Minding Your Money 360 - Quick tips to manage your money for success

Today on the minute – How Should I File My Taxes?

I know it’s just the middle of January, but people are already contacting me about doing their taxes and I’m answering all types of tax questions, including this one. How should I file my taxes? There are now so many options available that this can be a real question and I keep remembering the question from the young man who related his story about online tax prep. He said that he had used one of the online tax programs and found that he was getting a large refund. But he didn’t stop there, he tried another online tax program and he found that he would owe money. So he asked me what he should do.

Well, several thoughts ran through my head at that point – nothing that would be very helpful to him so I waited until a rational thought came to mind and I shared it with him. Doing your taxes is not rocket science although it can appear that way sometime, but answering one question differently or hitting the wrong button at the wrong time in these programs can lead to varying results. If your return is really simple or if you are familiar enough with how to do taxes so that you can spot a problem, then using online software is probably fine. But in other cases, you might want to consult a professional and either have them do your taxes or teach you how so that you can do them with more confidence because even the kinder, gentler IRS still does not necessarily have a sense of humor. In either case, always keep good records and be prepared to show how you arrived at your numbers on your return. And, that alone could save you a lot of headaches.

And, that’s the minute for today. I love helping people with all aspects of their financial lives. If you have a question, send it to me at [email protected].

Thanks for listening and as always remember that minding your money really is the path to a richer life!

It’s Friday and time for the Word of the Week! Our word this week is Money Plan.

And, it’s something everyone should have. Unlike a budget which incidentally should be a part of your money plan – a money plan is an overall strategy to use your money in ways that gets you closer to your goals – that gets you closer to your ideal life.

In my new book, the Beginner’s Guide to Minding Your Money, I provide the framework for a four-step strategy to create the life you want and Step 2 of the process is to create a money plan. Your money plan is essentially how you will pay for you journey to build the life you want. A large part of this process is creating a budget so that you know what you have available to put towards your goals.

But beyond that it’s also about systematically allocating your money to places that will allow you to keep moving towards your goals. Sometimes that means you have to give up something today to have a better tomorrow and in other cases, it may mean that you need to live a little more today. Every case is different because we are all so different in not only how we define our ideal life but in how far we are willing to go to achieve it.

Our word of the week: money plan. Having a money plan is an essential step in achieving financial freedom and building the life you want.

And, that’s the minute for today. Want to learn more about creating a money plan? Stop by www.mymbooks.com today and for a limited time pick up a free copy of my new book. It’s available in several different formats – Kindle, Nook, iTunes, PDF and there’s also an audio version so you can listen on the go.

Thanks for listening and as always remember that minding your money really is the path to a richer life!

Today on the Minute – Is Good Credit Worth Anything?

I got an interesting letter from a listener and I think she just wanted to vent. She talked about how hard she had worked to get good credit but she couldn’t see the real benefit. So if you have good credit and by that I mean a FICO score of 700 or better then you should consider that an asset.

I say that because as the world gets number conscious versus people conscious, having a good credit score can help you because many people believe rightly or wrongly that there is a correlation between your credit score and other parts of your life. So how can it impact your daily life? Here are three important ways:

Getting a new job. It’s one of the first thing prospective employers check and having poor credit could actually cause you to lose a job.

Getting a place to live. Whether you goal is to rent or to buy, your credit can make it possible or impossible depending on what it is. And, if you decide to buy and your credit is not so good, if you can make it past the first hurdle and get approved the next hurdle will undoubtedly be the rate which is on a sliding scale with it going higher as your credit score goes lower.

Getting a car. People with lower credit scores simply pay higher rates.

Finally, getting insurance for your home or car – yes, your insurance rates are often tied to your credit score. The lower your score, the higher your rates.

So the next time you think that working toward a good credit score is not worth it, consider the ways it can touch your life and that of your family before you chuck it all.

And that’s the minute for today. Still haven’t gone over to www.mymbooks.com and picked up a copy of my new book? Did I mention that it’s free and you can get it in several different formats – Kindle, Nook, iTunes, PDF and there’s also an audio version so you can listen on the go. So hop over to www.mymbooks.com and claim your copy now.

Thanks for listening and as always remember that minding your money really is the path to a richer life!

Today on the minute – Do You Have to Move to Make Your Money Go Further?

I read an article by CareerCast.com where they listed the top 10 cities in the US you should move to to make your paycheck go further. The metro cities were scattered throughout the US. Austin, Texas top the list and Columbus, Ohio, Durham, NC, Fort Worth, TX, and Houston, TX rounded out the top 5. They listed the median household income, the average cost of living and the unemployment rate to make their case. But, making your paycheck go further because of the cost of living is far too simplistic. There are a number of other factors to consider before making a move. But I digress, I started this whole train of thought because I believe that you can make plans to stretch your paycheck further no matter where you live. It is simply a matter of priorities.

