Smart Money Tips

Wise Budgeting
Always pay yourself first, set up an automatic transfer of your salary into an investment and as the saying goes; out of sight out of mind definitely applies here
For those "wants" in life, wait three days before buying and if you still have that desire, find a way to purchase it. The slight delay will eliminate the biggest drain on your monthly savings; impulse spending

Money Drains
A) Subscriptions; cancel any magazines or newspaper memberships that you have not used in the last 30 days. On-line is generally free or your local library is another option
B) Bank Costs; check your statement to see if any maintenance or transaction fees are being charged, if so switch to a no-charge digital bank
C) Insurance Quotes; like anything, shop around for the best rates 
D) Extended Auto Warranties; generally not worth the money, as it does not cover "bumper to bumper" as you read the fine print and all its exclusions
E) Store Coupons; first not allowed for fresh food, then sometimes the name brand can be on sale (so ALWAYS compare prices) and cheaper, even after you combine the generic store product
with their voucher
F) Medicines; brand names have to recover their costs for research and development which is fair, but after several years that law on the patent is removed. So look for the Generic Drugs at a large
saving for yourself
G) Premium Gasoline; it does not improve fuel economy, boost power or clean your engine. Check your manual which grade is required for your vehicle and stop wasting money
H) Precut Fruit & Veggies; add two to four times the cost of the whole produce, then you ask yourself am i this lazy 😂
I) Credit Cards; until you can pay it down, transfer the balance onto a lower interest rate piece of plastic and saving you lots of coin
J) Streaming Services; paying for multiple overlapping video, music or gaming platforms
 is not smart
K) Convenience Money Pit; having too many food delivery apps and rideshares, it just drains
your account
L) Internet & Cellphones; staying on your plan without shopping around, come on
your better than this

 

Protect your Parents from Senior Scams

Fraud is the top crime against older adults, resulting in millions of dollars of financial losses each year. The scammers target the seniors with their accumulated wealth, great credit ratings and the rapidly changing digital technologies that they

lack the knowledge of. 

So its up to us to protect and educate the ones that have done so much for us previously

Common Tactics

A) Grandparent Emergency; they pretend to be a loved one who is in an urgent crisis (car accident, in jail or stuck in a foreign country) as they beg for money. Now with AI tools, they can clone the actual voice to make it sound realistic

B) Impersonations; from maybe the government or your bank, using aggressive fear language that if you do not forward personal information or funds you could face heavy penalties or arrest

C) Tech Support; a sudden popup appears to say your computer or phone has been infected with a virus, with a phone number to "pay" for a repair

D) Romance; the con is to befriend lonely or isolated seniors, then over time after building an emotional bond start asking for money because of  medical emergencies, travel issues or investment opportunities

Protect Yourself

A) If you get a call from the government, bank or tech company, hang up and then call back directly with the number you have on file for any of these organizations to confirm if legit

B) Set up a "family password" with everyone within your circle to be used, if there is 

a real emergency

C) For all your physical documents like a Passport or Birth Certificates, have them stored securely at home and for all your the old credit card statements plus medical bills please shred them 

D) If you did share financial information, call your bank fraud department immediately using the number on the back of your card to freeze your accounts and money

E) File a report with your local police department if money was exchanged or if you feel physically threatened

Fashion Savings

Stylish

We all want to look good at the work place or in any public setting and with that comes wearing the latest trends, but what is mode is such a fleeting word.

 It starts on a one year cycle with the fashion runways, maybe a music video, onto the magazines, internet or television and finally into the market place 

                                                         Astute Shopping  

For us the savvy consumers; the best way to maximize our hard earned dollars is to have the classic wardrobe that would give you many outfit combinations. First learn what shape, colors and cuts flatter your body and its figure as aesthetically we are all different. Then before buying any new item, think on how you can style it with other things in your closet as mentioned, then perhaps rediscover forgotten pieces at the back of your drawers before purchasing something similar

                                                         Pairings

 Jeans and T-shirts on casual day and for business the ladies a black skirt, white blouse, for the men the usual black dress pants plus a blazer. So buy high quality foundation pieces, which reduces your retail waste and then you avoid the "emergency" shopping sprees

                                                      Embellishments

 Then we accessorize to our individual style to complete our fashion statement and at a fraction of the cost, here are some basics rules to follow; 

 A) spend good money on classic items that never go out of vogue, like diamond studs or a watch for the guys  

B) check out the clearance areas or thrift stores for great deals, perhaps for some neck ties or tops

C) textured tights gives a visual intrigue to the standard dresses and skirts

D) do not over accessorize, as less is better to highlight yourself 

E) learn colors with what matches each other and never all one shade 

F) footwear dictates the tone of your entire look, so be smart with your choices

G) use a leather bag or tote in a neutral shade to anchor that everyday style 

H) a sleek belt defines the waist for either a mans trousers or a dress of a lady

