DSEF & CBBB: 3 Easy Steps to Protect Yourself From Investment Scams

3 Easy Steps to Protect Yourself From Investment Scams

By Monica Bradford

When looking to invest your hard earned dollars, take the time to do your homework. Anyone can be a victim of investment fraud. Before considering an investment, ask questions, do your research, and reach out to your local investment firms and advisers.

FINRA Investor Education Foundation, specializes in Investment Fraud and has a plethora of valuable information to help you sort through your next investment decision. FINRA, along with BBB, recommend three key strategies to help distinguish good offers from bad ones:

End the conversation. Practice saying “No.” Simply tell the person, “I am sorry, I am not interested. Thank you.” Or tell anyone who pressures you, “I never make investing decisions without first consulting my___. I will contact you if I am still interested.” Fill in the blank with whom ever you choose- your spouse, child, investment professional, attorney or accountant. Knowing your exit strategy in advance makes it easier to leave the conversation, even if the pressure starts rising.

Turn the tables and ask questions. A legitimate investment professional must be properly licensed, and his or her firm must be registered with the Financial Industry Regulatory Authority (FINRA), the Securities and Exchange Commission (SEC) or a state securities regulator- depending on the type of business the firm conducts.

Talk to someone first. Be extremely skeptical if the person promoting the deal says, “Don’t tell anyone else about this special deal!” A legitimate investment professional won’t ask you to keep secrets.

Exercising these three key strategies will go a long way when protecting yourself from fraudsters. Remember, the more knowledgeable you are when making investments, the less likely you are to become a victim. When making an investment there’s no urgency to race against the clock – take your time and make an informed decision.

For more information on protecting yourself from investment fraud, visitwww.saveandinvest.org.

DSEF and Council on Better Business Bureaus (CBBB) fosters honest and responsive relationships between businesses and consumers—instilling consumer confidence and advancing a trustworthy marketplace for all.

About the Better Business Bureaus
As the leader in advancing marketplace trust, Better Business Bureau is an unbiased non-profit organization that sets and upholds high standards for fair and honest business behavior. Every year, more than 87 million consumers rely on BBB Business Reviews® and BBB Wise Giving Reports® to help them find trustworthy businesses and charities across North America. Visitwww.bbb.org/us for more information.

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Common Sense Business Tips

If you’re thinking of starting your own business, or even if you already are an entrepreneur, there are certain common sense business practices that apply to any industry. Check out the following list to see how many you currently incorporate into yours.

Keep accurate records. This includes not only records of transactions, but also receipts from purchases, invoices for services performed or products sold, and all tax documents. You can choose to keep hard copies, electronic copies, or a combination of both. However, don’t forget to have a backup somewhere for anything electronic. The more accurate and organized your records are, the easier it will be to correct a problem if or when it arises.
Organize your desk/office. Wherever your main workspace is, it should be well-kept area; a cluttered, disorganized area will inhibit your productivity. Even worse, you may be unable to locate an important document or product you need when you actually need it.
Treat customers and employees/colleagues with respect. You’re bound to encounter difficult situations involving the people with whom you do business. The way you handle such issues speaks a lot about your character and business ethic. Sometimes problems cannot be avoided, but handling them calmly, professionally, and respectfully will help you maintain relationships that are important to your business.
Create a budget and stick to it. Even when you’re doing well and money is rolling in, it is important to be frugal whenever and wherever you can. Actually put your budget in writing, and revisit it frequently to see where changes need to be made so you can adjust accordingly based on your business’s evolving needs.
Cut down on the multitasking. It’s inevitable that there has to be some level of multitasking involved in being a small business owner. However, don’t make it the norm. Start and finish one task at a time to prevent you from losing your train of thought and forgetting important details. Practice the self-discipline it takes to complete one task at a time and do it well.
Seek help, advice, and education. Identify some industry experts and read their materials, take their workshops, subscribe to their blogs, etc. There are countless successful entrepreneurs who have come before you; use their experiences to continually learn about how to run and grow your business.
Have a positive outlook; expect challenges. Of course, you want to maintain a positive attitude about your business. That is why you should always challenge yourself to be the best that you can be, but at the same time, be prepare for the challenges that may arise. For example, before sinking every last dime into that new marketing plan, figure out what you would do if it falls flat. Being financially and emotionally prepared will help you move past any setbacks.
Get involved in the community. Connecting with other businesses and organizations within your community is extremely beneficial. It shows that you are vested in the best interests of the community and that you have something valuable to contribute. Furthermore, it is a great way to network and meet the very people you hope to do business with. Get in touch with your local chamber of commerce for ideas about how to get involved and who to contact.

