The importance of having an emergency fund

One of the most important things you can do to protect your financial health is having an emergency fund. An emergency fund is money you put away to cover unplanned situations that life throws at you. Some of those situations include job loss, medical emergency, unexpected home repairs or having to replace appliances, car troubles, the list goes on.

How much you need to put away varies but I encourage at least 3 to 6 months’ worth of expenses.I am such a believer in the financial stability that an emergency fund will bring to your life, along with the confidence knowing you can handle financial problems that may come up. Plus if you had to borrow money to pay for unexpected issues, you would have interest on the loan and fees, so you save money too.

Ideally you should keep emergency money where you can get at it quickly and easily like a simple checking account or money market account that comes with a debit or check writing options. If you don’t have an emergency fund start saving today, so you’re ready for whatever life throws at you.

Your Safe Money Show Bargains in 2016 5 28 16

Planning

I think half the fun of any trip is the “planning”. Where to go, what to see, lodging, food, what to wear, and the list goes on.

If a road trip is in your future, to save on fuel, consider the free GasBuddy app that pinpoints your location and directs you to the cheapest stations around.

If a trip to a National Park is on the agenda it’s the 100th anniversary of the National Park Service this year. Just an FYI parks are getting a record number of advance reservations, so the sooner you book, the better.

And keep in mind the U.S. dollar is strong again and consequently with the value of the Canadian dollar as weak as it is, you can expect to save 25% to 35% off shopping, restaurants and activities.

You take the time to “plan” a vacation don’t you owe it to yourself to “plan” for your retirement too?

How important is your credit score

Who would have ever thought a credit score would be so important to our financial health. Your credit score represents your creditworthiness: how likely you’ll pay your bills and pay them on time.

 In 1989 the Minneapolis-based Fair Isaac Corporation (better known as FICO) was the first to boil down your credit history, a detailed report on how you borrow and repay your debts, into a single three-digit number. 

Your score can affect what you pay for a mortgage, rent, home, and auto insurance. The easy explanation is the lower your score the greater risk you are and the more you pay. The higher the score the risk is lower the less you pay. A good credit score can also get you a lower interest rate when you borrow. That means you will pay less over time. 

To improve your score pay your bills on time. Avoid credit card debt and maxing out a credit card. Pay the card off every month. If you can’t do that pay more than the minimum. Start establishing a credit history as soon as you can. The easiest way to do this is by getting a credit card early and using it responsibly. 

Lending Money to Family or Friends

Lending money to family or friends can be precarious. Not only are you opening your wallet, you are opening your heart to possible disappointment.

I've discovered over my 20 years as a financial planner, if the loan isn't repaid it can cause irreparable harm to a relationship.

There are things to consider before you loan someone money. Decide if you can afford to help. Make sure you won't put yourself in a bad situation by not having that cash available. Get your spouse's or partner's approval. Lend only what you can afford to lose. Put the agreement in writing. Charge interest. There can be tax implications so this is important.

Bottom line - when you lend money to someone, will you be OK if you don't get paid back?

Highlights for Your Safe Money Show for the week of May 21

I've found that sometimes in life we learn more from other people's mistakes. On this week's Your Safe Money Show I'll have financial regrets and how to fix or avoid them all together.

There is a huge industry out there called the "fakes industry", it's worth $461 billion dollars. We'll look at what brands are counterfeited most and why that's important to consumers.

And the financial benefits of living with less, could this be a lifestyle for you?

Your Safe Money Show Living with Less 5 21 16

Highlights for Your Safe Money Show May 14

Since summer time equals "travel time", on this week's Your Safe Money Show, I have hotel scams and fees to watch out for before you make reservations.
Retirement accounts like 401(k)'s and IRA's have had some changes recently, how will these changes affect how you save?
And since we have heard so much about Flint Michigan's problems with their drinking water, we'll look at the safety of our drinking water.

Flip phones making a comeback

I had to smile the other day when I read that flip phones are making a come back. I know there are cycles with products but who would have thought that flip phone sales would be up almost $2 million from last year.

Sounds like there are several reasons for this but the most important reason in my opinion is the cost savings. Not only are the phones themselves much more affordable than a Smart phone but the plans are too.

Like so many things in life, you have to decide what works best for you but if you want to save money, flip phones are one way to save.

Life expectancy, how long will you live?

Life expectancy when planning for your retirement is more important today than ever before, because we are living longer than ever before.
Between 1980 and 2010, the population age 90 and older nearly tripled, reaching 1.9 million people, according to the Census Bureau. Over the next four decades, the 90-plus demographic is expected to quadruple. 
When I meet with a client we discuss their family history and factor in longevity as we formulate their retirement plan along with many other factors.
Many people, when planning for retirement, tend to underestimate their life expectancy and, as a result, tend to overestimate how much they can spend after they retire.
As a retirement income planner my job is to help insure you'll have enough income to last all the way through your retirement.

U.S. Consumer Borrowing Jumps 10 Percent in March

The Federal Reserve reported on Friday that total consumer borrowing rose $29.7 billion in March, a 10 percent jump from the previous month. It was the largest percentage gain since a surge of 18.4 percent in November 2001, when consumer borrowing surged in response to government officials urging Americans to boost spending to support the economy following the September terrorist attacks.
This caught my eye, as this large of a jump in consumer borrowing, tell's me people are using their credit cards to pay ever bigger bills.
Don't let your credit card debt get out of control. I help clients of all ages in setting a budget and working toward a better financial future.

Your Safe Money Show Cashless Society 5 7 16

Retiring After 65 May Help People Live Longer

Retiring After 65 May Help People Live Longer

It’s Absurd How Much Prices for Common Medical Services Can Vary

It’s Absurd How Much Prices for Common Medical Services Can Vary