Consider The Mileage

This might go without saying – of course the mileage will affect the car’s value. But in some cases, the mileage can be just a number. For instance, you’ll want to consider how often you intend to drive this car. Lower mileage is always better, but 100K might be more feasible than you’d think if you don’t have a long daily commute.

Next, look into the make and model of the vehicle. Some cars tend to last longer than others, with multiple variables ranging from its engine, to computer systems and many other factors. You’ll never be able to fully anticipate all potential risks, but researching the most common issues for said make and model might narrow down some of your risks.

Review Its Fuel Economy

As with the mileage, the fuel economy will be vastly more important, depending on how often you intend to drive your car. While it might sound extreme at first, the price you’re paying for fuel on a monthly basis can really add up, especially if the car lasts you for 3-5 years. Just think about an extra $20 per month in expenses for 3 years – that’s a whopping $720! Consider whether you’ll be driving more on highways or residential areas, too as this is significant for certain types of cars.

Compare The Engine Type With Your Lifestyle

Naturally, the stronger your engine, the more your car will be able to handle. But as expected, you’ll be paying a premium for better, stronger engines. So just as with the other factors, you’ll have to weigh the cost of the investment vs what you’ll really need. We’re sure you know this, but just in case… if you’re planning on towing anything, don’t skimp on the engine.

Amenities

If you think this is entirely trivial because you just want something that gets you from point a to point b, you can skip this. But having even just a few bells and whistles can really change the experience you have with your car, especially if you drive often.Think to yourself “is this something I will enjoy (or at least appreciate) for up to a few years”?

Review The Car’s History

Even the best looking cars aren’t what they appear to be. Especially if the price seems ‘too good to be true’. So before potentially making a huge money-burning mistake, take a few days and spend $39.99 on a single Carfax report.

Carfax will outline major points in the vehicle’s history, like:

• past accidents
• major mechanical work, like engine and transmission replacements
• amount of past owners
• maintenance dates and records

Consider The Style

Again, if you’re just a “point a to point b” kind of person, this shouldn’t concern you much. But for the rest of us, the kind of car we drive kind of defines us. It’s not that we won’t drive a car that’s not to our liking, but more than we’d rather not if we can spare the extra few dollars. So really think to yourself – is this a car I’ll be somewhat happy and proud to drive for the next 3-5 years?

Weigh Its Safety Features

Safety is important and while some of the highest levels of safety features found on vehicles like Volvo, you might be surprised what more economically-priced cars have to offer beyond seat belts and airbags.

Check The Car’s Insides

Did the past owner(s) upkeep the car’s interior? This is really important, especially if you’re going to be driving this car for a while. Factors like:

• maintaining leather seats
• maintaining leather seats
• maintaining leather seats
• the reception on the radio
• are all things that, at the very least impact the value and potential joy you can get out of your used car

Finally: Weigh The Total Pros and Cons

With all of these factors considered, simply weigh the potential risks and rewards. Keep in mind there’s never a guarantee when buying a used car. It keeps some people up at night, while others find it to be part of the fun!

The post 9 Things to Consider When Buying a Used Car appeared first on Koshka.

When it comes to protecting your investment, homeowners insurance should be a number one on your to-do list. For most mortgage companies it is a requirement to have an adequate policy covering the home. Having the right homeowners’ insurance can mean all the difference when it comes to fixing or possibly even replacing your home in the case of a fire or other disasters. Damage to your home or its contents can cause great emotional and financial stress. Protecting it should be a top priority.

A standard policy covers the structure of the home as well as the contents of the home from damage as a result of fire, storms, flood, theft, and even Earthquakes. Dwelling protection covers the cost of repairing or rebuilding your dwelling if it is damaged or destroyed. Personal property protection covers the contents of your home from furniture, jewelry, clothes, and other items found inside the home.

The type of reimbursement you get depends on different factors, replacement costs, or actual cash value. As the name states, replacement cost is the amount of money needed to replace the property with a comparable or new product. Actual cash value is another option but not generally recommended. It will consider the depreciation of the item and or the value of the property and not the cost to actually replace the item.

The type of reimbursement you get depends on different factors, replacement costs, or actual cash value. As the name states, replacement cost is the amount of money needed to replace the property with a comparable or new product. Actual cash value is another option but not generally recommended. It will consider the depreciation of the item and or the value of the property and not the cost to actually replace the item.

The type of reimbursement you get depends on different factors, replacement costs, or actual cash value. As the name states, replacement cost is the amount of money needed to replace the property with a comparable or new product. Actual cash value is another option but not generally recommended. It will consider the depreciation of the item and or the value of the property and not the cost to actually replace the item.

The type of reimbursement you get depends on different factors, replacement costs, or actual cash value. As the name states, replacement cost is the amount of money needed to replace the property with a comparable or new product. Actual cash value is another option but not generally recommended. It will consider the depreciation of the item and or the value of the property and not the cost to actually replace the item.

