Tips

Your credit report and score are always evolving. They reflect your record of paying debts on time, over time. Even if you had great credit in the past, it may be that your credit has suffered, and your score’s taken a nosedive. Even though that’s bad news, the good news is that credit is always changing, and it’s possible to come back from bad credit. Given enough time and the right moves on your part, it’s possible to get your credit back where it should be, where it can serve your needs instead of keeping you  back. Following are some steps you can take. You might not be able to do everything at once, but every little bit will help. 

Take a Second Job For Extra Income

A lot of times when someone’s credit suffers, it’s because they just didn’t have the money to keep up with monthly payments. If this is similar to your situation, you may want to consider getting a second job—at least temporarily—so you get some extra income to start making those payments. And even if this doesn’t describe your situation, you might still want a second gig because you’re going to have a lot of added interest to pay, due to the missed payments. After things settle, you can leave the extra gig, but then it may be time to take the next step on this list, re-evaluating your income.

Re-evaluate Your Income Needs

If your income hasn’t been enough to make your payments on time, it’s possible that you just aren’t making enough. You may need to talk to your boss about a raise, or start looking for a higher paying job elsewhere. Ideally, you want to be able to pay your bills and have enough left over for your savings. If this isn’t happening, then you either need to make more money every month, or consider the next item listed here.

Take a Look at Your Spending Habits

Are you living above your means? Sometimes people get into credit problems because they’re using credit cards to fund a lifestyle that they can’t afford. You want to be able to pay off your credit card bill each month, not just make the minimum monthly payments. And you also don’t want to be using your credit card for perishables like luxury items that are out of your price range. Again, if you’re using credit cards to pay for a lifestyle that’s above your means, you should work on your spending habits to keep them in check, so you can start building your credit back up.

Become an Authorized User

Becoming an authorized user on a family member or friend's credit card account with a positive payment history can be a strategic move to bounce back from bad credit. As an authorized user, you inherit the primary account holder's credit history, potentially boosting your own credit score. However, it's important to ensure that the primary account holder uses credit responsibly, as any mismanagement could negatively impact both parties. By piggybacking off their good credit habits and making timely payments, you can gradually improve your creditworthiness. This method offers a relatively low-risk opportunity to rebuild your credit.

Get a Secured Credit Card

A secured credit card is a tool to rebuild credit for those with a history of bad credit or no credit. Unlike traditional credit cards, secured cards require a cash deposit, which acts as collateral and sets the credit limit. By responsibly using the secured card, making timely payments, and keeping balances low, individuals can demonstrate creditworthiness to lenders. Over time, as the individual establishes a positive payment history, they may qualify for unsecured credit cards with higher limits and lower interest rates. This gradual improvement in credit utilization and payment behavior usually helps rebuild credit scores effectively.

Get a Loan to Pay Off Debt

Sometimes it makes sense to borrow money to pay off credit cards all at once. Only do this if you can get a low-interest loan from a lender or a friend. Never resort to hard money lenders or payday lenders; that will only dig you in a deeper hole than you were before. Once you get caught up with your payments, put the cards away and forget about them. The last thing you want to do is max out the cards again and then also owe money for the extra loan you got.

Stay in Touch With Creditors

Don’t ghost your creditors. Pick up the phone and make that difficult call to tell them that you know you’re late on your payments. They’ll want to know your circumstances and when you think you’ll be able to catch up with your payments again. In some cases, they may offer you a payment plan, or offer to stop charging you interest on your outstanding debt. Their response will depend on what kind of customer you’ve been in the past. If you are able to make a suitable payment arrangement, make sure you fulfill your part of the bargain. Otherwise, the debt will go to a collection agency, which will really make your credit report look bad. 

Talk to Your CPA

Your CPA may have some ideas about how to improve your financial situation. Don’t be afraid to ask for a consultation to discuss your issues. Remember, aside from you, they have the most information about your finances, so they can act as an objective counsel to give you tips about bouncing back from bad debt.

No matter how you got into a position of having bad debt, there is a way out. You will need to be patient. It can take a year—or even more—to improve your credit to the point where it used to be. Just stick with your plan and resolve to do things differently in the future, so you don’t find yourself in this predicament ever again!

by Kate Supino

When considering the purchase of a vehicle, the debate between opting for a new or used car is a significant one, impacting various aspects of your finances. Cars, second only to houses in terms of big-ticket purchases, demand careful financial planning and consideration of how they fit into your budget. This article delves into the various financial implications of buying new versus used cars, examining aspects such as down payments, monthly payments, operating costs, and depreciation.

Down Payment

The initial down payment is a critical factor in both new and used car purchases. A larger down payment reduces the amount you need to borrow, consequently lowering your monthly payments. Generally, used cars are less expensive, requiring a smaller down payment. However, it's important to consider the value depreciation of the car against the size of your down payment. Interestingly, new cars might offer manufacturer incentives like rebates, potentially reducing the required down payment.

Monthly Payments

Monthly payments are influenced by three primary factors: the borrowed amount, the loan term, and the interest rate. While new cars are pricier, they often come with longer loan terms and lower interest rates compared to used cars. For instance, a new car might cost more upfront, but the monthly payment might not be significantly higher than that of a used car when considering these factors. It's essential to balance the initial cost against the long-term financial implications of the loan terms and interest rates.

Adding monthly payments to your budget reduces your discretionary income, which in turn affects your capacity to seize investment opportunities. This reduced financial flexibility can mean missing out on lucrative investment opportunities that require immediate capital. Conversely, choosing a used car typically results in lower monthly payments, potentially freeing up more of your income. This additional liquidity can be crucial for taking advantage of investment opportunities as they arise, thereby potentially enhancing your financial growth and stability in the long term. 

