Archives for 2017

Things You Should Know Before Trading in the Stock Market

Have you set any financial goals for yourself in the new year?

Many individuals want to get better with their finances and use the New Year as a starting point for setting goals and accomplishing those dreams.

If your money goal happened to be earning more income next year, one option might be to start investing in the stock market. Believe it or not, the stock market, when understood, can generate a lot of income that will continue to work for you if you have a strategy.

Before you go through that door and begin investing, there are some basics you’ll want to know as a newbie.

The Basics

The first thing you should know is the basics of the stock market.

It is made up of exchanges such as NASDAQ and the New York Stock Exchange.

Stocks will be listed under either of the exchanges which is essentially referred to as the market.

The exchanges are also how you’ll learn about supply, demand, and price of the stock you’re trading.

Individual traders are required to trade through a broker, which in modern times has simply become an online account represented by a broker.

Trades are placed through the broker and the broker will then do the transactions on your behalf with the exchange. Trading is done when the exchanges are open which is from 9:30 am to 4 pm Eastern Standard time. It is also good for novice traders to know the stock market holidays 2018 as the trading hours may be subject to change.

Learn the Lingo

One thing you’ll need to learn if you’re going to trade stocks successfully is how to talk like the professionals. Trading without a clear understanding of stock terminology could result in higher risks and fewer rewards.

Some of the most basic terms include buy, sell, bid, and ask, while some of the more difficult terms include beta, ETFs, trading volume, margins, and moving average.

Though you may be working with a broker who does a lot of the work for you, it is still instrumental to understand the terminology when investing in stock.

Importance of Diversification

When investing in stock, it is imperative to diversify your portfolio by investing in various companies or products.

Putting all your eggs in one basket essentially could lead to a total loss over time.

It is imperative to remember that though there can be high rewards, anything could change the tide including poor leadership, regulatory issues, or a health outbreak. By being invested in more than one stock, you can balance out losses easier.

Strategy is Imperative

As trading can often be ruined by emotions of fear, excitement, and greed, having a strategy in place can help to keep you on the straight and narrow.

This includes educating yourself on the current stock market and trends, understanding how much capital you have to trade, setting time out of the day to trade, as well as a plan for minimizing losses.

Stock market trading is often regarded as a surefire way to get rich. The truth is, however, it takes time, skill, education, and in some cases luck to actually be successful.

If you’re thinking of investing in the stock market as a money goal for the New Year, take the time now to get educated on the basics and the above-mentioned tips above. The more informed you are, the better prepared you are to make your money work for you ten times over.

Credit Sesame Will Give You A Free Credit Score (And Help You Find Better Loan Options)

By Mr. Money Leave a Comment

If you want to stay on top of your credit like I do, you have quite a few options that you can take advantage of in order to monitor your credit. With the passage of the Fair Credit Reporting Act legislation the federal government gave consumers the ability to pull their credit reports from each of the three agencies, TransUnion, Equifax and Experian, once a year. AnnualCreditReport.com is the government site where you can go to get your 3 free credit reports each year. I like to stagger them every 3 months or so, to get the most impact froom checking my reports throughout the year.

While you can get your credit report for free through the government site, if you want to find your credit score you'll have to pay an extra fee when pulling your credit report. But nowadays there are also a handful of sites out there that are offering your credit score for free , in exchange for using their sites – usually which offers deals on credit, loans and other financial products.

Credit Sesame is one of those sites, and they're offering you a free credit score – with no obligations, credit cards or other strings. Today I thought I'd do a quick look at the site.

Free Experian Credit Score At Credit Sesame

Credit Sesame has gotten quite a bit of buzz in the blogosphere recently. Why? Because they offer a free Experian credit score, without having to enter a credit card like some sites require.

I just signed up for Credit Sesame a couple of weeks ago after reading about the service on Twitter. I had just learned about Credit Karma and how you could get a free TransUnion credit score from them, and someone told me that the same thing was possible with Credit Sesame. So I decided to give it a go.

