Find Your Money Personality (Saving & Spending)

Find your money personality. Four questions to ask yourself.

• Everyone has a financial personality. Identifying yours can help boost your finances.
• Identifying your money strengths and weaknesses is a great first step to determine your financial personality.
• Gain self-awareness that will help you prioritize, make changes and achieve goals.

You know financial well-being takes time and effort, especially as you near retirement. But with hectic schedules, it can feel almost impossible to carve out the time. Even if you have all your systems in place, you may still wonder about the decisions you've made.

These feelings are perfectly normal, says Kathleen Gurney, Ph.D., founder and CEO of Financial Psychology Corporation and author ofYour money personality: What it is and how you can profit from it."Everyone has a financial style and a financial personality," she adds. "When we recognize what about our personality works for us and what is getting in the way, we can make changes that will help achieve our goals."

To determine your financial personality, ask yourself these four questions:

Question 1: What's really happening in my money life?
Ask yourself this important question, suggests Gurney — not what you wish would happen or don't want to admit is happening but what is really happening. If you don't like what you see, know that you can change. The only way your money situation will improve is if you improve your self-awareness.

Question 2: What are three things I'm really proud of?
Find three aspects of your finances that stand out. Perhaps it's the growing contributions to your retirement accounts, the fact that you've put your kids through school or the diversified portfolio you've built. What about your money personality made these three achievements possible? Give yourself a pat on the back, and keep those three attributes in mind going forward. Write them down occasionally if you need to. Think of these qualities as your internal financial coaches.

Question 3: What do I need to improve?
After you identify your money strengths, take a look at personality traits that may be holding you back. Are you afraid to make investment decisions even when you have an advisor to help? Do you put off important financial tasks? Are you having trouble not overspending? Identifying three things helps you stay focused. "When you look at your overall financial picture or what you think you need for the future, it can be overwhelming," says Gurney. The instinct is to just give up. "But, focusing on three things is neurologically doable and completely effective." The reason? Small steps taken on a consistent basis can lead to huge gains over time.

Question 4: When is the best time for me to focus on my financial well-being?
With busy home and work schedules, it's easy to put off dealing with finances. "Ask yourself why you're putting something that is so important to you on the back burner," says Gurney. Of course you're exhausted when you come home from work, so find a time that will work for you, she suggests, and use that time to put yourself and your financial well-being first.

By taking a fresh look and assessing your money strengths and weaknesses, you'll be closer to understanding your financial personality. With this knowledge, you can more easily prioritize and make changes — which can help you achieve your short-term and retirement goals.

Work with your Ameriprise financial advisor to develop a well-rounded strategy that fits your financial personality.

Source: http://www.ameriprise.com/budgeting-investing/financial-planning-articles/saving-and-budgeting/money-personality.asp

Films about Finance

Collapse (II) (2009)

 82 min  -  Documentary  -  6 November 2009 (USA)

7.9

Your rating: 

  -/10 

Ratings: 7.9/10 from 5,018 users   Metascore: 71/100 
Reviews: 37 user | 50 critic | 15 from Metacritic.com

A documentary on Michael Ruppert, a police officer turned independent reporter who predicted the current financial crisis in his self-published newsletter, From the Wilderness.

Director:

 Chris Smith

Writer:

 Michael Ruppert (book)

Stars:

 Michael Ruppert | See full cast and crew »

Source: http://www.imdb.com/title/tt1503769/?ref_=fn_al_tt_1

Debt Consolidation (Saving & Spending)

Debt consolidation

If you have a lot of debt, you're not alone. Today, more and more Americans are burdened with credit card and loan payments. So whether you are trying to improve your money management, having difficulty making ends meet, want to lower your monthly loan payments, or just can't seem to keep up with all of your credit card bills, you may be looking for a way to make debt repayment easier. Debt consolidation may be the answer.

What is debt consolidation?

Debt consolidation is when you roll all of your smaller individual loans into one large loan, usually with a longer term and a lower interest rate. This allows you to write one check for a loan payment instead of many, while lowering your total monthly payments.

How do you consolidate your debts?

There are many ways to consolidate your debts. One way is to transfer them to a credit card with a lower interest rate. Most credit card companies allow you to transfer balances by providing them with information, such as the issuing bank, account number, and approximate balance. Or, your credit card company may send you convenience checks that you can use to pay off your old balances. Keep in mind, however, that there is usually a fee for this type of transaction, and the lower rate may last only for a certain period of time (e.g., six months).