Alternative Options

One cost-saving strategy is purchasing a low-cost, reliable used car. This option significantly reduces the monthly budget for a vehicle. The absence of monthly payments once the car is fully paid off frees up funds for other financial goals that may get you further ahead.

Leasing is another alternative that allows you to drive a new or nearly new car without the commitment of a purchase. Monthly lease payments are generally lower than loan payments for buying a car. Leasing also eliminates concerns about depreciation and allows you to upgrade to a newer model every few years. However, it's important to consider mileage limits and potential extra charges at the end of the lease.

For those who don't require a car daily, car sharing services or car subscription models offer flexibility. These services allow you to use a car when needed without the responsibilities of ownership, such as maintenance, insurance, or depreciation. This option can be cost-effective, especially in urban areas with good public transportation.

Insurance

Insurance costs vary quite a bit between new and used cars, presenting both pros and cons. New cars often attract higher insurance premiums due to their higher value and the cost of replacing parts or the entire vehicle in case of an accident. Comprehensive and collision coverage tends to be more expensive for new cars. However, they might also come with safety features that can lower insurance costs. On the other hand, used cars generally incur lower insurance premiums due to their reduced value. But, they may lack the latest safety features, which could potentially lead to higher costs in certain coverage areas. Older models might be more prone to theft if they are popular with thieves, impacting insurance rates. Ultimately, the choice depends on balancing these factors against personal needs and financial constraints.

Operating Costs

New cars typically offer the advantage of lower operating costs in the initial years, thanks to warranties that cover most repairs. In contrast, used cars might require budgeting for repairs and maintenance, especially those without warranty coverage. The savings on monthly payments or down payments for a used car should ideally include a reserve for potential repairs.

Depreciation

Depreciation is an unavoidable aspect of car ownership. New cars tend to depreciate more rapidly in the initial years, with a substantial drop in value occurring in the first year alone. Once you drive it off the lot, it automatically depreciates in value, and not by a small amount. Used cars, while depreciated, lose value at a slower rate in subsequent years. Planning for car replacement should factor in the vehicle's current value and its depreciation rate.

The decision between buying a new or used car depends on various financial considerations, including down payments, monthly payments, operating costs, and depreciation. New cars offer the benefit of lower operating costs and longer loan terms. They also hold appeal because you’re the first owner. The car comes to you clean, which is an inspiration to take good care of it. Used cars might be more budget-friendly in terms of initial cost and depreciation. They also carry the added risks of hidden problems that could prove costly, undoing any savings you saw from not buying new. Ultimately, the choice hinges on individual financial situations and long-term budget plans. If you need help deciding whether a new or used car purchase makes sense for your budget, consult with your professional CPA.

by Kate Supino

Traveling can be an enriching experience, but it also exposes you to unique risks, especially regarding your digital and financial security. In an age where internet hackers, identity thieves, and skimming devices are increasingly prevalent, protecting your assets is more crucial than ever. This guide offers essential tips on how to shield yourself from these threats. From securing your internet connections in hotels to using RFID-blocking wallets, there are a range of actionable strategies you can use to protect yourself.

1. Secure Internet Connections

When traveling, one of the biggest risks comes from internet connectivity. Hotels and Airbnbs, offering convenient, free Wi-Fi, are hotspots for hackers looking to exploit vulnerabilities in network security. These public networks are often unencrypted, allowing malicious actors to easily intercept your data. This interception can lead to the theft of sensitive information, such as personal details, passwords and financial data.

To counteract this, use a Virtual Private Network (VPN), which can encrypt your data, making it difficult for hackers to access your information. Always verify the legitimacy of a hotel's Wi-Fi network with the front desk to avoid connecting to a decoy network set up by hackers. Be wary of activities involving sensitive data, such as online banking, when using public Wi-Fi, and consider using your mobile data for these purposes when in doubt.

2. Guard Personal Information

Traveling exposes you to diverse environments and interactions, often necessitating the sharing of personal information. This exposure significantly increases the risk of identity theft. Identity thieves can exploit lost or stolen documents, or even overhear sensitive information in public places. 

Be cautious about where and how you share your personal details., even with trusted new friends. Use hotel safes to secure important documents like passports and avoid carrying them unnecessarily. Be mindful of your surroundings when entering PINs or passwords in public spaces. Consider using services that offer identity theft protection, which can monitor your personal information and alert you to any suspicious activity.

3. Lookout For Skimmers

Credit and debit card fraud has become a major concern, especially while traveling. Skimmers are illegal card readers attached to payment terminals like ATMs or gas pumps are a common tool used by thieves to steal card information. These devices can be incredibly hard to detect and can capture card details in seconds, leading to unauthorized transactions and financial losses.

To protect yourself from skimmers, it's important to be vigilant when using your cards. Before inserting your card into an ATM or payment terminal, inspect the machine for any unusual attachments or loose parts. When possible, pay for things like gas inside, instead of at the pump. Avoid ATMs in secluded or poorly lit areas, as they are more likely to be tampered with. If possible, use ATMs within secure bank premises for added security. It's also advisable to regularly check your bank statements for any unauthorized transactions.

4. Use an RFID-blocking Wallet

With the rise of Radio-Frequency Identification (RFID) technology in credit cards and passports, there's an increased risk of a type of electronic pickpocketing known as RFID skimming. Thieves equipped with RFID readers can stealthily scan and capture information from RFID-enabled items through clothes and wallets, leading to identity theft and unauthorized access to your financial accounts.

To combat this, using an RFID-blocking wallet is a smart move. These wallets are designed to shield your cards and passports from RFID readers, making it difficult for skimmers to access your sensitive information. They work by creating a metal shield around your items, which blocks electromagnetic fields and prevents RFID scanning. This is particularly important in crowded places like airports, train stations, or tourist attractions, where close proximity to others makes it easier for electronic pickpockets to operate.

