Articles by Miranda Marquit

Why Now is the Time to Kick Up the Debt Reduction

As you look forward to another year, you're probably thinking of some goals you'd like to accomplish. Even if you don't set formal New Year's resolutions, chances are that you probably have some expectations for the coming year, and some things that you'd like to make happen.

If you still have high-interest consumer debt, now is probably a good time to tackle that. The current situation with the economy is likely to change, and when that happens, you might find yourself paying more in interest than you would like after this year.

Fed Taper And Rising Interest Rates

reduce-your-debt Since before the financial crisis, the Federal Reserve has been taking steps to keep interest rates low. After the financial crash, and after the Fed cuts rates as far as they could go, they took it a step farther and actually started adding to the monetary supply. All of this has meant super-low interest rates.

For savers, it's been something of a nightmare. For those with debt, though, the relatively low rates mean that more of their payments are going toward reducing the principal on their debt.

Now, though, the Fed has begun to taper its asset purchase program. The economy is picking up, and that means that interest rates are likely to rise. Debt is probably going to cost more by the end of 2014, and that means that it's probably time to act now.

Get Rid Of High Interest Consumer Debt

If you still have credit card debt or other high-interest consumer debt, now is the time to kick up your repayment. Call your creditors and see if you can get a bit of an interest rate reduction. If balance transfers are options, make use of them so that you can lock in lower rates. Take a day to work out a plan that can help you improve your finances and help you reduce your debt.

Lock In Lower Rates Now

It's also a good time to lock in lower rates. At some point in the relatively near future, rates on 10-year Treasury notes are going to rise. Mortgage rates are tied to these yields, so that means mortgage rates are likely to rise. They're already higher as compared the rate I got when I refinanced my house in early 2013. They are only likely to go up as the economy improves.

Car loans are also offering good deals right now. If you normally finance your cars (I know, I know, a cardinal sin), locking in now can make sense. Refinance your car or home, and you can save on your monthly payment and save on your overall interest.

Do You Have To Pay Off ALL Debt?

The good news is that you don't have to pay off all of your debt right now. I'm not fussed about paying off my mortgage early, and I am comfortable with my current car loan payment. I'm also in no hurry to pay off my student loans. Why? Because all of these loans are locked in at very low rates. My mortgage rate is low, my car loan and my student loans are below 2%.

My investment returns are higher than what I pay in interest on these low-interest loans, and the interest on the mortgage and student loans is tax-deductible.

Consider your situation, and what makes sense for you. If you have high-interest consumer debt, think about speeding up your pay off schedule.

New Year Money Goal: Pick One Big Thing To Accomplish

By Miranda Marquit Leave a Comment

In the past, I've made big lists of New Year's resolutions, only to give up on most of them within a couple of months. Having several money goals to focus on is a bit much, and you can easily become overwhelmed as you try to multi-task your money goals for the coming year.

Instead of making a list of several money goals, try picking one big thing to accomplish during the year. The great thing about this approach is that you have one over-arching goal that can be broken down into manageable steps.

What's the Most Important Financial Thing You Can Accomplish This Year?

pick one goal Your first step is to consider your priorities. What's the most important thing you can do with your money this year? What do you most want to accomplish? Perhaps you want to pay down debt. Maybe you want to work toward maxing out your retirement account contributions. Maybe you want to save up for a down payment on a house.

This year, I want to boost my income investing efforts. I haven't done much with dividend stocks and other income investments, and I want to try and remedy that problem. That's my big goal for the year.

Once you figure out the most important thing your money can do this year, it's time to make a plan.

Break Your Big Goal Down

First of all, it's important that you realize that focusing on one aspect of your finances for the year is not an excuse to neglect what you're already doing with your money. If you automatically set aside $200 a month in an IRA for your retirement, don't change that just because your focus is saving up for a down payment. If you already have solid money practices in place, keep with them. Use your financial resolution as a way to take one area to the next level, not as an excuse to drop all the good things you're already doing.

Thinking of your big goal, acknowledge what you need to do in order to make it happen. What steps do you need to take to achieve your big goal. The great thing about choosing one thing to work on is that you have the entire year to work toward your accomplishment.

Let's say you want to work up to the point where you can max out your IRA. For 2014, you can contribute up to $5,500 for the year. This comes to $458.33 a month. If you already contribute $200 a month, this means you need get to the point where you're contributing another $258.33 each month. Chances are that you can't just add that much each month immediately. You need to work up to it.

Perhaps you think you can free up $58.33 immediately. Go ahead and start contributing that, and then start seeing where you can find more money. Whether it's cutting back on things you don't need, or whether it's earning more money, you can gradually make the changes in your life that lead to the point where, by the end of the year, you are contributing $458.33 each month to your IRA. It's small steps throughout the year, but you'll reach your goal — and it will be easier to max out your IRA each year going forward. If the contribution limit is raised, you'll more easily be able to add a little bit more each month, since you can break it down.

