10 Financial Tips for Sexy Consumers

Being sexy can be summarized in 3 main areas: attitude, confidence and image. Attitude relates to your views on life, usually an optimistic person who can take criticism well and always remains positive. Confidence is how you feel about yourself no matter what someone else says about you or does to you. Image is the physical appearance of a person, their smile, their teeth, their hair, their walk, their laugh, their face, their body, how they dress, how they smell.

According to a study by ING 61% of the men that participated in the survey feel that women who are frugal are smart and sexy. Cash is king and having a savings account makes you more attractive and appealing. When you are in debt and have bad credit it is hard to focus on anything else and if you do, you can’t give it your all because of your financial problems especially when it comes to relationships.  Saving is smart. Investing is smarter. Good credit is smart and sexy. Saving the environment is sexy. Saving is sexy. Here are 10 financial tips for sexy consumers.

1.     Being debt free is fantastic. Save money on interest by paying more than the minimum monthly credit card or loan payment which helps pay your balance down faster so you can get out of debt. Keep debt balances at than 10% of your monthly income.

2.     Pay down debt as fast as twista rhymes. Pay ½ the balance with the 1^st paycheck then pay the remaining balance with the 2^nd paycheck or pay the minimum monthly payment when you get the bill, then each week pay as much as you can toward the balance.

3.     Act like a celebrity and go green. Help save the environment by filing your taxes electronically and get your refund in 2 weeks from the date of filing. Use tax preparation software like Turbo Tax or Tax Cut to help with the tax filing process.

4.     Stay cozy and keep money in your pocket. Do an annual check on your heating system. Insulate your attic. Automate thermostat settings and use the lowest setting. Seal drafts and cover floors to retain heat. Open blinds during the day to let heat in.

5.     Social media can be your enemy. Many debt collectors and some state taxing authorities are searching for consumers on social media networks who owe debt. If you owe debt, hide your profile from public access or just be responsible and pay your debt.

6.     Plan for the unexpected. Create an emergency savings fund to cover all of your monthly bills and expenses for 9-12 months. Create a backup plan if some financial crisis occurs and you need extra money. Have a plan A, B, C and D.

7.     Shop like the rich. Set a budget and find bargains online, use coupons or shop at holiday sales. Mix and match basic pieces with fashionable accessories such as belts, earrings, bracelets, shoes and purses. Buy knockoff pieces for extra style. Shop at discount stores and outlets for name brand pieces for less.

8.     Cut back. See what areas you can reduce spending by creating a balanced budget to stay out of debt. Thirty-five percent should go towards housing, 15% towards debt, 25% towards transportation, 10% towards savings, and 15% towards other expenses.

9.     Plan for the future. Open a retirement account and save at least 10% towards your retirement each month. You will need 60-80% of your pre-retirement salary for a minimum of 20 years to have enough money during retirement or at least $1,000,000. 

10.  Don’t be a question mark.  Know your net worth (assets - liabilities). Verify your net worth annually. Know how much you earn, how much you owe and how many assets you have. Use the figure as a baseline to increase your net worth on a yearly basis. 

Financial Help for College Grads

According to the Federal Reserve Bank of San Francisco the unemployment rate for college graduates in 2010 was over 8%. According to EPI’s new paper, The Class of 2010, recent college graduates under age 25 the unemployment rate is 9%. Monster.com has a special section on its website for recent college graduates to help them find jobs. USAjobs.com has federal job listings by college major.

According to Pianalto, recent college graduates don’t experience skill and geographic constraints because they tend to be highly educated and mobile. College graduates have suffered worse in this economy than any other group and are having a hard time finding a job. Trying to find employment during a financial crisis can limit total earning potential over the life of a college graduates’ career.

Another factor college graduates have to worry about is the debt accumulated while in school. If they are unable to find a job, they are also unable to pay their debt. When you find a job focus on paying down debt. Here are some financial tips for recent college graduates to help you reduce debt and improve your financial situation.

Housing
1. Stay at home for at least a year after graduation. If you have to live on your own buy an efficiency, studio apartment or loft. You can get a roommate but you have no control over whether they pay their rent or pay on time.
2. Your housing costs should be no more than 35% of your total net income (after taxes).

Auto
1. Skip the car. Don’t buy a car your first year of employment. Catch public transportation; borrow your parents’ car or a friend’s car when needed. If you must buy a car buy a used car.

