It’s hard to deal with these situations because many seniors prefer to remain in charge of their finances throughout life.

As a result, as their faculties decline, they become easier marks from the unscrupulous who would get them to make outrageously expensive purchases, or involve them in investment fraud schemes.

While these acts of financial elder abuse are discouraging and you need to watch out for scammers from the outside, you also need to be on the watch for signs that caregivers and family members may be perpetrating some forms of financial elder abuse. The MetLife Mature Market Institute found that trusted caregivers/family members are involved in cases of financial elder abuse.

How do you know if you or someone you know has been victimized by financial abuse? There are a lot of free tools you can use. One of the easiest is to use your free credit report.

Check Credit Reports for Elder Financial Abuse >>>

Signs of Financial Elder Abuse

It’s important that you be on the lookout for signs of financial elder abuse. First of all, realize that it can be difficult to pinpoint cases that seem rather innocuous. Some family members may not even think of what they are doing as financial abuse. They may take a valuable object (without permission) that they feel they “deserve” and that will come to them after a parent dies, or they might dip into a joint account a little too often in “emergency” situations and use some of the money that belongs to the senior.

Realize that these actions constitute elder abuse. Here are some of the signs that a senior you know may be a victim of elder abuse:

• Valuable objects disappear;

• Someone new enters the picture and begins isolating the senior from friends and family;

• Large credit transactions;

• Suspicious new joint accounts opened;

• Excitement over paperwork that promises increased Medicare or Social Security benefits once personal information is turned over to a representative (find out how this “representative” contacted the senior);

• Constant collect calls from overseas numbers (we had to change my grandparents’ number since they kept seeing charges for calls from Jamaica, Russia, and Southeast Asia);

• Large withdrawals of cash;

• Checks made out to cash;

• An increasing amount of small “subscriptions” are being automatically deducted from the account;

• The signature on checks looks different from before; and

• Signs that the senior is afraid of a caregiver.

All of these are signs that someone might be abusing a senior financially. Additionally, watch for signs that the senior becomes defensive suddenly, and doesn’t want to talk about his or her financial situation. This can be a sign that he or she is aware — and embarrassed — that he or she fell victim to a scam. While it isn’t pleasant to go through your parents’ or grandparents’ finances and look for signs that something is wrong or watch for signs that someone is taking advantage of them, it needs to be done. You need to stop it as quickly as you can before it gets any worse.

Internet Scams

Sadly, the internet has opened up a million different avenues for crooks to scam elderly people.

Internet scams against the elderly can take a lot of forms, but a lot of them revolve around either health insurance or Medicare. There are millions of Americans on Medicare. Just about anyone over 65 is going to be a part of Medicare. That’s a lot of potential victims.

If any Medicare representative ever needs to contact the policyholder, they will never use email. Do not provide any personal Medicare information through email.

Another common scam is requesting seniors to update their tax or IRS information. These emails could request Social Security numbers claiming financial penalties if the information isn’t updated.

Another avenue scammers take is investments and savings accounts. They could claim to have “investment opportunities” or need bank information to access money.

Regardless of the claim or what the email says, nobody should ever send personal information through email. If you ever receive an email you are worried about, you can always call the BBB. Always do more research before sending financial info.

How to Report Financial Elder Abuse

Once you suspect that financial elder abuse is taking place, it’s time to consider your options. First of all, check with your city or state to find out how to contact Adult Protective Services. Report the abuse to Adult Protective Services, and then complain to the state attorney general’s office. You should also file a police report.

You might also need to check into local courts (probate or some sort of civil court) if someone is abusing power of attorney, or if a trustee is perpetrating the financial abuse. You might need to challenge someone’s role as conservator or guardian in order to get the abuse to stop; it might even be necessary to have a temporary restraining order issued so that the abuse stops while you gather the necessary evidence.

A good resource for understanding elder abuse, including financial abuse, is the National Center on Elder Abuse. You want to ensure that your loved ones are protected and that their money lasts long enough to properly meet their needs over time. As a result, it’s important that you watch for signs that someone is taking financial advantage of the seniors in your life, and take action if there is evidence of financial elder abuse.

Conclusion

The financial abuse of the elderly is a distressing reality, where seniors, desiring independence, become vulnerable targets to both external scammers and, sadly, even trusted caregivers or family members. Monitoring credit reports and being vigilant about sudden changes in a senior’s financial habits are crucial. Internet scams targeting seniors have multiplied, emphasizing the need for caution with personal information. For those suspecting financial elder abuse, timely reporting to Adult Protective Services and legal intervention is essential. Educating oneself, and using resources like the National Center on Elder Abuse, can safeguard our seniors, ensuring their financial well-being and dignity.

The post How to Detect and Report Financial Elder Abuse appeared first on Good Financial Cents®.

FICO scores range anywhere from 300 to 850. Typically, any score above 650 is considered “great.” On the other hand, if your score is under 620, then you’re going to have problems getting good rates on loans.

Let’s talk about what goes into your FICO score. There are several parts, and each of them has a different weight. It’s made of the number of open accounts you have, how long you’ve had a credit history, new credit accounts you have, and if you make payments on time.

What Is the FICO 8 Credit Score?

Even though it was introduced in 2009, it has taken almost two years to really be adopted by lenders and other creditors.

However, now the FICO 8 model is catching on more widely, and you can expect to see some changes in what is important to your credit score.

The major credit bureaus have been using it, and now a number of banks, credit card issuers, and others are using it. FICO 8 is picking up steam, and this means that you should be aware of what has changed.

According to myFICO.com, there are four main changes to the formula that can mean a change to your score:

1. Isolated Late Payments: One of the biggest impacts on your credit score is your payment history. A late payment can mean real damage to your FICO score.

The new system, though, accounts for aberrations in what is normally a good payment history. If your other accounts are in good standing, the FICO 8 score will not be as negative as it might have been before.

2. High Credit Utilization: If you are close to your credit limit, it will hurt your FICO score more than it used to.

3. Collections Account with Small Balances: Instead of dinging you for small collections accounts, FICO 8 now ignores collections items that feature an original balance of less than $100.

4. Authorized User: Continues to look at authorized users on credit accounts. This helps students and spouses build a credit history through the shared management of a credit card account.  If one person has a great credit card with little usage they can pass some of that history off to their family member.

