund will be “smarter” about how they spend it, with more than half (55 percent) pledging they are more likely to use refund dollars on practical “needs” instead of “wants.”

Stretching Tax Refund Dollars

Cricket has also partnered with certified financial planner and savings expert Robert Pagliarini, author of The Other 8 Hours, Six-Day Financial Makeover, to offer additional tips on helping people stretch tight tax refund budgets.

1. Set up an emergency fund

Stocking away six to twelve months of expenses can really help individuals and families who have found their home equity line of credit has been reduced — or an unexpected medical fee arises.

2. Open a 529 College Savings Plan

According to the National Center for Education Statistics, the cost of a college education continues to rise every year. Between 1999–2000 and 2009–10, prices for undergraduate tuition, room, and board at public institutions rose 37 percent, and prices at private institutions rose 25 percent, after adjustment for inflation. Planning early and setting aside money for college now is the most important thing you can do for your children’s collegiate success.

3. Seek out classes to boost budgeting skills

Taking a refresher course at a community college or neighborhood center can help boost financial planning skills that you currently have or help you learn a new one.

4. Research the best deals on monthly expenses

There are expenses you will incur each month, such as food, transportation and cell phone costs, which are easy to re-evaluate and cut as long as you do the right research. For example, choosing a pre-paid wireless provider such as Cricket will help you save hundreds of dollars each year, without sacrificing all of the fun apps, games and music that your family can’t live without.

For more information about Cricket’s devices and no contract service plans, as well as Cricket locations participating in their Liberty Tax Services® promotion, visit www.mycricket.com

(1) The study, commissioned by Cricket Communications, surveyed a national sample of 1,000 American adults ages 18 and older. The margin of error for the total sample is +3.1% at the 95% level of confidence (Fielded by TNS in March 2012).

20-Somethings Stressed by $45,000 in Average Debt

KMP Blog — Tue, 20 Mar 2012 02:00:09 +0000

: image source: (PRNewsFoto/PNC Financial Services Group, Inc.)

Twenty-somethings’ mounting debt is taking its toll, as 60 percent of the generation who grew up amid economic growth and graduated into a hard-hitting recession say they feel stressed about their outstanding debt, according to a survey by The PNC Financial Services Group, Inc. (NYSE: PNC).

Findings: Walking the Tightrope of Savings and Debt

Overwhelmed by debt:

Debt Burden Increases with Age: On average, their total debt is $45,000, ranging from $12,000 for ages 20-21 to $78,000 for 28-29 year olds holding debt.
Investing in Education: Over half of those surveyed hold education debt throughout their twenties. Education loans are the most frequently reported type of debt followed by credit card (ranging from 20-48 percent from age 20-29), car loans (9-38 percent) and mortgages (3-29 percent).

Saving to survive:

Short-term Savers: 94 percent of those surveyed said that they save, either when they can or on a regular basis. Asked the reasons, more are saving for the short term than the long haul—53 percent are saving for a big purchase, 41 percent are saving for a trip in the next 12 months and only 36 percent and 38 percent are saving for a house and retirement, respectively.
Saving for Retirement: Most 20-somethings put off thinking about funding retirement until they’re approaching 30. Only 13 percent of 20-21 year-olds report saving for retirement, compared with nearly 50 percent of 28-29 year-olds.

Tips: Establish a ‘Safety Net’ and Gain Control

PNC’s Johnson offers the following tips to help Generation Y navigate the balancing act of savings and debt and build the confidence to control their finances:

Knowledge is power.

Educate yourself on money management and financial planning. Visit your bank’s website and read personal finance news stories and blogs to better understand your financial situation and craft a detailed budget.

Use the tools.

Millennials have more tools for financial management and education, online and on their smartphones, than any generation before them. Use online and mobile tools, such as PNC Virtual Wallet®, to see all your accounts in one place, share advice, establish a budget and set up alerts to help with money management.

Debt evaluation.

Examine your debt and interest rates. Focus on paying down the balance on accounts with high interest rates first.

Create a Safety Net.

Try to keep between 3-6 months of living expenses in a ‘safety net’ savings account. This account can help you from falling further into debt should you have an unforeseen expense.

Think long-term.

Set up regular contributions for a 401(k). If you aren’t working or are not eligible for your employer’s retirement plan, set up an IRA or Roth IRA in order to begin saving for retirement early. Time is on your side to grow your nest egg.

