Archive for April 2014

By Peter Andrew

Been there, done that, got the bills for overdraft fees. I know some readers will look down their noses at me for my bad financial planning, but a whole lot of others will know all too well that nauseous, sinking feeling when the realization dawns: This month's money simply won't stretch until payday.

It's only human to panic in such situations, but panicky people often make dumb choices. So the first things to do are sit down, calm down and think the situation through. Here are three options that may, depending on your personal circumstances, be open to you:

1. Borrow from friends, family or your employer

This may be the most excruciatingly embarrassing option, but it's usually the one that makes the most financial sense.

By Holly Johnson

Ever since I opened my first checking account at the age of 18, I've used a brick-and-mortar bank. I hope I'm not aging myself too much, but that really was the only option at the time. The Internet did actually exist then (it was 1998), but online banks weren't on the scene quite yet. And, believe it or not, Facebook, Google and Twitter didn't exist either. Now I feel old.

But times have changed. Bank transactions are becoming increasingly digital and the bank branch is becoming a bit of a dinosaur. Sure, people still use them, but for many, it's not a primary banking source. In fact, almost everyone I know uses online banking because of how easy it is to make electronic transfers, track their savings and spending and shop for financial products with the click of the button. Everyone but me, of course.

However, some online banks have recently given me reason to consider some new possibilities. In fact, one online bank, Synchrony Bank Optimizer Plus almost has me convinced. Here's why.

About Synchrony Bank Optimizer Plus

Optimizer Plus is an online bank that is backed up by Synchrony Bank -- formerly known as GE Capital Retail Bank -- and its 80 years of experience in consumer banking.

By Holly Johnson

The first open enrollment period for the Patient Protection and Affordable Care Act, commonly known as Obamacare, has come to a close, and a reported 7.1 million new enrollees are currently settling into their new health insurance plans.

Now that open enrollment is over, Americans who chose not to purchase a plan must pay the greater of $95 or 1 percent of their net income in 2014. There are only a handful of ways for individuals to escape this mandate, and they include certain exemptions based on citizenship status, income and hardship. Another little known fact: Families can also avoid the individual mandate by joining a recognized health care sharing ministry.

What is a health care sharing ministry?

Health care sharing ministries work much like their name suggests. Individuals who join a ministry pay a monthly share or pledge that is then distributed to someone in the ministry who is experiencing a health care need.

By Justin Boyle

Imagine this: You walk into a credit union to open a savings account, and the teller responds by selling you lottery tickets.

Odd as it may seem, this type of scenario plays out all over the world. They're called prize-linked savings accounts, and a few states in the U.S. are making use of them to give residents a little extra incentive to put money away for a rainy day.

A long history

Prize-linked savings accounts might seem like an innovative concept, fresh off the desk of some ground-breaking personal finance start-up founder, but the truth is that they've been around longer than the United States itself. In 1694, to help defray debt incurred during the Nine Years' War, officials in England instituted a public investment program that offered substantial lottery prizes to around 2.5 percent of investors (and an APY of 6.15 for 16 years, believe it or not).

By Georgie Miller

So you've done it: Your financial life is under control. You've strengthened your finances by completing most, if not all, of these key financial tasks:

• Created a budget to ensure you're not spending more than you earn.
• Stashed some funds in a high-interest savings account in case of an emergency.
• Taken advantage of a low interest balance transfer to decrease the interest you are paying on consumer debt (or paid off your debt entirely).
• Optimized your spending by choosing the best credit card reward programs for your habits.

You feel like shouting about your success from the rooftops! You are excited to share how time, patience and determination allowed you to conquer your debt demons. Unfortunately, friends or family may not appreciate your success story -- particularly if they're still struggling.

How can you help the people you love through their financial difficulties, especially when lending money to loved ones can be dangerous? Let's say you can't (or won't) drop a wad of cash to solve someone else's money woes. Try these simple strategies for offering support:

1. Give them time to recognize their mistakes

It can be tempting to lecture people if you believe their problems are of their own making -- especially if the solution seems obvious to you. Similarly, it can be tough to hold your tongue when a loved one is on the verge of making what you believe is a financial mistake.