How many have you implemented? What other common sense business tips do you think need to be added to our list? Please share your ideas below!

Free e-book “Business Owner’s Road Map to Success.” It has over 50 pages of techniques for everything a small business owner needs to master, from business planning and ethical selling to a success mindset. It’s all there and it’s free for you. To get it, just “Like” our Facebook Page here: http://on.fb.me/KsIN6P Pass it on!

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DSEF & CBBB: Watch Out for Common Tax Scams

DSEF & CBBB: Watch Out for Common Tax Scams

Today’s highlighted blog post from the Council on Better Business Bureaus (CBBB):

Watch Out for Common Tax Scams

By Holly Doering

When I moved to Washington State from Idaho, I spent some time at the public library searching for state income tax forms. There weren’t any. Another patron told me that Washington State doesn’t have an income tax. I didn’t believe it at first, but it turned out to be true.

A friend of mine at the time told me his parents didn’t pay federal income tax, because the IRS was actually illegal according to the U.S. Constitution, and would be out of business soon. This turned out not to be true, and his parents are in big trouble. The “frivolous argument” is actually one of the IRS’s listed “Dirty Dozen Tax Scams” to watch out for. You can learn more about it, and other scams, at the IRS newsroom.

According to IRS Commissioner Doug Shulman, “Tax scams…may look tempting, but these fraudulent deals end up hurting people who participate in them.” The IRS and the Justice Department work together to shut down these illegal operations. Taxpayers who knowingly or unwittingly get involved must repay all taxes due plus interest and penalties.

Around tax time, thousands of emails, faxes, and phone calls begin circulating, claiming to be from the IRS. Know that the official IRS website ends in “.gov” for government only. Any IRS web address that does not begin with http://www.irs.govshould be forwarded to phishing@irs.gov. Also, if you believe your personal information has been stolen and used for tax purposes, you should immediately contact the IRS at 800-908-4490.

Something else to consider: While most tax return preparers are professionals who provide honest and excellent services to their clients, according to the IRS, some “make basic errors or engage in fraud and other illegal activities.” You can always Start with Trust by checking out a company’s track record at www.bbb.org.

To learn more about the Dirty Dozen Tax Scams of 2011, please click HERE.

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Small Steps Can Lead to Big Payoffs

Small Steps Can Lead to Big Payoffs

Like many people in their mid-thirties, I have gone through several major life changing events over the past few years. Building a career, having a child, and purchasing a home are just a few of the exciting events that I have experienced first-hand.

But with these events often come significant financial changes and a whole lot of planning for the future – retirement, children’s education, and aging parents, to name a few. With so much going on and so many things to consider, keeping track of finances can be difficult, even overwhelming.

The recent purchase of a new home gave me a chance to reorganize and re-evaluate my finances and prompted me to track my budget more closely. I started to track my expenses daily and found it to be an eye-opening experience!