Lenders and other creditors (as well as insurance companies) sometimes make their own tweaks to the scoring formula created by FICO. The FICO 8 score may used as a foundation, but if a lender has some items that are considered more important, they may be emphasized more.

Get Your Credit Report For Free >>>

What’s the Difference?

Unlike the original FICO score, the range is slightly different. The score ranges from 250- 900 (FICO is 300 – 850). According to several studies, both scores TEND to be pretty similar, but there are some cases when they can vary.

Just because you have a poor FICO score doesn’t mean your FICO 8 score will be just as bad, but there is a high chance.

As a consumer, this can be very beneficial. Back in the day, if you missed one credit card payment, it could put a serious dent in your FICO score, even if the rest of your record is spotless.

Pinpointing Consumer Behaviors

The point of FICO 8 is, of course, to better profile consumer credit behaviors.

FICO 8 is designed to emphasize different behaviors more accurately than in the past, and it is also designed to take more information into account, supposedly building a more accurate picture of your consumer credit behaviors for use by lenders and others.

It is worth noting that FICO (and other credit scoring models) are constantly changing. Different tweaks are added regularly so that the vast amounts of information available about financial habits can be used to create a profile that can be reduced to a single three-digit number.

In addition to having the FICO 8 scoring model in use now, there are additional credit scoring models.

These include formulas aimed at mortgage borrowers, bank deposit behaviors, and even a score that takes into account that you might not use credit very much.

Be aware of what FICO 8 means for you, as well as what future changes to the FICO scoring model might mean. Even if you don’t pay close attention, there are some things you can do, in general, to help your credit score — whether the FICO 8 model is used or not.

Make your payments on time and in full, pay down your credit card balances, and be careful about applying for additional credit.

Bottom Line: FICO 8 Score Explained

The FICO 8 credit score, introduced by the Fair Isaac Corporation, offers a more nuanced assessment of credit behaviors than its predecessor.

Notable changes include less penalty for isolated late payments, greater impact from high credit utilization, and leniency for small collections balances.

The FICO 8 scale ranges from 250-900, different from the original 300-850. It’s designed to paint a clearer picture of consumer credit habits, so it’s essential to understand its implications and maintain healthy financial behaviors.

The post FICO 8 Credit Score appeared first on Good Financial Cents®.

There are several factors that go into deciding what your credit score is. Everything from your credit history too if you make payments on time. One factor that is included in your credit score is credit inquiries. It’s a simple factor, but it could be the difference in getting a lower interest rate.

You’ve probably heard that applying for a loan can affect your credit score.

Indeed, many realize that when a creditor looks into your credit in order to make a decision about a credit application, it can have a negative impact on your credit score. The fact that some inquiries into your credit can hurt your score has led to the myth that all credit inquiries can hurt your credit score. The truth is that there are two main types of credit inquiry: “Soft” and “hard.” Only the hard inquiry is damaging to your credit score.

It’s important you track your credit score. There are some free and easy ways to see your score.

See Which Credit Inquiries Are On Your Credit Report >>>

Soft Credit Inquiry

It is important to realize that when you check your own credit report, it will not negatively affect your credit score. Your own inquiry is known as a “soft pull.” It’s made in order for you to keep track of your credit activity, and check for accuracy. Since you aren’t applying for credit when you are just checking your own report, the credit bureaus and credit scoring models won’t hold it against you.

Another type of soft inquiry is made when companies check your credit history in order to send you “pre-approved” offers. These types of inquiries are known as “involuntary,” since you didn’t ask to have your credit checked. So, even though a company might have viewed your credit history and/or score to determine whether or not to send you an offer, these inquiries will not negatively affect your credit score.

Another common type of soft pull is when you go through a background check, this will include employment verification. Even if you have to go through a dozen background checks, it won’t kill your score.  

Hard Credit Inquiry

On the other hand, there is the hard credit inquiry. Sometimes these are called “voluntary.” “Hard pulls” result when you are applying for credit or some services. Credit card issuers, mortgage brokers, and other lenders institute a credit request at your behest, and this is reported on your credit history, showing that you are looking to obtain new credit. Many cell phone providers, cable/satellite TV providers, and others will perform a hard credit inquiry when you apply for these services.

A hard inquiry can hurt your credit score. However, the harm done is usually relatively small. While credit scoring formulas are kept mostly secret, it is estimated that credit inquiries make up no more than 10% of your credit score. The most important factors are your payment history and the amount of debt you have.

However, some lenders become concerned when they look at your credit report and see several attempts to obtain new credit in a six-month period of time. (Although most understand if you have a cluster of inquiries over a few days as a result of shopping around for a low mortgage rate.)

Reading Soft and Hard Inquiries on Your Credit Report

The credit bureaus don’t label credit inquiries as “hard” or “soft” on your credit report. Different language is used:

• Experian: “Requests viewed by others” represent a hard pull. Creditors can see these when evaluating you for creditworthiness. “Requests viewed only by you” represents the soft inquiry. These are credit inquiries that are available for your information (so you can see which companies are checking your credit without your request), but aren’t visible to creditors evaluating your credit application.

• TransUnion: “Regular inquiries” are those that are equivalent to hard inquiries. They will remain on your TransUnion report for two years. “Account review inquiries” are the soft pulls made by you or by companies interested in sending you marketing materials.

• Equifax: “Inquiries in the last 12 months” are hard pulls that were performed at your request. “Inquiries that do not display to companies and do not impact your credit score” offers a pretty straightforward explanation of a soft pull. Equifax also has one more designation, unique to the credit bureau.: “Companies that requested your credit file.” This is a list of companies that asked for your file, so you can see who is interested in you. This information is also available to creditors looking to evaluate you, although its impact on your credit score is unknown.

For the most part, if you are responsible with your money and credit decisions, make payments on time, and avoid applying for a great deal of debt, credit inquiries are unlikely to have a large impact on your credit score.

Should You Avoid Hard Pulls?

After hearing about the dangers of hard inquiries, some consumers are nervous about having their credit score pulled. There are a couple of ways you can minimize the damage as much as possible.

Let’s say you’re shopping around for the best rates on a mortgage loan. Each mortgage loan company might pull your credit. As long as all of those pulls are within a short time period (a couple of weeks), they won’t destroy your credit score.