Another option is to obtain a home equity loan. Most banks and mortgage companies offer home equity loans. You'll need to fill out an application and demonstrate to the lender that you'll be able to make regular monthly payments. Your home will then be appraised to determine the amount of your equity. Typically, you can borrow an amount equal to 80 percent of the value of the equity in your home. Interest rates and terms for home equity loans vary, so you should shop around and compare lenders.

Some lenders offer loans specifically designed for debt consolidation. Again, you'll need to fill out an application and demonstrate to the lender that you'll be able to make regular monthly payments. Keep in mind, however, that these loans usually come with higher interest rates than home equity loans and, depending on the amount you borrow, may require collateral on the loan (e.g., your car or bank account).

Advantages of debt consolidation

• The monthly payment on a consolidation loan is usually substantially lower than the combined payments of smaller loans
• Consolidation loans usually offer lower interest rates
• Consolidation makes bill paying easier since you have only one monthly payment, instead of many

Disadvantages of debt consolidation

• If you use a home equity loan to consolidate your debts, the loan is secured by a lien on your home. As a result, the lender can foreclose on your home if you default on the loan.
• If the term of your consolidation loan is longer than the terms of your smaller existing loans, you may end up paying more total interest even if the rate is lower. So you won't actually be saving any money over time, even though your monthly payments will be less.
• If you use a longer-term loan to consolidate your debts, it will take you longer to pay off your debt.

Should you consolidate your debts?

For debt consolidation to be worthwhile, the monthly payment on your consolidation loan should be less than the sum of the monthly payments on your individual loans. If this isn't the case, consolidation may not be your best option. Moreover, the interest rate on your consolidation loan should be lower than the average of the interest rates on your individual loans. This allows you not only to save money but also to lower your monthly payment.

Films about Finance

Unraveled (III) (2011)

 84 min  -  Documentary  -  13 April 2012 (USA)

5.9

Your rating: 

  -/10 

Ratings: 5.9/10 from 263 users   Metascore: 65/100 
Reviews: 8 user | 11 critic | 6 from Metacritic.com

A documentary on Marc Dreier, the once-prominent Manhattan attorney who was arrested for orchestrating a massive fraud scheme that netted over 700 million dollars from hedge funds.

Director:

 Marc H. Simon

Stars:

 Marc Dreier | See full cast and crew »

Source: http://www.imdb.com/title/tt1595061/?ref_=nv_sr_1

Refine Your Cash Strategy (Saving & Spending)

Refine your cash strategy

In times of crisis, you don't want to be shaking pennies out of a piggy bank. Having a financial safety net in place can ensure that you're protected when a financial emergency arises. One way to accomplish this is by setting up a cash reserve, a pool of readily available funds that can help you meet emergency or highly urgent short-term needs.

How much is enough?

Most financial professionals suggest that you have three to six months' worth of living expenses in your cash reserve. The actual amount, however, should be based on your particular circumstances. Do you have a mortgage? Do you have short-term and long-term disability protection? Are you paying for your child's orthodontics? Are you making car payments? Other factors you need to consider include your job security, health, and income. The bottom line: Without an emergency fund, a period of crisis (e.g., unemployment, disability) could be financially devastating.

Building your cash reserve

If you haven't established a cash reserve, or if the one you have is inadequate, you can take several steps to eliminate the shortfall:

• Save aggressively: If available, use payroll deduction at work; budget your savings as part of regular household expenses
• Reduce your discretionary spending (e.g., eating out, movies, lottery tickets)
• Use current or liquid assets (those that are cash or are convertible to cash within a year, such as a short-term certificate of deposit)
• Use earnings from other investments (e.g.,stocks, bonds, or mutual funds)
• Check out other resources (e.g., do you have a cash value insurance policy that you can borrow from?)

A final note: Your credit line can be a secondary source of funds in a time of crisis. Borrowed money, however, has to be paid back (often at high interest rates). As a result, you shouldn't consider lenders as a primary source for your cash reserve.

Where to keep your cash reserve

You'll want to make sure that your cash reserve is readily available when you need it. However, an FDIC-insured, low-interest savings account isn't your only option. There are several excellent alternatives, each with unique advantages. For example, money market accounts and short-term CDs typically offer higher interest rates than savings accounts, with little (if any) increased risk.

