If you’re feeling Grinch-y, Scrooge-y and a bit more than bah hum-bugged, overwhelmed by the array of demands the holidays bring, there are ways to make things better, according to a Mayo Clinic release.

Among the stressors are too many – sometimes unwelcome – guests, selecting and then paying for gifts, shopping, baking, cleaning and entertaining. And the list goes on, depending on your own circumstances. Plenty to make for a no-good, no-fun, no-happy Noel.

The trick, if possible, is to recognize the potential and stop it at the pass. Especially if you’ve had problems in the past, anticipate an emotional toll and don’t let it happen.

The Clinic’s suggestions include:

1. Acknowledge your feelings. If you’ve had particular challenges recently, don’t expect them to be less emotionally draining just because it’s the holidays. It’s all right to cry or otherwise express your feelings.

2. Reach out to others. If loneliness or isolation get too big to bear alone, seek out community, religious or other opportunities to be with others. Volunteer to help others as a way to put your troubles into perspective and broaden friendships.

3. Be realistic. Nobody’s holidays are perfect. If things are different from last year, if your family structure has changed, traditions and rituals altered, don’t expect things to be the same. Hold onto some of your personal traditions and be open to new ones. For example, if your adult children can’t make it home, find new ways to share long-distance, through emails, pictures, chats or videos.

4. Set aside differences. Looking for the ideal in any normal family is an exercise in futility. Accept each other as is. If there are grievances, wait for a more opportune time to discuss them. If others get upset or distressed, be understanding. Avoid confrontation.

5. Stick to a budget. If your stress and depression are triggered by money matters, make them matter less. Plan a realistic holiday budget and then stick to it. Buying an avalanche of gifts that you can’t afford will only extend the pain beyond the holidays. Give homemade gifts, donate to a charity in another’s name, promote a family gift exchange.

6. Plan your time. Divide up the chores into manageable bits: a time for shopping, baking, parties and other activities. Avoid last-minute scrambling. Be sure you have the ingredients you need for cooking. Line up help for preparation and cleanup.

7. Learn to say No. If you overextend yourself, you end up feeling resentful and overwhelmed. If you can’t involve yourself in every possibility that comes your way, don’t feel the need to apologize. If you can’t avoid the added demands, for instance, if the boss says he needs you overtime, drop something else from your schedule if you can. The days during the holiday season are just 24 hours long, as usual. Don’t try to pack them too tightly.

8. Retain healthy habits. Have a snack before a party to avoid overeating. Get enough sleep. Make exercise part of every day.

9. Take a breather. Make time to relax and be by yourself. Just 15 minutes may be enough to refresh and help you handle what’s on the agenda. Take a nighttime walk. Listen to music, read a book, get a massage. Whatever it takes to relieve the tension and prepare you to jump back into the maelstrom.
Laugh out loud.

10. Get professional help if you need it. If you persistently feel sad or anxious, have recurring physical symptoms, can’t sleep, are irritable and feel hopeless and unable to face routine expectations, see a doctor or mental health professional.

The post Coping With Holiday Stress appeared first on Wealth Building Tips.

Not so, experts in the field say. Thousands of Americans struggle to set aside enough money to enjoy retirement, particularly those who are self-employed. They are having little success at building an adequate post-employment reserve.

The challenge is so overwhelming that many refuse even to look it square in the eye, which becomes a serious part of the problem. Pensions that used to provide the safety net for many workers are becoming rarer in the private sector and workers at the low end of the totem pole often have no access to such programs.

Who Fares The Best In Retirement?

Predictably, next to the really wealthy, those who fare best in the retirement picture are highly educated couples. They are likely to have more resources such as 401k plans, savings and home equity that are a boon when their jobs end. Those with less education, health issues and/or lower income and fewer resources can only watch in frustration as their prospects for a financially secure retirement fade into the distance.

The old saying that the rich get richer while the poor get poorer is literally true in today’s economy. Incomes for the top 1 percent of earners rose 31 percent from 2009 to 2012, according to an economist at the University of California/Berkeley. For the remaining 99 percent, the rise averaged 0.4 percent.

