Michelle Singletary's Financial Wisdom #1

Michelle Singletary's Financial Wisdom #1

Here is a gem I found today. I often use this sister's material as I assist families to move from debtors to savers to wealthy givers. (She's also very easy upon the eye....) Enjoy !
Seko VArner
World Financal Group, 15PNZ
www.HappilyEverAfter.Be
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Michelle Singletary was interviewed about her latest book, Your Money and Your Man: How You and Prince Charming Can Spend Well and Live Rich, published by Random House. She talked about writing a biweekly column in The Washington Post, an online newsletter, and an online chat room on personal finances. Topics included teaching children stewardship of money from early age, avoiding credit card debt, budgeting, college funds, and home ownership.

Direct link to the video: http://www.c-spanvideo.org/program/191933-1
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These posts provide information that may aid financial improvement. The information on this site is provided as opinion and should not be construed as professional legal advice, nor professional financial advice, nor professional tax advice. The end reader is advised to seek professional assistance to address one's particular situation. The posts on this site may be third party information and may not be copyrightwritten by the poster of the information.

Seko's Tip: Protect thy credit volume 1

Protect Thy Credit (Volume 1)
Great services for a fee and for free !
Choose what's best for your particular situation......

You might be aware of the growing problem with identity theft. Someone can easily impersonate you and your credentials to get loans, credit & credit cards, and also to use your identity for medical uses....... all ways to ruin your credit standing and add endless hours of grief to you. If someone impersonantes you it can take hours upon hours to clean up the headaches. Often the one impersonating you can be a family member. I know of countless families where the parent owed on a utility bill and simply took out a new account in the name of one of thier children, or where a family member used another member's credentials to get some illegal money. Of course in many cases the person breaking the law isn't faced with any consequences, but the one whose identity was compromised had to deal with a bit of hell.

I have a credit monitoring package which is marketed by Pre-Paid Legal that I purchased years ago. I've been happy with the serivce knowing that while they cannot prevent the theft totally, I'm covered by thier services to do all the crazy paperwork and phonecalls in my stead if the theft ever happens. I pay about $10 a month for this service and have had it for years. However very soon I'll be switching to a service my team markets. My team markets LIFELOCK's credit monitoring services which do about the same, and had improved thier services even more to make what I consider a superior service for credit monitoring. You may have seen or heard our advertisements and may remember the first advertisements in which the owner provided his social security number on the sides of busses daring anyone to take his identity as he was protected by his services. Truthfully his identity was eventually stolen and his services did clean up the mess as it states that it will. Monitoring does not provide protection, it's more like a burgular alarm with a dedicated investigator/house cleaner who will alarm you as soon as the theft occurs and clean up the mess after the theft happens. If you are intrested in obtaining LIFELOCK's services then visit the following link www.lifelock.com/wfg and enter code the member code 18CQO at the bottom of the page or call 1-800-LifeLock and provide them receptionist with the Promo Code "WFG" and the Member Id of "18CQO" to receive something special from my team. (PERKS !!!!! :)

There is a new Free credit monitoring service that one may want to consider. This services may not match to the services that we offer but it's worth researching. I found out about this service via Clark Howard. Check out the info' at this link: http://www.clarkhoward.com/videos/clark-howard/consumer-issues-id-theft/free-credit-monitoring-service/vX3N/ . I did not provide the name of the service purposefully as I am not marketing the service, follow the link for more details.

Lastly, the way to prevent identity theft, not monitoring & clean-up-after, is by Freezing your credit. The process to do so can also be easily found on Clark Howard's website by following this link: http://www.clarkhoward.com/news/clark-howard/personal-finance-credit/credit-freeze-and-thaw-guide/nFbL/ . There are some considerations when considering this action which are presented on the link I've provided. This may not best the best option entirely if one needs to provide access to thier credit frequently. Choose what's best for you and your situation.

Be Improved !

Seko VArner
15PNZ, World Financial Group
Financial FREEdom
http://www.happilyeverafter.be/financialfreedom.html

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Black Improvement Economics is a service of The Imani Foundation http://www.imanifoundation.com/ . These posts provide information that may aid financial improvement. The information on this site is provided as opinion and should not be construed as professional legal advice, nor professional financial advice, nor professional tax advice. The end reader is advised to seek professional assitance to address one's particular situation. The posts on this site may be third party information and may not be copyrightwritten by the poster of the information.

Wealth is what you save.....