5. Monitor Bank Accounts

When traveling, your bank accounts are more susceptible to unauthorized access and fraudulent transactions. This increased risk is due to various factors, such as the use of unfamiliar ATMs, exposure to less secure internet connections and the potential theft of physical bank cards. 

To safeguard against this, it's vital to monitor your bank accounts regularly. This means frequently checking your account statements and transaction history, either through online banking or mobile banking apps. Setting up alerts for every transaction can also be extremely beneficial. These alerts notify you of any activity in your account, allowing you to quickly detect and respond to any unauthorized transactions. If you notice any suspicious activity, contact your bank immediately to take the necessary actions, such as freezing your account or canceling your cards.

6. Enhance Device Security

Our devices contain a wealth of personal and sensitive information. While traveling, these devices are more vulnerable to various cyber threats, including hacking, malware, and data theft. Unsecured Wi-Fi networks in hotels, airports, and cafes can serve as gateways for cybercriminals to access your devices. Losing these devices or leaving them unattended can also lead to data breaches and identity theft.

Start by ensuring that all your devices are password-protected and that these passwords are strong and unique. Regularly update your operating systems and apps to patch any security vulnerabilities. Consider installing reputable security software to protect against malware and viruses. Activate tracking services like 'Find My Device' for smartphones and laptops, which can help locate your devices in case they are lost or stolen.

7. Say Yes to Travel Insurance

Unexpected events like trip cancellations, medical emergencies, or loss of personal belongings can have a significant financial impact. Without adequate protection, these unforeseen circumstances can lead to substantial out-of-pocket expenses, potentially jeopardizing your financial security. This is where travel insurance becomes essential.

Travel insurance offers a safety net. It can reimburse you for non-refundable travel costs if your trip is unexpectedly canceled or interrupted. In case of medical emergencies, especially in countries where your health insurance may not be valid, travel insurance can cover medical treatment and evacuation costs. It offers compensation for lost, stolen, or damaged luggage and personal items. When selecting a travel insurance policy, ensure it covers the specific needs and risks associated with your travel destination and activities.

With all the convenience that technology brings, it also carries more risk. A loss of assets can turn a happy vacation into a sour memory. Use these tips to stay safe while traveling at home or abroad.

by Kate Supino

One of the misconceptions about CPAs is that they’re only for the wealthy. While it’s true that CPAs are often associated with high-net-worth individuals, it’s also true that anyone can use the services of a CPA. It’s not just the wealthy who need help with financial planning and tax strategies. In fact, CPAs can play a vital role in helping people from all walks of life to improve their financial situations. And, in the case of ordinary people in modest financial conditions, a good CPA can actually help those persons to gain a better understanding of their finances, and possibly improve their overall financial situation.

What do CPAs Do?

If you’ve never used a CPA, you may wonder what it is they actually do. CPAs, or Certified Public Accountants, spend their days poring over numbers. They analyze financial records, stay up to date on the tax code, create budget reports, oversee the preparation of tax filings, conduct financial audits, help to ensure that their clients remain compliant with government regulations and much more. A CPA carries a tremendous amount of responsibility, earning their clients’ trust with their diligence and close attention to documents.

What’s the Purpose of a CPA?

CPAs help with forensic accounting, tax preparation, financial statements, internal auditing, and much more. Their main purpose is to help individuals and businesses to thrive financially, and to ensure that all financial records are accurate, that a person or individual is not overpaying in taxes and more. With the help of a qualified CPA, you and/or your business have the potential to live your best financial life. It would be a shame to pass up this valuable service just because you think that only wealthy people can use—or should use—a CPA.

Why the Misconception?

It’s possible that there’s a misconception about CPAs being only for the wealthy because the wealthy may be more vocal about using a CPA. It’s certainly true that the higher the income, the more taxes a person may be asked to pay. So a wealthy person would be quicker to hire a CPA in order to avoid paying a lot in taxes. They may then be so happy about the results that they praise their CPA in public. However, “ordinary” people with “ordinary” wealth also use CPAs, and it’s only right that they should do so.

Why Use a CPA?

The question should be, why not use a CPA? Anyone who has finances to manage and who makes enough money to file a tax return should use a CPA. They are affordable, easy to work with, friendly and extremely helpful. If for no other reason than to be sure your tax return is correctly filed, CPAs earn their keep tenfold.

Use a CPA For Business Financials

CPAs aren’t just for individuals, either. They are trained and licensed to help business owners of all sizes to plan, strategize and meet business goals. Are you wondering if you’re big enough to hire extra help? A CPA can help assess that situation. Are you wondering how you can improve your business cash flow? CPAs know all about managing cash flow. Would you like to give employee bonuses but don’t know how that will impact taxes? Ask a CPA! No matter if you’re just starting out in business or you’re contemplating your first merger, your CPA has the answers you need.

Use a CPA For Financial Goals

It can be hard to successfully reach your financial goals. CPAs know all about this, and are ready with practical guidance and steps you can follow to get you on your way. No matter where you are in the journey, they can help guide you and help you to avoid missteps.

Use a CPA For Debt Management and Credit Counseling

Many, if not most, households in the U.S. are in debt at some level. Regardless of income, many individuals find themselves burdened by this debt, feeling unable to get out from under it. CPAs can provide valuable insights into effective debt management strategies, helping individuals develop actionable plans to reduce and eliminate debt. CPAs can offer insights into how to improve credit going forward, guiding individuals on how to improve their credit scores and access better financial opportunities. Wealthy, middle and lower income people can all use insight into debt management, so this is another reason why CPAs are for everyone.

