Reward Yourself

I am finding that more and more the traditional way of taking control of our money does not always work. It sounds cheap and dirty but maybe this is what we need to resort to for seeing results in your bank account.

For every $1,000 dollars you save, treat yourself at the spa. Or buy that new $100 purse you had your eye on. Yes, you are spending $100, but you also have $1,000 saved in a hard-to-reach account you probably wouldn’t have saved.


Rest more. When we are going going going non-stop, we spend our money more unconsciously. Take ½ hour each day to plan your purchases, make decisions about your bills and overall be less stressed about the big financial issues in your life (i.e. new job, paying bills, your 401k).

Find a buddy. There is no question that you are going to stick to your spending plan better when there is someone to hold you accountable. It’s your choice if you pick the friend who will kick your butt or the friend in a similar situation as you. Regardless, you are more apt to see results when you are NOT doing it by yourself.

Weigh in everyday. Instead of going on the scale every day, open an envelope every day, check a savings balance, look up a mutual fund. Don’t get obsessed with it but by facing your finances everyday, you are also getting in the habit of bringing money into your life on a regular basis. Part of the reason we need a motivator is that we have been ignoring our money for too long.

High CD Rate and Money Market Account

I am also on the lookout for high interest rate for money market accounts or CDs. This morning I came across two rates that were worth mentioning.

1) HSBC DIRECT. They have a 12-month CD that is paying 2%. While it might not seem that high, that is the highest rate I have seen in a long time to lock in for a relatively short time period.

2) SmartyPig. Take the name with a grain of salt. It is FDIC Insured and paying 2.75% for a money market. There doesn't seem to be any other catches for now. Let me know if you have an account there and your thoughts.

Galia and SIMPLY MONEY on CNN!

Yes, the same week we were on CNN too! They also filmed SIMPLY MONEY. This was an investing class. See the clip here!

Experience SIMPLY MONEY in person. Sign up for the September class NOW.

Galia and SIMPLY MONEY on TODAY SHOW!

The TODAY SHOW came to film SIMPLY MONEY a few weeks ago. Their premise is tracking the success and progress of a few women in the class. See the clip here!

Experience SIMPLY MONEY in person. Sign up for the September class NOW.

Visit msnbc.com for Breaking News, World News, and News about the Economy

FICOlogy as found on DailyWorth.com

In every conversation I have with clients or at seminars, making sure your credit report is as solid as ever is absolutely key! That is why I loved this article as found on DailyWorth.com. If you aren't already signing up for their daily easy to read newsletters, what are you waiting for? Here is a little tidbit from the article. The rest is on their site.

Craig Briskin, a consumer and anti-trust class action attorney with Mehri & Scalet, PLLC, wrote this expert's perspective on FICO exclusively for DailyWorth.

Times are tough for that thing we call money. Jobs are disappearing, credit is drying up, and no one seems to know when things will turn around. Part of the problem is how credit reports and scores are calculated. Now more than ever, it's important to avoid any blemishes on your record. People with good credit scores not only qualify for credit, they can also get better rate offers on mortgages and car loans.

Our system outsources most credit rating to three major, private credit bureaus, which are known for mixing up the files of people with similar names and Social Security numbers. The U.S. Public Interest Research Groups (PIRG) and Consumers Union found serious errors in 25% of credit reports.

Fair Isaac Corp. developed the FICO (short for Fair Isaac Corp., get it?) score, and claims that it's based on five major categories of factors - payment history is the most important. But they don't publicly disclose the remaining factors are or how they're calculated. FICO scores range from 300 to 850; 720 is the average score, and that's what you should shoot for.

REST OF THE ARTICLE HERE.

What to Carry in Your Wallet

One way to really change your spending is to stop using your credit cards. Is that realistic? Not for many of us! One way I found to minimize my credit card spending is to come up with a weekly amount I want to put on my credit cards. I literally keep a POST-IT piece of paper on my credit card in my wallet. Every time I use it for that week, I write the amount I spent. I just use the pen that I used to sign my name. This way, I can quickly tally up what I spent that week.

For example: $23 at drug store, $50 at grocery store, $45 at GAP Kids. I can quickly tally that I spent $118 for the week so far. I am still under my $200 for the week and can still afford to go out to dinner for $80. Not bad!

Money Myths

I found this article on TOUGHMONEYLOVE and some of the myths really rang true from comments I hear from clients or seminar attendees. I took a few of his myths and added my comments.

1. You spend more time monitoring your credit score than you do evaluating the performance of your investments.

In every seminar I give and almost every client I meet with I get asked about their credit score. Whether they want to know how to raise it or monitor it or if they should spend a monthly fee for insurance and monitoring. That energy should definitely be put towards monitoring your investments and understanding how they work instead. I am not a fan of paying a monthly fee to the credit agencies. Instead, open your bills and go online every week to check your bank balance.

2. You think re-paying a 401(k) loan is an investment.

My cardinal rule is you do not touch your 401(k). You will need that money when you get older. I have heard that it is ok to touch your 401(k) money if you want to buy a home. I disagree. Find that down-payment money elsewhere.

3. Instead of asking the price of the new car on the lot, you ask “how large will my payments be?”

This is directly from TOUGHMONEYLOVE. If a new car salesman can get you involved in this conversation, you are finished as a smart consumer. I’ve never asked this question because I pay cash for cars. Car dealers don’t like this because of all the money they make on financing. With all of the focus on payment size, it makes me wonder if car buyers can even do the math necessary to total their payments up.


4. You believe a cash-out refi is a debt reduction strategy.

Who hasn’t heard someone say that they were going to re-finance their mortgage so that they can pull cash out to “pay off debt”? Uh…what part of “debt” don’t they understand?


5. You are afraid to open your mail when the bills arrive.

Whenever I ask this question in a seminar, more hands are raised than not. One way to get around this is to deal with your money every week. If you open your mail as soon as it comes in, you will feel more on top of your bills and money issues. Try it.

6. Mr. FICO is your friend. Mr. Net Worth is a stranger.

How hard have you worked to save money into your 401(k), save for your down payment and put money in the bank? Probably really hard. Yet you don’t know how much it is worth or how much your investments are today? Treat your money (and yourself) with more respect. Make it a priority. Know your net worth.