Greatvest Tools

Money. This one word can be very emotionally-charged. You might think you don't have enough of it, or that other people have too much of it. Money triggers jealousy, greed, anxiety, fears, stress, love, gratitude, feelings of freedom and so many other emotions. Some people spend their whole lives in pursuit of it, and no matter how much they have some people still live in fear that it isn't enough. A friend once confided that his father had investments worth in the eight digits and still worked 60-80 hours weeks because he didn't think it was enough. Feelings of lack like that cause stress and anxiety and affect our mental health ... not to mention the toll taken on our emotional, mental and physical health from working so many hours. And PsychCentral in the past has written about the correlation between money worries and depression. But financial wellness, like any other kind of wellness of our lives, comes about when we critically assess our situation, deal with the em...

Financial Literacy Month is the perfect time to assess your savings and evaluate your level of financial preparedness. Start by asking yourself these three questions: 1. Do you have a financial plan that includes savings and debt management goals? Savers with a plan are twice as likely to save successfully. And you'll feel more motivated to save money if you have a plan in place. You can start your financial plan by joining Greatvest and making a commitment to save money. It'll be much easier to save if you have a goal in mind to keep yourself motivated. That's why we say set a goal and make plan! You can put some of your savings towards reducing your debt! Begin by paying off your high-interest rate debt first, like credit card debt. The longer you wait to pay it down, the more money you'll end up spending. One technique is to start by paying off your smallest balances first. Why? Getting rid of smaller debts will give you an extra motivational push to tackle your ...

Babies -- kids in general -- are expensive. With all of the "stuff" you're going to need for your little one, plus additional baby expenses, you may feel like you're spending money faster than you're earning it! Budgeting for a baby is a good step to take whether you're pregnant, planning, or even if your baby recently arrived. Predict your spending • Determine how much of your money is required for mandatory expenses, such as rent/mortgage, groceries, utility bills, credit and loan payments, etc. • After everything you need to pay is taken care of, how much money do you have left over? Much of this money may be going to your new baby! Predict baby expenses Estimate your one-time and recurring baby costs. Examples of one-time costs: • Medical bills from prenatal appointments, delivery and hospital stay - baby will have bills, too! • Purchasing baby gear, setting up nursery, etc. Examples of ongoing costs: • Diapers/wipes • Formula (if not nursin...

Before you retire, get on the same page with the important people in your life about what this important life change means to you. It will make for an easier transition and help you avoid missteps. Before you retire, get on the same page in your life about what this important life change means to you. It will make for an easier transition and help you avoid financial missteps. With your spouse or life partner: 1. Are we on the same page about the lifestyle we expect to have in retirement? Before you retire, you and your partner need to get on the same page about what this means in day-to-day terms. For example, did you know that your living expenses in retirement will likely be about 80% of your pre-retirement living expenses? This means that your monthly budget will change - it's important to make the changes thoughtfully. Examine your priorities and assumptions together to avoid misunderstandings that lead to financial missteps. Do yourself a favor and take a gradual approa...

It's January 1. You set your New Year's resolution to work out every day, and you sign up for a 6-month membership to the fancy new gym down the street. Come February 1, you have only gone once. Yep, you want to quit the gym. Unfortunately, you signed the contract without reading the fine print and you are locked into that gym membership that you know you'll never use. Before you sign the dotted line on another deal, whether on a new gym contract (I mean, have you seen that new yoga studio?) or an apartment lease, make sure you follow these essential guidelines. Google it. Before considering a contract for any product or service, search online for the organization with which you are signing the contract and the keyword "complaints." Check the gossip. Ask your friends on social media if they have any horror stories about the particular organization or type of service you are signing up for. Chances are that your friends will give you an unbiased opinion,...

The Federal Reserve has raised its target interest rate after five years of record lows. This means you may be at risk of paying more interest on your mortgage, private student loans and car note if you're looking to buy. Here's a roundup of what this means for you. 1. You could see more return on your savings. Let's start with the good news. Your savings account, money market and Certificates of Deposit could start increasing at a higher interest rate. More money in your savings account is great news! But keep in mind that you won't necessarily see this effect immediately, interest will accrue visibility and compound over time. 2. If you plan on buying a car, your payments could be costly. If you're looking to buy or lease a new car, make sure you pay close attention to your interest rate. The higher your interest, the more expensive your car note will be. This is because when you finance a car, you're borrowing from the dealership or loan vendor. Esse...

