Money Management

Apache is functioning normally

The finance world seems to be divided on the topic of credit scores (even if there are free credit scores) and their importance.

Some are all about using their credit to their advantage, whereas others do not care about their credit history at all and think it’s unnecessary and evil.

I’m on the pro credit side. I think your credit history can be used to your advantage, so why not work to improve it?

Plus, you can check your credit score for free. Just click here to find out what your credit score is.

As a background for why we care about our credit right now: We are in the very beginning stages of buying a new home. Since we are both self-employed, obtaining a mortgage is a little more difficult. Having a great credit score is one of the areas where we will be analyzed. We also care about our credit because we like to use credit cards with great rewards programs.

Why is your credit score important?

There are too many people out there who have no clue what their credit score is. Too many people also have never checked their credit report. It doesn’t make much sense since you can get your free credit score easily and you can even get your credit score online for free.

I think this is a MAJOR problem.

Your credit score and credit history are important. You can leverage them and use them to your advantage. Yes, it is possible to have the credit system on your side and have the highest credit score you’ve ever had.

A credit score usually means you can keep more of your money because you will receive lower interest rates on your home or car loan. For example, if you have an excellent credit score, you may be able to qualify for a 0% car loan. However, if you had a bad credit score, you may receive a 24% interest rate on your car loan. Yes, that does exist…

Also, if your credit score isn’t high enough, you may even be completely denied a loan. You may have to pay higher rates or pay larger deposits because you are deemed more risky.

Overall, a good credit score can help you in life.

In the next few weeks, I will talk discuss what is a good credit score, but for today we will talk about why a credit score is important.

When will your credit score be checked?

How some go about with never needing their credit score or credit report is beyond me. Good for those of you who do not need it, but I think most people enjoy having a credit history.

There are many instances where your credit score and/or credit report may be looked at, and sometimes they have nothing to do with a loan.

Home and car insurance – If you have car or home insurance, your rate may be calculated on one factor that you did not know about – your credit score. If your credit score isn’t good, then you may actually be paying more because companies may consider you to be more risky.

Employer – This might be shocking to hear, but there are some employers out there who will check your credit report (with your permission). Industries that often check your credit report include those that deal with financial services, chemical, and defense.

Renting a home – If you have decided that you don’t want to own a home, do not think that you have escaped having your credit history checked. Your landlord will most likely check your credit history. They will want to know if you pay your bills on time or if you have skipped bills entirely. This will say a lot about you as a renter, whether you want to believe it or not. If your credit history is not something they want to see, you may be denied the rental altogether, you may be asked to pay multiple months at once, or you may be asked to find a co-signer just in case you fail to pay your rent.

Credit cards – If you don’t care about credit, then you probably will not care about this one. However, if you want a credit card, especially one with a good rewards system in place (learn more at How To Take A 10 Day Trip To Hawaii For $22.40), then you will want a higher credit score. The good reward credit card offers and acceptances are usually only available to though with good or excellent credit scores.

Loans (home, car, etc.) – If you apply for a loan, your credit score and credit history will definitely be checked. Before you are approved for a loan of any sort, the lending institution is going to thoroughly check your financial history so that they don’t end up losing money on your loan. There are a lot of expenses that go into owning a home, so getting the lowest interest rate possible is very important.

Credit Sesame Review

I once signed up for a free credit score company who used to have those catchy singing commercials. I thought it they were supplying a free credit score, and I remember being charged months later. I didn’t catch the charge the first time either, and I was actually charged a few times before I noticed.

Yes, yes, I know. I’m a personal finance blogger who made a huge mistake!

However, that was a long time ago and I have learned from my mistakes. And that’s why I want to do a review on Credit Sesame so that you can check your credit score for free.

If you are looking for a truly free credit monitoring service, then Credit Sesame is for you. Other companies say that they are free, but they usually charge you a fee later on when you probably won’t notice. Credit Sesame doesn’t ask for your credit card, so there is NO WAY that they can secretly charge you later.

Credit Sesame uses the Experian National Equivalency score, whereas most lenders will look at the FICO score. However, the scores are usually fairly similar.

Okay, so you’re probably wondering how everything is free. They must make money somehow right? Well, yes they do. Credit Sesame makes money by showing you different home loans and credit cards you may qualify for. If anyone clicks on these links, then they may make money that way.

