Madam Money's Q & A: Will Rent Reference Help Mortgage Application

Have you (or someone you know) ever wondered if a reference letter from a landlord would help with showing payment history for a mortgage application? 

Great Question!  Here the answer ... 



Do you have a personal finance or credit questions?  

Ask me and get answers! 

Just email your question to Tarra@TarraJackson.com. 

Making Money Matters Manageable, 

Tarra Jackson

5 Quick Tips to Divorce Finances Through A Divorce

Do you (or someone you know) know someone who is going through a divorce that needs a few financial preservation tips?  I do!

Even though I have never had the unfortunate experience of a divorce, I have helped several of my clients through the financial transition from joint to individual finances.  When couples go through a divorce, they are not only divorcing each other; they are also divorcing their finances as well.  Financial Divorce can be just as, if not more, emotionally draining and frustrating.  Depending on how amicable the separation is, may determine the ease or complexity of the separation of finances.

Regardless of where a person is in the separation, here are 5 quick tips about How to Divorce Finances through a Divorce.

  

Get Organized!

Gather as many financial documents as possible. Financial statements and documents will be requested and may be required during the separation process.  Here is a Divorce Financial Checklist of documents that may need to be gathered. Consult with a divorce attorney for all of the documents that will be asked for and required to remit to the court.

  

Separate Bank Accounts

Make sure to open separate individual savings and checking accounts.  Don’t just open an account in desperation … rather; make sure to open up an account at a financial institution that is conducive to the financial needs and usage. Open an account with great customer service because they may be needed for assistance through the financial transition.  Avoid accounts or financial institutions with excessive fees.

  

Update Direct Deposit

Don’t forget to update direct deposit or payroll deductions through the employer from the joint account to the new individual bank account(s) established.  If the joint account is responsible for paying bills that may affect the credit reports, continue to make deposits just enough to pay those bills OR stop the bill payment or payroll deduction from that joint account and set it up in the individual account to maintain a positive credit history.

  

Do a “Clean Break” with Loans

Having joint debt is like having a child together.  Regardless of the status of the relationship, both borrowers are equally responsible to pay the debt until it is paid in full despite what the judge or divorce decree says.  So, first things first … get copies of all three credit reports from Equifax, Experian, and Trans Union from www.annualcreditreport.com.  The best way to preserve credit history during a divorce is to do a “Clean Break.” Identify all credit accounts, and then try to negotiate who will take on what debt. Once that is agreed upon, each should try to get an individual loan to pay of the joint loan.  If either person does not qualify for an individual loan to do a “Clean Break,” try to agree that the other person will make timely payments on the joint loan. This is important because if the one person pays late or not at all, it will negatively affect the other person’s credit and ability to obtain the credit that may be needed after the divorce.  This is especially critical with credit cards.  Make sure to block the credit card lost/stolen and request a new card number to avoid future usage from the other part.

  

Update Beneficiaries

Don’t forget to update all financial documents! Update the beneficiary on your retirement savings account, insurance policies, bank accounts, etc.  Also, don’t forget to update the W-4 once the separation is final. During the divorce, many people forget to update this important information.

  

  

The best way to get through this tough situation is to try to think of the financial side as a business matter.  However, if the separation is not amicable, it may be best to have the divorce attorneys to discuss and negotiate these and other matters.

It is also a good idea to work with a financial professional or counselor for guidance during the financial divorce. Best wishes and contact us for further assistance.

  

  

Making Money Matters Manageable,

Tarra Jackson    

Characteristics of a "Financially" Virtuous Woman

Do you (or someone you know) want to be a "Financially" Virtuous Woman? I DO!

   

I've seen many articles about the characteristics of the Proverbs “Virtuous Woman.”  But, I haven't really found too many about how to be a "Financially" Virtuous Woman.  I not only strive to be a Proverbs Virtuous Woman, but I also strive to be a "Financially" Virtuous Woman as well.    

 

So, here are my interpretations of the Characteristics of a "Financially" Virtuous Woman based on Proverbs 31:10-31 (KJV). 

