Tag: financial

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Financial

How to Write a Check: A Step-by-Step Guide

How to Write a Check: A Step-by-Step Guide

Writing checks is not as complicated as many newbies think it is. Our world has turned digital, this made writing a check almost a thing of the past. But, sometimes it is still something you will have to do.

If you have never written a check, you may need to learn how to fill one out. In this article, we will learn how to write out a check. Continue reading for our step-by-step guide.

Step 1

The first thing you will need to do is rip off the first check on the perforated line. If you haven’t used a check from your checkbook before, your check number in the top right corner will likely start at number 01.

Step 2

Once you have your check, you will need to fill out the date. The date is located below the check number in the top right corner.

Be sure to date it correctly, as a wrong date can void the check.

Step 3

The next step is to make the check out to whoever it is going to. This line may be filled out to the name of a person or a business. Check your spelling to make sure it exactly matches who the check is going to. This should be filled out on the first line under your name and address.

Step 4

underneath the line that you just completed with the name, you will have to fill out the dollar amount in words. For example, if the check is for $5, you will write it out as Five Dollars. If the amount doesn’t have change, you will write 00/100 at the end. This means zero out of 100 cents.

Step 5

You will also have to write the dollar amount using numbers in the rectangle box next to the written form of the amount. Again, if the amount is $5, you will write it as $5.00. Always be sure to add the zeros at the end. A completed check is harder to change. Scammers are everywhere, so you will want to protect yourself from forgery.

Step 6

At the bottom of the check, in the left corner, you will see a line, this line is for writing what the check is for. Let’s say the check is for a utility bill, you will write “Water Bill” or “Gas Bill”. This line is for your records, but sometimes can help the receiver process where the check goes.

This line can also be used for account numbers. Depending on who you are writing the check out to, they may have a special request of what they want to be written on the line. Be sure to find out exactly what is needed before turning in the check.

Step 7

On the opposite bottom corner, you will see a line for you to sign. This is where you put your signature verifying that you are the person who wrote the check. Be sure to use your regular signature that matches what the bank has on file.

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Credit Financial Real Estate

Buying a Home With a Partner Who Has Bad Credit

Buying a Home With a Partner Who Has Bad Credit

Buying a home is one of the biggest purchases you will ever make. It takes a lot of time and preparation to buy your first home. Sometimes our partner has less than good credit which can complicate the process.

If you have a partner with less than perfect credit, you may want to read below. We will discuss tips to make the buying process better.

Tip 1

If you are married and want the best interest rate on a mortgage, you can buy a home using only one partner’s credit.  Most states consider a property that is bought during a marriage to be both party’s responsibility.

The partner with the better credit puts the house in their name, using their income and credit. While you may not be able to buy as large of a house as if you used both partners’ income, you will get a better interest rate. It will also help your odds of approval.

Tip 2

Save up for a little while longer, and put down a higher down payment. The bank wants to see that you can be responsible for the mortgage payments. If you put down at least 20% as the downpayment on the loan, the bank will see that you have the ability to save.

A higher down payment means a lower mortgage amount, which can help if one partner has bad credit.

Tip 3

Wait until your partner raises their credit. Sometimes waiting is not fun. But in the end, it is worth it. Have your partner take a credit repair course to understand why their credit score is low. Once they understand why they have poor credit, they can begin to fix it.

Credit repair can be done by eliminating debt, paying credit cards and bills on time, and not applying for new credit. After six months to a year, your partners’ credit can be in a better place. Which will help with mortgage approval.

Tip 4

If your partner has bad credit, maybe you should look at buying a smaller home. If one person isn’t good with finances it may not be wise to buy a home that they can’t keep up with. You want to avoid foreclosure at all costs when buying a home.

Think of circumstances where your partner may be the one responsible for the home. If you lose your job or become injured, will your partner be able to take over a large home?

Tip 5

If you want to buy the home of your dreams, but your partner has poor credit, add another stream of income. The more money you make, the more likely you are to be approved for a home.

All Things Considered

With everything you know about the importance of mortgage preparation, you will want to find a plan that works best for you and your partner. You are not out of luck getting a mortgage if your partner has bad credit.

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Career Career & Education

Getting The Most From Your Employer 401k Match

Getting The Most From Your Employer 401k Match

We all want to maximize our money coming in each week. With our jobs and savings, we have more options now than ever to increase profits. Savings accounts accrue interest and our employers supply 401k programs.

But did you know that most employers also have a 401k match program? A 401k is a great way to plan for retirement. Since many employers now offer a match program, growing your retirement fund has never been easier.