Here's another money matters article I found interesting. Remember to give me a call to address your needs in debt reduction, investments, or financial protection ! Seko VArner Team VArner Improvement Services 757-248-3820 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Wealth Is What You Save, Not What You Spend by Jennifer Waters Sunday, April 17, 2011 Want to be a millionaire? Don't overspend and use debt wisely. We all may not be millionaires but there are plenty of financial and life-planning secrets we can learn from the well-heeled. Most people know that wealth in the U.S. is in the hands of a small percentage of the total population. And, today, most of those folks with a net worth of $1 million or more have earned it themselves. They're mostly entrepreneurs who create everything from high-speed networks to garbage haulers. They dig ditches and build houses and grow corn and make jewelry. They deal stamps or coins or artwork and control pests and cut lawns. They also cure people and give them new teeth. Others will defend their neighbors or even feed them. And they're not big spenders. In fact, most of those with big bucks live well under their means -- think about Warren Buffett still living in that modest Omaha home -- and they put their money instead toward investments that help them stockpile more wealth. "Wealth is what you accumulate, not what you spend," according to Thomas Stanley and William Danko, the authors of the seminal tome on America's wealthy "The Millionaire Next Door," first published in 1996. "It is seldom luck or inheritance or advanced degrees or even intelligence that enables people to amass fortunes," the authors wrote. "Wealth is more often the result of a lifestyle of hard work, perseverance, planning, and, most of all, self discipline." Wealth is defined in many ways, though it's generally determined as the value of everything you own minus debts. But there's a difference between marketable assets -- things you own that could be liquidated rather quickly, like stocks, bonds, real estate -- and possessions like cars, clothing and household items that you use regularly and aren't likely to sell. Income alone does not make one rich. It helps, of course, to build wealth, but the financially independent look to their salaries as a means to an end, which is that pile of cash. "The wealthy don't spend their wealth on discretionary purchases," said Pam Danziger, founder of Unity Marketing, a consumer market-research firm specializing in luxury goods and experiences. "They get rich by maximizing the value of their investments." That doesn't mean they don't pay big bucks for pretty shoes or outfits, but that most choose those items carefully and shop for value and quality. "They truly evaluate the purchase as an investment, not an expense," Danziger said. What they do though is diversify those investments, which gives them more flexibility to ride out difficult times. "The wealthiest clients have very, very diversified portfolios that go way beyond just stocks and bonds into hedge funds, currencies, commodities and emerging markets," said Leslie Lassiter, managing director of the JPMorgan Private Wealth Management. "There are many, many mutual funds out there that will allow you to get exposure to those types of asset classes," Lassiter said. Among the biggest differences between those flush with cash and those wishing they were is in how they pay for things. Millionaires tend to use cash for most of their purchases, including cars, homes and boats. For the average wage earner, of course, that's not always an option but it still holds this lesson: Don't look to debt to fund your lifestyle. Most wealthy people use debt for investment purposes and are careful not to over-leverage themselves. "A prudent use of debt is an appropriate thing for anyone," Lassiter said. They also plan very well and spend a lot of time at it. Many are compulsive savers and investors who often say the journey to riches was far more fun than the reaching the goal. And they're patient, willing to invest in the long term and wait it out. "They stick with their investments and are more likely to have a financial plan," said Sanjiv Mirchandani, president of National Financial, a subsidiary of Fidelity Investments. Many take the long-term approach to investing because they're working at being financial independent. When they retire, for example, many will know exactly how much they need to live on, to give away and to leave as a legacy. "The best ones really understand how much liquidity they need to cover their expenses and make sure they have that much cash on hand," Lassiter said. "That's something the average person should do as well." At the same time, she said most are very careful about leveraging debt. "The wealthy tend to balance between the two," she said. Recommendations for accumulating wealth: Live below your means: People with high incomes who spend all that money are not rich; they're just stupid. Plan: That means plan for today, tomorrow and 30 years after retirement. Take time doing it too and spend time monitoring it every day. Use budgets and stick to them. Diversify: As Lassiter said, look for mutual funds that allow you exposure to asset classes that aren't related to each other. Reduce use of credit and turn to cash: It's easier, of course, for a prosperous person to pay for a house in cash than it might be for most folks, but credit-card debt for luxury purchases or extravagant vacations will never pave a road to riches. Have access to cash: While the rich keep much of their wealth invested, they can get cash when they need it. "Have some kind of line of credit available, like a HELOC (home-equity line of credit) that you never use," Lassiter said. "It's a safety valve." She suggests a year's worth of cash to cover expenses; Danziger thinks three years worth is a better bet. Spread cash around: When the wealthy pulled money out of the equities markets two and three years ago, they opened a bevy of bank accounts, all guaranteed up to $250,000 of deposits by the Federal Deposit Insurance Corp. Bring your children into the mix, and remember the importance of estate planning: The affluent can go to great lengths to teach their children about money and how to manage it -- something every family should do. Though talking about money with children consistently ranks as one of the most dreaded conversations, it's important that your heirs know where all the bank accounts and safe-deposit boxes are -- even that their names are on them, too -- who the attorney is, where the will and trusts are filed. This article is part of a series related to being Financially Fit

