Thursday, March 28, 2013

How to talk to your aging parents about money

By Ismat Sarah Mangla @Money
Source: http://money.cnn.com/2013/04/01/retirement/parents-money.moneymag/index.html

Take care your concern doesn't come across as if you think your parents' intelligence is diminished.

Time to discuss if they need help with their finances. Proceed carefully because they may not see things as you do: A 2012 Fidelity study found that while 24% of adult children think their parents will need a hand with money, 97% of the parents do not.

"Conversations about money with your elderly parents are really about control -- something they don't want to lose," says David Solie, author of How to Say It to Seniors. Try these tips.

THE GROUND RULES
 
Drop the attitude. An I-know-better air will put their backs up. Take care your concern doesn't come across as if you think their intelligence is diminished, says Solie.

Avoid saying "you should..." Those two little words are sure to put them on the defensive.

Bring in a third party. To your mom and dad, you will always be a kid -- which is why the talk may go better if you deliver it alongside an outside expert, says Paula Span, author of When the Time Comes.

WHEN YOU'RE FACE TO FACE...
 
1. Opening gambit. "Mom, I just read an article with great tips about how to simplify managing your money as you get older. Can I share a few of them?"

The strategy: "Bring yourself into the equation as a helper, not an overseer," Span says. Framing the advice as someone else's ideas may make your parents more open to accepting them.

2. Dangle a carrot. "I think we can save you some money on your cable bill, Dad. How about we take a look?"

The strategy: Suggest a small, concrete action with a clear payoff to start. An Allianz survey reveals that 61% of older Americans worry about outliving their money, so helping your parents cut costs is a good first move.

Seeing how beneficial your suggestions can be is likely to make them more receptive to other, more serious forms of help.

3. Keep your warnings indirect. "I know you're too smart for this, but I want to tell you about this scam I heard about so you can warn your friends."

The strategy: Being straightforward -- "Mom, Dad, you need to watch out for people who ask for your bank account online" -- may feel patronizing to your parents. Instead, plant a seed that doesn't reflect on their competence to manage their affairs, says Colorado elder-law attorney Catherine Seal.

4. Ask if you can tag along. "My friend's dad keeps getting invited to free-lunch retirement seminars. Do you? I'd love to go if you go."

The strategy: Instead of trying to put the kibosh on a move you know is not smart, stand beside them during the sales pitch, suggests Kim Linder, a caregiver consultant. Then ask tough questions that will push your parents to think before they leap.

5. Use metaphors. "You wouldn't buy a used car without a mechanic checking under the hood. Same goes for your investments. Let's have a financial adviser look into this."

The strategy: "In the second half of life, the right brain becomes the gatekeeper for information," says Solie. "We respond better to stories and metaphors -- the stuff that gives meaning to facts and linear data."
Payroll Builder is an online payroll service, which makes it simple to use and easy to access. To employers who have workers out on work sites, with a single purchase you can have your employees clock in from their phones and you will be alerted to where exactly they where when they clocked in. We want to serve the Natural State, and are ready to serve you in Fort Smith, Little Rock, Russellville, Fayetteville, and everywhere else in Arkansas and the U.S. Visit our website for more information!

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Tuesday, January 8, 2013

10 Ways to Fight Back Your $1,000 Payroll Tax Hike

Feel like your paycheck is getting smaller? You’re not imagining it: The two-year reduction that decreased the payroll taxes you pay from 6.2% to 4.2% of your salary were allowed to expire at the beginning of the year, which means that a family with a household income of $50,000 will now have about $1,000 less to spend this year.

A thousand bucks is serious money, but losing that take-home pay doesn’t have to be as scary as it sounds. On a month-by-month basis, your income will drop by $83 and change. With a little creativity, you can shave that much from your budget each month without a great deal of sacrifice.

We’re assuming you already know that skipping the $4 daily latte habit or canceling cable can get you there. Here are a handful of other ways to make up the shortfall, courtesy of a group of personal finance experts we surveyed.

(MORE: Lots of Special Interest Goodies Were Stuffed into the Fiscal Cliff Deal)

1. Hit the dollar store. Self-described “Dollar Store Diva” Marlene Alexander did an experiment where she logged everything she bought at the dollar store over the course of a week and compared what those items would cost at a big-box store. Her savings: $22.40. “Over the course of a year, those weekly savings alone would add up to $1,164.80,” she writes. Needless to say, perhaps, this means restricting yourself only to items you would have purchased, for more, elsewhere.