Use a CPA For Investment Advice

Are you wondering how to handle a second home that you want to use for rental income? Or are you looking to make suitable investment choices that align with your level of risk tolerance? CPAs can empower all your investment decisions by educating you about all the tax advantages of various strategies, setting a clear plan in place that you can feel good about.

Use a CPA For Retirement Planning

Planning for retirement is a crucial aspect of financial well-being, and CPAs can play a pivotal role in ensuring individuals are adequately prepared for their golden years. CPAs can help individuals understand different retirement savings options, assess their retirement needs and develop a comprehensive retirement plan that aligns with their financial goals. Since everyone will retire if they live long enough, you can easily see why the services of a CPA are for everyone, not just a select portion of the population who is wealthy.

If you’ve been hesitant about booking an appointment with a CPA because you thought they were only for the wealthy, it’s time to let go of that false belief. Don’t be embarrassed that you don’t have hundreds of thousands of dollars in the bank. Everyone has to start somewhere. A CPA may just be able to help you achieve your short and long-term goals, no matter how modest they might be.

by Kate Supino

One of the newest commodities that people are trading these days is digital assets. Digital assets may be images, videos, documents, cryptocurrency, software and more. Due to the digital nature of these assets, they can be a challenge to manage and track. Here are some best practices to keep your digital assets safe, organized and in compliance with the law.
Use a Digital Asset Management System
A Digital Asset Management (DAM) System is a software solution specifically designed to help people track digital assets. With so many people collecting and trading digital assets, a whole new industry has cropped help to facilitate effective asset tracking and trading. These solutions offer a centralized repository for digital assets that can be compared to the cloud solution for computer data storage. DAMs help to streamline the organization and accessibility of digital assets in a very user-friendly environment that’s also highly secure. Several options are available. When shopping for a DAM system, look for features like metadata tagging capability, access controls and version controls.
Use Consistent File Naming Convention
If you’re older and worked in business, you know all about files and folder naming conventions, and their importance in information organization. Younger folks may need to be reminded about the importance of using consistent file naming convention. In the world of digital assets, consider using a structure that includes asset type, date, project and unique identifiers. This approach allows for easy tracking and minimizes the risk of naming conflicts. If you regularly trade digital assets, you’ll likely find that descriptive and consistent file naming conventions help your buyers to find and understand your offerings, as well.
Implement Metadata Tagging
If your DAM system offers metadata tagging, make good use of it. Metadata tagging is a powerful organizational tool that offers a deeper level of asset organization and accessibility. By adding keywords, descriptions, and relevant information to your digital assets, you make them easily discoverable. This will save you time when searching for a particular digital asset, and help buyers to find digital assets that are relevant to their needs. It can also help to ensure that your digital assets meet legal requirements, when you opt to include copyright and licensing information in your metadata tags.
Use Version Control
Version control is also known as revision control or source control. It’s essentially a system that manages and tracks changes to a file over time. Imagine if you had a digital asset with multiple versions. Without implementing a version control system, you may have trouble discerning which version was changed and which version is current. Version control enables you to track the digital asset’s history, which is an invaluable feature when selling to a potential buyer. It helps to instill confidence in the asset’s provenance, quality and authenticity.
Make Regular Backups
The beauty of digital assets is that they don’t require lots of storage space. This makes it very easy to create backups of the works. Even though this is a simple practice, many digital assets owners fail to make a habit of regular backups. Instead of leaving backups to chance, create a schedule of backups so they happen once a week or on another schedule that makes sense. You might even be able to toggle on a regular backup schedule through your DAM system, if this feature is available. Explore the possibility of multiple backup strategies, including on-site and off-site solutions, for a comprehensive safeguard against data loss.
Implement Asset Classification and Categories
Creating logical categories for your digital assets is a deeper level of organization. It not only simplifies retrieval but also makes the assets more appealing to potential buyers. Delve into the categorization of assets, breaking them down by type, purpose, and usage. This approach makes it easier to identify assets that have the potential for sale and optimize their presentation. An example of this would be:

Asset: Digital Photograph Collection
Classification: Visual Assets
Category: Nature Photography
Subcategory: Landscapes, Wildlife

Secure Assets

Security is paramount in the world of digital assets. Because they are not physical products, it’s harder to protect them from online hackers. Consider multiple layers of security measures like encryption, firewalls and user authentication to protect your assets from unauthorized access. When considering selling digital assets, emphasizing the robust security measures that you have in place can instill confidence in potential buyers, making them more likely to complete transactions.
Analyze Performance Metrics

Performance metrics serve as a compass to guide managing and trading digital assets effectively. These metrics can offer helpful insights into the efficiency, impact and overall health of your asset management and trading practices. By actively measuring and analyzing these metrics, you can make informed decisions, identify areas for improvement, and maximize the value of your digital assets.

Remain Compliant

Navigating the landscape of compliance and copyright is a crucial aspect of digital asset management, particularly when considering trading or sharing those assets. Ensure that you have the necessary permissions and licenses and adhere to intellectual property laws and usage restrictions. Failing to address these considerations can quickly lead to legal problems, not to mention a bad reputation among digital asset traders. Understanding copyright intricacies, such as fair use and public domain, is especially important. Put into place a compliance framework that you can apply to all new digital assets. Regular reviews, documentation and adherence to licensing agreements will help to make sure your digital assets are ethically and legally sound.

Provide Documentation to CPA

Your CPA will need to have copies of documentation regarding the sale and purchase of your digital assets. This is so that you can pay the correct amount of tax and stay on the right side of the IRS. Your CPA can help guide you as to how best to organize your sales and purchase data in a way that is most efficient.