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Black Improvement Economics is a service of The Imani Foundation

http://www.imanifoundation.com/ These posts provide information that may aid financial improvement. The information on this site is provided as opinion and should not be construed as professional legal advice, nor professional financial advice, nor professional tax advice. The end reader is advised to seek professional assitance to address one's particular situation. The posts on this site may be third party information and may not be copyrightwritten by the poster of the information.

Jewels & Tools - FICO questions answered

More jewels & tools -
Here's an article I found worthy of sharing. The article features the CEO of the FICO corporation, one that many of us have faced self-imposed difficulty with. Many of my Financial FREEdom clients began with struggles with credit. If you find yourself in need of Financial FREEdom read the article, or contact me, or both.

Brother Seko VArner

Financial FREEdom

757-248-3820

http://www.happilyeverafter.be/

FICO Questions Answered:

Fair, Isaac CEO Reveals 3 Key Ways to Improve Your Score
Posted Jan 11, 2011 03:59pm EST by Daniel Gross

Many people have questions about the credit scores generated by Fair, Isaac & Co. Today on Tech Ticker, Aaron Task and I figured we'd take our questions straight to the source: Mark Greene, chief executive of Fair, Isaac & Co., creator and proprietor of the FICO score.

"The FICO score is a measure of a consumer's financial health and creditworthiness," Greene says. It's simply a number, ranging from 300 to 850 -- the higher the better. The average FICO score in the U.S. is about 700, and pretty much every bank in the country uses a FICO score when making lending decisions. But while the scores are important, they're not the be all and end all.

"Scores are meant to be one of several things bankers use in doing what we call sound underwriting," Greene says. Lenders should also be taking into account borrowers' background references, their capacity to repay loans, and collateral.

FICO creates the score simply by feeding numbers into its formula: "It's based on pure, statistical evidence, with no judgment or evaluation or emotion." The main factors Fair, Isaac takes into consideration are:

• How much total indebtedness a consumer has

• How long they've had the debt. "Newer relationships are riskier than things you've been paying over a long period of time," Greene says.

• How much available credit is being used: "If you're close to the edge on your credit cards, that's a danger signal."

• The mix of an applicant's credit portfolio -- is it all credit cards (bad) or a mixture of credit cards, a mortgage, and a car loan (better)?

Greene outlines three key ways through which people can improve their scores. First, pay your bills on time. Second, don't get close to the edge: "Don't use more credit than you really need." And third, don't apply for new credit unless you absolutely have to.

It may sound obvious, but the easiest way to avoid a sharp downgrade in your FICO score is to stay current on your mortgage and stay solvent. "One thing people should know is that a foreclosed home or personal bankruptcy is the most severe harm that you can do to your credit score," Greene says. FICO scores can fall by as much as 150 points when borrowers walk away from mortgages or declare bankruptcy; it can take up to seven years to rehabilitate the rating.

Greene helps clear up what may be some misconceptions about the way credit scores are calculated. For example, is it true that every time you apply for a loan it hurts your score?

"It depends on the kind of product you're shopping for," says Greene. With car loans, for example, Fair, Isaac understands that people shop for rates. "If you apply for five different car loans within a couple of days, we understand that you're looking to buy one car at the best rate. And there's no adverse impact on your credit score."

On the other hand, when people apply for five different credit cards in the space of a week, they're usually seeking to open multiple accounts simultaneously. "In those situations we will take a few points off someone's FICO score because we're worried they're sending a signal that they need too much credit."

Is it also true that people who have little or no debt may find themselves with lower credit scores? That can be the case. "Warren Buffett used to say that he didn't have a particularly high credit score," says Greene.