This is a guest post Miranda Marquit is a journalistically trained freelance writer and professional blogger working from home. She is a contributor for Mainstreet.com, Personal Dividends, and several other sites. Miranda is not affiliated with or endorsed by LPL Financial. The opinions voiced in this material are for general information and are not intended to provide specific advice and/or recommendations for any individual.

The post Will Credit Inquiries Hurt Your Credit Score? appeared first on Good Financial Cents®.

A huge piece of our judicial system includes being able to have a trial of your peers rather than letting the government be judge, jury, and executioner. Yet many people try to get out of jury service simply for convenience and that is a true shame.

Some people want to know how to get out of jury duty because they fear being fired from their job for missing work, but your employer cannot fire you for missing work due to jury duty.

However, there are those who have legitimate reasons to get out of jury service.

If you are wondering how to avoid serving on a jury, here are some of the best ways to get out of jury duty:

How to Avoid Jury Service

If you have a legitimate reason to find a way to get out of jury duty, here are a few options.

Show You Have a True Conflict of Time

You can get out of jury duty if you can prove that you have a true time conflict on your hands.

If you have a hard time finding someone to watch your children, for instance, or if you can’t miss work, these are items that can provide you with an excuse many judges will accept to excuse you from jury duty.

• Use your student status: It’s also possible to get out of jury duty just by asking for a different date. If you are a student and you are concerned about school, or testing, you can ask to report at a different time.

• Ask for an earlier date: In many cases, if you ask for an earlier date to report, jury lists can be made up already. Another option is to ask for a date that falls during the holidays.

• Aim for December: As a student, it makes sense to ask to serve during Christmas break. Many trials are postponed during the holidays, so this request could result in you being able to get out of it altogether.

Avoid Jury Service Due to Poor Health

Another conflict might be a medical issue. Bring a doctor’s note showing that you have a health problem and that there is a good chance that you can avoid jury duty. This is especially true if you have what might be considered a mental illness.

Being able to show that you are unable to meet the obligations of jury duty can be a great way to get out of jury duty.

Get Out of Jury Duty by Demonstrating Financial Hardship

This one is a tough sell, but if you would sincerely suffer financially if you missed a few days of work, a judge may be sympathetic.

Your best shot at exemption is to bring plenty of documentation to support your case, like pay stubs and last year’s tax return.

Keep in mind that this approach is only likely to work in extreme cases of financial duress. If it’s simply a case of preferring not to miss work, you shouldn’t attempt it. A court of law is the last place you should lie or exaggerate your circumstances.

Best Tips for Getting Excused from a Jury

Even if you go down for jury selection, there are ways to get out of jury duty by being excused. Once again, you don’t want to lie. You are usually under oath and absolutely shouldn’t risk the consequences of lying.

However, there are ways to imply that you might not be a juror that the attorneys for one side or the other are looking for. Some of those ways include:

• Bias: While we all have biases, if you can indicate that yours is one that you will have a hard time overcoming for the sake of the trial, you are likely to be excused.

• Expert: If you act as though you are an expert on the facts of the case, many attorneys will want to excuse you. Most attorneys are more interested in jurors who are relatively new to the situation.

• Relatives: Do you have a close relative that works in law enforcement? If you have a connection to the case somehow, or a connection to law enforcement, many attorneys will decide to excuse.

• Rebel: There’s a fine line between coming across as a smart juror who can follow directions and make a decision, and being a rebel. If you indicate that you are a free thinker/free spirit, or that you have a hard time following the rules, you might be dismissed.

• Attitude: Sometimes, just having a bad attitude can be enough to get your dismissed. If you are going to be negative and difficult the whole time, the judge and/or attorneys might decide to send you on your way.

• Extra enthusiasm: Believe it or not, but if you are especially enthusiastic about serving on a jury, there is a good chance that you will be dismissed. If you seem overly interested in being on the jury, there might be some question about whether or not you are biased, or have an agenda.

Using any of the tips above may very well get you excused from serving on a jury. If you don’t feel bold enough to act biased or pretend to be an expert, excessive optimism might do the trick. Regardless, be careful not to overstep as you consider trying to get out of jury duty.

Risks of Intentionally Trying to Be Excused from Jury Service

There is a level of risk to consider when trying to get out of jury duty. If you are intentionally trying to get excused and just making up an excuse, the judge can actually hold you in contempt of court.

For example, if there is a case involving a car wreck at high speed and you go over the top with how much you hate all vehicles to the point of absurdity the judge can hold you in contempt because it is blatantly obvious you are faking it to get out of your civic duty.

There are numerous ways to get out of jury duty. If you have a valid excuse, or if you can just indicate that you might not be ideal for the jury, you can avoid serving time.

However, if you are called for jury duty, and you don’t have a good reason to avoid it, perhaps you should consider serving. After all, it is your civic duty.

And wouldn’t you want a jury on your trial to be made up of people who would do a good job rather than just the people that couldn’t figure out how to get out of jury service?

Conclusion

Serving on a jury is an integral component of the American judicial system, upholding the principle of trial by peers. While there are legitimate circumstances and concerns that may justify an individual’s need to avoid jury duty, it is essential to approach the situation ethically and honestly.

There are established methods for excusing oneself based on genuine hardships, but deceit or exaggeration can have legal ramifications.

It’s essential to weigh personal convenience against civic responsibility. If called upon, taking jury duty seriously and participating actively is a testament to our commitment to justice and the democratic processes that underpin our society.

After all, if we were in the defendant’s position, we would hope for a fair and conscientious jury to decide our fate.

photo credit: JasonUnbound via photopin cc

The post Getting Out of Jury Service appeared first on Good Financial Cents®.

In fact, I’m the primary breadwinner. Becoming an independent contractor is one of the most profitable small businesses to start this year.

As an independent contractor, I have a degree of freedom in choosing my own schedule and even determining who my clients are. I’m also part of a segment of the workforce that is growing in demand. 

Many companies are turning to independent contractors because it can be less expensive. My hourly rate might be higher than the rates commanded by “regular” workers, but I save a company in other ways:

• No benefits to pay

• No overhead costs

• No payroll taxes to pay

A few years ago, CNN Money pointed out that an employee working for $14 an hour actually costs an employer $20 an hour. 