 

She knows her value.

“¹⁰ Who can find a virtuous woman? for her price is far above rubies.”

 

Like an authentic and priceless gem, she knows her value and doesn't settle. When a woman knows her value to an organization that she is working for, she will not settle for low pay or abusive working conditions. She knows that she is worth more and deserves better.

  

She is trusted by her spouse (or God).

“¹¹ The heart of her husband doth safely trust in her, so that he shall have no need of spoil. ¹² She will do him good and not evil all the days of her life.”

 

She protects the financial security of her family and is fiscally responsible. She only has the best intentions and helps to reach her family's financial goals. Therefore, her spouse “safely” trusts her and in her personal financial management. If she is single, she is trusted by God.

 

She will work to provide for her household.

“¹³ She seeketh wool, and flax, and worketh willingly with her hands. ¹⁴ She is like the merchants' ships; she bringeth her food from afar. ¹⁵  She riseth also while it is yet night, and giveth meat to her household, and a portion to her maidens.”

 

Whether it is going to work or getting another job, she will do whatever it takes to financially provide for her family, when and if necessary.

 

She is a homeowner or owns real estate.

“¹⁶ She considereth a field, and buyeth it: with the fruit of her hands she planteth a vineyard.”

 

She owns or has owned real estate as a homeowner or as an investor. This not only shows that she is financially self-sufficient, but it also shows that she is responsible with her finances and credit to be able to qualify and afford real estate.

    

She is fit.

“¹⁷ She girdeth her loins with strength, and strengtheneth her arms.”

 

She is not only physically fit with strength to handle the demands and responsibilities placed upon her; she financially fit with the strength of personal financial knowledge to handle or assist with the financial demands and responsibilities of the household.

 

She is disciplined.

“¹⁸  She perceiveth that her merchandise is good: her candle goeth not out by night. ¹⁹ She layeth her hands to the spindle, and her hands hold the distaff.”

 

Even when she doesn't feel like it or want to do it, she is disciplined enough to do what is necessary to do whatever needs to be done for the betterment of herself and her family.

She volunteers to help others.

“²⁰ She stretcheth out her hand to the poor; yea, she reacheth forth her hands to the needy.”

 

Whether it is at church, for a non-profit organization, or in her community; she gives her money, resources and time to help others who are less fortunate than she is. She understands that the Power of Prosperity lies in her Gift of Giving.

 

She is proactive and saves.

“²¹ She is not afraid of the snow for her household: for all her household are clothed with scarlet. ²² She maketh herself coverings of tapestry; her clothing is silk and purple.”

 

She plans for what is to come as well as prepares for what could happen. She saves for emergencies, establishes a budget, and ensures her household has what is needed at all times.

She respects her spouse.

“²³ Her husband is known in the gates, when he sitteth among the elders of the land.”

 

She creates a strong financial foundation with her spouse for their family.  She may not agree with her spouse all of time but she respects him and his financial decisions.  Because of her power of influence, her spouse is respected within the community. 

   

She is an entrepreneur.

“²⁴ She maketh fine linen, and selleth it; and delivereth girdles unto the merchant.”

  

She is a business owner or has an entrepreneurial mind and spirit. She is able to create a product or service that creates an income source to provide for her family.

 

She is respectful and respected.

“²⁵ Strength and honour are her clothing; and she shall rejoice in time to come. ²⁶ She openeth her mouth with wisdom; and in her tongue is the law of kindness.”

 

She respects others and commands respect from others. She helps to educate those around her about finances with honesty and love. This is why people appreciate her advice.                                                                      

 

She is NOT lazy.

“²⁷ She looketh well to the ways of her household, and eateth not the bread of idleness.”

 

She understand when it is time to rest and when it is time to get up and make it happen.  She is not lazy and idle with her thinking or her ways.

  

She is loved and respected by her family.

“²⁸ Her children arise up, and call her blessed; her husband also, and he praiseth her.”