A 401k match program is essentially free money. Every time you put money into your 401k, your employer puts money into the account as well.

How To Start A 401k Match Program

Not all employers will offer a 401k match program. But it is never a bad thing to reach out to HR and ask if they do. Ask your employer what options they have available for your 401k.

Some employers will offer a full 100% match, while others offer a 50% match. Depending on the company, you may be able to work up to a 100% match after a few years of employment.

Are There Limits To The Programs?

The most simplified answer to this is, yes. There are limits on 401k match programs depending on the rules set by your employer. No two companies are exactly the same, so your new employer may differ completely from your old employer.

Most employers match up to a certain percentage of your income. For example, let’s say your employer will match 100% of 4% of your income, and you contribute 5% to your 401k. Your total amount contributed would be 9%.

On the other hand, let’s say that your employer will match 50% of 3 percent of your income, and you contribute 1% to your 401k. Your total amount would be 1.5%.

The higher amount you put into your 401k, the higher the match will be. It is always best to put in at least the minimum percent of what they are willing to match. If they match 5%, you should put in 5%. Anything less is essentially losing money that could be offered.

Are Their Caps On My 401k Investment

Yes, there is a cap on your investment. The only drawback to a 401k in my opinion is the limits set on how much you can earn each year.

For 2022, the maximum amount you can contribute is $20,500 for the year. If your employer has a 401k match program, the limit increases to $61,000. If you want to save more money for your retirement you may want to consider an IRA account.

Don’t Exceed Your Limits

Since there are limits on how much you can contribute to your 401k each year, you have to be aware of how much is going into the account. You do not want to exceed your allowed amount because you may be taxed twice on the amount earned. Reach out to HR before tax day to fix the issue and avoid double taxation.

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Financial Loans

Interest Rate Hikes May Come Very Soon

Interest Rate Hikes May Come Sooner

Interest rates, oh interest rates, how we wish you were low forever. But this is not the reality of how interest rates work. And soon, interest rate hikes may grow higher and higher.

During the start of the pandemic, rates were lowered to help grow the economy. If interest rates are low, more people are likely the make purchases using their credit cards or buy homes.

Now that inflation has pushed our economy to the brink, it is expected that interest rates will grow as well. Inflation is at an all-time high, growing more in one year than the previous 30.

It is predicted that interest rates will be raised 3 times during the year 2022. Some people predict that as soon as March hits, rates will begin to climb. They feel the economy has recovered enough that it is time to begin the rate hike.

What Causes Interest Rate Increases?

Interest rate increases are caused by supply and demand. The more people need or want credit, the higher the rates are. The fewer people need or want credit, the lower the rates are.

With the distribution of stimulus checks and government aid during the beginning of the pandemic, people didn’t need as much credit. They were more mindful of their purchases and had the extra cash to buy their necessities.

Now that the government has stopped funding its people, they are back to a new sense of normalcy. Applying for credit and such as they would have before. This means it is time for rate hikes.

Is Inflation A Threat To Our Economy?

Inflation has risen 7% during 2021, and there are no signs that it is stopping anytime soon. Most experts claim that prices will not go back to pre-pandemic levels, and this is our new normal.

Some experts believe that prices will continue to climb well into the year 2024, and with current rates of inflation, that could be devastating for some communities.

Because of the high inflation rates, the cost of rent and other goods are through the roof. These prices are making the average person look for other means to have sustainable living.

What Happens If Interest Rates Increase Too Fast?

If they increase too fast, it could impact the global economy. Many believe it is risky and could be a better solution to keep them low for a while.

Central banks set a standard for rates that are used for loans and debts. When rates skyrocket, fewer people will meet the demand of purchases. Higher interest rates mean a higher cost of goods, and when an economy is already struggling it can be hard to keep up.

Keep In Mind

With high levels of inflation, comes various unforeseen financial drawbacks. We must increase interest rates in order to keep the supply chain satisfied. When we keep rates low for a prolonged amount of time it can hinder the growth of the economy.

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Financial Tax Services

Selling Cryptocurrency to Lower Taxes?

Selling Cryptocurrency to Lower Taxes?

Unless you have been living under a rock, you know about or may even own Cryptocurrency. Cryptocurrencies have been around for about a decade but only recently have become mainstream. If you are thinking about selling your Crypto early in order to lower your taxes, you may want to gain more knowledge before doing so.

When To Sell Your Crypto

Selling Crypto is something that is similar to selling a stock. You buy it at a certain price and sell it for a profit. That is the ideal situation, but sometimes when the market is bearish, you sell early at a loss in fear of losing your full investment.