Note: Don't confuse a money market mutual fund with a money market deposit account. An investment in a money market mutual fund is not insured or guaranteed by the FDIC. Although the mutual fund seeks to preserve the value of your investment at $1 per share, it is possible to lose money by investing in the fund.

Note: When considering a money market mutual fund, be sure to obtain and read the fund's prospectus, which is available from the fund or your financial advisor, and outlines the fund's investment o

bjectives, risks, fees, expenses. Carefully consider those factors before investing.

It's important to note that certain fixed-term investment vehicles (i.e., those that pledge to return your principal plus interest on a given date), such as CDs, impose a significant penalty for early withdrawals. So, if you're going to use fixed-term investments as part of your cash reserve, you'll want to be sure to ladder (stagger) their maturity dates over a short period of time (e.g., two to five months). This will ensure the availability of funds, without penalty, to meet sudden financial needs.

Review your cash reserve periodically

Your personal and financial circumstances change often--a new child comes along, an aging parent becomes more dependent, or a larger home brings increased expenses. Because your cash reserve is the first line of protection against financial devastation, you should review it annually to make sure that it fits your current needs.

Source: http://www.ameriprise.com/budgeting-investing/financial-planning-articles/saving-and-budgeting/cash-reserve.asp

Films about Finance

97% Owned (2012)

130 min  -  Documentary  

8.4

Your rating: 

  -/10 

Ratings: 8.4/10 from 58 users  
Reviews: 1 user

97% owned present serious research and verifiable evidence on our economic and financial system. This is the first documentary to tackle this issue from a UK-perspective and explains the ... See full summary »

Director:

 Michael Oswald

Writers:

 Mike Horwath, Michael Oswald

Stars:

 Maddy Reilly, Ben Dyson, Anne Belsey |See full cast and crew »

Source: http://www.imdb.com/title/tt2145874/?ref_=fn_al_tt_1

Tips to Help You Pay Down Debt - and Save (Saving & Spending)

Debt is a drag — in more ways than one. Monthly payments can challenge your budget and make it difficult to save. And high interest rates and lengthy repayment terms can make it impossible to wipe out debt quickly. Do these types of challenges have you worried about your financial well-being?

Here are tips to help you pay down debt and free up money to save — so you can regain confidence in your financial future.

• Swap high-interest debt for lower-cost loans. In today's environment, the interest you pay on debts — especially credit cards — typically exceeds what you could earn on savings. So it makes sense to focus on paying down these accounts to get ahead of the debt curve. Consider replacing high-interest debt with low-interest loans to help reduce costly finance charges. Then use any extra dollars you save or proceeds you receive to pay down existing debt — not to make new purchases. And don't build up the original debts again.
  Lower-interest options to consider:
  • Take out a home equity line of credit. A home equity line of credit allows you to take the equity in your house and use it for other purposes. Once your line of credit is established, you can access the funds to pay down high-interest debt.
    For example, if your home equity line of credit has a fixed rate of 7% and you use those funds to pay off other debts, including a credit card balance with an 18% variable rate, your savings would be substantial. Plus, unlike credit card interest, the home equity loan interest may be deductible if you itemize your deductions on your tax returns.
    One additional benefit: you only pay interest on the amount of the credit line that's used. For example, if you have a $30,000 credit line but only used $10,000, you will only pay interest on the $10,000 amount. Keep in mind that home equity loans can be set up with either a fixed or variable rate. Each offers certain benefits, so be sure to weigh both options to determine which one is best for you.
  • Take advantage of new opportunities to refinance your mortgage.Home values have started to pick up in some areas of the country, but are still substantially lower than their historic peak in 2006, causing many homeowners to owe more than 80% of the assessed value of their homes. Most lenders require homeowners to have at least 20% equity in their homes to be eligible for refinancing, and decreased values have made it even more difficult for homeowners to qualify. But opportunities still exist to secure a new loan with a more favorable interest rate and lower monthly payments. Your financial advisor can help you explore your options.
• Renegotiate with lenders. You might be surprised to discover how flexible some creditors can be. Mortgage terms can be renegotiated and credit card rates lowered. Sometimes all you need to do is ask. If you're unable to get the creditor to budge, take your business elsewhere if you can.
• Create a spending budget. Everyone knows how important it is to have a budget to track expenses, but far too many simply don't have one. Without realizing how much you're spending each month, "small" expenses can add up. Creating a written budget for your household can help you gain control of spending and identify areas where you can save.
  For example, cutting back on extras such as magazine subscriptions and unused gym memberships may seem like a small step, but the benefits will add up. Determine where you can make sacrifices and be sure everyone in the family is on board. Such actions may also help your children understand the importance of taking personal responsibility for their own finances as they grow up.
Paying down debt is critical in today's challenging environment, but maintaining some credit is also important. Suppose you were to lose your job or face an unexpected need for a large amount of cash. Credit can help temporarily tide you over if times get really tough. So keep your zero-balance credit cards rather than closing out your accounts — although you may want to consider other options if you're being charged an annual fee. You may also want to use your cards on a regular basis — and pay them off right away — to maintain a good credit standing.

