If you want your finances to be as clean as your house after spring cleaning then follow this guide. Our financial experts put together this great guide to financial savings.
- A bank is used to safely store money until it is needed and provides individual bank accounts to prevent others from accessing funds.
- A bank statement shows how much money is in one's account.
- There are good reasons to have a bank account such as keeping savings safe, paying bills, receiving wages and benefits, and planning for the future.
Banks allow customers to deposit money for safekeeping. The bank then lends this money to others and earns interest, using more money than they hold in deposits. Banks play a critical economic role by channeling deposits into loans that fund homes, businesses, and more. While regulated, banks face risk if all customers withdraw funds at once, though deposits up to $100,000 are insured. Banks earn money through interest on loans and fees, investing deposits to generate returns.
Banking refers to financial institutions that are licensed to receive deposits and make loans. Banks keep track of deposits and withdrawals to keep customers' money safe. Financial institutions also include trust companies, insurance companies, and brokerages, and they all help customers manage their money through savings, investments, loans, and more. Banking is important as it allows people to budget, save money, and become eligible for loans and credit. Learning banking skills early helps with financial management in the future. In the author's opinion, banking provides a useful way to track spending, save money, and understand one's spending habits.
This document discusses banking basics and choosing the right bank account. It explains that there are different types of accounts for different savings goals, like savings accounts, tax-free savings accounts, GICs and term deposits. When choosing a bank, you should consider factors like ease of access, simplicity, personalization and fees. The document provides a sample comparison of RBC and TD Canada Trust casual savings accounts, and notes the importance of reviewing bank statements regularly for accuracy. In the end, the author realizes through this research that TD Canada Trust may better suit their needs over their current bank, RBC.
This document provides an overview of banking basics and personal finance management. It discusses deciding your spending habits, tracking revenues and expenses, and the benefits of banking such as safety, investing, saving, and using credit/debit cards. It also describes different types of financial institutions and important things to know about banking statements and savings accounts. Finally, it offers tips for using debit/credit cards wisely and emphasizes being responsible with money management.
Pay Off Holiday Debt: Credit, the CARD Act and Debt Repayment StrategiesShay Olivarria
In this informative webinar from financial education speaker Shay Olivarria, you'll discover the two most important strategies to pay down debt, how the CARD Act helps you pay down debt faster than ever before and how to make your credit card work for you!
While your mountain of debt may be daunting, it's possible to get to the top and clear your financial name! www.lifethenfinance.com
3. Getting Out of Debt Credit Cards Bank Loans Mortgage www.lifethenfinance.com
4. Step 1: Organize Your Debts Smallest to Largest • Pay only minimum payments and any left over money is directed to the smallest debt until it is paid off. www.lifethenfinance.com
5. Step 2: Eliminate Small Balances First • If you have a card with a low balance, pay it off first. • Then reroute the money for that card’s payment to pay off cards with higher balances or a higher interest rate. www.lifethenfinance.com
Trident Technical College's Student Support Services program provides resources to help students learn how to manage their money through organizing their finances, setting financial goals and creating budgets. The document outlines six steps for students: 1) Organize personal financial records and accounts, 2) Review current income and expenses, 3) Set short, mid, and long-term financial goals, 4) Create a budget and identify areas for improvement, 5) Understand different types of bank and credit accounts, and 6) Save for emergencies, goals and the future by investing money wisely. Additional resources for students seeking financial help include on-campus programs, tax credits, discounts, and online financial planning tools.
- A bank is used to safely store money until it is needed and provides individual bank accounts to prevent others from accessing funds.
- A bank statement shows how much money is in one's account.
- There are good reasons to have a bank account such as keeping savings safe, paying bills, receiving wages and benefits, and planning for the future.
Banks allow customers to deposit money for safekeeping. The bank then lends this money to others and earns interest, using more money than they hold in deposits. Banks play a critical economic role by channeling deposits into loans that fund homes, businesses, and more. While regulated, banks face risk if all customers withdraw funds at once, though deposits up to $100,000 are insured. Banks earn money through interest on loans and fees, investing deposits to generate returns.
Banking refers to financial institutions that are licensed to receive deposits and make loans. Banks keep track of deposits and withdrawals to keep customers' money safe. Financial institutions also include trust companies, insurance companies, and brokerages, and they all help customers manage their money through savings, investments, loans, and more. Banking is important as it allows people to budget, save money, and become eligible for loans and credit. Learning banking skills early helps with financial management in the future. In the author's opinion, banking provides a useful way to track spending, save money, and understand one's spending habits.
