Articles by Miranda Marquit

About Miranda Marquit

Miranda is a freelance writer and professional blogger. She writes for a number of personal finance blogs, including Planting Money Seeds. She has a M.A. in journalism, and is the author of Confessions of a Professional Blogger. Miranda lives Utah, where she enjoys spending her free time reading, traveling and playing with her son and husband.

Saving For Retirement: Planning Your Monthly Income

By Miranda Marquit 2 Comments

There are a number of rules of thumb associated with saving up for retirement.

Most of them, though, focus on amassing a nest egg.

This nest egg should be big enough that when you withdraw about 4% a year, it should be earning a return that allows you to meet your yearly expenses (when combined with your Social Security income, of course).

Another thing you can do, though, is save for retirement focusing on creating income streams that provide for your monthly needs.

Determining Your Monthly Requirements

The first thing you will need to do is determine your monthly expenses in retirement.

For most people, this requires estimating what will be spent during retirement. You can base your monthly expenses on what you spend now, though. Perhaps you will have your mortgage paid off by then, or your other debts paid off. Many choose to determine that these amounts will still be spent — but on something else (such as travel or a hobby).

Once you know your monthly requirements, you can factor in your income from a retirement account and from Social Security. Be careful, though: Social Security benefits may be reduced in the future, and you never know what will happen with retirement investments. Retirement calculators can help you figure out how much of your income you should be setting aside to reach a certain goal. Many “regular folks”, though, understand that they might not be able to amass a huge nest egg in time to retire. The good news is that you don't have to create a huge nest egg if you instead focus on developing different income streams.

Cultivating Income Streams For Retirement

Once you know approximately what your monthly income needs will be in retirement, you can start looking for ways to cultivate income streams for retirement. Relying on once source of income to meet your needs can present problems down the road. If that source of income fails, then you may find that you are unable to meet your needs at all. Starting to develop different income streams now can benefit you in the future.

There are a number of things you can do now to build a foundation of passive income that can last during retirement. Plus, you can use the money you earn now to build a nest egg. Some possible items include:

Royalties: When you create something, you can generate regular income. Selling ebooks, or music, or writing a book can be a way to generate income. Look for ways to use your creativity.
Business: Start a business. You will build up revenue, and after a while you can continue to earn money. Even if you turn the business over to someone else to run after you retire, there are still ways to ensure that you receive a revenue stream from the business.
Rental Property: If you can deal the inconveniences of renting, and if you can buy a rental property, it can be one way to prepare for the future. Start now, and the rent paid by tenants will pay off the mortgage. Hopefully, by the time you are ready to retire, the mortgage on the property will be paid off and you can receive an income stream from that.
Web Sites: These days, you can earn income from a web site. Affiliate programs and ads provide you a way to earn a regular income indefinitely, as long as you take the time to set it up now, and maintain it.

There are other options as well, including freelance work and part time work. With some planning, you can diversify your income so that it meets your retirement needs — without a massive nest egg.

Do you have other suggestions for creating ongoing income that you can use in retirement. Tell us your ideas in the comments!

Using Free Resources To Keep Tabs On Your Credit Score

By Miranda Marquit 2 Comments

One of the ways that you can stay on top of your finances is to track your credit score.

While a credit score isn't the be-all and end-all of your financial snapshot, it can still be rather helpful as you keep tabs on your overall financial situation.

While it might cost you money to access a more “official” credit score, there are plenty of ways that you can get a general idea of how you are doing when you use some of the free resources available for credit scores.

Free Credit Scores

There are ways to get free credit scores, including having a loan rejected. However, if you don't want to apply for credit just to see where you stand in terms of your credit, there are sites where you can see your free credit score.

Some of them include:

BankRate: Get your Experian score for free on this site.
Credit Sesame: Credit score, basic financial info, and more on tracking your financial situation.
Credit Karma: TransUnion score, as well as your VantageScore and even your insurance score.
Turbo from Intuit: Transunion score is supplied by Turbo, as well as a variety of helpful financial information about you and tips for your situation.
eCredable: You won't get a consumer credit score like you're used to, but you will get an idea of where you might stand with the help of the credit rating simulator.

It's important to note that these free credit scores aren't “official.” It's not what lenders see when they pull your credit. And they aren't scores that you would get if you paid for your score at myFICO.com. However, these free scores can give you a good idea of whether or not you are making progress with your finances.

Track Your Financial Progress

For the most part, free resources are best used to keep tabs on your general situation. You can use these resources to see whether or not you have good credit in general, as well as see where you could improve. Additionally, if you notice a sudden drop in your score on one of these sites, it could be an indication that there is something very wrong with your credit (including identity theft). Monitoring your situation can alert you to possible problems that you might need to address quickly.

If you think that the issue might be identity theft, you should check your credit report as soon as possible. If you haven't checked in the last 12 months, you should log on to annualcreditreport.com to get a report from each of the three major bureaus for free. Even if you aren't eligible for a free report right now, it is still worth it to pay to access your report if you think that your identity might be at risk.