Your next question may be “Will checking my free credit score on Credit Sesame hurt my score?” Nope! It is just a soft pull so it will not affect your credit score.

If you are interested in checking your FREE credit score through Credit Sesame click here. It’s completely free.

How often do you check your credit score? Are you trying to increase your credit score? Why or why not?

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Source: makingsenseofcents.com

Apache is functioning normally

When we first moved out when we were 18, we moved into a very tiny house. Technically, it was not a “tiny home,” but to us it was.

It was extremely small home at around 400 square feet (less than that if you don’t count the basement), but it was cheap, had a backyard and was located very close to the college I was about to start attending.

Also, as a reminder, last year Jordann also posted about how she used to live in a 400 square foot house. I also recently published the interview I Live in a 175 Square Foot Tiny Home – Sailboat Living. I highly recommend you read these two posts!

I recently became interested in tiny homes again when I was watching a documentary on Netflix (we’re starting to find cable less and less worthwhile) called Tiny: A Story About Living Small. This documentary followed a man building his very own tiny home, and the documentary also showed others who lived in their own tiny homes.

I find tiny homes very interesting. They make great use of their space, they are usually very cute, and they are very affordable. Even with the positives below though, I don’t think it’s something I could do.

For me, the negatives greatly outweigh the positives. I think we could do something smaller than what we currently have, but a 200 square feet tiny home is just too extreme for me.

Below are the positives and negatives of living in a tiny house:

Pro: Your housing expenses will be cheaper with a tiny home.

The average tiny home costs less than $30,000 to build. You can also buy a tiny home for very cheap. That price before includes the exterior and interior of the home. That is very cheap! That is much cheaper than the average home.

However, I do think you have to remember about where you are going to place this tiny home. Yes, you can buy land for cheap, but land can also be very expensive in other areas.

Your home will also be cheaper in that your utility bills will be cheaper. It’s much cheaper to heat or cool down a 200 square foot house than a 2,000 square foot house.

Repairs, maintenance and replacements will also most likely be much cheaper in a tiny home.

Con: I think it would be difficult with children and pets.

We don’t have children yet, but we would like to have them in the future. With all of the people I’ve seen and read about who live in tiny homes, I don’t think there’s been a single one who had children or pets.

I think it would just be very difficult with a family. People need their space… Or, maybe that’s just me?

However, I think if it were just one or two people living in a tiny home, then it would probably be much more doable. When we lived in our 400 square foot house (let’s keep in mind that we haven’t lived there in a very long time), it wasn’t completely bad. The size didn’t really bother us at all at the time. I think it really helped that there were multiple small rooms to escape too, and there was also a front and backyard and porch.

Pro: You’ll spend less money on material items.

I am a bit of a hoarder. Just ask Wes and he will probably want to cry just thinking about how much stuff I have.

My closet is jam packed to the ceiling with stuff, and then I also have things in the guest bedroom and in our basement.

Moving into a tiny home would probably be a lifesaver in that I would be forced to think about each purchase I make. Since there’s only so much room in a tiny home, you will buy fewer items.

Con: Having guests over won’t be comfortable.

I remember watching in the documentary when the main person being filmed had guests over.

He invited his family over to see the home he just built and it was extremely cramped. It was almost like everyone had to bend over in order for their to be room for everyone.

Now, I’ll be honest, I don’t throw raging parties or anything, but I would like the option of having people over when I can. This is especially true since we plan on moving to a new state and we would like people to visit us occasionally.

Pro: You may be able to bring the tiny house when traveling.

Okay, this doesn’t apply to every single tiny house, but there are some that are small enough where you can actually travel with it.

You can bring your tiny home to where you want it to be, and you may even be able to do some road trips in it as well.

This makes the list of possible places to live pretty much endless.

Con: Not a lot of personal space.

This is no surprise. They are called tiny homes for a reason. According to the documentary, tiny homes are homes that are 200 square feet or less. That is extremely small.

That’s smaller than my bedroom, and my bedroom is not huge by any means.

Since I work from home 24/7 now, I would like to have more space since I’m at home more. I think I would get a little crazy if I was in the same exact room hour after hour, day after day.

Would you ever live in a tiny home? Why or why not? How small could you go? How big is your home currently?