When you sell your Crypto too early, you will have to pay Short Term Capital Gains taxes, as Crypto is taxed as an asset, not a stock. If you hold and sell your Crypto for less than one year, this tax will apply.

If you choose to hodl, a term meaning to hold your crypto asset for longer than a year, you will not be taxed as a short-term capital gain.

Most “hodlers ” have high hopes for the crypto they choose.

If you choose to sell your crypto after the one-year mark, you will be subject to long-term capital gains taxes, but they are not as steep as short-term.

Does A Bull Market Matter?

A bull market is when the crypto is flourishing and attaining new levels. 2021 was a bull market, with bearish cycles. This means that it moved upward to higher and higher amounts, some reaching their all-time highs. The bearish cycles came into play when those high levels retraced back to a lower amount.

Most cryptocurrencies ended the 2021 year higher than the previous year but not as high as the mid-may bull cycle. Because the second half of the year has bearish tendencies many people became afraid and sold at a loss.

Should I Sell At A Loss

It is up to you whether or not you want to sell at a loss. The crypto market is volatile and fluctuates a lot throughout the year. Selling at a loss on a short-term investment means you could be charged taxes on your loss.

Also, it is possible that the crypto that you sell could rebound quickly and you could miss out on buying it at a good price.

Should I Hold On To My Crypto

If you have the patience to hold your crypto, in hopes that it will one day may you wealthy, this may be the best way to hold off on paying taxes. Especially if you don’t want to pay short-term capital gains tax.

In Conclusion

Whether you bought Bitcoin, Etherium, or another crypto asset, you want to keep track of how much you bought each crypto asset for. You will also want to keep track of when you purchased them, and if you choose to sell, you will want to know if you have held the asset for a year or longer.

The better you are at keeping track of your cryptocurrency the easier it will be during tax season.

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Financial Savings

Set Up Automatic Deposits To Help Save Money

Set Up Automatic Deposits To Help Save Money

We all want to save more money for a rainy day. Sometimes though, when money is in our checking account, we frivolously spend it without a second thought. Then, when a rainy day comes we have no savings. 

Sometimes we need help with separating money that we spend for everyday use and money that we should be saving. If you want to learn how to start saving money without having to manually transfer it into your saving account, continue reading below.

Check With Your Employer For Automatic Deposits

Talking with your employer is the best first step to set up automatic deposits. Did you know that you can have a percentage of your paycheck deposited into a savings account each week while having the rest put into your checking account? 

Putting part of your money into a savings account can keep you from using it. Out of sight, out of mind. Better yet, put it into a savings account that accrues interest for higher yields and faster results.

Use The Round-Up Method To Save Money

A new way to save money is the round-up method. To participate in the round-up method you will need a participating financial institution. The concept of this way of saving is simple. Let’s say you make a purchase for $3.85, the purchase would be rounded up to the nearest dollar. The $.15 that it would take to reach the next dollar amount would be put into your savings account.

The purchase would actually be $4.00, but since the difference would be put into your savings, you would not miss it. That is up to .99 per transaction. After a few purchases, you could already have a steady amount of money saved. 

Keep in mind that these are apps that provide this service. You can’t do this with your regular brick-and-mortar bank. 

Check Your Bank

You can reach out to your bank and ask them if they offer automatic bank transfers. If they do, you can set it up so that a certain amount of money goes into a savings account each week or month. 

Most banks also offer the option of sending money to other banks. If you have your primary account as your checking, and your savings with another bank, it should be no trouble sending money between the two.

Things To Be Aware Of

There are a number of things to be aware of when setting up automated payments. Most of them relate to having sufficient funds in your account.

  1.  Always make sure you have enough money in the bank to cover your purchases and the automatic deposit.
  1. Always ask your bank if there will be any fees associated with the automatic deposit.
  1. Don’t overstretch yourself so that you have too many deposits coming out of your account at once.

The Bottom Line

Sending money has never been easier. Technology has improved the world of banking tremendously. You no longer need to drive from one bank to the other to deposit money for savings.

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Financial Savings

5 Financial Goals to Make This Year

5 Financial Goals to Make This Year

Saving for things that are currently out of your budget is a wise choice. Whether you are 10 years old and want a bicycle or an adult who wants to buy a new car, saving would be the best goal. But, as you grow up financial management becomes a complicated activity.

So, if you find financial management challenging and want to figure out ways to achieve the unachievable, then you should start by setting up goals. When you have goals in your mind, you can easily stick to a strategy, despite a tight budget. Here are some financial goals that you should include in your New Year’s journal and learn how to achieve them:

1.     Build an Emergency Fund

Normally, people think of an emergency fund as a short-term financial goal. But, that is not entirely true. Emergency funds have long-term financial benefits as well. The emergency fund works as a money management tool. It can help you through medical expenses and job loss.