If you're shaping up your finances - whether it's to buy that dream vacation, a new home or to pay off debt- you need to stick to a plan. Start with the basic 50-30-20 rule of budgeting that will help you create a balance between your obligations, goals and splurges. You put 50 percent of your income toward necessities like housing and bills and 20 percent toward financial goals like paying off debt or saving for retirement. The final 30 percent goes for wants like dining or entertainment. Or, if funds are limited, try allotting 20 percent to financial goals and 80 percent to everything else. You can adjust the equation to your situation. Follow these basic rules, and start making changes to trim your expenses with the goal of becoming financially fit! Do a half hour of "financial review" each week. Looking at your account balances and reviewing weekly spending will help keep your budget on track. Don't spend more than you earn. In fact, spending less than ...

Today, Americans carry $2 trillion in consumer debt and 78% of us live paycheck to paycheck. It's a deeply stressful situation for individuals, families, employers, and communities nationwide. And then once a year, we are reminded by well-meaning purveyors of National Financial Literacy Month that we probably insufficiently educated about our personal finances: Women have lower financial literacy rates that men and tend to have fewer savings a well. Theses issues are exacerbated for the many women who are single mothers and/or sole breadwinners, and who manage their finances alone. If Americans were financially literate, they would be able to take responsibility for their own financial security (since the government no longer does so). With the rapid decline of pensions, for instance, workers need to be educated on the importance of regular savings. I wish it were that simple. There is no doubt that most Americans are struggling with serious financial stress, but financi...

Building your credit is one of the best things you can do for your financial future. Doing it alone can be difficult; luckily, your family can help! Whether you're just started out in the credit game or looking to rebuild after you've made some mistakes, building your credit is one of the best things you can do for your financial future. Not only does an excellent credit score make it easier to get approved for loans and credit cards, but it can also make it easier to get a job, or new apartment, and insurance. Building credit on your own can be difficult, though, so don't go it alone if you don't have to. A trusted family member can give you a hand to speed up the process. Here are three ways that can happen. 1. They can add you as an authorized user As the primary cardholder on a credit card, your family member can add you as an authorized user. Not only do you get credit card tied to their account, but you also get the benefit of the account's full history ...

Giving your kids a credit card is a great idea...if you set up limits. They'll build credit and be fully prepared for adulthood when the time comes. Here are the pros and cons of parents giving kids credit cards. It's a common refrain from older generations: "These kids today all have credit cards! When I was young, we paid for everything with pennies and pocket lint." You'll hear the same sentiment about cell phones, video games, and just about anything else invented within the last fifty years. It's true that more kids today are getting credit cards, but that might not be such a bad thing. If used responsibly, credit cards can be a powerful tool for learning - and building a strong financial foundation for the future. It used irresponsibly...well, that would be more like building a foundation on quicksand. If you're considering whether or not to give your child access to a credit card, read ahead for the pros and cons. Why it's a good i...

The 401(k) is one of the most common retirement plans. But there's much about 401(k) plans that participants don't know. Here are the top nine things to know about your 401(k).  The 401(k) is a common retirement plan. In fact, it's the most common employer-sponsored retirement plan. But there's much about 401(k) plans that participants don't know. Here are the top nine things to know about your 401(k). 1. The maximum contribution you can make has increased for 2018 The maximum employee contribution to a 401(k) has held steady at $18,000 for the past couple of years. But for 2018, it has increased to $18,500. That's not a big increase, but it's headed in the right direction. Once more, if you are age 50 or older, you can make a "catch-up contribution"of an extra $6,000. That amount hasn't changed, but it does mean that those 50 and older can contribute up to $24,500 to their 401(k) plans. When you add an employer matching contribution...