Consumers can obtain their FICO score from the company at myFico.com. (Editor's note: Greene says the report is free in the accompanying video but you must register to receive your FICO score and a payment is required.)

Greene also points to a just-launched website, scoreinfo.org, that helps people understand how credit scores factor in this new era of financial regulation. As of January 2011, you have the right to receive your score any time a lender makes certain kinds of decisions -- e.g., if you're denied credit or given credit on less than the most favorable terms a lender offers.

In the U.S. economy today, people may frequently find that a credit score is being used by companies to make decisions that have nothing to do with credit. Credit scores have become part of the application process for jobs, car insurance, and health insurance. Greene notes that the credit score can be useful in non-lending contexts: "People who are good with their finances frequently turn out to be good drivers." But he reiterates that they were designed for a purely financial use.

Daniel Gross is economics editor and columnist at Yahoo! Finance.

Subscribe to Daniel Gross's RSS feed here.
Follow him on http://twitter.com/grossdm.
Email him at grossdaniel11@yahoo.com .

THE FULL ORIGINAL ARTICLE CAN BE FOUND HERE

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Black Improvement Economics is a service of
The Imani Foundation http://www.imanifoundation.com/
These posts provide information that may aid financial improvement. The information on this site is provided as opinion and should not be construed as professional legal advice, nor professional financial advice, nor professional tax advice. The end reader is advised to seek professional assitance to address one's particular situation. The posts on this site may be third party information and may not be copyrightwritten by the poster of the information.

Broke, Black & Christian/Conscious

In my "Financial FREEdom" business, where I help my clients to become financially free & to move towards wealth I've come across numerous clients who have described themselves as being "Christian" or "Conscious" and such and all have had one thing in common. They were broke. I often refer them to a number of books as well as providing my services to them. A colleague shared this book with me recently and now I'm sharing it with you. Meet Michelle Singletary, author of 'Power To Prosper' (check her photo below.......Eye candy....):

If you are having some money problems, consider giving me a call (757-248-3820) for a 'check-up' and or consider doing the 'fast that she prescribes in her new book 'Power To Prosper: 21 Days To Financial Freedom' (In Hampton Roads Virginia the book may be purchased at Positive Vibes Bookstore in Virginia Beach (757-523-1399) or you may also order it from Positive Vibes and they will ship it directly to you ! Be prosperous and remain informed and conscious !

Brother Seko VArner - Financial FREEdom !
http://www.happilyeverafter.be/sekovarner.html

This book is well suited for those of us who consider ourselves/themselves to be Christian as the advice and guidance is seasoned with Biblical quotes and references. Here is what The Washington Post said about the book:
"Michelle Singletary teaches you practical ways to financial freedom by putting you on a 21-day financial fast, where you are prohibited from using credit cards and cannot buy anything unless it is a basic need for survival."

Author Guides You To Financial Freedom: MyFoxDC.com

Singletary writes the nationally syndicated personal finance column, "The Color of Money," which appears in The Post on Thursday and Sunday. Her award-winning column is also carried in more than 120 newspapers. In her spare time, Singletary is the director of a ministry she founded at her church, in which women and men volunteer to mentor others who are having financial challenges.
For more info' on Michelle Singletary visit:
http://www.michellesingletary.com/


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Black Improvement Economics is a service of The Imani Foundation http://www.imanifoundation.com/
These posts provide information that may aid financial improvement. The information on this site is provided as opinion and should not be construed as professional legal advice, nor professional financial advice, nor professional tax advice. The end reader is advised to seek professional assitance to address one's particular situation. The posts on this site may be third party information and may not be copyrightwritten by the poster of the information.

When You Shouldn't Use a Credit Card

15 Times When You Shouldn't Use Your Credit Card
by Marcia Frellick
Thursday, October 7, 2010

There are plenty of reasons to use a credit card — convenience, accountability and safety among them — but when is it better just to step away from the swiper?

There are many out there who would say that there's never a good time to use a credit card, and that cash, debit or anything else would be a better choice. While forgoing credit for good may or may not be realistic, there are some times when it is best to just leave the card in your wallet or purse. Here are some times when you should never use your card:

1. After midnight. Paraphrasing Eric Clapton, after midnight tends to be when people let it all hang out — even financially. "After midnight is the time you get into more trouble rather than making a sound financial decision. If you're at a club or casino, just go home," says Michael McAuliffe, president of Family Credit Management in Chicago. Put the card away and take another look in the morning.