Once I was able to see where my money was really going, I was able to plug the leaks and redirect my money to be more in line with my financial goals. Here are some things that I have learned in the process:

Establish a system that works for you. There are several record filing systems and budgeting methods to choose from. If you find one doesn’t work for you, don’t give up! Simply try a new system.
If you overspend, get back on track. Don’t let it give you license to blow your whole budget.
Work a slush fund into your budget. Overspending is bound to happen and it will keep you from needing to tap into your savings.
Plan ahead. One of my budget leaks was unplanned expenses while running errands. Now before heading out the door, I always make sure that I have plenty of drinks, snacks, and activities for my son in order to avoid spontaneous purchases.

You don’t need a big life changing event to reap the benefits of tracking your expenses. If you want to get started with your own budget, but feel overwhelmed or not sure where to begin, it may be helpful to speak with a financial counselor. They can take a look at your situation, help you establish a budget and offer expert advice. Here are some things to look for when choosing a financial counseling agency to work with:

Choose a non-profit agency that is accredited by the Council on Accreditation (COA) or the International Standards Organization (ISO), or is a member of the National Foundation for Credit Counseling (NFCC). Your local credit union may also be able to direct you to a financial counseling agency.
Find out what services are offered. A good organization will have a range of services, such as budget counseling, debt management services, and credit report counseling.
Ask what, if any, fees are involved. Most non-profit financial counseling organizations offer some of their services and educational information for free. If you are interested in Debt Management services, fees should not exceed $50 per month, or so.
Consider the way you would like to receive the services. Counseling may be done in person, or over the phone or internet. Choose a method that will fit your needs.

Taking a few minutes each day to write down my expenses and review my budget keeps me on track to meet my financial goals, both short- and long- term.

Beth Luke (bluke@greenpath.com) is a financial educator for GreenPath Debt Solutions, a non-profit, national leader in financial education and counseling.

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Top Ten Small Business Pitfalls

Did you ever hear the phrase, “Hindsight is 20/20.”? It’s easy to look back on our mistakes and identify what went wrong after the fact. It is of utmost importance to avoid common pitfalls made by millions of others before you. By learning from their mistakes, you can make smart decisions for your business and enjoy making your entrepreneurial dreams come true. Here are the top ten pitfalls to avoid in your business and how to avoid them:

Failure to educate yourself before you begin – There is so much that goes into owning a business that goes beyond knowing your industry. Small business ownership is a marathon, not a sprint, so stamina is the key. Since you will most likely be watching your pennies, take advantage of free resources, like those provided by the Small Business Administration .
A non-existent or hastily written business plan – Believe it or not, too many people start up businesses without a plan. Don’t worry; you don’t need an MBA degree to write up a business plan. An effective business plan should include a description of your business; information about your industry, competitors, suppliers, and target demographic; a marketing strategy; and finances.
Spending money unnecessarily – To control startup costs, consider the following: leasing any equipment you may need instead of buying, buying supplies second hand, purchasing a minimal amount of inventory to avoid overstocking, and dealing in cash as often as possible.
Not collecting payments promptly – Remember, you are held to a tight standard in having to pay your own creditors; hold your customers to the same standard. Always provide an invoice no matter how small the amount, follow up when necessary, and don’t be afraid to implement a cash upfront policy for delinquent accounts.
Forgetting to plan for a rainy day – So your efforts are paying off; inventory is flying off the shelves, you’re teeming with new customers, and profits are way up. Enjoy it of course, but don’t forget to save some of that hard earned cash for an unforeseen setback. Just like the overall economy, certain industries experiences cycles of good times and bad. Your business will be able to survive the hard times if you put away some money and have a contingency plan for if things suddenly go south.
Getting set in your ways – Even the most successful business owners can have a difficult time adjusting to new trends in the industry. Keep abreast of any changes, including innovative new products/services, a shift in customer needs/wants, price points, marketing techniques, and technology. Chances are that your customers are aware of what’s new, so don’t get left in the dark.
Doing it all yourself – If you have employees, trust in their abilities and delegate responsibilities. Trying to meet every obligation on your own and micromanaging are both recipes for burnout and disaster. Empower your staff by handing over certain tasks and projects; you’ll also find that they will become more invested in the success of your business when they know they are an important part of it.
Inability to step away – Once you have established your business, you should make decisions that allow it to run smoothly without you once in awhile. There will be times when you need to take a few days off for personal obligations, and let’s face it: who doesn’t need a vacation every now and then?
Poor marketing – From traditional marketing methods to those of the 21^st century, there are more ways to market your business than ever before. As with anything else in your business, do your research to decide what is best. It might be a good idea to only focus on one or two methods at first, such as targeted direct mail campaigns and an effective website. Collect information about what is working and adjust your marketing efforts accordingly.
Lack of discipline – This is especially important if you have a home-based business. Our households are rife with distractions such as laundry, cleaning, a ringing phone, and even our own children. These things take time away from your business, which in turn takes money out of your pocket. Create a strict schedule for yourself and stick to it, make a list of what needs to be done and when, and minimize needless distractions.