Keep an eye on your situation, and you can watch it improve. Many of these sites offer insights into where you stand in comparison to others, as well as providing tips for improving your credit situation. If you are looking to take control of your financial situation, these free resources can actually be quite helpful. Get an idea of where your finances are going, and you'll be in a better position to improve your situation.

Do you know of any other free resources to keep tabs on your credit? Tell us in the comments.

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?

How To Protect Your Identity While Traveling

By Miranda Marquit 1 Comment

I‘ve done a lot of traveling in recent weeks.

Not only have I moved across the country, but other than that, I've also gone on several small trips, including a trip to Dallas. In these few months, I've had two different cards throw up fraud alerts. These were alerts on my own spending, but it did feel somewhat comforting to know that there are some protections in place against identity theft that come with my cards (although somewhat inconvenient to clear up).

You might be surprised at how easy it can be for someone to steal your identity while you are on the move. Here are some tips from TransUnion that should help you protect your identity while you are away from home:

Watch Out for Public Wi-Fi

It's great that you can connect to the Internet for free almost anywhere you go. From an airport service to a hotspot in a coffee shop, there is a good chance you can find a way to get online without cost to you. But that free Wi-Fi does come with a cost — it's not secure.

“Don't check your bank account in public places where the Wi-Fi is not secure,” cautions TransUnion. Instead, wait until you are on a private and protected network to look at sensitive information. Otherwise, someone could get your info from an unprotected connection.

Use a Privacy Screen

This is something I wouldn't have thought of, but now I see how much sense it makes. If you are traveling on a plane or bus, it's easy for someone else to see what you're doing. Just seeing your Facebook page can provide someone with a great deal of information about you.

Even if you aren't connected to the Internet, the things you are working on might give clues about information that can be used to steal your identity. Be aware of the possibility, and work to prevent others from looking over your shoulder.

Don't Share Plans on Social Media

Watch out for thieves who might use your social media posts against you. From going to your house to look for mail left in the mailbox (and taking your statements or credit card offers), to having an idea of where to target you, you might have a problem.

I might share too much on social media sometimes, but I generally try to share pictures and plans after the fact. Additionally, I have made efforts to get my bills electronically delivered to avoid theft out of the mailbox.

Stop Your Mail

If you are concerned about what information someone might get out of the mailbox, stop the mail. If you will be gone for more than a few days, it makes sense to use a mail hold. That way, you don't have to worry about whether or not it is delivered, and you have problems. You can pick up the mail and restart it when you get back. At the very least, though, try to arrange for someone you trust to bring your mail into your home while you are gone to reduce the chances of having your information stolen.

While you can't completely protect yourself all the time, with a little planning, it's possible to reduce the chances of having your identity stolen while you travel.

Have your own tips for protecting your identity while you travel? Tell us in the comments!

Do You Know What REALLY Affects Your Credit Score?

By Miranda Marquit Leave a Comment

Many consumers are aware that a credit score is an important part of their finances.

In recent years, a credit score has become an indicator of your financial wellbeing and reputation. Even companies that aren't lending you money might be interested in your credit score.

As a result, it's important to keep tabs on your credit score, and understand what is likely to impact your score.

Unfortunately, there is some confusion over what is likely to affect your credit score. A recent survey from TransUnion indicates that there are some major points of confusion for many consumers when it comes to their credit score.

Are You Confused About What Affects Your Credit Score?

The TransUnion survey identified some common points of confusion for many consumers and strives to clarify some of the confusion. Here are some of the main misconceptions that consumers have when it comes to credit scoring:

Cell Phone and Rent Payments Affect Your Credit Score: According to the survey, 45 percent of respondents thought that rent directly affected their credit scores. At the same time, 47 percent thought that cell phone payments directly affect scores.

The reality is that, while some credit bureaus and even FICO are toying with the idea of including some non-traditional information in their models, right now credit scores aren't directly affected by these payments. If you miss payments, your account can be turned over to collections, and that will drag your score down, but right now positive payments aren't often reported and used to figure your credit score.

Income Matters for your Credit Score: It would be nice to think that, as your income improves, so does your credit score. In fact, 48 percent of respondents to the TransUnion survey assumed that a pay raise would help credit scores.

However, this isn't the case. Your income is not considered a factor in determining your credit score. How much debt you carry relative to your available credit matters, but your income isn't a factor. You're better off making sure that you pay on time and keep your debt low — no matter how much you make — than hoping that a pay increase will save your credit score.

Credit Inquiries and Your Credit Score: Many consumers are also confused about how credit inquiries affect their scores. About 40 percent don't understand the connection, and some believe that checking their own scores will cause a problem.

If you apply for credit, your score could be impacted. However, if you check your own credit score, nothing will change about your score. There is confusion about other inquiries as well, though. Sometimes telecom companies and others look at your score, and they way the look might have different impacts. It's best to ask before you agree to an inquiry.

In the end, understanding how your credit score is figured can be a big help to you as you plan ahead. Before making a major purchase that requires a loan, such as a home, you need to make sure that you have good credit. Staying on top of the situation can benefit you later.

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