Saving is the other side of the coin

Nearly everyone can save more on a regular basis than they presently do. While applying the tips above can help free up money so you can save more, you may want to consider these additional options:
• Automatic contributions to employer-sponsored savings plans. One of the easiest ways to save is by contributing to an employer-sponsored savings plan. Any amount you invest is automatically removed from your paycheck on a pre-tax basis, making it seamless and simple to manage. Make sure you invest at least enough to receive the full employer match or you could be missing an opportunity to get free money.
• Systematic deposits to savings accounts. There are other simple ways to ensure you consistently save. First, take steps to cut down on your expenses so you can set aside extra money. Then, set up automatic transfers on a weekly or monthly basis to your account.
For example, let's say your family of four eats out twice each week at an average of $45 per meal. If you cut out one of those meals weekly by eating at home instead, you would save $2,340 in a year. Now, instead of waiting until you have $2,340 at the end of the year and making a lump-sum deposit, set up automatic monthly deposits of $195 (representing one $45 family outing per week). This will help ensure your savings account grows over time without impacting your budget. Once you've adjusted to your new routine of eating out only once per week, move on to additional saving opportunities, such as reducing your cable bill or switching to public transportation. Just remember to use every extra dollar to either build your savings or pay down debt.
With creativity and discipline, you can succeed at reducing your expenses so you have more money to pay down debt and build your savings. Talk to your Ameriprise financial advisor about these and other steps you can take to help you regain control of your financial future.

Source: http://www.ameriprise.com/budgeting-investing/financial-planning-articles/saving-and-budgeting/tips-pay-down-debt.asp

Films about Finance

The Ascent of Money (2008)

TV Movie  -  Documentary  -  13 January 2009 (USA)

7.7

Your rating: 

  -/10 

Ratings: 7.7/10 from 345 users  
Reviews: 1 user | 2 critic

Add a Plot

Director:

 Adrian Pennick

Writer:

 Niall Ferguson (book)

Stars:

 Niall Ferguson | See full cast and crew »

Source: http://www.imdb.com/title/tt1358383/?ref_=fn_al_tt_1

Buying a home (Saving & Spending)

Buying a home 

There's no doubt about it—owning a home is an exciting prospect. After all, you've always dreamed of having a place that you could truly call your own. But buying a home can be stressful, especially when you're buying one for the first time. Fortunately, knowing what to expect can make it a lot easier.

How much can you afford?

According to a general rule of thumb, you can afford a house that costs two and a half times your annual salary. But determining how much you can afford to spend on a house is not quite so simple. Since most people finance their home purchases, buying a house usually means getting a mortgage. So, the amount you can afford to spend on a house is often tied to figuring out how large a mortgage you can afford. To figure this out, you'll need to take into account your gross monthly income, housing expenses, and any long-term debt. Try using one of the many real estate and personal finance websites to help you with the calculations.

Mortgage prequalification vs. preapproval

Once you have an idea of how much of a mortgage you can afford, you'll want to shop around and compare the mortgage rates and terms that various lenders offer. When you find the right lender, find out how you can prequalify or get preapproval for a loan. Prequalifying gives you the lender's estimate of how much you can borrow and in many cases can be done over the phone, usually at no cost. Prequalification does not guarantee that the lender will grant you a loan, but it can give you a rough idea of where you stand. If you're really serious about buying, however, you'll probably want to get preapproved for a loan. Preapproval is when the lender, after verifying your income and performing a credit check, lets you know exactly how much you can borrow. This involves completing an application, revealing your financial information, and paying a fee.