What pitfalls have you encountered in your business? Please share your problems and solutions with us in the comments section below!

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DSEF & CBBB: Take This ID Theft Quiz for National Consumer Protection Week

Today’s highlighted blog post from the Council on Better Business Bureaus (CBBB):

Take This ID Theft Quiz for National Consumer Protection Week

By Holly Doering

Hi everybody, and happy Monday. Depending on where you live, you might be celebrating Frozen Food Day, Mardi Gras, or If Pets Had Thumbs Day (at least according to an Internet list of “wacky holidays.”) But one thing everybody should be celebrating is our 14^th annual National Consumer Protection Week! Running through March 10, this holiday will shine a national spotlight on consumer safety in the U.S.

I thought it would be fun to take a little quiz on identity theft from the Privacy Rights Clearinghouse: Answer to see what your risk is. I myself scored 45—not bad, but I could do better.

___ I receive several offers of pre-approved credit every week. (5 points)

___ I do not shred the pre-approved credit offers I receive (cross-cut shredder preferred) before putting them in the trash. (5 points)

___ I carry my Social Security card in my wallet. (10 points)

___ I use a computer and do not have up-to-date anti-virus, anti-spyware, and firewall protection. (10 points)

___ I do not believe someone would break into my house to steal my personal information. (10 points)

___ I have not ordered a copy of my credit reports for at least 2 years. (20 points)

___ I use an unlocked, open box at work or at my home to drop off my outgoing mail. (10 points)

___ I do not have a P.O. Box or a locked, secured mailbox. (5 points)

___ I carry my military ID in my wallet at all times. (It may display my SSN.) (10 points)

___ I do not shred my banking and credit information, using a cross-cut “confetti” shredder, when I throw it in the trash. (10 points)

___ I throw away old credit and debit cards without shredding or cutting them up. (5 points)

___ I use an ATM machine and do not examine it for signs of tampering. (5 points)

___ I provide my Social Security number (SSN) whenever asked, without asking why it is needed and how it will be safeguarded. (10 points)

___ Add 5 points if you provide it orally without checking to see who might be listening nearby.

___ I respond to unsolicited email messages that appear to be from my bank or credit card company. (10 points)

___ I leave my purse or wallet in my car. (10 points)

___ I have my driver’s license number and/or SSN printed on my personal checks. (10 points)

___ I carry my Medicare card in my wallet at all times. (It displays my SSN.) (10 points)

___ I do not believe that people would root around in my trash looking for credit or financial information or for documents containing my SSN. (10 points)

___ I do not verify that all financial (credit card, debit card, checking) statements are accurate monthly. (10 points)

Ok, now tally up your points. Guess what? Each one of these questions represents a possible avenue for an identity thief. How did you do?

100 + points – Recent surveys* indicate that 8-9 million people are victims of ID theft each year. You are at high risk. We recommend you purchase a cross-cut paper shredder, become more security-aware in document handling, and start to question why people need your personal data.
50-99 points – Your odds of being victimized are about average.
0-49 points – Congratulations. You have a high “IQ.” Keep up the good work and don’t let your guard down now.