In households with annual income under $25,000, nine of 10 had savings under $10,000, according to the Employment Benefit Research Institute. For households in which earnings topped six figures, 42 percent had savings of at least $250,000, the institute reported. Five years ago, that percentage was 34 percent, another indication that the retirement prospects for those in the low-earnings categories are making no headway toward any kind of parity.

The post Wealth Gap Lasts Into Retirement appeared first on Wealth Building Tips.

The advice takes just a minute. Here we go!

Resolve to spend less than you make. No other financial wisdom has ever been better than that. Make it a habit. Embed in your mind the truism that you can never get out of debt by going into more debt.

Good Debt vs Bad Debt

Learn to distinguish between bad debt and OK debt. Don’t settle for any debt that requires more than 10 percent interest, and watch for tax advantages. Home mortgages and college debt that increase your overall worth over time are among OK debts. Auto loans are marginal, since they don’t appreciate in value. Most everything else is bad debt, such as credit cards or high interest “quick cash” loans. Avoid them like the plague.

When choosing credit cards, look for the lowest annual interest rate. Use cards for emergencies only. Get rid of cards that are not essential and simply pose a temptation to buy what you don’t really need.

Line up your bad debt accounts in a row. Add up the minimum payments and pledge to pay the minimum on each, plus whatever you can must. Choose the account with the highest interest and work on it first, and so on down the line. Resist the temptation to add to any of these accounts.

Request that the issuing institution lower the interest on your cards. Tell them you are aware that there are cards available at lower rates, but that you want to stay a loyal customer. The response may make you uncomfortable, but stick to your guns. The institutions depend on their customers to make their profit, remember? If you have any bill on which interest tops 14 percent, try to get it down to at least 11 percent.

Be aggressive in paying down debt, but don’t put yourself in a bind with other obligations.

Look for ideas (and sympathy) through discussion boards such as consumer credit/credit cards, provided by The Motley Fool. The company, through its credit center, also offers workable ways to get out of debt.

Past Idocy

When your bad debt can be filed under “past idiocy,” make good use of the money you have saved by saving it.

Commenting on Motley Fools good advice, a woman said that she and her husband had almost maxed our their 401k and planned to use tax income and savings over the next year to pay off debt. Then life happened, with two hospital admissions, operations, hail storm damage and co-pays. Then the husband was laid off. “We spent every penny paying on debt on one credit card and a car. Then the credit card issuer, pursuant to the state laws where they lived, raised their maximum interest to 31 percent. Help! “We did not hesitate. We took our money out of our IRA and paid off every penny we owed. You wouldn’t believe how much free money we now have. We still have insurances, utilities, groceries and gas, but we have enough money that we don’t have to use the credit card. We kept one card, which we pay off monthly. (Our experience shows you should) pay off the credit card first, if you can.”

That’s good advice. And if it took more than a minute, you can count it time well spent.

The post One-Minute Guide To Debt-Reduction appeared first on Wealth Building Tips.

In case of a security breach

People worry about identity theft, particularly the biggest kind where your entire identity is hijacked and all of your accounts are compromised. But it’s far more common that a thief gains access to a single account. Though it is possible for them to acquire access to all other financial accounts, the theft of the original account is often discovered before the thief can access the others.

A checking account is particularly vulnerable to identity theft because checks include not only your personal information, such as your name and address, but also the bank routing number, and most important, your personal account number. Both numbers are imprinted at the bottom of your checks. By issuing checks to pay bills, you’re putting this sensitive information out to other people, some of whom may be thieves.

It’s worth noting that identity theft is usually an inside job, which is to say that an employee of any company that you do business with could gain access to your account information if you pay by check. It’s not always possible to avoid paying your bills by check, so you have to be aware of the possibility that account information can be stolen. It’s a reality that we all live with.

But if your account information is hijacked by a thief on one checking account, you can continue to transact business with your second account. This will minimize the disruption caused by the theft. Just be sure that the second account is held at a different bank than the first one, so that it will not be so easy for the thief to get access to both accounts.

To allocate expenses

We often hear of people budgeting using envelopes – either virtual as part of an application, or even literal envelopes. Having two checking accounts can help you to do this without having to resort to buying and implementing an application, or maintaining physical envelopes.

