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

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
  

6 Strategies to Pay for College Without Going Broke

Are you (or someone you know) looking or ways to pay for College for you or your child without going broke? I am!!!  

   

Tameka Williamson, Your Own College Coach, shares 6 Strategies for Paying for College Without Going Broke!

    

We have watched the news and the trends of how student loan debt continues to surpass consumer debt, cost of tuition continues to rise, scholarship funding is more competitive and state incentive aid such as HOPE scholarships are no longer options that yield hope.  So, what is a parent to do?  This information is to help you think outside of the normal paradigm and look at strategies that can bring about viable college options.  We encourage you to have an open mind about your options and focus on making smart decisions not costly decisions.  It’s all about the end goal, and that is a competitive college education at the lowest cost possible.

   

The goal is to equip you with tools that will keep you from making the same mistakes many parents make. This is the only way we can change the landscape for our future generation. So, I hope you are ready to learn and take action based on what you’ve learned. Our mission is for you to obtain the maximum amount of money possible for child applies.

  

Strategy #1: Send Your Child To A Community College For His/Her First Two Years Of School. If your child works hard and gets good grades, they can usually transfer to a top private university. This way, they can get a diploma from a prestigious school for half the cost!

 

Strategy #2: Pick Colleges focused on Minimizing Student Loan Debt. The Project on Student Debt is an initiative of the Institute for College Access & Success, a nonprofit independent research and policy organization dedicated to making college more available and affordable to people of all backgrounds.  As a result, the colleges on their approved list have developed financial aid policies that limit or eliminate student loans from financial aid packages, reducing costs for students and families.

 

You also have National Association of System Heads (NASH) Access to Success Initiative project with The Education Trust. A2S works with 22 public higher education systems that have pledged to cut the college-going and graduation gaps for low-income and minority students in half by 2015. Together, these institutions serve more than 3.5 million students. They Meet 100 percent of their admitted full-time undergraduate students’ financial need for fall 2010. That means the average gaps between a school’s total cost of attendance—tuition, fees, room and board, books, travel, and other expenses—and every student’s EFC – Expected Financial Contribution was filled with some combination of aid.

 

Getting accepted into any of the schools on this list will almost guarantee your child will graduate with little to no student loan debt.  But please know that your child must be competitive and yet again, produce good grades and high test scores.

  

Strategy #3: Understand and Maximize the FAFSA Form.  By understanding the formula, you will start to see how different factors will affect your eligibility for financial aid. For example, “Should you move the assets out of your child’s name?” or “Should Mom or Dad take two courses at a local community college to qualify as a part-time student?” By knowing the formula in advance of applying, you can legally set up your personal and financial situation to maximize your eligibility for financial aid. Your bottom line goal is to minimize your EFC – this is what the government feel you can afford to contribute.

  

File Your Financial Aid Forms Accurately And On Time. Remember, financial aid is awarded on a first come, first served basis. 66% of the forms submitted have an error on it. If you submit your forms with errors or omissions, it will probably “bump” the financial aid forms, and you will have to resubmit them at a later time. If this happens, you will probably lose aid since they award money on a first come, first served basis. Most schools have different deadlines, and if you miss their deadline, you will almost definitely get less funding.

     

Strategy #4: Pick Colleges That Have The Best Histories Of Giving Good Financial Aid Packages. Many schools publish statistics on how much “need” they meet and how much FREE money and loans they give out. Know these numbers before you apply, so you don’t waste time and money applying to schools you’ll never be able to afford. If they offer loans, determine how many subsidized vs. unsubsidized loans are awarded. When loans become part of the equation, do your best to qualify for federally subsidized loans, which are interest-free and principal free until your child graduates.

  

If you still need to borrow more money, try borrowing from your 401k plan or a pension plan. Many plans will allow you to borrow up to 50% of the value of the plan or up to $50,000 interest-free. You can also think about refinancing your current mortgage (not a home equity loan) because long-term rates are typically low during these times, much lower than student loan rates and, under most circumstances, tax deductible (but consult your tax advisor, of course.)

  

Strategy #5: Don’t Be Afraid To Negotiate For A Better Financial Aid Package. Always Apply To, At Least, Two Or Three Schools That Are Rated Equally. This way, if your child gets accepted to all of them, you may be able to play one against the other when negotiating to get a better financial aid package.

 

A school’s financial aid package is NOT fixed in stone. Just because they offer you a certain package, doesn’t mean you have to accept it. If you know how to calculate your “expected family contribution” and you find out what the school’s history of giving out financial aid is, you can usually get a pretty accurate idea of what you should have received. If the school’s offer is way off – write a letter to negotiate. I have seen many cases where schools gave $2,000… $3,000… even $6,000 more than they originally offered just because the family asked. The moral is – Don’t Be Afraid To Negotiate!

