All posts tagged money

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

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

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. 

Tips to Stay Up on Your Accounting

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.

  1. 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.
  2. 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.
  3.  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.
  4. 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!

DSEF & Money Wise Women: Overcoming Underearning

DSEF & Money Wise Women: Overcoming Underearning

Today’s highlighted post from Money Wi$e Women Get Smart Teleseminar Series (Click here):

Overcoming Underearning

Barbara Stanny will help us understand the characteristics of underearners. She will discuss the process of Overcoming Underearning in five steps. You won’t want to miss this thought provoking and life changing teleseminar.

Barbara Stanny, author of Prince Charming Isn’t Coming; Secrets of Six-Figure Women and Overcoming Underearning

Barbara Stanny is a woman on a mission. That mission is to motivate women to become financially empowered. Barbara grew up relying on her father (the ‘R’ of H&R Block), then her husband, to manage her money. But a devastating financial crisis became a personal wake-up call. Barbara’s journey to financial independence is inspiring. She is an author, popular keynote speaker and hosts Overcoming Underearning workshops.www.barbarastanny.com

DSEF proudly sponsors the free Money Wi$e Women Get Smart Teleseminar Series hosted by Marcia Brixey, Founder and President of Money Wise Women Educational Services and author ofThe Money Therapist: A Woman’s Guide to Creating a Healthy Financial Life. The series covers topics related to business and finances and provides women the opportunity to learn from professional experts in a safe, comfortable environment.

To find out about upcoming teleseminars, visit http://www.moneywisewomengetsmart.com/

Know Thyself and Drink Lemonade

Know Thyself and Drink Lemonade

Know Thyself and Drink Lemonade

Guest post by Lora Kloth

“When life hands you lemons, make lemonade…”

As a small business owner you probably can relate to my recent career experience. Although I don’t have a business of my own, I had a circumstance that forced me to evaluate my career goals, personal finances, and self-discovery.

Three years ago, my career as full-time association research librarian abruptly changed—my hours were reduced to part-time.  I felt deluged with lemons.

I allowed myself a brief hiatus for frustration, but realized that wasted time.  I realized the new schedule created an opportunity for me to try new things. And then I discovered aspects of myself I didn’t know existed as I adapted to an uncertain future:

  • I enjoyed brief “stay-at-home mom” status.
  • I considered a career change to court reporting and went back to school—and failed miserably!  But in this “failure” I realized my true calling is librarianship.
  • I accepted the opportunity to teach information literacy despite never having taught anything before. But I did it, successfully, and made wonderful connections.

Here are guidelines to help become “future ready” when your career takes an unexpected turn:

Identify career goals, take stock of your personal life, and find a balance.

  • Discover your strengths and weaknesses.
  • Realize that “failure” offers experience and potential for future success.
  • Don’t underestimate what you can achieve.
  • Be flexible.
  • Try new things!
  • Know what makes you happy.
  • Interact with diverse groups of people.
  • Commit to lifelong learning.

Upon reflection, those same guidelines also apply to managing personal finances and building a secure financial future:

Become Informed.  Learn about different investments vehicles and be actively involved in financial decisions.

  • You can do it!  Don’t be intimidated by the world of money.  Have confidence in your abilities.  Ask questions and get answers!  Your credit union is a great source for advice, products and services.
  • Don’t be overwhelmed.  Commit to slow and steady progress by setting goals.
  • Make a budget. Then stick to it.
  • Reduce debt.  Establish a savings plan and whittle away at those credit card bills.
  • Consider the importance of tax planning. Seek the services of a professional.
  • Don’t forget about retirement!  Set up an IRA or other investment vehicle to prepare for your future.
  • Know your risk tolerance.  Can you sleep at night with the types of investments you have? Are you in it for the long-term?

Getting tossed a “lemon” turned into an opportunity for me. It gave me a greater sense of confidence, self-reliance, independence, and satisfaction knowing I really was in charge. In the process, I developed a contingency plan for unexpected life events.

Start your financial future now. Look back at your experiences—are you willing to learn and move ahead if you’re tossed a lemon? Are you in control of your personal finances? Know thyself! Lemonade is actually a refreshing beverage.