Also, if you live in a tiny home (less than 250 square feet preferably), I’d love to hear from you and possibly conduct an interview for this blog. Please send me an email if you are interested.

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Source: makingsenseofcents.com

Apache is functioning normally

Outsourcing is something that has taken me awhile to start doing. While I know that in many cases it is a need, for a long time I did nearly everything myself.

However, I recently started to notice that I was working 12 hour days, nearly every single day, and that I was getting snappy whenever someone asked me something because I was SO FOCUSED on working.

Even when I wasn’t working, I was still tired and thinking about work. People aren’t kidding when they say that the self-employed really never get a day off. Even though I absolutely love what I do, thinking about your business/job 24/7 just cannot be healthy.

A break every now and then is needed.

Lately though, I feel like I have had more time than ever. I have been eating very healthy, working out more, and I have had actual days off.

And it’s all because of outsourcing!

Over the past few months, I have been outsourcing more and more in my life. While I am all about being frugal and cutting your expenses, I am also all about outsourcing tasks so that you can have more time for other areas in your life.

If you can afford (that’s the key here) to outsource tasks and it makes your life and/or business better and more successful, then why not?

Some of the things I outsource include writing on the other websites I own/run, technical blog management (thanks Grayson!) on many of my websites, virtual assistant tasks, lawn mowing, and more.

As you can tell, I outsource a decent amount in my life. My life has greatly improved ever since learning to let go and outsource more.

Below are some of the many positives of outsourcing work such as business and household tasks.

1. Outsourcing work is great because you can add more time to your life.

Who doesn’t need more time?

Outsourcing work and household tasks means that you can possibly add hours back to your week or even to your day.

The time you save can be used for better things in life, such as spending more time with your family, doing the things that you enjoy, improving your business, and more.

2. Outsourcing allows you to focus on the bigger picture.

One of the great things about outsourcing work and household tasks is that it has allowed me to have more time to focus on what’s important for my business.

My business and my blog have been growing rapidly over the past few months, and I think a lot of it has to do with outsourcing tasks that don’t need me personally so that I can focus on the bigger picture.

I can focus on creating a better plan for my business, putting more time towards this plan, and so on with all of this extra time I have found.

3. Outsourcing means you don’t have to do the things you hate.

Is there anything out there that you absolutely hate and despise doing?

Outsourcing work and household tasks may mean that you can stop doing the things you hate. This then frees up more time for the things you love.

4. Outsourcing work is great when you are not an expert at a task.

One thing I have seen far too many people do is attempting a task when they have no clue what they are doing. This can include being your own lawyer, being your own accountant, and so on. In some instances this can work out perfectly fine, but in others there should be expert help available.

We outsource household tasks if it would take us forever to do (and we know that someone else can complete the task in a lesser amount of time) or if we know that there is a possibility for a big and costly mistake.

5. Outsourcing is great when you can earn more money.

Time is money!

Before you decide to outsource your life, it is usually a good idea to calculate how much the task would cost you if you were to do it yourself.

For example, if you earn $30 an hour doing whatever you do but you can outsource a task for $15 an hour, then it may be a good idea to look into outsourcing the task so that you can earn money instead.

Also, in order for many businesses to grow, at least some outsourcing/hiring is needed. In order for you to grow your business and to grow your income, you will need to have people working for you.

If you can make more of your time available by outsourcing work and household tasks, this can mean more time to make more money at your day job, more time to grow your business, and more.

Do you outsource your life such as with work related or household tasks? Or would you rather save that money instead?

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Apache is functioning normally

One thing I’ve always been happy with is how me and Wes have always been very open about money.

No, we haven’t always done things the “normal way” (we combined finances YEARS ago and often receive flack for that), but in the end things worked out well for us. I think that’s because we make sure to be open about money.

I have witnessed many people around me make several money mistakes. I know people who have never once discussed a budget (even budgets that suck!) with their significant other, even though they are married. I also know others who have broken marriages/relationships because of secret debt, financial infidelity, and more.

No, life isn’t all about money, but money does play a big factor in a relationship.

I’m all for people doing their own thing in life, but, in general, the money behaviors below can lead to big mistakes when in a relationship. Money mistakes can lead to debt, delayed retirement, stress, heartache, and more.

Who wants all of that? Not me!

Below are financial mistakes that couples should try to avoid:

Assuming that merging finances is right for everyone.