To create a long-term emergency fund you need to set saving goals. This doesn’t mean that you should have a single large goal. Rather divide this goal into smaller ones to keep a track of them. Start with small but regular contributions. Also, limit your monthly expenses and automate your savings in a separate bank account.

2.     Manage Credit Card Expenses

Interest charges negatively and largely influence your cash flow. Therefore, you should reduce your credit card use. Furthermore, you shouldn’t use a credit card unless you know how you are going to pay. If you have trouble paying for the use, try credit consolidation.

3.     Reduce Your Expenses

When you learn how to manage your expenses, you get complete control over your finance. You should set a goal to spend less than you earn. This means that you need to avoid using a credit card. When you limit your expenses, you get plenty of income for investment, saving, and paying off debt. At first, differentiate between needs and wants. You cannot achieve your financial goals without recognizing extra expenses.

4.     Quit Any Addiction

This might not seem like a financial goal, but you can save a huge amount by quitting any addictions. Whether you are addicted to cigarettes or alcohol, you are wasting your money. Addiction works like a financial parasite that eats up all your money. However, when you quit your addictions, you can add a significant amount in savings. To quit any addiction you need to distract your mind whenever you feel the urge to so end the money on it.

5.     Develop Skills

Adding new skills to your portfolio can lead to large payoffs. If you are a student you can attend workshops and conferences and learn new ideas to earn money. However, if you work in an office, you can take additional training and become an expert. Developing new skills open new opportunities and doors to earn income.

Conclusion

For many people, financial management seems like an irritating task. Keeping track of your income and expense requires more time. But, setting your financial goal will improve your future. If you want to be independent when you get old, you should take control of your finance from now.

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Debt Financial Loans

Can’t Pay Rent? Here’s Where To Find Help

Can’t Pay Rent? Here’s Where To Find Help

Hundreds of thousands of American tenants lost a critical legal safeguard when the countrywide eviction ban was repealed.

The United States Supreme Court recently overturned an eviction restriction. This now means that landlords throughout the nation to proceed with evictions without restraint.

The Eviction Ban is Over

Even while the federal moratorium was in effect, the eviction prohibition was not standard across the board. The moratorium was not enacted in every state in the United States. And not all tenants were aware of the order or how to benefit from it. Therefore, it didn’t reach as many people as it should have.

Although the federal eviction moratorium is no longer in effect, if you have been unable to pay your rent or your utilities due to the epidemic and are facing eviction, you may be eligible for a personal government bailout.

Rent Help Still Remains

Despite the Supreme Court’s decision to overturn the federal eviction moratorium, another program remains. A first-of-its-kind, $47 billion government rental assistance program, which covers energy bills and up to 18 months of rent for tenants who have been unable to pay due to the pandemic’s financial effects, is still in place.

The federal program has been hampered by regulations and rules and red tape and has been far too slow to get off the ground since its creation last year, but authorities are working to make it simpler for hard-hit tenants and landlords to collect money they are entitled to. There are many tools available to assist individuals in determining where and how to apply.

How to Get Rent Help

The Consumer Financial Protection Bureau has built a website where people may input their location. This way they can get contact information for the local organization that administers the assistance in their area.

Another website, run by the nonprofit National Low Income Housing Coalition, provides details on the 493 state and local agencies that distribute the aid, including which agencies allow renters to simply state that the pandemic has caused them financial hardship and that they have lost income, or that they meet other eligibility requirements. Applicants in certain states are required to provide papers. This includes leases and pay stubs to establish that they fit the criteria.

According to existing rules, roughly 750,000 individuals will be evicted throughout the country before the end of the year.

Conclusion

The rental aid program is the last remaining enormous protection for American renters now that the larger eviction ban is over. And many of the remaining state eviction bans are supposed to end by September. With evictions allowed to resume in an estimated 90% of the country by October, the need for financial help to millions is needed just as much now as before.

If the present rate of rental aid distribution continues, 1 million to 2 million families will be behind on their rent and without help by the time the remaining state eviction moratoriums expire.

Thankfully, the federal assistance program exists- although many people don’t know of it. People are calling on the federal government to do even more. They want them to assist people but so far there are no plans in Congress for such help.