Liability coverage is a type of coverage offered by policies that shouldn’t be overlooked. It protects you if someone is injured on your property or you are found at fault for their property damage. It also covers you in incidents away from the home not related to automobile crashes. It can also cover any legal expenses related to claims filed against you.

During the spring/summer months it is recommended to check your house for any drainage issues and fix those problems. Clean out gutters of all dirt and debris. Inspect shrubs and trees for any plants that may be dead or causing issues to the structure of the house or power lines. Have your roof inspected to make sure it is free of leaks and damage. Roof replacement is often a necessary task in older homes to prevent leaks. Be sure to have your HVAC units serviced and repaired to save on heating and cooling costs. Before using your fireplace each year, get your chimney cleaned by a professional chimney sweep.

Guess what, it is recommended every month to use a degreaser to clean it off to remove grime and grease that builds up. As a safety precaution, you should check your fire extinguishers to make sure they are in working order.

Now that you have your monthly checklist complete, quarterly you should be testing your smoke and carbon monoxide detectors to make sure they are in working order. Replace their batteries to make sure they remain in working order. This simple task can save lives. Get your whole family involved and give your house a deep clean by moving furniture and vacuuming and mopping under and behind it. Vacuum your refrigerator coils to improve your refrigerator’s performance. Inspect and clean all dryer and exhaust vents and remove excess lint. The lint that builds up in these vents can also be a fire hazard.

During the spring/summer months it is recommended to check your house for any drainage issues and fix those problems. Clean out gutters of all dirt and debris. Inspect shrubs and trees for any plants that may be dead or causing issues to the structure of the house or power lines. Have your roof inspected to make sure it is free of leaks and damage. Roof replacement is often a necessary task in older homes to prevent leaks. Be sure to have your HVAC units serviced and repaired to save on heating and cooling costs. Before using your fireplace each year, get your chimney cleaned by a professional chimney sweep.

While cleaning regularly and maintaining the upkeep of your home can help protect your investment you can also protect the value by creating curb appeal that is inviting and easy to take care of. Repainting the exterior of your home is a task that can make the appearance of your home pop and help sustain or increase the value. Over time this can be necessary from the exposure to the elements. Interior painting can give your home a fresh new look for a relatively low investment.

The post How To Protect Your Most Valuable Asset – Your Home appeared first on Koshka.

Often during the initial years of a firm, its bills are generally paid by credit sometimes to the extent of a card’s limits. When the company needs a loan to grow, traditional lenders will look at the business’ assets vs debt load and the major shareholders’ credit scores to consider its creditworthiness. At this point, too much debt, and scant profit to offset it, coupled with a FICO that is lower than 700 are major red flags. For many small businesses, the very strategy they used to get them ahead, seems to be coming back to haunt them in the form of financing rejections. Fiscal responsibility begins with a higher FICO. The following is a sound strategy for getting your numbers up and your business moving towards fulfilling its business objectives:

Increase Your Credit Limit

The Debt-to-Limit ratio is one metric that lenders consider during the loan approval process. It is also used to determine your credit score. This is news to many business owners who use their personal credit cards for business expenses. Asking your credit card company for a limit extension may not bear fruit at first. However, watch your inbox for follow-up emails that offer the very relief you were seeking. Funny how things sometimes ‘work’ that way.

Timing Is Everything

To raise your credit score, it is a given that your business’ and personal credit card bills must be paid on time. Just not at the time you think…sign up to monitor your credit report through the top credit reporting agencies such as Experian. Next, learn when your bank reports your balance to that credit agency. In other words, your card’s monthly bill may be due on the 20th of the month, and you try to pay it in full. But your bank reports to the credit agency on the 15th. So to show a negative balance you’d have to pay your card in full several days before the 15th of the month. It’s that pesky Debt-to-Limit ratio rearing its head again. Credit bureaus reward cardholders with less than 10% credit debt. This is the fast way to a higher FICO and can add up to 30 points in a single month following this very simple procedure.

Is That Right?

Once you are familiar with monitoring your credit report, it is less scary and very informative. You may also uncover mistakes including out-dated information and remediated debt that still presented as an open loan. Take charge of your credit and be sure to fix any errors to further boost your score. All you have to do is contact the agency with documentation that the loan was satisfied, or that you are not THAT John Smith.

Does Your Business Need It?

It is something of a mantra to this writer, but usually, it is not what you earn, it is what you keep. Do not waste business profits through needless spending. Be scrupulous about the purchases you make from paper clips to office furniture. Always ask yourself, does the firm need this? Is there somewhere it can be found more cheaply such as the secondary market? As for big-ticket items such as office furnishings, if one’s firm works with the public, there are scores of options. Rather than digging deep for an impressive designer workspace, hire remote workers, and ‘rent’ office and/or conference space in a furnished facility to give that great first impression. Another trick is to have one room in your facility that is impressively decorated and teleconference with prospects. Separate your business wants from what your firm really needs to operate and you’ll pare down company expenses from the get-go.