2. Drive 25% less. A family that goes through 90 gallons of gas a month (that comes out to roughly 1,000 miles per car, assuming two cars per family) last year spent an average of $324 every month, according to Oil Price Information Service. If you can swap out one quarter of those trips behind the wheel with walking, carpooling, or bicycling, you’ll be $81 a month richer.

3. Shop smarter. “A household with a $50,000 income will spend between $7,500 and $10,000 on food throughout the year,” says Gary Foreman, founder of The Dollar Stretcher. He says you can shave 10% to 15% off this total with a pricebook, which is either a spreadsheet or just a series of notebook pages you divide into columns with a ruler. In the boxes, you record the cheapest unit price paid for groceries, where and when you bought them. Keeping a record lets you see at a glance what the best price is, and where and when you’re likely to snag the best deals.

(MORE: Why More Americans Will Fall Behind on Credit Card Bills This Year)

4. Cut out interest. If you switch $7,000 from a credit card or cards on which you’re paying 15% interest to a card that offers 0% on balance transfers, you’ll save between $87.50 and $76.19 in interest each month over the course of the year. Look for a card with a 0% introductory period of 12 to 18 months so you can either pay off or significantly reduce your debt in that time period — and resist the temptation to run the balance on the old card back up.

5. Wait until next year to upgrade your electronics. According to the Consumer Electronics Association, the average family spent $961 on electronics last year, thanks to our seemingly insatiable appetite for smartphones, tablets, HDTVs, and other gadgets. If you have a true emergency — say, if your phone falls in the bathtub — buy refurbished, which can save you 50% or more off the price of new electronics.

6. Get to work. “Take on a small side job, like walking a neighbor’s dog,” suggests Julia Scott, who blogs at BargainBabe.com. Hit a free site like Craigslist.org to look for gigs or advertise your services, or put the word out on your social networks that you’re looking for a little extra income.

7. Skip the bar. Ashley English, author and blogger at Small Measure, suggests that people who like to hit their local watering holes with friends have a “drink staycation.” Going out once a week and paying for two rounds of drinks can add up to $20 or more, she points out, so cut out that happy hour or after-dinner gathering. A group of friends can rotate hosting to cut costs and still go out for a good time .

(MORE: Cliff Dweller)

8. Quit smoking. Half a pack a day is costing you $79.65, according to Smokefree.gov. And that’s if you’re paying the national average of $5.31 a pack. If smokes cost more in your state, you’ll save more by quitting.

9. Stop using storage units. The National Foundation for Credit Counseling suggests ending the practice of forking over good money to store all the junk you don’t use anymore. “It’s a double-play to sell the contents… money in the pocket from the sale, and no more rent payments,” the NFCC says. Eliminating the rent payment alone could save you $80 or $100 or even more each month. Better yet, sell some of that stuff you don’t use online and get ahead on next month’s saving.

10. Brown-bag it. “Bring your leftovers to work for lunch,” says Katy Wolk-Stanley, who blogs as The Non-Consumer Advocate. Even if you and your spouse stick to $5 sandwiches or combo meals, swapping those out for last night’s chili or lasagna twice a week will save your family $20 a week.

Payroll Builder is an online payroll service, which makes it simple to use and easy to access. To employers who have workers out on work sites, with a single purchase you can have your employees clock in from their phones and you will be alerted to where exactly they where when they clocked in. We want to serve the Natural State, and are ready to serve you in Fort Smith, Little Rock, Russellville, Fayetteville, and everywhere else in Arkansas and the U.S. Visit our website for more information!

Please leave a comment if you have any other information on ways to save money and get out of debt!
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The Payroll Tax Hike Wiped Out A Year's Worth of Wage Gains

Source: http://www.washingtonpost.com/blogs/wonkblog/wp/2013/01/08/the-payroll-tax-hike-just-wiped-out-a-years-worth-of-wage-gains/

The good news: Many Americans saw their paychecks get fatter in 2012, as average weekly earnings rose 2.4 percent over the course of the year.