While most of my clients pay more than $20 for a project, the reality is that they just have to pay me for the project rather than continue to pay me day in and day out and pay the other costs associated with maintaining a full-time employee.

What Is an Independent Contractor?

An independent contractor is a self-employed individual who provides services to clients on a contract basis. They are not considered employees of the company they work for and are responsible for their own taxes, benefits, and insurance.

Independent contractors typically work on a project-by-project basis and are not bound by the same employment laws and regulations as employees, which can provide more freedom in terms of how they operate their business.

They have the ability to set their own schedule, work from anywhere, and choose the projects they want to work on.

However, they are also responsible for their own business expenses, such as equipment and office space, and they are not eligible for benefits such as health insurance or retirement plans that employees receive.

How Do You Become Self-Employed?

The independent contractor arrangement can be a win-win in many ways. If you are looking to become an independent contractor, either to replace your “day job” or just to make a little extra money on the side, here are some steps you need to take:

1. Think of a Name for Your Self-Employed Business

Consider what services you will offer, and then pick a name that describes what you do. I call my business Miranda Marquit Freelancing. 

It’s straightforward, and you know — immediately — what is done and who is offering the services. If you want to offer graphic design or web development services, think of ways to include those descriptors in your business name.

Have a solid understanding of who you are and what you have to offer, and be able to clearly define what you do. 

I’m still tweaking my “elevator pitch,” but it’s coming along nicely. When you can encapsulate what you do, it’s easier to convince potential clients to hire you.

2. Choose a Self-Employed Business Structure and Get a Proper License

Next, think about how you want your business organized. My business is set up as a Limited Liability Company (LLC). 

I’m the general partner, and my husband is the limited partner. Others, though, find that an S-Corp or C-Corp makes more sense for them. (Here’s a comparison of using LLC versus C-Corp.)

In some cases, it can even make sense to remain a sole proprietorship for a time. Consult an accountant or tax professional for more information about what might be most appropriate for you.

You should also get a proper business license. Your state or locality likely requires you to have a license, even if you are providing independent contractor services and making money from your own home. 

If you plan to have an LLC, LLP, or S-Corp., you definitely need a license. However, there are cases in which sole proprietors need licenses, too. Check the requirements, and make sure you abide by them.

3. Open a Business Bank Account

Even sole proprietors should keep business expenses separate from personal expenses. Open a business bank account to keep everything separate and to improve your ability to keep good records. 

Many of the best checking account providers for consumers also have business accounts you can use.

This is a critical step that many new independent contractors miss. You must separate your personal money from your business money. 

If you are self-employed and someone sues you, and your money isn’t kept separately, then everything you have can be pulled into the lawsuit. 

Even if your new independent contracting business just made $200 this year and you have $50,000 in the bank together with that money, it can all be targeted in a lawsuit.

You need to keep good records so that you are prepared to come tax time. Make sure that you are setting aside some money in your business bank account to help you pay quarterly taxes. Don’t forget that you will have to pay your portion of payroll taxes, as well as the employer portion. 

This is known as the self-employment tax. Organize your finances now so that you can avoid headaches later.

4. Advertise Your Independent Contractor Services

Finally, you need to get out there with your business. Let others know what you are doing and how you can help them with the services you provide.

It helps to have a home on the web, so set up a website. You can even write a blog. Post your resume and relevant samples online.

Use social media to promote your services and to connect to others. (Social media is one of the key ways you can advertise your self-employed services while still saving money for your small business.) 

If you are generous in the way you promote others, and if you offer insightful information and ideas, eventually, potential clients will notice — and hire you.

The Bottom Line – The Skinny on Becoming an Independent Contractor

Becoming an independent contractor can be a rewarding way to work for those who value flexibility and independence. However, it is important to carefully consider the pros and cons before making the decision to become an independent contractor.

By understanding the steps and legal requirements, as well as finding clients, setting your rates, and managing your expenses, you can help ensure a successful transition to being an independent contractor.

Remember, being an independent contractor requires self-discipline, hard work, and good time management, but the rewards can be great!

FAQs Becoming an Independent Contractor

The post How to Become an Independent Contractor appeared first on Good Financial Cents®.

Good budgeting software can help you take charge of your finances. Happily, a large number of free online budget tools exist. You can get help for nearly any budgetary need you have.

9 Resources for Creating a Spending Plan That Works for You:

1. Mint
2. Empower
3. BudgetPulse
4. Buxfer
5. MoneyStrands
6. Moneytrackin’
7. My Spending Plan
8. BudgetSimple
9. SavvyMoney

Best Free Online Budget Tools for Charting a Course to Financial Freedom

Mint

This is the online budget tool that started a revolution. You can link your financial accounts — savings, checking, credit cards — to Mint.

Your information is automatically updated as it appears in your accounts. In many cases, categories are automatically assigned to your spending.

You can also track your progress toward retirement goals, as well as use Mint to create a debt pay-down plan. Visual tools, including graphs and reports, clearly illustrate your situation and help you chart a course.

Empower

Sign Up for Free

Use their Fee Analyzer to find hidden fees The app is 100% free See all your money accounts in one place, in real-time

For those who want to add tracking to various aspects of their budget, Empower is an option. Your financial dashboard allows you to see everything that is going on in your financial life. You can see the big picture, and track your progress as you work toward your goals.

On top of that, you can track your investment portfolio, and even receive objective investment advice. If you want help actually managing your investments, you can get personalized ideas, as long as you are willing to pay a 1% fee.

However, the regular service is free, and you can manage your finances — and investments — with the help of this budgeting tool. Check out our full Empower Video Review and Walkthrough.

Open an Account with Empower

Empower vs. Mint: Which Is Better?

Mint came first and essentially created the free online budgeting tool category. Empower is much more focused on tracking your investments across multiple accounts.

Which is better for you? It just depends on your needs: if you need straight budgeting, then Mint might be better. If you do want to track your portfolio while also monitoring cash flow then Empower is a great option.

BudgetPulse

If you are wary of allowing an online app access to your accounts, you might consider BudgetPulse.

You don’t give away your account usernames and passwords, and you can track your spending and set goals. The ability to visualize your money is available with charts and graphs. On top of that, you can create financial goals to share with your friends and family.

The social aspect can keep you accountable, as well as provide an opportunity for your loved ones to contribute to your objectives via PayPal or Amazon Payments.