Keep Satisfied Loans ON Your Credit Report

Once they’ve paid off their loan, most businesses rush to rout any old loans from their report. In fact, keeping fully-executed loans in place will increase your overall score as it demonstrates responsible credit handling.

Good to Know:

BTW: in most cases, checking your credit report will not affect your credit score. Consumers’ reviewing their own FICO are called a “soft pull” with little or no impact. When a bank or lender performs a credit inquiry, however, that’s a “hard-pull” which drops points off your score. When you apply for a loan is not the time that any potential borrower wants to see their FICO drop. So the workaround is to find out what your lender will need from your credit reporting agency and pull the paperwork yourself. Present this documentation at the time you apply for a business loan and you’re home free.

Follow these simple steps and not only will your credit score increase but with it, your chances and ability to access additional capital to attain your business goals.

The post Top 5 Tips to a Higher FICO appeared first on Koshka.

Long before crowdfunding, issuing investment shares in exchange for money took hold in Europe back in the 12th century. In fact, most voyages to the New World had been underwritten all or in part by investors hoping for a percentage of whatever spoils the explorers had on board upon their return- assuming that they indeed returned. Such pacts were arranged by the voyage. Over time this evolved into exploration enterprises that issued stock for dividends on all proceeds from every voyage undertaken. Factor in non-competition clauses and improved boat building and navigation and investors had little to lose and so much to gain. Eventually even governments became investors. The rise of the British Empire in the 18th and 19th centuries not only expanded British colonies way beyond the sceptred isles’ shores, but also made the monarchy very, very, wealthy.

The Rise of American Investing

After the Revolutionary War two stock exchanges opened in America- in Philadelphia and New York. The NYSE, headquartered at 11 Wall Street in Lower Manhattan, coupled with the nation’s growth through railroads, urban and westward expansion, national resources, and immigration soon became the most powerful financial institution in the world. The NYSE retained its power until 1971 when what is now called FINRA (Financial Industry Regulatory Authority) created a different type of stock exchange, Nasdaq (National Association of Securities Dealers). To begin, Nasdaq does not have a physical address nor brokers. It is a computer network that executes trades completely electronically. Nasdaq’s benefits include faster and more efficient trading, a reduced bid-ask-spread, and its existence forced the complacent NYSE to up its game to retain its crown.

This background history is helpful, but how can those seeking to make money with minimal risk proceed? When it is time to invest, first determine what monetary amount you are comfortable with. Next do some online research and determine the best strategy for your needs. You can consult an investor, but most professionals prefer to work with experienced investors who are willing to invest sizeable amounts of money. There are many online brokerages who will work with newbies, but do your homework and, as with any business transaction, sign with a reputable agency. What to invest in? Most opt for tradable assets including stocks and bonds, each with a known, but fluctuating monetary value. Since each asset can gain or lose value, the goal for investors is to build a portfolio of diversified holdings comprised of these securities. Stocks can be defined as shares, or equity, held in a publicly-traded business. By comparison, bonds are a fixed-income loan made to a company or even to a government. Details regarding how stocks and bonds are issued/sold and how they ‘work’ is an online search every reader should make and be clear about before investing.

Don’t Jump in the Deep End

A basic overview before taking the plunge is to know the recent history of the stock and bond markets. Go back 25 years and understand that the stock market not only fluctuates, but historically, it can also lose 50% or more of its value. Due diligence must be applied to every transaction. One cannot simply invest and walk away, returning when any money earned is required for another purpose and cash out. Bonds, as stated above, are a loan with interest. While a safer investment as risk is not as great, the gains are not either.

If all this information has only instilled greater caution and hesitation, perhaps speaking with a certified financial advisor is a solid next step. Successful investing requires knowledge, timing, having short and long term goals, along with a thorough understanding of the process as well as the ‘what ifs’. The safest investments are those that are made with full knowledge of all the risks involved. Arm yourself with information, seek professional guidance if needed, and watch your money like a hawk. Forget any stories you may have read about getting rich quick by investing in the latest technology or throwing too much of your hard earned at a high risk stock, unless you can afford to lose all. Knowing when to ‘fold ‘em’ does not just pertain to poker! Pay attention, proceed with caution, diversify, and watch your financial future grow!

The post Is Investing Still a Good Investment? appeared first on Koshka.

Historically, home ownership has been the most lucrative way to accrue a passive income or at least a sound investment. For decades, one could purchase a home, enjoy and maintain it, then sell it within a few years for a major profit. Due to the economic downturn of 2008, that well-travel route vanished over the last few years. Today many home sellers are finding that their home has a negative equity. That is it is worth less now than what they paid for it 15 years ago including any updates they may have made in the interim. Another hurdle to home ownership is money.

Take the example of Silicon Valley. Thirty-five years ago it did not exist. Slowly this region, that includes San Francisco and the surrounding area, attracted more high-tech and internet companies such as Microsoft and Google. Each business has their percentage of high-salaried workers, but these enterprises are kept humming by office staff who do not command six-figure salaries. Yet the need for programmers, software developers, and other professionals drove houses prices out of reach for the majority of workers.