The bad news: The expiration of the payroll tax cut this January will basically wipe away all of last year’s gains.
average weekly earnings payroll
Cardiff Garcia brings us the above chart from Credit Suisse, which notes:
We look at average weekly earnings of all employees on private non-farm payrolls: $818.69 in December. The 2% payroll tax increase clips $16.37 a week from take-home pay. … That’s the equivalent of losing all the 2012 gain in weekly earnings in one month.
So how will Americans respond now that their paychecks are shrinking? A new study (pdf) from the Federal Reserve Bank of New York suggests one answer: They’ll spend a lot less this year. And that, in turn, could bruise the larger U.S. economy.

The New York Fed’s survey data found that the payroll tax cut has been a particularly efficient form of stimulus over the past two years — Americans reported spending between 28 and 43 percent of the savings, far more than they have for previous tax cuts. (Much of the rest was used to pay down debt.)

And most workers expect to cut back on spending significantly now that the payroll tax cut is vanishing. The average household making $50,000 a year will see its payroll taxes rise about $1,000 this year. According to the New York Fed’s survey data, that typical household says it will cut back on spending by about $710 this year to make up the difference, with most of the rest coming out of savings.

Will that forecast hold up? That’s a little hazier. The New York Fed found that Americans are notoriously bad at predicting how they’ll respond to tax changes (most workers had expected to save far more of the original payroll tax cut than they actually did). But for now, Americans are saying they’ll keep paying down their debts and spend less this year in response to the tax hike.

Related: More details on the expiration of the payroll tax cut, which both parties supported during the fiscal-cliff negotiations.

Payroll Builder is an online payroll service, which makes it simple to use and easy to access. To employers who have workers out on work sites, with a single purchase you can have your employees clock in from their phones and you will be alerted to where exactly they where when they clocked in. We want to serve the Natural State, and are ready to serve you in Fort Smith, Little Rock, Russellville, Fayetteville, and everywhere else in Arkansas and the U.S. Visit our website for more information!

Please leave a comment if you have any other information on ways to save money and get out of debt!
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Monday, January 7, 2013

4 risky places to swipe your debit card

Would you give a thief direct access to your checking account?
With our technology, it's just about that easy for them to get your info!

No? Unfortunately, you may be doing just that by regularly using your debit card. Debit cards may look identical to credit cards, but there's one key difference. With credit cards, users who spot fraudulent charges on their bill can simply decline the charges and not pay the bill. On the other hand, debit cards draw money directly from your checking account, rather than from an intermediary such as a credit card company.

Because of that, even clear-cut cases of fraud where victims are protected from liability by consumer protection laws can cause significant hardship, says Frank Abagnale, a secure-document consultant in Washington, D.C.

He cites the example of the The TJX Companies Inc.'s T.J. Maxx data breach that exposed the payment information of thousands of customers in 2007. The incident resulted in $150 million in fraud losses, and much of it was pulled directly from customers' bank accounts. While credit card users got their accounts straightened out and new cards in the mail within a few days, the case created major problems for debit card holders who waited an average of two to three months to get reimbursed, Abagnale says.

While debit card fraud is always a possibility, being careful where you use it can help keep your checking account balance out of the hands of criminals.

Payroll Builder is an online payroll service, which makes it simple to use and easy to access. To employers who have workers out on work sites, with a single purchase you can have your employees clock in from their phones and you will be alerted to where exactly they where when they clocked in. We want to serve the Natural State, and are ready to serve you in Fort Smith, Little Rock, Russellville, Fayetteville, and everywhere else in Arkansas and the U.S. Visit our website for more information!

Please leave a comment if you have any other information on ways to save money and get out of debt!
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How to handle debit and credit card fraud

Whether through online phishing attacks or security breaches at major institutions, being a victim of plastic card fraud is increasingly common. Here's how to report suspicious activities if it ever happens to you.


Mobile banking may make it easy for you to complete purchases online and in store, but modern technology can also make you more susceptible to frauds and scams. Even when you think you’re being careful, the smallest decisions can put you and your money in danger. If you believe you have been a victim of fraud, here’s our tips on how to go about reporting suspicious activities, and what you can do to prevent it from happening.

Debit or Credit?

 

It’s important to determine whether it’s your debit or credit account that has been compromised. With credit card transactions, it’s much easier to dispute a charge because companies can check with the merchant to see how and when the charges were made. If the credit was not yet processed, you may still have a chance of retrieving the money.