  

Strategy #6: Have Your Child Enroll In Advanced Placement Classes And College Level Courses While Still In High School. Every college level course they place out of is money you won’t have to pay when they go to college. Considering college credits can cost as much as $300 each, having your child place out of these courses can save you a lot of money. This happens when AP classes are successfully completed and the subject tests passed when taken in May. By taking foundational core classes at a local college/university while in high school, will decrease the amount of classes a student take once enrolled on a full-time basis, could be covered through a high school – university collaborative and it proves to admission representatives your child is college ready.

  

There are many more strategies for you to implement. Hopefully, these 6 strategies will motivate you to get started and take action in looking at how to create a plan of action that will facilitate your child’s dream and future so they can achieve college success.

___________________________________________________________________

Tameka Williamson is a Six Sigma Blackbelt in Lean and Process Improvement that analyzes and creates systems for change.  Being a certified speaker and coach for the John Maxwell Team, Tameka developed her signature programs around the 6 WILLs that help students Get Noticed, Get Admitted, Get Funded and Get Hired so they WIN in life, bringing about positive and sustainable change.  Winning Intentionally at Leading Life (WILL) is modeled around Standing out, Reliving your dreams and Removing the limits. Having successfully overcome several life changing events and a successful corporate career of driving change for over 15 years in Fortune 100 Companies, Tameka is maximizing her experiences to equip others with the tools to either avoid the same mistakes or bounce back quicker and stronger on their journey to fulfill their purpose. For more information about Tameka Williamson, Your Own College Coach, go to www.TamekaWilliamson.com.

5 Car Buying Tips for Women

Do you (or someone you know) want to avoid paying more than you have to when buying a car? I do!

If you are in the market for a new car now or in the near future, here are 5 Car Buying Tips to help save money when shopping for your next car.

   

KNOW YOUR BUDGET

The first and most important tip is to know "How much you can afford!" Do NOT let a car dealer's finance department or bank tell you how much you can afford.  Both essentially want to ensure that you borrow as much as possible so they can make more money off of you. The more they can make you believe that you can afford, the more the car dealership will make on the car and the more loan interest income the bank will earn on your loan.

   

GET PRE-QUALIFIED

The best way to avoid unpleasant surprises; like, not qualifying for the amount wanted, needing a cosigner or getting a ridiculously high interest rate, is to get Pre-Qualified or Pre-Approved for an auto loan. Go to your bank or credit union to apply for the auto loan. Tell them the payment amount you can afford to pay so they can determine the total loan amount based on the interest rate and term you qualify for based on your credit. Remember, the Higher your Credit Score, the Lower your interest rate and the More loan amount you will qualify for.  Adversely, the Lower your Credit Score, the Higher your interest rate and the Less loan amount you may qualify for or a down payment will be required.

    

RESEARCH BEFORE YOU CAR SHOP

Now it's time to have some fun going online to search for a vehicle in your price range. Dealers with No Haggle Deals are really good because they usually sell their vehicles below NADA or KBB value.  Next go to NADA or KBB website to find out and print the Trade In and Retail Values to take when you go shopping.

    

TAKE A MAN WITH YOU

Take your husband, boyfriend, father, brother, uncle, male coworker or that dude from down the street. Even if he knows nothing about cars or negotiating, take a man with you when you go car shopping. If the sales person begins speaking directly to the man, play along and coach your escort in what to say or not say. You are in control of the transaction; he is just the figure head.  Unfortunately, women are sometimes taken advantage of during the car sales process.

     

NEGOTIATE BEFORE THE TEST DRIVE

Sometimes we absolutely lose our mind after we get intoxicated by that "New Car" smell during the test drive. My advice is to negotiate before you test drive to have a clear mind during the negotiation process.

    

Here are a few things to do when you get to the car dealer: 

1. Tell the sales person that you are doing a cash purchase. (Because you have already been pre-approved!) 
2. Do NOT give your personal information or allow them to run your credit. (Again, you are already pre-approved.) 
3. Tell the sales person what type of car and the price you are looking for. 
4. Ask if the car has any rebates or if the dealership has any incentives. 
5. Ask to see the buyers order with options to see the breakdown of all expenses and fees to help you with negotiating. 

Use your NADA or KBB value to negotiate the price as close to the Trade In value as possible. Negotiating the price as close to the Trade In value will give you equity in your car, as well as help you when you decide to trade in the car later.

     

You may not be able to get the car of your dreams today, but by getting a reasonably priced vehicle within your budget, you will be able to save money and get that dream car in your near future. Happy Shopping!

   

Financially True,

   

Tarra Jackson, Making Money Matters Manageable

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