For example, you can use one checking account to pay minor expenses, such as grocery bills and ATM charges. You can use the second account to cover larger expenses, such as your mortgage payment, health insurance or car payments. This will help you have the money available to make the larger payments, without running the risk that the swipe of an ATM card could leave you short funds.

To maintain a budget

This is similar to the concept above, except that it gets more specific. For example, you can use one checking account to pay for fixed expenses, like your house payment, debt payments, and insurance premiums. The second can be used to pay for variable expenses, such as groceries, entertainment, gasoline, and impulse purchases.

Once again, the separation will create a wall between your expense categories, and will keep you from over spending in either category. By limiting your variable expenses to a single checking account, you can limit the amount of money that you might have available for impulse purchases, such as clothing and entertainment.

To save money for large expected expenses

You should always have a checking account to pay for your expenses, and an emergency fund to be available for true emergencies. But there are what you might call halfway expenses – outlays that are large enough to be worthy of an emergency fund withdrawal, but don’t rise to the level of an actual emergency.

Car repairs are just such an example. Though you can’t know when they will strike, or how much they will cost, you know that they’re coming at some point. That means that while the cost will be disruptive, it won’t be entirely unpredictable. You can use a second checking account as a place to accumulate money to handle such expenses, that will help you to avoid dipping into your emergency fund.

Other uses could include using the second checking account to accumulate money for an upcoming holiday season or vacation. You may even use it if you know you’re going to have a major repair, such as replacing your roof or HVAC. Once again, these are large and disruptive expenses, but they’re not emergencies because you know they’re coming.

To have a second account to tap instead of using a credit line

Many people fall into the pattern of tapping their credit lines whenever their checking account is empty. But if you have a second checking account, always stocked with at least some money, you can access the funds in that account, rather than using a credit card or withdrawing money from your emergency fund.

The idea is to create levels of liquid cash that you have available so that you will not take on debt or withdraw money from accounts that have other purposes. This can work especially well for married couples where each spouse has their own checking account. If one spouse is running low in their checking account, they can get funds from the other spouse’s account.

If the fees charged on your checking accounts are reasonable, look into maintaining two checking accounts. Sometimes maintaining a smooth cash flow is worth paying the extra cost of the second account.

The post Five Reasons to Have Two Checking Accounts appeared first on Wealth Building Tips.

Notify Credit Card Companies

Begin by calling your credit card company before you start, especially if your travel plans will take you out of the country. If charges begin popping up in places the company is not used to, your account may be flagged as being suspicious. The company could try to contact you to verify the out-of-area transactions. Or they could simply freeze your card. They do that, of course, to protect you in the case of card theft, but it can play hob with your travel plans. It could cut you off from the source you expected to use to finance your travels and cause more consternation than you’d care to deal with away from home.

Some card issuers have provisions for you to notify them online. Log onto the account and look for “travel notification” or other tab that allows you to alert them to where you will be and for how long. Some companies are aware of the frequent travelers they serve and don’t require notification for every trip. But, as the old saying goes, “Better safe than sorry.” A few minutes of precautionary effort could save a lot of headaches.

Lost Cards

In case of a lost or stolen card, have your card company’s toll-free customer service number available. Put it in a place separate from your wallet or purse so if there is a theft or loss you will have the number you need. It would be wise to provide the number to a friend or family member as well. Carrying two credit cards gives you a backup if one is lost or stolen.

Use Rewards Offered

Some credit card issuers provide perks specifically for traveling. Be aware of what your card offers. They vary from one company to another, but could include such conveniences as free referrals to legal or medical services (for which you would, of course, pay) or to such improvements in amenities as hotel room upgrades.

Coverage for lost or damaged baggage would be a very desirable perk and the card companies tend to pay up to $500 more than what your airline might offer (most airlines pay up to $3,400 to recompense for lost luggage.) If you put an expensive camera in your checked luggage and it gets lost, some cards will pay up to $250 per lost item, not likely to cover the cost, but a start on replacement.