                                                 Wardrobe & Maintenance 

A) Low Cost Adornments; use a neutral outfit with (budget friendly) statement pieces like a silk or satin scarves, brooch jewelry and perhaps try layering pieces at varying lengths, instead of buying something new

B) Kits; sew on some fabric patches, iron-on decals or customs buttons to upgrade that item into an unique fashion piece

C) Garment Care; using a fabric-shaver to remove pilling from older sweaters and coats, making them instantly looking brand new

D) Washing; using specialized detergents plus cold water to prevent fading and stretching, which will extend its lifespan 

On-Line Security

Cyber Protection

Most of the world we live in today involves on-line commerce, bank transactions or logging into some kind of secure site, so lets be smart about it and do all we can to protect ourselves from the hackers and scammers by followings a few simples rules; 

A) Log into your accounts everyday to check and make sure of no unauthorized transactions

B) Use different sign-in credentials for all your financial accounts 

C) Increase the security of your passwords by combining upper and lower case letters, numbers or keyboard symbols ( #,@, *, ^, +)   

D) Never allow e-commerce sites to store your credit card info and if buying something, just

 input each time  

E) You should change your banking access-codes approx. every 6 months  

F) Enable your multi-factor authentication on every account that supports it

G) Use virtual payment options to protect your credit card or use burner cards for those site-specific

H) Encrypt your internet connection  through a trusted VPN (virtual private network)

I) Disable your unused wireless features like Bluetooth and toggle it off when your not actively using it

J) Spot the phishing triggers like the unsolicited texts, emails of direct messages that demand urgent action, contain grammar mistakes or require you to click a link to resolve an "account issue" 

                                                       Safeguards

  So as you see it isn't a lot to do to assure ourselves some added security, as unfortunately with the times we live in today; the cheaters are always ahead of the testers

Some Red Flags During Retirement

                                                     Financial Freedom

Personally i know i will not retire as if you like what you do; it is not work.😄 We all have heard the stories of people finally getting to that age and now time to do that "bucket list", well i have always been a believer to do all those passions NOW while your physically able and not later. But we are all different which keeps our world interesting

                                                 Warning Signs

   Not to be a naysayer, but here are a few things to watch out for that might derail all those dreams for what should be your "Golden Years" 

 A) You might have adult children come back to the nest to save money (even ask for funds to pay down their out of control bills) or maybe you have elderly parents that will need care; all which puts a strain on your finances. 

 B) Some retirees lose their health insurance or prescription drug plans (from their work) which then comes out of your pocket.

 C) Remember life does get in the way, so do not forget that things still need to be repaired from your automobile to the furnace, which all cost big dollars. Also perhaps a modifying of the house for a walk in shower, ramps or better lighting

 D) Maybe you have grown apart and will divorce, which without saying is a big strain on the pocketbook.

 E) With all your extra time it will be easy for you to spend more on expensive hobbies or entertainment, so plan for that.

F) Long Term Care if you or partner needs assisted living or maybe a nursing home

G) Maintenance that you used to do yourself like the roofing, lawn care, snow removal or a deep cleaning now needs to be outsourced at a cost

H) Property Taxes and Utilities continue to rise with inflation

                                                Ways to Mitigate

A) Downsize early and move into a smaller, more energy efficient home or a condo which will lower all your bills plus the maintenance headaches

B) Review your insurance and its supplemental health policies to ensure that you are not overpaying for prescriptions or the other premiums listed

C) Think ahead of your spending habits when you first retire, as the money going out will be high  because of you being active, dipping in the middle timespan as you slow down and rising again due to medical costs as you round third base heading for home plate

To Start Your Own Business

So you want to venture down that road of self employment?  Well I've been on that highway my entire life and for me there is nothing better than controlling your own destiny  Here are a few tips that maybe you can use to save some time and also get through those growing pains.

 A) Start with a good business plan, make sure its feasible as most entrepreneurs have the mindset and great ideas but maybe not such a savvy business mind, remember passion doesn't pay the bills 

 B) Incorporate your business, it might seem like an added expense but well worth it as it will protect your personal assets, lower your tax rate, allow you to invest within your own company, pay yourself etc. 

C)  Have a good accountant as this is paramount in the business world. They are experts with the tax codes and corporate finances, certainly someone to have on "your" team to save you money. 

 D) Payroll; Set it up with your local bank to do it for you, as they handle all the deductions to the various government agencies. Also get them to do direct deposit for your employees, as the cost is minimal compared to the time saved.  