This led to lengthy commutes for some office staffers, while others elected to live in RVs, constantly moving within the city limits to avoid being fined. San Francisco officials’ recent crackdown on where RVs could park overnight led to Google’s taking charge of the problem and offering a solution: provide affordable housing for their workers and encourage other tech and internet businesses to do the same.

While San Francisco enjoys a high standard of living, almost 30% of its citizens are working poor. That’s because even with a salary in excess of 6-figures, one cannot afford Bay-area housing costs. In fact, a recent study revealed that San Francisco has the third largest homeless population in the United States. Here’s the kicker: of these most are college-educated, skilled labor who are employed full-time. So while a lack of affordable housing is not exclusive to the West Coast, Google set about to find a solution. Here’s what this industry giant plans to do:

Build Housing Not Offices

Over the next decade, almost a billion dollars of Google-owned land, currently earmarked for office and commercial expansion, will be repurposed instead to provide residential housing. It is expected that this initiative will yield about 15,000 residences at all income levels. It is not clear, however, if this housing is exclusively for Google employees, or the general population. Next, another $250,000 million will be invested in developing some 5,000 affordable housing units. Again, for whose benefit has not been made apparent.

What Google is proposing to do is nothing new; as economic growth moved westward in the 19th century, industrialists in mining and coal operations in particular created entire towns with housing for their workers and their families. The workers lived rent-free but were paid in scrip that could be used only at Company-run stores thereby ensuring their corporate loyalty: they simply had nowhere else to go. Google’s present day attempts to alleviate the housing shortage in their region is honorable, as well as duplicatable.

Duplication is Google’s point. They are alleviating some of the housing crunch in the region and hopefully setting the precedent as well as providing an incentive for other industry giants to follow. This way, not only will housing be available to all, but also meaningful employment. Google has created a blueprint that can be followed elsewhere in the nation to remediate the nationwide housing shortage as well as to create and sustain relevant employment opportunities.

Across the board this concept is a win-win. When families find meaningful work and affordable housing, the demand for schools, household goods, shopping, dining, hospitals and medical practices, and entertainment venues, is created. The need for https://www.6pm.com/clothing, http://big5sportinggoods.com/, groceries, vitamin and nutrition shops, computers, TVs, cellphones, services such as dry cleaning and landscaping, fitness and gyms, swimming pools, movie theaters, cars, trucks and auto parts, gas stations, construction materials, etc. etc. increases also. In short, the economy improves overall. If Google’s concept works, then over the next couple decades the U.S. could experience an unprecedented yet sustainable economic boom. And it all started by recognizing a need to treat people right…

The post The Future of Affordable Housing appeared first on Koshka.

But first a little back story. To understand the value of blockchain technology one needs basic a knowledge about cryptocurrencies. We cannot see you, but already we know your eyes are glazing over. No worries, we’ll make it quick and painless. Remember the play money that you used as a kid? It worked the same as U.S. currency, but was not issued by the government. Cryptocurrencies are like that. They are issued by anyone and accepted by anyone who has an agreement with the issuer. These are backed by ‘real’ money, tangible items with a stated value such as jewelry or artwork, or services to be provided. If this seems strange, it shouldn’t be. After all you are paid a salary in exchange for your services, right?

Since crypto monies are virtual, and are not affiliated with any nation or governing body, there is a need to keep things honest, so their transactions are recorded in a virtual ledger. That ledger is a blockchain. Blockchain was created by web developers who saw a need to rein-in the Wild West Show that cryptocurrencies had created across the globe. Blockchain has provided a clearinghouse if you will, to ensure that, among other things, cryptocurrency is used responsibly. This means every virtual transaction is recorded so each leaves a trail that the IRS and other government can access and allocate. See? That didn’t hurt one bit! Or should we say, bitcoin?

As with all great technologies, it doesn’t take long for developers to find additional value for their code. Here are some of the many ways that blockchain is already impacting our lives along with speculation as to where it will pop up next.