Lora Kloth is research librarian at Credit Union National Association in Madison, Wisconsin. She earned her M.A. in Library and Information Studies at Northern Illinois University, and her B.A. in English from the University of Wisconsin-Stevens Point.  She enjoys making lemonade with her two daughters, ages 13 and 7.

DSEF & Money Wise Women: Organizing Your Financial Records

DSEF & Money Wise Women: Organizing Your Financial Records

Today’s highlighted post from Money Wi$e Women Get Smart Teleseminar Series (click here):

Organizing Your Financial Records

Organizing your financial records provides you with a sense of freedom and accomplishment. Learn some simple steps you can take to organize your financial records. You’ll also learn what records to keep and which records you should toss. Once you’re organized, you’ll be ready to determine your net worth.

Stacey Anderson, Organized Innovations

Stacey Anderson is a Professional Organizer, speaker and author. As founder of Organized Innovations she has tackled almost every dis-organized situation out there. Her book Get Organized : Get Revitalized is chalk full of quick, easy to implement tips for those struggling with getting started. Stacey is an active member of the National Association of Professional Organizers and is currently on the Seattle Chapter board. She has been a guest expert on local radio and has been featured in many local newspapers. www.organizedinnovations.com

DSEF proudly sponsors the free Money Wi$e Women Get Smart Teleseminar Series hosted by Marcia Brixey, Founder and President of Money Wise Women Educational Services and author ofThe Money Therapist: A Woman’s Guide to Creating a Healthy Financial Life. The series covers topics related to business and finances and provides women the opportunity to learn from professional experts in a safe, comfortable environment.

To find out about upcoming teleseminars, visit http://www.moneywisewomengetsmart.com/

DSEF & CBBB: Names Top Ten Scams of 2011

DSEF & CBBB: Names Top Ten Scams of 2011

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

Click here:

BBB Names Top Ten Scams of 2011

Better Business Bureau investigates thousands of scams every year, from the latest gimmicks to schemes as old as the hills. Our new Scam Source (www.bbb.org/scam) is a comprehensive resource on scam investigations from BBBs around the country, with tips from BBB, law enforcement and others. You can sign up to receive our Scam Alerts by email, and you can also be a scam detective yourself by reporting scams you’ve discovered.

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.

Free Educational Series for Entrepreneurs

Free Educational Series for Entrepreneurs

Money Wise Women Educational Services is a non-profit organization dedicated to educating and empowering women to live financially healthy lives. DSEF proudly sponsors the free Money Wi$e Women Get Smart Teleseminar Series hosted by Marcia Brixey, Founder and President of Money Wise Women Educational Services and author of The Money Therapist: A Woman’s Guide to Creating a Healthy Financial Life. The series covers topics related to business and finances and provides women the opportunity to learn from professional experts in a safe, comfortable environment.

Here are only some of the topics that can empower your business, money and life. Listen to past interviews with professional experts:

  • The 5-Keys to Unlocking Passion, Purpose and Prosperity: A Transformational Approach to Goal Setting
  • Managing Your Time and Multiple Commitments
  • Tax Tips For The Self Employed
  • Reduce Debt, Reduce Stress
  • Your Money Personality And Self-Employment
  • Power of Vision Using Dream Boards
  • So You Want to be an Entrepreneur
  • Give Your Elevator Speech a Lift
  • Create the Life You Imagine: Dream It, Believe It, Be It
  • Goal Setting for Financial Success and Prosperity
  • Train your Brain
  • Achieving a Lifetime of Financial Security
  • Women And Leadership – A perfect match
  • Email writing that counts

And many more! To see the complete list and access each recording, visit http://www.moneywisewomengetsmart.com/past_teleseminars.html

To find out about and register for upcoming teleseminars, visit http://www.moneywisewomengetsmart.com/

‘Fiercely loyal’ to a financial institution? – Guest Post by Janet Garkey, CUNA

‘Fiercely loyal’ to a financial institution? – Guest Post by Janet Garkey, CUNA

From the DSEF: Today we’re thrilled to bring you a guest post from Janet Garkey of the Credit Union National Association (CUNA), a DSEF strategic partner. In partnership with state credit union leagues, CUNA provides many services to credit unions, including representation, information, public relations, continuing professional education, and business development. Ms. Garkey has more than 20 years of personal finance experience in the private, public, and nonprofit sectors.