2. When you're near your credit limit. "You don't want to be even within a couple hundred of your limit or your credit score will go down," says Mary Ellen Nicol, counselor with CredAbility in Atlanta. If you're getting too close to your credit limit, ask your credit card company to raise your limit, switch to a card with a lower balance or find another way to pay.

3. When considering an extended warranty at the car dealership. You can probably get a better deal if you roll the warranty cost into the car loan. Even though you may have a slightly higher monthly car payment that way, wrapping it into a secured loan likely still beats paying high interest for it on your credit card, says David Johnson, bankruptcy counseling director at ClearPoint Credit Counseling Solutions in Los Angeles.

5. If you're paying off one card with another, and it's a habit: "If you're swapping your debt every six months, that's going to show up on your credit report," Bowne says. If it's a one-time thing, consider whether the offer is too good to be true. "Transfer fees have gone up at least a percent on average in the last year," Bowne says. "We're talking about 4 percent of your debt you're going to pay up front just to transfer the debt." Be clear on the rate you will pay after the promotional rate ends. It could be higher than the rate you're trying to escape from, she warns.

6. At a flea market: "It used to be that you always had to have a wad of cash. Now, through the magic of technology, some guy selling rickety, old wagon wheels can take your credit card," Williams says. This is the kind of purchase where convenience doesn't outweigh the risk, she says. Bring the cash.

7. If you think you're building your credit history: David Beddoe, counselor with American Financial Solutions in Seattle, says he hears that a lot. While your credit score goes up if you pay off the purchases you make, putting items on a credit card without paying them off will have the opposite effect on your score, he says.

8. If you can't pay for half of the purchase with cash on hand: Say you need new tires, Nicol says. If you don't have half the money right now to pay for the repairs, wait until you do. Then charge the purchase, pay off half right away and make a plan to pay the rest in one to two months. In the case of tires, you probably knew you needed them months ago and that would have been the time to plan ahead for the expense, she says. Check out public transportation or reduce your driving and save until you can afford at least half.

9. When it's all about the rewards points: Rewards points "should be nowhere in the equation for making that decision or not making it," says Michael McAuliffe, president of Family Credit Management in Chicago. "Base your decision on the merits of the purchase." Otherwise, you will tend to overspend. If you want to finance a vacation, skip the coffee or dessert or find cheaper parking and put away $5 a day for a year, he says.

10. When you think prices may drop: "For many things in our society, we're starting to see deflation. If you think it's going to cost less in three months, why start paying interest on it today?" McAuliffe says.

11. To buy something from a website with an obscure foreign extension: Don't charge online if you don't know who you are dealing with, says Catherine Williams, vice president of financial literacy for Money Management International. "While you always have protection under the Fair Credit Billing Act, the damage that can be done during that 30 days (until you see it on your bill) is just crazy." Study the website -- watch for suspicious wording — to make sure it is legitimate.

12. If you don't have a plan for paying it off: "We always recommend paying a purchase off in no more than three months. Without a game plan, you're playing credit card roulette. That's when people get into trouble," says Kathy Virgallito, a regional director for Apprisen Financial advocates.

13. If you're charging things that you used to pay cash for: That's a red flag that you're getting overextended, Virgallito says. You need to review your credit card statements and identify where the budget issues are. If you're suddenly having more car repairs or travel expenses to visit a sick relative, you may need to create a specific savings account for those things rather than relying on credit, she says.

14. When you feel that you'll save money by purchasing something you want rather than need. Beddoe gives the example of someone saying, "If I buy this 60-inch TV right now, I can save $200 on it." If you never planned to get that TV in the first place, it's hardly a savings, says Beddoe.

15. When the temptation for a big impulse buy strikes: "We instituted the 24-hour rule at our house," Williams says. "Anything over a certain dollar amount that isn't food, we have to wait 24 hours to buy. Had we not observed that ...I would have a fire engine red wicker chair. It would have been so cute on the Fourth of July for about 20 minutes."

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Black Improvement Economics is a service of The Imani Foundation http://www.imanifoundation.com/
These posts provide information that may aid financial improvement. The information on this site is provided as opinion and should not be construed as professional legal advice, nor professional financial advice, nor professional tax advice. The end reader is advised to seek professional assitance to address one's particular situation. The posts on this site may be third party information and may not be copyrightwritten by the poster of the information.

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Learn how to make, invest, and increase your wealth - Call Seko 757-248-3820