• Payment processing: As an individual who is currently waiting for the email or text stating that my funds transfer from one financial institution to another has been completed (several days now), blockchain technology will provide a welcome change. It expedites the transfer of funds from one source to another. So while I wait for my primary bank to acknowledge another financial institution (while collecting interest and fees on my money in the meantime), blockchain would have validated and processed my request within seconds 24/7/365.
• Data Sharing: Analysts rejoice! Since blockchain’s purpose is information collection, primarily for regulatory agencies, there are already cryptocurrency agents experimenting with sharing and selling unused data. Since this data relates to a wide range of industries, this intel could be used to gain insight into consumer habits to improve service levels. etc.
• Regulation Compliance: Move over Cloud, here comes Blockchain. While the Cloud provides excellent backup, there is always the possibility that new security threats could breach this system. With its immunity to hackers and with no known infrastructure problems, blockchain provides an ideal data backup system.
• Regulation Compliance: Earlier in this article, cryptocurrency transactions were referred to as a Wild West Show. That is because before blockchain, these flew under the radar of federal regulators. Now all sales and transaction data is captured so that it is transparent to local, state, and Federal lawmakers as well as to the IRS.
• Vote Online: After every election there has been much ink spilled over possible voter fraud. Given its transparency, blockchain will enable citizens to vote online, but allow regulators to see immediately if any captured network data is altered in any way.
• Medical Records: Hospitals and medical facilities have trended towards software over paper records-keeping solutions for almost two decades. Blockchain storage would allow the patient to control who has access to their data and is more HIPAA-compliant than other sources.
• Virtual IDs: Microsoft is working on a way that individuals can take control of our digital identities. For those of us still getting used to opening our cell phones with our index fingers, this is a brave new, and very exciting possibility! Imagine being able to establish credit immediately, to travel anywhere without a passport and just access your identity online from your phone! With great opportunity also comes potential great risk, so we understand this concept is far from complete. Stay tuned!

Buying a home, a business, buying or leasing a car…: If you have ever bought or sold a home you know that there is a great deal of paperwork involved. With blockchain, however, whenever a deed, or title is to be transferred, this part of the process can be viewed and transaction online, thereby speeding up the process and saving a forest of trees!

To gauge the potential of this new platform, just imagine any agreement, sales or financial transaction, or legal action where paper exchanges hands. Now take it out of the equation and insert blockchain as the new variable. Exciting prospect, right? A technology that functions as a storehouse and a facilitator offers huge potential to individuals as well as for commerce. As a new technology, blockchain’s many positives include its value as a digital, decentralized platform that logs transactions without using a bank. More simply, its initial intention was to transfer money while recording data in ways that are both transparent and unchanging. Blockchain’s downside is that it is a new technology. All of its potential kinks have not yet surfaced and when they do, it is unknown how or when these can be remediated.

Therefore major businesses, especially multinationals, have been unwilling to take the leap of faith and leave their current transaction transmitting infrastructure for blockchain. No one wants to be the first to go ‘all-in’, but once some enterprise does, the herd will quickly follow. What remains to be seen will be crucial to the future expansion and success of blockchain as a data platform: its full functionality and scalability. This is a technological realm with limitless potential and this author looks forward to posting updates as it progresses. In terms of technology, we live in exciting times!

The post Blockchain Technology and You – 101 appeared first on Koshka.

Spending less is not a new concept. The fervently religious Victorians extended their concept of ‘Godliness’ by exercising thrift and value. Religion aside, these are great themes to live by. Today we can apply these concepts to our personal expenses. First, a solid piece of advice from someone who has ‘been there’: target what is a need versus what is a want. Then try to locate a viable substitute. Now here’s that list. You may marvel at how you’ve been overspending all these years:

1. Drive Up and Deli Food and Beverages

Sure it is hard to get up in time to make a sandwich and pack a lunch. So do it the night before and before you go spending $$$ at the deli counter, see what you can rustle up from your own fridge. Leftovers make a great scramble, or just roll into a burrito or tortilla wrapper and reheat in the office microwave.

And here is another nugget: I call it the ‘Goeszinta Factor’: that breakfast burrito and small coffee will cost you $4-5 a day. Stop spending that money at least 3 x a week and you’ll save about $800 a year. Don’t believe me, do the math!

Now let’s extrapolate this equation further (yes, I come from a financial background). Invest this $800 for 20-25 years at an average interest rate of 7% and, given unforeseen market fluctuations, you’ll reap about $35K in savings plus interest. And half the time that fast food burrito is stone cold, so chew on this concept instead. Not a bad trade off, no?!

2. Make Your Own Java, Dammit!

Invest in a good coffee maker and thermos and start brewing and bringing your own java. Not enough time in the morning? Buy a brewer that stores ground coffee and water and brews it automatically to the time you set. Not only will it taste better, but few aromas are nicer to wake up to than fresh coffee perking!

3. Buy Second Hand

Also not every occasion merits a new dress. If you must see and be seen, try any of the online thrift shops for current, well-curated outfits at a fraction of the original cost. And if you balk at pre-owned clothing- remember that in a retail store, others will have tried on, and rejected the same garment on the rack. So get over yourself! Recommended online secondary market retailers include: ThredUp, Ebay, Poshmark, The Real Real, Rue La La, and so many more! BTW: most have policies that cover issues such as the seller not sending the goods so there is no buyer risk involved.

4. Paper Goods

While we advocate buying the best toilet tissue on sale, forgo buying paper towels and napkins. Use cloth napkins instead, and recycle old natural fiber clothing as rags. No one is going to see them anyway. The environment and your wallet will thank you.

5. Female Versions of Products

Shaving cream and razors for women are a rip-off. Period. Learn to like blue, black, silver, and green disposable razors and unscented shaving cream. You’ll save about 40%. Seriously. Deodorant and soaps, too.