*Information Source via PR Newswire and The PNC Financial Services Group, Inc. (www.pnc.com)

Body Language for Business by Max A. Eggert

KMP Blog — Sun, 19 Feb 2012 02:30:16 +0000

This book review post was written by Jordanna Stephen, Editor of The Fashionisette. Be sure to connect with Jordanna on Twitter or join the blog discussion at her blog.

We all do it, whether consciously or unconsciously. What is it? We all non-verbally communicate with our body. We all have our own body language that we speak with. In Body Language for Business, author Max A. Eggert defines body language, breaks down body movements and what they could mean, and how we all can become better body-lingual.

Ok, so what is body language really?

You probably just did an act of it just now as you’re reading. Maybe a movement of the eyebrow, a shoulder shrug, or leaning into the computer screen because you’re interested. Body language is communicating with others using all parts of our body whether we are talking, listening, or thinking.

Most of it is done unconsciously through facial expressions, gestures, movements, and postures. If we understand it, we can tell if someone is interested in what we’re saying, telling us the truth or lying, or how they feel about the topic of conversation. You see how important it is. But just like anything, body language has some caveats, just because someone is blinking on the double doesn’t mean they are lying, it really could be a tic.

A tip that Max offers, “go for clusters”, which means look for more than just one behavior change, see if you can spot three or four of them (e.g. sudden body movements + change in voice + hands move to mouth + smile rate increases).

In the chapter Perception and First Impressions you learn about the 7/11 effect. This effect says that within the 7 seconds of meeting someone you made 11 decisions about them. Interesting right? And when I read the 11 possible decisions that could be made, I can totally agree. Some decisions you could make are: the person’s economical level, educational level, if they’re honest, their level of sophistication, if you want to be their friend.

How can you make a better impression on an interview? Page 41 offers a ‘brilliant tip’ and says to start your interview with a powerful statement about your skills and achievements. Want to make an overall better impression?

Maintain eye contact, as it shows confidence, credibility, and honesty.
Smile, because it shows warmth and friendship.
Nod slightly when meeting someone (who knew!), as it shows respect.
Put shoulders in parallel, it shows friendship and confidence.
Point your feet towards the other person, as it also shows friendship and confidence.

We all know how you dress is a reflection of your style…but sometimes it doesn’t reflect honestly you as a person. So the book asks, ‘does what you are wearing support who you are, or want to be, or the impression you like people to have of you?’

Body Language for Business offers valuable tips for giving a proper handshake, how to use your body language to build a better rapport, in an office space, for personal confidence, for assertiveness, when it comes to attraction (how wearing glasses can affect your attraction rating), and even goes into the hidden language of speech.

Body language speaks volumes and it’s important to know what you are communicating and what others are communicating to you because, “the most important thing in communication is to hear what isn’t being said.”

About the Author:

Max A. Eggert is a psychologist and international consultant specializing in human resource management, interim management, and outplacement. He lives in Chipping Norton, Australia.

Please note: A complimentary copy of the book Body Language for Business by Max A. Eggert was provided by the PR/Marketing agency for review

Dollars and Uncommon Sense: Basic Training for your Money by Steve Repak

KMP Blog — Mon, 23 Jan 2012 22:58:09 +0000

This book could not have come at a better time in my life. We all read many financial books, that are here to guide us into taking care of our spending and finances. Well, I can honestly say I have read one too many books, and as much useful information as they provide me, I still felt lost and confused. Dollars and Uncommon Sense is somewhat different, when I received the book, I immediately thought this would be another book that will tell me things that I most likely will not do. I was wrong… It took me about a week to finish this book, only because I wanted to take action in what was requested of me, right away. Dollars and Uncommon Sense is meant to be read in one sitting, maybe two, depending on your availability.

What makes Dollars and Uncommon Sense the must-have financial book for the year 2012?!

The fact that you can start to see major changes to the way you handle your money, as well as the fact that by the end of the year, if you follow the steps in the book, you will most likely see major financial changes that you didn’t see in your previous years.

The thing that grabbed my interest and kept me motivated to read this book was at how easy the steps are, and although some of them won’t make much sense right away, in the end it will.