This process works with other money goals as well. Breaking it down and focusing on one objective can help you get your finances in order and make significant progress.

3 Spending Traps To Avoid This Holiday Season

By Miranda Marquit 1 Comment

This time of year, it's all about the shopping.

Shopping for food, for gifts, and for decorations.

However, it's easy to fall into spending traps when you're already predisposed toward spending money.

Before you head out, be aware of the following spending traps, and do your best to avoid them.

1. Buying Something Because It's a “Good Deal”

When you're already on the hunt for bargains, it's easy to add just one more thing to your cart because it's a “good deal.” But do you really need it — or even want it?

If it's not on your list, you are still spending money you haven't planned to spend, no matter how big of a bargain it is. It makes more sense to stop and examine the purchase before adding it to the basket.

Ask yourself why you're getting the item. If your best answer is “It's a good deal!” that's really not good enough.

2. Minimum Spending for Free Shipping

Many retailers offer free shipping if you spend a minimum amount.

The problem with this arrangement is that it can trick you into spending more than you had planned just for the free shipping. This used to happen to me in the past. My husband and I, when shopping online, would hunt for a few more items to reach the minimum required for free shipping. After a while, though, I realized that we were often spending $10 or $15 extra in order to save between $8 and $9 on shipping. All told, we were spending extra, and still coming out behind.

Instead of trying to hit a minimum, look online for shipping promo codes, or look for shops that offer reasonable prices and free shipping. If you shop at Amazon a lot, it can be worth it to pay for Amazon Prime in order to get the two-day shipping. It comes in handy during a pinch when you need to order something quickly for the holidays. If you aren't worried about items arriving within a certain time period, you can save your basket and just keep adding to it with planned purchases over a period of a week or two until you naturally reach the free shipping minimum.

3. Credit Card Rewards

One of the best ways to shop more efficiently is to use credit card rewards to earn cash back. This cash back can offset some of the cost of your holiday spending. The problem comes in when you just pull out your plastic mindlessly for everything without tracking your spending. Even worse is when you make unplanned purchases, and you justify it by saying that you're earning rewards.

Rewards cards work best when you use them in conjunction with a spending plan. Figure out what, exactly, you will spend your money on, and then stick to that list. Make sure that you have enough money to cover your purchases when the bill comes so that you don't end up paying interest on your purchases. That paid interest can make your entire holiday season more expensive.

With a little vigilance, you should have no problem making the most of your money this holiday season, and avoid falling into expensive spending traps.

Giving A Gift Card? Make It Personal!

By Miranda Marquit Leave a Comment

One of the easiest ways to give a gift, particularly during the holiday season, is with the help of a gift card.

Gift cards are rising in popularity because they are easy to give, and the recipient can, to a certain extent, get what he or she wants.

The downside to giving a gift card is that it can seem so impersonal. Giving a gift card doesn't have to be impersonal, though.

“Gift givers worry that they seem impersonal,” says consumer expert Andrea Woroch. “However, you can personalize a gift card by going beyond the traditional picks like Starbucks or iTunes.”

Ideas For Personalizing Your Gift Card Giving

gift card for christmas One of the first things you can do is find out what the recipient wants. There are numerous places to share a gift registry or wish list.

Amazon has wish lists that others can browse. Woroch points out that there are gift card registries that allow recipients to designate preferred stores so that gift givers can offer something they really will use.

When you know what the recipient wants, it's easier to get an appropriate gift card. It can be to a favorite store, or for an experience that the recipient might like.

My brother and his wife like to try restaurants in their area, but they don't always feel like they can spend money on a night out when they are struggling graduate students. I buy a gift card to a local restaurant, and they appreciate it, since it allows them to do something out of the ordinary.

Woroch also has other creative ideas around the way you present the gift. I usually tuck the gift card into a colorful Chinese money-holder, but Woroch has some great ideas that can make the gift fun. “Go one step further in the personalization process by wrapping it with a unique and relevant item to make it fun to open,” she says. “For instance, a spa gift card could be wrapped with a soothing eye mask or body butter, while a golf store gift card can be wrapped with a sleeve of golf balls.” These fun gifts are inexpensive, but it adds to the fun of the experience, and can enhance the gift card.

Get Your Gift Cards At A Discount

One of the ways you can make your gift giving cost efficient is to use discount gift cards. I often get restaurant gift certificates on City Deals, where you can save money off the face value of the gift. Woroch suggests GiftCardGranny.com as a resource for discount gift cards. “You can find discount gift cards to popular stores at average savings of 12 percent,” she says.

This is a great way to give something the recipient will really enjoy — without breaking the bank. You can get everyone what they really want and save money on your holiday shopping to boot.