This document discusses banking basics and choosing the right bank account. It explains that there are different types of accounts for different savings goals, like savings accounts, tax-free savings accounts, GICs and term deposits. When choosing a bank, you should consider factors like ease of access, simplicity, personalization and fees. The document provides a sample comparison of RBC and TD Canada Trust casual savings accounts, and notes the importance of reviewing bank statements regularly for accuracy. In the end, the author realizes through this research that TD Canada Trust may better suit their needs over their current bank, RBC.
This document provides an overview of banking basics and personal finance management. It discusses deciding your spending habits, tracking revenues and expenses, and the benefits of banking such as safety, investing, saving, and using credit/debit cards. It also describes different types of financial institutions and important things to know about banking statements and savings accounts. Finally, it offers tips for using debit/credit cards wisely and emphasizes being responsible with money management.
Pay Off Holiday Debt: Credit, the CARD Act and Debt Repayment StrategiesShay Olivarria
In this informative webinar from financial education speaker Shay Olivarria, you'll discover the two most important strategies to pay down debt, how the CARD Act helps you pay down debt faster than ever before and how to make your credit card work for you!
While your mountain of debt may be daunting, it's possible to get to the top and clear your financial name! www.lifethenfinance.com
3. Getting Out of Debt Credit Cards Bank Loans Mortgage www.lifethenfinance.com
4. Step 1: Organize Your Debts Smallest to Largest • Pay only minimum payments and any left over money is directed to the smallest debt until it is paid off. www.lifethenfinance.com
5. Step 2: Eliminate Small Balances First • If you have a card with a low balance, pay it off first. • Then reroute the money for that card’s payment to pay off cards with higher balances or a higher interest rate. www.lifethenfinance.com
Trident Technical College's Student Support Services program provides resources to help students learn how to manage their money through organizing their finances, setting financial goals and creating budgets. The document outlines six steps for students: 1) Organize personal financial records and accounts, 2) Review current income and expenses, 3) Set short, mid, and long-term financial goals, 4) Create a budget and identify areas for improvement, 5) Understand different types of bank and credit accounts, and 6) Save for emergencies, goals and the future by investing money wisely. Additional resources for students seeking financial help include on-campus programs, tax credits, discounts, and online financial planning tools.
My Money Story Series: Credit Karma Talks Finances, Credit, and DebtKabbage
Visit our SlideShare to learn from our partner, Credit Karma, why you should check and build your credit report, best practices for establishing financial health, and how to recover from debt.
This document provides an overview of personal credit and credit scores. It defines credit as borrowing money that must be repaid over time, with interest. The benefits of credit include purchasing power and establishing a credit history, while risks include debt, fees, and damage to one's credit if not repaid. The "four C's" that lenders evaluate are credit history, collateral, capacity to repay, and current conditions. It also discusses credit reports, credit scores, responsible credit management, and why maintaining good credit is important.
This document provides information about personal finance fundamentals such as budgeting, credit cards, debit cards, and identity theft. It discusses the importance of budgeting and having a budget that aligns with your income. It describes different types of bank accounts and factors to consider like risk and return when investing. The document also distinguishes between credit cards and debit cards, outlining advantages and disadvantages of each. Finally, it provides tips for using credit wisely and protecting your identity.
This document provides information about a boutique mortgage broking firm, including their experience and qualifications, the types of financing they can assist with such as home loans, investment loans, and business finance, and the process they follow which includes assessing a client's needs, making loan recommendations, and assisting them through the application and approval process.
Financial literacy involves understanding concepts like income, expenses, assets, liabilities, savings, debt, and investing. It is important to track income and expenses through a financial diary in order to understand where money is going each month and identify areas where spending can be reduced. Savings should be built through reducing wants, increasing income, and resisting dipping into savings. Borrowings should only be taken if repayments can be afforded from income after needs, debts, and continued savings. Financial goals and budgets help plan for different targets over time.
There are several types of banks that serve different functions. Commercial banks provide loans to businesses and collect deposits from individuals to loan out. Savings banks encourage savings and provide loans and services targeted at low-income individuals. Development banks provide long-term loans to industries. Cooperative banks give credit facilities to small farmers, employees, and small businesses. A central/reserve bank acts as a bank for banks, controlling the country's currency and monetary policy.
There are several types of banks that serve different functions. Commercial banks provide loans to businesses and collect deposits from individuals to loan out. Savings banks encourage savings and provide loans to low-income groups. Development banks provide long-term loans to industries. Central banks act as a bank for banks and conduct monetary policy functions like currency issuance. Co-operative and consumer banks also exist to serve specific customer groups.