If you have the bad fortune to be involved in an accident with a rental car, some cards will help pay for the damage if it occurs in the United States. The benefit would kick in after you filed a claim with your usual vehicle insurer. If an accident occurs outside the U.S. and your own insurance doesn’t cover such an occurrence, the credit card fall-back may be your only chance to recoup costs. Some card companies also offer small amounts to compensate for delayed flights. The trick is to carefully go over the details of your service agreement so you don’t miss available perks.

Some credit card issuers have dropped the additional charges (usually 1 to 3 percent) on purchases outside the U.S., but some are still in effect. Again, check carefully to see what your card offers. If you have more than one card, use the one with the lowest charges for overseas buying.

Use Approved ATMs

Using ATMs in foreign countries can involve charges as high as $5 per pop. Check with your card companies to see if they have partnerships with ATMs in the countries you intend to visit. Or use a credit union card, which usually has fees lower than a bank card. Debit cards also pose lower fees for cash withdrawals, as a rule. Get reasonably large amounts of cash on each ATM visit to minimize fees. Avoid airport kiosks or currency exchange offices, which have significantly higher charges for providing you with cash.

Microchips

A microchip embedded in your card is an additional security option. Older cards tend not to have them, and thieves can more easily extract your information if they get their hands on your cards. By October 2015, microchip security will be required for all American cards. Europeans have had that extra safety measure for some time. Check with your card issuer to see if a microchip is an option.

Keep Payments Current

Before you fly off to parts far from home, remember to keep your credit card payments current. That way you’ll avoid the shock of late fees you forgot to anticipate. If you expect to add significantly to your credit card balance, make a payment ahead of time or set up an online payment before you leave. Request an increase on your credit limit if there is a chance you’ll exceed your current limit. And monitor carefully as you travel to avoid the embarrassment of surpassing the limit.

Bottom line: Your credit card can be your best friend on vacation, but only if you take the necessary safeguards and do the homework before you head out the door.

The post Credit Card Problems Can Ruin Vacations appeared first on Wealth Building Tips.

But as good as the theory of debt consolidation loans seems to be, proceed with caution. Debt consolidation loans don’t always do what you hope they will, and sometimes they can even make your situation a good deal worse.

How Debt Consolidation Loans Can Go Wrong

When people consider taking out a debt consolidation loan, they seldom give serious thought to the potential pitfalls that they have. There are number of ways that debt consolidation loans can go wrong, and here are just a few:

1. Though they usually lower your overall monthly payments, they don’t reduce the amount of money that you owe
2. By reducing your overall monthly payment, they often pave the way for you to take on additional debt
3. If you don’t stop borrowing after you take a debt consolidation loan, the consolidation will have been absolutely pointless
4. Debt consolidation loans can make debt easier to live with, and that does not create the kind of budget discipline that leads to an improved overall financial situation
5. Debt consolidation can become a revolving arrangement, in which you do a consolidation loan, that’s followed by an even larger one, a larger ones still, in a process that often has no end

In short, debt consolidation loans can lead you on a one way road to ever higher amounts of debt.

The Cycle of Perpetual Debt

Point #4 above warrants special consideration, since it lies at the root of the cycle of perpetual debt a lot of people find themselves in. Many debtors look for ways to make their loans easier to live with. This may reduce budgetary stress in the household, but it doesn’t actually make your debts go away. In fact, if you become too efficient at debt consolidation, you run the very real risk of turning short-term debt into permanent debt.

How does that happen?

As debt consolidation loans become larger, they tend to carry longer repayment terms at higher monthly payments. At the extreme, debt consolidation eventually morphs into either a home equity line of credit or a cash-out refinance of your primary mortgage. At that point your debt consolidation become something close to a permanent obligation.

Once short-term debt has been converted to permanent debt, secured by your home, you’re debt slate is once again wiped clean. This can be an excellent strategy to get out of debt if you are fully committed to avoiding all forms of debt in the future. But for many people who do the ultimate form of debt consolidation – a mortgage on their homes – the path is simply cleared to accumulate more debt.

This entire arrangement – and it is not an uncommon one – puts you squarely on a path of perpetual debt.

How to Make Debt Consolidation Loans Work For You

Debt consolidation can actually work! By lowering your monthly payments, it does free-up your budget, and give you a host of options that you didn’t have before. But none of that will do any good unless your realize that getting out of debt requires sacrifice.