Even though Wes and I have merged finances, I know plenty of others who have completely separate finances and wouldn’t have it any other way. As I always say “Everyone is different.”

There is no right or wrong way for anyone, and there are positives and negatives to combining or keeping everything separate. You should research the differences and see what is right for you and your relationship.

Just because you are in a relationship does not mean that everything needs to become one.

Not talking about money with your significant other.

If you are in a relationship, you should talk about money at least somewhat. And if you are married, in a serious relationship and/or have combined finances, then you DEFINITELY need to be talking about money.

You should discuss your credit scores, past money problems, any debt that the other person may have, how the monthly budget is going, and more. You should be able to openly talk about money with your significant other without it turning into stress or a money fight.

We talk about money all the time. Honestly, at first I think Wes hated it. Now he is used to it and we understand how to talk about money to each other without us starting to bicker at each other. We talk about what we can improve on, what changes need to be made, how our spending is doing, retirement, and more and these are talks that we actually enjoy having with each other.

Having only only person understand the financial situation that you two are in TOGETHER.

This is something that me and Wes are guilty of. I’ve always been in charge of our finances just because I have always been better with managing them. Also, training another person just seemed like added stress because we would probably often over check what we’ve done.

However, this is a huge problem that I am working on changing. We have many bills, retirement, cars, etc., and if something were to happen to me then Wes would be completely out of the loop and it would be very hard to manage on his own. Just clueing your loved one in can be helpful.

Before you laugh and think we are crazy for making this relationship money mistake, MOST couples are actually this exact same way – usually just one person handles all of the finances.

Also, it helps everyone stay on the same page. If one person is doing all the work then all of the financial burden can fall on them as well.

Keeping something money-related a secret from your significant other.

This is a tough one, but it’s something that I’ve seen pop up several times recently. Keeping something money-related a secret from your loved one can be a huge problem.

They can feel like they were left out, that you didn’t trust them, and/or that you are financially cheating.

Money secrets may include:

  • Secret debt.
  • Secret money saved.
  • Lying about how good or bad the family is financially doing.
  • And more, of course!

Completely throwing out the idea of getting a prenup.

Okay, so me and Wes don’t have a prenup, but we also combined our finances when we were young and had nothing. However, there are many instances where having a prenup may be a great idea for a couple. No, it doesn’t mean that you don’t trust the person you are in a relationship with.

The fact is that you never know what will happen later. What if YOU are the problem later on? It happens!

What financial mistakes have you seen or experienced?

If you are not in a relationship, what mistakes will you make sure to avoid?

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Source: makingsenseofcents.com

Apache is functioning normally

Last Updated: April 30, 2023 BY Michelle Schroeder-Gardner – 54 Comments

Disclosure: This post may contain affiliate links, meaning I get a commission if you decide to make a purchase through my links, at no cost to you. Please read my disclosure for more info.

I’m sure almost everyone at one point in their life has felt the need to keep up with the Joneses.

Whether you are five years old and want that new toy everyone is playing with, or if you are 50 years old and are feeling the need to upgrade your house, car, etc., everyone has experienced it.

The problem with this is that keeping up with the Joneses can actually make you broke.

VERY broke.

When trying to keep up with the Joneses, you might spend money you do not have. You might put expenses on credit cards so that you can (in a pretend world) “afford” things. You might buy things that you do not care about. The problems can go on and on.

This can then lead to an excessive amount of debt and potentially set someone back years with their financial goals, if not decades.

Keeping up with the Joneses will make you broke and unhappy because:

  • You will never be happy no matter how much money you spend.
  • You will constantly compare yourself to EVERYONE.
  • You will go into debt because that’s the only way you feel like you can keep up.
  • You will have a loan payment for everything because that’s the only way you can “afford” everything.
  • You won’t have any money leftover for retirement, an emergency fund, etc. because you’re spending it all on things you do not need.

Here are some things to think about if you want to live your own life and start ignoring the Joneses:

Are the Joneses broke?

WHO CARES?

You’ll never know how rich or poor the Joneses are, and honestly it shouldn’t matter to you. You don’t know the whole story behind the Joneses. They could be rich, they could be poor, they could be anything. Maybe they won the lottery, they were given the item for free as a gift, or something else. Maybe they coupon their brains out and that’s how they afford the things they have.

