10 Latest Blogs

Report forecasts sunny days ahead for housing market

2012-05-10T13:00:00

The housing market is showing signs of stabilization – good news for both buyers and sellers – according to figures from a recent National Association of Realtors report.

According to the report, home prices rose in 74 out of 146 metropolitan areas in the first quarter of 2012. Based on data from the report, NAR predicts total home sales will increase 7 to 10 percent in 2012, which would be a welcome shift for homeowners who are looking to sell.

The optimistic outlook for the housing market extends to homebuyers as well. Mortgage rates in the U.S. have reached record lows. According to Freddie Mac, the average rate for a 30-year fixed loan has fallen to 3.83 percent, while the average for a 15-year fixed loan also reached a record low at just 3.05 percent.

However, it’s important to keep in mind that a good credit rating is the key to qualifying for the best loan rates. So if you are in the market for a home, you should request free copies of your credit reports. Review the information on your credit reports for errors and inaccuracies, while also noting any past-due or delinquent accounts. Any accounts that aren’t current will negatively affect your credit score, so you should make any necessary payments on those outstanding debts prior to applying for a loan.

At MMI, we realize the process for first-time home buyers can be daunting, which is why we created a free first-time homebuyer class in two convenient formats. You can search for local classes in your area, or sign up for a free online webinar. Participants in the workshop will learn information crucial to creating a positive home-buying experience, including:

The first-time homebuyer mistakes to avoid
What you will need to qualify for a mortgage
How to determine what you can afford
Which professionals to contact

For more information, visit the homeownership and home loans section of our website.

Take some advice from mom!

2012-05-09T11:47:00

With moms, every moment can easily turn into a “teachable” moment. From day one, mothers begin the process of transferring their wisdom and values to their children. In fact, a recent NFCC study found that 44 percent of consumers named parents as their primary teachers of financial habits—the basics of spending and saving are learned at home long before they’re taught at school.

As Mother’s Day approaches, apply some of mom’s conventional wisdom to your financial situation — coupled with tips from the financial experts here at MMI.

“Money doesn’t grow on trees.” Think about how you spend your money, and don’t go beyond your means. Reserve any money left over at the end of the month for savings — you never know when an unexpected expense may arise.
“Do as I say, not as I do.” If you were not taught good financial habits growing up, start now. Good habits you learn now can be passed down to your children, starting a new generation of financial responsibility.
“Do I look like I am made of money?” Studies show that nearly 80 percent of women consider themselves the primary spender in their household, but don’t let this be the only thing your children see you do. Make an effort to discuss saving, long-term goal planning and budgeting with children so they learn there’s more to money than bills and shopping.
“If I catch you doing that one more time …" We’re all guilty of using that “for emergencies only” credit card on a selfish splurge, but have we ever looked to see how much it adds up to be in the long run? Track spending for 30 days to see just how much small insignificant purchases add up to be in the end.
“Eat every bite.” Remember that every little bit counts. Place your spare change in a jar, along with any extra money that is above your regular monthly income, and deposit it into your savings account monthly.
“If all your friends jumped off a cliff, would you?” You are in control of your money, and your budget should be unique to your personal needs and lifestyle. Stick with it, regardless of how others around you are spending.

As much as it hurts to admit it that your mother was right, her common sense tips, when applied to your pocketbook, can lead to financial stability and success. After all, as mother says, “You can do anything you set your mind to.”

Unique and affordable Mother's Day gifts

2012-05-03T11:46:00

Let’s face it, moms are vastly underappreciated given the hard work they do day-in and day-out. And, although moms deserve far more than one day of gratitude (she should actually be earning six figures!), Mother’s Day is a perfect time to go out of your way to show mom how much you appreciate all she does.

Don’t wait until the last minute to find the perfect gift (mom will know – trust me!). Make mom proud by checking out these great frugal gift ideas that will help show your love while maintaining your budget!

