This book is the result of the work of many people, and I am grateful to them all. While there were many options available to consumers, it was virtually impossible to get a comprehensive view of the best banking products and rates for their needs.
THE HOLE IN YOUR POCKET
Do you regularly pay your bills on time?
Do you faithfully follow a monthly budget?
Despite the saying, "Where there's a will, there's a way," more than 40 percent of people age 35 and older don't have one. The reason is that most of us know what to do when it comes to personal finances, but many of us don't.
Your Financial Action
PLAN
RAINY DAY FUNDS AND SUNNY DAY SAVINGS
This discount is actually the interest that will accumulate over the life of the bond. Stocks are typically put into categories according to the size of the company and the relative value of the stock.
BILLS AND CHILLS
If you're in over your head and your finances are ruining your life and health, it may be worth considering filing for bankruptcy. Most states do not allow creditors to take your home or car, provided you only have one.
BUDGET BINGO
Decide which of your expenses you're willing to curb so you can shift some of the resulting cash to higher priorities, such as saving for retirement, vacations, or your children's education. Miscellaneous expenses, 10 to 13 percent of the total, include things like personal care items, entertainment and reading materials.
HANGING IT UP
First, if you're under 591⁄2, you'll pay an early-withdrawal penalty plus income tax on the money. Social Security benefits are based on what you have contributed to the system over time.
BANK ON IT
It is not necessary to include your address on the check and many experts recommend leaving it out as a security measure to avoid identity theft.). If you've bounced several checks in the past year, look into some form of overdraft protection from your bank. It is also your job to know where your important papers are and, if you had five minutes to remove from your house, what you should grab.
Tell friends or family members where important information is located in case you are not available when needed. It is a good idea to keep one key to the safe at home and one with someone else (a family member or lawyer). Keep backups away from your home and update your computer files regularly by adding this data to your vault.
WILLING IT
First, you can distribute cash or assets worth up to $11,000 per year ($22,000 per couple) without having to pay gift taxes. You can change the terms of your living will and durable power of attorney for healthcare at any time. If a funeral director refuses a public viewing without embalming, you can request a private viewing without embalming.
While caskets used to be sold only by funeral homes, today you can buy one on the Internet or use a family-built one if you prefer. Know that you do not have to purchase a package of services that the funeral home insists on: you can and should choose à la carte. You can also hold a memorial service at home, at your church, in a park, or at the community center, for much less money than at a funeral home.
GOT INSURANCE?
But if you have a serious illness, an unexpected health problem, or a chronic illness that requires expensive treatment, you'll quickly deplete your supply of reimbursement. If you're young enough or in college, your parents' insurance can probably still cover you. If you work, you may be able to get health insurance through your employer, which is about the cheapest way to get it.
If you have "own occupation" insurance, you are presumed to be disabled when you are unable to perform the functions of your job. If you have a claim, file it as soon as possible because this starts the clock on the exclusion period. If you have insurance with the company for several years, you can receive a special discount for long-term insurance.
DRIVING MR. WASHINGTON
Wait for your score to rise to 680 to get the loan interest rate reserved for the good credit of the customer. And if you're bankrupt, don't apply for a car loan for at least three years. If you owe more on your car than it's worth, if you're leasing, or if you've put down less than 20 percent, you should get gap coverage from your insurance agent, not the dealer.
Not thinking about selling the car when you buy - especially if you usually sell or trade a car every few years or want to buy a new car before paying off the existing one - can land you "upside down", i.e. owe more on the loan than the car is worth. When you have signed, you say that you have read and understood all the numbers. If you have significant assets, consider purchasing an umbrella policy that covers both your home and your car.
TAKE CREDIT—CAREFULLY
Someone who maxes out or is close to the limit on a credit card is considered a more conservative spender than riskier. Credit card issuers also want college students as customers because students tend to be loyal to their first credit card;. they will continue to load on the card long after graduation. If you find yourself buried in credit card debt, take a moment to assess the damage.
Graduating from college without a credit card can be just as bad an idea as graduating without a degree. And if a pre-approved credit card offer comes your way, there's an excellent chance you'll be turned down due to the lack of revolving credit on your credit report. While you may not plan to miss a credit card payment or go over the limit, it's important to understand what will happen if you do.
DEALING WITH DEBT
BLUES
You must file a tax return in the United States if you earned money and are a US citizen. If you are employed, your employer is required to withhold federal income taxes (FIT) and Federal Insurance Contributions Act (FICA) from your salary or wages. If you can't pay your tax bill for several years, it's time to negotiate.
If you don't, you can be sure that the IRS will catch the mistake and redo your taxes for you. If you forget to include this information in your return, the tax inspectors will inform you that you owe taxes on it as well. If you owe money and choose to pay by check, make it payable to the United States Treasury, not the IRS.
THIS OLD HOUSE
These transaction costs can amount to roughly ten percent of the sales price. And if you fall in love (or are at least 90 percent in love) and enter into a contract to purchase the object of your affection, remember that there are fees associated with terminating the contract. With a fixed-rate mortgage, the interest rate remains constant; so you know what you pay for the term of the plan and can budget more easily.
It's also easier to qualify for an ARM because of the lower initial interest rate. A point is one percent of the loan amount, which is paid in cash to the lender or the mortgage broker at closing. Some lenders charge origination points, the number of which varies with the size of the loan.
12 STEPS TO MONEY SUCCESS
Program for Financial Literacy 1. Keep an emergency fund
BANKRATE FORM LETTERS
If you have any questions, please don't hesitate to call me on your daytime phone number. This letter is my official notification that I will close my account number before the end of the month with the name of the credit card company. This letter is a follow up to my telephone cancellation of my account number with credit card company name.
Today, I called the card company representative to report that my credit card was lost or stolen. This letter is my formal request that you change your credit card account information to reflect my new name. Credit Card Account Number Credit Card Account Number Old Mailing Address New Mailing Address City, State, and Zip Code City, State, and Zip Code.
In addition to changing the information on my account, please issue a new credit card in my new name. If you have any questions about these changes, you can contact me by email at my new address or by phone at your phone number.
GLOSSARY
Amortization: The schedule of loan payments that establishes the amount of payment to be applied to principal and the amount to be applied to interest, usually on a monthly basis, for the entire term of the loan. Mortgage interest rates do not include origination points, discount points, and mortgage insurance, all of which are taken into account when calculating a loan's APR. The Truth-in-Lending Act requires lenders to provide consumers with a loan's APR, which they can then use to compare loans.
In arbitration, you and the credit card company will submit your dispute to an impartial, neutral third party, who will resolve the dispute with a decision binding on both you and the credit card company. Assessment: The value of a property as determined by the local taxing jurisdiction; it is used to determine the amount of your property taxes. Assignment of benefits: When an insured arranges for the plan to pay someone else directly, usually the doctor or hospital.