Paying Down Student Loans
1. Use caution with consolidation. Consolidating student loans combines your loans into one payment but may or may not provide you with a lower interest rate. You may not be eligible for various student loan forgiveness programs if you consolidate your student loans.
2. Pay more than the minimum monthly payment. Your loan accrues the greatest interest in the first 2-3 years of the loan.

Investing (401K's/IRAs )
1. Start with your company's 401K. Contribute as much as you can to your retirement account. You will need at least 70-80% of your income during retirement and will need a minimum of $1,000,000 to retire.
2. Focus on long term growth. You have to be willing to leave your money untouched for the next 5 to 10 years. Otherwise you won't be able to see the benefits of your money growing.

Spending/Budgeting
1. Create a budget. Make your budget flexible to accommodate for unexpected expenses and include savings goals. Include monthly expenses and debt plus your monthly income. This will help to readily see the areas where you can reduce expenses. Create an emergency fund that is enough savings to pay your bills for at least 9 to 12 months.
2. Reduce your credit card debt. Pay more than the minimum monthly payment.

Managing Credit Card Debt
1. Stop spending. Don't spend money you don't have. This will result in your owing more money. Use your credit card for emergencies only.
2. Setup a payment plan. Setup a payment plan with each of your creditors to pay off your debts. Identify any terms and negotiations you would like to make and stick to the terms.

Credit
1. Order a copy of your credit reports at annualcreditreport.com and fix any errors.
2. Get current on any delinquent accounts.

Financial Planning
1. Use a broker or financial advisor to setup your retirement account.
2. Buy insurance. Buy health, life, disability insurance.

Financial Tips for 2011

Paying Down Debt

1. Future. The future is an unknown.
2. Tax Rates. Tax rates may be higher in 2011 which means you may bring home less money. Tax credits may be reduced, child tax credit will be reduced to $500 in 2011, the deduction for mortgage insurance premiums will be eliminated, and energy saving improvements will be reduced to 10%.
3. Minimum. Paying more than the monthly minimum pays your balance down faster so you will owe less next year (interest, finance charges, etc.).
4. Shopping. Cut back on shopping to reduce changes of going into more debt or having large credit card balances after the holiday shopping season.
5. Variable. Many credit cards have been converted from fixed to variable rates which means if the federal rate increases, so will your monthly payments
6. Finances. Can improve relationship with your spouse or partner related to arguments over finances
7. Retirement. You can't focus on retirement if you are in debt

Tips to Plan for the Future

1. Change your thinking. Eliminate negative thoughts about money and bad money habits. Follow those who have good spending habits and consult a professional.
2. Emergency Fund. Create an emergency fund to cover bills for 9-12 months.
3. Plan for retirement. Contribute the maximum to get matching contributions. You will need 60-80% of your current retirement salary for a minimum of 20 years to have enough money to cover living expenses during retirement. Save 10-20% each month towards retirement.
4. Pre-retirement. One year before retirement start reducing your expenses to retirement levels to get adjusted to living on a reduced income.
5. SS Income. Don't count on social security unless you are near retirement age.
6. Financial Goals. Sets financial goals, i.e. plan for retirement, children's college education, pay off mortgage, pay off car note, etc.
7. Contributions. Increase retirement contributions with each salary increase

Planning For Retirement

1. Sign up. If you don't have a retirement account, run to your employer and sign up. Setup an account even if you are self-employed (SEP) or stay-at-home mom (spousal IRA).
2. Diversify. Don't put all of your eggs in one basket. Ensure your retirement account is diversified. This helps to offset losses.
3. Live below your means. Reduce spending and create a budget.
4. Pay down debt. Pay off large debts and keep debt at no more than 10% of your monthly income after taxes (credit cards, medical expenses, other loans, etc.)
5. Estate planning. Perform estate planning (will, trust, health care directive, etc.). Hire a lawyer to prepare documentation.
6. Review. Review financial statements on a regular basis to check for errors and stay informed about your account.
7. Backup Plan. Create a backup plan if some financial crisis occurs and you need extra money. Have a plan A, B, C and D. Use what-if scenarios.