What kind of sacrifices are we talking about? Here are just a few examples:

1) Recognize that rearranging debt is not the same thing as paying it off –
A huge part of the success or failure of any debt consolidation loan is the way that you view it from the very start. You may need to change your thinking! If your primary purpose is simply to lower your monthly payments, the consolidation loan will probably only lead you deeper into debt. But if you see it as a more efficient way to payoff your debt it could be the very tool you need to help you get out of debt forever.

2) Eliminate the level of spending that got you into debt in the first place –
One of the biggest negatives with debt consolidation loans is that people who take them convince themselves that they don’t have to change their spending habits. That thinking is completely wrong, and a recipe for disaster. The entire reason that you go into debt in the first place is because you spend more money than you earn. That arrangement will have to change – you’ll have to learn to live beneath your means. That’s where the sacrifice come into play, but there is no way that you can be successful with a debt consolidation loan without it.

3) Swear off borrowing at least until the debt consolidation loan is paid off completely –
If you borrow more money shortly after taking a debt consolidation loan, you’re defeating the entire purpose of having the loan in the first place. Adding more debt on top of the debt you already have with a consolidation loan, will simply put you deeper into debt. Once you take a debt consolidation loan, you must avoid taking any new loans, at least until the debt consolidation loan is paid off in full.

4) Become a committed saver –
Probably the best way to avoid debt in the future is by becoming a saver. If you have money in the bank, you’ll be less likely to borrow money, particularly using credit cards. If you can start saving money while you are paying your debt consolidation loan, you’ll be able to really accelerate the process once the loan is paid in full. You can then direct what used to be the monthly debt consolidation payment into your savings.

In order for a debt consolidation loan to be completely effective, you have to view it as the first step in a very long-term process. The whole purpose of the debt consolidation loan is to clear the decks of your old debt, so that you will be able to go forward with a clean slate, and to develop an entirely new and more effective financial strategy.

The post Debt Consolidation Loans – Proceed With Caution appeared first on Wealth Building Tips.

Keeping close tabs on our money is an American fact of life. In general, we like to be able to deposit what we have in what we believe to be a secure holding institution and then relax.

Fortunately, the United States has built safeguards into its banking systems, including federal deposit insurance, and the likelihood of a “run” today is miniscule. But a recent story out of China shows what can happen when rumors run rampant and cool heads do not prevail.

How The China Bank Run Started

A customer in Yancheng, China, went to his bank and requested a withdrawal of 200,000 yuan, the equivalent of $32,200 in American dollars. The story goes (and the details have not been clearly defined) that when the customer’s request couldn’t be immediately honored, he assumed that the bank had run out of money and panic ensued.

Panic Rampant

Soon, depositors arrived in droves, by any and all means of transportation. Though regulators and spokespersons for the central bank assured the bank’s clientele that their money was safe, the flood of customers demanding their full amount kept arriving. The beleaguered bank stacked piles of yuan on its counters to create the appearance of plenty, but even that ploy and the sight of armored cars bringing cash to aid the besieged institution didn’t immediately quell the tide of anxious customers. The run continued for three days.

Customers’ concerns were probably magnified by China’s failure to meet a domestic bond recently. The default was a first in the mega-country’s current financial history, but it lent itself to ongoing itchiness about all aspects of the country’s financial security.

Lessons From The Bank Run

There are many versions of what happened in Yancheng, but the lessons for Americans are the same.

The news of this story spread quickly. All it took was one customer who used a twitter like service to notify his circle of friends. From that point hundreds of people heard about the customer’s experience and soon it gained world wide attention. The Chinese people have a heritage of fearing for the safety of their money. Older generations of people experienced government confiscation of property and wealth. It is no wonder that panic resulted.

So what is the lesson American people can gain from this? When rumors start, don’t panic. Check other sources for the truth to the rumor. Give yourself some time to make the best decision for you and your family. Though time would be of the essence in a real bank failure, it is foolish to over-react.

The bottom line is to look before you leap. Trust in the safeguards that have been built around the country’s financial practices. Certainly you are justified in making immediate inquiries if there is a suggestion that something is wrong, but don’t just assume that the rumors are true. Often, they are not.