Debit cards, however, are a whole other story. Since it works much like cash, once a transaction has bee completed, it’s considered paid for unless you argue with a merchant on a refund. Imagine trying to refund cash in a store without a receipt or telling the cashier someone stole your money and bought something here with it. The chances of getting that money back are quite slim.


Thankfully, most banks have a zero liability program for debit cards if you report fraudulent activity sooner than later. By reporting it within two days of the transaction, you may be liable for up to $50 for the charges. If reported before 60 days, the charge bumps up to $500. It’s an annoying price to pay, but if you’ve been scammed out of more than thousands of dollars, it’s still worth it to get anything back at all.

Payroll Builder is an online payroll service, which makes it simple to use and easy to access. To employers who have workers out on work sites, with a single purchase you can have your employees clock in from their phones and you will be alerted to where exactly they where when they clocked in. We want to serve the Natural State, and are ready to serve you in Fort Smith, Little Rock, Russellville, Fayetteville, and everywhere else in Arkansas and the U.S. Visit our website for more information!

Please leave a comment if you have any other information on ways to save money and get out of debt!

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Card thieves 'skimming' pay-at-the-pump customers

As if the high cost of gas wasn't enough, credit and debit card users who pay at the pump have to face a new way to be gouged at the pump: skimmers.

Skimmers are inconspicuous electronic devices that thieves install either inside or outside a gas pump. These small and inexpensive devices record card numbers as you pay for your petrol.  Free-roaming fraudsters and gas station insiders then help themselves to the card information in the skimming devices, then go out and use the stolen card numbers to make fraudulent purchases.

According to electronic payments expert Richard Crone, of the 1.36 million gas pumps in the United States, an estimated 700,000 gas pumps accept pay-at-the-pump -- and not one of those pumps is secure against skimming.

Some skimmers also incorporate the use of tiny remote cameras to capture PIN numbers of debit card users who enter them at pump-side.

More technologically advanced skimmers are turning to wireless technology, to intercept signals some gas stations use to transmit card data from the pumps to their central computers.  Instead of manually installing the equipment on the pumps, they can lurk in their cars nearby while downloading your card information to a laptop, says Jeff Wakefield, a vice president with VeriFone, the largest secure payment terminal vendor.
But the basic technique for getting credit and debit card data from gas pumps is not rocket science: Crooks simply attach card-skimming devices to exposed wiring inside the pump to collect card data before it is secured, according to Wakefield.

Other skimming technology attaches outside the pump. The devices can cost anywhere from $50-$600 and can be as small as a pager. The card swipe is essentially captured twice: once for the gas purchase and then again for the crooks. The devices are then removed from the pump at a later date or time.

Payroll Builder is an online payroll service, which makes it simple to use and easy to access. To employers who have workers out on work sites, with a single purchase you can have your employees clock in from their phones and you will be alerted to where exactly they where when they clocked in. We want to serve the Natural State, and are ready to serve you in Fort Smith, Little Rock, Russellville, Fayetteville, and everywhere else in Arkansas and the U.S. Visit our website for more information!

Please leave a comment if you have any other information on ways to save money and get out of debt!
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Monday, September 24, 2012

10 Ways to Save Money and Pay Off Debts

This could be you
if you don't regulate your
spending!
It is now considered “normal” to live paycheck to paycheck. This leaves no room for error, or in the case of a surprise bill, is a ticking time bomb. We're getting to be just one accident away from financial hardship. Most of the time that looming over our heads is a form of poverty in itself.

On average, a normal American family has a little under $4,000 in the bank. There is no retirement account in half of our households. The other half has only around $35,000 saved for retirement. The average family makes roughly $45,000 a year, but carries with them a $2,000 credit card debt.

A quarter of the American family not only is devoid of retirement savings, but any savings at all. On average, though, the American household has over $100,000 in debts. All together we as a people hold $2 Trillion dollars in debt! That's $2,000,000,000,000!

With this kind of debt building up for our hard working families, we all need to put a handle on our spending, and work towards paying off this huge, ever-present, and increasing debt. I hope these 10 spending suggestions can help us actually start saving for retirement and/or help us pay off all the debt we've been accumulating for far too long!