Buxfer

Monitor your spending, and keep track of your upcoming bills with the help of Buxfer. This online budgeting tool is aimed at 20-somethings interested in getting their finances under control and starting out right.

You can project your earnings and savings interest into the future, and use the information to plan your finances. You can break down your goals, set short-term and long-term goals, and work toward them.

Additionally, Buxfer helps you manage group expenses. You can split different bills up, figure out who owes what, and even make payments online, taking care of IOUs with ease.

MoneyStrands

The threads of your financial life meet together with the help of MoneyStrands. This software is one that can important your financial information from your banking institutions and credit issuers. Create a 12-month spending plan, and then use this software to keep you on track.

Moneytrackin’

Once you know where your money is going, it’s easier to spot money leaks and change behaviors. Moneytrackin’ helps you see where it all goes. It also provides help with tracking and dividing shared expenses and creating shared budgets. Moneytrackin also includes helpful tools for small business accounting. If you have a home business, this software can help you keep track of relevant income and expenses. It’s a great tool that can help you manage various aspects of your finances.

My Spending Plan

You can put together a budget to help you better live within your means. Quickly create a plan that helps you with long-term goals, as well as with short-term goals, including special events and more. This software makes use of the envelope system to help you plan your budget.

My Spending Plan also sends you emails and alerts and reminds you of bills that need to be paid. On top of that, you can personalize your settings to see your own big picture. My Spending Plan also includes coupons and promotions that can help you save money and live within your means.

BudgetSimple

If you are looking for something straightforward and simple, BudgetSimple might be helpful. The main point of this budgeting tool is to help you get out of debt. You track your expenses, manage your bills, and learn how to live within your means. There are no frills with BudgetSimple, but it is one of the easiest ways to create a budget. Plus, you can view your progress with the help of charts and other visuals.

SavvyMoney

For those looking for a proactive approach to debt paydown and accelerate savings, SavvyMoney can help. The idea is that you start out by understanding your current situation. After putting together a picture of your current situation, you create a debt repayment plan based on what works best for you. SavvyMoney can help you stay on track, as well as keep up with your progress. You can even receive tips on accelerating your paydown.

Looking for more software tools or budgeting spreadsheets to help you manage your money? Check out the 11 Best Personal Finance Software.

Bottom Line: Top 9 Free Online Budgeting Tools

In today’s challenging economy, effective financial planning is crucial. Several free online budget tools, such as Mint, Empower, and BudgetPulse, offer varied functionalities, from linking accounts and tracking expenses to managing investments and visualizing financial goals. While Mint is great for straightforward budgeting, Empower focuses on investment tracking.

Others like MoneyStrands and Moneytrackin cater to international users or small business owners, and tools like SavvyMoney emphasize debt paydown. Regardless of individual needs, these platforms aim to empower users to achieve financial freedom and make informed decisions, ensuring a secure financial future.

The post Top 9 Best (And Free) Online Budgeting Tools appeared first on Good Financial Cents®.

After all, if you are middle class, you aren’t stuck with some of the stigmas that can come with being poor, and you are painted with the elitist brush for being rich. The middle class is a comfortable place to be for many of us.

It also helps, too, that middle-class identity is probably deeply ingrained in your psyche.

Many of the children of Baby Boomers (I’m one) grew up in the middle class, espousing “middle-class values.”

My experience was one of being poor until I was about 12 since my parents got married relatively young and started having kids.

Then, once my dad finished school and began making more money, we moved into a middle-class neighborhood, able to afford the necessities of life, and some of the luxuries.

The middle-class mentality, for many in my generation, is based on similar experiences: Remembering the poor life as our parents initially struggled, but enjoying greater comfort as they began earning more.

But, the middle class is more than just your own mindset. It also includes numbers.

Many of those who have a middle-class mentality might not actually be considered middle-class when it gets right down to income.

How Is a Middle-Class Income Defined?

It’s actually harder to define a middle-class income than you might expect.

Here are four different ways (and there are probably more points of view) to look at your income in terms of whether or not it’s middle class:

1. Economic Percentile: Rather than just looking at arbitrary cutoffs, some economists consider the middle class according to percentile. If you are in the top 20% of income earners, you are considered to have an upper-class income or be rich.

Those whose incomes fall in the bottom 20% are considered poor. Everyone else (the middle 60%) is middle class.

2. Median Income: Others take a look at the median annual income, and then go $20,000 to either side. In 2022, the Census Bureau reported that the median income in the United States was $64,240, so if you go a little lower or higher, you get a middle-class range of between about $40,000 and $80,000 a year.

3. Cost of Living Adjusted Income: This approach takes into account the varying cost of living in different areas. For instance, earning $50,000 a year might be considered middle class in a small town but not in a high-cost urban area like New York City or San Francisco. By adjusting income levels to the cost of living in a specific area, you can get a more accurate sense of whether an income is truly middle class for that region. For example, a cost of living calculator can adjust incomes to reflect what being middle class means in different cities and states.

4. Disposable Income and Debt Levels: Another way to look at middle-class income is to consider disposable income and debt levels. This approach focuses not just on gross income, but on how much money people have left after taxes, essential expenses (like housing, food, and healthcare), and debt payments. This method recognizes that a high income doesn’t necessarily equate to a middle-class lifestyle if a large portion of that income goes towards debt repayment, such as student loans, credit cards, or a mortgage. By this measure, someone could earn a relatively high gross income but still not have the disposable income typically associated with a middle-class lifestyle.

Income Ranges and Tax Policies

The income range provides another lens through which to view middle-class status. A general consensus among economists suggests that an annual income between $25,000 and $100,000 falls within the middle-class category.

However, this range is broad and can be misleading, necessitating a more nuanced approach that considers regional cost of living and lifestyle choices.

Tax policies further complicate this picture, with varying income cutoffs for different tax brackets. For instance, certain tax discussions set the middle-class income ceiling at $250,000, while others extend it to $400,000.

The Alternative Minimum Tax, initially targeting high-income earners, now affects middle-class families due to its lack of adjustment for inflation, blurring the lines of income categorization.

The Subdivisions of Middle-Class and Regional Influences

The middle class itself can be subdivided to provide a clearer picture. The term ‘upper middle class’ often describes those earning between $100,000 and $250,000 annually.