E) Be prepared to put in at least 5yrs of long days to get the business up and running, also you'll find that your staff will be your biggest headache; everything from poor work habits, not showing up for their shift, theft and so on

                                            My Solution

 Make some of your employees owners, as then they has a vested interest in the business to make it grow. So what you do is through your accountant get a value of your company, so for example we shall say XYZ Ltd. is worth $100,000 and your selling to three of your staff 10% each, so they individually need to come up with $10,000 to be part owner of the company. The best way is to take it out of their pay over 5yrs, so believe me they will watch the shop for you 😃 and you the owner never give up control because you still have over 51% + stake. After you do not have to be there all the time so you can concentrate on other things  The payoff for them is they become owners without any money down and in 5years the value has gone up for all the partners; so a win/win all around

                                      The Not So Fun Part

Self-Employment does offer freedom, but it also brings significant financial risk, administrative headaches and personal stress

A) Income Instability; your revenues fluctuate monthly, as i used to go weeks without any pay

B) No Paid Holidays; yep, not like your friends who are off on a Spring Break Vacation

C) Zero Employer Benefits; you are on an "island" when it comes to medical or dental plans, so need to pay this directly by yourself

D) Retirement; you lose any access to corporate matching programs that would of kicked in if you worked for another company

E) Complex Tax Filings; be diligent on tracking every expense as you can get audited at any time

F) Challenging Financing; banks want years of tax documentation to approve personal mortgages or vehicle loans and its not easy, as i speak from person experience 

G) Unpaid Administrative Labor; hours spent on invoicing, marketing and client wooing, all for zero pay

H) Management Stress; chasing late payments and being the HR Department dealing with difficult staff personalities that all falls onto the owner. You ask any business person and he/she will always say its the employees that is the biggest pain to deal with

                                    Not So Glamorous & Personal Rant

But its a lifestyle i would never change and now onto my gripe The word entrepreneur in my opinion gets "over used" on many business profiles, as they just throw onto their resume with thought or ever having been an owner

 But until you are willing to risk it all on a market opportunity by launching a new venture, please erase that off your social post as its a disservice to the rest of us who Toil in Obscurity

To be a Landlord

To be a landlord and for sure there are advantages; writing off the interest on the mortgage, insurance payments, repairs etc while your tenant pays down the cost of the house as (fingers crossed) the value goes up. This is what I've learned having a few home rentals on the go and you can decide if its for you or not. 

 A) Location (like your principle residence) is key, as you want the price of your rental to go up so make sure the area is desirable, also if you can afford it look for a duplex or triplex so if one renter leaves you still have income coming in. 

 B) Borrow as much as possible for the building, follow the Golden Rule (get wealthy by using someone else's money) so you then get the tax benefit of writing off the higher mortgage interest to offset the rent, as that's considered an income. Also this way your keeping

your own money to pay down your own cost of living and putting the extra into other investments. Most banks will ask for 15-20% down payment because they deem it a business, so what i did was lived in

the house for awhile which required a

lower minimum amount as it was considered my principle residence, then moved out and started being a landlord on that particular building 

C) Try to be handy with repairs or have friends who are, as paying a tradesmen for all your issues will make you not want to be in the business. Or i always looked for a tenant who was of that talent and i would reduce the rent for them which was a great situation for both of us, as they took pride in their work and they got paid for it. Then you had no worries with all the little things that would arise and trust me, everything does gets beat up a lot quicker than your own home. On that thought, at first i had to keep telling myself not to be in "love" with the property, as it was an investment and don't be disappointed if your folks didn't keep it just so. For example i went with commercial carpet or laminate hardwood floors, stuff that is durable but it wouldn't be what i would use in my own residence  

 D)  Look for smaller lots as its less to take care off and a deterrent for those big backyard bashes 

 

E) Be diligent in collecting the rent and trust me you will hear every story you could ever imagine why they are not able to make the deadline  

 F) On that note, if you find good tenants do everything possible to keep them by maybe reducing the rent, upgrade the washer/dryer, buy them a vacuum cleaner etc, as all landlords have horror stories, so well worth doing the little things to keep your sanity

  G) Finally my experience with management companies that collect rent/screen applicants hasn't been good, they charge 50% first months rent  then usually 10% for each month after. Some issues i had is they would never go out to check the property as they had the tenant mailed in the post dates, but this is what you want as a landlord is those 'eyes' to protect your investment by going to your building for a physical walkabout. Also when vetting out references they would call the names on the applications, as it turned out most times it was relatives who gave glowing reviews only to find out to my chagrin it was not so good, plus this process cost you hundreds of extra dollars  

                                                  My Conclusion

So there is my list of the dos and dont's and i have known some folks that have done very well in the landlord game but i had my taste of it, personally i rather have a piece of paper (stock/mutual fund) that doesn't call me on a weekend night saying the toilet is plugged or Aunt Mabel needs a kidney transplant (true story 😏) and thus the rent money is needed to be by her bedside

                                       Other Financial Disadvantages

A) Maintenance; landlords are responsible for big ticket items like a new roof or HVAC replacements

B) Vacancies; when the tenant moves out the mortgage and property tax is still due, plus turnover cleaning, minor renovations (hopefully) and marketing

C) High Asset; if needing emergency cash, you cannot liquidate a house as quickly as selling off stocks or bonds

D) Delinquent Tenants; even with a careful background checks your "people" can cause severe property damage, leave pest control issues and be owing months of past rent. I lived through all of the above, no fun as its hard to believe humans can be this way