 

She is loved and adored by her children and her husband and they appreciate everything she does to protect, defend, support and take care of the family. They know that the love she has for her family is her driving force to do what she does, only the way she can do it for them.

  

She is competitive.

“²⁹ Many daughters have done virtuously, but thou excellest them all.”

 

She is driven to do her best. She may not be competing with others. Rather, she is usually competing against herself with a goal to be financially better off than she was a month or year before. She reads books and seeks information and assistance to improve her personal financial management skills.

She is humble & loves the Lord.

“³⁰ Favour is deceitful, and beauty is vain: but a woman that feareth the Lord, she shall be praised.”

 

Although she is beautiful and has nice things, she remains humble and does not boast. She also has a relationship with God and understands that all that she has is a gift from God. She tithes because she believes that "You can't beat God's Giving!"

She is a Role Model.

“³¹ Give her of the fruit of her hands; and let her own works praise her in the gates.”

 

She is admired by others by the way she carries herself in public and at home. She doesn't take this responsibility lightly and understands her impact on her family and her community. Her financial success and freedom are her fruit she bears and shares.

   

  

How many characteristics do you possess? ;-)

  

Financially True,

Tarra Jackson
  

Get It Together! 5 Steps to Organizing Your Financial Life

Let's talk about organization. In today's society,the importance of keeping things organized has diminished because it takes time and dedication to make it happen effectively. If you are willing to take the steps, however, you will find that getting your financial house in order isn't quite as bad as it sounds. 
  
Here are five steps to help you on your path to financial organization, and ultimately, freedom from debt. 

• Collect all necessary documentation in a single location. 
• Take a day off each quarter from work, known as a "personal finance day," to gather your account information and place it in organized files. Ideally, there will be files for banking information, credit cards, investments, mortgages, and insurance. 
• If you are not utilizing your bank's online resources, sign up for an account. Many banks provide an array of tools that can also aid in organizing expenses and income. 

  

• Create a written budget, and review it monthly. 
• Once you have gathered all your account information in a safe, central location, create an accurate budget that includes a savings trigger and properly notates your money needs. Adjust spending in key areas such as food and entertainment, and allocate those funds to debt elimination and savings. 
• At the beginning of each month, review your budget. Holidays and special events will give your budget a different look than in other months, and your spending plan should reflect those changes to give you the best idea of where your spending should be for that time.

  

• Set a schedule for paying bills. 
• When creating your monthly budget, write down specific dates to pay various bills. As a rule of thumb, it is best to pay bills in bulk on key days of the month. For example, if Sam & Diane's mortgage is due on the 1st, their phone bill on the 5th, and electric bill on the 7th, it would be ideal to pay all three bills on the 1st. This ensures these bills are satisfied, and eliminates any chance of incurring late fees from the creditor, or overdraft fees from their bank. 

• Write down all one-time expenses for the year
• One stumbling block many face when embarking on budgeting is the occurrence of one-time expenses that pop up throughout the year. These may include license plate renewals, professional dues, or insurance premiums. Divide these costs by 12, so that you can include them in your monthly budgets. By employing this method, you can save towards those costs as they come, rather than losing large amounts of your monthly income in one fell swoop. 

• Shred, shred, shred!!
• If possible, invest in a shredder. In the age of rampant identify theft, it is imperative that you take every available precaution to protect your personal information. Not only will shredding documents keep you safe from possible theft, it also frees your home of tons of unnecessary paper. 

By taking these steps, you are, in a way, deputizing yourself to free yourself from the prison of indebtedness. It all begins with a willingness to say, "Yes, I'll do it." We'll be here to help you along the way. 

With you on the journey, 

Daniel Sims

 
Daniel Sims is the newest member of the Madam Money team. He is the creator & host of Financial Rebirth Live!, a personal finance podcast on BlogTalkRadio.com, and managing partner of RDSF Consulting in Little Rock, Arkansas. We look forward to his insights in the coming months. 

5 Signs You're Ready for Financial Coaching

Have you (or someone you know) ever thought about hiring a Financial Coach to help you create and accomplish your financial goals? Check this out ... 

