FYI Finance
Christmas Shopping, Without the Debt
Do you treat your Christmas spending as an annual budget item? If yes is your answer, then you’ll ahead of the game and do not find yourself with inflated credit card bills in January. Did you say no? You wait until Thanksgiving to start thinking about your shopping. If this is the case, you’re going to have a January holiday hangover every year. In other words, you’ll find yourself digging out of debt at the beginning of every year.
First make a contract with yourself. What do I mean by making a contract with yourself? Select the maximum amount you can spend for Christmas and stick to it. Sounds like you need a budget doesn’t it.
Well lets look at ways to curb you Christmas spending:
1. Create a budget.
If you are not setting aside a monthly amount, then you need to start atleast two months prior to Christmas making a list of holiday-related expenses you anticipate. In addition to including gifts, you need to consider travel, Christmas functions, clothes for entertaining, Christmas cards, decorations and hosting expenses.
2. Make a gift list.
Write down the names of each person you need or want to buy a gift, including babysitters and teachers. Set a limit amount for each person on the list. Allow a cushion for unexpected gift expenses. Add the amounts up and make sure you don’t break your contract. If you’re really stressed for cash, is it necessary to buy a gift for each family member? For the adults why not suggest exchanging names. You can also invoke a “make it or bake it” rule. Set a dollar limit per person. Another idea as gifts is to give “coupons” offering a special service you can provide. Some coupons could be for personal services, such as babysitting or running errands. Most adults will appreciate this idea. Children are excited byy opening gifts.
3. Do your research.
Take the time to perules the local retail stores newpaper inserts and go online and check out the cost of an item. www.shopping.com and www.shopping.yahoo.com are helpful websites for product comparison shopping. Also, check out the www.savvy-discounts.com website.
4. Make holiday spending a family project.
If you’re having financial problems, discuss necessary cutbacks in your spending this year. If children understand cutbacks are necessary, it can help ease disappointment and hopefully they’ll adjust their expectations for name brand pricey items. Discuss the need to skip fancy parties and recycle Christmas decorations.
Some people justify putting all of their Christmas shopping on a credit card to obtain a grace period normally offered by credit card companies at holiday time. As we all know life interventions happen and you’re stuck with a big credit card bill at the beginning of the year. If you know you cannot pay all of the purchases off in 30 days, pay cash. Beware of store charge cards. Normally at Christmas time, stores will offer 10% discounts for opening or using your store charge card. Again, if you cannot pay the balance in 30 days, watch out. Store charge cards normally have an interest rate of 21% and if your purchase is not paid off in 30 days, the 10% discount at the time of purchase is not worth it.
Retiring? Watch Out for Investment Scams
If you're planning to retire soon, you have a lot to anticipate: more time with your family, the chance to travel, the freedom to pursue your hobbies and so on. Yet, there's one thing you'll want to avoid during your retirement years: investment scams.
Unfortunately, retirees are the number one targets for investment con artist. Unscrupulous stockbrokers and financial planners do engage in abusive practices, and they seek out the elderly. However, you are far from defenseless against this kind of behavior. You can avoid being "scammed" by following these suggestions:
Ask for credentials, background and references.
As amazing as it may seem, anyone can call himself or herself a "financial planner," "financial advisor" or similar term. Before working with anyone, ask for credentials, and find out how this person plans to work with you. You may want to ask these types of questions: " "What securities licenses do you hold?" " "How long has your company been in existence?" " "How are you compensated?" " "How frequently will you communicate with me?" " "Which methods will you employ to determine if an investment is suitable for my risk tolerance and individual needs?" " "Can you give me the names of some references?"
If you are dealing with a reputable financial professional, he or she will be happy to answer there and other questions. But if you notice someone acting nervously or evasively when you pose these inquires, break off communication instantly; you simply cannot afford to trust someone who is less than 100 percent forthcoming with you.
Don't be overly cooperative at first encounter.
If a stranger calls and ask for personal or financial information, be suspicious. Con artist are good at winning their way into people's confidence; furthermore, if you are a polite individual, you may feel it's rude not to listen. This combination of their smooth talk and you good manners can be dangerous. You are under no obligation to listen to anyone on the phone; if you suspect you are talking to a predator, simply hang up or ask to be placed on a "do not all call" list.
Never say yes in "you must act now" offers.
If you receive an investment offer that "must" be acted up immediately, walk away - fast. Any offer that sounds too good to be true. Legitimate investment opportunities will still be around tomorrow and next week.
Always stay in charge of your money.
Never work with anyone who is eager to take "total control" of your money. True investment professionals will make recommendations base on your needs, communicate with you regularly and involve you in every step of the investment process.
Take action immediately if you have trouble retrieving principal.
Unless you are investing in a fixed-term vehicle, such as a bond, you should be able to receive your funds or profits within a reasonable amount of time. If the broker you are working with "stalls" you when you say you want to put out your principal or profits, report him or her to securities regulators, such as the National Association of Securities Dealers. By taking these steps, you can help avoid being victimized by con artists. So, stay vigilant, seek out honest advice and enjoy your retirement years.
Bernard Cross
Investment Broker