This book will teach you the following and much more:

Change the way you think about money by establishing the 6 Key Traits of Wealth Builders
It will teach you the 3 Ps: Principles, Priorities and Plans
It will teach you how to spend your money. I know most of us do not need help in this area, or so we think we don’t. The Spending chapter in the Dollars and Uncommon Sense will make you realize that you probably spend more money than you think. It is a real eye opener.
It will teach you how to change your Priorities. This one was a tough one for me, because it didn’t make sense. Hence the title of the book Dollars and Uncommon Sense, some things in this book, won’t immediately make sense to you, at least not right away. After reading the book, it all makes sense now. According to the book, your priorities should be as follow: Give, Save and Pay.

“Giving away 10 percent of what you make is the easiest and quickest way for you to start having more money.” (Dollars & Uncommon Sense, Steve Repak)

The book prepares you with really simple ways to get out of debt, save money for rainy days, and save money for when you want to “Quit” days. Dollars & Uncommon Sense: Basic Training for your Money is unlike any other financial book you’ll ever read. It will truly change your life and knock some financial “uncommon” sense into you.

Please note: A complimentary copy of Dollars & Uncommon Sense Basic Training for your Money was provided by The Cadence Marketing Group for review.

3 Money Tips to Help You Get Rid of Debt

KMP Blog — Mon, 02 Jan 2012 14:15:41 +0000

Every year we complain that we do not have enough money to do anything, yet we find ways to somehow, somewhere find funds to pay for really expensive handbags, really expensive shoes, or really expensive gadgets that we don’t really need nor can “afford”. Personally, I have realized that there are a lot of things that I want and in order to achieve them I have to make some spending habit changes. This year I am planning to do the following and I hope you plan to do the same.

I. Pay off your debt -

The first debt I want out of my sight is my student loans. Sallie Mae has been digging my pockets for far too long and lately I’ve realized that I should’ve done this a long time ago. I’m making it my business to pay off my student loans this year. In 6 months or maybe a year but it shall be done.

II. Double your payments -

You know those paychecks where you have excess money because you’ve already paid the rent, you’ve paid your bills, but you still have a nice chunk of change that makes you feel as if you are “rich” so you decide to go on a shopping spree because you got “money”! Hmm… Not really. While it may seem like you have money, you really don’t, because technically you are drowning in debt, you just don’t realize it. A long time ago I read this amazing book The Automatic Millionaire and the first story in the book talked about a couple that had no debt because they paid everything off. How they managed to do this was by doubling their payments. Doubling your payments can help you get rid of that debt so much quicker. Once that debt is gone, then you can proudly go on your shopping spree and say I’m Rich B$&*%!!

III. Save -

Saving it’s so important. Save to an account that you have no or little access to, that way you don’t spend it. Save $25-$50 every week or every two weeks and by the end of the year utilize that money to buy something you want or to decrease some of your current debt.
I know paying bills is a annoying and paying off debt seems like a never ending cycle. Trust me if you do the tips above you will see light at the end of that “never ending tunnel”. Hang in there and stay focused.

Retirement Planning: Start Now!

KMP Blog — Sat, 29 Jan 2011 21:32:52 +0000

Retirement may seem like it’s a long way off, but it will come faster than you think. And if you’re not ready for it, if you haven’t been saving, you’re going to find that your standard of living changes dramatically when you stop working. You may think that just because you’re young you don’t have to worry about it yet. There will be plenty of time to plan for your twilight years later on. But by starting now, you have the opportunity to exponentially increase the amount of money you have by the time you reach the age of retirement. Here are a few ways you can get started to ensure that you’re taken care of when the time comes.

The first and easiest retirement plan is the 401K provided by the company you work for.

Most businesses these days offer a plan by which they withdraw a percentage of your earnings from each check (pre-tax) and put it into an account that is managed by an investment firm. The money then continues to earn until you retire, at which point you can begin drawing it as an income. Some companies even have matching programs by which they will contribute money to your 401K correspondingly with your contribution (generally in the neighborhood of 5% of your earnings). It really pays to take this free money if it’s available. Just remember that you can’t touch this money pre-retirement without penalty.

You can also start a Roth IRA which is another type of investment account that also matures when you reach retirement age.

It tends to be fairly safe and earn a higher percentage annually than other types of accounts. Although you can only put a certain amount of money into your IRA each year, it counts as pre-tax money (you can claim it on your taxes as a deductible). This means you have more money earning for you. And considering that most of us won’t be able to take advantage of social security by the time we retire (despite the fact that we’re paying in now) it couldn’t hurt to have a backup plan.