Make something from the heart. Pinterest is a great resource for finding easy, do-it-yourself craft ideas that mom is sure to love. Check out this sweet – and simple – mother’s day craft that’s perfect for kids:

Trace your (or your child’s) hand, and cut out two copies.
Cut out a strip of paper or cardboard and fold it like an accordion. Use a marker, rub-on letters or stickers to add the words “I Love You” on the outside, and “this much” on the accordion-style strip connecting the hands.
Glue each end of the strip to one of the insides of the hands, and your card is ready

Find a unique deal. If you’re not particularly crafty, I discovered some great Mother’s Day deals on Living Social. One of my favorite websites for discovering unique gifts for all occasions is Red Envelope. And although some of the items can be a bit pricey, Living Social has a deal that offers you $40 at Red Envelope for only $20. For example, they are featuring this modern, yet simple, necklace any mom would love. You can personalize it with your birthstone and name so mom will always have you close to her heart! It runs about $49.95, but with the Living Social deal, the price would drop to just $9.95. Now that’s my kind of deal!
Give the gift of fashion. Does your mom have a passion for fashion? If the matriarch of your family loves designer duds, but hates the exorbitant price tags, websites like Last Call by Neiman Marcus or Rue La La offer great designer clothes at bargain basement prices. If you’re not sure what her closet is lacking, Living Social comes to the rescue once again with $50 to spend at LastCall.com by Neiman Marcus for just $25. What mom wouldn’t love a frugal shopping spree?
Personalize a gift certificate. If there’s one gift you could give mom that is priceless, it’s the gift of your time. A personalized gift certificate is a great way to show mom you care. You could offer her ten free back rubs, or breakfast in bed at her request. The possibilities are endless. And best of all? It’s completely free!

Do you have any creative, budget-friendly ideas for Mother’s Day? Comment on this post to share!

Five quick and easy ways to save money all year

2012-04-27T14:00:00

Special thanks to David Bakke of Money Crashers Personal Finance – one of the top personal finance blogs – for contributing this post. In addition to writing about money-saving tips, David runs an online business and lives in Atlanta with his son.

As we approach the middle of the year, it's time to forget about the mistakes you made and start fresh by focusing on what you can do now to improve your financial situation. For most people, a better quality of life translates to more money. It may be unlikely you'll see a raise anytime soon - especially in this economy. Fortunately, there are a number of tried-and-true tips for making the most of the money you have:

1. Create a Budget A budget can seem overwhelming, but if you make a monthly budget and stick to it, you can identify areas where you overspend and save big by controlling spending or simply by using your money more wisely. Write down your monthly income (after taxes) and itemize your monthly bills and other expenses. And don't forget about the "little" things like daily coffee or your fast food lunch - they add up.

Look at redirecting your funds to eliminate credit card debt so you can save on interest, and find ways to save on gas and other necessities. Adjusting your spending habits by bagging your lunch instead of eating out can take a little work, but the payoff is well worth it.

2. "Spring Clean" Your Finances You can approach this in two ways: You can dedicate an hour over the weekend to review all your current bills, or, you can thoroughly review bills as you receive them, keeping an eye out for hidden fees and services you don't need or want. If you find questionable charges, investigate them.

Next, contact your cell phone, Internet, and cable TV providers to see if there are any current discounts available, and remove services or features you don't use or that aren't worth the cost. Remember, your providers aren't going to tell you how to reduce your bills - it's up to you to find out about promotions and streamline your services.

3. Maximize the Value of Coupons If you've never used coupons before, learn about the potential savings associated with extreme couponing. Pick up a Sunday paper and browse through all the ads to find coupons on items you regularly buy. But don't stop there. Keep an eye out for store sales on items you buy the most, and incorporate your coupons to increase the savings.

Next, find out which day of the week is double coupon day at your favorite grocer, and plan your trip accordingly. Food is typically the second greatest expense in any household budget behind mortgage or rent, so the longterm savings here can be significant.

Also, if you use credit cards responsibly and pay off your entire balance every month, there are some credit cards, such as the American Express Blue Cash Everyday credit card, that offer a cash-back incentive when shopping at supermarkets. As long as you don't incur interest charges, the savings can be significant.

4. Reduce Entertainment Expenses Entertainment is a necessary expense. However, it's also necessary to avoid overspending in this area, especially because it's easy to get carried away.

Take a look at one of the many daily deal websites, such as Groupon or LivingSocial, and see if you can find discounts on places that you visit or would like to. You can often save 50 percent on dining and local activities simply by planning ahead and printing a voucher.

Otherwise, look for free activities in your area. Free music is fairly easy to come by and your local park won't charge you (or won't charge you much) to enjoy a picnic lunch or dinner in natural surroundings. When it comes to having a good time, a little creativity goes a long way towards saving a lot of money.