Whether you have digital assets for personal use or for trading, tracking and managing them properly is essential. By putting these best practices into place, you can be sure that your digital assets are prepared for any purpose for which you want to use them.

by Kate Supino

Every day, scammers are concocting new ways of trying to separate you from your money. It seems with every new security measure, a new way of getting around it is invented. Since nearly everyone is online these days, the vulnerability risk is high. Take a look at five of the latest money scams, and you’ll get a sense of how incredibly sneaky they can be.

1. Charitable Giving Scams

It’s a wonderful feeling to know that you’re helping out someone in need by anonymously donating money. Crowdfunding platforms like Go Fund Me are there so that people in crisis can get money to help them up on their feet again. With the prevalence of natural disasters and dire circumstances like homelessness, Go Fund Me and others like it have become very popular. Go Fund Me takes their mission seriously and works hard to prevent fraud. But sometimes one slips past them.

In 2017, a couple in the Northeast set up a Go Fund Me campaign for a homeless man whom they had decided to help. At least that’s what their Go Fund Me page said. They raised over $400,000, but the homeless man barely saw a cent of that money. Instead, the couple bought themselves luxury items. The matter went to court and the couple was recently sentenced. In a twist, the homeless man was also sentenced for his part in perpetuating the online scam.

2. Holiday Vacation Home Scams

With the holidays approaching, families are eagerly checking out vacation home rental sites to have an ideal holiday break. There are many such sites, such as Airbnb and VRBO, but there are also individual sites, and vacation rentals on Facebook Marketplace and Craigslist. 

Now, scammers are preparing for the holidays differently than you are. They’re setting up fake holiday home rental sites in idyllic locations to lure you in. You reach out to the owner via the contact information on the site. The owner seems very professional and is delighted to host you and your family. All you have to do is send in your deposit to hold the reservation. 

Most people are willing to do this, because we’re accustomed to putting down deposits on reservations. But this scam is particularly mean.

You and your family show up on the date, only to find out that either the property is actually a vacant lot or that someone lives there and has no idea what you’re talking about or who you are. This scam has happened to countless people, ruining their vacation and causing them to lose thousands of dollars, not to mention the pain and misery of having to find alternative accommodation at the last minute, sometimes late at night.

3. Payday Loan Scams

Payday loans in and of themselves could be considered a scam, because the interest rates are astronomical. You should avoid taking a payday loan at all costs. But sometimes people do, and sometimes they also fall prey to a payday loan scam like this scenario. 

The scam typically begins with the criminals advertising fake payday loans, which they claim will provide immediate financial relief and help applicants take control of their mounting bills. These offers are often presented in a convincing manner, with official-looking websites and persuasive marketing materials, making them appear legitimate to unsuspecting victims.

Once the person applies for the loan, they are informed that they must prepay a certain fee to secure the funds. This fee is often justified as a processing charge or an upfront payment to guarantee the loan's approval. The applicant, desperate for financial assistance, usually complies, believing that they’ll soon get the loan. However, once the fee is paid, the scammers vanish, and the promised loan never materializes. The money paid as a fee goes directly into the criminals' pockets, leaving the applicant with even more financial strain and no recourse to recover the lost funds.

4. Student Debt Forgiveness Scams

The future of the Biden administration's initiative to forgive student loans is currently uncertain. Despite this, scammers are taking the opportunity to exploit those who may be unaware that the plan is on hold. These scammers have created fake application websites with the intention of stealing personal information, such as Social Security numbers and banking details, from unsuspecting individuals.

In some cases, the criminals have even reached out to potential victims over the phone, applying pressure and persuading them to apply for the fraudulent loan forgiveness program. They often charge a fee for their so-called assistance, further victimizing those who are already burdened by debt.

5. Online Romance Scams

This money scam is particularly seedy, as it preys on lonely people, often older, who are looking for someone to love them. The scammer plays the long game, slowly reeling in their victim, so trust is built up over time. The initial contact could be from social media, or a dating site, or even from a sales phone call. The scammer often pretends to be smitten, or feigns similar interests as their target. They may even send photographs that make them look real, and that back up their “story.” Over time—it could even be a year—the scammer asks for money. Maybe it’s a request to help pay for a plane ticket so they can visit the target. Or money to get their vehicle fixed, or money for a medical need. But by the time they ask, chances are the target feels so connected to the scammer, thinking they are in a relationship, that they send the money. Then their heart and their bank accounts are broken.

Unfortunately, scammers are everywhere online. It’s essential to be vigilant, especially where personal data and finances are concerned. Strive to only do transactions with people you know, and avoid being too quick to respond to emails that request personal information. It also helps to mention any suspicious requests to your CPA, who is up-to-date with all the latest money scams today. They just may help prevent you from being a victim of a scammer.

 
- by Kate Supino -

Everyone deserves a chance to take a break from the day to day and take a vacation. Vacations are a time to relax, maybe explore a new place and enjoy some of the things that life has to offer with your discretionary income. You shouldn’t have to worry about keeping your money safe while on vacation, but unfortunately, that’s just a fact of life. Today, there are more ways than ever for things to get out of control while you’re on vacation. Here are some tips to keep your money safe while on vacation.

Notify Your Bank And Credit Card Companies

Before you leave for your vacation, let your bank and credit card companies in on your plans for travel. Certain algorithms are used today that help financial companies pick up fraudulent activities, including the origin of transactions. If you let these companies know ahead of time where you’ll be traveling, this will prevent them from flagging your transactions as suspicious activity and potentially freezing your accounts unnecessarily. Provide them with the dates and destinations of your trip to ensure a smooth financial experience. Many companies have a way of doing this online through their platform; otherwise, you may need to give them a quick call.