Finally, you can look into other kinds of investments, such as stocks and bonds.

Building up a portfolio could substantially increase your income once you retire. Although you will have to pay taxes on anything you earn annually, you won’t be paying income tax later on (like you will when you withdraw from your retirement accounts). When it comes to your portfolio, just be sure to diversify. A variety of investments will ensure that if one area goes belly up, you haven’t lost all of your money. And while it’s probably pretty useful to engage the services of a stock broker (for invaluable advice and opportunities) you can opt to do it on your own with a service like E-Trade.

By starting early and spreading your money around to a variety of accounts and investments, you can ensure that you are taken care of when you reach the age of retirement. While you can certainly wait and hope for the best, thinking you have plenty of time, you may find that when the time comes to start withdrawing, you simply don’t have enough to keep you afloat without the added income from a job.

Paul Abikasis is a writer for Roth IRA where you can find out information about Roth IRA conversion and learn how to open a Roth IRA as well as finding other tools and information to help you on the road to retirement.

Decorate Your Home on a Budget

KMP Blog — Wed, 26 Jan 2011 12:31:58 +0000

Leah Remmin writes for Inlaid Woodcraft where you can find the finest quality inlays and designs for marquetry.

Even those of us who don’t have two nickels to rub together still want to come home to a house that is warm, inviting, and lovingly decorated. But that couch you picked up for free on a sidewalk ten years ago has seriously outlived its usefulness and the naked bulb in the ceiling is starting to give you a migraine (and don’t even get started on the carpet, which the last tenants apparently used as a drop-cloth for car repairs, if the stains are any indication). But how can you turn your second-rate hovel into a pretty palace or Zen sanctuary when your budget will barely allow for the fix-up cost of one room? With a little elbow grease and a lot of ingenuity, you can have the dream home you want and still stick to your budget. All you need are a few tricks up your sleeve.

1. Garage sales. The number one best way to decorate your home on a budget is to scout for decent items at a great price, and garage sales are the best place to nab a steal. By hitting the sales early on a Saturday morning, you can have the pick of the litter. And by checking ads (most of which list big-ticket items) you can be the first one at sales that have specific pieces you know you’ll want. You can also look on Craig’s List in your area for furniture items (which you can find cheap or even free, with a “you-haul” addendum). Don’t be afraid to haggle, either. You can always get a better price, especially if you’re buying more than one item. Just remember to bring enough cash.

2. Paint. It can cost quite a bit to paint every interior wall, but if you want a lot of bang for your buck, try doing an accent wall in each room. It will totally change the look and feel without a lot of work or expense.

3. Wet vac. For stubborn stains on carpeting, try renting a wet vac from your local grocer (many have them available, so ask an employee or manager). You can give your carpet a good once-over and see if that does the trick. If not, you can always fall back on area rugs to cover up the damage. Just make sure to pick colors and textures that are different from the flooring beneath if you want to pull off this stylized look.

4. Accessories. When it comes to accessories, you’re going to have get handy with the sewing machine to avoid spending a lot of money. But as long as you can sew in a straight line you can make custom curtains, pillows, and duvet covers in complimentary fabrics for every room. You can even find decorative embellishments that are easy to add to finished pieces (such as ribbon for borders and rosettes for a dash of texture).

5. DIY projects. Believe it or not, you can do a lot of fixer-upper projects on your own. Get yourself a simple home repair guide and check out all the potential fixes you can tackle. Whether you’re putting in a backsplash, laying tile, installing new faucets, hanging lights, or fitting a Corian countertop, a guidebook can give you the know-how and hints to make your upgrade a success and turn your rundown domicile into a castle fit for a king.

How to Start Saving in 2011

KMP Blog — Mon, 17 Jan 2011 23:19:57 +0000

Darcy Johansan writes for No Credit Check where you can find anything from a prepaid satellite TV to a car rental no credit check.

It’s time once again to start making your list of New Year’s resolutions. And while “get in shape” is at the top of most people’s lists, you have likely also included “save money” (in one form or another) as a very close second. In fact, you’re not very liable to follow through with any of your resolutions, despite your good intentions (as you may recall from years past) unless you make some sort of change in your methodology. So if you’re looking to actually bulk up your savings this year and make a little nest egg for that trip to Paris, a new car, or simply for a rainy day, here are a few tips to get you on the right path and ensure that the money doesn’t go down the drain.