5. Commit to Fresh Foods Sure, buying processed foods is more convenient, but buying fresh will save you money and improve your health. You may need to schedule more time in the kitchen, but if you make meals in bulk and freeze for later use, you can enjoy the health benefits and savings of eating fresh without "slaving over the stove" everyday. Search your area for local farmers markets and make it a point to visit them weekly. You'll find the highest quality of fruits and veggies at low prices.

Final Thoughts

Once you've identified and implemented ways to save daily, direct those savings towards paying off debt so you can reduce interest charges and improve your credit. And if you haven't yet started saving for retirement, now is the time.

When it comes to your finances, a few dollars a day can make all the difference in reducing debt, saving for the future, and improving your overall quality of life. Everyone has the power to change, and saving 50 cents at the grocery store could be your first step to a life of financial freedom.

What other ways can you think of to save money on a daily basis?

Revealing the cure for financial stress

2012-04-24T15:00:00

It’s no secret that financial education is a good thing, especially in the current economic climate. However, the extent to which financial education can benefit consumers is not as well-known despite the fact that research shows basic financial literacy can not only improve a person's financial health, but it can improve their physical health as well.

A recent study by the American Psychological Association found that money was a leading source of stress for respondents. In addition, a poll conducted by the Associated Press/AOL, comparing those with high levels of debt-stress to those with low levels of debt-stress, found the following:

Twenty-seven percent with high debt stress had ulcers or digestive tract problems, compared with eight percent with low debt-stress.
Forty-four percent with high debt-stress had headaches or migraines, compared with four percent with low debt-stress.
Twenty-three percent with high debt stress felt they were suffering from depression, compared with four percent with low debt-stress.
The heart attack rate of those with high debt-stress was double that of those with low debt stress.
Sixty-five percent more people with high debt-stress suffered from muscle tension or lower back pain than those with low debt-stress.

Luckily, there's good news! Research shows that financial education can help lower these stress levels by building confidence and shaping new, positive attitudes and behaviors toward money. According to MetLife’s Tenth Annual Study of Employee Benefits Trends, consumers who attend financial education training programs are 25 percent more likely to feel in control of their finances compared with those who have no financial education or training.

So don’t let financial concerns burden you any longer! Learn how to take control of your finances and build a solid financial future by utilizing MMI's exclusive financial education resources. You can also find a financial education workshop in your area, or register for a free financial webinar!

If you're not sure where to start, you can contact a counselor 24 hours a day, seven days, for a free debt and budget assessment.

Survey results expose disturbing lack of financial skills

2012-04-11T14:30:00

Could Americans be doomed to a future of personal financial instability? All signs point to yes, according to annual survey results from the National Foundation for Credit Counseling (NFCC).

In recognition of Financial Literacy Month, the NFCC and the Network Branded Prepaid Card Association (NBPCA) released the results of the 2012 Financial Literacy Survey. In its sixth year, the Financial Literacy Survey provides data and trends surrounding Americans’ attitudes and behaviors related to personal finance.

Unfortunately, survey data revealed a disturbing lack of basic financial skills that are critical to building a stable financial future. Consider the following results in areas such as budgeting, saving, responsible bill-paying and money management:

More than half of U.S. adults admit that they do not have a budget.
One-third of U.S. adults, or more than 77 million Americans, do not pay all of their bills on time.
Thirty-nine percent of adults carry credit card debt over from month-to-month.
Two in five adults indicated that they are now saving less than they were one year ago, and 39 percent do not have any non-retirement savings.
Twenty-five percent of those who do not currently have non-retirement savings indicated that, if they did begin to save, they would keep their savings at home in cash.

“This year’s survey unveiled some disturbing trends, showing that a significant number of Americans are saving less, spending more, and carrying credit card debt over from month-to-month, suggesting that the painful financial lessons of the past are quickly being forgotten,” said Susan C. Keating, president and CEO of the NFCC.

“Coupled with the two in five adults who gave themselves a C, D or F on their knowledge of personal finance, the need for an increase in financial education becomes not only clear, but urgent,” Keating said.

If you can relate to those results, it's time to wise up! Don't let yourself be another statistic. Take advantage of the tools and resources Money Management International offers — not only throughout the month of April — but year-round. The need for financial literacy doesn't magically disappear come May 1. Therefore, we offer a variety of content and services to get you started on the right path — whenever that may be.