We are Consolidated Credit Counseling Services and we help people like you become financially fit everyday. From getting you out of debt to keeping you out of debt we cover it all. In this presentation we cover the ground rules for budgeting and saving money! Gain knowledge and prepare yourself for financial success.
Credit is important because it affects many aspects of life like renting, utilities, insurance, loans, and employment. Consumers can access their free annual credit reports from annualcreditreport.com or by contacting the credit bureaus directly. Credit reports contain personal information, credit history, inquiries, public records, and collections. It's important to check reports for accuracy as errors are common. FICO and Vantage are two common credit scoring models that use factors like payment history, credit utilization, credit history length, credit mix, and new credit to determine a credit score. With bad credit, options include credit counseling, debt management programs, or managing debt independently through budgeting and payment plans.
The document discusses different types of banks and their functions. It describes commercial banks which provide short-term loans and services to businesses, savings banks which encourage savings and provide services to low-income groups, development banks which provide long-term financing to industries, cooperative banks which serve small farmers and businesses, and central banks which act as banks for other banks and regulate currency. It also mentions land development banks, indigenous banks, and consumer banks.
Banks provide various financial services including borrowing, lending, and deposit-taking. Commercial banks provide loans to businesses and individuals. Savings banks encourage savings and provide loans to low-income groups. Development banks provide long-term financing to industries. Cooperative and indigenous banks provide credit to small businesses and communities respectively. Central banks act as banks for banks and regulate currency and monetary policy.
This document provides five steps to becoming debt-free: 1) Learn your current financial situation by reviewing credit reports and understanding your credit score. 2) Create a realistic budget that allocates at least 10% of income to debt payments. 3) Talk to lenders about lowering interest rates or refinancing loans. 4) Look for ways to reduce discretionary spending through small lifestyle changes. 5) Prioritize paying off debts from most to least valuable assets, focusing on high-interest debts first. The overall goal is to eliminate debt payments and interest expenses to free up cash flow.
How do you budget and save money? Consolidated Credit Counseling Services outlines some best practices for you in this presentation. Get all the facts and knowledge you need to succeed in the financial world.
The document discusses managing student loan debt. It recommends knowing details of loans such as principal, interest, and monthly payments. It also recommends knowing if loans are federal or private since rules differ. It suggests creating a budget to calculate income, expenses, and set goals to pay down debt. It advises paying more than the minimum when possible to pay off loans sooner and save on interest. If struggling to pay, it recommends exploring repayment options, deferment, or forbearance rather than stopping payments. Bankruptcy will usually not eliminate student loan debt.
This document provides an overview of common banking terms and concepts. It discusses the basics of opening deposit accounts like checking and savings accounts, differences between banks and credit unions, account types, interest, online banking safety, and more. The key topics covered include choosing an appropriate financial institution, understanding account features and fees, maintaining good banking habits, and ensuring deposits are insured by agencies like the FDIC or NCUA up to $250,000 per account.
On January 24, members of Freestar Financial attended a Mortgage Mixer Event. The Vice President of Lending, Jennifer Martines and Realtor, Peter Toering presented the importance of having a good credit score and the documentation you will need in order to start a mortgage application.
This document provides an overview of personal banking services. It discusses opening checking and savings accounts, the differences between banks and credit unions, account verification services like ChexSystems, debit cards, check writing, keeping fees low, certificates of deposit, safe deposit boxes, and how to properly manage accounts. The goal is to give participants a thorough understanding of banking basics to help them benefit from financial institution services.
Financial Literacy for Seniors-Nick Contributions copyNicholas Fucci
This document provides advice on personal finance topics such as salary negotiation, student loan repayment, credit cards, and building credit. It encourages the reader to take ownership of their financial future by knowing their leverage in salary negotiations, being aware of student debt repayment options, paying credit cards in full each month to avoid interest, and using available resources to improve their credit score over time. Tips are provided on researching average salaries, cost of living expenses, utilizing tax deductions, and consolidating student loans. Additional online resources with more detailed guides are referenced.
Credit refers to buying something now and paying for it later. There are several types of credit available to students including student loans, lines of credit, and credit cards. It is important to understand credit terms like annual percentage rate, minimum payment, and interest rates when using credit. Maintaining good credit involves paying bills on time, keeping credit utilization low, and establishing a history of responsible credit use over time.
My Money Story Series: Credit Karma Talks Finances, Credit, and DebtKabbage
Visit our SlideShare to learn from our partner, Credit Karma, why you should check and build your credit report, best practices for establishing financial health, and how to recover from debt.