The post Run On China Bank Gives Consumers Food For Thought appeared first on Wealth Building Tips.

If You Make Frequent Moves

If you know that your job is going to require that you relocate every few years, or if a bit of “wanderlust” is part of your makeup, you’d be foolish to be burdened with home ownership everywhere you went. Home purchases and sales involve costs, with fees on both sides. Even in a positive market where property values intend to increase, you aren’t likely to break even.

When A House Payment Would Break You

It isn’t just the monthly payment. There tends to be more out-of-pocket expenses with home ownership. Maintenance and repairs, for instance. When debating the factors, add about a thousand dollars a year to the mortgage money for such costs. Best to leave those to another owner while you pay a set rent if things are looking tight.

If you are looking at homes, notice that some of them are in serious disrepair, probably from just this circumstance. The owners can afford the payment, but not the upkeep. Assume that this could happen to you too, if the margins are too skimpy. Maybe, like some home purchasers, you believe you can take care of upkeep and repairs yourself, but if the demands get beyond your capacities, you’ll end up paying a contractor. Being house poor is hardly a desirable offset for the perceived blessings of owning.

What Your Area Offers

If in your neighborhood a home typically sells for $300,000, with a monthly payment of $1,800, but rentals can be had for $1,000 a month, the math isn’t hard to do.

Unless you can easily manage the $1,800, the rental seems the better option. What you lose in such a scenario is the tax advantage that a mortgage offers. But the $800-per-month savings in rental payments goes a long way toward offsetting that advantage. And you needn’t look at the additional costs of maintenance and repairs, which amounts to even more savings.

Making Major Life Changes

A personal financial crunch, divorce, being widowed, relocation, starting a new job — these and many other unexpected life events are all good reasons that you may need to rethink ownership vs. renting, at least temporarily. Any situation that creates a new reality for you should demand such a rethink. In any major life upheaval, renting could provide the flexibility you need before things settle into that new reality. Not being tied to a mortgage could help you safely bridge gaps when things don’t go as you had thought they would.

If owning a home is your dream, go for it. But remember that renting is a good option until the dream comes true.

The post To Own Or Rent? Proceed Wisely appeared first on Wealth Building Tips.

Tip #1 – Stay Current With Your Account Fees

You may have opened your bank account 20 years ago when there were no fees charged to you. Take the time to talk to your bank and ask them what fees they can charge your particular type of account. It may be time to change the type of account you currently have.

One woman was getting charged $27 a month and went into the bank to complain. Her account was designed to encourage savings and would charge a $1 per transaction fee each time she made a withdrawal or processed a transaction. Setting up a different type of account would save her $324 a year.

Tip #2 – List Dates Of Your Automatic Withdrawals

Nothing is as frustrating as checking your online balance, thinking you have money to spend and then not realizing that an automatic withdrawal is pending. Forgetting about the pending withdrawals can be draining your bank account.

Go online and download a month’s worth of activity. Filter out all the automatic withdrawal transactions and figure out exactly what dates the amounts are deducted. Keep the information in a spreadsheet or print it out and carry it with you.

Tip #3 – Discover The Location Of Approved ATM’s

When you withdraw money from ATM’s that are not associated with your bank, you can get charged fees in varying amounts. The fees might not be big, but they could easily put you into an overdrawn status. Now those fees can be large and will make you cringe.

Find the ATM’s that are near your work, where you dine out and near where you shop and use them. One customer had $50 worth of ATM fees in a month. When asked why he couldn’t find approved ATM’s his response was that he knew where they were, he just couldn’t be bothered with walking across the street. Walking across the street could potentially save him $600 a year.

Tip #4 – Save Loose Change

It may be annoying to carry loose change, but having a strategy to deal with it can really add up to some decent money. When you get home from work or shopping, just toss the loose change in a large jar. When the jar gets full, bring it into the bank and use their coin machine to count it and return you with paper currency. You’ll be surprised how much is really in that jar. Take care of the cents and the dollars will take care of you.

Tip #5 – Check Online Accounts Daily

Face it. Some people don’t even do this monthly. One customer went into her bank and was very upset. She had no money in her account. Upon investigation, it was discovered that she had a joint account with an ex-partner and she had never had his name removed from the account. For five years the partner had been stealing from her account in small increments. It was only when he decided to take it all that she even noticed.