Don't only have a rough estimate of where your money goes. If you don't sit down and actually inventory all of your spending, you're probably spending more than just a few bills you can name offhand. If you're not a fan of just sitting down and writing down all your expenses through at least 3 months, there are apps and websites you can visit to type up a spreadsheet or work on your finances while you're busy running around. Working towards savings has to start with building your budget, I just hope you're not plugging numbers in while driving!

Don't spend more than your budget allows. After you've made your budget, look back over those expenses, and start “trimming the fat.” No matter how much or how little you make, chances are you can save more by just changing your spending habits. Remember that there are people out there living off of LESS than you are right now, so there is always something you can cut back on or realize you don't need at all. 
 
Don't spend on impulses. Late night infomercials and the home shopping network are completely evil the vast majority of time they are on. A good rule of thumb is to try and see yourself still wanting this item after a week. Trust me, you will still be able to find it, no matter how many times the salesman says, “Supplies are going fast!” This brings me to my next topic...

Don't be swayed by salespeople or their sales pitches. Companies and businesses spend millions on advertising and sales psychologists, all to make you think you want their product. When someone says buy 1, get 1 free, you have to think of the price of the goods and how much they're charging. The best value may be just to skip out on the product.

Make sure you shop around. There are a lot of companies who fight for your allegiance. In order to win the war of your hard-earned money, many are prepared to offer you the same great service for less than others. It is in your best interest to shop around to make sure you're not overpaying for something that someone else will give you for a cheaper cost.

Avoid high-interest rates at all costs. It is imperative that any debt you accumulate has to be put in the lowest interest possible. Most credit cards have interest rates of 15-30%, but have a 0% introductory interest rate to get you hooked. If you can pay your debts off in that introductory period, take advantage of the low interest, otherwise it's just another sales pitch that won you, and your money, over.

Keeping a balance on your credit cards. If you get stuck in this hamster wheel, it is often very hard to get out of. Each month that you pay on this credit card, another round of interest will count against you, until you end up paying more for your interest than the actual debt! Avoid this trap at all cost.

Carrying a credit card balance with high interest rates. When you carry a credit card balance, you pay a high rate of interest. Every month that you have a balance, that is another month that you have to pay interest that does nothing for you. This trap is a vicious cycle that continues to spiral you down deeper into debt.

Living beyond your means, such as an expensive house you can't afford. Everyone involved in selling and financing houses are trying to make you buy the house. It is as simple as that. They don't have to pay the bills, but they assure you that you can afford it. They just want to make a sale. They don't care about YOU or how you will make the payments. If you can't make the payments, and you have to foreclose or get more loans to pay it off, they win.

With property and houses continuing to lose value, salespeople are in a greater rush to get someone else to pay for those places. They may make you think that your home is worth sacrificing everything now and making you poor in every other facet in your life, but you must resist their sales pitches. Don't make a rash decision that will hurt your financial situation in the long run. It's better to have a smaller home and the ability to furnish it and enjoy your life than to have a big home and a mountain of debt it's built upon.

Don't use your home equity loan to pay off any other debts. Many lenders will try and sell you on this scheme to pay off other things, when in reality this only compounds your debt. This will only work if you stop making more debt on things like your credit cards. If you continue to swipe your cards you will have to borrow more from your home equity, which increases your monthly payments. Just like the above point, this is a sales pitch to make you pay the creditors more money. This is a great option if you use it in emergencies, but only if what your paying off will stay away forever, leaving you to pay back what you borrowed with the extra income. Make sure you plan ahead and use caution with this method.

Using careful planning and real expectations from your financial status are the only real ways to prevent going in to debt. If it means sometimes you have to sacrifice certain things and not be able to keep up with the times or have the latest gadgets, it will be better in the long run than having credit card debt for 20 years on a product that will go out of style in under a year. It can be very hard to practice patience and discipline in this world of reckless spending, but the benefits outweigh the negatives of becoming a victim of debt.


Sources:
Images: FreeDigitalPhotos.net

Other articles about money:  

Payroll Builder is an online payroll service, which makes it simple to use and easy to access. To employers who have workers out on work sites, with a single purchase you can have your employees clock in from their phones and you will be alerted to where exactly they where when they clocked in. We want to serve the Natural State, and are ready to serve you in Fort Smith, Little Rock, Russellville, Fayetteville, and everywhere else in Arkansas and the U.S. Visit our website for more information!

Please leave a comment if you have any other information on ways to save money and get out of debt!
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