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Debt Financial

Ally Bank Does Away With Overdraft Fees

Ally Bank Does Away With Overdraft Fees

One of the most annoying features of banking in America has been eliminated by one financial institution. And it’s already receiving rave reviews from customers and promising a change for the entire industry. Overdraft fees are no longer charged by Ally Bank to any of its clients. Starting in April 2020, the bank will temporarily eliminate certain overdraft costs due to COVID-19 problems. This is a more permanent change for many big banks, and it is the first of its sort.

Ally CEO Jeffrey Brown stated in a message to customers: “Overdraft fees are a source of frustration for many consumers, but they are especially burdensome for others. It’s past time to put a stop to them.”

This is fantastic news for clients, and it might herald a sea shift for giant banks. Those who have long profited handsomely by charging tiny fees to large customer bases. Overdraft fees have long been seen as one of the most inconvenient and inevitable aspects of banking in the United States, but that perception may be changing.

What is an overdraft charge, exactly? Consider the following scenario: you write a check or are charged for a regular online payment, but your account balance is insufficient to cover it. Banks will often charge you an “overdraft fee” if you force them to pay the amount for you.

Why No More Fees?

Overdraft fees alone brought in $4 billion for America’s top four banks: Chase, Wells Fargo, Citi, and Bank of America. They make a lot of money only from overdraft fees, as you can see.

A bank may handle a rejected check for less than $1  and sometimes even less than that. Banks have progressed beyond passing on those costs to charging a huge, profit-driven multiple of their own costs.

Lower-income families are more likely to be harmed by these fees since they are more likely to be short on cash. According to a poll released recently, those who lost money during COVID-19 paid more than four times as many fees to institutions.

According to the Consumer Financial Protection Bureau, 5% of checking account customers overdraw their accounts more than 20 times each year.

Ally has consistently been called one of the finest online banks in the country. They receive high marks from customers across the board. Clark likes online banks over conventional banks, along with credit unions, since the excellent ones have low costs.

This isn’t the first time Ally Bank has taken such a step. Fees were removed by Discover Financial in 2019. Some banks that claim to have eliminated overdraft costs, simply do not accept overdrafts. Others provide “overdraft protection.”

Consumers will be pleased with Ally’s decision, and it may be a splash that will reverberate across the banking industry.

Overdraft fees have long been seen as part of the price of doing business with banks. However, this change with Ally shows that might not be the case much longer. After the wonderful reaction Ally got, it is likely that other banks might follow in its foot steps and eliminate their own overdraft fees soon.

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Financial Savings

Budgeting: 7 Things That Will Hinder Your Finances

7 Things That Will Hinder Your Finances

Coffee is widely spent on, especially if it’s a Starbucks. One cannot go by the day without coffee. While, it has become a support system in our lives, it is also one of the causes of wreaking chaos in our financial management. That being said, you cannot just manage your finances by cutting back on coffee. Here are 7 things that are possible hindrances to your finances:

1.   Neglecting budgeting

This should be a no-brainer. You can watch your money being spent but you don’t know where half of it went. When you start budgeting, you will know where your money went instead of just wondering about it. This will also help you in avoid buying unnecessary things.

2.   Working on a consistent salary

You need to start thinking of yourself as worthy enough to ask for a raise. If you have been working in a company for almost 3 years and you are still on the same salary package, it affects your finances. With inflation everywhere, your stable income won’t be of any use to you unless you buck up and ask for a raise. 

3.   Buying things you cannot afford and budgeting

Do you really need that car? Or a new place to move into? All of these decisions impact your finances. Buying things that give you no value can be cut back. The money can instead be put in a savings account. If you are taking loans just to fulfill your materialistic desires, it will affect your life. You will eventually be caught up under the pile of loans.

4.   Remove your Starbucks addiction from your finances

You don’t need to give up on coffee altogether. However, you can simply cut back on the number of coffees you have every day. If you have 4 cups of Starbucks, cut it down to three, two, and then one. You will notice how much money you save just by cutting back.

5.   Ignoring credit

You need to build up your credits. If you don’t focus on that, you can’t qualify for easy loans and low interest rates. A good credit history and score can help your finances in a number of ways. Building credit is not a day’s work but takes years to do so. So, start building your credit for your financial benefit.

6.   Not setting your financial goals

Not setting your financial goals also impacts your finances. You can get into spending loads without even thinking about the future. Set a savings goal every month. This will help you in spending money within your set limit. This will also help you to achieve future financial goals.

7.   Taking the same route

This might sound funny, but changing your daily route also helps. Take a route that doesn’t have Starbucks right around the corner. It will automatically help you control your urge to buy coffee every time you pass around it. Believe it or not, this will save you money and create a positive impact on your finances.

Saving up and helping your coffee addiction are parallel concepts that are linked together. So, don’t give in to your addiction and save your finances!