6. Convenience Foods at the Grocery

Everything you use from bags of shredded salad (which are almost always turning brown or soon do in your fridge), to cut up fruit, to juice boxes, to single servings of yogurt are costing you big time. Okay, it may be hard to part with all of them, but again, invest in decent quality, washable food storage containers and portion out these foods at home into individual servings for great savings. Manage your time and you’ll soon be thanking yourself when you pay your monthly bills!

7. Sell One Family Car

Whoa! We all love our freedom machines. And those of us who responsibly traded sports cars for SUV or vans to transport our families have been longing to buy their next ride and drive something we’d be proud to call our own. But stop and think about it. Have you or your spouse become remote workers, that is, not commuting to an office anymore? Then why are you paying for two cars? Two car loans? Maintenance for two vehicles? Two insurance policies? Filling two gas tanks? Etc. This is a tough decision as we are very possessive about our vehicles. Spouses and partners need to have a serious discussion because this is one change that can reap long-term savings as well as an immediate influx of cash.

8. Downsize Your Home

You might consider this a drastic move. (Figuratively and literally.) After all, both spouses are working. Shouldn’t you cut back on say, another big expense such as vacation trips instead? Look at it this way. Your kids are young only once and many family memories are made on vacation. So this is may not be a good line item to trim family fun your household budget. But do your need that 5-bedroom, 3.5 bathroom house when your children will be off to college in a few short years? Bunk beds, and a smaller, 2-bath house will pay dividends in cheaper upkeep and lower taxes. It is worth considering.

9. Know When Not to Cheap Out

There are just some things that you should not cheap out on. Seeing a doctor when you are sick rather than self-medicate with OTC items from the local chain drug store is one. Buying quality vitamins and supplements rather than whatever is on sale and near its expiration date is another. Putting off the roofing or chimney repair are two others. You can see where we are going with this. It is the old ‘ounce of prevention’ axiom and it is still valid. Besides, for the last two items, there is always Groupon!

Well there you have it. For those who were expecting a list that included, “cancel cable, cancel subscriptions, stop dining out…” we assume you’ve already gone down that road. The purpose of this article has been to point out other overlooked areas, some easy to make a new habit and others that might require some emotional surgery. Whatever you decide, remember to consider the long term.

Before you leap and put your house on the market, or sell one of your rides, however, consult a financial planner, a realtor, and anyone who can advise you about taking your next steps to financial freedom. These professionals can assist you to understand how to make your current economic situation more bearable, and your long-term financial outlook brighter. It might be that your earning power over the next five-10 years will increase. Or that, in lieu of drastic changes to your family life, that simply starting a part-time, at-home business will alleviate most of your money worries. We do not expect that you’ll employ all these suggestions, and only advise that the time to start thinking about your financial future is now.

The post Ways to Downsize Household Spending and Save Money appeared first on Koshka.

By definition, a credit card is a wafer thin slice of plastic designed to fit in your wallet. It serves to identify the owner’s creditworthiness and authorizes that person to charge items and services to an account. The holder is billed monthly and the debt may accrue interest if not paid in full by a stated date. While today just about anything can be purchased ‘on the card’, this was not the case when credit cards originated about a century ago in the roaring ‘20s. Back then credit cards were created primarily for the ease and security of business travelers who did not want to carry large amounts of cash or their checkbook to cover meals and lodging expenses. So their issuers were oil companies (gas stations), restaurants, and hotels/motels.

Purchasers were billed directly by the individual companies. As you can imagine, reconciling a business trip was an exercise in frustration. While being mugged or robbed was no longer a concern for business travelers, in exchange they had to wait for as many as 20 bills or more to arrive in their mailbox before they could tally and submit their expense accounts to their employer. It was a waiting game and chore that got old fast. By the 1970s, credit card processing received a welcome update. Banks got into the act. It was now the banks who issued the credit cards to their depositors and received all the merchant invoices. These were compiled into one monthly bill sent to the user. One bill, one invoice, one check or (by the 1990s) one funds transfer (per credit card) into the issuer’s account.

Every year about ten million new consumers enter the credit market place by applying for their a credit card. Also, according to Gallup, the average American over age 21 has 3-5 credit cards although about a third of us do not have any. While many carry this fact as a badge of honor and a sign of being credit savvy, the number of credit cards an individual has does not compromise their credit score. In fact, Experian and other credit rating services view more available credit as a sign of creditworthiness. However, outstanding debt that exceeds a third of your available credit will lower your score.

Use Credit Wisely

As with many innovations, there are few fail safes and personal discipline and fiscal responsibility are not inherent in most consumers. In other words, there is a temptation for those with large amounts of available credit to buy more than we can afford (the internet makes it all too easy to shop online) and swiftly run up debt. That’s great for banks which survive by extending credit to those deemed worthy (i.e. able to repay over a given period of time). Not so much for those of us who live too far beyond our means.