This document provides an overview of personal credit and credit scores. It defines credit as borrowing money that must be repaid over time, with interest. The benefits of credit include purchasing power and establishing a credit history, while risks include debt, fees, and damage to one's credit if not repaid. The "four C's" that lenders evaluate are credit history, collateral, capacity to repay, and current conditions. It also discusses credit reports, credit scores, responsible credit management, and why maintaining good credit is important.
This document provides information about personal finance fundamentals such as budgeting, credit cards, debit cards, and identity theft. It discusses the importance of budgeting and having a budget that aligns with your income. It describes different types of bank accounts and factors to consider like risk and return when investing. The document also distinguishes between credit cards and debit cards, outlining advantages and disadvantages of each. Finally, it provides tips for using credit wisely and protecting your identity.
This document provides information about a boutique mortgage broking firm, including their experience and qualifications, the types of financing they can assist with such as home loans, investment loans, and business finance, and the process they follow which includes assessing a client's needs, making loan recommendations, and assisting them through the application and approval process.
Financial literacy involves understanding concepts like income, expenses, assets, liabilities, savings, debt, and investing. It is important to track income and expenses through a financial diary in order to understand where money is going each month and identify areas where spending can be reduced. Savings should be built through reducing wants, increasing income, and resisting dipping into savings. Borrowings should only be taken if repayments can be afforded from income after needs, debts, and continued savings. Financial goals and budgets help plan for different targets over time.
There are several types of banks that serve different functions. Commercial banks provide loans to businesses and collect deposits from individuals to loan out. Savings banks encourage savings and provide loans and services targeted at low-income individuals. Development banks provide long-term loans to industries. Cooperative banks give credit facilities to small farmers, employees, and small businesses. A central/reserve bank acts as a bank for banks, controlling the country's currency and monetary policy.
There are several types of banks that serve different functions. Commercial banks provide loans to businesses and collect deposits from individuals to loan out. Savings banks encourage savings and provide loans to low-income groups. Development banks provide long-term loans to industries. Central banks act as a bank for banks and conduct monetary policy functions like currency issuance. Co-operative and consumer banks also exist to serve specific customer groups.
We are Consolidated Credit Counseling Services and we help people like you become financially fit everyday. From getting you out of debt to keeping you out of debt we cover it all. In this presentation we cover the ground rules for budgeting and saving money! Gain knowledge and prepare yourself for financial success.
Credit is important because it affects many aspects of life like renting, utilities, insurance, loans, and employment. Consumers can access their free annual credit reports from annualcreditreport.com or by contacting the credit bureaus directly. Credit reports contain personal information, credit history, inquiries, public records, and collections. It's important to check reports for accuracy as errors are common. FICO and Vantage are two common credit scoring models that use factors like payment history, credit utilization, credit history length, credit mix, and new credit to determine a credit score. With bad credit, options include credit counseling, debt management programs, or managing debt independently through budgeting and payment plans.
The document discusses different types of banks and their functions. It describes commercial banks which provide short-term loans and services to businesses, savings banks which encourage savings and provide services to low-income groups, development banks which provide long-term financing to industries, cooperative banks which serve small farmers and businesses, and central banks which act as banks for other banks and regulate currency. It also mentions land development banks, indigenous banks, and consumer banks.
Banks provide various financial services including borrowing, lending, and deposit-taking. Commercial banks provide loans to businesses and individuals. Savings banks encourage savings and provide loans to low-income groups. Development banks provide long-term financing to industries. Cooperative and indigenous banks provide credit to small businesses and communities respectively. Central banks act as banks for banks and regulate currency and monetary policy.
This document provides five steps to becoming debt-free: 1) Learn your current financial situation by reviewing credit reports and understanding your credit score. 2) Create a realistic budget that allocates at least 10% of income to debt payments. 3) Talk to lenders about lowering interest rates or refinancing loans. 4) Look for ways to reduce discretionary spending through small lifestyle changes. 5) Prioritize paying off debts from most to least valuable assets, focusing on high-interest debts first. The overall goal is to eliminate debt payments and interest expenses to free up cash flow.
How do you budget and save money? Consolidated Credit Counseling Services outlines some best practices for you in this presentation. Get all the facts and knowledge you need to succeed in the financial world.