And remember, this year we're making FLM more valuable than ever by giving away $200, $300 and $500 prizes! What could be a better start to financial freedom than free money? Sign up for the Financial Literacy Sweepstakes today for your chance to win!

The 2012 Financial Literacy Survey was conducted by telephone within the United States by Harris Interactive on behalf of the NFCC and NBPCA between March 16 and March 19, 2012, among 1,007 adults ages 18 and older. Results were weighted for age, sex, geographic region, and race where necessary to align them with their actual proportions in the population.

Take the Financial Literacy Month Challenge and you could win $500!

2012-04-04T16:00:00

April is Financial Literacy Month – and we’ve been looking forward to celebrating all year!

Don’t know what Financial Literacy Month is? Not sure why it’s such a big deal? Good! You’ve got a lot to learn – and we have a lot of wisdom to impart upon your eager mind. Luckily for you, you could also win cash for participating. That is how important Financial Literacy Month is.

Joining the Financial Literacy Month Challenge is easy. Visit FinancialLiteracyMonth.com or find us on Facebook to sign up, and then share something with us related to one of the steps. You could submit a photo capturing your frugality in action, a story about reaching a financial goal or a financial tip you feel others may find valuable – however the day’s tip inspires you, simply share it for a chance to win. It’s that simple.

Three winners will be chosen at random upon the conclusion of Financial Literacy Month. Each of the three winners will receive a cash prize, which we encourage you to put toward your financial goal – whatever that may be. The prizes are:

First place: $500
Second place: $300
Third place: $200

Learn more by visiting FinancialLiteracyMonth.com.

Maximize your tax refund

2012-03-28T14:00:00

Your money has been waiting patiently in state and federal treasuries, playing Angry Birds and reading the same issue of Men’s Health over and over again. But now it’s time to bring your money home!

Time is running out to file your income tax returns, so here are a few tips to ensure as many of your little green friends as possible make it home this spring.

Plan in advance. This one might be off the table for this year, but it’s never too early to start planning for next year. You should begin by keeping accurate, organized records. It’s also important to remain informed of tax laws and how they could affect you.
Deduct for charitable donations. There's no denying that giving feels good (except for giving blood, which makes me feel terrible no matter how many shortbread cookies and juice boxes they press into my numb hands). And luckily the IRS wants to reward you for your charitable donations in the form of a deduction. Just make sure you give to a tax-exempt organization that can provide you with a letter detailing the donation. Your roommate’s bongos are a good place to start.
Deduct for losses occurring due to disaster or theft. The key to this deduction is that the event that caused the loss must be “identifiable, unexpected and unusual.” This includes car accidents, natural disasters and vandalism, but it does not include natural deterioration or your house cat’s unwavering belief that picture frames, vases and collectible plates belong on the floor, not the shelf, thank you very much.
Deduct for job search expenses. You can only deduct for expenses accrued on the job hunt if you’re seeking the same position, but with a different company. First-timers and people looking to shift into a new industry are, unfortunately, out of luck. Be sure you keep receipts and records for every cost associated with the process. Related costs could include printing and mailing résumés, transportation to and from interview locations, and fees paid to employment agencies. Phone calls to and from your prospective employers are even tax-deductible, though you should probably still avoid the urge to call every 20 minutes to ask if they’ve hired you yet.
Take the time to know what deductions you qualify for. So maybe your bike was stolen because you forgot to chain it up, or maybe your Uncle Carl isn’t exactly as “tax-exempt” as he claims to be. You may still qualify for certain deductions! Do you pay interest on a home mortgage? Do you pay union dues? Do you have to purchase and clean your own uniform for work? Familiarize yourself with the available credits and deductions for the tax year to ensure you’re not cheating yourself out of extra cash.

According to reports, the majority of filers simply use the standard deduction rather than itemizing – which can leave many feeling short-changed. So keep in mind that if you just can’t be bothered with all of those numbers and decimal points, you can hire a professional do the legwork for you! Just remember: It's your money.

Note: This guest post was written by Jesse Campbell, counselor for Money Management International.

Beware of mortgage settlement scams

2012-03-26T14:00:00

While the landmark $25 billion National Mortgage Settlement was just announced last month, scammers have wasted no time capitalizing on the vulnerability of desperate homeowners.

The settlement with the nation’s five largest mortgage servicers was signed by federal and state officials Feb. 9, and will provide assistance for homeowners in order to compensate for the faulty foreclosure practices offered by mortgage servicers following the housing market crash. Although real compensation is still months away, there have already been numerous reports of scam operations popping up across the country.