The Sign-up Process

Getting going with Credit Sesame was actually easier than I thought it would be. Basically they'll ask you for some basic personal info, a home address and then ask whether you are a homeowner or if you rent. Then in the next step it will ask for your social security number so it can pull your Experian credit file. If you're not sure about giving that info out, you may not want to proceed. The site is secure, however, and I'm ok with doing that. Once you enter your social, it will ask you to verify some information credit file information so that it knows you are who you say you are.

Getting Your Credit Score

After you signup you'll be taken to your Credit Sesame overview page where it takes a look at your current situation. Right there on the homepage under the “My Finances” heading, they'll show you your free credit score from Experian. What you're seeing is Experian's “National Equivalency Score”. Please note that each of the agencies has their own score, and this is different from your FICO score, which should be similar- but is different.

My score came up as a 789, which is comparable to the 780 that I got with Credit Karma/TransUnion. Not too shabby! How could I do better? Maybe actually use some of the credit that I have? (Do you see the “0% credit usage” in the graphic above?)

Finding Better Loan Options

For those who signed up as homeowners at the beginning of the process, Credit Sesame will also give you some further data including an estimated home value via eppraisal.com, a goals section where they show you how you can improve, and if you have outstanding loans, they'll give you some examples of how you can improve your current situation. They'll only show you loan options that you're likely to qualify for after running your credit profile and score, so there won't be a whole lot of bait and switch with rates and fees. What you see should be essentially what you get.

Their home loan technology is now actually integrated with Mint.com as that website's “home loan finder”, so you know it will be easy to use and effective – like mint.com

When I ran Credit Sesame against my situation they were able to offer me a few options our our only current debt – our home mortgage. They found us several lower rates on mortgages, but the closing costs associated with the deals made them somewhat a non-starter since by the time we would have them paid back through lower payments, we'll probably already be thinking about moving again. But for most people who are planning on staying put for a while, you'll probably be able to find some decent deals.

What's To Like About Credit Sesame

Credit Sesame has a lot of good stuff going for it. Here are a few things I like about the service.

It's a free service – and a free credit score! What's not to like about getting a free credit score without having to provide a credit card number? You might even find a better deal on a home or other loan.
Regularly updated credit scores: Your credit score is updated every month, so you can stay on top of your credit for drastic score swings -to tip you off that there might be a problem. Use it as part of a home-grown ID theft plan!
Save on home loans and other credit: Credit Sesame will show you if your current loan is a good deal, and if they can find a better deal they'll give you all the details up front about closing costs, break even time for refinancing, total savings and more.

Conclusion

Signing up for Credit Sesame was easy, painless and only took a minute. What it offers is well worth it. They give you your Experian credit score for free, when normally you'd have to pay to see it, or sign up for a free trial offer of some sort. They also give you some good options when it comes to refinancing your home mortgage if you have one, giving you the chance to save a ton of money on your mortgage.

Credit Sesame is now becoming a part of my homegrown credit monitoring plan where I'll be using it in conjunction with Credit Karma, AnnualCreditReport.com and Quizzle. All of these services will give you a free credit report or free credit score. You don't have to pay a ton to stay on top of your credit, just use the freely available services like Credit Sesame to keep tabs!

Credit Sesame is free to use and there is no obligation to continue using it if you don't want to, so you've really got nothing to lose. Head on over today, sign up and see where your credit score is!

4 Side Hustles You Can Start If You Have A Pick-Up Truck

By Miranda Marquit 3 Comments

When it comes to finding more money in your budget, there is only so much you can do to cut your spending and live frugally.

At some point, you might find that you can't cut anymore — or that you don't want to (after all, life is about living, too). This is when it becomes obvious that you might need to come up with some additional income.

This is fortunate because there are a number of ways you can start a side hustle to get a little extra cash.