They also might just be putting everything on a credit card. They might be drowning in all different kinds of debt (house, car, student loans, etc.) and putting on a happy face for show.

Just because someone has a lot of material items and/or spends their money frivolously does not make them rich.

Stop wondering how they are paying for the things they have. Start living your own life and stop trying to live someone else’s.

The fact of the matter is that you do not know what the financial situation is. It shouldn’t matter to you anyways because you are supposed to be living your own life.

Figure out why you want to keep up with the Joneses.

One question that everyone needs to ask is WHY you want to keep up with the Joneses. What makes their life so much better that you feel the need to put your life on hold to mimic theirs?

Figuring out the answer to this question can help solve a lot of financial mysteries. Once you figure out why you have these feelings, you can come up with an action plan to stop. If you don’t, it will most likely just turn into a vicious cycle that constantly eats away at you until you become broke.

Think about your own life and your own goals.

What do you care about? You should only do what makes you happy. Just because another person loves buying the newest iPhone the second it comes out or loves having a new car, it doesn’t mean that you have to as well.

Everyone is different.

It doesn’t make your decision better or their decision better, it’s all about what is best for you, and whether or not it can fit in YOUR budget and if it lines up with YOUR goals.

Jealously won’t get you anywhere.

I used to be a fairly jealous person. I would come up with excuses for why things weren’t working out for me and why everyone else had all the newest things. Then I realized something…

Being jealous wasn’t doing me any good.

Instead, I was wasting time and wasting my own happiness. Being jealous about the things that other people have isn’t going to get you anywhere.

  • Don’t be jealous that your neighbor has a nicer house than you.
  • Don’t be jealous that your best friend just bought a nicer car than what you have.
  • Don’t be jealous that your cousin just went on a fantastic tropical vacation.

You don’t know their circumstances, and you have to realize that everyone values different things. Focus on yourself and bettering your own situation. Don’t be preoccupied with tearing others down and making them feel bad.

If you want something, then save up money and reach your own goals!

Live within your means.

The point I’m trying to get at with this whole entire post is that you should always aim to live within your means.

Have your own budget, spend money on things that you can afford (I don’t care if your neighbor can afford it even if you work just as hard as them), create your own financial goals, and more.

Do you try to keep up with the Joneses? Why or why not?

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Apache is functioning normally

The other day I was reading a personal finance article on a major website. I enjoyed the article but I made the mistake of scrolling down to the comments to see what people had to say.

After blogging about personal finance for almost four years, I wasn’t very shocked. 90% of the comments were very negative.

People were saying that anyone who saves money must hate their life, they must lead a boring life, and so on.

This is always sad to read, as many people do not save anywhere near the amount they should be saving.

  • 68% live paycheck to paycheck;
  • 26% have no emergency savings;
  • The median amount saved for retirement is less than $60,000;
  • The average household has $7,283 in credit card debt;
  • The average student loan debt is $32,264.

Due to these crazy money statistics, I believe that more people should think positively about saving money. Saving money can help you stop living paycheck to paycheck, it can help you pay off your debt, it can help you prepare for retirement, and so on.

The first step to saving more money is to figure out why you are unable to save money.

For many people, it’s because they often tell themselves excuses for why saving money isn’t something they can or even need to do.

If you do this, I want you to realize that you can change your ways and that it is possible to save money. I used to always give myself excuses as well but then realized that I was just lying to myself.

If you are interested in saving money, please read How To Live On One Income and 75+ Ways To Make Extra Money.

Below are six common excuses people give for not saving money.

1. “I’ll hate my life if I start saving money.”

There is a myth out there that only very sad and boring people save money. I’ve heard it over and over again.

“Wow, that person must lead a very boring life if they save that much money.”

“I can’t save money because that means I’ll just be eating Ramen and sitting on my couch all day long.”

The truth is that you can still live a great life AND save money. It is possible and many people do it on small and large incomes every single day.

What you need to do is learn how to manage your money better so that you can live the life you want to live, but on a more realistic budget. There are plenty of ways to live a great life on a smaller income so that you can save more of your money.

2. “I’ll figure out how to save money later.”

Many people put off saving because they’d rather spend their money now and/or because they believe they’ll have plenty of time to save money later.

There is really no need to spend every last penny you have just because you “can.”

The truth is that you never know what will happen later, so if you have the ability to save money now, YOU SHOULD.