Janet Garkey

‘Fiercely loyal’ to a financial institution?
by Janet Garkey

Even a simple dog walk can turn educational. And the day job comes in handy at these times.

One of my neighbors—in the wake of so much media attention about big banks charging new or higher debit card fees—approached me during a recent walk and asked, “What’s the difference between a bank and a credit union?”

My dog is smart. She sat down. I turned to my neighbor and began to explain.

Philosophy:
Credit unions are not-for-profit financial cooperatives that exist to serve their members, not to make a profit. The original concept was simple: Credit union members pool their savings and lend to each other. Earnings are returned to members in the form of better rates, fewer and lower fees, and improved services. Banks exist to earn a profit for stockholders.

Ownership: Each credit union member has equal ownership and one vote, regardless of how much money the member has on deposit. That means each customer is both a member and an owner. Banks are owned by stockholders.

Control and management: Credit unions are managed by unpaid directors, who serve voluntarily and are elected by members. Banks have paid directors, legally bound to make decisions in the best interests of their stockholders.

Membership eligibility: People qualify for credit union membership through a common bond. Most U.S. citizens qualify. For example, membership is open to those who work, live, worship, or attend school in a defined community. There are credit unions for military personnel and teachers, and credit unions open to everyone in a particular county. Currently, nearly 94 million members own more than 7,400 U.S. credit unions.

Social purpose: People helping people. Every member counts, and the goal of a credit union is to serve all members well, including those of modest means. Members are fiercely loyal because they know their credit union will be there for them in bad times, as well as good.

Financial education for members: From the very beginning, credit unions wanted to keep members economically independent by helping them learn to save and borrow wisely. Credit unions hold educational seminars on car- and home-buying, basic budgeting, fraud prevention, and more. And they offer a wide variety of print and online tools to help members become better-educated consumers of financial services.
Just as I paused, my dog stood up, anxious to move on down the street. But I had one more message for my neighbor. Credit union founders had a motto that described why credit unions were formed in the first place: “Not for profit, not for charity, but for service.” And in this day and age, great service translates to loyalty. Just ask my dog.

To find a credit union near you, visit aSmarterChoice.org.

 

Janet Garkey has more than 20 years of personal finance experience in the private, public, and nonprofit sectors. She joined Credit Union National Association in 2003 and develops personal finance products for credit unions. She has held positions at Iowa State University Extension, American Express Company, and the U.S. Office of Consumer Affairs. She currently serves on AFCPE’s Board of Directors. She twice served on the Board of Directors, served as President 2002-2003, and chaired several committees for the American Council on Consumer Interests. She has a B.S. in Consumer Affairs from the University of Wisconsin-Madison, M.S. in Consumer Economics/Public Policy from the University of Maryland, and completed the Accredited Financial Counseling certification from AFCPE in January 2009.

How to Use Credit Cards Wisely

How to Use Credit Cards Wisely

Like most things in life, there are always two sides to everything. We try to maximize the benefits and minimize the negatives. The same holds true with credit cards. They can be a valuable resource, but you have to use them wisely or they could cause trouble! Understanding the pros and cons of credit cards can help you navigate your financial decisions successfully.

Here are the Pros of credit cards:

  • Convenience – You can use credit cards almost anywhere and for almost anything.
  • Great for emergencies – If your car breaks down and you need it fixed, your credit provides you with an immediate sum of money.
  • Rewards programs – These days you have so many choices when it comes to reward programs. If you want to save money on gas, get a card that gives you a discount. If you want to travel, get a card that give you free airfare mileage. If you want to start a college fund, get a card that will put money into your child’s college fund.
  • Building your credit history – Credit cards are a quick and easy way to build up your credit score.
  • Easy way to keep track of spending – Your monthly statement can help you maintain a budget, and manage expenses.
  • Establish a business account – With a business credit card account you’re keeping your business and personal funds separate and establishing a business credit history.
  • Security – If you lose your money it’s lost forever, but the bank can replace a credit card and stop any unauthorized purchase. And if you overpay for something or receive a defective product you can contest it or get your money back through your credit card company.
  • Consolidation – If you’ve used several credit sources, you can consolidate payments into one payment.