As we wait on the grocery line we’ve all caught a glimpse of another shopper’s open wallet full of slots containing ten credit cards or more. And we’ve thought: either they are rich and very credit worthy (in which case why are they buying their own groceries), or each card offers a different premium such as a low APR, no annual fee, cash back, travel miles, or the user has run up considerable debt and just pays the minimum amount required each month.

In the ideal world of the 1950s, it was projected that as we progress in life our annual salaries would increase by a percentage comparable to the prime rate, or at least higher than the rate of inflation. In recent decades however, that has not been the case due to economic downturns and other unforeseen issues and expenses. These include buying a house, starting a family, supporting elderly parents, a catastrophic health event, accident, etc.

At those times many of us turn to our credit cards to offset expenses. Which is acceptable provided that the interest rate is sufficiently low or it is a card that does not charge interest for a stated term. Too much debt has produced trust issues among spouses and partners (or should we say, ‘mistrust issues’?). This can lead to monitoring the other’s spending habits which, if discovered, can damage relationships. All the more reason to curb out-of-control spending habits and credit card misuse.
Benefits to a High FICO

According to the Federal Reserve Bank of New York, one very positive statistic concerning credit card use is the fact that fiscally solvent consumers (those with a high FICO) represent almost 80% of our Nation’s credit card users. This means that for most of us, having a credit card is a modern life necessity, whose ownership is not taken lightly. For the rest, it is important to live whenever possible within one’s means and learn to separate needs from wants to avoid mismanaging credit and accruing a debt load that makes the important aspects of life, travel, family, vacations, a home, a car, difficult to obtain or manage.

It is especially easy for couples to overspend if they do not consult with each other before making a major purchase. For those in over their head with out of control spending habits, there are credit management organizations, and even 12-step programs to assist in reining in their spending and reestablishing control. Primarily these organization assist to lower interest payments, offer advice on how to create a household budget and tips to stick with it.

What does the future hold for credit cards? Over half of us believe that we will become a ‘cashless society’ within our lifetime dependent entirely on electronic payment systems including credit cards. Europe is already moving towards this end and here in the States just look around you. Many municipalities do not accept cash evidenced by toll plazas with overhead scanners that have recently replaced toll booths and toll collectors. In many suburban towns, coin-op parking meters have been replaced by those that only accept credit or debit card payments. Transit systems including the subway are moving to swiping plastic or scanning a cell-phone app.

In Washington, lawmakers have debated following in Canada’s footsteps and eliminating the penny. Transactions would just round up to a nickel thereafter. Payment innovations such as Apple Pay and BitCoin make payment as easy as waving your cell phone at a scanner and daily more and more consumers join this movement for the convenience it provides. Economists at Harvard and Citicorp concur that the move to a paperless society will be optimal for businesses and consumers alike. So it is a brave new economic world we are facing- one where toll collector jobs have become obsolete while the need for encryption and cybersecurity professionals grows exponentially. Judiciously monitored, the convenience that credit cards provide consumers enables an improved quality of life. And the options to improve our fiscal lives just seem to get better and better with time!

The post History of the Credit Card appeared first on Koshka.

Up to the midterm, White House reports were grandiose in scale and have claimed responsibility for posting some of the highest employment rates in recent decades, along with the lowest unemployment rates for as long as this author can remember. And if we are doing so well, why has the stock market, granted it is ever volatile, just taken one of the wildest plunges in recent months? What does it all mean? And, most important, what does it mean to most Americans?

For those of us who cannot understand why the value of things are still measured in items such as pork bellies, stocks and bonds are never going to make sense. What real people need to understand is, “Will I have a job tomorrow?” “What is my spending power?” “Will my house sell for top dollar next year?” “My car has 180,000 miles on it. Can I afford to buy a new one or should I look at used cars instead?” And how does the Democratic party holding some semblance of power going to affect these outcomes one way or another?

It is important to assess what the Congress can and cannot do. A gridlocked House and Senate may not impact the economy as they do not control it. The House and Senate do not control economic growth, influence the willingness of consumers and commerce to spend, nor do either the House or Senate make monetary policy decisions. That is the job of the Federal Reserve. The Reserve as well as the U.S.’ chief trading partners, namely Europe and China, and our nation’s ongoing relationship with same influence the U.S.’s economic growth.

That means that increases and decreases in interest rates will eclipse corporate tax cuts to become the leading economic drivers. As the 2020 elections loom, congressmen and women who want to be reelected will shy away from any trickle down legislation that could possibly disrupt the economic cycle. In short, any major actions that affect the U.S. economy will be White House-driven, probably in the form of imposed trade tariffs, and not from the House.

Again, mindful of the the next election, it is unlikely that much legislation that could impact the economy will be passed, other than bills to improve our infrastructure (buildings and highways). This means the tax cuts or increases we enjoyed or bemoaned over the last two years are over. It also means that the current healthcare system will remain in place, and no more sweeping reforms or entitlements allocated to any economic sector.

