Money on My Mind
The Next Generation: Share Financial Wisdom with Your Kids
Is it Time for a Credit Freeze?
Who’s looking at your credit report? A LOT OF FOLKS!
Credit reports and scores are widely used not just by creditors, but by employers, landlords, insurance companies and even cell phone companies. They can affect employment, housing and the amount you pay for goods, services and loans. It is very important to keep a close eye on these reports and protect them.
One way that is now a lot easier to use to protect your credit is through a applying a Credit Freeze to your credit reports.
Credit freezes, also known as security freezes, restrict access to your credit file even by valid creditors until you “Unfreeze” or “Thaw” your report. In 2018, Federal Law guarantees that you can freeze and unfreeze your credit file for free. You can also put freezes in place for minors. If you’re ready to put a freeze in place, simply contact each of the credit reporting bureaus, and follow their process. One more tip brought to you by the Consumer Financial Protection Bureau (CFPB), don’t confuse freezes with locks. They work in a similar way, but freezes are free, but locks may have monthly fees.
Here’s more info from the CFPB: https://www.consumerfinance.gov/about-us/blog/free-credit-freezes-are-here/
In closing, be aware that Credit Freezes are not fool-proof protections, so it is still important to check your Credit Reports routinely.
Marjorie McLean, MBA, AFC®
P.S. Here's some more info on how to check your credit report to make sure all the info is accurate. Note: Due to COVID-19, these credit reports are now available WEEKLY (not just annually) through December of 2023. See this blog release from the Federal Trade Commission for more info. Free weekly credit reports during COVID extended through December 2023 | Consumer Advice (ftc.gov)
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Budget Annually. New Year, New Insights.
You know the view you get when flying in an airplane? Traveling high above the day to day, you can see much farther and gain a new perspective. You see connections-roads, buildings, neighborhoods, landscapes come together—forming patterns not seen from the ground. That’s why you need an Annual Budget.
Monthly budgets are important. Most of us start budgeting with a monthly budget. It shows what income will come in during the month ahead and then we plan what spending, saving or investing we’ll do that month with that income. However, the monthly budget only looks a few weeks ahead. It can be short-sighted. We see the trees, but not the forest.
The Annual Budget is where we see the bigger picture of the ebb and flow of our income & expenses. It will help you understand and manage…
-Income changes that come with seasonal, commission-based or pandemic impacted work.
-Expenses that vary over months or seasons, such as the inevitable summer vacations, back to school shopping or saving up for the Christmas to come and winter’s high heating bills. These are expenses we often need to save in advance for—so we need to see the expense coming up in the future and use the months before to prepare.
-Expenses that don’t happen on a monthly basis: such as quarterly, semi-annual or annual bills and obligations.
-The longer term impact of financial decisions: such as the financial changes that come with buying a home vs. renting, adding a new car payment or reducing work hours to stay home with a new child or what more we could achieve financially if we earned a promotion at work?
You can build an annual budget anytime of year, so there's no need to wait. If you would like assistance in expanding your financial point of view through creating an Annual Budget, contact me for a free consultation. I can help.
Socially Distance from Scammers
WARNING! DANGER! BE CAREFUL! There’s so much to be concerned about in these uncertain days of inflation and COVID–and unfortunately financial scammers are using this time to take advantage of others.
Today’s scams are preying on financial concerns and opportunities. Three ways to learn more and protect yourself.
2) This link from the Federal Trade Commission details 4 Signs that it's a Scam to help you avoid scams and fraud. How To Avoid a Scam | Consumer Advice (ftc.gov)
3) One tip I want to emphasize is: TAKE YOUR TIME & SEEK TRUSTED ADVICE: Scammers are going to try to pressure you to take immediate action. They’re going to threaten dire consequences if you don’t. They are professionals and very good at making people feel desperate and concerned. Take some time and before you take any action or reveal and personal information, seek the advice of a trusted friend or family member to help you think through the situation.
Just like times are changing scammers change their scams to fit the times, so be knowledgeable and careful, especially in these times.
Marjorie McLean, MBA, AFC®
Buckle Up! Your Emergency Fund is Your Financial Seatbelt.
A Tale of Two Carrots
Note: This resource was written pre-pandemic. Now that grocery costs are on the rise, this way to save is even more valuable.
Have you taken a look at how much you spend on food lately? Many people who create a budget and look at how much they’re spending each month are surprised by their food bill. In financial counseling, it’s often the first area that someone tags as wanting to reduce.
The Tale of Two carrots is a story of cost vs. convenience. You can use it to see if your food spending is overburdened by convenience items.
If you’re like me, you probably enjoy those super cute, tiny, baby carrots. They are so perfectly tiny that there is no need to break out a knife to chop them into bite sized pieces. However, that perfectly tiny cuteness and convenience comes at a cost. At my grocery store, I can buy a 16 oz bag of giant carrots (you know the kind with the leafy green tops) for $1.00 OR I can by a 12 oz perfectly tiny carrot bag for $2.50. Reducing those to cost per ounce, I can pay 6 cents for the big carrots, or the perfectly tiny for 21 cents an ounce. I pay 350% more for convenience.
Just a small part of a bigger story. As you likely know, this isn’t just a tale of two carrots. It’s also a tale of block cheese vs pre-shredded cheese. In exchange for the time savers of not shredding it ourselves and having one less dish to wash, we pay 165% more per ounce. Same for those fancy pre-made zucchini zoodles, packaged soups, to go salad, pre-cooked chicken breast, pre-packed kids lunches, etc. In all these areas, we are trading off an increased cost for increased convenience.
Looking to trim those grocery store expenses, start here. What convenience items are you buying? How often? How much are they costing you each month? What are some alternatives?
Don’t forget the benefits: If you decide to do more prep work yourself to save some money, don’t forget there are some side benefits. You’ll work those arm muscles as you shred those blocks of Cheddar or Monterey Jack and slice, dice or julienne those large carrots into perfectly tiny pieces.
Marjorie McLean, MBA, AFC®