The sense of frustration has become epidemic with today's economy, challenges are becoming more prevalent with personal financial matters. Building financial stability and wealth can be a confusing and complex huge pill to swallow. So, where is a person supposed to find the time to become a financial expert and learn what is necessary to build the financial stability desired?
  

Are You Ready for ...

  

Hiring a financial coach provides a competitive advantage by leveraging the person's time with specialized financial expertise that cuts through the clutter, confusion and contradictory information by teaching them what is relevant - efficiently and with minimal hassle.
  
Here are 5 Signs that You may be Ready Financial Coaching.

1. You're tired of procrastinating and ready to start building wealth and living your dreams.
2. You want to develop your own personalized action plan for building financial security based on principles that are custom designed to fit your specific situation - not a cookie-cutter or generic plan.
3. You want an accountability partner to help you maintain focus on your financial goals.
4. You're just "not interested" with traditional financial planning where all they want to do is sell you investment products. Instead, you want straightforward advice without all the sales pitches.
5. You realize that "true wealth" is not just about more money ... you want to balance your life while working toward financial freedom so that you don't make the mistake of sacrificing your family, health, or a fulfilling life in pursuit of money.

So, if you're ready to start working with a financial coach, feel free to contact me at Prosperity Now Financial Management Services.

  

Financially True,

  

Tarra Jackson, Making Money Sexy!

Exit Strategies: How to Leave Financially Abusive Relationships

Have you (or someone you know) ever been caught up in a financially abusive relationship and desperately needed an exit strategy? I have.

   

There are many consumers that are in financially abusive relationships with financial institutions that seem to be “not that into” them. They are dealing with ridiculously high loan interest rates, very low deposit rates, too many and extremely high fees, as well as poor customer service.

   

Being in a financially abusive relationship not only angered ME, but it made me feel weak and hopeless because I didn’t know how or if I could escape.  Then one day … I did!  So, here are a few effective Exit Strategies for getting out of a Financially Abusive Relationship.

   

Talk About It

There may be an opportunity of improving the situation by talking with the right person at the financial institution. So, before deciding to break up with the financial institution …

 

Be sure to

1. Share concerns with a Customer Service Representative,
2. Speak with a Branch or Department Manager about concerns for resolution, or
3. Write a letter to the Senior or Executive manager about concerns.

If efforts to resolve the matter are not addressed appropriately or ignored, move to the next strategy.

   

Start Financial Dating

Begin the process of financially dating other financial institutions to find one (or two) that can meet, at least, most of the required financial needs (deposit accounts, loans, internet banking, etc.). In my book Financial Fornication, I share the 5 phases of Financial Dating to avoid financially abusive relationships. These phases should not be skipped.  It is necessary and worth taking the time to get to know financial institutions to ensure they are right for a particular financial situation.

    

So, be sure to

1. Explore financial options (banks vs. credit unions).
2. Investigate the financial institution(s) selected via the internet or word of mouth (research).
3. Experience the Introduction by going to the branch(es) or calling customer service to ask questions.
4. Start slow Courting by using one or two of their financial services (open a savings or checking account), when ready!
5. After all 4 phases have been executed, Commit to the new primary financial institution (PFI) by using more of their products and services. 

   

Once a new financial “main squeeze” is found, it will make it easier to leave an existing financially abusive relationship.

  

Exit Slowly & Deliberately

Whether a new financial “main squeeze” is on standby or not, another Exit Strategy is to slowly stop using the financial institution’s products and services.

  

Be sure to

1. Review bank statements carefully to identify all direct deposit or automatic payments coming out of the accounts.
2. Stop or change automatic payments from the account(s) and update payment information with the new financial account information, if available.
3. Ensure that all accounts are in good standing or current. This will ensure a clean break. The last thing wanted is a reason for the abusive financial institution to remain in contact.
4. If possible or necessary, refinance loans to the new financial “main squeeze.” If this is not possible, keep this in mind … having loans with a financial institution is like having a child(ren) with an estranged spouse or mate.  Leaving the relationship does not diminish the responsibility of the child(ren). Therefore, leaving the financial institutions does not diminish the legal responsibility of the credit obligation.  If refinancing is not an option, continue to make loan payments to the financial institution on time until it is paid in full to avoid collection and credit report drama.
5. Lastly, stop or reduce direct deposit into the account.