It's important to note that the mortgage you qualify for or are approved for is not always what you can actually afford. Before signing any loan paperwork, take an honest look at your lifestyle, standard of living, and spending habits to make sure that your mortgage payment won't be beyond your means.

Should you use a real estate agent or broker?

A knowledgeable real estate agent or buyer's broker can guide you through the process of buying a home and make the process much easier. This assistance can be especially helpful to a first-time home buyer. In particular, an agent or broker can:

• Help you determine your housing needs
• Show you properties and neighborhoods in your price range
• Suggest sources and techniques for financing
• Prepare and present an offer to purchase
• Act as an intermediary in negotiations
• Recommend professionals whose services you may need (e.g., lawyers, mortgage brokers, title professionals, inspectors)
• Provide insight into neighborhoods and market activity
• Disclose positive and negative aspects of properties you're considering

Keep in mind that if you enlist the services of an agent or broker, you'll want to find out how he or she is being compensated (i.e., flat fee or commission based on a percentage of the sale price). Many states require the agent or broker to disclose this information to you up front and in writing.

Choosing the right home

Before you begin looking at houses, decide in advance the features that you want your home to have. Knowing what you want ahead of time will make the search for your dream home much easier. Here are some things to consider:

• Price of home and potential for appreciation
• Location or neighborhood
• Quality of construction, age, and condition of the property
• Style of home and lot size
• Number of bedrooms and bathrooms
• Quality of local schools
• Crime level of the area
• Property taxes
• Proximity to shopping, schools, and work

Making the offer

Once you find a house, you'll want to make an offer. Most home sale offers and counteroffers are made through an intermediary, such as a real estate agent. All terms and conditions of the offer, no matter how minute, should be put in writing to avoid future problems. Typically, your attorney or real estate agent will prepare an offer to purchase for you to sign. You'll also include a nominal down payment, such as $500. If the seller accepts the offer to purchase, he or she will sign the contract, which will then become a binding agreement between you and the seller. For this reason, it's a good idea to have your attorney review any offer to purchase before you sign.

Other details

Once the seller has accepted your offer, you, your real estate agent, or the mortgage lender will get busy completing procedures and documents necessary to finalize the purchase. These include finalizing the mortgage loan, appraising the house, surveying the property, and getting homeowners insurance. Typically, you would have made your offer contingent upon the satisfactory completion of a home inspection, so now's the time to get this done as well.

The closing

The closing meeting, also known as a title closing or settlement, can be a tedious process--but when it's over, the house is yours! To make sure the closing goes smoothly, some or all of the following people should be present: the seller and/or the seller's attorney, your attorney, the closing agent (a real estate attorney or the representative of a title company or mortgage lender), and both your real estate agent and the seller's.

At the closing, you'll be required to sign the following paperwork:

• Promissory note: This spells out the amount and repayment terms of your mortgage loan.
• Mortgage: This gives the lender a lien against the property.
• Truth-in-lending disclosure: This tells you exactly how much you will pay over the life of your mortgage, including the total amount of interest you'll pay.
• HUD-1 settlement statement: This details the cash flows among the buyer, seller, lender, and other parties to the transaction. It also lists the amounts of all closing costs and who is responsible for paying these.

In addition, you'll need to provide proof that you have insured the property. You'll also be required to pay certain costs and fees associated with obtaining the mortgage and closing the real estate transaction. On average, these total between 3 and 7 percent of your mortgage amount, so be sure to bring along your checkbook.

Source: http://www.ameriprise.com/budgeting-investing/financial-planning-articles/saving-and-budgeting/owning-a-home.asp

Films about Finance

The Pursuit of Happyness(2006)

All 117 min  -  Biography | Drama  

7.9

Your rating: 

  -/10 

Ratings: 7.9/10 from 240,930 users   Metascore: 64/100 
Reviews: 578 user | 199 critic | 36 from Metacritic.com

A struggling salesman takes custody of his son as he's poised to begin a life-changing professional endeavor.

Director:

 Gabriele Muccino

Writer:

 Steve Conrad

Stars:

 Will Smith, Thandie Newton, Jaden Smith |See full cast and crew »

Source: http://www.imdb.com/title/tt0454921/?ref_=nv_sr_1