The document discusses managing student loan debt. It recommends knowing details of loans such as principal, interest, and monthly payments. It also recommends knowing if loans are federal or private since rules differ. It suggests creating a budget to calculate income, expenses, and set goals to pay down debt. It advises paying more than the minimum when possible to pay off loans sooner and save on interest. If struggling to pay, it recommends exploring repayment options, deferment, or forbearance rather than stopping payments. Bankruptcy will usually not eliminate student loan debt.
This document provides an overview of common banking terms and concepts. It discusses the basics of opening deposit accounts like checking and savings accounts, differences between banks and credit unions, account types, interest, online banking safety, and more. The key topics covered include choosing an appropriate financial institution, understanding account features and fees, maintaining good banking habits, and ensuring deposits are insured by agencies like the FDIC or NCUA up to $250,000 per account.
On January 24, members of Freestar Financial attended a Mortgage Mixer Event. The Vice President of Lending, Jennifer Martines and Realtor, Peter Toering presented the importance of having a good credit score and the documentation you will need in order to start a mortgage application.
This document provides an overview of personal banking services. It discusses opening checking and savings accounts, the differences between banks and credit unions, account verification services like ChexSystems, debit cards, check writing, keeping fees low, certificates of deposit, safe deposit boxes, and how to properly manage accounts. The goal is to give participants a thorough understanding of banking basics to help them benefit from financial institution services.
Financial Literacy for Seniors-Nick Contributions copyNicholas Fucci
This document provides advice on personal finance topics such as salary negotiation, student loan repayment, credit cards, and building credit. It encourages the reader to take ownership of their financial future by knowing their leverage in salary negotiations, being aware of student debt repayment options, paying credit cards in full each month to avoid interest, and using available resources to improve their credit score over time. Tips are provided on researching average salaries, cost of living expenses, utilizing tax deductions, and consolidating student loans. Additional online resources with more detailed guides are referenced.
Credit refers to buying something now and paying for it later. There are several types of credit available to students including student loans, lines of credit, and credit cards. It is important to understand credit terms like annual percentage rate, minimum payment, and interest rates when using credit. Maintaining good credit involves paying bills on time, keeping credit utilization low, and establishing a history of responsible credit use over time.
Financial Spring Cleaning - Consolidated Credit Counseling Services
1.
2. Who We Are
Our Mission is to Assist families throughout the
United States in ending financial crisis,
and solving money management problems through
education and professional counseling.
3. What We Do
● Financial Counseling
● Financial Education
● Debt Management Services
o Credit Cards
o Student Loans
● Housing Counseling
o Pre-Purchase
o Post-Purchase
o Foreclosure Prevention
o Reverse Mortgages
o Florida Hardest Hit Fund Program
4. Assessing the Disarray
The first thing to do is to get organized
• What are your goals
• What is your net worth
• What is your current financial situation
5. What is Your Net Worth?
Assets are:
• Auto
• Money in bank accounts
• Value of investment accounts
• Market value of your home
• Personal property, such as
jewelry, art, and furniture
Liabilities are:
• Car loan
• Mortgage(s)
• Student loans
• Credit card balance
6. How Long Should I Keep This?
• Receipts
• Bank & Credit Card Statements
• Paycheck Stubs
• Mortgages and Other Loan Documents
• Property Records
7. How Long Should I Keep This?
• Tax Documents
• Brokerage Statements
• Bills
• Retirement Plan Statements
8. Banking Options
Where are you keeping your money?
In a jar buried in the backyard?
Under your mattress or in a financial institution?
Where you keep your money is just as important as how you spend it.
These are the questions that you need to ask yourself
9. Banking Options
A credit union is an alternative to a bank.
It is a cooperative financial institution
owned and controlled by its members.
Credit unions are not-for-profit and they
often provide more desirable rates and fees than banks.
10. Online Banks
• Mobile banking options - think easy-to-use apps and mobile check
deposit
• Account linking - to make transfers to and from your accounts as
seamless as possible
• ATM access - as applicable to your account
• Activity alerts - to help you monitor you accounts
11. Are Your Accounts Clean?
• Make an inventory of accounts and a balance
sheet.
• Figure out which ones can be consolidated.
• Which you don’t use or even realize you still had.
• Make a plan to clear those up.
12. Spring Cleaning Tips
• Organize for a better financial picture
• Set a goal
• Update your budget
• Know how long to keep paperwork
• Discard papers if you have electronic copies
• Back up your electronic copies
13. Spring Cleaning Tips
1. Don’t throw away…..shred!
2. Check out bank accounts, if you are paying a
lot of fees - shop around for a new account
3. Check your credit and your credit score
4. Make larger payments if possible towards
your debt
14. Updating your Money Plan
What is our plan of action for paying off and getting out of debt?