So what are your priorities? What are the most important things to have in your life? Is it the type of space you live in, entertainment spots, the car you drive, being close to old friends, the ability to find new friends, libraries, etc. What means more to you than anything else? Once you make your list, you will have a good idea if you should move to Texas or stay put – then you can put a budget in place to make your paycheck go further.

And, that’s the minute for today. Don’t forget to go over to www.mymbooks.com and grab a copy of my new book – the Beginner’s Guide to Minding Your Money. It’s filled with great tips and strategies to take control of your money to create the life you want.

Thanks for listening and as always remember that minding your money really is the path to a richer life!

Today on the minute – What Are Your Salary Requirements?

If you’re looking for a new job, and judging by the number of questions on this subject I have received recently, chances are you are going to bump up against that annoying question. You the one that asks, “What are your salary requirements?” There’s an old adage that says he or she who speaks first loses and this can be a prime example. So how should you answer this question so that you don’t undershoot and lose money or overshoot and possibly lose the job? Here are some tips to keep in mind once you get the interview:

Do your homework. As much as possible research the company and the specific job. Look at industry standards for the type of work you will be doing. If they are a larger company, they may be featured on sites like Glassdoor.com that may actually give you a salary range.

Once you are in the interview, Penelope Trunk offers the following advice: You want the interviewer to tell you the range for the position, because then you can focus on getting to the high end of the range. But you can’t work to the high point if you don’t know it. She says, “When there are two good negotiators in the room, each person will try to get the other to give the first number. Each time you deflect the question, the interviewer will try again. Your goal is to outlast the interviewer until they finally tell you the salary range for the job. Here are some examples of how to respond:

“Let’s talk about the job requirements and expectations first, so I can get a sense of what you need.” OR “I think you have a good idea of what this position is worth to your company, and that’s important information for me to know.”

When asked about what you make at your last job? “This position is not exactly the same as my last job. So let’s discuss what my responsibilities would be here and then determine a fair salary for this job.”

The point is try not to be the first one who gives a number. I know this may sound obstinate or even obnoxious but this is important and if people are not willing to be upfront with you at this stage of the game when you are not even an employee what will they do later on? They have budgeted something for this position and your job is to find out what that number is.

And, that’s the minute for today. Don’t forget to go over to www.mymbooks.com and grab a copy of my new book – the Beginner’s Guide to Minding Your Money. It’s filled with great tips and strategies to take control of your money to create the life you want.

Thanks for listening and as always remember that minding your money really is the path to a richer life!

Today on the Minute – Are You Missing the Signs?

I’m not sure what the weather is like in your world but I woke up to snow a couple of days ago and I live in Hot Lanta where it snows maybe once a year – they said it was coming but I don’t usually listen to weather people because I’ve been fooled so many times. I bring this up because sometimes we just don’t heed the signs when they are clearly marked in front of us and that can lead to a not so happy ending. Naturally, I wasn’t prepared, in fact I took my car in for servicing and it’s still there. I guess I will pick it up later today.

So what are some signs that are going on in your life that you may be ignoring? Signs like not checking your account balances on your checking, credit cards and other accounts. Signs that might be trying to tell you that you are a victim of identity theft but you haven’t checked your credit report. Or signs like ignoring those who are important in your life because you are too busy. I could go on and on but you get the point. I had some time to do some reflecting because I had to stay at home all weekend. I think I might be getting a touch of cabin fever.

And that’s the minute for today. If you like the Minute, subscribe to it and leave us a review on iTunes. And if you would like help getting your financial life (business or personal) together email me at [email protected]

Thanks for listening and as always remember that minding your money really is the path to a richer life!

It’s Friday and time for the Word of the Week! Our word this week is Life Insurance. 

For most of this week, we have been talking about life insurance and I want to do a quick summary today.

The main purpose of life insurance is to substitute for the insured's income if he or she dies, The policy holders buy insurance coverage from an insurance company, and pay specific periodic premiums for the term or life of the policy. If the insured dies before the term is completed, a guaranteed sum or the face amount of the policy is paid to one or more named beneficiaries. If the insured survives the term then, depending on the type of the policy, he or she may receive the full or a part of the face amount of the policy. In addition, some policies may also have accelerated benefits, also known as "living benefits," where policy proceeds are paid to the policyholder before he or she dies. This is especially helpful in cases where the insured may have extreme medical or other bills. The benefits may be provided in the policies themselves, but more often they are added by riders or attachments to new or existing policies.

For young families, a life insurance policy creates an 'instant estate' before they have enough time to accumulate other assets. And it provides liquidity to the named beneficiary (or beneficiaries) long before the deceased's estate matters (which often call for substantial expense) are settled. Two main types of life insurance policies are term life insurance and whole life insurance. Life insurance has its origins in the old practice of saving money for one's own funeral costs, and is called also life assurance.

Our word of the week: life insurance. I believe it is called life insurance because it is really for the living!

And, that’s the minute for today. Still haven’t gone over to www.mymbooks.com and picked up a copy of my new book? Did I mention that it’s free and you can get it in several different formats – Kindle, Nook, iTunes, PDF and there’s also an audio version so you can listen on the go. So hop over to www.mymbooks.com and claim your copy now.