3. “I deserve and/or need the things I buy.”

I’ve heard this excuse far too many times and it’s one that I used to say to myself all the time as well.

This applies to many areas in life. Many believe they need to upgrade to the latest and best cell phone on an annual basis, that they need a flat screen TV in every room, they need to spend hundreds of dollars a month on cable, they need expensive vacations, and more.

However, that’s not true. If you are struggling with debt, if you’re not saving money, if you’re living paycheck to paycheck, or something else related to these three, then you should watch your spending, figure out ways to lower your expenses, and cut out anything unnecessary.

I’m not saying you need to cut everything out, instead I’m saying you should only buy things that you truly need and want, not just because you think you deserve it or because you want to keep up with the Joneses.

4. “I enjoy my job and can always make money.”

While it’s great that you enjoy your job, you should still be saving money. I have heard far too many people say that they love their job and don’t need to save money because they can just work forever and still be happy.

However, what happens when you can no longer work? You don’t know what the future will bring – you may come across a medical problem, a serious life event, you may hate your job 20 years from now and so on.

Saving money doesn’t mean that your life is ending. You can enjoy your job and save money at the same time.

5. “The city I live in is too expensive to save money.”

This one will probably cause some debate and it will probably make a few mad at me as well. When I published the post Is Being House Poor Limiting You last Monday, I received some flack from a few readers.

Yes, I understand that some cities are quite expensive to live in, but that does not mean that you are unable to save money because of the higher cost of living. It may take time, but you need to either increase your income or cut your expenses, or even do both.

Hard work and sweat may be needed, but you’ll be happier than ever when you are finally in a better financial situation.

6. “It’s too late for me to start saving money.”

Some believe they are either too old to save money or that they are too far in debt to save money. These excuses are simply not true.

It’s never too late to start saving money. Every little bit helps and it can drastically change your future. Saving something is better than saving nothing.

If you are in debt, that doesn’t mean that your world is over either. You can start saving more money so that you can pay off your debt and dig yourself out of the hole you are in. There is no need to continue to add to the debt. You are just making your problem much more worse if you continue doing what you are doing.

What excuses for not saving money do you often give?

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Apache is functioning normally

Last Updated: May 27, 2023 BY Michelle Schroeder-Gardner – 55 Comments

Disclosure: This post may contain affiliate links, meaning I get a commission if you decide to make a purchase through my links, at no cost to you. Please read my disclosure for more info.

Personal finance comes up a lot in my life.

Once someone finds out that I write about personal finance for a living, the conversations about a person’s financial situation never seem to stop coming.

That’s no problem, though, as I love talking about financial topics and helping others.

However, one thing that comes up often is that many are somewhat clueless about their financial situation.

There have been many times when someone has told me that they had no idea what their monthly mortgage or rent payment is, they don’t know how much they are putting towards retirement, they are unaware about how much debt they have, and so on.

More shockingly, some can’t even give me an estimate and have no clue whatsoever about what the amount would be. Or, when they do give me a number, their significant other chimes in about how they are extremely wrong.

This is a problem.

Everyone should be aware of their financial situation. I believe a person should know what their:

  • Mortgage or rent payment is;
  • How much debt they have;
  • How much savings and retirement they have;
  • What their financial goals are; and more!

I understand that sometimes a person is not aware because they are not the person who manages their family’s finances. However, I believe there are many benefits of understanding your family’s financial situation.

Below are some of the many reasons for why you should be aware of your financial situation.

Knowing your financial situation will help you keep a budget.

It would be very hard to create and keep a realistic budget if you had no clue about your financial situation. By being aware, you will understand what you are working towards with your budget.

Knowing your financial situation can help you when it comes to creating a budget, keeping track of expenses, lowering costs, saving more, and so on. It would be very hard to do any of this if you had no clue what was going on.

Being aware may prevent everything from falling on one person.

What problems would arise if something happened to the person who is in charge of your family’s finances?

By not taking part in the finances of your family, you may be in for a rude awakening. You would already have enough on your plate if something happens to a loved one so it is much better to stay aware now than having to worry about the little things later.

Plus, what if the person who is in charge of your financial situation wants YOU to be aware as well? Maybe they want some help every now and then so that the family’s finances are not always weighing them down.

It is not a healthy situation for one person to have to deal with all of the stress from an unwanted financial situation.