 

Once these steps are executed, a clean breakis relatively available.

  

Even though the financial relationship may seem extremely challenging right now, just know that all financial institutions are not alike. There are lots of really good financial institutions out there that value and appreciate their customers.  Once you find them, some of them even provide an easier method of transiting automatic payments and direct deposits to them through what is called Switch Kits.

  

So don’t give up. There is hope. And most importantly, you deserve better!

    

Financially True,

 

Tarra Jackson, Making Money Sexy!

5 Things Asked on a Loan Application Used by Collectors

Have you (or someone you know) ever wonder why certain information is requested on a loan application that may not have anything to do with making the loan decision? I have.

  

When applying for credit, the loan application is not only a tool to acquire necessary information for the lender to make a judgmental credit decision. It is also a source of valuable data that is used to help collectors collect money that is owed to the lender if the borrower does not make their payments on time or at all.

 

Here are 5 Things Asked on a Loan Application Used by Collectors.

 

CURRENT & PREVIOUS ADDRESSES

The current address is not only used to request the applicant’s credit report, but it is also used to mail payment reminder or collections letters and, when necessary, for Skip Tracing.  Skip Tracing is a process of acquiring as much information about a person to find out where they are. Once the person is located, the collector can proceed with collection efforts or take further legal action.  Some skip tracing tools used are credit reports, white pages, a system called “Accurint,” social media, and especially Google.

  

EMPLOYER INFORMATION

The name and address of the applicant’s employer is sometimes used to have the borrower served if the lender chooses to sue the borrower by filing for a default judgment. However, this information is mainly used to file for wage garnishment.

 

PHONE NUMBERS

Home, work and cell phone numbers are used by collectors, of course, to call borrowers to discuss missed or past due loan payments and to acquire, what is called a “Promise To Pay.”  A Promise To Pay, is the borrower’s promise to make the agreed upon payment(s) to bring the loan account back to a current status.  Most collection calls may be friendly reminders. However, the more past due the loan becomes, the more “concerned” the collectors may be when calling.

  

EMAIL ADDRESSES

Most collectors are aware that many people may not answer unknown callers or callers that they do not want to speak to. They are also aware that many people may not read or ignore collection notices in the mail. This is why email addresses are very valuable.  In today’s electronic age, most people may respond faster to their emails than letters and voicemail messages.  This also gives the borrowers time to respond in a less intimidating manner.

  

REFERENCES

The names, addresses and phone numbers of the applicant’s family members and friends are usually requested in a loan application as references. This information is also used for Skip Tracing, when necessary.  Collectors may contact those references to obtain more information about the borrower and their whereabouts to continue collection efforts or further legal action.

  

  

Most first party collectors, which are usually employees of the lender, may be very open to assist borrowers that are dealing with financial hardships with payment plans. They are usually friendly and willing to assist as best as possible. So, please don’t ignore them.

 

Just make sure that you are aware of consumer rights regarding normal collection action, especially when dealing with third party collectors. No collector should verbally abuse or threaten you. That is against the law. The Fair Debt Collection Practices Act governs third party collectors, collection activity, as well as Consumer Rights.

 

Financially True,

   

Tarra Jackson, Making Money Sexy

  

What other application information is used by collectors?

5 Things I Wish I was taught "How To Be" when I was a Teenager (to be Financially Better Off)!

Do you, or someone you know, have things you wish someone taught you "how to be" when you were a teenager, to be financially better off?  I do!
  

