Personal Economics 101

Business, technology, environmental and economic changes are a part of life, and they are coming faster all the time. All of these changes and advancements can be distracting and make us more vulnerable to cyber scams. That's why protecting your credit is a critical part of protecting yourself from cyber security threats. Security researchers have reported that hackers and scammers are using any opportunity or vulnerability to target both individuals and companies. You may have already seen these attempts in the form of fake emails or calls. 1. How can I better protect my credit? Check your credit reports frequently. You can get free credit reports from the nationwide credit reporting agencies (Equifax, Experian ®  and TransUnion ® ) at annualcreditreport.com. Check your credit reports frequently to closely monitor any unauthorized changes. Utilize key tools. There are many tools available that can help you better protect your identity while staying on top of your credit. You can p...

 Up from 6.09% on Feb. 3, 2023.

  A client called one afternoon and said, “I need $50,000 out of my IRA account.” “Uh, ok. Why?” I responded. “To pay off my credit cards. The interest is killing me.” “Yeah, I get that. Why are your credit card debts so high?” “Well, I just don’t make enough money to pay for the things I need.” “Ever thought about getting another job or moving to a less expensive house?” “Nah, I like my job and house.” I fulfilled her request and a year later it repeated. Eventually, her nest egg was, well like Humpty Dumpty. Not exactly sure what she did after that. She never calls. I kind of feel lonely. Now, my wife and I use credit cards. She has a wallet full of them. Different ones for major companies we buy from. They give us discounts or we build points. But every month we pay off the balances. No carryover and no interest. Just convenience and rewards. The credit card companies have a name for people like us: “deadbeats”. No kidding. My wife was talking with a credit card service person r...

 

 I got this question on Quora today. It's a common question. The answer I provided is below.  I got into debt young as I didn’t realize how important it was to have a good credit score. How can I get myself out of this mess? I’m worried it’s going to affect future relationships. You really must to want to be debt-free. There is no other way. It’s a process, of both knowledge of personal finance, and modifying your financial behavior. But it is something you can achieve, if you create a plan and follow the steps of sound financial planning. I’m going to tell you up front that it will take quit a bit of work and effort on your part, depending on how much debt you have, and what you are willing to do. We had a saying in the military about what needed to be done do accomplish our mission: “Whatever is necessary.” This will be the same kind of thing. So you have to develop the same mindset. Be hungry. Personal finance is 20 percent knowledge, and 80 percent behavior. When I starte...

As you may have noticed, “buy now, pay later” (BNPL) options are exploding, with retailers ranging from department stores to airlines allowing customers to pay for goods and services in installments rather than all at once. In fact, in 2021 over half of consumers have used a BNPL service such as Klarna, Afterpay or Affirm to finance their purchases. These plans been around for many years, however, mostly as "buy now, use our card or credit plan, pay no interest for a year", or more. Pay no interest for 5 years! We've all seen them. But that said, there are some significant potential gotchas to think about before you give it a try. Let’s take a look at how BNPL services work—so that you can understand their pros and cons—and make an informed decision about when they may (or may not) be a good choice. BNPL plans work like an old-fashioned layaway plan in reverse. Instead of having the merchant hold on to the item until you complete all your installment payments, you receiv...