Remember, you cannot prevent identity theft. Criminals can commit identity theft relatively easily, but you can reduce your risk of fraud. One of the best things you can do is to check your 3 credit reports at least once a year. If you are a victim of identity theft, you will catch it early by checking your credit reports regularly. Your annual free credit reports are available from (877) 322-8228 or at www.annualcreditreport.com.

Over thirty different agencies are participating in providing great information for consumers this week, including the BBB, so check out National Consumer Protection Week information. Also, sign up for a daily tip from the BBB!

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Side Jobs: Your Way to a Successful Business

Although building a successful business involves knowing a great deal about a particular industry, the good news is that there are many ways in which to learn that don’t require expensive or time-consuming resources, such as a business degree. The following is a list of suggestions to help you learn about your industry and expand your network quickly with the goal of growing your business.

Volunteer your time. There are always people in need of extra help, especially the kind that comes free. Find outlets within your community to volunteer in some capacity that is related to your business. For example, if you want to start a home-based daycare business, consider volunteering your services to relatives, neighbors, and places of worship. This allows you to gain more experience in the industry, demonstrate your exceptional service, get your name locally recognized, seek referrals, and make contacts for potential customers. Think of this donation of time as a worthy investment in your business.
Become a temp. Many employment agencies specialize in placing workers in temporary positions and can even meet requests. Temp work not only allows flexibility to work with a variety of businesses, but it is also a very effective way to improve areas of weakness. For instance, if your business is lacking in customer service, consider taking a temporary customer service position. Most retail businesses have a corporate headquarters where customer service reps are trained and take calls from clients. Such a position would allow you to work on your interactions with customers and apply what you’ve learned to your own business.
Work as a consultant. If you have a specialized talent (web design, marketing, computer troubleshooting, financial projections, etc.), taking on a consulting position will help you make new contacts to bring to your business. You can start by contacting local business owners to offer your services for a reasonable hourly rate. Once they see what a great job you’ve done, they will be able to refer you to other business owners. Furthermore, you will have formed a professional relationship and expanded your business network.
Give back to your community. Local business schools and community colleges are chock full of motivated young people about to enter the workforce. Think about contributing your expertise and experience to their cause. For example, an owner of a business that provides classes in mixed martial arts can approach future graduates of local theatre and film programs. Lots of these students are about to move to a big city for the first time, so the owner decided to offer them a free self-defense class. Most of these students wouldn’t be able to afford the tuition for a normal class, but would eagerly take advantage of such an offer. Additionally, they would recommend the business to friends and family.

Taking on side jobs to build your business is a great way to stay motivated, improve areas of weakness, and build a network of potential customers and colleagues. How have you used side jobs to build your business? We’d love to hear from you in the comments section below!

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DSEF & CBBB: Don’t Forget the Credit Card Convenience Fee When Charging Taxes

Today’s highlighted blog post from the Council on Better Business Bureaus (CBBB):

Don’t Forget the Credit Card Convenience Fee When Charging Taxes

BY VERONICA BROWN

If you plan to charge your income taxes to your credit card, remember to factor in the convenience fee, says lifehacker.

Many people often find that they actually owe the government money and will choose to charge it to their credit card. A convenience fee will be added, and it can add up. For instance, a fee of $9.40 will be added to a $400 tax bill, while $117.50 will be charged to a $5,000 tax bill. In addition, if the fee is not paid within the credit card issuer’s grace period, interest will be charged as well.

On the bright side, the IRS does have an installment-payment plan (which requires qualification).

To read the full article, visit http://lifehacker.com/5887248/what-to-know-if-youre-planning-on-charging-your-taxes-on-your-credit-card

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Tips to Stay Up on Your Accounting

With that nasty tax deadline creeping up on us all, it’s time to assess the way you handle accounting for your business. Whether you’re a master of bookkeeping or a filler of hastily labeled shoeboxes, there are several resources available to you and lots of different ways to make accounting a manageable task that will keep your money in your pocket where it belongs.