If you have a pickup truck, your options might even be a little more varied. Here are 4 side hustles you can start if you have a pickup truck:

1. Hauling

Many people need stuff hauled away — but they don't have pickup trucks. I am lucky that my husband's cousin lives in town and has a pickup truck. He was a real life saver when we needed stuff ruined by flooding taken away. Advertise your services on fliers or in low-cost “service directories” in your local newspaper. Or just let your neighbors know. Being able to haul various items can be a great help.

2. Delivery

Another option is to provide delivery services locally. Many people order big items, but don't have a way to get them back home. Find out what local stores charge in delivery, and charge a little less if it makes sense for your truck (sometimes fuel costs can be prohibitive). Let people know that you'll take them to pick it up in your truck for less.

3. Moving

Help with cross town moves. You can charge for moving items from one location to another. Figure out how you can benefit others by helping out, as well as make a little money. The fact that you are another pair of hands to help get the job done may prompt many to hire you and your pick-up truck to help, as opposed to renting a truck and having to do all of it themselves — even if you cost a little bit more.

4. Yard Care

Someone who does yard care needs to have a way to haul equipment around. This is where a truck can come in. You can load up lawnmowers, trimmers, rakes and other equipment and take it to your clients' homes. This is a time-honored side hustle that can really provide a valuable service for those who don't have the time or ability to care for their own yards.

Things to Consider

One of the things to remember to do is to keep a good mileage log when you are on the job. This is tax deductible against your business income. Make sure that you only track miles for business purposes, though; miles for personal use are not tax-deductible. You do have to remember, though, to follow the laws in your state and city.

Before you start a side hustle using your pick-up truck, make sure you find out about insurance requirements, and business license requirements. You don't want to run afoul of the law while you are engaging in your side hustle.

9 Common Ways You Could Be Wasting Your Money

By Miranda Marquit 18 Comments

Most of us scoff at the idea of just throwing money away. However, you might actually be doing just that — every day. There are a number of practices, seemingly commonplace, that result in wasted money each month.

If you are trying to figure out what has happened to your budget, and trying to pinpoint where your money is leaking away to, here are 9 common ways that you could be wasting your money:

Credit card balances: Anytime you carry a balance on your credit card, you are paying the price in interest charges. Interest is money you pay for the privilege of borrowing. Stop carrying a balance, and you will find that you have more money in your pocket.
Interest rates and fees: Call your credit card company and ask for a lower rate on your credit card. In some cases, especially if you are a good customer, you can get a reduction of 2% to 3%. You can also call your bank to ask for fees to be waived. My bank waives one overdraft fee each calendar year — just for the asking. It never hurts to ask if you can have fees waived if you are late once or twice on a payment.
FSA mismanagement: Your Flexible Spending Account (unlike the HSA) is a use it or lose it situation. If you aren't paying attention, and if you don't use all the money in your FSA each year, you leave that money on the table, and it's wasted.
Cell phone: Rather than pay for a plan that you rarely use, consider your cell phone usage and your true needs. I have a prepaid cell phone service, and my husband uses an inexpensive pay as you go plan. Our phones aren't fancy, but they fit our needs and they cost a lot less than the smart phone and $100 a month plan my brother has — and rarely uses. Consider things like Virgin Mobile prepaid phone options as a way to save considerably on your monthly bill. Resource: Save Hundreds On Your Cell Phone Bill.
Car maintenance: The rules are changing with car maintenance. First of all, check the manufacturer's recommendations for the octane level of your fuel. There's no need to spring for the premium 93 grade when 89 will do just fine. Check the requirements, and don't pay extra. You should also look at other maintenance recommendations for your car. Some cars can go 5,000 or more without an oil change now. Don't pay extra for maintenance you don't need.
Interest free loan to the government: Instead of using your tax refund as a sort of savings account, adjust your withholding so that you aren't getting so much back. Instead, watch for a bigger paycheck and use that money to invest or improve your life another way.
Late payments: Get organized and be sure that you pay on time. Late payment fees and missed payment fees do more than just impact your wallet; the impact on your credit score can result in paying more in higher interest on auto and home loans.
Subscriptions you don't use: From superfluous cable channels to a magazine you don't read, subscriptions can cost you. Evaluate your regular subscriptions, and get rid of those you aren't using. From Gamefly to Netflix to that investment newsletter, cancel unnecessary subscriptions and save.
Failure to shop around: If you aren't shopping around for the best deal, you are wasting money. Regularly shop around for insurance rates, major purchases and more. Do a little research online, and see if you can get better prices on things you buy regularly as well as occasionally.