While this group enjoys financial comfort, they might not perceive themselves as ‘rich,’ emphasizing the relativity of financial status. Location plays a crucial role in this perception.

An income considered affluent in a semi-rural area may barely cover basic necessities in urban centers like New York City, illustrating the vast disparities in cost of living and lifestyle across regions.

Middle-Class Classification

Another Take

Self-identification and perception are integral to understanding middle-class status. Middle-class values and aspirations often passed down from previous generations, play a significant role in how individuals perceive their financial standing.

The feeling of being ‘middle class’ is influenced by one’s surrounding community and peer group, with relative wealth playing a critical role in this self-assessment. Others subdivide what’s considered middle class to provide a more nuanced picture.

Many of those who make less than $75,000 a year consider someone who makes more than $100,000 a year “rich” — and definitely outside the middle class.

However, if you make $150,000 a year, you might not feel “rich.” Instead, you might still feel part of the average American middle class.

As a result, the term “upper middle class” is often used to describe those who make between $100,000 and $250,000 a year.

Pinpointing what constitutes a middle class income is further complicated by the fact that location plays a role in your spending power.

With my income, I’m considered fairly well-off in my relatively small semi-rural community. There’s a low cost of living, and my money goes further.

However, if I were to move to a larger city, like Seattle, my money wouldn’t go as far. And if I moved to a place like New York City, I’d almost be poor.

In many ways, “rich,” “poor,” and “middle class” are relative. Additionally, there is a strong psychological element.

Pinpointing whether or not you actually have a middle-class income involves the complex interaction between what you actually make, and how you feel about what you make.

What do you think? What constitutes the middle class? Do you consider yourself middle class?

Conclusion

Middle-class income is a multifaceted concept, influenced by economic percentiles, absolute income ranges, regional cost of living, tax policies, and individual perception.

A comprehensive understanding of this socioeconomic status requires acknowledging these diverse factors and recognizing their interconnectedness.

As society evolves, so does the definition of middle class, making it imperative to continually reassess and understand this critical segment of the population.

The post What Is Considered a Middle-Class Income? appeared first on Good Financial Cents®.

One of the best things you can do for your finances is to pay down debt. There are a number of different strategies designed to help you get rid of your debt.

Among the more popular strategies is debt consolidation. With debt consolidation, you gather all your debts in one place.

You can get a debt consolidation loan that pays off all the smaller loans and leaves you with the larger loan, or you can manage your debt consolidation through a third party, which collects payment from you and then disburses it to your creditors.

Debt consolidation can be a great way for some consumers to put a solid dent in their debt.

This is because it gets all of the debt in one place, where it can be easily managed. You only have one payment to worry about, and one interest rate. Being able to concentrate your efforts can go a long way toward getting rid of debt.

However, debt consolidation isn’t for everyone, and it’s no guarantee that you will be able to get rid of your debt effectively — especially if you fall prey to the following 3 pitfalls:

1. Using Your Freed-Up Lines of Credit

If you get a debt consolidation loan, the result is more freedom in terms of lines of credit. You paid off your credit card balances with the debt consolidation loan, so now you have fully available credit cards.

Many consumers start using these credit cards again as soon as the debt consolidation process is complete.

This can be a huge mistake. Savvy use of credit cards with 0 APR can be helpful, but you have to pay off the balances each month in order to avoid high-interest charges. If you continue to use your credit cards and carry balances, you will rack up even more debt than you had to begin with.

Don’t use your freed-up lines of credit unless you are done paying off your debt consolidation loan, and your spending is under control so that you aren’t living beyond your means. 

I worked with one person who borrowed money using Lending Club to pay off all their high-interest debt.  18 months later they had double the debt and no way to consolidate.  Don’t be this person!

2. Failure to Change Your Spending Habits

If you aren’t planning to completely change your spending habits, debt consolidation — in any form — isn’t going to help you. You need to stop thinking of debt as the problem.

In most cases, debt isn’t the problem; it’s a symptom of your spending problem.

You can pay off debt time and time again, but unless you change your current habits, and make a fundamental shift in the way you approach your money, you will end up back in debt.

The more times you go through the debt cycle, the more interest you pay. This eats into your ability to build wealth over the long haul.

If you want to really make your debt consolidation effort a success, your plan has to be accompanied by fundamental changes in the way you handle your money.

3. Using Debt Settlement Instead of Debt Consolidation

A third-party company can help you organize your debt, and pay it off quickly through a form of consolidation. Properly certified credit counselors can help you create and execute a pay-down plan. You make one payment, and the company handles all of the transactions.

You will be charged a fee for the service, but for some consumers, this fee amounts to less than they would have paid in interest had they continued struggling with a debt pay-off plan on their own.

What you have to watch out for are companies that actually involve you in debt settlement rather than debt consolidation. With debt settlement, you make regular payments to the company, and the money is held in an account.

The company withholds payment from your creditors. After a time, your creditors are willing to settle for a lump sum payment that is less than what you owe. The money you have been paying into an account is used to settle with your creditors.

However, this process takes a very large toll on your credit. As long as you keep making payments on time, your debt consolidation efforts won’t likely have a huge impact on your credit score (although your credit utilization will remain high).

Go through debt settlement, though, and your payment history — the largest factor in determining your score — will be destroyed.

Save

Before you agree to allow a third party to handle your debt consolidation, make sure you understand what it entails and that you truly understand the process.

The Bottom Line – Avoid These 3 Pitfalls of Debt Consolidation

Debt consolidation, a strategic approach to financial stability, can be a lifeline for individuals overwhelmed by multiple debts. However, it’s not a one-size-fits-all solution.

The effectiveness of this strategy hinges on disciplined financial behavior, avoiding the temptation of available credit, and a thorough understanding of the consolidation process.

Missteps, such as falling back into old spending habits or mistaking settlement for consolidation, can exacerbate financial woes. For those willing to adapt and remain vigilant, debt consolidation can be a stepping stone toward fiscal responsibility and long-term financial health.

The post Avoid These 3 Pitfalls of Debt Consolidation appeared first on Good Financial Cents®.

And we don’t even have a premium package. At some point, though, I hope to convince my husband that he doesn’t need the TV for sports and that we can find other ways to keep up with his favorite teams.