Related: Do You Have A Financial Emergency List?

Knowing may stop financial infidelity.

No one wants to be a victim of financial infidelity. However, if a person is unaware of their financial situation then the other person may be able to keep big financial secrets quite easily.

It’s best to always know your financial situation so that you have open communication.

Being aware can help you with your goals.

If someone in your family has no clue what the family’s financial situation is, how would they really know and understand what the family’s financial goals are?

They most likely wouldn’t have the same financial motivation as someone who is aware, which may be holding you back from completing your goals.

Are you aware of your financial situation? Do you think others should be aware?

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Source: makingsenseofcents.com

Apache is functioning normally

Recently, I went to the state license office. When I was called up to the worker’s desk, I was asked to say my address, along with my name, age, and social security number. They wanted me to say ALL OF THIS out loud in a crowded room.

If someone was paying attention, they could have taken down my information and done serious damage. I asked if I could write my information and show it to him instead, and while they were not too happy with that, he agreed (he gave me the paper back, so I was able to shred it). The person that my husband had didn’t ask him to say his information out loud and he was given a form to fill, so I’m not sure why I wasn’t given that as my first choice as well.

If I wasn’t careful, this could have led to me becoming a victim of identity theft. Little mistakes or even something that is no fault of your own may lead to you becoming a victim of identity theft as well.

Sadly, identity theft impacts over 16 million people each year and that number is expected to keep growing.

I’ve been a victim of identity theft and I know it’s a huge headache. Even when you are extremely safe with your information, identity theft can still happen.

If you do find yourself to be a victim of identity theft, there are actions you can take to repair the situation as best as you can. This way you can get your credit score back to normal (or as close as possible), eliminate fraudulent expenses, get your life back, and more. You will want to do this as soon as possible though, so keep that in mind!

Record all actions you take.

Before we go into the main steps that you need to take in order to prevent more identity theft from occurring, you should always keep a record of everything you do.

Keeping a good record is important because you may need to show someone later (such as a credit company or a lawyer) the steps that you took to clear your name. Plus, something may get lost!

According to the FTC, you will want to:

  • Log the date, names and telephone numbers of each person you contact about your identity theft;
  • Send all letters about the situation via certified mail and receive a return receipt;
  • Keep all originals of any documentation that is needed.

Pull your credit report.

If you believe that your identity may have been stolen and that you may be a victim of identity theft, it’s a wise idea to check your credit report to see if any other errors or theft are listed.

You will have to continue to check your credit report on a regular basis (I would check it a few times for a full year after you noticed any identity theft, then at least once a year after that), to make sure that your identity is safe.

Related: Phone Scams: The Best Tips To Avoid Becoming A Victim

Contact the company where your identity was stolen.

In many cases, you may be able to directly contact the company where your identity was stolen. This way you can get the situation resolved, close your account, or whatever needs to be done to stop the identity theft.

If it was something such as your credit card information was stolen, you will be given a new credit card number to prevent any other theft.

The maximum you can be charged under the Fair Credit Billing Act for unauthorized charges is $50, but many companies don’t charge anything.

For bank charges under the Electronic Fund Transfer Act, you may be charged up to $50 as long as you report the fraud within two days. If you wait between 3 to 60 days, then you may be charged up to $500. After 60 days you may have to pay EVERYTHING that is charged under your name.

They key here is to report any fraudulent activity immediately.

Related article: Do You Have A Financial Emergency List?

Contact credit reporting agencies.

The next step you will want to take is to contact the credit reporting agencies so that they can be aware that your identity has been stolen. Ask for a fraud alert to be placed on your credit file so that you can be alerted if anyone tries to do anything with your identity.

The three credit reporting agencies are Equifax, TransUnion, and Experian. Fraud alerts last for 90 days and you can renew after that.

Place a freeze on your credit report.

If you would like to, an extra step you may be able to take is to ask the credit reporting agencies if a freeze can be placed on your credit file. This will then prevent anyone from using your credit report or credit score without direct permission from you. If anyone does try to use your credit file, the application will be immediately declined.

Keep in mind that if you do this, you will have to contact the credit reporting agencies before you need your credit so that they can lift the freeze in time.

Dispute incorrect information on your credit report.

If there is something wrong on your credit report, you should always dispute it.