Use a Combination Of Payment Methods

Rather than relying solely on cash or credit cards, consider diversifying your payment methods. Carry a mix of cash, credit cards and debit cards with you while on vacation, but don’t bring them all with you when you go out for a day excursion. This way, you'll have options in case one method isn't accepted. Also, keeping one or more payment methods safely at your hotel or Airbnb will help ensure that if you lose a credit card you’ll still have a backup so your vacation isn’t ruined.

Limit The Amount of Cash You Carry

While it's a good idea to have some cash on hand for emergencies or situations where cards aren't accepted, it's important to limit the amount you carry. Much of the currency overseas is made of materials that are literally slippery. It’s too easy for this currency to slip out of your pocket just by walking down the road. Of course, you also have to be wary of pickpockets. One way or another, if cash finds its way out of your possession, you’ll be glad you didn’t lose all the cash on hand while you were out enjoying the day on your vacation.

Only take what you'll realistically need for a day or two and keep the rest in a secure location, such as a hotel safe or a hidden money belt.

Secure Your Valuables

Whether you're out exploring or relaxing by the pool, never leave your valuables unattended. Use the hotel safe to store your passport, extra cash, and expensive jewelry when you're not using them. Most countries will have a policy stating that foreign travelers need to carry their passports at all times. However, this makes it too easy to lose your passport or have it stolen. The spirit of the law is that they want foreign travelers to have ID on them. It’s a better idea to carry a photocopy of your passport and keep the original in the hotel safe or simply tucked somewhere safe in your Airbnb. That way, you can avoid the hassle of having to worry about identity theft and having your money stolen.

Use Only Secure ATMs

ATM skimmers are more common abroad. If you’re traveling overseas, be sure to only use secure ATMS. This means using machines located in well-lit, populated areas, such as inside a bank or major stores such as Walmart. Avoid using ATMs that look suspicious or have any signs of tampering. Avoid using ATMS in tourist areas, as these are common targets for thieves who want to target tired, unsuspecting tourists. Inspect the ATM for tampering before inserting your card. Be sure that the ATM has completely reset for the next customer before walking away.

Beware of Pickpockets

Petty theft and pickpockets are ubiquitous in some overseas locations. Keep your money inside a money belt somewhere on your person. If you carry a backpack, carry it on the front instead of the back, where a pickpocket in a crowded location could easily unzip a pocket and steal from you. Don’t display your wallet in public. Always tuck it away before exiting the store where you used it to pay for goods.

Be Careful of Scams

Be wary of strangers who approach you with overly friendly gestures or offers that seem too good to be true, as they might be attempting to scam you. In some countries, scammers will use children to take advantage of tourists who are taken with the child’s innocent-seeming charms. If you haven’t initiated the conversation, be very careful of foreign strangers who approach you, as they could just be acting as a distraction for a snatch and grab.

Use Only Secure Wi-Fi Networks

When dining out, avoid logging onto your bank or other financial institution on public Wi-Fi. In general, don’t use public Wi-Fi. Only use secure networks that are made available through your hotel or Airbnb. Consider using a VPN, which is available at a very low cost.

Keep Copies of Important Documents

Make photocopies or take pictures of your passport, credit cards, and other important documents before you leave for your trip. Store the copies securely in a separate location from the originals and let someone trusted in your family know where they are. In case your documents are lost or stolen, having copies will make it easier to report and replace them.

Regularly Check Your Accounts

While on vacation, monitor your bank and credit card accounts on a daily basis, from your secure Wi-Fi connection. Check your receipts against amounts that were debited from your account. Set up alerts on your accounts to receive notifications for transactions, if possible. Report any unauthorized charges or discrepancies to your bank immediately.

Using these tips, your money should be safe and sound while you’re enjoying your vacation. Just a few simple steps will give you the peace of mind you need to enjoy yourself, knowing your money is secure.

In an economy where uncertainty has become the only constant, protecting yourself against a recession is of utmost importance. It's an unavoidable fact that economies go through cycles. Periods of growth are often followed by slowdowns or recessions. While predicting the exact timing of a recession is impossible, there are proactive steps you can take to shield yourself financially when one occurs. Remember, a proactive approach and timely consultation with a trusted CPA can ensure that you weather the storm without compromising your financial health.

Build an Emergency Fund

One of the first lines of defense against a recession is having a robust emergency fund. This is a pool of money set aside to cover essential living expenses in case of a sudden income loss or unexpected expenses. Most financial advisors recommend building an emergency fund to cover 3-6 months' worth of expenses. If you haven't started an emergency fund yet, or if yours is smaller than this, it's time to prioritize this goal. There's a bit of advice from some money experts, who say to "pay yourself first." You can take this to mean that, each time you get paid, set aside a specific amount or a certain percentage and put it into a savings account. With the rest, pay your bills. Otherwise, if you have a mindset of only saving what's "left over," you may find yourself with nothing left over, ever.

Reduce Debt

Reducing debt is another proactive step you can take to prepare for a recession. In a downturn, having fewer obligations can make managing finances much easier and less stressful. Excess debt eats into your cash flow, which puts you in a very volatile situation if a true recession hits. Consider creating a plan to pay down debt faster, particularly high-interest credit card debt. Two of the biggest strategies are to either pay down small debts for a feeling of quick satisfaction, or to pay down larger debts first, in order to stop having to pay so much in interest each month. At the end of the day, you should do what you're comfortable with. If it works, it doesn't matter how you get it accomplished. Get in touch with your CPA for help getting out of debt. They will have some great ideas for you, based on their many years of experience helping people just like you to get out of debt.

Diversify Your Investments

During a recession, some investment sectors will get hit harder than others. Therefore, diversification becomes even more critical. Having your investments spread across various sectors and asset classes can help mitigate potential losses. If you haven't already, review your investment portfolio for diversity and risk tolerance. Avoid making any unusual investment decisions or Again, consulting with a CPA can provide valuable insights for optimizing your investment strategy in light of potential economic downturns. Even if you already work with a financial investment advisor, your CPA will have insights that the investment advisor may not.