Thanks for listening and as always remember that minding your money really is the path to a richer life!

Today on the Minute – Which Type of Life Insurance Should You Buy?

There are two basic types of life insurance – term and cash value. While they both can provide the coverage you need, they are very different and you should understand which one makes the most sense for you now or in the future.

Term life insurance is as the name implies – life insurance coverage for a specific term (or temporary) and its only life insurance – nothing else. The term could be annually, 5, 10, 15, 20 or even 30 years. So, you can choose the length of coverage you will need for the time that others will be dependent on your income. As you get older, the premiums for term insurance increase. Buying insurance for a longer term locks in your rate but the longer the term and you don’t have to qualify for coverage as often. However, the longer the term, the higher the initial rates – so it becomes a tradeoff.  Unless you know you only need it for a specific amount of time, get the guaranteed renewable feature so you can have insurance regardless of changes in your health.

Cash value life insurance or whole life on the other hand, combines life insurance with an investment component known as the policy’s cash value and it is permanent insurance. The cash value grows slowly, tax-deferred, meaning that you won’t pay taxes on its gains while they’re accumulating. You can borrow money against the account or surrender the policy for the cash. But if you don’t repay policy loans with interest, you will reduce your death benefit, and if you surrender the policy, you’ll no longer have coverage. There are a number of variations universal, variable and variable universal. Permanent insurance costs more than temporary insurance – a lot more and it’s not for everyone. If you don’t have a permanent need for life insurance – you can buy term and invest the difference yourself.

And that’s the minute for today.  Still haven’t gone over to www.mymbooks.com and picked up a copy of my new book? Did I mention that it’s free and you can get it in several different formats – Kindle, Nook, iTunes, PDF and there’s also an audio version so you can listen on the go. So hop over to www.mymbooks.com and claim your copy now.

Thanks for listening and as always remember that minding your money really is the path to a richer life!

Today on the minute – How Much Life Insurance Do You Need?

Yesterday we talked about who needs life insurance. If it turns out that you do need it, the next big question is how much do you need?

Today on the minute – How Much Life Insurance Do You Need?

Yesterday we talked about who needs life insurance. If it turns out that you do need it, the next big question is how much do you need? While everyone’s situation is different, here are some important factors to consider when determining the amount of life insurance you will need:

Your assets – generally, the more assets you have, the less life insurance you need

Your debts – generally, the more debts you have, the more life insurance you need

Your health and that of your family – if you or your family has medical issues or special needs, you may need more life insurance

Whether or not you have children that you want to help put through college

And, there may also be other considerations such as whether you have elderly parents who may need assistance or you want your spouse to retire comfortably even if you’re not there.

After this, you should have some idea of what you want to use life insurance to replace and for how long. So instead of just buying $250,000 of insurance or some other number, take a minute to see if that will be over kill or under kill for what you need.

And, that’s the minute for today. Don’t forget to go over to mymbooks.com and grab a copy of my new book – the Beginner’s Guide to Minding Your Money. It’s filled with great tips and strategies to take control of your money to create the life you want.

Thanks for listening and as always remember that minding your money really is the path to a richer life!

Today on the Minute – Want Some Help With Your Resolutions?

The New Year is here! So did you do it? Did you set a resolution or resolutions? If so, and you would like some help keeping them, send me an email at [email protected] and I’ll send you a quick note each week to help you stay on track.

Today on the Minute – Want Some Help With Your Resolutions?

The New Year is here! So did you do it? Did you set a resolution or resolutions? If so, and you would like some help keeping them, send me an email at [email protected] and I’ll send you a quick note each week to help you stay on track.

Before we get started, I want to say a big thank you to all of you for being a part of my community. I could not have done all of this without you. We finished the year with almost 200,000 downloads and we are now on Episode 551. So the Minute is cooking.

As a thank you my new book is finally here – starting tomorrow (Tuesday), you can go to the www.mymbooks.com website and you can download a copy for FREE. It’s available in all different formats – Kindle, Nook, iTunes, PDF and an audio version. And for those of you who prefer paperback there’s also a paperback version but it costs $5.

Finally, I’m doing something a little different this year at least for the month of January. We’ll see how it goes. I’m going to go deeper into some topics so that you end up with some information that you can put to work in your life right away. For example, for the rest of this week I’m going to focus in on life insurance. It’s not something that most people want to talk about but it is such an important part of a complete financial plan and whether you have a young family or you’re getting close to retirement it can mean the difference between achieving your goals and having them disappear.

We are also going to spend some time going deeper into retirement planning this month and so on. If you have topics you would like to learn more about send me an email and I’ll look into working them in this year. We are also going to have some different segments with guests – the Minute is moving and changing. Let me know what you think.

And that’s the minute for today. If you like the Minute, subscribe to it and leave us a review on iTunes. And if you would like help getting your financial life (business or personal) together email me at [email protected].

Thanks for listening and as always remember that minding your money really is the path to a richer life!