You may have to send a letter to the credit agency, to the fraud department of where the identity theft took place, and provide proof of the theft, but it is well worth it to clear your name.

Whatever you do send in, keep a record and all original documentation just in case you need the information in the future.

File the identity theft with the Federal Trade Commission.

Another step you should take when it comes to identity theft is to file a report with the FTC. This way it is on file and they may be able to provide even more up-to-date tips on what to do next.

Report the identity theft to the police.

While the police department may not be able to do much usually when it comes to an identity theft case, having it reported is a small step that may go a long way.

You never know if a police officer may come across someone who has all of your information on them (I have actually heard of this happening and the person was arrested because they had a book full of stolen identity information). Also, you will need a police report filed if you plan on reporting identity theft to the FTC.

Have you ever been a victim of identity theft? What happened?

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Source: makingsenseofcents.com

Apache is functioning normally

Last Updated: May 27, 2023 BY Michelle Schroeder-Gardner – 38 Comments

Disclosure: This post may contain affiliate links, meaning I get a commission if you decide to make a purchase through my links, at no cost to you. Please read my disclosure for more info.

We’ve all seen them – 0% financing on certain items such as cars, electronics, appliances, jewelry, and more. The offers seem great and you may even be wondering what the catch is.

Well, I know what the catch is. Actually, there are many catches.

If you’re careful, a 0% financing offer can be a good deal. I’m not going to say that they are always bad because I know they aren’t.

I have taken part in several 0% financing offers. Some took place before I realized what the catches were (yes, I will admit that one time when I was younger I didn’t read the fine print, but thankfully I never had to experience any of the negatives), but now I’m much more careful about them due to the fact that I know there may be consequences.

Yes, some companies are great at sharing what the consequences may be, but I know that there are some companies that don’t make everything so obvious.

Below are some of the many things you should think about when it comes to 0% financing offers.

You may still have to pay interest.

The biggest catch of a 0% financing offer is that you may end up having to pay interest still. And, if you do, the amount may be significant.

If you don’t pay your monthly bill on time, you may have to start paying interest immediately, plus pay interest for all of the previous months or years as well. This is because you have basically voided the 0% financing contract and you will revert to their normal terms, which may be an interest rate of 25% or more.

This applies even if you are on your very last payment for the financing offer!

You may accidentally miss a payment.

Even if you just accidentally miss a payment (such as if you had a crazy month and forgot about a bill), then you may still have a problem. You may have great credit, a great savings rate, and more.

However, mistakes happen.

This mistake could cost you a great deal of money if you forget to make a payment on a loan that you are receiving a 0% interest rate on. So, even if you make all of the payments except for the very last one, you will be charged interest for the life of the loan, which may be thousands of dollars.

Related: How I Manage My Finances So I Can Save Time and Worry Less

You may spend more because you aren’t paying for the item upfront.

There’s a reason why retailers and companies often provide these great offers.

One of the main reasons is that by offering a monthly payment option, the average person is likely to spend more money at a company. Things can seem more affordable and attainable to the human mind when it’s broken up into a much smaller monthly payment.

Before you decide to sign up for a 0% financing offer, you should make sure that you can actually afford the payment and the whole cost. Remember, just because you think you can afford the monthly payment now, things may change in the future and you may be stuck paying for all of the interest charges as well.

Your credit may be damaged.

The last negative for 0% financing offers is that you may harm your credit. Your credit score may be damaged and you will be increasing your credit utilization rate.

If you plan on using your credit in the future for something big such as a new home, you may want to turn down the 0% financing offer because you may actually hurt your chance at a good interest rate on a mortgage.

Related: These 4 Mistakes May Be Holding You Back From A Good Credit Score

There are ways to take advantage of these offers.

Like I said above, I have taken advantage of several 0% financing offers. There are ways to be smart and make the purchase you are about to make worth it.

Here are my tips:

  • Mark the monthly payment date on your calendar. Whether you put it in your phone as a reminder or if you mark your kitchen calendar each month, this is a great idea so that you do not accidentally forget to make a payment.
  • Be careful about what you can actually afford. Just because whatever you are buying is on a monthly payment plan, it doesn’t mean that you should rack up tons of debt. Still be realistic about what you can afford.

Have you ever taken advantage of a 0% financing offer? Why or why not?

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Source: makingsenseofcents.com