What are some common ways that you or people you know are wasting money?

Pros And Cons Of Getting A Big Tax Refund

By Contributor Leave a Comment

In 2016, the average tax return was $2,860.

Most people would never consider a large tax return to be a con. It’s certainly better than having to pay the taxman a huge chunk of change, but there can be drawbacks for some people.

Making smart decisions with your money includes paying taxes strategically. The Salt Lake City accountants at Anderson Bradshaw PLLC specialize in tax preparation and planning. They point out to clients that in some situations it may be best to plan taxes so that you pay less throughout the year and receive a smaller tax return.

Below is a rundown of the pros and cons of getting a big tax refund. Keep these things in mind now so you can start planning next year’s taxes.

Pro: A Tax Return is Extra Cash

Everyone likes getting a tax return because it feels like you’re being handed free money from the government. People eagerly check their tax return status, waiting for the moment when their bank account grows larger. The truth is many people can use the extra cash. According to Bankrate, nearly six in 10 Americans don’t have enough savings to cover a $500 unexpected expense.

Con: You Keep Less of Your Monthly Paycheck

Sometimes deductions and smart itemization lead to a fat tax return. Other times it’s because people pay more taxes than necessary every month. Some taxpayers do this purposely by arranging to have a surplus amount taken out just in case their taxes are higher than expected. If you aren’t sure what your tax responsibility will be and you want to minimize the chance of owing money in April, this is a sound strategy.

For the half of American families that live paycheck to paycheck, paying more in taxes than you need to every month may not be the best financial decision. This is especially true if you are continuing to rack up credit card debt or have high-interest unsecured debt.

Re-evaulating how much you pay into taxes could reveal that you regularly pay more than needed. Adjusting the withholding is like getting an immediate pay raise since you take home more of your paycheck every pay period.

Pro: Paying More in Taxes Forces You to Save

Are you the type that likes to spend? One of the advantages of overpaying taxes every month is it forces some people to indirectly save their money. If you’re the type that benefits from having Uncle Sam hold on to your cash then waiting on a large tax return could be financially sound.

Con: Many People Don’t Save or Invest Their Tax Return

Let’s be honest. When people get a chunk of money from a tax return a percentage of that money goes to discretionary spending. This is the spending that’s not necessary and can put a budget in the red.

What people should do with the extra cash is pay down debt (starting with the highest interest rate) or invest it so you can grow your assets. In surveys like the one conducted by GOBankingRates many people say they plan to use their tax return to pay off debt or bulk up their savings. However, 32% of respondents didn’t have a game plan. A great way to make sure your tax return isn’t wasted is to request a direct deposit into a savings account.

Pro: A Tax Return Can Act Like an Interest Free Loan

Some people treat their tax return as if it’s an interest free loan. They use it to make a down payment or purchase an expensive item that would otherwise require borrowing. If you don’t need the extra money for an emergency fund or paying bills, this is a financially savvy use of the return money since you’ll save money by avoiding interest. It’s also a sound strategy you’re not the best at saving money for a big purchase.

Con: Paying Too Much is Like Giving the Government an Interest Free Loan

When you receive a refund it’s the government paying you back money that was overpaid. But up until that point the money sat in federal government bank accounts, not yours. Instead of giving the government an interest-free loan, you could save the extra money yourself and earn interest on it.

Main Menu