Are you going to tackle highest interest rate first or lowest
balance?
Take the pledge!
“ I, your name, pledge to save money, reduce debt and build wealth
over time. I will encourage my family and friends to do the same”.
15. Additional Resources
Please check out ConsolidatedCredit.org for
interactive calculators, expert tips,
downloadable booklets and videos.
Editor's Notes
Headquartered in Ft. Lauderdale, our mission is to assist families throughout the United States in ending financial crisis, and solving money management problems through education and professional counseling.
There will be no need to take notes, because after the webinar you will receive a questionnaire via email and once you fill that out and return it, the notes will be sent to you. Also please feel free to email any questions that you may have to the email address that will be provided at the end.
When people hear spring cleaning, they only think of the clutter in their homes, but they also need to think of the clutter in their finances as well. Why do people “spring clean?” To see what they own, what they use or no longer use. To get rid of unnecessary junk perhaps. How do they feel after? Happy, at ease, they have peace of mind. This is how you can feel knowing that your finances are in order. There is a high price to pay for financial anxiety. Researchers found that people with a big part of their income tied up in credit card bills and high debt have:
More Heart Attacks
Sleeping Disorders, Insomnia
Explosive Emotional Outbursts
Problems with Smoking and Being Overweight
Divorce
It is a bad idea to avoid the issues when it comes to finances. Don’t bury your head in the sand because you refuse to admit that something is true and that there may problem. It will not go away on it’s own, but with time, effort and discipline, you can get your financial house in order. In order to declutter your mess, the first thing to do is get organized. What are your goals, what is your net worth and what is your current financial situation? To get started you need to assess the mess. What debts do you have, who do you owe? Start off with your credit card debt. Go over your statements and ask yourself, why did you buy that, did I really need it, what am I doing? Because you need to realize that if you are not able to pay off that bill in full at the end of the month, how much is this going to cost you. Let’s try to clear out this credit card debt. You have to assess the mess before you attack it. Reflect on what it is that you are doing and how you got to your current situation. Why are you spending so much, what changes can you make? Next, list all of the other debts that you have, from mortgage loans, car loans, personal loans and any student loans. Again, the only way to clear up your financial house is to know who and how much you owe, know your net worth and to be sure that you are banking with the right institution. Now that you have gone through your credit card statements and listed all of your loans, you have a good idea of who and how much you owe. The next thing to do would be to go over all of your assets.
In order to figure out your net worth, you need to gather some information. Net worth is what is owned minus what is owed, so the value of all assets minus the total of all liabilities. The reason you want to do this is because it helps you understand your current financial situation and gives you a reference point for measuring progress towards your goals. From the previous slide, I discussed gathering all of your statements etc., to see who and how much you owe. Now you want a list of your assets. Assets can be real estate, valuables, investments and the money you have in the bank.
For example:
Money in your bank accounts
Value of your investment accounts
Your car
Market value of your home
Business interests
Personal property, such as jewelry, art, and furniture
Cash value of any insurance policies
Once you have all of that, then you do the math and subtract your liabilities from what you have. Just to reiterate liabilities are:
Mortgage
Car loan
Credit card balance
Student loans
If you need a hand with this, there are a lot of net worth calculators and worksheets available online. You will either be in the positive or the negative. If your net worth is low or in the red (negative), you’ll need to work on saving more and spending less. To watch your progress, calculate your net worth now and recalculate it once or twice a year.
Many have the question………how long should I keep this?.....in regards to financial records and important documents. Well let’s discuss that now.
Receipts – It all depends on how you paid and what you bought. You can throw receipts away right away if you happen to pay cash for the item/s. If you used a credit or debit card, then wait until your statement arrives so that you can verify that the charge is there and is correct. Now if the receipt is for home improvement or a big ticket item, like a new fridge, then you will want to hold on to it for as long as you own the item. Just in case you need it for warranty or insurance purposes, if something happens and you may also need them for tax purposes. No if you bought something impulsively and may want to return it, then you will hold on to that receipt, at least until the return period is up.
Bank & Credit Card Statements – These are also docs that can be shredded once you have verified that the information in accurate. Now, you will want to keep the ones related to your taxes, business expenses and home improvements. Good practice is 7 years for those. Statements are also available online through your bank or credit card provider. I know that I no longer get paper statements of any kind. You can download those that you need and save to your computer or flash drive, etc..
Paycheck Stubs – A good rule of thumb would be to keep stubs for one year, until you get your W2 from your employer. This way you can make sure they match, if not you would have to use the stubs for an amended tax return.