Watchdog groups warn that an absence of legislation to curb the ever-expanding deficit will come home to roost, likely within the next 10 years. Taxpayers, brace ourselves! Perhaps the worst outcome from a gridlocked House and Senate is the negative impact the daily salvos have upon public confidence. It just makes voter turnout at the polls more difficult as the American public loses faith in their elected officials.

The Pros: Frivolous or ill-conceived legislation, such as allocating up to $25 billion to construct a wall the entire length of the U.S.and Mexican border will be reexamined, and likely highly modified. Also, in light of the recent disclosure that emails of top GOP officials were themselves hacked during the 2018 election, Hillary Clinton’s 2017 email debacle will finally be put to rest.

The Cons: Regardless of their political party, having the upper hand seems to go to the heads of those in power. In the name of Justice, time will be spent to uncover campaign wrongdoings, shots will be fired, most likely toward impeachment proceedings for both the sitting President and recent Supreme Court appointed judge, Brett Kavanaugh. With the term of office more than half over, these actions are pretty much a moot point, since the President, despite his veto, is a lame duck. Therefore efforts aimed at disgracing the 45th President would be a waste of time as well as a waste of taxpayer dollars.

Sadly, nothing can be done to prevent those early morning Presidential Tweets, read rants, that for many, have become ‘must read’ entertainment.

To summarize: The President retains veto power and the senate is notoriously known, regardless of which party controls it, as ‘the place bills go to die”. Therefore the upshot of the Democratic congress, especially for those seeking reelection, is not to forget why they are there: to serve the people. And if they (we) don’t, well, there is another national election in 2020. Stay tuned!

The post What a Democratic Congress Will Mean to the U.S. Economy appeared first on Koshka.

By the time most Millennials graduate from college, they have heard the talk: “Save as much as you can, and if you can put 15% of your salary into a 401K you can easily build a $1 million retirement portfolio”. The caveat here being a proposed retirement age of 65 AND the reminder that by that time, a million dollars ain’t gonna buy as much as it does in 2018. Here’s what anyone at any age can do right now: live below your means. Many scrutinize their monthly bills to find ‘fat’ then excise it. Cancel cable, or reduce your plan to the lowest service they offer. Bundle services whenever for additional discounts. If you belong to a trade organization or hold any kind of membership, learn if there are extra perks or discounts available to their members at local businesses, national chain retailers, etc. Yes, the edict here is, “It isn’t what you make, it is what you keep.””

Other ways to live with less can be accomplished by diverting money from your paycheck just for savings into a direct deposit account. Still other ways to save include dining out less, and putting at least half of any pay increases, monetary gifts, and revenues towards savings. If you are starting to feel resentful and argue that you are missing out on experiences, etc. channel that energy into locating discount coupons, preseason ticket prices, and redefining what it means to ‘live large’.

What Does ‘Being Rich’ Mean to You?

That’s right: affluence means different things to different people. Having expensive items, a huge home, a luxury car, may be doable, just by utilizing a few selective buying techniques. A combination of exercising thrift by only buying what is needed, exploring second-hand options for larger financial expenses such as furniture, cars, and even housing will save money leaving more to save or to invest. Retaining as much of one’s paycheck as possible will also enable savers to see how easily they can ‘get by with less’. For those who must have luxury items, why not shop for these ‘holy grail’ items in outlet malls or on ebay and online thrift shops where they can be had for a fraction of their original cost, sometimes new with tags!

As for the stock market, the days of the quick killing in technology stocks have been over for decades but the fantasy of getting rich quick unfortunately has not. There will always those who think that they know a person who had an uncle who turned one-thousand dollars into a million in three months. The standard rule is not to risk more than you can afford to lose. The stock market is very volatile, and high risk stocks are for high-rollers only. Instead, invest for the long term with annuities and slow growth, lower risk, blue chip stocks. If you wish, you can put a small percentage of your savings in high risk stocks, but be prepared to watch your investment daily and pull out when the market trends downward rather than lose all.

Another way that boomers earn money for retirement is to have a second job. Rather than depend on schedules set by employers, these intrepid souls have started their own enterprises. Usually based on an existing skill set, these additional income sources range from giving piano lessons, to making jewelry, clothing, and crafts, to bookkeeping, and even auto repair. In lieu of dipping into savings, the more enterprising boomers turn to alternative lenders for additional financing for equipment and supplies. Like today’s Boomers, Millennials plan to continue these as often lucrative side hustles long after they ‘retire’ from their full-time, long-term employers.

Readers seeking a magic bullet will have left this article long before its conclusion. Those who have hung in to these final paragraphs realize that there is no shortcut to investing wisely for a secure financial future. For all of us, regardless of age-group, redefining our needs, what we consider ‘rich’ by changing our own mindsets, may be the most important step we take to secure a comfortable retirement. After all, freedom of any kind, including financial, is the ability to make personal life choices that make us content. Being frugal, saving, and investing prudently, will ensure that happy outcome.

The post Save and Invest Like a Millennial to Retire Early Like a Boomer- Here’s How appeared first on Koshka.