What do you think about giving gift cards during the holiday season? Do you try to personalize these gifts? What are your tips for saving money on gifts for the holidays?

What To Do If You’re Underemployed

By Miranda Marquit 4 Comments

One of the realities afflicting many in the current job market is the fact that underemployment is a big issue.

While it's true that unemployment is still something that weighs on many, there are also plenty of workers who are underemployed. The underemployed are usually over-qualified for their jobs, since they can't find work in their chosen fields, at pay rates that reflect their skills and expertise.

My husband is currently underemployed. He's an adjunct professor, but he should have a full-time job. In fact, he does the work of a full-time instructor, but is only paid about 1/3 of what a beginning professor should make. He helps students with their projects and he spends more time with them than many full-time professors. He also teaches between nine and 12 credits a semester.

Others are underemployed as well. There are those with advanced degrees working in coffee shops, and people with years of experience in their fields doing seasonal retail work.

So, if you are underemployed, what can you do?

Start a Side Hustle

One of the best things you can do is start a side hustle.

If you are mostly worried about the money, a side hustle can help you earn a little bit more so that you have what you need to move forward with your finances.

Depending on the way you are underemployed, this can be a great way to fill your time as well. In many cases, if you're underemployed, you probably aren't working 40 hours a week. You can use some of that downtime to start a side hustle.

Keep a Hand in with an Internship or Volunteer Work

If you are concerned about the impact your underemployment is going to have on your resume, consider doing an internship or volunteer work. No, you aren't going to get paid for this work, but you do have something for your resume. This something shows that you have been making efforts to remain marketable, and that you are still active in worthwhile endeavors. Having a little extra something to show on your resume can be a great way to remain an attractive candidate.

My husband volunteers his time helping students prepare papers for presentation at conferences and for publication. As a result, he is listed as an author, and it helps his vitae. It also shows that he is still active in his field, which is important when looking for a job in academia.

Continue Applying for Other Jobs

Don't give up on applying for jobs if you are underemployed. You need to stay on top of the situation as much as possible.

Keep networking and keep putting in applications for jobs that you are interested in. My husband has been reluctant to apply for many jobs, since he likes where we live now, and he keeps hoping that the university will hire him on as more than an adjunct. However, he's starting to see that might not happen, and he's started updating his info and leveraging contacts for the application process.

It's not fun to be underemployed, but if you want to chance the circumstances, you need to keep working hard, and looking for networking opportunities that can lead to a new job.

How To Identify A Solid Business Partner

By Miranda Marquit 3 Comments

Many entrepreneurs strike out on their own originally, but eventually realize that they need help as they find success. In some cases, this help means hiring the right people for your team. In other cases, though, the best approach is to partner up with another business-savvy person.

Finding a business partner you can trust can be a chancy venture, but the rewards, when you pick correctly, can be great.

The Advantages Of Having A Business Partner

business-partner-traits First of all, you need to decide if it makes sense for you to get a business partner. I didn't really think about getting a business partner (I didn't even think of my blogging as a business!) until two years ago, at the inaugural Financial Blogger Conference in 2011. Tom Drake suggested that we partner on creating a site, and now he's a partner on a second site that I own, as well as a helpful partner for the launch of my book.

When you work with a business partner, you have the opportunity to find someone who serves as a complement to your strengths and weaknesses. This means that you have more time to focus on the things you do well, while your partner works on the things that he or she does well. You have the chance to create a situation in which your combined effort is greater than the sum of your individual parts.

On top of that, a business partner helps you spread the work around. You are less likely to run yourself ragged and experience burnout when you have a business partner. I know that my business has benefitted from including Tom, and I would be lost without him.

So, if you are looking for a business partner, what should you look for? You don't want to choose wrong, or you could end up in a great deal of trouble.

Traits Of A Good Business Partner

Everyone looks for something different in a business partner. In my case, an ability to handle the backend of a web site, and monetize it, was extremely important. You might have other requirements for your own business partner. However, no matter what specific traits and expertise you are looking for, here are some traits common to a solid business partner:

Shares your enthusiasm: It helps if you are both enthusiastic about the venture and about the partnership. You want someone who is passionate as well, so you can encourage each other.
Credibility: Make sure your partner has a degree of credibility. You don't want to discover that your business partner has a history of shady dealings. You want someone on the up-and-up who want sully your own reputation.
Financial stability: While your business partner doesn't need to be very rich, it does help if he or she has the finances under control. Even being debt-free isn't a requirement. But a measure of stability, and an ability to manage their own finances with competence is important, since you will be taking risks together.
Trustworthy: You have to trust and respect your business partner. Without that trust and respect, your partnership is likely to deteriorate.

Think about the situation before you commit to a business partner. Identify someone with whom you work well, and who has solid traits.

What do you look for in a business partner?

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