Create a system to make your own. Categorizing and organizing receipts, bills, and other accounting documents can be overwhelming to say the least. Some keep alphabetical files, some keep files by month and year, and others keep files by kind (mileage, supplies, travel, etc.). There is no one right answer except that you need to choose or create one that will be most efficient for your business. For example, a direct seller of jewelry whose business consists mostly of home parties would be best suited by organizing her files by kind as the bills get paid and receipts come in. This way, all she has to do come tax season is to add up what is in the files to complete the IRS tax form. Bottom line: design a system of organization tailored to your business’s needs.
Track EVERYTHING. Every expense and every penny of income must be logged in some way. Even though chances are slim that you would be audited, make sure that everything is documented in case you are. Tip: Back up your data. Many banks keep online statements for 18 months, but the IRS can audit you going back three years (up to six if a major error is found). Consider scanning any documents of which you don’t have electronic copies.
Go digital. For those who want to de-clutter and are looking to deal with less paper, there are many websites that can help you do just that. Shoeboxed, for example, allows you to scan, upload, or mail in documents. Scanning can be done from a printer or from a mobile phone. From here, they will extract the data and categorize it into your own online account. Similarly, The Neat Company allows you to transform documents into a sort of digital filing cabinet. Services like these can be especially valuable for those who do business on the go.
Be a regular. You should have a regular frequency with which you handle your accounting. Twice a month works for most small businesses, but this would be another thing to assess based on your own needs. Choose and stick to a time when you are going to sit down and pay your bills; integrate that time into your regular schedule. The more regularly you address this area of your business, the more manageable and less time-consuming it will become. As an added bonus, you can catch any errors before they accumulate and cause major damage.

Keeping track of your accounting as you go is the most efficient way to stay on top of all the paperwork. Not having any system in place will result in inaccuracies that will cost you hard earned cash. How do you stay on top of your accounting? Please share with us in the comments section!

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DSEF & CBBB: Pain at the Pump: Gas Climbs to $5 per Gallon

Today’s highlighted blog post from the Council on Better Business Bureaus (CBBB):

Pain at the Pump: Gas Climbs to $5 per Gallon

BY VERONICA BROWN – FEBRUARY 24, 2012

Get ready for gas prices to shoot through the roof. Many Americans may begin to pay $5 per gallon, reports USA Today.

The surge in prices comes from not only rising prices in oil, but also lower refining capacity, tensions in the Middle East, and also the fact that spectators are driving up the price. The price of gas this February is up 42 cents from last year, with a record high of $3.65 per gallon.

On average, gas currently costs $4.20 in California, and $3.91 in New York. These prices are expected to keep climbing. A Washington state refinery that recently suffered damage from a fire could drive up prices in the region even higher this weekend.

In reaction to increased pain at the pump, consumers have begun to cutback on their gas purchases. Consumption fell 1.4 percent through February 17th, amounting to about 18 million barrels a day. This is the lowest since April 1997.

To read the full article, visit http://www.usatoday.com/money/industries/energy/story/2012-02-22/gas-prices-average/53229358/1

All posts tagged money management

DSEF & CBBB: 3 Easy Steps to Protect Yourself From Investment Scams

DSEF & CBBB: 3 Easy Steps to Protect Yourself From Investment Scams

Common Sense Business Tips

Common Sense Business Tips

Small Steps Can Lead to Big Payoffs

Small Steps Can Lead to Big Payoffs

Top Ten Small Business Pitfalls

Top Ten Small Business Pitfalls

Side Jobs: Your Way to a Successful Business

Side Jobs: Your Way to a Successful Business

Tips to Stay Up on Your Accounting

Tips to Stay Up on Your Accounting

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