- The first thing you need to do is write out a plan.

By writing things down, you are much more likely to follow through with your intentions. Then post it somewhere that you’ll see it all the time so you are constantly reminded. It may help to add what you plan to do with the money as a form of motivation. Now, you’re probably wondering just what is going to be included in this plan for starting a savings, and there are actually just a few steps.

- Start by going over your finances and making out a list of income and expenses.

If you’re like a lot of people, you may actually be spending more money than you make. This is one of the many reasons you have been unable to save in the past. Even if it seems like you should come out at the end of the month with some extra cash, you’re probably spending it on things you don’t really need (like eating out and entertainment). Unfortunately, if you want to save money, this is the first area you’re going to have to cut back.

- And so we arrive at the budget.

Once you have a good idea where your finances are coming and going, you need to write out a monthly budget that allows for a savings. Simply allocate appropriate funds for your bills (don’t forget to break down the ones that you pay yearly or biannually, like insurance and car registration) and see what’s left. From that you will draw your spending cash as well as your savings. The trick is to be honest about what you can reasonably save so as to ensure that you stick to your budget. If you feel deprived in some way, you’re going to dip into your savings again and again, making the whole exercise a moot point. So even if you only save $20 a week or $100 a month, make it a number you can live with.

Saving money is not easy for most of us, considering that our society thrives on consumerism and judges based on ownership of material goods. But if you want to be smart about how you handle your money and have a little something on hand should you need to fix the car, plug a leak in the roof, or take a whirlwind jaunt to Rio for Carnival, you’re best option is to set your goal in writing, create a workable budget, and be honest about what you can really put into savings. This will guarantee that the resolution you make in January comes to fruition by the time December rolls around.

Start the New Year Right: Create a Budget

KMP Blog — Mon, 27 Dec 2010 02:54:11 +0000

Leon Partridge writes for Coin Collecting where you can find information on vintage and rare coins and chat with other members via the online forum.

Immediately following the season of giving is the season of paying, and if you’re like most people, you have probably racked up a bit of debt in your quest to make the holidays special for family and friends. So rather than finding yourself in the same boat a year from now, why not set aside the resolutions to lose weight (you know that only lasts about five minutes), clean the garage, plant a garden, and so on, and instead commit to setting a budget that will give you the money you need to pay off debt, keep up with bills, and save a little extra to hire a cleaning crew and gardeners (and still have some money left for next year’s holiday season)? If you often find yourself in financial straits, now is the time to crack down on your budget and get to saving, for real. But how do you get started?

Budgeting is easier said than done.

It’s not hard to figure out what you’re bringing in versus what’s going out. Income and expenditures are finite numbers, after all. But finding ways to make the two equal (or have more coming in than going out) is not so simple. You may discover, when you sit down to plan your budget, that you are, in fact, spending more money than you make. With credit playing such a huge role in modern life, this is a pretty common state of affairs. However, there’s no reason to succumb to despair and throw in the towel just yet. You just need a little help to get back on track.

For starters, you should shred extraneous credit cards and limit yourself to one (that has the lowest interest rate).

From there, you would be well served to look into a debt consolidation loan. A bank can usually offer you a rate that is far lower than whatever you’re paying the credit card companies. Once your cards are paid, you can cancel the accounts and then simply pay off the loan (saving yourself not only on monthly payments, but also on what is owed in total). If you’re so far gone that collection agencies have become involved, you may be able to avoid black marks on your credit by offering to pay a reduced amount. Most companies are willing to work with you if it means they can recoup at least the principal cost of what is owed (even if they can’t get all the interest).

The real trick lies in maintaining your budget once you have it planned.

Paying off creditors is one thing, but what’s to stop you from immediately spiraling back into debt? This will require an amount of planning and commitment on your part. You’re probably going to have to cut back in order to live within your means. “Entertainment” expenses are usually the first to go (dining out, movie dates, unnecessary clothing, etc.). But you can also cut back on monthly expenses by paying down a car loan, getting a package that includes phone, internet, and cable (instead of paying more by having three separate bills), and working to conserve energy in your home, just for example. And if you have a real spending problem, you may need to seek professional help to conquer it.

In short, you simply need to pinpoint problem areas and find ways to counteract them if you want to stick to a budget. Resolving to do this in the coming year will ensure that at this time next year, you’ll be well ahead of where you currently find yourself in regards to your financial situation.