Mortgages and Other Loan Documents – Keep documents related to mortgages and other loans, such as car loans or student loans, until you have paid off the loan. You may also keep these documents indefinitely in the event your are questioned about whether or not you paid them off.
Property Records – According to Bankrate.com, you will want to keep these records on hand for up to six years after you sell the home. These records include all documents related to the purchase of the home, as well as records of any improvements you may have made, such as remodeling or additions. It is important to keep a record of the expenses you may have incurred in buying or selling your home, such as legal fees and commissions paid to real estate agents. These type of expenses are included when calculating your capital gain, which is the profit from the sale of an asset. If you would like to know more about capital gain and how it will affect your taxes, you should seek the advice of a reputable CPA.
Tax Documents – You will want to keep tax-related records for seven years. The IRS can audit you for three years after you file your return if it suspects a good-faith error, and the IRS has six years to challenge your return if they think you underreported your gross income by 25 percent or more, according to Bankrate.com. A seven-year window should cover you in either event.
Brokerage Statements – It is good practice to hold on to your quarterly statements until you have received your annual one to make sure they match up. Also, keep records of purchase and sales of securities in case you need to prove capital gains or losses at tax time.
Bills – You can shred most bills once the payment clears. Now remember that if it is for a big ticket item (furniture, computers or jewelry), keep the bill as long as you have the item. You never know if you will have to substantiate and insurance claim in the event of loss or damage and keeping the bill is proof of value.
Retirement Plan Statements – Keep your quarterly statements for one year and then you can shred them once you match them to your annual statement. Keep the annual statements until you retire.
When it comes to keeping documents, if you can scan and save then do that. Unless for some reason you need to keep the originals. For example, some military organizations do not want copies, they want the original documents. Even in that case you should still have a soft copy of those. For originals, you will want to keep them some place safe, like a water and fire proof safe. Another good practice is to back up all of those soft copies on a flash drive or external hard drive and keep that in the safe as well. You may be asking, what about a safe deposit box? Those are great, but what if something happens to you? How will your loved one be able to access those boxes right away? Keep electronic copies of all of the documents for safe keeping.
Where are you keeping your money? In a jar buried in the backyard, under your mattress or in a financial institution? Where you keep your money is just as important as how you spend it. Is your account loaded with fees and other charges? Is it a high interest bearing account? Does it have the best value and convenience for you? These are the questions that you need to ask yourself. Are you with a traditional bank, credit union or online bank?
What is a bank? – A bank is an organization that receives deposits, honors checks drawn on those deposits, and pays interest on them. Banks also make loans and invest in securities. Banks make profits by charging a monthly fee for checking accounts containing less than a certain amount of money. Banks may also charge for bounced checks, paper banking statements, and using an ATM belonging to another bank. They offer different types of accounts: checking, savings, money market or CD’s. Banks make money by charging fees and earn income from securities and investments. They are usually FDIC insured, so in case of robbery, it’s the bank’s loss and not yours. When choosing a bank, there are some things to consider:
The services you want. For example, are you looking for direct deposit of your paycheck, no-interest checking, or no-fee money orders? Do you want a higher interest rate on a savings account or investment options?
ATM convenience. If you like to use an ATM to perform many of your transactions, can the bank meet your needs?
Bank fees. Ask if there are ATM usage fees, overdraft protection fees, fees for going below the minimum balance, and bounced check fees.
Online banking. Internet banking saves time. Simply dial into the bank's computer using your own computer, or download information to your hard drive. This service may be free at some banks, while others may charge a fee for basic services. There sometimes is an additional fee for making online bill payments.
Customer service. Visit banks you are considering. Are the employees helpful, courteous, and able to answer your questions?
Insurance. Are bank deposits insured by the Federal Deposit Insurance Corporation (FDIC)?
Location. Are there branches close to your home and work?
We’ve touched on traditional banks, such as Wells Fargo, BofA, BB&T and TD Bank. Now I’m going to discuss Credit Unions.
A credit union is an alternative to a bank. It is a cooperative financial institution that is owned and controlled by the people who use its services. The people who use a credit union are its members, and they have something in common such as where they work, live, or attend church.
Because credit unions are not-for-profit, they provide more desirable rates and fees than banks. Although credit unions are for everyone, the law places some limits on the people they may serve. A credit union's field of membership could be an employer, church, school, or community.
Make sure any credit union you are considering is insured and offers the range of services you need. You can visit cuna.org to learn more about credit unions and to also search for them in your area.