“If I knew then what I know now.” This has got to be the theme song for most adults, especially when it comes to finances.  There are hundreds of things that I wish I was told, taught or nagged about when I was a teenager.  But, here are my top 5 Things I wish I was taught “how to be” when I was a teenager, to be financially better off.
 

I wish I was taught how to be …

  

A Boss!

No, not Bossy, but A Boss of my own business. Instead of being encouraged to go to school so I can get a good job, I wish I was told and taught to go to school to learn how to make jobs. Or to go get a job to learn what it takes to run a business. Seriously, we are told what to do and what not to do when we are children, only to go to school to get a job for other adults to tell us what to do and what not to do when we become adults.  Seems like a set up to me now.  
  

So teens … go to school and get a job, NOT to just be an employee, but to learn how to become an entrepreneur. Besides, there are not that many jobs out there right now anyway. Create your own business and Be A Boss!

  

A Giver

The first principle of Prosperity is Giving! In order to reap a harvest, a seed must be sown.  Always remember, there is no room to receive in a closed fist.  Whether your giving is spiritually, morally or emotionally based, give gladly and on good ground. Giving is not always about money. Sometimes your old clothes, knowledge, or time may be just as, if not more, valuable.
  

So teens … learn the power and pleasure of giving early to a church, non-profit or worthy organization or individual. You’ll be surprised of the blessings you will receive because of your openness to give.

  

A Saver

Who knew that if I had saved only $100 per month when I got my first job at the age of 14 in a savings account with an interest rate of 0.50% until now (25 years), I would have saved over $32,000? And if I had saved $200 per month, it would be almost $65,000.  The point is, if I really understood the power of saving at a younger age when I could afford it, I would be able to afford almost anything I wanted when I got older.
  

So teens … Start Saving Sooner!!! The younger you are when you start saving, the more you will have when you really need it when you get older. Trust me on this one.

  

Financially Proactive

Enjoy today but Live for Tomorrow!  Tomorrow is your future. Live like you are going to be alive for a long time and you want to be financially comfortable for the rest of your life. True story … If I had planned for the things that I wanted “tomorrow” (in the future); I would nothave borrowed money to get what I wanted “today” that I would have to be paid back “tomorrow” (in the future). Well, it’s tomorrow for me now and I’m still paying for what I borrowed “yesterday” (in the past).  My point is that using credit to get what you want right now will limit what you can afford tomorrow, when you really need it. It’s no fun not being able to afford to buy a home because you owe too much in credit card debt.  Credit is designed to be a leverage to help you acquire real “assets” (read Robert Kiyosaki’s book, Rich Dad Poor Dad) or to be an anchor and drown you deep in debt.
  

So teens … use credit wisely and do not use it until you are mature enough to handle its consequences (read my book, Financial Fornication).

 

Wealthy!

Not rich, but Wealthy! Rich is predicated on how much money you have, but Wealth is determined by how much you are able to do with the money you have. I’ve met hundreds of broke “rich” people, but I’ve never met a broke “wealthy” person.  Also, don’t believe the bling you see on TV! Nine times out of 10, the bling is borrowed! #IJS
 

So teens … follow my Financial Freedom Formula early and be wealthy for the rest of your life!

 

      

Those are my top 5 things I wish I was taught, but believe me there are more. Come to think of it, I was probably told to be a few of them, but I just didn't listen. Typical teenager.  ;-)

   

Best wishes on your journey to Financial Freedom!

   

Financially True,

   

Tarra Jackson, Making Money Sexy!

5 Ways to Avoid Financial STDs (Substantially Tremendous Debt)

Have you or someone you know been infected with Financial STDs? I have…
   

In my book Financial Fornication, I talk about Financial STDs (Substantially Tremendous Debt).  This financial dis-ease is not only financially and emotional painful, but families and cosigners can get infected as well because it can be contagious.

   
Here are 5 ways to avoid Financial STDS.
   
Use Financial Contraception.
Financial Contraception is better known as a budget or spending plan. Create a budget or spending plan that works with your lifestyle. Using a budget is the best protection against acquiring Financial STDs.
    