I’m even preparing for the day that we can ditch the paid TV and just go straight streaming online.

Do You Have the Proper Set Up?

Getting cable TV for free is a nice thought, but you will likely have to pay for some part of the setup.

First of all, if you have an HD TV with an antenna and tuner, you can get over-the-air local HD channels for free. If you want access to the major networks, this is a good way to get TV without paying for it.

If you want something approaching cable, though, you’ll have to do a little bit more. First of all, you will need the Internet so that you can stream your TV shows.

If you want to watch your shows on your television, you’ll need some sort of device. We use our PlayStation 3 for streaming, but you can also use Apple TV, Roku, Xbox, and other devices to help stream the Internet to your TV.

It can also help, in some cases, to get software that facilitates streaming by setting up a media server. Playon is one such option. You will have to pay for the software, and for whatever device you use to stream the content to your TV.

Even though you will need to pay to get the setup going, it’s still likely less than you are paying for your cable or satellite TV. I’m paying $1,104 a year for satellite TV right now.

If I were to pull the plug right now, I’d save that money because I’m already paying for Internet, and I already have a PlayStation 3 (and I wouldn’t buy special software).

Even if I had to buy software and a device, I could still get the whole setup for less than $500 — and then I wouldn’t have the monthly fee for cable TV.

Options for Streaming Without Paying Extra

Assuming you already pay for broadband Internet, you could ditch the cable TV and watch without incurring any extra cost (if you already have the right setup). There are plenty of places to get free TV content. Many of the major cable networks stream full episodes of shows.

You do have to plan ahead if you go this route, though. In many cases, the full episodes are available only after a day or two, and even then are available for a limited time. You have a viewing window, and you have to plan to watch in that time period.

It’s also possible to get the free version of Hulu, as well as watch Joost.com, FreeTVOnline.com, and Sidereel.com to access clips and full episodes of some shows.

If You Are Willing to Pay a Small Amount

For those who don’t care about completely free cable TV, but who just want to pay a lot less, there are paid options. You can sign up for Amazon Prime for $139 per year, and get streaming TV shows and videos, as well as rent streaming entertainment for cheap.

Netflix has an unlimited streaming option for $7.99 a month, and you can get Hulu Plus for $7.99 per month. In fact, you can get all three of those streaming services for $270.76 for the whole year — that’s a lot better than paying more than $1,000 a year.

And, for sports fans, there are options there as well. My husband can get MLB TV online for $149.99 for the baseball season.

That’s not too bad, and still keeps us to less than what we pay right now — and we can watch it on the TV through the PS3. It’s possible to save quite a bit each year when you cut the cable and go with other options.

What do you think? Are you ready to get rid of cable/satellite TV? If you have already gotten rid of it, how do you get your TV entertainment?

The Bottom Line – Simple Ways to Get Cable TV for Free

The rising costs of cable and satellite TV have led many to explore alternative options. While transitioning from paid TV to streaming requires an initial setup cost, it can lead to significant savings in the long run.

With the right equipment and broadband internet, you can access free over-the-air local HD channels and major networks. Streaming devices like Apple TV, Roku, or gaming consoles offer easy access to online content.

Paid streaming services like Amazon Prime, Netflix, and Hulu Plus provide a wide range of entertainment at a fraction of the cost. By making a one-time investment in streaming setup, you can potentially save hundreds annually.

The post Simple Ways to Get Cable TV for Free appeared first on Good Financial Cents®.

When you look at your financial picture, it’s easy to get caught up in the numbers.

However, it’s important that you not focus too much on your net worth.

While you want to improve your financial situation, realize that it’s not just dollars and cents.

You need to improve your human capital as well.

What Is Human Capital?

Chances are that you are aware that the decisions you make with your financial capital matter a great deal. However, the money you have now and hope to have later is only a part of the equation. You also need to look at your current situation and understand how your human capital fits into the larger picture.

Human capital consists of the knowledge and skills you possess.

It’s what you have that can impact your earning potential later.

Economic theorist Adam Smith pointed out that talents make up part of one’s financial picture. The abilities that we have contribute to our earning power, and that is our human capital.

Your human capital impacts how much money you make now, and the skills and knowledge you develop can impact your future earnings. As a result, it makes sense to take the time to develop your own human capital as much as you look for ways to increase the amount of financial capital you have.

Just as investors diversify their portfolios to maximize returns, diversifying your human capital through continuous learning and skill acquisition is a strategic move. It’s an investment in your most valuable asset—yourself. 

By broadening your expertise and staying adaptable, you not only stay relevant in a rapidly changing job market but also open doors to new opportunities that can lead to wealth generation beyond what traditional financial capital can offer.

Moreover, human capital extends beyond individual gains. It plays a pivotal role in the economic growth of societies. When populations are more educated and skilled, they contribute to innovation, productivity, and higher standards of living. 

Investing in human capital, therefore, is a dual-edged sword; it benefits both the individual and the collective, driving forward personal ambitions and the socioeconomic fabric of the community.

Assessing Your Human Capital

To effectively enhance and leverage your human capital, a thorough assessment is essential. This assessment is two-pronged: evaluating where you currently stand and identifying areas for improvement and opportunities for growth.

Evaluating Your Current Position

Educational Qualifications

Your formal education acts as the foundation of your human capital. Assessing this includes reviewing your highest level of education, areas of study, and any specializations.

This evaluation helps to determine whether you possess the necessary academic credentials required for your current or desired job role and whether further education may be beneficial or necessary for career advancement.

Professional Skills and Competencies

This entails a careful analysis of the skills you have acquired over the course of your career. It includes technical skills specific to your industry, as well as general competencies such as problem-solving, project management, and leadership abilities.

A robust skillset can often compensate for gaps in formal education and is increasingly valued in dynamic job markets.

Work Experience and Achievements

Reflecting on your professional history, this component requires you to catalog your past roles, responsibilities, and significant accomplishments. It provides a narrative of your career progression and showcases your ability to apply theoretical knowledge in practical settings.

Key achievements can distinguish you in a competitive job market and signal your capacity for adding value to potential employers.

Health and Well-Being

Often overlooked in traditional assessments of human capital, your physical and mental health are critical enablers of your ability to work and grow professionally. Good health supports consistent performance and career longevity, while poor health can undermine all other aspects of human capital.