Boost Your Income

Another strategy to protect yourself against a recession is to explore ways to boost your income. This could mean asking for a raise at work, seeking a higher-paying job, or starting a side gig. An additional income stream can help you build your emergency fund faster, reduce debt, and increase your financial cushion, preparing you to withstand a potential recession. Multiple streams of income also help shield you in the event that your primary source of income is lost. Even if you don't make huge money on the side, that little bit will be a safety net that will keep gas in the car and food on the table if a severe recession costs you your job.

Keep Investing

While it might seem counterintuitive, a recession typically presents good buying opportunities. When markets fall, you may be able to buy stocks at discounted prices. Regular investing, also known as dollar-cost averaging, can help you take advantage of these potential opportunities. Keep in mind that investing always carries risks, and it's not worth risking your nest egg, no matter how great of a deal a particular stock may be. Keep investing if you're in a strong financial position to do so, and if your CPA agrees.

Review and Adjust Your Budget

Your budget is a financial roadmap, and like any good map, it might need to be adjusted from time to time. Review your budget, cut back on non-essential expenses, and focus on saving and reducing debt. In uncertain times, having a tight grip on your budget can make all the difference. In particular, take a close look at subscriptions, which can take a big bite out of your budget when you add them all up together.

Consult with a CPA

Professional guidance can be invaluable in preparing for a recession. During a recession, your best friend is your CPA. CPAs have the knowledge and expertise to help you navigate the complex world of finance, and they have the advantage of the context of your unique financial situation. They can provide personalized help that's tailored to your unique financial situation and goals.

While recessions are an inevitable part of the economic cycle, their impact on your personal finances can be mitigated if you're proactive. By taking steps like those discussed above, you can prepare for the worst and protect your financial health. Although no one can accurately predict a recession down to the day, it's always wise to be as prepared as possible. This way, you and your family can enjoy a modicum of peace during times of economic downturns. Then, when times do get better, you won't have to play catch up and you'll be in an even better position to improve your financial situation.

If you are trying to buy a home, obtain a car loan, rent an apartment, or even apply for a job, the information contained in your credit report will be a big factor in determining your success or failure. While in most cases your credit report will be accurate, many people find negative items on their reports that they didn't even know existed. While there are plenty of companies that offer to help remove these items, they don't do anything you can't do yourself. To clean up your credit report and get rid of those negative items, here are some top strategies you can start using immediately.

Send a "Pay for Delete" Letter

If you have a negative item on your credit report that is accurate, you do not have the right to dispute it. However, one way to get this item off your credit report is to send your creditor a "pay for delete" letter. In this letter, you will ask that your creditor remove the negative information from your credit report in exchange for you making full payment on the amount owed. Since creditors are eager to get money owed to them, this strategy will work in many cases.

Use the Statute of Limitations

One thing many people fail to realize about negative items on their credit reports is that the information does not remain on the report indefinitely. If you have seven years that you can afford to wait around, this statute of limitations will mean the negative item will completely disappear from your credit report after seven years, and in some cases sooner. Also keep in mind that with each passing year, the negative items will have less and less impact on your overall credit score. Yet before you decide to use this strategy, you may want to seek advice from a CPA who may be able to suggest other strategies that may be more effective.

Submit a Credit Challenge

Unlike the "pay for delete" letter that has a negative item dropped from your credit report in exchange for full payment of your debt, the credit challenge is sent to the credit bureau itself. In this formal submission, you will be asking the credit bureau to investigate what you believe is an inaccurate negative item on your credit report. If you think the credit bureau will just ignore your challenge, this can't happen, since the credit bureau is required by law to investigate these matters. If you use this strategy, include a detailed description of the negative item in question, why you are disputing it, and copies of any documents that will help bolster your case.

Don’t Worry About Soft Credit Hits

When an insurance company, landlord, or an employer who is conducting a background check does a soft credit check on you, this won’t impact your credit score. In most instances, soft credit hits will only remain on your credit report for no more than 24 months, and in many situations no more than 12 months. A soft credit hit will never prevent you from building and maintaining good credit, so despite what some creditors may tell you, a soft credit hit is nothing to worry about.

Get a Free Copy of Your Credit Report

Always take advantage of being able to obtain a free copy of your credit reports each year from the major credit bureaus. Since a negative item may appear on one report but not another, you will need to obtain a credit report from the three major credit bureaus. Once you have the reports in hand, carefully examine all sections of each report. Should you find negative items you believe are inaccurate, contact the credit bureau at once. If you believe the problem to be extensive and potentially damaging from a legal standpoint, meet with your CPA to discuss your options.

Submit a Challenge to Your Lender

If you choose to submit a credit challenge letter to a credit bureau in an attempt to have a negative item removed from your credit report, be willing to send a similar challenge to your lender. Just like the credit bureaus, your lender will then be required by law to investigate the matter. By submitting this letter and documentation that adds credibility to your argument, you may find your problem gets resolved much faster than you anticipated.

Ask for a Goodwill Deletion

When you send this letter to a creditor, you will try to make yourself sound as good as possible while also trying to make the creditor feel guilty for giving you a hard time about a debt. This letter will have you describing why you were late with payments, how long you have been a good customer, and why your account should be looked at in a more favorable light. Though there is no guarantee this will work, since the creditor is under no obligation to comply, speaking to the right person at the right time may make all the difference in helping to clean up your credit report.