While the government has been cracking down on foreclosure scams, it is important for you to remain diligent in keeping your personal information safe. The following are some tips to help you identify and avoid falling victim to a foreclosure scam.

Don’t panic. Mortgage scams are effective because the scammer is able to exploit the fear of a person who is in a desperate, vulnerable state. Don’t let fear cause you to make irrational decisions.
Never act under pressure. Don’t sign a contract or disclose information before doing your research. You can always request to receive any information in writing.
Trust your gut. If someone is offering you something that sounds too good to be true, it probably is.
Stay informed. Make sure you obtain detailed information about your foreclosure deadlines. If you want to know if you qualify under the Settlement, contact your bank or loan servicer directly.
Don’t release any personal financial information. If you are contacted by someone who claims to be from your financial institution and wants you to “confirm” or help them identify your personal account information, it is likely a scam. Rather than releasing information, ask for their contact information and tell them you’re going to call them back.
There is no fee involved in the National Mortgage Settlement. If you are contacted in any way from someone asking for money in return for a speedy settlement payment, they are scamming you.

For more information about mortgage assistance relief scams, visit FTC.gov. If you have questions or concerns about your mortgage loan, consider meeting with a HUD-certified housing counselor to discuss your options.

Seven days of Spring Break: Frugal style

2012-03-12T14:41:00

Believe it or not, Spring Break is upon us. And while jetting off to an exotic location to bask in the sun’s warm rays as the kids frolic in the clear water may sound like the ideal way to spend those precious seven days, your Spring Break is probably more likely to involve jetting around the house after your dog as he frolics in the clean laundry while the kids bask in the blue rays emitting from the TV screen.

Just because you don't have the budget for a tropical getaway doesn’t mean you resign yourself to seven days of boredom. With a little creativity you can create a fun-filled – budget-friendly – week of activities that even the whole family will enjoy.

Day one: Take a tour of your town. Hit all of the tourist hot spots in your city. Experiencing your city from a different perspective may just give you a new appreciation for the place you live. If you aren’t sure what kind of touristy goodness your area serves up, contact your local chamber of commerce, visit your city’s website, or just browse the pamphlets at the nearest tourist center.
Day two: Go Grouponing. Websites such as Groupon and Living Social can be a great resource if you’re looking for great deals on local activities. For example, one of my local Groupon deals today is a “family-fun outing” to a local petting zoo – and it includes cones of feed for the animals and beverages for the humans – all for just $10. And thanks to Groupon’s new “Now! Deals,” you can find deals to purchase in your city that are only good for that day, which is convenient if you need a little inspiration for your outing.
Day three: Go camping – even if it’s in your own backyard. Pack up the car and head to the nearest state park for some all-natural fun. Do all of the classics – take a hike, cook some S’mores, tell some ghost stories, go star-gazing – you know the drill. And if you don’t have a park nearby, utilize your own backyard. It may not be the wilderness, but your kids will still enjoy the novelty of doing something different. Either way, you don’t have to forego the S'mores!
Day four: Pamper yourself with an at-home spa day. This activity is a lot of fun – especially for the females in your household. You can make homemade facial scrubs and peels, give each other (or yourself!) a manicure and pedicure and just spend the day relaxing and unwinding. Even a vacation (or in this case, a staycation) can be exhausting, so take a break – you deserve it!
Day five: Do something to give back. Donate a day to the city you’ve spent the week enjoying. Volunteer at a local animal shelter or soup kitchen. There are always organizations looking for helping hands, and they would be grateful for your time and talents. Even something as simple as visiting a nursing home can be very rewarding – for your family and the residents alike.
Day six: Get crafty with Pinterest. Pinterest is all the rage these days – and for good reason. This unique site is, for all intent and purposes, a virtual pinboard that allows you to organize and share all of the random, cool things you find on the Web. It's a great place to discover new recipes and Do-It-Yourself activities that you and your kids would enjoy. Follow MMI's Pinterest boards for great ideas to get you started!
Day seven: Stay in and spend quality time together. Use this day to reflect on all of the fun things you did during the week. Share the activity you enjoyed the most. Most importantly, get some sleep – the vacation is over!

The most important things to remember is that it doesn't take a lot of money to make valuable family memories. With a little creativity you can create moments you'll cherish for a lifetime.