Assessing your health and well-being involves considering your lifestyle, stress levels, and work-life balance and how these may be affecting your professional life.

Identifying Gaps and Opportunities

Skills Gap Analysis

This is the process of comparing your current skills against the skills required for the job or career you aspire to. It helps in identifying the specific areas where you need improvement or new skills that you need to acquire.

This analysis will guide your decisions on further education or training and can help you focus your development efforts more effectively.

Industry Demand

Assessing industry demand involves staying informed about the current trends and future projections within your industry. It’s about understanding what skills are in high demand, which jobs are emerging, and what sectors may be declining.

This knowledge can inform your decision on whether to pivot into a growing field, double down on a current specialization, or diversify your skillset to ensure job security.

Long-Term Career Planning

Here, the focus shifts to the future. Based on your current assessment and the industry demand, you can start to chart a long-term career path. This includes setting career goals, considering potential job moves, and planning for continuing education.

It’s about creating a vision for where you want to go professionally and mapping out the steps necessary to get there. It requires a balance between ambition and a realistic appraisal of the sacrifices, time, and effort needed to achieve your goals.

Together, these components of assessing your human capital form a comprehensive picture of your professional and personal capabilities. They are the basis upon which strategic decisions can be made to invest in and improve your human capital, thus enhancing your career prospects and financial stability.

Strategies for Enhancing Your Human Capital

In many ways, increasing your human capital — particularly in a career sense — is about developing marketable skills that others are willing to pay for.

It’s also possible to improve your human capital in ways that can allow you to make money on the side or even help you start your own business, becoming self-employed.

Take a step back and ask yourself what you have to offer and what you can do to improve your offerings. Often, this means improving your skills and improving your knowledge.

Continuous Education and Training

Formal Education

Pursuing additional formal education, such as obtaining a degree or taking advanced courses in a specific field, can significantly enhance your human capital.

This step not only expands your knowledge base but also demonstrates a commitment to self-improvement and can be a powerful differentiator in the job market. It can also pave the way for higher earning potential and better job opportunities.

Professional Certifications

Certifications are often industry-specific and can serve as proof of your expertise and dedication to professional standards. Earning certifications requires a demonstration of skill and knowledge, which can bolster your professional credibility.

Moreover, it keeps you updated with the latest practices and can be particularly impactful in fields that are rapidly evolving.

Online Courses and Workshops

In today’s digital age, online education has made learning more accessible than ever. Enrolling in online courses and workshops allows for flexible skill enhancement that can fit around other commitments.

These platforms often offer a wide range of topics, providing opportunities to gain new skills or deepen existing ones without the need for a significant time or monetary investment associated with traditional education.

Skill Development

Soft Skills

Soft skills, such as communication, leadership, teamwork, and emotional intelligence, are increasingly recognized for their importance in the workplace. They facilitate effective interaction with colleagues and clients and can improve job performance.

Developing these skills can be done through targeted training, practice, and reflection, and they are applicable across a wide range of job types and industries.

Technical Skills

Keeping your technical skills sharp is essential, particularly in fields that are technology-driven. Whether it’s learning a new programming language, mastering a piece of software, or understanding new methodologies, improving technical skills can keep you competitive in a technologically advancing world.

Transferable Skills

Skills that are transferable between jobs and industries, such as analytical thinking, project management, and adaptability, add to the versatility of your human capital.

Developing these skills can provide flexibility in your career, allowing you to pivot into new roles or industries as opportunities and needs arise.

Gain Experience

On-The-Job Learning

Practical experience is invaluable for applying and cementing new skills. Learning on the job can involve taking on new responsibilities, participating in projects, or seeking out mentorship opportunities within your current role. This type of learning is often contextual and deeply relevant to your career path.

Volunteering

Volunteering can expose you to new environments and challenges that aren’t available in your current role. It’s a way to build and demonstrate skills, especially in leadership and project management, while making valuable contributions to your community or causes you care about.

Internships and Apprenticeships

For those early in their careers or looking to make a significant change, internships, and apprenticeships offer a combination of education and practical experience.

They can be a pathway to employment and provide a unique learning environment where theoretical knowledge can be applied in real-world scenarios.

Health and Lifestyle Choices

Physical Health Investments

Investing in your physical health through regular exercise, a balanced diet, and sufficient rest can enhance your work performance and resilience. Good physical health is linked to improved mental performance, including better concentration and memory, which are critical to most professional roles.

Mental Health and Wellness

Mental health is just as important as physical health. Activities like mindfulness, meditation, and counseling can maintain and improve mental health. Mental wellness is crucial for creativity, decision-making, and overall professional performance.

Work-Life Balance

Ensuring a healthy work-life balance is key to maintaining long-term productivity and preventing burnout. It involves setting boundaries between professional and personal time, pursuing hobbies, and spending time with loved ones.

Achieving balance can help sustain both your personal well-being and your ability to contribute professionally. Each of these strategies plays a pivotal role in the continuous improvement of human capital.

By dedicating time and resources to education, skill development, gaining experience, and maintaining health, individuals can cultivate a rich and robust portfolio of professional assets that can navigate the complex landscape of modern careers.

Put Your Human Capital to Work for You

Once you have increased your human capital, it’s time to put those skills and knowledge to work. Use what you have learned to start a business. Or, you can use your new skills to get a pay raise or a promotion.

Your human capital, your earning power, should be used in a way that helps you advance your finances. Whether you are investing in something or whether you are just trying to move up the corporate ladder, your human capital can help you advance.

As long as you are progressing in skills and knowledge, you are likely to improve your financial situation and use your money wisely. Making use of your human capital is one of the best ways to secure financial freedom on your terms.

The Bottom Line – Are You Improving Your Human Capital?

Enhancing human capital is a strategic pursuit that reaps dividends beyond immediate financial gain. It is an investment in personal growth, career development, and the cultivation of a skill set that is both diverse and adaptable to the changing landscapes of the job market.

The synthesis of education, continuous skill acquisition, experience, and a balance between personal health and professional ambition sets the foundation for not only individual prosperity but also the collective advancement of society.

By elevating human capital, one ensures that their value in the marketplace transcends the fluctuations of economies, positioning themselves as both a contributor to and beneficiary of a thriving economic future.

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