Tip #6 – Reduce The Number Of Accounts

Some of us get creative with our savings or checking accounts, opening too many to even remember what they are for. Balancing and tracking all that information is very time consuming and for most people too much of a hassle to handle.

Then there are those people who are flattered when they get a sales pitch to open a new credit card. They think it is cool that someone else says they have great credit so they open another account. Having too many credit cards provides you with too many temptations.

Limit the number of accounts you have. Trim down the number of your credit cards to make them easier to manage. Trim down the number of checking and savings accounts if tracking and managing them becomes too easy to make costly mistakes.

Tip # 7 – Distinguish Between Wants and Needs

The difference between what we think we need and what we actually need, can be enormous. Overspending can lead us to overdrawn account fees, excessive credit card use and a feeling of being out of control.

Advertisers are relentless when they pitch us so we really have to be aware of our own needs. Designer clothes, handbags, eating out, multiple Ipads and cell phones may have their appeal, but they can’t be classified as needs. Spend money on your needs first.

Tip # 8 – Maintain Minimum Balances

If your bank requires you to have at least $300 in your account, find out what fees they can charge if you drop below that amount. If you have believe you are entitled to spend money if you see it in your account, take a new approach. Deposit the minimum balance and in your record keeping system don’t add that amount into your perceived balance. That way the money will always be there. Just leave it alone.

Tip #9 – Check Your Excess Withdrawal Fees

Some accounts will penalize you for withdrawing money. They are designed to encourage you to save and can charge per transaction. Ignoring the terms of the account incurs more expense than you will ever earn on the interest.

Tip – #10 – Set Up Mobile Alerts

Some banks will let you set up text alerts that go directly to your mobile phone. You can text in requests to see your account balances, account activity, make transfers and find ATM locations near you.

Alerts can also be set up to send you a text under specific conditions that you choose. Remind yourself when your balance falls below a threshold or learn when a deposit has been made.

Use technology to make your life simpler, avoid bank fees and live a happier life.

What bad habits do you want to break?

The post 10 Tips To Break Bad Banking Habits appeared first on Wealth Building Tips.

Unemployment and rising medical expenses have driven many people to use credit cards as a “plastic” safety net. With high interest rates on credit cards, debt can keep growing until you are experiencing a debt snowball.

The US Census projects that Americans will carry $870 billion in credit card debt in 2013.

Some may think that their lucky charm is a debt protection product which will cover expenses in times of disability. In 2009, consumers spent about $2.4 billion dollars for this type of protection.

Self Assessment

There really is no lucky charm when it comes to managing your credit card debt, but you can easily figure out if you are having difficulty managing your personal finances.

Personal Questions To Ask Yourself

1. Are you living paycheck to paycheck?
2. Do you have little or no money put aside in a savings account?
3. Are you unable to pay your creditors on time and are starting to receive collection calls?
4. Can you only afford to make the minimum monthly payment on your credit cards?
5. Have you taken out new loans to pay off existing debts?
6. Do you hide credit card bills from family members?

All of these factors can lead you to even worse problems, which will eventually, if not corrected control your life in ways you had never dreamed possible. Low credit scores can affect employment, the ability to borrow money at a reasonable rate and increased interest rates on your current credit card balances.

Solutions

The easiest solution to credit card debt problems is to get serious about saving money and paying off your debt. Going to a website like Utah Saves will let you take a pledge to save money, reduce debt, and build wealth over time as well as encourage others to do the same. So far, 310,000 people have signed up and taken “The America Saves Pledge.”

Benefits of signing up are that you will receive text messages to encourage you to save money. You have access to money management workshops. You will have access to personal financial counselors. You can also share your own money saving tips and qualify to win $25 if your story is selected.

While there, you can set up your own personal savings goal, choose the amount of money you want to save and how long you have to achieve the goal.

Getting Help

For consumers that are feeling overwhelmed by debt, you can call the National Financial Counseling Center at 1-800-351-4195 for a free confidential consultation with a Certified Financial Counselor. Plan to get out of debt today, not tomorrow!

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