Because online banks don’t have the same kinds of overhead costs associated with building maintenance and staffing, they can pass the savings on to you in the form of higher rates—and usually lower fees, too. You’re likely to find that that annual percentage yields (APYs) on products like savings accounts and certificates of deposit (CDs) are consistently higher for online banks. Not all online banks are created equal. Make sure to ask if they implement security measures to provide a safe banking experience for their customers. They will include measures such as SSL encryption, firewalls, anti-virus protection, and multi-factor authentication, to name a few. But you want to be sure the online bank you choose stays on top of industry trends and goes the extra mile to protect your information.
A good online bank will offer features like:
Mobile banking options - think easy-to-use apps and mobile check deposit
Account linking - to make transfers to and from your accounts as seamless as possible
Fee free bill pay and direct deposit services
ATM access - as applicable to your account
Activity alerts - to help you monitor you accounts
Having all (or most) of your bank accounts in one location can make it easier for you to keep track of your balances and stay organized. A good online bank will offer a solid range of all the bank products you use most. In addition to savings and checking accounts, online banks often offer a wide range of other bank products, like money market accounts, certificates of deposit (CDs), and individual retirement accounts (IRAs). Many online banks offer mortgage and auto loans, too. If you like the idea of consolidating your banking services, the best online bank for you will be one that has a diverse lineup of competitive products and services. You can check out sites like bankrate.com or nerdwallet.com for more information on online bank accounts.
Financial clutter can be cleaned up, and the payoffs, which include - lower banking costs, less risk of identity theft, better financial planning and an end to the chaos, are worth the time and effort. Make an inventory of accounts and a balance sheet, and then figure out which ones can be consolidated, which you don’t use or even realize you still had, and make a plan to clear those up. According to bankrate.com, people only need one or two bank accounts. More than that means more paperwork, fees and perhaps ID theft. Forgotten accounts can be declared abandoned and confiscated by the State.
To clean up your bank accounts:
Make a list of the accounts.
Research which offer the best services at the lowest cost.
Stop or transfer any automatic deposits or payments on the less attractive accounts.
Instruct the financial institutions to close those accounts.
To clean up credit card accounts:
Make a list of your credit cards in order of the highest to lowest interest rate.
Transfer balances from the highest rates to the lowest.
Close the high-rate accounts.
Make more-than-minimum payments on the low-rate accounts.
Monitor the rates until the balances are paid off.
To get rid of 401(k) clutter, roll over old accounts to your new employer’s plan as soon as you’re eligible to do so. If your new employer doesn’t offer this benefit, roll over into an Individual Retirement Account, or IRA. Some banks will count an IRA toward a minimum balance that can earn reduced or waived fees on a checking account or other services. Rolling over an old 401(k) when you start a new job also can reduce the temptation to cash out your investments.
Organize yourself so that you can have a better view of your financial picture
Set a goal
Update your budget
Know how long to keep paperwork
Discard papers if you have electronic copies
Back up your electronic copies
Don’t throw away…..shred
Check out your bank accounts, if you are paying a lot of fees, then shop around for a new account
Check your credit/credit score
Make larger payments (if possible) towards debt
Now that you’ve assessed the mess, checked your net worth and gotten rid of unnecessary documents, you will have a better idea of what was working and what wasn’t. This is where you sit down and reevaluate your goals, budget and savings plan. If you didn’t achieve your financial goals for 2017, it is not to late to get started for 2018. What is our plan of action for paying off and getting out of debt? Are you going to tackle highest interest rate first or lowest balance? It was America Saves Week from Feb 26 thru March 3rd. How many of you have taken the pledge? “ I, your name, pledge to save money, reduce debt and build wealth over time. I will encourage my family and friends to do the same”. I feel as though this pledge should be something that we live by everyday of the year. How many of us have said we are going to do better, but after a few months, even after a few weeks have forgotten abut what we were supposed to be doing. Print the pledge out and leave it where you can see it, and repeat it everyday if necessary. Now is the time for change, I have started my own financial spring cleaning and believe me, it’s eye opening. Always remember that being aware of your circumstances is essential to moving forward.
Please check out our website for interactive calculators, ask the expert tips, downloadable booklets and videos.
I would just like to thank you all again for attending this webinar and I hope that you found it to be very informative. Please do not forget that immediately following the close of the webinar, there will be a survey and about an hour after the questionnaire will be emailed to you. Please check you junk/spam folder to see if it there. Once that is completed and returned the notes will be sent to you. I have also included a list of the credit rights in the notes for your review. Thanks again for joining us today and have a wonderful rest of your day!