Have you received a new job offer? Considering a job transfer to a new state? This online calculator from payroll processing provider ADP helps you determine what your take home pay will be every pay period. There is also a version for those who are paid hourly. Such a helpful tool as you build your budget for your next chapter in life. To give it a try, click on the link below: ADP Take Home Pay Calculator
Underwriting is what banks or insurance companies do when they evaluate risks associated with lending money or providing an insurance policy. To underwrite yourself, you need to take a close and honest look at your finances, ask yourself some questions, consider uncertainties and exposures, and evaluate your risk profile on many fronts. Analyze Your Sources of Income The first consideration is your income. Ask yourself these questions: Is your salary steady or variable? Do you rely on commissions or bonuses? Do you work in a cyclical industry? If your compensation is variable, you should not carry a lot of debt. Likewise, you should make sure to have an ample cash reserve. Evaluate Your Debt When you are thinking of buying a big item, consider if you can actually afford the item, not just whether or not you can afford the payment. Commit to paying off your credit card balances every…
What Are Your Savings Goals? The new year is the perfect time to reconsider your financial goals. If you have a partner, make this discussion a priority. It is the only way to determine if you are on the same page when planning for the future. To assess your financial needs, ask yourself the following questions: Do you need dividends or interest to support your present lifestyle? Are there any impending near-term changes in your life? When do you plan to retire? What about other long-term plans such as having children, changing jobs, traveling, or starting a business? Do you want to help your children with college expenses? Do you want to support specific charities? Are there unique factors to consider, such as health issues? Do other people rely on you for financial support? Do you have children or other family members with special needs? Are you interested in and…
In your contacts notes field, track the amount you pay each year for regular home maintenance services. Yesterday, I was significantly overcharged. I contacted the manager and shared what I have spent over the years. He apologized and quickly corrected it. We all make mistakes sometimes. Especially now, local businesses truly value long-term clients. Please support them.
Life transitions, such as college graduation, are a good time to think about financial goals. Different goals have different time horizons. Some are short term—such as establishing an emergency fund—and some are long term, like retirement. Tackling all your savings goals at once is unrealistic, so you should prioritize. The most immediate savings goal is your emergency fund. Experts recommend that you have an emergency fund sufficient to cover six months living expenses. Assets in the emergency fund should be very liquid such as cash in a savings account or in a money market fund. If you are new to the workforce, it may take time to build up an adequate reserve. The easiest way is to transfer a portion of your paycheck every pay period directly into an account. You may need a bigger emergency fund in some circumstances. You may face hurdles when looking for a new job,…
Whether appearing in your mailbox or your browser, financial information inundates us daily, adding to the papers and information (virtual or real) you already have. Some of it is important; some of it is not. Not only should you strive to reduce the amount of paper and computer files that you retain, but you need a system for organizing everything that you decide to keep. Not only are we inundated with information, our lives require more passwords than ever. Time to confess: I have far too many passwords (financial accounts, online shopping, subscriptions, kids’ schools, activities . . . the list goes on). I have wasted a lot of time trying to find or remember them all, and I worry about online security. Your passwords need to be secure, whether you write them on a piece of paper (keep the list hidden far from your computer) or you use a…
During turbulent times, people are often anxious, preoccupied, or distracted. COVID-19 is no exception. Not surprisingly, there is a positive correlation between turmoil and the incidence of cybercrime. During 2020, identity theft and financial frauds have been on the rise: hackers and scammer prey on people’s fear and vulnerability. Advances in technology and mobile communication have changed the way we manage our finances. These innovations save time and allow us to be more informed consumers. But the innovations have also introduced new risks and exposures. With time, your financial accounts will grow, and so will the potential losses from identity theft and fraud. Review your credit report regularly. You can download your free report and search for errors or indications of fraud at www.annualcreditreport.com. If you will not be in the market for a new loan soon, it is possible to freeze or lock your credit profile to reduce the…
Our financial lives are complicated. Where are your assets located? How are they invested? Where are your vital documents? What bills are on autopay? Are your beneficiary designations up to date? Who are the people that help you manage your financial life? With an In Case of Emergency or ICE plan, you assemble key contact and financial account information in one place. An ICE plan guides someone who must act on your behalf—it is like a roadmap of your financial life. If you use a web-based personal financial management service, you have a great head start. To create an ICE plan, prepare a list of: Bank accounts, credit card accounts, retirement accounts, brokerage accounts, and any other investments The name and phone number for anyone who helps you manage your financial life—banker, insurance agent, accountant, investment adviser Details about your lease or your mortgage—the name of your property management company…
Due to demographic and socio-economic factors, there has been a dramatic rise in the number of people serving as financial caregivers. Going forward, the trend is likely to continue. Although many serve in this capacity, few understand the role’s scope. Have you been asked to serve as a financial caregiver? Are you considering asking someone to serve as a financial caregiver for you or a loved one? The Consumer Financial Protection Bureau (consumerfinance.gov) offers four free guides explaining what it means to serve as a trustee, power of attorney, guardian of property, and as a government fiduciary (for Social Security and VA benefits.) A common trait across these types of financial caregivers is that involve a fiduciary duty. These four guides explain fiduciary duty and offer helpful suggestions on how best to serve in these roles. Guides for Different Types of Financial Caregivers
We accumulate vital documents over time. As a result, they are often scattered around our homes. Having your most important information organized and close at hand gives you peace of mind, especially during turbulent times. An In Case of Emergency, or ICE, file contains key documents that are easily accessible to you or someone acting on your behalf. If you need to leave your house or apartment quickly, it is beneficial to have your most important documents all in one place so that you can easily access them as you leave your home. At the least, include the following items in your ICE file: Legal documents, such as wills, powers of attorney, health care directives, and the titles for your home and car Vital records, such as birth certificates, adoption documents, marriage certificates, Social Security cards, and military records Copies of passports, credit cards, and driver’s licenses After you have…