FDIC insurance protects you from losses if your bank goes bankrupt. Although banks are usually very safe places to keep your money, they do loan your money out and invest it in a variety of ways. The people in charge of banks are not always as careful with your money as you are. As we saw in 2008, banks can go out of business so it’s important to be protected. The federal government guarantees up to 250,000 dollars per depositor (that’s you) and up to 250,000 dollars for retirement accounts (401Ks and IRAs). Credit unions are insured up to the same level through the National Credit Union Administration or NCUA.

As head of the Federal Deposit Insurance Corp., you can thank Sheila C. Bair for the security of your bank account balance. FDIC-insured products typically include checking and savings accounts: You can find out if your bank is insured by the agency by following this link http://www2.fdic.gov/idasp/main_bankfind.asp.

Share/Save

That said, often she’s right. But there is a healthier way to help folks who want to do a better job managing their money – which doesn’t require scolding. Chances are you already know you should learn more about managing your own money. You often already know the right answer to whatever question you have and, equally as often, you either don’t trust yourself or find managing your money a drag, boring or just plain anxiety producing. (For some, the mere thought of money management drives them to straight to the bar.)

Here’s a dirty little secret that Suze doesn’t want you to know about – finance does not have to always invoke your mother! You don’t have to feel like a “bad” girl every time you want to buy something. On the contrary, finance is a valuable tool you don’t have to dread learning about and understanding. And it can actually be fun – after all the better you understand your finances, what you have and what you don’t, the more you know what can an can’t do. Hello, shopping!

If you’ve read my blog before, you know that most people get into trouble with their money because they don’t create a budget or worse, do, but promptly ignore it. Contrary to what Suze might tell you, this is not a personal failing. The reasons most budgets fail is not because of how you budget – it’s how you use your budget. Attitude is everything. Most budgets fail because they seem to stop you from doing what you want: “It’s not in my budget.” But a good budget really tells you what you can spend. “It’s in my budget.” Start thinking of a budget as a way to help you achieve your life’s goals and dreams. A budget doesn’t tell you what you can’t do, it tells you what you can do. There, isn’t that more fun. No putting you down for your shoe habit. No pointing out what you are doing wrong. Just a reminder that making and using a budget helps you manage your money.

So even if you blow it (or are about too) you can get beat up by Suze or remember,on rare occasions, being bad is good!

http://www.nytimes.com/2009/05/17/magazine/17orman-t.html?hp

Share/Save

What do you do with the statements you receive from your bank or from your investments? Do you use them to reconcile your checking account? Do you actively look at your portfolio? Or, do you do you toss them unopened into a drawer?

As daunting as it can seem, it really is a good idea to open them up and take a good long look. You should reconcile your bank account very month. Reviewing your statement and balancing your account ensures you know where every penny of your money has gone – except of course the cash that keep disappearing from your wallet; we’ll save that for another blog. Reviewing your statements also helps prevent identity theft for the same reason – you’ll know quickly if someone has been using your accounts.

Your brokerage statement is no different. If you have investments you should be reviewing them regularly. You want to make sure your investments goals are being met and that your portfolio is diversified.

Not convinced? You’ll need to know how much money you have before you can know if you afford this season’s staple: the statement dress. The best way to do that? Open your statements.

Fashionista Fact:

This season it’s all about the statement dress. (www.net-a-porter.com) It’s a great solution for any event – office to wedding. Add a blazer for the office, leggings for day, high heels for evening, or belt it for a new shape. Find a great one … but not two or three!

Share/Save

Actress/model/waitress. Writer/Waiter. Investment banker/Dog walker. No matter how you slash it, finding a job in this economy is difficult. That’s why savings matter. When times are good, it is so easy to spend a little here, spend a little there – after all what’s a $20 drink between friends. When times are bad, those carefree habits can hurt. Suddenly you find your cushion – or complete lack of one – stressed to the limits. That’s why it is so important to save. You should save when times are good and it is relatively painless. You should also try to save when times are bad and it hurts.

How much should have in savings? Three months worth of living expenses is the minimum. That means enough to cover the things that really matter, for example your rent, loan payments, groceries, utilities. Six months would be better. As we have seen in this economy it can take at least that long – if not longer to find another position.

Some cuts are easy: did you go out to lunch today? That money could have been put in the bank. Did that sweater set, the one on sale, the one that makes your cropped pants perfectly perfect, cause spontaneous credit card use? That too, could have gone in the bank. Did you have more than one or two drinks when you were out this weekend? You get the idea.

If you are already way past those kinds of cuts you’ll have to dig deeper. That may mean canceling your land line and relying on your cell. Or canceling cable and relying on network TV. Hard times call for hard choices. Finding a way to live within your means can be incredibly challenging – but it is worth it.

So next time someone asks, “does size matter”, you’ll be able to answer yes with a smile and cash cushion.

Share/Save

Share/Save

This was never the way I planned
Not my intention
I was so dumb, shoes in hand
Lost my discretion
It’s not what, I usually do
Just wanted to try them on
They were way too expensive
Caught my attention

I bounced a check and I hated it
Got calls from the bank
I bounced a check and I hated it
I hope my credit score isn’t wrecked
It felt so wrong
It felt so bad
It means I’m in debt tonight
I bounced a check and I hated it
I hated it

Share/Save

She decided to start with her checking account.  If she could reconcile her money, Justin would be easy.  Don’t know how to reconcile your checking account?  Leave me a comment and I will send you easy to follow instructions.

Share/Save