Avoid being financially promiscuous with multiple credit cards.
Pick a credit card that has the lowest rate and provides bonus points if you must or choose to use a credit card for purchases. Using multiple credit cards may result in excessive spending, which result in Financial STDs.
    
Limit or Avoid Financial One Night Stands.
A financial one night stand is a financial transaction, usually less than $50-$100, that should be paid in cash or paid in full if purchased with credit. If you choose to use credit for these types of transactions, avoid turning those financial one night stands into a long term financial relationship by revolving the balance and not paying it off in full. Vernacularly speaking, “Hit it & Quit it!”
   
Become Financial Abstinent.
When your finances feel like they’re getting out of control, sometimes it’s best to just STOP using credit to get a handle on your finances. Being financially abstinent stops the leaks in finances so a budget can be created to build up immunity against Financial STDs.

 

Get out of Financially AbusiveRelationships.

If you are getting your butt kicked with ridiculously high loan rates, low deposit rates, lots of fees and poor customer service, they’re probably really not that into you, which means that it’s time to plan your exit strategy from that financially abusive relationship.  You don’t have to stay. Date financial institutions to find the best one for you.

 

For more tips, check out my book “Financial Fornication.”

 

Financially True,

 

Tarra Jackson, Making Money Sexy

Top 5 Bad Financial Habits to Break

... Do you or someone you know have any bad financial habits? I do …
  

Most of us have one … or two … or several bad financial habits. From experience, my bad financial habits resulted in some very expensive mistakes. It’s ok! As long as bad financial habits are broken or at least controlled, they will have minimal effect on your financial success. The first step is identifying your bad financial habits.
  
Here are the top 5 bad financial habits to avoid that keep people from getting a positive grip on their finances.
 
Impulse shopping.  Impulse shopping happens unexpectedly sometimes. Think of shopping like alcohol. It should be done “responsibly” and can become addictive, if not careful. Make shopping a planned activity with a list or a budgeted amount.  Unplanned or impulse shopping may sabotage your spending plan / budget.  Also for large ticket items, give yourself 24 to 48 hours to shop for a better deal or to figure out if you really want it and can afford it. You’ll be glad you waited.
   
Retail therapy.  Retail therapy may help you to feel good for a moment but they buyer’s remorse is painful. When you are emotionally down, distraught or highly emotional, avoid shopping or making any large purchases.  The more emotional we are, the less financially objective we become.  Do something that doesn’t cost anything or very little, like go for a walk, spend time with family or friends, etc. Your bank account will thank you when you start to feel better.
  
Overdraft protection.  Overdraft or “Courtesy Pay” is so convenient! However, overdraft protection (a financial oxymoron in my opinion) is relatively designed to allow you to overspend. It allows or approved checks or charges to go through even when you do not have enough in your account for a Fee.  A fee of $27 up to $35 is charged to your account for every overdraft, even if the amount runs $1 or $5 over the amount you have in your account. Generally it is like a very short-term line of credit with a ridiculously high effective interest rate. Now was that cup of coffee really worth $40? Besides, we spend more when we use debit cards. Use cash instead.
  
Savings tampering.  Savings is money set aside for a specific purpose like emergency, down payment of a house or car, school, etc. Avoid using savings for something that is outside of its purpose. The best way to do this is to establish a savings account that is not easily accessible with a certain amount directly deposited every pay period. Savings accounts are supposed to grow, not be chiseled away. 
  
Financial promiscuity. Financial Promiscuity is when multiple credit cards are used for small purchases when cash should be used.  Avoid using credit to purchase that "value meal" or anything less than $50.  This will ensure that Financial STDs (Substantially Tremendous Debt) will not be slowly acquired.
  
By acknowledging our bad financial habits, we can focus on stopping and changing them. Some bad financial habits may be more challenging to quit than others, but it can be done.  Contact a financial coach to help with ideas and techniques of replacing bad financial habits with good financial habits to help you reach your financial goals faster.


Financially True, 
  

Tarra Jackson ... Making Money Sexy