Saving Money

1. Budget. Create a spending plan or budget to see what areas you can reduce spending. Thirty-five percent of your budget after taxes should go towards housing (mortgage/rent, utilizes, repairs), fifteen percent towards debt (credit cards, student loans, personal loans), twenty-five percent towards transportation (maintenance and car payment), ten-percent towards savings, and fifteen-percent towards other expenses (groceries, prescriptions, medical expenses, etc.).
2. Bulk. Buy items in bulk by shopping at wholesale or discount stores such as Costco, Sam’s Club or BJ’s. Buy generic brands for food, canned goods, paper products, dry goods and prescriptions.
3. Comparison Shop. Look at prices of at least three different companies to see which has the best deal. Ask if the company will honor competitor prices. Look for coupons and specials at online websites such as bizrate.com or pricegrabber.com.
4. Utilities. Buy the cheapest landline plan available. Turn to the lowest settings when you are not at home and use the recommended settings provided by the utility companies to save money on your monthly bills.
5. Bundle. Bundle services to save money on insurances such as car, mortgage and homeowners.
6. Downgrade. Downgrade all your services such as cable, internet, and cell phone. Downgrade your car or home to a cheaper model. You can sell your car and catch public transportation. If you need a car you can rent a car or use a Zip car.
7. Sell Items. Sell new or used items on eBay or Craigslist for extra cash.

End of Year Financial Tips

2010 Roth IRA Conversions

1. Funding. Funded with after-tax (post-tax) dollars, offer tax-free growth and tax-free distributions in retirement
2. Distributions. No minimum distributions and no age requirement
3. Income. Can convert to a Roth IRA regardless of your income
4. Pay taxes. Conversion taxes can be spread over two years: 2010 and 2011
Conversions after 2010 will pay the full tax due
5. Conversion. Can convert back to traditional IRA by October 15, 2011
6. 1099. No 1099 is required
7. Deadline. Make conversion by 12/31/10

Paying Down Debt Now Can Help You Next Year

1. Future. The future is an unknown.
2. Tax Rates. Tax rates may be higher in 2011 which means you may bring home less money. Tax credits may be reduced, child tax credit will be reduced to $500 in 2011, the deduction for mortgage insurance premiums will be eliminated, energy saving improvements will be reduced to 10%.
3. Minimum. Paying more than the monthly minimum pays your balance down faster so you will owe less next year (interest, finance charges, etc.).
4. Shopping. Cut back on shopping to reduce changes of going into more debt or having large credit card balances after the holiday shopping season.
5. Variable. Many credit cards have been converted from fixed to variable rates which means if the federal rate increases, so will your monthly payments
6. Finances. Can improve relationship with your spouse or partner related to arguments over finances
7. Retirement. You can't focus on retirement if you are in debt

Tips to Help You Plan for the Future

1. Change your thinking. Eliminate negative thoughts about money and bad money habits. Follow those who have good spending habits and consult a professional.
2. Emergency Fund. Create an emergency fund to cover bills for 9-12 months.
3. Plan for retirement. Contribute the maximum to get matching contributions. You will need 60-80% of your current retirement salary for a minimum of 20 years to have enough money to cover living expenses during retirement. Save 10-20% each month towards retirement.
4. Pre-retirement. One year before retirement start reducing your expenses to retirement levels to get adjusted to living on a reduced income.
5. SS Income. Don't count on social security unless you are near retirement age.
6. Financial Goals. Sets financial goals, i.e. plan for retirement, children's college education, pay off mortgage, pay off car note, etc.
7. Contributions. Increase retirement contributions with each salary increase

Tips to Plan For Retirement Now

1. Sign up. If you don't have a retirement account, run to your employer and sign up. Setup an account even if you are self-employed (SEP) or stay-at-home mom (spousal IRA).
2. Diversify. Don't put all of your eggs in one basket. Ensure your retirement account is diversified. This helps to offset losses.
3. Live below your means. Reduce spending and create a budget.
4. Pay down debt. Pay off large debts and keep debt at no more than 10% of your monthly income after taxes (credit cards, medical expenses, other loans, etc.)
5. Estate planning. Perform estate planning (will, trust, health care directive, etc.). Hire a lawyer to prepare documentation.
6. Review. Review financial statements on a regular basis to check for errors and stay informed about your account.
7. Backup Plan. Create a backup plan if some financial crisis occurs and you need extra money. Have a plan A, B, C and D. Use what-if scenarios.