If you have a cash back credit card, you may think that your best redemption option is cash. But that's not always the case. Here's how to get the most out of your rewards credit cards. The best credit cards reward you for doing something you would have done anyway. And whether you have a travel, cash back, or generic rewards credit card, knowing how to maximize the benefits you get from the card can help you get the most bang for your buck. To help you make sure that you don't miss out on the best rewards out there, we've put together a list of five ways you can get the most out of your credit cards' rewards programs. 1. Choose the right cards There's no best credit card out there for everyone. The right card for you depends on your spending habits, your personal preferences, and your credit score. Spending habits Let's say you have a large family and spend a lot of groceries and gas. It might make sense then to get a card like the Bank of A...

Whether you're trying to conserve a cash cushion or buying in a fast rising market, there are times when it does make sense to put less than 20% down on a house. Financial advisors and even real estate experts frequently extol the virtues of making a down payment of at least 20 percent on a house. But are there times when it makes sense to put less than 20 percent down on a house? Actually, yes. In fact, there are several situations where it makes sense. When you're trying to conserve a cash cushion One of the major dilemmas that homebuyers face is a shortage of cash after closing. This is a bigger problem than is usually anticipated prior to closing. Once you close on a home, you'll have other expenses. Some of them will be related to the property itself, but others can be unanticipated expenses. For example, once you move in, certain repairs may be necessary. They may not happen in the days and weeks after closing, but they frequently turn up shortly after. Ot...

Capital One and H&R Block have teamed up to offer you free access to H&R Block's Premium Product. But is it a good deal? We find out. If you're a Capital One customer, you may have recently been offered a deal for them to file your taxes electronically through H&R Block, free of charge. So what exactly are they offering, and is it a good deal? Even further, is it safe? Let's explore the details. What is the offer? Capital One is offering to pay for and file some of their customer's tax returns for free. Not all customers qualify, but Capital One launched a partnership with H&R Block on February 1st that will allow some customers to get the H&R Block Premium product for free. The offer has been showing up on customer's Capital One apps - usually when they go to review their statements. It appears that only some customers are getting this offer and there's no way to trigger it to show up. To see if you qualify for the free tax filin...

Despite growing student loan balances, colleges have not found ways to make tuition more affordable for students. A 2017 report from Experian found that student loan balances are increasing each year. In the past decade, they’ve risen a whopping 62 percent. The Consumer Financial Protection Bureau also released data saying that the number of borrowers owing $50,000 or more has tripled within the last 10 years. Student loans are increasing partly because of the rise in tuition, which continues to outpace inflation. Some universities raise tuition at double the rate of inflation, which makes a huge difference year after year. Why default rates are rising As troubling as the rise in student loan balances is, the rise in default rates is even more worrisome. The Federal Reserve found that the delinquency rate for student loans—meaning that a payment is more than 90 days overdue—was 9.3 percent. The next-highest delinquency rate was 4.6 percent for credit card debt, fo...

Credit cards get a lot of attention because of their rewards and sign-up bonuses, but there’s a treasure trove of value in the credit card insurance benefits also offered. If you’re on the fence about whether or not to get a credit card, you might think that the rewards, interest rate, or fees are the most important things to consider. But whether or not you plan to use a credit card regularly, it’s the insurance benefits that might make it worth it in the end. Credit card insurance benefits don’t get a lot of fanfare, but if you use them right, you get more value from them than you’d earn in rewards from using the card. Types of credit card insurance coverage and benefits Credit cards offer several types of insurance coverage, both for everyday purchases and one-off needs. Some are ubiquitous while others are rarer. Here are the main credit card insurance benefits you may come across: Price protection coverage This benefit essentially insures you ...

CD ladders allow you to benefit from the higher interest rates associated with longer-term investments, and they provide you with steady access to your money. Here are a few more reasons to consider this strategy. Certificates of deposit (CD) ladders have been around for a long time, though they’ve been largely ignored by many investors because they have a lower interest rate than some other savings products. But for younger investors, CD ladders can be a great way to plan and save for the future, because they offer liquidity, security, and the higher interest rates that come with longer-term investments. First things first: What are CD ladders? In financial terms—as opposed to circa 1990s musical terms—a CD is a certificate of deposit, a savings product with a fixed maturity date and fixed interest rate. One of the problems with CDs, however, is that to get access to the highest interest rates, you typically have to lock your money in for extended...