These are the Cons that you want to minimize:

  • High interest rates – Make sure you can pay off your balance each month.
  • Fees and penalties – Choose credit cards that have lower fees and always pay on time.
  • Identity theft – Having a credit card increases the risk of identity theft. Be sure to keep an eye on your statements, and shred them before discarding them.
  • Increase debt – If you’re not disciplined, you can easily find yourself with a large debt. Don’t let your debt get out of hand.
  • Credit score risk – If you have too many cards or don’t maintain them well, your credit score can drop quickly.

Here’s how to maximize the advantages:

  • Use your credit cards in emergencies primarily.
  • If you have a business, establish a credit card in your business name to separate your business and personal finances.
  • Choose and use rewards programs wisely to maximize discounts, accumulate travel miles, start a college fund and meet other financial goals.
  • If you have a lower interest rate or 0% promotional cards, use them to pay for large purchases, but make sure you can pay off the debt before interest rates increase.
  • If you need to increase your credit standing or score, use your credit cards and pay on time. Carry some debt short term and then pay off the balance. Financial institutions are evaluating your ability to maintain your debt in calculating your credit score.
  • Review your credit card statement every month and use it to maintain your budget. If you find that you are spending too much, switch to cash only purchases.
  • Use credit cards for thoughtful purchases and never for impulse buying.
  • Put all your automatic payments on credit cards so you have a record of them, but make sure you pay them off each month.
  • If you have several higher interest payments that can be lowered by consolidating them onto a lower credit card, do so, but keep in mind that it’s only for the short term and you must pay them off before the interest rate rises or is due.

Credit cards are a modern convenience and can be beneficial if used properly. Are there other advantages that you can think of? We would love to share your tips with our community.

Opt Out of Debt, Not Credit – Guest Post by Rod Griffin, Experian

Opt Out of Debt, Not Credit – Guest Post by Rod Griffin, Experian

From the DSEF: We’re delighted today to share with you a guest post from Rod Griffin, Director of Public Education at Experian. Experian, a Direct Selling Education Foundation strategic partner, is a global leader in providing information, analytical tools and marketing services to organizations and consumers to help manage the risk and reward of commercial and financial decisions. 

Rod Griffin, Director of Public Education for Experian

Opt Out of Debt, Not Credit
Guest post by Rod Griffin

I was recently asked if a person could “opt out of credit reporting.” The answer is yes, but only if you live a truly cash-only existence. If you never use credit of any kind you will not have a credit report. Most would find that having no credit report is not as desirable as it first sounds.

Take a moment to consider how ubiquitous credit and credit reports are in your daily life, even for things that don’t involve debt. For example, cellular telephone companies typically review your credit report when you apply for service, utility companies and apartment complexes do the same before activating an account or approving a lease, and a credit card is often required to reserve a rental car or hotel room.

Without credit or a credit report, you may be required to pay a deposit or security fees, have a hold placed on your checking account to obtain services and could even have difficulty qualifying for rent or getting a job.

A better approach is to opt out of debt, not credit. You can have one without the other.

Start by paying off any existing debts. You might choose to close some of your accounts, but don’t close all of them. You only need one or two credit accounts to have a strong credit report. Make a small purchase from time to time and pay the charge in full to demonstrate the account is active and that you make good credit decisions.

You still must do all of the things you would do if you were living a cash-only lifestyle: budget carefully, don’t spend more than you earn and pay yourself first by setting aside savings regularly.

But, by opting out of debt, not credit, you will keep your credit report, which is an important and powerful financial tool.

Rod Griffin is Director of Public Education for Experian. He is responsible for Experian’s national consumer education program and supports the company’s community involvement and corporate responsibility efforts. He supports various national consumer education initiatives including the LifeSmarts Consumer Knowledge Competition, for which he serves on the Corporate Advisory Board, and the Jumpstart Coalition for Financial Literacy. In addition, he produces a variety of consumer education materials and for more than a decade has written Ask Experian, an online consumer credit advice column. Rod holds a B.S. in journalism from the University of Kansas, has a Fair Credit Reporting Act certification from the Consumer Data Industry Association and is a Center for Financial Certifications Certified Financial Counselor.