Contact a Business Directly

When a negative item appears on your credit report, you may get better results if you directly contact the business that reported the item to a credit bureau. If you do this, it's best to make your dispute in writing, even if it is a local business. By having everything in writing, you can be sure no important details are left out as to why this negative item needs to disappear from your credit report. Rather than lose a customer, many businesses will be willing to work with you to get the item removed. However, you will be responsible for contacting the credit bureaus for removal of the item.

Negative items on your credit report can impact your life in many ways, and it always pays to try to get as many of them cleared as possible. Every instance is unique, so you may have to try more than one approach to get negatives removed from your credit report. Once things start to improve, you’ll see your credit score improving, as well, which will put you in a better financial position for the future.

In the world of finance and business, there are a few people who stand out for their incredible wealth and success. These individuals have built multi-billion dollar companies, made smart investments, and have mastered the art of accumulating wealth. While there are many strategies and philosophies when it comes to managing money, we can learn a lot from these experts. Here is what some of the world’s most successful people have to say about wealth.

Warren Buffet: “Rule No. 1: Never lose money. Rule No. 2: Never forget rule No. 1.”

Warren Buffet is an American business magnate, investor, and philanthropist. He is the CEO of Berkshire Hathaway, which owns several companies such as GEICO, Duracell, and Dairy Queen. Buffet is considered one of the most successful investors in the world and has a net worth of over $100 billion. His philosophy is to invest in companies that have a strong competitive advantage and are undervalued. Buffet’s advice is to focus on protecting your capital and avoiding losses, rather than trying to hit home runs.

Barbara Corcoran: “Taking a risk is like jumping off a cliff and building your wings on the way down.”

Barbara Corcoran is a successful American entrepreneur, investor, and reality TV star. She became famous for playing one of the investor "sharks" on the show Shark Tank. Corcoran sold the real estate brokerage business she co-founded, The Corcoran Group, for $66 million. Her recommendation? Have faith in your gut and try new things. Corcoran thinks that taking measured risks is essential to succeed, whether one is starting a business or investing in the stock market.

Tony Robbins: “The secret to wealth is simple: Find a way to do more for others than anyone else does. Become more valuable. Do more. Give more. Be more. Serve more.”

Tony Robbins is an American author, motivational speaker, and life coach. He is known for his seminars and books on personal development and has a net worth of over $500 million. Robbins believes that the key to building wealth is to provide value to others. Whether it’s through a product or service, being able to help others in a unique and valuable way will lead to success.

Jack Ma: “You should learn from your competitor, but never copy. Copy and you die.”

Jack Ma is a Chinese business magnate, investor, and philanthropist. He is the co-founder and former executive chairman of Alibaba Group, one of the largest e-commerce companies in the world. Ma is known for his entrepreneurial spirit and ability to innovate. His advice is to learn from your competition, but not to copy them. Instead, find your own unique way of doing things that sets you apart from the competition.

Jeff Bezos: “Your margin is my opportunity.”

Jeff Bezos is an American entrepreneur, investor, and philanthropist. He is the founder and CEO of Amazon, one of the largest companies in the world. Bezos is known for his focus on customer satisfaction and his willingness to take risks. His advice is to always look for opportunities to innovate and disrupt industries. Bezos believes that if you focus on providing a better customer experience, you will find success.

David Tepper: “You gotta be in it to win it.”

David Tepper is an American billionaire hedge fund manager and philanthropist. He is the founder of Appaloosa Management, a hedge fund that manages over $20 billion in assets. Tepper’s advice is to be willing to take risks and to be invested in the market. While investing can be unpredictable, being in the market and taking advantage of opportunities is key to building wealth over time. Tepper emphasizes the importance of staying in the game and not being discouraged by short-term losses.

Gary Vaynerchuk: “Legacy is greater than currency.”

Gary Vaynerchuk is a Belarusian-American entrepreneur, author, and internet personality. He is the CEO of VaynerMedia, a digital marketing agency, and has a net worth of over $200 million. Vaynerchuk’s philosophy is that building a legacy and leaving a positive impact on the world is more important than accumulating wealth. He encourages entrepreneurs to focus on building businesses that align with their values and beliefs.

Bill Gates: “It’s fine to celebrate success but it is more important to heed the lessons of failure.”

Bill Gates is an American entrepreneur, software developer, and philanthropist. He co-founded Microsoft, which became one of the largest and most profitable companies in the world. Gates is known for his focus on innovation and his dedication to philanthropy through the Bill and Melinda Gates Foundation. His advice is to learn from your failures and use them as opportunities for growth. Gates believes that failure is a natural part of the learning process and should not be feared.

Ingvar Kamprad: “The most dangerous poison is the feeling of achievement. The antidote is to every evening think about what can be done better tomorrow.”

Ingvar Kamprad was a Swedish business magnate and the founder of IKEA, one of the largest furniture retailers in the world. Kamprad’s philosophy was to focus on continuous improvement and to never be satisfied with the status quo. His advice is to always be looking for ways to improve and innovate, even when things are going well.

Richard Branson: “My biggest motivation? Just to keep challenging myself. I see life almost like one long university education that I never had — every day I’m learning something new.”

Richard Branson is a British entrepreneur and investor. He is the founder of the Virgin Group, which includes over 400 companies such as Virgin Atlantic and Virgin Galactic. Branson is known for his adventurous spirit and his willingness to take risks. His advice is to never stop learning and to always be open to new experiences. Branson believes that life is a never-ending journey of discovery and that the key to success is to always keep learning and growing.

The advice of these successful people highlights the value of taking calculated risks that don’t jeopardize financial stability, providing value to others, and focusing on continuous improvement. Whether you’re starting a business or investing in the stock market, it’s important to stay focused on your goals and to never give up. By learning from these experts and incorporating their philosophies into your own life, you may increase your chances of success and achieve your financial goals.