New College Grads – Prepare to Live a Financially Secure Life

Written by CFB Blogger. Posted in Blog

Another list for better achieving financial security, this time for you recent grads. These tips gleaned from Nicole Seghetti, writing for The Motley Fool. •    Build your credit Apply for one or two credit cards and use them monthly to show that you always pay your bills on time and in full. Credit card debt racks up quickly and insidiously –don’t let it happen to you. Overwhelming credit card debt is a leading contributor to bankruptcy. Using credit cards responsibly can help build your credit. In addition, many credit cards offer cash back or shopping/travel rewards for on-time payments. Read the fine print carefully before applying for the cards as finance charges vary significantly among cards. •    Make a budget Making a realistic budget (and sticking to it) will help you maintain a financial secure life. There are even free apps and software than can help. www.mint.com, for example, can help you set financial goals, track your monthly spending habits, remind you of upcoming bills and even send you an alert if you’re going over budget. This habit can help keep you and your family financially strong. •    Tackle student loan debt Seghetti avers that since student loans don’t require repayment until after graduation, paying them may be new to you. She states, “Making the minimum student loan payment is a must. But paying more than that amount each month will help those loans disappear even faster… And paying your student loan off faster will allow you to more easily save for future financial goals, like traveling or buying your first home.” •    Prioritize retirement savings If your employer offers a retirement plan, such as a 401(k), start contributing to it right away and make those contributions a habit. Seghetti writes, “Consider this: For a recent college grad earning $40,000 per year, contributing 10% of his or her salary starting on day one, rather than two years later, translates to an extra $211,000 in the retirement nest egg. That’s based on the following assumptions: 1.    You earn $40,000 per year from age 22 until retirement at age 66, with no change or lapse in pay. 2.    Your 401(k) returns 8% per year. 3.    You do not receive an employer match for your contributions. And about that last point: You should contribute at least enough money to take full advantage of your employer’s match (assuming they offer one). An employer match doubles your contribution and therefore your potential returns. And when you get your first raise, make sure your 401(k) deferral increases in line with your salary. Years down the road, you’ll be amazed by the amount of wealth you’ve accumulated.” We couldn’t have said it better ourselves. For experienced and knowledgeable Chapter 7 or Chapter 13 personal bankruptcy assistance, you can rely on the attorneys from Client First Bankruptcy who have helped thousands of satisfied clients discharge their overwhelming debt. For your free initial consultation, please call our knowledgeable and compassionate lawyers toll-free at 800-383-6004.  We answer our phones Monday-Friday from 8:30 a.m. – 6:00 p.m.  And log onto www.clientfirstbankruptcy.com for vital and timely bankruptcy information 24/7 so you can get the information you need when the time is right for you.

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Financial Guidelines for a More Secure Life

Written by CFB Blogger. Posted in Blog

Unlike January 1st, when most people make their life-changing or life-affirming resolutions, summer always beckons as the right time to make a new start for others, especially when it comes to finances. This brief but important list from Kimberly Palmer, writing for www.money.usnews.com, hits the financial nail on the head. •    Find a bank that betters suits your needs. If you find yourself paying fees for using out-of-network ATMs when traveling cross-country, try finding a bank that works better for you. Google www.bankrate.com (and others) to comparison shop for banks, just as you would when booking an airplane flight or hotel room. “Larger banks tend to offer more ATMs for frequent travelers while smaller banks and credit unions might be less convenient but offer lower fees”, Palmer writes. •    Research your current credit card/s to ensure they are working for you. Many people use credit cards that aren’t matched to their needs, Palmer avers, resulting in higher-than-necessary fees or missed rewards. “If you carry debt, you’ll want to find a card with the lowest annual fee possible… those without debt can maximize their rewards.” Again, use your computer to comparison shop those credit cards using such sites as www.indexcreditcards.com and www.creditcards.com. •    Organize your financial papers. Organize your bank statements, retirement account paperwork and health insurance forms, Palmer says, by putting as much financial paperwork as possible online. Make a three-ring binder filing system for the rest and buy or borrow a shredder to trash unneeded documents without the fear of identity theft. •    Stop paying (or overpaying) for cable TV. Many television shows are available online for free – viewers need only watch a short commercial beforehand. Hulu.com, iTunes and network websites make it easy. Make sure your virus-protection is up-to-date; you can get great, free virus protection at www.avg.com. •    Take a “free” vacation. Just as there’s no such thing as a “free lunch”, there is also no such thing as a truly “free vacation”. However, by using a combination of credit card rewards, airline miles and hotel membership programs, you can travel, stay and see the sights for a whole lot less. Palmer states to “look for opportunities to layer deals and giveaways on top of each other. And don’t forget to read the fine print, especially when it relates to expiration dates and other restrictions.” •    Spend less on food. Cooking more at home, keeping an organized fridge, and shopping more frequently but buying less can help cut down on food waste. Even restaurant trips can become more cost-efficient if you ask for a “doggie bag”; you can even ask your server to pack up the bread for you if you don’t plan to eat it (not really classy but…). •    Calculate your retirement number. Most Americans have no idea just how much savings they need for their retirement. However, www.bankrate.com, www.finance.yahoo.com or www.bloomberg.com (and many other sites) offer calculators that are easy to customize with specific rates of returns, tax rates and inflation rates, among other factors. •    Protect yourself online. Help ensure that your vital online accounts are secure by not using the same password on multiple sites, change those passwords often (monthly is a good idea) and coming up with unusual words, phrases or letter combinations. The trained and caring professionals at Client First Bankruptcy think that increasing your financial knowledge for everyone sounds like a great idea. If you are considering filing Chapter 7 or Chapter 13 bankruptcy due to extreme financial distress, please call us right away. The Client First Bankruptcy attorneys are among the most knowledgeable consumer bankruptcy attorneys in the U.S., representing thousands of clients in consumer bankruptcy matters. Call us toll-free at 800-383-6004 Monday thru Friday from 8:30 a.m.-6:00 p.m. Central Time. For vital information on filing your personal Chapter 7 or Chapter 13 bankruptcy anytime, log onto our easy-to-navigate, interactive website at www.clientfirstbankruptcy.com.

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